Risk management, Internal

controls and audit

Status update - November 4, 2019

Risk management program - Summary
Status update as on November 4, 2019 Highlights for the month
To be taken
Prepared care by 1. Developed risk management and governance
Activities To be
Area and pending In progress respective framework defining charters for committees and
planned started
for approval team / event
based
roles and responsibilities for various stake
holders
Ethics and Integrity level of the
2 1 1 - -
organization
2. Prepared revised DOFP
Statutory non-compliances 4 - 1 2 1
Legal exposures 3 - 1 1 1 3. Developed
Fraud response – Proactive and Reactive 5 - - 3 2
a. Enterprise risk management (ERM)
Brand and Reputation 2 - - - 2
framework
ICOFR 5 2 2 1 -
Enterperise risk management 5 3 - 2 - b. Risk register
Cyber risk 2 - - - 2
c. Entity level controls assessment
Total 28 6 5 9 8
questionnaire

Plan for coming month

1. Finalize DOFP, risk management and ethics governance framework

2. Draft SOP for identified areas

3. Finalize risk register, entity level controls and ERM framework

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  Completed
Update on risk management program - Details 

In progress / partially done
Planned

Current Status detail

Area Activity Remarks
Status Prepared Approved Implemented
Institute governance structures  a
Ethics and Integrity level of the Review , update, communication
organization In progress
and training plan for mentioned 
policies
To be taken care by legal and CS
Repository tool NA
team
Legal checklist refresh  In progress

Statutory non-compliances Develop communication and

training plan for spreading 
awareness
Periodic independent audit

process
To be taken care by legal and
Repository tool NA
contracts team
Develop standard operating
Legal exposures  In progress
process and templates
Develop workflow approval

mechanism
Fraud response – Proactive and Risk Survey across the

Reactive organisations

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  Completed
Update on risk management program - Details 

In progress / partially done
Planned

Current Status detail

Area Activity Remarks
Status Prepared Approved Implemented
Mapping of the WB /Concerns
raised by senior management to
NA Event based
be considered for proactive
Fraud response – Proactive and review or investigation
Reactive
Periodic fraud risk assessment 
Creating a data analytics

repository and dash boards
Investigations NA Event based
Institute crisis management To be taken care by HR and
NA
protocols corporate communications team
Brand and Reputation
Structured Public Relations and To be taken care by HR and
NA
Social media manage5ent corporate communications team
Review and update delegation of
 a
financial power matrix
Develop standard operating

ICOFR process and templates In progress
SAP SOD access review

mechanism
Controls library refresh  In progress

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  Completed
Update on risk management program - Details 

In progress / partially done
Planned

Current Status detail

Area Activity Remarks
Status Prepared Approved Implemented
ICOFR Self certification program for IFC
 a
and ELC
Periodic cyber risk assessment NA To be taken care by IT team
Cyber risk
Security strategy measures NA To be taken care by IT team
Institute risk management
 a
structure
Identification and assessment of
 a
the Entity Level Controls (ELC)
Review , update, communication
Enterprise risk management and training plan for risk 
management policy
Create Risk register with periodic
 a
updates
Establish enterprise risk

management program

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Internal audit – Summary – Planned Audits
Status update as on November 4th, 2019 Highlights
Mode Of Review Location Completed In Progress Proposed Report Grand Total
Adjoining data is Apr to Sept’19 summary for the
Raigarh 11 10 1 22 Planned Audit assignments.
Angul 8 5 13
Barbil / Tensa 6 1 4 11 1. In-house
In-House JRL 2 7 1 10
Tamnar 2 2 5 9
1. 43% (31 out of 72) assignments have
Overseas 4 4 been completed.
NCR 2 1 3
2. 48% (35 out of 72) assignments are
In-House Total 31 4 35 2 72
proposed in H2 – 2019-20 and will be
NCR 15 15 completed as per scheduled timelines.
Angul 2 2
Outsourced
Tamnar 1 1 2. Outsourced
Raigarh 1 1
Outsourced Total 19 19 1. 20% (19 out of 91) reviews are
Outsourced and field work shall begin by
Grand Total 31 4 54 2 91
Q3 2019-20

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Internal audit – Summary – Special Request Audits
Status update as on November 4th, 2019 Highlights
Mode Of Review Location Completed Status (In-Progress) Grand Total 1. 87% (27 out of 31) of the Special (Management)
Execution Report Request Audits have been completed and
Raigarh 10 1 11 reports have been released.
Angul 9 1 10
2. Majority of such special requests for audit has
Tamnar 3 3 been received for Raigarh (11) and Angul (10)
In-House
Barbil / Tensa 2 1 3
locations.

NCR 2 2 3. All Special Request Audits are strictly carried

out by In House Internal Audit Teams across
JRL 1 1 2
respective locations.
Total 27 2 2 31

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Internal audit – Pre – Audits – Raigarh and Angul – Q1 2019-20
Pre - Audit Review Summary - April to Jun '19 - Raigarh And Angul Locations Highlights
Transaction Deviation Deviation (%)
Angul:
Period Location Txn. type Count Value (INR Lacs) Count Value (INR Lacs) Count (%) Value (%)
a. By Value, discrepancies
IV 236 11,873 have been identified in 20%
-
of PO cases and 34% of WO
Angul PO 175 151,540 21 30,883 12% 20% generated at Angul Location
b. Cumulatively, deviations in
WO 125 10,335 7 3,498 6% 34%
20% of in 20% of PO or WO
issued have been found and
Angul Total 536 173,748 28 5% 20%
34,381 rectified in Pre-Audit
Q1 Raigarh:
Apr to Jun'19 IV 411 18,532 11 313 3% 2%
a. By value of transaction, 62%
Raigarh PO 238 61,993 55 26,942 23% 43% of WO and 43% of PO
generated has been found to
WO 211 24,689 73 15,214 35% 62% have deviations.
b. Invoice processing errors
Raigarh Total 860 105,214 139 42,469 16% 40%
have been found in 2% of
cases valued at INR 313 lacs
Q1 - Apr to Jun'19 Total 1396 278,962 167 76,851 12% 28%

IV – Invoice Processing PO – Purchase Order WO – Work Order

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Internal audit – Pre – Audits – Raigarh and Angul – Q2 2019-20
Pre - Audit Review Summary - April to Sept'19 - Raigarh And Angul Locations Highlights

Transaction Deviation Deviation (%) Angul:

Period Location Txn. type Count Value (INR Lacs) Count Value (INR Lacs) Count (%) Value (%)
a. Significant reductions in PO
related deviations have been
IV 387 15,108 5 117 1% 1% observed – from 20% in Q1 to
1% in Q2 (by value)
Angul PO 158 89,099 13 1,094 8% 1%
b. WO related discrepancies have
WO 134 10,207 17 1,049 13% 10% dropped to 10% in Q2 from
34% in Q1.
Angul Total 679 114,413 35 2,260 5% 2% c. Invoice Processing errors
Q2 valued at INR 117 lacs have
Jul to Sep'19 been identified and reported
IV 485 18,150 32 2,276 7% 13%
Raigarh:
Raigarh PO 199 46,147 49 14,018 25% 30%
a. Invoice processing errors grew
WO 140 11,537 56 4,474 40% 39% to 13% in Q2 compared to 2%
in Q1
Raigarh Total 824 75,834 137 20,768 17% 27%
b. Reduction in PO and WO
related discrepancies noted at
Q2 - Jul to Sep'19 Total 1503 190,247 172 23,028 11% 12% Raigarh location:
• PO down to 30% in Q1 from
43% in Q1
• WO down to 39% from 69% in
IV – Invoice Processing PO – Purchase Order WO – Work Order Q1

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