Arohan Annual Report FY 20-21

the audit findings in a structured and periodic manner. Arohan has adopted a paperless, end-to- end technology driven audit management system and is the first MFI based in Eastern India to use Perdix’s audit software. Methodology and Reporting The Internal Audit function at Arohan conducts audit of all operative branches once every quarter. The audit is focused on a three-pronged approach namely, i. Field Processes, ii. Back-End Activity and iii. Customer Contact. i. The Field Process includes audit of the logs and practices of business operations including Verification, Collection and Disbursements. ii. Back-End Activity approach is designed to screen for deviations in any documentation and administration related activities that drive business continuity. iii. Customer Contact cross checks all systems and processes that results in customer interaction and business transactions. These three approaches are assigned appropriate weightage within a dynamic range, to reflect the final Audit score of each Branch. Each Branch, having undergone audit every quarter, is assigned an audit grading based on the observations and scores of each quarter. The resultant grade acts as a significant parameter in defining the organisation’s quality parameter and contributes to a significant share of the performance appraisal programme of all concerned staff or operating unit. For Field operations, two types of audits are conducted: a regular audit and a snap audit. A regular audit is a comprehensive audit, which covers adherence to policy and procedures, while a snap audit involves an audit of only critical or high-risk elements of such business functions. Support functions, including Compliance, Human Resources, Administration, Information Technology, Central Operations, Finance and Accounts are also audited at least twice in a year. High emphasis is further enforced on monitoring adherence to compliance and regulatory statutes. Overcoming the limitations of the COVID-19 lockdown On-site Internal Audit of branches was affected due to prolonged lockdown in the first 2 quarters of FY 2020-21. Post May 2020, due to local restrictions, visiting a few branches was not possible. The team mitigated the risk by adopting innovating approaches like tele-calling, remote audit based on scanned documents and analysing relevant MIS/records. Management Discussion & Analysis 59