150 / 164
INFORMATION REGARDING THE COMPANY AND CORPORATE GOVERNANCE
150
LISI 2015 FINANCIAL REPORT
process is approved first by the Executive Committee and
then by the Board of Directors. Progress on preparation of the
budget is assessed monthly at all levels: business units (B.U.);
Divisions and Group-level teams.
■■
The monthly consolidation of management indicators, the
income statement, the balance sheet and the funding table
allow a precise measure to be obtained within a short time of
year-end. This facilitates the decision-making process.
■■
The purchasing and investment process falls within the scope
of the strategic and budgetary mechanism. Any purchasing
or investment commitment that deviates from the budget
authorizations must have prior approval at the appropriate
level.
■■
The sales and contract process is carefully reviewed by the
local teams, BUs, divisions or Group-level teams, depending
on the materiality level, before the actual commitment is
made.
■■
The Cash Flow-Finance process also involves specific
commitments. So for instance all financial investments are
managed at Group level.
■■
The pay process is managed at operational unit level and is
regularly reviewed both by the internal audit team and by
external auditors.
■■
The Health, Safety, and Environment (HSE) process involves
a monthly review of management indicators (industrial
accident rates, non-compliances, etc.) and of the main
corrective action plans.