O/o Registrar of Coop. Societies, A.P., Hyderabad.
Rc.No.20435/04-B6.
Dated:04-7-2004
SUB: AUDIT - Video conference of C.C & R.C.S. - Failure of
Auditors in submitting qualitative and timely reports - Instructions issued -
Reg.
REF: Minutes of Video conference held on 24 to 26-7-2004 and
29-7-2004.
1. No details of Interest Due as appeared in many Balance
Sheets of P.A.C.S. for which the Auditor has to furnish the names of members
from whom Interest is due. By verifying the loan ledgers maintained by the
societies,
2. No details of cash balance retained by Secretary and
Presidents of societies for which the Auditor has to furnish the details like
date from which the Cash balance retained and the person responsible for
retention and interest to be charged for the period of retention up-to the year
of Audit by verifying the cash book of the society.
3. Difference in Opening and Closing cash balances for which
responsibility has to be fixed on the concerned.
4. Heavy retention of cash balances in
violation of bye-law provisions for which interest to be charged and responsibility
has to be fixed on the concerned.
5. Heavy advancement of amounts under "suspense due
to" to Non-officials, Departmental employees and Person-in-charges for
which confirmations have to be obtained and filed· with FAR and in case no
proof is available concerned person who passed. the. amount will be held
responsible and shown to have recoverable from him.
6. Secretaries of societies are continuing in other
societies, even after committing Misappropriation of heavy amounts for which
the concerned administrative officer should sec that the person is suspended
from duty and the Auditor should submit a special report.
7. In many cases where misappropriation is reported only
Presidents are being held responsible and the Secretaries are being absolved
for which the administrative officer has to find out prima-facie evidence
against the Secretary and also held him responsible.
8. Receipts are being given to Secretaries who
were involved in Misappropriation cases for which the Administrative officer
should see that the receipts are taken back from him.
9. Divisional Coop. Officers have not verified the
Triplicate receipt books, on the plea that the special reports are not received
from the Auditors for which the Dl.C.Os cannot find fault with the Auditors
since it is the job of the Administrative officer to regulate the functioning
of the society.
10. The D.C.A.Os are submitting Monthly progress reports as
audit completed, F ARs received and A.Cs issued, but the status of audit explained
in Video conference differs, giving room for wrong reporting for which the
DCAOs shall maintain all the prescribed registers and the-MPRs should be based
on the facts and figures that appear in the concerned registers,
11. Divisional Cooperative Officers are disputing the receipt
of FARs from DCAO office for which the DCAO shall maintain a register note
down the F ARs handed over to the D.L.C.O and obtain their acknowledgement in
the register.
12. Sub-Divisional Cooperative Officers where they arc the
members on P.I.C. are not attending the monthly M.C. meetings and trying to
avoid their duties on the plea that they were not informed the date of meeting
by which they will not be absolved of their responsibility. They must know the
date and attend the meeting invariably.
13. It has also observed that the SDLCOs, DL.C.Os, D.C.Os
have not gone through the F ARs submitted by the Auditors for which all the
administrative officers are instructed to go through the F ARs submitted by the
Auditors and should take action immediately wherever necessary.
14. Facts pointed out in the F ARs arc being differed in the
Surcharge orders and the delinquents are being absolved of the responsibility
for which the Dl.C.O should not overlook the findings of the Auditor since
Audited document is a statutory one.
15. Heavy amounts have been advanced to departmental officers
towards Election Advance and they are not settled so far for which the
administrative officer should ensure the settlement of the advance.
16. It is also observed that heavy amounts of advances are
due from departmental officers where misappropriation and Irregular expenditure
is high for which DCO should review the item and take necessary action wherever
necessary.
17. Heavy amount of advances were collected from employees,
without collecting interest or when collected with lower rate of interest for
which the DCO should review and adopt uniform procedure of charge interest @18%
per annum.
18. Where Secretaries have been suspended on charges of misappropriation
of funds, they are being paid suspension allowances on old pay scales, without
observing the contents of G.O.Ms.No.94 for which the DCO should review and set
right the discrepancies if any.
19. Amounts are not being collected from judgement debtors
where Honourable Courts have not stayed the E.Ps for which collection process
may be enforced and amounts recovered without any hesitation.
20. In some cases where interest is outstanding from members,
adjustment entries were passed to the effect that the Interest is collected and
equal amounts is shown to have advanced to them, for which entries must be
reverted and the actual position to be shown since the entries will inflate the
profit.
21. Where Secretaries have obtained stay orders on their suspension,
they are being allowed to handle cash and to issue receipts, for which the
administrative officers in consultation with the G.M. of DCCB should sec that
the receipt books are not handed over to him, since the stay was granted on his
suspension but not on issue of receipts.
22. Heavy amounts were drawn for purchase of lands, furniture
and office building and after many years, the amounts are being refunded
without interest and also without utilizing the amount for the purpose for
which it was drawn for which the administrative officers may take action
against the person who has drawn the amount on the ground of temporary
misappropriation and fix-up responsibility on him.
23. Where Court stayed the suspension of Secretaries no one
bothered and filed stay vacation petitions for which the concerned
P.I.C./SD.L.C.O, Branch Manager and G.M., should take initiation and should see
that the stay vacation petition is filed.
24. Where misappropriation occurred and Bank Employees
involved, no action is being taken by the Bank on their employees for which the
G.M. should be pursued for further action and ensure repayment of the amount
besides taking disciplinary action against the concerned employee.
25. DR/OSDs are not attending to the sales and attaching
properties of defaulters but are simply deputing the sale officers. For which
OSDs and D.C.O. should attend to the sale duty where heavy amount of loans are
defaulted by V.I.Ps and influenced persons as a moral support to the sale
officers.
26. Where in cases of auctions of immovable properties are
held and no bidders are forthcoming district agencies like Housing Corporation,
S.C and B.C. societies may be involved for purchase of lands for house sites
for which the DCO should pursue the matter with the Collector and Joint
Collector, since the District Collector is the ex-officio president/chairman of
the Institutions.
27. Where mis-appropriation cases are reported orders U/S 73of A.P.C.S. Act are not being issued allowing the defaulters to sell away their
properties for which the administrative officers should collect the details of
immoveable properties held by the delinquents from the Financing Bank and should
pass necessary orders attaching their properties before issuing judgement
orders.
28. No DCO convened Coordination committee meetings on
rectification of defects and have not rectified the defects for which the
DCO/Chairman should take initiative and instruct the convenor to convene the
meeting every month and should rectify the defects pointed out by the Auditor
and· should submit a detailed report every month to the Chief Auditor.
29. D.C.Os are not evincing interest in searching out the old
FARs and filling up of the gaps of no details available in Due to items for
which the D.C.A.Os should visit society gather information by accessing the
books accounts and update the information in the F ARs.
30. G.O.Ms.No.94 is- not being implemented strictly in few P.A.C.Ss while paying, salaries to Secretaries for which the DCO should evince interest and see that the G.O.is implemented in Toto.
All the D.C.A.Os are instructed to go through the above findings of the CC & RCS and see that the Auditors have examined the affairs of the society in the above aspects and detailed defects sheet is being prepared and enclosed to the FARs. They should also ensure that the Auditors have conducted 25% personal verification of loans, Suspense Due to items, and reconciled all the investments and deposits and recommended for correct classification of a society by enclosing revised classification Memo.
All the D.C.A.Os should
acknowledge the receipt of this circular by return post.
Encl: Email attachments of Due to' and ‘Mis-appn items’ of
concerned districts.
To
