significant item for financial reporting purposes is the Group’s intangible fixed assets, for which there is a process for valuation and ongoing monitoring. Risks related to financial reporting are regularly discussed with the company’s external auditors, who also present their risk assessment to the Audit Committee and the Board on an annual basis. Control activities Particular emphasis is placed on ensuring that the financial reporting gives a true and fair view at each reporting date, that there are control activities involving all levels of the organisation, from the Board and management team to other employees. The CFO is responsible for ensuring the day-to- day control of financial reporting. Financial controls in the company’s business processes include approval of business transactions, certification of supplier invoices, account reconciliations, power of attorney and authorisation structures, and monthly analytical performance monitoring. The Board and management of Hemnet receive information on a monthly basis about the Group’s results, financial position and other information about the development of the business. The Group does not have an internal audit function, but internal audit is managed through enhanced controlling and through
ongoing work to evaluate and improve processes, automation of tasks and evaluation and implementation of enhanced IT support linked to financial reporting. Hemnet has developed a reporting package for ongoing financial monitoring. Information and communication Hemnet’s publication of information and its corporate communications aim to ensure that accurate and effective information is available to all parts of the business, and that external stakeholders, including relevant authorities, receive access to relevant information. Governing documents in the form of policies and guidelines form the basis for Hemnet’s communication. In addition to these documents, which are available on Hemnet’s intranet, there are also internal information channels in the form of regular management forums, weekly information meetings for all employees and meetings within each department. Financial information is shared by management with the Audit Committee and the Board before each reporting date. The Audit Committee also receives regular information on activities to strengthen internal control over financial reporting. In order to ensure that external communication is correct, complete and timely, Hemnet has, among other things, a
communication policy adopted by the Board of Directors, as well as an instruction on information security. Hemnet employees have access to a whistleblowing system, which can be used anonymously if necessary.
Follow-up Hemnet’s Board and management
continually monitor the effectiveness of internal controls to ensure the quality of financial reporting processes. At each Board meeting, financial and operational developments of the business are reported and the Board receives a monthly report on the results and financial position - this information is then the basis for the Board’s review of all interim reports for publication. The Audit Committee has a specific responsibility to follow up on audit issues and major policy issues related to financial reporting, as well as to follow up on risk and internal control issues. Furthermore, the company’s external auditors evaluate internal control as part of the annual audit, after which recommendations are made that become part of the ongoing work to develop and strengthen internal control. Of particular importance for the Board’s follow-up is then tomonitor the effectiveness of management’s work in this area, including ensuring that action is taken on the shortcomings and proposals put forward.
ADMINISTRATION REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 35
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