“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

Internal audit service

Seidigaliyeva Akmaral Kakimovna

Head of the Internal Audit Service

International Certificate of Internal Auditor CIA (Certified Internal Auditor).

Diploma of the International Institute of Auditing and Management IFA "Internal Audit" (DipIFA).

Accountant's Certificate – CAP ECCAA Practice (Certified Accounting Practitioner).

Executive Master of Business Administration of SBS Swiss Business School.

The service helps the Company to achieve strategic goals and objectives by providing independent and objective guarantees and advice.

In 2018, the Service applied new approaches in performing audits. In previous years, the Service focused on conducting complex audits at subsidiaries and affiliates of the Company, and in 2018 end-to-end audits of business processes were conducted, considering the processes of the head office and its subsidiaries and affiliates as a single process.

With 7 people in the audit team, 21 scheduled and 2 unscheduled audit assignments were completed in 2018.

The priority of audit assignments is determined by selecting the processes with the highest available risks, as well as requests for conducting audits made by the Sole Shareholder and the Board of Directors of the Company are considered as a priority.

One of the important works performed by the Service in 2018 were:

  • assessment of the implementation of the Company’s Transformation program;
  • evaluation of the implementation of investment projects;
  • evaluation of human resource management processes.

Following the results of each audit, the Service provided recommendations and held consultations on processes improvement.

Moreover. the Service continued improving its performance in 2018, and developed the following:

  • Quality Assurance and Improvement Program, which allows evaluation the efficiency of internal audit and identify opportunities for improving its performance;
  • A guarantee map – identifies key risks for a business, the source and level of guarantees in reducing these risks.
  • A 3-year plan for the transition to audit checks based on testing of internal controls.

Continuous training and development of professional skills and competencies of the Service’s staff continues, since employees of the Service understand the need for professionalism; The Service’s employees and head participate in meetings of members of the Institute of Internal Audit, complete trainings in professional certifications on a regular basis. At present, the holders of the international certificate of the internal auditor of the CIA, the Diploma of the International Institute of Audit and Management IFA (DipIFA), the international certificate of CAP of ECCAA, the Diplomas of the Institute of Financial Managers of Great Britain (DipPIA and DiPCPIA) work at the Service.

According to the Service’s performance in 2018, the Board of Directors of the Company recognized its work as "Effective".

Also, independent consultants PricewaterhouseCoopers LLP awarded the Service a rating of “BBB” as part of evaluation of corporate governance level in 2018.

Quality Management System Audit

To ensure the stability of products and services’ quality, “Samruk-Energy” JSC has introduced quality management system since 2011, which is audited annually for compliance with the requirements of the ISO 9001 international standard.

The company realizes that the improvement of management systems based on international standards is essential for the dynamic development and strengthening of positions in the country’s energy market. Along with the internal audit, in 2018 the Company passed an External Supervision Audit for compliance with the requirements of the ISO 9001: 2015 international standard. The external Supervisory Audit was conducted in accordance with the procedures of TÜV NORD CERT with confirmation of the scope of the management system in terms of services on corporate energy assets management. According to the results of the External Supervisory Audit, the positive aspects of the development and operation of the corporate management system in the Company are noted.