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Objective and Scope

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Objective of this Procedure

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Application Application

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The purpose of this document is to describe the actions needed to correctly apply the Internal Control FXA.01.02  – Divestment for each maintenance shutdown

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Scope

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Definitions Definitions

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This operating procedure (OP) applies to PF1 PF2 and WP1 WP2 within the Solvay Syensqo Business Services scope of entities.

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Abbreviations

(N/A)

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Definitions

The process to assuring achievement of an organization's objectives in operational effectiveness and efficiency, which aim is to ensure the compliance with laws, regulations and Group policies and procedures.
The internal control under I&D Team responsibility are:

• Investment / Divestment: Modification in the assets books (IFA.01.01)
• Major Repair: Divestment for each maintenance shutdown (IFA.01.02)

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Investment / Divestment

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• Minimum frequency:  At each change/until D-3 of each month
• Control owner function: Rhodia legacy: Each Service Center Team of I&D

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• Control description:  Service Centre or technical controllers (depending on which legacy we are dealing) need a proof of authorization from project managers to make modifications > 50k€ to the assets register (creation or deletion).

• Risk description:

Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets.
Fraud

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Each investment/divestment > 50 KEUR should have a proof of authorization from project managers.
The control can be performed by extracting the information from the system and then checking if there is any proof for each investment/divestment above 50 K Eur.
In WP1 system:
You can use transaction S_ALR_87011990 - Asset History Sheet with following data:
• Company code: All scope
• Asset number: "2*", as the results should only include capitalized fixed assets;
• Report date: Last day of the month of the report;
• Depreciation Area: Group (50 for PF1 companies, 15 for WP1 companies);
• Sort variant: ZBFC;
• List assets;
SAP result
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Then you can extract the report to Excel and you will get the following screen:
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The proof of authorization is archived in the tickting tool.
The link between ticketing tool and the fixed asset is the case number.
You can see the case number using transaction Z1A_ASSET_NOTE - Asset Master Data Attachment Note
• Company code: All scope
• Asset number: "2*", as the results should only include capitalized fixed assets;
• Created on: You can put the period what you are analysing
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This transaction will give you in Note title the case number in each asset Image Removed You can also extrat this list to excel and do a VLOOKUP in order to get the case number into your report by fixed asset.
And you can do a report resume with Pivot Table.
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Investments: F20 Increase + F34 Brought into Service
Dinvestment: F30 Decrease + F33 Out of service
This internal control is also describded in Operational Procedure SBS-OP-DRTR-09-002 Capitalizations -RCS

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Major Repairs

Divestment for each maintenance shutdown (IFA.01.02)
The aim of major maintenance work is to verify that the asset is being kept in good condition without modifying its life. The costs should be recognized as major maintenance costs. These costs should be considered as a capitalized component if: - They belong to a multi-annual recurring major maintenance operation,- Total costs reach a minimum threshold of 500 kEUR.
Every quarter this process should be performed in order to identify the fixed-asset for Major Repair which should to be removed.

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Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets

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Process:

Go to AR01
Using variant: /I.D MAJOR RD MAJOR R(WP1WP2)   ,  /MAJOR REPAIR(PF1PF2)
You will obtain the following screen

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