The Group KD Group and KD Group dd

The KD Group Annual Report 2009
Internal audit
In 2009, the internal audit department, as an active member of the internal control system, helped the company and the KD
Group achieve established objectives by stimulating a prudent and regulated method of evaluating and improving the
effectiveness of procedures for controlling and managing risks and thus contributed to the generation of added value by
providing independent and impartial findings and serving in an advisory role. In 2009, it also directly verified whether the
internal control system is established, if it functions and whether it is effective in its objective to continue ensuring the legality,
security, effectiveness and efficiency of operations and the protection of assets. Furthermore, the internal audit department
was responsible for improving risk management and the recognition of the internal audit department within the Group by
carrying out individual audits, through its advisory function and by organising training for all Group employees.
Based on the internal audit department's strategy adopted in 2007 and uniform rules on internal audit planning and reporting,
the internal audit department amended and expanded general internal audit rules in 2009 with the aim of achieving
standardised actions, greater efficiency and the success of the internal audit function at the Group level. This led to adoption
of a revised Document on the internal audit function. The revised document was drafted as a result of substantial
amendments to the binding internal audit standards and changes in the management of KD Group d.d. (one-tier system) and
represents the minimum standard applicable to the Group. Furthermore in 2009 we adopted the Policy of cooperation and
development of the internal audit function of the KD Group with a view of utilising synergies, harmonisation, and with an aim
of sharing the knowledge and best practices among internal audit services which are, in terms of their status and
organisation, part of an independent and decentralised system.
At the Group level, internal audit function is uniform to the extent that ensures that internal audit of the KD Group in individual
subsidiary is involved in the selection of internal auditors, in annual preparation of plan of work, and in monitoring the
implementation of recommendations and reporting in a manner that, in accordance with the professional recommendations, it
acts as a coordination unit, and is charged with the development of standard internal audit methodology and general
development of the internal audit function within the Group. The professional qualification of internal audit department
employees is appropriate. Two internal auditors employed at KD Group d. d. are experienced in the areas of external and
internal auditing and hold the relevant titles as bestowed by the Slovenian Institute of Auditors (certified internal auditor and
certified accountant), as well as internationally recognised (CIA) and other titles (state internal auditor and state auditor).
In 2009 we continued to carry out surveys of the audit subjects after completion of the internal audit (i.e. following a
consolidated and final audit report). Based on the survey we drafted a plan of activities aimed at additional increase in the
satisfaction of audit subjects and at raising internal audit's added value.
Human resources and development
At the Group KD Group we are aware that our employees are our important asset and investment for the future. With this in
mind we devoted much effort into development, education and primarily promotion of innovative potential of our employees
in all segments and at all levels of the Group. Therefore, we have specified what human resource management means and
also redefined new roles of HR leaders as the key holders of the HRM function. Moreover, the Management devotes much
attention to monitoring, measuring efficiency and particularly improving and upgrading the manner of work. We should also
highlight the even more important role of internal communication and to this aim the most senior management of the Group
was introduced and maintained dialog with all the employees.
Within the framework of human resource strategy, we designed the concept of centralised HRM. Furthermore we redesigned
and underlined the human resource management vision and mission and established its strategic goals.
Key strategic goals of human resource management of the Group KD Group remain unchanged from one year to the other
as these are of key importance for implementation of our vision. These goals include efficient HR organisation, interaction
and orientation towards common goals, activities that are consistent with values, inter-cultural cooperation and employee
mobility, excellent system of employee remuneration and motivation, as well as recognition in terms of professional
competence and innovation of employees.
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