Tokyogasgroup csr report

Mutual Collaboration among the Audit & Supervisory Board Audit, Internal Audit, and Independent Auditors' Audit

In order to enhance the effectiveness of three-way auditing (Audit & Supervisory Board Audit, Internal Audit, and Independent Auditors’ Audit) as well as to improve the quality of audits as a whole, Tokyo Gas strives to strengthen the mutual collaboration between each audit in areas such as the reporting of audit plans and results as well as exchanges of opinions and witnessing of audits, as shown in the diagram below.

Three-way Auditing

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Audit & Supervisory Board

The Audit & Supervisory Board consists of five members, including three outside auditors, and the Audit & Supervisory Board Office was established to provide support independent from business execution with five dedicated staff members (as of March 31, 2018). In line with the Corporate Auditor’s Audit Standards, the members attend the Board of Directors, the Corporate Executive Meeting, and other important meetings. They also state their opinions relating to legality and other perspectives as necessary, conduct research into the state of operations at the head office, major business offices, subsidiaries, and hold discussions with the Representative Director to exchange opinions on a regular or ad-hoc basis. The Audit & Supervisory Board members cooperate closely with the Internal Audit Department and independent auditors and strictly audit the execution of duties by the directors to enhance and strengthen high-quality corporate governance systems.

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Internal Audit Department

Our company has established the Internal Audit Department as an internal audit body (with 35 assigned staff members as of April 1, 2018, including those in charge of operations in response to the Internal Control Reporting System) with a structure that can effectively implement specialized audits from the perspectives of accounting, operations, compliance, information systems, and risk management, among others.

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Procedures and Status of Internal Audits

Internal audits are made of Tokyo Gas and its subsidiaries, which are completed over a three- to six-year cycle based on the annual audit resolved by the Board of Directors. The results of these audits are reported not only to the president, Corporate Executive Meeting, Board of Directors, and Audit & Supervisory Board but also to the managers of all audited offices. Offices are required to submit their responses to recommendations arising from these audits, and progress on implementing these responses is followed up and reported to the Corporate Executive Meeting the following year. In fiscal 2017, five divisions of Tokyo Gas and four subsidiaries were audited, four divisions and six subsidiaries were given follow-up audits, and issue-specific audits were conducted on the state of internal control at overseas subsidiaries.
In principle, the appropriateness of our internal audit procedures is assessed by external experts once every five years.
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Collaboration on Audits within the Group

In the Tokyo Gas Group, Audit & Supervisory Board, Audit & Supervisory Board of subsidiaries, and the Internal Audit Department periodically exchange opinions. We have established a system that ensures efficient and effective audit activities across the Group through close ongoing coordination and liaison meetings. In fiscal 2017, we held four liaison meetings.

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.