LensCrafters 2011 Annual Report Download - page 152

ANNUAL REPORT 2011> 76 |
This policy defines the rules and responsibilities for the management and collection of
credit in order to prevent financial risks, optimize revolving credit and reduce losses on
such credits. In particular, this policy sets the guidelines for the following activities:
• apportionment and control of the credit lines;
• monitoring of credit trends;
• soliciting unpaid/expired credits;
• management and control of undertaken legal actions;
• management and control of the appropriations and losses on credits;
• determination and control of terms of payment in the various markets; and
• control over warranty terms.
The Board of Directors annually assesses the adequacy, effectiveness and efficient
functioning of the control system, in accordance with the methods described in Section III
of this Report.
The Internal Control Committee
By virtue of its stock being listed in the United States, the Company is subject to the
provisions of the Sarbanes-Oxley Act, which, in terms of internal controls, impacts the
governance structure currently in place. In particular, some tasks are assigned in the
Luxottica Group to the Board of Statutory Auditors, which performs the functions of an
Audit Committee. More details are given in the relevant paragraph below.
On April 29, 2009, the Board of Directors appointed the following individuals as members
of the Internal Control Committee: Mr. Mario Cattaneo, Chairman, Mr. Marco Reboa and
Mr. Marco Mangiagalli. On July 28, 2009, Director Ivanhoe Lo Bello was also appointed
member of the Committee.
All the members have significant experience in accounting and finance.
According to the provisions of its Rules, last updated in July 2009, the Internal Control
Committee is responsible for performing investigations, offering consultations and
submitting proposals to the Board of Directors.
In particular, the Committee performs the following activities:
• assists the Board in the execution of its tasks regarding internal controls;
• evaluates (i) the work program of the Internal Control Officer and the regular reports
issued, (ii) the correct use of accounting principles, together with the manager
responsible for the preparation of the Company accounting records and the managers
and the auditors and (iii) the results of the activity performed by the Internal Auditing
function; and
• expresses opinions on specific aspects concerning the identification of corporate
risks as well as the planning, implementation and management of the internal control
system.
Specific expertise on auditing is assigned to the Board of Statutory Auditors, acting as
Audit Committee, described later on in this Report. Moreover, the Financial Expert was
identified within the Board of Statutory Auditors by the Board of Directors.