Specialized body on internal control (SBIC) a subdivision of TVEL Fuel Company’s organization engaged in internal control activities with respect to various spheres of business.
SBIC of TVEL JSC (the unit of the Director for Internal Control and Audit) operates in accordance with regulatory legal acts of the Russian Federation, local regulations of TVEL JSC and Rosatom State Corporation, and the provisions on these structural subdivisions.
SBICs were created in 9 companies of TVEL Fuel Company: AECC JSC, VNIINM JSC, KMZ PJSC, MSZ PJSC, NCCP PJSC, SGChE JSC, UEIP JSC, ChMP JSC.
RESULTS 2018
In accordance with the approved plans of control activities for the next half year of 2018, SBIC employees conducted 92 control activities in TVEL Fuel Company.
The inspections conducted at the enterprises of TVEL Fuel Company revealed violations and deviations in implementation of financial and economic operations.
Based on the revealed facts, corrective measures were developed, and disciplinary measures were applied to employees who committed violations.
In accordance with Rosatom Internal Control Development Concept the main purpose of ICS is to promote the achievement of the Fuel Company’s strategic goals, to contribute to corporate governance improvement in TVEL JSC and companies forming the management system of the Fuel Company, in compliance with the requirements of the Russian Federation law, regulatory state authorities and international standards.
The purpose of ICS development is to maintain corporate governance mechanisms, primarily the regulatory ones, consistent with changing external and internal conditions.
Apart from the scheduled inspections, the workers of SDIC in TVEL Fuel Company conduct unscheduled inspections by the order of the governance. They also participate in the working groups in the audits of their organizations and in inspections conducted by Rosatom State Corporation.
Since September 2012, the Arbitration Committee operates in TVEL JSC; the Arbitration Committee is vested with authority to consider complaints against actions (or omission thereof) of customers, competent authorities, procurement managers, or procurement commission during the implementation of procurement procedures on behalf of the organizations of TVEL Fuel Company
THE KEY DIRECTIONS FOR THE INTERNAL CONTROL SYSTEM DEVELOPMENT IN TVEL FUEL COMPANY ARE AS FOLLOWS:
- further integration of adequate control procedures in the processes, and allocation of duties and responsibilities to the participants of the processes for the efficiency of internal control;
- development of mechanisms for involving critical stakeholders in internal control activities;
- ICS reliability and efficiency monitoring development by introduction of various methods to promote continuous and regular assessment of the internal control system state;
- SBIC competence and potential development
performed in 2018
INDICATOR | 2016 | 2017 | 2018 | 2018/2017, % |
|---|---|---|---|---|
Number of control activities in accordance with the plan, including: | 125 | 118 | 92 | 78 |
with Audit Committees | 2 | 1 | 0 | 0 |
audit of financial and business activities including procurement and personnel record management | 75 | 71 | 29 | 41 |
internal audit | 8 | 16 | 30 | 187 |
In 2018, SBIC conducted the “Nonconformity Management” audit in TVEL JSC, the results of which confirmed a high culture of output product quality within the Fuel Division.
INDICATOR | 2016 | 2017 | 2018 | 2018/2017, % |
|---|---|---|---|---|
Number of complaints, including: | 118 | 129 | 117 | 91 |
justified | 15 | 9 | 8 | 89 |
partially justified | 2 | 7 | 9 | 128 |
not justified | 56 | 63 | 55 | 87 |
withdrawn | 13 | 12 | 25 | 200 |
not considered | 32 | 38 | 20 | 53 |
THE OBJECTIVES OF THE COMPANY IN 2019:
- introduction of a new, more efficient management model with the creation of an expert-methodological center for internal control and audit in TVEL JSC;
- shifting a focus towards internal audit while minimizing the risk of violations;
- increasing the competence in the field of internal audit;
- timely and full identification of material violations in the activity of the companies of TVEL Fuel Company, identification of “weak” places at control facilities and development of recommendations for the integration of preventive control procedures;
- contribution to the achievement of strategic goals of the Fuel Division with regard to increase of the share in the international market, reduction of prime cost, increase of revenue from new products.