Financial audits of joint ventures, Joint venture negotiations, Business governance reviews, Risk management best practices, Financial systems advisory and implementation, Commercial contract terms review, Accounting advice
Finance functional assurance is a core part of any organisation. Most entities have world class internal resources to support these activities. However most of the functional management has multiple projects and in some cases new projects suffer due to resources constraints. We have industry veterans who have sufficient time and expertise to assist you in those busy times, assist you with project completion and allow you to review their work. Here are few areas, especially in energy and mining sector where we could certainly value add to your organisation.
Joint venture negotiations
If your organisation just completed entry into multiple new joint ventures in energy sector and now need to finalise Joint Venture operating agreements, accounting procedures, general and admin costs allocation process, formula for indirect costs allocation. If require a helping hand then let us know. We normally follow AIPN standards and then suggest various options depending whether you are operator, non operator; venture’s size and future expenditure profile, companies involved and their corporate structure, country specific practices, type of licence.
By no means our advice is legal in nature, we provide assistance in understanding financial implication of agreement various elements of joint venture agreement and some case also critically review the mechanism involved to provide you an fairly independent view whether such mechanism would be feasible and will work well in the future.
Financial audits of joint ventures
The only detailed assurance exercise which is allowed to non operator partners in energy, mining and other sectors joint ventures often performed either in a unstructured manner or considered a exercise in compliance losing any value add and insight such a crucial process could provide.
We intend to change this status quo by suggesting a different approach to this essential and important governance process in the joint ventures. Our approach involves early engagement with partners, off site data mining, risk areas agreement before commencement of work, structured field work streams, post field work follow up and helping the client to close out the identified issues in a timely fashion through raising of these issues at operating committees and understanding industry practices in various costs allocation methodologies.
We try to provide the best in the field services with a very attractive commercial proposal, most likely on a fixed fee basis which will only change if close out require multiple years effort.
Business governance reviews/ Business Controls reviews
How often do you review whether the controls adopted at functional or business units level are adequate, operational and effective. If this is not something your organisation performs on a regular basis we could certainly assist. Our current capability is only limited to four core and support areas of business which are Finance, Human Resources, Contracts and Procurement and Overall Governance of a business unit or group function. Our approach is not only transaction or compliance verification, rather we try to assist local and group management to create and maintain an effective and fit for purposes function. We will understand your business, review your governance and policy framework and assess whether policies adopted are in line with overall philosphy of the management. Compliance and monitoring controls exists and culture of the organisation allows a healhty debate on existence or absence of core governance processes.
Financial systems advisory and implementation
When was the last time you had a hollistic look at technology at your disposal and costs being incurred to keep it going. Are you considering a major system upgrade, or would like to move to a fully integrated ERP system. We can certainly help!
Commercial contract terms review
Does your team need a hand with negotiating a commercial contract, a gas sales agreement or long term crude oil. Do you have access to advice on the terms in the market, do you need somone to independently verify whether contractor has been billing you as per detailed terms. We can certainly assist!
We provide solid and dependable accounting advice on complex accounting issues, we can provide you accounting services and at the same time review your accounting policies for any major improvments. In circumstances where accounting treatment is ambigious (quite a few places for energy sector) we will do the reseatch for you and recommend a viable and beneficial alternative.