Check List for conducting Internal Audit of Accounts of SSA, NPEGEL and KGBV

Transcription

1 Check List for conducting Internal Audit of Accounts of SSA, NPEGEL and KGBV General Instructions: 1. The objective of this check list is to guide the Internal Auditors in the conduct of Internal Audit in a systematic manner so that all the significant points in finance & accounts, procurement, contract & tenders, payment of bills of contractors, planning process, flow of funds and staffing etc. are checked before finalization of Internal Audit Report 2. The Internal Auditors should familiarize themselves with the Manual on Financial Management & Procurement thoroughly before conducting Internal Audit. Para 100 to 105 of the Manual on Financial Management & Procurement provides broad guidelines for Internal Audit of SSA and Paras 51 to 99.7 of the Manual contains guidelines for maintenance of accounts. 3. Scope and coverage of Internal Audit and report Internal Audit of District Project Offices and sub -district units selected on a percentage basis should be conducted so as to cover all districts and sub- districts units at least once in 3 years. The Internal Audit report should indicate name of unit covered, date of Audit, review of planning process to ascertain whether the activities under SSA have been planned as per prescribed norms, review of financial systems to check the efficacy of internal checks and controls, review of establishment matters and staffing, review of Procurement and status of Statutory Audit, C& AG Audit and Internal Audit. 4 Finance & Accounts 4.1 To check whether 22 Registers( Annexure-I is attached for ready reference) indicated in para 52 of FM&P Manual are maintained. 4.2 To verify about the number of savings Bank Accounts maintained for SSA at SPO /DPO /Block & VEC Levels. The matter should be reported if more then one savings bank accounts are maintained at any levels. The reasons for maintenance of multiple Bank Accounts should also be mentioned in the Internal Audit Report 4.3 Cash book - To check cash book for ascertaining whether cash book is written daily as envisaged in para 79 of FM&P Manual monthly on regular basis. The Internal Auditor must also conduct physical verification of cash and report heavy cash balance if any. 4.4 To check whether Bank Reconciliation is done monthly on regular basis or not 4.5 Payment of bills of contractors

2 To verify whether Original bill duly signed by contractors is submitted Contractor has put his initials in all cuttings and corrections in the bill All Supporting documents are attached with the bills The rates, security deposit, and deductions are as per terms and conditions specified in the agreement The variations in quantities and completion period etc. have been authorized by the competent authority Job completion certificate has been processed by the dealing assistant of SSA Bills passed for payment are as per rules of the society All terms and conditions of the contract are fulfilled before passing the bills Every final bill is checked in detail with measurement books Cash/Bank Vouchers to be checked for authorization etc Overall review of the books of accounts Position of outstanding advances paid to suppliers/contractors Position of outstanding advances paid to employees Provident Fund Register- To check deduction of provident fund has been made as per rules of SIS/States Government. Whether PF slips are issued to the employees on yearly basis and to see whether all statutory returns for PF are submitted to the concerned authorities Salary Bill To check whether salary bill is prepared in such a manner that it gives breakup of the amount of bill and all adjustments such as deduction of PF, TDS and other advances and loans etc. 4.6 Flow of Funds The funds received in the SPO from the Government of India are to be transferred to the Districts & Sub-districts within 15 days from the date of receipt of the funds as per para 91.3 of FM&P Manual. Any undue delay in flow of funds should be reported in the Internal Audit report. 4.7 Utilization Certificate To check whether utilization certificate is for actual utilization of funds received. It should also be checked that utilization certificate is issued as per prescribed time frame given in the Manual and issue of UCs is not delayed by sub-districts, districts and SPO. Internal Auditor should also check whether expenditure incurred on each activity does not exceed the budget Financial Irregularities- Financial Irregularities noticed in Internal Audit should be included in the Internal Audit Report.

3 5. Procurement, Contracts & Tenders The following check list may be followed for procurement 5.1 To check whether the provisions contained in paras 111 to of FM&P Manual for procurement were followed in award of contracts. 5.2 To check that the time/date of receipt and opening of tenders was properly incorporated in the tender documents. 5.3 The important guidelines relating to earnest money, delivery schedule, payment terms, performance warranty/guarantee, inspection, arbitration, liquidated damages/penalty for delayed supplies, purchase on risk and cost were incorporated in the tender documents for safeguarding the interest of SIS. 5.4 The purchase proposal was approved by the competent authority. as per delegation of powers 5.5 Indent for purchase indicates the details of quantity required, last purchase rate, period for which stores are needed and name of consignee. 5.6 Approval of mode of procurement 5.7 The tender documents are prepared properly and description of items to be procured, quantity and estimated value should be indicated. 5.8 To check whether the provisions of para of FM&P Manual were followed for notification/advertising and opening of bids at notified date, time and place in the presence of bidders. 5.9 Award of contract and its execution is as per procedure and guidelines issued by the Govt. of India in view of conditions agreed with the Development partners (DFID, World Bank, & European Union etc.) 5.10 To check whether bids were evaluated in terms of the provisions of the bid documents and the evaluation report was available To check whether contract was awarded to the lowest evaluated responsive bidders who fulfilled qualification requirements, specified in the tenders documents In case of negotiations of prices, it should be checked whether the negotiation was made with L1 bidder and all the relevant records thereof were available as indicated in para to of the FM&P Manual 5.13 To check whether articles were received/work was completed in time as per delivery schedule The stores/goods are properly recorded in the Stock Registers /Asset Register Whether any complaint was received regarding procurement and payment and existence of mechanism for redressal of complaints as envisaged in para 128 of FM&P Manual 5.16 To check whether payment was released to the supplier/contractor as per terms of the contract. The delay in payment may be indicated with reasons.

4 5.17 Whether any price preference was given to a bidder as per state procedure and justification thereof was recorded A Certificate that the goods/stores received are in good condition and are as per purchase order in terms of quality, quantity, specifications and price and same have been entered in the Stock Register at Page No. is recorded on the Bill/Invoice To check whether any irregularities relating to procurement reported in the previous audit reports have been complied with 6 Staffing and Establishment 6.1 To check Status of Staffing in Accounts and Internal Audit with reference to para 85 of FM&P Manual at SPO, DPO BRC/CRC levels and steps taken for filling up vacancies 6.2 To check whether Orientation Training on planning, budgeting, accounting, internal audit and procurement is arranged for Finance &Accts personnel regularly as per para 86.1 and 86.2 of FM&P Manual 6.3 To check compliance of rules in regard to establishment matters viz., travel, daily allowance, leave, advances (House building and vehicle advance etc.) and settlement thereof. 6.4 To check salary bills. 6.5 Establishment matters To check personal files of employees and to see whether all records are updated from time to time. 6.6 Attendance Register To check number of persons mentioned in the attendance register tally with the sanctioned strength of a unit. 6.7 To check whether record of absence/leave 6.8 appointments/promotions/transfers is maintained and updated on monthly basis. 6.9 Leave Register To check whether a leave register is maintained as per types of leave as medical 6.10 Leave/CL/EL/maternity/paternity leave. 7. Field Internal Audit To verify 7.1 Attendance register of the school staff and teachers 7.2 Attendance register of students. 7.3 Requirement of teachers 7.4 To check purchases made by the school authorities. 7.5 Updation of information on display board of school regarding allotment and expenditure of funds by VEC. 7.6 To check cash book, Bank pass book/bank Statement, Stock Register, Assets Register and cheque Issue Register etc. at school level.

5 8. BRC/CRC To check the following: 8.1 To check cash book, Bank Pass book/bank statement, Stock Register, Assets Register and cheque Issue Register etc. 8.2 Attendance registers of staff. 8.3 Leave register of staff 8.4 Training courses organized and the no. of participants. 8.5 Purchase made by BRC/CRC 8.6 Maintenance/Updation register regarding details of funds received and expenditure. 8.7 Training needs of personnel at BRC/CRC. especially on accounting/book keeping. 8.8 Payment to resource persons Internal Auditors should check whether payments are correctly made for the Job done and proper records are maintained. 8.9 Re-appropriation of funds Any diversion/re-appropriation of funds not covered under the provision of para 86 of the Manual should be pointed out for remedial action. 9. Compliance of Internal Audit Report Remedial action should be taken on the observations of Internal Auditor and Outstanding paras should be settled within a period of 3 months. DPO should submit a compliance report to SPD on monthly basis. The Internal Audit paras remaining outstanding for more than one year need to be included in the agenda of EC meeting for decision. 10. Others: a. Review of old items of recoverable and security deposit. b. Review of compliance of previous Internal Audit reports. c. Review of idle assets. d. Physical verification of stores at periodical intervals. e. Status of preparation / submission of Annual Report f. Status of IPAI s Concurrent Financial Review Report - position of compliance of observations, submission of replies and remedial measures taken.

6 Annexure - 1 Registers to be maintained under SSA as per para 52 of FM&P Manual. 1. Cash Book 2. Ledger 3. Journal 4. Register for Journal/Magazines/Newspapers 5. Register for Temporary Advances 6. Register of Money Orders/Bank Draft Received 7. Cheque Issue Register 8. Register of Remittances made into bank 9. Bank Passbook 10. Register of Bank drafts dispatched 11. Bill Register 12. Establishment Register 13. Stock Register 14. Capital Goods/Consumable articles, non consumable articles and Register of works 15. Register of grants of Advances to NGOs/Voluntary Agencies 16. Fixed Assets Register 17. Register of Investments 18. Classification Accounts of the Project 19. Monthly accounts of Receipts/Payments 20. Temporary Advances Register for Staff, Customers/supplier/VEC and TA/DA Advance 21. Dispatch Register 22. File Register