1. Regional Training Institute, Ranchi Structured Training Courseware on Treasury Inspection Session – 7 Reporting the Results of Audit Discussion of Common Irregularities at Treasuries

2. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/2 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

3. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/3 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

4. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/4 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

5. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/5 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

6. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/6 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

7. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/7 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

8. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/8 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

9. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/9 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

10. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/10 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

11. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/11 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.

12. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/12 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

13. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/13 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

14. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/14 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

15. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/15 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

16. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/16 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

17. January 2005RTI Ranchi – Reporting/ Discussion of Common Irregularities - Slide S7/17 Common Irregularities (Contd.)  Irregular transfers to and maintenance of Personal Deposit Accounts  Non-submission of Consolidated Treasury Receipts to DFOs