Statutory Audit of SSA Accountsfor 2009-10

A PROGRAMME FORUNIVERSAL ELEMENTARY EDUCATION

MANUAL ONFINANCIAL MANAGEMENT AND PROCUREMENT

Ministry of Human Resource DevelopmentGovernment of India 2010

SARVA SHIKSHA ABHIYAN GUJARAT

Based on

Presented by

Need of Statutory Audit

As per Para 106.1 of Manual on Financial Management & Procurement it is mandatory for Sate Society to appoint C.A. firm for statutory audit of SSA, NPEGEL & KGBV

To verify the implementation of FMP manual To verify the books of accounts To point out non implementation of rules if any Detect financial misappropriation if any To authenticate annual accounts by giving various

certificates for SSA, NPEGEL & KGBV

Preparation for Statutory Audit by SSA Gujarat

As per Para 109.1 statutory audit must be completed by September 2010

Detailed discussion held & time schedule was finalized by F.C. after consultation with AO-DPO in June 2010

Issued pre audit information questionnaire Framed the strategy & time schedule for statutory audit

with Statutory Auditor Handover the guidelines, AWP&B booklet, details of

approved schemes with additional instructions of MHRD Handover the list of approved units at district & sub

district level along with address, contact number and contact person details

Informed audit program to DPO well in advance Prepared Audit Checklist for District & Sub district Prepared Schedule for visit consist of 100% audit of

district and block level units 1/3 rd Sample Selection of VEC/VCWC/CRC for

audit, above Rs. 1 lac grant in order to cover all VEC/VCWC/CRC over a period of 3 years

Conducted team meeting with 3 teams, consisting of one CA, One Semi-qualified person and Two article-assistants in each team

Crystallizing targets to match audit plans for completing audit within the prescribed deadlines

Audit Plan by Statutory Auditor

SSA centric customized Audit Plan FocusSSA centric customized Audit Plan Focus Generally accepted accounting principles are

followed by all entities who are authorised to incur expenditure under SSA, NPEGEL and KGBV.

Goods, works and services financed have been procured in accordance with the relevant provisions of the Procurement, Procedure prescribed for the purpose

Reconciliation of Bank Statements and accounts is regularly carried out on a monthly basis

Look into the position of audit compliance of previous audit objections raised, if any

SSA centric customized Audit Plan Focus Conti….SSA centric customized Audit Plan Focus Conti….

Expenditures are made in accordance with program document & AWP&B

Expenditures are valid and are supported by adequate documentation

Assessment of internal controls actually put in practice at the audit site.

Financial reports of each of the programs are presented fairly and stated accurately.

Prescribed registers and records are maintained and various standards of accounting are in vogue

Transactions have been entered in to as far Financial and Budgetary Rules of the society and other operational guidelines given to the society from time to time.

Adequate sample of vouchers are collected to reflect material view on the operation of the program and samples are balanced across projects based on spending materiality.

Come out of Statutory Audit – Finding Key gaps

Irregular in doing bank reconciliation Non maintenance / non updation of accounting

registers especially at sub district level Outstanding Advances Misclassification of expenditure Lack of awareness of TDS rules Cash payments made at CRC,VEC,VCWC level Excess Expenditure against AWP&B

Remedial Action taken by SPO & DPO

Circular issued in detail to all, on the basis of MHRD observations

Detail guidance givin to BRC,CRC,VEC& VCWC through Video-Teleconference for up keeping Accounts –Finance & Procurement

In 2005 we issued FMP manual & BRC, CRC, VEC, guidelines in regional language. Now we formed one committee to prepare revised manual and guidelines & TDS guideline in user friendly manner with practical example and Performa of various registers

Guideline for receipt and payment heads with examples. Monitoring for compliance of audit at SPO, DPO, BRC, CRC Doing review in monthly meeting with AO-DPO We planned to issue monthly reporting formats for BRC CRC Contineous monitoring of monthly plan of expenditure Monitoring of DPO accounts online through Tally ERP 9

Finalization of AuditFinalization of Audit

All District/BRC/CRC accounts are specially reviewed by Audit

Team to ensure that format of report is uniform so that Consolidation process can be smoothly carried out.

Management LetterManagement Letter

Give comments and observations on the accounting records, systems, and internal controls that were examined during the course of the audit

Identify specific deficiencies and areas of weakness in systems and internal controls and make recommendations for improvement

Financial parameters set by MHRD is followed or not? And comment if any on the noncompliance of the same

Communicate matters that have come to the attention during the audit which might have a significant impact on the implementation of the program