According to the Articles of association, the Company’s name is ALM Equity ab and the Company is public (publ). The Company’s registered office is in Stockholm. The Company shall, via wholly and partially owned companies, conduct project operations with respect to real estate and similar activities.
According to the Swedish Companies Act, the Board of Directors is responsible for internal control. The basis for internal control is the control environment, which is made up of several elements, which together form the culture and the values that govern ALM Equity. Governing the internal control are the decision paths, powers and responsibility documented and communicated in governing documents, such as the rules of procedure for the Board of Directors, the instructions for the President, the financial policy, attestation instructions and reporting instructions. Other internal policies, guidelines and manuals are also of importance for the internal control.
The Group’s profitability and its ability to carry out residential projects is affected by internal processes as well as external factors. When the outside world changes, the winners will be the players that are adaptable and are able to manage the risks and opportunities that arise. ALM Equity is of the opinion that the organisation possesses adequate capacity to adapt to changes in the world around us, and that there is a risk awareness that permeates the entire business, and which always is an element of the decision-making process irrespective of level in the Group. Routines for follow-up of projects are designed to identify and minimise operational risks, at the same time as changes in the surrounding world are monitored. The most significant risks identified by the Group are described in the annual report. Please see the annual report regarding risk and risk management on page 47-56.
Risks identified in the financial reporting are handled via the Company’s control structures and result in a number of control activities. These control activities are aimed at preventing, discovering and correcting errors and deviations and include, for example, analytical follow-up at several levels in the organisation, and comparison of profit items, account reconciliations, follow-up and reconciliation of Board of Directors decisions and polices adopted by the Board of Director, approval of the financial and authority structures, corporate signatory rules, joint group definitions, templates, reporting tools, and accounting and valuation policies.
The purpose of ALM Equity’s information and communication policy is to ensure effective and correct financial reporting. The Company’s insider policy and financial policy also deal with information and communication regarding the financial reporting. Policies and guidelines regarding the financial reporting, and updates and amendments, are made available and known to affected personnel. The Board of Directors receives additional information about risk management, internal control and financial reporting from the auditors via information at Board of Directors meetings with the auditors present.
Ongoing follow-up of results is performed at several levels in the Company, both at project level and at consolidated level. Follow-up is done against budget and forecasts. Results are analysed by the project department as well as by the financial department. Reporting is done to the President and the Board of Directors. The Company’s auditors must report directly to the Board of Directors at least once per year as instructed by the Annual General Meeting. The auditors must report their findings from the audit and their assessment of the internal control. These observations are then reported to the Board of Directors at the next-following Board of Directors meeting. The Board of Directors takes minutes of these reports and then follows up the minutes at a later meeting.
ALM Equity has a relatively small organisation where financial, accounting, as well as rental administration are handled by the Company’s offices in Stockholm. Follow-up of earnings and balance sheet items is performed on a quarterly basis by the various functions as well as by corporate management. All in all this means that it cannot be considered justified to have a separate internal audit unit.