1. Objective and Scope
1.1 Objective of this Procedure
This procedure describes the Group requirements for Costing – Internal Controls
It includes:
- the roles and responsibilities within the SBS RtR organization
- the tasks to be performed
- the related deadlines.
More precisely, this document will focus on:
- Part 4.1 : the overview of responsibilities in the light of SBS organization
- Part 4.2 : the Internal Controls process General Description
- Part 4.3 : the Internal Controls for product costing
- Part 4.4 : the Internal Controls for inventory valuation
1.2 Scope
This organizational procedure (P) applies to all companies included in the Solvay Business Services scope of entities.
This procedure takes effect as of disclosure of the document to the Group.
2. Reference Documents
N/A
3. Definitions
4. Organizational Procedure
4.1 General Roles and Responsibilities
Service Unit Costing Process Expert : Process Management Team – WW level
PE Costing is the owner of the process for the Group at a worldwide level
Ensure efficient governance of the process through rules definition, communication and enforcement.
Define internal controls on Costing and Cost Accounting
Deploy procedures / orientation defined at RtR Process Management level
Manage the delivery accounting team in each region
The Process Expert will work closely with a Delivery team in charge of SU MAC organized as follows:
FSL Service Unit Management Accounting
Deploy common/standard procedures and support local teams
- Establish the link between Process Management and Delivery team in each region
- Mostly act as supervisors to ensure process efficiency and performance enhancement
Create/Maintain the controlling network
Leverage the controlling network to achieve process efficiency and transmission of required expertise
GBS Service centers
Perform daily operations related to the Costing process, in line with guidance and rules defined upfront, for activities not requiring proximity to customers or specific local knowledge
Optimize and standardize operations, as well as documentation materials (mostly Operating Procedures).
- Offer standard services and conduct related internal controls
Three centers serving their regions as well as the whole world, and coordinated worldwide (Lisbon, Curitiba, Bangkok)
Non-GBS Roles:
Corporate Controlling
- Responsible for giving instructions on process objective
GROUP ACCOUNTING REPORTING (GAR)
- Responsible for giving instructions on process objective
GBU Finance Directors
Responsible for financial statements compliance
Designate FRA and GCCO, and in general, all responsible of internal controls to be performed by the GBU
GBU Finance Responsible Assigned (FRA)
Responsible for validating Costing processes
For reason of simplification, there is only one role GBU FRA, however in some sub-processes this role could be developed by 2 actors: FRA and GCCO
GBU Costing Control Owner (GCCO)
- Responsible for some internal control regarding IAC processes
4.2 Internal controls: General Process Description
4.2.1 Internal Controls Roles and Responsibilities
The Internal Controls activity implies inputs and responsibilities from various actors in the organization, as described below:
4.2.1.1 SBS actors of the Internal Controls
4.2.1.2 Non-GBS actors of the Costing Model Architecture
4.3 Internal control procedures
Internal controls homepage:
Full list of IAC