JSC National Company «KazMunayGas» improved quality of management and financial control of subsidiaries with «1C:Consolidation»
Date of publication: 16.09.2014
«1C-Rating» company contributed to the development and maintenance of “KazMunayGas” JSC NC consolidation system. Implemented information system allowed the company to improve financial control and data monitoring of subsidiary organizations by the improvement of financial reporting level of autofill. To date the number of system users is 200 people.
“KazMunayGas” JSC NC (KMG) - is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. 100% of the KMG shares are beneficially owned by «Samruk-Kazyna» National Welfare Fund JSC. Unified consolidation system operates since 2012, the basis of this system is the unified catalogue of indicators, used for financial reporting transformation.
The basic premises of unified consolidation system implementation:
- The need to improve audit, operativeness, and detail of the subsidiaries data.
- The need in unification of accounting and data transformation techniques.
- Avoiding manual input of financial reporting.
On that score company management decided to implement unified information system on the basis of «1C:Consolidation 8» software product.
- Chart of Accounts and its mapping mechanism developed.2
- 72 reports transformational model developed.
- Automatic system of data transfer between consolidation system and accounting systems of subsidiaries developed.
- Integration with consolidation system ensured.
«1C-Rating» company was involved in purpose of implementation and maintenance of Individual and Consolidated financial reporting system (hereinafter - ICFRS). This company proved to be a reliable partner for the implementation within the holding.
The project management formulated the following main objectives:
- To ensure the system stability and system user friendliness in case of annual gain of up to 10 companies, within the ICFRS.
- To improve financial control and data monitoring of subsidiary organizations by the improvement of financial reporting level of autofill.
- To develop set of regulations.
In order to implement these objectives a 15 people working group was formed. The task of group is daily system maintenance and consulting of more than 200 users, fully satisfying the requirements of the SLA (Service Level of Agreement).
System of «Service Desk» class based on «1C:Enterprise 8» was developed and successfully implemented for registration and analysis of incidents and service requests.
The project team implemented a number of tasks for system development and reporting quality and terms improvement:
- Optimization of mechanism for reporting filling performed (performance gain rose by ~20%).
- Development of tool for reporting quality analysis and autofill level estimation.
- Development of regulations and guides (more than 50 documents).
Automation on the basis of «1C:Consolidation 8» allows the company to receive the subsidiaries financial reporting within the prescribed time limits, in the automatic mode as well as:
- To organize centralized collection and unification of data of subsidiaries in unified system.
- To manage reporting delivery processes and to analyze the quality of the data.
- To greatly shorten the reporting preparation time.
200 work places automated.
Krenkel E.T., managing director of information technology, “KazMunayGas” JSC NC:
«The followings are planned: further improvement of productivity indicators, development of Charts of Account sections functionality and model, automation of data collection, non-automated at present, and improvement of maintenance quality including the ensuring the project by knowledge base, available for all users».
JSC “National Company “KazMunayGas” – is a vertically integrated oil and gas company performing a full production cycle from exploration and production of hydrocarbons, their transportation and refining to provision of customized services.
Today the largest companies of the KazMunayGas group are the following:
- KazMunayGas Exploration and Production JSC (exploration and production of oil and gas)
- KazTransOil JSC (oil transportation)
- KazTransGas JSC (gas transportation and marketing)
- KazMunayTeniz JSC (offshore oil operations)
- KazMunayGas – Refining and Marketing JSC (marketing of oil and oil products in domestic and international markets)
- KMG International N.V. (oil refining, marketing of oil and oil products in Romania and countries of the Black Sea and Mediterranean basins).
Address: 19 Kabanbay-batyr ave, Astana, The Republic of Kazakhstan, 010000
Tel.: + 7 (7172) 97 60 63