Auditing the National Rationing System Read full text in English
The audit was to investigate the data quality, validity and reliability of two sub-systems (Ration Card and Ration Distribution) of a National Rationing System (Ration System) with the comparison to the rules and regulations in order to make an assessment of soundness of the Ration system and its related operations.
- The Ration System lacks input controls and data entry verifications methods.
- Some beneficiaries were registered over a period of three months meaning that the frequency of the auditing or cleanup process is not sufficient or there are no such systems.
- Cases of registered beneficiaries with erroneous national ID number, very short names or no name at all.
- Fraudulent transactions.
- The system issues more than one ration card per house hold, not only to the head of the family (the rest of the family members being linked as dependents).
- There are ration card holders that are not defined in the system as head of a household.
- The same ration card holders are linked as a dependent on another head of a household.
- Reported cases of beneficiaries having duplicated ration quotas (once as a card holder and once as a dependent).
- Process of deactivating beneficiaries and ration cards based on multiple business reasons.
- Weak or lack of processing controls of the system.
- Existence of active ration cards (receiving rations) that belong either to deactivated beneficiaries or to a non-existent beneficiaries.
- Possibility of abusing the system.
- Faulty "definition" and "pricing" databases.
- Transactions for commodities unidentified in the system and with prices different than those defined in the pricing database.
- Unreliable statistical reports.
- Possibility of fraud.