F. No 1-2/2021 -IA Ministry of Communications Department of Posts (Internal Audit Division) PA Wing: Dak Bhawan New Delhi-110001 OFFICE MEMORANDUM Dated: 21/10/2021.
Sub: Review of Internal Audit mechanism in Department of Posts.
Consequent upon induction of technology and roll out of ERP application, defining the role of Internal Audit and the method of carrying out Internal Audit has been under consideration. Rules. procedures and the Role of staff of PAOs for discharging duties in proper accounting and apply such checks have been categorically defined in the revised Postal Accounts Manual Vol I and Vol II. Similarly, the manual of Internal Audit questionnaire was also issued to all Postal Accounts Offices in the month of Aug, 2021.
Further. in order to strengthen the internal audit process and to activate accounts inspection at units wherein huge transactions occurs and also to set right the omissions on the spot as far as possible by providing proper guidance to end users; following set of instructions are hereby issued for information and compliance by all concerned effective from 1st Jan,2022.
1. Detailed role of Accountants in PA section has been defined in Chapter III of Postal Accounts Manual Vol I edition 2021 . While exercising checks on various accounts vouchers and systems returns, any discrepancy or inconsistency is noticed; objections should be raised and review register submitted to Branch officer. In case. the same is not attended or rectified, reference should be issued to Head of Office and Regional PMG/CPMG concerned. If, the discrepancy. omission or wrong booking etc still not corrected & persists, the detail of discrepancies/objections shall be transferred to IA section of PAO, which will further pursue such objections till the end of following month of the objections raised and thereafter shall plan an audit of the unit concerned nominating the concerned accountant as a member of the Internal Audit team.
Such teams shall be led by an AAO. The IA team visiting the field units shall focus on settlement of maximum irregularities on the spot and shall include the status of paras raised, settled and pending. Such team shall submit special report of work done by them at units and nature of action taken by them. These visits will be in addition to normal planned annual Internal Audit Inspections of the PAO concerned.
Each PAO shall undertake the Internal Audit of DDOs/NCDDOs and other administrative units under their accounts jurisdiction once in a year. At least 50% of the units under the PAOs concerned shall be audited by the teams from outside the Circles PAOs. Out of composition. 50% of team shall concentrate on settling the pending paras. Circle PAOs & CPMG offices shall be audited by other nearby Circle PAO as intimated by Dte from time to time.
2. Internal Audit by the AOs/AAOs posted in Circle Office & Regional offices:- In order to further strengthen the Internal Audit mechanism, the Accounts officers/AAOs posted in the office of regional PMGs shall also undertake the Internal Audit of all those Sub Post offices & MDGs whose monthly business is more than Rs. 1 crore in a month. While inspecting such Sub Post offices, MDGs; BO transactions shall also be examined by the regional AO/AAO concerned. Irregularities noticed should be settled on the spot as far as possible. Those irregularities which could not be settled should be included in the Inspection report and sent to the Internal Audit section of GM (PA F)/DAP beside reported to regional PMGs/CPMsG. These irregularities shall be monitored by the IA section at PAO through proper
co-ordination and monitoring. The scope of Inspection and Areas to be looked into by the AO/AAO, Circle Office & Regional Office will be as under:-
(i). Cash & bank arrangements and transactions thereof.
(ii ). Accounting of BOs transactions and closing balance comparison with system closing balance & Da ily account (DTRs) submitted by BOs.
(iii). CBS and Insurance sector issues and problem s.
(iv ). Cash and cheque remittance transactions.
(v ). Accounting of IPPB transactions.
(vi). Sums kept out of account.
(vii). Proper revenue depiction.
(viii), Accounts receivables and settlements.
( ix). E-billers and COD /BNPL customers account etc.
(x). Franking Machine operations accounting & settlement.
(xi). Any other duties assigned by Regional PMG.
(xii). Ann specific issues of importance which affects revenue & expenses.
( I ). Similarly. AO (ICO SB) posted at Circle or at Regional offices irrespective of CBS or Non CBS offices shall look alter the following areas:-
i. Checking of operation of SBCO in the Circle and take remedial action in case of short- coming.
(ii) Monitoring/Checking of various office accounts in Finacle.
(iii) Monitoring of status of minus balance in the Region/Circle.
(iv) Monitoring of status of SBCO objections and its pendency.
(v) Monitoring of FRMU alerts in the Region/Circle and its pendency.
(vi) Monitoring of A M L CFT alerts in the Region/Circle and its pendency as well as status of compliance of A M L/CFT norms in the Region/Circle.
vii) Status of number of accounts in POSB schemes in the Region/Circle.
viii) Status of Jan Suraksha Schemes (APY/PMJJBY/PMSBY) in the Region/Circle,
(ix) Bank reconciliation status in the various HOs in the Region/Circle.
3. Internal Audit by the IA Division of Postal Directorate.-The internal audit of Postal Accounts Offices. Circle offices and such units as decided shall be carried out by the nominated teams or drawn from adjoining Circle PAOs. The team so nominated by the Circles shall prepare Internal Audit reports showing to o components i.e.
1. Fresh Audit report
and
2. Pending paras and its settlement. On the last daj of Internal Audit of Inspection,
a representative from DOP HQ either ADD or Director (IA) along with status of pending paras. recovery status etc. shall go for discussion of the audit findings of the Head office concerned.
4. Internal Audit of different divisions in DPP HQ:- DOP headquarter shall also be audited by field teams other than PAO Delhi. Selection or teams for Circle level offices shall be decided central but composition of the team shall be decided by the authorized Circle PAOs which will depute their teams for audit. The Internal Audit report will be submitted by the team to the Sr.DDG (PA F). Director (IA) through Internal Audit Division will monitor the settlement of objections coordinating with the concerned Divisions.
• All Reports to be sent to DOP Head quarter IA Division by PAOs:- ln supersession of all earlier instructions. following reports should be sent by all PAOs to Director (IA) :-
a. A monthly report from Director (IFA).
b. A quarterly report on holding of Circle Monitoring Committee meetings with showing number of paras settled.
c. A quarterly report in a format on settlement of paras. recovery of objected amount and pending paras and amount for recovery in respect of field units shall be
sent by end of the following month of the quarter. A separate annexure showing pending P&T Audit paras. settled. recovered amount and remaining pending paras and outstanding recovery of objected amount which are shown in the annual appropriation accounts shall also be furnished.
6. The receipt of this OM may please be acknowledged to Director (IA), DOP HQ . This issues with the approval of Secretary (Posts).
Enclosures:-As above.
