The Audit Commission is a permanently-functioning internal control mechanism at JSC FPC which implements regular inspections of the financial and economic activities of the Company, its branches, the responsibilities of its bodies of management and the structural subdivisions of management at JSC FPC to ensure conformity between the legislation of the Russian Federation, the JSC FPC Charter and JSC FPC’s internal documentation.
The Audit Commission acts in the interest of the Company’s shareholders and its actions are accountable the JSC FPC General Shareholders Meeting.
The Audit Commission is independent of the responsibilities of the Management of the Company and of the structural subdivisions of the Management of the Company.
In accordance with the JSC FPC Charter, the
In June of 2013, the Annual General Shareholders Meeting of JSC FPC selected the following for service in the Audit Commission:
Since November of 2011, the Company has followed regulations as to the payment of remunerations to the members of the JSC FPC Audit Commission which provide for the payment of remunerations for participation in every inspection (audit) of the financial and economic activities of the company as well as annual remunerations.
For participation in each audit, the member of the Audit Commission shall receive remunerations in an amount equivalent to three times the minimum wage at Joint Stock Company “Russian Railways.”
The decision as to the payment of annual remunerations to members of the Audit Commission is made by the Annual General Shareholders Meeting of JSC FPC according to a recommendation from the JSC FPC Board of Directors. The size of annual remunerations paid to members of the JSC FPC Audit Commission may not exceed an amount equivalent to twenty times the minimum wage at JSC RZD for each inspection made.
By decision of the Annual General Shareholders Meeting, in 2013 the members of the JSC FPC Audit Commission were paid annual remunerations totalling 456,459 roubles.
The Centre for Internal Inspection and Auditing was created for the purpose of improving the efficiency of the system of internal inspection and auditing in the Company, guaranteeing the Company’s bodies of management trustworthy and complete information about the Company’s activities as well as the identification and prevention of abuses of power in the Company. The Centre is functionally subordinate to the General Director of JSC FPC and accountable to the Audit Committee of the JSC FPC Board of Directors.
The tasks of the Centre for Internal Inspection and Auditing include:
For the verification and confirmation of the Company’s annual financial accounts, the General Shareholders Meeting of JSC FPC approves an Auditor on a yearly basis.
In June of 2013, the Annual General Shareholders Meeting approved Ernst and Young LLC as the Auditor Company to carry out the audit of JSC FPC’s financial accounts according to Russian accounting standards and IFRS in 2013.