Our client is a provider of midstream natural gas and natural gas liquid services. It is one of the largest independent midstream energy companies in the country. The company prefers to focus on its core business and realizes it can be more effective and efficient to get outside expertise to support certain aspects of its business. Horn Solutions is able to help the company by providing internal audit services in the following areas:
Audit planning, execution, reporting, and follow-up on audit findings.
Contract administration reviews and documentation.
Billing reviews and reconciliations.
The company achieved the following benefits and savings by having Horn Solutions provide internal audit services:
Expertise in the audit of commercial transportation procedures and controls. The Horn Solution team provided experience and expertise in the audit of inventory management processes at propane terminals utilizing pipeline, truck, rail and barge transportation.
Recommendations to improve accounting processes and internal controls over facility security, accounting for shipments and deliveries, and inventory adjustment calculations.
Improved processes to prevent and detect fraud related to gas deliveries, physical access to assets, and recording of inventories and other financial transactions.
Confirmation that the contractual terms were being adhered to and the company’s billing system was configured to agree with sales contracts. This work provided assurance to management that billings properly reflected items such as consumer price index escalators and special terms such as minimum throughput and purchase amounts were properly monitored, calculated and invoiced.