DRAFT INTERNAL AUDIT REPORT

STRICTLY CONFIDENTIAL

BACKGROUND INFORMATION
Report title Auditors Start of Audit Review of PS04 Fazilpur Station Activities Umair Asghar, Muhammad Yousuf Nasim October 27, 2011

Close out Meeting November 02, 2011 Draft Report December 22, 2011 Final Report Follow-up

No part of this document may be reproduced or transmitted in any form or by any means including photocopying, recording and electronic transmission to a party external to PARCO, without permission in writing from the Managing Director. Internally it may only be copied with discretion and on a "need to know" basis.

TABLE OF CONTENTS
1. 1.1 2. EXECUTIVE SUMMARY Summary of Observations DETAILED OBSERVATIONS, RISKS AND RECOMMENDATIONS

Page No.
3 3 4

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1.

EXECUTIVE SUMMARY

Summary of Observations
1 2 3 4 5 6 7 8 9 In-Effective Control on Imprest Fund. Security Controls are in a Perilous Position. Plant Maintenance Module of SAP should be fully implemented. Maintenance Department should Considerably Improve record keeping and monitoring of material and manpower consumption on equipment. HSE - Smoke Detectors and Multi-Gas-Monitor not present at the station. Inventory Items lying in open area behind NMPT residence have apparently been abandoned by the Warehouse. Scrap Declaration Practice lacks firm controls. Inventory Management needs Substantial Improvement at the Warehouse. Fixed Asset Register does not match with assets present at the station.

Priority
High High High High High High High High High

For ease of reference, the risks have been rated as:

High

These issues involve a substantial and direct exposure to loss of assets, loss of revenue and / or substantially negative impact to operating efficiency and / or effectiveness;

Medium

These issues involve moderate exposure to loss of assets or revenue and / or negative impact on operating efficiency and / or effectiveness; and

Low

These issues do not appear to have a substantially negative impact on operations or the control environment, but have been brought to Management's attention for informational purposes and consideration.

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2. DETAILED OBSERVATIONS, RISKS AND RECOMMENDATIONS 2.1 Finding In-Effective Control on Imprest Fund. Station maintains an Imprest Fund of PKR. 1,200,000 to meet its daily financial requirements. Internal Audit made the following observations on physical cash count at the station as of October 27, 2011. Cash in Hand: Physically counted cash in hand was PKR. 195,205 which matches with SAP balance. Payments and Advances: Total payments as per station record were PKR. 771,601 however SAP balance was PKR. 765,718. Difference of PKR. 5,883 could not be substantiated with approved vouchers. Cash at Bank: Station record shows bank balance of PKR. 383,174 while MCB bank statement shows the balance of PKR. 381,974. Difference of PKR. 1,200 is withholding tax appearing on the bank statement. Monies Recovered from Oil Theft Case: As per station record amount of PKR. 150,000 has been recovered by Station Security from oil culprits, this amount was sitting with Station Accountant since August 07, 2009 in the form of cash, however it was deposited into PARCO bank account Rajanpur dated February 18, 2010. This amount appears to be part of the station Imprest fund.

Cash advances extended to station staff without settling outstanding balances: Cash advances to staff should be settled within 7 days of being extended; however there appears to be no control in place to ensure this rule is being enforced properly. Following is a list of cases where cash advances have been extended to staff without prior settlement of outstanding balances falling outside the 7 days period.
Advances to Staff in PKR Outstandi ng Date PKR Balance 21.07.20 11 35,000 Nil 25.07.20 11 40,000 35,000 11.08.20 11 20,000 12,437 12.08.20 11 9,000 17,840 05.09.20 11 30,000 18,437 09.10.20 11 50,000 14,937 10.10.20 11 3,000 997 Settleme nt (in days) 16 12 9 8 22 16 51
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Name Khan Mohammad Khan Mohammad Khan Mohammad Khan Mohammad Khan Mohammad Khan Mohammad Ghulam Jilani

Suffian Qureshi Syed Azhar Hussain

18.10.20 11 24.10.20 11

50,000 10,000

10,585 13,570

26 2

Observations on implementation of SAP FI Cash Module at the station: SAP enables recording of movement of Imprest cash using Cash Journal of FI module. Internal Audit made the following observations regarding the implementation and usage of SAP by Station Accountant: There appears to be limited training of SAP for Station Accountant to do more than posting a simple transaction entry. E.g. Accountant cannot run Management Information Report in SAP to monitor and control the status of Outstanding Advances extended to staff falling outside the 7 days period. Payments and Advances made through Cash Journal of SAP are also recorded in a manual register. Receipts from CHQ are updated in the Cash Journal however a manual register is also maintained for the same. Expense summary is prepared manually to claim reimbursements from CHQ. Risk / Impact Recommendation In-effective use of company ERP system - SAP. Duplication of Work in absence of full implementation of SAP. Imprest Fund exposed to abuse in absence of proper monitoring and controls on finances at the station. SAP should be fully implemented with training given to Station Accountant. Cash advances to staff should be monitored by Station Accountant using Outstanding Balance Report generated by SAP, advances falling outside the 7 days range should be chased for timely recovery and flagged up to Station InCharge if there is an issue. Monies worth PKR. 150,000 recovered from oil theft case should be deposited with relevant authorities in PARCO. Manual booking keeping should be discontinued by fully implementing SAP.

Priority Management Comments Manager Responsible Implementation Date High

Manager Finance

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2.2 Finding

Security Controls are in a Perilous Position. Internal Audit made observations on Security Practices at the station which are not in compliance with Standard Operating Procedures and Key Point Intelligence Division directives. These are listed below: Non-Compliant Practices:
N o Non-Compliant Practices Noncompliance of SOP/KPID**

Contractual labour hired for less the 3 months time period is not given a Visitor Card to be displayed on the chest, instead a paper slip for SEC-SOP-010 days between 10-20 days is issued with which staff can move in and out of the station premises easily. Main Gate Security Guards do not search staff working on the station for prohibited devices like mobile phones, cameras and firearms assuming that this checking will be conducted on the Plant SEC-SOP-004 Area Gate by Safety Team however it was & SEC-SI-001 observed that this gate remained wide open during daytime working hours without any hindrance and checking of people entering and leaving the Plant Area. Watch Towers are not manned by armed guards at the station at any given time. There is no CCTV camera installed at the station. There is no Automated Barrier Gate at the station. Patrolling does not take place along the boundary wall of the station both from inside and outside. There is no record of a Weapons Register at the station. Arms License is not in the custody of Station Security In-Charge. KPID KPID & SEC-SI001 KPID SEC-SOP-004 SEC-SOP-002 SEC-SOP-002
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It has been observed that certain PARCO and contractual staff do not wear and display their Employee Cards while on duty, including Security Guards. Patrolling of station premises during night is "not" taking place 4 times per night, which is the required frequency.

SEC-SOP-004

SEC-SOP-004

**Key Point Intelligence Division SOP Description Security Measures for Stations & Terminals Security Instructions for Stations & Terminals Weapons Inspection for Station & Terminals Contractor Movement Control for Security for Stations and Terminals Doc No SEC-SOP004 SEC-SI001 SEC-SOP002 SEC-SOP010 Rev No 2 1 1 1 Rev Date 10.03.201 1 01.10.201 0 08.03.201 0 21.09.201 0

Observations: 10 gate passes randomly tested, out of which 1 had entry missing from the InOut Register for material, however record of Gate Pass and Dispatch Advice was found on the main security gate. On night shift duty one security guard goes on patrol while the other stays at the main entrance gate, whereas there should at least be 2 guards present at the main gate at all times. 2 out of 10 Amano Watch Patrolling Devices are dysfunctional on the following locations: Grid Station. WOPP Main Gate. Security Guards do not wear proper uniform, in one case guard on duty was found wearing Shalwar Kameez. 2 Nos Walkie Talkie used for communicating between security guards is not functional; instead communication while on patrol is relied upon personal mobile phones. 1 out of 3 search lights used for patrolling is dysfunctional. Barbed wire on the station boundary wall broken between: South West and South East Watch Tower. North East Watch Tower and Main Gate. Dummy human figures erected on South East and South West watch towers during summer of 2011, however their debris still lying inside the tower with no apparent use at present. Safety and security of station staff at risk. Risk of a Security Breach resulting in damage/loss to PARCO property and operations.
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Risk / Impact

Recommendation

Recommendations are based on observations made to ensure compliance with Security SOPs and Key Point Intelligence Division directives. Contractual labour hired for less than 3 months should be issued a proper Visitor Card for work inside the station premises. Security Guards at the Main Gate should thoroughly search all people coming inside and leaving the station premises for prohibited items. Watch Towers should be manned with armed guards at all times. There should be a CCTV camera installed at Main Gate to monitor the movement of material, vehicles and personnel coming in and leaving station premises. An Automated Barrier Gate to be installed at the Main Gate. Daily patrolling along the boundary wall of station should be enforced, both inside and outside. The following equipment should be fixed on priority basis:
Qt y 2 2 1

Equipment Name Amano Watch Patrolling Devices Walkie Talkies Patrolling Search Lights

A minimum of 4 patrols per night shift should be enforced with at least 2 Security Guards present on the Main Gate at all times. All staff (PARCO and contractual) present at the station premises should display their Employee Cards on chest during duty hours. Weapons Register and Arms License should be maintained at the station. Damaged barbed wires on boundary wall of the station should be repaired. Proper and complete uniforms to be worn by security personals while on duty with Employee Card clearly displayed on the chest. Key Point Intelligence Division Instructions should be fully implemented at the station for compliance with Ministry of Interior requirements.

Priority Management Comments Manager Responsible High

Manager Security

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Implementation Date

2.3 Finding

Plant Maintenance Module of SAP should be fully implemented. As it stands, the Plant Maintenance Process is following, step-wise:
Plant Maintenance Process Notification issued by Planning Engineer at CHQ. Work Order raised by Planning Engineer at CHQ. Planning Engineer from PS01 Korangi emails Work Order list to Maintenance Staff. Work Order List printed by Station Maintenance Staff. Work Permit form is updated manually on paper. Tools, consumable material and spare parts usage is recorded on manually paper. Equipment Maintenance History Card updated manually on paper Work Order completed and closed in SAP Monthly Work Order Completion Summary signed by Station In-charge sent to Manager S&T Maintenance PS1. Metho d SAP SAP Manual Manual Manual Manual Manual SAP Manual Locatio n PS01 PS01 PS01 PS04 PS04 PS04 PS04 PS04 PS04

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Moreover, Internal Audit made the following observations on implementation of SAP: Risk / Impact Recommendation Priority Management Comments Maintenance Staff do not generate or use any reports via SAP. There appears to be a lack of Proper Training and Practice on SAP usage. Inefficient usage of SAP. Not getting Value for Money. Information from SAP cannot be relied upon for Decision Making. Plant Maintenance Module of SAP should be fully implemented. Complete SAP training should be given to the Maintenance Staff with particular focus on how to generate and use Management Information Reports.

Medium

Letter has been sent to Department Heads for arranging Training Sessions at Station for Staff on Optimal Use of SAP, especially report generation.
Plant Maintenance Module of SAP should be fully implemented.

Maintenance Supervisors execute work orders report at stations & terminals. However other reports are executed by Planning Engineer for management review. Maintenance Supervisors have been assigned rights as per their job responsibility and they exercise rights when required. Details of rights are as under Create / Change / Print Notification Create / Change / Close / Print Work Order Execute Work Orders Report & History Create / Change / Print Material Reservation Create / Change / Print Purchase Requisition Material Stock Overview
Complete SAP training should be given to the Maintenance Staff with particular focus on how to generate and use Management Information Reports.

Agreed. IT department should conduct trainings on regular basis for further improvement.
Manager Manager S&T / Manager IT
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Responsible Implementation Date

June 2012

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2.4 Finding

Maintenance Department should Considerably Improve record keeping and monitoring of material and manpower consumption on equipment. Internal Audit made the following observations on Manual Plant Maintenance Practices at the station: Combined Issues of Plant Maintenance: Different formats of Maintenance History Cards are being used E.g. Standard card appears to be (HSEQ-F-45, Rev Date: 01.12.2008) however for following equipment a different format of card is in use: Mainline Pump GM-002 (Mechanical) Station Case Pressure Transmitter (Instrumentation) Wire Position XMTR - Rotary Motion Type (Instrumentation) Smoke Detectors (Instrumentation) In some cases Spare Part Consumption on Maintenance History Card is not been updated properly. E.g. in following cases spare part consumption is not being updated on card: Station Case Pressure Transmitter (Instrumentation) Wire Position XMTR - Rotary Motion Type (Instrumentation) Smoke Detectors (Instrumentation) There appears to be little oversight of Maintenance Supervisor on the rest of Maintenance Teams working and record keeping.

Instrument Maintenance: Entire equipment is replaced with a new one due to unavailability of spares at the warehouse increasing the cost of maintenance. E.g. Internal Audit noted that there is zero consumption of material and spare parts for maintaining equipment. Following are 3 sample: Station Case Pressure Transmitter (Instrumentation) Wire Position XMTR - Rotary Motion Type (Instrumentation) Smoke Detectors (Instrumentation) Subsequently on further probing the Instrument Technician confirmed that the reason for zero consumption of parts and materials is that The whole equipment is replaced instead on equipment breakdown. Inventory items are being shared between Maintenance Departments of PS04 and PS01 effectively by-passing their respective warehouses E.g. Smoke Tester Spray has been consumed for testing Smoke Detectors; however Maintenance
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History Card for this equipment shows NIL consumption. 5 samples of Work Orders randomly tested from September and October 2010 out of which record of 2 work orders was found missing at the station, however these have now been received by Internal Audit via email. 2 samples of Work Orders randomly tested from October 2011, both of which were missing from file, however Work Permits for same were available at the time of checking, Instrument Technician confirmed that these were not printed.

Electrical Maintenance: 5 samples of Work Orders randomly tested from September and October 2011 out of which all 5 have information and signatures of Maintenance Technician Missing. For example: Actual Work Hours have not been updated on the form. Type of Work used is not tick marked on the form. Comments related to the Maintenance Job have not been updated at the bottom of form. Mechanical Maintenance: Mechanical Maintenance does not return partially consumed items issued by Warehouse for example pipes, similarly Warehouse is not bothered either to identify or recover these items from User Department. Maintenance record keeping is not consistent. Risk of high cost of maintenance if Management Information is not readily available for Decision Making via SAP. Important information on the consumption of Material and Man-hours should be uploaded in SAP. Cost of Maintenance should be monitored to assess which factor of the following is pushing it up: Material consumption Man hours consumption Maintenance Tool cost Workmanship cost Materials shared between different stations should be routed through their respective Warehouses. Record keeping needs consistency and completion amongst all four sections of Electrical, Instrument, Mechanical and Power Generation. Maintenance Supervisor should randomly check the record keeping and work
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Risk / Impact

Recommendation

completed by technicians on site for quality assurance. Partially Consumed Material issued from Warehouse should be timely returned by User Department if it is of no further use. Priority Management Comments High

Planned and actual Man-hours are uploaded against each work order. However for materials, separate MRs are generated. Maintenance staff needs training for issuance of material against work order. IT personnel should visit all stations & terminals to provide required training. Material consumption cost and some special tools e.g. cranes etc. will be monitored after issuance of material and hiring of tools against work order. In this regard, training is required. Man-hours and workmanship cost is not possible as the SAP PM module is not integrated with HR module. The material is transferred warehouse to warehouse as a standard practice however in case of emergency when transport is delayed / unavailable, the material is shifted through Courier / goods transport Company. The information should be communicated to Materials dept.for their record updating. All Maintenance staff is maintaining Equipment maintenance record on history cards as well as SAP. Further more they have been advised for consistency in record keeping.

Maintenance Representatives have been advised to update their Records on the current HSEQ Formats, accordingly. Maintenance supervisors are already in practice to check record keeping of technical staff. However, at some stations, maintenance supervisor and performer are same.

The concerned staff at station shall be advised to return the partially consumed items to Warehouse against Zero Value items.

Spare parts of these Instruments are not available. Replacement of the whole equipment is advisable and economical. However, it has been advised to Maint. Representatives to record consumption of spare parts, wherever applicable
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Manager Responsible Implementation Date Manager S&T

SEP,2012

2.5 Finding

HSE - Smoke Detectors and Multi-Gas-Monitor not present at the station. Internal Audit made the following observations related to HSE at the station: Smoke detectors are not installed on the following locations: Station House MPT residence NMPT residence PS-04 Fazilpur Stations Multi-Gas-Monitor is sitting with PS-1 Warehouse (Korangi) on Dispatch Advice (DA) since November 11, 2010 for calibration. No Multi-Gas-Monitor replacement was physically verified by Audit Team at the station. As per Dispatch Advice record, a Multi-Gas-Monitor was loaned from WOTS-3 between 05.10.2011 28.10.2011.

Multi-Gas-Monitor Usage/Purpose: The monitor is used for detection of any gas and fume leakage. Monitor takes a sample of the air and gives reading of the details as below: Plant Area: For detection of permissible fumes levels for Lower Explosive Limit (LEL). Welding Area: For detection of fumes levels of Pipeline, HSD tank cleaning and maintenance. Confined Space: For detection of oxygen level in below ground or excavation to ensure safe working condition of staff. Moreover, Audit Team observed that contractual labour working on Safety Warehouse Building inside Plant Area premises were not wearing the following Personal Protective Equipment: Safety Shoes
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 Protective Gloves Internal Audit noted Instrument Technician wearing Shalwar Kameez inside Maintenance Workshop Area during daytime working hours. There was no safety briefing given to Internal Audit Team at the station during the course of audit, however a safety brochure each was handed over 2 days before departure.

Risk / Impact

Risk of injury to contractual staff for not wearing PPEs. Fumes and gas leakage intensity might not be detected in the absence of the MultiGas-Monitor at the station and may result in loss of life and property.

Recommendation

Smoke detectors should be installed at the Station House, MPT and NMPT residence. HSE standards should be enforced for all contractual staff at all times. Multi-Gas-Monitor sent for calibration to PS01 Korangi should be clawed back on urgent basis.

Priority Management Comments Manager Responsible Implementation Date

High

Manager HSE

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2.6

Inventory Items lying in open area behind NMPT residence have apparently been abandoned by the Warehouse.

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Finding

Internal Audit observed that there are a number of items lying in open area behind NMPT residence. No record was available for these items with the Warehouse. However on Internal Audit request, lists were prepared by respective departments of items in their custody. These include useable, project leftover, and scrap items. Project leftover and Useable items in User Department custody are excluded from Warehouse Inventory; similarly scrap has not been handed over to Warehouse for timely disposal. Following are the list of items lying in open area department wise:
Mechanical Maintenance Quantity Item Description in Feet G.I. Pipe 03" G.I. Pipe 2.5" G.I. Pipe 2" G.I. Pipe 1.5" G.I. Pipe 1.4" G.I. Pipe 1" G.I. Pipe 3/4" G.I. Pipe 1/2" G.I. Pipe 3/4" G.I. Pipe 1/2" G.I. Pipe 04" 84 20 6 140 80 10 150 30 50 20 20

Sr. 1 2 3 4 5 6 7 9 8 10 11

Status Project Leftover

Useable

Scrap

Warehouse Sr . 1 2 3 4 5 6 7 8 Item Description Cable, Power, 4Core, 10MMSQ, 0.6/1KV Cable, 4 Core, 120 mm, 600/1000V Cable, High Voltage, 6.35/11KV XLPE, S/95 Cable, Telephone, 0.6MM, 50 Pairs Coaltar Enamel 105/8, BS4164 Corrosion Inhibitor DCI-6A> (this is issued once and consumed as required) Foam Compound Protein 3% (Local) Foam Compound AFFF CF 3% * 821 Tubes of 50 Kg each ** 190.5 Kg/Drum Quantity 270 Mtr 65 Mtr 115 Mtr 68 Mtr 124.5 MT* 10 Drums** 210 Kg 88.88 Kg Status

Useable

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Risk / Impact

Practice of storing items/inventory for undefined periods by User Department without the knowledge and custodianship of Warehouse is fraught with risks of misappropriation. Items lying under open sky without protection, for example pipes and motor operated valves are at risk of corrosion. Assets/Inventory items lying in open area behind NMPT residence should be returned by User departments to the Warehouse. Warehouse should take ownership and proactively identify items lying about at the station without proper accountability. SOP on Project Left Over items should be implemented. Items lying in open are that are exposed to risk of corrosion should be properly protected.

Recommendation Priority Management Comments High

Lists of equipment lying in open yard have been prepared. Letters has been sent to Manager (Finance) & Manager (Materials) to incorporate the option of Consumption in SAP for partially consumed items. Moreover, all the concerned staff has been advised to return the partially consumed items to Warehouse. Manager (Material) to advise on return of partially consumed items, purchased from local market. Due to non availability of Finance Tags, the PG items have not been handed over to Warehouse. PG Representative has been advised to prepare list of such items so that Finance Tags may be obtained. Henceforth, these items may be handed over to Warehouse CP Representative has been advised to return the issued (Extra / bulk) items to Warehouse and issue these items, as and when required basis. Items (under heading of Administration) have been returned back to Warehouse as E-grade on Dispatch Advice.

Manager Responsible Implementation

Manager S&T

June 2012
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Date 2.7 Finding Scrap Declaration Practice lacks firm controls. Internal Audit made the following observations regarding scrap declaration: There is no SOP at the station to determine on what basis User Department declares an item to be scrap. Warehouse does not take any initiative with the user department to identify items which may be scrap and are of no further use.

Following is the list of items declared scrap by User Department without the knowledge / custody of Warehouse. These items are lying in open area behind NMPT residence.
Administration Sr. 1 2 3 4 5 6 7 9 8 10 Item Description Revolving Chair (Damaged / Broken) Table for Table Tennis (Broken) Carom Boards (Broken) Wooden Racks (Broken) Wooden Table (Broken) Steel Cot (Broken) Dining Chairs (Broken) Easy Chairs (Broken) Exhaust Fan (Corroded) Iron Chair (Broken) Quanti ty 3 1 3 2 1 1 20 12 1 1 Status

Scrap

Sr. 1 2 3

Mechanical Maintenance Quanti ty in Item Description Feet G.I. Pipe 3/4" 50 G.I. Pipe 1/2" 20 G.I. Pipe 04" 20

Status Scrap

Risk / Impact

Scrap is not being identified timely by Warehouse for disposal. Project Leftover and Useable items may be declared scrap by mistake or deliberately in absence of SOP. Scrap Declaration SOP should be implemented at the station. Warehouse to take ownership and pro-actively identify items which are lying about at the station without accountability.

Recommendation

Priority

High
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Internal Audit Department

Management Comments Manager Responsible Implementation Date Manager Materials

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2.8 Finding

Inventory Management needs Substantial Improvement at the Warehouse. Internal Audit made the following observations on Warehouse activities: Audit Team physically verified 24 items (5 high value items) randomly at the Warehouse out of which 1 discrepancy was found in a high value item:
Item Description Circuit Breaker 2-Pole P/N 41420-69-57 SAP 03 Physically Verified 02 Total Value (PKR) 419,094

Material 65-23-09-0071

Warehouse does not monitor inventory re-order levels in SAP to ensure timely availability of spare parts and consumables at the station, in some instances User Department had to directly chase PS1 Warehouse for urgent delivery of items. SAP implementation and usage appears to be non-existent at the Warehouse except for when an entry is made while issuing an item out of stock. Warehouse does not generate and use any reports via SAP to maintain inventory at optimum level. Changes in inventory volumes are recorded manually on paper history card in addition to the entry made on SAP. Inventory items are searched physically by warehouse staff using old codes, although SAP codes are written on the cabinets, but without proper sequencing. There appears to be a lack of Proper Training and Practice on SAP usage. Inventory items are being shared and used directly between User Departments of different stations effectively by-passing their respective Warehouses. There appears to be no monitoring and reporting of carrying costs of inventory and how to manage dead stock lying in the Warehouse. Warehouse at PS04 Fazilpur is being used jointly by PS04 and TS02. On further probing it has been confirmed by Materials Department that TS02 Warehouse is in-active due to a lack of SAP license. Duplication of work. In-efficient use of company ERP system SAP. Increased cost of maintaining inventory in absence of proper reporting and monitoring via SAP. SAP should be fully implemented at the Warehouse.
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Risk / Impact

Recommendation

Internal Audit Department

 Priority Management Comments Manager Responsible Implementation Date High

SAP Training should be given to the Warehouse Staff with particular focus on how to generate and use Management Information Reports. Warehouse should manage inventory re-order level using SAP. SAP should be used to record changes in inventory volumes, while paper history card to be made redundant. New SAP codes should be used for physical searching of inventory in the Warehouse instead of old ones. Warehouse should maintain inventory at optimum level by using SAP. SAP license should be given at TS02 Warehouse.

Manager Materials

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2.9

Fixed Asset Register does not match with assets present at the station.

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Finding

Internal Audit observed a number of discrepancies between Fixed Asset Register (FAR) maintained in SAP and physically verified / available assets at station. Discrepancies noted are listed below asset class wise: Computers FAR record shows 11 computers, whereas 14 computers were found at the station. Following 3 computers were in excess.
Sr .
1 2 3

Asset
102-5131-152 102-5131-074 C-7520-1034711

Asset Description
HP Compaq with Monitor IBM Net vista with Monitor IBM Net vista with Monitor

Location
PL Maintenance Room Control Building HSE Engineer Room

Following 5 computers did not have an asset tag affixed; however asset description did match with FAR record.
Sr .
1 2 3 4 5

Asset
No Tag affixed No Tag affixed No Tag affixed No Tag affixed No Tag affixed

Asset Description
HP Intel, Core 2 Duo, with LCD Monitor HP Intel, Core i3, with LCD Monitor HP Intel, P IV with Monitor IBM PC 300 HP Intel with Monitor

Location
Operation Engineer Room Telecom Room Telecom Room Telecom Room PA to Station In-charge

Printers FAR shows 5 printers whereas 7 printers were found at the station. Following 2 printers were in excess.
Sr .
1 2

Asset
102-5144-065 102-5144-038

Asset Description
HP Laser Jet 1200 Series HP Laser Jet 1000 Series

Location
PL Maintenance Room Warehouse Office

Following 2 printers did not have an asset tag affixed; however asset description did
Internal Audit Department

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Risk / Impact Recommendation Priority Management Comments

Risk of misappropriation of assets. Fixed Assets Register in SAP does not represent the actual statuses of assets present at the station. Station In-charge in co-ordination with Manager Finance should take initiative to verify all assets present at the station so that Fixed Asset Register can be updated. High

Activity has been started for updating the Fixed Asset Register as per physical assets available, jointly by S&T(OPS), Materials& Finance Departments at PS-4. List of air conditioners is being reviewed so that missing tag may be obtained from CHQ via Finance representative. Finance Representative has been advised to arrange missing Finance Tags from CHQ. Letters to concerned department Heads have been sent, accordingly.
Manager Finance / Manager S&T

Manager Responsible Implementation Date

May 2012

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ANNEXURE I
Pipeline Sr . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Item Description ADJUSTABLE (18") ADJUSTABLE (15") NOSE PLEIR MONKEY PLEIR WIRE BRUSH PLEIR PIPE WRENCH BLADE CUTTER HAMMER SCREW DRIVER L KEY BLADE CUTTER STAR SET SCISSOR CYLINDER KEY TEFLON TAPE EMERY PAPER CYLINDER FITTING CYLINDER FITTING DEPOXY OPEN SPANNER RING SPANNER CHIESEL RUBBER PACKING COTTON GLOVES SURF PENCIL CHIESEL IROM BAR (BARI) STRAIGHT DRIVER MONKEY PLEIR Qty 1 1 2 3 1 1 1 1 1 3 2 3 1 1 2 6 2 20 5 10 14 9 1 5 2 1 1 8 1 1 1
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32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

HAMMER HAMMER WOODEN PEG COTTON GLOVES EMERY PAPER FITTING GREASE GUN WIRE BRUSH HAMMER PLASTIC GLOOVES SAFETY GLOOVES SAFETY CLAMPS SAFETY CLAMPS HOSE PIPE HOSE PIPE BRUSH BUCKET WATER COOLER CYLINDER BRUSH

1 3 10 1 2 10 1 3 2 2 2 9 3 1 2 15 3 1 29 78

WOP PIG ITEMS:

Pipeline Sr . 1 2 3 4 5 6 Item Description GUIDE DISCS SEALING DISCS SPACERS BRUSHES BOLTS NUT UNUS ED 41 2 8 70 220 200 USED 12 24 0 30 0 0

KMK BRUSH PIG ITEMS:

Pipeline Sr . 1 2 3 4 5 6 Item Description GUIDE DISCS SEALING DISCS SPACERS BRUSHES BOLTS NUT UNUS ED 20 22 0 6 5 5 USED 10 6 13 7 0 0
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KMK MAGNETIC PIG ITEMS:

Pipeline Sr . 1 2 3 5 6 Item Description GUIDE DISCS SEALING DISCS SPACERS BOLTS NUT UNUS ED 13 14 1 5 5 USED 16 20 13 0 0

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