Saturday, 9 February 2013

Formation of Audit Report for Co-Operative Housing Society

Formation of Audit Report:

As per the guideline / instructions in the circular of the office of the Commissioner Co-operation, M.S. Dated. 12/03/1974 & 13/08/2007, features of the audit report shall be as follows :-
    Audit Report should be clear, instructions should not be vague similarly it should not also be brief.
    Personal remark should not be mentioned in the report.
    Formation should be made to the point, part wise and subject wise and obliged to the provisions in the law.
    Financial  Statements  should  be  in  ‘N’  format  provided  in  the  Co- operation Rules.

Formation of the Audit Report should be in three Parts as shown below :

Part A – Following matters may be included in this part.

    Financial embezzlement.
    Improper appropriation of fund.
    Effects  of  the  transactions  to  be  caused  by  society  due  to  a policy decision.
    Improper and Irregular loan transaction.
    Improper Investments.

Part – B – Following points should be elucidated in this part.

A.  Management Part
 Following matters should be taken into consideration While giving paragraph wise instructions and remarks on this part.
·        In this, there should be information about the period of the audit, details of the audit officer, the type of the audit, explanations and information etc.
·        Details of the fulfilment of terms of membership, method, fulfilment of necessary legal procedure, transfer procedure and registers thereof.[for resale of flat Bye-Laws No. 38[e] & for death case Bye-Laws No. 34 or 35 is properly follow or not] 
·        Details of  the  requirement  of  employees,  its  backlog,  expenses  to  be incurred on them.
·        In this, there should be details of the proceeding of a management committee meeting,  an annual general body meeting,  a decision  taken  in  it  and  its implementation, its legal and  financial  effects to be caused because of this.
·        If financial agencies had undertaken inspection, then elucidation regarding whether fulfilment of the deficiencies was made or not.
·        If the society had not rectified the important faults mentioned in the last year’s statutory audit report, then it should be included.
·        Those with legal  provisions  which  society has  not  complied  that  should  be mentioned.

B.     Financial Management Part

1. Appropriation of funds and availability.
2. Valuation of reconciliation matters and inspection.
3. True and exact position of profit and loss and reconciliation.
    4. Budget Statement.
          5. Analysis of loss and profit and reconciliation.
          6. Cash in hand and subtle.
          7. Provisions.

C.    Loan Transactions :

1. Policy.
2. Distribution of loan.
3. Dues.
4. Recovery.
5. Unproductive and dubious debt fund.

Part- C - General Instructions and Remarks.

In this, the matters like vehicles, expenditure vouchers, constructions, furniture and other  purchasing,  travel  expenses,  stationery  and  other  financial  matters  may  be included.  Similarly classification of auditing and other miscellaneous paragraphs may also be included.
It is the responsibility of the auditor to give special report, if serious nature financial misappropriation committed in society.

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