Para 17.5 — CAM

17.5 QUANTUM OF AUDIT 17.5.1. An IA party should conduct a general review of all the accounts records maintained by an office since the last inspection or in case of new units, since the formation of that office. IA manual of the Department shall cover the methodology and process of selection of units to be audited and records to be inspected apart from the records on physical verification of assets and services. Apart from the general review, it should also conduct a detailed check of accounts records of at least one month in a year, selected by the Controller/Deputy Controller in charge of IA. Sampling techniques shall be used to select the sample data for IA. Since most of the payment and related records are now available in the electronic form, audit team shall analyse the data and prepare relevant questionnaire. Responses may be collected and draft para in such cases may be prepared before actual visit of the audit team. The percentage of bills/vouchers/cases etc. other than the month selected for detailed check will be left to the discretion of the Head of the IA party/team. While PFMS reports of various modules should be used in the process, it is also advisable to use analytical tools over PFMS data. The extent and nature of checks will include the following:

(a) Detailed scrutiny of accounts records required to be maintained in PAOs/ DDOs offices;

(b) Scrutiny of records of procurement, tendering, GeM, approvals and award of work/service/contract;

(c) Scrutiny of the sanctioning and purchase procedures so as to ensure that they are free from any defect or lacunae;

(d) Verification of payment and accounting procedures including procedures to be followed by cheque drawing DDOs. It will be seen in particular that the scope and extent of precheck and post-check by PAOs are adequate and that the procedures for maintenance of provident fund accounts, finalization of pension cases etc. are duly observed;

(e) It may be ascertained that all returns and reports are duly verified by the supervisory officers and adequate safeguards are there to ensure that transactions are reviewed regularly.

(f) Verifying the extent and frequency of controls and checks exercised by head of office to locate risks, that may cause frauds or defalcations either individually or in collusion. Wherever necessary, steps to remove such risks/lacunae will be suggested;

(g) Checking the procedures followed for disposal of assets etc. to ensure they are as per laid down condemnation and disposal procedures;

(h) Scrutiny of general office management procedures adopted by the heads of offices in areas having financial and accounting implications, so as to suggest measures for tightening up administrative and financial control, savings in expenditure or streamlining of processes and procedures, including accounting.

i. All the required accounts records are being maintained in the prescribed forms, compiled accurately and in correct manner;

ii. All processes of pre-check, accounting, consolidation and reconciliation are followed as prescribed in this Manual. iii. Payments were made in accordance with the rules and orders governing them with correct arithmetical calculations;

iv. Recoveries and deductions made from the bills are in order; v. Purchases are made as per rules and orders governing them and the reasons recorded for the cases where lowest quotations are not accepted;

vi. The instructions relating to the processing and submission of pension cases are observed; vii. All payments and receipts are duly accounted for;

viii. Various Broadsheets, Objection Books and Calendar of Returns are being maintained properly, verified and inspected by concerned supervisory officers. It will further be seen that the broadsheets are closed regularly on monthly basis, and the differences between Broadsheets and Ledger figures are analysed and steps taken for their expeditious clearance;

ix. The balances outstanding under various Debt, Deposit, Suspense and Remittance heads are reviewed at periodical intervals and steps taken to clear them as expeditiously as possible;

x. Last claims of government servants are correctly paid and over payments if any, brought to the notice of concerned DDO for appropriate action and follow up thereof;

xi. Pay fixations are correct; xii. All transactions are accounted under the correct heads of account and no unauthorized head of account is operated in the Classified Abstract/Consolidated Abstract;

xiii. Receipt scrolls/payment scrolls are received in time, checked properly as per laid down instructions and the discrepancies if any, are pointed out promptly;

Interest amount wherever required has been correctly calculated and accounted for; xv. GPF/CPF accounts are being maintained by PAO properly and reconciled through the prescribed broadsheets. It will further be checked that no missing debits/credits and unposted items are kept outstanding for unduly long periods and the closing of annual accounts and issue of statements of account are done by the due dates;

xvi. Foreign service contributions wherever necessary are recovered correctly; xvii. Loans, advances and grants-in-aid are paid correctly and over payments if any, are brought to the notice of the concerned DDO for appropriate action; xviii. In the case of payments made by CDDOs, the list of payments accompanied by paid vouchers are received from them every week by the prescribed dates, checked properly and accounted for; xix. The weekly accounts of receipts realized and remitted by the departmental officers with duplicate copies of challans are being received, and checked properly with the bank scrolls; xx. The instructions on reconciliation of figures under the heads Public Sector Bank /Other nominated Bank Suspense and RB Deposits are being duly followed; xxi. Verification through vouchers etc. that payment entries are made properly in the Pay Bill Register for the advances drawn, and that the recoveries are being effected regularly from the concerned Government servants. The correctness of entries should also be checked in the monthly abstracts of recoveries, especially those relating to `transfer in' and `transfer out' cases. xxii. Every Personal Deposit Account in the Ministry/Department is alive and in operation. xxiii. All instructions relating to maintenance of Pay Bill Register, Pay Bills etc. are strictly followed by DDOs. xxiv. To check whether the contributions towards NPS are correctly recovered from the Government servants covered under the Scheme and bills for drawing Government's Contributions are drawn/submitted along with the pay bills. the monthly reports on NPS are sent to the Principal Accounts Office on due dates and the records pertaining to NPS are properly maintained. All instructions with regard to NPS are complied with by PAO's. xxv. The instructions regarding reconciliation of expenditure and revenue receipts are being followed; and xxvi. To check whether there has been undue delay in the finalization of pension cases, IA Party will conduct test-checks with reference to the pension papers received from the Heads of Office.

(B) Cheque drawing/non-cheque drawing DDOs

(a) All the required accounts records are maintained in the prescribed forms;

(b) Payments made by the Cheque Drawing DDOs are in accordance with the rules and orders governing them, with correct arithmetical calculations and proper recoveries/deductions made from the bills. It will further be checked whether the List of Payments with paid vouchers are sent by them every week to the concerned PAO by the prescribed dates, and as per given instructions;

(c) The instructions for the maintenance of Cash Book, Contingent Register, Stock and Stores Accounts, Log Books and other account records are duly observed;