Ref: IA/MAA/ZH/

Date: 15 April 2015

Note to the Managing Director

CONCEPTUAL APPROVAL FOPR ESTABLISHMENT OF

ENGINEERING / TECHNICAL AUDIT SECTION
IN INETRNAL AUDIT DEPARTMENT

PREAMBLE

Engineering/Technical Audits are performed by Auditor, Engineer or Subject Matter

Expert (SME) to evaluate compliance and identify areas of improvement in a process,
system or proposal in accordance with SSGC IA charter. The results (for compliance
monitored and areas of improvement identified) are communicated to top
management/relevant departments for implementation to add value to the organization.
Technical audit focuses on engineering/technical aspects core business operations of
Gas Transmission, Gas Distribution and Gas Measurement alongwith Engineering
Procurement function and other Engineering Departments.

UFG losses

The core-functions of SSGC are focused on

SCOPE

Engineering/Technical Audit function carries out independent appraisal of core

business functions of Gas Transmission, Gas Distribution, Gas Measurement,
Engineering Procurement function and other Engineering/Technical Departments of
SSGC to examine and evaluate their activities.
The independent appraisal comprises assurance and consulting activities designed to
add value to SSGC operations through risk assessment, governance and improvement of
internal controls.

The assurance activities include: assessment of compliance of systems and processes to

the applicable ASME, AGA, NACE and other codes/standards alongwith OGRA
technical standards, SOP reviews, design reviews, cost/benefit and engineering
economic analysis.

The consulting activities include development of solutions, sighting technical references

to applicable codes/standards and performing engineering design calculations related to
SSGC engineering/technical operational processes and systems.

Note
Engineering/Technical Audit section is only responsible for providing guidance to
technical departments, the responsibility for implementation of
recommendations/proposed solutions rests with the respective departments.
Engineering/Technical Audit section does not carry out the following compliance
Monitoring activities of IT department.
Procuring process, procedures, compliance of PPRA rules

OBJECTIVES

To ensure that Gas Transmission, Gas Distribution, Gas Measurement, Meter

Manufacturing Plant and other operations of technical departments are being
performed as per requirements of applicable codes and standards.
To ensure that risks in areas of operations are identified and the measures for risk
minimization/mitigation are defined.
To ensure that a sound framework of control is in place to sufficiently mitigate the
potential risks.
To ensure that definition of requirements for engineering procurement are in
conformance with applicable codes/standards and are compatible with existing
systems/equipment.
 The fitness-for-purpose of procured systems and equipment for engineering
departments is carried out prior to initiation.
To ensure that the following process controls are implemented in
Engineering/Technical departments:

Setting performance standards

Measurement of actual performance
Comparing actual performance with standards
Analysis for deviations/variation
Taking corrective measures where needed

To ensure that the following control measures are implemented at activity/task

levels in Engineering/Technical functions:

Definition of responsibility and authority

Segregation of duties/ HR placements
Authorizations of works and other transactions
Supervision or monitoring of operations
Physical safeguards for protection of company assets
Top-level reviews
To develop in-house capability in SSGC to conduct energy audits of industrial and
bulk consumers for identification for areas of improvement in energy efficiency and
compliance to ISO 50001 standard.
To develop a comprehensive gas pipeline risk management model/system as per
industry best-practices and implement the same in coordination with technical
departments

STRATEGY FOR IMPLEMENTATION

PROPOSED PLAN

RESOURCES REQUIRED
Kindly accord the conceptual approval