AUDIT CHECK LIST FOR MATERIALS MANAGE

POINTS AT HO
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POINTS AT SITE
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AUDIT CHECK LIST FOR MATERIALS MANAGEMENT AT

POINTS AT HO

Proper cost estimation for resources for site stores like material handling facilities, security arrangement ava
Avaialiability of organisation structure for site stores.
Store incharge & stores assistants identified & recruited/allocated for the site ?
Stores place ( covered, semi covered, closed )planned based on the scope of supply.
Material Handling contractor finalised
Material identification system finlalised ? ( formal document available?)
Are required inputs like estimated tonage, maximum weight to be handled, total scope, commercial do's /do
Is barrel given for the site for site purchase order numbering ?

Is document giving the estimated maximum scrap generation for categories like structural steel, plates, reif
sent to site?
POINTS AT SITE
Planning at site
Grid plan for stores avaialable ?
Separate storage areas made e.g open yard, closed shed, controlled environment stores, scrap yard etc)
Separate receipt & inspection area ?
Adequate covering material available ?
Security arrangements made well before start of despatch?
Are inputs like unpriced Po copies, material expected to reach site, commercial dos & don'ts etc. available a
Is stores area planned & allocated for every turnkey package vendor?
Receipt & Inspection
In case of damage, short material receipt, transporter's signature is obtained on the report & a remark is ma
DBRs made & a signed scanned copy is sent to HO daily ?
MDR made & sent to HO within maximum 5 days from the receipt of material ?
Receipt inspection carried out & RIR is made & sent to HO within max 5 days from the receipt of material ?
Insurance formalities completed for the damaged material ?
Damaged material stored seperately in the marked area ?
Are all boxes/crates repacked after receipt inspection before moving the same to stores ?

Material Receipt (MR)& Material Issue Voucher (MIV) taken from customer for all the received & accepted ma
separate contracts)

In case of one composite contract on TL, a authorization letter from TL to TIL for receiving material on TL's b
taken from the customer ?
Are all site purchased items inspected & Material Receipt Advice is prepared ?
Storage,Preservation & Handling
Check the stock ledger entries for taking the accpeted material (after obtaining MR & MIV from the custome
All the storage, preservation, Handling instructions are followed as per doc PWR-C-G-17 ?

For all material received from the turnkey package vendors MR, MIV prepared, material is taken in stock by e
on Material Requisition cum Issue Voucher for E&C?
Is all material stored identified as per the material identification document ?
Is there any damage during storage, if yes are isurance formalities done for such cases ?
Is rejected material stored seperately in the marked area ?

Is Thermax owned material which is not to be handed over to the customer stored seperately & all such mat
Is physical stock taking carried out once in a quarter & duly signed report is available ?
Material Issue
All material issued only against Material Requisition cum Issue Voucher ?
Are all MRIV signed by the authorized persons ( is list of authorized persons from TIL & vendors/contractors
Is loan register maiantained ? Any material given On Loan basis is registered in the loan register ?
Is material given on loan returned back against MRV and within 3 months ? If not value of such material is d
For all material issued for sending out for repairs/replacement all documentation requirement fulfilled (for ta
Is such material issued against MRIV ?

Is list of authorized signatories for issuing gate passes ( Returnable & Non returnable seperately) available ?
For all material issued against gate pass is there entry in the gate register ?
Is material issued against returnable gate pass inspected after receipt & taken into stock against MRV ?

Is value of material debited to the concerned party/person in case the material sent out agaianst returnable
committed date?
Is list of open gate passes made & reviewd by stores incharge & site incharge periodically ?
Local / site purchases
Is a copy of site purchase policy which specifies max value limit for site purchase avaialable ?
Are all site purchase indents approved by Project Manager ?
Are purchase indents signed by site incharge
Is comparative statement made for every site purchase order ?
Are comparative statements giving justification of selection of vendor approved by the project manager ?
Is purchase order released in the prescribed format with the unique number within the barrel given by Finan
Are all other processes like receipt, inspection, storage, issue etc. followed ?
Is payment made against Material Receipt Advice (MRA), original bill/invoice from the vendor, receipt inpsec
Are all documents like purchase order copy, MRA, receipt inspection report copy, original bill/invoice, bank v
Is expense statement for site purchases made & sent fortnightly to HO which also has forecast for the next f
Scrap Handling & disposal
Are scrap dealers ( three minimum)in the region identified & approved (customer code taken)
Are expected rates for scrap available from HO.

Is scrap register maintained ( As per the standard format) & details for each site contractor entered into the
the contractor?
Is scrap generated returned back by the contractor with the weighment slip through MRV & accordingly the

Is scrap generated by the contractor more than the estimated scrap qty ? If yes is excess scrap generation j
Project Manager?
In case justification given by the contractor is not acceptable, is the equivalent amount debitted to the conc
Is reusable material is seggregated from the scrap material & stored seperately ?
Is scrap material stored seperately & seggregated according to the type e.g steel, cables, insulation materia
Are tender issued to the scrap delaers for sale of scrap ( min three) alongwith the terms & conditions ?
Is comparative statement made for every scrap sale transaction ? Isit approved by site incharge, project ma

If it is single despatch or multiple despatches in one single day, is DD taken for the full amount for scrap sal
within one working day and informed to HO finance ?

In case of multiple despatches extending over more than one day, is security deposite ( around 25% of the t
leaving last vehicle & returning the security deposit money?

Is empty vehicle & loaded vehicle weighing slips are avaialble ? In case weighing scale is not available at sit
vehicle weighing slips ?
Is permission to release of vehicles received from the Project Manager & HOD construction before allowing t
Are all documents( e.g invoice, weighing slips, gate passes, DD details etc) related to scrap material disposa
Is scrap material of turnkey contractors/vendors allowed to be disposed off by them as per the contractual p
Disposal of Excess Material
Is list of excess material and site infrastructure material prepared & item in the list are inspected for checki
Is this list sent to HO for allocation to the other projects and list of items which are to be resued received fro
Are all the items to be reused/reallocated to other projects stored seperately ?
Is the list of items which can not be reused & hence to be scrapped made and sent ot HO with the reasons f
Is scarp sale process followed for the sale of scrap generated out of excess material ?
Is reuasable excess material sent to the decided project site with proper documentation?
Security Arrangements
Fencing for the storage area
Lock & key arrangements for small & costly items ?
Single entry & exit point ?
Security guards at all entry & exit points with proper checking & register for incoming & out going vehicles &
Proper area lighting provided ?
Round the clock security guard available ?
Every incoming & out going material/vehicle enetred in the security register at gate ?

Safety
As per safety manual fo site, a separate audit is conducted hence not in perview of this audit.
Are all formats are as per standard formats as given alongwith the Materials Manual ?

AUDIT CHECK LIST FOR MATERIALS MANAGEMENT

POINTS AT HO
1
2
3
4
5
6
7
POINTS AT SITE
A
1
2
3
4
5
6
7
B

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2
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5
6
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8
9
C
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8
D

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E
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F
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6
7
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12

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15
G
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H
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AUDIT CHECK LIST FOR MATERIALS MANAGEMENT AT SITE

OINTS AT HO
Proper cost estimation for resources for site stores like material handling facilities, security arrange
Avaialiability of organisation structure for site stores
Store incharge & stores assistants identified & recruited for the site ?
Stores place ( covered, semi covered, closed )planned based on the scope of supply
Material Handling contractor finalised
Material identification system finlalised ? ( formal document available?)

Is document giving the maximum scrap generation for categories like structural steel, plates, reifor
material available & sent to site?
OINTS AT SITE
Planning at site
Grid plan for stores avaialable ?
Separate storage areas made e.g open yard, closed shed, controlled environment stores, scrap yar
Separate receipt & inspection area ?
Adequate covering material available ?
Security arrangements made wel before start of despatch?
Are inputs like unpriced Po copies, material expected to reach site, commercial dos & don'ts etc
Is stores area planned & allocated for every turnkey package vendor?
Receipt & Inspection

In case of damage, short material receipt, transporter's signature is obtained on the report & a rem
DBRs made & a signed scanned copy is sent to HO daily ?
MDR made & sent to HO within maximum 5 days from the receipt of material ?
Receipt inspection carried out & RIR is made & sent to HO within max 5 days from the receipt of m
Insurance formalities completed for the damaged material ?
Damaged material stored seperately in the marked area ?
Are all boxes/crates repacked after receipt inspection before taking the same to stores

Material Receipt (MR)& Material Issue Voucher (MIV) taken from customer for all the received & acc
from customer i.e TL & TIL separate contracts)

In case of one composite contract on TL, a authorization letter from TL to TIL available for receipt o
customer and MR & MIV taken from the customer ?
Are all site purchased items inspected & Material Receipt Advice is prepared ?
Storage,Preservation & Handling
Check the stock ledger entries for taking the accpeted material ( after obtaining MR & MIV from the
All the storage, preservation, Handling instructions are followed as per doc PWR-C-G-17 ?
For all material received from the turnkey package vendors MR, MIV prepared, material is taken in
then issued to the concerned vendor on Material Requisition cum Issue Voucher ?
Is all material stored identified as per the material identification document ?
Is there any damage during storage, if yes are isurance formalities done for such cases ?
Is rejected material stored seperately in the marked area ?

Is Thermax owned material which is not to be handed over to the customer stored seperately & all
Asset Register ?
Is physical stock taking carried out once in a quarter & duly signed report is available ?
Material Issue

All material issued only against Material Requisition cum Issue Voucher ?
Are all MRIV signed by the authorized persons ( is list of authorized persons from TIL & vendors/con
Is loan register maiantained ? Any material given On Loan basis is registered in the loan register ?

Is material given on loan returned back against MRV and within 3 months ? If not value of such mat
party ?

For all material issued for sending out for repairs/replacement all documentation requirement fulfill
credit)
Is such material issued against MRIV ?
Is list of authorized signatories for issuing gate passes ( Returnable & Non returnable seperately) a
For all material issued against gate pass is there entry in the gate register ?
Is material issued against returnable gate pass inspected after receipt & taken into stock against M

Is value of material debited to the concerned party/person in case the material sent out agaianst re
within 2 months from the committed date?
Is list of open gate passes made & reviewd by stores incharge & site incharge periodically ?
Local / site purchases
Is a copy of site purchase policy which specifies max value limit for site purchase avaialable ?
Are all site purchase indents approved by Project Manager ?
Are purchase indents signed by site incharge
Is comparative statement made for every site purchase order ?
Are comparative statements giving justification of selection of vendor approved by the project man
Is purchase order released in the prescribed format with the unique number within the barrel given
Are all other processes like receipt, inspection, storage, issue etc. followed ?

Is payment made against Material Receipt Advice (MRA), original bill/invoice from the vendor, recei

Are all documents like purchase order copy, MRA, receipt inspection report copy, original bill/invoic
finance ?
Is expense statement for site purchases made & sent fortnightly to HO which also has forecast for
Scrap Handling & disposal
Are scrap dealers ( three minimum)in the region identified & approved (customer code taken)
Are expected rates for scrap available from HO

Is scracp register is manainted & details for each site contractor entered into the same ? Is it udate
work by the contractor?

Is scrap generated returned back by the contractor with the weighment slip through MRV & accord
is updated ?

Is scrap generated by the contractor more than the estimated scrap qty ? If yes is excess scrap gen
got it approved from EPM & Project Manager?

In case justification given by the contractor is not acceptable, is the equivalent amount debitted to
Is reusable material is seggregated from the scrap material & stored seperately ?

Is scrap material stored seperately & seggregated according to the type e.g steel, cables, insulatio
etc.
Are tender issued to the scrap delaers for sale of scrap ( min three) alongwith the terms & conditio

Is comparative statement made for every scrap sale transaction ? Isit approved by site incharge, p
If it is single despatch or multiple despatches in one single day, is DD taken for the full amount for
dealer ? Is DD deposited in bank max within one working day and informed to HO finance ?

In case of multiple despatches extending over more than one day, is security deposite ( around 25
amount receipt is ensured before leaving last vehicle & returning the security deposit money?

Is empty vehicle & loaded vehicle weighing slips are avaialble ? In case weighing scale is not availa
& stamped the empty & loaded vehicle weighing slips ?

Is permission to release of vehicles received from the Project Manager & HOD construction before a
out of site ?
Are all documents( e.g invoice, weighing slips, gate passes, DD details etc) related to scrap materia
Is scrap material of turnkey contractors/vendors allowed to be disposed off by them as per the con
Disposal of Excess Material

Is list of excess material and site infrastructure material prepared & item in the list are inspected f
Is this list sent to HO for allocation to the other projects and list of items which are to be resued rec
Are all the items to be reused/reallocated to other projects stored seperately ?
Is the list of items which can not be reused & hence to be scrapped made and sent ot HO with the
for reuse ?
Is scarp sale process followed for the sale of scrap generated out of excess material ?
Is reuasable excess material sent to the decided project site with proper documentation?
Security Arrangements
Fencing for the storage area
Lock & key arrangements for small & costly items ?
Single entry & exit point ?
Security guards at all entry & exit points with proper checking & register for incoming & out going
Proper area lighting provided ?
Round the clock security guard available ?
Every incoming & out going material/vehicle enetred in the security register at gate ?
Safety
As per safety manual fo site, a separate audit is conducted hence not in perview of this audit.