Cooperative speed audit programme a window-dressing

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Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsMaking the statutory audit a mere farce, the Cooperative Speed Audit Programme launched in the Primary Agricultural Cooperative Societies (PACS) concluded on July 31. It was in May 2012 that the Cooperative Audit Department launched the programme in over 1600 PACS envisaged to make it current in just one month. Cooperative auditors, numbering around 1000, completed the audit in 98 percent of societies. The delay in completing the audit had been cited as an obstacle for claiming NABARD assistance. Cooperative auditors pointed out that the programme was launched without issuing any circulars or orders. They said normally it was on the basis of the Cooperative manual that specific quantum of works are decided. But this time, this was not followed. In just three months’ time, audit pending from 2008 to 2011 were completed to make it current. Some of them expressed concern that after completing the auditing for the 2011-12 period. Many of them would become jobless. As of now, their salaries, perks, pension contributions and even leave surrender benefits are paid by the PACS, a provision strongly objected to by the financially ailing societies. NGO Union treasurer N Sreekandashan told Express that the speed audit programme was against the very concept of auditing. “The government initiative to conduct speed audit was against the very concept of auditing. They are now mooting audit by Chartered Accountants as a step ahead of implementing the Central Act as per Vaidyanathan Commission recommendation,’’ he said. He pointed out that the very first step in auditing was to examine the cash balance and minutes book to know whether the decisions taken were in order. If Chartered Accountants are engaged they will be looking for the arithmetical accuracy, he said. One of the auditors who did not want to be identified told Express that only random examinations were made in the namesake auditing. “In fact, if we want to audit in a satisfactory manner one has to start from the vouchers and receipts. The examination of day book with general ledger, general ledger with subsidiary books, details of distribution of profits to shareholders, allocation of fixed assets, minutes verification, loans, Individual Maximum borrowing power (IMBP) etc also should have been examined as part of the auditing. But nothing could be done in just one or two months time,’’ he said. The end result is the ratification of all illegal and corrupt activities by PACS director boards and officials, he said. first published:August 27, 2012, 12:40 ISTlast updated:August 27, 2012, 12:40 IST
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Making the statutory audit a mere farce, the Cooperative Speed Audit Programme launched in the Primary Agricultural Cooperative Societies (PACS) concluded on July 31.

It was in May 2012 that the Cooperative Audit Department launched the programme in over 1600 PACS envisaged to make it current in just one month.

Cooperative auditors, numbering around 1000, completed the audit in 98 percent of societies. The delay in completing the audit had been cited as an obstacle for claiming NABARD assistance.

Cooperative auditors pointed out that the programme was launched without issuing any circulars or orders. They said normally it was on the basis of the Cooperative manual that specific quantum of works are decided. But this time, this was not followed.

In just three months’ time, audit pending from 2008 to 2011 were completed to make it current. Some of them expressed concern that after completing the auditing for the 2011-12 period. Many of them would become jobless.

As of now, their salaries, perks, pension contributions and even leave surrender benefits are paid by the PACS, a provision strongly objected to by the financially ailing societies.

NGO Union treasurer N Sreekandashan told Express that the speed audit programme was against the very concept of auditing.

“The government initiative to conduct speed audit was against the very concept of auditing.

They are now mooting audit by Chartered Accountants as a step ahead of implementing the Central Act as per Vaidyanathan Commission recommendation,’’ he said.

He pointed out that the very first step in auditing was to examine the cash balance and minutes book to know whether the decisions taken were in order.

If Chartered Accountants are engaged they will be looking for the arithmetical accuracy, he said. One of the auditors who did not want to be identified told Express that only random examinations were made in the namesake auditing. “In fact, if we want to audit in a satisfactory manner one has to start from the vouchers and receipts.

The examination of day book with general ledger, general ledger with subsidiary books, details of distribution of profits to shareholders, allocation of fixed assets, minutes verification, loans, Individual Maximum borrowing power (IMBP) etc also should have been examined as part of the auditing.

But nothing could be done in just one or two months time,’’ he said.

The end result is the ratification of all illegal and corrupt activities by PACS director boards and officials, he said.