Internal control

AcadeMedia’s internal control procedures are based on two perspectives: internal control and risk management with regard to the business operations, and internal control and risk management with regard to financial reporting. Internal control is performed to ensure that AcadeMedia’s financial reporting provides an accurate picture of AcadeMedia’s financial position and that the operations always meet the requirements and expectations of a company whose operations receive public funding.

AcadeMedia’s board of directors is ultimately responsible for ensuring that the Company complies with the requirements for internal control and control of its financial reporting. The board annually establishes a number of governance documents in order to support the actions of management and all employees in order to promote correct, complete and current accounting. Central documents available and every employee on the Company’s intranet, include rules of procedure for the board of directors, instructions for the CEO, the work allocation between them and overall policies.

Within the framework of the AcadeMedia Model, internal control includes implementing control measures for the Company and the Group and implementing annual customer, parent and employee surveys across the Group, where levels below certain limits result in action plans and further control and monitoring measures.

Internal audits have been performed for many years of the Group’s compulsory and upper secondary schools to verify that their operations meet the requirements in laws, regulations and other rules, and to serve as a tool for learning, development and quality work. The audits are performed by qualified individuals and include examining documents, visiting schools and interviewing school management, personnel and students. If any deficiencies are identified, action plans are presented. A similar follow-up model is also applied within the Group’s preschools.

AcadeMedia performs an overall risk assessment for the operations annually. Further information is found in the section Risk and risk management.

The Company continuously reviews and controls the Company’s operations in relation to established goals. The board’s follow-up measures are primarily carried out by the audit committee, for example by following up on the management’s and the external auditors’ reports.

The internal control system aims to ensure both the reliability of financial reporting and the monitoring of the Group’s quality results. It shall also guarantee the necessary monitoring of compliance with the Group’s policies, principles and instructions. Internal controls shall also ensure that the consolidated financial statements are prepared in accordance with the law and with applicable accounting standards, and that other requirements of the Group are met.

AcadeMedia’s internal steering and control are based on a model of three defence lines. The board has resolved to not put in place a separate internal audit function as the Company believes that the strengthened quality management system and the head of each business segment’s responsibility, together with the Company’s CFO, ensure the required level of control and that follow-up is carried out, among other things through reporting to the board. AcadeMedia’s operations are also inspected on a regular basis by the Swedish Schools Inspectorate.

AcadeMedia’s Board of Directors is ultimately responsible for ensuring that the Company complies with the requirements relating to internal control and control of financial reporting. The Board annually establishes a number of governance documents in order to support the actions of management and all employees to promote correct, complete and relevant accounting.