National Thermal Power Corporation Limited

NATIONAL THERMAL POWER CORPORATION LIMITED
MANUAL ON INTERNAL AUDIT November 2002
A.F. FERGUSON & CO. NEW DELHI
CONTENTS
Chapter Subject Introduction 1 2 3 4 5 6 7 Objectives of Internal Audit Period to be covered by Internal Audit Scope of Internal Audit Extent of Checking Conduct of Internal Audit and Issuance of Reports Follow up of reports and settlement of Internal Audit Paras System for ensuring compliance of Internal Audit Observations Audit Guidelines for - Works including O&M Contracts - Procurement - Operations (a) Review (b) Coal (c) Liquid Fuels (d) Gas (e) Statement of Fuel Particulars - Accounts (a) Verification of Vouchers (b) Cash / Bank (c) Works Accounts (d) Suppliers Bills Accounts (e) Stores PSL (f) Establishment Accounts (g) Commercial Accounts 42 43 45 47 48 49 52 22 24 31 38 40 12 20 9 10 Page No. 1 2 3 4 5 7
Manual on Internal Audit
Chapter
Subject (h) Review of General and Sub-Ledger (i) Loan Accounts - Stores Department - Human Resources Department - Township - Guest House - Hospital - Debtors for the Sale of Energy - Invoicing of Sales - Customs Duty and Port Trust Charges - Auto Base & Construction Equipment
Page No. 56 58 60 62 63 65 67 69 71 72 73
INTRODUCTION
This manual describes the system of internal audit to be followed in NTPC, covering various aspects such as objectives of internal audit, the period to be covered, the scope and extent of checking, the procedure for conduct of audit, issuance of reports, the follow-up of reports, settlement of paras and the system for ensuring compliance of internal audit observations. Detailed guidelines in respect of all the areas to be covered by internal audit have also been included. The internal audit system, as described in this manual shall be subject to a review at an interval of five years. The guidelines / checklists shall however be subject to an annual review.
Chapter 1
OBJECTIVES OF INTERNAL AUDIT

The broad objectives of Internal Audit shall be as under: a) to ensure that the accounting and financial management systems are reliable and effective in design and to assess the extent to which they are being followed; b) to review the efficacy, adequacy and application of accounting, financial and operating controls and thereby ensuring the accuracy of the books; c) to verify that the system of Internal check is effective in design and operation, in order to ensure the prevention of and early detection of defalcations, frauds, misappropriations and misapplications; d) to identify areas of significant inefficiencies in existing systems and to suggest necessary remedial measures; e) to confirm the existence of financial propriety in all decisions and verify compliance to Government and statutory requirements; f) to review the performance of various functions in the light of performance budgeting and to suggest cost reduction measures, if any; g) to associate with Line Managers / HODs / Project Vigilance etc. in their surprise checks and inspections whenever asked for.
Chapter 2
PERIOD TO BE COVERED BY INTERNAL AUDIT

The following principles shall be followed: 1. Internal audit should cover the accounts of the various accounting units for a financial year. 2. All accounting units including Corporate Centre (SCOPE and EOC, Noida), projects, stations, Regional Headquarters, T&CC offices and other units/divisions shall be subject to internal audit every year. 3. The internal audit shall be conducted in two phases. The first phase of audit shall cover the first half of the financial year (period from April to September), the report in respect of which shall be submitted within two months of the end of the half year. The remaining period (October to March) shall be covered in the second phase audit, the report in respect of which shall be submitted within one month from the end of the financial year.
Chapter 3
SCOPE OF INTERNAL AUDIT

Internal audit in NTPC shall be as broad-based as possible and will cover all the functions. List of functions to be covered (as applicable) is given hereunder: 1. Works including O&M contracts (Pre-award and Execution) 2. Procurement (Pre-award and Execution) 3. Accounts 4. Establishment 5. Stores 6. Auto Base and Construction Equipment 7. Township 8. Guest House 9. Hospital 10.Operations 11.Invoicing of Sales 12.Debtors for the Sale of Energy 13.Custom Duty & Port Charges While conducting the internal audit, emphasis should be laid on compliance of all the rules, regulations, policies and procedures laid down in all the areas being audited. Compliance with the relevant manuals, if any shall be verified as a matter of course. Guidelines and checklists have been furnished for some of the areas of attention in this manual. It is however emphasised that the coverage and reporting should not be restricted to the aspects mentioned in the guidelines alone. Professional expertise and judgement will have to be exercised on all other areas and aspects as well. Apart from the areas covered above, special investigations as entrusted from time to time by the Audit Committee, Committee on Management Controls and the management shall also be conducted and the findings/recommendations shall be submitted to the appropriate authority.
Chapter 4
EXTENT OF CHECKING
Firstly, the coverage of internal audit is vast. Secondly, not all the areas need to be checked to the extent of 100%. The extent of check to be exercised in each area has been determined keeping these two factors in mind. The extent of check of various areas is given below:
Coverage (in each Phase) 100% 50%
Sl.No 1
A rea
WORKS INCLUDING O&M CONTRACTS (Pre-award and

execution) (i) Contracts with value more than Rs.20 Lakh (ii ) Contracts with value Rs.20 Lakh or less (ii i) Also to comment on adequacy of the system of placement of LOAs and execution of the same as per Works and Procurement Policy and various circulars
PROCUREMENT (Pre-award and execution)

i) ii) iii) Contracts with value more than Rs.20 Lakh Contracts with value Rs.20 Lakh or less Also to comment on adequacy of the system of placement of POs and execution of the same as per Works and Procurement Policy and various circulars 100% 50%
ACCOUNTS (i) (ii ) Vouching Cash Payment Vouchers Vouching Adjustment entries in accounts 100% Bank 100% 50% of transactions each month 100% 100%
(ii i) Vouching Bank Payment Vouchers
(iv ) (v)
Vouching Journal Vouchers Also to verify entries in GL, Sub-ledgers and their review, Review of implementation of Accounting Policies and Accounting Standards
Sl.No 4
A rea
Coverage (in each Phase) rules and 50% 100% 100% 2 months 100% 100% 100%
ESTABLISHMENT Test-checking of bills w.r.t proprietary aspects (ii ) Review of Subsidiary Records STORES (i) (i) (ii )
Documentation and procedures Accounting and Review of PSL and claim s (incl. test verification of SRV valuation (ii i) Accounting and Review of Suppliers Subledgers (iv ) Review of Returnable Gate-Pass system (v) Test-checking of suppliers bills w.r.t policies & circulars
AUTOBASE AND CONSTRUCTION EQUIPMENT (i) (ii ) Proprietary Aspects Accounts 100% 100%
7,8,9
TOWNSHIP, GUEST HOUSE AND HOSPITAL (i) (ii ) Proprietary Aspects Accounts 100% 100%
10
OPERATIONS (i) PSL of Fuel (ii ) Verification of Fuel Price Adjustment (ii i) Review of Monthly Operating Results 100% 100% 100%
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INVOICING OF SALES
100% 100% 100%
12
13
DEBTORS FOR THE SALE OF ENERGY CUSTOMS DUTY & PORT CHARGES
C ha pt er 5
CONDUCT OF INTERNAL AUDIT AND ISSUANCE OF REPORTS

The following principles shall be followed in the internal audit and issuance of internal audit reports: 1. conduct of
The audit shall be conducted in accordance with the guidelines and checklists provided in the appendices to this manual. The results of audit should be discussed with Head of Finance and the project in-charge in each phase and important observations should be brought to their notice so that timely corrective action may be taken at project / other accounting unit. The reports should be prepared after duly taking into account the facts brought out in discussion. Internal Audit Reports should be divided into three main portions namely: a) PART I: IMPORTANT OBSERVATIONS, OBJECTIONS AND RESERVATIONS: This part should contain all such irregularities which auditors want to bring to the notice of management specifying the financial implications. This part should also bring out deviations by site from policies, systems and procedures prescribed by NTPC. The observations should be arranged into self-contained Audit Paras with a suitable title. PART II: COMPLIANCE REPORT: A compliance report should be given in this part on all important aspects. This part should also contain actions taken for rectification of errors pointed out in the audit report of the previous year or by the current auditors in earlier phase/phases. It should also contain the confirmations by site regarding implementation of policies, systems etc. to avoid the recurrence of such irregularities in future.
2.
3. 4.
b)
c)
DETAILED REPORT: This part shall PART III: comprise of auditors points on confirmations on matters or areas specified in the guidelines for audit. However, non-compliance of the matters/areas specified in the guidelines should be reported in Part I of the report.
5.
The report should be supplemented, in each phase, by a statement indicating: (i) Particulars of records along with their volume and value checked as compared to the total volume and value of the transactions.
(ii) A summary report indicating the important observations for each phase and for each area. (iii) A statement indicating the audit personnel deployed, their designation and the period of deployment for each phase. 6. Observations in the internal audit reports should not be general in nature. They should be specific and to the point, adequately supported by instances of irregularities/ noncompliance of rules, regulation, etc. Suggestions for improvement may however be given wherever possible.
C ha pt er 6
FOLLOW-UP OF REPORTS AND SETTLEMENT OF INTERNAL AUDIT PARAS

The following principles shall be followed in the follow-up of internal audit reports and settlement of internal audit paras: 1. After the audit is over, the internal audit reports shall be sent to the accounting units seeking their compliance/ replies to the audit observations. 2. Replies to internal audit observations shall be furnished by sites only after approval by the head of the project/ station/ office. 3. The replies furnished by the sites shall be examined by the Corporate Internal Audit Department. Individual paras shall be settled if the sites have either intimated compliance with the observations or have furnished satisfactory explanation. The paras where action is yet to be reported or the explanation is unsatisfactory shall be sent back to units with further comments for compliance / further replies. 4. These further replies shall be examined by Corporate Internal Audit Department. Action as in (2) above shall be repeated till the settlement of all paras in an audit report. 5. The reports shall be reviewed from time to time with a view to monitor the compliance of compliable points and status of those which need explanation and remedial action.
C ha pt er 7
SYSTEM FOR ENSURING COMPLIANCE OF INTERNAL AUDIT OBSERVATIONS

There exists a three-tier arrangement for ensuring compliance of internal audit paras in NTPC. There is a system of holding regional internal audit meetings co-chaired by Executive Director (Finance) and Executive Director of the region. Secondly, Chairman and Managing Director reviews the working of the internal audit function regularly. A Board level committee meets at least four times in a year to review all aspects of the corporations working. Outstanding internal audit paras are a part of the agenda of all these meetings. The system to be followed in respect of such reviews is given below: A. REGIONAL INTERNAL AUDIT MEETINGS
All outstanding paras shall be discussed in Regional Internal Audit meetings, which shall be held annually, under the joint chairmanship of Executive Director (Finance) and Executive Director of the region. These meetings shall be attended by representatives of Corporate Internal Audit, heads of units and other offices within that region, heads of Finance and other departments concerned. Agenda for these meetings shall include complete details of all internal audit paras outstanding. Paras in respect of which sites report compliance or have furnished satisfactory replies shall be settled at the meetings. The decisions taken at the meetings shall be taken up for implementation / action as necessary. Action taken with regard to decisions of earlier meetings shall be reported in the agenda of subsequent meetings. B. REVIEW BY CHAIRMAN AND MANAGING DIRECTOR
There is a system of review of functioning of the Internal Audit Department regularly by the CMD. In this context, the following items shall be included in the agenda for such meetings: a) b) c) d) status of outstanding internal audit paras including the age analysis; status of conduct of internal audit of the current year; details of action taken on decisions of CMD in earlier meetings; important observations from internal audit reports that need to be brought to the notice of CMD.
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The decisions taken by Chairman and Managing Director shall be taken up for implementation / action as necessary. C. COMMITTEE ON MANAGEMENT CONTROLS
The review of the status of internal audit and the outstanding internal audit paras falls within the terms of reference of the Committee on Management Controls. In this context, the details of internal audit paras outstanding for more than two years shall be included in the agenda for the meetings of the committee, apart from the status of various aspects of the internal audit function. The decisions / instructions and views of the committee shall be taken up for implementation / action as necessary. Action taken with regard to decisions of earlier meetings shall be reported in the agenda of subsequent meetings.
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GUIDELINES FOR INTERNAL AUDIT

WORKS INCLUDING O&M CONTRACTS
A. a) PRE AWARD- General guidelines Examine whether an approved list of contractors has been drawn up, reviewed and updated once every three years as provided in the Works and Procurement Policy. Examine the incidence and reasonableness of single tender awards PRE AWARD- Checks to be exercised in respect of files selected for examination Examine whether estimates have been properly made out and award values compared with estimates. Ascertain whether reasonability is established before award of contract. Examine whether all parties selected for tendering hold valid labour license, PF / sales tax registrations etc., as applicable. Ascertain whether all tendering procedures like invitation of bids, the requirement of EMD/Bid security, specifying bid opening date in the IFB, maintenance of tender box, Certification by Finance of tender opening, formation of the tender committee etc. has been followed in all cases. Analyse and comment on the reasonableness justification given in single tender cases. of the
b) B. a)
b)
c)
d) e)
Ascertain whether financial capabilities of tenderers have been properly assessed and award of contract made to financially sound and capable parties. Verify whether the comparative statement which shows the evaluation of the tenders has been drawn up correctly. Examine whether non-responsive tenders have been considered for bid-evaluation. Further, examine whether deviations taken by the tenderers have been properly loaded for evaluation of the bids. Examine the cases where the lowest evaluated commercially and technically responsive tenders have been
f)
g)
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overlooked and whether the same are justifiable. Highlight cases where the same are not considered reasonable. Internal Auditors will also verify and report on the compliance with G.O No.98/ORD/1 dated 24.8.2000 issued by the Central Vigilance Commission. h) Verify whether the Delegation of Powers have been followed strictly at all stages i.e., at the time of administrative approval, calling for tenders, formation of the tender committee, calling for negotiation and approval of the award. Examine whether awards were made after relaxing the qualifying requirements (QR), particularly after opening of the bids. Examine whether there has been a delay in processing the awards having financial implication to the company. Examine whether the unit has complied with circulars issued from time to time with regard to purchase preference to bids from central PSEs and joint ventures with PSEs. Examine whether any post-bid letters/ communication have been considered for the purpose of evaluation of bids. Each case is to be reported. Examine whether vetting of the letter of award has been effected in accordance with systems circular of Corporate Finance (ref: 02/2000, dated 17.02.2002) EXECUTION: Verify whether initial advance, interim advance, mobilisation advance etc. have been released in accordance with provisions of the LOA and have been given with approval of Competent Authority and the same are being adjusted regularly from the running account (R/A) bills. (i) Test check running account bills submitted by the contractors for various works verifying: the payments due in line with rates provided in the contract and the quantity recorded in the Measurement Book,
i)
j) k)
l)
m)
C. a)
b)
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recoveries on account of income-tax/ works tax deducted at source, materials issued on loan, retention of liquidated damages in case of delays, recovery for excess consumption of construction materials etc., certificate from Field Quality Assurance (FQA), wherever applicable, material reconciliation statement, examine on test verification, whether escalations bills are paid as per applicable indices, with reference to the formulae mentioned in LOA. recoveries on account of rent, electricity, hire charges on equipment etc. approval of Competent Authority has been obtained.
(ii) Verify the net payments released in line with the above and comment on deviations from provisions of LOA. c) Review the postings in the job cost cards, WIP ledger etc. with reference to the work executed for the various contracts executed and under execution and comment on findings. Comment on the works on which there has been no progress for a long period. Examine the reasonableness of insurance coverage and indemnity bonds furnished by the contractors for adequacy and renewal for material issued to them. Review the Bank Guarantee Register and identify cases of expired Bank Guarantees. Ascertain and comment on the action taken for revalidation of expired Bank Guarantees and also verify the compliance to rules regarding release, invocation etc. Highlight details of the cases where recoveries could not be effected due to inability to invoke Bank Guarantees. Review in detail, on the basis of approval notes, letter of award, bill of quantities, for compliance to Works and Procurement Policy and Delegation of Powers, the payments on account of escalation and extra claims due to: (i) (ii) (iii) (iv) Changes Changes Changes Changes in in in in item rates/duties/Taxes. quantities executed. scope of work. payment terms.
d)
e)
f)
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g)
Review in detail, the release of any advances against hypothecation of equipments, secured advance payment against despatch under L/C and otherwise, payments against receipt at site, final payments after PG test and Payment of erection price / Civil works in line with Letter of Award, General Conditions of Contract, approval notes and performance reports of contractors. Review in detail the release and adjustment advances not provided for in the LOA. of any
h) i)
Verify whether material lying with Contractors have been taken over in time after execution of the contract. Highlight cases of materials not taken over. Verify whether recoveries have been effected, for equipment hired out and materials issued, at higher rates as specified in the relevant guidelines, where the same has not been provided in the contract. Verify whether hiring of construction equipment and issue of material has been done with the approval of the Competent Authority. Examine whether liquidated damages have been levied for delays in completion of the works and/or deviations from prescribed performance parameters. If leviable liquidated damages are waived, whether the reasons recorded for waiver are justifiable With respect to Supply Contracts examine whether supplies have been effected as provided in the schedule of supply sequentially and comment on cases of delay on this account. Review and comment on the progress of completion of various contracts completed and those under execution with reference to scheduled completion periods provided in the respective contracts. Analyse the pending final bills pendency along with reasons. and comment on their
j)
k)
l)
m)
n)
o) p)
Review of closed contracts: Examine whether contract closing is done in accordance with the existing system and whether proper recoveries have been made in respect of any relaxations in the conditions of the LOA. (Exampleswaiver of specific tests; excess consumption of steel and
15
cement; relaxation of specifications for the materials, etc.) Indicate the status of contract closing for all contracts due for closure. q) Examine all awards comment thereon. placed on post facto basis and
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PROCUREMENT
A. General guidelines
a) Examine whether an approved list of suppliers has been drawn up, reviewed and updated once every three years as provided in the Works and Procurement Policy. b) Examine the incidence and reasonableness of single tender awards. B. Checks to be exercised in respect of files selected for examination
a) Examine the basis adopted for determining the quantities to be procured from the point of view of their availability in stores/other projects, quantity discounts etc. b) Ascertain whether all tendering procedures like invitation of bids, the requirement of EMD/Bid security, specifying bid opening date in the IFB, maintenance of tender box, Certification by Finance of tender opening, formation of the tender committee etc. has been followed in all cases. c) Verify whether the comparative statement which shows the evaluation of the tenders has been drawn up correctly and has been signed by representatives of both Materials and Finance Departments. Examine whether late tenders / delayed tenders and post-bid offers have been accepted. d) Examine the cases where the lowest evaluated commercially and technically responsive tenders have been overlooked and whether the same are justifiable. Highlight cases where the same are not considered reasonable. Internal Auditors will also verify and report on the compliance with G.O No.98/ORD/1 dated 24.8.2000 issued by the Central Vigilance Commission. e) Examine whether non-responsive tenders have been considered for bid-evaluation. Further, examine whether deviations taken by the tenderers have been properly loaded for evaluation of the bids.
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f) Examine whether proprietary and standardised purchases have been properly regulated as provided in the Procurement Policy. Comment on the reasonableness of the rates against proprietary and standardised purchases. g) Highlight cases of increased cost due to delay in processing of purchase indents. h) Analyse the reasonableness of the justification furnished in single tender cases. i) Examine whether the actual cost compared with the estimates and their reasonableness established before placing purchase orders. Highlight cases of substantial variations between award values and estimates not supported by price justification. j) Examine whether proprietary Article Certificates have been issued in line with the Works and Procurement Policy. k) Examine the cases of repeat orders for compliance to the Delegation of Powers and quantities to be procured. Comment on incidence of such repeat orders. l) Examine the payments for supplies in line with the terms of payment as per the purchase order and highlight the deviations on this account. m) Examine all cases of purchase order placed on post facto basis. n) Examine whether claims for liquidated damages for delay in supplies / shortfall in performance of various equipments compared to guaranteed parameters have been lodged and realised in time in full. o) Verify whether the Delegation of Powers have been followed strictly at all stages i.e., at the time of administrative approval, calling for tenders, formation of tender committee, calling for negotiation & approval for placement of purchase order. p) Examine whether the unit has complied with circulars issued from time to time with regard to purchase preference to bids from central PSEs and joint ventures with PSEs.
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OPERATIONS 1.
a)
REVIEW OF OPERATIONS
From the monthly generation data, review the actual physical parameters Availability Factor, Generation, Plant Load Factor, Auxiliary Power Consumption percentage, Heat Rate from each source (coal, oil, gas) and Specific Oil Consumption in the case of coal stations, with reference to budget, previous years actuals and tariff parameters. Comment on the adverse variances, bringing out the financial implications of such adverse variances and the reasons contributing thereto. Review the minutes of the Operations Review Team (ORT) meetings and comment on any abnormalities.
b)
c)
2.
a)
OTHER ITEMS TO BE CHECKED

Examine whether stores records for all operational inputs and spares have been properly maintained and comment on findings on this account. Examine whether scrap, by-products arising from operations and other obsolete / non-moving items of operational activities have been identified and duly disposed off. Examine and comment on the effectiveness of cost control measures. Suggest specific steps for their improvement. ENERGY SENT OUT: Test check the figures of energy sent out and auxiliary power consumption with reference to the logbooks maintained at respective places. Verify calibration reports of various meters. Comment on the findings in the internal audit programme of coal, liquid fuel(s) and gas. Compare the maintenance schedules in terms of number of days as planned with actual maintenance as done.
b)
c) d)
e) f)
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Examine the adverse variances and corrective action taken in these cases. g) Examine and comment on the control maintained by the project over replacement of high value spares and replaced items as indicated in the respective log-books. Examine whether the actual life of spares is as per the norms given by the supplier. Examine and comment upon the corrective/recovery action taken by the unit in case of deficiencies. Examine records maintained comment on abnormalities. in the sub-stores and
h)
i) Verify the procedure for drawal of the sample at the consumption end to arrive at calorific value of coal on fired basis. Test check calculations made for determining monthly calorific value of coal on fired basis used for the purpose of billing.
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OPERATIONS FUEL COAL
A. a) b) RECEIPTS Test check, for each method of delivery, whether proper weighments have been undertaken throughout the period. For each weighment, ensure adequate supporting documentation e.g., weighbridge print-out [road/rail] train reception report, bill of loading and unloading details. Ensure consistency of tare weights for comparable types of delivery. Examine whether the weighbridges are being calibrated as per the provisions of coal supply agreements. Also examine whether quantities of coal supplied are ascertained in line with coal supply agreements in case the weighing machines are out of order. Assess the accuracy of advised quantities for each method of delivery, the advice/delivery notes against weighbridge Ensure that all differences in weights that receipt documents have been appropriate official. Compare quantities shown invoices with advice notes. on by test checking, suppliers print-outs. are recorded and signed by the and haulers
c)
d) e) f)
suppliers
Test check prices charged for fuel and transport with Fuel Price Bulletins. Examine records relating to claims for short weights/deliveries and missing wagons. Ascertain whether all such claims have been pursued to a proper conclusion and settlement. Investigate and report where this has not been done. In case of claims against railways not settled within the period prescribed under rules, examine whether these claims have been taken up for approval to the railway claims tribunal. Ascertain the adequacy and integrity of the coal sampling procedure both as regards calorific value and for other specified requirements. The sampling procedure should be as per provisions of the coal supply agreements. Ensure that an adequate number of representative samples have been taken from each source of supply.
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g)
h)
(i) Check results of sampling evaluation with advices to Coal Handling/Coal Efficiency Cell under O&M Deptt. of the Project. (ii) Compare sampling results with suppliers analysis. (iii) Ensure that appropriate adjustments have been made in accordance with the sampling results or adequate explanations have been recorded where no action has been taken. Calculate the GCV on receipt basis and compare it with GCV on fired basis.
i)
Examine the weighing and sampling equipment maintenance records for frequency of checks and ascertain whether corrective action has been taken wherever necessary. To check the implementation of provisions of Coal Supply Agreements with regard to lodging and realisation of claims against coal companies for stones / extraneous materials and excessive moisture content, if any. Examine whether payments are accordance with the provisions agreements. released strictly in of the coal supply
j)
k)
l)
Examine whether the procedure as specified is complied with for ascertainment of the weight of coal at the receiving end. Verify whether calibration of the equipment used for such weighment is being done periodically. CONSUMPTION: Assess the adequacy of the system of obtaining the figure for Fuel Consumption and the circumstances in which any alternative methods are used. Test check entries in Fuel Register from records of gravimetric feeder belts readings, delivery advices or other records. Examine whether periodical calibration of gravimetric feeder belts is being carried out. Enquire into and record explanations for adjustments made to weigher readings or other records.
m)
B. a)
b)
c)
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d)
Confirm that there is a satisfactory method for calculating and adjusting for changes in bunker stock levels. RECORDS: Test check posting of fuel delivery advices into station fuel records. Test check posting of coal deliveries in the stock register. Ascertain figures for coal in transit. record, any long outstanding items. Enquire into and
C. a) b) c) d)
Examine whether physical stock verification is being done in accordance with the system laid down in this regard and that discrepancies found on such verifications are being investigated into. Check the quantities in SRVs with reference to station fuel records.
e)
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INTERNAL CONTROL QUESTIONNAIRE: COAL 1. GENERAL:
(1.1) Obtain diagrams of coal plant and stocking areas including directional diagram of conveyors and location of weighing and sampling equipments. (1.2) Ascertain the organisation of the fuel section:
2. R ECE I PTS :
SL.No (2.1)
Particulars Is coal received by a) water transport b) Road c) Railway wagons d) Merry Go Round Systems Is coal received from Collieries or other suppliers? Is all coal weighed on [complete weighbridge questionnaire]? Govt. receipt control
Yes
No
Comments
(2.2) (2.3)
(2.4)
Are visual checks for contents of delivery vehicles undertaken both before and after delivery? Are regular checks undertaken in order to verify the security and accuracy of the weighing system? Is an individual record of advised delivery kept? Are such records checked against weighment tickets for all deliveries? Are all differences recorded? Are claims made weights/deliveries? Are all such claims proper conclusion? in for pursued weights shorts to a
(2.5)
(2.6) (2.7) (2.8) (2.9) (2.10)
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Sl.No (2.11) (2.12)
Particulars Are price bulletins received and that these are used for checking prices charged? Are there procedural instructions regarding the collection of coal samples? Have arrangements been made to ensure that adequate numbers of representative samples have been taken from all sources of supply? Are the results of sampling evaluations correctly and promptly advised to Coal Efficiency Cell under the O&M Deptt. of the project.
Yes
No
Comments
(2.13)
(2.14)
3.
CONSUMPTION:
Particulars Are figures for coal consumed obtained from belt-weigher readings? Are belt weighers maintained and checked? regularly Yes No Comments
Sl.No (3.1) (3.2) (3.3) (3.4)
Are adjustments made to weigher readings, properly authorised? Are bunker stock levels taken into consideration in determining the amount of coal consumed? Is there a satisfactory method for accurate assessment of bunker stock levels?
(3.5)
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4.
RECORDS:
Particulars Is information from prime documents like invoice/delivery advices posted promptly to memorandum coal records? Are coal receipts and consumption accounted for in accordance with the laid down procedures? Are records maintained which show quantity of coal-in-transit? Is there a system for ensuring that claims are lodged for all long outstanding items? Are records maintained to enable wagon standage or other extraneous charges to be checked? Are memorandum coal records reconciled with Coal Stock A/C in the Financial Ledger at the end of each Financial Review period? Yes No Comments
Sl.No (4.1)
(4.2)
(4.3) (4.4)
(4.5)
(4.6)
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5.
STOCKS:
Particulars Are coal stocks physically verified at frequent intervals? Is there an official annual stock verification independently? physical arranged for Yes No Comments
Sl.No (5.1) (5.2)
(5.3) (5.4) (i) (ii) (5.5)
Is there a prescribed method determining stock densities?
Are densities determined independently of the location? During official annual verification During other verifications. Are quantities as established by physical verification compared with book stocks? Are stock discrepancies investigated and adjusted in the books after approval of Competent Authority?
(5.6)
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OPERATIONS LIQUID FUELS A. RECEIPTS:
a)
Ensure that the procedure being followed in respect of receipt, unloading, issue and accountal of liquid fuels is in conformity with the system laid down in this regard. Scrutinize the available documentary evidence to ensure that proper checks on quantities have been undertaken as mentioned in the above-mentioned circular at the location in respect of all methods of delivery and ensure that receipt documents have been duly signed by appropriate employees. Where weighment has been undertaken, test, deliveries with weigh tickets and test check conversion of weights to volume. Consider whether the conversion factor used is appropriate. Examine tare weights of similar vehicles for inconsistencies. Test check, for each method of delivery, suppliers advice/delivery notes against meter readings, record of tank dips, vehicle capacities or other available evidence. Confirm that any differences in volume have been recorded and the reasons ascertained. Verify that all delivery advices have been signed, both on behalf of NTPC and of the suppliers, at the points of discharge. Compare quantities advice notes. shown on suppliers invoices with
b)
c)
d)
e)
f) g) h)
Test Check prices charged with suppliers agreed prices. Examine records relating to claims for short weights/deliveries, missing wagons and the temperature Variance. Ascertain whether all such claims have been pursued to finality. Investigate and report on cases where not done. In case of claims against railways not settled within the period prescribed under rules, examine whether these claims have been taken up for approval to the railway claims tribunal.
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i)
j)
Ascertain the adequacy and integrity of the sampling procedures. Check that appropriate action has been taken where quality differs from specification. Calculate the GCV on receipt basis and compare it with GCV on fired basis. Witness the delivery procedures for weighing, discharge, measurement and sampling of oil and comment on findings. To check the implementation of provisions of Purchase Orders with regard to lodging and realisation of claims with oil companies for shortages etc. Examine whether payments are released strictly accordance with the provisions of the Purchase Orders. Check the reconciliation of accounts with oil suppliers. in
k)
l) m)
a)
Assess the adequacy of the system of obtaining the fuel consumption figure and the circumstances in which any alternative methods are used. Test check entries in Fuel Register from records of meter readings or other available records. Enquire into and record explanations for adjustment made to consumption records. Ascertain that each grade of oil has only been used for the purpose for which it was purchased. Test check postings of delivery advices to station fuel records and Priced Stores Ledgers. Test check valuation of SRVs with reference to base records. Test check allocation between oil used for generation and for non-generation purposes. Ascertain figures for oil in transit. Enquire into and record any long outstanding items. Enquire into and verify all price adjustments. Enquire into reasons for any extraneous charges raised.
B.
CONSUMPTION:
b) c) d)
a)
C.
RECORDS:
b) c) d)
29
e)
Reconcile Ledger Balance of Oil Stock Account at the end of the previous review period with the Memorandum Oil Records. Examine records relating to wagon standage and other extraneous charges. Enquire into reasons for excessive expenditure/charges.
f)
a) b)
Examine records relating to stock verification. Ensure that all stocks have been surveyed. Ascertain the method of determining stock density and confirm that the method and figures have been arrived at as per the guidelines issued by Corporate Centre. Check conversion of volume and density to weight and relate the same to book stock figure. Check that physical verification results have been sent to officials concerned at Corporate Centre. Confirm that appropriate adjustments are being made where the stock as verified differs significantly from the book stock, after approval of the Competent Authority.
D.
STOCKS:
c) d) e)
30
INTERNAL CONTROL QUESTIONNAIRE: LIQUID FUELS

1. GENERAL:
(1.1) Obtain details of grades of oil stocked and the purpose for which each grade is purchased. (1.2) Obtain details of storage tank capacity, flow diagrams, measuring devices and relevant working instructions.
2.
DELIVERIES:
Particulars Is oil received by : (a) Road (b) Rail (c) Pipeline (d) Water. Is more received? than one grade of oil Yes No Comments
Sl.No (2.1)
(2.2) (2.3) (2.3.1) (2.4) (2.5) (2.6) (2.6.1) (2.7)
Is each delivery checked as to the commodity to be discharged? Does this agree with that entered on the delivery advice? Are all inlet points clearly marked as to the grade of oil to be off-loaded? Are all inlet points kept locked when not in use? Are deliveries made into an isolated storage tank? Are storage tank levels taken both before and after delivery? Control checks: Are deliveries checked with capacities of delivery vehicles? Are dipstick readings for all compartments checked from the top of the delivery vehicle/tanker?
(2.8)
31
Sl.No (2.8.1) Sl.No (2.9) (2.10) (2.11)
Particulars Are records of such readings maintained? Particulars Are delivered quantities metered? Are vehicles check-weighed, gross [before] and tare [after] delivery? Are suppliers delivery advices checked for conversion of weights/volume determined above? Have the correct conversion factors been used in making the above checks? Are differences in quantities recorded, compared with invoices and claims made for shortages? Are all such claims proper conclusion? pursued to a
Yes
No
Comments
Yes
No
Comments
(2.11.1)
(2.12)
(2.12.1) (2.13)
Are notifications of price chargeable received from the appropriate departments? Are these used for checking prices charged? Are samples collected in accordance with the procedures laid for evaluation against specification? Are the results of sampling evaluations recorded and checked against the specification? Are any differences advised promptly to the supplier? Are all such differences pursued to a proper conclusion?
(2.13.1) (2.14)
(2.15)
(2.15.1) (2.15.2)
32
Sl.No Particulars Yes CHECKS APPLICABLE TO ROAD BORNE VEHICLES : (2.16) Are vehicle discharge open after delivery? valves left
No
Comments
CHECKS APPLICABLE TO RAIL DELIVERIES: (2.17) (2.18) Is it ensured that each tank car is appropriately documented on arrival of train? Is train documentation collected for comparison with consignment advice notes?
CHECKS APPLICABLE TO PIPELINE DELIVERY: (2.19) (2.20) Are appropriate meters maintained to an approved standard? Are meter readings checked before and after delivery and are reconciled with advised quantities?
3.
CONSUMPTION:
Particulars Is consumption determined by: a) Meter readings. b) Changes in tank level. Is all metering equipment regularly maintained, checked and the results of such checks recorded? Are any adjustments consumption records authorised? made to properly Yes No
Comm en ts
Sl.No (3.1)
(3.2)
(3.3)
(3.4)
Are there adequate methods for determining quantities consumed other than by generation?
33
4.
RECORDS:
Particulars Is information from prime documents i.e. invoice/delivery/ advices, posted promptly in the memorandum oil records? Are records maintained which differentiate between oil used for generation and oil consumed for other purposes? Are records maintained which the quantity of oil in transit? show Yes No
Comm en ts
Sl.No (4.1)
(4.2)
(4.3) (4.4)
Are memorandum oil stock records reconciled with oil stock account in the Financial Ledger at the end of each Financial Review Period?
(4.5)
Are physical stocks reconciled with memorandum oil stocks at stated intervals [indicate frequency]? Are all differences Recorded? explained and
(4.5.1) (4.6)
Is supplier responsible for all costs of operating/maintaining the pipeline? [Refer to appropriate contract]?
34

OPERATIONS FUEL GAS
a) Check whether the purchase of gas has been accounted and paid for on the basis of properly authenticated meter readings and records. Compare the standard heat rate level of gas indicated by suppliers modified to local site conditions with actual heat rate achieved. Analyse and comment on variances. Comment on the follow-up with suppliers. Ascertain the number of instances of payment of Minimum Guaranteed Off-take (MGO) charges paid to GAIL due to short consumption of gas and examine the corrective action taken to reduce such cases. Compare the standard norms of generation based on standard consumption of gas with actual generation achieved at actual consumption of gas. Highlight cases of systems losses/ deficiencies. Examine and comment on the standby arrangement made by the project to stock substitute fuels like NAPTHA / HSD. Ascertain instances of loss in generation due to restrictions and non-availability of gas. Examine comment on corrective action initiated. Gas supply agreements provide for measurement of supply as well as computation of calorific value provide for certain rebates. In case calorific value of supply is lower, examine whether the provisions actually being implemented. grid and gas and gas are
b)
c)
d)
e) f)
g)
h) i)
Verify the method of computation of the Net Calorific Value (NCV) of gas used for the purpose of billing. Test check the payments for pipeline maintenance and operation in accordance with the relevant contract.
35
j) Examine meter records maintenance for frequency of checks and ascertain that corrective action has been taken where necessary.
36
STATEMENT OF FUEL PARTICULARS

COAL/LIQUID FUEL /GAS/NAPHTHA
S.no A. Description STOCK POSITION AS ON: 1. 2. 3. 4. 5. B. Opening Balance Receipts Consumption Closing Balance Handling Loss Unit
Q u ant i t y
Value
MT/KL - do- do- do- do-
ANALYSIS OF GCV 1. GCV on Receipt Basis 2. GCV on Fired Basis 3. Variation

KC AL/Kg KC AL/Kg KC AL/Kg
C.
COMPARISON WITH TARIFF 1. Heat Input from Coal/Gas/ Naphtha 2. Cost per MT/KL/SCM 3. Heat Rate from Coal /Oil/ Gas/Naphtha 4. Tariff Norms for Coal/Oil/ Gas/ Naphtha 5. Variation KCAL/Kg KCAL/ML Rs. Kg. /Kwh ML/Kwh Kg. /Kwh ML/Kwh -- do --
D.
COAL/OIL/ COST 1. Recovery through Tariff 2. Actual Cost [consumption] 3. Over/under recoveries
R s. / L ak h - - d o -- - d o --
- --- --- --- -- --- --- --- -- --- --- --- -- --- --- --- -- --- --- --- -- --- --- --- -- --- -
Note: The Statement may be prepared separately for coal, oil (including naphtha) and gas.
37
NOTES
1. Ensure that all Weightometers are kept under working condition and defective Weightometers are rectified or replaced. 2. Calibrate the Weightometer readings for each Mill at least once in a month. 3. Determine the correction factor and apply 50% of Correction factor for coal consumption recorded between two consecutive calibrations for computing the correct coal consumption through that Mill. 4. Compute pro-rata coal consumption for the Weightometer going out of order with the readings of adjacent Weightometers of the same boiler as base.
38

ACCOUNTS
A. VERIFICATION OF VOUCHERS
a)
Verify all the vouchers are signed by two persons, one of whom shall be an executive authorised to approve the voucher. Verify whether adequate genuine supporting documents are enclosed with the payment vouchers. A sample list of supporting documents which can be enclosed is as below : i) ii) iii) iv) Invoice copy and copy of P.O in case of purchase orders. Approval of Competent Authority and relevant bills in case of miscellaneous payments. Copy of payment order recorded in the measurement book in case of works payments. Sanction Order or advance application duly approved in case of employee advances
b)
c)
Verify whether the word authorised for payment is being included in the place of approved by in the format of Cash & Bank Payment Voucher. Verify whether name of the party in whose favour DD is to be drawn or the number of LSC are mentioned on the cheques drawn for obtaining DD or LSC for e.g. Yourselves LSC No.1234 Yourselves DD in favour of BHEL
d)
e)
In case of miscellaneous payments in foreign currency, the instruction letters to the Bank shall be entered in a control register after being control serially and on receipt of DD or debit advice from the bank the same should be crossed checked with the control register. Verify whether the same procedure is being followed.
39
f) g)
Verify whether adjustment vouchers for other direct debits than commission/ bank charges, interest, conveyance charges and LC payments are approved by HOD(Finance). Verify whether the Indian agents commission under foreign LCs are paid against the claims submitted by the party and bill submitted by the Materials Deptt./Contracts Deptt. Verify whether the payers name mentioned in the bank receipt voucher prepared by the concerned department is as per the receipt scroll. Verify whether the payment of any liability unpaid for more than three years has the approval of the Head of Project. Examine whether all the Cash / Bank Payment Vouchers are serially numbered. Examine whether the Bank Adjustment Vouchers are also supported by genuine documentary evidence in addition to advices from Banks. Verify the accuracy of the amounts directly debited to the bank account. (Example: whether proper exchange rates/ commission have been applied, name of the beneficiary being mentioned etc.)
h)
i) j) k)
B.
(a)
CASH / BANK
Examine whether the Cash Tally daily before closing of the cash physical cash balance tallies with book. Verify whether the cash approved by Competent Authority. Sheets are being made book to ensure that the the balance as per cash tally sheets are being
(b)
Verify whether the system of surprise cash verification is being followed or not. The internal auditor should also conduct surprise cash verification on one day during each phase of internal audit. Examine and comment whether cheques Inward Outward Register has been maintained properly. Review the insurance currency of coverage. cover of cash for adequacy and and
(c) (d) (e)
Examine whether Cash Payment Vouchers and Bank Payment Vouchers have been approved by competent authorities and
40
they contain the signatures of two executives as provided in the Financial Accounting System Manual. (f) Examine whether the cash and bank balances being maintained by the unit are in excess of normal requirements of the unit. Examine whether the unit is maintaining LC margins with banks in violation of instructions issued by Corporate Centre. Verify that the unit is conforming to Corporate Finance Circular with regard to the custody and issue of unused cheques conforming to the following: i) ii) iii) iv) All cheque books drawn from the banks should be entered in the register maintained for this purpose. All cheque books should be kept in the cash chest and handled by the cashier/accountant and the officer in charge of the cash and bank section. Section in-charge of the cash and bank section shall conduct checks from time to time of the safe keeping and record of unused cheque books. The cheques must be kept in a place of security under lock and key. It is advised that it is periodically verified whether all unused forms are intact and promptly intimated to the bank the loss, if any, of the unused cheque forms / cheque requisition slips. The cheques contained in the cheque book shall be counted before using any of them. At the time of closure or transfer of bank account, all unused cheques and cheque book requisition forms should always be returned to the bank after cancelling them. Indelible ink/ reverse carbon / cheque protectograph / pinpoint typewriter should be used wherever possible to prevent unauthorised alterations. Blank cheques should not be given to anyone. All alterations on the cheques must be confirmed by the full signature of the drawer.
(g)
(h)
v) vi)
vii) viii) ix) (i) (j)
Examine whether the payments by Demand Drafts have been approved by competent authority. With regard to Bank Reconciliation, verify the following: i) That Bank reconciliation is being done during the first week of the following month.
41
ii) iii) iv) v)
Whether all debits and credits made by the bank have been duly identified and accounted. Examine the amounts debited by Banks towards L/C charges etc. are in line with the applicable rates. Examine whether there is undue delay in realization of cheques deposited in the Bank. Comment on old outstanding items along with reasons.
C.
W OR KS A C COU NTS
While conducting the audit internal auditors should verify the following:
(a)
Whether release of initial advance, mobilisation advance, secured advance, advance against materials brought to the site by the contractor, have been released with reference to the terms and conditions of the contract and with the approval of the competent authority after it has been duly signed by the Engineer In-charge.
(b) Test check of the running accounts bills with reference to the Measurement Book. Test check the computation of the quantities mentioned in the Measurement Book. (c) Test check the amount due with reference to the rates provided for the LOA/billing break-up and quantities mentioned in the Measurement Book. (d) Whether the payments are released after obtaining time extension where needed. (e) Recovery of various advances like initial advance, mobilisation advance, interim advance, materials brought to the site etc. (f) Reasonableness of the insurance coverage as per the terms of LOA and indemnity bonds by the contractor, to cover the value of material issued to them.
(g) Review the bank guarantee (B.G) register and identify cases of expired B.Gs. (h) Report on the lapses of action taken for the revalidation of the expired B.Gs. or lodging and realisation of the claim before expiry of the BG.
42
(i) (j)
Highlight the details of the cases where recoveries could not be effected due to inability to invoke BG. Payment of account of escalation and extra claims due to (i) (ii) (iii) (iv) Changes Changes Changes Changes in in in in items rates/duties/Taxes quantities executed. scope of work payment terms
(k) That final payments have been made after Performance Guarantee (P.G) test and payment of erection price/civil works in line with letter of award, general conditions of the contract and have been made after obtaining necessary approvals. Also verify that material reconciliation statement has been prepared and necessary recoveries have been effected before releasing the final payments. (l) Posting of materials issued on loan account, free issue material from the Issue Journal.
(m) Whether sub ledgers (contractors advances, materials issued on loan and free issue material) are tallied with general ledger. Old outstandings should be reported. (n) Whether adjustments are being made from the running bills on account of materials issued on loan.
(o)
Whether monthly statement recovery on account of hiring of construction equipment, rental and electricity charges towards accommodation given to the contractors on chargeable basis and hospital charges are being received from the respective department and the same are being recovered from the contractor. List out old outstanding and comments on the same.
(p) Wherever Liquidated Damages (L.D) leviable on the contractor on account of delay in completion of the works/deviation from the prescribed performance meters has been waived, whether the reasons recorded for waiver are justifiable. (q) Whether income tax/works tax is deducted at source as per the prescribed rates and the same is being deposited in time. Whether TDS certificates are being issued as per the provision of the Income Tax Act.
43
(r)
Whether all provisions for expenses and capital liabilities have been duly made on the basis of proper documentation. Comment on cases of over or under provisions.
(s) whether all deposits like EMD, security deposits etc. have been maintained properly and reconciled with the General ledger (highlight old cases outstanding). (t) Whether the security deposits have been released as per the terms and conditions of LOA and necessary approvals have been obtained from the Competent Authority. (u) Review the Work-in-Progress (WIP) register and point out old cases where the work was abandoned long ago. Further, review whether O&M works are included in capital works.
D.
SUPPLIERS BILLS ACCOUNTS

audit, internal auditors should verify the
While conducting following:
a) Whether release of advance against Purchase Orders (P.Os) is as per terms of the P.O. b) Wherever payments are being made against documents through bank, whether advance documents have been cleared by the Materials Management Deptt. and they are in conformity with the P.O.
c) Final / Balance payments are released on the basis of the

invoice of the party supported by the SRV to the extent of accepted quantity .
d) Whether suppliers ledger is tallying with general ledger. e) Test verification of the posting into suppliers ledger. f) Whether material under inspection (MUI) and Material in Transit (MIT) matches with general ledger. Report old cases.
g) Whether C form/LST register is being maintained. abnormal cases are to be reported .
Any
h) Include the list of the cases where higher rate of sales tax has been paid due to non-issuance of C form, in the report.
44
i) Whether the claims for material rejection are being followed up. Old cases are to be reported. j) Wherever shortages are noticed, whether marine insurance claims are being lodged promptly and followed up for settlement. List of non-settled claims should be reported. k) Test check the entries in security deposit account, EMD account and Retention Money account and review the subledger and report old outstandings. l) Whether reasons. waiver of liquidated damages is on justifiable
m) Where guarantee clause is provided in the P,O in respect of certain spares/equipment like grinding rings, etc., whether claims are being lodged on the suppliers and the same are being followed up for realisation.
n) Adjustment of the advance against supplies and report on the

old advances.
E.
STORES P.S.L
audit, internal auditors should verify the
While conducting following:
a)
Test check whether Stores Receipt Vouchers (SRVs) and Stores Issue Vouchers (SIVs) are being controlled properly with reference to stores records. Test check the SRV valuation. Verify whether final adjustments have been carried out wherever SRVs are valued provisionally. Report on odd balances quantity without values, value without quantity and negative balances. Report on the instances of purchases made in spite of having inventory. Report on the variations in rates of a particular item purchased on different dates in the period under review. Whether physical verification has been conducted covering sufficient number of items as per the MAOCARO Order,
45
b)
c) d) e) f)
1975. Whether provisions have been made for the discrepancies observed on physical verification. Also verify whether the provisions have been finally adjusted on completion of investigations, with the approval of the Competent Authority. Abnormal cases should be pointed out.
g) h) i)
On test check of Issue Journal, whether capital items are being included in the repairs and maintenance expenses. Whether inter-unit debits for materials transferred to other projects have been raised immediately. On test check basis, whether all the issues not pertaining to any specific cost centre are finally accounted for.
F.
ESTABLISHMENT ACCOUNTS
Internal audit should ensure in all cases that the sub-ledger balances match the general ledger figures in all cases. All cases where such balances do not match should be reported. While conducting audit, internal auditors should verify the following with regard to the respective heads:
a)
SALARY
i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) Test check of salary with attendance records. Checking of reconciliation with HR records for additions/ deletions. Test check of pay fixation. Test check of certificate for expenditure incurred on conveyance/lease maintenance etc. Test check of deduction of HR lease. List out the salary advances outstanding for more than six months. Test check of LPC in the salary records. Test check of salary with the personal file. Examine whether all the leave encashment paid have been approved by the Competent Authority. Examine whether all Overtime / incentive payments have been approved by the Competent Authority. Test checking of salary bill and verify whether correct TDS has been deducted as per Income Tax Act and has been deposited in time. Whenever an employee is relieved on transfer, it is to be ensured that the unit has issued the LPC immediately. It is also to be checked that whenever an employee is relieved on transfer, the
46
xii)
advances outstanding against his name should be sent through Inter-Unit immediately. Examine whether PF deductions have been deposited with Corporate Centre regularly and the same has been reconciled at regular intervals.
b)
T.A. ADVANCE
i) ii) iii) iv) Verify the advance is released with the approval of competent authority. Test check of T.A. bills. Where an earlier advance is still outstanding, Verify whether a subsequent advance has been released with the specific approval of Competent Authority. List out the advances outstanding for more than six months.
c)
LEAVE TRAVEL CONCESSION
i)
ii)
d)
Test check of LTC bills. Test checking the cases of medical and LTC payments made to the dependents of the employee to verify whether they have been paid as per the new definition of family. List out the advances outstanding for more than one year.
MEDICAL
i) ii) iii) iv) v) vi)
Test check of medical bills. Test check of medical bills with reference to the dependants. Test check of direct payment to hospitals. Test check of TDS deducted and deposited in time from hospital bills. Test check of TDS deducted and deposited in time on payment in excess amounts specified in the Income Tax Act. List out the advances outstanding for more than six months.
e)
TRANSFER T.A.
i) ii)
Test check of Transfer T.A. bills. List out the cases of outstanding for more than three months.
47
f)
STAFF ADVANCE
i) ii) iii)
Test check of advances released with the approval of Competent Authority. List out the cases outstanding for more than six months. List out the cases where more than one advance is outstanding.
g)
NEGATIVE SALARY
i) ii)
List out the cases of negative salary and interest thereon if applicable. List out the cases where negative salary is repetitive every month.
h)
ADHOC SALARY ( ACCOUNT CODE 752129 )
i) List out the advances outstanding for more than one month.
j) HBA VEHICLE ADVANCE/ COMPUTER ADVANCE
i) ii) iii)
Test check the release of advances with proper documentation and approvals. Test check the timely recoveries. List out the cases where recoveries are not been effected from the due date.
k) MULTIPURPOSE ADVANCE/ FURNITURE ADVANCE/ CYCLE ADVANCE
i) ii) iii)
Test check the release of advances with proper approvals. Test check the timely recoveries. List out the cases where recoveries are not effected from the due date.
been
l)
i)
INTEREST ON ADVANCES
Test check the monthly calculation of interest on all the interest bearing advances.
48
m)
MISCELLANEOUS BILLS
i) ii) Test checking of bills. Test checking of bills and verifying that proper TDS has been deducted and deposited in time.
G.
COMMERCIAL ACCOUNTS
verify the
While conducting audit, internal auditors should following with regard to the respective items:
I)
a) b) c)
COAL
Payments are being released for the supply of the coal on the basis of SRV duly supported by weighment records. Payments are being released with reference to terms conditions of the coal supply agreement. and
Whether stones are being segregated and claims are being lodged on the coal supply companies for receipt of coal of size more than 200 mm and adjustment of the same while releasing the payments. Claims for variation in moisture content are being lodged on the coal supply companies. Regular joint sampling is being done for assessment of the grade of coal and joint analysis report is being exchanged with the coal companies. Wherever the grade varies from the declared grade based on which the payments have been released against invoices, whether suitable adjustment have been made for such variations. Proper claims are lodged on the railways for missing wagons and they are being settled regularly with railways. Review the sub ledger and point out old cases if any. Further if the claims are not settled within the time stipulated in the relevant rules, whether claims are being lodged with Railway Claims Tribunal. Review the reconciliation of accounts with coal suppliers and verify whether provisions have been made for the claims of coal suppliers.
d) e)
f)
g)
h)
49
II)
a)
COAL PSL
whether SRVs are being valued on the basis of payments released, adjusted for the credits received for excess moisture content and oversized stones etc. Further, verify whether the quantity of stones and excess moisture content are being adjusted against receipt quantity. While valuing SRV the cost of stone picking, handling charges, cost of diesel issued for MGR locos, loco drivers salary and other direct costs incurred upto the stage of coal firing are being included in the SRV cost. Shortages/excesses on physical adjusted in the PSL with the authority. verification approval of are being competent
b)
c)
d)
Whether stocks are being held as per tariff norms.
III) LIQUID FUELS

a) b) c) d) e) Payments are being released on the basis of and SRV. invoices , PO
Proper claims are lodged for missing wagons and are being claimed and pursued for settlement like in the case of coal. Test check the SRV valuation. Whether stocks are being held as per tariff norms. Review the reconciliation of accounts with liquid fuel suppliers and verify whether provisions have been made for the claims of suppliers. Shortages/excesses on physical adjusted in the PSL with the authority. verification approval of are being competent
f)
50
IV)
a)
GAS
Payments are being released as per the invoice of gas companies duly supported by the records of joint meter readings as per the provisions of the gas supply agreement. Whether the premiums/rebates in the basic price and transportation charges of gas supplies, due to variation in the Net Calorific Value (NCV) of gas, are as per the gas supply agreement. Report whether any Minimum Guaranteed Off-take (MGO) charges are being paid and if so, how the same are being treated in the PSL and recovered from the beneficiaries through tariff. Necessary TDS is being deducted as per the Act and is being deposited in time.
b)
c)
d)
V)
a) b)
FUEL PRICE ADJUSTMENT IN RESPECT OF ALL FUELS

Test to verify the conclusion of fuel price adjustment. If the site is paying any taxes and duties like water cess etc. which are reimbursable by beneficiaries separately in terms of Power Purchase Agreement/Tariff notification, the relevant information is being sent to regional headquarters /billing centres for raising necessary bills. Report also whether such bills are being raised and realised.
VI) OPERATING RESULTS

a) Review of financial results for the period under audit. Compare the actual profits with the budgeted profits and analyse the profits as shown below: Profit variance due to variance in tariff: (budgeted tariff per kWh actual tariff per kWh) * actual generation Profit variance due to variance in generation: (budgeted generation - actual generation) * budgeted contribution per kWh.
(i)
(ii)
51
(iii) Profit variation due to variance in heat rate from each source of fuel (i.e., coal, oil or gas): (budgeted heat rate - actual heat rate) * budgeted cost per KCal from that source. Profit variation due to variance in auxiliary consumption: {(budgeted percentage of auxiliary power consumption * actual generation) actual percentage of auxiliary power consumption * actual generation ) } * budgeted variable charges recovery per kWh. In the case of gas projects, the variance may be reviewed separately for open and combined cycle operation. Expenditure variance: following format: Budget To be reported in the
(iv)
(v)
Rs/Lakh Head of Exp Reasons Employee Cost Repairs & Maintenance Station and other Overheads Interest & Finance Charges Depreciation Total Fixed Charges in tariff Variation due to non-operating income: (actuals budget) Actual Variance Main
(vi)
52
H.
a)
REVIEW OF GENERAL LEDGER AND SUB-LEDGER

Examine whether the balances in the control accounts in the General ledger have been duly reconciled with the subledger balances. Review and comment on old balances appearing in the General Ledger. Examine whether the accounting treatment followed by the unit for accounting of mandatory spares, furniture, fixture and scrap is proper, reasonable and in line with the accounting policy. Units have to obtain confirmation and prepare statements of reconciliation of balances as on 31st December of the financial year under advances, debtors (including those due from State Electricity Boards), creditors and materials in transit / under inspection and with contractors/ fabricators. Further they have to carry out adjustments in the Books of Account upon such confirmation/ reconciliation of balances under the above heads. In this context, accounting units shall analyse the advances, claims, materials under inspection, materials in transit, materials with contractors / suppliers / fabricators etc. into (1) good and fully recoverable, (2) requiring adjustment entries to be passed, (3) doubtful of recovery to be provided for and (4) bad and to be written off with supporting documents / explanations and reasons as for each and every account. The analysis will be of the accounts as per the ledgers and schedules to the accounts as at 31.3.2001. Internal auditors are required to vet the analysis statements prepared by the units and submit their re port on the same to the Corporate Internal Audit Department along with the Phase I Internal Audit Report.
b) c)
d)
e) f)
Test check the entries in the General Ledgers and SubLedgers with basic vouchers for at least one month. Status of contingent liabilities mentioned in the balance sheet should be reviewed and reported on. latest
53
g) h)
Whether supports are available for all inter unit debits and credits along with confirmation of balances. Whether all debits and credits from Corporate Centre and other projects on account of initial advance, customs duty payments, advances on account of transferred employees and transfer of materials are raised in time, with full supports. In respect of fire insurance, whether all the claims have been lodged with reference to primary records. Valuation of the claims should be verified. Comment on shortsettlement of the claims and old outstandings. Ascertain whether all relevant accounting standards are being followed by the unit and comment on the same. With regard to the Fixed Assets Register, internal audit should verify the following: i) ii) iii) Examine whether segregation of assets leading to the main classification has been properly done. Whether all columns in fixed assets register have been duly filled up separately for each asset. Verify whether physical verification of fixed assets has been done in accordance with the system laid down in this regard. Whether adjustments on account of discrepancies observed on physical verification and sales/adjustments have been properly reflected in conformity with MAOCARO (1988) Whether fixed asset register has been reconciled with General Ledger. Whether procurement and other related costs have been properly identified with the respective assets.
i)
j) k)
iv)
v) vi)
54
I.
LOAN ACCOUNTS
Internal auditors should verify the following with respect to all loans taken by the company:
1. TERMS OF LOANS: To verify the following from loan agreements:
i) ii) iii) iv) v) vi) vii) viii)

2.
Loan amount. Drawl Schedule & Terms & conditions of drawl. Project and specific packages to be funded out of loan. Instructions for filing of claims (time period). Dates of Payment of Agency Fee/ Management Fee/ Upfront Fee. Dates of payment of Commitment Fee. Interest payment dates. Repayment schedule and repayment dates. After verifying the above from the loan LOAN DRAWALS: agreements, check the following in respect of each loan:
Drawals have been made as per schedule. Drawals have been made as per the terms & conditions and for the packages mentioned in the loan agreement. iii) Loan Register has been updated after each drawal iv) Accounting entries have been passed for each drawal. v) Quarterly reconciliation of the account has been done with the lender.
3. PAYMENT OF AGENCY FEE/MANAGEMENT FEE/UPFRONT FEE: Terms of
i) ii)
the loans may involve any or all of the above mentioned fees. Internal auditors should verify that: i) Payment is made as per Loan agreement. ii) Payment has been made on time. iii) Verification of exchange rate debited as per Bank advice with bid rate. iv) Adjustment entry has been passed. v) Loan ledger has been updated. vi) Adjustment entry has been passed for accrual.
4.
i) ii) iii) iv) v) vi)
DEBT SERVICING: INTEREST PAYMENTS: Verify that:

Interest is calculated as per loan agreement. Payment has been made on time. Verification of bid rates with exchange rate charged in the bank advice. Adjustment entry has been passed. Loan ledger has been updated. Adjustment entry has been passed for accrual.
55
5.
i) ii) iii) iv) v)
DEBT SERVICING: REPAYMENT OF LOANS: Verify that:

Repayment amount is calculated as per loan agreement. Payment has been made on time. Verification of bid rates with exchange rate charged in the bank advice. Adjustment entry has been passed. Loan ledger has been updated.
6.
i) ii) iii)
EXTENSION OF LOAN AGREEMENT: Verify that:

Loan drawl is a per schedule. Extension is taken with the approval of competent authority. If extension is taken due to the delay on the part of the supplier then charges are paid by the supplier.
56

STORES DEPARTMENT
A. DOCUMENTATION / PROCEDURES:
a) Examine whether materials inward slip (MIS), materials inward register (MIR), discrepancies register and SRV control register are being prepared and maintained as provided in the Inventory and Stores Manual. Comment on old outstanding items. Examine whether a proper serial control exists over all SRVs and SIVs. Examine and comment on cases of old SRVs pending along with reasons. Examine the follow up maintained in regard to receipt and recording of material in transit of earlier years. Review and comment on the reasonableness of number of old cases of materials rejected upon inspection where 100% advances have been released. Examine and comment on the follow-up maintained with suppliers in these cases. Examine the status of stock verification in line with the Corporate Circular on the subject and for conformity to MAOCARO (1988). Examine whether the discrepancies observed on physical verification have been investigated and adjusted with due approval of competent authority. Comment on investigation pending along with the reasons. Examine and comment on the system of identification and disposal of surplus, non-moving, obsolete and scrap items at periodical intervals. Examine and comment on adequacy of the steps taken for collection of sweep cement.
b) c) d) e)
f) g)
h)
i) j)
k)
57
l)
Reconciliation of PSL balances with Bin Card Balances.
B. CLAIMS
a) Examine whether all claims on railways, marine and other insurance, including the insurance suppliers that ought to have been lodged with reference to primary records of receipt of materials at site have been lodged in time. Comment on cases of delays. Examine the realisation of the above-mentioned claims. Examine whether detailed claim-wise registers have been maintained, with adequate follow up of all claims. Examine the basis adopted for valuation of all claims and ensure that the same is in order, vetted by finance and incorporated in time in the books of accounts. Examine whether all doubtful claims have been identified and written off with the requisite approval. Tally the claims reflected in finance books with the claims as indicated in the Materials records. Review the adjustment of short realised claims in the books of accounts. Review the old outstanding claims and comment on the outstandings on this account.
b) c) d) e)
f) g) h) i)
58

HUMAN RESOURCES DEPARTMENT
While conducting the audit internal auditors should verify the following: a) b) c) d) Earned Leave account and Half-pay Leave account Sanctions of leave encashment Sanctions of Leave Travel Concession To verify original documents hypothecation deeds etc. RC sanction and release of Conveyance Advance, Furniture etc. Internal audit should cover such as mortgage deeds, books, in connection with House Building Advance, Advance, Computer Advance at least 50% of all cases.
e) f)
Procedure for booking of tickets and claims on cancellation of the tickets Cases of pay fixation
59

TOWNSHIP
a) Examine the applications for allotment of houses and ensure that employees particulars have been verified by personnel department. Verify the allotment made with reference to rules and for approval by competent authority in case of allotment to both outsiders and employees. Verify the entry for recoveries due from the date of allotment and ensure that recoveries have been made from the date of occupation by the allottees, comment on the recoverability aspect of the amounts outstanding from employees not on the rolls as well as outsiders. (i) Test check computation of electricity and water charges for recovery from employees and others and ensure that recoveries have been made from employees and others in time. (ii) Comment on outstandings on this account. e) (i) Verify the cases of vacation of houses and premises by employees and outsiders with the vacation slips and ensure that fittings etc. have been duly verified by the Administration Department. (ii) Verify the recoveries in case of shortage/breakage etc. (iii) Verify the recoveries due on account of electricity and water and ensure that in all cases of vacation, recoveries have been effected before issuing vacation slips. f) (i) Trace the cash/bank receipt on this account into the daily collection statement. (ii) Highlight the cases cash/bank receipts. of delays in the accounting of
b)
c)
d)
(iii) Trace the entries in the daily collection statement into the township recovery statement and the General Ledger. g) IMPREST ACCOUNTS:
60
(i)
Examine whether statements of account have been rendered in time by the imprest holder/s and that the same has been approved by competent authority. Whether proper vouchers have been attached to the imprest account statements. has been done in line with
(ii)
(iii) Whether recoupment expenditure incurred. (iv)
Whether the amount of imprest held is reasonable as compared to the general quantum of expenditure incurred.
h)
SUB - STORES (i) Examine whether receipts and issues of materials have been properly documented and carry the approval of competent authority. Test check the quantities received in the sub stores from the main sores on the basis of SIVs of main stores. Examine and comment on the control over issue of materials from the sub stores and whether items in stock have been physically verified at regular intervals.
(ii)
(iii)
i)
MISCELLANEOUS SALES Verify the disposal of miscellaneous items for approval by competent authority along with the basis for determination of rates for disposal and ensure that the proceeds have been handed over to Finance Deptt. on a timely basis for accounting.
j)
Highlight the facilities in township lying unutilised indicating the cost of the facilities along with the period from which they have been lying unutilised.
61

GUEST HOUSE
a) b) Examine the entries in the register of guests and ensure that all entries are complete. Verify the charges recovered from guests and as entered in the register with cash receipts, for employees and outsiders for conformity of rates to rules. Trace the receipts into the daily collection statement. Verity the cases of companys guests with written communication to support the non-recovery of charges. Examine the records maintained for food and beverages indicating receipt of materials and their consumption. Examine the imprest account maintained by Guest House Incharge for recoupment along with supporting vouchers. Ensure that the quantum of imprest held is reasonable as compared to the level of expenditure in the guesthouse. Compare the actual expenditure and income of the guest house with the same for earlier years and identify and comment on abnormal variations. GUEST HOUSE ASSETS: (i) Examine whether the assets at guest house have been properly identified, recorded in a register, physically verified at the end of the year, tallied with the balance reflected in the register and corrective action taken for the discrepancies noticed on such verification. Examine whether the guesthouse assets have also been tallied with the fixed asset register maintained in finance.
c) d) e) f)
g)
h)
(ii)
i)
SUB-STORES: Examine and comment on the system of receipt and issue of materials and whether the same has been properly documented, recorded and authorised by the competent authority.
62
j)
Examine whether expenditure incurred on telephones and trunk-calls has been monitored on the basis of a register and the same is recovered from the guests. Comment on cases of non-recoveries.
63

HOSPITAL
a) b) c) d) Verify the updated list of employees and their dependents with the hospital and trace the details in the register. Verify the timely deposit of cash receipts by tracing the cash receipts into the main cashbook. Examine the recoveries from contractors and others in accordance with corporate rules. Examine the control over receipt and issue of medical stores and also whether the issue of medicines to employees has been approved by the competent authority. Review the stock register of medicines to identify cases of expired and expiring medicines and comment on the action taken by the project in this regard. Compare the expenditure incurred in hospital over the total manpower of the project with the similar percentage for earlier years. Comment on abnormal variances. ASSETS: Examine whether the assets have been properly documented and also a memorandum register maintained to identify the location of these assets, ensure whether these assets have been physically verified at least once a year, whether the discrepancies observed between the balances reflected in the register and the physical count have been properly brought to the notice of the competent authority before initiating action for adjustment, compare the balances reflected in the memorandum register with the fixed asset register maintained in finance and comment on findings. Examine whether proper records of expenditure have been maintained to monitor recoveries due and made in the case of hospitalisation of employees and comment on the findings on this account. SUB-STORES: Examine the system of receipt and issue of materials for proper documentation and approval by competent authority.
e)
f)
g)
h)
i)
64
j)
MISCELLANEOUS SALES: Examine the records indicating the items for disposal and the basis and rates for disposal. Ensure that the same has been done with the approval of competent authority.
65

DEBTORS FOR THE SALE OF ENERGY
a) b) c) Examine and comment on the age wise analysis for all debtors accounts. Compare the balances in the sub ledger with the General Ledger and ensure that the balances are in agreement. Review the various debtors accounts and comment on inordinate delays in recoveries and also examine and comment on the steps taken to recover the outstandings. Verify the certificate of confirmation of balances from SEBs and comment on the status of receipt of such confirmations. Units have to obtain confirmation and prepare statements of reconciliation of balances as on 31st March 2001 under advances, debtors (including those due from State Electricity Boards), creditors and materials in transit / under inspection and with contractors/ fabricators. Further they have to carry out adjustments in the Books of Account upo n such confirmation/ reconciliation of balances under the above heads. In this context, accounting units shall analyse the advances, claims, materials under inspection, materials in transit, materials with contractors / suppliers / fabricators etc. into (1) good and fully recoverable, (2) requiring adjustment entries to be passed, (3) doubtful of recovery to be provided for and (4) bad and to be written off with supporting documents / explanations and reasons as for each and every account. The analysis will be of the accounts as per the ledgers and schedules to the accounts as at 31.3.2001. Internal auditors are required to vet the analysis statements prepared by the units and submit their re port on the same to the Corporate Internal Audit Department along with the Phase I Internal Audit Report .
d)
e)
66
f)
Review the LCs opened by various SEBs and comment on their reasonableness with reference to the respective agreement and average monthly billing. Examine and comment on cases of delays in the opening of LCs. Examine the collection bank account statement and comment on the delays in remitting the remitting the receipts to Corporate Centre. Auditors should also enclose a copy of the bank statement with their report. Examine the bank charges debited by different banks in respect of collection accounts and comment on the uniformity of the same within the region. Examine whether L/C charges being borne by NTPC are in line with the provisions of the Power Purchase Agreements or the incentive schemes of NTPC. Verify that all credits to the Debtors accounts including rebates are in line with Power Purchase Agreements/ Tariff notifications/ schemes of NTPC.
g) h)
i)
j)
k)
67

INVOICING OF SALES
a) Verify the system of billing and ensure that the billing has been done in time and energy accounting prepared by the concerned REB. Verify the agreements with State Electricity Boards and ensure that the fuel price adjustment and other charges are in accordance with the agreements/ tariff notifications. Test verify the fuel price adjustment rates. Verify the deposit of taxes collected on sales with appropriate authorities and ensure that the same has been done in time. Verify that rebates etc. allowed to SEBs are in line with Power Purchase Agreement/tariff notifications / special schemes of NTPC and that approvals have been obtained from competent authority.
b)
c)
d)
68

CUSTOMS DUTY AND PORT TRUST CHARGES
a) Check whether the provisional payments made towards customs duty before the assessment of duty on the imports are properly accounted and adjusted with the actual assessments of the duty and balance amounts claimed back from customs. Check if adequate records in support of reconciliation of the customs duty paid, adjusted and refunds claimed are maintained. Check the bills of entry for classification and rate of assessment for payment of customs duty of cases involving customs duty of and above Rs. 5 Lakh. List out the cases of demurrage payment and indicate whether approvals of competent authority have been obtained as per the Delegation of Powers. Check if the amount of demurrage identified for recovery from the clearing agents or suppliers is realized. Outstanding cases may be listed and brought out in the report. The continuity bonds furnished by NTPC before clearance of the shipments are properly reflected in the bonds register maintained for the purpose. See whether the reconciliation of the bonds issued, adjusted and outstanding is done periodically or not. Verify whether the instructions given vide Finance System Circular No. 6/99 dated 30.8.99 have been followed while opening Foreign Letters of Credit (FLCs).
b)
c)
d)
e)
f)
g)
69

AUTOBASE AND CONSTRUCTION EQUIPMENT
a) Examine and comment on the serial control over requisition slips. b) Examine the adequacy of the system of MIS and performance
reporting regarding the use of construction equipment. of each of the vehicles and equipments.
c) (i) Examine the records being maintained with regard to history

(ii) Review the history records of each of the vehicles and equipments and identify and comment on instances of uneconomic operations, with reference to norms.
d) (i)
Examine and comment on control over unserviceable spare parts returned after repairs.
the
return
of
(ii) Examine and comment whether they have been identified and disposed off along with other scrap items of Autobase on a timely basis.
e) Examine the status of various hired vehicles and also whether a

proper system has been in force to authorise hire. wise and comment on its reasonableness.
f) Review the quantum of repairs got done from outside, vehicleg) (i) Review and comment on the percentage of utilisation of
construction equipments maintained by Autobase indicating specifically cases of underutilisation, cases of equipments under break-down, equipment lying idle etc. The status of equipments/vehicle also lying under break down and idle may be reviewed and commented upon. (ii) Examine and comment on the action taken for transfer of idle equipments and vehicles to other projects.
h) (i) Examine whether the Autobase has submitted the statement
of recovery of hire charges on construction equipments/ vehicles let out to contractors and other users on a regular / timely basis to Finance Deptt. for effecting timely recoveries.
70
(ii) Highlight the outstandings in cases where the subsequent payments have been released to the Contractors without effecting recoveries on account of hire charges.
i)
(i) Examine whether hire charges fixed for recovery have been regularly reviewed and revised as provided in the Corporate Circular on the subject. (ii) Comment on non-revision along with the period since when the revision has been pending.
71

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NATIONAL THERMAL POWER CORPORATION LIMITED

MANUAL ON INTERNAL AUDIT November 2002

A.F. FERGUSON & CO. NEW DELHI

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

OBJECTIVES OF INTERNAL AUDIT

Manual on Internal Audit

PERIOD TO BE COVERED BY INTERNAL AUDIT

Manual on Internal Audit

SCOPE OF INTERNAL AUDIT

Manual on Internal Audit

WORKS INCLUDING O&M CONTRACTS (Pre-award and

PROCUREMENT (Pre-award and execution)

(ii i) Vouching Bank Payment Vouchers

Manual on Internal Audit

100% 100% 100%

Manual on Internal Audit

CONDUCT OF INTERNAL AUDIT AND ISSUANCE OF REPORTS

Manual on Internal Audit

Manual on Internal Audit

FOLLOW-UP OF REPORTS AND SETTLEMENT OF INTERNAL AUDIT PARAS

Manual on Internal Audit

SYSTEM FOR ENSURING COMPLIANCE OF INTERNAL AUDIT OBSERVATIONS

Manual on Internal Audit

Manual on Internal Audit

GUIDELINES FOR INTERNAL AUDIT

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

GUIDELINES FOR INTERNAL AUDIT

Manual on Internal Audit

Manual on Internal Audit

GUIDELINES FOR INTERNAL AUDIT

OTHER ITEMS TO BE CHECKED

Manual on Internal Audit

Manual on Internal Audit

GUIDELINES FOR INTERNAL AUDIT

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

INTERNAL CONTROL QUESTIONNAIRE: COAL 1. GENERAL:

(2.6) (2.7) (2.8) (2.9) (2.10)

Manual on Internal Audit

Sl.No (2.11) (2.12)

Sl.No (3.1) (3.2) (3.3) (3.4)

Manual on Internal Audit

Manual on Internal Audit

Sl.No (5.1) (5.2)

(5.3) (5.4) (i) (ii) (5.5)

Is there a prescribed method determining stock densities?

Manual on Internal Audit

GUIDELINES FOR INTERNAL AUDIT

Manual on Internal Audit

Manual on Internal Audit

Manual on Internal Audit

INTERNAL CONTROL QUESTIONNAIRE: LIQUID FUELS

(2.2) (2.3) (2.3.1) (2.4) (2.5) (2.6) (2.6.1) (2.7)

Manual on Internal Audit

Sl.No (2.8.1) Sl.No (2.9) (2.10) (2.11)