Internal Control System
The Company’s Internal Control System (further referred to as the ICS) is an element of the overall management system of the Company. The ICS covers all the fields of the Company activities, control procedures are applied continuously to all the Company processes (fields of activities) at all management levels in order to ensure reasonable guarantees for achievement of objectives in the following areas:
- Efficiency and effectiveness of Company operation, integrity of the Company assets;
- Compliance with legal requirements applicable to the Company and local regulatory acts of the Company, including in connection with performance of business activities and financial accounting;
- Ensuring accurate and timely preparation of accounting (financial) and other reports.
Internal Control System
Function of ICS Elements
|Description||Function of ICS|
|Board of Directors|
|Audit Committee assigned to the Board of Directors|
|Other committees assigned to the Board of Directors|
Management Board of the Company
|Heads of Departments and Structural Divisions|
|Employees of the Company’s structural divisions who perform control procedures in compliance with their professional duties|
(Division of Operation Control, Division of Economic Security and Corruption Control, Division of Anticorruption Compliance Procedures, Quality Management and Operation Efficiency Department, Division of Legal Support, etc.)
|Control and Risk Department|
|Internal Audit Department|
Commentary-interview of the Audit Director E. A. Schegoleva
In 2015, the Internal Audit Department took active part in the methodological activities of PJSC «Rosseti»: the Company developed a range of local regulatory documents on organization of internal audit activities (some of these documents are already approved), such as Internal Audit Glossary, Guidelines on Performance of Internal Audit, Guidelines on Monitoring over Fulfillment of Anticorruption Action Plan, Guidelines on Internal Audit Planning, etc. These documents were developed based on the global professional practices in the field of internal audit and following the recommendations of Rosimushchestvo (Federal Agency for State Property Management) and the Bank of Russia for joint-stock companies and holding structures with participation interest of the Russian Federation. Even before official approval of the documents, in the course of its activities in 2015, the Company’s Internal Audit Department already pilot-tested the application of approach and regulations included into the draft documents, in particular, in order to receive feedback form the audited Company divisions, which had positive impact on the quality and efficiency of the Department’s operation.
The following activities are planned for 2016 in order to contribute to organizational independence and objectivity in the course of internal audit performance and improve the quality of activities:
- complete the methodological documents on the internal audit procedures;
- implement the project for internal audit automation.