1. Statutory Audit of SSA Accounts for 2009-10 A PROGRAMME FOR UNIVERSAL ELEMENTARY EDUCATION MANUAL ON FINANCIAL MANAGEMENT AND PROCUREMENT Ministry of Human Resource Development Government of India 2010 SARVA SHIKSHA ABHIYAN GUJARAT Based on Presented by

2.  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

3.  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

4.  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

5.  SSA 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

6.  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.

7.  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

8.  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

9.  Finalization 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.

10.  Management 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