Transcript 19.08.2013Ashok-Sinha - National Academy Of Audit and

Audit of Autonomous Bodies:
Points Noticed in SAR
O/o DG (Central ) Chandigarh
Postgraduate Institute of
Medical Education and
Research (PGIMER),
Chandigarh
Main Audit Comments included in the
SAR of PGIMER
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Grants received for other than specific purpose: Above
includes amount received for Guest Room charges Rs.10.43 lakh
and Share of PGI in conducting ICMR/JRF examinations (on
behalf of Indian Council Medical Research, New Delhi)
Rs.24.49 lakh. These should have been shown in main grant as
income of the Institute and not as a liability. This has resulted in
overstatement of liability by Rs.34.92 lakh as well as
understatement of income and Corpus/Capital Funds to the same
extent.
Patient Grant: Above includes Rs. 77.15 lakh being amount
received for package charges that should have been treated as
income of the Institute. This has resulted in overstatement of
liability by Rs.77.15 lakh as well as understatement of income
and Corpus/ Capital Funds to the same extent.

Amount payable to other Departments
Above includes Rs. 216000, the excess amount for Cost of Beds received
from Punjab Govt. which is shown outstanding for more than one year. On
the other hand the Institute has shown Rs. 15480000 as the Cost of beds
due from Punjab under the Sundry Debtors in the Assets side of the
Balance Sheet. This needs to be reconciled.
General Provident Fund (GPF): Rs. 16862.00 lakh
Government of India, Ministry of Finance announced (19-3-2012) that
during the year 2011-12, accumulations at the credit of subscribers to the
General Provident Fund and other similar funds shall carry interest at the
rate of 8% for the period from 1-4-2011 to 30-11-2011 and 8.60 % with
effect from 1-12-2011. The effect of the above said announcement was
neither given in the accounts nor the fact disclosed. It has resulted in
understatement of liability on account of GPF and overstatement of
Accrued Interest by Rs.29.60 lakh.
Deposit with Chandigarh Housing Board: Rs. 990.76 lakh
It includes Rs. 487.22 lakh deposited with the Chandigarh Housing Board
for construction of 32 Type IV and 64 Type III houses. These houses were
taken over by PGI authorities from CHB on 05.07.2005 and 11.07.2009
respectively, complete in all respects. Accordingly, these amounts should
have been capitalized. Non capitalization of the amount has resulted in
overstatement of deposit with CHB and understatement of fixed assets by
Rs. 487.22 lakh.
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Following comments were included
in the Annexure to SAR of PGIMER
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1.
2.
3.
4.
5.
System of Internal Control
The Internal control system is considered adequate and commensurate with the
size and activities of the Institute except in the area of:
Annual closing of Broadsheets of General Provident Fund (GPF), Employee
Group Insurance Scheme (EGIS) and New Pension Scheme (NPS) has not been
done
General instructions for handling cash as contained in Central Government
Account (Receipt and Payments) Rules, 1983 were not complied with by the
Institute.
Passing of Bills: Central Government Account Receipt and Payment Rules,
1983 envisages that the bills should always be signed by the DDO. No other
signature is valid. Test check of records of the Institute revealed that the bills
passed for payment in the Institute were not signed by the DDO who has been
authorised by the Director of the Institute.
Accounting manual had not been prepared by the Institute.
Internal Audit System: Though an Internal Audit cell exists in the Institute, no
internal audit report has been prepared, thereby defeating the purpose of
creating the cell.
National Institute of
Technical Teachers’
Training and Research
(NITTTR), Chandigarh
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Main Audit Comments included in the SAR of NITTTR for the
year ended 31-3-2012 were as under:
Provision for Pension Fund
Provision for liability towards pension on superannuation of
employees needs to be made on actuarial basis as per the format
prescribed for Central Autonomous Bodies, by the Government of
India. The same has not been done. Non-provision of pension fund
has resulted in understatement of liabilities as well as overstatement
of corpus/ Capital fund.
Land
Above does not include Rs.15.68 lakh paid (April 1979) for free
hold land measuring 15 Acre in Sector 26 in possession of the
Institute. It has resulted in understatement of fixed assets as well as
Corpus/ Capital fund by Rs.15.68 lakh.
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Assets under GOI Projects
These assets are created out of Grants for Specific purpose/
projects as such these assets should have been shown separately
as utilization under Earmarked/ Endowment Funds as required
in Form of Financial Statements for the Central Autonomous
Bodies. This has resulted in overstatement assets as well as
liabilities by Rs. 45.39 lakh.
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Notes on Accounts
Further, the National Buildings Construction Corporation Ltd.
being consultant has also requested (18-6-2011) the Institute to
pay Rs.38,41,465/-, so that the award payment to the
contractor could be released. As the payment has not been
released so far, the same should have been shown as ‘claims
against the Institute not acknowledged as debts’ under the head
Contingent Liabilities and Notes on Accounts, as per
requirement of the Schedule-25 of the Common Format of
Accounts. However, the same has not been done.
General
Broadsheet(s) in respect of Provident Fund (` 1164.75 lakh)
has not been maintained in the format prescribed in the para
6.8 and the closing has also not been done in the manner
prescribed in the para 6.9 of Civil Accounts Manual.
Following comments were included in the Annexure
to SAR of NITTTR
A
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B
1.
2.
3.
Adequacy of Internal Audit System:
The institution has an internal audit wing. However, the internal audit
was deficient to the following extent:
Internal audit reports were not generated.
Internal audit manual had not been prepared by the Institute.
The quantum of records to be checked by internal audit had not been
fixed.
Audit programmes were also not formulated.
Adequacy of Internal Control System:
Register/ list of title deeds for the landed properties and buildings was not
being maintained.
Security deposits/ fidelity guarantees were not obtained in respect of
employees handling valuables such as cash and stocks.
There was no plan of rotation of duties of employees dealing with cash,
stocks and other valuables.
No Accounting manual had been prepared by the Institute.
B.R. Ambedkar National Institute of Technology (NIT),
Jalandhar
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•
Balance Sheet - Liabilities - Corpus/ Capital fund - Rs. 22775.94 lakh
In accordance with prescribed Common Format of Accounts for Central
Autonomous Bodies for the Balance Sheet, the balance of Net Income
(Expenditure) has to be transferred from the Income and Expenditure A/c to
Corpus/ Capital Fund, whereas, the Institute transferred the same to
Reserve and Surplus. This has resulted in understatement of Corpus/
Capital Fund and overstatement of Reserve and Surplus by Rs.33.13lakh
(after adjustment of deficit of previous year).
Assets - Current Assets, Loans and Advances (Schedule-11):
Rs.5216.88 lakh
Above includes an amount of Rs.25.98 lakh on account of advances
outstanding against employees for more than six months which further
include an amount of Rs.14.76 lakh which are outstanding for more than 5
years. Either these have been written off or to be disclosed separately by
way of note. This has resulted into overstatement of Current Assets Loans
and Advances and understatement of loss to the extent of 14.76lakh.
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Notes to Accounts (Schedule-25)
The expenditure incurred for import of equipments valuing Rs.
46.29 lakh by the Institute in foreign currency has not been
disclosed separately.
The expenditure of Rs.25.86 lakh incurred on foreign travel by
the officers/officials of the Institute was not shown.
Neither the Contingent liability in respect of 12 court cases (9
in Punjab & Haryana High Court plus 3 other cases) filled by
the individuals / employees against the Institute and are
pending as on 31.3.2012 has been provided nor has the fact
been disclosed.
Sant Longowal Institute of Engineering and
Technology(SLIET), Longowal
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Consumable in Departments/Labs: Rs.102.42 lakh
(Schedule 12) - Office Consumables: Rs.5.61 lakh
Above includes a payment of Rs.2.90 lakh made to M/S
Spectra Computech Pvt.ltd. Chandigarh (Rs.2.74 lakh)
and M/S Sagar Sales Corporation Patiala (Rs.0.16 lakh)
on account of supply of personal computer and fax
machine. As both of these items are non consumables
items and so these items should be capitalised. This has
resulted into overstatement of expenditure and
understatement of fixed assets by Rs.2.90 lakh.
Indian Institute of Advance Studies (IIAS), Shimla
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Income and Expenditure Account : Expenditure- Other
Administrative Expenses (Schedule 12): Rs. 9.09 Crore
The above includes Rs.383.78 lakh (Maintenance of
residential and non-residential buildings Rs.21.72 lakh,
Electrical Works Rs.13.30 lakh, Special repair and
maintenance of Rashtrapati Niwas: Rs.348.76 lakh)
which was given as advance for deposit works to CPWD,
but was accounted as final expenditure in the Income and
Expenditure Account. This has resulted in overstatement
of Expenditure and understatement of Current Assets,
Loans and Advances by Rs. 383.78 lakh.
Central University of Kashmir, Srinagar
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Income and Expenditure A/c : Income-Interest
Earned: Rs. 58.40 lakh (Schedule 7)
Above includes Rs.56.54 lakh on account of Interest
earned on Saving accounts and FDR on the funds
invested from the Unspent Grant-in-Aid. Since this is
not the income of the University, it should have been
credited to concerned head Grant-in-Aid. This has
resulted into overstatement of Interest Earned and
understatement of Current Liabilities and Provisions
(Schedule-2) by Rs.56.54 lakh.