DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

AUDIT
INDEPENDENT AUDITOR
At the meeting held on December 8, 2010, the Shareholders Assembly appointed the auditing firm Deloitte d.o.o.
Zagreb as the auditor of HEP d.d., related companies and consolidated financial statements for HEP Group for the
year ended December 31, 2010.
INTERNAL AUDIT AND RISK MANAGEMENT
Internal Audit and Risk Management Department is responsible for the corporate function of internal audit and risk
management. The Department is a part of the internal supervision of HEP d.d. and HEP Group, which consists of an
internal control system, internal controls, controlling, treasury and other forms of internal supervision (inspection,
management accounting, IT, etc.)
The management is responsible for overseeing the business operations and for the establishment and functioning
of internal control systems, and the internal audit is responsible for verifying how they function. During 2010,
HEP d.d. Management Board adopted decisions and guidelines for the establishment of internal control systems in
HEP Group.
In 2010, the Department carried out internal audits in line with the internal audit program and submitted
reports thereon. The purpose and the objective of internal audits and reports is to provide the management with
a reasonable guarantee of security, efficiency and effectiveness of the business system and processes, reliability
and accuracy of information, compliance of business operations with laws, regulations and HEP internal rules, plans,
programs and business policy.
Reports on the internal audits carried out were submitted to HEP d.d. Management Board and management,
giving an objective assessment of the state of affairs and business processes, internal control systems, HEP’s compliance
with laws and internal rules and regulations, meeting of objectives and tasks of the business policy, etc. The
reports give a separate assessment of the adequacy, efficiency and effectiveness of the internal control system and
of risk management.
Based on these audits, it was assessed that the internal control system in HEP Group was reliable and that
the main business risks had been identified and well managed. The Department submitted semi-annual and annual
reports on its work to HEP d.d. Management Board.
CERTIFICATES
Valid certificates for environmental management standard HRN EN ISO 14001:2004 within HEP Group are owned
by:
- in HEP Proizvodnja d.o.o. – TE-TO Zagreb (BVQI), EL-TO Zagreb (DNV), KTE Jertovec (DNV), hydro production areas
North and West with all hydro power plants included (SGS);
- in HEP ODS d.o.o. – Elektra Zagreb (BVQI)
- in HEP OPS d.o.o. – Transmission Area Zagreb (BVQI)
Valid certificates for quality management standard HRN EN ISO 9001:2008 are owned by TE-TO Zagreb (BVQI), EL-
TO Zagreb, (DNV), CCGT Jertovec (DNV), Sisak TPP and hydro production areas North (SGS) and West (DNV) with all
hydro power plants included.
All hydro power plants in HEP Group have valid certificates of electricity production from renewable sources
(TÜV).
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HEP ANNUAL REPORT 2010 CHAPTER 2 - CORPORATE GOVERNANCE