Design & Development Response for Accident Rescue.

1. D&D – Process Review
CIN - L45203MH2000PLC129790
Strictly Private & Confidential Internal Controls – August 2018

2. Background & Observation Management Response
Background:
 Before bidding for any projects, Technical Evaluation is done of all the Projects
either by DNDU or outsourced to a vendor which is jointly approved by Design
Head and Bidding Head.
 If work is done by DNDU then, Work Programme is prepared to decide scope
of Survey, schedule of Survey & Tests to be carried out. Work programs are
reviewed by Bidding Head & Design Head / Co-ordinator.
 Basis survey & tests, a detailed Final Report is prepared. Approval for Final
Report is to be sought from Design Head and Bidding Team.
Observation:
 Documented approval for outsourcing of Technical Evaluation, Work
Programme and Final Report is not available on record.
 It is recommended to document all approvals and selection of Vendor
Decision regarding
outsourcing / selection of
vendor is taken by Design
Head.
Noted, will be complied
Noted, will be complied
Pre & Post Bidding Evaluation Process

3. Background & Observation Management Response
Background:
 All Survey Reports prepared by respective teams is to be approved by
respective Senior Engineers, Design Co-ordinators and Bidding Head
 Post finalization the Final Report is forwarded to Estimation & Costing
Department to further consider for Bidding
Observation & Recommendation:
 Documented approval for Final Report is not available on record
 Further inter department circulation of such reports should be ensured only
post obtaining necessary approvals
Noted, will be complied
by respective HoDs
Noted, will be complied
Pre Bidding Evaluation Process

4. Observation & Recommendation Management Response
Observation:
 Observed that on annual basis Expense Budget is proposed by DNDU basis
expenses incurred in the previous financial year and Bidding information
received from BDU
 The final approved Budgeted for DNDU is not communicated back to them
 Therefore, no analysis of Actuals vis-à-vis Budgeted cost is carried out by the
Team
No comment
No comment
No comment
Budgeting

5. Observation & Recommendation Management Response
Observation:
 Observed that Drawings / Designs were circulated by respective team
members by using Digital Signature of their HOD’s
 Since the Digital Signatures are not in the custody of respective HoDs,
necessary written and / or email approval should be obtained from HOD
before circulation of drawings / designs
Noted, project-wise
authorization will be
obtained before use of
digital signatures.
Use of Digital Signature

6. Observation & Recommendation Management Response
Observation:
 Observed all Drawings, Designs and Reports are communicated to respective
departments via Email
 Changes in drawings / designs were also communicated to site team via Email.
Also process of obtaining necessary acknowledgement was not followed.
 Considering the process followed Probability of miscommunication and
inconsistency in drawing / designs followed by site team is quite high
 Further, there is no system based control over the latest version of drawing /
design to be adhered by all relevant stakeholders
Recommendation:
 It is strongly recommended to use SAP system for effective communication of
drawings / designs which will also ensure that latest approved version of
Drawings & Designs are considered by Site Team for necessary construction
work
Noted. Consultations will
be held with all relevant
stakeholders for its
implementation.
Version Control

7. Observation & Recommendation Management Response
Background:
 Independent Quality audit including periodic survey of project site to check
whether the construction work is carried out as per approved drawings &
designs and as per the terms of the agreement is conducted by DNDU.
 Final Quality reports gets circulated to Project Director under intimation to
Regional Head
Recommendation:
 It is recommended to issue the quality report of DNDU Site visit to FTAC for
necessary escalation and timely closure of issues identified
 Period ATR should also be circulated so that confirmation of resolution of
quality issues is ensured
Noted, copy of IQAT
Report will be circulated
to Internal Controls for
further necessary action.
ATR to be circulated by
Project Director of SPV
DNDU Quality Audits

8. Observation & Recommendation Management Response
Observations:
 Observed that Drawing & Design SOP is not updated since 2014 and should be
updated considering the current business practiced followed
 Also observed that DNDU processes are not reviewed as part of internal audit
Recommendation:
 It is recommend to update the SOP based on current practice getting followed
in the system and also add DNDU review in Internal Audit process at least
once a year
Noted, SOP will be
updated .
SOP Updation & Audit