INTERNAL AUDIT COMMISSION
To create an effective framework for the control and audit of financial and operating performance, INTECO established an Internal Audit Commission.
The resolution of INTECO’s sole shareholder dated 5 November 2020 approved the following composition of the Internal Audit Commission:
- Lyudmila Telelyushina
- Tatiana Bokova
- Grigory Stekolshchikov
- Elena Zaitseva
Members of the Internal Audit Commission neither hold the Company’s shares nor purchased/sold them in 2020.
Born in 1982
Education: Russian State Tax Academy of the Russian Finance Ministry.
Born in 1968
Education: Moscow State Textile University, Interdisciplinary Institute for Advanced Studies at Plekhanov Russian Economic Academy
Born in 1983
Education: Moscow State University
Born in 1983
Education: Academy of Law and Management of the Federal Penitentiary Service of Russia, Institute of Market Economy, Social Politics and Law
INTERNAL CONTROL DEPARTMENT
In 2020, to improve the corporate governance framework, the former Internal Audit and Control Department was reorganised, completing the process of separating the functions of the 2nd and 3rd lines of defence. As a result, an Internal Control Department was created within the Internal Control and Asset Security Division, and an Internal Audit Office functionally reporting to the Board of Directors was established.
The Internal Control Department is the 2nd line of defence. It monitors the implementation of risk management practices, analysing and consolidating risk-related information and reporting it to management. It also ensures the development and revision of local risk management regulations, provides methodological support to other units, and provides recommendations to members of governing bodies and heads of business units.
In 2020, the Internal Control Department conducted ten inspections and had more than 87% of recommendations implemented on time. Over 20 procurement plans and more than 200 procurement procedures were reviewed. Additionally, it ensured constant monitoring of construction and installation works.
INTERNAL AUDIT OFFICE
The Internal Audit Office provides the Board of Directors with impartial information on the effectiveness of risk management and the reliability of the internal control framework.
In 2020, the Internal Audit Office conducted four audits. The following business processes were subject to internal audits: Sales Management, Development Project Management, Procurement Management, G&A Expenses Management. In general, the Company’s internal control framework was found to be in a good state. At the same time, the audits identified room for improvement.
To ensure effective control and audit of financial and operating performance, the Company engages an independent auditor. The auditor is selected by the sole shareholder and approved by the Board of Directors.
Ernst & Young LLC (77 Sadovnicheskaya Emb., Bld. 1, Moscow, 115035) was approved as the external auditor of the Company’s IFRS statements for 2020.
FinExpertiza LLC (47 Leningradsky Ave., Bld. 3, Moscow, 125167) was approved as the external auditor of the Company’s RAS statements for 2020.