The Gazprom Neft Board of Directorshas completed its review on the work of its Internal Audit department throughout 2016.
The Internal Audit department has, over the past year, implemented more than 90 initiatives, including an evaluation of the effectiveness of operational and corporate processes across various areas of company’s activity. The Internal Audit department undertook an audit of Gazprom Neft’s procurement processes and investment activities in 2016, including the planning, implementation and monitoring of investment programmes throughout the company’s production divisions, with the results of these audits proving the effectiveness of internal controls over investment activities applied throughout the company, as well as Gazprom Neft’s procurement processes’ compliance with legal requirements.
During the course of audits undertaken last year department specialists also analysed a range of business processes in production activities, as well as the preparation of financial statements, the management of IT processes and projects, and licensing. On the basis of audit findings, and in accordance with the recommendations of the Internal Audit department, the company has developed and implemented initiatives directed at further increasing the efficiency of the internal control system.
The company’s “anti-corruption” hotline also remained in operation throughout 2016.
The Board of Directors was also provided with information on the Gazprom Neft risk management system, together with outcomes of assessments and updates on the key risks facing the company in 2016.
The company is committed to maintaining — and constantly improving — the operation of its integrated risk management system (IRMS), which comprises all methodological procedures, processes and tools directed at improving the effectiveness of management decisions by analysing the risks that accompany these, as well as ensuring the effectiveness of risk management activities in the course of implementing these.
Development of the IRMS within Gazprom Neft is currently focussed on its integration with the company’s planning and project management processes, with the company’s key risks register fully updated in 2016, and a range of initiatives implemented, directed at developing risk assessment and risk management instruments and methodologies.