Audit of long-term development programmes
A long-term development programme (LTDP) is an internal programme document essential for monitoring the effectiveness of a financial institution over the medium term (3–5 years) and long term (5+ years). It contains lists of resources and specific measures to achieve the entity's strategic development goals by set deadlines, indicating funding volumes and sources. It also includes performance indicators reflecting current and expected performance results of the organisation, its subsidiaries, affiliates, and branches.
FBK conducts audits and effectiveness assessments of LTDPs to inform the entity's management and/or regulators about its alignment with the stated strategic goals and objectives. The assessment is performed by independent experts, which helps ensure transparency and objectivity of its results.
- Analysis of documentation substantiating the organisation's performance indicators.
- Analysis of key performance indicators (KPIs) reflecting the financial institution's operational, investment, innovation, and dividend policies, management incentive systems, and assessment of their compliance with LTDP-defined targets.
- Preparation of a report containing findings on deviations from the LTDP and recommendations to eliminate them.
- Report containing:
- assessment of the degree of compliance of current KPIs with LTDP targets;
- qualified expert opinions on deviations of actual organisational performance indicators from those planned in the LTDP;
- recommendations for adjusting the LTDP to optimise risks of future deviations, considering industry strategy, organisational development strategy, and business goals and objectives.
- Determination of organisational efficiency and attainment of goals that are qualitatively and (or) quantitatively measurable and significant taking into account medium- and long-term tasks.
- Identification and mitigation of risks, errors in accounting and financial reporting, helping to reduce legal risks and prevent issues with tax authorities and other supervisory bodies.
- Process optimisation and improved financial performance of the financial institution through timely error detection and remediation recommendations.
- Increased trust from potential investors, partners, and clients due to the provision of reliable information.
- Higher credit rating.
- Increased index of customer satisfaction with the financial institution's services.
