Internal Audit Report NGO: Tagore Society for Rural Development
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1 1 I N T E G R A T E D C O A S T A L Z O N E M A N A G E M E N T P R O J E C T W E S T B E N G A L N G O : T a g r e S c i e y f r R u r a l D e v e l p m e n C n e n s Secin I: Audi Scpe and Apprach:... 2 Objecive and Scpe... 2 Audi Apprach... 2 Secin III: Observains in Deail -NGO... 3 Secin III: Observains in Deail -SHGs... 5
2 2 I n e r n a l A u d i R e p r f r h e p e r i d S e c i n I : A u d i S c p e a n d A p p r a c h : j e c i v e a n d S c p e We have cmpleed he Inernal Audi f he Prjec Expendiure incurred by Tagre Sciey fr Rural Develpmen. Our wrk was carried u in accrdance wih he agreemen daed June 21, 2013 wih SPMU, ICZM Prjec and Scpe f Wrk sipulaed herein. Our repr includes an verview, scpe and ur bservains, geher wih ur prpsed recmmendains. The glbal bjecive f he assignmen will be prvide a prfessinal pinin n he adequacy f applicable inernal cnrl framewrk and is adherence by he execuing unis, idenifying areas f criical weakness and heir imprvemen funds received and expendiure incurred by each Accuning Cenre (AC) during he perid under audi being in accrdance wih he laid dwn financial regulains, prcuremen prcedure and her rders issued frm ime ime fr his purpse. accuracy f Inernal Unaudied Financial Reprs (IUFR) and cmpliance wih he financing agreemen. The specific bjecives f he Inernal Audi are : Prvide he imely fiduciary assurance Sae Prjec Managemen Uni (SPMU), ICZM Prjec, Wes Bengal ha he Financial Managemen Sysems and Inernal Cnrl prcedures, as applicable he Prjec Cmpnen IV, are being adhered by he variuxecuing unis, and he financial reprs being submied by PEAs he SPMU are in agreemen wih he bks f accun and can be relied upn suppr he disbursemens made by he Bank; Verify he prcuremen prcedures adped in he prjec; Obain a prfessinal pinin n he accuracy f he IUFRs and cmpliance wih financing agreemens. The audi wuld cver all prjec aciviies including all surces and applicain f funds fr he prjec. The Audir will visi he varius field ffices fr achieving he bjecive. A he reques f SPMU, cnduc special review f SPMU iself r any PEA as desired. A u d i A p p r a c h Our apprach he inernal audi sared wih an verview f aciviies hrugh a sudy and dcumenain f he exising sysems and prcedures. We hen idenified, evaluaed and esed he adequacy, efficiency and effeciveness f inernal cnrls including sandard plicies and prcedures laid dwn by he managemen (where applicable), fr each f he areas included in he Scpe f Wrk. Tesing f inernal cnrls was carried u by checking a limied number f ransacins fr he perid cvered by he audi.
3 3 s a i n Apar frm he es f cnrls and samples we als carried u varius ypes f analyical reviews undersand as well as highligh unusual r significan rends in he business. Our bservains, resuling frm he audi ess perfrmed n a sample f ransacins, are se u in he Deailed Observains f he audi repr. S e c i n I I I : a i n s i n D e a i l - N G O During uisi, we verified he implemenain f he prjec in erms f cerain indicars enumeraed in he agreemen beween SPMU and Tagre Sciey fr Rural Develpmen. Our bservain n achievemens f each indicar is given belw: S e c i n 1 : We bserved ha achievemen f cerain resuls were saisfacrily. These areas are menined belw:- l A r N. R e s u e a s I n d i c a r 1 Engagemen and rienain f saff 2 Prcuremen f furniure and equipmen 3 Inrducing ICZM prjec he arge areas Targe area means GP as alled yur NGO 1. All saff have been given adequae rienain f ICZM prjec 2. All saff have heir jb descripin 3. All furniure as per lis as apprved by SPMU have been purchased and in use a he ffice 4. All equipmen as per lis as apprved by SPMU have been purchased and in use a he ffice 5. All furniure and equipmen are prperly recrded in he sck regiser. 6. Peple in he areas are aware f ICZM prjec wih is brad bjecives 1. Adequae raining fr rienain f ICZM prjec has been cnduced. 2. Jb descripins were prperly defined fr each saff. 3. All prcuremens have been dne as per he specified prcuremen guideline. 4. Cmpuers and lapps were purchased as apprved by SPMU. 5. All he asses have been enered in he Fixed Asse Regiser wih prper idenificain number. 6. Meeing cnduced as per cnrac. 4 Basic daa base f CBOs (SHGs, CIGs, Club, ec.) including 7. Daa base f all SHGs, CIGs, Club, cperaives are available name f CBOs, address, membership 7. Relaed Daa base mainained.
4 a i s i a i n N. R e s u l A r e a s I n d i c a r cperaives f he arge areas 5 Draf plan fr nex 10 mnhs f he year number, aciviies f he CBOs,ec. 8. A wrk plan f 10 mnh perid is frmulaed in a paricipary prcess This plan shuld be wihin he livelihd framewrk f ICZM prjec and he plan dcumen shuld aleas cnain: Siuainal Analysis f he arge area Objecives Sraegies Aciviies (as per frma suggesed by SPMU) Budge (as per frma suggesed by SPMU) Review and mniring prcess 8. Available. Secin 3: Oher Observain N. 1. On verificain f Salary Regiser, we fund ha he Prfessin Tax was deduced as Rs 110/- each insead f Rs 130/- each in respec f Samiran Pradhan and Apan Nayak. Mrever Prfessin Tax challan was n available fr uerificain. 2. On verificain f paymen vuchers f Inernal Travel wihin Blck GP, n s I m p a c Saury cmpliance. nn- Excesxpendiure being charged under he head Inernal Travel wihin Blck R e c m m e n d a Prfessin ax shuld be deduced accrding curren prfessin ax slab. Als cpy f prfessin ax paymen challan shuld be mainained a sie ffice. Expendiure s shuld be charged n acual basis. n M a n a g e m e n C m m e n R e m a i n i n g b a l a n c e a s p e r n e w s l a b w i l l b e d e d u c e d a n d d e p s i e d h e B a n k. H e n c e f r h p r f e s s i n a x w i l l b e d e d u c e d & d e p s i e d a s p e r n e w s l a b. C p i e s f a l l C h a l l a n s a r e k e p a s i e f f i c e. V i d e r e f e r e n c e f m a i l d a e d a n d h e s u b m i s s i n h e r e f N G O s m a y
5 5 a i i N. we bserved ha Rs. 4/km was being charged by TSRD fr usage f mrcycle. Hwever accrding an e- mail beween he Clien (TSRD) and he Cnsulan (SPMU) daed 05/04/2013, i is menined ha ravel cs is be charged n acual basis and n per KM basis. 3. On crss verificain f Challan wih Supply rder in respec Deskp and Camcrder purchased n 03/12/2013, we bserved ha he abve iems were purchased wihu any supply rder. Mrever, a supply rder was given vendr in respec f abve purchase n 24/12/2013, i.e. afer delivery f iems. n s I m p a c GP. Vilain prcuremen prcedure. Of R e c m m e n d a Supply rder shuld be issued vendr befre delivery f gds/maerial. n M a n a g e m e n C m m e n e a l l w e d s p e n d w i h i n h e v e r a l l l i m i i. e. R s. 4, p e r m n h a n d a l s R s. 2 8, p e r a n n u m, ( a n n u a l a v a i l a b l e a m u n i s R s. 7 6, ) w h e h e r h e y u f u e l r u n w n / h i r e d v e h i c l e. W e d i d n e x c e e d h e s i p u l a e d a m u n u n d e r h e h e a d f a c c u n s. T h e a c u a l p u r c h a r d e r w a s i s s u e d n 2 4 / 1 1 / w h i c h w a s r e c e i v e d b y h e V e n d r n i s a n i n a d v e r e n m i s a k e n u r p a r i n r e s p e c f h e d a e f h e S u p p l y r d e r. A s i w a s k e p i n H e a d O f f i c e, c u l d n b e p r d u c e d a h e i m e f a u d i. S e c i n I I I : a i n s i n D e a i l - S H G s During ur audi, we verified he ransacins made by varius SHGs under TSRD. We niced ha, during he perid April June 2013, ransacins k place nly in respec f fllwing SHGs. Our bservains in respec f each SHG are summarized belw: Name f SHG Isananda Swambhar Gshi Fund Disbursed Fund Uilised Purpse f expenses 2,11, ,11, Erecin f Tube well wih Raised Plafrm.
6 6 Name f SHG Baba Maheswar Self Help Grup Fund Disbursed Fund Uilised Purpse f expenses 2,11, ,11, Erecin f Tube well wih Raised Plafrm. Maa Sarada Mahila Self Help Grup 7,97, ,73, Cnsrucin f Brick Rad. (Remaining amun f Rs. 24,163 has been reurned SPMU in March Reflecin f he same enry is available in he bks f SPMU n 27 h March,2014) We did n find any discrepancy in erms f expenses incurred as menined abve. Fr Mkherjee Biswas & Pahak Firm Regisrain n E Charered Accunans (A Pahak) Parner Membership n.f Klkaa June 27, 2014
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