Latest News | Internal Audit of CMPFO Did Not Detect Deficit Recurring in Pension Fund Account: Par Panel

New Delhi, Jul 20 (PTI) Stating that the internal audit of the Coal Mines Provident Fund Organisation (CMPFO) did not detect the deficit recurring in the pension fund account, a parliamentary panel has said a system of regular reporting by the internal audit must be put in place.

CMPFO is a body that takes care of social security of coal mine workers.

"The committee strongly depreciate the apparent lackadaisical attitude of the internal audit mechanism of the CMPFO and recommend that a system of regular and intermittent reporting by the internal audit must invariably be put in place and ensure that its recommendations are duly adopted and followed so as to avoid instances of financial mishandling in the future," according to the report of the Public Accounts Committee (PAC).

The panel further said it is dismayed to note that even internal audit could not flag the mismanagement of funds at CMPFO.

"The system of internal audit is a prima facie imperative wing within an organisation tasked with providing unbiased feedback, independent reviews of systems regarding business operations and processes of CMPFO," it said.

"The Committee...is of the firm view that the unwarranted diversion of funds and the initial untraced balance of Rs 1.71 crore are an evidence of weak internal control, checks and also failure on the part of internal financial advisory system," it added.

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