Authorizations & Roles

Version Control

Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
3 Definitions
4 Main Part
4.1 General Roles and Responsibilities
4.2 Communication flow
4.3 Process Description
4.3.1 Key Principles
4.3.2 Roles and Responsibilities

Objective and Scope

Objective of this Procedure

The purpose of this document is to describe the practical modalities for preparing and taking the physical inventory of fixed assets.

Scope

This organizational procedure (P) applies to all companies within the Solvay Business Services scope of entities.

Reference Documents

NA

Definitions

Main Part

General Roles and Responsibilities

SBS Actors:

• RtR PE I&D: The I&D PE has mostly a supervision role in the physical inventory process, supervising overall process efficiency across the Group.

• RtR Regional I&D Managers: are involved in inventory process instructions definition and communication to sites. They also supervise the process for their region (ensure list are correctly extracted; follow up on adjustments recorded, etc.). They are responsible to identify, maintain, update and communicate the list of individual eligible to send a request to the BO. Thay are the internal control owner of assets physical inventory.

• RtR Companies Accounting Managers: CAM are not involved in the process directly.

• RtR BO: SBS Back office is responsible for extracting inventory lists and recording inventory adjustments in the system

Non SBS Actors:

• Site Managers: The site managers are mainly in charge of validating the inventory results and of appointing the operation managers to execute the operations

• Inventory Operations Managers: The main role of the inventory operations managers is to perform the review of production units and to report the results to the site managers for validation.

Communication flow

The Physical inventory report file is sent by the ID regional to the site director or delegate.
The planning of physical inventory is sent by the site director to the ID regional manager.
In case of retirement detected,the communication flow should respect the following criteria:

• Any request must be sent with tha apprriate form to the Back office RTR via a ticketing tool in order to be registered
• The requester should be recognized as eligible
• The BO is in charge of following the traceability, performing the request and sending a feedback to the requester.

Process Description

Key Principles

The group has the obligation to verify the existence of the asset published in the group accounts
The following key principles apply for implementing the procedure:

• A annual trigger event review of the potential consequences on inventory assets (Activity changes – Production unit close – Merger – Activity transfer…

Regional manager I&D will manage the gathering of elements from plant managers or controllers to be communicated to Back Office

• 5-year cycle physical inventory of the entirety of fixed assets: Comprehensive 5-year annual monitoring of physically present fixed assets. Each year a minimum of 20% of the number of the fixed assets should be included in the physical inventory, at the end of the five years, the entirety of the fixed assets shall be included on the inventory.

Inventory documents- Report SAP  (transaction Z1A_AA_INVENTORY) include the following:

• • A description of the fixed asset
  • The assets class- nature of the assets
  • Identification number
  • Acquisition date
  • Purchase value
  • Net book value
  • Length of depreciation
  • Geographic location (division, building, etc.) or functional location (cost center)

I/Regional manager with Site manager or delegates choose the best form to perform physical inventory (Sap list,Excel,…)
Fixed asset inventory documents are signed and dated by the operations managers after review.
All status-changing movements of fixed assets noted during the annual review or continuous inventories are approved by the Site Manager or person delegated for said task, who shall sign the corresponding documents for any updates.
Inventory results shall be reported to BO no later than October 31^st of every year.
All statements and inventory documents are retained and archived by BO as certifying articles for fixed asset movements.
Control to be performed - IFA.PHC.01.01: Fixed assets physical inventory

Roles and Responsibilities

• The BO is in charge of:

1. Extract the appropriate inventory statement : Z1A_AA_INVENTORY program
2. Updating the fixed asset register based on requests submitted.

• The Regional Manager is in charge of:

1. Organising the sending of list of asset to the site managers before end of February.
2. Obtaining from the plant manager the appropriate planning of commitment and to follow the roll out of the action
3. Obtain from the plant manager each year the trigger event review and the related appropriated divestment if any.
4. Monitoring progress made on carrying out the inventory program and sending reminder updates if necessary.
5. Supporting the BO in case of specific needs
6. Defining, maintaining and updating the format list with the support of the IT (if needed)

• The site manager is in charge of :

1. Committing on a roll out planning and submitting it to the Regional Managers
2. Provide the appropriated divestment linked to trigger event review.
3. Defining the organization of the inventory (appoint the appropriate persons in charge of the physical inventory / sectors allocation)
4. Launching the physical inventory process and verifying its good application
5. Transmitting to the BO the physical inventory result at the due date

Hierarchical releasing criteria - by type of assets
Intangible assets main contacts:

• Assets classes IT: Worldwide IT Controller / IT Project Controller
• Assets classes R&I: R&I Industrial Controller
• Other Assets classes: FO of the GBU (via CGU)

Tangible assets main contacts:

• Assets classes IT: Worldwide IT Controller / IT Project Controller
• Other Assets classes:
  • Industrial site divisions: Plant Manager
  • Headquarter divisions: FO of the GBU
  • R&I division: R&I Industrial Controller

End of document