Para 3.12.7 — MSO

Local audit of Provident Fund Accounts 3.12.7 Local audit of the Provident Fund Accounts maintained by departmental officers will involve the following:

(i) Selection of representative sample for test check, keeping in view the efficiency of the internal control mechanism in the department concerned.

(ii) Tracing of the entries in the selected accounts from the recovery schedules, payment vouchers, personal ledger cards and broadsheets and verification of the correctness of the debits/credits as reflected in the broadsheets with reference to the corresponding details appearing in the monthly accounts.

(iii) Examination of the efficacy of system followed by the departmental officers for the periodical reconciliation of the debits and credits with the accounts maintained by the A&E Office.

(iv) Scrutiny of systems and procedures in force for enrolment of subscribers and maintenance of Index Registers.

(v) Verification of annual closure of accounts and despatch of annual account statements to subscribers on the scheduled dates.

(vi) Analysis of un-posted debits and credits and missing credits, particular attention being paid to minus balances in the ledger accounts to ascertain the reasons for the minus balances.

(vii) Scrutiny of ledger accounts to verify that sanctions to advances or withdrawals and acceptance of balances have been noted therein.

(viii) Examination of the adequacy of the action taken to locate missing debits.

(ix) Verification of

(a) the correctness of carry forward of closing balances at the end of the financial year as opening balances of the subsequent year and of the interest calculations with reference to the applicable rates; and

(b) the reporting of adjustment of interest afforded to individual accounts to the A&E Office before closure of accounts for the year.

Note: In States where the Accountant General (A&E) is responsible for maintaining the Provident Fund accounts of State Government employees, the Central Audit Branch of the Audit Office will look into the aspects mentioned in paragraphs 3.12.6 and 3.12.7.