ANNUAL REPORT - The Petroleum Institute

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The Petroleum Institute | Annual Report - Academic Year 2011 - 2012 We promote personal development to ensure a high level of competence, expertise, and satisfaction. Teamwork: We greatly value our staff’s efforts and contribution in achieving our mission. We support and encourage teamwork and team building activities. Integrity: We provide services in an ethical, transparent, courteous and caring manner. We respect everyone and we welcome the free exchange of ideas. Stewardship: We practice sound financial management and are devoted to ensuring an efficient use of PI resources to ensure its financial long-term sustainability. Communication: We communicate externally with ADNOC shareholders and internally with all users in order to meet their expectations. We are dedicated to the effective use of various means of communication. II. Finance Department Highlights, Roles and Functions New Staff Mr. Sultan Al Shamsi joined the PI Finance Department in 1st April, 2012 as Financial Accountant. He has over 10 years’ experience in various business fields. Before joining the PI, he worked for 5 years in the communications industry, 3 years in the finance industry and another 3 years in media. He achieved his bachelor degree in Abu Dhabi University. Sections There are three sections in the PI Finance Department - Management Accounts - Financial Accounts - Financial System & Reporting Analysis The Role of the Management Accountant Assistance in Planning The management accountant assists planning by providing information. This information can be about pricing, capital expenditure projects, product costs or competition. In the short-term planning process of budgeting (less than one year), the management accountant provides information on past costs which can be used as a guide. The management accountant also manages the budgeting process itself. Assistance in Controlling The management accountant supplies performance reports which compare actual performance with planned performance and which therefore highlight those activities which are not conforming to plan. Assistance in Organizing By ensuring that the accounting system is tailored to the organizational structure, the management accountant reinforces the objectives of the organizational framework. Assistance in Motivating Budgets prepared by the management accountant serve to motivate managers and subordinates to achieve the PI’s objectives. Formalized targets are more likely to motivate than vague comments. 124
A year of transformation, growth and success Performance reports produced by the management accountant for the control process also motivate managers by communicating performance information in relation to the targets which have been set. Assistance in Decision Making The management accountant is a vital component in the PI’s decision making process. He or she collects and analyses data, and presents information to managers to help in decision making. The Role of the Financial Accountant Assistance in Payroll The responsibility of the Financial Accountant (for salaries, wages and other approved personal and ad-hoc payments) is to ensure that all staff appointed by the PI receive the appropriate payment, as laid down in their contract of employment and that in making such payments the PI complies with relevant statutory legislation. Assistance in Payable Payments: For effective assistance in processing payments, all invoices should be addressed to the PI with a valid finance account code which must be specified on all payment requests and stamped, authorized and sent to the financial accountant. Assistance in Account Codes For effective assistance in account codes, the codes and other relevant documentation should be in a format prescribed by the Finance Manager. All financial activities recorded using the financial system must be related to an activity code. The Finance Department is responsible for setting out the procedures for creating such codes. Assistance in Internal and External Audits The Internal Audit works closely with the Finance Manager, functionally reporting to the PI Governing Board, and administratively reporting to the PI President until the finalization of the Internal Audit Service and until the establishment of an Internal Audit Charter, an Internal Audit Manual and the development of a risk-based Internal Audit Plan within the PI are functional. The activities of the Internal Audit include: • establishment of an internal audit function • risk assessment and risk based internal audit Plan • internal audit execution reporting and follow-up; to execute internal audits based on the risk based internal audit plan The external auditor (KPMG) is a completely independent body that monitors the effectiveness of the PI’s internal controls, and has authority to access the PI’s financial system to report on its financial statements and to carry out such examinations of the statements and underlying records and control systems as necessary. III. New Changes and Accomplishments • Internal Auditor: - KPMG provides an audit to help the Petroleum Institute negotiate risks and perform in dynamic and challenging environments. • Budget: the budget period has been changed from academic year to financial year, i.e. from January to December. • The Finance Department holds meetings with The Petroleum Institute 125
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ANNUAL REPORT - The Petroleum Institute

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