I want to give show cause where the manager has used 50,000 for the refreshment of audit team but did not get approval from the financial officer.the therefore during a headoffice audit, it has been found that he consumed 50,000 for local audit without getting approval. any person who can write in a professional manner
From United States

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Dear Mian,
You have asked for the draft of the show cause notice nevertheless, we need little more clarification. There could be procedural flaw however, when the flaw was discovered, you are holding person responsible. An organisation should have robust system and should not depend only on the honesty of the employees.
Manager drew 50,000. But while drawing this amount did he raise cash voucher? There are two possibilities here. One is that he went to the Accounts Department to draw the cash or in the course of the operations he receives payments from the customers. In either case, a voucher needs to be raised.
Did he raise the voucher and if yes, then did he obtain approval from his seniors or he was authorised to draw this amount? In either case, settlement of the voucher must be done in a defined time span. What was the time span? Why Accounts Department did not raise objection for not settling the dues when that time limit was crossed? Why this non-settlement of the cash withdrawal was discovered only during HO audit and not during monthly accounts reconciliation?
From my point of view, in your company, more than Manager, it is the failure of the Accounts department. In other companies I found that Accounts departments are very strict and they bring to the notice of General Manager or any other authority, even minor deviations. Did something similar happen in your company?
Please clarify on the above points. While draft of the show cause notice can be provided but then by issuing such notice the real issues could be pushed under the carpet. That is detrimental to your organisation.
Dinesh Divekar

From India, Bangalore
Dear Dinesh Divekar
Thanks for the reply. In fact, we have 25 shopping mall, in which manager is responsible for the collection of monthly rent from the shop holders and liable to deposit in the bank. After 6 months at the time of audit, he discloses that i have used 50,000 for the refreshment of local audits. He did not get permission from the management as well as from accounts department. Our procedure is to get monthly rent from the shop holders. Most of the shoping mall holder somtime shows empty stall etc. He admitted that he used for refreshment purpose but did not get permission from the accounts department. I need a letter

From United States
He did not raise any vouchers not get any permission from the seniors. but he used money comes from the shop holders.
From United States
Dear Aamir,
The question still remains, why the GAP of 6 months? During these 6 months, he may have deposited a lesser amount in the accounts on each month? Why the question was brushed for so many months? As per the manager, the accounts department and his seniors are also responsible for this error.

From India, Mumbai
Thanks for the reply.
In fact, he is working as a manager and he has 140 stalls of different commodities, management was unaware about 50,000 because he used from rent collection. Where the manager is liable to collect rent from the stall holders and then deposit into the bank. I think he did not show fully operationalized stall/shop to senior but at the time of aduit he said i have consumed 50,000 throusand for refreshment purpose. Now we are require to give him show casue "He used 50,000 from the rent or shoping mall income and he did not tell to the senior or did not get permission from the senior. Kindly base on this line send me a letter plz

From United States
Dear Mian,
Now you have come up with the clarification. Nevertheless, it is a system failure. Why Accounts Department did not raise objection for the short deposit of the rent by the manager? Whom this Manager report to? Why he did not check whether all the receipts were proper or not was there any short collection.
Therefore, at this stage, it is important to conduct the enquiry, identify the system failure, if any and then come to failure of the people in the system. Senior authorities as well as accounts department have failed in this matter unarguably. Mere taking action against the Manager will not suffice the purpose.
What we are saying is in your organisation's interest. We the members of this forum are neutral and view all the posts equanimously. It is not binding on us to fulfil the requirement of the fellow member because he/she has asked us to do and that too in defiance of reasonable judgement.
Dinesh Divekar

From India, Bangalore
I agree with Mr. Divekar.... but still employment is provided on the trust only. An employee should not make use of the weakness of the system and deceive the organization. In the first instance a show cause notice can be issued asking reasons for utilising the Office amount without approval. Then based on his explanation, u can decide further action. Further as suggested by Mr. Divekar pl make sure the system itself will take care and he should deposit the amount collected as rent and then draw the same after approval from the authorities by raising the voucher for any expenses.
EX-Sr. Mgr(HR) PSU.

From India, Mysore

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