Regional Training Institute, Ranchi Structured Training Courseware on Treasury Inspection

1. Regional Training Institute, RanchiStructured Training Courseware on Treasury Inspection Session – 7Reporting the Results of AuditDiscussion of Common Irregularities at Treasuries

2. Learning Objective • At the end of the session, participants would • Get a perspective on common irregularities taking place at treasuries, and • Be able to produce a good and meaningful inspection report • Based on the observations / evidence noticed during the course of inspection RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/2

3. Draft Inspection Report – Characteristics • Written report on the completion of each inspection assignment • Content • Easy to understand, free from vagueness • Include only information, which is relevant, and supported by sufficient and competent evidence • Independent, objective, fair, complete and as concise as possible RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/3

4. Audit Evidence • Sufficiency • Adequate, actual and convincing evidence • To support audit observations and conclusions • Relevance • Logical and sensible relationship to issue • Collection of irrelevant evidence uses scarce audit resources • Competence • Valid and Reliable Evidence RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/4

5. Inspection Report – Other Characteristics • Complete • Contains all pertinent information needed to satisfy audit objectives • Promotes adequate and correct understanding of issues • Accuracy • Conclusions are correctly portrayed • Flow from true evidence • Assures users of credibility and reliability RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/5

6. IR – Other Characteristics (Contd.) • Objectivity • Balanced in content and tone • Not misleading • Places results in proper perspective • Avoid exaggerating/ over-emphasising deficiencies • Includes response/ explanations of treasury • Convincing • Information should be sufficient to convince users of • Reasonableness of audit observations • Validity of audit conclusions RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/6

7. IR – Other Characteristics (Contd.) • Clarity • Easy to read and understand • Use of straightforward and non-technical language • Technical terms, if used, to be defined • Logical organisation of material • Concise • Not longer than necessary to convey message • Avoid too much detail • Avoid needless repetitions RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/7

8. IR – Other Characteristics (Contd.) • Constructive • Well thought-out suggestions for remedying deficiencies and weaknesses noticed • Suggestions • Due regard to rules, operational constraints, prevailing environment • Discussed with high-level officials • As far as possible, acceptance obtained • Timeliness • To be of utmost use to users • Especially for auditees to take prompt action RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/8

9. Structure of Inspection Report • Part I • Introductory – Background information • Part II • Section A • Important irregularities with potential for processing as Draft Paras • Section B • Other important points • Part III • General / miscellaneous irregularities RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/9

10. Drafting and Issue of IR • To be written by AO on day-to-day basis • Objections to be discussed daily with TO • Settled as far as possible • Important matters to be discussed with Collector • Draft IR, with • TO’s replies • Questionnaire • To be forwarded to Hqrs. Within 7 days RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/10

11. Drafting/ Issue of IR (Contd.) • Approval by DAG(A/cs) • In case of serious irregularities • Submission to AG for approval • Issue within 1 month of completion • To Treasury Officer • Copies to • Collector • Divisional Commissioner • Director of Treasuries and Accounts, Finance Dept. RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/11

12. Disposal of IRs • Follow-up to ensure early receipt of Collector’s remarks • Important points, inferred from replies to be reported to State Government • Govt’s orders thereon to be watched, with view to inclusion in Appropriation Reports RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/12

13. Disposal of IRs (Contd.) • Register for watching Disposal of IRs • Monthly to DAG • Once in quarter to AG • Consolidated Half-Yearly Report of Outstanding paras of IRs • DO to Secretary, Finance Department RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/13

14. Common Irregularities Noticed During Inspection • Non-Inspection by Departmental Officers • Non-compliance on outstanding objections • Strong room maintenance • Stamp account maintenance • Register of valuables • Mis-classification of transactions • GPF advances • Delay in rendering Monthly Accounts RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/14

15. Common Irregularities (Contd.) • Non-maintenance of allotment register • Non-maintenance of guard file of specimen signatures • Improper maintenance of Letters of Credit register • Non-maintenance of Reserve Bank Deposits Register • Improper maintenance of Cash Book • Non-cancellation of Specimen Signatures • Non-maintenance of Salary Register RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/15

16. Common Irregularities (Contd.) • Heavy Drawals of AC Bills, and non-submission of DC Bills • Non-recovery of Income Tax from Salary • Improper Maintenance of PPO Register • Irregular/over payment of pension • Irregular transfers to Deposit Accounts • Improper maintenance of Deposit Registers • Lapsed Deposits RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/16

17. Common Irregularities (Contd.) • Irregular transfers to and maintenance of Personal Deposit Accounts • Non-submission of Consolidated Treasury Receipts to DFOs RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/17