Internal Control and Audit
In 2010 the Company set up the Internal control and audit department (ICAD) reporting directly to the Company's Director General. The ICAD's objective is to ensure that the Company's management has complete and accurate information about the financial reporting, compliance with the legislation and internal regulations, and executing decisions of management bodies.
In 2011 a number of new internal regulations controlling the activities of ICAD have been approved, including:
- new edition of procedure for inspections and internal audits of the business processes that takes into account the differences in the approaches to audits of certain aspects of financial and economic activities, internal audits and procurement audits;
- JSC "TECHSNABEXPORT" procedure for compensation of damage and remedying breaches (shortcoming) identified in the course of control activities conducted by internal control bodies.
In accordance with the Master plan of control measures of the State Atomic Energy Corporation ROSATOM an internal audit of compliance with the licence of Rostechnadzor № GN-05-401-1638 was conducted in the reporting year. Based on the outcome of the audit a number of recommendations were developed and taken into consideration with a view to improve the processes associated with the validity of the licence.
There are plans to employ the following measures as part of internal control and audit procedures in 2012:
- further implement regulatory documents drafted under the project for "Developing a mechanism of comprehensive evaluation of current internal control systems in the State Atomic Energy Corporation ROSATOM and its organisations";
- conducting audits of the internal control system of the JSC "TECHSNABEXPORT" financial reporting for the following processes: "Accounting of the distribution of products/goods", "Accounting of tax liabilities" as well as the audit of the preparation of public annual reporting;
- audit of how efficiently the money allocated for the social development is being spent.