Internal Audit Questionnaire 2021.pdf
Government of India Ministry of Communications Department of Posts
Manual of Internal Audit Questionnaire
(For internal use in Circle Postal Accounts Offices only)
Edition- 2021
Issued under the Authority of Secretary, Posts.
Government of India
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF POSTS
Manual of Internal Audit Questionnaire
(For internal use in Circle Postal Accounts Offices only)
Edition- 2021
Issued under the Authority of Secretary, Posts.
© Department of Posts
No part of this publication may be reproduced in any material form
(including photocopying or storing in any medium of electronic means
and whether or not transiently or incidentally to some other use of this
publication) without the express permission in writing of Department of
Posts.
Committing an unauthorized act in relation to a copy-right work may
result in both a civil claim for damages and criminal prosecution.
No person can export this book outside India except with the written
permission of the Department of Posts.
PREFACE
The responsibility of the Internal Audit functions of the Postal Accounting Units vests with the
Postal Accounts offices, the first manual of Internal Audit questionnaire for conducting the
Inspection by Circle Postal Accounts Offices was brought out during the year 1988. The same
was revised in the year 2002 and further in 2010.
Since then there have been vast changes in the functioning of the Department due to
modernization and introduction of technology. Consequent upon roll out of ERP application in
the department, several procedural changes have also been there. Various new products and
schemes were also introduced and the way of activities performed has also been changed over
the period of time.
In order to keep the pace with technology changes, a committee consisting of Sh
Abhishek Singh Director (Accounts) Sh Pratap Singh Ex Director (IA), Sh K.N.R.Bhatta now
Director (IA),Sh C.S.Guleria,Ex ADG and Sh B.P.Pattanayak Ex Dy DDAP,Kolkatta and co-
opted member Sh A Saravanan Director, CEPT Chennai under the chairmanship of Shri.M.
Sampath, the then Chief Postmaster General, Tamilnadu Circle , Chennai 600002 for revision of
Inspection Questionnaire for Internal Audit of Postal Field Units to be conducted by Postal
Accounts Offices in post CSI scenario vide Directorate letter No. 4-1/2019 - PA(IA) / 2066-77
dated 26.06.2019 and accordingly adopted .
This revised questionnaire (Edition-2021) has been brought out in accordance to
technological changes, changed procedures and additions/alterations as of now wherever
necessary. Every care has been taken to include the changes in this questionnaire as per changed
procedure on account of introduction of new product and services as well as ERP application,
yet, any error/omission, if noticed, may kindly be brought to the notice of Internal Audit Division
of Directorate . General guidelines/procedures for the inspection of field units are brought out in
the succeeding Chapters. These guidelines are only illustrative in nature and not exhaustive.
They depend on the overall working and intelligence of the Inspection Party which is supposed
to be well conversant with the rules/orders.
Vineet Pandey Secretary (Posts) New Delhi-110001 Dated 15th August,.2021.
FOREWORD
This manual of Internal Audit is intended to guide the officials of the Internal
Audit Section in inspecting various Offices in the Circles. The last Internal Audit
questionnaire was issued in the Year 2010. Since then there have been a lot of changes in
the functioning of the Department due to modernization and introduction of technology
which necessitated the revision of questionnaire. Appropriate changes have been
incorporated in this manual wherever necessary.
The procedures and guidelines included in this manual will improve the
organization’s operations and add value. The purpose is to provide reasonable assurance
that processes are functioning as intended and will enable the objectives and goals to be
met and also to provide recommendations for improving the operations of the office in
terms of both efficient and effective performance. It will help to accomplish its objectives
by bringing a systematic, disciplined approach to evaluate and improve the effectiveness
of risk management, control and governance processes.
(Anil Kumar Nayak) Additional Secretary & Financial Adviser New Delhi-110001 Dated: 15th August, 2021.
INTRODUCTORY AND GENERAL GUIDELINES
The scheme of departmentalization of Union Government accounts provides for setting up of
an efficient internal audit organization to ensure accuracy in accounts and efficiency in the
operation of the accounts set up. An internal Audit organization has accordingly been set up
in DoP. The scope and function of the internal audit organization depends on the nature of
work, the number of subordinate offices, the strength of establishment, nature and quantum of
expenditure etc. As per the scheme, each Ministry will draw up a Manual of Internal Audit
specifying the duties and functions of the organization, with particular reference to the
prevailing conditions in the Ministry/Department. The guidelines contained in this chapter
will regulate the working of these organizations. The scope of Internal Audit in the
Department of Posts has been defined in the Chapter XVII of Postal Accounts Manual Vol.I.
As per the new charter of duties and responsibilities of Chief Controllers of Accounts issued
by the Secretary, Department of Expenditure, Ministry of Finance, the following functions
will be carried out as per the guidelines issued by the Controller General of Accounts from
time to time.
(i). The appraisal, monitoring and evaluation of individual schemes;
(ii). Assessment of adequacy and effectiveness of internal controls in general, and soundness
of Financial systems and reliability of financial and accounting reports in particular;
(iii). Identification and monitoring of risk factors including those contained in the Outcome
Budget;
(iv). Critical assessment of economy, efficiency and effectiveness of service delivery
mechanism to ensure value for money; and
(v). Providing an effective monitoring system to facilitate mid course corrections.
2. QUANTUM OF AUDIT:-An internal audit 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. 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 respective
GM(Finance) DAsP or in charge of internal audit. 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
[I]
the internal audit unit/team. The extent and nature of the checking has been described in the
Internal Audit questionnaire in the respective chapters.
3. PERIODICITY OF INTERNAL AUDIT INSPECTIONs :- Considering the complexity of
transactions and accounting under accrual based accounting and also to increase the quality &
effectiveness of the internal Audit , the periodicity of inspection would be once in a year
corresponding to executive inspection periodicity (calendar Year).
4. INTERNAL AUDIT TEAM: It is recommended that to maintain quality and effectiveness
of internal audit, a well-defined IA team within the existing establishment may be formed and
personnel posted to such IA unit with two-year tenure and headquarters would be of
respective PAO. The duty of such team would be from planning IA to process for settlement
of paras. This would improve quality and continuity of personnel in IA for better
understanding and audit.
5. COMPOSITION OF PARTY: The present strength of Internal Audit team for various units
by Postal Accounts Office consists one ACAO/Sr.AO/AO, two AAOs and two SA/JA.
Considering the availability of data centrally in the system and such checks can be exercised
centrally, the existing strength may be kept at five with the following composition:-
Unit Total
strength
Headed by Remarks
Postal Directorate/Circle office/Region Office/ PTC/CEPT/ RAKNPA/ DPLI & Investment division, Kolkata/ Offices headed by independent Directors
4 (four) 1-JAG level officer
1-ACAO/ Sr. AO / AO 2- AAOs 1-SA/JA
This composition is for PAO headed by GMs. Wherever, JAG level officer not available, one STS officer may head the IA team. 1-STS level officer 1-ACAO/ Sr. AO / AO 2- AAOs 1-SA/JA
This composition is for PAO headed by JAGs. Wherever, STS level officer not available, one JTS officer may head
[II]
the IA team.
PSD/CSD/MMS/PED/PCD/ Foreign post/ GPO/Gazetted Head post
4 (four) 1-STS level officer 1-ACAO/ Sr. AO / AO 2- AAOs 1-SA/JA
Wherever, STS level officer not available, one JTS officer may head the IA team.
Head post offices/ canteen / Divisions & other units
4 (four) 3- AAOs 2- SA/JA
The IA team led by Senior most AAO.
6. DURATION OF INSPECTION:-The duration of Internal Audit would be as under:
Unit Duration Remarks Postal Directorate/Circle office/Region Office/ PTC/CEPT/ RAKNPA/ DPLI & Investment division, Kolkata/ Offices headed by independent Directors
3 Three days Three working days
PSD/CSD/MMS/PED/PCD/ Foreign post
3 Three days Three working days.
General post office 12 days 12 days for GPO Delhi/ Kolkata/ Chenai/ Mumbai and 10 days for other Nodal HPOs like Bengaluru GPOs,Sansad Marg HPOs etc . Head post offices & Divisions 10 days 8 days for Head post Offices and two days for Divisional office. This includes inspection of units attached to HPO and Divisions. During the period, one SO and one BO to be inspected.
7. PROCEDURE FOR CONDUCTING INTERNAL AUDIT:-The work relating to internal
audit should normally be conducted by inspecting various units and offices and "on the-spot"
verification of accounts records. The work of the inspection parties may be coordinated
[III]
through internal audit cell at the headquarters (PAOs), depending upon the nature, number
and size of the internal audit set up.
(I). As a step further, considering the merger of Postal Accounts sections with Internal Audit
as well as Internal Check Organization (SB) situated at Circle office/Region offices as a
whole in Circle Postal Account offices, the questionnaire issued by the Inspection unit of this
Directorate for Internal check of SB and SBCO branches at Head Post offices is also annexed
to the manual.
Considering the data availability in the system centrally the concurrent audit of the
transactions can be done at PAO level. Each SA/JA should be allotted minimum 3 DDOs in
Postal Accounts section of PAOs. At least 12 SA/JAs should be supervised by a AAO. Every
wrong booking/misclassification should be reported and get rectified from the DDO
concerned. In case, the error or omission is not rectified, should be passed on to the Internal
Audit which may further raise an audit memo as per usual process.
(II). Similarly, considering the deployment of AOs and AAOs in regional offices, it should be
ensured that a tab on the transactions of all such sub post offices should be kept whose
monthly business is Rs 1 crore or above. Such sub post offices should be audited by the AO
or AAO posted in the regions once in a year with a periodicity of 1 day per week.The tour
programme shall be designed for internal Audit of sub post offices for a continuous
minimum period of 15 working days duration. Any irregularities noticed should be got
rectified in consultation with Region Head or DPS concerned and still persists may be
conveyed to Internal Audit section of the Circle Postal Accounts offices.
8. SUBMISSION OF INTERNAL AUDIT REPORTS & RESULTS ETC:-
The Supervising Officer would try to settle on spot maximum number of items raised by the
Inspection Party after going through the relative records/ information supplied and personal
discussions with the officers of the unit concerned. The IA reports should contain only those
paras which could not be settled, and have to be perused centrally. These reports would be
submitted to Internal Audit Section of the Circle Postal Accounts Office which will scrutinize
and sent it to the unit(s) concerned for compliance. The relevant extracts from the Report
would also be sent to the concerned Executive authorities (viz SSPOs, DPS, and PMG etc)
[IV]
where necessary. A Report containing important points or serious irregularities, if any, should
be submitted to Director, IA Division at Headquarter along with action taken report for their
speedy settlements for onward transmission to AS & FA/ Secretary (Posts).
9. The extant of Internal Audit in respect of various items of work in the accounting units and
the questionnaire to be used by the Internal Audit Parties is brought in the succeeding
chapters. The instructions contained in the relevant chapters are only illustrative and not
exhaustive. The success of internal audit solely depends upon the intellectual capacity and
presence of mind of the Internal Audit Parties which are supposed to be well conversant with
the Government Rules/ Orders.
***
[V]
QUESTIONNAIRE FOR INTERNAL AUDIT OF POSTAL FIELD UNITS TO
BE CONDUCTED BY POSTAL ACCOUNTS OFFICES
IN CSI ENVIRONMENT
Chapter Subject Page No.
I. Postal and RMS Units 2
II. Circle Office and Regional Offices 69
III. Postal Stores Depot 88
IV. Mail Motor Service 99
V. Postal Life Insurance 146
VI. Circle Stamp Depot 177
VII. Returned Letter Office 183
VIII. Commission paid to authorised agents 186
IX. Circle/ Regional Welfare Fund 187
X. Departmental Canteens & Tiffin Rooms 200
XI. Foreign Post 207
XII. Civil & Electrical Wing 224
XIII. Philatelic Exhibition 256
XIV India Post Payment Bank 259
XV ATM,National Accounting Unit, Payment
Channel Division, Bengaluru
261
Appendix Questionnaire for inspection of SB and SBCO
branches by AO (ICO)SB.
[1]
CHAPTER – 1
Postal and RMS Units
1. The inspection of Post Offices should be carried out by the inspecting
officer and his staff intelligently. The last Inspection Report by the Audit
Officer I.A. Officers as well as the Report of Executive Inspecting
Officer should be reviewed personally by the I.A. Inspection Officer to
see that the irregularities in accounts noticed in them have been settled.
The failure to rectify all or any of them should be commented on.
2. With regard to the cash arrangements, custody of DOP cash, cheque books,
issue of cheques. All accountable items, upkeep and balancing of DOP cash
and availability of days’ accounts with vouchers etc., it should be seen that
the procedure, Rules laid down in the Postal Financial Hand Book Volume
I, are observed. No physical verification of balances of cash or stamps
need be undertaken. The arrangements for the obtaining cash from Bank
and for its safe custody, payment and accounting should also be examined
to see that they are in conformity with the Rules. Test check for the marked
month including the 3 days of inspection be done.
3. Check whether CDDO has taken any view right of the Bank Account on
personal/corporate and ensure that it is meant only for view of daily
transactions to ensure its incorporation in DOP Books of account. CDDO
may take the hard copy of the bank statement month to month basis and
ensure correctness with reference to his accounts. All the balances lying
unlinked (PO unlinked and Bank unlinked) be highlighted.
4. The Inspection Officer should also ascertain and record the following facts
in the Inspection Report:
[2]
i. By whom and on what date the cash, etc., were last physically counted
and whether previous day’s Closing Balance as verified on that
occasion was recorded in the relevant inspection report.
ii. If any discrepancy is found on that occasion between the physical cash
and the book balance, how it was accounted for.
5. A test check over the cash balance of the first and the last working days of
the month, the accounts of which are test checked and of one week apart
from these dates should be carried out to see if the cash balances are within
the authorised limits. It should also be seen whether the limits so fixed are
excessive or not. If the actual cash balance in hand is in excess of the
authorised limit, the reasons should be investigated and recorded in the
Inspection Report.
6. It should be seen whether the accounting of due on unpaid articles in the
DPMS module is correctly getting accounted in the respective GL and
comment on the system put in place to identify such unpaid articles before
delivery. Check with reference to daily transaction report.
7. That the Sub and Branch Office Cash Balances kept within the prescribed
limits. In cases of excess balance, it should be seen that the reasons given
in the excess cash balance Memo justify the excess. The Inspecting Officer
should examine generally to ascertain that the prescribed limits of the cash
balance are not excessive. The cash transfer report may be extracted and
checked with SO/BO remittances and vice versa for the test check month.
a. That there was no abnormal delay on the part of the treasurer in
admitting transactions on account of remittances. The daily transaction
report of Sub and Branch Offices for several months should be selected
at random to see whether there were any unauthorised remittances from
[3]
one Post Office to another and the Postmaster specifically asked
whether there were any such remittances.
Check the transactions of reversals done in the system and ensure the
correctness as well as the justification of such reversals.
Comment on the frequent usage of reversals for correction of mistakes.
Reversal requests raised and pending at PAO may be listed.
b. that the figures of the Sub Postmasters or Branch Postmasters in the
Daily Accounts are not altered by the Sub Account Clerk or any other
official of the Head Office
8. Check Cash In transit, Cheque in transit for the selected months and dates
and ensure that there are no open items pending for acknowledgements
Check for the correctness of transfer of material from Head post Office to
Sub Post office Storage Locations in case of Stamps and other Stationeries
including IPO, Pass book etc., Cash and cheque in transit from and to profit
centres may be verified with respective 10-digit SAP GL codes.
9. Check the totals of respective GL of Reports in case of POS transactions
with reference to POS Abstract Report for the selected days and ensure that
the corresponding figures has been flown to F&A and is correct.
10. The entries against items “Savings Bank Deposits”, “Savings Bank
Withdrawal”, “iMO”, “e-MO”, “Money Orders issued” and “Money Orders
paid”, etc., and all other GLs should be compared with the DTR of the
Profit Centres for selected days.
11. The entries against items “Drawn from treasuries Clearing Account and
Drawn from Bank Clearing Account and remittance to Bank Clearing
Account and Remittance to Treasuries Clearing Account should be
compared with the Register of Cheques received and Cleared Data.
[4]
12. The entries against items like 1201 Other Receipts, Other Items and 8553
Payments and Check the correctness of Postings to the respective GL
accounts.
13. Check the availability and correctness of Bills received from other Units as
CDDOs while making payments to such units against the bills as DDOs.
14. Whether the closing balance as in DTR matches with the DOP closing
balance as in Treasurer’s Cash Book be checked and also with the physical
cash balance held by the office. No physical check of cash is necessary.
15. Check the Postman Issue GL is settled for each Day and net balance is Zero
at the close of the day.
16. Ensure that the amount settled towards VPP Clearing accounts has been
correctly accounted and disposed of by booking e-MO on the same day.
17. While reviewing various GL reports of Field Units 15% of the entries of
grant of short term advances such as TA, LTC, Medical Leave Salary
advances etc. should be picked up with reference to the HR schedule and
ensure its settlement and adjustment in the final bill/ recovery.
18. The Inventory of Stamp balances for each day should be checked and the
difference between opening balance and closing balance including receipts
for the day is tallied as Sale of Postage Stamps/ Commemorative Stamps.
The balance as in MB52 report be referred to.
19. In the case of RMS Offices, it should be seen that the DTR is generated in
the System and verify the correctness of reversals with the supporting
[5]
documents. Verify the correctness of Cash Remittance/ Cash Receipts
from the concerned Cash/ Account office.
20. It should be seen whether the figures shown in the Test Checked CGA
report for the month brought for Test Check against the several Heads
under receipts and payments agree with those shown in the respective GLs
for a month.
21. It should be seen that the Statement of Physical Cash balance with
DDO(HO+SO+BO) tallies with the System Closing DOP Cash Balance GL
at the Opening and Closing day of the accounting month. It should be seen
that the HO daily transaction reports are duly signed by the Postmaster.
Any discrepancy in cash in transit. Cheque in transit, POS balance ,VPP
clearing GL, one time customer GL report for the day be identified and
acted upon.
22. The amount as shown in the Remittance GLs for Inward and Outward /
POR and RSAO, corresponding Debit/Credit GLs should be checked cent
percent to ensure the accounting is genuine transaction. The checks
indicated above should be exercised in respect of the transactions of the
days / period as marked by the Head of Postal Accounts Office.
23. Check the Register of Cheques and the corresponding Accounting entries in
the SAP F&A accounts for the days/periods as marked by the Head of
Postal Accounts office.
24. In case of Inward and Outward Cheques, the respective data may be
obtained from Cheque Truncation System (CTS) / Grid Clearance and
corresponding accounting of the books of Profit Centre for the days/periods
as marked by the Head of Postal Accounts office be checked and verified.
[6]
25. The amount in the schedules of remittances ( GL reports of RSAO and
POR) received and sent should be compared with the remittance advices
and acknowledgements respectively wherever applicable.
26. Check the generation of Acquittance Rolls wherever applicable to ensure
the corresponding Payment GL entry in the respective Profit Centre.
(DDO).
27. The regulation of TRCA from time to time in case of BPM and ABPM for
the test check month be thoroughly checked with reference to
Establishment workload particulars.
28. The payments made to Substitutes against the vacant post of ABPM and
BPM and also for LWA periods, Put off duty cases etc., be checked for a
test check month. The correctness of the corresponding allowances being
paid to ABPMs and BPMs as per the existing TRCA Rules be checked.
29. The fixation of TRCA consequent on new appointments, Redeployment,
Transfers in case of ABPMs and BPMs be reviewed for the period between
the last date of inspection to the present date of inspection.
30. Check the payment made to Part Time Casual labourers / Full Time Casual
labourers / Temporary Status Casual labourers as found in the
establishment of the DDO with reference to the Sanction/ approval of the
Competent Authority.
31. Check the correctness of Pay Drawals with reference to HR Documents
with that of entries in the Service Records and corresponding allowances
thereon with reference to the Basic Pay. The availability of Certificates in
case of Suspension, Leave on Medical Grounds etc., be checked. Non-
availability of Rent free Quarters in support of HRA drawals be verified.
[7]
32. It should be seen that health certificates of Government Servants (including
Part Time Government Servants, contingency Staff, whole time or Part
Time and Extra Departmental Agents), in all cases in requisite form and are
recorded in the proper place.
33. It should be seen that the specimen signatures of the drawing officers other
than the Postmaster himself, are properly maintained, and the same agree
with those on the Bills brought form Accounts Office.
34. The following checks should be exercised during the Internal Audit
Inspection of Postal Units
i. Revenue Side – Whether the revenue realised on account of this service
is in accordance with the rates prescribed by the Directorate. At least
check of two months’ accounts in a year should be conducted.
ii. Expenditure Side –
a. Whether payment of incentive money to Postmen and other staff
employed for the purpose of delivery is in accordance with the
standards prescribed for the purpose.
b. Payment of conveyance allowance to staff should be checked.
c. Employment of special means of conveyance such as taxi etc. for
ensuring timely delivery in cases of breakdown of the normal means
of transport should be scrutinised.
d. Refund of special charges realised in cases of belated delivery or
non-delivery should be checked.
iii. Check the correctness of the Collection of GST on Supply of Output
Services and its payment to the respective authorities on the due dates
without fail.
[8]
iv. Check the accounts of all Registered BD Customers to ensure that the
Bill/ Invoice is raised on due dates and penal interest charged wherever
applicable.
v. Check the settlement process done by the respective units. In case of
Postage by Franking, ensure correctness of Revenue Accounting.
vi. Check the Ledger accounts of all the Registered Customers and ensure
proper posting is happening in the Ledger for Receipts and Payments of
the Registered Customers.
vii. Check the Open Items pending as overdue and comment on the action
taken by the Divisional Head for liquidation of outstanding dues.
viii. Check the correctness of the Security Deposit made by the different
Registered Customers and found adequate with reference to the average
sales per month
ix. The off cycle payments and salary payments ( pay sheets) of month of
test check should be checked with reference to the sanctions. These
payments to be checked in CSI during course of inspection and found
any discrepancies or irregularities are to be recorded in the Inspection
report.
35. Check that whether revenue for BP COD, SP COD, SP parcel COD, EP
COD has been transferred to the revenue from 8446 GL once the liability
against the registered customer is knocked off.
36. A test check of Master Data as available in the PAO be compared with
the Master Data as available in the HR and check the correctness of
[9]
payment such as Basic pension, Reduced Pension, Dearness Relief,
Enhanced Family Pension, Fixed Medical Allowance, Restoration of
Commutation of Pension amount and Payment of additional quantum of
Pension/ Family Pension on attaining the age of 80 years etc.
37. Cent percent check on availability of Life Certificates/ Jeevan Praman
Patram be conducted
38. Ensure that the PPO files in case of Postal Service/Family pension cases
wherein no beneficiary available consequent on the death of the
pensioner/family pensioner is sent back to PAO and no erroneous
payments are made in the month of audit. All similar checks be made
wherever applicable in case of Telecom pension/Railway Pension, etc.,
39. Test check payment of Pension through Voucher Posting any be made
and comment on the irregularity.
40. A check of different classes of pension payment GLs have to be carried
out for correctness; and also life time arrears, additional quantum of
pension, disbursement mode checks to be carried out and findings needs
to be noted in the Inspection Report.
41. Test check all Travelling Allowance Bills on Tour/ transfer as per
Supplementary Rules and ensure its correctness including advance
payment/ Adjustments, if any. In case bills are processed through PA30
instead of ESS, ensure that the amount payable as per the Sanction is the
same as entered in PA30.
42. The Correctness of GL booking in case of system posted documents and
in case of manual Voucher postings should be checked in particular and
any variation in mapping of GL be brought into the report for immediate
correction in the system.
[10]
43. It may also be ensured that no such bills have been processed for
Sanction/ Claims submitted after the expiry of 60 days of the journey/
completion of journey.
44. In case of Bills preferred beyond due dates in case advance taken and
also unutilised amount of advance is not credited back immediately on
completion of journey, ensure that the penal interest is charged for the
unutilised amount and got credited to Govt. accounts.
45. The following checks should be exercised over the overtime allowance
Bills for the month selected for Test-Check: -
i. It should be seen that previous authorisation by the Head of the Office
for the performance of overtime duty exists in each case and that no
overtime is ordered without good or sufficient reasons.
ii. The rate of pay of Part II officials shown in the Overtime Allowance
Bills brought from the Accounts Office should be verified with
reference to the relevant entries in the official’s Service Books / Rolls.
iii. The correctness of the certificates endorsed on the Overtime
Allowance Bills as required by Note (1) below Rule 323 of P& T
Financial Hand Book, Volume I should also be verified in full with
reference to the Attendance Registers and other initial records, which
can be obtaining initial records may, however, be made, when the
claims of outlying Sub-Offices are unduly heavy.
iv. In the case of RMS officials, the correctness of the claims should be
checked with reference to the statement showing particulars of duty
performed by RMS officials and the duty Register, Forms “B” and
“C” respectively maintained by the Head Record Clerks under DG
P&T’s letter No. PE-11-4/53 dated the 15th Oct., 1954.
[11]
46. The Register of Retrenchment Objections should be examined to see:-
i. That all the items shown in the objection statement on the
accounts for the month of test check have been included therein.
ii. That no amount of advance or disallowance has been left
outstanding for an unusually long period. In case, there is any
such items, the cause of delay should be investigated thoroughly
and the officer-in-charge advised of the action that should be
taken.
iii. Ensure that the entries are not deleted at any point of time in the
system and any refund was erroneously effected to the
employee.
iv. Ensure that all the Outstanding under Long term and Short Term
Loans and Advances including Audit Objection Recovery
amount is correctly brought into the System against the
Employee ID and the recovery is done correctly.
47. The advance Registers should be scrutinised and delays in adjustment of
advances (such as the advances of Pay and TA on transfer tour TA as
well as other short term advances Festival Advances etc.) should be
commented upon in the Inspection Reports.
48. The items of advances and disallowances that are considered
irrecoverable and the action taken for their recovery or adjustment should
be noted in the report.
49. The cases of delay in the disposal of objection statements as shown in the
statement brought from the Accounts Office should be investigated and
the result of the investigation noted in the Report. It should also be seen
whether the nature of the Objection indicates careless accounting or
ignorance of rules procedure.
[12]
50. Deposits relating to rent of Post Boxes and Bags should be test checked
with reference to the original documents and file of correspondence with
a view to seeing that the deposits have been credited in favour of proper
persons and that the amounts deposited have been accounted for correctly
and in full. Check whether the deposits not renewed on time got forfeited
to Government accounts.
51. It should be seen whether the full installed capacity of the number of Post
Boxes is rented out on the basis of demand and, if not whether the same
was due to faulty mechanism, not got rectified in time or similar other
causes, leading to potential loss of Revenue to the Department.
52. The following checks which should be confined to two months accounts
selected for check in respect to deposits referred to in Appendix 28 of
P&T Financial Hand Book Volume I, and also instructions issued by Dte
from time to time for maintenance of Register of Deposits should
exercise to see:
i. Whether all Open Items and Cleared items are available in the
system along with the General Ledger Review.
ii. That the rules and orders regarding forfeiture of deposits have been
correctly observed and transfer entry have been effected to transfer
such deposits to postal Revenue on expiry of three years.
iii. Whether any voucher posting has been done for refund of EMD
without following proper procedure.
iv. Whether any refund of lapsed deposit made during the period from
the last date of inspection to till date.
53. The initial records maintained in the Philatelic Bureau should be
examined to see that they are maintained in the manner prescribed in
the Director General P& T letter No. 31-1/65-M dated 17.06.1965 and
instructions issued by Dte from time to time with reference to the
following aspects:-
[13]
i. That individual accounts have been opened with a minimum deposit
as per rule, by MO or by cheque / Bank Draft encashable in India.
ii. That supply of first day covers etc., are made to the depositors
under registered post unless the applicant desires the item to be sent
by insured post. It should be especially examined that in no case
the supplies of 1st day covers etc., have been made on postal Service
as may be verified from the entries in the ledger at Annexure “C” of
the above mentioned DG P&T, New Delhi letter dated 17.06.1965.
iii. It should be seen whether any account has been kept operative even
though the balance of the deposit amount has fallen short of the
value of single order plus postage and packing charges, and if so, it
should be examined whether the account has been regularised either
by a fresh deposit for the required minimum amount or closing the
account, if it remains in operative for a period of three months.
iv. It should be examined whether the amount debited against the
deposit of a individual accounts towards cost of packing works out
of 1% of the total value of the items despatched on each occasion
and brought under correct GL.
v. Necessary verification of initial record should be made to see that
their value of the Philatelic items indented for the depositor is not
less than Rs.3 on each occasion.
vi. Check whether the settlement accounts are made periodically to
ensure revenue inflow in the CGA Report.
vii. Check the continuity of invoices received from Supplier of
Commemorative materials and ensure its proper inventory and sales
including Posting to correct GL on expiry of Six/twelve months
from the date of release of the material.
viii. Test check the ledger account of each PDA and ensure that there
should not be any debit balances.
[14]
54. The register of Refunds prescribed in Rule 76 of Postal Financial Hand
Book, Volume II, should be examined to see whether Postmasters are
exercising a wise discretion in sanctioning the refunds. Comments, if
any, should be included in the Inspection Report.
55. It should be seen that a Service Book or Service Roll is maintained for
every non-Gazetted Government Servant as prescribed in Supplementary
Rules 197 and 205. It should also be seen that entries of all even in the
official career of a Government Servant are duly and promptly made
therein and attested by competent authority. As Service Book is the only
document for the verification of service for Pension, adequate attention
should be paid during local Inspection to the review of Service Books.
They should be checked to the extent of 25 % including therein the
Service Books of all Government Servant who are due to retire during
the next five years. Ensure that all movements of the employee including
Annual Service Verification, Recovery of CGEIS, Availing of LTC,
Recording award of Penalty etc., are available in all digitized Service
Books. Ensure the digitized Service Book contains First Page Entries
along with the digitized signature of Head of Office.
56. The Service Book and Rolls should be inspected with reference to the
following points :-
i. That the entries on the first page are re-attested every five years.
ii. That no alteration is made in the date of Birth without the sanction
of competent authority and that Date of Birth is entered both in
words and figures.
iii. That thumb and finger impressions have been taken.
iv. That there is no break in the continuity of entries of service
recorded in the Service Book or Roll (the instances of breaks, if
any, should be noted).
[15]
v. That annual certificate of verification of service has been recorded
in Service Books and Rolls.
vi. That the increments have been correctly granted.
vii. Check whether the Service Books of officials on deputation/
Foreign Service are not maintained by the DDO and sent to PAO
for maintenance.
viii. Check the correctness of debiting of Earned Leave for
encashment of LTC subject to a maximum of sixty days.
ix. See whether the Cash Equivalent of Leave Salary paid to retired
employees is correct with reference to the Leave Account as on the
date of retirement.
57. The leave accounts should be inspected with reference to the following
points :-
i. That the accounts are posted up to date.
ii. That each entry is attested by the Head of the Office or by some
other officer in cases where the duty has been delegated to him.
iii. That the entries of leave debited in the leave account agree with
the corresponding entries in the Service Books and Service
Rolls.
iv. That in the case of leave granted to a Government Servant
whose services were lent to other Departments, the correct
allocation of leave salary has been noted in Column 13 of the
Service Book and that a subsidiary leave account indicating the
leave earned by such service and leave earned debited against it
is maintained and that the calculations are correct.
58. The leave account of the officials due to retire before the next Internal
Audit Inspection falls due should be checked thoroughly so that most of
the portions of leave account would be covered by check leaving only a
[16]
small portion relating to the period after the last Internal Audit Inspection
till the date of retirement.
59. The claims for reimbursement of tuition fees in respect of children of
Central Government Employees should be checked to see that the
Drawing Officers and Heads of Offices or the next superior officer have
exercised the necessary check over the information and documents
furnished by the employees as prescribed in the Government of India,
Ministry of Finance, Office Memorandum No12011/ 03/ 2008 Estt.
(Allowance) Dated 2nd September, 2008 and amended from time to time
and verified the admissibility of the claims for this purpose. The claims
pertaining from the date of last inspection should be checked thoroughly
by the Internal Audit Staff.
60. If the office is located in a Private Building, it should be seen by the
Inspection Party whether the amount of rent paid is fair and reasonable
and has been sanctioned by a competent authority.
61. Check whether Service Contract has been created in the system and
recurring monthly payments are happening through CSI System with
applicable statutory tax recoveries like GST etc.
62. In respect of land purchased, it should be seen that:-
i. The purpose for which the land was purchased acquired has been
fully served.
ii. That the land is being fully utilised.
63. In respect of land belonging to the Department and lying vacant it should
be ascertained that: -
[17]
i. There has been no encroachment thereof and that adequate action
has been taken to prevent encroachment vide Rule 461 of Postal
Manual, Volume II.
ii. Attempts were made by the Department to utilise the same to the
best interest of the Department and if the land is of no use, the
Department has considered desirability of disposing it off.
64. If the Postal Branch is the owning Branch of the office building and
portion of it is occupied (1) by another Branch or (2) by a Private body or
person, it should be seen by the Inspection Party whether the rent for that
portion has been correctly assessed by competent authority and reported
to the Head of the Circle for inter-branch adjustment by the Accountant
General in the case of (1) and for recovery in the case of (2). In the latter
case is should also be seen whether there recoveries are being made
regularly.
65. In cases of joint buildings of Postal and Telecom, it should be verified
that rent fixed by the joint committee along with dues (such as Rates and
Taxes including water and electricity etc.) is being recovered / adjusted
promptly.
66. In respect of residential Buildings, it should be seen whether extracts
from the Register of Buildings in the charge of the Officer-In-Charge of
the Post Office have been received from the Head of the Circle and all
such Buildings are occupied by persons for whom they are intended. It
should also be seen whether rent returns etc. are being sent according to
the prescribed rules to the officers to whom they are due and full amount
of rent is being realised in each case, and that other revenues of the
Department such as rent of vacant plots of land and buildings let out and
sale proceeds of compound product are being regularly realised and
communicated to the Accounts Office. While checking the rent returns,
[18]
it should specifically be seen that no house rent allowance is drawn in
favour of part II officials whose names do not appear in the pay bills
submitted to Accounts Office, who are in occupation of Government
accommodation.
67. In cases where Departmental Quarters have been constructed, but not
occupied by staff, their reasons should be obtained and commented.
Note: - A 10 % check should be exercised to see that the standard rent
to residential Buildings is being recalculated every five years or
whenever any additions or alterations are made to such Buildings as
required by Supplementary Rule 324.
N.B. :- While inspecting 1st and 2nd Class Post Offices located at the
Head Quarters of the office of the Superintendent for the building files
etc. from the office of the Superintendent of Post Offices and scrutinize
them along with those, if any, available in the Head Office itself. No
scrutiny need by exercised during the inspection of the 2nd Class Post
Offices, which are not situated at the Head Quarters of the
Superintendent of Post Offices.
68. It should be seen that
i. The branch wise allocation of buildings as intimated to Accounts and
indicated in the Register of Buildings is in order.
ii. The buildings intended for office use are not used for resident
purposes and vice-versa without proper authority.
iii. Residential quarters are not allowed to remain vacant without
sufficient justification.
iv. Adequate action has been taken to utilise buildings lying vacant or to
dispose them off if it is not possible to utilise them in the best
interest of the Department.
[19]
v. There has been no unauthorised occupation of the buildings
belonging to the Department.
vi. The allotment of buildings to private contractors is fully justified.
vii. The rent recoverable from them has be a correctly arrived at.
viii. Additions and alterations are not frequently made without
justification leading to dismantlement of recent additions and
alteration.
69. A test check of the state of accommodation of the Postal Officials should
be conducted. The following detailed checks in respect of rent returns
[ACG 71] should be exercised in addition to those already prescribed
during local inspection with reference to the pay bills taken from the
official it should be ensured: -
(i) That the total amount shown as recovered in each rent returns
actually been recovered either from pay bills or in cash properly
and accounted for.
(ii) That the credits are classified properly according to the owing
Branch of the buildings as indicated in the rent return.
(iii) That there is no omission to sent the rent return by the officer in
charge of the buildings to the disbursing officer.
(iv) That a rent return has been prepared in respect of every
residential building (whether owned or leased by the
Government) shown in the list of residential buildings.
(v) That the entries regarding particulars of property, authority and
rate of standard rent, etc. have been correctly shown in the
register that the emoluments shown in the rent return agree with
those shown in the pay Bills.
(vi) That the standard rent is not altered without proper sanctions.
[20]
(vii) That the necessary changes in the list of rentable property are
made from time to time as new properties are acquired or
additions and improvements are made thereto.
70. It should be seen that :-
(a) No occupant of residential quarter is in receipt of house rent
allowance.
(b) That there is no deviation from the provision of FR 45. If
there is any case not covered by FR 45-A, it should be seen
that the rent of electric, water-supply and sanitary
installation has also been recovered at the rates mentioned in
the Rule 542 of Postal Manual Volume II.
(c) That if the rent is not recovered at the rate of full standard
rent or at 10% of the emoluments of occupants as the case
may be, the reason for charging a different rate (with
authority) in the “remark column” are quoted and that such
sanction as is necessary has been received in each case.
(d) That any variation from the previous month’s return, the rate
of assessment and the authority in the remarks column for
such variation is justified.
(e) That recovery on account of Municipal and other taxes
which are not in the nature of house or property tax as also
meter hire, water consumption, electricity energy consumed
etc. has been made, (vide column 12 of the return as per
amounts indicated in column 11 of the return). It should
particularly be seen that the provisions of Rule 27 of
[21]
Appendix 13 to P&T Financial Hand Book Volume I have
been correctly observed in affecting such recoveries.
(f) That occupier’s share charge for Street lighting in P&T
Colonies has been recovered as per instructions contained in
DG P&T’s letter No. NB-26/4/56-28-69-55/NB and
28/69/65/NB dated 10.06.1960, 12.01.1961 and 27.11.1961
respectively.
(g) That the recovery on account of rent of furniture is being
affected as per Rule 543 of Postal Manual Volume II in case
of officers who are actually occupying free furnished
occupation at the time of issuing the order conveyed in DG
P&T Memo No. NB-17-1/50, dated the 25th Feb., 1953 and
who continued to enjoy, even after the issue of these order,
the option of retaining the furniture supplied to them, either
in whole or in part and in all other cases at the rate of 2% of
the capital cost of the furniture (vide DG P&T Memo No.
17/2-60-NB dated 15th June 1962).
(h) That when a building or plot has been let out to any person
not in the service of Government, full standard rent, under
FR 45-B or prevailing rent whichever is higher is recovered
in advance.
(i) That in respect of buildings shown as vacant for a
considerable period necessary re-allotment of quarters was
made to make it remunerative.
[22]
(j) That all cases of failure, short and excess recoveries are
promptly brought to the notice of the officer-in-charge of the
building by the disbursing officer for necessary action.
(k) That in case of building occupied by officers under the
jurisdiction of Postal Accounts Offices, the rents are being
recovered according to the Rules.
(l) That there are not cases of officer in occupation of out of
class accommodation through an intelligent review of the
rent return, if such cases come to notice, it should be
enquired whether the accommodation of appropriate class
could not be made available to them. For this purpose a
review should be carried out by a comparison of the
standard rent of each quarter with rent paid by the officer at
10% of emoluments.
(m) That in respect of officials on leave, details of which will be
noted in the remarks column of the rent return in pursuance
of the Director General, Posts &Telegraphs letter No. NB-
26-8/ dated the 31st December, 1956, rent is recovered when
they are in occupation of the quarters in excess of one month
allowed for free occupation vide Director General, Posts
&Telegraphs, letter No. 2/22/59-NB dated 10.12.1960.
(n) That in all cases of non-residential accommodation referred
to in Rule 535-A of Postal Manual Volume II let out to other
Departments, local bodies or private persons, the provisions
contained in the rules cited above and also Rule 502 of Posts
and Telegraph Financial Hand Book Volume I are satisfied
[23]
and six months’ rent is recovered in advance before the
quarters are handed over for occupation.
71. All cases of new assessment of rent since the previous inspection will
also have to be checked by the Internal Audit Inspection Party.
72. The Register of Rents for Residential Buildings in From ADG (71)(c)
should be verified thoroughly to see that the balances of rent, if any, are
brought forward correctly.
73. The register of buildings should be checked with a view to seeing that no
remissions on refunds have been allowed without proper authority.
74. If there are any Departmental inspection quarters attached to the Post
Office, it should be seen :-
(a) That a Register is maintained for the purpose of realisation of rent.
(b) that no quarter has been occupied by an eligible officers / officials
for more than 10days without the permission of the Postmaster
General.
(c) That a periodical verification of the stock of furniture, crockery etc.
provided in the quarters in accordance with the prescribed scale, has
been made and recorded by the Executive Officers (Postmaster
General or any other Departmental Inspecting Officer) in the Stock
Register.
75. A few entries in the register should be test checked to see whether rent
has been realised according to the prescribed rates and the credits traced
in the accounts of the Post Office.
[24]
76. In respect of grant of any immovable property made to a local authority
for public, religious or educational purposes, it should be seen that the
conditions set forth in Rule – 455 of Postal Manual Volume II are being
fulfilled.
77. The files of contracts should be scrutinised to see :-
a. That the tenderers as well as tenders are invariably invited in the
most open and public manner.
b. That sufficient earnest money is taken as security against loss
from each tender;
c. In scrutinising and acceptance of tender it should be seen :-
I. That the particulars regarding quantity and rates are furnished
and the prices stipulated are firm. Tenders relating to contracts
providing price variation clause or provisional rates should be
specially examined.
II. That there is no omission of any important clause eg.
Inspection of stores, date and place of delivery, despatch
instructions, name of consigner, etc.,
III. That it is signed by an authority which is competent to enter
into the contract. In case the signature on the order is that of
an authority who is not competent to enter into the contract, a
certificate to the effect that the purpose has been approved by
the competent authority is recorded thereon mentioning also
the designation of the authority whose approval has been
obtained.
[25]
Note :- In the copies of acceptance of tender, supply orders etc.
all the sheets containing rates, prices and other important
conditions should be signed in ink by the purchasing officer
concerned.
IV. That, if the acceptance of tender provides for payment to a
party other than the contracting firm, a power of attorney is
already registered on Book of the office.
V. The provision for the payment of sales tax, exercise duty etc.
should be checked with reference to the instructions issued by
the Government from time to time. Vogue provisions, such as,
“Sales Tax will be paid, if legally leviable” should be rate
indefinite terms whether Sales / Tax exercise duty etc. are
payable and if so at what rate and on what amounts.
d. Whether the successful tenderer has indirectly derived an
advantage over the other tenderers by the insertion of special
conditions which have the effect of raising the rate quoted by
him.
e. That sufficient reasons exist for employing the same contractor
in the majority of the cases, if there is any such contractor,
f. That contracts are executed on standard forms applicable to
each case, they may , however, be modified to suit local
requirements after consultation with the legal advisers of the
Government and the Director General,
[26]
g. That no contracts containing any unusual condition have been
entered into without the previous consent of the Ministry of
Finance (Communications). It should also be seen that the no
material variation in contracts once entered into has been made
without the previous consent of the authority competent to
enter into the contract as to varied;
h. That security has been taken from all contractors and
contractors lodging Government Securities have executed
agreements in Form Section 24.
i. That in the case of contracts for conveyance of mails
amounting less than the prescribed amount, the conditions and
stipulations laid down in the agreements are being observed
and payments made on due observance of the conditions;
j. Whether, as so far as can be ascertained from the purchase
files, demands of other indenting officers received at the time
have been bulked together as far as possible to secure the
advantage of bulk supply rates, etc., and if so, whether the total
quantity in respect of all the individual contracts issued against
the bulked indents does not exceed and quantity of bulked
indents;
k. Whether purchase has been effected by single tender or
negotiation, if so, whether sanction of the Competent Authority
has been obtained and reasons recorded for resorting to this
method of purpose;
l. (i) whether all tenders were opened on the due date, and
numbered and initialled with date by the officer opening them;
[27]
(ii) Whether the Comparative Statement is on record and has
been checked with original tenders;
m. Whether any delayed / late tender has been incorporated in
Comparative Statement and considered, and whether orders of
the Competent Authority have been obtained to the
consideration and acceptance of these tenders;
n. Whether the contract has been placed on a Registered firm and,
if not, it should be examined whether it is with or without
security and whether sanction of the Competent Authority has
been obtained;
o. Whether the rates accepted have changed in any case after the
conclusion of the contract and if so, whether the change in
price has whether the reasons, justifying such changes are
adequate;
p. Whether any supplementary contract has been negotiated for
payment authorised for any additional service required of the
contractor subsequent to the placing of the acceptances of
tenders and, if so the action taken should be examined with
regard to propriety and competency.
q. Extract the list of all Registered Customers wherein contract is
created in the system and check the correctness of Sales and
correct realisation of Accounts Receivable including
correctness of Customer Ledger and overdue open items.
r. Extract the list of Registered Vendors wherein is contract is
created in the system and check the correctness Procurement
[28]
of Goods and Services and correct payment of Accounts
Payable including correctness of Vendor Ledger and overdue
open items.
78. In respect of Contingent Charges, Generate Expense Report for a period /
days and check the correctness in accordance with Rule Rules 354 to 356
of Postal Financial Hand Book Volume I. The classification of GL for
each expense be verified and any wrong classification, if found be
corrected, separating from charges relating to Works Expenditure.
79. The classification of certain charges shown in the Contingent Register
should be compared and necessary instructions given to the staff on the
spot if instances of wrong classification are found.
80.
(i) It should be seen that charges for water and electric current
consumed are regularly recovered monthly from the non-gazetted
officials of the Postal Department whose pay as defined in FR 9(21) in
respect of buildings occupied by them free of rent.
(ii) In all cases other than those falling under clause (I) above it should
be seen that all municipal (including personal) taxes and other taxes,
not being in the nature of house or property taxes, payable by the
government or by the tenant in respect of the resident or
accommodation occupied by Government Officials or private persons
bodies are recovered regularly monthly from the occupants.
81. It should be seen that the Register of Treasury transactions maintained by
the Postmaster himself and posting of scrolls is done up to date and list of
unlinked items is prepared in the system.
[29]
82. It should be seen :-
a. That a register of Cheque Books is maintained in the system are
correct in the system with reference to the actual Stock on Hand.
(vide Rule 172, Posts and Telegraph Financial Hand Book Volume
I).
b. That the Blank Cheque Books are kept under lock and key in the
custody of the postmaster. The stock should be verified by actual
count;
c. That the certificate of count of cheques is signed by the Postmaster
on receipt of each Cheque Book (Rule 172, Posts and Telegraph
Financial Hand Book Volume I).
d. That the counterfoils of cheques are initialled by the Postmaster if
any correctly or alteration is noticed therein, and if any doubt arises,
a thorough investigation should be made;
e. That the counterfoils of used up cheque books are preserved for
three years and then destroyed;
f. That there are no Cheque Books in the Post Office, which have
been partly used and are not likely to be used in future. All such
Cheque Books should be returned to the Issuing Officer .
g. That the provisions of Notes 1 & 2 below Rule 128 of Posts and
Telegraph Financial Hand Book Volume I are strictly followed and
that the original copy of the Memo of remittances by Cheque [Form
ACG 11(a)] or in the case of cheques on local clearing Banks, on
copy of the list [Form ACG 11(b)] along with one copy of the
[30]
Challan is duly received from the Bank / Treasury Officer signed
and receipted in token of acknowledgement of the money
represented by each cheque.
h. Whether the serial numbers of Sub Office Memo for drawing from
or remittances to treasuries or Sub Treasuries in From No. ACG –
13 and 14 respectively kept in the Head office run in a consecutive
series, and in cases where there are gaps due to cancellation, the
original and duplicate copies or 3 copies where forms are printed in
quadruplicate i.e. for transactions in respect of cheques of the
cancelled memos are on record in the Head Office – Checks and
balances for SO transactions be carried out by CDDO and maintain
records as in the system.
i. That separate register in Form AGPT-506 in Annexure I and II to
the Director General, P& T letter No. 27-1/61-CI/B dated 19th
September, 1964 in respect of each Bank, for noting the daily
transactions of drawls / remittances from / to Banks are maintained
properly. The monthly total of the money column i.e. Column 4
under “Remittances to Bank” and “Drawing from Bank” should be
checked and the totals agreed with the corresponding amount
incorporated in the Cash Book and the relevant schedules of the
month concerned. Ensure that the amount as in the Register of
Cheques for Drawings and Remittances are daily tallied with the
figures as in Drawn from Clearing GL and Remittance to Bank
Clearing GL. Ensure once reconciliation is done that the Drawn
from Bank Clearing Account and the Remittance to Bank Clearing
Account are debited and Credited respectively with Drawn from
Bank GL and Remittance to Bank GL.
[31]
j. That the daily scrolls received on the daily basis from Banks are
properly checked and filed, the unadjusted items are correctly
extracted and agreed, the statement in Annexure III to the Director
General, P& T letter No. 27-2/CT/B dated the 19th September, 1964
is sent to the Accounts Office and the abstracts duly verified by the
Accounts Office are received and kept on record. For this purpose
the copy received and retained in Accounts Office should be
furnished to Inspection Party.
k. That the pairing of schedules done with the Bank Scrolls and the
Bank Scrolls for each unit are tagged date wise and separately for
each Branch of the Bank for that unit.
l. That the entries in the foils of paid cheques brought from the
Accounts Office agree with the corresponding entries in the
counterfoils, Cash Book and Vouchers were available. The
endorsements and acknowledgement of the payees on cheques
should be examined intelligently wherever possible to see as to
whether they give rise to any suspicion of fraudulent payment.
Note: 1. The checks indicated in this clause should be exercised for
at least 10 percent of the paid cheques of the selected month.
m. The checks indicated in clauses (g) & (h) should be exercised for a
month of test check that other checks being exercised in a general
way for the entire period since the last Internal Audit Inspection
83. The items which remain unlinked or the discrepancy which came to
notice in Central Check linking the remittance transactions between the
Post Offices and the Bank / Treasury should be investigated. For this
purpose, the Central Check should supply to inspecting Parties a
complete list of discrepant and unlinked items with full particulars.
[32]
84. Some of the fortnightly Bills issued by the Post Office for realisation of
the amounts due on articles posted without pre-payment should be test
checked as to their correctness with reference to the office copies of the
invoices of the articles posted, retained in the Post Offices. It should also
be seen that cases of delay, if any, in the payment of the Bills have been
reported promptly to the Postmaster General. For this purpose, the Bills
relating to the month of test check and also those of any other month
selected by the Heads of Postal Accounts may be examined.
85. The relevant files in the Post Offices relating to Registered Newspapers
licensed for posting without pre-payment should also be examined to see
that where the renewal of both the registration and the licence was not
executed in time, the concession of posting the Newspapers without pre-
payment was not allowed during the period of registration and or licence
was not in force.
86. It may be ensured that the Register of Customers who are posting
Newspapers without pre-payment are renewed their license and there
should not be any postings without any renewal.
87.
a. The register of persons holding window delivery tickets should be
examined to see whether the fees have been realised in advance at
the prescribed rate and properly accounted for, the credits being
traced in the schedule of unclassified receipts.
b. It should be seen whether in any case the period up to which a ticket
was valid, has been exceeded and if so, what action has been taken.
It should also be seen that no refund has been allowed in any case.
c. See whether the prescribed fees for Window Delivery ticket has
been collected and credit has been made in the correct GL.
[33]
88. The following checks should be exercised in respect of collection of
Postage Revenue through Franking Machines,
a. Check all the franking machine holders list to ensure that the
license is valid and within five years of license date using
franking operations module in CSI.
b. Review the Register of Meter readings and see that the
difference between the opening balance and the closing balance
for the day is credited in the Daily Transaction Report after
settlement.
c. Ensure that the SOM capture is done on day to day basis for
accountable and un accountable articles.
d. Check the rebate is being paid correctly and is being processed
through the System module and not by voucher posting.
e. Check all the open items for settlement and comment for the
lapses if any of items pending for a long time.
f. Check for any duplicate of RV document and address such
issues for rectification.
g. Check the ledger of each RFMS license holder to ensure that the
closing balance tallies with the closing balance for the day as in
the SOM list.
h. Ensure that the rebate paid is correct with booking under soft
copy and without soft copy.
i. Check the refunds for in correct franking is done through the
system and 5% deduction made on refunds.
j. Check the periodicity of connecting the machine with server on
periodic/daily basis and point out the lapse if any.
k. Check the correctness of refunds against cancellation of RFMS
facility to a license holder.
l. Check all the accounting entries and revenue is flown to CGA
report in case of both accountable and ordinary articles.
[34]
m. Check whether surcharge is collected in case the renewal is
done after expiry of five years.
n. Check the ledger of license holder using fd10n t-code and
ensure that there are no debit balances at any point of time.
o. Check the sanctions issued by Divisional head for refunds and
cancellation and link it with payment GLs and accounting
entries.
p. Check any reversal made in the recharge document for wrong
recharge if any and how such reversals behaved in the system.
q. The above checks may be done for both private and
departmental franking machines.
Note :1. The above checks may be exercised in respect of transactions
of three days in the month of test check and for 3 days immediately
before commencement of the inspection. However, the review of the
Meter Register should be conducted for the entire month selected for
test check.
2. See that a separate special error book is maintained to paste the
impressions of such mis-franked postage for which no credit is
afforded.
3. The following checks may be exercised in respect of the
Franking Machines fixed in the customer’s premises.
i. That the Franking Machine is duly licensed and posting
is done only in the specified Post Offices.
ii. It should also be seen that special error book is
maintained.
89. Check the inventory of all saleable publications in the MM module and
check the following:
i. Check the accuracy of accounting documents from requisition stage
to payment document as the case may be.
[35]
ii. Check for any obsolete items and suggest any remedial action for its
removal from the main stock.
iii. Check the flow of revenue in the accounting document and up to the
stage of CGA report and comment on omissions if any.
iv. Check on the offset of cost of purchase and revenue separately such
that the cost is not figured as revenue.
Note: 1. The above checks may be exercised in respect of transactions of
one week in the month of test check and for 3 days immediately before
commencement of the inspection.
v. It should be seen that rates mentioned in the invoice are current rates
and same has been realised while selling to public. The corresponding
credits should be checked in treasurer cash book and HO daily
transaction report, GL reports concerned etc. for the test check
months.
90. Wherever the Department has to raise Bills for Service Charges/
Commission Charges from the various Customers for the Business done
by the DOP like e-Payment/ e-Biller etc.,, it may be ensured that the
Nodal Office has raised the Bills for realisation of revenue and such
revenue has been got credited to the Government Accounts (Collection of
Electricity Bills for which the Service charges is receivable against the
bills raised by the DOP.)
91. It should be seen: -
a) That all miscellaneous receipts are issued and collected in the POS for
various kinds of transactions and its mapping of GL is correct.
b) Wherever manual receipts are used, they are in the safe custody of the
Head of the Office and stock are in commensurate with the
requirements.
c) That counterfoils are available for the prescribed periodicity of
preservation period as prescribed.
[36]
d) Stock of Receipt Books should be physically counted and see the same
agrees as per Stock Register.
e) Check on the receipt through system in case of insured articles and
uninsured registered parcels etc. Including VP articles
92. It should be seen that important books and Registers as may be notified
by the Director General from time to time are periodically reviewed by
the Head of the Office.
93. The procedure of work in the Post Office should be generally reviewed
with a view to seeing whether any suggestions can be made for reducing
work that is superfluous or simplifying the procedure regarding any
particular work.
94. It should be ascertained whether any officials other than the Postmaster-
in-Charge reside in the office premises and, if so, whether any rent is
being recovered and how it has been assessed. The Electric / Water
charges are also to be recoverable at the prescribed rates where no
separate meter has been provided.
95. If there is any Departmental Car, Lorry or Boat, the Log Book and Petrol
Account should be examined.
Ceiling fixed for the consumption of diesel / petrol should be seen. If
excess consumption found, reasons should be obtained, examined and
commented.
N.B.: - The monthly closing entries in the Log Book and the recoveries
made for non-duty journey performed should be test checked.
96. Record of sanction to expenditure to an aggregate annual limit should be
examined to see that the annual limit has not been exceeded during any
year Rule 348, Posts and Telegraph Financial Hand Book Volume I.
[37]
N.B.: - In order to have better budgetary control in the Divisional
Office and it should be seen that the monthly expenditure under each
head is not exceeded with reference to the allotted budget for a DDO
using Budcon report in the system. Ceiling items should specially be
examined so as to see the overall expenditure is kept within the ceiling
fixed.
97. The following records should also be examined generally: -
a. History sheet of all goods having the nature of asset and also
stackable items.
b. Check the annual verification of furniture and physical verification
report conducted once a year by the Head of the Office and any
variation if any.
98.
a. The annual statement showing losses of Government property
received in the Accounts Office (vide Rule 269-C of the Postal
Manual, Volume II) to see if they have been correctly prepared with
reference to the deduction entries (other than those of issues) made
in the inventory under the several headings shown in Rule 11 of
Appendix 12 to the Postal Manual, Volume II, together with full
particulars of the articles and the reason for removing them from
stock.
b. It should be seen that: -
(i) All articles of stock purchases or received have been accounted
for in the Stock Registers in the CSI system.
(ii) The quantity is correct;
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(iii) Price charges are reasonable and suitable, notes of payment
have been made on indents or orders; and
99. Unserviceable articles have been written in the Stock Register and have
been sold under the sanction of the competent authority. The sale
proceeds should be compared with credits afforded in the accounts and it
should be seen that proper records of sale are preserved. It should also be
seen whether stock is verified periodically by an independent officer.
100. Check that the money orders issued are credited to the respective GLs
and commission is correctly configured in the system and service money
orders are issued for a genuine reason with the approval of the head of
the office.
a. Check that Money orders are issued only after realisation of cheque
in case of booking of e-MO by Cheque.
b. In case of registered bulk customers, check the ledger and ensure
there is no debit balance against any individual bulk customer.
c. Check the unpaid money orders list for a office against receipts and
ensure that such money orders are not kept unduly for a long time
without returning to the sender.
d. Ensure that the MO vouchers are available for each payment of MO
for the test check month as marked by the Head of Postal Accounts
Office.
e. In case of bulk money order customer ensure that the return to
sender- money orders are processed through the system only and
payment action done through system process as designed in the CSI
and payment is matching with the actual amount as in the system
generated liability document and it is credited to the correct bulk
customer.
[39]
f. Ensure that the unpaid money orders over a period of three calendar
years are transferred to revenue as forfeited Money orders at the end
of the respective third financial year.
g. Ensure that the Void e-MOs are not paid without the release of PAO
and they are not in the custody of Postmaster. Ensure the unpaid
money order printed copy is sent to PAO for preservation and
release when requisitioned by Postmaster.
h. Ensure that there are no balances in the Postman issue GL and it is
zero at the end of each day.
i. Ensure that the VPP clearing GL is also cleared at the end of day
and residual balance left at the end of each day.
j. Check the open items and comment on the functionality of open
item management GL as MO GL is built under the functionality of
open item management. Check the open items as the MO GL is
configured as open item GL and system should reconcile debit
against corresponding credit.
Note: - It will be sufficient if the test check is applied for a week
for the period of marked month by Head of Postal Accounts Office,
wherever applicable in case of all above points.
101. It should be seen that no void Money Order is kept in deposit in the Post
Office after the period allowed under Rules of Postal Manual Volume VI
(Part II).
102. It should be seen whether the entries in the journals of value payable
articles are regularly disposed of by note of value payable Money Orders
received, and in case of delay, whether calls have been issued on due
dates as required under Rule of Postal Manual Volume VI (Part II).
103. Ensure that all VPP articles are booked and the liability for a day is
cleared and liability exists and carried forward.
[40]
104. It should be investigated whether it was ever found necessary to stop
issue or payment of a value payable Money Order on account of fraud or
similar course. If so, particulars may be noted.
105. Check the correctness of movement of IPO stock from plant to plant and
plant to storage location and ensure that the inventory of IPOs in the MM
module. Ensure that the sale value along with commission is accounted
in the accounts correctly matching with the depletion of stock in the
stock register according to sales.
106. Ensure that the unpaid IPOs over a period of three calendar years are
transferred to revenue as forfeited IPOs at the end of the respective third
financial year.
107. Check the open items as the IPO GL is configured as open item GL and
system should reconcile debit against corresponding credit.
108. Check the NSC/KVP/IVP etc. discharged accounting entries for the
marked dates and ensure the corresponding credits in the original
application and migrated record in the CBS system. In case non migrated
certificates, any certificates discharged through voucher posting has to be
checked cent percent and corresponding credit is verified. Check the
correctness of amount as charged in the system with reference to the
original hard copy of certificate brought from PAO. This check has to be
done for one week during the marked month.
109. It may be ensured that no employee who entered in the Government
Service on 01.01.2004 and after whichever is earlier, subscribing the
GPF.
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a. It should be seen that report in respect of new entrant, is sent to
PAO concerned.
b. It may also be ensured that every new entrant have 16 digits PRAN
No.
c. It may also be ensured that 10% of BP+DA is deducted as employee
contribution and 14% of BP + DA is drawn by the Govt. by
charging it to service head 3201 and credit to employee’s
contribution head of Accounts as per codified procedure in the HR
pay sub module of CSI.
d. Check the accounting entries and correctness of GL both in case of
Departmental and GDS for SDBS.
e. Check the correctness of NPS/SDBS as in the HR schedule and
F&A CSI figures for a DDO and check if there is any variation.
Variation if any be brought to the notice of the DDO for avoiding
mistakes in future.
f. Check the correctness of credit of SDBS by Government at Rs.300
per mensum provided he works for the entire month as codified.
110. Check for the UP items brought from PAO and ensure its settlement.
111. Check the correctness of minimum GPF subscription with reference to
the pay as on the 31st march of previous year.
112. Check whether employee GPF advance payments and GPF withdrawals
are through ESS and no voucher payments are resorted.
113. Check the GPF ledger accounts of few employees selected at random and
ensure credit and debits are flown to the ledger accurately and quarterly
interest rates applied and interest credit is correct.
[42]
114. Check the GPF HR schedule figure with that of F&A figure and for any
variation, the reasons be found and brought to the notice of DDO so that
such mistakes do not recur in future.
115. Check the GPF transfer in and transfer out cases in the HR and ensure
correctness of entries and balances.
116. Check for the cases of GPF insurance linked claim cases and GL for
which such payment charged.
117. Check for the GPF minus balance case if any and cause rectification of
such minus balance on priority basis along with interest on irregular
withdrawals if any.
118. The entries in the register of Security Bonds should be checked with the
bonds on record. It should be seen that no person who has not furnished
security or who has not been exempted from furnishing security is
employed in the Post Office.
Note: - This check should be exercised with reference to copies of all
the bills paid in the month previous to the month in which inspection is
conducted.
(b) In the case of official transferred from other Head Offices it should be
seen that certificates to the effect that the security bonds of such officials
are on record in those Head Offices are on file.
(c) In the case of security bonds furnished by Private Insurance Companies
it should be seen that the premia have been regularly paid and the bonds
kept current and valid.
119. As regards security deposits the following points should be examined.
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1. It should be seen whether the Departmental Officers who are
required to furnish security under the Rules in Chapter V of the
Postal Manual Volume II, have given security, and if so, to what
extent in vide Rule 103 and 194 ibid. In the case of securities
given by means of personal bonds, it should be seen whether the
Postmaster has obtained each year in the month of April from all
such persons employed in his jurisdiction a certificate to the effect
that the sureties are alive and solvent and that the certificate is filed
with the respective security bonds. The registers and other records
should be inspected to see if they are kept properly.
2. In cash securities the following points should be seen: -
a. Whether in case of employees who have not completed the
payment of their deposits, necessary recoveries are being made
regularly.
b. Whether all cash security deposits of employees are paid in to
Post Office Savings Bank in the name of the pledger.
c. Whether entries of interest are made in Savings Bank
Passbooks every year.
d. Whether the Savings Bank Passbooks have been hypothecated
to the Department and
e. Whether the amounts shown in the statement prescribed in
Rule 455 of the P& T Financial Hand Book Volume I (2nd
Edition) as having been deposited in the Savings Bank Agree
with the acknowledgements in the Passbooks.
120. In respect of Cable TV Network, it should be seen that
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a. Whether the amount of prescribed fee for registration has been
deposited and correctly accounted for in the respective GLs.
b. Whether register to note the particulars of registration has been
maintained properly.
c. Registration is valid for 12 months. It is to be checked
whether it has been renewed thereafter. Class on non-renewal
may be noted.
d. Whether returns pertaining to each month have been sent to
circle office who in turn consolidate the same and submit to
Directorate (PO Branch) by 5th of following month.
e. Whether there had been any extra expenditure in the shape of
deployment of extra staff or grant of OTA or any other for
running this scheme furnishes details.
f. Whether prescribed register for keeping watch on registration /
due amount realised is being maintained.
121. In respect of Computers and other electronic Gadgets,
i. Check all the electronic items /gadgets etc. have been
purchased through GeM /e- procurement wherever applicable
and processed through MM module of CSI SAP and proper
asset is created in the asset account Module.
ii. Check whether all items have processed in the system
whenever the value is less than the limit as prescribed in GFR
2017 and inventory is maintained.
iii. Check the correctness of Input Tax credit availed on assets
/materials/ Goods etc. and proper accounting and procurement
[45]
records are kept in safe custody for GST auditing by respective
GST authorities.
iv. Check whether items have been condemned after following
due procedure as codified in the GFR 2017 and they have been
disposed as condemned items as per GFR 2017.
v. Check the proper administrative and expenditure sanction with
the concurrence of CIFA/RIFA as the case may be are
available for procurements of all high tech goods/materials
vi. Check the process of awarding of AMC either with OEM or
any other vendor after following due procedure of GFR 2017.
Ensure that no charges have been incurred on AMC which is
comprehensive including spare parts. Check all the
agreements/contracts and ensure that they are current and in
force.
vii. Ensure that all maintenance contracts which are approved are
created in the CSI system under MM module of SAP CSI and
recurring payments are being effected through the MM
module.
viii. Check the electronic items which have been issued to the staff
as per codified rules are processed through MM/Inventory
module and stock is verified physically by the designated
officer annually.
ix. Whether the performance review of the machines have been
carried out by the controlling officer. Whether follow up action
is taken up on the remarks of the controlling authority.
x. Whether user ID and password policy are maintained strictly in
overall office computer network.
xi. Check for the standard backup system exits wherever
standalone software exists beyond CSI/CBS/McCamish etc.
xii. Essential steps have been taken to guard the data base and
server to authorised persons or not wherever applicable
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122. MISCELLANEOUS:
i. The reasons for non-submission / habitual late submission of
account return etc. to Accounts Office should be investigated to
ensure that they do not hide defects of frauds. For this purpose,
Accounts Office should furnish a list showing the over-due
accounts Journals, Schedules and vouchers not received in
Accounts Office. The documents which are generally received last
should be shown in a separate part of the list.
ii. All minor irregularities should be rectified on the spot.
iii. It should be seen that all advertisements displayed in the Posts
buildings are covered by active contracts, copies of which are on
file with Postmaster. Whether the amount due on account of
advertisements / hoardings has been realised or not.
iv. The General state of the accounts of the Post Office should be
reviewed and commented upon.
v. Any cases of fraud or suspected fraud should be investigated
thoroughly and report made immediately to the Chief Postmaster
General and the Head of Postal Accounts Office separately.
vi. In case any important records are not forthcoming during the
inspection, Postmasters should be asked to send them on to the
Accounts Office for check and their receipt in the Accounts Office
watched
123. HR Related and others:
HR Module
a. Check the Pay roll master data for Departmental employees, GDS,
Pensioners. Ensure that mapping of cost centre, organisation key etc. are
correct. Check whether PAN number has been updated for all employees.
b. Check the pay sheet for Departmental employees, GDS and Pensioners in
respect of each HO. Ensure that same employees are appearing in the
master data also. The employee details in master data and pay sheet should
[47]
tally. Compare pay sheets of two three months consecutively to ensure
that there is no abnormal increase or decrease in salary.
c. Check off-cycle payments for the test check month. Download the report
from HR module and tally with the vouchers. It should be ensured that no
voucher postings should be done for off-cycle payments, data of off cycle
payments available in the system.
d. Check the recovery schedules downloaded from HR module and ensure
that the same are reflected in Trial balance correctly.
e. Download pension pay sheet from HR module and check with pension
files available in the HOs.
f. Check whether all the out of account payments (Professional
tax/LIC/Union Sub/Society etc.) is tallied (Credit should be equal to debit)
g. Ensure that all are using ESS portal for applying leave, personal claims
etc. h. Check the Sanctioned post and working strength in CSI.
124. Finance and Acounts: F&A
a. Check whether POS cash balance is zero for all the dates in the test check
month. Along with above verification data from SAP F&A may be
extracted up to subtotal to verify the classification of payments mode
b. Check whether all the cash in transit transactions are cleared in F&A, i.e,
amount remitted from one unit is acknowledged by other unit.
c. Check the bookings made in ‘Misc Suspense’ account for its authenticity,
correctness and its booking under correct head.
d. Check custom duty GL account and ensure that Postal fee is booked
separately in CSI.
e. Check in the system for WUMT and ensure that all the payments above
Rs.50000 are made through cheque or SB credit (GL code 8878100600).
f. Ensure that GST payments are booked in correct GL accounts.
[48]
g. Ensure that no voucher postings are made for SB transactions post GL
Integration i,e. 16.09.2019, date from when Finacle was integrated with
CSI. Check the error book entries in r/o transactions done outside Finacle
due to non-migration of accounts/certificates to CBS is being made after
getting approval, as these transactions will not be extracted in GL. Verify
the manual voucher posting for CBS transactions in the system.
h. Compare IPPB Daily transaction report with CSI data and ensure the same
is tallied for the test check month. It should be ensured that no cash
transactions should be done on Sundays and holidays. It should be ensured
that SO/HO is downloading daily cash transaction report of BOs and
ensure that the same is accounted in CSI.
i. Ensure that all defrauded amount credited by individuals and also amount
paid to the depositors on restoration of the amount to their accounts have
been booked correctly in the system.
j. Check HO, SO, BO cash balances for the test check month and ensure that
the cash balance is within the authorised limits. It should be ensured that
HO is monitoring the cash balances of SOs and BOs regularly
k. Download the report from McCamish and ensure the same is booked
correctly in CSI. Ensure that the GST components are booked correctly for
first year and subsequent year separately. It should be ensured that in
charge CPC is monitoring the PLI transactions of its SOs and BOs
regularly.
l. Ensure that Aadhar updation fee is accounted through POS module only.
No voucher posting should be done for this.
m. All the ATM cash loading transactions should be tallied with the receipt
given by the cash loading vendor M/s AGS
n. Ensure that no correction in OB has been done for Stamp balances.
o. Check all voucher postings for the test check month by going to TCB
Report in CSI date wise and ensure that the same are booked in correct GL
account.
[49]
p. Check all the reversal transactions done at HO in TCB Report. Verify all
the reversed transactions are taken to correct GL subsequently.
q. Ensure that the BOs are performing transactions through RICT devices
only.
r. Ensure that HOs are sending all the vouchers duly agreed, to DAP office
and the practice of sending meghdhoot schedule with vouchers is to be
discontinued.
125. Budget Module
Check the budget consumption report from Budget module and tally with
the vouchers/bills by generating report and also see that the expenditure
not exceeded the allotment.
126. Bank Reconciliation
Check whether bank reconciliation is being done in the system. Check
whether reconciliation work in r/o Drawn from Bank and Remittance to
Bank is being done with reference to the daily scrolls received and extract
of BRS generated in CSI is being sent to PAO. Every HO should obtain
online view rights of bank scrolls from respective bank without fail.
1. Implementation of CTS process of cheque realization.
Check whether CTS process of cheque realization is being implemented
i.e., the procedure of sending scanned image of the cheque to the nodal
office through CTS machine.
2. GST a) Check whether payment of GST is being made on monthly basis
through electronically generated challan from GSTIN common
portal and the returns is being filed on due dates.
b) Whether eligible ITC is being claimed and reasons for not claiming
ITC to be checked.
[50]
c) Check whether GST figures in r/o all categories are being booked in
CSI in correct GL accounts.
d) Check Whether the CGST/SGST collected on PLI /RPLI in pay
recovery is being properly accounted.
e) Action taken in r/o ITC available under GSTR 2A may be called
for.
127. Accounting of NEFT/RTGS Transactions
Check whether the payment received through NEFT/ RTGS in r/o BNPL/PLI
Bulk booking etc. is being accounted properly.
128. GEM Portal
a) Check whether all the procurement of Goods and services are mandatorily
made through GeM for goods and services available in Gem and reason
for not procuring through GeM, Non availability etc. are recorded in the
file.
i) Up to 25000/- eligible for direct purchase
ii) Above 25000/- up to 5 lakhs through comparison of three
OEMs
iii) Above 5 lakhs – through Bid/RA
b) Whether the procurement authority must place on record in precise terms,
the consideration which weighed with it, while taking the procurement
decision.
c) Whether the sanctioning authority is competent to incur expenditure
d) Check whether liquidated damages are being charged @0.5% per week or
part of the week of delayed period not exceeding 5% of the contract
value, if the seller fails to deliver the goods/services in time.
[51]
129. SDBS
a) Check whether all GDS appointed on regular basis on completion of
one year are enrolled in SDBS and recovery is being made correctly.
And also check whether the application for PRAN is being processed in
time.
130. ESS Portal
Check whether all the personal claims (TA/LTC/GPF/Advances etc.) in
r/o employees are being processed through ESS portal.
131. PLI CPC
In the Decentralised Scenario, separate inspection may be carried out at
PLI CPC/DO like ICO(SB).
i. Check billing and day end collection report from Mc Camish and
compare the GL posting in SAP F&A and ensure that there are no
variations between these two set of figures and CGA GL mapping is
correct in all cases. This should be done for a week in relation to
marked month of check.
ii. Check the day end disbursement detail report of Mc Camish and
compare the figures with SAP F&A and ensure that there are no
variations between two set of figures and CGA GL mapping is correct
in all cases. This should be done for a week in relation to marked month
of check.
iii. Check the day end indexing report relating to loan, surrender. Maturity,
new proposals etc. and all such cases are properly dealt and processed
in accordance with PLI/RPLI Rules. This activity has to be done for a
week in relation to marked month of check.
iv. Check the correctness of accounting of cheques and its realisation for
transactions relating to PLI / RPLI. Ensure that the clearance of all
these cheques were properly accounted in the respective GL Heads and
accounting of dishonoured cheques. The realisation of penalty for
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dishonoured cheques be traced. This has to be done for the test check
month as a whole
132. ATM
Separate inspection may be carried out at National ATM Unit and ATM
Nodal offices for which the questionnaire is devised .Refer chapter-XV.
133. WUMT transactions.
(i) Whether the payment for more than 50,000 has been paid by cheque
proper record of “To Receive Money” form is maintained serially and
numbered and voucher posting is done on the day of transaction itself
to the correct GL.
(ii) Ensure that the voucher posting is done in the system with reference
to each voucher separately as a line item and ensure the insertion of
MTCN number in the reference assignment while posting f-02.
(iii) Whether “Register of International Money Transfer” is maintained
properly as prescribed vide Directorate Letter No. 95-21/99-SB dated
12.04.2001 and kept under the safe custody of Postmaster while there
are no transactions. Also it may be seen that the amount entered in
Column 6 of the register is tallied with the counterfoil of cheque / pay
order and in the figures shown by return sent to Postal Accounts
Office. This check may be exercised for the test check also.
(iv) Whether the advice receipt from SBI and credit confirmed by the RBI,
the amount is shown under Remittance to Bank in Head Office
Summary and Cash Book with a contra credit in receipt side under the
nomenclature “Payment received for Western Union Money Transfer”
is Sansad Marg Head Office and the Principal, Commission of gain in
foreign exchange as intimated by CSC. [For PAO Delhi].
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(v) Whether the daily advice for all the money received from Western
Union is received by Postmaster Sansad Marg Head Office from SBI.
[ For Director of Accounts (Postal) Delhi]
(vi) Whether the Customer Service Centre has furnished a consolidated
daily schedule to the Postmaster Sansad Marg Head Office. [ For
Director of Accounts (Postal) Delhi]
(vii) Whether the daily reconciliation has been done by the Sansad Marg
Head Office with reference to consolidated daily schedule of CSC
(customer service centre) and daily advice of credit received from
SBI. [For Director of Accounts (Postal) Delhi]
(viii) Whether fortnight returns are submitted to concerned Director / Dy.
Director of Accounts (Postal) on time properly.
(ix) Whether the nominated Head Offices are receiving a consolidated list
of daily transaction from the customer service centre and proper
reconciliation is being made. Discrepancy, if any daily reported to
CSC within 15 days.
(x) Whether the discrepancies pointed out by Head Offices are being
reconciled by CSC [ For Director of Accounts (Postal) Delhi].
(xi) It may be seen as to whether any double payment / wrong payment /
fraudulent payment has been made. If so, how it is settled.
(xii) It may be seen that under no circumstances the money paid to the
messenger / agent.
[54]
(xiii) It may be seen that the payment of Advertisement expenses does not
go beyond 10% of the commission earned by the Department from
WUFSI. [ For Director of Accounts (Postal) Delhi]
(xiv) Check the corresponding entries with reference to the hard copy of
WUMT vouchers brought from PAO for the marked month and any
variation if any be brought out in the special report.
134. BUSINESS DEVELOPMENT and related products.
i. Extract all the registered customers under BNPL/Advance customers/
RFMS etc. in the system and check whether the invoice is generated
on due dates and proper accounting documents have been flown to the
F&A on respective posting dates.
ii. Check the GL of postings done on issue of Invoice in case of
BNPL/Advance customers etc. and confirm the correctness.
iii. Check whether all the registered customers have paid the dues on due
dates and proper accounting of incoming payments is processed in the
system in case of BNPL customers.
iv. Check whether all the revenue once settlement is done have been flow
to CGA report and correctly hit the Correct GL.
v. Check whether all incoming payments done through CDDO bank
account directly are processed and accounted for in the system.
vi. Check whether settlement account has been done in the system in case
BNPL advance customers.
vii. Check the correctness of Discount structure allowed in case of
registered customers as per the rulings of Business Development
Directorate.
viii. Check the ledger accounts of all registered customers and ensure the
correctness.
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ix. Check all the open items and ensure whether dunning process done
through the system in the system and penal interest is charged along
with GST.
135. GST related questionnaire:
i. Check whether GSTR1 is being filed within due date every month.
ii. Check the GST payment is made with reference to actual receipts
of GST either in cash /cheque and not with reference to figures as
in fagll03.
iii. Check whether any ITC is being availed and calculation correct and
proper records are being maintained and kept in safe custody.
iv. Whether GSTR2 is being filed by DO on due dates.
v. Check whether ITC credit availed is properly accounted for in the
books of account.
vi. Check whether GSTR3 is being filed within due date for each
month.
vii. Ensure that DDO has paid the dues of GST in case of BNPL
services provided the registered customer has not paid the dues in
time.
viii. Check the correctness of application of SGST/CGST/IGST/UGST
correctly based on the place of supply of services.
ix. Check whether register of TDS on GST maintained and ensure
there should not be any recovery in case of services rendered by
DOP.
x. Check whether GSTR7 is being filed within due date.
xi. The check on GST is for the period from last date of IA to
thepresent span of IA
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136. Banking Management and Reconciliation:
i. Check the adequacy of banking arrangement available in the
jurisdiction of CDDO and identify which bank accounts already
maintained are not operating 0 drawing and remittance account.
ii. Check whether CDDO is maintaining any Current Account and it
has the approval of Postal Directorate.
iii. Check whether the CDDO is in receipt of daily scrolls from the
dealing bank and making reconciliation in the CSI system and
sending a copy of Bank reconciliation statement.
iv. Obtain Hard copy of certified Bank statement from the dealing
bank and make corresponding checks with the entries in the F&A
CSI SAP and confirm the correctness for the month of check as
marked by the Head of Postal accounts Office.
v. Check the current Account transactions wherever approved and
correctness of it with reference to the normal CDDO bank
account sweeping transactions.
vi. Check the adequacy of effort being made by the CDDO to obtain
scrolls and bank Reconciliation work and comment on it.
vii. Check whether the cheque in transit GL is neutralised and there
are no open items pending for unduly long time. Action taken by
the CDDO be commented and escalated to higher authorities.
viii. Check whether cash remittances to other units and bank is made
under security of guards/police as required under the Rules on the
subject based on the quantum of remittances
ix. Check whether all the direct credits and debits happened to the
CDDO bank account are correctly reflected and accounted in the
CSI SAP F&A on due dates. Check any omissions and point out
so that such recurrence not to happen in future.
x. The t-codes zfi_receipt (remittance to bank schedule),
Zfi_payment (Drawn from Bank schedule), Zfi_recon (Bank
[57]
Reconciliation Statement), Zfi_schedules(Drawn from bank and
remittance to bank schedules) be operated and confirm
correctness for a day.
xi. Check whether Dealing Bank is charging commission for DDs
obtained by the CDDO for official purpose.
xii. Check whether all Cheque books have been taken to system and
while issue of cheques whether maker and checker concept exists.
xiii. Check the amount as in the zfbl3n for the drawn from bank
clearing account tallies and matches with the Scroll figure for
selected days and month.
xiv. Check the cheques sent for realisation through CTS grid is
accounted only after its realisation and bounced cheques are
correctly accounted in DOP books for the products like
PLI/RPLI, TRC etc.
xv. Check the correctness of ATM upload and its proper accounting
in the books of profit centre and correctness of posting in the
correct ATM cash GL.
xvi. Check the correctness of ATM Cash GL of all the Profit Centres
coming under the jurisdiction of Inspecting Unit and its balances
for the test check month and report any variations and accounting
lapses.
137. SAVINGS BANK AND SBCO
1. Check whether manual interest calculation made in Non-CBS offices
are correct for 10 accounts of each category i.e. SB/PPF/SSA and report
result.
2. Check whether prescribed fee for transfer of account, pledging of
account/certificate, etc., are collected at the prescribed rates and
credited to the respective GL correctly.
[58]
3. Check whether revival of silent account is made only according to the
procedure as prescribed in SB order 5/2016 dated 21.06.2016 and as
amended from time to time in respect of references received from POs
with one supervisor and record observation.
4. In respect of clearance of cheques:
a) Check whether prescribed dishonour fee is collected and
credited to UCR/debited to account for dishonoured cheques
b) Check whether prescribed commission/fee is charged in case of
outstation cheques returned uncashed.
c) Check whether the figures of inward and outward clearing in
Post Office Clearing report tallies with Treasury figures.
5. Check whether the procedure for disposal of SB/SC death claims is
followed scrupulously as prescribed in SB order 25/2010 and whether
the sanction is accorded by the competent authority.
6. Check whether the DB and SR figure of annual interest of all schemes
tally each other and ensure that no annual adjustment TE are effected at
Postal accounts office.
7. Check whether transfer of account/scheme, freezing and unfreezing of
account, Intersol transactions is made only according to the procedure
as prescribed in SB order 5/2016 dated 21.06.2016 and as amended
from time to time in respect of references received from POs with one
supervisor and record observation.
8. Check the following office accounts for selected month and record
findings a) 0340(Postmaster’s account) It should be credit balance only
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b) 0017(Outward Clearing Account) It should be zero balance
(from 15.01.2019, no cheque should be entered in this office
account)
c) 0101 (inward clearing account POSB cheque debit to be
given). It should be credit balance.
9. ATM cash account SOL ID +0006 needs to be cross checked with cash
remittance entry to Bangalore GPO for a selected month. ATM Cash
balance should always be in Debit Balance
10. Check to see that the guidelines circulated vide SB order 14/2012
regarding AML/CFT norms is being scrupulously followed.
11. Check to see that all reports as per under mentioned reporting schedule
are sent
• CTR transactions more than 10 Lakhs
• All series of cash transactions totally exceeding more than Rs.
10 Lakhs during the selected month of audit
• STR (Suspected transaction report)
12. Check whether the licenses of all MPKBY/SAS agents are valid up to
date and check whether any irregular commission has been paid to the
agents during any period of non-renewal.
13. Check whether any SCSS accounts has been erroneously opened for
those who retired by VRS before 55 years of age for selected month of
audit.
14. Check whether any SSA accounts has been erroneously opened for
more than two girl children in a family.
[60]
15. Check whether procedure for premature closure of SSA accounts has
been scrupulously followed with reference to supporting documents as
prescribed in Sukanya Sammiriddhi Accounts Rules, 2016 published
vide GSR 323(E) dated 18.03.2016.
16. Check whether closure of all discontinued schemes is made at HO only.
17. Check whether separate KVP/NSC issue journal of pledging and
releasing journal showing the particulars of the certificate, name of the
pledger, etc., is sent to PAO as per Rule 39(7) of POSB Manual
Volume II.
18. Check whether SBCO is generating consolidation of each scheme in
Finacle when vouchers are received from HOs and SOs and compare
the consolidation print out sent by the SOs and HOs with the
consolidation shown in the system. Check whether in case of
discrepancy, SBCO Incharge is immediately raising the issue and
reporting to the Divisional Head as well as Vigilance branch of RO/CO.
19. Check to see if any accounts with balance of Rs. 50000 and above
exists without updation of PAN numbers in CIF number and record
observation.
20. Check consequent on Inter-SOL accounting after CBS GL integration
with CSI, there should be any cases of non-tallying of DTR and if any
errors noticed are corrected centrally.
21. Check to see if Agent commission schedules and vouchers are sent to
PAO every month by the accounts branch of the HO as required vide
[61]
SB order no. 14/2015 dated 19.10.2015 and if any schedules and
vouchers kept with them, record observation
22. Check whether interest adjustment register is maintained by In-charge
of SBCO and interest adjustment if any made whether the same is done
only after approval from the competent authority, as required vide Para
5.4.1 of Annexure I to SB order no. 14/2015 dated 19.10.2015.
23. Check whether all interest adjustment made has been communicated to
DAP without any deviation as required vide Para 5.4.2 of Annexure I to
SB order no. 14/2015 dated 19.10.2015
24. Check whether manuscript register for recording receipt of unused
cheque books with closure applications is maintained by SBCO as
required vide Para 5.5.4 of Annexure I to SB order no. 14/2015 dated
19.10.2015.
25. Check whether manuscript register for recording number of spoilt pass
books is maintained by SBCO as required vide Para 5.6.2 of Annexure I
to SB order no. 14/2015 dated 19.10.2015.
26. Check whether “Register of vouchers not received” (in form prescribed
in Annexure 3 in Rule 4 of Manual of SB Control Procedure) for
recording the vouchers not received along with LOT is maintained by
SBCO as required vide Para 5.6.6 of Annexure I to SB order no.
14/2015 dated 19.10.2015.
27. Check whether the Supervisor SBCO is generating Statistical Report
with HO Sol Set ID and sending the same to PAO duly adding the
figures of Non-CBS offices and send the same to ICO(SB) and PAO by
[62]
the 10 th of the following month as required vide Para 5.8 of Annexure
I to SB order no. 14/2015 dated 19.10.2015.
28. Check whether the Supervisor SBCO is generating Report on Silent
Accounts with HO SOL set ID and sending the same to PAO duly
adding the figures of Non-CBS offices and send the same to PAO by
the 10th of the following month as required vide Para 5.8 of Annexure I
to SB order no. 14/2015 dated 19.10.2015.
29. Check whether the Supervisor SBCO is generating Annual Interest
Summary with HO SOL set ID and sending the same to AO, ICO(SB)
and PAO duly adding the figures of Non-CBS offices and send the
same to PAO in the month of April as required vide Para 5.8 of
Annexure I to SB order no. 14/2015 dated 19.10.2015.
138. Inspection of Philatelic Bureau
1.The Internal Check Inspection of Philatelic Bureau will be conducted by the
Internal Check Inspection Party of the circle Postal Accounts Office under
whose jurisdiction such Philatelic Bureau is held.
2. Check the correctness of Receipts of Inventory and its accounting in the
system for Philatelic Commemorative Stamps and Stationeries since last
date of Inspection.
i. Check the correctness of Sales Vs Revenue Recognition in CSI
F&A for the test check month and point out any deficiencies
thereon.
ii. Check the correctness of transfer of Philatelic Items to other Plants
and its accounting in the Inventory Module.
[63]
iii. Check as to the Auto conversion of Commemorative Stamp sale to
Definitive Stamp sales after expiry of one year from the date of
release of Commemorative Stamps and its proper accounting
against the respective GLs.
iv. Check the cases of lost Stamps in transit from Supplier to Philatelic
Bureau and to other Plants and present the current status of the case
v. Conduct case to case Receipts and Payments Account of First Day
Cover Releases and its Profitability analysis. Comment on the Dead
stock, if any.
vi. Conduct Receipts and Payments Accounting Checks in case of all
Philatelic Exhibitions held during the financial year and the
deficiencies, if any be brought out.
vii. Ensure that all the procurement processes relating to Philatelic/
Commemorative Stamps are processed in MM Module so that
proper Accounting, Inventory Management etc., are accurate and
real time.
viii. Check all Philatelic Deposit Account, its Sales accounting, and
settlement and ensure its depiction of revenue in books of accounts.
ix. Ledger accounts of few PDA accounts (Minimum 50) be checked at
random and corresponding sales and Inventory accounting be
traced.
[64]
RESPONSIBILITY OF INSPECTING OFFICER
Note: - At the commencement of the inspection with reference to the
questionnaire and any other orders issued from time to time a distribution
memo of the items of work to be done by each member of the inspection party
should be drawn up and got approved by the Inspecting Officer. Each member
of the Inspecting Party being required to put his dated signature against the
items allotted to him.
The Inspecting Staff, i.e. the AAO and Accountants should submit brief
daily progress reports of the items of work done by them to the Inspecting
Officer, who is responsible for the proper distribution, and for the prompt
execution of the share of the work allotted to each official. These daily reports
should be passed by the Inspecting Officer in token of his scrutiny.
Each member of the inspecting staff should write the remarks
“completed” against the items allotted to him under the dated signature as soon
as the work is completed. The Inspection Officer should scrutinise such
completion reports and at the close of the inspection of the office concerned
send to his Head Quarters office the distribution memo and the daily progress
reports stitched together, along with the other papers relating to the office
inspected.
With the following certificate endorsed on the distribution memo: -
“Certified that no item of check prescribed under the Rules, or required
to be carried out under special orders issued from time to time, has been
overlooked either in the distribution of duties or in the actual performance of
work during the inspection.”
[65]
1. The Inspecting Officer is personally responsible for seeing that the
check prescribed are properly carried out. He should also personally
carry out the following items of work:-
(i) Review of the banking arrangements to see that they are
generally satisfactory. It should be seen in particular: -
(a) In whose custody the current cheques books and receipts books
are kept and by whom the cheques are filled in the receipts are
signed.
(b) What stock of blank cheque books and receipt books is in hand
and the books are kept and what account is kept of them. The
stock of the cheque and receipt books in hand should be verified.
(c) Whether the certificate of count is duly recorded by the drawing
officer on each cheque books.
(d) The procedure of remittances to the drawings from treasuries
should also be thoroughly reviewed where postage stamps and
stationeries are obtained from the State Treasuries instead of
Departmental Postal Stamp Depots, it should be specifically seen
that entries for such transactions are made separately under the
distinction heads in the HO Cash Accounts in terms of DGPT
Circular No. 27-122/84-CI dated 09.01.1985 and 34-10/84-
PA(Tech II)/218 dated 16.02.1985. i.e.Drawn from Treasury (a)
ordinary postage stamp and stationery and Remittance to Treasury
(a) for purchase of ordinary postage stamp and stationery.
[66]
(e) The Treasury Passbook, the register of cheques received and
cleared and challans to the treasuries etc. should be examined and
cases of inordinate or persistent delays in the acknowledgement of
remittances by the Treasury should be investigated.
(f) The treasury Passbooks should be compared with the register of
cheques received and cleared and other initial records in order
verify the bonafides of the cheques transactions. A reconciliation
of the total amounts as per the register of cheques received and
cleared should also be made with the amounts actually
acknowledged by the treasury as per Treasury Passbook and the
reconciliation statement should from part of the documents
submitted with the Inspection Report; and
(g) The extract of outstanding balances unacknowledged by the
treasury from the Accounts Office should be verified with the
unacknowledged entries in the Treasury Passbook.
(ii) General Scrutiny of the various GL reports.
(iii) Examination of the memorandum of distribution of work to see
that it is duly signed by the Divisional Superintendent or the 1st
Class Postmaster, as the case may be, that it is hung up inside
the Post Office and that the distribution of duties assigned,
therein to the different officials is duly observed in actual
practice. It should also be examined to see whether the
restrictions imposed on the discharge of duties connected with
the Money Order, Savings Bank or Sub Account Department
etc., are strictly observed, whether the Superintendent of the
Post Offices or other Departmental Inspecting Officers verify
during their inspection that the duties performed by each official
are strictly in accordance with the Memo of distribution of work
and whether the memo requires any.
[67]
(iv) Reviews of the extent to which instructions and orders
previously issued and noted for compliance are being observed
in practice.
(v) Scrutiny of any points noticed in the course of Internal Audit or
otherwise which he may be asked to settle on the spot.
(vi) Scrutiny of any other items not specified herein which he
considers necessary to be examined on the spot.
(vii) Review of the Inspection Reports of the Postmaster General and
other Executive Officers to see that the irregularities noticed
therein have been remedied.
(viii) Review of the Register of Buildings and recoveries of rent
thereof and establishment work.
(ix) General review of the accounts, the nature and extent of detailed
scrutiny left to the Inspecting Officer’s description.
(x) Review of all regular – contracts and of a percentage of other
agreements made since the date of the last inspection.
(xi) In case of Inspection of one Sub Post office, one Branch Post
Office apart from other points, it should be specifically seen that
the CSI accounting under RICT/ CSI is functioning correctly
and no transactions are left out in the Daily Transactions
Reports.
(xii) Test check of all voucher payments done by DDO and its sub-
ordinate offices for a period of three days during the period Test
check be conducted to ensure usage of correct GL / correct
Document Type etc., All the voucher payments done in excess
of Rs.10000 in each transaction may be checked for its
correctness and accuracy.
Note: - The checks prescribed in clause (g) should be exercised for the month
of test check. Any unpaired items included in the statement brought from Head
Quarter Office should be checked in full.
[68]
CHAPTER – II
QUESTIONNAIRE FOR THE CASH BRANCH OF
CIRCLE OFFICE AND OFFICE OF REGIONAL POSTMASTER
GENERAL
1. The arrangement for obtaining cash and for its custody payment and
accounting should be examined to see that they are in conformity with the
rules on the subject. If any sum has been kept out of account, it should be
seen whether it was necessary to keep it out of accounts. It may be ensured
that any remittance transactions between CO/RO with CDDO are
happening through workflow as designed in CSI and there should not be
any transit pending for acknowledgement for a long time and are adjusted
in a reasonable time.
2. In case of transactions initiated by CO/RO and final payments is processed
at CDDO level, ensure that such transactions have been properly
accounted in the cash based CCA accounts in the Books of CO/RO and
CDDO properly. The accounting entries for clearance of liability creation
at RO/CO will be verified for Test check month thoroughly.
3. The Inspecting Officer should also ascertain and record the following facts
in the inspection report :-
(a) By whom and on what date the physical cash was last counted and
whether the actual balances found on that occasion was recorded in the
inspection report.
(b) If any discrepancy was found on that occasion between the cash and
the book balance, how it was accounted for and finally got rectified.
[69]
(c) The various entries in the Treasurer’s Cash Book for one week of the
Test check month be checked thoroughly with Corresponding vouchers
and Daily Transaction Report.
4. It should be seen that the Treasurer’s Cash Book:
(a) That the entries in the Treasurer’s Cash Book agree with receipts
granted, the vouchers, etc., and are confirmed to actual cash receipts
and disbursements of the officer in charge of the cash chest on behalf
of the Government.
(b) That private cash or account of the member of the Department are not
accounted for through the Treasurer’s Cash Book or mixed with
regular Cash Balance.
(c) That the Treasurer’s Cash Book and Daily Transaction Report is
balanced each day, as per Note 2 below Rule 124 of P& T Financial
Hand Book, Volume I and duly vetted by the NCDDO concerned.
(d) That there is evidence in the Treasurer’s cash Book and Daily
Transaction Report of verification by the officer in charge of the Cash
Branch that all entries made therein regarding receipts and payments
and the actual balance of cash in chest as counted on the last working
day of each month.
(e) That full particulars of all items of expenditure for which vouchers are
not submitted to Accounts Office but destroyed have been recorded
separately.
(f) That the Main pay and allowances Bills and Off-cycle payments are
processed and disbursed without any avoidable delay in the System
[70]
ANNEXURE
| Name of Unit | Opening Balance | Objection included during the month | Objection settled admitted during the month | Closing balance | ||||
|---|---|---|---|---|---|---|---|---|
| No. of Items | Amount Outstanding as per OB (year wise) | No. of Items | Amount Placed Under objection | No. settled | Amount cleared | No. of Items | Amount Outstanding | |