DECLARE SBCO CADRE AS SB AUDIT

20.02.2017

Dear friends,

Vanakkam. An important move by our Association in connection with changing  our status as Savings Bank Audit is mooted out.

A draft note prepared by our Circle Association is circulated here under.  We expect our members to read the Note  in depth and offer comments para wise to the e-mail id of our Circle Secretary - karthi.mpp@gmail.com  on or before 28.02.2017 Tuesday positively so that consolidated note will be finalised and send to General Secretary of our Association. 

REVAMP OF SBCO,  DECLARE AS “ SAVINGS BANK AUDIT ”

1.         After taking over of control accounts from erstwhile audit and accounts offices in 1960, SBCO was setup and the control work, carried out on day to day basis. The relationship of SBCO with PAO continued through statistical extracts and particulars of transactions and closing balance based on the SBCO extracts were intimated to Directorate every month.

2.         The control organization consisting of JAO/Supervisor, UDC and LDC up to July 1991. The annual confidential reports of the staff working in SBCO, ICO, Pairing unit had been entrusted with DPS/ AO ICO (SB). SBCO was considered as significant section by the Postmaster and Divisional Supdt by then.  After conversion SBCO cadre as PA SBCO w e f 01.08.1991, SBCO lost its significance and treated as one of the operative  branches like SB, Accounts etc., even though SBCO cadre is termed as distinct category and recruitment made separately.

3.         The powers of writing of APAR are vested with Divisional Head and so the SBCO officials are to work under coercion of the Divisional Head.  Whenever any irregularity is noticed while carrying out voucher checking as per control procedure, raising of OMs  is  practically not possible as the Divisional Heads have not relished over the work which is mandatory.

4.         To be frank, SBCO officials are deemed to work as supervisors of SB branch. When any incident of frauds, SBCO people are put to recovery of loss of amounts under contributory even though they are not involved any way.

5.         Despite  inspection done annually in SB and SBCO branches by AO ICO(SB) who is playing technical role over the functions of SB and SBCO branches in HOs and SOs, the sanctity on the paras regarding SB branches will not be given proper attention. Even after ten years or more, the paras of SB branch are kept pending settlement. Hence the purpose of inspection is not served.

6.         Presently the work of SBCO has undertaken so many changes in consequence of introduction of CBS in POSB. In the CBS set up, SBCO officials are directed to carryout Auditor role as prescribed and the training on this subject given in PTC. The relationship of SBCO with Postal Accounts Office almost severed after implementation of CBS and it will be completely severed after roll out of CSI and FSI.

7.         Ultimately SBCO section is dealing with the work of audit only (ie) downloading the datas from Finacle and voucher checking with utmost concentration. The term AUDIT defines “ an official inspection of an organizations account by an independent body and it cannot be expected to detect every fraud.”

8.         Fortunately the work presently done by SBCO has coincided with the definition of AUDIT. SBCO cadre are called as distinct category according to the department, in other words independent body. POSB is very large banking institution under the Department of Posts having crores of account holders and multi crore of rupees as investment by the people. Proper audit to POSB system is inevitable.

9.         In the light of growing incidence of financial frauds in POSB, it is a thought for consideration as to whether in future audit should look in to the risks and vulnerabilities facing POSB as well as the ability and effectiveness of regulators to mitigate such risks.

10.       In our strong opinion, an robust internal audit should be mooted out in POSB like various audit organizations (ie) P & T audit, General Audit, Civil Audit, Defence and Railway  Audit, taking in to the account of safety  of Public money.

11.       Now the Government / Department should take initiative to declare the SBCO as SB audit organization and its cadres as Auditor and cause order the DPS/ AO ICO(SB) as controlling authority straightaway by delinking powers of Divisional Heads and Postmasters of HO over  SBCO.

MPP KARTHIKEYAN,

Circle Secretary