PRESENTATION BY FINANCE CONTROLLER - KARNATAKA

ON COMPLIANCE TO ACTION TAKEN ON OBSERVATION OF INTERNAL

AUDITORS

ACTION TAKEN ON OBSERVATION OF INTERNAL AUDITORS

Internal Audit is a tool to control the functions by examining & evaluating the adequacy and effectiveness of other controls throughout the organisation.

Ensure adherence to management policies safeguard the assets and secure as far as possible the completeness and accuracy of the records.

Contd.. Internal Audit will evaluate the confidence

derived from internal control. It provides audit assurance for the relevant audit

objectives. Internal Audit are of Application control and

General control.Application control are basic controls over the

completeness, accuracy and validity of accounting information.

General Control are organisational, segregation of duties, supervision and management.

Contd ….A committee formulated to review the Internal

Audit Observation at SPO levelDirector – Chairman Joint Director (Quality) – MemberDistrict Project Co- Ordinator – MemberRepresentative from Internal Audit Wing –

MemberChief Accounts Officer – Member Secretary

Contd….

On receipt of the Audit Report, meeting with the Committee will be arranged to review the observation made by the Audit wing.

After finalizing the observations a copy will be forwarded to the concerned office for comments if any.

On receipt of Audit observation from the districts or the implementing units after their comments, they will be registered at SPO unit wise, year wise.

Contd….

Compliance will be called from the concerned within in 30 days.

Reminders will be sent if they failed to comply with in stipulated period.

Audit observation paras will be settled on the basis of compliances given by the unit on approval of the authority.

Contd…..

District Project Office is directed to deal with the Audit observation of the concerned districts

DPO will review its Audit Observation and propose to drop paras with recommendations to State Committee.

After review of the recommendations, if it is feasible, the paras will be dropped with the approval of SPD

Contd…

Zilla Panchayat Standing Committee on

education will review Internal Audit observations of the District.

In the next Standing Committee meeting follow-up action on Internal Audit observation are required to be furnished.

Contd….

Previous Year Audit Observations are provided to Internal Audit Wing to review the same in their next visit.

Internal Audit Wing is requested to guide in maintenance of accounts and compliances to be made on Audit observation to accounts staff while conducting Audit.

Contd…..

Irregularities will be called for explanation.Appropriate action will be initiated in proven

misappropriation cases.Previously Internal Audit was post audit.

Presently on concurrent basis.Summed up Audit Observations will be

highlighted at meeting of district officials held at SPO at regular intervals.

Contd…

The general lapses found in the audit observations will be highlighted at training /orientation of accounts staff and other workshops conducted at appropriate levels.

Thank You