The Board is responsible for establishing and maintaining a sound system of internal control in Saongroup Ltd. and for reviewing its effectiveness.
Our internal control systems are designed to manage the risk of failure to achieve the Group’s strategic objectives and provide reasonable but not absolute assurance against material misstatement or loss. The system of internal control should safeguard the shareholders’ investment and Group assets. An ongoing process has been established for identifying, evaluating and managing the significant risks faced by the Group. The Directors, through the Audit Committee, are responsible for reviewing the effectiveness of the Group’s system of internal controls.
The Group’s key internal control procedures include the following:
The Saongroup.com Management Structure
The Board has overall responsibility for the Group and there is a formal schedule of matters specifically reserved for decision by the Board. The Board comprises a mix of Executive and Non-Executive Directors. The Board has responsibility for approving Group objectives, strategy, annual budgets, major acquisitions and capital projects. The functions of Chairman and Chief Executive are not combined. Each Executive Director has been given responsibility for specific aspects of the Group’s affairs. The Executive Directors together with key senior executives constitute a management committee, which meets to discuss day-to-day operational matters.
The Quality and Integrity of Saongroup.com Personnel
The integrity and competence of personnel is ensured through high recruitment standards and subsequent training courses. High quality personnel are seen as an essential part of the control environment and the ethical standards expected are communicated through a corporate procedures manual. The appointment of senior executives within the Group requires the approval of the Board.
The Identification of Business RisksThe Board is responsible for identifying the major business risks faced by the Group and for determining the appropriate course of action to manage those risks. These are reviewed regularly by the Board throughout the year assisted by periodic reports from the senior management group updating the Board on newly identified risk areas, controls established in known areas and scoring risks on the basis of impact on the Group, likelihood of events and controls in place.
The Saongroup.com Budgetary Process
Each year the Board approves the annual budget. Key risk areas are identified. Performance is monitored and relevant action taken throughout the year through the monthly reporting to the Board on variances from the budget, updated forecasts for the year together with information on the key risk areas.
The Saongroup.com Group Ltd. Audit CommitteeThe Audit Committee reviews the effectiveness of the internal control process with management and reports on it to the Board. The Audit Committee also considers and determines relevant action in respect of any control issues raised by the auditors.