Internal Audit Checklist of Administration

Deptt.
ADMINISTRATION

Enquire into the activities that are covered under the Administration of the organisation. Normally
the following activities would come within the Administration Department of an organisation.
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Security Services
Canteen Services
Houskeeping Services
Courier Services
Fax / Photo copy machines
Telephone lines
Renovation and routine repairs
Despatch of correspondence
Incoming correspondence
Visitors Register at the Reception
Travel air / train / taxi
Hotel reservations
Fixed Assets for maintenance / repair
Vehicles
Guest Houses
Colony upkeep / maintenance.

Security
o Check the contract with the security contractor.
o Ensure that the terms and conditions and other general matters are being complied
with by the contractor.
o The bill of the contractor should be accompanied by the attendance sheet of the
security personnel deployed during a particular period / month.
o The bill of the contractor should be accompanied by a certificate from the
contractor that the statutory obligations have been complied with by the contractor.
o The Bill should be approved by the Head of the Administration.
o Ensure that a specific clause has been put in the contract regarding the PF / ESI
liability of the employer of security personnel. It should be clearly mentioned in the
contract as to who will bear the employers contribution towards PF / ESI. ( The
company or the contractor.)
o In case the contractor is to bear the PF liability then the company should ask for copies
of monthly challans in respect of PF deposits from the contractor.
o Study the various clauses of the contract and ensure their compliance.
o Ensure that contract has been awarded to the contractor on the best possible terms.
Quotations/offers of other contractors should be verified to ensure that financial
terms a well as general profile/standing & reputation of the contractors have been
considered for appointing the contractor.

o Check that the security personnel are properly deployed over the area under their
jurisdiction and responsibility. Ask for a deployment plan from the Head of security.
o Check the Registers and records maintained at the security gates/ security points and
ensure that the registers and records are kept uptodate / maintained properly / all
columns are filled in completely.
o In case Gun men have been deployed ensure that they hold valid licences and that the
licences are renewed in time.
o Ascertain the responsibility of the Security Department / contractor in the form of a
check list. The check list should give point wise duties of the security. The
activities/work to be performed by Housekeeping should be documented in the form
of a check list.

Canteen Services
o Check the contract with the canteen contractor and ensure that the terms and
conditions of the contract are being complied with.
o Check compliance with point No(s) 3 to 8 as stated in the case of security
services. The points are applicable to Canteen Services also.
o Ensure that a duly approved Rate list of food items has been prepared and is displayed
at the canteen.

House keeping Services

o Check the contract with the Housekeeping contractor and ensure that the terms and
conditions of the contract are being complied with.
o Check compliance with point No(s)3 to 8 as stated in the case of security
services. The points are applicable to Housekeeping services also.
o Ascertain the responsibility of the Housekeeping Department / Contractor in the form
of a check list. The check list should give point wise duties of the Housekeeping /
contractor. The activities / work to be performed by Housekeeping should be
documented in the form of a check list.

Courier Services
o Check the contract with the courier companies.
o Ensure that the terms and conditions of the contract are complied with, by the
contractor.
o Check that the Bill of courier is checked in detail with the copies of consignment
Notes and the Proof of delivery. The Administration Department should not pass
the bill unless all the consignment notes are matched with the Proof of Delivery
(POD).
o The bill should be approved by the Head of Administration.
o Ensure that the Contract(s) have been awarded to the contractor / courier company on
the best possible terms. Quotations / Offers of other contractors / Courier companies
should be verified to ensure that the financial terms as well as the general profile /
reputation of the courier agencies have been considered before appointing the
contractor / courier company.

Fax Machines / Photocopy Machines

o Check the total number of fax machines installed and their location.
o Ensure that a budget has been fixed in respect of every single fax machine.
o Compare the Budget V/s Actual position in respect of all the fax machines and
comment upon the negative variances between the budget and actual.
o Ensure that a proper control is kept over the paper issued for photocopy purpose. A
record should be kept by the photocopy operator of the number of sheets of paper
received in a month and the number of photocopies made during that month. A
monthly control report should be prepared.
o Ensure that system of requisition slips for fax / photocopy is in place. Requisition
slip system would ensure that there is no misuse of the fax/ photocopy machines.
o Ensure that the fax / photocopy machines are maintained properly and that the
operators of the machines do not allow any unauthorised entry of persons to operate
machines.
o In case the work of photocopy has been given to an outside agency check the
contract entered into with the party and ensure that the terms and conditions of the
contract have been complied with.
o Ensure that the contract with the outside agency is renewed in time i.e. before the
expiry of the validity of the contract.
o A monthly record should be maintained by the company in respect of paper issued to
the contractor and the number of photocopies made during the month. The variation
/ differences should be explained by the Department.
o In case the photocopy / fax work is carried out after the office hours the requisition
slips be kept and the employees instructed and encouraged to enter the details of
number of photocopies made / fax done, after the working hours in the register.

Telephones
o Ensure that a budgeted amount has been fixed in respect of every telephone. The
budget amount should be approved in writing.
o A monthly Budget v/s Actual statement Telephone wise should be prepared and
reviewed.
o In case the actual expenses exceed the budgeted amount on a quarterly /six monthly /
annual basis, ensure that the approval for the excess amount is obtained from the
appropriate authority.
o Ensure that the telephone bills are duly approved / certified for payment by the
concerned users.

Guest House
o Check that the record of fixed assets installed at the Guest House is kept properly in
a bound register / computer. The record of fixed assets (FA Register) should contain
all the details of FA like -Quantity / location/ Make & type / Identification Number
/ value etc.
o A six monthly verification of the FA should be carried out and the physical balances
compared with the book balances. The discrepancies should be reported.
o Similarly a record of electricity / water / and telephone bills should be kept in a
register / computer.

o A register should be kept for recording all STD / ISD calls. The visitors should be
requested to enter the details of call made in the register.
o A bound register should be maintained to record on a daily basis the Bill number amount and the type of purchases made - Milk / Vegetables / Food items etc. The
register should be kept upto date.
o Per meal cost should be worked out on a monthly basis ( By dividing the total
expenses on food / milk / vegetables etc by the No of meals provided during the
month). The per meal cost would indicate the expenses actually incurred on meals
provided to the guests and assess whether the meal cost is high/ normal.
o A guest / occupancy register should be maintained at the guest house and all the
particulars of the guest like - Name / Time in / Time out / date of arrival / date of
departure / address / Room No allotted etc should be entered.
o A Meal register / slip should be made to record the details of meals provided to the
guests. The meal slip should be prepared by the caretaker and the signatures of the
guest should be taken on the slip.
o The register / slip should clearly indicate the No of Break fast / lunch / dinner /tea /
milk / snacks etc provided to the guest.
o A register / statement of consumables (other than Fixed Assets) should be
maintained and all particulars of items like - buckets / room heaters / mattresses /
cutlery / Bed sheets / covers / utensils should be entered. The Register / Statement
should be prepared Room wise.
o In case the guest house is in a rented / leased premises - verify the rental / lease
agreement and see whether the terms and conditions are complied with.

Visitors Register at the Reception

o Ensure that the system of issuing Visitors Card to the visitors is in existence. The
cards should have a serial control.
o The visitors Card Number should be entered in the Visitors register.
o The visitors register should be complete in all aspects i.e. all the entries as prescribed
in the format should be filled in properly and completely. No column in the register
should be kept as blank.
o The visitors register should be maintained clearly in a legible hand.

Travel - Air / Taxi / Train

o The bookings in respect of Air / Taxi / Train should be made on the basis of
Requisition slips. The Requisition slips should be properly filled in by the
employees with necessary details like Approval of the HOD / authorized by / Date
and time / details of travel / Name and Designation / purpose / signature etc.
o The Administration Department should not accept the Requisition Slips not filled in
completely and properly.

Stationery
o Ascertain whether there is any system / procedure to ascertain the book quantity of
stock of stationery at any point of time.

o Check whether there is a procedure wherein the opening balances, Receipts, Issues
and the closing balances of each stationery item (costing say Rs.25/- or more per
number) are recorded in the stationery stock Register (manual / computerised).
o Carry out a physical verification of stationery items (costing say Rs.25/- or more) in
stock and compare the physical balances with the book balances and locate the
discrepancies, if any.
o Ensure that there is a system of issuing stationery items to various
Departments against duly approved Requisition slips.
o Check whether a monthly statement of stationery issued to various Departments is
made. The statement should reflect the details of items of stationery issued
Department wise.

Hotel Reservations / Guest House reservations

Ensure that there is a proper procedure for making Hotel / Guest House reservations.

The procedure should ensure that the details in respect of Hotel/Guest house reservations are
recorded in a control book / register. The details should include

S
l
N
o

Name
of the
perso
n

Designat
ion

Loca
tion

Hotel
Name

Reservation
period
From
To

Type
of
accommoda
tion

(
i
)

(ii)

(iii)

(iv
)

(v)

(vi)

(vii)

Whether booking
is
confirmed/pendi
ng

Bill details
Bill
No. Date

(viii)

(ix)

Amount

Bill paid by
(Name / Date/
payment)

(x)

Mode

of

Any
other
information like
cancellation

(xi

Check whether all the columns of the Control Register are filled in properly and completely. All
the necessary details as given in the format should be entered in the Control Register.

Fixed Assets for maintenance - Repair

o A record of fixed Assets for which the Administration Department is responsible for
carrying out the repairs / maintenance or upkeep should be kept by way of a register
( Manual / computerized). The FA would include Air conditioners, Refrigerators,
Water coolers, Fax / photocopy machines, Electrical Equipment etc. The record
should include details of FA like - Quantity / location / Identification Number / make
or type. Check whether such a record of FA is maintained by the Administration
Department.
o A physical verification of such FA should be carried out on a six monthly / annual
basis to find out the discrepancies, if any.

Renovation and Routine interior maintenance

o Check whether quotations / comparative statements were invited / prepared before
issuing a Purchase / Work Order to a contractor / party.
o Ensure that the Purchase / Work Order were issued keeping in view the commercial
considerations - lowest quotation / offer / profile / experience/ technical competence
/ recommendation of architects Engineers etc.
o Check whether the Purchase / Work Order were issued before the start of the work by
the parties. Confirmatory orders should not be issued except under special
circumstances.
o Check whether the Comparative statements are duly approved and dated by a
competent authority.
o Ensure that the variation between the actual Quantity / Value and the Quantity / Value
as per the PO / WO does not exceed + 5%. The Qty / Value as given in the PO / WO
should be as accurate and as possible and all work should be estimated and planned
in advance and provided for in the PO / WO. The amendments to the PO / WO
should be issued in special cases only. The cases of amendment orders being issued
for an increase in the scope of work should be minimum and the full scope of work
/ activities should be estimated / calculated in advance.
o Ensure that the amendments to PO / WO are issued before the start of the extended
work/scope of activities and not after the completion of work.

Colony upkeep / Maintenance

o Check whether the Administration Department has prepared a list of Fixed Assets
provided to the employees at their residential premises.
o Check whether an acknowledgement has been taken in the list of FA provided to the
employees from the employees. The signatures of concerned employees should be
taken in the list of FA, as a token of their acceptance towards having received the
FA.
o The Administration Department should carry out a physical verification of FA at the
residential premises of the employees and compare it with the list. The discrepancies
if any between the physical balances and the book balances should be enquired into.
o The Administration Department should maintain a Register / book wherein all the
complaints received from the colony residing employees should be entered into,
serially.

The specific nature of the complaint should also be entered, whether Electrical / Mechanical / Civil
/ Electronics etc along with the date / time of lodging the complaint by the employee. Similarly,
the date and the time of attending / rectifying the problem should also be entered along with the
signatures of the complainant. The Register would enable the Administration Department to
exercise a proper control over the complaints / maintenance work.

Vehicles
o Ensure that the details of company owned Vehicles are available by way of a register.
o Check whether insurance cover is renewed in time.
o Check the Registration books / Insurance papers of all the vehicles to locate any
discrepancies, if any.

o Check whether log books are properly maintained in respect of vehicles. Check the
entries in the log books.
o Ensure that a Vehicles register is maintained and details of running and maintenance
expenses in respect of every vehicle are entered vehicle-wise, giving Bill No / Date
and the amount.
o Check whether a monthly exercise is carried out to calculate the running and
maintenance cost of every vehicle per km. This can be worked out by dividing the
total of running and maintenance expenditure by No of Kms run by the vehicle as
per the log book. The Administration would know at a glance the per Km cost of
running and maintaining a particular vehicle on a monthly basis.

Incoming / Outgoing Correspondence

o Ensure that a separate manual register is maintained for the incoming and outgoing
correspondence.
o Check whether all the relevant information is recorded in the incoming / outgoing
registers.
o The registers should be kept updated at all times and entries should be made on a day
to day basis.
o A stamp / seal should be put on the cover of every incoming correspondence
indicating the date of receipt of the document / correspondence.
o A separate record/ register should be kept for documents / correspondence sent
through the Registered post. ( copies of Registry receipts should be preserved).
o A proper record should be kept of Postage stamps.
o In case of Franking machine - check the use and the balance amount at the end of the
day.