Annual Report -2010 - Sri Lanka · 2015-01-01 · National Institute of Co -operative Development ANNUAL REPORT - 2010 6 Vision Stepping into a self motivated, independent, and stable

National Institute of Co -operative Development ANNUAL REPORT - 2010

1

Annual Report -2010

National Institute of Co-operative Development

Polgolla


2

Contents

Page

Introduction 01

The Chairman’s Message 02

Director General’s Message 03

Vision, Mission 04

Our Values 05

The Aims and the Goals of the Institute 06 - 07

Board of Management 08 - 10

Board of Studies 11 - 13

Staff 14

Financial Progress 15 - 16

Details of Educational Activities 17 - 26

Special Activities Performed During Year 2010 27 - 29

Divisions supporting the NICD, their activities and facilities provided to the

Success of the Institution 30 - 33

Annual Accounts 34 - 46

Notes to the Accounts as at 31ST December 2010 47 - 49

Report of the Auditor General on the Financial Statements 50 - 58


3

Introduction

The Sri Lanka Cooperative School was established as the National Institute of Co-operative

Development (NICD) with the intention of moving away from the traditional co-operative education

system that prevailed and to develop a new co-operative education system with new strategies and

methodologies enabling to face globalization.

With the intention of enabling the co-operative system and the co-operative education to face

globalization and also work as an independent organization without much state bondages, the

National Institute of Co-operative Development was established and incorporated under act no. 01

2001 on 01st July 2001.

A Board of Management consisting of representatives from important Ministries and eminent

personnel selected from the state and the private sector were appointed to manage the organization.

The goal of the newly established Institution is to develop skills through vocational training applying

local & international level educational & training strategies. The educational environment and ample

space that the Institution possesses is a major factor that enables to achieve the expected goals.

During the year under review, the institute has carried out a number of Diploma level, Certificate

Level and short term subject oriented training programmes for the benefit of co-operative and the state

sector officials.


4

The Chairman’s Message

I take great pride & pleasure in sending this message to the annual report 2010 of the

National Institute of Co-operative Development that has taken the leader ship and the

responsibility in the development of human resources in the co-operative movement.

It was a unique feat that it was possible to conduct several programmes to support the

rejuanation of the co-operative movement under the 2010 ‘Mahinda Chinthana’ concept.

In comparison to year 2009, our institution has been able to increase the programme income

by 73%, number of programmes by 44% and the number of participants by 51% which I

consider a considerable achievement.

In addition to our mandate, we have taken a step further by opening model Co-op City Super

markets and provide training to island wide Co-op City and Mini Co-op City staff.

I also see it as a privilege to have been associated with the construction work on the largest

auditorium in the Central Province that the National Institute of Co-operative Development

intend to gift to the nation.

Several special welfare programmes were organized for the development of the physical

resources as well as human resources of the institute. I wish to commend the Director

General and the members of the staff for their commitment and hard work in making these

events successful.

I take this opportunity to wish the institute that their efforts to develop the co-operative

movement in leading the nation to be the ‘Miracle of Asia’, could be achieved.

Lakmal Ratnayake

Chairman

NICD - Polgolla


5

Director General’s Message

With the objective of developing the human resources and the capacity of the co-operative

movement of Sri Lanka, the Sri Lanka Co-operative School was incorporated under the

Parliament Act No. 01 of 2001 under the name National Institute of Co-operative

Development.

The National Institute of Co-operative Development is currently working towards producing

a human resource component rich in management skills and new technology bringing in a

new vision to the co-operative movement. With the expansion of the computer laboratory

within the new building complex, we were able to develop the physical resources of the

Institute.

The Institute was able to contribute to the growth of the co-operative movement by having

close links with all stakeholders of the movement and was able to organize and conduct

programmes targeted directly to the needs of the co-operative movement.

I wish to convey my sincere thanks and appreciation to all those who contributed in different

ways towards achieving the goals of the institution.

Gamini Rajarathna

Director General


Polgolla


6

Vision

Stepping into a self motivated, independent, and stable co-operative

entrepreneurship in Sri Lanka, by year 2015.

Mission

To build up a stable and independent co-operative entrepreneurship in Sri Lanka

we will work with our beloved contributors, staff members and co-operators, in

unity and team wise, facilitating in educational, training guidance and

experimenting and developing with modern and creative shedule.


7

OUR VALUES

OUR FIVE

SIDED VALUES

Aim at the customer

Our consumer is the co-

operative community. so

we always expect to

treat them equally with

honor and

understanding, without

any discrimination of

status or their standard.

Creativity and innovation

Let’s understand the necessity of

developing the co-operative

enterprise in a creative and

innovative manner. For this our

vision is to introduce new

programmes and modern

approaches through which we

hope to reveal and bring the

movement’s motive to a better

performance.

Activeness with Unity

Our aim is to spread among

the consumers, in every

section, preserving the

qualitative values, to the

best of our ability,

according to the taste of the

consumers.

Value of the staff

Our expectation by

creating a suitable

working environment,

performance and the

staff motivational

factors thorough higher

performance in the

institution and award

the value of our staff.

To disperse a

qualitative level of

service

We confirm all the

higher values of our

services and their

distinguish quality.


8

The Aims and the Goals of the Institute

1. Effective development of the human capital involved in the co-operative movement of Sri Lanka

01. Organising discussions, workshops, seminars and field visits to for the advancement of

management level professionals of the co-operative organizations

02. Organising discussions, workshops, seminars and field visits to enhance the knowledge,

skills, and attitudes of middle-managers.

03. Organising workshops and training programs to develop knowledge, skills, capabilities

and attitudes of operations level managers.

04. Enhancing knowledge, skills and capabilities of co-operative officers of the State Sector.

05. Using distant education systems.

2. Contributing to bring the efficiency of the co-operative organizations to a higher level.

06. Brining the efficiency and the quality of co-operative organizations to a higher level.

07. Introducing and carrying out consultancies.

08. Holding at least two ‘business clinics’ per year according to requests made by the weak

organizations and helping those organizations to overcome those weaknesses.

3. Carry out research and development activities for expansion and revival of the co-operative

movement.

09. Researching in to the instances of successes and failures of the co-operative movement

and based on findings providing guidance for the benefit of the co-operative movement.

10. Producing and obtaining documentaries about the success stories of the co-operative

movement.

11. Contributing to the creation of model co-operative enterprises and empowering and

organizing women within the co-operative concept.

4. Acting as a centre development of co-operatives

12. Creating and maintaining and information database and a website that covers the entire

co-operative sector.

13. Maintaining a fully equipped library that provides knowledge in all the fields related to

the co-operative sector.

14. Setting up a Co-operative Museum

5. Empowering the civil society to establish and expand the co-operative movement.

15. Taking steps to inculcate the co-operative philosophy and practices in the civil society.

16. Launching a educational supplementary and other publications about the co-operative

movement.

6. Forming a network with local and international co-operative organizations.

17. Developing a network with co-operative organizations at the apex of the national co-

operative movement.


9

18. Securing the membership of the international Co-operative movement and reaping the

benefits by expanding the network.

19. Developing a network with other relevant co-operative institutes of the world.

7. Diversifying the services of the National Co-operative Development Institute to provide facilities

for the Sate Sector, Private Sector and other Non-governmental Organisations.

20. Identifying and conducting programs to cater to the needs of the Private Sector.

21. Identifying the products needed by the State Sector and initiating them.

22. Identifying the products needed by the Non-government Sector and initiating them.

8. Increasing the performance of the Institute of Co-operative Development to provide an excellent

service to the co-operative sector.

23. Developing the knowledge, skills and attitudes of the staff

24. Developing the management processors

25. Raising the quality of services provided for other external institutions.

Main Activities of the Institute

a). Acting as a centre for the promotion and coordination of activities related to he co-

operative development.

b). Among other things, making use of modern techniques in providing training on co-


c). Promoting research on co-operative development.

d). Facilitating sharing of information among the people involved in activities related to co-


e). Functioning as a resource centre for the collection of data pertaining to co-operative

development and dissemination of collected data through publications.

f). Conducting academic training programs on subjects related to co-operative development

and presenting certificates and other awards of excellence to those who follow such

programs and successfully get through the relevant examinations.

g). Taking over and managing the co-operative enterprises which are in need of management

skills.

h). Providing professional advice for co-operative enterprises.

i). Setting up model co-operative villages, model co-operative outlets and regional centres.

j). Collaborate with other institutions which accomplish tasks similar those being carried out

by the institute.


10

Board of Management

The Board of Management of the Institute must consist of the following members

(a) Ex - officio Members

i. The person for the time being holding office as Secretary to the Ministry of the Minister

in charge of the subject of Co-operative Development or his nominee;

ii. The Commissioner of Co-operative Development of the Department of Co-operative

Development;

iii. The Chairman of the National Co-operative Council of Sri Lanka;

iv. The Director General of the institute appointed under the section16

(b) Members appointed by the Hon. Minister (a member so appointed is hereiífter referred to as

and “appointed member”)

i. Three persons who have had a wide experience in the field of co-operatives and

experience in management, nominated by the Minister in charge of the subject of Co-

operative Development;

ii. A representative of the Minister of Higher Education, nominated by the Secretary to the

Ministry of the Minister in charge of that subject; and

iii. A representative of the General –Treasury, nominated by the Secretary to the Ministry of

the Minister in charge of the subject of Finance.

The Board of Management is responsible for administration, management and control of the affairs of

the institute.

The Board of Management must also execute the powers vested by the Act upon the institute for the

administrative purposes of the institute.

In addition, directing the resources of the institute to achieve the aims and objectives of the institute

while evaluating and approving annual development plans, annual budgets, policy planning,

supervision and scheduled evaluation of the performance of the institute, analysis and evaluation of

quarterly, mid-year and annual financial reports and Auditor General’s reports and if the

achievements do not match the expected targets, taking the necessary remedial action to reach the

expected targets are other responsibilities of the Board of Management.


11

During the year under review the management and the administration of the Institute was the

responsibility of the Board of Management which included the following members.

1. Mr. P. G. Dassanayake, Chairman - upto 13.05.2010

2. Mr. A.M.A.A. Lakmal Rathnayake, Chairman - w.e.f. 10.07.2010

3. Mr. Gamini Rajarathna, Director General, National Institute of Co-operative

Development (Sri Lanka Administrative Service)

4. Mr. S. Edirisooriya, Additional Secretary, Ministry of Co-operative and internal trade

5. Mr. A. P. P. Kithsiri, Commissioner of Co-operative Development

6. Ms. M.T.I.V. Amarasekara, Asst. Derector, Dept. of Public Enterprises General Treasury

upto 13.05.2010

7. Mr. Nimal Mithtrarathna, Addl. Director General, Dept. of Development Finance

Treasury upto 13.10.2010

8. Mr. Bandupala Ranawaka, Chairman, Sri Lanka National Co-operative Council.

9. Mr. M.I.M.Rafeek, Economist, Dept. of Agriculture upto 13.10.2010

10. Mrs. D.D. Nandasiri, Education Director, Ministry of Education.

11. Ms. H.M.M.A. Caldera, Additional Director Ministry Higher Education

12. Mr. K.M.M. Zakir,

13. Mr. R. M. Premathilake Rathnayake.

14 Mr. W.M.W. Abeyratna Bandara, Working Director, Gem & Jewelery Education &

Research Institute

15. Mrs. S.P. Jayathunge, Additional Secretery (Cooperative) my of cooperative internal

trade

The quorum for a meeting of the Board of management shall be five members and

meetings shall be held once at every three months.

Four Board of Management Meetings were held duing the respective year as follows.


12

Details of the Board of Management Meetings held during the year - 2010

Name Dates of meeting held

2010'03'05 2010'07'30 2010'10'18 2010'12'03

1. Mr. P. G. Dassanayake, Chairman - - -

2. Mr. A.M.A.A. Lakmal Rathnayake, Chairman -

3. Mr. Gamini Rajarathna, Director General

4. Mr. A. P. P. Kithsiri ab

5. Mr. S. Edirisooriya - - -

6. Mr. Bandupala Ranawaka ab ab

7. Ms. M.T.I.V. Amarasekara - - -

8. Mr. D.D. Nandasiri - - -

9. Mr. W.M.W. Abeyratna Bandara ab - - -

10. Mr. M.I.M.Rafeek - - -

11. Ms. S.P.Jayathunge - ab

12. Mr. Nimal Mithtrarathna - ab

13. Mr. K.M.M. Zakir -

14. Mr. R. M. Premathilake Rathnayake -

15. Ms. H.M.M.A. Caldera - - - ab

16. Ms. Wasantha Illanganthilake - Secretary to the Management Bord

- Attamdamce

ab - Absent

- - Position Vacant


13

Board of Studies

The Board of Studies of the Institute shall consist of the following members appointed by the Board

of Management.

a) The Director-General of the Institute who shall be the Chairman of the Board of Studies;

b) A representative of the academic staff of any University nominated by the University Grants

Commission established by the Universities Act, No. 16 of 1978;

c) The Commissioner-General of Examinations or his representative;

d) A representative nominated by the Commissioners of Co-operative Development; and

e) A person employed in the Co-operative sector or private sector, who in the opinion of the

Minister has wide wxperience in Management and Training.

The Board of Studies of the Institute shall consist of the following members appointed by the Board

of Management.

1. Mr. Gamini Rajaratne - Chairman,

Director General


2. Professor Sudantha Ranasinghe - Member, Head of the Division Academy of

Human Socio Open University, Nawala

Nugegoda.

3. Mr. Pasan Rathnayake - Member, Commissioner of Co-operative Development.

(Central Province) Ehalapola Kumarihamy Mawathe,

Bogambara, Kandy.

4. Mr. Anura Edirisinghe - Member, Commissioner General of Examinations,

Sri Lanka, Dept. of Examination

Palawatha, Battaramulla.

5. Dr.P.H.D. Aluvihare - Member, Senior Lectres, Sri Lanka Open University

Center Kandy Division Polgolla.

6. Mr. W.A.R. Wimalasiri - Secretay, Registrar


Polgolla.


14

Functions of the Board of Studies

a) Preparation of training & research activities of the Institute.

b) Development of curriculam for the courses conducted at the Institute.

c) Evaluate, administrate and investigate the examinations held by the institution and prepare

suitable methods to evaluate them.

d) Issue the results of the examinations conducted by the institution, under the approval of the

examination board.

e) Lay relevant conditions to grant donations for scholarship official badge and other donations.

During the year under review two Study Board meetings have been held on 30.08.2010 and

15.10.2010 to release the results of examinations of which details are as given below.

a' The Study Board meeting held on the 30.08. 2010

Courses N

um

ber

sat

for

the

Exam

Pass

Ref

erre

d

Fail

Nom

ber

let

t

/post

pon

e

1' Diploma in Auditing ^2008$2009& 19 19 - - -

2' Diploma in Accounting ^2008$2009& 24 06 12 04 02

3' Diploma in Social Development ^2009$2010& 21 17 02 - 02

4' Higher Diploma in Micor Finance ^2007$2008& 28 11 03 04 10

5' Higher Diploma in Human Resource Management ^2008$2009& 18 13 04 - 01

6' Certificate in Micor Finance 34 13 08 05 08

7' Certificate in English Language 2009$2010 08 08 - - -

Repeat exams 8' Diploma in Co-operative Development ^1992$1993&

01

01

-

-

-

9' Diploma in Co-operative Development ^2004$2005& 01 01 - - -



12' Higher Diploma in Co-operative Development ^2006$2007& 01 01 - - -

13' Higher Diploma in Banking Management ^2007$2008& 08 08 - - -

14' Higher Diploma in Banking Management ^2006$2007& 01 01 - - -

15' Higher Diploma in Accounting ^2007$2008& 01 - 01 - -

16' Higher Diploma in Accounting ^2006$2007& 02 01 01 - -

17' Higher Diploma in Auditing ^2006$2007& 04 02 02 - -

18' Higher Diploma in Information Technology ^2006$2007& 02 01 01 - -

19' Higher Diploma in Information Technology ^2007& 08 05 03 - -

20' Higher Diploma in Information Technology ^2007- ii& 07 05 01 01 -

21' Certificate in Banking & Finance ^2007$2008& 01 01 - - -

22' Certificate in Computer ^2008& 05 04 01 - -

Total 197 121 39 14 23


15

b' The Study Board meeting held on the 15.10.2010

Courses

Nu

mb

er s

at

for

the

Exam

Pass

Ref

erre

d

Fail

posp

on

d

the

exam

Nom

ber

lett

/

post

pon

e

1' Higher Diploma in Business Administration ^2008$2009& 13 11 - - - 02

2' Higher Diploma in Diploma in Banking Management ^2008$2009& 26 20 03 - - 03

3' Higher Diploma in Information Technology ^2009$2010& 40 14 04 02 03 17

4' Certificate in Co-operative Development ^2007$2008& 44 37 04 01 02 -

5' Certificate in Co-operative Development 2009 49 41 07 01 - -

6' Certificate in Computer 2010 33 08 15 01 - 09

Repeat exams 7' Diploma in Co-operative Development ^2005$2006&

09 09 - - - -

8' Diploma in Co-operative Development ^2006$2007& 05 05 - - - -

9' Higher Diploma in Micro Finance - 2007 01 01 - - - -

10' Higher Diploma in Information Technology - 2007 01 01 - - - -

11' Certificate in Co-operative Development - 2010 01 01 - - - -

Total 222 148 33 05 05 31


16

Staff

The total number of staff allocated to the Institute is 59. The number of staff as at 31st

December 2010 is 38. The number of vacancies is 21. Preliminary steps are being taken to

fill these vacancies.

Details of staff designations and number of staff as at 31st December 2010

No Post Number

of Poste

Officials

present Vacancies

1. Director General 01 01 -

2. Registrar 01 01 -

3. Director - Academic and Development 01 - 01

4. Lecturer 06 05 01

5. Librarian 01 01 -

6. Senior Finance Manager 01 01 -

7. Senior Press Manager 01 - 01

8. Hostel Manager 01 01 -

9. Assistant Registrar 01 - 01

10. Extension Officer 01 - 01

11. Computer Programmer 01 01 -

12. Assistant Lecturer 06 03 03

13. Assistant Hostel Manager 01 01 -

14. Assistant Librarian 01 01 -

15. Management Service Assistant (Graduate) 12 07 05

16. Computer Instructor 03 01 02

17. Computer Word Processor 01 01 -

18. Management Service Assistant 05 01 04

19. Offiset Machine Operator 01 01 -

20. Audio Visual Machine Operator 01 01 -

21. Circuit Bungalow Keeper 01 01 -

22. Driver 04 04 -

23. Service Assistant 07 05 02

Totel 59 38 21


17

Financial Progress

Consist export of Income, Expenditure and Treasury Funds for the last 4 years are

given below:

Income for year (2007-2010)

Details 2007 2008 2009 2010

1. Course Fees 7,457,997 5,999,038 5,594,102 8,320,364

2. Fee for rooms , Lecture Halls & Quarters 3,957,200 6,390,476 6,130,260 6,543,381

3. Service Charges 793,779 1,730,750 1,158,914 -

4. Commission On Food Supply 610,177 1,284,315 972,492 805,864

5. Printing & Sale of Publications 84,052 155,285 387,932 395,727

6. Other Income

I. Registration fees for Performance Award

Ceremony

- - - 1,225,600

II. Sale of fixed Assets - - - 1,144,039

III. Miscellaneous Income 1,507,334 1,692,359 1,607,621 2,209,656

Total 14,410,539 17,252,223 15,851,319 20,644,631

The income of the NICD for the year 2010 is Rupees 20.64 million and the income for each division

is given below

0

2000000

4000000

6000000

8000000

10000000

2007 2008 2009 2010

Inco

me

Year

Income for 2007 - 2010

Course fees

Hostel,Lecture Halls& Quarters

Service Charges

Commissions on supply of food

Printing & sale of publications

Miscellaneous income

40%

36%

2%

22%

Income

Education Hostel Printing Other


18

Expenditure for the Year (2007 – 2010)

Details 2007 2008 2009 2010

1. Salaries & Wages, Lecture Fees & other expenses 16,365,336 17,535,359 18,445,338 19,512,564

2. Travelling Expences 617,452 542,174 623,357 753,427

3. Supplies & Office Requirements 3,843,495 3,775,773 2,896,742 3,902,331

4. Maintenance 1,452,350 1,838,114 1,686,323 2,405,953

5. Contractual Services 6,094,609 8,130,603 8,969,645 9,206,898

6. Other 708,115 622,995 1,513,243 -

a) Expenditure for Performance Award Ceremony - - - 2,458,531

b) Nation Building Tax - - - 829,082

c) Miscellaneous expenditure - - - 967,970

Total Expenditure 29,081,357 32,445,018 34,134,648 40,036,756

Funds Received from the Treasury for the Period of 2007 – 2010

Details 2007

Rs.

2008

Rs.

2009

Rs.

2010

Rs.

Capital grant 37,160,000 19,500,000 49,400,000 70,200,000

Recurrent grant 13,135,738 19,680,000 21,470,211 22,390,000

0

5000000

10000000

15000000

20000000

25000000

2007 2008 2009 2010

Exp

en

dit

ure

Year

Expenditure 2007 – 2010

Salaries & Wages, Lecture fees &

Other expenses

Travelling expences

Supplies & Office Requirements

Maintenance

Contractual Services

Other


19

Details of Educational Activities

Progress of Education Programms organized by the Institute (2007 – 2010)

Programme

2007 2008 2009 2010

No. of

programmes Participants

No. of


No. of


No. of


Diploma 08 142 07 124 02 55 08 142

Certificate Course

04 90 03 103 04 124 05 156

Short Term 51 1756 36 1051 37 1331 64 2738

Total 63 1988 46 1278 43 1510 77 3064

When compared with the past years, the year under review shows an increase in the Diploma,

Certificate Course and short term programmes organized by the Institute. The main reason

for this progress is due to the proper identification of the needs of the cooperative movement

and designing the programmes according to the needs.

8 7

2

8 4 3 4 5

51

36 37

64

0

10

20

30

40

50

60

70

2007 2008 2009 2010

No

of

Co

urs

e

Year

Progress of Programs organized by the Institute 2007 – 2010

Diplima

Certificate

Sort Term


20

Programmes organized on the requests made by External Organizations

(2007 - 2010)

Year 2007 2008 2009 2010

No. of programmes conducted 377 368 329 255

No. of total participants 20,925 21,439 16,715 19,852

As a result of developing the physical resources and making reforms in management

practices, an appreciable increase could be seen in external organizations seeking more and

more training facilities of the Institute.

1. Human Resource Development

The main activity of our Institute is to develop the human resources of the co-operative

movement. Targeting this activity, a significant number of Diploma level, Certificate level

and subject related short term training progrmmes were organized for the benefit of the co-

operative movement and goverment officers.

1.1 Training of staff of the Co-operative Development Department

a) Higher Diploma in Co-operative Development

The Institute has carried out the Diploma Course training programmes which is considered

efficiency Bar Examination for the new Co-operative Development officers recruited by the

Department of Co-operatives from 2007 to 2008.

Summary of these programmes are as follows:

Year No. of

Programmes

Total no. of

participants

2007 01 41

2008 01 09

b) Certificate Course in Co-operative Development

This programme has been designed to fulfill the requirements of the first Efficiency Bar

Examination of newly recruited Cooperative Development Officers. Fifty One new officers

recruited by the Sabaragamuwa and Northern Provincial Departments of Co-operative


21

Development commenced their training on 01st November 2010 and completed the first term

on 16th

March 2011.

In addition, 47 Cooperative Development Officers recruited by Southern & Eastern

Departments of Cooperative Development joined one year programme on 07th

September

2009 and by 30th

September 2010. They have completed their training and relevant

examinations.

Details are given below.

Training Course Date of

Commencement

Date

Completed/to

be Completed

No. of

Participants

1. Certificate course in Cooperative Development –

(Sabaragamuwa & Northern Province) 2010.11.01 2012.04.06 51

2. Certificate course in Cooperative Development – (Central, Southern & Eastern Province)

2009.09.07 2010.09.30 47

Total 98

Following is a summary of the number of Certificate Course programmes conducted by our

Institute and the number of participants attended.

Year

Programme details

No. of Programmes Total number participated

2007 01 41

2008 No programmes were conducted

2009 02 95

2010 01 51

1.2 Diploma Programme in Cooperative Development

During the year under review, 08 Diploma level programmes were conducted to enhance the

knowledge and skills of Cooperative employees. One program out of them commenced in

2009 and was completed in 2010. Seven programmes commenced in 2010. Details of the

programmes are given below.


22

0

20

40

60

80

100

120

140

2007 2008 2009 2010

Year

Number of participants of the Diploma programmes conducted by the Institute from

2007 to 2010

No.o

f p

arti

cip

an

ts

Training Course Commencing

Date

Date

completed/to be

completed

No.

participated

1. Diploma Course in Auditing 2010/1011 2010. 11.04 2011. 10.30 15

2. Diploma in Banking 2010/2011 2010. 05.17 2011.04.30 27

3. Diploma in Business Management 2010/2011 2010. 08.14 2011. 05.30 15

4. Diploma in Human Resource Management

2010/2011 2010. 06.07 2011. 05.30 16

5. Diploma in Social Development 2009/20010 2009. 01.19 2010. 01.19 19

6. Diploma in Social Development 2009/20010 2010. 05.09 2011. 06.30 17

7. Diploma in Micro Financing 2010.2011 2010. 02.25 2011. 01.30 08

8. Diploma in Accounting 2010/2011 2010. 02.25 2011. 01.30 21

Total

138

Summary of the number of programmes and the number of participants of the Diploma

programmes conducted by the Institute from 2007 to 2010

Year Details

No. of Programmes No. of Participants

2007 04 85

2008 05 93

2009 01 21

2010 07 119


23

1.3 Certificate Course

This Certificate Course can be considered as a foundation for the Skills Development of the

management level staff of the Cooperative Societies. During the year under review 03

Certificate level programmes were held. One program out of them commenced in 2009 and

completed in 2010 and the other two programmes were commenced in 2010. Seventy One

participants followed these programmes

Details Date of

Commencement

No.

participated

1. Bank Management Certificate Course 2009.09.05 22

2. Management and skills Development Course 2010.01.22 25

3. Job oriented vocational Certificate Course 2010.06.19 24

Total 71

A summary of the number of Certificate Course conducted by the Institute and the number of

participants are given below:

Year Details


2007 02 26

2008 01 27

2009 01 22

2010 02 49

0

10

20

30

40

50

60

2007 2008 2009 2010

No

. o

f P

art

icip

an

ts

Year

Participation of Certificate Courses conducted by the institute during the peried of 2007-2010


24

1.4 Subject Related Short Term Management Training Programmes

Annually the Institute conducts a number of short term programmes targeting the leaders of

cooperative societies, workers and staff affiliated to the Cooperative Departments and other

Cooperative leaders with the objective of developing their managerial and work related skills.

The Institute not only conducts programmes designed by us but develop new programmes on

the requests and the needs of different co-operative organizations. A summary of

programmes conducted are given below.

Year Details


2007 53 1756

2008 36 1051

2009 37 1331

2010 64 2738

Short Term Management Training Programmes organized by the Institute

Name of Course Date of

Commencement

No. of

Participants

1. Management skills development programme 2010.04.24 29

2. Secretarial Training Programme 2010. 06.11 16

3. Programmes in Women’s participation in Cooperate

Development 2010. 07.17 20

4. International Training programme in identifying

strategies in Managing the Cooperative movement within the Global environment

2010.03.14 - 20 24

5. Capacity Building of Trainers 2010.10.12 - 15 27

6. Clerical training of Rural Bank employees 2010.12.10 - 12 40

Total 156

0

1000

2000

3000

2007 2008 2009 2010 No

.of p

art

icip

an

ts

year

Participation of Short Term courses 2007 - 2010


25

Training programmes conducted free of charge and at subsidized rates for

the benefit of the Cooperative Sector

During the year under review, 24 short term management skills development training

programmes were conducted at subsidized rates with the objective of developing the

managerial skills of staff members of cooperative sector organizations. Financial assistance

for these programmes were obtained from the Co-operative fund of the Peoples Bank and the

Government Consolidated fund.

Courses conducted with financial assistance from the Peoples Bank:

Course Name Date

commenced

No of

Trainees

1. Programme on Role Develiopment of Regional Managers (Hiriyala Multi

Purpose Cooperative Society 2010.05.15 41

2. Role Development of Managers 2010.02.27 45

3. Awareness Training of Managers of Multi Purpose Co-operative Societies 2010.03.14 34

4. Workshop in analyzing the current status and proposing ideas for the

development of the Co-operative movement 2010.03.14 16

5. Role Development of Managers (Katugampola & Sandalankawa Multi

Purpose Co-operative Societies) 2010.05.18 14

6. Maintaining Personal Files in the Multi Purpose Co-operative Societies 2010.05.19 30

7. Rules & Regulations pertaining to the Development of Co-operatives 2010.06.23 38

8. Identifying Training Needs of the Co-operative Sector 2010.09.17 – 18 27

9. Training of staff of Super Markets in the Central Province 2010.09.14 – 15 27

10. Value based Co-operative Management Training Programme 2010.10.07 – 08 28

11. Training Course for Senior Audit Officers of the Cooperative Department

in the Development of Audit systems 2010.11.06 – 07 67

12. Credit Management of established Financial Institutions 2010.11.13 - 14 48

13. Workshop for Development of Educational Programmes for NICD 2010.10.15 - 16 22

14. Skills Development for General Managers of Co-operative Societies 2010.11.10 – 11 38

15. Skills Development training for General Managers of Sabaragamuwa, Uva

and Wayamba Province co-operative societies 2010.11.29 -30 37

16. Project Management Programme 2010.12.04 – 06 40

17. Skills Development programme for General Managers of Western &

Southern Province Co-operative Societies 2010.12.21 -22 41

18. Project Management Programme 2010.12.18 - 19 48

Total 641


26

Courses conducted with Financial Assistance from the Treasury

Course Name Date

Commenced

No. of

Trainees

1. Short Term Computer Training for General Managers of co-op societies

2010.12.12 – 13 26

2. Training of Co-op City staff 2010.12.12 - 13 31

3. Training of Co-op City staff 2010.12.16 – 17 63

4. Training of Co-op City staff 2010.12.18 – 19 38



Total 233

Training Programmes conducted for External requests made

Course Name Date

Commenced

No. of

Trainees

1. Training of Mulatiyana Regional Primary SANASA Societies 2010.07.10-11 48

2. Training of Sabaragamuwa provincial Dept. of Co-op Development

staff on their role to provide quality state service 2010.07.16 88

3. Strategic Planning - Development Officers and MPCS officers of

Central Province 2010.08.12-13 76

4. Training of staff of Rural Bank – Beralapanathara MPCS 2010.07.17-18 37

5. Training of SANASA Managers – Matara District Co-op Society 2010.08.07-08 44

6. Two Day programme – Development Officers, Central Province & MPCS staff on Strategic Planning for 5 years

2010.08.21.22 70

7. Business Skills Development programme – Chairmans of Co-

operative Societies 2010.09.11-12 34

8. Computer Training – Land Commissioner’s Department, Central

Province 2010.08.20 15

9. Leadership & Personality Development training conducted by Ministry of Industries, Central Province – Dambulla Provincial

Secretariat

2010.08.12 50

10. Leadership & Personality Development training conducted by

Ministry of Industries, Central Province – Matale Provincial

Secretariat

2010.08.30-31 56

11. Leadership & Personality Development training conducted by

Ministry of Industries, Central Province – Ganga Ihala Korale

Secretariat

2010.09.15-16 28

12. Leadership & Personality Development.training conducted by

Ministry of Industries, Central Province – Uda Palatha Regional

Secretariat

2010.09.28 28

13. Two Day Training of Role Development of staff of Ratnapura

District capital Co-opeative Bank Socities Ltd. 2010.09.25-26 73

14. Training Workshop on Roll Development – Directors of Central

Province MPCSs 2010.09.19-20 38


27

15. Training Workshop on Role Development – Directors of Central

Province MPCSs 2010.09.21-22 36

16. Sales & Consumer Relations Training Workshop – Kehelella

MPCS 2010.09.29 55

17 Strategic Planning workshop – Harispattuwa co-op Society Staff 2010.10.09-10 57

18 Training Workshop on Role Development – Staff Pujapitiya Co-op

Society 2010.10.10 49

19 Strategic Planning workshop – Hanguranketha co-op Society Staff 2010.10.19 28

20 Strategic Planning workshop – Walapane co-op Society Staff 2010.10.22 26

21 Training Workshop on Role Development – Co-operative

Development Officers 2010.10.28-30 163

22 Computer Training – Staff, Central Province Land

Commissioner’s Department 2010.09.24-11.08 15

23 Introductory Psychological process to Co-operative workers 2010.10.07-08 32

24 Introduction to Job Management – Matara District Co-operative

Council 2010.11.13-14 38

25 Training Workshop on Roll Development – Central Province Co-

operative Development Department staff 2010.11.18-19 36

26 Manpower Assessment Training Programme 2010.11.27-28 19

27 Micro Financing – Short term course 2010.11.27.28 18

28 Management Skills Development workshop –Matara SANASA

Officers 2010.11.9-21 55

29 Leadership Skills Training – Matara SANASA Officers 2010.12.04 37

30 Personality Leadership Training – Conducted by Ministry of

Industries, Central Province – Staff, Hataraliyadda Secretariat 2010.10.25 - 26 37


Industries, Central Province – Staff, Deltota Secretariat 2010.11.08-09 43


Industries, Central Province – Staff, Kotmale Secretariat 2010.12.09 - 10 40

33 Psychological Approach for Co-operative employees (NCC)

Matara) 2010.11.26-12.01-09 205

34 Manpower assessment training program – Co-operative

Development Officers,

Central Province

2010.12.04 34

Total 1708


28

Other Diploma Courses and Certificate Courses

These Diploma and Certificate courses were conducted to develop the Computer Skills, Information

Technology skills & English Language skills of job seekers and government employees.

1. Diploma Course in Information technology

This programme has been designed targeting the school leavers who are awaiting employment to

improve their knowledge in Information Technology. This is a six month full time Diploma Course.

One Diploma programme was started in the year under review and has been completed. A similar

programme started in 2009 was also completed this year. Details are given below.

Course Name Date

Commenced

Date

completed/to

be completed

Number of

Trainees

1. Information Technology Diploma 2009/2010 2009.09.15 2010.05.15 21

2. Information Technology Diploma 2010/2011 2010.09.15 2011.05.15 23

Total 44

2. Computer Certificate Course

This programme has been designed to develop the Computer skills of students sitting the GCE O/L

examination. During the year under review one programme was started 2010.01.05 and was

completed on 30th March 2010. 30 students were trained in this programme.

3. English Language Certificate Course

Two English Language Certificate Courses were conducted during the year targeting school leavers

and employes. One programme was started in 2009 and completed in 2010 and the other was started

in the year under review and completed in 2011. Details are given below:

Course Name Date

Commenced

Number of

Trainees

1. Certificate Course in English Language 2009.09.15 08

2. Certificate Course in English for profisionals 2010.07.11 25

Total 33


29

Special Activities Performed During Year 2010

PERFORMANCE COMPETITION

An Island wide competition was held for the first time among the several Co-operative organizations

to assess their performance in 2007/2008 which would be benificial for the growth of the co-operative

movement.

The following co-operative organizations participated in this competition:

Multi Purpose Co-operative Societies

Financial Services Co-operative Societies

Service Co-operative Societies

Production Co-operative Societies

Agriculture & Livestock Co-operative Societies

School Co-operative Societies

The competition was held separately for the societies of each of the above categories and the winners

were awarded gold, silver and bronze trophies and certificates in 2009.

About a year after this competition was held, the second competition was organized in 2010 on

requests made by the leaders, workers members and several co-operative organizations. The second

competition was held under 3 categories.

1. Primary Level Co-operative socities

i. Multi Purpose Co-operative sector

ii. Financial Services Co-operative sector

iii. Production & Industrial Co-operative sector

iv. Agriculture Co-operative sector

v. Service Co-operative sector

vi. School Co-operative sector

2. Secondary Level Co-operative Organizations

i. District & Provincial Financial Service Organizations

ii. Other District & Provincial Co-operative Organizations

3. Co-operative Institutions registered under the Central Government


30

Organization process of the competitions

1. One officer representing each province was nominated and trained to serve in the panel of

judges

2. Awareness programmes were conducted on the competition criteria for the heads of all

provincial co-operative societies who submitted applications.

3. Evaluations of the competition were made under 3 levels.

a) Primary Societies adjudged by a panel of judges selected from the provinces.

b) Secondary & Top Level Societies adjudged by a panel of judges selected at the National

Level

c) A second judgment if necessary to be done by a National Level Committee.

The National Level Committee for this competition consisted the following:

i. Representative on behalf of the Ministry Secretary of the Ministry of Co-operatives &

Internal Trade

ii. Commissioner and Registrar of Co-operatives (Central Government)

iii. Director General, National Institute of Co-operative Development

iv. Deputy Chief Secretary (Admin), Central Province and the Past Director General of the


v. Representative of the National Co-operative council Sri Lanka.

The awards ceremony for the second Performance Competition in year 2010 was held from

2011.06.28 to 2011.07.02 at the Kurunegala, Welagedara Stadium in conjunction with the

commemoration ceremony to celebrate the International Co-operative Day with the participation of

the Honorary President of Sri Lanka.

The Honorary President of Sri Lanka presented Gold, Silver & Bronze awards to the winners at the

above ceremony. Summary of the awards presented is given below:

1. Gold Awards - 27

2. Silver Awards - 138

3. Bronze Awards - 77

Total - 242

In addition 100 co-operative organizations that scored the highest ratings (Top hundred) were

awarded 100 certificates.


31

This competition helped to improve the performance levels in the Sri Lankan co-operative movement

and motivate the co-operative organizations to perform to high standards.

Financial assistance to complete this programme successfully was provided by the Treasury Funds

and by the Peoples Bank. The Peoples Bank has granted a sum of Rs. 2,732,250/- on 2011.05.31.

This donation has given the opportunity to the Co-operative movement to compete with the national

level enterprises. Financial assistance has also been provided through the co-operative funds. The

total expenditure for these competitions is given below:

2010 expenditure - Rs. 2,618,465.02

2011 expenditure - Rs. 2,515,945.19

Total - Rs. 5,134,410.21

Opening of Co-op City as a Model Super Market

According to the ‘Mahinda Chinthana’ concept, one of the goals is to strength the co-operative

movement once again and provide all consumer goods at nominal and reasonable prices to the

consumer. In keeping with this concept a chain of co-op City shops opened island wide and as a

model, arrangements have been made to open a Super Co-op City stores. This will be managed under

the Co-op-Fed and it is planned to meet the following objectives.

I. It is intended to use this Super Market as a practical training centre for the employees of the

300 Co-op City stores and over 3000 mini Co-op City stores enabling them to face the

challenges in todays market.

II. Supply quality goods to the consumer.

III. To use this centre as a Research & Development Centre to develop the super market concept

especially to the co-operative sector.

Developing a Network among local & International Co-operative Organizations.

Under the ‘Mahinda Chintana’concept, one of the main objectives identified is to make Sri Lanka an

important Economic Centre and strengthen the international network to achieve the goals of the

‘Mahinda Chinthana’ concept. Accordingly, action was taken to strengthen the networking with

international co-operative movement to develop and improve knowledge skills of this sector.

Under this activity, several programmes have been organized in collaboration with the Malaysian co-

operative College and Vaikunmetha National Institute of co-operative Management Pune, in India and

International Co-operative Alliance.


32

Divisions supporting the NICD, their activities and facilities provided to the

Success of the Education programmes of the Institution

Hostel Division

The main responsibility of the Hostel Division is to provide all residential requirement under a safe

and a conducive environment to those who come to the NICD for training.

The hostels division consist of 05 two storied buildings and 02 three storied buildings totaling to 07

buildings capable of accommodating 230 trainees at any given time.

Common Hostel A/C Room

Pictures of the Hostels

Hostel No. of

rooms

No. of trainees that could

be accommodated

1. D - Hostel 20 40

2. E - Hostel 20 40

3. F - Hostel 20 40

4. G - Hostel 20 40

5. H - Hostel 05 18

6 A. Ratnayake Hostel(Air Conditioned) 14 26

7. New Ratnayake Hostel (Air Conditioned) 22 26

121 230

The restaurant which is managed by the hostel division supplies meals according to the needs of the

trainees and supplies food to between 100 to 300 trainees daily.


33

Library Division

The user communities of the library are the panel of Lecturers, Trainees and other NICD staff.

The total collection of the number of books available in the library is 20,745. There are a variety of

books including topics related to Co-operatives & Management, Accountancy, Social Science,

Computer and other related subjects. It also has a collection of periodicals and provides news paper

articles and other services to the readers.

Examination Division

All statutory examinations for Co-operative Inspectors Certificate Course, Diploma Course and

Diploma and Certificate courses for co-operative employees are conducted by the Examinations

Division. The releasing of results of all examinations is done with the approval of the Study Board

and the Management Board.

Audio Visual Division

The Audio Visual Division supplies all audio visual aids required for training programmes. Videos,

Over Head Projectors & Loud Speakers/microphones are also provided and all photography and video

services are also done by this division.

Education & Training Division

The main objective of the Institute is to provide education and training in the co-operative sector. To

achieve this objective, the Institute has created the following sub divisions.

1. Co-operative Development Division

2. Human Resources Development Division

3. Research & Training Division

4. Financial Management Division and Development Division

5. Business Management Development Division

6. Advisory Services Division

Each of these sub divisions comes under a Lecturer. There are 08 permanent lecturers in the

panel of lecturers and in addition the services of a panel of External Resource persons who are

competent in different sectors are also in place. With the above resources the Institute has developed

high quality lessons that are taught.


34

The Institute has 07 lecture halls that can accommodate 990 trainees where modern audio visual

techniques are used in training.

No. Hall No. of Seats

1 Vincent Subasinghe Hall 600

2 Ratnayake Hall 55

3 Rotchdale Hall 100

4 New Rotchdale Hall 80

5 B – Hall 100

6 C – 1 Hall 35

7 C – 2 Hall 20

Toatal 990

Printing Division

All printing requirements of books, magazines, records & notes etc of the Institute is done by the

Printing Division. It also undertakes the printing of material from external organizations. The

Institute possesses a fully equipped medium scale press for all printing requirements.

Press

Physical Resources and Development of Physical Resources

The National Institute of Co-operative Development has taken a number of steps to develop its

physical resources in order to keep pace with the local & International standards in training &

developing human resources. The Institute has 07 lecture halls and class rooms some of which are air

conditioned, 07 hostels for residential training, and a computer laboratory with around 80 computers.

During the year under review improvements to the physical assets of the institute were carried out.

In the year 2010, the Institute received capital funding of Rupees 70.2 million and the following

physical resources development were carried out.


35

Details Funds allocated

for year 2010

Expenditure up to 31st

Dec. 2010

1. Construction of Auditorium 108,200,000/- 38,611,000/-

2. Purchase of furniture and office equipment 2,000,000/- 1,274,044/-

Total 110,200,000/- 39,885,044/-

The construction of the multi purpose building which commenced in year 2000 had to be stopped half

way due to the non availability of sufficient funds. However, required funds were received in year

2007 and we were able to commence construction work once more and we were able to complete the

constructions by end of May 2009. A sum of Rs. 28.6 million was spent on construction. This is a 04

storied building and the ground floor has been earmarked to establish a model super market and the

other 03 floors will house 04 computer laboratories and 04 lecture halls. In addition, space has been

reserved to the Peoples Bank to open a service centre for the convenience of those who patronize the

institute.

Multipurpuse Building

The Auditorium building which is primary

construction was completed

The construction work of the auditorium which was started in year 2001 and stopped half way due to

lack of funds recommenced with the fund of Rs. 134.5 million which has been given to the Central

Engineering consultancy Bureau (CECB) in December 2009 and work is now in progress.

W. A. R. Wimalasiri

Director General


36

BALANCE SHEET AS AT 31st DECEMBER 2010

AS AT AS AT

31.12.2009 31.12.2010

NOTE Rs. Rs.

ASSETS

NON CURRENT ASSETS

Property, Plant & Equipment

02 386,798,385 436,370,603

Long Term Debts, Invest, & Deposits

03 645,000 645,000

387,443,385 437,015,603

Differed expenditure on Transformers

3,397,818 3,361,880

Less : Written off differed expenditure against income

(35,938) (84,945)

Balance differed expenditure on Transformer

3,361,880 3,276,935

CURRENT ASSETS

Short Term Investment 04 - 7,200,000

Debtors Receivables & Deposits 05 39,299,967 34,306,691

Stock 06 462,434 746,517

Cash at Bank 07 16,531,472 36,431,417

56,293,873 78,684,625

TOTAL ASSETS

447,099,138 518,977,162

EQUITY & LIABILITIES

CAPITAL & RESERVES

Capital 08 233,254,215 233,254,215

Accumulated Profit/(Loss) 09 (63,793,304) (71,645,446)

169,460,911 161,608,769

RESERVES

Capital Grant from Treasury 10 261,678,075 331,878,075

Capital Grant from Ministry 11 3, 941,392 3, 391,392

Publication Fund

- 3,417,039

265,619,467 338,686,506

NON CURRENT LIABILITIES

Provision for Gratiuty

1,205,968 1,651,612

Retention Money

4,437,786 9,030,744

5,643,753 10,682,356

CURRENT LIABILITIES

Creditors & Accrued Expences 12 6,375,007 7,999,531

Bank Over Draft

- -

6,375,007 7,999,531

TOTAL EQUITY & LIABILITIES

447,099,138 518,977,162

A.M.A.A.L. Ratnayake W.A.R Wimalasiri K.D.Anil

Chairman Director General Senior Manager(Finance)


37

INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31st DECEMBER 2010

ACTUAL ACTUAL

NOTE 2009 2010

Revenue

Rs Rs

Grant for Recurrent Expences 13

21,470,211 22,390,000

Other Income 14

15,851,319 20,644,631

37,321,530 43,034,631

LESS : EXPENDITURE

01. PERSONNEL EMOLUMENTS 15 18,445,338 19,512,564

02. TRAVELLING 16 623,357 753,427

03. SUPPLIES 17 2,896,742 3,902,331

04. MAINTENANCE 18 1,686,323 2,405,953

05. CONTRACTUAL SERVICES 19 8,969,645 9,206,898

06. OTHERS 20 1,513,243 4,255,583

07. DEPRECIATION 21 9,323,575 10,213,688

08. Written off of differed expenditure on Transformer

35,938 84,945

43,494,163

50,335,390

Surplus or (Deficit) over the income

before extraordinary items

(6,172,633) (7,300,759)

Extraordinary items (Net profit or Loss)

- -

Surplus or (Deficit) over income before tax

(6,172,633) (7,300,759)

Less: Provision for taxation

- -

Net Surplus/(Deficit) for the period

(6,172,633) (7,300,759)


38

ACTUAL ACTUAL

NOTE : 03 2009 2010

LONG TERM INVEST, DEBTORS, DEPOSITS

3201 Long term Investment - -

3203 Deposit with Electricity 645,000 645,000

645,000 645,000

NOTE : 04

SHORT TERM INVESTMENT

3401 Short term Investment - 7,200,000

- 7,200,000

NOTE : 05

DEBTORS RECEIVABLES & DEPOSITS

3501-3512 Course fee receivable (Schedule : 5A) 1,390,597 2,054,180

3504 Receivable on Programme Fee-Out Side 1,547,886 1,748,511

3513 Receivable on Printing Service 163,926 151,096

Other Deposit – (Shedule 5B) 5,000 5,000

3514 Receivables on Other services 262,487 47,206

3402 Advances to Contractors 23,998,252 14,198,252

3403 Security Deposit 237,460 228,310

3515 Interst Receivable on Investment - 135,246

3520 House rent receivable 584,462 425,408

3524 Staff food supply control A/C 53,753 7,510

3525 Receivable on food supply to Co-op inspectors 130,896 130,896

3527 Festival advance receivable 39,000 39,000

3532 Advance to staff 241,856 61,147

3535 Transfer of Funds to other accounts 141,778 -

3539 Vat 9,382,996 13,446,550

3540 WHT Payment 218,339 249,964

3543 Distress Loan - staff 1,025,000 1,575,000

3544 Receivable Interest on Distress Loan 131 -

3545 Cheque Return control A/c 87,000 87,000

Less: Provision for bad debts (210,857) (152,693)

Specific Provision for bad debtor - (130,896)

39,299,967 34,306,691

NOTE : 06

Stock

3301 Stationery stock 224,852 179,216

3302 Printing Material stock 140,872 334,071

3303 Building Material 26,170 79,556

3304 Audio visual 2,108 6,552

3305 Sundry stock 68,432 97,104

3306 Publications- (Books & handouts) - 50,016

462,434 746,517


39

ACTUAL 2009

ACTUAL 2010

NOTE : 07

Rs Rs

CASH AT BANK (People’s Bank Katugastota) Hostal 0089 1001-72649555

2,392,262 31,106

Examination 0089 165 000304 8

3,996 3,996

Publication 0089 1001-92649564

468,272 91,355

Training & Education 0089-1001-32648143

1,372,378 694,868

Productivity Account 089-1001- 38092-967

1,350,422 408,085

Government 0089-1001-92648140

10,697,684 31,734,507

Service Charge Account 089-100150002158

246,458 50,461

Publication Account ii

- 3,417,039

16,531,472 36,431,417

NOTE : 08

CAPITAL

Balance

233,254,215 233,254,215

233,254,215 233,254,215

NOTE : 09

ACCUMULATED PROFIT/(LOSS)

Balance as at 01st of January

(59,274,351) (63,793,304)

Add/Less : Prior Year adjustments Audit fee

81,637 -

Others – Addition

2,484,365 -

Others – Deduction

(912,322) (551,383)

1,653,680 (551,383)

Accumulated profit after prior year adjustment

(57,620,671) (64,344,687)

Add : Surplus/ (Defecit)

(6,172,633) (7,300,759)

(6,172,633) (7,300,759)

(63,793,304) (71,645,446)


40

ACTUAL 2009

ACTUAL 2010

NOTE : 10

Rs Rs

CAPITAL GRANTS FROM TREASURY

Balance on 01.01

212,278,075 261,678,075

Add : Adjustment

- -

212,278,075 261,678,075

Add: Received for the Year

49,400,000 70,200,000

261,678,075 331,878,075

Less : Depreciation of Assets purchased from capital grants - -

261,678,075 331,878,075

NOTE : 11

CAPITAL GRANTS FROM MINISTRY

Balance on 01.01.2002

6,749,800 6,749,800

Add : Received for the Year

- -

6,749,800 6,749,800

Less : Depreciation of Assets purchased from capital grants (2,808,408) (3,358,408)

3,941,392 3,391,392


41

ACTUAL 2009

ACTUAL 2010

Rs Rs

NOTE : 12 CREDITORS & ACCRUED EXPENCES 4001 Telecommunications

70,426 91,037

4002 Water

- 25,338

4004 Lecture Fees

117,957 206,660

4005 Other accrued expences

183,092 1,107,888

4015 Govt. Audit fee payable

50,000 467,532

4016 Payable to Treasury

49,182 68,751

4018 Advance receivaed for programme - Outside

163,154 719,697

4019 Security Services

116,946 139,696

4020 Janitorial Services

121,366 168,056

4022 Building Constructors

49,823 867

Received in Advance as per (Schedule : 12A)

530,890 447,225

4030 Food supply control A/c Ruchira

(70,554) -

4031 With holding tax

17,516 -

4035 Salary control A/c Casual

35,599 -

4040 Refundable course fee

11,600 36,600

4041 Productivity Control A/c

1,164,908 1,154,113

4044 Vincy Cateres

100,462 100,462

4043 VAT Receipt

2,642,516 2,553,048

3903 Refundable Tender Deposit

562,001 441,000

4047 Food Supply control A/C – candy corner

22,470 -

4048 Food Supply control A/C – Ruchira

399,782 67,309

4049 Fuel bill payable

35,862 50,487

4050 Building Rental recived in advance

- 153.750

6,375,007 7,999,531

NOTE : 13

RECURRENT GRANTS (CODE : 11)

1021 From Treasuary

21,470,211 22,390,000

1020 From Ministry

- -

1044 From Co-operative fund

- -

21,470,211 22,390,000


42

ACTUAL 2009

ACTUAL 2010

Rs Rs

NOTE : 14 OTHER INCOME GENERATED FROM (CODE: 11)

1001 -1011 Course fee – Shedule 14 -A

5,312,246 8,155,549

1013 Hostal Fee

537,750 -

1012 Room Charges

4,008,062 4,797,721

1014 Lecture hall Fee

1,260,500 1,239,410

1015 House Rent

323,948 285,000

1017 Sales of Publications

116,234 96,158

1018 Service Charges

1,158,914 4,450

1022 Consultancy Service

- 250,000

1023 Printing Service

271,698 299,569

1024 Library fees

27,800 27,100

1025 Exam fees

254,056 137,715

1026 Fixed Deposit interest

73,797 162,479

1027 Interest on staff Loan

34,775 46,093

1035 Non Rufundable Tender Deposit

62,205 23,798

1036 Profit on sale of fixed Assets

357,143 1,144,039

Miscellanious income – (Shedule 14-B)

1,079,701 1,285,933

1043 Commission on food supply

972,492 805,864

1065 Registration fee for productivity competition programme

- 1,225,600

1069 Rent Income on Building

- 221,250

1063 N.B.T.

- 436,903

15,851,319 20,644,631


43

NOTE : 15

ACTUAL 2009

ACTUAL 2010

Rs Rs

PERSONNEL EMOLUMENTS (CODE : 01)

101 Salaries & Wages

12,993,145 13,285,973

151 Lecture Fees

1,085,563 1,522,380

103 Over Time

940,947 739,694

104 Allowance

753,334 1,252,099

105 E.P.F. (Institution Contribution)

1,344,706 1,322,893

106 E.T.F. Contribution

268,941 264,579

153 Exam Supervision fees

50,500 38,000

154 Course Cordinating fee

62,500 90,300

110 Director Fee

33,000 22,000

112 Holiday pay & Others

87,969 95,744

155 Question Paper

49,000 38,255

156 Paper Marking fee

73,715 120,930

118 Gratiuty

465,251 448,278

119 Pension fund

236,765 271,440

18,445,338 19,512,564

NOTE : 16

TRAVELLING EXPENCES (CODE: 02)

201 Domestic

371,712 285,566

202 Foreign

251,645 467,862

623,357 753,427


44

ACTUAL 2009

ACTUAL 2010

NOTE : 17 Rs Rs

SUPPLIES (CODE : 03)

301 Stationary & Office Requisition 606,705 500,082

302 Fuel & Lubricants 1,181,784 1,480,402

303 Printing Materials 203,561 446,815

304 Newspapers & Periodicales 62,550 60,590

306 Diets 365,632 955,209

307 Mechanical & Electrical goods 13,810 135,936

308 Video cassete & Others 430 2,268

310 Others 405,291 229,541

312 Fuel for hiring bus 56,981 -

313 Cost of water bottle - 91,490

2,896,742 3,902,331

NOTE : 18

MAINTENANCE EXPENCES (CODE : 04)

401 Vehicle

771,138 931,550

402 Plant, Machinary & Equipment

207,521 518,462

403 Building & Structures

496,347 633,477

404 Furniture

1,200 172,075

405 Computers & Others

20,550 -

406 Motor Vehicle License & Insurance

189,568 150,389

1,686,323 2,405,953


45

ACTUAL 2009

ACTUAL 2010

NOTE : 19

Rs Rs

CONTRACTUAL SERVICES (CODE : 05)

501 Transpotation

43,626 16,699

502 Telecommunications

870,986 874,433

503 Postal Charges

159,067 245,079

504 Electricity

1,719,296 1,895,723

505 Water

761,827 823,652

506 Rent & hire charges

- 3,000

508 Audit Fee

50,000 75,000

510 Advertisement/Publicity

455,223 705,845

512 Security Services

1,456,635 1,476,760

513 Janitorial Services

1,475,174 1,706,713

514 Laundry Services & Linen

63,664 240,295

515 Gardening

77,900 4,850

517 Translations

15,023 43,530

520 Staff Training (Local/ Foreign)

123,985 12,000

521 Subcription & Membership fees

808,285 446,180

523 Other Expenses

196,199 316,544

524 Printing – Printing Section

30,899 43,756

525 Printing Charges – Audio Visual

24,927 14,728

526 Stamp Charges

2,140 1,995

529 Co-operative officer’s Training

634,789 260,115

8,969,645 9,206,898

NOTE : 20

OTHER EXPENCES (CODE : 06)

601 & 602 Legal fees & Donation

106,160 11,500

607 Entertainment

615,827 781,446

703 Bank Charges

33,644 40,595

705 Loan interest of Staff

18,947 50,495

608 Productivity awarding programme

134,446 2,458,531

609 Implimentation of office Language

11,375 11,200

707 Nation build tax

381,986 829,082

709 Provision for bad debts

210,857 72,733

1,513,243 4,255,583


46

Shedule : 5-A

ACTUAL 2009

ACTUAL 2010

Course Fee Rceivable

Rs Rs

3501 Diploma in Co-operatives

279,699 397,548

3502 Co-operative Certificate course

712,310 1,248,089

3503 Workshop

60,750 57,450

3506 Short term Other Courses

232,117 101,334

3508 NICD IT Diploma

66,745 142,000

3511 Course fee receivable for English course

8,875 21,000

3522 Library fees & exam fees

30,099 86,758

1,390,597 2,054,180

Shedule : 5-B

Deposit

3536 Tender deposit

5,000

5,000

Security deposit

- -

5,000

5,000

Shedule : 10

Course fee Received in Advance

4023 Diploma Courses in Co-operatives

190,226 437,225

4024 Work shop

291,790 -

4025 Others Courses

48,875 10,000

530,890 447,225


47

Shedule : 14-A

ACTUAL

2009

Rs

ACTUAL

2010

Rs

Course Fee Income

1001 Higher Diploma – Co-operatives

1,319,203 1,471,800

1002 NICD IT Diploma

637,912 874,421

1003 Certificate Courses – Copmuter

- 666,500

1004 Certificate in English

88,125 234,708

1007 Certificate Courses - Co-operatives

691,170 964,918

1008 Short Term Courses – Workshop

1,349,427 2,524,140

1009 Short Term Courses - IT

318,000 96,000

1010 Short Term Courses – Others

676,296 1,323,062

1011 N/E Co-op officer’s Training 09/10

232,113 -

5,312,246 8,155,549

Shedule : 14-B

Miscellanious Income

1016 Income from Garden

46,226 62,125

1034 Hostel manager fee

101,550 76,603

1038 Photocopy chargers

65,619 48,943

1040 Hire of Equipment

8,400 287,193

1041Other Supplies

445,600 -

1044 Water Bottle

202,780 113,940

1045 Registration of supplies

63,349 95,000

1046 Photograph Income

15,117 23,400

1047 Fines

11,383 23,470

1048 Book Binding

6,040 6,250

1051 Miscellanious Income

1,120 18,600

1056 Income from bus

112,068 482,178

1061 Additional income

450 25,761

1062 Unclaimed due payment

- 22,470

1,079,701 1,285,933


48

Note ( 02

PROPERTY,PLANT & EQUIPMENT - 2010

Cost/Valuation Balance As

01.01.2010

Prior Year Balance After

Adjustments

Additions

during the year Adjustments

ACTUAL 2010

RS Additions Deductions

Land 134,015,302 - - 134,015,302 245,941 - 134,261,243

Building & Structures 158,394,123 - - 158,394,123 - 33,388,025 191,782,148

Plant, Machenary & Equipment 36,559,801 - - 36,559,801 7,653,161 (143,965.00) 44,068,997

Vehicles 6,673,331 - - 6,673,331 - (400,000.00) 6,273,331

Furnitures 7,945,979 - - 7,945,979 2,198,928 - 10,144,907

Library Books 1,990,597 - - 1,990,597 42,278 - 2,032,875

Curtain & Others 3,512,145 - (16,675) 3,495,470 105,210 (28,554.00) 3,572,126

Total 349,091,279 - (16,675) 349,074,604 10,245,518 32,815,506 392,135,628

Accumulated Depreciation Balance As at

01.01.2010

Prior Year Adjustments Balance After

Prior Year

Adjustments

Additions


ACTUAL 2010


Building & Structures 27,382,353 - - 27,382,353 4,648,319 - 32,030,672

Plant, Machenary & Equipment 26,525,505 - - 26,525,505 4,022,155 (115,565.00) 30,432,094

Vehicles 5,387,988 - - 5,387,988 550,000 (400,000.00) 5,537,988

Furnitures 5,043,024 - - 5,043,024 943,232 - 5,986,256

Library Books 1,851,008 - - 1,851,008 51,274 - 1,902,282

Curtain & Others 2,479,020 - (16,675) 2,462,345 548,708 (21,523.32) 2,989,530

Total 68,668,898 - (16,675) 68,652,223 10,763,688 (537,088) 78,878,823

Gross Book Value 349,091,279 - (16,675) 349,074,604 392,135,628

Accumulated Depreciation 68,668,898 (16,675) 68,652,223 78,878,823

Net Book Value 280,422,381 - 280,422,381 313,256,805

Capital work-in-Progress Contract No: Balance As at

01.01.2010

Prior Year Adjustments Balance After

Prior Year

Adjustments

Additions


ACTUAL 2010


NICD/2/2/6/6-Multipurpose Building 32,445,206 - - 32,445,206 942,820 (33,388,025) 0

2/2/6/20- Auditorium 73,930,797 - - 73,930,797 49,183,000 123,113,797

Renovation of coridor F-G hostel - 0

106,376,003 - - 106,376,003 50,125,820 (33,388,025) 123,113,798

Carrying Value 386,798,385 - 386,798,385 436,370,603


49

NOTES TO THE ACCOUNTS AS AT 31ST

DECEMBER 2010

NOTE : 01

ACCOUNTING POLICIES

1.1 General Accounting Policies

1.1 a. Accounting Conventions

The Financial statements of the Institute comprise Balance Sheet, Income & Expenditure

Account, Cash Flow statement, Accounting Policies and Notes to the Accounts. The financial

statements of the Institute are prepared on the historical cost basis and in accordance with

generally accepted Accounting Principles & Sri Lanka Accounting Standards issued by the

Institute of Chartered Accountants of Sri Lanka. These principles and standards apply

consistently.

1.1. b. Format of Accounts

The Financial Statements are presented in accordance with the format issued by the Institute of

Chartered Accountants of Sri Lanka. Previous year figures and phrases are re-arranged

wherever necessary to conform to the current year's presentation.

1.1. c. Post Balance Sheet Events

All material events occurring after the Balance Sheet date are considered and where necessary

adjustments and disclosures are made in the Financial Statements.

1.2 ASSETS AND BASES OF THEIR VALUATION

1.2 a. Property, Plant & Equipment

The cost of Property, Plant & Equipment is the cost of purchased or constructed value together

with any incidental expenses thereon. These are accounted at cost or revalued amount less

accumulated depreciation, which is provided, on the bases specified below.

1.2 b. Depreciation

The provision for depreciation is calculated on the cost of Property, Plant & Equipment so as to

write off such cost over the estimated useful lifetime of the assets by equal annual installments

as follows.

Asset Useful Lifetime

Building & Structures 40 years

Motor Vehicles 04 years

Furniture & Fittings 10 years

Books and Manuals 04 years

Plant & Machinery 05 years

Curtains & Others 03 years


50

Depreciation is provided for the fixed assets on periodical bases.

Expenditure made on transformer provided by C.E.B. has been differed and write off the cost

over a period of 40 yeas.

1.3 LIABILITIES AND PROVISION

1.3 a. Provision for Gratuity

Provision is made for the payment of retirement gratuities payable under the Gratuity Act No.

12 of 1983 in respect of all eligible employees, whose service periods are more than one year at

the Balance Sheet date.

Employees are eligible for Employee's Provident Fund contributions and Employee's Trust

Fund contributions in line with the respective statutes and regulations. The Institute contributes

15% and 3% on Basic salaries of employees to EPF and ETF respectively.

1.3 b. Provisions for Bad Debtors

5 % provision has been made for Bad Debtors.

1.3 c. Other Liabilities

Provision has not been made for litigation of Employees and other parties in the Financial

Statements.

1.4 INCOME & EXPENDITURE ACCOUNT

1.4 a. Revenue Recognition

All Fees for services rendered are accounted on accrual basis

Fees for Diploma courses and other certificate courses are accounted on accrual basis. (on

periodical basis)

1.4 b. Expenses

All expenses are accounted on accrual basis.

1.5 GOVERNMENT GRANTS

1.5. a. Capital Grants

Government grants received in the capital nature are treated as reserves in the statement of

Assets & Liabilities.


51

1.5 b. Recurrent Grants

These are treated as an Income in the year in which it was received, in the Income &

Expenditure Account.

18 Nos short term Management training programmes have been conducted for the Co-operative

movements by utilizing Rs. 1,000,000/- received as a grant from People’s Bank for the

Training Programmes in the year 2010 and remaining grant balance of Rs.291,790/- which was

unutilized in 2009. That said total amount of Rs.1,291,790/- has been included under short term

courses.

1.6 Preparation and submission of financial Statements is the responsibility of the management of

the institute.

1.7 Balances of goods in the stores and printing press as at 31.12.2009 were calculated according to

“Average Method” while the balances of publications for sale/printing were valued according to

their cost.

1.8 Cash Flow Statement was prepared according to Indirect Method.

1.9 Legal action has been taken regarding the eviction of ex-employees from quarters occupied by

them, while ex-employees have filed 02 Cases against the institute.

1.10 No of employees of this institute as at 31st December 2010 is 38.

1.11 25 No of books published by NICD worth of Rs. 12,500/- has been sent to M/s sarasavi book

shop to sell or return basis was remained unsold by the end of year 2010. The cost of the books

is Rs.4,311.50


52

Report of the Auditor General on the Financial Statements of the National Institute of

Co-operative Development for the year ended 31 December 2010 in terms of Section

14(2)(c) of the Finance Act, No. 38 of 1971

The audit of financial statements of the National Institute of Co-operative Development for the year

ended 31 December 2010 was carried out under my direction in pursuance of provisions in Article

154 (1) of the Constitution of the Democratic Socialist Republic of Sri Lanka read in conjunction with

Section 13(1) of the Finance Act, No.38 of 1971. My comments and observations which I consider

should be published with the Annual Report of the Institute in terms of Section 14(2) (c) of the

Finance Act appear in this report. A detailed report in terms of Section 13(7) (a) of the Finance Act

was issued to the Chairman of the Institiute on 01December 2011.

1.2 Responsibility of the Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements

in accordance with Sri Lanka Accounting Standards. This responsibility includes; designing,

implementing and maintaining internal control relevant to the preparation and fair presentation of

financial statements that are free from material misstatements, whether due to fraud or error;

selecting and applying appropriate accounting policies; and making accounting estimates that are

reasonable in the circumstances.

1.3 Scope of Audit and Basis of Opinion

My responsibility is to express an opinion on these financial statements based on my audit. Audit

opinion, comments and findings in this report are based on review of the financial statements

presented to audit and substantive tests of samples of transactions. The scope and extent of such

review and tests were such as to enable as wide an audit coverage as possible within the

limitations of staff, other resources and time available to me. The audit was carried out in

accordance with Sri Lanka Auditing Standards to obtain reasonable assurance as to whether the

financial statements are free from material misstatements. The audit includes the examination on a

test basis of evidence supporting the amounts and disclosures in financial statements and

assessment of accounting policies used and significant estimates made by the management in the

preparation of financial statements as well as evaluating their overall presentation. I have obtained

sufficient information and explanations which to the best of my knowledge and belief were

necessary for the purpose of my audit. I therefore believe that my audit provides a reasonable

basis for my opinion. Sub-sections (3) and (4) of the Section 13 of the Finance Act, No. 38 of

1971 give discretionary powers to the Auditor General to determine the scope and extent of the

audit.


53

2. Financial Statements

2.1 Opinion

So far as appears from my examination and to the best of information and according to the

explanation given to me, I am of opinion that the National Institute of Co-operative Development

had maintained proper accounting records for the year ended 31December 2010 and except for the

effects on the financial statements of the matters referred to in paragraph 2:2 of this report, the

financial statements have been prepared in accordance with Sri Lanka Accounting Standards and

give a true and fair view of the state of affairs of the National Institute of Co-operative

Development as at 31 December 2010 and the financial results of its operation and cash flows for

the year then ended.

2.2 Comments on Financial Statements

2.2.1 Presentation of Financial Statements

In terms of Section 6.5.1 of the Public Enterprises Circular No. PED/ 12 of 02 June 2003, the

financial statements for each financial year should be presented for audit within 60 days after

the close of the respective financial year. Nevertheless, the financial statements for the year.

2010 had been presented only on 25 July 2011.

2.2.2 Sri Lanka Accounting Standards

The following non-compliances were observed.

Reference to Sri Lanka

Accounting Standards

Non- compliance

Standard No.18 (i) Fixed assets such as Computers, furniture, office

equipment, machinery and equipment, motor

vehicles, library books, etc. which had been taken

off from use over a period exceeding 04 years had

been shown under the fixed assets without taking

action to computer the value there of either to

write off from the books or to disclose in the

financial statements.

(ii) The fixed assets such as computers and computer

accessories, machinery and equipment and library

books had not been depreciated on the basis of the

useful life of the respective assets.


54

2.2.3 Accounting Deficiencies

The following accounting deficiencies were observed.

(a) The building rent of Rs.9,600 for providing office accommodation and the lease rent

receivable on the lease of the ground due from the Nuwara Eliya Agricultural Co-operative

Association Ltd. had not been brought to account. The lease rent recivable on the lease of

the ground could not be computed as the lease rent not been specifically stated in the lease

agreement.

(b) The consumable articles such as curtains, bed sheets and mattresses valued at Rs.2,581,437

purchased during the period 2001 to 2010 for the hostel rooms and the lecture halls had

been brought to account under the fixed assets.

(c) Unsettled amounts totalling Rs.537,716 relating to 17 sundry items had been shown in the

Bank Reconciliation Statements of 05 Bank Accounts continuously over a period exceeding

08 years. Action had not been taken either to reconcile and settle them or to account them

correctly.

2.2.4 Accounts Receivable and Payable

The following observations are made.

(a) The course fees, external service charges and printing charges amounting to Rs.118,148,

Rs.533,212 and Rs.105,822 respectively totalling Rs.757,182 remaining outstanding for

over one year had not been recovered.

(b) Action had not been taken for the recovery of the Value Added Tax recivable accumulated

to Rs.13,446,550 over a period exceeding 05 years as at 31 December of the year under

review.

(c) Advances amounting to Rs.61,147 granted to the officers of the Institute for various

services had not been settled even by 31 December of the year under review. Out of that,

advances amounting to Rs.55,947 had lapsed for over 03 years.

(d) Steps had not been taken even by 31 December of the year under review to settle the

creditors balances of 04 accounts amounting to Rs.226,083 accumulated over a period

exceeding 03 years.


55

2.2.5 Non-compliance with Laws, Rules, Regulations and Management Decisions

Non-compliances with the following laws, rules, regulations, etc. were observed.

Reference to Laws, Rules Regulations

and Management Decisions

Non- compliance

(a) Financial Regulations of the

Democratic Socialist Republic of

Sri Lanka

(i) Financial Regulation 134(3) Internal Audit Reports had not been furnished to the

Auditor General by carrying out an internal audit.

(ii) Financial Regulation 169 The Institute had provided services to external parties

without recovering the charges and that income

remained outstanding.

(b) Establishments Code of the

Democratic Socialist Republic of

Sri Lanka

Chapter xix Section 5.3

Eventhough the rent for occupying government quarters

should be recovered at a specified percentage from the

salary of the employee concerned, an inadequate

economic rent had been recovered from the employees

occupying the quarters of the institute

(c) Circular No. 30 dated 22

September 2006 of the

department of Management

Service.

The Scheme of Recruitment and Promotions of the

Institute relating to the restructure of the cadre in terms

of the provisions of the circular, had not been revised

and approval therefor had not been obtained from the

Department of Management Services.

(d) Public Finance Circular

No.1A1/2002/02 dated 28

Novermber 2002 of the Secretary

to the Treasury and Financial

Regulating 756.

(i) Boards of Survey of the fixed assets valued at

Rs.66,092,237 had not been conducted for the

preceding years and the year under review and

reports thereon had not been furnished.

(ii) The Register of Fixed Assets of Computers and

Computer Accessories had not been maintained

properly.

(e) Public Administration Circular

No. 41/90 of 10 October 1990

The fuel consumption of motor vehicles had not been

tested. The activites relating to the procurement of fuel

for the pool motor vehicles had not been subjected to

examination by a responsible officer.


56

3. Financial and Operating Review

3.1 Financial Review

3.1.1 Financial Results

According to the financial statements presented, the working of the Institute during the year

under review had resulted in a deficit of Rs.7,300,759 as compared with the corresponding

deficit of Rs.6,172,633 for the preceding year, thus indicating an increase of Rs. 1,128,126 in

the deficit of the financial results. Eventhough a sum of Rs.22,390,000 had been received as the

Government contribution (recurrent) in the year under review as compared with the

Government grant (recurrent) of Rs. 21,470,211 received in the preceding year, the increase in

the employees salaries and allowances had been the main reason for the increase in the deficit.

3.2 Operating Review

3.2.1 Performance


(a) The following major activities intended for the achievement by the incorporation of the

Institute in terms of Section 4 of the National Institute of Co-operative Development

(Incorporation) Act, No.01 of 2001 had not performed.

(i) Promotion of Research on the Co-operative Development

(ii) Function as a resources centre for the collection of data relating to Co-operative

development and disseminiation of the collected data by publication.

(iii) Take over and management of the Co-operative enterprises needing

management skills.

(b) The progress of the courses conducted by the Institute as compared with the preceding year

is given below.

Course

2010 2009

Target Actual Actual

Number

of

Courses

Number of

Officers

Number

of

Courses

Number of

Officers

Number of

Courses

Number of

Officers

RegularTraining Courses 03 80 02 97 03 105

Higher Diploma Courses 12 220 10 210 07 144

Certificate Courses 11 240 06 135 03 73

Short Term Management Development Courses

22 550 10 473 01 39

Courses conducted on the requests of External Parties

- - 34 1347 17 614

Courses conducted Free of charge for the Advancement of the Co-operative Sector

- - 14 498 19 678

Total 48 1090 76 2760 50 1653


57

The following observations are made in this connection.

(i) Eventhough the conduct of 03 Regular Training Courses had been targeted, one course

out of them had not been conducted. Accordingly, a deteriotation as compared with the

preceding year was observed.

(ii) Out of the 22 Short-Term Management Development Courses targeted for the year under

review 12 courses had not been conducted. Eventhough 550 course beneficiaries had been

targeted only 473 had participated and out of that 205 had participated only for one

course on Vocational Psychology Approach for Co-operative Employees.

(iii) Fourteen courses for the Advancement of the Co-operative Sector had been conducted

free of charge during the year under review and that represented a decrease of 21 per cent

as compared with the year 2009.

(iv) Out of the 11 Certificate Courses targeted for the year under review, 06 courses only had

been conducted. Eventhough 240 course beneficiaries had been expected, 135 only had

participated.

(c) The income received from the courses conducted by the Institute during the year under review as

compare with the preceding year is given below.

2010 2009

Targeted

Income

Rs.

Actual

Income

Rs.

Actual

Income

Rs.

Regular Training Courses 676"500 551"736 89"333

Higher Diploma Courses 2"365"940 2"346"221 1"746"264

Certificate Courses 2"278"767 1"314""390 691"170

Short Term Management Courses 1"676"250 2"651"412 1"431"444

Total 6"997"457 6"863"759 3"958"211


(i) Eventhough the expected income from the Certificate Courses in the year under review

amounted to Rs. 2,278,768 a sum of Rs. 1,314,390 only had been received and that

represented 58 per cent of the expected income.

(ii) The total income from the courses in the year under review as compared with the

preceding year had improved by Rs. 2,905,548 or 73 per cent.


58

(d) Increase in Expenditure and Capital Erosion

The particulars of increase in the expenditure of the institute from the year 2005 to the year 2010

and the capital erosion that had been arisen due to the corresponding decrese in income are given

below.

2010

Rs.

millions

2009

Rs.

millions

2008

Rs.

millions

2007

Rs.

millions

2006

Rs.

millions

2005

Rs.

millions

Total

Rs.

millions

Deficit according to the

Income and

Expenditure Account ^7'30& ^6'17& ^4'14& ^7'61& ^8'88& ^9'90& ^44'00&

Less : Depreciation 10'21 9'32 8'63 6'58 7'72 8'08 50'54

Surplus/ (Deficit)

before adjusting

Recurrent Grants 2'91 3'15 4'49 ^1'03& ^1'16& ^1'82& 6'54

Less : Recurrent Grants 22'39 21'47 19'68 13'65 8'65 6'75 92'59

Deficit after

adjustments Recurrent

Grants

^19'48& ^18'32& ^15'19& ^14'68& ^9'81& ^8'57& ^86'05&

Other Income

20'64 15'85 17'25 14'41 10'12 8'65 86'92

Total Expenditure

(Excluding

Depreciation)

^40'12& ^34'17& ^32'44& ^29'09& ^19'93& ^17'22& ^172'97&

Capital Erosion ^19'48& ^18'32& ^15'19& ^14'68& ^9'81& ^8'57& ^86'05&


(i) The total expenditure of the Institute during the 06 years from 2005 to 2010 amounted to

Rs.172.97 million and the total other income amounted to Rs.86.92 million. Thus the

increase of expenditure over the income amounted to Rs.86.05 million. The income of the

Institute does not indicate an increase as compared with the increase of its expenditure.

(ii) Even though the Institute had recorded a capital improvement of Rs.6.54 million in the 06

years from 2005 to 2010,a capital erosion of Rs.86.05 million would have arisen if it had

not received recurrent grants received amounting to Rs.92.59 million. As such, an

uncertainly over the going concern of the Institute is observed.

3.2.2 Transaction of Contentious Nature

The ground floor of the multipurpose building with an actual rental valuation of Rs.390,000 had

been leased out to the Sri lanka Consumer Co-operative Societies Association for an annual

lease rent of Rs.195,000. As such, the Institute had been deprived of a sum of Rs.146,250 as

lease rent income for the year under review.


59

3.2.3 Contract Administration

The construction of the Auditorium at the cost estimate of Rs.44.5 million had been awarded

to a private construction company in August 2001 for the completion of construction in and

agreed period of 18 months and the architectural consultancy services had been obtained from

an Engineer of the engineering bureau of the Central Province. Even though the construction

should, have been completed by April 2003 it had not been so done. The roof had collapsed

on 14 February 2005 while being constructed and the work had been stopped halfway. The

completion of the balance work including the construction of the roof had been awarded in

the year 2009 to the Central Engineering Consultancy Bureau at a new cost estimate of

Rs.134.5 milion. The construction had not been completed even by 30 July 2011. The

following observations are made in this connection.

a) Eventhough it had been observed that the construction work had failed in the year 2005

due to the inefficiency of the consultant and it had been decided to recover liquidated

damages and to take legal action against the consultant, it had not been so done.

b) It was observed that a loss of Rs6.40 millon, comprising Rs.3.90 million paid under the

contract for the construction of the roof, the fee of Rs.0.35 million paid for obtaining a

technical report on the collapse of the roof and Rs.2.15 million paid as consultancy fees,

had been caused to the Institute due to the collapse of the roof and that the supply of

consultancy services to a State institution in private capacity and obtaining fee for the

supply of consultancy services while being in the public servic was irregular.

c) The loss caused due to the collapse of the roof had not been recovered from the contractor

and the arbitration in that connection referred to the Institute of Construction Training and

Development (ICTAD) had not been finalized even up to July 2011.

d) Due to the long delay of 08 years comprising 04 years from the commencenent of

construction in the year 2001 up to the collapse of the roof in the year 2005 and the

04years collapsed up to the commencement of construction again in the year 2009, the

cost of construction estimated at Rs.44.5 million had escalated by Rs. 131.2 million to

Rs.175.7 million comprising Rs.41.2 million paid for work done to the first contract and

the new cost estimate of Rs.134.5 million for the balance work.


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3.2.4 Idle and Underutilised Assets


(a) The Swift 300D x Offset printing machine, the Super Fax D x 8200 printing machine and the

gestetner 4130 Roneo machine of the Printing Division had been idling. The period of idling

and the value of those assets were not made available to audit.

(b) Two newly constructed Computer Laboratories of the Multipurpose building and 108 units of

fixed assets such as computers, computer accessories, furniture and equipment valued at

Rs.3,003,974 purchased for those laboratories remained underutilized.

(c) Out of the 08 lecture halls of the Institute, 03 had been utilized for less than 125 days in the

year and the utilization had ranged between 24 per cent to 34 per cent.

(d) One officers quarters and 02 labourers quarters of the institute had been idling for periods

from 01 year to 02 years.

3.2.5 Staff

The approved and the actual cadre of Institute had been 39 and 25 respectively thus indicating

14 vacancies. Even though the approval in terms of financial Regulation 71 had been granted

for the filling of the vacancies, action had not been taken to fill those vacancies. In addition to

the approved cadre there were 10 persons deployed in posts not approved. Action had not been

taken to obtain approval for such cadre.

3.2.9 Budgetary Control

Significant variances between the estimated and the actual expenditure of the Institute for the

year under review were observed, thus indicating that the budget had not been made use of as

an effective instrument of management control.

4. Systems and Controls

Deficiencies in systems and controls observed during the course of audit were brought to the

notice of the Chairman of the Institute. Special attention is needed in respect of the following

areas of control.

(a) Management and Utilization of Fixed Assets

(b) Collection of Outstanding Income

(c) Efficient Utilization of Resources

(d) Construction Contract Administration

H.A.S. Samaraweera

Auditor General

Documents

Annual Report -2010 - Sri Lanka · 2015-01-01 · National Institute of Co -operative Development ANNUAL REPORT - 2010 6 Vision Stepping into a self motivated, independent, and stable