Vopak’s reliable financial reporting is the result of dependable systems, clear procedures, internal controls, analyses and segregation of duties applied by honest and reliable professionals and rounded off by appropriate audit efforts. Follow up of findings from internal and external audits are discussed with terminal and divisional managers each quarter. Vopak devotes considerable attention to all these matters and to continuous improvement through the Maturity Profile programme. A number of important examples and actions within this programme are described below.

Our reporting structure is characterised by a strict and clearly-defined process with frequent consultation between the various management levels. The cycle consists of a brief report immediately after the end of the month, regular monthly  and  quarterly  reporting  and,  of  course,  the  year-end closing. As part of this cycle, actual results are compared against agreed plans and budgets. The reports and related discussions are not limited to the financial results, but also encompass Key Performance Indicators on operational, staff and commercial matters. Whenever possible, joint ventures and associates participate in this cycle, with, at a minimum, the Vopak representative on a body of the entity and in a supervisory  capacity  paying  particular  attention  to  these same aspects.

Vopak has an efficient internal control structure as a number of controls are automated, thus reducing the risk of deviations and errors. A specific group of financial representatives from the head office and all the divisions is responsible for the continuous application and optimisation of the internal control procedures. The relevant employees at all terminals are thoroughly tested on their knowledge of IFRS and where there is room for improvement, the employee concerned is given  help  and  enrolled  on  supplementary  training  programmes. This programme will be continued in 2008.

Each year, terminal and divisional managers assess the structure and effectiveness of their risk management and internal control systems. The Control Risk Self-assessment questionnaire used for this is also a key tool for the internal Letter of Representation.  The  answers  in  the  questionnaires  and Letter of Representation are discussed with the Executive Board. Any action plans are followed up in the standard planning and control cycle and examined in internal audits.