ANNUAL REPORT - The Petroleum Institute

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
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