Data on internal control system
Internal control system of the Company is based on cooperation and distribution of powers of its entities (bodies and individuals), performing the elaboration, approval, appliance and evaluation of the efficiency of the internal control procedures.
The internal control system established in the Company presupposes that the control functions accompany all the levels of the Company’s operation management and the level of business processes.
The internal control system of the Company includes the following procedures:
- control over drawing of and adherence to the budget approved by Board of Directors;
- carrying out comprehensive and auditor’s checks, monitoring and analysis of the results of checks of the Company’s branches' activity;
- carrying out activities for prevention of violations by providing all departments of the Company with information on the revealed material violations and drawbacks;
- control over elimination of the revealed violations;
- revealing and analysis of risks of financial and economic activity of the Company;
- monitoring and elaboration of measures for minimization of risks of financial and economic activity;
- arrangement of accumulating, processing and transfer of operational, financial and other information on the Company's activity as well as establishment of effective channels and means of communication providing vertical and horizontal communications in the Company;
- determining employees` duties in the sphere of internal control and bringing this information to notice of the Company's employees;
- ensuring fulfillment of internal control procedures approved in the Company;
- appropriate documenting of internal control procedures;
- carrying out procedures for preventive control through the system of reconciliation of transactions terms, organizing tenders, auctions, commissions on the assets write-off, coordination of standards and other internal normative documents.
In order to effectively implement the internal control procedures the Company issued by the local documents, aimed at improving and developing the systems of internal control, audit and risk management of Kubanenergo JSC:
- Risk Management Policy of Kubanenergo JSC (BoD minutes No.90/2010 dd 31.05.2010)
- Internal control policy of Kubanenergo JSC (BoD minutes No.142/2012 dated 24.08.2012).
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