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• What drives us
• Executive Management Committee
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  • Board of Directors
  • Role of the Board
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  • Remuneration policy
  • Internal controls
  • External auditors
• Corporate Social Responsibility
• History

Internal controls

Overall responsibility for BBA Aviation’s system of internal control and for reviewing its effectiveness rests with the directors. Management is accountable to the directors for monitoring this system and for providing assurance to the directors that it has done so.

BBA Aviation's system of internal control is an ongoing process embedded in the group's businesses for identifying, evaluating and managing the significant risks faced by the group, including social, environmental and ethical risks. The process is reviewed for its effectiveness annually.

The system is designed to manage rather than eliminate the risk of failure to achieve business objectives. It can provide reasonable but not absolute assurance against material misstatement or loss, to the extent that is appropriate, taking account of costs and benefits.

The key features of BBA Aviation’s internal control system can be summarised as follows:

• Detailed written assessments of business, financial, compliance and operational risks by company, division and function carried out by the responsible executives are plotted on risk maps and reviewed by senior management at quarterly operating reviews. The outcome of these reviews is discussed twice each year at meetings of the Executive Management Committee and presented to the Audit and Risk Committee which, in turn, reviews the effectiveness of the group's systems of internal control on behalf of the Board;
• An organisational structure at head office and divisional level that clearly defines responsibilities for operational, accounting, taxation, treasury, legal, company secretarial and insurance functions;
• An internal audit function that undertakes a programme of risk based reviews of controls and business processes and regularly reports to the Audit and Risk Committee;
• A group Finance Manual which details accounting policies, procedures and financial controls applicable to all units;
• An annual budgeting exercise carried out in order to set targets for each of BBA Aviation's reporting units;
• Monthly detailed management accounts measuring actual performance against budget and forecasts submitted to management for review. A monthly report, based on these accounts, highlighting key issues and summarising the detailed financial information is then presented to the Board;
• Control of capital expenditure through budgets, with major projects requiring the approval of group directors;
• Defined procedures for investments and treasury management;
• Detailed matrices which define the levels of authority for BBA Aviation's senior executives and their direct reports in relation to acquisitions, capital expenditure, commercial and employee contracts and treasury matters;
• A requirement for Board approval for significant acquisitions and disposals;
• A Policies Manual setting out key policies and procedures for matters such as business ethics, bribery and corruption, gifts and entertainment;
• A Group Safety Management System Manual with policies and standards applicable to all of our companies. More information on health, safety and environmental matters (HSE) can be found in the Corporate Social Responsibility section of this website.