Financial reporting and risk monitoring
Snam's internal control system over financial reporting aims to ensure the dependability, accuracy, reliability and timeliness of financial reporting and the capability of its business processes to produce this information in accordance with the accounting principles
The risk management and internal control model for financial reporting adopted by Snam was defined coherently with the provisions of Italian law and is based, in terms of method, on the "CoSO Framework" ("Internal Control – Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission), international reference model for the establishment, update, analysis and assessment of the internal control system.
The design, establishment and maintenance of the Internal Control System over Financial Reporting are carried out through scoping, identifying and assessing risks and controls (at corporate and process level, through risk assessment and monitoring activities), and the relevant information flows (reporting).
Scoping and risk assessment for significant processes are carried out based on a top-down, risk-based approach.
The scoping activities are intended to identify both Snam Group companies within the scope of the Internal Control System over Financial Reporting, defining the components to be applied for each one, and financial statement information and items that are significant for that purpose, as well as the associated processes.
The risk assessment activities for significant processes are aimed at identifying the specific activities likely to generate risks of unintentional error or fraud, which may have a significant impact on the financial statements.
For companies, processes and related risks considered significant, a control system has been defined based on two fundamental principles: disseminating controls to all levels of the organisational structure, in line with the operational responsibilities assigned, and sustaining the controls over time, so that they are integrated and compatible with operating requirements.
Both entity-level and process-level controls are subject to regular evaluation (monitoring) in order to verify over time the adequacy of their design and their operational effectiveness. To this end, ongoing monitoring activities have been entrusted to the management responsible for significant processes/activities, and separate evaluations have been entrusted to the Internal Auditor, who operates in accordance with a plan agreed with Snam CFO who is also, in accordance with Italian law, in charge as "Executive responsible for preparing corporate accounting documents". The plan aims to define the scope and objectives of its actions through agreed audit procedures.
Furthermore, the Board of Directors of Snam appointed the independent auditing firm Reconta Ernst & Young to examine the adequacy of the Internal Control System in connection with the preparation of the financial reporting for the drafting of the annual financial report and the consolidated financial statements of Snam S.p.A., through the carrying out of independent autonomous checks on the efficacy of the design and usability of the control system itself.
There is periodic reporting on the status of the control system, using IT tools to trace information to evaluate the adequacy in terms of design and operationif design is adequate and controls function well. Based on this reporting, the Executive responsible for preparing corporate accounting documents prepares an yearly and a half-yearly report which is shared with the Chief Executive Officer and submitted to the Board of Directors, following a report to the Control, Risk and Related Parties Transactions Committee and the Board of Statutory Auditors, upon approval of the consolidated financial statements, the draft separate financial statements and the half-yearly financial report. Furthermore, the CFO, in agreement with the Chief Executive Officer, issues the statements envisaged by Italian law to guarantee financial reporting.
On 27 September 2016 the Board of Directors appointed Franco Pruzzi as Executive responsible for preparing corporate accounting documents. Franco Pruzzi is currently Snam’s Head of Financial Reporting and Administration.
04 October 2016 - 19:13 CEST