As part of its risk management system, Borussia Dortmund has an accounting process-related internal control system that defined appropriate structures and implemented them within the organisation. The aim is to ensure proper and effective accounting and financial reporting in accordance with the applicable accounting principles. The key features of the accounting process-related internal control and risk management system employed by Borussia Dortmund can be described as follows:
- Borussia Dortmund distinguishes itself through its clear organisational and corporate structures as well as its control and monitoring structures.
- The internal control and risk management systems as they relate to the accounting process form an integral part of operational and strategic planning processes.
- Responsibilities have been clearly assigned in all areas of the accounting process (such as financial accounting and management cost accounting).
- Reporting is carried out in monthly, quarterly, semi-annual and annual intervals, whereby a distinction is made between matters requiring immediate action by the Company and those involving Company strategy.
- The computer systems used in accounting are protected against unauthorised access. An access and roles concept is implemented that controls and documents the access rules.
- An adequate system of internal guidelines has been established and is adapted, expanded and updated on a continuous basis.
- The departments involved in the accounting process fulfil quantitative and qualitative requirements.
- The completeness and accuracy of the accounting data is checked regularly by reviewing samples and conducting plausibility tests, both manually and by means of software employed for this purpose.
- The principle of dual control is adhered to at all points in the Company’s accounting-related processes.
- The newly established Compliance, Risk Management and Internal Audit department applies a target-oriented and systematic approach to conduct independent, risk-based and objective audit activities to assess the effectiveness of corporate management, risk management and the control processes and help improve them.
- The management receives reports at scheduled intervals throughout the process or more frequently if necessary.
- The Audit Committee of the Supervisory Board deals with the key accounting issues, risk management and the audit assignment, among other things, and regularly reports to the Supervisory Board on these.
The accounting process-related internal control and risk management system, the key features of which are described above, ensures that transactions can be correctly recorded, prepared and accounted for in the financial statements in good time on the basis of applicable legal rules and regulations and accounting requirements. For financial year 2021/2022, the management of Borussia Dortmund has assessed the effectiveness of the accounting process-related internal control system and considers it to be viable. It must be taken into consideration as a matter of principle that an internal control system, no matter its structure, can never provide absolute certainty that material accounting misstatements will be avoided or detected.