Auditor’s Draft Letter to the Management

For the year from July 01, 2010 to June 30, 2011

Management Response:

Finding # 1: Anomalies regarding Vouchers:

i.) We had to withdraw  an  amount of Tk. 22,500/- through Cheque # 20989203 dated
30.09.2010 in favor of  Mr. Bazlur Rahman, Accounts Assistant  for purchasing of  PPH
logistics such as  soap, blade, gaz, thread ball,  polithin roll and polithin packet which
was procured  in spot from different  shop i.e. Wholesale markets with  cash payment 
from  Mowlabi bazar/ Mitford, Chalk Mogoltoli  at Dhaka in the interest of the project.
Mentioning that the cheque was encashed on 10.10.2010 and purchased PPH logistics on
12.10.2010 due to closing the budget period.  ii.) Tk. 9,811/- was withdrawn  in favor of
Ms. Liala Nur Nishi  Project Coordinator from bank for Purchasing Kit box and  transport
cost of Delivery mats  but  Tk. 880/- had to make payment Karatoa Courier parcel service
of  Delivery mat which  was sent by RDRS Rangpur. We have already instructed to
concern staff not to occur in future as per recommendation.

Finding # 2: Amount was charged in the wrong accounts head:

We have purchased a Computer Toner of Tk. 6,250/- which was posted under Travel &
Associated instead of Supplies & Equipment due to carelessness. Necessary action has
been taken as per recommendation. Concerned staffs have already been instructed to
ensure proper record keeping system. So the mentioned incidence will not happen in
future.   

Finding # 3: VAT deducted at source was not deposited within stipulated

time:
 

 Swanirvar Bangladesh always tries to follow the any rules and regulation in project
aspect. i.) We had deducted Tk. 4,048/ out of Tk. 4612/- as VAT from respective bills
through Voucher # 71 dated 31.03.2011 which was encashed on 13.04.2011 and
deposited in Bank on 19.04.2011. ii). Tk. 4,390/-  out of Tk. 4,766/-deducted  as VAT
from various bills through Voucher # 20  dated 30.12.2010 which was encashed
17.01.2011 and deposited in Bank on 20.01.2011 through challan due to careless of staff.
Concerned staffs have already been alerted not to occur in future as per recommendation.
Findings # 04: Weak control over fund management system

The PPH is a running project of PIBCO. All the fund are received and expend throughout
the project period as and when required. The project follow a timeline for fund receive
and payment. The PIBCO is a self-sustained organization which requires releasing fund
from Bangladesh Bank regularly. So, PIBCO is fully aware of the requirement of
Bangladesh Bank in order to release fund from the bank. However, after the threadbare
review we revealed that the time mentioned above was just before the holy Eid festival
and the project and also the core of PIBCO were busy with monitoring the activities. The
management of PPH is also always concerned regarding the flow of project fund.

Findings # 05: Expenditure was charged beyond the budget period

The project activity was ended on September 30, 2010. But for wrap up of all other
function and closed down of all other documents and project equipments, we have taken
some additional time and spend few months more. That’s why, we charged the only
office rent with the PPH project and fund balance of PPH project was still available.

Findings # 06: Leave form was not available

Signing leave form is a pre-requisite for taking leave and that leave should be mentioned
in the time sheet. In these cases leave is mentioned in the time sheet, but applications
were not available in the file. It may happen that during shifting of office Gulshan to
Llmatia the file is misplaced or the applications were misfiled.

Findings # 07: Attendance register was not maintained

Attendance may be not maintained in any register manually, but it is maintained

electronically as time sheet. Every week each staff should submit their Time sheet to their
respective supervisor for signature.

Findings # 08: Separate bank account was not maintained for individual project

Pathfinder always encourages maintaining minimum number of bank accounts but all
country offices strictly maintain the separate ledger for each projects/funding. In the
MOR, receipt and payment are shown separately project/funding wise.