Internal Audit Section is headed by Sr. F&AO(IAD) with supporting staff of one A.O., one Accounts Clerk, one clerk and one Jr.Scale Stenographer. As per decision of BOD the work of Internal Audit has been outsourced and entrusted to Raj Har Gopal & co., Chartered Accountants, Dehli with effect from 1.10.2010. The Internal Audit to be conducted on half yearly basis.
The scope of Internal Audit is highlighted below:
- Internal Audit at the units will cover all aspects / areas for efficient working with least cost and to check the leakages, pilferages at all the levels particulars at plants / stores of Corporation and suggest further measures to strengthen the system.
- Identification of areas of significant inefficiencies in existing system and to suggest necessary remedial measures.
- Compliance of all policies, procedures, instructions, guidlines and orders issued to the units by Head Office from time to time. Compliance of all statutory requirments under Income Tax and other statutory laws by the units.
- Review of targets vis-a-vis achievements in respect of production and marketing with short fall and deficiencies therein.
- Review of preformance of various functions undertaken at the units and to suggest cost reduction measures, if any.
- Periodical stock and assets verifications for reporting the deficincy in its proper maintenance.
- Examinations of various existing internal control system and giving suggestions for improvement, if any.
- Review of the expenditures incurred at the units with the budget allocation. and report of the variation, if any.
The Internal Auditor after conducting their audit, forward their Internal Audit Report to the Unit Incharges and Sr.F&AO(IAD), Head Office for necessary replies/actions with a copy to Head Office. While conducting the audit for subsequent period the compliance report on the audit observations pointed out in the report relating to earlier audit is mentioned in audit report of subsequent period. The Internal Auditor also submits complaince report to the M.D./Sr.F&AO(IAD).
The main observations of Internal Audit Reports are placed before the Board of Directors of HSDC and copies of audit reports are sent to the nominee of Finance Department on Board of HSDC as per State Govt. instructions.