Balgach SIKKIM STATE AIDS CONTROL SOCIETY GANGTOK, EAST SIKKIM MANAGEMENT LETTER

Transcription

1 Public Disclosure Authorized Goyal Plaza, 3rd Floor, Opp. Hotel Sachitra, Sev'oke Road Siliguri -~ , West Bengal Mobile : * rkpsili,guri*gmail.com Web : ww.rkpassociates.in H.O.: Silchar * Other Branches : Guwahati. Patna, Kolkata SIKKIM STATE AIDS CONTROL SOCIETY GANGTOK, EAST SIKKIM Public Disclosure Authorized The Project Director Sikkim State AIDS Control Society Gangtok, East Sikkim MANAGEMENT LETTER Comments and observations on the accounting records, system, and controls that were examined during the course of the audit: Public Disclosure Authorized Proper accounting records, systems, and controls were maintained by the society subject to our comments as given below: a. Depreciation on Fixed Assets: Depreciation on Fixed Assets has not been provided in the books of accounts as per Accounting Standard - 6 "Depreciation Accounting" issued by the Institute of Chartered Accountants of India. Hence the financial statements do not give the actual value of the assets held by the society under the said project at the end of the financial year. Though the society has created a Fixed Asset Fund equivalent to Gross Value of Fixed Asset. b. Valuation of Closing Stock: Valuation of Closing Stock of consumable stores has not been ascertained and accounted for as per Accounting Standard - 2 "Valuation of inventories" issued by the Institute of Chartered Accountants of India. Public Disclosure Authorized c. Physical Verification of Consumables & Other Stock: As per Note Sheet, physical verification was done by the Management/Authority during the period of audit, but the copy of physical verification sheet was not provided to us. Further, we noticed that the Stock Register was not maintained properly. d. Physical Verification of Fixed Assets: As per Note Sheet, physical verification of Fixed Assets was done by the Management/Authority during the period of audit, but the copy of physical verification sheet was not provided to us. Further some of the fixed assets were not tagged / numbered. Balgach & Affilae A Network Approved by CA

2 e. Bank Reconciliation Statement: We have checked the Bank Reconciliation Statement of all the banks with the Bank Book and Bank Statement, and found them in order subject to the comments given below: i) NEW DBS Bank Code (3121) for NACP IV with ICICI Bank A/c No a) Interest of Rs 6,771/- was credited by bank on but the same has not been considered in the bank book, and the said amount has been reflected in BRS. b) Cheque No dated of Rs. 15,014/- issued to MTS against Telephone / Communication Expenses has not been presented into bank for payment. This entry has not been reversed till date of our audit. c) Cheque No dated of Rs. 2,69,500/- issued as advance under school AIDS Education Program against Advance to Staff has not been presented into bank for payment. This entry has been reversed on d) Cheque No dated of Rs. 60,000/- issued as sponsorship program for HIV/AIDS Awareness against IEC has not been presented into bank for payment. This entry has not been reversed till date of our audit as cheque being stale. ii) Bank 5 (3108) for RCC IV, with ICICI Bank A/c No a) Interest of Rs 727/- was credited by bank on but the same has not been considered in the bank book, and the said amount has been reflected in the BRS. iii) Bank 1(3102) for RCC II, with Canara Bank A/c No No such deviation. iv) TIPF -Bank (3133) for TI Pool Fund with Canara Bank A/c No a) Bank charges of Rs 102/- debited by bank on but the same has not been considered in bank book. Further, we have attached BRS along with Bank Statement for your reference. f. Fund Utilisation vis-a vis Annual Action Plan (AAP) and Physical achievement for the funds: As per AAP physical achievement was found as under:, TI - 7 Nos have been working and reporting regularly at the prescribed intervals to SSACS. ii) OST Centers - 3 Nos have been working and reporting regularly at the prescribed intervals to SSACS.

3 g. Grant to other NGOs: It is found that the grants given to other NGOs by SSACS for various programs are initially shown as Advances to NGOs and when the Statement of Expenses (SOE) are received from the respective NGOs, the Advances are transferred to Expenses as per the statement without any supporting expense vouchers or bills or documents. Further, it is found that VAT (TDS), Environment Cess (TDS), Professional Tax, TDS under Income Tax, etc are not deducted by the society on such Expenses debited. h. Expense debited twice: Cheque of Rs. 15,014/- issued on to MTS for Telephone / Communication Expenses for the month of July 2015 was not presented for payment. The same was again debited & paid on along with the bill for the month of September Hence, there has been double debit of Rs. 15,014/- which should be reversed. i. Cash payment made by SACS: During the audit process we did not find any cash transactions neither any abnormal transaction was seen. j. Tender position and bidding process: Here all TI program is run by existing NGO's. The TI program is renewed every year after evaluation and revalidation by external agency. At the Head Office all the procurements are done through proper tendering process. k. Internal Audit: Internal audit was conducted by the other independent professional firms of Chartered Accountants for the half year ended 30th September 2015 and 31st March 2016 but the copies of the reports were not provided to us for our verification, thus we are unable to make any comment. 1. Inspection Audit: We have also reviewed the Inspection Audit report conducted by the 2 Office of the Accountant General (Audit) for the period and and the society has complied to the observations made in the report. m. VAT (TDS) & Environment Cess (TDS): The Society is deducting VAT (TDS) and Environment Cess (TDS) as per Sikkim Value Added Tax Act, 2005 and Sikkim Ecology Fund and Environment Cess Act, 2005 respectively from the suppliers. It is observed that the deducted amount has not been deposited to the credit of the state government within due dates. Details of the same is given hereunder:

4 Fund Name / Amount (Z) Date of Due Date of Date of Deposit Ledger Name Deduction Deposit Global Fund 37, RCC-1l: TDS (Others) 35, (3310) Global Fund 11, RCC-IV: TDS (Others) (3310) New DBS for NACPIV: TDS (Others) 4, (3310) 4, , ,85, n. Professional Tax: The Society is deducting Professional Tax from the staff salary. It is observed that the deducted amount has not been deposited to the credit of the state government within due dates. Details of the same is given hereunder: Fund Name / Amount (Z) Date of Due Date of Date of Deposit Ledger Name Deduction Deposit Global Fund RCC-IV: TDS (Salary) (3308) New DBS for 2, NACPIV: 2, TDS (Salary) 2, (3308) 4, , , , ,

5 2, , TI Pool Fund: TDS (Salary) (3308) o. General Provident Fund: The Society is deducting General Provident Fund from the staff salary. It is observed that the deducted amount has been regularly deposited to the credit of the government-except for the month of March Details of the deduction and deposit is given hereunder: Fund Name / Ledger Amount (Z) Name Date of Deduction Date of Deposit Global Fund RCC-IV: 44, TDS (Salary) (3308) 44, , , , , , , , , p. TDS under Income Tax Act, 1961: There were some expenses (more particularly Salary and Payment to Contractors) made during the year without deduction of Tax at Source, which should otherwise be paid by deducting TDS as per the Income Tax Act, We found few expenses where TDS was deducted, but there has been delay in deposition of the same to the credit of the Government as given hereunder: 67

6 Party Name Amount of Date of Due Date of Date of TDS (Z) Deduction Deposit Deposit Laxmi Tripti & 5, Associates RKP Associates 5, Compunet 1, Samir Khanal 1, Interest on late deposit of TDS has not been deposited. 1.5% per month from the date of deduction till the date of deposit. Part of month is considered as full month.] Further, it is observed that the Assessment Year have wrongly been mentioned as instead of in the TDS Challan deposited. It is also observed that the tax deducted have been deposited under Account Code 94C whereas deduction of Rs. 10,600/- should have been deposited under Account Code 94J. q. TDS Returns: As explained to us, the Quarterly TDS returns in Form 24Q & 26Q for the year have not been filed till the date of our audit, which may result in payment of Late Fee as shown in the table below: Quarter Due Date of Date of Late Filing Fee Remarks Return Return Filed Apr -Jun Not Filed - NIL Return jul - Sep Not Filed - NIL Return Oct - Dec 15 Jan - Mar Not Filed Not Filed Rs 200 per day Rs 200 per day Max late fee is equal to Tax deducted i.e. Rs 10,600/- Max late fee is equal to Tax deducted i.e. Rs 2,500/-

7 r. Income Tax Return: Income Tax Return for the Assessment Year was filed by the Society within due date. FOR RKP ASSOCIATES CHARTERED ACCOUNTANTS FRN:32247 Place: Gangtok Dated: The 20th Day of July 2016 (CA, BISHAL GOYAL) PARTNER MRN: n'? " i

8 Goyal Plaza, 3rd Floor, Opp. Hotel Sachitra, Sevoke Road Siliguri , West Bengal Mobile : * rkpsiliguri*,gmail.com Web H.O. Silchar * Other Branches : Guwahati, Patna, Kolkata Auditor's Report in respect of NEW DBS FOR NACP. IV, GLOBAL FUND RCC.IV, GLOBAL FUND RCC-II, TI POOL FUND To The Project Director Sikkim State Aids Control Society Gangtok, East Sikkim Introductory Paragraph We have audited the accompanying financial statement of the National AIDS Control Projest - Phase III (Financed under World Bank Loan/Credit No IN) as of March 31, Our responsibility is to express an opinion on these financial statements based on our audit. Scope Paragraph We conducted our audit in accordance with Standard on Auditing issued by the Institute of Chartered Accountants of India. The standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit includes examination, on a test basis, evidence supporting the amounts, review of internal controls and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Opinion Paragraph In our opinion, the financial statements, read with observation, if any, give a true and fair view of the Source and Application of Funds and the financial position of Sikkim State Aids Control Society for the year ended March 31, 2016, which has been prepared by the management in accordance with consistency and applied Accounting Standards subject to our comments detiltd irn Annexure - 1. In addition, (a) with respect to IFRs, adequate supporting documentation has been mentioned to support the IFRs, (b) which expenditure are eligible for financing under the credit/grant Agreement, and (c) procurement of goods and services has been carried out as per the procurement manual issued by NACO, GOI and NGO/CBO guidelines. FOR RKP ASSOCIATES CHARTERED ACCOUNTANTS FRN:322473E (CA'tISHAL GOYAL) Place: Gangtok PARTNER Dated: The 20th Day of July 2016 IMRN: Rlalgach 4 Networkr Approved by IMA wwwbatn.ach.comi

9 Sikkim SACS - TI POOL FUND N'CO Yangthang Building Kazi Road, Gangtok National AIDS Control Project - Phase III Utilisation Certificate Certified that an amount of Rs.11,673, received as grants-in-aid received from Department of AIDS Control (NACO) during the Fin.Year vide letter No. given below and opening Cash/Bank Balance Rs. 347, (and Current Liabilities of Rs.0.00)and outstanding Advances for Rs. 188, on account of unspent balance brought forward from the previous financial year, and Bank Interest and Miscellaneous Receipts of Rs. 13, a sum of Rs. 12,142, has been utilized for the purpose for which it was sanctioned and the Cash/Bank balance of Rs. 39, (and Current Liabilities of Rs )and outstanding advances of Rs.39, remaining unutilized at the end of the year will be adjusted towards the grants-in-aid payable during the next year. SI. No. Sanction letter Number and Date Amount /T T itc' F7 11, 077, F'j 14C77 tfoi S- *26Z' /,(I,~ OVI/ ~cv l(~ti tic, ' tt (Al 4 ocpf' a ea,c Total 11,673, Certified that I have satisfied myself that the conditions on which the grants-in-aid was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was actually utilized for the purpose for which it was sanctioned. Kinds of checks exercised 1. Statement of Expenditures 2. Annual Financial Statements Countersigned Pqct irector) (Chartered Accountant) Project sector Sikkim Stt A" Cofro Coet Printed : System Administrator on 07/07/ :46:12 from 1221

10 Opening balance of Net Current Assets Amount Rs. TIPF-Bank 347, Advance to NGOs 139, Advance to Staff 20, Advance to Autonomous Bodies 29, , Sources of funds Amount GrantfronrNACO to SACS 11,673, ,673, Utilisation of funds Amount Other Lab. Supplies 821, Training 15, Salary 6,716, Travelling Expenses 434, Rent, Rates & Taxes 1,077, Honorarium 2,886, Bank Charges Other Administration Cost 175, Need Based Assisstance Campaigns Meeting Expenses 4, Office Equipment 10, ,142, Bank interest & Miscellhneous Receipts Amount Rs. Interest from Bank 13, , Closing balance o Net Carreztt Assets Ano unt TIPF-Bank 39, Advance to Autonomous Bodies 39, , Printed System Administrator on 07/07/ :46:12 from 1221

11 Sikkim SACS - TI POOL FUND [Draft] Yangthang Building Kazi Road, Gangtok National AIDS Control Project - Phase III Balance Sheet For The Period From : 01-Apr-2015 To :31-Mar-2016 Figures for the Figures for the Figures for the Figures for the Schedule.Schedule c.rn ei, previous Period current Period previous Period current Period LIABILITIES Reerence ( Rs.) ASSETS Reference 535, GENERAL FUND 01 78, , FIXED ASSETS 02 15, , FIXED ASSET FUND 15, CURRENT ASSETS, LOANS AND ADVANCES 347, CURRENT ASSETS , , LOANS AND ADVANCES , , , , , I F /F0 OEVNID Projec RAIDr ejfictor U ipad Account Officer Dr U l Sikkim State Aids ControcScy Projed D etor Gangtok i S D, o Printed: System Administrator on 07/07/ :48:05 from 1221 Page 1 of 4

12 Particulars General Fund 31-Nar-16 Schedule 01 Figures in Rupees 31-Niar-IS Opening grant in aid 535, ,768, Add: Received during the year Grant from NACO to SACS 11,673, ,563, Less: Utilised during the year Grants utilised to the extent of revenue expenditure (12,119,743.00) 13,791, Grants utilised to the extent of fixed asset expenditure (10,025.00) 4, Closing grant in aid 78, , Fixed Asset Schedule 02 Figures in Rupees Particulars Opening Balance Addition Deletion Closing Balance Office Equipment (2206) 4, , , SGrand Total 4, , , Printed: System Administrator on 07/07/ :48 85fromn 121 Page 2 of 4

13 Funds from Other Sources Schedule 03 Figures in Rupees Grant Utilised/ Particulars Opening Balance Grant Recieved Refunded Closing Balance Grand Total Printed: System Administrator on 07/07/ :48:05 from 1221 Page 3 of 4

14 CURRENT ASSETS Schedule 0301 Figures in Rupees As a( As a[ 31-Mar-16 Particulars TIPF-Bank 39, , Total 39, , LOANS AND ADVANCES Schedule 0401 Figures in Rupees 31-Mar-16 Particulars Advance to NGOs , Advance to Staff , Advance to Autonomous Bodies 39, , Total 39, , Printed System Administrator on 07/07/ :48:05 from 1221 Page 4 of 4

15 Sikkim SACS - TI POOL FUND [Draft] N CO Yangthang Building Kazi Road, Gangtok National AIDS Control Project - Phase III Income And Expenditure Account For The Period From : 01-Apr-2015 To :31-Mar-2016 Figures for the Schedule Figures for the Figures for the Shdu Figures for the previous Period current Period previous Period current Period irs.) EXPENDITURE Reference irs.) INCOME Rererence IRs.) 1,325, Kits and Other Lab Supplies , , Other Income 28 13, , Training and Workshops 08 15, ,791, Grants utilised to the extent of revenue 12,119, , NGO Services expenditure 9,704, Salary (Pay and Allowances) 13 9,602, Maintenance Costs ,319, Operational Expenses 15 1,693, , NULL 4, ,829, ,132, ,829, ,132, Printed: System Administrator on 07/07/ :48:40 from 1221 Page 1 of 4

16 Other Income Schedule 28 Particulars 31-Mar-16 Other Receipts Interest from Bank 13, , Total 13, , Kits and Other Lab Supplies Schedule 06 Asal Particulars 31-lar-16 Other Lab. Supplies 821, ,325, Total 821, ,325, Training and Workshops Schedule 08 Asa( Particulars 31-Mar-16 Training 15, , Campaigns , Total 15, , Printed System Administrator on 07/07/ :48:40 from 1221 Page 2 of4

17 NGO Services Schedule 11 Particulars 31-lar-16 NGO Services for Priority Interventions , Total , Salary (Pay and Allowances) Schedule 13 Particulars 31-Mar-16 Salary 6,716, ,741, Honorariam 2,886, ,962, Total 9,602, ,704, Maintenance Costs Schedule 14 Particulars 31-Mar-16 Need Based Assisstance , Total , Printed System Administrator on 07/07/ :48:40 from 1221 Page 3 of 4

18 Operational Expenses Schedule 15 Particulars 31-Mar-16 Travelling Expenses 434, , Rent, Rates & Taxes 1,077, ,203, Bank Charges Printing & Stationery , Other Administration Cost 175, , Schedule NULL 31-M%-ar M%ar-15 Particulars Meeting Expenses 4, , Total 4, , Printed System Administrator on 07/07/ :48:40 from 1221 Page 4 of 4

19 Sikkim SACS - TI P'OOL FUND N CO Yangthang Building Kazi Road, Gangtok National AIDS Control Project - Phase Ill Receipt And Payment Account For The Period From: 01-Apr-2015 To :31-Mar-2016 Figures for the Figures for the Figures for the Figures for the prei ious Period Sehedule current Period previous Period current Period RECEIPTS Reference Rs.) PAYMENTS Reference irs.) Opening Balance: 13,081, LOANS AND ADVANCES 17 7,027, Cash in hand Kits and Other Lab Supplies , ,768, Balance with Bank , Training and Workshops 20 14, ,563, GENERAL FUND 29 11,673, , NGO Services , Other Income 56 13, , Salary (Pay and Allowances) 25 3,499, ,358, ,033, , Operational Expenses , NULL 4, Closing Balance: 0.00 Cash in hand , Balance with Bank 31 39, ,358, ,033, Printed: System Administrator on 07/07/ :51:14 from 1221 Page 1 of 5

20 GENERAL FUND Schedule Mar-lo Particulars Grant from NACO to SACS 11,673, ,563, Total 11,673, ,563, Balance with Bank Schedule Mar-14 Particulars TIPF-Bank 347, ,768, Total 347, ,768, Other Income Schedule Mar-16 Particulars Interest from Bank 13, , Total 13, , Printed: System Administrator on 07/07/ :51:20 from 1221 Page 2 of 5

21 LOANS AND ADVANCES Schedule Niar-15 Particulars 'Rs.) Advance to NGOs 5,964, ,668, Advance to Staff 4, , Advance to Autonomous Bodies 10, , Inter Unit Fund Transfer 1,048, ,302, Total 7,027, ,081, Kits and Other Lab Supplies Schedule Mar-16 Particulars Other Lab. Supplies 611, Total 611, Training and Workshops Schedule Mar-16 Particulars Training 14, Total 14, Printed: System Administrator on 07/07/ :51:20 from 1221 Page 3 of 5

22 NGO Services Schedule Nlar-16 Particulars NGO Services for Priority Interventions , Total , Salary (Pay and Allowances) Schedule 25 Asa[ 31-Mar-16 Particulars Salary 2,101, , Honorarium 1,398, Total 3,499, , Printed: System Administrator on 07/07/ :51:20 from 1221 Page 4 of 5

23 Operational Expenses Schedule Mar-16 Partkulars Travelling Expenses 426, Rent, Rates & Taxes 277, Bank Charges Printing & Stationery , Other Administration Cost 131, , Schedule NULL 31-Mar-16 Particulars Meeting Expenses 4, Total 4, Balance with Bank Schedule Mar-16 Particulars TIPF-Bank 39, , Total 39, , Printed: System Administrator on 07/07/ :51:20 from 1221 Page 5 of 5