No matter how, Financial Reports are intended to show and prove shareholders, government, and other stakeholders for the performance of the company where their efforts and money are invested, either private, non-profit sectors and or public company; small or large companies are legally bound and bearing responsibility to produce a “true-good governance” of its financial reports which is mandatory required to be audited of the trueness-compliance of all related laws, government decrees, company’s policies, and procedures in carrying out its business operations or activities in due diligent and good faith for domestic and foreign companies. All managerial levels and operational staff should understand and obey how the operational activities or business operations are running and reporting its financial reports. This combined or integral part of responsibility directs and emphasizes that each financial transaction has been processed, fulfilling, and satisfying the requirements of government, stakeholders, and creditors.

Top level of management is legally accountable for the company’s operations internally and externally, it does not mean that medium and lower levels management and staff relief out of responsibility of how each activity is transposed and recorded into its financial statements at the time of the services rendered and goods received. The transactions must be integrated “bottom up hierarchically” within the company’s organization. Internal control must be done by each employee related to his/her jobs. The good-governance-successfulness will be achieved through the participating efforts of the whole staff, management of the company, and other supports of services contractors and or suppliers.

Specifically those who are working in the area of the “Upstream of oil and gas Exploration and Production” industry, must have the basic knowledge for financial and Accounting starting from the recognizing documents such as daily time sheet, service order/service ticket, material requisition, and project completion reports, which are then translated into money terms and transactions. All these documents represent what, how, and when services are rendered or goods received by company are processed and to be submitted to the company for payment processes.

Objectives

The Non-accountant educational-background employees will be provided a fundamental financial and accounting knowledge and skills in the area of financial transactions, financial reports, and how the transactions are verified and justified in accordance with company policy and procedures, contract services agreements, and purchase orders, and the related laws and government’s regulations in order to produce the true financial and accounting reports:

• What is the financial and accounting and why it is absolutely needed by the company
• Accounting principles and basic understanding accounting equation
• Flow of transaction recording from the beginning up to issuance of Balance Sheet and Income Statement
• Who are the users of financial reports-management, employees, stakeholders, and government.
• Financial reports will represent company’s picture and skeleton of company business transactions are recorded and administered.
• Internal and External Auditors will examine and test the operational activities, compliance of related policy, laws and procedures, and financial transactions to prove a reasonable assurance in justifying that an unqualified audit opinion as final facts of the audit reports.

Benefits of Attending

Providing financial and accounting knowledge for non-accountant employees in the practices will simultaneously develop their professionalism in handling their functional operations in area of financial matters. Producing key operational performance activity reports due for operation, financial, and legal and laws implementations, which is generally possess the knowledge of financial and Accounting in the Production Sharing Contract (PSC).

Who Should Attend?

Supervisory, Superintendent, Manager operation, Procurement Supervisor, Human Resources, Community Development and Environmental, Logistics Supervisor, Maintenance Supervisor, and other typical business entities, and other staff who directly deal with supports and administrative in a company.

Course Content

Day one:

INTRODUCTION OF FINANCIAL MANAGEMENT AND ACCOUNTING SYSTEMS

• What is the Financial Management
• What is Financial Management Objectives
• Management Reports
• Financial Reports
• Users of Financial Reports
• Cost Classification
• Cash Flows
• Cash Basis and Accrual Basis
• Performance Measurement such as KPI indicators

INDONESIAN PSC ACCOUNTING: 

• Operating Costs
• Non-Capital Costs
• Capital Costs using AFE forms:

1. Drilling Expenditures: Exploration, Development, and Workover
2. Production Facilities Construction
3. Supports Facilities Construction

Day two:

INDONESIAN PSC ACCOUNTING (continued)

• Depreciation/Depletion/Amortization
• Overhead Allocation
• Interest Recovery
• Gas Costs
• Inventory Accounting

• Insurance Claims
• Abandonment and Site Restoration
• Cost Recovery/Over or under lifting
• Cash Settlement

Day three:

BPMIGAS WORK PROGRAM AND BUDGET

• General Procedures and Manual
• Capital Expenditures
• Production Expense
• Administrative Expense
• Financial Status Report

BPMIGAS AUTHORIZATION FOR EXPENDITURES

• General Procedures and Manual
• AFE Schedules
• Closed out report
• Project evaluation/economic evaluation
• Closing Summary 

Course Leader

Jamaluddin Siregar, BBA, Sth, Dipl Int’l Management, MBA