4.1. Corporate Governance 4.2. Internal Control and Auditing 4.3. Risk Management 4.4. Property Management 4.5. Purchase Management 4.6. Quality Assurance

4.2. Internal Control and Auditing

Internal control and auditing in Rosenergoatom Concern JSC are targeted at ensuring legitimacy and relevancy of financial discipline, efficiency of production and management activities, as well as enhancing attainability of strategic goals.


On the basis of the requirements applicable to the organizations of Rosatom State Corporation, the Concern shaped a reliable and efficient system for internal auditing aimed at enhancing attainability of the Concern's activity goals, efficiency of corporate governance, and ensuring integrity of management while unconditionally maintaining compliance with safety requirements, legal standards, and international agreements.

The main objective of internal auditing in 2015 was related to increasing efficiency of the auditing activity.

In particular, timeliness of out-of-court disputes settlement and legitimacy of reviewed procurement procedures were ensured during organization of the competitive policy auditing. This allowed minimizing incidence of arbitration cases, applications to regulatory, supervisory, and law enforcement bodies, as well as duration of investment programs and maintenance campaigns implementation:

  • Reduced term of complaints revision by the Arbitration Committee by 22% if compared to the standards defined in the Uniform Industrial Procurement Standard (by four days per each complaint on average);
  • Active use of the mechanism of extraordinary in-house audits of purchases when considering complaints;
  • Enforcement of all decisions of the Arbitration Committee by organizations of the Power Engineering Division;
  • Absence of the Arbitration Committee decisions cancelled (changed) by the instance of appeal, and/or the Federal Antimonopoly Service.




The basic functions of internal audit and supervision are vested in the structural unit headed by the Concern's Chief Controller — Internal Control Department.

The Internal Control Department activities are based on local regulatory acts, and best practices of internal audit and supervision, ensuring unbiased appraisal of the internal auditing system, discovering hidden threats, losses and risks, organizing supervisory operations.

In 2015, the Internal Control Department performed 18 supervisory operations in such important areas as:

  • Implementation of investment projects (verification of efficiency of funds use for new power units construction);
  • Management of inventory (current status of the inventory operations at NPPs were analyzed, recommendations were prepared);
  • Status of financial and economic activities of Energoatominvest LLC subsidiaries (several second-tier subsidiaries of Rosenergoatom Concern JSC were checked in NPP satellite towns);
  • Procurement and contracting activities (the level of procedural regulation was improved);
  • Claim related work (measures are taken to split responsibility for initiation and administration of contracts);
  • Acquisition of services (mandatory substantiation was introduced for services purchase from the third-party organizations showing signs of redundancy of the core structural units' functions).

According to the operations results, measures were taken to minimize internal and external risks, including 684 administrative and technical measures were scheduled and accomplished (are being accomplished) for rectification of violations and deficiencies discovered (379 in 2014); 101 local regulatory acts were introduced/amended (33 in 2014).

The following priorities of internal auditing were defined for 2016:

  • Identification of economic losses, search for overhead costs, development of proposals and recommendations for their rectification or minimization.
  • Absence of decisions by instances of appeal of Rosatom State Corporation, Russian Federal Antimonopoly Service, and courts, for the cancellation (amendment) of the Arbitration Committee conclusions.
  • Improvement of the auditing activity efficiency simultaneously with staffing optimization.


Transparency and reliability of the organization's financial statements define long-term prospects for the business development and lay the basis for its investment attractiveness. External auditing allows reducing risks for stockholders, on one hand, and broadening the range of potential investors, on the other.

Therefore, in compliance with legal requirements, the Concern is annually subject to external auditing — assessment of accounting statements by an external auditor according to international or national standards.

Financial and Accounting Advisors Limited Liability Company (FAA LLC) was selected for accomplishment of mandatory auditing of the annual accounting (financial) statements in 2015.

Selection of the external auditor was performed on the level of Rosatom State Corporation as part of general centralization of accounting and taxation processes, budget planning, internal control of financial reporting, and risk management. The external auditor selection procedure was carried out according to the provisions of the Unified Industrial Standard (Procurement Regulation) of Rosatom State Corporation. FAA LLC auditors studied the annual financial statements prepared for 2015 according to Russian Accounting Standards by several enterprises of Rosatom State Corporation, including the Concern.