OVERSIGHT

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.

Lyudmila Telelyushina

Born in 1982

Education: Russian State Tax Academy of the Russian Finance Ministry.

Positions held in 2020
Organisation Position
Rosgosstrakh Insurance Company Chief Auditor, Internal Audit Department
Bank TRUST Head of Inspections, Internal Control Service
INTECO Member of the Internal Audit Commission
A member of internal audit commissions at nearly 40 companies.

Tatiana Bokova

Born in 1968

Education: Moscow State Textile University, Interdisciplinary Institute for Advanced Studies at Plekhanov Russian Economic Academy

Positions held in 2020
Organisation Position
INTECO Member of the Internal Audit Commission
Bank TRUST Chief Expert, Office for Audits of Subsidiaries and Affiliates
A member of internal audit commissions at nearly 40 companies.

Grigory Stekolshchikov

Born in 1983

Education: Moscow State University

Positions held in 2020
Organisation Position
INTECO Member of the Internal Audit Commission
Research and Production Corporation United Wagon Company Member of the Internal Audit Commission
Cinema Park Member of the Board of Directors
Rosskat Member of the Board of Directors
TRUST SM Member of the Board of Directors
TRUST Real Estate Member of the Board of Directors
OTD YASENEVO Member of the Board of Directors
Bank TRUST Advisor
A member of internal audit commissions at nearly 40 companies.

Elena Zaitseva

Born in 1983

Education: Academy of Law and Management of the Federal Penitentiary Service of Russia, Institute of Market Economy, Social Politics and Law

Positions held in 2020
Organisation Position
INTECO Member of the Internal Audit Commission
Bank TRUST Deputy Head of HR Department
A member of internal audit commissions at nearly 40 companies.

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.

EXTERNAL AUDIT

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.