Auditing System

At Palli Bandhu Unnayan Sangstha, the Internal Audit department plays a crucial role in maintaining financial integrity and adherence to policies. The department is managed by an Assistant Audit Coordinator and reports directly to the Director of Risk Management. Our dedicated team comprises 14 auditors stationed across zonal offices, ensuring thorough and localized oversight.

Audit Process:

1. Audit Planning and Execution: Each internal auditor is assigned a branch visit with a comprehensive one-week plan and a detailed checklist. This systematic approach guarantees thorough compliance with established rules and regulations.
2. Scope of Audit: The internal audit encompasses various critical areas:
   • Financial Management: Assessing financial controls and practices.
   • Regulatory Compliance: Ensuring adherence to business rules and policies.
   • Accounts and Administration: Reviewing financial records and administrative practices.
3. Portfolio and Balance Checking: The auditor conducts 100% verification of the loan portfolio and reconciles loan and savings balances with collection sheets. Additionally, program-wise reporting is carried out, including the verification of at least 100 passbooks from 10 kendras by the concerned Program Officer. Fund management is also scrutinized, focusing on cash and bank transactions.
4. Reporting and Review: Audited reports are submitted to the Executive Director. These reports are then reviewed in high-level meetings where any anomalies are discussed and clarified. Based on these discussions, punitive and corrective actions are implemented as necessary.
5. Policy and Procedure Adjustments: The insights gained from internal audits are instrumental in guiding management decisions, leading to potential modifications in policies, systems, and procedures.

External Audit

Palli Bandhu Unnayan Sangstha adheres to a rigorous annual external audit process to ensure transparency and accountability. Each year, the organization engages reputable audit firms, selected by the General Body, to conduct a comprehensive review. These firms are appointed for a one-year term, ensuring an objective assessment of our financial practices and adherence to regulatory standards.

This dual-layered audit approach—encompassing both internal and external scrutiny—helps Palli Bandhu Unnayan Sangstha maintain robust financial management and operational excellence.