Ubisoft 2014 Annual Report Download - page 203

Governance and Internal Control
2014
198
Clear goals and responsibilities
The division of powers and responsibilities is clearly defined by the organization charts.
In order to enable the various operational teams to achieve their goals, temporary and permanent
operational and banking authorizations are granted. These are frequently reviewed by the Treasury
Department assisted by the Administration Department and are updated to reflect any changes in
roles and responsibilities. General management defines the rules for delegating power to subsidiaries.
Consequently, at an individual level, each major subsidiary has local internal control procedures
(delegation of bank signing authority, verification of day-to-day transactions, segregation of duties
between the signatory and the person preparing the payment, limitation of payments by check to
guarantee effective fraud prevention, etc.).
Similarly, budgetary goals are defined annually by the general management and monitored in each
subsidiary by the accounting and finance teams. Management audit teams monitor business
performance. At subsidiaries, these teams provide relevant cost analyses to operational managers so
that they can reach suitable management decisions. This information is periodically reported in a
standard format and is consolidated by head office teams, who analyze the differences between
objectives and actual performance.
Human resources policy
HR policy is key to the internal control system and its effectiveness. HR teams at each of the
subsidiaries are responsible for establishing and implementing the policy, programs and systems
required to meet recruitment goals set at Group level, while ensuring the development of employees’
skills and potential.
These teams also ensure compliance with local regulations and apply the Group’s policies on
improving collective and individual performance through regular appraisals, development plans,
appropriate training, stock options, employee share subscription plans, etc.
Adapted solutions and operating methods
The IT teams provide the different business lines with solutions that are adapted to their activities.
They define, implement and operate these solutions. The range of solutions used includes commercial
software as well as tools developed internally. This range is constantly evolving in line with the ever
increasing requirements in managing and analyzing information, while ensuring compliance with the
security standards in place at Ubisoft.
Similarly, each subsidiary and team strives to continuously improve processes and documentation.
This also involves frequently reviewing and updating procedures to ensure uniform application. These
procedures are made available to the relevant teams through collaborative tools developed by the
Group.
Procedures relating to the preparation of accounting and financial information are described in section
1.8.3.
1.8.2.2 INTERNAL PUBLICATION OF INFORMATION
To effectively communicate strategic goals and provide the resources needed by teams to fulfill their
duties, Ubisoft encourages information-sharing through internal collaborative tools. In addition to local
briefings and an organized internal communications network, a portal accessible to all Group
employees was set up in 2007. This portal ensures permanent and up-to-date access to all information
relating to the Group, the market and its developments, and to other intranets. These frequently
updated intranets facilitate knowledge-sharing between the Group’s various business lines, for
example:
o Operational:
- Workspaces dedicated to sharing information on projects, developments, technologies,
studies and analyses.
o IT:
- A shared database comprising functional and technical documentation on applications
and projects led by IT departments.
o Accounting, finance and management control:
- A shared database, only accessible to the relevant employees, providing procedure
manuals, Group contacts and information on the financial reporting cycle.