CLOSING MEETING

ENRA SPM SDN. BHD.

Date:
04TH JANUARY 2018

Venue:
ESPM OFFICE & SITE, YANGON

Internal Audit & Compliance

ENRA Group Berhad
OBJECTIVE
• To Determine compliance with company policy and procedure
• To determine the effectiveness of the policy and procedure
• To evaluate the adequacy of internal controls
• To review and appraise the business activities performed the department
• To determine compliance with any applicable state or federal regulations that pertain
to this function under review.
• To search for value-added recommendations and suggestions to improve the efficiency
and contribution of the function under review to the property and Company as a whole

Internal Audit & Compliance

ENRA Group Berhad
SCOPES

• Financial Control and Fixed Asset Management

• Information Technology (IT)
• Risk Management
• Operation and Maintenance
• Follow up on findings and issues raised by Petronas

Internal Audit & Compliance

ENRA Group Berhad
FINDINGS CLASSIFICATION
RATING CATEGORY CRITERIA
A finding of fundamental significance, financial materiality or time sensitive
High to the organisation. It requires the immediate attention of the department
and senior management. There should be a priority action plan for
resolution, usually within 1 months’ time frame from the date of this report.
A finding of moderate significance to the organisation. It requires the near
Medium term attention of the responsible department management. There should be
an agreed upon programme for near term resolution, usually within 3
months’ time frame from the date of this report.
A finding of smaller significance to the organisation. It does not warrant
Low immediate attention. However, there should be an agreed upon programme
for ultimate solution, usually within 6 months’ time frame from the date of
this report.

Internal Audit & Compliance

ENRA Group Berhad
FINDINGS CLASSIFICATION (Cont’d)
The nature of results arising from our review can be categorised as follows:

NATURE DESCRIPTION
Results of review, either individually or in aggregate, indicate weaknesses in
Control (C)
the design or functioning of internal controls.
Areas highlighted represent opportunities for improvement in the
Operational (O) effectiveness or efficiency of the business process or the associated internal
control system.
Findings represent issues associated with regulatory compliances and
Regulatory (R)
adherence to current legislations and regulations.
Results represent issues relating to the administration and documentation
Documentation (D)
requirements of the business process.

Internal Audit & Compliance

ENRA Group Berhad
 OVERVIEW
• ESPMSB has a clear group vision and mission.
• Has an effective organisation structure and dedicated management team
• The Tone at the Top of ESPMSB is sound : The Project Director has an open-door
concept, very control conscious and receptive to feedback and is currently handling the
business development function.
• Project Director is assisted by a team which helps the Project Director to be prudent in
managing the Group’s resources.
• ESPMSB’s business operations and controls are highly centralised with the Limit of
Authority and transactional approval.
Internal Audit & Compliance
ENRA Group Berhad
 OVERVIEW (Cont’d)
• The design of the policies and control procedures is more of preventive in nature rather
than detective.
• Employees understood their control responsibilities and the information had been
provided in the format and timely manner for the management and employees to carry
out their duties effectively.
• There is a monthly Management Finance Review and Management Meeting every
Fortnight. Meeting with the group EXCO as and when, which is a key monitoring
process of all the subsidiaries.

Internal Audit & Compliance

ENRA Group Berhad
FINDINGS SUMMARY

FINDING FINDINGS DESCRIPTION

CATEGORY
HIGH 1 Long Outstanding Debt from Customers
MEDIUM 1 Documented workflow on Crewing Arrangement Process
LOW 1 Implementation on positive and negative control

Internal Audit & Compliance

ENRA Group Berhad
FINDINGS & RECOMMENDATIONS
1 FINANCE AND ACCOUNT MANAGEMENT
COSO Nature Rating
1.1 Long Outstanding Debt from Customers
CA,MT C,O LOW
Description Risk Implication
Receivables as at >120 days Increase possibility of bad debts.
30/11/2018
PT CAKRA MANUNGGAL RM 81,505
SEMESTA

during the course of review, it was observed that the above

receivable has an outstanding balance for more than 120
days.
Our main concerned is to avoid bad debt and improve cash
flows of the Company.

Closely follow up with PT CMS to pay the long outstanding balances first or consider to issue reminder letter
Recommendation
to them.
Internal Audit & Compliance
ENRA Group Berhad
FINDINGS & RECOMMENDATIONS
2 OPERATION
COSO Nature Rating
2.1 Documented workflow on Crewing Arrangement Process
CA,IC C,O,D MODERATE
Description Risk Implication
During the course of review, it was observed that some of the
• Risk not properly being managed
mitigating controls committed in risk register (Appendix G)
• Consequence and the impact of the risk will get more severe
were not currently in practise. The objective of risk
if no controls implemented.
management process is to identify, evaluate and manage the
• Appendix H has been signed off, the Head of the
risk. It is important to implement the controls committed in risk
Organization is responsible to ensure the risk is being
register to ensure the risk identified was properly managed.
managed.
Controls that was noted were very general and not directly
relevant to particular risk identified.

Recommendation ensure controls (Positive and negative) committed in risk register to be in place.
Internal Audit & Compliance
ENRA Group Berhad
FINDINGS & RECOMMENDATIONS
3 RISK MANAGEMENT
COSO Nature Rating
3.1 Implementation on positive and negative control RA,CA,IC,MT C,O HIGH
Description Risk Implication
During the course of review, it was observed that some of the
• Risk not properly being managed
mitigating controls committed in risk register (Appendix G)
• Consequence and the impact of the risk will get more severe
were not currently in practise. The objective of risk
if no controls implemented.
management process is to identify, evaluate and manage the
• Appendix H has been signed off, the Head of the
risk. It is important to implement the controls committed in risk
Organization is responsible to ensure the risk is being
register to ensure the risk identified was properly managed.
managed.
Controls that was noted were very general and not directly
relevant to particular risk identified.

Recommendation ensure controls (Positive and negative) committed in risk register to be in place

Internal Audit & Compliance

ENRA Group Berhad
DELIVERABLES
• Internal Audit Report
• Follow Up Audit Report

Internal Audit & Compliance

ENRA Group Berhad
REFERENCES
• International Standards for the Professional Practice of Internal Auditing (Standards)
• ENRA Internal Audit Manual
• ENRA Group Policies and Procedures
• ISO 9001:2015 standard

Internal Audit & Compliance

ENRA Group Berhad
Thank You

Internal Audit & Compliance

ENRA Group Berhad