1.

Receivable Management (SNGPL, SSGC, PSO, PPL and OGDCL)

Audit checks
1. Effective implementation of credit sales policy
2. Receivables are appropriately classified and accounted for
3. Compare the current year’s account receivable balance with the last year’s account receivable
balances in terms of recovery
4. Assess the impact of receivables management on Profitability
5. Reasonability of the doubtful accounts and its impact on the liquidity of the company
6. Steps taken by the management to avoid the conversion of receivables into bad debts
7. 5 C’s i.e Character, Capacity, Capital, Collateral and Condition were considered before extending
credit facility to customers
8. Scrutinize aging schedule for accounts receivable in terms of recovery (Circular Debts)
9. Corrective action was taken against defaulter(s) on account of non- payment of outstanding dues
10. Due interest was recovered with the amount of late payments
11. Test Check of credit invoices from Accounts receivables report
12. Pursuance of litigation cases and recovery under Land Revenue Act
 2. Discharge of Corporate Social Responsibility (OGDCL, PPL and PSO)

Audit checks
1. Procedure to award donations/ funds
2. Effective implementation of Polices
3. Aspect of non-transparency & discretion in utilization of funds
4. Conflict of interest in grant of CSR funds
5. Ensure proper utilization of fund on education, healthcare, livelihood, infrastructural development
and environmental sustainability
6. Purpose of donation is consistent with the CSR of the organization
7. Competency of the payment authority whether the amount donated was within the prescribed limit
8. Funds are granted to the approved institution(s)
9. Proper record is maintained for the fund as per company policy

10. Procurement (SNGPL, SSGC, OGDCL, PSO, PLL and PPL)

Audit checks

1. Scrutiny of demands raised by the different departments in the light of existing stock
2. Tenders are generated in accordance with the provisions of PPRA rules and purchase procedures
3. Purchases of propriety items
4. Execution of works / service contracts is on competitive rates
5. Compare the content of tender with the estimates
6. Ensure the cost of administrative and technical sanction is recorded in the tender register
7. Bidding applications of potential suppliers are recorded in the tender register
8. Pre-qualification procedure be standardized
9. Compare bidding applications and tender register to ensure the accuracy of particulars (e.g. rates,
quantity etc) quoted by the applicants
10. Check that there are no interpolations and corrections made to the tender. Check that all the changes
should be approved by the competent authority
11. Comparative statement of all the bid applications is prepared in the tender register
12. Basis on which bidding applications were accepted or rejected
13. Check the arithmetic accuracy of the calculations made in the tender and estimates
14. Proper system for requisition for purchases, examination, counting, measuring or weighing of
procured items exist and working properly
15. Investigate whether annual stock taking and Physical Verification is being carried out
16. Investigate whether the material was taken in stock ledger on receipt and if the defective material
was accounted for in the stock books
17. Ensure Procurement and utilization of perishable items within shelf life
18. Check whether Material Inspection Report was received
 11. Inventory management of oil of PSO
Audit checks
1. opening stock and closing balances of each product as per accounting record is tallied with dip
statements and calibration chart of tanks duly verified by the depot record and in case of imported
oil, customs / custodian of bonded area / pipeline.

2. All receipts of all products into the tanks are to be reconciled in the light of invoice raised by the
refineries / supplying company and in case of imported oil, import documents i.e. IGM and into
bond GDs through pipeline. Likewise, all withdrawals / issues to retail outlets of all products from
tanks are to be reconciled in the light of ex-bond GDs and invoices issued to retail outlets /
dealers.

3. All the customs formalities are complied with in case of bonded location for storage.

4. Daily physical stock dips are taken and calculations of stocks are as per the calibration chart of
each tank.

5. The product tanks are calibrated and calibration charts are certified by the Customs department
and custodian of pipeline or bonded area.
6. The receipt losses, storage / handling and transit losses are kept within permissible limits. In case
of abnormal losses beyond the permissible limits, check proceedings for recovery of losses from
the quarters concerned have been started or not. Tankage hiring facility, if applicable, including
the terms of hiring, product losses in transit and settlement etc.
7. The safety norms are complied with as notified by OGRA vide SRO 624(I)/2009 “Technical
Standards for the Petroleum Industry (Depots for the Storage of Petroleum Products)”.
a. All the fire-fighting facilities are available and monthly fire drills are carried out and
adequate quality control tests required as per industry quality control manual are carried
out. Adequate security arrangements are available.

8. All the assets and product stocks are adequately insured.

9. All the statutory licences / approval required for the location are obtained from OGRA and
provisions of Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules,
2016 vide S.R.O. 44(I)/2016, dated 22.1.2016.

10. All the facilities are utilized to the optimum extent and there are no idle assets in Oil Depots /
Terminals.