State Industries Promotion Corporation Internal Audit Circulars

What the circulars govern

The State Industries Promotion Corporation of Tamilnadu Limited circulars set internal procedures for responding to Internal Audit, resolving audit findings and preventing financial and administrative irregularities. They apply to General Managers, Heads of Departments, Regional Managers, Project Officers and other officers within the corporation.

The supplied text does not provide industrial land incentives, change land use, regulate allotments or alter property rights. It concerns the corporation's internal administration and audit controls.

Production of files

Circular No. 19/92 dated 24 March 1992 requires the department concerned to produce a file on the same day that the Internal Audit Department requests it. If the file cannot be produced, the department must reply on the same day, explain why it is unavailable and send it immediately when it becomes available, without waiting for another request.

Replies to audit findings

Circular No. 20/94 dated 11 April 1994 establishes the following requirements:

• Internal Audit reports must be routed through the relevant General Manager.
• Central Office departments, Project Officers and Regional Managers must route replies through the specified officers.
• Each department, Project Office and Regional Office must maintain the prescribed register for tracking replies.
• Replies must be furnished within 15 days after receipt of an audit report.
• An interim response does not close an audit paragraph. The responsible Head of Department, Project Office or Regional Office must provide a final reply.
• Replies must not rely on assumptions or implied interpretations of orders, rules or delegated powers.
• Head Office departments must decide ratification proposals concerning audit findings on their merits within a month.
• Irregularities requiring regularisation must be placed before the Managing Director. Regional Managers and General Managers cannot ratify violations.

Draft Circular No. 44/94 dated 8 July 1994 proposes to clarify that reports for Project Offices and Regional Offices are communicated to the General Manager responsible for Project Finance and Development, with a copy to the officer concerned.

Review and compliance controls

Circular No. 41/94 dated 29 June 1994 requires pending audit reports and paragraphs to be reviewed at monthly review meetings. Officers must attend with final replies and the prescribed register.

Circular No. 67/96 dated 16 October 1996 records audit concerns including stock books attested without physical verification, materials not entered before bills were passed, and inadequate scrutiny of recoupment claims and expenses.