Transcript COMPLIANCE OF AUDIT REPORTS

Audit of Accounts &
Accounts Records
for the year 2009-2010
under SSA
As you are aware that the submission
of Audit Reports for the year 20082009 was badly delayed by some
States/UTs. This has invited criticism
by the External Development Partners /
MOF as GOI could furnish a
Consolidated Report on Audits for 22
States/UTs instead of 35 States/ UTs by
31.12.2009 the last date prescribed for
the purpose.
Further a review of the audit reports for the
year 2008-2009 reveals that many observations
of concern like, un-reconciled accounts or
funds in transit, bank reconciliation in arrears
or improper bank reconciliation, large
outstanding utilization certificates advances
being treated as expenditure, old outstanding
advances or lack of proper follow up action
have been repeated. Inadequate coverage of
Procurement Process or insufficient mention of
the same in audit report has also been noticed.
Many reports do not cover information about
audits of VECs or its equivalent.
MHRD has already sent a communication on
4th June 2010 to all the State Project Directors
in which the need for the timely completion
of audit work for the year 2009-10 has been
stressed. MHRD has also sent an
Implementation Schedule for Audit to the
SPDs OR 23RD July 2010 for their
convenience. It is believed that The Chartered
Accountant has since been engaged and the
Audit Work must be in progress in all the
States/ UTs.
It is therefore, enjoined upon you all to ensure
that the accounts for the year are properly
maintained. The advances against which
expenditure has been incurred during the year
are adjusted in accounts by obtaining
Expenditure Statements / UCs from the subdistrict levels & other Agencies before the
finalisation of accounts. Liability for the
expenditure incurred on the Project upto 31st
March 2010 which have not been paid for
should also be provided.
The annual financial statements are
properly drawn in time and handed
over to the Auditors well in time to do
the needful in time. It may also be
ensured that advances are not shown
and certified by the Auditor as
expenditure as has been done by some
states in the Previous years. Advances
should be shown as advances only.
Further the expenditure shown in the financial
statements should be under the same activity
heads, which are approved in the AWP&B and in
which the Budget Provision exists.
It may also be ensured that audit observations
made by the auditor in the previous year are
complied with and compliance there of is
reported to the auditor during the current Audit.
The Auditor will consider, verify the compliance
and settle, the audit objections and record the
settlement in the Audit Report. No objection
which was taken in the Previous years should be
repeated in the current year’s Audit Report.
It is also requested that the observations
made by the auditors in the current year’s draft
audit report are discussed with the auditors to
ensure that only those objections which could
not be settled during the discussion are
included in the final Audit Report.
Lastly you are requested to ensure that
audit report complete in all respects, duly
approved by the EC is submitted to
Government of India by 31st October 2010
positively.