Annexure-P

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

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To verify whether

4.5.1 Original bill duly signed by contractors is submitted.

4.5.2 Contractor has put his initials in all cuttings and corrections in

the bill.

4.5.3 All Supporting documents are attached with the bills.

4.5.4 The rates, security deposit, and deductions are as per terms

and conditions specified in the agreement

4.5.5 The variations in quantities and completion period etc. have

been authorized by the competent authority

4.5.6 Job completion certificate has been processed by the dealing

assistant of SSA.

4.5.7 Bills passed for payment are as per rules of the society.

4.5.8 All terms and conditions of the contract are fulfilled before

passing the bills.

4.5.9 Every final bill is checked in detail with measurement books.

4.5.10 Cash/Bank Vouchers to be checked for authorization etc.

4.5.11 Overall review of the books of accounts.

4.5.12 Position of outstanding advances paid to suppliers/contractors.

4.5.13 Position of outstanding advances paid to employees

4.5.14 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.

4.5.15 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.

4.8. Financial Irregularities- Financial Irregularities noticed in Internal

Audit should be included in the Internal Audit Report.

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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 128.3

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 115.4 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.

5.11 To check whether contract was awarded to the lowest evaluated

responsive bidders who fulfilled qualification requirements,

specified in the tenders documents.

5.12 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 115.28 to

115.33 of the FM&P Manual

5.13 To check whether articles were received/work was completed in

time as per delivery schedule.

5.14 The stores/goods are properly recorded in the Stock Registers

/Asset Register.

5.15 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.

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5.17 Whether any price preference was given to a bidder as per state

procedure and justification thereof was recorded.

5.18 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.

5.19 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.

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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

.

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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