BHEL GE Gas Turbine Service Private Limited
Process : Treasury
Location: Hyderabad
Risk and Control Matrix
Process
# Sub Process Reference Control Category Risk #
reference
TR-P-03 1 Bank account management Key TR-R-01
TR-P-03 2 Bank account management Key TR-R-02
TR-P-02 3 Bank account management Key TR-R-03
TR-P-01 4 Cash account management Key TR-R-04
TR-P-01 5 Cash account management Key TR-R-05
TR-P-03 6 Bank account management Key TR-R-06
TR-P-03 7 Bank account management Key TR-R-07
TR-P-03 8 Bank account management Key TR-R-08
TR-P-03 9 Bank account management Key TR-R-09
TR-P-03 10 Bank account management Key TR-R-10
- 11 Bank account management Key TR-R-11
TR-P-05 12 Bank account management Key TR-R-12
TR-P-04 13 Bank account management Key TR-R-13
TR-P-06 & 07 14 Investments Key TR-R-14
TR-P-06 & 07 15 Investments Key TR-R-15
TR-P-06 & 07 16 Investments Key TR-R-16
TR-P-09 17 Forex Management Key TR-R-17
TR-P-10 18 Forex Management Key TR-R-18
TR-P-08 19 BG/LC Management Key TR-R-19
TR-P-08 20 BG/LC Management Key TR-R-20
21 Financial Accounting Key TR-R-21
Fraud Risk
Risk Control #
Classification
Unauthorised opening/closing of No TR-KC-01
bank accounts
1)Unauthorised changes to list of Yes TR-KC-02
authorised signatories
2)Communication not sent in time
for any changes in authorised
signatory.
Bank receipts not recorded. No TR-KC-03
Bank receipts recorded inaccurately.
Bank receipts recorded are not
approved.
Unauthorized cash payments Yes TR-KC-04
Mis-utilization of cash in hand Yes TR-KC-05
Unauthorized cheques issued Yes TR-KC-06
Unauthorized access to cheque Yes TR-KC-07
books/bank stationery
Unauthorized online fund transfer Yes TR-KC-08
Unauthorized payment requisitions Yes TR-KC-09
Unauthorised changes to payment Yes TR-KC-10
file sent to bank
Unauthorised access to cheque Yes TR-KC-11
printing
Advance payments to vendors are Yes TR-KC-12
made without an approved PO.
Advance payments to vendors not
tracked
Duplicate payments recorded in GL; Yes TR-KC-13
Payments and receipts not correctly
recorded/fictitious expenses
recorded
Unauthorized investments made Yes TR-KC-14
Unauthorised withdrawal of No TR-KC-15
investments.
Interest income is not recorded No TR-KC-16
accurately or completely
Foreign currency transactions not No TR-KC-17
accounted as per the provisions of
applicable accounting standard
Unauthorized forex trade No TR-KC-18
Unauthorised Letter of Credits/Bank No TR-KC-19
Guarantees being operated
Bank guarantees/ Letter of credit's No TR-KC-20
are not accurately tracked
Receipts and payments close to No TR-KC-21
period end are not complete,
accurate and appropriately recorded
Control Objective
To ensure that opening/closing of
bank accounts is authorised
1)To ensure that changes made to list
of authorised signatories are
authorised.
2)To ensure timely communication is
sent to the banks for any changes in
authorised signatory.
To ensure bank receipts are recorded
are accurate and are approved.
To ensure that cash payments made
are authorized.
To ensure that cash in hand is not
mis-utilized.
To ensure that the cheques are signed
by authorised signatories
To ensure that cheques are
safeguarded against unauthorised
issue
To ensure that online fund transfers
are authorised
To ensure that request for payments
made are authorised
To ensure that the changes made to
payment file is authorized.
To ensure that cheque printing access
is authorised
To ensure that advance payments are
made against an approved PO.
To ensure that advance paid to
vendors are tracked
To ensure that all receipts and
payments are correctly recorded
To ensure that there exists an
approved and documented policy for
making investments
To ensure that withdrawals made are
authorised
To ensure that interest on
investments is correctly recorded
To ensure that forex rates considered
for recording in books of accounts are
as per the provisions of applicable
accounting standard.
To ensure that there exists an
approved and documented policy for
entering into forex trade
To ensure that unauthorized LC/BG
are not operated
To ensure that LC/BG are accurately
tracked
To ensure that transactions
pertaining to a particular period are
accounted completetly in such period
Control description
Board of Directors' approval is required to open a new bank account and
close an existing bank account
>> The change in Authorized signatories is approved in Board Meeting.
>>Assistant manager- Finance sends intimation to banks for changes to be
made in the list of authorized signatories & copies of board resolution
ratifying changes.
>>Deputy manager finance passes the receipt entries based on inputs from
commercial team & bank statements which is approved by Sr Manager/DGM
Finance manually.
>> In case of foreign receipts, the bank after receiving receipt, inquires
whether to transfer the amount to EEFC A/C or to current account along
with the invoices relating to which the amount is received. On confirmation
from bank, Deputy Manager Finance passes the receipt entries which is
approved by Sr Manager/DGM Finance manually.
>>All cash payments are made by Cashier on the basis of cash vouchers and
actual bills which are approved by respective department Head/ Managers.
>>on a monthly Basis, AGM HR-Admin reviews the petty cash statement and
will be approved by MD/JMD for HO petty cash, RF in-charge reviews for RF
and Regional Manager for respective regions.
>>On monthly basis,physical cash verification is performed by cashier and
will be approved by AGM HR-Admin for HO petty cash, RF Incharge for RF
and Region Manager for respective region.
>>On a Annual Basis, the physical Verification of cash is done by
Management in presence of the statutory auditors.
>>Cheques are prepared by DM Finance/Finance Executive and authorised
by the signatories as per Board.
>>DGM finance has the custody of cheque books under lock and maintains
manual cheque register.
>>Cheque in hand are verified by DGM-Finance and evidenced through sign-
off on the manual cheque register.
>>Access to make online fund transfers is restricted to authorized personnel
i.e Authorised Signatories as per board resolution only.
>>A payment entry is passed by DM Finance/Finance Executive, which along
with payment file is reviewed by DGM Finance/Sr. Manager Finance and
approved by CFO.
>>DM Finance/Finance executive then uploads the payment file online
which is approved by the Authorised signatories on the portal and it gets
uploaded for disbursement.
Note : Access to make online payment is authorized to (as per board
resolution
1. MD
2. CFO
3. Sr. General Manager (Comm & Marketing)
Individual Limit - Both MD and JMD can authorise payments individually
upto of 25,000
Jointly - No Limit (any two)
For BHEL payments
request is received from commercial team through mail with invoice details
to DM Finance and the same is reviewed by DGM - Finance and approved by
CFO.
For GE payments
payable list is received from respective GE entities by DM Finance and the
same is reviewed by DGM - Finance and approved by CFO.
Other Payments
Payments request are received along with supporting documents and
reviewed by the DGM Finance and approved by CFO.
Note : All the documents once approved by CFO are forwarded to DM
Finance/Finance Executive for payment processing.
Payments posted in D365 cannot be edited. Cheque / online transfer
transaction processing is prepared by Dy. Manager Finance and approved by
CFO manually.
Access to print cheque is restricted to authorized person (Finance
Executive)in Finance team.
>>Advance to vendor is processed only where terms are as mentioned in the
Purchase Order. Advance request is prepared by Deputy Manager OTR
which is reviewed by Sr. GM OTR and approved by MD/JMD
>>Further advance payment to vendors are made by Deputy Manager -
Finance only on the basis of approved PO copy and advance request.
>>On yearly basis,deputy manager tracks and reviews the General ledgers
for advances given.
>>On monthly basis,BRS is prepared by Deputy manager finance which is
reveiwed and approved by DGM finance/Sr Manager Finance.
The Investments (Term deposits) are approved by authorised personnel i.e
Authorised Signatories as per BOD.
The withdrawal instructions of fixed deposit are approved by authorised
personnel i.e Authorised Signatories as per BOD.
>>On a Quarterly basis, accrued interest on fixed deposit calculation
schedules are prepared by Deputy Manager Finance.
>>On Quarterly basis , entry on accrued interest on cash pool is passed by
Deputy Manager Finance and reviewed by DGM-Finance.
>>Foreign transactions are initially recorded at monthly GE operating rate
>>Foreign exchnage rates for payments/receipts are entered by DM finance
and system automatically computes forex gain/loss.
>>Receipt/payment voucher is reviewed & approved by DGM Finance and
CFO both.
Forward contracts are entered by DGM-Finance and approved by authorized
signatories as per BOD.
>>BG/LC are opened on request of commercial team which is approved by
authorised signatories as per BOD.
>>On a quarterly basis, DGM (Finance) obtains outstanding statement of
BG's from banks and reviews the same.
>>If any BG is to be extended/closed, intimates the Commercial Team
periodically about the same to follow up the customers.
On a monthly basis, DGM Finance will circulate a mail to all departments the
cut off date for submission of bills, accordingly all the transactions are
accounted by DM Finance and the same will be approved by DGM
Finance/Sr. Manager Finance
Evidence of Control
Board of Directors' approval is required to open a new bank
account and close an existing bank account
Minutes of Board Meetings held during the year.
Communication to Bank by Assistant Manager-Finance.
>>Deputy manager finance passes the receipt entries based on
inputs from commercial team & bank statements which is
approved by Sr Manager/DGM Finance manually.
>> In case of foreign receipts, the bank after receiving receipt,
inquires whether to transfer the amount to EEFC A/C or to
current account along with the invoices relating to which the
amount is received. On confirmation from bank, Deputy Manager
Finance passes the receipt entries which is approved by Sr
Manager/DGM Finance manually.
Approved cash voucher
Approved monthly cash statement(HO, RF & Regions)
Approved physical cash verification certificate (monthly).
Annual physical cash verification certificate (in presence of
statutory auditor)
>>Cheques are prepared by DM Finance/Finance Executive and
authorised by the signatories as per Board.
>>DGM finance has the custody of cheque books under lock and
maintains manual cheque register.
>>Cheque in hand are verified by DGM-Finance and evidenced
through sign-off on the manual cheque register.
>>Access to make online fund transfers is restricted to
authorized personnel i.e Authorised Signatories as per board
resolution only.
>>A payment entry is passed by DM Finance/Finance Executive,
which along with payment file is reviewed by DGM Finance/Sr.
Manager Finance and approved by CFO.
>>DM Finance/Finance executive then uploads the payment file
online which is approved by the Authorised signatories on the
portal and it gets uploaded for disbursement.
Note : Access to make online payment is authorized to (as per
board resolution
1. MD
2. CFO
3. Sr. General Manager (Comm & Marketing)
Individual Limit - Both MD and JMD can authorise payments
individually upto of 25,000
Jointly - No Limit (any two)
For BHEL payments
request is received from commercial team through mail with
invoice details to DM Finance and the same is reviewed by DGM
- Finance and approved by CFO.
For GE payments
payable list is received from respective GE entities by DM
Finance and the same is reviewed by DGM - Finance and
approved by CFO.
Other Payments
Payments request are received along with supporting documents
and reviewed by the DGM Finance and approved by CFO.
Note : All the documents once approved by CFO are forwarded
to DM Finance/Finance Executive for payment processing.
1. Minutes of Board Meetings held during the year.
2. Communication to Bank by Assistant-Finance regarding list of
authorised signatories for online payments & cheques
3. Approved Payment voucher
4.Approved cheque copies (sample)
System configuration in D365
>>Advance to vendor is processed only where terms are as
mentioned in the Purchase Order. Advance request is prepared
by Deputy Manager OTR which is reviewed by Sr. GM OTR and
approved by MD/JMD
>>Further advance payment to vendors are made by Deputy
Manager - Finance only on the basis of approved PO copy and
advance request.
>>On yearly basis,deputy manager tracks and reviews the
General ledgers for advances given.
>>On monthly basis,BRS is prepared by Deputy manager finance
which is reveiwed and approved by DGM finance/Sr Manager
Finance.
The Investments (Term deposits) are approved by authorised
personnel i.e Authorised Signatories as per BOD.
The withdrawal instructions of fixed deposit are approved by
authorised personnel i.e Authorised Signatories as per BOD.
Approved journal entries for interest receivable
>>Foreign transactions are initially recorded at monthly GE
operating rate
>>Foreign exchnage rates for payments/receipts are entered by
DM finance and system automatically computes forex gain/loss.
>>Receipt/payment voucher is reviewed & approved by DGM
Finance and CFO both.
Forward contracts are entered by DGM-Finance and approved by
authorized signatories as per BOD.
>>BG/LC are opened on request of commercial team which is
approved by authorised signatories as per BOD.
>>On a quarterly basis, DGM (Finance) obtains outstanding
statement of BG's from banks and reviews the same.
>>If any BG is to be extended/closed, intimates the Commercial
Team periodically about the same to follow up the customers.
Cut Off mail for submission of documents by DGM Finance
Modified description Modified description (H2)
Board of Directors' approval is required to open No change
a new bank account and close an existing bank
account
>> The change in Authorized signatories is >> The change in Authorized signatories is
approved in Board Meeting. approved in Board Meeting.
>>DM/AM- Finance sends intimation to banks >>DM/AM- Finance/Management trainee sends
for changes to be made in the list of authorized intimation to banks for changes to be made in
signatories & copies of board resolution ratifying the list of authorized signatories & copies of
changes. board resolution ratifying changes.
>>Deputy manager finance passes the receipt No change
entries based on inputs from commercial team &
bank statements which is approved by Sr
Manager/DGM Finance manually.
>> In case of foreign receipts, the bank after
receiving receipt, inquires whether to transfer
the amount to EEFC A/C or to current account
along with the invoices relating to which the
amount is received. On confirmation from bank,
Deputy Manager Finance passes the receipt
entries which is approved by Sr Manager/DGM
Finance manually.
>>All cash payments are made by Cashier on the To be deleted
basis of cash vouchers and actual bills which are
approved by respective department Head/
Managers.
>>on a monthly Basis, AGM HR-Admin reviews
the petty cash statement and will be approved
by MD/JMD for HO petty cash, RF in-charge
reviews for RF and Regional Manager for
respective regions.
>>On monthly basis,physical cash verification is To be deleted
performed by cashier and will be approved by
AGM HR-Admin for HO petty cash, RF Incharge
for RF and Region Manager for respective region.
>>On a Annual Basis, the physical Verification of
cash is done by Management in presence of the
statutory auditors.
>>Cheques are prepared by DM Finance/Finance No change
Executive and authorised by the signatories as
per Board.
>>DGM finance has the custody of cheque books No change
under lock and maintains manual cheque
register.
>>Cheque in hand are verified by DGM-Finance
and evidenced through sign-off on the manual
cheque register.
>>Access to make online fund transfers is >>Access to make online fund transfers is
restricted to authorized personnel i.e Authorised restricted to authorized personnel i.e Authorised
Signatories as per board resolution only. Signatories as per board resolution only.
>>A payment entry is passed by DM >>A payment entry is passed by DM
Finance/Finance Executive, which along with Finance/Finance Executive, which is reviewed
payment file is reviewed by DGM Finance/Sr. by DGM Finance/Sr. Manager Finance and
Manager Finance and approved by CFO. approved by CFO.
>>DM Finance/Finance executive then uploads >>DM Finance/Finance executive then uploads
the payment file online which is approved by the the payment file online which is approved by the
Authorised signatories on the portal and it gets Authorised signatories on the portal for
uploaded for disbursement. disbursement.
Note : Access to make online payment is Note : Access to make online payment is
authorized to (as per board resolution authorized to (as per board resolution
1. MD 1. MD
2. CFO 2. CFO
3. Sr. General Manager (Comm & Marketing) 3. Sr. General Manager (Services)
Individual Limit - Both MD and JMD can Individual Limit - Both MD and JMD can
authorise payments individually upto of 25,000 authorise payments individually upto of 25,000
Jointly - No Limit (any two) Jointly - No Limit (any two)
For BHEL payments For BHEL payments
request is received from commercial team request is received from commercial team
through mail with invoice details to DM Finance through mail with invoice details to DM Finance
and the same is reviewed by DGM - Finance and and the same is reviewed by DGM - Finance and
approved by CFO. approved by CFO.
For GE payments For GE payments
payable list is received from respective GE payable list is received from respective GE
entities by DM Finance and the same is reviewed entities by DM Finance and the same is initially
by DGM - Finance and approved by CFO. sent to the OTR team for recommendation. On
Other Payments receipt of their inputs, the documentation is
Payments request are received along with prepared by DM finance reviewed by DGM -
supporting documents and reviewed by the DGM Finance and approved by CFO.
Finance and approved by CFO. Other Payments
Note : All the documents once approved by CFO Payments request are received along with
are forwarded to DM Finance/Finance Executive supporting documents and reviewed by the DGM
for payment processing. Finance. payment voucher is approved by
CFO/DGM Finance/SR manager Finance.
Payments posted in D365 cannot be edited. Payments posted in D365 cannot be edited.
Cheque / online transfer transaction processing Cheque / online transfer transaction processing
is prepared by Dy. Manager Finance and is prepared by Dy. Manager Finance/Finance
approved by Authorised signatory as per BR executive/Asst manager finance and approved
manually/online. by Authorised signatory as per BR
manually/online.
In case of payments through cheque, the cheques No change
are prepared manually by Executive Finance
which is signed by authorised person.
>>Advance to vendor is processed only where No change
terms are as mentioned in the Purchase Order.
Advance request is prepared by Deputy Manager
OTR which is reviewed by Sr. GM OTR and
approved by MD/JMD
>>Further advance payment to vendors are
made by Deputy Manager - Finance only on the
basis of approved PO copy and advance request.
>>On yearly basis,deputy manager tracks and
reviews the General ledgers for advances given.
>>On monthly basis,BRS is prepared by Deputy >>On monthly basis,BRS is prepared by Deputy
manager finance which is reveiwed and manager finance which is reveiwed and
approved by DGM finance/Sr Manager Finance. approved by DGM finance/Sr Manager Finance
manually/via mail
The Investments (Term deposits) are approved The Investments (Term deposits & Mutual
by authorised personnel i.e Authorised funds) are approved by authorised personnel i.e
Signatories as per BOD. Authorised Signatories as per BOD.
The withdrawal instructions of fixed deposit are The withdrawal instructions of fixed deposit or
approved by authorised personnel i.e Authorised mutual funds are approved by authorised
Signatories as per BOD. personnel i.e Authorised Signatories as per BOD.
>>On a Quarterly basis, accrued interest on fixed >>On a Quarterly basis, accrued interest on fixed
deposit calculation schedules are prepared by deposit calculation schedules are prepared by
Deputy Manager Finance. Deputy Manager Finance and reviewd by DGM
fin/CFO
>> On timely basis, the return on mutual funds
are prepared by management trainee/asstmgmt
finance and reviewed by DGM finance/CFO via
mail
>>Foreign transactions are initially recorded at No change
monthly GE operating rate
>>Foreign exchnage rates for payments/receipts
are entered by DM finance and system
automatically computes forex gain/loss.
>>Receipt/payment voucher is reviewed &
approved by DGM Finance and CFO both.
Forward contracts are entered by DGM-Finance No change
and approved by authorized signatories as per
BOD.
>>BG/LC are opened on request of commercial No change
team which is approved by authorised
signatories as per BOD.
>>On a quarterly basis, DGM (Finance) obtains No change
outstanding statement of BG's from banks and
reviews the same.
>>If any BG is to be extended/closed, intimates
the Commercial Team periodically about the
same to follow up the customers.
On a monthly basis, DGM Finance will circulate a No change
mail to all departments the cut off date for
submission of bills, accordingly all the
transactions are accounted by
DM/AM/Executive Finance and the same will be
approved by DGM Finance/Sr. Manager Finance
Financial Statement
Assertions
E/O, V/M, C, R/O, P&D
E/O, V/M, C, R/O, P&D
E/O, V/M, C, R/O, P&D
E/O, C
E/O, P&D
Telephone exp bills , other expense paid through E/O, C
cheques
suresh sir will provide E/O, C
Uploaded payment file? Payment advice? E/O, C
In every BOM they will decide and mention in
BOM , who has to approve the cheque & online
fund transfer?
MF placed under money manager plan
Fund transfer- online payment
Review here it means, reviewing the voucher E/O, C
and entry no?
Leave travel assistance exp
EEFC
Loan to employees, salary advance
GE payments (USD)
BHEL Payments
BOE
Dividend
D365 editing E/O, C
E/O, C
entry posted by Finance executive instead of E/O, C
E/O, P/D, R/O
purchase of MF E/O, C, P&D
redemption with supporting E/O, C, P&D
E/O, P&D
E/O, P/D, R/O
E/O, C, P&D
C, M/V, E
C, M/V, E
C, E/O, A
Control Owner Title COSO elements Control Nature Control Frequency
CFO Control Activities Prevent As it occurs
DGM - Finance Control Activities Prevent As it occurs
Manager-Finance Control Activities Detect As it occurs
Admin HOD, RF-in-charge Control Activities Prevent As it occurs
and Regional Managers
Cashier Control Activities Prevent Monthly
Manager - Finance
DGM - Finance Control Activities Prevent As it occurs
DGM - Finance Control Activities Prevent As it occurs
CFO Control Activities Prevent As it occurs
DGM - Finance/ AM Control Activities Prevent As it occurs
(Finance)
DGM - Finance Control Activities Prevent As it occurs
DGM - Finance Control Activities Prevent Continuous
AM / DM Finance Control Activities Prevent Annually
DGM - Finance Control Activities Detect Monthly
CFO Control Activities Prevent As it occurs
CFO Control Activities Prevent As it occurs
DGM - Finance Control Activities Prevent Quarterly
DGM - Finance Control Activities Prevent As it occurs
CFO Control Activities Prevent As it occurs
DGM - Finance/ User Control Activities Prevent As it occurs
DGM - Finance Control Activities Prevent Quarterly
DGM Finance/ Sr. Manager Control Activities Prevent Monthly
Finance
Manual/ IT IT System Transaction Type
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
IT Dependent D365 Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
IT Dependent D365 Routine
Manual NA Routine
Manual NA Routine
Manual NA Routine
Manual NA Non- Routine
