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Internal Control Polices

Internal Control system includes procedures of duly informing of RENOVA SG bodies on any material deficiencies and weak points of control detailing activities taken or to be taken and which shall efficiently respond any risks.

Internal control is the process made by the Board of Directors, Internal Audit, Compliance Controller, Management Board, departments and officers of RENOVA SG and their activities shall reasonably enable achievement of RENOVA SG aims, including:

  • RENOVA SG performance efficiency
  • Security of assets, information and effective use of RENOVA SG resources
  • Completeness, reliability and authenticity of financial and management reporting of RENOVA SG
  • Compliance with the laws of Russian Federation and internal documents of RENOVA SG
  • risk minimization by introducing and maintaining an adequate risk management systems

Internal control system is a complex of policies, processes and procedures, code of conduct and actions facilitating efficient and rational activities which enable RENOVA SG to duly respond to material risks in achieving its aims.

Internal control system includes the following interrelated components:

  • control environment
  • risk assessment
  • internal control procedures
  • System of information support and exchange
  • Monitoring and assessment of internal control system efficiency

In RENOVA SG there is differentiation of competencies of the bodies included into internal control system subject to their role in development, approval, application and assessment of internal control in accordance with the laws, Charter, Corporate Governance Code and internal documents of RENOVA SG.

Board of Directors and Management Board create control environment which is to demonstrate importance of internal control and observance of ethical norms to the staff at all management levels and activities of RENOVA SG.

The Board of Directors is responsible for establishment of internal control systems in RENOVA SG. The Board of Directors takes measures to improve internal control systems and regularly monitors its efficiency.

The Board of Directors applies risk-informed approach for internal control efficiency and its assessment.

Management Board is responsible for development and introduction of the Policy on internal control system as approved by the Board of Directors, improvement of internal control processes and procedures, reliable functioning of internal control system and monitoring of internal control system.

Heads of RENOVA SG departments subject to their functions are responsible for development, documentation, maintenance, monitoring and improvement of internal control procedures in their lines of RENOVA SG activities.

Some functions of internal control may be entrusted to special departments and some officers of RENOVA SG.

Internal control system is based on the following principles:

  • Continuous functioning. Continuous and due functioning of internal control system enables RENOVA SG duly determine any deficiencies which affect activities of RENOVA SG and avoid such in future
  • Reporting of all subjects of internal control system. Quality of key functions performance is controlled by another subject of internal control system
  • Segregation of duties. RENOVA SG tries to avoid duplicating control functions and such functions shall be segregated between RENOVA SG officers so that one and the same person would not perform functions related to approval of transactions with certain assets, accounting of transactions, security of assets and their inventory
  • Due approval of transactions. RENOVA SG aims to established order for approval of all financial and economic transactions by the authorized bodies and persons within their powers
  • Independence of Internal Audit and its functional reporting to the Board of Directors (through Audit Committee)
  • Responsibility of all subjects of internal control employed by RENOVA SG for due performance of their key functions
  • Running of internal control on the basis of clear interaction of all bodies and departments of RENOVA SG
  • Continuous development and perfection. Internal Control system shall be flexible and adaptable to any changes of both internal and external conditions of RENOVA SG functioning and new tasks
  • Timely informing on any material deficiencies and weak controls. Bodies and departments of RENOVA SG shall duly inform bodies and/or persons authorized to take decisions on elimination of material deficiencies and weak controls.

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