BNNRC's brief audit observation report Dear Honorable colleagues, Greetings from me and my organization PGUS.

I like to share that our respected president Mr. Rezaul Karim Chawdhury requested me to check BNNRC financial and management documents and records keeping status and properly maintained or not also as a part of my duty my some records has been checked according to the policies of the organization. My observation in brief stating below. 17January- 20 January four days long observation were conducted at the secretariat's conference room with Mr. Ahsan Karim Babar representative of Chairperson, Deputy Director of Coast trust.

1) I have checked six months vouchers both debit and credit of BNNRC's own accounts. 2) Personnel's files 3) Attendance register 4) Movement register 5) Leave register 6) Salary sheet 7) Advance register OBSERVATIONS: SL Observations

a).

No separate debit vouchers and credit vouchers not vouchers found both are maintaining a one voucher.

b)

No serial numbers found on the vouchers.

c)

Vouchers prepared and approval authority's signature found but not sealed. Detail project name not mentioned on the

d)

Suggestion/ Recommendation by auditor

BNNRC response

We have used debit voucher (Payment voucher, means Cash/Bank Payment) and credit voucher (Cash/Bank Received) separately. [Mr. Babor of COAST Trust] has endorsed this procedure . We are maintaining serial number in each voucher. We will introduce new voucher, with provision of seal, from the next July 2016. We have mentioned a short project name or donor named in

SL

Observations

Suggestion/ Recommendation by auditor

BNNRC response

vouchers.

the top of voucher in “project name column” due to the small space. However we can easily identify the voucher project wise.

Vat deducted from payable amount but payment receipt was not attached. Purpose of rental vehicle use, reasons use in Holidays and justifications of use not found. From 10 am – 5 pm, seven hours of vehicle use unjustified explanation not written anywhere. Vouchers were not sealed by eligible authority and concerned person/(s). On vouchers Bank name not mentioned.

We will be aware in each case in future.

i)

Transport bills are not made rightly.

j)

Use mode of transport applicable for whom not clear rather using local transport bill may made rental CNG or cab.

We will review our travel billing procedure further and take necessary actions by 1st May 2016 We will prepare a transport guideline for BNNRC staffs (according to Policy Manual) by end April 2016.

i) j)

Excessive cost charged on BOT meeting. Signature on vouchers found but date not mentioned.

We will ensure the cost within the line-item. We are in practice.

k)

Vehicle, magazines,

We will try to minimize the cost

e)

d)

g)

h)

We have already introduced extra column in log book for justifications. [There can be important meetings in holidays]

Responded in SL-C

We are now practicing it.

SL

k)

l)

m)

n)

o)

p)

Observations

communication costs were found too much. Staff salary sheets signed but date not mentioned. Description of expenditures not properly and clearly explained. Name of festivals was not mentioned on bonus payment sheet. On 21/09/2015 dated voucher principal signatory's signature not found on same day cosignature's seal not found. Miscellaneous vouchers not properly filled up and cause of expenditure not convincingly mentioned no serial nos found and all were photocopy. BNNRC losing TK. on selling EURO over purchasing.

Suggestion/ Recommendation by auditor

BNNRC response

We will ensure the date with signature and in practice now. We are trying to clarify the auditobservation. If it happens we will try to ensure it in future. We will clearly mention this in advice letter in future. We will be careful in future in this regard.

Miscellaneous voucher will be printed by June 2016.

This was the reality and that was beyond our control.

q.

The register not maintained properly. Nothing found in the remark column, staffs are going out but not back to office in same day so the register can’t close. Nobody here to take action.

Staffs are already informed about maintain the register and put right remarks. If any inconsistency is found administration section will take action in future.

r)

Staffs register Personal files, office circulars not forwarded to higher authority.

We have continued the meeting on fortnightly basis.

SL

Observations

Suggestion/ Recommendation by auditor

BNNRC response

Weekly staff meeting not conducted yet advised previously. Photo and certificates are not attested by the competent officials. s)

Mostly staffs are not coming to the office in time, after 9am coming. No action taken by the top or administration.

Office time 9 am to 5 pm. BNNRC HR policy has allowed to attendance of staff from 9.00 to 9.15. In cases of any delay due to any unavoidable reason, staffs usually inform the administration.

t)

The leave register not updated. Some signature found without date.

We have checked the leave register and updated as per our existing practice.

u)

Advance register Receiver’s signature found but mysteriously no signature found by the higher management even the project coordinator.

We followed a prescribed format for advance register where advance receiver signature is mandatory.

v)

Advance for BOT meeting allocation 40,000/ on 27/8/15 and 38,000/ on 29/10/15 dated were withdrawn, How come? Advance adjusted by bills vouchers that not mentioned.

We have checked the document and clearly mentioned the amount, the reasons and all relevant expenditures adjusted through journal voucher with all supporting vouchers.

w)

IT manager’s salary was charged on BBC project

Yes BBC media action has supported four month from

The format does not have essential provision to give signature of another one of high authority.

SL

Observations

Suggestion/ Recommendation by auditor

BNNRC response

for four months @ 35190.oo actually he is regular staff of FPU project. Four month salary is remaining unspent. Finally according to the salary sheet CEO than PC but the service structure or organ gram not maintain properly.

September to December 2015. In this period FPU budget was unspent and that has been reallocated for 2016.

y)

CEO salary 87, 175 + 2000 communication cost and mobile cost which is not believable because maintaining two modem one tele-talk and one GP and mobile cost are not possible with mentioned amount. Other privileges are two months July and August travel cost were TK. 23900 and 29470. How the expenditure you will justify correctly?

Already discussed in 22nd BOT meeting on 27 February 2016.

z)

Chief accountant’s present designation should be changed and here like to expressed my deep concern about his capability to run such an organizational accounting and administration. Another two people are working to assistance him but nothing was found professional sign.

Our Chief accountant gather sound knowledge within his working area through a long time working experience in NGOs sector and he has already proved his expertise in our national and international donor dealings, NGOAB dealings and contributes to BNNRC’s strengthening process.

x)

We are maintaining this according to our organogram.

.