S.No Description Policy Internal Audit Procedures W.

P Ref Done
Ref by
1 Subordinate 69 Review induction process and check whether or not it comply
Selection/Induction: Laboratory Assistants/Computer with the approved policy
Laboratory Assistants are selected by Education
Department whereas all other staff is selected under
General Manager (Human Resources).
Reference: Minutes of 42nd BOM meeting dated Dec 15,
2014
2 Appointment: Appointment letters are issued by GM 70 & 71 Review the appointment letter and check whether or not it is duly
(HR) according to terms and conditions laid down in policy approved
# 71 in Education Policy Compendium.
3 Probation: Probationary report shall be initiated after 3 72,  Obtain induction documents
months of initial service has been completed by the staff Appen-  Check that the probationary period has been completed
concerned and shall be forwarded to Education 1 to before permanent induction
Department / GM Regional 7 days before its due date. Annex-  Check approval of head office
Proforma is attached at Appendix-1 of Annex-E. E
4 Employment for Administrative Staff on Adhoc 74  Check that the adhoc staff has been inducted as per
Basis: approved policy
a) Adhoc Chowkidar will be inducted for six years  Check that the adhoc is paid salary as per approved salary
contract which is renewable on yearly basis.
b) The monthly salaries of the Administrative Staff on
Adhoc basis are:

c) Terms and conditions will be as under: Employee Monthly

Salary (PKR)
 Contract will be for a period of
three months except Chowkidar Superintendent / Account 12,500
contract, extendable for another 3 Assistant
months in special cases. Junior Clerk 12,000
 Contact will be liable to Physical Training 12,500
cancellation within 24 hours’ Instructor (PTI)
notice from either side. Laboratory Assistant 12,500
 Contract will terminate when Chowkidar, Ayas 12,000
incumbent is inducted. (Including Sanitory
Workers)
5 Part Time Employment: 75  Check approval of head office for part time staff
a) This employment will be subject to prior approval  Check that the pay for part staff is paid as per approved
of Head Office Education Department. policy
b) Pay will be Rs.8,000
6 Resignation/Termination/Retirement: One month 77  Check that the staff seeking resignation has provided one
notice shall be given before tendering resignation. month notice

7 Delegation of Administrative Powers to General 78 Check approval of respective authority for induction of staff and
Managers Regional: renewal of other contracts
a) Confirmation of Subordinate Staff after
Probation Period:
 Cases recommended for retention and
extension in probation period shall be
disposed off by GM regional. Copy of
letter shall be addressed to Schol and
HR department.
 Cases not recommended shall be
disposed off by Education Department
b) Renewal of Canteen Contracts:
 Existing contracts to be renewed
by GM regional on yearly basis
 New contracts will be approved by
Education Department
8 Discipline 83  Obtain all show cause notices issued during the audit
Procedure in a Discipline Case: period
a) A show cause notice by Principal must be served to  Check that the record of all disciplinary actions has been
an employee who commits an action that merits maintained in HR files of personnels
disciplinary action.
b) In case of unsatisfactory reply, investigation shall
be initiated.
c) If offence / act is minor, written warning may be
served with a copy to Head Office. If the offence /
act is serious, the case should be forwarded to HO
with recommendations.
d) A proper record should be kept at School.
e) All disciplinary actions must be supported by an
independent and impartial inquiry.
9 Details of Duties – Administrative Staff: 85  Review JD’s of different type of personnel
The duties of the following administrative staff are detailed  Identify any Conflict of interest or need of segregation of
in Appendix II of Annex B: duties (if any)
 Manager Administration, Accounts and Security
 Superintendent cum Account Assistant
 Junior Clerk
 Physical Training Instructor (PTI)
  Laboratory Assistant
 Chowkidar
 Mali
 Aya
 Sanitary Worker
10 Pay and Allowances – Subordinate Staff 87  Obtain payroll
Cost of Living Allowances:  Check payroll calculation
The allowances shall be paid to employees based on the
various entitlements introduced by the Federal / Provincial
Government from time to time.
These allowances shall not be considered for calculation of
House Rent but in the following cases;
 Provident Fund
 Gratuity Fund
 Wages for overtime work
11 Employees Cost of Living Allowance: 89  Obtain payroll
Rs. 50 per month has been introduced wef April 01, 1994:  Check payroll calculation
 There will be no set off.
 This allowance will form part of wages under any
other law such as PF and GF contributions etc.
 This allowance will not be merged in basic wages
and will be shown separately.
 This allowance will be payable to all employees.
 CLA equal to Rs. 100 per month if wages does not
exceed Rs. 4,065 per month.
12 Cost of Living Allowance – Increase in Rate: 90  Obtain payroll
All employees of Fauji Foundation Welfare Projects are  Check payroll calculation
entitled to new CLA @ Rs. 375-/ per month wef June 13,
1998 irrespective of their wages, as a substitute to the
“Adhoc Relief”.
13 Indexation Pay: 91,  Obtain payroll
Central Board of Directors has authorized payment of Annex  Check payroll calculation
indexation pay @ 18% of B.P to those whose wages does not T
exceed Rs. 3000 per month and @ 13.5% of B.P for those
whose wages exceed Rs. 3000 per month.
Ref: HO letter no. 2-3/P-I of July 14, 1994 and 2-3/P dated
July 31, 1994 as attached as Annex T.
14 Provincial Allowances: As per the instructions issued by 92  Obtain payroll
the respective Province.  Check payroll calculation
15 House Rent: 93  Obtain payroll
 For employees located at Federal / Provincial  Check payroll calculation
Capitals, House Rent is admissible @ 70% of B.P or
Rs. 7,390 per month whichever is higher.
 For employees not located at Federal / Provincial
Capitals, House rent is admissible @ 60% of B.P or
Rs. 7,272 per month whichever is higher.
16 Conveyance Allowance: Conveyance allowance is 94  Obtain payroll
admissible at flat rate of Rs 3,500 per month.  Check payroll calculation
17 Medical Allowance: Medical allowance is admissible @ 95  Obtain payroll
20% of B.P on stations where FF Medical Centers are not  Check payroll calculation
functioning.
18 Washing Allowance: Washing allowance is admissible at 96  Obtain payroll
Rs. 140 per month to the liveried employees.  Check payroll calculation
19 Utility Allowance: It is admissible at flat rate of Rs. 97  Obtain payroll
4,5o0 per month.  Check payroll calculation
20 Compensatory Allowance: This allowance is admissible 98  Obtain payroll
@ 10% of B.P to all workers/staff members. It will not be  Check payroll calculation
treated as a part of salaries/wages for the purposes of any
other benefits.
21 Recreation Allowance: Recreation allowance equal to 99  Obtain payroll
two months basic pay is admissible once during calendar  Check payroll calculation
year after every completed year of service. Head of
Institution will scrutinize / approve and will pay the
amount.
22 Provident Fund: PF contribution @ 10% of B.P (Basic 100  Obtain payroll
Pay & CLA including special cost of allowance and  Check payroll calculation
indexation pay upto Rs. 3,000. If wages exceed Rs. 3,000
then PF will be calculated @ 10% B.P plus CLA Rs.375 only
after confirmation of service. Loan can be taken out of this
fund upto the limit of employee’s contribution.
23 Employees Old Age Benefits Scheme: It is payable @ 101  Obtain payroll
5% of monthly salary of an employee subject to maximum  Check payroll calculation
of Rs. 780. As per law all types of workers i.e part time,
temporary staff, staff on adhoc basis and staff on contract
adhoc basis and staff on contract are included in EOBI Act
1976 as defined in Section 2 (bb). The first payment will
only be made after the prior approval from Welfare
Division.
24 Group Insurance – Officers / Staff: It is centrally 102  Obtain payroll
 arranged at HO by the GM Finance (HO). Returns and  Check payroll calculation
reports by the Projects are submitted annually in January,
and revisions/alterations on quarterly basis. The project
incharge must ensure that nomination papers are properly
maintained in respect of each employee.
25 Group Insurance Claim: Both in cases of serious 103  Obtain payroll
accident and death, the project will submit the required  Check payroll calculation
documents at GM Finance (HO) and Finance Division
immdediately for lodging claim with State Life Insurance
Corporation of Pakistan.
26 TA/DA – Staff: TA/DA rules have already been sent to 106  Obtain payroll
Projects. They should strictly be adhered to.  Check payroll calculation
27 Leave Fare Assistance – Officers: LFA equal to two 108  Obtain payroll
B.P is admissible to officers on completion of one year of  Check payroll calculation
service and thereafter during every calendar year. LFA will
be paid after the approval of Director Welfare.
28 Monthly Emolument – Subordinate Staff: 111  Obtain payroll
 Principal should personally ensure that every  Check payroll calculation
subordinate staff is in possession of details of
his/her monthly emoluments written in URDU.
 Monthly salary shall be paid at the last working day
of the month.
 Principal shall ensure that no payment is made in
cash.
 Payment vouchers shall be initiated by Vice
Principals, Superintendent/Account Assistant and
countersigned by the Principal.
29 Income Tax – Salary: 112  Obtain payroll
 Deduction of Tax on salary will be the  Check payroll calculation
responsibility of the Head of the Project.  Check whether the deducted amount has been deposited
 The amount shall be deposited into Govt. Treasury with in prescribed days
within 7 days from the date of deduction.
 Head of the institution will issue annual pay and
allowances certificate to all employees (July to
June).
30 Reduction in Tax to Teachers, Researchers and 114  Obtain payroll
Senior Citizen (Clause (2) of Part III of 2 nd  Check payroll calculation
Schedule of Income Tax Ordinance, 2001):
The tax liability of Teachers and Researchers will be
reduced by 75% of the tax payable in cases as provided in
 clause (2) of Part III of 2nd Schedule of the ITO, 2001. The
tax liability of Senior Citizens will be reduced by 50% of the
tax payable.
31 Filing of Monthly and Annual Statement of 115 1) Obtain tax working from client’s management, if any.
Withholding Tax under Section 165 of the Income 2) Recalculate tax on the following:
Tax Ordinance, 2001:  Salaries paid to employees
a) Statement under Section 149: Statement of  Payments made to suppliers and contractors
salaries and allowances paid to employees  Payments made to landlords against rent
(Officers/Staff) and Income Tax deducted during a 3) Obtain tax rates from the applicable tax rates schedule in
financial year. ITO, 2001.
b) Statement under Section 153: Details of 4) Match recalculated amount against client’s working.
suppliers/contractors for purchase of goods and tax 5) Obtain copies of monthly and annual statements filed
deducted during the financial year. with tax authorities and cross verified the amount
c) Statement under Section 155: Details of rent recalculated with the total amount of tax deducted and
paid to landlord and tax deducted during the deposited with authorities.
financial year. 6) Check the date of deduction and date of filing to
determine whether there are any cases of non –
compliance with the relevant sections of ITO, 2001.
7) Obtain and review monthly tax challans.
32 Mandatory NTN or CNIC Number: Projects must 116 Obtain and review NTN / CNIC No. of the concerned parties.
ensure that NTN or CNIC No. is obtained from the
suppliers/contractors/organization concerned.
33 Accommodation 118 & 1) Obtain listing of staff residing in FF hostels.
Living inside Institution Premises: Annex 2) Visit hostel if necessary to review the record maintained
a) Teaching Staff: F by hostel wardens to ensure that no admin staff resides in
 Rent @ 7.5% of B.P will be deducted if the hostel except permission granted by the competent
teacher resides in FF hostels. authority.
 Hostel resident will be governed by SOP 3) Check deduction of rent @ 7.5% in case of hostel
issued vide Education Department letter residents and @5% in case of staff living in institution
no WD/Edn/Accn/Hostel/Policy dated Feb premises.
09, 2004. (Annex F). 4) Check compliance with SoP procedures as specified in
 If teacher is granted permission to reside Annex F.
in institution premises, rent will be
deducted @5% of B.P.
b) Administrative Staff: No admin staff is allowed
to live in institute premises except when space is
available and permission granted.
34 Fauji Foundation Buildings and Maintenance: 119 1) Obtain detailed budget from the head office.
 Responsibility for maintenance will be of the 2) Review demand requests by SM (Engineering).
concerned institution. 3) Check approval of competent authority on the demand
  Required funds will be allocated by Manager requests and then trace the approved amount from the
Finance Welfare (Education) on demand from approved budget.
Senior Manager Welfare (Engineering) in the 4) Check the actual work carried out against the allocated
Budget. budget by inspecting the supporting such as invoices,
 For Schools in rented buildings, maintenance funds labor attendance register, if any, and payment made to
are placed by Manager Finance Welfare the concerned parties.
(Education) in the Revenue Budget.
35 Cleanliness of School Premises: 122 1) Visit institute to check the following:
a) All schools are directed to lay special emphasis on  Classrooms are well lit and ventilated
the following aspects:  Equipment and books are neat and clean
 The classrooms are well lit and ventilated.  Classrooms are well clean
 Equipment and books placed in Library 2) Inquire about surprise visits conducted by Education
and Laboratories are neat and clean. Department and review the findings pointed out by the
 Classrooms should be cleaned by sanitary department in its report.
worker immediately after the closing time
of the School.
b) Surprise visit of the School will be carried out by
the Education Department.
36 Accommodation Lease Agreement (Hired 123 1) Obtain and review accommodation lease agreement for
Buildings): the following:
a) Requirement of up-gradation for next three years  Clause for upgradation of accommodation every
shall be catered while selecting accommodation. three years
b) Max rent increase after three years occupation is  Rent increase shall not be more than 25% or 8%
25% or 8% annual depending upon the area. 2) Check Chowkidar is employed to guard the building.
c) After the acquisition is complete, building will be 3) Check clearance certificate in case of de-hiring.
taken over by the Principal and he/she will be
responsible for its upkeep and safety.
d) Building will be properly guarded by employing
Chowkidar and will not be left without Chowkidar
at any time.
e) Principla will be responsible for getting clearance
certificate from the owner when de-hired.
37 Steps for New Hiring / Renewal of Lease 124 1) Inquire management about new hiring/renewal of lease
Agreement: agreement.
a) All lease agreements pertaining to new hiring will 2) Check approval of BOD.
be approved by BOD. 3) In case of expiry of lease agreement, check intimation
b) For renewal of lease agreement, the powers have was given by Education department at least 3 months
been delegated to Director Welfare (Education). before the date of expiry.
c) Financial powers laid down by Education 4) Review special powers of attorney and its verification by
Department shall be kept in mind. the Court.
 d) Education Depart. will intimate the school at least 5) Check that the selection of building was made by
three months before the expiry date of existing Committee of officers headed by GM.
lease agreement.
e) Additional rent must be agreed upon with the
owner before asking him to undertake the
additional construction, if necessary.
f) Special powers of attorney will be prepared on
specimen vide letter no…. acc/General dated
September 16, 1999. It is to be verified by the
Court.
g) Selection of buildings will be undertaken by the
Committee of Officers headed by GM of respective
Division / GM Regional and the concerned
Principal / Administrator / Manager / OIC of the
Welfare Project. Respective Regional Officers will
be fully involved in each step of hiring buildings.
38 Furniture: Standard Operating Procedures for purchase 125, Review compliance with standard operating procedures given at
of furniture and size of various classes has been forwarded Annex Annex S.
vide letter no. FF/WD/Edn/4351/Furniture dated July 31, S
2009, 5341/Fur/Gen dated Feb 22, 2011 and 5341/Fur/Gen
dated May 22, 2014 given at Annex S.
39 Furniture on opening of New School: Furniture will 126 In case if new schools are opened, check the furniture was
be provided by Education Department through Central obtained through CPO.
Procurement Organization (CPO).
40 Subsequent Procurement of Furniture: Furniture 127 Check whether the furniture was purchased due to the following:
will be procured for any of the following purposes:  Upgradation to higher classes
 Up-gradation of School to higher classes  Additional sections
 Additional sections  Increase in students strength
 Increase in the authorized strength of students  Replacement of condemned items
 Replacement of condemned items Obtain any evidence that supports any of the above justifications.
 For any other reason deemed necessary by
School/Education Department
41 Conditions to be Complied before Purchase: 128 1) Check allocation and availability of fund.
The following must be ensured by School before proceeding 2) Review quotations, comparative summaries, approval of
with the purchase of furniture: the best price quality ratio bidder.
 Only those furniture items are demanded for which 3) Review sanction and NOC by HO.
funds have been allotted. 4) Check invoices, deduction of tax and payments to
 Sufficient balance under the relevant budget head suppliers.
is held
 Quotations, comparative statements are enclosed
 and the prices are well with the market brackets.
 Full justification is given
 Purchase is made only after sanction of the Head
Office and No Objection Certificate (NOC)
42 Repair and Maintenance: Principal will be responsible 130 1) Conduct physical verification of furniture and other
for repair and maintenance. Items beyond repair must be equipment to check for impairment and items beyond
produced in condemnation board and no junk should be repair.
allowed to pile up. 2) Inquire why the condemned items are not presented in
the condemnation board, if any.
3) Review supporting for repair and maintenance carried
out during the period.
43 Policy – Upkeep of Furniture: The following action will 131 Check records are properly maintained by the institution.
be taken by all schools:
 Inventory lists
 Dates and records
 Catalogue Book
44 Purchase Committee: Details regarding purchase 132,
committee are mentioned in Appendix-I to Annex S. Appen-
I to
Annex
S
45 Record of Inventory and Annual Stock-taking: 1) Obtain stock take record maintained by PTI, in-charge of
 PTI will be in-charge of stores stores.
 Stock take will be carried out each year. 2) Check whether stock take is carried out annually by
 Proceedings duly signed by the Board will be reviewing current and last year documents.
submitted to Manager Finance Welfare (Education) 3) Check date of submission to check whether the
by September 30 each year. proceedings were submitted by 30th September.
 100% stock take will be carried out. 4) Check signature of board on stock take proceedings.
 Inventory must tally with that held with Manager
Finance Welfare (Education) at least once in six
months.
46 Condemnation Board: 135 1) Review minutes/proceedings of condemnation board.
 Condemnation board will be held once in a year in 2) Ensure that the board was held in the month of march
the month of March. each year.
 Proceedings will be forwarded to Education 3) Check approval of GM on the proceedings of board.
Department within 15 days of the Board. 4) Check the constitution of the board for the following:
 Approval by GM (Education).  President – Principal
 Board will consist of:  Members – one teacher & SCAA
President – Principal
 Members – One Teacher & SCAA
47 Depreciation: Depreciation shall be calculated based on 137 Recalculate depreciation expense and match the recalculated
the rates specified in the policy and on reducing balance amount with the client’s working.
method.
48 Destruction Board: Annual destruction board will be 138 Check minutes/proceedings of annual destruction board and its
held in December each year. date to ensure that it was held in December.
49 Fire Fighting: FF model schools and higher secondary 139 Count the number of fire fighting equipment and tools and match
school/colleges will comply with the number of fire fighting them against the number of equipment and tools specified in the
equipment specified in the policy. policy.
50 Use of Generator Set/UPS cum Solar System: SOP 140, 1) Obtain SOPs
issued by Welfare Division Education Department (Annex Annex 2) Check compliance of the use of generator set/UPS cum
HH) to be ensured by all Schools. HH solar system with SOPs obtained.
51 Canteen 141 If canteen is established during the period, check approval of
General: Canteen will be established in a suitable room Education department.
within the premises of institutions subject to the approval
of Education Department.
52 Credit Policy: 142 1) Obtain breakup of credit allowed to staff during the
 Credit upto Rs. 1,000 per month months selected as sample.
(Teachers/Lecturers) 2) Check whether the credit exceeds the authorized limit of
 No credit unless the previous month bill is cleared Rs. 1,000 per month. (Teachers/Lecturers)
 Proper Register checked by Principal every 3) Check that the credit is not allowed unless prior month
fortnight outstanding balance is cleared by the concerned staff.
 No credit for students 4) Check signature of Principal of register of credit for every
 No items injurious to health. two weeks.
5) Ensure that no credit is granted to students.
 Canteen contract will terminate if contractor fails
6) Conduct compliance of contractor with the FF policy.
to comply with the Fauji Foundation policy
53 Electricity and Gas Consumption: 143, Check the following in verification of electricity and gas
 Record be maintained on daily basis in a register Annex consumption during the period:
 Daily units entered in register KK  Record be maintained on daily basis in a register
 Initialed by Principal daily  Daily units entered in register
 Over expenditure will be justified by Principal  Initialed by Principal daily
personally  Justification by Principal for over-expenditure, if any.
54 Financial Matters 146, 1) Check budget demands are submitted twice a year.
Preparation of Budget: Annex 2) Check date of preliminary budget to ensure that it is
 Responsibility of Principal KK-I submitted before May 31.
 Budget to be prepared each year 3) Check date of revised budget to ensure that it is
 Budget demand is submitted twice in a year submitted before Jan 31.
 Preliminary budget demand is submitted by May 31 4) Review copy of budget is duly sent to Education
and revised budget by Jan 31 each year to Manager Department.
 Finance with copy to Education Department.
 Proforma is forwarded vide letter no.
WD/Edn/101Gen dated May 20, 2002.
55 Miscellaneous Factors: 147 Check the following are satisfactorily performed related to the
 Proposals shall be submitted to Education budget:
Department.  Proposals are duly submitted to Education Department.
 Approval of Director Welfare (Education) will be  Director Welfare (Education) approval on each budget
obtained on each item in budget. line item.
 It will be forwarded to BOD for sanction.  Sanction of BOD.
 No capital expenditure will be incurred without  Capital expenditure duly approved by competent
prior approval of competent authority. authority
 All items purchased will be recorded through  Proper register is maintained by the institute and all
proper certified receipt vouchers. All entries will be entries are initialed by Principal.
initialed by Principal.
56 Budget Control: 147, 1) Check whether monthly expenditure statements are sent
 Monthly expenditure statements will be sent by Annex to Manager Finance.
institutions to Manager Finance. LL 2) Check whether quarterly expenditure statements are sent
 Quarterly expenditure statements will be to Education Department and Manager Finance.
submitted to Education department by 10th of Jan, 3) Check dates of quarter statements, it should be before
April, July and Oct each year with intimation to 10th Jan, April, July and October each year.
Manager Finance as per Annex LL.
57 Bank Account: 148 1) Check approval of BOD on accounts opened or closed
 It will preferably be opened with Askari Bank during the period.
Limited on approval of BOD. 2) Check signatures of Principal and Senior teacher / two
 Joint signatories including Principal and Senior Senior Teachers in the absence of Principal.
Teacher or two Senior Teachers in the absence of 3) If there is any change in authorized signatories, the
Principal. change shall be approved by BOD.
 Manager Finance will obtain approval for change of
signatories from BOD.
58 Cash Book: 149 1) Check proper cash book records are maintained at each
 It will be maintained at each institution in institution both in original and duplicate.
duplicate. 2) Check that original cash book is sent to Manager Finance
 Original cash book will be sent to Manager Finance by 5th of next month.
Welfare (Education) at the end of month i.e 5 th of
next month.
59 Cash Receipts and their Accounting: 150 1) Check cash memos are duly received for each receipt of
 No cash will be received without cash memo. cash.
 Cash will be deposited with bank on daily basis. 2) Ensure that all cash is deposited on daily basis.
 Principal will initial backside of the bank deposit 3) Check signature of Principal on the backside of bank
 slip daily. deposit slip daily.
 Entry in Cash Book on the day of collection. 4) Ensure that cash book is properly updated on daily basis.
Receipt voucher signed by Principal. 5) Check receipt voucher is duly signed by Principal.
 Certificate by Principal to Education Department 6) Check that certificate is submitted by Principal by 25 th of
by 25th of each month. each month to Education Department.
60 Payment from Funds: 151 1) Check the following in relation to payment from funds:
 Payments above Rs. 5,000 be paid through crossed  Crossed cheque are issued for amounts above Rs. 5,000.
cheque unless inevitable  Cash payments are properly approved by Principal.
 Payment in cash with the approval of Principal 2) Check that cash does not exceed the authorized limits of
 Cash limits as follows: Rs. 10,000 (College) and Rs. 5,000 (Other institutions)
College : Rs 10,000 3) Obtain and review bank reconciliation and bank
Other Institutions : Rs. 5,000 statements for sample months.
 At the end of month, bank balances will be
reconciled with the bank statement
61 Delayed Action at School level: 153 1) In case of laboratory stores, check that the allocated
The allotted funds will be spent within the following time funds are spent by October 31 each year.
frames: 2) In case of all other capital stores except library books,
 Laboratory stores before October 31, each year check that the allotted funds are consumed by December
 All other capital stores except library books by 31 each year.
December 31, each year 3) In case of funds requiring financial sanction, check that
 All funds requiring financial sanction must be funds are spent before July each year.
spent before July each year
62 Audit 154 Check whether audit is carried out by regional offices.
General:
 Audit is carried out by Internal audit depart and
finance department.
 Audit is also carried out by Regional Offices.
 Local audit is introduced under Education Division
and respective regional offices
63 Action on audit reports must be taken promptly. A financial 155 & 1) Check audit recommendations are promptly acted upon.
audit by GM (Audit) is mandatory on the eve of 156 2) Check that financial audit is carried out before making
retirement/resignation of Principal. Final Settlement final settlement of Principal’s account.
Accounts (FSA) will cleared only after such audit and on
settlement of audit objections.
64 Securing of Loan from Bank: 157 1) Inquire management whether any loan taken by staff is
No personal loan to be secured from bank against securing secured against monthly salaries.
monthly salary. 2) Ensure that no such case arises.
65 Appropriate security measures shall be taken as per 163-164 1) Obtain security instructions issued by HO.
instructions of the head office. 2) Check compliance with security instructions.
66 All new work shall be regarded as capital work and require 181 Check whether approval of HO is obtained by march 15 for new
Works costing upto 1 Works costing more work, if any.
approval of head office by march 15 every year.
Lac than 1 Lac
67 President: OIC of the President: Officer in 185 1) Obtain capital proposals and check the following are duly
project charge of the project complied with:
 Proposals of Rs. 0.1 million planned and
Members: any officer Members: GM – completed by Welfare Division
of the project, any Engineering or his  Proposals in the range of Rs. 0.1 to 0.3 million
engineer of rank PE/AE representative, any officer of planned and completed by Welfare Division
(civil) accompanied by the project,  Check that the drawings and contract documents
E/M and B/R staff SM-Engineering welfare or are approved by GM – Engineering
his representative
 Proposals above Rs. 0.3 million planned and
 Capital proposals shall be approved, planned and completed by Director Welfare and GM – Engineering
completed as per following monetary limits: 2) For approval of capital work, check the following:
S Description Planned and completed by  GM/SM approval of project
1 1 lac Welfare division  Scrutiny of estimates by SM and GM
2 1 lac – 3lac Welfare division after vetting of
 Approval of Central Board of Directors on
drawings and contract documents
proposal
by GM –Engineering
3 Above 3 lac Director Welfare through GM-
Engineering

 Following sequence for approval for capital work

shall be followed:

i- Project shall forward the proposal to

GM/SM/Section concerned
ii- GM/SM/Section concerned shall confirm the
justification of the work and shall get approval
of Director concerned
iii- Estimates shall be scrutinized by SM and GM
engineering
iv- After approval of director GM/SM shall process
the case for approval from Central Board of
directors after which contracting for the
proposal can be started.
 Composition of sitting board shall be :