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AEs to be issued

Accrued interest on loan

Acturaial Bonus

  R and P Account

 I and E Account

 Unposted premium

Unposted loan recoveries

Cancellation of cheques

Pension contribution short adjustment

Pension contribution non adjustment 3

Depreciation Polic !

Adjustment of advance prior to receipt of assets "

Time barred cheques #

Reconciliation for 2009-10 $

Reconciliation for 2010-11 %

Telephone charges &

Amount under adjustment '(

!ariation in outstanding management e"pences ''

#epreciation on A$% #epreciation on computers ')

Cancellation of bank drafts towards loan and claim

&verstatement of misc'receipts

'3

!ariation in &() claims bet*een +alance sheet and

Reserve Account

'!

Rangaredd, A '"

Ranga redd, claims variations '#

Reconciliation of &utstanding cheque balances *ith

those sho*n in +alance sheet

'%

.on ma/ing reversal entries of cancelled ban/ drafts' '&

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Information to be obtained

Cheques cancelled durin* the ears +

,ear -ise . District -ise

/utstandin* Cheques at the end of the ear 0 

,ear -ise . District -ise

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To be returned in original along *ith repl,

PA1 2144A5.414+#3.)(')+'3.AE 6o7)' Date8 )3 7(37)('3

9o

9he Director:Directorate of Insurance:

1overnment of AP

3#RA+A#-400001

4ir:

  4ub8 Discrepancies in preparation of Reserve Accounts7

;;;;;; As seen from the proforma accounts: the amount of cheques and

Ban< drafts cancelled durin* the ear is bein* credited to the

outstandin* balance of claims7

Durin* the verification of accounts: it -as observed that there are

variations in amounts credited to-ards cheques and ban< drafts

cancelled as detailed belo-7

,ear Amountof 

cheques

cancelled

Amountcredited

in

Reserve

Accounts

difference Amountof ban< 

drafts

cancelled

Amountcredited

in

Reserve

Accounts

difference

)((&+

'('($"(!'# &#3($&& ')'&")# '($%&) #%!(#) 2+5"#")%(

)('(+

'' ')$!'&3( '')"'"%$ '"&(3") )!'%3# "%))'% 2+533(!$'

Based on the amounts credited in reserve accounts =Es -ere

 passed to credit the same to outstandin* claims in proforma accounts7

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As seen from the information furnished to audit: ban< drafts for 

the follo-in* values of claims -ere cancelled7

)((&+'( )('(+''

>aturit2 4A5 )$'"# !$$&'

>aturit 2B5 ")#%# %#(()

Death 24A5 ))$((

Death 2B5 ))))&

?o-ever: amounts -ere credited to other claims also in =Es

 passed durin* the ears )((&+'( and '(+'' as detailed belo-7

,ear Death

claim

24A5

Death

claim2B5

4@.P@

claim24A5

4@.P@

claim2B5

=E 6o7 )! )" )# )%

)((&+'( ''(%&% ''&&!$ + +

)('(+'' + + &&"" )#"&$

Due to this: outstandin* claims -ere overstated in the proforma

accounts to the above etent7

urther: the above amounts -ere debited to insurance fund

adjustment account resultin* in overstatement of ependiture7

9his is brou*ht to notice7

,ours faithfull:

 

4r7 Audit /fficer . 414 #3

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To be returned in original along *ith repl,

PA1 2144A5.414+#3.)(')+'3.AE 6o7 Date8 7(37)('3

9o

9he Director:Directorate of Insurance:

1overnment of AP

3#RA+A#-400001

4ir:

  4ub8 discrepancies in ma<in* reversal entries of cancelled

claim cheques and claim ban< drafts

;;;;;;As seen from the information furnished to audit : claim cheques

amountin* to Rs7'($#('!# and Rs7')$!'&3( -ere cancelled durin* the

ears )((&+'( and )('(+'' respectivel7

9he cancelled cheques consistin* of follo-in* polic amounts in

addition to other additions and recoveries7

,ear >aturit

claim24A5

>aturit

claim2B5

Death

claim

24A5

Death

claim2B5

4@.P@

claim24A5

4@.P@

claim2B5

)((&+'( )%!%3&% #(((#)3 &%"#3& &&$#3# '#!$#" 3('(&#

)('(+'' 3"3'3'! %3$$#"" $")#(3 ''%"!)" '3%('$ )"(%%3

9he above amounts are to be credited to respective claim

accounts outstandin*7 ?o-ever: the follo-in* amounts -ere credited to

the claim accounts in the proforma accounts )((&+'( and )('(+''

,ear >aturit

claim24A5

>aturit

claim2B5

Death

claim

24A5

Death

claim2B5

4@.P@

claim24A5

4@.P@

claim2B5

=E 6o7 )) )3 )! )" )# )%

)((&+'( )#3!##% !%"(%'" $$()(% $$3'!' '#)&'$ 3'&)"'

)('(+'' 3'$'$"$ "&'33)" %"("'" '($'3'3 '''#(( )')&#%

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Due to this: the outstandin* claims accounts -ere understated.

overstated as detailed belo-7

,ear )((&+'(

?ead ofAccount

Amount to becredited

Amountcredited

Understatement

2+5overstatement

>aturit

claim24A5 )%!%3&% )#3!##% '')%3(

>aturit

claim2B5 #(((#)3 !%"(%'" ')!&&($

Death claim

24A5 &%"#3& $$()(% &"!3)

Death claim2B5 &&$#3# $$3'!' ''"!&"

4@.P@

claim24A5 '#!$#" '#)&'$ '&!%

4@.P@ claim2B5 3('(&# 3'&)"' 2+5'$'""

,ear )('(+''

?ead ofAccount Amount to becredited Amountcredited Understatementof outstandin*

claim

>aturit

claim24A5 3"3'3'! 3'$'$"$ 3!&!"#

>aturit

claim2B5 %3$$#"" "&'33)" '!%"33(

Death claim24A5 $")#(3 %"("'" '()($$

Death claim2B5 ''%"!)" '($'3'3 &!'')

4@.P@

claim24A5 '3%('$ '''#(( )"!'$

4@.P@ claim2B5 )"(%%3 )')&#% 3%$(#

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urther: the above amounts -ere debited to insurance fund

adjustment account instead of outstandin* cheques account resultin*

in overstatement of ependiture and understatement of outstandin*

cheques7

9his is brou*ht to notice7

,ours faithfull:

 

4r7 Audit /fficer . 414 #3

 

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To be returned in original along *ith repl,

PA1 2144A5.414+#3.)(')+'3.AE 6o7 (( Date8 ((7(37)('3

9o

9he Director:Directorate of Insurance:

1overnment of AP

3#RA+A#-400001

4ir:

  4ub8 discrepancies in ma<in* reversal entries of cancelled

cheques

;;;;;;Cheques or Ban< drafts are issued to the subscribers on

settlement of insurance claims7 In -ill consist of 4um Assured and

Bonus7 Certain other amounts -ill be added and certain amounts -ill

 be deducted from the claim amount and cheque or Ban< draft -ill be

issued for net amount7

It -as observed that the additions and deductions are adjusted to

various heads of account as detailed belo-

Additions

.ature of amount added ead of account

Ecess -ithout interest Debited to Ependiture

/utstandin* premia Debited to premium in premium in

IE Account 2Income5

Interest on /.4 premia Debited to interest on premium in

IE Account 2Income5

Ecess loan Debited to outstandin* loan Balancesheet

Interest on ecess loan Debited to interest on outstandin*

loan in Balance sheet

Accumulation Debited to premium in premium in

IE Account 2Income

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#eductions

.ature of amount deducted ead of account

Arrears of outstandin* premia Credited to premium inIE Account 2Income5

Interest on /.4 Premia arrears Credited to interest on

 premium in IE Account

2Income5

/utstandin* loan Credited to outstandin*

loan in Balance sheet

/utstandin* interest on loan Credited to interest on

outstandin* loan in Balancesheet

ee for duplicate poloc Credited to income

As seen from the records: the follo-in* cheques and

 ban<drafts -ere cancelled durin* the ears )((&+'( and )('(+''7

,ear Amount of

Cheques

cancelled

Amount of

Ban<drafts

cancelled

9otal

)((&+'( ')!&)3'% &(%&)

)('(+'' '($"(!'# )')#"#

 

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As seen from the records: the follo-in* amounts added to claims

and deducted from *ross amounts of claims -hile issuin* of the above

cheques and ban<drafts

1ross amounts of the claims

 6ame of claim )((&+'( )('(+''

>aturit Claim 24A5

>aturit Claim 2Bonus5

Death Claim 2Bonus5

Death Claim 2Bonus5

4@.P@ claim 2Bonus5

4@.P@ claim 2Bonus5

9otal

.ature of amount added 2009-10 2010-11

Ecess -ithout interest

/utstandin* premia

Interest on /.4 premia

Ecess loan

Interest on ecess loanAccumulation

.ature of amount deducted 2009-10 2010-11

Arrears of outstandin* premia

Interest on /.4 Premia arrears

/utstandin* loan

/utstandin* interest on loan

ee for duplicate poloc

Cheque Amount

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  Reversal entries to the respective heads of accounts are to

 be made in respect of the above cancelled cheques and ban<drafts7

?o-ever: the follo-in* =Es -ere passed in the proforma Accounts

=Es for the ears )((&+'(

=E

 6o7

?ead of Account

debited

Amount ?ead of Account

credited

Amount

))Insurance und

Adjustment Account )%&('#!

/.4 claims b

>aturit 24A5 )%&('#!

)3Insurance und

Adjustment Account "(3$#3"

/.4 claims b

>aturit 2Bonus5 "(3$#3"

)!Insurance und

Adjustment Account &&'((!

/.4 claims b

Death 24A5 &&'((!

)" Insurance undAdjustment Account '(()&$&

/.4 claims bDeath 2Bonus5 '(()&$&

)#Insurance und

Adjustment Account '#)&'$

/.4 claims b

4@.P@24A5 '#)&'$

)%Insurance und

Adjustment Account 3'&)"'/.4 claims b4@. P@ 2Bonus5 3'&)"'

9otal

=Es for the ears )('(+''

=E

 6o7

?ead of Account

debited

Amount ?ead of Account

credited

Amounts

)) Insurance und

Adjustment Account 33#)")&

/.4 claims b

>aturit 24A5 33#)")&

)3Insurance und

Adjustment Account#)33)3%

/.4 claims b

>aturit

2Bonus5 #)33)3%

)!Insurance und

Adjustment Account %#$(("

/.4 claims b

Death 24A5 %#$(("

)"Insurance und

Adjustment Account '(&$&(!

/.4 claims b

Death 2Bonus5 '(&$&(!

)#Insurance und

Adjustment Account ')'"""

/.4 claims b

4@.P@24A5 ')'"""

)%Insurance und

Adjustment Account )3&"#"

/.4 claims b

4@. P@ 2Bonus5 )3&"#"

9otal

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Due to this insurance fund adjustment account in IE

Account -as overstated b Rs and Rs 7

in the profprma accounts for the ears )((&+'( and )('(+'' respectivel

and

urther: 9he follo-in* heads of accounts

overstated.understated due to non ma<in* reversal entries7

ead of account Amount

to be

debited

Amount

debited

Ecess -ithout

interest

  Ependiture

/utstandin*

 premia

 premium in premium

in IE Account2Income5

Interest on /.4

 premia

 interest on premium

in IE Account

2Income5

Ecess loan outstandin* loan

Balance sheet

Interest on ecess

loan

Interest on

outstandin* loan in

Balance sheet

Accumulation premium in premiumin IE Account

2Income

Amount

to be

credited

Amount

credited

Arrears of  

outstandin*

 premia

  premium in IE

Account 2Income5

Interest on /.4Premia arrears interest on premium

in IE Account

2Income5

/utstandin* loan  outstandin* loan in

Balance sheet

/utstandin*

interest on loan interest on

outstandin* loan in

Balance sheet

ee for duplicate poloc income

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To be returned in original along *ith repl,

PA1 2144A5.414+#3.)(')+'3.AE 6o7 (( Date8 ((7(37)('3

9o

9he Director:Directorate of Insurance:

1overnment of AP

3#RA+A#-400001

4ir:

  4ub8 4hort debitin* of Pension contribution 0 understatement

of >ana*ement Epenses

;;;;;;Pension contribution for the emploees of AP1FI Department is

 bein* included in the head >ana*ement Epenses7

Durin* the verification of pension contribution records it -as

observed that the amount of pension contribution permanent emploees

of the Department -as -or<ed out and proposed to the 1overnment7

?o-ever: the proposed amount -as not full sanctioned b 1overnment

as detailed belo-7

,ear Proposed sanctioned 4hort

sanctioned

)((&+'(

)('(+''

 

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