"Low Degree of Compliance" In the Control of Mining Company
<p style="text-align:justify">These are Mineral Watersheds of Dionisio, in Catamarca. SIGEN states that of the 39 projects that the internal audit unit had planned for 2007, it only made eight and did not report why it deviated from its own plan of action. Thus, there was insufficient data to express an opinion on the internal control of the firm.</p>
The company Yacimientos Mineros Aguas de Dionisio, in Catamarca, has an Internal Audit Unit (IAU) which registered a "low degree of compliance with its work" in 2007. According to a report from the General Audit Office (SIGEN), the UAI made only eight of the 39 inspections it envisaged for that year and also did not give details of the "deviations" in its own plan of action. The lack of data meant that SIGEN was "prevented from issuing an opinion on the sufficiency and effectiveness of the internal control system" in the firm.
The work adds that the UAI also did not execute projects to verify if a complementary exploration agreement was signed between Waters of Dionisio and Alumbrera Minera Limited. The internal audit did not perform its work despite the economic significance of the contract, and its impact on the economic and financial situation of the Catamarca deposit. In 2005 and 2006, the agreement resulted in the company being able to revert negative balances accumulated in previous years to a book value of approximately $ 256 million in December 2006 and to February 2007 Of the Louvre 82 million dollars in concept of utilities.
Yacimientos Mineros Aguas de Dionisio was created by Law 14,771 of 1958. It is a mining concession of 344 square kilometers, where gold and silver are extracted and refined and tradable products are obtained with the seal of the firm. The administration is run by the Province of Catamarca, the University of Tucumán and the Federal Government, and the profits are divided among Catamarca, the construction of a university city of Tucuman and, eventually, a redistribution of surpluses for other national universities.
The SIGEN adds that the Internal Audit Unit of the complex "did not produce projects related to the activities carried out by the mining concession, in accordance with the objective of creating the company." And in addition, adds that in that office, which should have six positions, only three employees work and one of them in part-time mode.