What is Administration

Dept functions?
• Management have policies and
procedures that an administration
department has put in place to help
ensure that the organization meets
its goals and objectives.
 What are The Objectives
of Administration Dept?
• Safeguarding assets
• Operational efficiency
• Compliance with applicable laws and
regulations
• Procuring materials for setting up
branches
• Protecting and Monitoring of
company’s assets
 Risk Assessment
• Risk assessment is the evaluation to
determine those areas and functions
within the district and each
department that have risk of errors,
noncompliance, and fraud.
• Controls may then be put in place to
help mitigate the risks identified
during risk assessment.
Administration Activities
• Physical control
• Admin activities
consist of the of assets
specific policies • Segregation of
and procedures duties
that are put in • Authorization of
place to mitigate
activities
the risk of error,
noncompliance, • Adequate
and fraud. There documentation
are several • Procurement
categories of Committee
Admin activities
meeting & review
 Physical Control of
Assets
• Limit Access
– Supplies
– Building
– Computer Programs
– Cash
 Authorization of
Activities
• Transaction Cycles
– Payment under 2 lakhs
– Purchasing
– Cash Receipts
– Petty Cash Management
– Budget Reporting
 Segregation of Duties

• Responsibility for operations should be

separate from the related record-keeping.

• Responsibility for the custody of assets

(as well as authorization of transactions
related to assets) should be kept separate
from the accounting for those assets.
Adequate Documentation
• Documents should be as simple as
possible so that they are clearly
understood by all users.
• Documents should be prenumbered
and the use of the documents should
be periodically verified to ensure
accountability.
 Limitations on
Administration Dept
• The effectiveness of any system of
Admin Control depends on the
competence of the people who use it.
• Admin control can be weakened by the
management override of control
activities.
 Admin Dept Functions
(Con’t)
• Purchase Order Changes
• Vehicle Tracking and Maintenance
• Vehicle Assignment
• Branch Expansion and renovation
• Fixed Asset Control
• Logistics and Procurement Control
• Document Control(Archive)
 Prevention of Admin
Risks
• Strong Practice Policy and Procedure
• Recruit right person for the right
place
• Have to make cross check with other
departments
• Obey the practice and procedure of
procurement policy