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Dinesh DivekarDear MK31,
Do you have internal audit team that audits the claims submitted by the employees? If not, then you need to institute such team first. It is their job to do the audit of the claims. Generally, head of the internal audit reports to the Head Finance or CFO as the case may be.
Now coming to the procedure of raising a claim. Are the claims routed through the managers? If not, let all the claims be vetted by the managers and let them give undertaking stating that they have vetted the claim submitted by their juniors and they have not observed any anomaly as such.
Secondly, in your company the petrol allowance is Rs 3.5/KM. However, if the employee is claiming petrol allowance of Rs 5,000/- then it shows that the employee has travelled about 1,500 KM in the month. Assuming there are 25 working days, per day travel works out to 60 KM.
I recommend you discussing matter of conveyance allowance to the HOD. Do not express doubt on the veracity of the claims as such however, you may express your concern on rising expenditure on the conveyance allowance.
Why employees visit client's place? Are they salespersons or technicians? You may introduce the new KPI for the HOD and that is "% of Conveyance Allowance Against Sales (or Service Cost)". Thereafter, he becomes accountable to reduce the cost.
As far as mobile bills are concerned, all the telecom companies are giving free calls that includes free roaming also. In addition to this, there is free data worth of 1 GB?day. In that case, why do they need such hefty allowance? You may discuss this with HOD and reduce it to Rs 500/month.
From India, Bangalore