Internal Audit
A subdivision in charge of implementing an internal audit function in the Company is the Internal Audit Department. As of 31.12.2018, staff number in the Internal Audit Department amounted to 12 people and actual headcount – to 11 people.
The Internal Audit Department is functionally subordinate to the Company Board of Directors, and administratively – to Company Director General.
The Board of Director exercises control and organizes activity of the Internal Audit Department.
Internal audit is aimed at rendering assistance to the Board of Directors and executive bodies of the Company in the improvement of efficiency of Company management, improvement of its financial and economic activity, including by means of systemic and gradual approach to analysis and evaluation of risk management systems, internal control and corporate management as tools of assuring reasonable confidence in the achievement of goals set to the Company.
Tasks, main principles of internal audit organization and functioning, functions and powers of the Internal Audit Department are defined in the Policy of Internal Audit of PJSC IDGC of SiberiaApproved by resolution of the Board of Directors dated 28.02.2017 (Minutes No. 223/17 dated 03.03.2017).
The Company approved the following main documents regulating the function of internal audit:
- Company Policy of Internal Audit and Code of Internal Auditor EthicsApproved by resolution of the Board of Directors dated 28.02.2017 (Minutes No. 223/17 dated 03.03.2017)
- Program on Internal Audit Quality Guarantee and UpgradeApproved by resolution of the Board of Directors dated 26.12.2016 (Minutes No. 216/16 dated 28.12.2016)
- Regulation on the Internal Audit DepartmentApproved by resolution of the Board of Directors dated 31.08.2016 (Minutes No. 202/16 dated 02.09.2016)
- Internal standards of internal audit and practical application designed on the basis of International Professional Standards of Internal Audit
In 2018 the Internal Audit Department carried out 21 control events.
Following results of control events held by internal audit in 2018, 190 corrective actions aimed at elimination and prevention in the future of violations and drawbacks revealed were designed, including 139 actions planned for 2018, among which 137 were implemented.
Implementation of corrective events is controlled by the Audit Committee within the Company Board of Directors by listening to periodic reports of Company management on implementation of plans for corrective actions for elimination of defects detected by Company Revision Commission, Company internal auditor and external control bodies.