The internal control system’s goal is to ensure that the strategic goals of ROSATOM and effective corporate management are achieved, along with a unity of purpose within the nuclear industry. One of the most important tasks is to maintain corporate governance mechanisms, primarily the controlling ones, so that they are adequate to handle changing external and internal conditions.
At the present time, the sectoral vertical system of the specialised internal control bodies (SICB) has a total staff of 265 and covers 42 organisations of the Corporation.
The main results of 2013 include:
- the SICB conducted 656 inspections, of which 96 were audits of A&S (146 organisations [41%] of the Corporation were covered by inspection activities); and
- the Internal Control and Audit Service conducted 38 controlled events, including 26 outdoor audits of organisations, 10 internal audits, and 2 expert and analytical exercises.
Findings from the 2013 control efforts confirmed the improvement of financial and economic discipline in the Corporation’s organisations. Economic operations involving departures from cost estimates decreased by 11%.
In 2012, the state control and supervision authorities, including the Audit Chamber of Russia, did not reveal any indicators of improper and unlawful use of budget funds and property.
Implementation of corrective measures
In 2013, the Corporation’s organisations were presented with 646 corrective measures, including 431 measures due in 2013, of which 97% were implemented.
Implementation of the corrective measures was 100% supervised.
Fig. Implementation of corrective measures imposed following the results of SICB inspections
Objectives of the Internal Control System’s development in 2014
In 2014, it is planned to:
- continue integrating control procedures into the Corporation’s processes, including controls that ensure the achievement of the Corporation’s strategic goals (while minimising excessive controls);
- complete implementation of the schedule of the compliance function development in the nuclear industry;
- develop the regulatory basis of the functioning of internal financial controls and audits; and
- pass an independent assessment and obtain a confirmation of compliance of the “internal audit” function to the International Internal Audit Standards.
In 2013, professional recognition of the IC&AS was confirmed with a certificate of appreciation granted by the Institute of Internal Auditors “For Contribution to the Profession’s Development” and awards from the Institute of Certified Financial Managers: for Building up an Effective Internal Control System, for Contribution to the Internal Control System’s Development, and for being “A Reliable Partner”.
Control of the stakeholders
In 2013, the Central Arbitration Committee of the Corporation and arbitration committees of the Power Generation and Fuel Divisions received 969 appeals from vendors concerning violations of the Uniform Sectoral Procurement Standard. Of them, 292 (30%) were deemed to be justified.
Over the reporting period, the efforts of the arbitration committees led to the saving of RUB 249 million.
For details, see the Report section “Procurement management”.
Fig. Direct savings owing to rulings of the Central Arbitration Committee, mln RUB
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