LensCrafters 2007 Annual Report Download - page 93

> 92 | ANNUAL REPORT 2007
Some specific responsibilities in the matter of auditing are assigned to the Board of Statutory
Auditors as the equivalent of the Audit Committee under SOX and this is described later on in this
Report. It is important to note that the identification of the Financial Expert by the Board of Directors
was made in the Board of Statutory Auditors as the equivalent of the Audit Committee under SOX.
The Committee meets at any time the Chairman deems it advisable or another member requests it
and, generally, before the Board meetings for the approval of the financial statements, the six-
month report, and the quarterly reports.
In cases in which the Committee finds appropriate to perform a more thorough analysis of the
items on the agenda, the Directors of the Company and of Luxottica Group also are invited to
participate, with their participation limited to those subjects.
In fiscal year 2007, the Committee met as indicated in the chart attached and it has, among other
activities: examined the financial risks of the Company and the management criteria pertaining to
the use of derivative instruments, examined the status of the lawsuits affecting the Group,
examined the proposal to review the parent company’s powers, examined - every six months - the
reports of the Supervisory Body and the Guarantor of the Code of Ethics, examined the quarterly
reports of the Person in Charge of Internal Control, and approved the annual audit plan.
The minutes are regularly recorded at each meeting that the President of the Board of Statutory
Auditors or an officer appointed by him attends.
The Internal Control Committee reports to the Board at least every six months concerning its
activities. The Committee may have access to information regarding the Company and its
operations in order to carry out its duties, as well as utilize external consultants.
On February 14, 2008, the Board of Directors allocated Euro 50,000 in order to provide to the
Committee adequate financial resources for the performance of its duties throughout fiscal year
2008. An equivalent allocation was made for fiscal year 2007. Please see Section III of this Report
for more details.
The Person in Charge of Internal Control. The Person in Charge of Internal Control is responsible
for ensuring the adequacy and the efficiency of the internal control system and proposing any
corrective measures, provided that adequate means to carry out his duties were provided.
Moreover, he has direct access to any information that may be deemed useful in carrying out his
duties.
The Board of Directors has appointed as the Person in Charge of Internal Control the Director of
the Internal Auditing of Luxottica Group.
The Person in Charge reports to the Chairman and to the Chief Executive Officer, who supervises
the operation of the internal control system and reports on the performance of his duties to the
Internal Control Committee and to the Board of Statutory Auditors. He is not responsible for any
operational area.
The compensation of the Person in Charge of Internal Control, an employee of Luxottica, has been
determined by the Company.
In fiscal year 2007, the Person in Charge has carried out his duties by implementing a plan of
activities and verifications related to the Company and its main subsidiaries. These actions, for
which the Person in Charge provided regular informational reports to the Chairman, the Chief
Executive Officer, the Internal Control Committee and the Board of Statutory Auditors, identified
areas for improvement in the internal control system for which specific plans, designed to
strengthen the foundations of the system, have been implemented.
Organizational, Management and Control Model pursuant to Legislative Decree No. 231/2001.
On October 27, 2005, the Board of Directors adopted the Organizational, Management and