Internal audit

Internal audit mission

Preserving and enhancing the value of the organization through objective internal audits based on a risk-based approach, providing advice and sharing knowledge.

The Company’s Internal Audit Policy

The Internal Audit Policy, being an internal regulatory document of the Company, developed in accordance with the requirements of the legislation of the Russian Federation, taking into account generally accepted practices and standards of internal audit activities, determines the basic principles of the organization and functioning of internal audit in the Company.

Internal audit is an activity to provide independent and objective guarantees and consultations aimed at improving the work of the Company. Internal audit is designed to help achieve the Company’s goals in the most effective and economically sound way, using a systematic and consistent approach to assessing and improving the effectiveness of risk management, internal control, and corporate governance systems.

The goal of internal audit is to assist the Board of Directors and executive bodies of the Company in increasing the efficiency of management of the Company, improving its financial and economic activities, including through a systematic and consistent approach to analysis and assessment of the risk management and internal control system, corporate governance as tools for ensuring reasonable confidence in achieving the goals set for the Company.

To achieve the goal, internal audit solves problems in the following areas:

• implementation and application of uniform approaches established in the Rosseti group of companies to the construction, management and coordination of the internal audit function in the Company and its subsidiaries;
• conducting an internal audit, participating in other verification activities in the Company and its subsidiaries;
• providing independent and objective guarantees regarding the reliability and effectiveness of the risk management and internal control system, corporate governance, as well as assistance to the executive bodies and employees of the Company in the development and monitoring of the implementation of procedures and measures to improve the risk management and internal control system, corporate governance of the Company;
• organizing effective interaction of the Company with the external auditor of the Company, the Audit Commission of the Company, as well as with persons providing consulting services in the field of risk management, internal control and corporate governance;
• preparation and provision to the Board of Directors (Audit Committee) and executive bodies of the Company (Sole Executive Body/Management Board) of reports on results of internal audit activities (including information on significant risks, shortcomings, results and effectiveness of implementation of measures to eliminate identified shortcomings, results of implementation of the internal audit activity plan, results of assessment of the actual state, reliability and effectiveness of the risk management and internal control system, corporate governance).

You can familiarize yourself with the Internal Audit Policy of Rosseti Centre, PJSC in the Information Disclosure section - Articles of Association and Internal Documents.

Internal Audit Department

Internal audit in the Company is carried out by the Internal Audit Department.

The Internal Audit Department is functionally subordinate to the Board of Directors of the Company (Audit Committee), administratively – to the Sole Executive Body of the Company.

The work of the Internal Audit Department is managed by the head of the department.

The head and employees of the department regularly improve their professional qualifications, including through participation in conferences of the Institute of Internal Auditors. For example, on 17-18 April 2023, the department’s employees took part in the XV National Conference of the Institute of Internal Auditors “Internal Audit in Russia”, and on 2-3 November 2023 – in the Autumn Conference of the Institute of Internal Auditors «Internal Audit in Russia».

The majority of employees of the Internal Audit Department have undergone voluntary certification in the field of internal audit for compliance with the requirements of the voluntary certification system of specialists/experts for internal auditors in accordance with the professional standard “internal auditor”, approved by Order of the Ministry of Labour of Russia dated 24 June 2015 No. 398, in the field of «Internal Audit».

The Internal Audit Department of Rosseti Centre, PJSC was recognized as the best internal audit unit of the Rosseti group of companies in 2023 as part of a contest held by PJSC Rosseti to determine the best departments and the best employees of the internal audit units, risk management and internal control units of the Rosseti group companies in 2023.