JSC Aeroflot has an effective system of controls in place to ensure maximum transparency, financial efficiency and compliance of all aspects of the business with legal requirements. The company uses internal and external control mechanisms to enable comprehensive analysis and assessment of corporate governance and risk management, and to establish the accuracy of information of a financial and economic nature, which is disclosed. The Internal Audit Department of JSC Aeroflot supervises the activities of branches and representative offices, and a Revision Commission was also been created, which ensure that Company business is in accordance with the interests of the Company’s shareholders and with regulatory requirements. The Company regularly uses the services of external auditors to review and confirm the accuracy of its financial statements prepared to Russian and international standards.
The Internal Audit Department
Internal audit at JSC Aeroflot is carried out by the Internal Audit Department, which reports directly to the Company CEO and is subordinated in its operations to the BoD Audit Committee. The Internal Audit Department was created by a resolution of the Board of Directors dated 01.07.2009. The Department carries out its duties with due account for international professional standards of internal audit and for the principles of independence, objectivity, competence and professionalism.
The responsibilities of the Internal Audit Department include conducting internal audit of structural units, branches and representative offices; consulting on improvements to corporate governance and risk management; assisting the external auditor; and verifying compliance with requirements concerning insider information. The Department assesses the efficacy of the internal control system, the system of risk management and the corporate governance system.
The Internal Audit Department carried out 34 inspections of Aeroflot structural units and subsidiaries during 2013 in order to identify risks and assess the efficiency of main activities and business processes. Proposals and recommendations were prepared and delivered to relevant Company departments based on the results of the inspections.
The Revision Commission oversees the business of JSC Aeroflot to obtain reasonable assurance that Company business accords with the interests of Company shareholders and does not conflict with Russian legislation currently in force.
The Revision Commission acts on the basis of the Charter and the Statute on the JSC Aeroflot Revision Commission.
As prescribed by that Statute, the Revision Commission carried out a check of the data contained in the Company’s annual financial statements for 2013 prepared to Russian accounting standards, including the income statement and other documents that are to be presented to the AGM. The Revision Commission carried out a comparative analysis of indicators characterising business efficiency at Aeroflot in
In its report, prepared and approved on the basis of this work, the Revision Commission gave an analysis of Aeroflot’s balance sheet and financial results. The report reflected changes in balance sheet structure, the main factors that led to these changes, and also assessed a number of areas of Company business (goods and services procurement, legal compliance). Based on the results of its inspections the Revision Commission made recommendations aimed at improving the efficiency of Company business by increasing profitability and reducing costs.
The report reaches a positive conclusion. The Revision Commission is of the opinion that Company reporting is on the whole reliable and does not provide material grounds for refusing to confirm the data contained in the balance sheet and income statement JSC Aeroflot as of 31 December 2013. The report also contains recommendations by the Revision Commission in respect of the efficiency of Company business and compliance with applicable law.
The AGM held on 24 June 2013 elected the following individuals as members of the Revision Commission of JSC Aeroflot:
Born in 1956.
Graduated from Voronezh State University. Doctoral Candidate in History. Completed studies at the Institute for Raising Qualifications and for New Qualifications at the Financial Academy under the Government of the Russian Federation, holds certificates in general audit (issued by the Russian Ministry of Finance) and in corporate governance (issued by Schulich School of Business at York University, Toronto, Canada).
From 1996 to 2002: President of the Institute for Privatisation and Management, General Director of the Stock Market and Management Institute.
From 2002 to present: Director of the Russian Institute of Directors
Has served on the Boards of Directors and Board Committees of Sistema Corporation, the Mortgage Credit Agency, Acron, Astrakhanenergo , LUKOIL, Interdepartmental Analytical Centre, Murmansk Fishing Port, Rostopprom, Sibirtelecom, North-West Telecom, Uralsvyazinform, Southern Telecom, etc.
Born in 1984
Graduated from the Moscow Academy of Economics and Law, majoring in finance and credit. Doctoral Candidate in Economics.
Worked as: Chief Specialist of the Pension Fund of the Russian Federation; Chief Section Specialist and Department Consultant of the Social Insurance Fund of the Russian Federation; Chief Consultant and Department Advisor at the Ministry of Economic Development of the Russian Federation.
From 2013 to present: Department Consultant in the Government of the Russian Federation, Deputy Director of Administration at the Ministry of Economic Development of the Russian Federation.
Born in 1950.
Graduated from the All-Union Correspondence Institute of the Food Industry, specialising in industrial planning.
From 1971 to 1976: Chief Accountant of Myachkovsky Aviation Unit.
From 1977 to 2010: Senior Economist, Head of Department, Deputy Head of the Chief Directorate of the Civil Aviation Ministry, Deputy Head of Section of the Department of Air Transport of the Russian Transport Ministry, Head of the Financial and Tax Policy Directorate of the Russian Federal Air Transport Service, Deputy Head of Department of the Russian Transport Ministry, Head of the Finance and Economics Directorate of the Russian Federal Air Transport Agency, Head of the Economics and Development Programme Directorate of the Russian Aeronavigation Agency.
From 2010 to present: Head of the Directorate for Financial Support, Budget Planning and Financial Reporting at Rosaviatsia.
Born in 1961.
Graduated from Moscow State University, majoring in political economy.
Worked as: junior researcher at the Institute of the World Economy and International Relations (IMEMO) of the Russian Academy of Sciences; Head of Section of the Main Directorate of the Bank of Russia (Moscow); Head of Section at Unicombank; Senior Specialist at Rosneft; Senior Economist at Sberbank; Head of Department at the Agency for Restructuring of Credit Organisations; Head of Section at the USSR External Trade Bank (VEB), Head of Department, Deputy Head of Directorate at Vneshtorgbank; Head of Directorate, Department Director at NOMOS-Bank, Head of Directorate at VTB Bank.
From 2012 to present: Advisor to the Deputy Minister of Economic Development of the Russian Federation, Head of the Federal Agency for State Property Management.
Born in 1959.
Graduated from the Nakhimov Higher Naval School, the Faculty of Economics at St. Petersburg State University and the Academy of National Economy under the Government of the Russian Federation.
From 1996 to 2009: Head Section Specialist of the Leningrad Region Finance Committee; Head of the Control Department of the Federal Commission for the Securities Market; Chief Expert of Lidzhist law firm; CEO of Fund Invest management company; Deputy Chief Editor of Rosfincom Information Agency.
From 2009 to present: Deputy Chairman of the Management Board of the National Association of Securities Market Participants (self-regulating, non-profit organisation).
The AGM of 24 June 2013 decided to pay members of the Audit Commission of JSC Aeroflot remuneration in the amount of RUB 1.272 million.
JSC Aeroflot uses the services of external auditors for review of its financial statements. JSC Aeroflot’s external auditors in 2013 were:
- ZAO BDO (audit of statements prepared in accordance with Russian Accounting Standards).
- ZAO PricewaterhouseCoopers (audit of statements prepared in accordance with International Accounting Standards).
Based on results of the 2013 audit the auditors confirmed the accuracy of information presented in the financial statements of JSC Aeroflot.Top