3.6

Board of internal auditors

Financial and economic performance is overseen by the Board of Internal Auditors, as stated by par.24.1 of the charter. The competence of the Board, as envisaged by par.24.3 of the charter, includes:

  • Validation of data presented in the Company’s annual report, annual financial statements, P&L statements;
  • Analysis of Company’s financial position, detection of reserves to improve Company’s financial position and preparation of recommendations to Company’s managing bodies;
  • Arrangement and conduct of the audit, namely:
  • Audit of financial, accounting, payment and other documents with regard to Company’s financial and economic operations to see whether documents comply with laws of Russia, Company’s charter, bylaws and other documents;
  • Oversight whether fixed assets are protected and used in a proper manner;
  • Oversight whether bad debt writing-offs comply with established procedure;
  • Oversight whether Company’s monetary resources are spent in line with the approved business plan and budget;
  • Oversight how Company’s reserve fund and other funds are generated and used;
  • Oversight whether dividends, bond interests, yield on other securities are calculated and paid in a proper manner;
  • Oversight whether orders, issued earlier to eliminate exposed violations and problems, are executed;
  • Other auditing-related activities.

The Board of Internal Auditors consists of 5 members, elected by the Annual General Meeting. During the reported period the Board of Internal Auditors conducted 6 compresence meeting. The Board is as follows1:

Name Position
Membership 1 (27.06.2014-18.06.2015)
Svetlana Anatolyevna KIM Head of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Elena Polikarpovna KUZNETSOVA Head of Comprehensive Audit and Inspections Section of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Sergey Vladimirovich MALYSHEV Leading expert of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Sergey Ivanovich OCHIKOV Leading expert of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Irina Pavlovna LUKOVKINA Leading expert of Directorate for Oversight and Risks of Internal Audit and Control Department at Rosseti (PAO)
Membership 2 (18.06.2015 – present day)
Marina Alekseevna LELEKOVA Head of Internal Audit and Control Department at Rosseti (PAO)
Svetlana Anatolyevna KIM Head of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Artem Nikolayevich KIRILLOV Head of Investment Audit Section of Directorate for Inspections and Internal Audit of Internal Audit and Control Department at Rosseti (PAO)
Igor Vladimirovich SHMAKOV Head of Directorate for Oversight and Risks of Internal Audit and Control Department at Rosseti (PAO)
Tatyana Viktorovna ZAYTSEVA Leading expert of Methodology Section of Directorate for Oversight and Risks of Internal Audit and Control Department at Rosseti (PAO)

1.Members of the Board provided consent to disclose personal data in the annual report in line with laws of Russia.
2.Positions are as of nomination date.

Remuneration amount and payment procedure are stipulated by the RegulationsNo.57-ref. The Board of Internal Auditors and engaged experts earned RUB 825.0 mn (incl. applicable taxes) during 2015.