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National Institute of Co -operative Development ANNUAL REPORT - 2010
1
Annual Report -2010
National Institute of Co-operative Development
Polgolla
National Institute of Co -operative Development ANNUAL REPORT - 2010
2
Contents
Page
Introduction 01
The Chairman’s Message 02
Director General’s Message 03
Vision, Mission 04
Our Values 05
The Aims and the Goals of the Institute 06 - 07
Board of Management 08 - 10
Board of Studies 11 - 13
Staff 14
Financial Progress 15 - 16
Details of Educational Activities 17 - 26
Special Activities Performed During Year 2010 27 - 29
Divisions supporting the NICD, their activities and facilities provided to the
Success of the Institution 30 - 33
Annual Accounts 34 - 46
Notes to the Accounts as at 31ST December 2010 47 - 49
Report of the Auditor General on the Financial Statements 50 - 58
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Introduction
The Sri Lanka Cooperative School was established as the National Institute of Co-operative
Development (NICD) with the intention of moving away from the traditional co-operative education
system that prevailed and to develop a new co-operative education system with new strategies and
methodologies enabling to face globalization.
With the intention of enabling the co-operative system and the co-operative education to face
globalization and also work as an independent organization without much state bondages, the
National Institute of Co-operative Development was established and incorporated under act no. 01
2001 on 01st July 2001.
A Board of Management consisting of representatives from important Ministries and eminent
personnel selected from the state and the private sector were appointed to manage the organization.
The goal of the newly established Institution is to develop skills through vocational training applying
local & international level educational & training strategies. The educational environment and ample
space that the Institution possesses is a major factor that enables to achieve the expected goals.
During the year under review, the institute has carried out a number of Diploma level, Certificate
Level and short term subject oriented training programmes for the benefit of co-operative and the state
sector officials.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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The Chairman’s Message
I take great pride & pleasure in sending this message to the annual report 2010 of the
National Institute of Co-operative Development that has taken the leader ship and the
responsibility in the development of human resources in the co-operative movement.
It was a unique feat that it was possible to conduct several programmes to support the
rejuanation of the co-operative movement under the 2010 ‘Mahinda Chinthana’ concept.
In comparison to year 2009, our institution has been able to increase the programme income
by 73%, number of programmes by 44% and the number of participants by 51% which I
consider a considerable achievement.
In addition to our mandate, we have taken a step further by opening model Co-op City Super
markets and provide training to island wide Co-op City and Mini Co-op City staff.
I also see it as a privilege to have been associated with the construction work on the largest
auditorium in the Central Province that the National Institute of Co-operative Development
intend to gift to the nation.
Several special welfare programmes were organized for the development of the physical
resources as well as human resources of the institute. I wish to commend the Director
General and the members of the staff for their commitment and hard work in making these
events successful.
I take this opportunity to wish the institute that their efforts to develop the co-operative
movement in leading the nation to be the ‘Miracle of Asia’, could be achieved.
Lakmal Ratnayake
Chairman
NICD - Polgolla
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Director General’s Message
With the objective of developing the human resources and the capacity of the co-operative
movement of Sri Lanka, the Sri Lanka Co-operative School was incorporated under the
Parliament Act No. 01 of 2001 under the name National Institute of Co-operative
Development.
The National Institute of Co-operative Development is currently working towards producing
a human resource component rich in management skills and new technology bringing in a
new vision to the co-operative movement. With the expansion of the computer laboratory
within the new building complex, we were able to develop the physical resources of the
Institute.
The Institute was able to contribute to the growth of the co-operative movement by having
close links with all stakeholders of the movement and was able to organize and conduct
programmes targeted directly to the needs of the co-operative movement.
I wish to convey my sincere thanks and appreciation to all those who contributed in different
ways towards achieving the goals of the institution.
Gamini Rajarathna
Director General
National Institute of Co-operative Development
Polgolla
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Vision
Stepping into a self motivated, independent, and stable co-operative
entrepreneurship in Sri Lanka, by year 2015.
Mission
To build up a stable and independent co-operative entrepreneurship in Sri Lanka
we will work with our beloved contributors, staff members and co-operators, in
unity and team wise, facilitating in educational, training guidance and
experimenting and developing with modern and creative shedule.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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OUR VALUES
OUR FIVE
SIDED VALUES
Aim at the customer
Our consumer is the co-
operative community. so
we always expect to
treat them equally with
honor and
understanding, without
any discrimination of
status or their standard.
Creativity and innovation
Let’s understand the necessity of
developing the co-operative
enterprise in a creative and
innovative manner. For this our
vision is to introduce new
programmes and modern
approaches through which we
hope to reveal and bring the
movement’s motive to a better
performance.
Activeness with Unity
Our aim is to spread among
the consumers, in every
section, preserving the
qualitative values, to the
best of our ability,
according to the taste of the
consumers.
Value of the staff
Our expectation by
creating a suitable
working environment,
performance and the
staff motivational
factors thorough higher
performance in the
institution and award
the value of our staff.
To disperse a
qualitative level of
service
We confirm all the
higher values of our
services and their
distinguish quality.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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The Aims and the Goals of the Institute
1. Effective development of the human capital involved in the co-operative movement of Sri Lanka
01. Organising discussions, workshops, seminars and field visits to for the advancement of
management level professionals of the co-operative organizations
02. Organising discussions, workshops, seminars and field visits to enhance the knowledge,
skills, and attitudes of middle-managers.
03. Organising workshops and training programs to develop knowledge, skills, capabilities
and attitudes of operations level managers.
04. Enhancing knowledge, skills and capabilities of co-operative officers of the State Sector.
05. Using distant education systems.
2. Contributing to bring the efficiency of the co-operative organizations to a higher level.
06. Brining the efficiency and the quality of co-operative organizations to a higher level.
07. Introducing and carrying out consultancies.
08. Holding at least two ‘business clinics’ per year according to requests made by the weak
organizations and helping those organizations to overcome those weaknesses.
3. Carry out research and development activities for expansion and revival of the co-operative
movement.
09. Researching in to the instances of successes and failures of the co-operative movement
and based on findings providing guidance for the benefit of the co-operative movement.
10. Producing and obtaining documentaries about the success stories of the co-operative
movement.
11. Contributing to the creation of model co-operative enterprises and empowering and
organizing women within the co-operative concept.
4. Acting as a centre development of co-operatives
12. Creating and maintaining and information database and a website that covers the entire
co-operative sector.
13. Maintaining a fully equipped library that provides knowledge in all the fields related to
the co-operative sector.
14. Setting up a Co-operative Museum
5. Empowering the civil society to establish and expand the co-operative movement.
15. Taking steps to inculcate the co-operative philosophy and practices in the civil society.
16. Launching a educational supplementary and other publications about the co-operative
movement.
6. Forming a network with local and international co-operative organizations.
17. Developing a network with co-operative organizations at the apex of the national co-
operative movement.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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18. Securing the membership of the international Co-operative movement and reaping the
benefits by expanding the network.
19. Developing a network with other relevant co-operative institutes of the world.
7. Diversifying the services of the National Co-operative Development Institute to provide facilities
for the Sate Sector, Private Sector and other Non-governmental Organisations.
20. Identifying and conducting programs to cater to the needs of the Private Sector.
21. Identifying the products needed by the State Sector and initiating them.
22. Identifying the products needed by the Non-government Sector and initiating them.
8. Increasing the performance of the Institute of Co-operative Development to provide an excellent
service to the co-operative sector.
23. Developing the knowledge, skills and attitudes of the staff
24. Developing the management processors
25. Raising the quality of services provided for other external institutions.
Main Activities of the Institute
a). Acting as a centre for the promotion and coordination of activities related to he co-
operative development.
b). Among other things, making use of modern techniques in providing training on co-
operative development.
c). Promoting research on co-operative development.
d). Facilitating sharing of information among the people involved in activities related to co-
operative development.
e). Functioning as a resource centre for the collection of data pertaining to co-operative
development and dissemination of collected data through publications.
f). Conducting academic training programs on subjects related to co-operative development
and presenting certificates and other awards of excellence to those who follow such
programs and successfully get through the relevant examinations.
g). Taking over and managing the co-operative enterprises which are in need of management
skills.
h). Providing professional advice for co-operative enterprises.
i). Setting up model co-operative villages, model co-operative outlets and regional centres.
j). Collaborate with other institutions which accomplish tasks similar those being carried out
by the institute.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Board of Management
The Board of Management of the Institute must consist of the following members
(a) Ex - officio Members
i. The person for the time being holding office as Secretary to the Ministry of the Minister
in charge of the subject of Co-operative Development or his nominee;
ii. The Commissioner of Co-operative Development of the Department of Co-operative
Development;
iii. The Chairman of the National Co-operative Council of Sri Lanka;
iv. The Director General of the institute appointed under the section16
(b) Members appointed by the Hon. Minister (a member so appointed is hereiífter referred to as
and “appointed member”)
i. Three persons who have had a wide experience in the field of co-operatives and
experience in management, nominated by the Minister in charge of the subject of Co-
operative Development;
ii. A representative of the Minister of Higher Education, nominated by the Secretary to the
Ministry of the Minister in charge of that subject; and
iii. A representative of the General –Treasury, nominated by the Secretary to the Ministry of
the Minister in charge of the subject of Finance.
The Board of Management is responsible for administration, management and control of the affairs of
the institute.
The Board of Management must also execute the powers vested by the Act upon the institute for the
administrative purposes of the institute.
In addition, directing the resources of the institute to achieve the aims and objectives of the institute
while evaluating and approving annual development plans, annual budgets, policy planning,
supervision and scheduled evaluation of the performance of the institute, analysis and evaluation of
quarterly, mid-year and annual financial reports and Auditor General’s reports and if the
achievements do not match the expected targets, taking the necessary remedial action to reach the
expected targets are other responsibilities of the Board of Management.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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During the year under review the management and the administration of the Institute was the
responsibility of the Board of Management which included the following members.
1. Mr. P. G. Dassanayake, Chairman - upto 13.05.2010
2. Mr. A.M.A.A. Lakmal Rathnayake, Chairman - w.e.f. 10.07.2010
3. Mr. Gamini Rajarathna, Director General, National Institute of Co-operative
Development (Sri Lanka Administrative Service)
4. Mr. S. Edirisooriya, Additional Secretary, Ministry of Co-operative and internal trade
5. Mr. A. P. P. Kithsiri, Commissioner of Co-operative Development
6. Ms. M.T.I.V. Amarasekara, Asst. Derector, Dept. of Public Enterprises General Treasury
upto 13.05.2010
7. Mr. Nimal Mithtrarathna, Addl. Director General, Dept. of Development Finance
Treasury upto 13.10.2010
8. Mr. Bandupala Ranawaka, Chairman, Sri Lanka National Co-operative Council.
9. Mr. M.I.M.Rafeek, Economist, Dept. of Agriculture upto 13.10.2010
10. Mrs. D.D. Nandasiri, Education Director, Ministry of Education.
11. Ms. H.M.M.A. Caldera, Additional Director Ministry Higher Education
12. Mr. K.M.M. Zakir,
13. Mr. R. M. Premathilake Rathnayake.
14 Mr. W.M.W. Abeyratna Bandara, Working Director, Gem & Jewelery Education &
Research Institute
15. Mrs. S.P. Jayathunge, Additional Secretery (Cooperative) my of cooperative internal
trade
The quorum for a meeting of the Board of management shall be five members and
meetings shall be held once at every three months.
Four Board of Management Meetings were held duing the respective year as follows.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Details of the Board of Management Meetings held during the year - 2010
Name Dates of meeting held
2010'03'05 2010'07'30 2010'10'18 2010'12'03
1. Mr. P. G. Dassanayake, Chairman - - -
2. Mr. A.M.A.A. Lakmal Rathnayake, Chairman -
3. Mr. Gamini Rajarathna, Director General
4. Mr. A. P. P. Kithsiri ab
5. Mr. S. Edirisooriya - - -
6. Mr. Bandupala Ranawaka ab ab
7. Ms. M.T.I.V. Amarasekara - - -
8. Mr. D.D. Nandasiri - - -
9. Mr. W.M.W. Abeyratna Bandara ab - - -
10. Mr. M.I.M.Rafeek - - -
11. Ms. S.P.Jayathunge - ab
12. Mr. Nimal Mithtrarathna - ab
13. Mr. K.M.M. Zakir -
14. Mr. R. M. Premathilake Rathnayake -
15. Ms. H.M.M.A. Caldera - - - ab
16. Ms. Wasantha Illanganthilake - Secretary to the Management Bord
- Attamdamce
ab - Absent
- - Position Vacant
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Board of Studies
The Board of Studies of the Institute shall consist of the following members appointed by the Board
of Management.
a) The Director-General of the Institute who shall be the Chairman of the Board of Studies;
b) A representative of the academic staff of any University nominated by the University Grants
Commission established by the Universities Act, No. 16 of 1978;
c) The Commissioner-General of Examinations or his representative;
d) A representative nominated by the Commissioners of Co-operative Development; and
e) A person employed in the Co-operative sector or private sector, who in the opinion of the
Minister has wide wxperience in Management and Training.
The Board of Studies of the Institute shall consist of the following members appointed by the Board
of Management.
1. Mr. Gamini Rajaratne - Chairman,
Director General
National Institute of Co-operative Development
2. Professor Sudantha Ranasinghe - Member, Head of the Division Academy of
Human Socio Open University, Nawala
Nugegoda.
3. Mr. Pasan Rathnayake - Member, Commissioner of Co-operative Development.
(Central Province) Ehalapola Kumarihamy Mawathe,
Bogambara, Kandy.
4. Mr. Anura Edirisinghe - Member, Commissioner General of Examinations,
Sri Lanka, Dept. of Examination
Palawatha, Battaramulla.
5. Dr.P.H.D. Aluvihare - Member, Senior Lectres, Sri Lanka Open University
Center Kandy Division Polgolla.
6. Mr. W.A.R. Wimalasiri - Secretay, Registrar
National Institute of Co-operative Development
Polgolla.
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Functions of the Board of Studies
a) Preparation of training & research activities of the Institute.
b) Development of curriculam for the courses conducted at the Institute.
c) Evaluate, administrate and investigate the examinations held by the institution and prepare
suitable methods to evaluate them.
d) Issue the results of the examinations conducted by the institution, under the approval of the
examination board.
e) Lay relevant conditions to grant donations for scholarship official badge and other donations.
During the year under review two Study Board meetings have been held on 30.08.2010 and
15.10.2010 to release the results of examinations of which details are as given below.
a' The Study Board meeting held on the 30.08. 2010
Courses N
um
ber
sat
for
the
Exam
Pass
Ref
erre
d
Fail
Nom
ber
let
t
/post
pon
e
1' Diploma in Auditing ^2008$2009& 19 19 - - -
2' Diploma in Accounting ^2008$2009& 24 06 12 04 02
3' Diploma in Social Development ^2009$2010& 21 17 02 - 02
4' Higher Diploma in Micor Finance ^2007$2008& 28 11 03 04 10
5' Higher Diploma in Human Resource Management ^2008$2009& 18 13 04 - 01
6' Certificate in Micor Finance 34 13 08 05 08
7' Certificate in English Language 2009$2010 08 08 - - -
Repeat exams 8' Diploma in Co-operative Development ^1992$1993&
01
01
-
-
-
9' Diploma in Co-operative Development ^2004$2005& 01 01 - - -
10' Diploma in Co-operative Development ^2005$2006& 01 01 - - -
11' Diploma in Co-operative Development ^2005$2006& 02 02 - - -
12' Higher Diploma in Co-operative Development ^2006$2007& 01 01 - - -
13' Higher Diploma in Banking Management ^2007$2008& 08 08 - - -
14' Higher Diploma in Banking Management ^2006$2007& 01 01 - - -
15' Higher Diploma in Accounting ^2007$2008& 01 - 01 - -
16' Higher Diploma in Accounting ^2006$2007& 02 01 01 - -
17' Higher Diploma in Auditing ^2006$2007& 04 02 02 - -
18' Higher Diploma in Information Technology ^2006$2007& 02 01 01 - -
19' Higher Diploma in Information Technology ^2007& 08 05 03 - -
20' Higher Diploma in Information Technology ^2007- ii& 07 05 01 01 -
21' Certificate in Banking & Finance ^2007$2008& 01 01 - - -
22' Certificate in Computer ^2008& 05 04 01 - -
Total 197 121 39 14 23
National Institute of Co -operative Development ANNUAL REPORT - 2010
15
b' The Study Board meeting held on the 15.10.2010
Courses
Nu
mb
er s
at
for
the
Exam
Pass
Ref
erre
d
Fail
posp
on
d
the
exam
Nom
ber
lett
/
post
pon
e
1' Higher Diploma in Business Administration ^2008$2009& 13 11 - - - 02
2' Higher Diploma in Diploma in Banking Management ^2008$2009& 26 20 03 - - 03
3' Higher Diploma in Information Technology ^2009$2010& 40 14 04 02 03 17
4' Certificate in Co-operative Development ^2007$2008& 44 37 04 01 02 -
5' Certificate in Co-operative Development 2009 49 41 07 01 - -
6' Certificate in Computer 2010 33 08 15 01 - 09
Repeat exams 7' Diploma in Co-operative Development ^2005$2006&
09 09 - - - -
8' Diploma in Co-operative Development ^2006$2007& 05 05 - - - -
9' Higher Diploma in Micro Finance - 2007 01 01 - - - -
10' Higher Diploma in Information Technology - 2007 01 01 - - - -
11' Certificate in Co-operative Development - 2010 01 01 - - - -
Total 222 148 33 05 05 31
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Staff
The total number of staff allocated to the Institute is 59. The number of staff as at 31st
December 2010 is 38. The number of vacancies is 21. Preliminary steps are being taken to
fill these vacancies.
Details of staff designations and number of staff as at 31st December 2010
No Post Number
of Poste
Officials
present Vacancies
1. Director General 01 01 -
2. Registrar 01 01 -
3. Director - Academic and Development 01 - 01
4. Lecturer 06 05 01
5. Librarian 01 01 -
6. Senior Finance Manager 01 01 -
7. Senior Press Manager 01 - 01
8. Hostel Manager 01 01 -
9. Assistant Registrar 01 - 01
10. Extension Officer 01 - 01
11. Computer Programmer 01 01 -
12. Assistant Lecturer 06 03 03
13. Assistant Hostel Manager 01 01 -
14. Assistant Librarian 01 01 -
15. Management Service Assistant (Graduate) 12 07 05
16. Computer Instructor 03 01 02
17. Computer Word Processor 01 01 -
18. Management Service Assistant 05 01 04
19. Offiset Machine Operator 01 01 -
20. Audio Visual Machine Operator 01 01 -
21. Circuit Bungalow Keeper 01 01 -
22. Driver 04 04 -
23. Service Assistant 07 05 02
Totel 59 38 21
National Institute of Co -operative Development ANNUAL REPORT - 2010
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Financial Progress
Consist export of Income, Expenditure and Treasury Funds for the last 4 years are
given below:
Income for year (2007-2010)
Details 2007 2008 2009 2010
1. Course Fees 7,457,997 5,999,038 5,594,102 8,320,364
2. Fee for rooms , Lecture Halls & Quarters 3,957,200 6,390,476 6,130,260 6,543,381
3. Service Charges 793,779 1,730,750 1,158,914 -
4. Commission On Food Supply 610,177 1,284,315 972,492 805,864
5. Printing & Sale of Publications 84,052 155,285 387,932 395,727
6. Other Income
I. Registration fees for Performance Award
Ceremony
- - - 1,225,600
II. Sale of fixed Assets - - - 1,144,039
III. Miscellaneous Income 1,507,334 1,692,359 1,607,621 2,209,656
Total 14,410,539 17,252,223 15,851,319 20,644,631
The income of the NICD for the year 2010 is Rupees 20.64 million and the income for each division
is given below
0
2000000
4000000
6000000
8000000
10000000
2007 2008 2009 2010
Inco
me
Year
Income for 2007 - 2010
Course fees
Hostel,Lecture Halls& Quarters
Service Charges
Commissions on supply of food
Printing & sale of publications
Miscellaneous income
40%
36%
2%
22%
Income
Education Hostel Printing Other
National Institute of Co -operative Development ANNUAL REPORT - 2010
18
Expenditure for the Year (2007 – 2010)
Details 2007 2008 2009 2010
1. Salaries & Wages, Lecture Fees & other expenses 16,365,336 17,535,359 18,445,338 19,512,564
2. Travelling Expences 617,452 542,174 623,357 753,427
3. Supplies & Office Requirements 3,843,495 3,775,773 2,896,742 3,902,331
4. Maintenance 1,452,350 1,838,114 1,686,323 2,405,953
5. Contractual Services 6,094,609 8,130,603 8,969,645 9,206,898
6. Other 708,115 622,995 1,513,243 -
a) Expenditure for Performance Award Ceremony - - - 2,458,531
b) Nation Building Tax - - - 829,082
c) Miscellaneous expenditure - - - 967,970
Total Expenditure 29,081,357 32,445,018 34,134,648 40,036,756
Funds Received from the Treasury for the Period of 2007 – 2010
Details 2007
Rs.
2008
Rs.
2009
Rs.
2010
Rs.
Capital grant 37,160,000 19,500,000 49,400,000 70,200,000
Recurrent grant 13,135,738 19,680,000 21,470,211 22,390,000
0
5000000
10000000
15000000
20000000
25000000
2007 2008 2009 2010
Exp
en
dit
ure
Year
Expenditure 2007 – 2010
Salaries & Wages, Lecture fees &
Other expenses
Travelling expences
Supplies & Office Requirements
Maintenance
Contractual Services
Other
National Institute of Co -operative Development ANNUAL REPORT - 2010
19
Details of Educational Activities
Progress of Education Programms organized by the Institute (2007 – 2010)
Programme
2007 2008 2009 2010
No. of
programmes Participants
No. of
programmes Participants
No. of
programmes Participants
No. of
programmes Participants
Diploma 08 142 07 124 02 55 08 142
Certificate Course
04 90 03 103 04 124 05 156
Short Term 51 1756 36 1051 37 1331 64 2738
Total 63 1988 46 1278 43 1510 77 3064
When compared with the past years, the year under review shows an increase in the Diploma,
Certificate Course and short term programmes organized by the Institute. The main reason
for this progress is due to the proper identification of the needs of the cooperative movement
and designing the programmes according to the needs.
8 7
2
8 4 3 4 5
51
36 37
64
0
10
20
30
40
50
60
70
2007 2008 2009 2010
No
of
Co
urs
e
Year
Progress of Programs organized by the Institute 2007 – 2010
Diplima
Certificate
Sort Term
National Institute of Co -operative Development ANNUAL REPORT - 2010
20
Programmes organized on the requests made by External Organizations
(2007 - 2010)
Year 2007 2008 2009 2010
No. of programmes conducted 377 368 329 255
No. of total participants 20,925 21,439 16,715 19,852
As a result of developing the physical resources and making reforms in management
practices, an appreciable increase could be seen in external organizations seeking more and
more training facilities of the Institute.
1. Human Resource Development
The main activity of our Institute is to develop the human resources of the co-operative
movement. Targeting this activity, a significant number of Diploma level, Certificate level
and subject related short term training progrmmes were organized for the benefit of the co-
operative movement and goverment officers.
1.1 Training of staff of the Co-operative Development Department
a) Higher Diploma in Co-operative Development
The Institute has carried out the Diploma Course training programmes which is considered
efficiency Bar Examination for the new Co-operative Development officers recruited by the
Department of Co-operatives from 2007 to 2008.
Summary of these programmes are as follows:
Year No. of
Programmes
Total no. of
participants
2007 01 41
2008 01 09
b) Certificate Course in Co-operative Development
This programme has been designed to fulfill the requirements of the first Efficiency Bar
Examination of newly recruited Cooperative Development Officers. Fifty One new officers
recruited by the Sabaragamuwa and Northern Provincial Departments of Co-operative
National Institute of Co -operative Development ANNUAL REPORT - 2010
21
Development commenced their training on 01st November 2010 and completed the first term
on 16th
March 2011.
In addition, 47 Cooperative Development Officers recruited by Southern & Eastern
Departments of Cooperative Development joined one year programme on 07th
September
2009 and by 30th
September 2010. They have completed their training and relevant
examinations.
Details are given below.
Training Course Date of
Commencement
Date
Completed/to
be Completed
No. of
Participants
1. Certificate course in Cooperative Development –
(Sabaragamuwa & Northern Province) 2010.11.01 2012.04.06 51
2. Certificate course in Cooperative Development – (Central, Southern & Eastern Province)
2009.09.07 2010.09.30 47
Total 98
Following is a summary of the number of Certificate Course programmes conducted by our
Institute and the number of participants attended.
Year
Programme details
No. of Programmes Total number participated
2007 01 41
2008 No programmes were conducted
2009 02 95
2010 01 51
1.2 Diploma Programme in Cooperative Development
During the year under review, 08 Diploma level programmes were conducted to enhance the
knowledge and skills of Cooperative employees. One program out of them commenced in
2009 and was completed in 2010. Seven programmes commenced in 2010. Details of the
programmes are given below.
National Institute of Co -operative Development ANNUAL REPORT - 2010
22
0
20
40
60
80
100
120
140
2007 2008 2009 2010
Year
Number of participants of the Diploma programmes conducted by the Institute from
2007 to 2010
No.o
f p
arti
cip
an
ts
Training Course Commencing
Date
Date
completed/to be
completed
No.
participated
1. Diploma Course in Auditing 2010/1011 2010. 11.04 2011. 10.30 15
2. Diploma in Banking 2010/2011 2010. 05.17 2011.04.30 27
3. Diploma in Business Management 2010/2011 2010. 08.14 2011. 05.30 15
4. Diploma in Human Resource Management
2010/2011 2010. 06.07 2011. 05.30 16
5. Diploma in Social Development 2009/20010 2009. 01.19 2010. 01.19 19
6. Diploma in Social Development 2009/20010 2010. 05.09 2011. 06.30 17
7. Diploma in Micro Financing 2010.2011 2010. 02.25 2011. 01.30 08
8. Diploma in Accounting 2010/2011 2010. 02.25 2011. 01.30 21
Total
138
Summary of the number of programmes and the number of participants of the Diploma
programmes conducted by the Institute from 2007 to 2010
Year Details
No. of Programmes No. of Participants
2007 04 85
2008 05 93
2009 01 21
2010 07 119
National Institute of Co -operative Development ANNUAL REPORT - 2010
23
1.3 Certificate Course
This Certificate Course can be considered as a foundation for the Skills Development of the
management level staff of the Cooperative Societies. During the year under review 03
Certificate level programmes were held. One program out of them commenced in 2009 and
completed in 2010 and the other two programmes were commenced in 2010. Seventy One
participants followed these programmes
Details Date of
Commencement
No.
participated
1. Bank Management Certificate Course 2009.09.05 22
2. Management and skills Development Course 2010.01.22 25
3. Job oriented vocational Certificate Course 2010.06.19 24
Total 71
A summary of the number of Certificate Course conducted by the Institute and the number of
participants are given below:
Year Details
No. of Programmes No. of Participants
2007 02 26
2008 01 27
2009 01 22
2010 02 49
0
10
20
30
40
50
60
2007 2008 2009 2010
No
. o
f P
art
icip
an
ts
Year
Participation of Certificate Courses conducted by the institute during the peried of 2007-2010
National Institute of Co -operative Development ANNUAL REPORT - 2010
24
1.4 Subject Related Short Term Management Training Programmes
Annually the Institute conducts a number of short term programmes targeting the leaders of
cooperative societies, workers and staff affiliated to the Cooperative Departments and other
Cooperative leaders with the objective of developing their managerial and work related skills.
The Institute not only conducts programmes designed by us but develop new programmes on
the requests and the needs of different co-operative organizations. A summary of
programmes conducted are given below.
Year Details
No. of Programmes No. of Participants
2007 53 1756
2008 36 1051
2009 37 1331
2010 64 2738
Short Term Management Training Programmes organized by the Institute
Name of Course Date of
Commencement
No. of
Participants
1. Management skills development programme 2010.04.24 29
2. Secretarial Training Programme 2010. 06.11 16
3. Programmes in Women’s participation in Cooperate
Development 2010. 07.17 20
4. International Training programme in identifying
strategies in Managing the Cooperative movement within the Global environment
2010.03.14 - 20 24
5. Capacity Building of Trainers 2010.10.12 - 15 27
6. Clerical training of Rural Bank employees 2010.12.10 - 12 40
Total 156
0
1000
2000
3000
2007 2008 2009 2010 No
.of p
art
icip
an
ts
year
Participation of Short Term courses 2007 - 2010
National Institute of Co -operative Development ANNUAL REPORT - 2010
25
Training programmes conducted free of charge and at subsidized rates for
the benefit of the Cooperative Sector
During the year under review, 24 short term management skills development training
programmes were conducted at subsidized rates with the objective of developing the
managerial skills of staff members of cooperative sector organizations. Financial assistance
for these programmes were obtained from the Co-operative fund of the Peoples Bank and the
Government Consolidated fund.
Courses conducted with financial assistance from the Peoples Bank:
Course Name Date
commenced
No of
Trainees
1. Programme on Role Develiopment of Regional Managers (Hiriyala Multi
Purpose Cooperative Society 2010.05.15 41
2. Role Development of Managers 2010.02.27 45
3. Awareness Training of Managers of Multi Purpose Co-operative Societies 2010.03.14 34
4. Workshop in analyzing the current status and proposing ideas for the
development of the Co-operative movement 2010.03.14 16
5. Role Development of Managers (Katugampola & Sandalankawa Multi
Purpose Co-operative Societies) 2010.05.18 14
6. Maintaining Personal Files in the Multi Purpose Co-operative Societies 2010.05.19 30
7. Rules & Regulations pertaining to the Development of Co-operatives 2010.06.23 38
8. Identifying Training Needs of the Co-operative Sector 2010.09.17 – 18 27
9. Training of staff of Super Markets in the Central Province 2010.09.14 – 15 27
10. Value based Co-operative Management Training Programme 2010.10.07 – 08 28
11. Training Course for Senior Audit Officers of the Cooperative Department
in the Development of Audit systems 2010.11.06 – 07 67
12. Credit Management of established Financial Institutions 2010.11.13 - 14 48
13. Workshop for Development of Educational Programmes for NICD 2010.10.15 - 16 22
14. Skills Development for General Managers of Co-operative Societies 2010.11.10 – 11 38
15. Skills Development training for General Managers of Sabaragamuwa, Uva
and Wayamba Province co-operative societies 2010.11.29 -30 37
16. Project Management Programme 2010.12.04 – 06 40
17. Skills Development programme for General Managers of Western &
Southern Province Co-operative Societies 2010.12.21 -22 41
18. Project Management Programme 2010.12.18 - 19 48
Total 641
National Institute of Co -operative Development ANNUAL REPORT - 2010
26
Courses conducted with Financial Assistance from the Treasury
Course Name Date
Commenced
No. of
Trainees
1. Short Term Computer Training for General Managers of co-op societies
2010.12.12 – 13 26
2. Training of Co-op City staff 2010.12.12 - 13 31
3. Training of Co-op City staff 2010.12.16 – 17 63
4. Training of Co-op City staff 2010.12.18 – 19 38
5. Training of Co-op City staff 2010.12.21 - 22 41
6. Training of Co-op City staff 2010.12.29 - 30 34
Total 233
Training Programmes conducted for External requests made
Course Name Date
Commenced
No. of
Trainees
1. Training of Mulatiyana Regional Primary SANASA Societies 2010.07.10-11 48
2. Training of Sabaragamuwa provincial Dept. of Co-op Development
staff on their role to provide quality state service 2010.07.16 88
3. Strategic Planning - Development Officers and MPCS officers of
Central Province 2010.08.12-13 76
4. Training of staff of Rural Bank – Beralapanathara MPCS 2010.07.17-18 37
5. Training of SANASA Managers – Matara District Co-op Society 2010.08.07-08 44
6. Two Day programme – Development Officers, Central Province & MPCS staff on Strategic Planning for 5 years
2010.08.21.22 70
7. Business Skills Development programme – Chairmans of Co-
operative Societies 2010.09.11-12 34
8. Computer Training – Land Commissioner’s Department, Central
Province 2010.08.20 15
9. Leadership & Personality Development training conducted by Ministry of Industries, Central Province – Dambulla Provincial
Secretariat
2010.08.12 50
10. Leadership & Personality Development training conducted by
Ministry of Industries, Central Province – Matale Provincial
Secretariat
2010.08.30-31 56
11. Leadership & Personality Development training conducted by
Ministry of Industries, Central Province – Ganga Ihala Korale
Secretariat
2010.09.15-16 28
12. Leadership & Personality Development.training conducted by
Ministry of Industries, Central Province – Uda Palatha Regional
Secretariat
2010.09.28 28
13. Two Day Training of Role Development of staff of Ratnapura
District capital Co-opeative Bank Socities Ltd. 2010.09.25-26 73
14. Training Workshop on Roll Development – Directors of Central
Province MPCSs 2010.09.19-20 38
National Institute of Co -operative Development ANNUAL REPORT - 2010
27
15. Training Workshop on Role Development – Directors of Central
Province MPCSs 2010.09.21-22 36
16. Sales & Consumer Relations Training Workshop – Kehelella
MPCS 2010.09.29 55
17 Strategic Planning workshop – Harispattuwa co-op Society Staff 2010.10.09-10 57
18 Training Workshop on Role Development – Staff Pujapitiya Co-op
Society 2010.10.10 49
19 Strategic Planning workshop – Hanguranketha co-op Society Staff 2010.10.19 28
20 Strategic Planning workshop – Walapane co-op Society Staff 2010.10.22 26
21 Training Workshop on Role Development – Co-operative
Development Officers 2010.10.28-30 163
22 Computer Training – Staff, Central Province Land
Commissioner’s Department 2010.09.24-11.08 15
23 Introductory Psychological process to Co-operative workers 2010.10.07-08 32
24 Introduction to Job Management – Matara District Co-operative
Council 2010.11.13-14 38
25 Training Workshop on Roll Development – Central Province Co-
operative Development Department staff 2010.11.18-19 36
26 Manpower Assessment Training Programme 2010.11.27-28 19
27 Micro Financing – Short term course 2010.11.27.28 18
28 Management Skills Development workshop –Matara SANASA
Officers 2010.11.9-21 55
29 Leadership Skills Training – Matara SANASA Officers 2010.12.04 37
30 Personality Leadership Training – Conducted by Ministry of
Industries, Central Province – Staff, Hataraliyadda Secretariat 2010.10.25 - 26 37
31 Personality Leadership Training – Conducted by Ministry of
Industries, Central Province – Staff, Deltota Secretariat 2010.11.08-09 43
32 Personality Leadership Training – Conducted by Ministry of
Industries, Central Province – Staff, Kotmale Secretariat 2010.12.09 - 10 40
33 Psychological Approach for Co-operative employees (NCC)
Matara) 2010.11.26-12.01-09 205
34 Manpower assessment training program – Co-operative
Development Officers,
Central Province
2010.12.04 34
Total 1708
National Institute of Co -operative Development ANNUAL REPORT - 2010
28
Other Diploma Courses and Certificate Courses
These Diploma and Certificate courses were conducted to develop the Computer Skills, Information
Technology skills & English Language skills of job seekers and government employees.
1. Diploma Course in Information technology
This programme has been designed targeting the school leavers who are awaiting employment to
improve their knowledge in Information Technology. This is a six month full time Diploma Course.
One Diploma programme was started in the year under review and has been completed. A similar
programme started in 2009 was also completed this year. Details are given below.
Course Name Date
Commenced
Date
completed/to
be completed
Number of
Trainees
1. Information Technology Diploma 2009/2010 2009.09.15 2010.05.15 21
2. Information Technology Diploma 2010/2011 2010.09.15 2011.05.15 23
Total 44
2. Computer Certificate Course
This programme has been designed to develop the Computer skills of students sitting the GCE O/L
examination. During the year under review one programme was started 2010.01.05 and was
completed on 30th March 2010. 30 students were trained in this programme.
3. English Language Certificate Course
Two English Language Certificate Courses were conducted during the year targeting school leavers
and employes. One programme was started in 2009 and completed in 2010 and the other was started
in the year under review and completed in 2011. Details are given below:
Course Name Date
Commenced
Number of
Trainees
1. Certificate Course in English Language 2009.09.15 08
2. Certificate Course in English for profisionals 2010.07.11 25
Total 33
National Institute of Co -operative Development ANNUAL REPORT - 2010
29
Special Activities Performed During Year 2010
PERFORMANCE COMPETITION
An Island wide competition was held for the first time among the several Co-operative organizations
to assess their performance in 2007/2008 which would be benificial for the growth of the co-operative
movement.
The following co-operative organizations participated in this competition:
Multi Purpose Co-operative Societies
Financial Services Co-operative Societies
Service Co-operative Societies
Production Co-operative Societies
Agriculture & Livestock Co-operative Societies
School Co-operative Societies
The competition was held separately for the societies of each of the above categories and the winners
were awarded gold, silver and bronze trophies and certificates in 2009.
About a year after this competition was held, the second competition was organized in 2010 on
requests made by the leaders, workers members and several co-operative organizations. The second
competition was held under 3 categories.
1. Primary Level Co-operative socities
i. Multi Purpose Co-operative sector
ii. Financial Services Co-operative sector
iii. Production & Industrial Co-operative sector
iv. Agriculture Co-operative sector
v. Service Co-operative sector
vi. School Co-operative sector
2. Secondary Level Co-operative Organizations
i. District & Provincial Financial Service Organizations
ii. Other District & Provincial Co-operative Organizations
3. Co-operative Institutions registered under the Central Government
National Institute of Co -operative Development ANNUAL REPORT - 2010
30
Organization process of the competitions
1. One officer representing each province was nominated and trained to serve in the panel of
judges
2. Awareness programmes were conducted on the competition criteria for the heads of all
provincial co-operative societies who submitted applications.
3. Evaluations of the competition were made under 3 levels.
a) Primary Societies adjudged by a panel of judges selected from the provinces.
b) Secondary & Top Level Societies adjudged by a panel of judges selected at the National
Level
c) A second judgment if necessary to be done by a National Level Committee.
The National Level Committee for this competition consisted the following:
i. Representative on behalf of the Ministry Secretary of the Ministry of Co-operatives &
Internal Trade
ii. Commissioner and Registrar of Co-operatives (Central Government)
iii. Director General, National Institute of Co-operative Development
iv. Deputy Chief Secretary (Admin), Central Province and the Past Director General of the
National Institute of Co-operative Development
v. Representative of the National Co-operative council Sri Lanka.
The awards ceremony for the second Performance Competition in year 2010 was held from
2011.06.28 to 2011.07.02 at the Kurunegala, Welagedara Stadium in conjunction with the
commemoration ceremony to celebrate the International Co-operative Day with the participation of
the Honorary President of Sri Lanka.
The Honorary President of Sri Lanka presented Gold, Silver & Bronze awards to the winners at the
above ceremony. Summary of the awards presented is given below:
1. Gold Awards - 27
2. Silver Awards - 138
3. Bronze Awards - 77
Total - 242
In addition 100 co-operative organizations that scored the highest ratings (Top hundred) were
awarded 100 certificates.
National Institute of Co -operative Development ANNUAL REPORT - 2010
31
This competition helped to improve the performance levels in the Sri Lankan co-operative movement
and motivate the co-operative organizations to perform to high standards.
Financial assistance to complete this programme successfully was provided by the Treasury Funds
and by the Peoples Bank. The Peoples Bank has granted a sum of Rs. 2,732,250/- on 2011.05.31.
This donation has given the opportunity to the Co-operative movement to compete with the national
level enterprises. Financial assistance has also been provided through the co-operative funds. The
total expenditure for these competitions is given below:
2010 expenditure - Rs. 2,618,465.02
2011 expenditure - Rs. 2,515,945.19
Total - Rs. 5,134,410.21
Opening of Co-op City as a Model Super Market
According to the ‘Mahinda Chinthana’ concept, one of the goals is to strength the co-operative
movement once again and provide all consumer goods at nominal and reasonable prices to the
consumer. In keeping with this concept a chain of co-op City shops opened island wide and as a
model, arrangements have been made to open a Super Co-op City stores. This will be managed under
the Co-op-Fed and it is planned to meet the following objectives.
I. It is intended to use this Super Market as a practical training centre for the employees of the
300 Co-op City stores and over 3000 mini Co-op City stores enabling them to face the
challenges in todays market.
II. Supply quality goods to the consumer.
III. To use this centre as a Research & Development Centre to develop the super market concept
especially to the co-operative sector.
Developing a Network among local & International Co-operative Organizations.
Under the ‘Mahinda Chintana’concept, one of the main objectives identified is to make Sri Lanka an
important Economic Centre and strengthen the international network to achieve the goals of the
‘Mahinda Chinthana’ concept. Accordingly, action was taken to strengthen the networking with
international co-operative movement to develop and improve knowledge skills of this sector.
Under this activity, several programmes have been organized in collaboration with the Malaysian co-
operative College and Vaikunmetha National Institute of co-operative Management Pune, in India and
International Co-operative Alliance.
National Institute of Co -operative Development ANNUAL REPORT - 2010
32
Divisions supporting the NICD, their activities and facilities provided to the
Success of the Education programmes of the Institution
Hostel Division
The main responsibility of the Hostel Division is to provide all residential requirement under a safe
and a conducive environment to those who come to the NICD for training.
The hostels division consist of 05 two storied buildings and 02 three storied buildings totaling to 07
buildings capable of accommodating 230 trainees at any given time.
Common Hostel A/C Room
Pictures of the Hostels
Hostel No. of
rooms
No. of trainees that could
be accommodated
1. D - Hostel 20 40
2. E - Hostel 20 40
3. F - Hostel 20 40
4. G - Hostel 20 40
5. H - Hostel 05 18
6 A. Ratnayake Hostel(Air Conditioned) 14 26
7. New Ratnayake Hostel (Air Conditioned) 22 26
121 230
The restaurant which is managed by the hostel division supplies meals according to the needs of the
trainees and supplies food to between 100 to 300 trainees daily.
National Institute of Co -operative Development ANNUAL REPORT - 2010
33
Library Division
The user communities of the library are the panel of Lecturers, Trainees and other NICD staff.
The total collection of the number of books available in the library is 20,745. There are a variety of
books including topics related to Co-operatives & Management, Accountancy, Social Science,
Computer and other related subjects. It also has a collection of periodicals and provides news paper
articles and other services to the readers.
Examination Division
All statutory examinations for Co-operative Inspectors Certificate Course, Diploma Course and
Diploma and Certificate courses for co-operative employees are conducted by the Examinations
Division. The releasing of results of all examinations is done with the approval of the Study Board
and the Management Board.
Audio Visual Division
The Audio Visual Division supplies all audio visual aids required for training programmes. Videos,
Over Head Projectors & Loud Speakers/microphones are also provided and all photography and video
services are also done by this division.
Education & Training Division
The main objective of the Institute is to provide education and training in the co-operative sector. To
achieve this objective, the Institute has created the following sub divisions.
1. Co-operative Development Division
2. Human Resources Development Division
3. Research & Training Division
4. Financial Management Division and Development Division
5. Business Management Development Division
6. Advisory Services Division
Each of these sub divisions comes under a Lecturer. There are 08 permanent lecturers in the
panel of lecturers and in addition the services of a panel of External Resource persons who are
competent in different sectors are also in place. With the above resources the Institute has developed
high quality lessons that are taught.
National Institute of Co -operative Development ANNUAL REPORT - 2010
34
The Institute has 07 lecture halls that can accommodate 990 trainees where modern audio visual
techniques are used in training.
No. Hall No. of Seats
1 Vincent Subasinghe Hall 600
2 Ratnayake Hall 55
3 Rotchdale Hall 100
4 New Rotchdale Hall 80
5 B – Hall 100
6 C – 1 Hall 35
7 C – 2 Hall 20
Toatal 990
Printing Division
All printing requirements of books, magazines, records & notes etc of the Institute is done by the
Printing Division. It also undertakes the printing of material from external organizations. The
Institute possesses a fully equipped medium scale press for all printing requirements.
Press
Physical Resources and Development of Physical Resources
The National Institute of Co-operative Development has taken a number of steps to develop its
physical resources in order to keep pace with the local & International standards in training &
developing human resources. The Institute has 07 lecture halls and class rooms some of which are air
conditioned, 07 hostels for residential training, and a computer laboratory with around 80 computers.
During the year under review improvements to the physical assets of the institute were carried out.
In the year 2010, the Institute received capital funding of Rupees 70.2 million and the following
physical resources development were carried out.
National Institute of Co -operative Development ANNUAL REPORT - 2010
35
Details Funds allocated
for year 2010
Expenditure up to 31st
Dec. 2010
1. Construction of Auditorium 108,200,000/- 38,611,000/-
2. Purchase of furniture and office equipment 2,000,000/- 1,274,044/-
Total 110,200,000/- 39,885,044/-
The construction of the multi purpose building which commenced in year 2000 had to be stopped half
way due to the non availability of sufficient funds. However, required funds were received in year
2007 and we were able to commence construction work once more and we were able to complete the
constructions by end of May 2009. A sum of Rs. 28.6 million was spent on construction. This is a 04
storied building and the ground floor has been earmarked to establish a model super market and the
other 03 floors will house 04 computer laboratories and 04 lecture halls. In addition, space has been
reserved to the Peoples Bank to open a service centre for the convenience of those who patronize the
institute.
Multipurpuse Building
The Auditorium building which is primary
construction was completed
The construction work of the auditorium which was started in year 2001 and stopped half way due to
lack of funds recommenced with the fund of Rs. 134.5 million which has been given to the Central
Engineering consultancy Bureau (CECB) in December 2009 and work is now in progress.
W. A. R. Wimalasiri
Director General
National Institute of Co -operative Development ANNUAL REPORT - 2010
36
BALANCE SHEET AS AT 31st DECEMBER 2010
AS AT AS AT
31.12.2009 31.12.2010
NOTE Rs. Rs.
ASSETS
NON CURRENT ASSETS
Property, Plant & Equipment
02 386,798,385 436,370,603
Long Term Debts, Invest, & Deposits
03 645,000 645,000
387,443,385 437,015,603
Differed expenditure on Transformers
3,397,818 3,361,880
Less : Written off differed expenditure against income
(35,938) (84,945)
Balance differed expenditure on Transformer
3,361,880 3,276,935
CURRENT ASSETS
Short Term Investment 04 - 7,200,000
Debtors Receivables & Deposits 05 39,299,967 34,306,691
Stock 06 462,434 746,517
Cash at Bank 07 16,531,472 36,431,417
56,293,873 78,684,625
TOTAL ASSETS
447,099,138 518,977,162
EQUITY & LIABILITIES
CAPITAL & RESERVES
Capital 08 233,254,215 233,254,215
Accumulated Profit/(Loss) 09 (63,793,304) (71,645,446)
169,460,911 161,608,769
RESERVES
Capital Grant from Treasury 10 261,678,075 331,878,075
Capital Grant from Ministry 11 3, 941,392 3, 391,392
Publication Fund
- 3,417,039
265,619,467 338,686,506
NON CURRENT LIABILITIES
Provision for Gratiuty
1,205,968 1,651,612
Retention Money
4,437,786 9,030,744
5,643,753 10,682,356
CURRENT LIABILITIES
Creditors & Accrued Expences 12 6,375,007 7,999,531
Bank Over Draft
- -
6,375,007 7,999,531
TOTAL EQUITY & LIABILITIES
447,099,138 518,977,162
A.M.A.A.L. Ratnayake W.A.R Wimalasiri K.D.Anil
Chairman Director General Senior Manager(Finance)
National Institute of Co -operative Development ANNUAL REPORT - 2010
37
INCOME & EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31st DECEMBER 2010
ACTUAL ACTUAL
NOTE 2009 2010
Revenue
Rs Rs
Grant for Recurrent Expences 13
21,470,211 22,390,000
Other Income 14
15,851,319 20,644,631
37,321,530 43,034,631
LESS : EXPENDITURE
01. PERSONNEL EMOLUMENTS 15 18,445,338 19,512,564
02. TRAVELLING 16 623,357 753,427
03. SUPPLIES 17 2,896,742 3,902,331
04. MAINTENANCE 18 1,686,323 2,405,953
05. CONTRACTUAL SERVICES 19 8,969,645 9,206,898
06. OTHERS 20 1,513,243 4,255,583
07. DEPRECIATION 21 9,323,575 10,213,688
08. Written off of differed expenditure on Transformer
35,938 84,945
43,494,163
50,335,390
Surplus or (Deficit) over the income
before extraordinary items
(6,172,633) (7,300,759)
Extraordinary items (Net profit or Loss)
- -
Surplus or (Deficit) over income before tax
(6,172,633) (7,300,759)
Less: Provision for taxation
- -
Net Surplus/(Deficit) for the period
(6,172,633) (7,300,759)
National Institute of Co -operative Development ANNUAL REPORT - 2010
38
ACTUAL ACTUAL
NOTE : 03 2009 2010
LONG TERM INVEST, DEBTORS, DEPOSITS
3201 Long term Investment - -
3203 Deposit with Electricity 645,000 645,000
645,000 645,000
NOTE : 04
SHORT TERM INVESTMENT
3401 Short term Investment - 7,200,000
- 7,200,000
NOTE : 05
DEBTORS RECEIVABLES & DEPOSITS
3501-3512 Course fee receivable (Schedule : 5A) 1,390,597 2,054,180
3504 Receivable on Programme Fee-Out Side 1,547,886 1,748,511
3513 Receivable on Printing Service 163,926 151,096
Other Deposit – (Shedule 5B) 5,000 5,000
3514 Receivables on Other services 262,487 47,206
3402 Advances to Contractors 23,998,252 14,198,252
3403 Security Deposit 237,460 228,310
3515 Interst Receivable on Investment - 135,246
3520 House rent receivable 584,462 425,408
3524 Staff food supply control A/C 53,753 7,510
3525 Receivable on food supply to Co-op inspectors 130,896 130,896
3527 Festival advance receivable 39,000 39,000
3532 Advance to staff 241,856 61,147
3535 Transfer of Funds to other accounts 141,778 -
3539 Vat 9,382,996 13,446,550
3540 WHT Payment 218,339 249,964
3543 Distress Loan - staff 1,025,000 1,575,000
3544 Receivable Interest on Distress Loan 131 -
3545 Cheque Return control A/c 87,000 87,000
Less: Provision for bad debts (210,857) (152,693)
Specific Provision for bad debtor - (130,896)
39,299,967 34,306,691
NOTE : 06
Stock
3301 Stationery stock 224,852 179,216
3302 Printing Material stock 140,872 334,071
3303 Building Material 26,170 79,556
3304 Audio visual 2,108 6,552
3305 Sundry stock 68,432 97,104
3306 Publications- (Books & handouts) - 50,016
462,434 746,517
National Institute of Co -operative Development ANNUAL REPORT - 2010
39
ACTUAL 2009
ACTUAL 2010
NOTE : 07
Rs Rs
CASH AT BANK (People’s Bank Katugastota) Hostal 0089 1001-72649555
2,392,262 31,106
Examination 0089 165 000304 8
3,996 3,996
Publication 0089 1001-92649564
468,272 91,355
Training & Education 0089-1001-32648143
1,372,378 694,868
Productivity Account 089-1001- 38092-967
1,350,422 408,085
Government 0089-1001-92648140
10,697,684 31,734,507
Service Charge Account 089-100150002158
246,458 50,461
Publication Account ii
- 3,417,039
16,531,472 36,431,417
NOTE : 08
CAPITAL
Balance
233,254,215 233,254,215
233,254,215 233,254,215
NOTE : 09
ACCUMULATED PROFIT/(LOSS)
Balance as at 01st of January
(59,274,351) (63,793,304)
Add/Less : Prior Year adjustments Audit fee
81,637 -
Others – Addition
2,484,365 -
Others – Deduction
(912,322) (551,383)
1,653,680 (551,383)
Accumulated profit after prior year adjustment
(57,620,671) (64,344,687)
Add : Surplus/ (Defecit)
(6,172,633) (7,300,759)
(6,172,633) (7,300,759)
(63,793,304) (71,645,446)
National Institute of Co -operative Development ANNUAL REPORT - 2010
40
ACTUAL 2009
ACTUAL 2010
NOTE : 10
Rs Rs
CAPITAL GRANTS FROM TREASURY
Balance on 01.01
212,278,075 261,678,075
Add : Adjustment
- -
212,278,075 261,678,075
Add: Received for the Year
49,400,000 70,200,000
261,678,075 331,878,075
Less : Depreciation of Assets purchased from capital grants - -
261,678,075 331,878,075
NOTE : 11
CAPITAL GRANTS FROM MINISTRY
Balance on 01.01.2002
6,749,800 6,749,800
Add : Received for the Year
- -
6,749,800 6,749,800
Less : Depreciation of Assets purchased from capital grants (2,808,408) (3,358,408)
3,941,392 3,391,392
National Institute of Co -operative Development ANNUAL REPORT - 2010
41
ACTUAL 2009
ACTUAL 2010
Rs Rs
NOTE : 12 CREDITORS & ACCRUED EXPENCES 4001 Telecommunications
70,426 91,037
4002 Water
- 25,338
4004 Lecture Fees
117,957 206,660
4005 Other accrued expences
183,092 1,107,888
4015 Govt. Audit fee payable
50,000 467,532
4016 Payable to Treasury
49,182 68,751
4018 Advance receivaed for programme - Outside
163,154 719,697
4019 Security Services
116,946 139,696
4020 Janitorial Services
121,366 168,056
4022 Building Constructors
49,823 867
Received in Advance as per (Schedule : 12A)
530,890 447,225
4030 Food supply control A/c Ruchira
(70,554) -
4031 With holding tax
17,516 -
4035 Salary control A/c Casual
35,599 -
4040 Refundable course fee
11,600 36,600
4041 Productivity Control A/c
1,164,908 1,154,113
4044 Vincy Cateres
100,462 100,462
4043 VAT Receipt
2,642,516 2,553,048
3903 Refundable Tender Deposit
562,001 441,000
4047 Food Supply control A/C – candy corner
22,470 -
4048 Food Supply control A/C – Ruchira
399,782 67,309
4049 Fuel bill payable
35,862 50,487
4050 Building Rental recived in advance
- 153.750
6,375,007 7,999,531
NOTE : 13
RECURRENT GRANTS (CODE : 11)
1021 From Treasuary
21,470,211 22,390,000
1020 From Ministry
- -
1044 From Co-operative fund
- -
21,470,211 22,390,000
National Institute of Co -operative Development ANNUAL REPORT - 2010
42
ACTUAL 2009
ACTUAL 2010
Rs Rs
NOTE : 14 OTHER INCOME GENERATED FROM (CODE: 11)
1001 -1011 Course fee – Shedule 14 -A
5,312,246 8,155,549
1013 Hostal Fee
537,750 -
1012 Room Charges
4,008,062 4,797,721
1014 Lecture hall Fee
1,260,500 1,239,410
1015 House Rent
323,948 285,000
1017 Sales of Publications
116,234 96,158
1018 Service Charges
1,158,914 4,450
1022 Consultancy Service
- 250,000
1023 Printing Service
271,698 299,569
1024 Library fees
27,800 27,100
1025 Exam fees
254,056 137,715
1026 Fixed Deposit interest
73,797 162,479
1027 Interest on staff Loan
34,775 46,093
1035 Non Rufundable Tender Deposit
62,205 23,798
1036 Profit on sale of fixed Assets
357,143 1,144,039
Miscellanious income – (Shedule 14-B)
1,079,701 1,285,933
1043 Commission on food supply
972,492 805,864
1065 Registration fee for productivity competition programme
- 1,225,600
1069 Rent Income on Building
- 221,250
1063 N.B.T.
- 436,903
15,851,319 20,644,631
National Institute of Co -operative Development ANNUAL REPORT - 2010
43
NOTE : 15
ACTUAL 2009
ACTUAL 2010
Rs Rs
PERSONNEL EMOLUMENTS (CODE : 01)
101 Salaries & Wages
12,993,145 13,285,973
151 Lecture Fees
1,085,563 1,522,380
103 Over Time
940,947 739,694
104 Allowance
753,334 1,252,099
105 E.P.F. (Institution Contribution)
1,344,706 1,322,893
106 E.T.F. Contribution
268,941 264,579
153 Exam Supervision fees
50,500 38,000
154 Course Cordinating fee
62,500 90,300
110 Director Fee
33,000 22,000
112 Holiday pay & Others
87,969 95,744
155 Question Paper
49,000 38,255
156 Paper Marking fee
73,715 120,930
118 Gratiuty
465,251 448,278
119 Pension fund
236,765 271,440
18,445,338 19,512,564
NOTE : 16
TRAVELLING EXPENCES (CODE: 02)
201 Domestic
371,712 285,566
202 Foreign
251,645 467,862
623,357 753,427
National Institute of Co -operative Development ANNUAL REPORT - 2010
44
ACTUAL 2009
ACTUAL 2010
NOTE : 17 Rs Rs
SUPPLIES (CODE : 03)
301 Stationary & Office Requisition 606,705 500,082
302 Fuel & Lubricants 1,181,784 1,480,402
303 Printing Materials 203,561 446,815
304 Newspapers & Periodicales 62,550 60,590
306 Diets 365,632 955,209
307 Mechanical & Electrical goods 13,810 135,936
308 Video cassete & Others 430 2,268
310 Others 405,291 229,541
312 Fuel for hiring bus 56,981 -
313 Cost of water bottle - 91,490
2,896,742 3,902,331
NOTE : 18
MAINTENANCE EXPENCES (CODE : 04)
401 Vehicle
771,138 931,550
402 Plant, Machinary & Equipment
207,521 518,462
403 Building & Structures
496,347 633,477
404 Furniture
1,200 172,075
405 Computers & Others
20,550 -
406 Motor Vehicle License & Insurance
189,568 150,389
1,686,323 2,405,953
National Institute of Co -operative Development ANNUAL REPORT - 2010
45
ACTUAL 2009
ACTUAL 2010
NOTE : 19
Rs Rs
CONTRACTUAL SERVICES (CODE : 05)
501 Transpotation
43,626 16,699
502 Telecommunications
870,986 874,433
503 Postal Charges
159,067 245,079
504 Electricity
1,719,296 1,895,723
505 Water
761,827 823,652
506 Rent & hire charges
- 3,000
508 Audit Fee
50,000 75,000
510 Advertisement/Publicity
455,223 705,845
512 Security Services
1,456,635 1,476,760
513 Janitorial Services
1,475,174 1,706,713
514 Laundry Services & Linen
63,664 240,295
515 Gardening
77,900 4,850
517 Translations
15,023 43,530
520 Staff Training (Local/ Foreign)
123,985 12,000
521 Subcription & Membership fees
808,285 446,180
523 Other Expenses
196,199 316,544
524 Printing – Printing Section
30,899 43,756
525 Printing Charges – Audio Visual
24,927 14,728
526 Stamp Charges
2,140 1,995
529 Co-operative officer’s Training
634,789 260,115
8,969,645 9,206,898
NOTE : 20
OTHER EXPENCES (CODE : 06)
601 & 602 Legal fees & Donation
106,160 11,500
607 Entertainment
615,827 781,446
703 Bank Charges
33,644 40,595
705 Loan interest of Staff
18,947 50,495
608 Productivity awarding programme
134,446 2,458,531
609 Implimentation of office Language
11,375 11,200
707 Nation build tax
381,986 829,082
709 Provision for bad debts
210,857 72,733
1,513,243 4,255,583
National Institute of Co -operative Development ANNUAL REPORT - 2010
46
Shedule : 5-A
ACTUAL 2009
ACTUAL 2010
Course Fee Rceivable
Rs Rs
3501 Diploma in Co-operatives
279,699 397,548
3502 Co-operative Certificate course
712,310 1,248,089
3503 Workshop
60,750 57,450
3506 Short term Other Courses
232,117 101,334
3508 NICD IT Diploma
66,745 142,000
3511 Course fee receivable for English course
8,875 21,000
3522 Library fees & exam fees
30,099 86,758
1,390,597 2,054,180
Shedule : 5-B
Deposit
3536 Tender deposit
5,000
5,000
Security deposit
- -
5,000
5,000
Shedule : 10
Course fee Received in Advance
4023 Diploma Courses in Co-operatives
190,226 437,225
4024 Work shop
291,790 -
4025 Others Courses
48,875 10,000
530,890 447,225
National Institute of Co -operative Development ANNUAL REPORT - 2010
47
Shedule : 14-A
ACTUAL
2009
Rs
ACTUAL
2010
Rs
Course Fee Income
1001 Higher Diploma – Co-operatives
1,319,203 1,471,800
1002 NICD IT Diploma
637,912 874,421
1003 Certificate Courses – Copmuter
- 666,500
1004 Certificate in English
88,125 234,708
1007 Certificate Courses - Co-operatives
691,170 964,918
1008 Short Term Courses – Workshop
1,349,427 2,524,140
1009 Short Term Courses - IT
318,000 96,000
1010 Short Term Courses – Others
676,296 1,323,062
1011 N/E Co-op officer’s Training 09/10
232,113 -
5,312,246 8,155,549
Shedule : 14-B
Miscellanious Income
1016 Income from Garden
46,226 62,125
1034 Hostel manager fee
101,550 76,603
1038 Photocopy chargers
65,619 48,943
1040 Hire of Equipment
8,400 287,193
1041Other Supplies
445,600 -
1044 Water Bottle
202,780 113,940
1045 Registration of supplies
63,349 95,000
1046 Photograph Income
15,117 23,400
1047 Fines
11,383 23,470
1048 Book Binding
6,040 6,250
1051 Miscellanious Income
1,120 18,600
1056 Income from bus
112,068 482,178
1061 Additional income
450 25,761
1062 Unclaimed due payment
- 22,470
1,079,701 1,285,933
National Institute of Co -operative Development ANNUAL REPORT - 2010
48
Note ( 02
PROPERTY,PLANT & EQUIPMENT - 2010
Cost/Valuation Balance As
01.01.2010
Prior Year Balance After
Adjustments
Additions
during the year Adjustments
ACTUAL 2010
RS Additions Deductions
Land 134,015,302 - - 134,015,302 245,941 - 134,261,243
Building & Structures 158,394,123 - - 158,394,123 - 33,388,025 191,782,148
Plant, Machenary & Equipment 36,559,801 - - 36,559,801 7,653,161 (143,965.00) 44,068,997
Vehicles 6,673,331 - - 6,673,331 - (400,000.00) 6,273,331
Furnitures 7,945,979 - - 7,945,979 2,198,928 - 10,144,907
Library Books 1,990,597 - - 1,990,597 42,278 - 2,032,875
Curtain & Others 3,512,145 - (16,675) 3,495,470 105,210 (28,554.00) 3,572,126
Total 349,091,279 - (16,675) 349,074,604 10,245,518 32,815,506 392,135,628
Accumulated Depreciation Balance As at
01.01.2010
Prior Year Adjustments Balance After
Prior Year
Adjustments
Additions
during the year Adjustments
ACTUAL 2010
RS Additions Deductions
Building & Structures 27,382,353 - - 27,382,353 4,648,319 - 32,030,672
Plant, Machenary & Equipment 26,525,505 - - 26,525,505 4,022,155 (115,565.00) 30,432,094
Vehicles 5,387,988 - - 5,387,988 550,000 (400,000.00) 5,537,988
Furnitures 5,043,024 - - 5,043,024 943,232 - 5,986,256
Library Books 1,851,008 - - 1,851,008 51,274 - 1,902,282
Curtain & Others 2,479,020 - (16,675) 2,462,345 548,708 (21,523.32) 2,989,530
Total 68,668,898 - (16,675) 68,652,223 10,763,688 (537,088) 78,878,823
Gross Book Value 349,091,279 - (16,675) 349,074,604 392,135,628
Accumulated Depreciation 68,668,898 (16,675) 68,652,223 78,878,823
Net Book Value 280,422,381 - 280,422,381 313,256,805
Capital work-in-Progress Contract No: Balance As at
01.01.2010
Prior Year Adjustments Balance After
Prior Year
Adjustments
Additions
during the year Adjustments
ACTUAL 2010
RS Additions Deductions
NICD/2/2/6/6-Multipurpose Building 32,445,206 - - 32,445,206 942,820 (33,388,025) 0
2/2/6/20- Auditorium 73,930,797 - - 73,930,797 49,183,000 123,113,797
Renovation of coridor F-G hostel - 0
106,376,003 - - 106,376,003 50,125,820 (33,388,025) 123,113,798
Carrying Value 386,798,385 - 386,798,385 436,370,603
National Institute of Co -operative Development ANNUAL REPORT - 2010
49
NOTES TO THE ACCOUNTS AS AT 31ST
DECEMBER 2010
NOTE : 01
ACCOUNTING POLICIES
1.1 General Accounting Policies
1.1 a. Accounting Conventions
The Financial statements of the Institute comprise Balance Sheet, Income & Expenditure
Account, Cash Flow statement, Accounting Policies and Notes to the Accounts. The financial
statements of the Institute are prepared on the historical cost basis and in accordance with
generally accepted Accounting Principles & Sri Lanka Accounting Standards issued by the
Institute of Chartered Accountants of Sri Lanka. These principles and standards apply
consistently.
1.1. b. Format of Accounts
The Financial Statements are presented in accordance with the format issued by the Institute of
Chartered Accountants of Sri Lanka. Previous year figures and phrases are re-arranged
wherever necessary to conform to the current year's presentation.
1.1. c. Post Balance Sheet Events
All material events occurring after the Balance Sheet date are considered and where necessary
adjustments and disclosures are made in the Financial Statements.
1.2 ASSETS AND BASES OF THEIR VALUATION
1.2 a. Property, Plant & Equipment
The cost of Property, Plant & Equipment is the cost of purchased or constructed value together
with any incidental expenses thereon. These are accounted at cost or revalued amount less
accumulated depreciation, which is provided, on the bases specified below.
1.2 b. Depreciation
The provision for depreciation is calculated on the cost of Property, Plant & Equipment so as to
write off such cost over the estimated useful lifetime of the assets by equal annual installments
as follows.
Asset Useful Lifetime
Building & Structures 40 years
Motor Vehicles 04 years
Furniture & Fittings 10 years
Books and Manuals 04 years
Plant & Machinery 05 years
Curtains & Others 03 years
National Institute of Co -operative Development ANNUAL REPORT - 2010
50
Depreciation is provided for the fixed assets on periodical bases.
Expenditure made on transformer provided by C.E.B. has been differed and write off the cost
over a period of 40 yeas.
1.3 LIABILITIES AND PROVISION
1.3 a. Provision for Gratuity
Provision is made for the payment of retirement gratuities payable under the Gratuity Act No.
12 of 1983 in respect of all eligible employees, whose service periods are more than one year at
the Balance Sheet date.
Employees are eligible for Employee's Provident Fund contributions and Employee's Trust
Fund contributions in line with the respective statutes and regulations. The Institute contributes
15% and 3% on Basic salaries of employees to EPF and ETF respectively.
1.3 b. Provisions for Bad Debtors
5 % provision has been made for Bad Debtors.
1.3 c. Other Liabilities
Provision has not been made for litigation of Employees and other parties in the Financial
Statements.
1.4 INCOME & EXPENDITURE ACCOUNT
1.4 a. Revenue Recognition
All Fees for services rendered are accounted on accrual basis
Fees for Diploma courses and other certificate courses are accounted on accrual basis. (on
periodical basis)
1.4 b. Expenses
All expenses are accounted on accrual basis.
1.5 GOVERNMENT GRANTS
1.5. a. Capital Grants
Government grants received in the capital nature are treated as reserves in the statement of
Assets & Liabilities.
National Institute of Co -operative Development ANNUAL REPORT - 2010
51
1.5 b. Recurrent Grants
These are treated as an Income in the year in which it was received, in the Income &
Expenditure Account.
18 Nos short term Management training programmes have been conducted for the Co-operative
movements by utilizing Rs. 1,000,000/- received as a grant from People’s Bank for the
Training Programmes in the year 2010 and remaining grant balance of Rs.291,790/- which was
unutilized in 2009. That said total amount of Rs.1,291,790/- has been included under short term
courses.
1.6 Preparation and submission of financial Statements is the responsibility of the management of
the institute.
1.7 Balances of goods in the stores and printing press as at 31.12.2009 were calculated according to
“Average Method” while the balances of publications for sale/printing were valued according to
their cost.
1.8 Cash Flow Statement was prepared according to Indirect Method.
1.9 Legal action has been taken regarding the eviction of ex-employees from quarters occupied by
them, while ex-employees have filed 02 Cases against the institute.
1.10 No of employees of this institute as at 31st December 2010 is 38.
1.11 25 No of books published by NICD worth of Rs. 12,500/- has been sent to M/s sarasavi book
shop to sell or return basis was remained unsold by the end of year 2010. The cost of the books
is Rs.4,311.50
National Institute of Co -operative Development ANNUAL REPORT - 2010
52
Report of the Auditor General on the Financial Statements of the National Institute of
Co-operative Development for the year ended 31 December 2010 in terms of Section
14(2)(c) of the Finance Act, No. 38 of 1971
The audit of financial statements of the National Institute of Co-operative Development for the year
ended 31 December 2010 was carried out under my direction in pursuance of provisions in Article
154 (1) of the Constitution of the Democratic Socialist Republic of Sri Lanka read in conjunction with
Section 13(1) of the Finance Act, No.38 of 1971. My comments and observations which I consider
should be published with the Annual Report of the Institute in terms of Section 14(2) (c) of the
Finance Act appear in this report. A detailed report in terms of Section 13(7) (a) of the Finance Act
was issued to the Chairman of the Institiute on 01December 2011.
1.2 Responsibility of the Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Sri Lanka Accounting Standards. This responsibility includes; designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatements, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
1.3 Scope of Audit and Basis of Opinion
My responsibility is to express an opinion on these financial statements based on my audit. Audit
opinion, comments and findings in this report are based on review of the financial statements
presented to audit and substantive tests of samples of transactions. The scope and extent of such
review and tests were such as to enable as wide an audit coverage as possible within the
limitations of staff, other resources and time available to me. The audit was carried out in
accordance with Sri Lanka Auditing Standards to obtain reasonable assurance as to whether the
financial statements are free from material misstatements. The audit includes the examination on a
test basis of evidence supporting the amounts and disclosures in financial statements and
assessment of accounting policies used and significant estimates made by the management in the
preparation of financial statements as well as evaluating their overall presentation. I have obtained
sufficient information and explanations which to the best of my knowledge and belief were
necessary for the purpose of my audit. I therefore believe that my audit provides a reasonable
basis for my opinion. Sub-sections (3) and (4) of the Section 13 of the Finance Act, No. 38 of
1971 give discretionary powers to the Auditor General to determine the scope and extent of the
audit.
National Institute of Co -operative Development ANNUAL REPORT - 2010
53
2. Financial Statements
2.1 Opinion
So far as appears from my examination and to the best of information and according to the
explanation given to me, I am of opinion that the National Institute of Co-operative Development
had maintained proper accounting records for the year ended 31December 2010 and except for the
effects on the financial statements of the matters referred to in paragraph 2:2 of this report, the
financial statements have been prepared in accordance with Sri Lanka Accounting Standards and
give a true and fair view of the state of affairs of the National Institute of Co-operative
Development as at 31 December 2010 and the financial results of its operation and cash flows for
the year then ended.
2.2 Comments on Financial Statements
2.2.1 Presentation of Financial Statements
In terms of Section 6.5.1 of the Public Enterprises Circular No. PED/ 12 of 02 June 2003, the
financial statements for each financial year should be presented for audit within 60 days after
the close of the respective financial year. Nevertheless, the financial statements for the year.
2010 had been presented only on 25 July 2011.
2.2.2 Sri Lanka Accounting Standards
The following non-compliances were observed.
Reference to Sri Lanka
Accounting Standards
Non- compliance
Standard No.18 (i) Fixed assets such as Computers, furniture, office
equipment, machinery and equipment, motor
vehicles, library books, etc. which had been taken
off from use over a period exceeding 04 years had
been shown under the fixed assets without taking
action to computer the value there of either to
write off from the books or to disclose in the
financial statements.
(ii) The fixed assets such as computers and computer
accessories, machinery and equipment and library
books had not been depreciated on the basis of the
useful life of the respective assets.
National Institute of Co -operative Development ANNUAL REPORT - 2010
54
2.2.3 Accounting Deficiencies
The following accounting deficiencies were observed.
(a) The building rent of Rs.9,600 for providing office accommodation and the lease rent
receivable on the lease of the ground due from the Nuwara Eliya Agricultural Co-operative
Association Ltd. had not been brought to account. The lease rent recivable on the lease of
the ground could not be computed as the lease rent not been specifically stated in the lease
agreement.
(b) The consumable articles such as curtains, bed sheets and mattresses valued at Rs.2,581,437
purchased during the period 2001 to 2010 for the hostel rooms and the lecture halls had
been brought to account under the fixed assets.
(c) Unsettled amounts totalling Rs.537,716 relating to 17 sundry items had been shown in the
Bank Reconciliation Statements of 05 Bank Accounts continuously over a period exceeding
08 years. Action had not been taken either to reconcile and settle them or to account them
correctly.
2.2.4 Accounts Receivable and Payable
The following observations are made.
(a) The course fees, external service charges and printing charges amounting to Rs.118,148,
Rs.533,212 and Rs.105,822 respectively totalling Rs.757,182 remaining outstanding for
over one year had not been recovered.
(b) Action had not been taken for the recovery of the Value Added Tax recivable accumulated
to Rs.13,446,550 over a period exceeding 05 years as at 31 December of the year under
review.
(c) Advances amounting to Rs.61,147 granted to the officers of the Institute for various
services had not been settled even by 31 December of the year under review. Out of that,
advances amounting to Rs.55,947 had lapsed for over 03 years.
(d) Steps had not been taken even by 31 December of the year under review to settle the
creditors balances of 04 accounts amounting to Rs.226,083 accumulated over a period
exceeding 03 years.
National Institute of Co -operative Development ANNUAL REPORT - 2010
55
2.2.5 Non-compliance with Laws, Rules, Regulations and Management Decisions
Non-compliances with the following laws, rules, regulations, etc. were observed.
Reference to Laws, Rules Regulations
and Management Decisions
Non- compliance
(a) Financial Regulations of the
Democratic Socialist Republic of
Sri Lanka
(i) Financial Regulation 134(3) Internal Audit Reports had not been furnished to the
Auditor General by carrying out an internal audit.
(ii) Financial Regulation 169 The Institute had provided services to external parties
without recovering the charges and that income
remained outstanding.
(b) Establishments Code of the
Democratic Socialist Republic of
Sri Lanka
Chapter xix Section 5.3
Eventhough the rent for occupying government quarters
should be recovered at a specified percentage from the
salary of the employee concerned, an inadequate
economic rent had been recovered from the employees
occupying the quarters of the institute
(c) Circular No. 30 dated 22
September 2006 of the
department of Management
Service.
The Scheme of Recruitment and Promotions of the
Institute relating to the restructure of the cadre in terms
of the provisions of the circular, had not been revised
and approval therefor had not been obtained from the
Department of Management Services.
(d) Public Finance Circular
No.1A1/2002/02 dated 28
Novermber 2002 of the Secretary
to the Treasury and Financial
Regulating 756.
(i) Boards of Survey of the fixed assets valued at
Rs.66,092,237 had not been conducted for the
preceding years and the year under review and
reports thereon had not been furnished.
(ii) The Register of Fixed Assets of Computers and
Computer Accessories had not been maintained
properly.
(e) Public Administration Circular
No. 41/90 of 10 October 1990
The fuel consumption of motor vehicles had not been
tested. The activites relating to the procurement of fuel
for the pool motor vehicles had not been subjected to
examination by a responsible officer.
National Institute of Co -operative Development ANNUAL REPORT - 2010
56
3. Financial and Operating Review
3.1 Financial Review
3.1.1 Financial Results
According to the financial statements presented, the working of the Institute during the year
under review had resulted in a deficit of Rs.7,300,759 as compared with the corresponding
deficit of Rs.6,172,633 for the preceding year, thus indicating an increase of Rs. 1,128,126 in
the deficit of the financial results. Eventhough a sum of Rs.22,390,000 had been received as the
Government contribution (recurrent) in the year under review as compared with the
Government grant (recurrent) of Rs. 21,470,211 received in the preceding year, the increase in
the employees salaries and allowances had been the main reason for the increase in the deficit.
3.2 Operating Review
3.2.1 Performance
The following observations are made.
(a) The following major activities intended for the achievement by the incorporation of the
Institute in terms of Section 4 of the National Institute of Co-operative Development
(Incorporation) Act, No.01 of 2001 had not performed.
(i) Promotion of Research on the Co-operative Development
(ii) Function as a resources centre for the collection of data relating to Co-operative
development and disseminiation of the collected data by publication.
(iii) Take over and management of the Co-operative enterprises needing
management skills.
(b) The progress of the courses conducted by the Institute as compared with the preceding year
is given below.
Course
2010 2009
Target Actual Actual
Number
of
Courses
Number of
Officers
Number
of
Courses
Number of
Officers
Number of
Courses
Number of
Officers
RegularTraining Courses 03 80 02 97 03 105
Higher Diploma Courses 12 220 10 210 07 144
Certificate Courses 11 240 06 135 03 73
Short Term Management Development Courses
22 550 10 473 01 39
Courses conducted on the requests of External Parties
- - 34 1347 17 614
Courses conducted Free of charge for the Advancement of the Co-operative Sector
- - 14 498 19 678
Total 48 1090 76 2760 50 1653
National Institute of Co -operative Development ANNUAL REPORT - 2010
57
The following observations are made in this connection.
(i) Eventhough the conduct of 03 Regular Training Courses had been targeted, one course
out of them had not been conducted. Accordingly, a deteriotation as compared with the
preceding year was observed.
(ii) Out of the 22 Short-Term Management Development Courses targeted for the year under
review 12 courses had not been conducted. Eventhough 550 course beneficiaries had been
targeted only 473 had participated and out of that 205 had participated only for one
course on Vocational Psychology Approach for Co-operative Employees.
(iii) Fourteen courses for the Advancement of the Co-operative Sector had been conducted
free of charge during the year under review and that represented a decrease of 21 per cent
as compared with the year 2009.
(iv) Out of the 11 Certificate Courses targeted for the year under review, 06 courses only had
been conducted. Eventhough 240 course beneficiaries had been expected, 135 only had
participated.
(c) The income received from the courses conducted by the Institute during the year under review as
compare with the preceding year is given below.
2010 2009
Targeted
Income
Rs.
Actual
Income
Rs.
Actual
Income
Rs.
Regular Training Courses 676"500 551"736 89"333
Higher Diploma Courses 2"365"940 2"346"221 1"746"264
Certificate Courses 2"278"767 1"314""390 691"170
Short Term Management Courses 1"676"250 2"651"412 1"431"444
Total 6"997"457 6"863"759 3"958"211
The following observations are made in this connection.
(i) Eventhough the expected income from the Certificate Courses in the year under review
amounted to Rs. 2,278,768 a sum of Rs. 1,314,390 only had been received and that
represented 58 per cent of the expected income.
(ii) The total income from the courses in the year under review as compared with the
preceding year had improved by Rs. 2,905,548 or 73 per cent.
National Institute of Co -operative Development ANNUAL REPORT - 2010
58
(d) Increase in Expenditure and Capital Erosion
The particulars of increase in the expenditure of the institute from the year 2005 to the year 2010
and the capital erosion that had been arisen due to the corresponding decrese in income are given
below.
2010
Rs.
millions
2009
Rs.
millions
2008
Rs.
millions
2007
Rs.
millions
2006
Rs.
millions
2005
Rs.
millions
Total
Rs.
millions
Deficit according to the
Income and
Expenditure Account ^7'30& ^6'17& ^4'14& ^7'61& ^8'88& ^9'90& ^44'00&
Less : Depreciation 10'21 9'32 8'63 6'58 7'72 8'08 50'54
Surplus/ (Deficit)
before adjusting
Recurrent Grants 2'91 3'15 4'49 ^1'03& ^1'16& ^1'82& 6'54
Less : Recurrent Grants 22'39 21'47 19'68 13'65 8'65 6'75 92'59
Deficit after
adjustments Recurrent
Grants
^19'48& ^18'32& ^15'19& ^14'68& ^9'81& ^8'57& ^86'05&
Other Income
20'64 15'85 17'25 14'41 10'12 8'65 86'92
Total Expenditure
(Excluding
Depreciation)
^40'12& ^34'17& ^32'44& ^29'09& ^19'93& ^17'22& ^172'97&
Capital Erosion ^19'48& ^18'32& ^15'19& ^14'68& ^9'81& ^8'57& ^86'05&
The following observations are made in this connection.
(i) The total expenditure of the Institute during the 06 years from 2005 to 2010 amounted to
Rs.172.97 million and the total other income amounted to Rs.86.92 million. Thus the
increase of expenditure over the income amounted to Rs.86.05 million. The income of the
Institute does not indicate an increase as compared with the increase of its expenditure.
(ii) Even though the Institute had recorded a capital improvement of Rs.6.54 million in the 06
years from 2005 to 2010,a capital erosion of Rs.86.05 million would have arisen if it had
not received recurrent grants received amounting to Rs.92.59 million. As such, an
uncertainly over the going concern of the Institute is observed.
3.2.2 Transaction of Contentious Nature
The ground floor of the multipurpose building with an actual rental valuation of Rs.390,000 had
been leased out to the Sri lanka Consumer Co-operative Societies Association for an annual
lease rent of Rs.195,000. As such, the Institute had been deprived of a sum of Rs.146,250 as
lease rent income for the year under review.
National Institute of Co -operative Development ANNUAL REPORT - 2010
59
3.2.3 Contract Administration
The construction of the Auditorium at the cost estimate of Rs.44.5 million had been awarded
to a private construction company in August 2001 for the completion of construction in and
agreed period of 18 months and the architectural consultancy services had been obtained from
an Engineer of the engineering bureau of the Central Province. Even though the construction
should, have been completed by April 2003 it had not been so done. The roof had collapsed
on 14 February 2005 while being constructed and the work had been stopped halfway. The
completion of the balance work including the construction of the roof had been awarded in
the year 2009 to the Central Engineering Consultancy Bureau at a new cost estimate of
Rs.134.5 milion. The construction had not been completed even by 30 July 2011. The
following observations are made in this connection.
a) Eventhough it had been observed that the construction work had failed in the year 2005
due to the inefficiency of the consultant and it had been decided to recover liquidated
damages and to take legal action against the consultant, it had not been so done.
b) It was observed that a loss of Rs6.40 millon, comprising Rs.3.90 million paid under the
contract for the construction of the roof, the fee of Rs.0.35 million paid for obtaining a
technical report on the collapse of the roof and Rs.2.15 million paid as consultancy fees,
had been caused to the Institute due to the collapse of the roof and that the supply of
consultancy services to a State institution in private capacity and obtaining fee for the
supply of consultancy services while being in the public servic was irregular.
c) The loss caused due to the collapse of the roof had not been recovered from the contractor
and the arbitration in that connection referred to the Institute of Construction Training and
Development (ICTAD) had not been finalized even up to July 2011.
d) Due to the long delay of 08 years comprising 04 years from the commencenent of
construction in the year 2001 up to the collapse of the roof in the year 2005 and the
04years collapsed up to the commencement of construction again in the year 2009, the
cost of construction estimated at Rs.44.5 million had escalated by Rs. 131.2 million to
Rs.175.7 million comprising Rs.41.2 million paid for work done to the first contract and
the new cost estimate of Rs.134.5 million for the balance work.
National Institute of Co -operative Development ANNUAL REPORT - 2010
60
3.2.4 Idle and Underutilised Assets
The following observations are made.
(a) The Swift 300D x Offset printing machine, the Super Fax D x 8200 printing machine and the
gestetner 4130 Roneo machine of the Printing Division had been idling. The period of idling
and the value of those assets were not made available to audit.
(b) Two newly constructed Computer Laboratories of the Multipurpose building and 108 units of
fixed assets such as computers, computer accessories, furniture and equipment valued at
Rs.3,003,974 purchased for those laboratories remained underutilized.
(c) Out of the 08 lecture halls of the Institute, 03 had been utilized for less than 125 days in the
year and the utilization had ranged between 24 per cent to 34 per cent.
(d) One officers quarters and 02 labourers quarters of the institute had been idling for periods
from 01 year to 02 years.
3.2.5 Staff
The approved and the actual cadre of Institute had been 39 and 25 respectively thus indicating
14 vacancies. Even though the approval in terms of financial Regulation 71 had been granted
for the filling of the vacancies, action had not been taken to fill those vacancies. In addition to
the approved cadre there were 10 persons deployed in posts not approved. Action had not been
taken to obtain approval for such cadre.
3.2.9 Budgetary Control
Significant variances between the estimated and the actual expenditure of the Institute for the
year under review were observed, thus indicating that the budget had not been made use of as
an effective instrument of management control.
4. Systems and Controls
Deficiencies in systems and controls observed during the course of audit were brought to the
notice of the Chairman of the Institute. Special attention is needed in respect of the following
areas of control.
(a) Management and Utilization of Fixed Assets
(b) Collection of Outstanding Income
(c) Efficient Utilization of Resources
(d) Construction Contract Administration
H.A.S. Samaraweera
Auditor General