A mining company operating in Africa.

BUSINESS REQUIREMENT

The objective was to conduct a comprehensive review and analysis of the Procure to Pay (P2P) process within the organization. This involved identifying potential vulnerabilities to fraud through an effective analysis, internal audit, and evaluation process. Additionally, recommendations for enhancing control design within the SAP framework and suggesting relevant and appropriate automated controls in SAP were sought.

IDENTIFIED PROCESS CHALLENGES

Several challenges related to process gaps and control design were observed within the P2P environment of the organization. These challenges spanned various aspects of the P2P process, including

1. Vendor Empanelment

2. Master Data Maintenance

3. Quote to Award – Sourcing Process

4. Purchase Orders and Contracts

5. Receipt Certifications – Quantity and Quality

6. Supplier Invoicing and Payment Processing

APPROACH AND SOLUTION DESIGN

We adopted a systematic approach to address the identified process challenges. The following deliverables were provided to the stakeholders involved in the respective processes

1. An End-to-End Internal Audit report that outlined the root causes of the identified issues, their impact, possible recommendations for improvement, a High-Level Executive Summary, modifications to Delegation of Authority (DOA), KPI-Linked Reporting dashboards, identification of possible Segregation of Duties (SOD) conflicts, and a Vulnerability Assessment.

BUSINESS BENEFIT AND RESULT

The engagement yielded several significant benefits, including

1. Procurement Value Optimization

2. Enhanced Operational Efficiency

3. Process Excellence

4. Implementation of Process Dashboards featuring essential parameters

5. Development of a detailed Procurement manual, incorporating current and best practices from various industries.