Internal audit service

MISSION, NUMERICAL COMPOSITION, FUNCTIONS:

Internal audit service renders necessary assistance to the Board of Directors and to the Board in their duties on achievement of the Company’s strategic goals.

The main goal of activity of the Internal audit service is to present independent and objective information meant for efficient management of the Company by implementation of systematic approach into improvement of risk management, internal control and corporate management to the Board of Directors.

Director and employees of the Internal audit service are appointed by the Board of Directors. The Internal audit service is supervised by the Audit committee of the Company’s Board of Directors.

In 2013 actual personnel of the Internal audit service amounted to 7 persons. The head of the service is Akmaral Kakimovna Seidigalieva.

The Internal audit service performs its activity on the basis of key principles of international professional standards for internal audit.

IMPLEMENTATION OF PLANS WITHIN THE ACCOUNTING PERIOD:

• Within the accounting year the Internal audit service performed audit check of nine subsidiaries and affiliates and seven structural subdivisions of the Company’s Corporate center and performed eight out-of-schedule tasks.
• Audit check is performed is the following fields:
• Observance of acquisition regulations requirements;
• Implementation of investment projects;
• Funds management, using loans and resources allocated from the republican budget of the Republic of Kazakhstan;
• Observance of legal requirements of the Republic of Kazakhstan including those concerning natural monopolies and regulated markets and concerning competitiveness;
• HSE;
• Planning and budgeting.

Service performed diagnostics of corporate management, evaluation of corporate risk management efficiency and Company’s internal control efficiency. Diagnostics of corporate management in some key subsidiaries and affiliates was also performed.

Recommendations given by the Service are focused on improvement of corporate management, risk management and internal control.

Process of evaluation of IAS and its director’s activity.
Efficiency of the Internal audit service and its director’s activity is estimated quarterly according to the Procedure established by the Decision of the Board of Directors and approved by the Decision of Audit committee of the Board of Directors.

Results of evaluation of subsidiaries and affiliates activity:
Activity of the Service by the results of the year 2013 was evaluated by the Company’s Board of Directors as "Efficient".