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Procedure of Conduct of Statutory Audit of SSA Accounts, Compliance of Audit Observations

Procedure of Conduct of Statutory Audit of SSA Accounts, Compliance of Audit Observations.

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Procedure of Conduct of Statutory Audit of SSA Accounts, Compliance of Audit Observations

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  1. Procedure of Conduct of Statutory Audit of SSA Accounts, Compliance of Audit Observations

  2. The detailed procedures for the conduct of Audit of Accounts and Accounts Records under SSA are laid down in the Manual on Financial Management & Procurement in Chapter-viii-Auditing. However MHRD sends an alert letter every year to all the SPDs for taking proper and timely action in the matter to ensure that Audit Report complete in all respects is submitted to the Ministry by the due date prescribed in the Manual.

  3. For the year 2011-2012 a letter bearing No.17/4/2012-SSA (DIS) dated 11th June 2012 was sent to all the State Project Directors. In order to ensure timely submission of Audit Reports, Streamlining the process of audit and to avoid recurrence of audit observations some steps were also suggested. The last date of receipt of Audit Report for the year 2011-2012 by the Ministry is 2nd November 2012. However till today Audit Report from only 6 State Implementation Societies have been received.

  4. These are: • A&N Islands • Chandigarh • Dadra & Nagar Haveli • Maharashtra • Rajasthan • Delhi

  5. Compliance of Audit Reports

  6. The Audit Report received from the SIS is reviewed in MHRD. Discrepancies / deficiencies observed in audited accounts alongwith certain audit observations of concern made by the Auditors in the Audit Report are pointed out to the State Project Director of the concerned State SIS in a letter. In this letter the SPD is requested to make good the deficiencies, rectify the discrepancies and furnish comments/ clarifications on the auditors observations.

  7. Response received from the SPD is examined in the Ministry and if found satisfactory, compliance to the Audit Report is accepted. If the response is found in-adequate/un-acceptable comments are sent to the State Project Director for compliance. However, compliance of Audit Reports is still awaited from many State Implementation Societies for the years as early as 2005-2006 as listed below.

  8. All the concerned Finance Controllers are requested to Pay attention to this item of work so as to settle the pending issue.

  9. Pursuance of Audit Objections In order to keep a watch over the settlement of audit objections included in the Audit Report of Statutory Auditors and Accountant General (Audit) the Accounts wing / Audit cell of the State Society is required to maintain a Register in the format given in Annexure-XXIV of the FMP Manual. (Para No.-110.1) The progress made on the settlement of audit objections is to be reviewed by the State Project Director on monthly basis and appropriate further action taken to ensure speedy settlement of the objections. (Para No.-110.2)

  10. The reported compliance with the objections is to be verified by the concerned auditors at the time of next audit. The Register will also be produced to the auditor for verification of settlement of the objections raised. (Para No.-110.3 & 110.4) Audit observation / objection compliance is to be reported to Government of India by the Sate Implementation Society regularly on a quarterly basis in the format given in Annexure-XXV of the FMP Manual.

  11. However, this quarterly report is not being received regularly from many SIS. Some SIS have not sent this report even once. The following table shows the Status of submission of Quarterly Report by the SISs.

  12. Status of Quarterly Report on the Position of Settlement of Audit Objections

  13. (Reminders issued on 11th July 2011, 15th September 2011, 20th April 2012 & 16th July 2012)

  14. You are requested to ensure that necessary action to settle the pending objections is taken regularly and the prescribed report is sent to the Ministry every quarter.

  15. IPAI-Review Reports

  16. The Status of Compliance to IPAI –Review Reports by SIS of 14 States is as under:

  17. Action on Files Transferred in August 2012 by FINANCIAL MANAGEMENT UNIT

  18. Refund of the Balance amount of • GOI’s share of Unspent Balance under DPEP • The following State Implementation Societies have not yet refund the balance amount of GOIs share of Unspent Balance under DPEP despite repeated reminders.

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