The client is a statutory body that audits the accounts of local bodies and other institutions whose main objective is to render service to the public. As fallout of the revised municipal accounting manual and the introduction of the municipal budget manual, the matter of updating the Local Fund Audit Manual came up during discussions with the Commissionerate of Municipal Administration (CMA) and World Bank.
MaGCTM (formerly NCRCL®) was appointed as consultants for the purpose of updating Volume II of the Tamil Nadu Local Fund Audit Manual to include various revisions, updates in statutes, regulations and aspects relating to information technology.
MaGCTM conducted a study of the existing processes in the LFAD through field visits to the ULBs and discussions with the officials from the department. A gap analysis was also conducted.
As part of updating the Audit Manual, latest Government Orders were incorporated in the respective sections of the manual, new formats and checklists were introduced to standardize the process of auditing. A system of coding audit paras was also introduced to standardize recording of audit observations across the LFAD. Certain good practices in the field of fraud detection and auditing in computerized environment were incorporated in the updated Audit Manual.
The updated Volume II was presented in two parts, Part A contains the conceptual framework, introduction to auditing concepts, audit planning, audit process, audit reporting, and auditing in computerized environments. Part B contains the detailed audit procedures for each aspect such as revenue, expenditure, assets and liabilities.
The Local Fund Audit Department accepted the Manual along with the recommendations on coding of audit paras. The implementation of the same is in process.