Message-ID: <15310095.1075840076121.JavaMail.evans@thyme> Date: Sun, 12 Nov 2000 23:44:00 -0800 (PST) From: kevin.hannon@enron.com To: richard.causey@enron.com Subject: India Internal Controls Assessment & Review and Cash Controls Standards Cc: ken.rice@enron.com, jeff.skilling@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: ken.rice@enron.com, jeff.skilling@enron.com X-From: Kevin Hannon X-To: Richard Causey X-cc: Ken Rice, Jeff Skilling X-bcc: X-Folder: \Jeffrey_Skilling_Dec2000\Notes Folders\All documents X-Origin: SKILLING-J X-FileName: jskillin.nsf Rick, This is disturbing. I can not understand how an HR employee for an Enron business unit can deny access to what appears to be an Enron auditor on the grounds that the records being sought are confidential. As you know Sanjay reports to both Ken and myself in support of EBS Asia activities as well as I believe McDonald for Global Assets. Given this split accountability, and the fact that I do not know which business unit these records apply to, you as a representative of Corp should probably require that Enron be given access to these records as part of your audit responsibilities. If you think it appropriate for me to make the request I will be happy to do so. Kevin ----- Forwarded by Kevin Hannon/Enron Communications on 11/13/00 07:35 AM ----- Juan Camarillo@ENRON 11/13/00 01:38 AM To: Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ken Rice/Enron Communications@Enron Communications, Kevin Hannon/Enron Communications@Enron Communications cc: John Berggren/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Milind Laad/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carol Howes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandip Malik/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: India Internal Controls Assessment & Review and Cash Controls Standards India Management, We are in the process of conducting a follow-up of the Internal Controls Review that was conducted last year at EIPL. We are also conducting a compliance review of the Cash Controls Standards that were recently issued by Enron Assurance Services. On November 3rd, we informed Milind Laad, EIPL Controller, and Carol Howes, Sr. Dir. Fin. & Acctg., that we would be conducting a visit to EIPL to perform the follow-up Internal Controls Review and a Cash Controls Standards audit. An Internal Controls Review entails reviewing not only financial areas but other departments such as legal, IT, operations, etc. We started our testing late last week and were informed that supporting documentation for certain accounting transactions reside in HR. We then scheduled a meeting with the head of HR, Sandip Malik, to request supporting documentation for the transactions and other information that is more relevant to HR as part of our Controls Review. Mr. Malik denied access to the records on the basis that they are confidential. Apparently, not even the Controller has access to some of the supporting documentation. Mr. Malik stated that we needed to give him a request list, so he could clear it with Sanjay Bhatnagar. We informed him that we could not give him a list but needed general access because we did not want to go back and forth with lists given my limited time here in India and logistical difficulties in communicating with Mr. Bhatnager. Mr. Bhatnager apparently was on vacation and now is travelling to Houston. Given the time difference, I am requesting that Mr. Bhatnagar or one of the upper management executives responsible for India send a communication to Mr. Malik and instruct him to give me access to the Enron Records. I apologize for the inconvenience, but I had not previously experienced the situation where I was not given initial access to the records. I am also interested in obtaining access to the payroll records for Arthur Andersen so they can test the project allocations developed by HR. Thank you, Juan Camarillo Manager Enron Assurance Services