Page 17 - OeEB-AnnualReport_2013

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OeEB Annual Report 2013
Management report
Control activities
In addition to the Supervisory Board and Executive
Board, the general control environment also encom-
passes middle management, such as the department
All control activities are applied “in-process” during
the regular ongoing operation of the business proces-
ses in order to ensure that potential errors in financial
reporting are detected and corrected.
The Executive Board, working with OeKB, is responsi-
ble for ensuring that the levels of the reporting
hierarchy are structured such that a given activity and
the controls on the activity are not performed by the
same person (i.e., ensuring the strict separation of
Control activities concerning information technology
security represent a cornerstone of the internal control
system. Thus, the segregation of sensitive responsibili-
ties is supported by the restrictive assignment of IT
privileges. SAP ERP Central Component 6.0 software
is used for accounting and financial reporting. The
functioning and effectiveness of this accounting
system is assured, among other ways, by automated IT
controls installed in the system. OeEB’s IT function has
been outsourced to OeKB; as a result, the same high
security standards are applied as at the parent
Information and communication
The financial reporting requirements are regularly
updated by management and communicated to the
staff concerned.
As well, the Group accounting staff members involved
receive frequent training regarding changes in inter-
national accounting practices in order to be able to
detect risks of inadvertent reporting deficiencies at
an early stage.
Ultimate responsibility for the enterprise-wide ongoing
monitoring of business processes rests with manage-
ment and the Supervisory Board. The respective
department heads are responsible for the monitoring
of the relevant areas of activity; for example, checks
and validations are conducted at regular intervals.
Group Internal Audit is also involved in the monitoring
process. The system of internal control likewise
performs a monitoring and oversight function.
The findings of the monitoring activities are reported to
management and the Supervisory Board. The Executi-
ve Board regularly receives summarised financial
reports such as monthly financial statements as well
as risk reports. Financial statements intended for
publication undergo a final review by accounting
management staff (at Group and OeEB level) and by
the OeEB Executive Board before being forwarded to
the OeEB Supervisory Board.
III. Research and development (R&D)
As a result of its particular mandate, OeEB does not conduct R&D.
Vienna, 31 January 2014
Andrea Hagmann
Michael Wancata
Member of the Executive Board
Member of the Executive Board