Communication with local Rabobanks
Corporate governance information on the Internet
Controls over financial reporting
ranks. The member council assumes the bulk of the powers of the General Meeting and
promotes and structures member control and engagement. The General Meeting continues
to exist, but decides only on major issues that impact the local Rabobank's continued
existence.
A closed Internet connection created specifically for the local Rabobanks gives them swift
access to useful information and fosters a high level of commitment to Rabobank Nederland.
Rabobank Group has placed information on its corporate governance and activities on its
public Internet site, including a full explanation of the areas in which Rabobank Group
deviates from the Dutch Corporate Governance Code. While Rabobank Group endorses the
Code's principles and implements the majority of its elements, it does not implement a
number of principles and best practice provisions on account of its cooperative structure.
Rabobank Group constantly seeks to improve its corporate governance and overall internal
controls, for example, by endorsing the principles of the Dutch Corporate Governance Code.
Rabobank Group seeks an open culture and transparent accountability in respect of policies
and supervision, and to remain in line with the leading risk management practices in the
world. The market demands heightened awareness of world-wide best practices in
governance and control, and Rabobank Group proudly embraces ethical business practices,
transparency and accountability.
In this spirit, Rabobank Group voluntarily assessed the internal controls over financial
reporting in a manner similar to what US-registered companies have done pursuant to Section
404 of the United States Sarbanes-Oxley Act of 2002 (SOX 404), even though Rabobank Group
is not a registrant with the United States Securities and Exchange Commission and, thus, is not
subject to the Sarbanes-Oxley Act or related regulations and oversight.
Rabobank Group believes that the review of its internal controls over financial reporting
has increased the effectiveness of those controls, including our ability to identify and to
remediate any deficiencies at an earlier stage. This results in greater transparency for all
stakeholders in the quality of Rabobank Group's financial reporting process. As a result of our
review, Rabobank Group has identified areas to improve, simplify and standardise specific
business processes.
Rabobank Group has established and maintains a comprehensive system of internal
control measures designed to ensure transactions are executed as authorised, financial
reporting is accurate and reliable, and assets are safeguarded.
Rabobank Group has implemented a process whereby finance and business executives
throughout the Group assess and attest to the accuracy of financial information as well as
the adequacy and effectiveness of internal control over financial reporting. Rabobank Group
has adopted policies and procedures that:
- pertain to the maintenance of records that in reasonable detail accurately and fairly reflect
transactions and dispositions of assets;
- provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union, and that receipts and expenditures are
made only in accordance with authorizations of management;
- provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of assets that could have a material effect on the
financial statements.
The internal control framework for the organisation and control of Rabobank Group's
activities is based on the framework set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). As set out in the report included in the financial
statements, the Executive Board concluded that Rabobank Group's internal control over
financial reporting is adequate and effective, consistent with the criteria established by COSO.
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Rabobank Group Annual Report 2007
