annual report - Tenaga Nasional Berhad

Control StructuresOrganisation Structureby the Group are:The Board has established controlstructures and is committed to evaluate,enhance and maintain them to ensureeffective strategic and operationalcontrol over the Group’s businessoperations. The following key internalcontrol structures are in place to assistthe Board to maintain a proper controlenvironment:Board and Management CommitteesIn its efforts to promote corporateg o v e r n a n c e , t r a n s p a r e n c y a n daccountability, the Board has set upBoard and Management Committeesto assist them to accomplish the vision,mission, strategies and objectives setfor the Group. The Committees overseethe areas assigned to them under theirTerms of Reference. The Committeesplay an important role to direct,monitor and ensure that the plans andoperations are in accordance with theGroup’s approved long term and shortterm business plans, and the policies ofthe Group. The Committees are:Board Committees• Audit Committee• Tender Committee• Disciplinary Committee• Nomination & RemunerationCommittee• Finance & Investment CommitteeManagement Committees• Group Executive CouncilCommittee• Group Executive ManagementCommittee• Energy Supply Committee• Tender Committees• Group Risk ManagementCommittee• Fuel Procurement ExecutiveCommitteeThe Board has implemented adivisional structure for the Group. Clearlines of authority, responsibility andaccountability have been establishedto enable the Group’s vision, mission,strategies and operational objectivesto be achieved. The divisional structureenhances the ability of each division tofocus on their assigned core or supportfunctions within the Group.The Board also reviews and refines theeffectiveness of the Group’s organisationand control structures to enhance theGroup’s ability to achieve their strategicand operational objectives and managechallenges in its operating environment.During the year, three new Divisionswere formed, being the CorporateAffairs, Planning and Group ProcurementDivisions. The regulatory relations, legal,corporate communications and companysecretarial functions were consolidatedinto the Corporate Affairs Division. Theplanning function for power systems,energy procurement and strategies weregrouped in the Planning Division. Theprocurement function was upgradedfrom a department to a division tooversee the strategic procurementmatters of the Group. The formationof the Divisions was to strengthen thefunctions as well as enhance strategicand operational performance.Management Information SystemsThe Board recognises the importanceof leveraging on information andcommunication technology to assistin providing effective and efficientbusiness operations, timely and accuratecommunication with stakeholders, andenhancing the Group’s performance inthe long term. The major systems used• Enterprise Resource ManagementSystem (ERMS)• e-Customer Information & BillingSystem (e-CIBS)• Enterprise Human ResourceManagement System (EHRMS)• Supervisory Control and DataAcquisition System (SCADA)• Remote Metering System (RMR)• Electronic Banking Facilities• Tenaga Risk Information System(TRIS)• Electronic Document ManagementSystem (EDMS)• Distribution Network InformationManagement (DNIM)Group Policies & ProceduresThe Board has approved policies andprocedures to govern the financial andoperational functions, and ethics of theGroup. The objectives of the policies andprocedures are to ensure that ethics, andinternal control principles and mechanismsare embedded in operations. This enablesthe Group to respond quickly to evolvingrisks and immediately report on anysignificant control failure. The policiesand procedures are also reviewed on aregular basis to ensure its relevance andeffectiveness. Amongst others, the policiesand procedures implemented are:• Internal Control Guidelines• Group Financial Policies & Procedures• Treasury Policy• Safety & Health Policy• Environmental Policy• Investment Policy• Procurement Policy & Procedures• Anti Fraud Policy• Disciplinary Policy & Procedures• Information & CommunicationPolicy & Codes of Practice• Enterprise Wide Risk ManagementPolicy & Guidelines• Limits of Authority• Code of Ethics• Procurement Code of Conduct• Whistle Blowing Procedures[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]143