Question
In July, Wasa paid Tk302,600 as salary while Tk331,168 was paid for overtime for the 20 staff members at the booster station. In July last
In July, Wasa paid Tk302,600 as salary while Tk331,168 was paid for overtime for the 20 staff members at the booster station. In July last year, Wasa's salary expenditure was Tk277,350 and overtime payment was Tk328,286. In the same month of 2017, the expenditure for salary was Tk264,480 and that for overtime was Tk340,758. Almost similar situation has been found at other stations of Chattogram Wasa where the authorities have been spending a large amount of money for unusual overtime bills. As per the documents, 229 pump operators and electricians of Chattogram Wasa withdrew around Tk34 lakh as overtime in July 2019. Every year Wasa spends Tk5.19 crore as overtime and Tk4.16 crore as salaries of its employees. It is alleged that Wasa staff and officers have been showing extra working hours in documents to get extra payment despite having enough manpower. According to Chattogram Wasa, currently three water pumps are active at Mod 3 (Bahaddarhat, Chandagaon, Bakolia and Khatungonj areas) while 36 pumps have been closed since October 2018. But Wasa authorities have not withdrawn the employees from these pumps. These employees have also been drawing payments for overtime. As per documents, Chattogram Wasa's 49 permanent employees in Mod 3 work overtime for around 5,820 hours every month, which translates into Tk8.38 lakh, while their basic salary is Tk7.37 lakh. Earlier, 229 permanent employees of Chattogram Wasa were running 94 water pumps (deep tube-wells), booster stations and treatment plants. Here on average overtime pay was Tk30.75 lakh every month in fiscal year 2015-16. In 2016, Wasa hired 155 people as outsourcers to reduce the amount of unusual overtime which cost Tk18.60 lakh per month. Chattogram Wasa has also closed 53 water pumps since then but the overtime bills have not stopped. In 2016-17, overtime per month amounted to Tk30.75 lakh. In 2018-19, the amount was Tk34.67 lakh (Illius & Sayem, 2019). As an auditor, what will be your roles in identifying and eradicating such kind of accounting manipulation?
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