BIHAR EDUCATION PROJECT COUNCIL, PATNA
STEPS TAKEN FOR
MAINTAINING THE
“GOOD ACCOUNTING
PRACTICES” IN BIHAR
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PROBLEMS AND SITUATION PREVAILING IN THE BEPC, BIHAR
The Govt. of India vide letter no.D.O.17/1/201-SSA (DIS), Dated 8 Feb. 2012
Specifically pointed out that:-
1.
It is also brought to your kind notice that the External Development Partners
while calculating their share of eligible expenditure for the year 2010-2011 have disallowed the
expenditure of Rs. 3354.91 crore reported by SSA Bihar from the Gross expenditure because of
persistent long standing weaknesses in FM system under SSA in your state.
2. OTHER OBSERVATION :(i) MANAGEMENT Letter not furnished.
(ii) Procurement Audit Certificate was not in prescribed format.
(iii) (a) Against the total available fund only 25%. Expenditure incurred.
(b) Difference in the reported Expenditure and audited Expenditure.
(iv) Difference in NPEGEL annual consolidated financial statement and utilization certificate.
(v) In SSA difference in ANNUAL Financial Statement & utilization certificate.
(vi) Difference in unspent balance of consolidated Annual Financial Statement
and utilization certificate.
(vii) Errors/Omission of earlier years Rs.32.85 crore.
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(viii) ADVANCES
(a) Increase of advances at alarming level due to non-adjustment.
(b) Year wise/activity wise breakup of advances was not prepared.
(ix) STALE CHEQUE
Stale Cheque amountRs.44.33 crore.
(ix) Fixed Assets does not indicate “Civil Construction Work”.
3. Auditors observations are as follows :(A) Fixed Assets :(i) Fixed Assets Register has not been maintained properly even in some district it is not
maintained.
(ii) Physical verification has not been carried out.
(B) Bank Reconciliation Statements :(i) Bank Reconciliation not prepared.
(ii) Old outstanding entries require & reconciliation.
(C) Advances:At District officer, BRC, CRC & VSS subsidiary registers not maintained.
(D) Liabilities for Expenses:(i) Stale Cheque.
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(ii) Non maintain once of inward bill register difficult to assess the liabilities.
(iii) Provision of liability Audit fee of VSS Audit.
(E) Compliance of special Audit report of DLO, Saran.
(F) Due to pending reconciliation of the differences in accounts in the following cases, the
possible impact on the accounts has not been ascertained :(a) Money in transit Rs.328533377.69
(b) Term Deposit of Rs1374.00 lakh not reflected in books of accounts.
(c) Inter fund transfer of schemes SSA/NPEGEL/KGBV.
(d) Reconciliation of advances of Bihar Mahila Smakhya Society.
(c) Misappropriation of Fund at Araria district.
(G) Grants-in-Kinds :Non-availability of utilization certificate.
(H) Internal Audit system is not proper.
(I) Adjustment of advances of VSS on the basis of utilization certificate submitted
by VSS Audit.
(J) Misappropriation of Fund at Motihari, DLO.
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AREA INDENTIFIED TO TAKE THE SUITABLE ACTION
WHY WORK IS NOT DONE ?
TAKEN THE VIEWS OF DLO’s ACCOUNTS
PERSONNEL.
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•
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•
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Shortage of manpower.
It is backlog and not related to their posting period.
Old records are not available.
Banks do not provide the bank statement of back period.
Outsource these works to Chartered Accountants.
Other reasons which were not relevant.
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MAJOR ACTION INITIATED TO ELEMINATE THE MENTAL BARRIER &
RESOURCE BARRIER TO COMPLY THE WORK
 Clear cut message has been given that preparation of BRS since pendency is the
responsibility of Accounts personnel. Presently posted Accounts personnel will
search the old documents.
 Timely preparations of BRS safeguard the interest of the Accounts Personnel as in the
case of A.O. of Aurangabad.
 Fraudutant Actions are detected in time and it reveals the that person detected that
fraud can not be the part of this activity.
 DLO bankers for providing statement & details of transactions have been contacted
from SLO and those banks do not co-operate stopped fund transfer from SLO.
 Time frame fixed to complete the BRS.
 Proper follow up about works has been done.
 Vigorously reviewed and who were not serious, asked explanations.
 Those who were not knowing how to prepare the BRS proper support /guide provided
from SLO.
 Authorised DLO to have one DRG for accounting work.
 Marking system has been introduced.
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It was not possible to comply all pending works at a time. As such
areas identified to comply 1st. Entire work have been broken into small
activities. Areas identified for phased-wise solution are as follows:-
GOT FULL SUPPORT FROM SPD
1. Motivation of Accounts personnel
posted at SLO as well as DLO for
realisation about their nature of duty
and fixing priorities of work.
1.
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All accounts personnel have been
imparted training on following issues.
Difference between established
organisation (Govt., Semi Govt. and
Corporate Sector) and Project. For that
defined the project.
(1) What is Project ?
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“A Temporary endeavor undertaken to achieve a particular aim.”
(i) A Project has a temporary organization: Specific
group of people working on the project full and part time have
been start and finish. Brought to execute the project and will not exist
as a team beyond it.
Example:- People building the Channel Tunnel that links England & France
were brought together for this epic project and team dispersed
when it was completed.
(ii) The Project itself is recurring and not a recurring activity.
Particular set of circumstances and problems before.
(iii) There should be a well - defined objective for the Project.
 What the project will deliver.
How the projects need to be integrated with other projects.
How to Prioritize the Project against other options and resource uses.
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(iv) There is a defined
set of budget, resourcing (Money, People, Equipment etc.)
time scale Constraints.
 Project is actually the response a need, the solution to problem further it is a
solution that promises a benefit typically a financial benefit.
2. (a). What is Project Management
(b). Functions & Project Management:- ”The application of knowledge, skill,
tools and techniques to Project activities to meet project requirements.”
(i) Planning:“Regular define the sequence, timing, resource requirements and dependencies of
activities within the project.”
(ii) Organization:All aspects of selecting the project Team, resources facilities, Communications,
Operations, Meeting etc.
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(iii) Implementation:a)
b)
c)
d)
e)
Making it happen.
Carrying out the planned activities.
Staying on Course.
Identifying and resolving issues.
Providing feedback on completion of milestones, progress of the overall
project, future resource requirement and rises.
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3. ABOUT AUDIT
1. PROPER ATTENTION:Personal Performance Report
It is Personal performance report of Accounts
Personnel sincerity, systematic, consistency
and conclusion.
Provides dignity & recognization
To get personal dignity and recognization.
Minimize Service risk
Clean/ Positive report of Audit minimize the
service risk.
Save Time
Properly Conducted Audit Saves time which
can be utilized in other works also.
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2. STEPS TO GET THE AUDIT SUCESSFULYMental Preparedness & signed
Mentally prepared to face the Audit Team – It
is possible when.
Updation of Cash Book & its
physical verification of Cash
Cash book is up to date and properly signed
by the competent Authority, Physical cash
balance is verified.
Cash & Bank Certificate
Cash /Bank Certificate is obtained.
Vouchers enclosures to be
Systematically arranged
All Vouchers and enclosures are arranged in
systematic way Day to Day basis.
All Financial Statements to
be Ready
Other financial statement i.e. Trial balance
BRS advances requires to be ready.
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3.BEHAVIOURAL APPROACH OF ACCOUNTS PEOPLEInformal Talk
Mentally prepared to face the Audit Team – It
is possible when.
Introduce to DPO & DEO
Proper Sitting arrangements
When Auditor reach Introduce to DPO & DEO.
Make proper sitting arrangements nearest to
you and provide stationery items.
Provide Stationary Items
Provide required Paper/ Documents/ Books of
Accounts.
Clarify the Points
Clarify all the points which are raised by
Auditor during the course of Audit.
Coordinate with all components Coordinate with all components to provide
necessary Files/ Documents. If other component
not respond positively then make specific report
to DPO.
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4. CONTINEOUS MONITORING & FOLLOW UP
whatever ordered earlier, complied or not? If not why?
It gives a message that we are serious about our given order whether it
is being done or not?
In case personnel not performed then Disciplinary action like
explanation and circulate to overall Districts. It gives sense of
responsibility.
THREE MEMBERS TEAM CONSTITUTED AT SLO FOR MONITORING
(a) Md. Ashfaque Ali (Sr. Auditor)- Who used to do the work and
guide the District Accounts Personnel.
(b) Smt. Priya Singh – Continuous in touch with District Accounts
Personnel to know the progress of work. Whether it will be
completed in the Schedule time or not.
(c) Sri Rupesh Kumar Mishra, Asstt. Accountant – Who assisted Md.
Ashfaque Ali (Sr. Auditor).
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Some hardcore officer and Staffs who were not in view that the wok
is impossible. They tried to demoralise the working force. Kept them
away from mainstream and neither involved in the work nor
aggravated them.
5. All Audit Observations can ‘t be complied in time then the
priorities of work has been fixed as per pressure of Govt. of
India & Executive committee:A lot of steps were taken by the ex Financial Controller for
preparation of BRS at DPO office. BRC of all banks can be
prepared. Extra manpower in the form of SRG put on but intended
objectives were not achieved.
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RESULTANT EFFECT OF THESE ACTIVITIES ARE:Bank Reconciliation Statement
Sl. No.
1.
2.
3.
Status
Upto August , 2012
Upto 3103.2012
Pending Since March, 2011
SSA
25
11
02
NPEGEL
22
08
02
KGBV
22
11
01
4.
Total Districts
SLO (Oct., 2012)
38
01
32
01
34
01
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.
.
.
.
In the District where posted Accounts personnel where in less no. have
completed the work first.
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It gives clear cut signal that the manpower is not the problem willpower
is essential.
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Not a single Accounts personal raised question about shortage of
manpower and backlog work.
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Md. ASHFAQUE ALI – SR. AUDITOR, SRI RUPESH
KUMAR MISHRA & SMT PRIYA SINHA – ASSTT.
ACCOUNTANT AND DLO ACCOUNTS PERSONNEL
COMPLETED THE FOLLOWING WORKS:•
(a) Md. Ashfaque Ali (Sr. Auditor)- Who used to do the work and guide the
District Accounts Personnel.
(b) Smt. Priya Singh – Continuous in touch with District Accounts Personnel
to know the progress of work. Whether it will be completed in the Schedule
time or not.
(c) Sri Rupesh Kumar Mishra, Asstt. Accountant – Who assisted Md. Ashfaque
Ali (Sr. Auditor).
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WORK COMPLETED AS PER PRIORITIES
(i)
Transfer of funds from DPO to BRCs, CRCs and VSSs through
electronic fund transfer system.
(ii) Bank Reconciliation Statement.
(iii) Preparation of Balance Sheet of all DPOs. Since inception of SSA
Project.
(iv) Statement of District- wise, Year-wise and Age-wise & Head-wise
Advances from 2001-02 to 2010-11.
(v) Statement of Liabilities District-wise, Year-wise & Head-wise since
inception of SSA Project.
(vi) District-wise, Year-wise details of Assets.
(vii) Partial Reconciliation of Errors and omission reflected in the balance
sheet amounting to Rs. 32.85 crores.
(viii) Stale cheques amounting of Rs 49.48 crores.(Partially)
(ix) Classification of Civil Work Expenditure.
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FUTURE STRATEGY TO IMPROVE THE QUALITY OF MAINTAINANCE OF
ACCOUNTING AS WELL AS AUDIT WORK
1.
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2.
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Fortnightly Concurrent Audit System will be implement. In place of so many Audit
firm only three firm’s for 3 zone shall be appointed.
RFP is invited which is under process of finalization.
Customization and synchronization of Tally System will be done by M/s Tally
Solution Pvt. Ltd. The Technology advantage of Tally.ERP 9 as below:Fixed Charter of Account Head
 Rapid Implementation
No back date entry by DLO
 Unlimited Multi-User Support
Data Reliability – Data can’t be changed
 Internal Backup/ Restore
Data Security
 Import/Export of Data
 Web Enabled
Tally Audit
 Protocol Support
Tally Vault
 Graphical analysis of Data, etc
User Defined Security Levels
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3.
Clear cut instruction has been given to the district to maintain SSA-RTE,
NPEGEL & KGBV SB A/c in one Bank and close the other Bank Accounts
after the Bank Reconciliation.
Result is positive and it will reflect in the Books of Accounts Financial Year
2012-13
Entire rectification is not possible at once. It will take at least 3 to 4
years.
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BIHAR EDUCATION PROJECT COUNCIL, PATNA
COMPOSED BY SUBHASH
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