Presentation on Maintenance of Books of Accounts and Closing of Annual Accounts of SSA by Chief Consultant, TSG and Finance Controller, SSA, West Bengal

Maintenance of Accounts State Implementation Society is required to maintain the following books of accounts and registers(a) Cash Book (b) Ledger (c) Journal (d) Register for Journal / Magazines / News Papers (e) Register of Advances (f) Register of Bank draft received (g) Cheque issue register (h) Register of remittances made into the Bank (i) Bank Pass Book / Bank statement (j) Register of bank drafts dispatched (k) Bill Register (l) Establishment Register (m) Stock Register Capital Goods, Non-consumable articles, Consumable articles (n) Register of works (o) Register of grants of advances to mobilizing agencies / NGOs / Voluntary Agencies (p) Fixed Assets Register (q) Register of Investments (r) Classification accounts of the Project (s) Monthly accounts of Receipts and Payments (t) Temporary Advance Register staff, contractors / suppliers / VEC (u) Despatch Register (v) File Register.

SIS may maintain any other books of accounts, if considered desirable. Society should prepare every month a district wise abstract to indicate the monthly expenditure. A quarterly consolidated account indicating the receipts and payments should be prepared. Opening balance and closing balance should be indicated correctly every quarter. Wherever the funds are received and utilised including the VECs / SMCs are required to maintain the accounts.Consolidated records of reciepts and expenditure need to be maintained at the district and State Project Office. Maintenance of Accounts contd.../-

Society is required to maintain a register of assets and a stock register separately for capital goods, consumable and non-consumable articles acquired out of SSA funds.Society shall also arrange the physical verification of the assets at least once a year. The asset register and stocks register need to be maintained at the level of school, CRC, BRC, DPO and SPO. An abstract of register of assets need to be appended to annual statement of accounts.The register of abstract shall contain progressive figures of stores and their values.Maintenance of Accounts contd.../-

Annual Accounts of SSA Society need to prepare annual accounts of the receipts and payments and a statement of liabilities. The SPO shall prepare the annual accounts of the society immediately after the close of the financial year. The annual accounts need to be got approved by the Executive Committee of the Society. The annual accounts of the society are mandatorily to be got audited by a Chartered Accountant firm.

No of Units under Different levels of Paschim Banga Sarva Shiksha Mission Covered & Included in the Compilation of Annual AccountsNo. of CLRC UnitsNo. of VEC UnitsNo. of WEC Units

Maintenance of Books of Accounts and Preparation of Final Accounts in West Bengal

As prescribed in FM&P manual Double entry system of accounting is followed in west Bengal up to CLRC level and it is under single entry in VEC/WEC. Cash book and vouchers are the only basis in preparation of accounts statement in VEC/WEC. Separate cash book under double column is maintained up to the level of CLRC.No such separate cash book is maintained in VEC/WEC and expenditure statements are prepared on the basis of common cash book supported by the bank pass book for banks transactions and vouchers.

Mainly following books of accounts are maintained in SPO and DPO Separate cash book for each scheme viz. SSA, NPEGL, KGBV under double column cash book is maintained.Bill/Vr register for recording of each bill processed for payment with a sl.no. duly signed by Accountant, FAO,CF and SPD after each processing.Bill/Cr. Vr. register for recording each receipt with sl.no. duly signed by Accountant, FAO,CF and SPD after each processing.Cheque issue register for recording issue of cheques against each payment vr.Stock Register.Fixed Asset Register.Register of advances.Bank Pass Books/Bank Statements.File Register.Despatch Register.Pay in slips for depositing cheques/cashBank reconciliation statements.LedgerJournal

Mainly following books of accounts are maintained in CLRC Separate cash book for each scheme viz. SSA, NPEGL, KGBV under double column cash book is maintained.Cheque issue register for recording issue of cheques against each payment vr.Register of advances.Bank Pass Books/Bank Statements.Bank reconciliation statements.Ledger

Mainly following books of accounts are maintained in VEC/WEC Only statements of accounts are maintained.Vrs. are prepared and preserved.Common Bank pass book is maintained.Statement of civil works cost is prepared.UC s prepared.

In SPO and DPOs generally annual accounts is prepared through Tally Accounting system. In other offices it is prepared manually. Journal entries at year end are passed for provisions and adjustments. Manual accounting is at present maintained also side by side. Separate accounts for districts and SPO are prepared, remittances are reconciled, BRS is prepared up to the level of CLRC and then compiled accounts at SPO is prepared. Income & Expenditure Accounts, Balance Sheets of each District and SPO and the Consolidated Income & Expenditure Accounts and Consolidated Balance Sheet are prepared under Standard Accounting Principle.

Status of Annual Accounts in West Bengal for the year 2009-10All the district accounts have been completed prior to 30th June, 2010.In SPO the accounts have been completed in 2nd week of July, 2010. The delay is mainly due to shortage of staff at SPO Finance.The consolidation of accounts at SPO will be done after completion of Statutory Audit at DPOs and SPO.

Status of Statutory Audit in West Bengal, for the year 2009-10Approval of EC to engage Statutory Auditor for 2009-10 from the panel of C.A Firms sent by MHRD was obtained in Nov.2009.Empanelled C.A firms were requested to submit their profile along with separate financial bids on the basis of details sent to them for coverage of statutory audit in March, 2010.A meeting with the bidders were arranged before opening of the financial bid to clarify any ambiguity and offered scope to modify their financial bid on such clarification in place of the initial offered rates in 1st week of April, 2010.Selection of firms completed on 30th April,2010 and five C.A firms were selected for the twenty educational districts along with a lead auditor and the C.A. firms were informed in 1st week of May,2010 with direction to start audit by May end.

Practically statutory audit started in 2nd week of June after a review meeting in 1st week of June with district FAOs when statutory Auditors also participated for face to face interaction about the fixing up the schedule for starting of audit in different districts. In the same meeting the lead auditor interacts with the other auditors for their co-ordination and co-operation and for fixing up the consolidation schedule.A formal meeting was also held with the auditors on 24th July i.e. before the MHRds video conference on 26th July for updating the latest position of statutory audits going on throughout the districts. The progress was quite satisfactory except the Darjeeling District, where due to political disturbance progress is not upto the mark.This time coverage of statutory audit of more than one third of VECs/WECs and CLRCs could be achieved.It is expected that the statutory audit will be completed within 15th of August,2010 and report of auditors will be submitted by 31st August i.e. one month in advance than the prescribed calendar.

Some of the proformas of Books of Accounts used in West Bengal and Income & Expenditure proforma and Balance Sheet are reproduced belowFormat of Cashbook

CASH BOOK

Dr. Receipt

Payment Cr.

Date

Particulars

L.F

Vr. No.

Cash

Bank

Date

Particulars

L.F

Vr. No.

Cash

Bank

Format of Cheque Issue RegisterFormat of Ledger Book

Sl. No.

Cheque No.

Date

Issued to

Amounts (Rs.)

Voucher No. & Date

Purpose

Signature of

Cashier

Signature of CF

Signature of SPD

LEDGER ACCOUNT

Dr.

Cr.

Date

Particulars

Folio No.

Amount

Date

Particulars

Folio No.

Amount

Format of Voucher Register

VOUCHER REGISTER

Voucher No and Date

Particulars of Voucher

Amount

Signature of Authorized Persons

Accountant

FAO

Controller of Finance

State Project Director

Name of the SIS __________________

Chartered Accountant FirmState Project Director (SSA)

Annex-XXI(See Para No 108.1)(Figure in Rs.)Consolidated Balance Sheet as on

LIABILITIESScheduleAmountCurrent yearAmount Previous YearASSETSScheduleAmountCurrent yearAmount Previous YearCapital FundFixed AssetsOpening BalanceGeants received from Govt. of IndiaSSANPEGEL & KGBVGrants received from State Govt.SSANPEGEL & KGBVCivil Works :Opening BalAdd transferred during the yearTotalComputerFurnitureVehicleEquipmentTotalCurrent AssetsAdvances outstanding :(a) Civil Works i) Op. bal ii) Advances during the yearTotalLess Transferred to Civil worksNet Balance(b) Others Less Excess of Expenditure over income transferred to Capital FundNet Capital FundBalances at districts:Cash at Bank Cash in HandBalances at SchoolAdvances repayable Closing Balance at SPOCash in HandCash at BankCurrent LiabilitiesTotalTotal

Annex-XXII See Para No. 108.1(Figure in Rs.) Consolidated Income and Expenditure Account for the year ended ..

Name of the SIS __________________

Chartered Accountant FirmState Project Director (SSA)

EXPENDITUREScheduleAmountCurrent yearAmount Previous YearINCOMEScheduleAmountCurrent yearAmount Previous YearExpenditure at District and sub-district levelTeacher SalaryFree Text BookInnovative ActivitiesIEDSchool Maintenance GrantManagement CostLearning Enhancement ProgrammeResearch & EvaluationSchool GrantTLETeacher TrainingCommunity TrainingOthersState LevelSIEMATManagement CostResearch and EvaluationSupervision and MonitoringOthersInterestSSANPEGELKGBVOther IncomeExcess of Expenditure over income transferred to Capital FundTOTALTOTAL

Key Gaps/Difficulties in maintenance of Prescribed Books & Accounts as well as steps to bring improvements in this activityKey Gaps/ Difficulties

Sufficient number of accounts personnel are not available at each levelAll the prescribed books of accounts could not be maintained at each level due to insufficient accounts personnelThere is no accounts personnel at CLRC Most of the VEC/WEC personnel are from non finance backgroundAll the personnel involved in the implementation of SSA program are not trained in the area of accounts and financeAccounts in the PBSSM at all level has not been computerized

Steps to bring Improvements

Rationalization of man-power requirement should be done on the basis of present volume of approved outlayMaintenance of unnecessary books of accounts or less important books of accounts should be avoided All the CLRCs should have an accountant to improve the quality of accounts.All the persons involved in the finance & accounts should be provided proper training A customized accounting package supported by MIS system should be developed & all the levels should be brought under that fold.

Remarks : The proformas prescribed in FM&P Manual for consolidated Balance Sheet and The Income & Expenditure Account are seems to be not as per standard accounting principal and in West Bengal these profrmas are not used for preparation of Annual Accounts and it is prepared in the proformas shown earlier.

THANKS