Audit of Autonomous Bodies: Points Noticed in SAR O/o DG (Central ) Chandigarh Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh Main Audit Comments included in the SAR of PGIMER Grants received for other than specific purpose: Above includes amount received for Guest Room charges Rs.10.43 lakh and Share of PGI in conducting ICMR/JRF examinations (on behalf of Indian Council Medical Research, New Delhi) Rs.24.49 lakh. These should have been shown in main grant as income of the Institute and not as a liability. This has resulted in overstatement of liability by Rs.34.92 lakh as well as understatement of income and Corpus/Capital Funds to the same extent. Patient Grant: Above includes Rs. 77.15 lakh being amount received for package charges that should have been treated as income of the Institute. This has resulted in overstatement of liability by Rs.77.15 lakh as well as understatement of income and Corpus/ Capital Funds to the same extent. Amount payable to other Departments Above includes Rs. 216000, the excess amount for Cost of Beds received from Punjab Govt. which is shown outstanding for more than one year. On the other hand the Institute has shown Rs. 15480000 as the Cost of beds due from Punjab under the Sundry Debtors in the Assets side of the Balance Sheet. This needs to be reconciled. General Provident Fund (GPF): Rs. 16862.00 lakh Government of India, Ministry of Finance announced (19-3-2012) that during the year 2011-12, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% for the period from 1-4-2011 to 30-11-2011 and 8.60 % with effect from 1-12-2011. The effect of the above said announcement was neither given in the accounts nor the fact disclosed. It has resulted in understatement of liability on account of GPF and overstatement of Accrued Interest by Rs.29.60 lakh. Deposit with Chandigarh Housing Board: Rs. 990.76 lakh It includes Rs. 487.22 lakh deposited with the Chandigarh Housing Board for construction of 32 Type IV and 64 Type III houses. These houses were taken over by PGI authorities from CHB on 05.07.2005 and 11.07.2009 respectively, complete in all respects. Accordingly, these amounts should have been capitalized. Non capitalization of the amount has resulted in overstatement of deposit with CHB and understatement of fixed assets by Rs. 487.22 lakh. Following comments were included in the Annexure to SAR of PGIMER 1. 2. 3. 4. 5. System of Internal Control The Internal control system is considered adequate and commensurate with the size and activities of the Institute except in the area of: Annual closing of Broadsheets of General Provident Fund (GPF), Employee Group Insurance Scheme (EGIS) and New Pension Scheme (NPS) has not been done General instructions for handling cash as contained in Central Government Account (Receipt and Payments) Rules, 1983 were not complied with by the Institute. Passing of Bills: Central Government Account Receipt and Payment Rules, 1983 envisages that the bills should always be signed by the DDO. No other signature is valid. Test check of records of the Institute revealed that the bills passed for payment in the Institute were not signed by the DDO who has been authorised by the Director of the Institute. Accounting manual had not been prepared by the Institute. Internal Audit System: Though an Internal Audit cell exists in the Institute, no internal audit report has been prepared, thereby defeating the purpose of creating the cell. National Institute of Technical Teachers’ Training and Research (NITTTR), Chandigarh Main Audit Comments included in the SAR of NITTTR for the year ended 31-3-2012 were as under: Provision for Pension Fund Provision for liability towards pension on superannuation of employees needs to be made on actuarial basis as per the format prescribed for Central Autonomous Bodies, by the Government of India. The same has not been done. Non-provision of pension fund has resulted in understatement of liabilities as well as overstatement of corpus/ Capital fund. Land Above does not include Rs.15.68 lakh paid (April 1979) for free hold land measuring 15 Acre in Sector 26 in possession of the Institute. It has resulted in understatement of fixed assets as well as Corpus/ Capital fund by Rs.15.68 lakh. Assets under GOI Projects These assets are created out of Grants for Specific purpose/ projects as such these assets should have been shown separately as utilization under Earmarked/ Endowment Funds as required in Form of Financial Statements for the Central Autonomous Bodies. This has resulted in overstatement assets as well as liabilities by Rs. 45.39 lakh. Notes on Accounts Further, the National Buildings Construction Corporation Ltd. being consultant has also requested (18-6-2011) the Institute to pay Rs.38,41,465/-, so that the award payment to the contractor could be released. As the payment has not been released so far, the same should have been shown as ‘claims against the Institute not acknowledged as debts’ under the head Contingent Liabilities and Notes on Accounts, as per requirement of the Schedule-25 of the Common Format of Accounts. However, the same has not been done. General Broadsheet(s) in respect of Provident Fund (` 1164.75 lakh) has not been maintained in the format prescribed in the para 6.8 and the closing has also not been done in the manner prescribed in the para 6.9 of Civil Accounts Manual. Following comments were included in the Annexure to SAR of NITTTR A B 1. 2. 3. Adequacy of Internal Audit System: The institution has an internal audit wing. However, the internal audit was deficient to the following extent: Internal audit reports were not generated. Internal audit manual had not been prepared by the Institute. The quantum of records to be checked by internal audit had not been fixed. Audit programmes were also not formulated. Adequacy of Internal Control System: Register/ list of title deeds for the landed properties and buildings was not being maintained. Security deposits/ fidelity guarantees were not obtained in respect of employees handling valuables such as cash and stocks. There was no plan of rotation of duties of employees dealing with cash, stocks and other valuables. No Accounting manual had been prepared by the Institute. B.R. Ambedkar National Institute of Technology (NIT), Jalandhar • Balance Sheet - Liabilities - Corpus/ Capital fund - Rs. 22775.94 lakh In accordance with prescribed Common Format of Accounts for Central Autonomous Bodies for the Balance Sheet, the balance of Net Income (Expenditure) has to be transferred from the Income and Expenditure A/c to Corpus/ Capital Fund, whereas, the Institute transferred the same to Reserve and Surplus. This has resulted in understatement of Corpus/ Capital Fund and overstatement of Reserve and Surplus by Rs.33.13lakh (after adjustment of deficit of previous year). Assets - Current Assets, Loans and Advances (Schedule-11): Rs.5216.88 lakh Above includes an amount of Rs.25.98 lakh on account of advances outstanding against employees for more than six months which further include an amount of Rs.14.76 lakh which are outstanding for more than 5 years. Either these have been written off or to be disclosed separately by way of note. This has resulted into overstatement of Current Assets Loans and Advances and understatement of loss to the extent of 14.76lakh. Notes to Accounts (Schedule-25) The expenditure incurred for import of equipments valuing Rs. 46.29 lakh by the Institute in foreign currency has not been disclosed separately. The expenditure of Rs.25.86 lakh incurred on foreign travel by the officers/officials of the Institute was not shown. Neither the Contingent liability in respect of 12 court cases (9 in Punjab & Haryana High Court plus 3 other cases) filled by the individuals / employees against the Institute and are pending as on 31.3.2012 has been provided nor has the fact been disclosed. Sant Longowal Institute of Engineering and Technology(SLIET), Longowal Consumable in Departments/Labs: Rs.102.42 lakh (Schedule 12) - Office Consumables: Rs.5.61 lakh Above includes a payment of Rs.2.90 lakh made to M/S Spectra Computech Pvt.ltd. Chandigarh (Rs.2.74 lakh) and M/S Sagar Sales Corporation Patiala (Rs.0.16 lakh) on account of supply of personal computer and fax machine. As both of these items are non consumables items and so these items should be capitalised. This has resulted into overstatement of expenditure and understatement of fixed assets by Rs.2.90 lakh. Indian Institute of Advance Studies (IIAS), Shimla Income and Expenditure Account : Expenditure- Other Administrative Expenses (Schedule 12): Rs. 9.09 Crore The above includes Rs.383.78 lakh (Maintenance of residential and non-residential buildings Rs.21.72 lakh, Electrical Works Rs.13.30 lakh, Special repair and maintenance of Rashtrapati Niwas: Rs.348.76 lakh) which was given as advance for deposit works to CPWD, but was accounted as final expenditure in the Income and Expenditure Account. This has resulted in overstatement of Expenditure and understatement of Current Assets, Loans and Advances by Rs. 383.78 lakh. Central University of Kashmir, Srinagar Income and Expenditure A/c : Income-Interest Earned: Rs. 58.40 lakh (Schedule 7) Above includes Rs.56.54 lakh on account of Interest earned on Saving accounts and FDR on the funds invested from the Unspent Grant-in-Aid. Since this is not the income of the University, it should have been credited to concerned head Grant-in-Aid. This has resulted into overstatement of Interest Earned and understatement of Current Liabilities and Provisions (Schedule-2) by Rs.56.54 lakh.