Boskalis jaarverslagen 2011

Structure of the financial reporting

Financial reporting at Boskalis is structured within a tight framework of budgeting, reporting and forecasting. Reports may be for external or internal use. External reporting consists of an annual report, including financial statements audited by the external auditor, as well as a half-yearly report containing abridged financial information, both consolidated and segmented. The external reports are drawn up in accordance with EU-IFRS on the basis of the internal financial reporting.

Internal financial reporting or ‘management reporting’ consists of extensive consolidated quarterly reports dealing with actual developments compared to quarterly (cumulative) budgets. Quarterly forecasts are also drawn up of the annual results, cash flows and balance sheet positions at the end of the financial year. The quarterly budgets are part of the annual group budget, which is set every year by the Supervisory Board and the Board of Management. The internal financial reporting has a layered structure – in accordance with the internal allocation of management responsibilities – with consolidation taking place level by level, starting with the projects, moving on to the business units and divisions and ending with group consolidated reports. Project and contract managers are responsible for budgets, income statements and balance sheets for their projects or contracts, which are drawn up in accordance with applicable guidelines and instructions. In turn, business unit managers are responsible for the financial reports of their business units.

Part of the equity consists of investments in associated companies. Boskalis is represented on the board of those associated companies in which it holds a significant participating interest, and as a result has access to (interim) reporting. The figures of significant holdings are verified by an external auditor.

The Board of Management discusses the quarterly reports in formal quarterly meetings with the relevant business unit managers. These meetings are minuted. The consolidated group reports are discussed with the Supervisory Board every quarter.

The structure and quality of the financial accounting and control systems of Boskalis and its group companies are safeguarded by unambiguous and regular internal and external audits. Relevant aspects of the financial accounting and control systems are set out in manuals, guidelines and procedures, all of which are available electronically. Staff is trained in the application of accounting standards, guidelines and procedures. Internal audits to monitor and improve quality and discipline are also conducted on the basis of random and ad hoc investigations (‘financial audits’) that also contain elements of instruction and training. Moreover, the quality of the financial control systems is evaluated regularly in the context of the activities of the external auditors, who report 
on it in the management letter.

Added to My report add to My report Source: Annual review 2011, Report of the Board of Management, page 53