Report on samata ngo corruption practices and misusing fcra govt funds

Prefunding Financial Review

Report of SAMATA,

Vishakhapatnam, Andhra Pradesh

Tata Social Welfare Trust

October 2012

By

Rozmin N Ajani

Chartered Accountant

Hyderabad

Table of Contents

Executive Summary ................................. ......................................................................1

1.1 Background: .....................................................................................................1

1.2 Governance .........................................................................................................2

1.3 Previous Grants by Tata Social Welfare Trust and Allied Trusts .............................3

1.4 Broad overview of the present project budget submitted by SAMATA .....................3

1.5 Analysis of audited financial statements of SAMATA .............................................3

1.6 Key Financial Review Observations and Recommendations ..................................4

Conclusion: ..............................................................................................................19

Detailed report ................................... ..........................................................................20

Section 1 Prefunding Financial Review Scope, Methodology and Reporting ....................20

1.1 Prefunding Financial Review Scope ....................................................................20

1.2 Prefunding Financial Review Methodology ..........................................................20

1.3 Reporting ...........................................................................................................21

Section 2: Overview of previous grants utilization, monitoring and reporting processes22

2.1 Previous Education Grant .........................................................................................22

Section 3: Accounting and Internal Control systems ........................................................35

3.1 Books of Account and Maintenance of Vouchers .................................................35

3.2 Cash / Bank Controls and advances management ..............................................36

3.3 Fixed Assets Management and Stock Management ............................................37

3.4 Human Resource Management ..........................................................................39

3.5 Statutory Compliances: .......................................................................................40

Annexures ......................................... ...........................................................................43

Annexure 1: Funding profile - 2012-13 ............................................................................43

Annexure 2: List of General Body Members ....................................................................44

Annexure 3: List of Governing Body Members ................................................................46

Annexure 4: Samata Organogram ..................................................................................47

Annexure 5: Current Staffing profile ................................................................................48

Annexure 6: Samata Budget vs Actual original project period ..........................................49

Annexure 7: Samata Budget vs Actual “no cost extension” period ...................................52

Annexure 8: Staff of Tata Social Welfare Trust From October -2008 to March-2012 ........54

SAMATA

Prefunding Financial Review Report of SAMATA

Executive Summary

Date:6 th November 2012

1.1 Background:

Samata is registered under Societies Registration Act, 1860 vide registration number 554

dated 13th August 1990. It is also registered under section 12A of the Income Tax Act,

1961 vide registration number III/40/2000-2001 with effect from 1st April 2000. Samata

has obtained certificate u/s 80G, which was valid upto 31-03-2010 and therefore this

exemption will continue to remain valid unless cancelled as per notification/Circular No.

7/2010 [F.No.197/21/2010-ITA-I], Dated 27-10-2010 issued by the Income Tax

department.. It is registered under section 6(1) of Foreign Contribution (Regulation) Act, 1976

vide registration number 010170084 dated 3rd August 1994.

SAMATA’s PAN is AABTS9858F and its TAN is HYDS04860C

Samata is a social justice organization working for rights of the tribal “Adivasi” people of

Andhra Pradesh. Its goal is to enable the tribal people to realize their rights over natural

resources, education and health, yet preserving their unique tribal identity.

Samata’s registered office is located at Tuni, Andhra Pradesh and its head office is in

Vishakhapatnam. In addition, there is a project office located in Delhi.

Samata’s funding profile comprises of projects funded by both Indian and foreign sources,

apart from some contributions and donations from individuals.

The details of present funding sources (as provided by SAMATA) are provided in

Annexure 1

The Organization Structure of Samata is provided in Annexure 4 SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 2 1.2 Governance

The Memorandum of Association and Rules and Regulat ions of Samata, stipulate as

follows:

1. The minimum membership of the General Body shall not be less than 50 at any time.

The present General Body of Samata comprises of 33 members. The list of

General Body members is provided in Annexure 2

2. The membership of the General Body is for 3 years and it may be renewed by the

Governing Body after 3 years.

This requirement of renewal was not complied with 3. One third of the members of the general body shall retire every year.

This requirement of retirement by rotation was not complied with 4. The General Body shall meet once in every year, in the month of April.

No General Body meeting held after September 2010, and therefore the

statutory functions of approval of audited accounts, appointment of auditors

etc, did not take place in the last two years. Prior to this also, the general body

meeting did not take place in the month of April as stipulated.

5. The Governing Body shall ordinarily meet atleast once in 3 months.

This requirement not complied with. 2 meetings were held in the year 2010 and one

each in the years 2011 and 2012 (upto the date of the review)

The list of Governing Body members is provided in Annexure 3 6. The treasurer shall be in charge of finances, their management and planning.

In actual practice, all financial matters, including the approval of expenses and

vouchers, were handled by the Secretary, Mr. Ravi R Pragada, who is also the

Executive Director of Samata.

7. The payments made to the Executive Director on account of salaries and rent

payments were not disclosed in form 10B of the Income Tax Returns.

It is recommended that appropriate action be taken to address the governance

aspects, where required.

SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 3 1.3 Previous Grants by Tata Social Welfare Trust an d Allied Trusts

Vide grant letter dated 3rd March 2009, Tata Social Welfare Trust made a grant of Rs.

219.06 lakhs towards the project for “contextual education of adivasi children and youth

in Andhra Pradesh” for a period of three years with retrospective effect from October

2008 to September 11. A no cost extension was approved by TSWT upto March 2012.

The utilization of this grant was ascertained as a part of this prefunding financial review and is

included in the main report.

1.4 Broad overview of the present project budget su bmitted by SAMATA

The present project proposal is in continuation to the above education grant sanctioned

by TSWT. The proposed budget (as made available during the review process, at a total

cost of Rs.306.22 lakhs, and which is subject to finalization) has components of funding

by other donors (about 5%) , apart from the proposed funding from TWST (about 95%).

A major component of the proposed TWST and allied Trust funding (about 69%) is

towards salaries, apart from capital and programme costs which include considerable

amounts towards procurement of goods and services.

The gaps noted in the aspects of salary payments an d programme costs including

procurement processes, as detailed in the section o n the previous TWST grant

management and other sections of the report, will need to be specifically

addressed, in case a grant is approved for SAMATA.

1.5 Analysis of audited financial statements of SAM ATA for the financial

year for financial year 2011-2012

� The audited financial statements for the financial year ended 31st March 2012 were

made available during the course of the review.

� It was noted that the audited financial statements for the year ended 31st March 2012

(as also the previous years) were signed only by the Secretary on behalf of Samata.

The President or Treasurer (who is designated as responsible for all finance related

SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 4

matters) were not signatories to the financial statements. Also, as mentioned in the

section on Governance, the audited financial statements for the financial years ended 31st

March 2011 and 2012 were not approved by the General Body members, since no

General Body meetings were held after September 2010.

� Perusal of the audited financial statements for the previous three years (particularly

for the year ended 31-3-2012) revealed the following:

o The income and expenditure on account of project grants (including TSWT

grant) were not reflected in the organizational Income and Expenditure

account.

o However, the interest earned on account of the project grants (including fro

TSWT) were included in the income and expenditure account as

organizational income, against which organizational expenditure was charged.

o The balances held at the year end on account on project grants, net of

expenditure were reflected on the liability side of the Balance Sheet.

o Therefore, the project interest which is part of the project grant balance, was

treated in the financial statements as Samata’s unrestricted income and not

added back to the grant balances. Due to this the grant balances as

reported to TWST did not tally with the grant balan ces as reflected in the

organizational audited financial statements.

1.6 Key Financial Review Observations and Recommend ations

Samata has basic accounting systems in place. A separate Tally Company was created for

the TSWT grant funds, which was structured as per the TSWT approved budget lines / sub line

items. Sweep facility utilized for the project funds, wherein the surplus project funds were

automatically invested by the bank, thereby enabling optimum investment of project funds. A

documented process was put in place for pre-approval of project related expenses by the

project director/ executive director.

However there are many areas with regard to TSWT grant management, internal controls and

statutory compliances where there is urgent need for strengthening. The key areas as

extracted from the detailed reports are summarized below:

SAMATA


Following are the key observations abstracted from the detailed report: E Observations Recommendations Category

Previous Grant Utilization

1. Payments from October 2008- � Cash loans and advances in Non Negotiable

March 2009 excess of Rs. 20,000 are not

The TWST grant was from permitted as per the Income

retrospective effect from October Tax Rules. Any short term

2008. The first installment of the funding arrangement to meet

TSWT grant was received on 26th project expenses should be by

March 2009. During the period way of bank transfers and / or

from October 2008 to March 2009: account payee cheques,

� Cash loan of Rs. 270,000 and preferably with prior intimation

cheque loan of Rs. 100,000 to the Trust.

was taken from the Executive � Loans on account of trust

Secretary, Mr. Ravi grants cannot be kept pending

Rebbapragada at various after receipt of grant

points in time. installments.

� All payments made on � Organizational expenses must

account of the project be paid by way of account

expenses (from the loans payee cheques / bank transfers

taken) from October 2008 to to the extent possible. Most

March 2009 were made in payments paid by cash could

cash. have been paid by account

� Over the period from October payee cheques.

2008 to March 2009, the � All salaries must be paid by

project salaries were accrued way of account payee cheques

(not paid) to the staff based on / bank transfers only. Cash

the budgeted categories, salary payments, without other

numbers and amounts. The evidences such as appointment

salaries for the six month letters, attendance records etc.

period were paid together to all are indicative of very weak

staff members in April 2011, control.

after receipt of the first

installment of the TSWT grant.

SAMATA


E Observations

� It was noted that while salaries

to 12 project staff members

were made by way of bank

transfers / cheques, the

salaries of 40 field teachers,

security charges, support staff,

FRC teachers and RC

Incharge, totaling to Rs.

5,73,000.

� In many of the above

instances, the payments to

individual staff members

exceeded Rs.20,000.

� No appointment / deputation

letters were issued to any of

the project staff members

during the entire project

period.

� No attendance records were

available for the field / FRC

teachers (upto May 2009) and

other staff to whom cash

salaries were paid. The

payments were made on the

basis of signatures of the

concerned staff members on a

sheet of paper, without

affixing any revenue stamps.

� Although the TSWT grant

installment was received in

March 2009 , of the loan of Rs.

370,000 taken from Mr. Ravi,

Rs. 2,70,000 was repaid to Mr.

Ravi only on 6th July 2009.

Recommendations Category

SAMATA


E Observations

2. Payments beyond project

period:

Although the formal period for the

no-cost extension was upto March

2012, payments amounting to Rs.

163531 were in April 2012 (details

provided in the main report).

It was informed that approval was

received from TWST for the above

spending in April 2012. However

no written email or approval was

available in this regard.

3. Cheques issued / charged to the

project but not cleared till the

time of the review.

From the bank reconciliation

statements prepared for the TSWT

bank account, it was noted that two

cheques of Rs. 18,000 and Rs.

5,500 paid to Mr. K Gowri

(Resource person) and G Sunitha

(teacher trainer) respectively in

March 2010, were not yet debited

to the project bank account even at

the time of the review in October

2012.

These amounts have already been

charged to the project. The two

cheques have since long become

stale and cannot be presented for

payment. These amounts totaling

to Rs 23500, were still lying in

the project bank account, were

no longer payable to the parties.


Payments beyond the project Non Negotiable

period cannot be charged, unless

written approval is received from

the Trust. In this instance, the no

cost extension was expressedly

granted upto March 2012.

Samata should request for post

facto approval of the Trust for the

expenses incurred in April 2012.

The amount of Rs. 23500 should Non Negotiable be

refunded to TSWT . This was

discussed and agreed at the wrap-

up meeting held at the conclusion

of the review.

SAMATA


E Observations

4. Cash Payments

� Over the project period (apart

from the above initial period)

also, payments considerable

payments were made by cash.

� In many instances, the

individual payments were much

in excess of Rs. 20,000.

(details provided in main

report)

� Many of these payments could

have been made by way of

account payee cheques, since

these pertained to suppliers

based in Vishakapatnam.

� Salaries to teachers and some

other staff were continued to be

made in cash throughout the

project period.

� Capital items were also

purchased in cash.

� No revenue stamps were

affixed on the cash payment

vouchers.

5. Huge advances to Mr.

K.V.Sitarama Raju

� Although in the later part of the

project period, direct cash

payments were reduced, most

of these payments were routed

though huge cash advances

given to Mr. K.V. Sitarama

Raju .

� Many of the individual


� Organizational expenses must Non Negotiable

be paid by way of account

payee cheques / bank transfers

to the extent possible. Most

payments paid by cash could

have been paid by account

payee cheques.

� All salaries must be paid by

way of account payee cheques /

bank transfers only. Cash

salary payments, without other

evidences such as appointment

letters, etc. are indicative of

very weak control.

� Cash payments in excess of

Rs. 20,000 are not permitted as

per the Income Tax Rules.

� Revenue stamps must be

affixed on the cash payment

vouchers of Rs. 5000 or more.

� Routing of cash expenses Non Negotiable

which can otherwise be paid by

account payee cheques is not

an acceptable grant

management practice.

� This coupled with huge project

funds transferred in cash to a

single individual for purposes

varying from salary payments, SAMATA


E Observations

advances given to Mr. Raju

were in excess of Rs. 20000 (In

one instance cash advance of

Rs. 3,26,700 was given to Mr.

Raju on 3-3-2012 for

disbursement of salaries to

filed school teachers).

� The total cash advances given

to Mr. Raju during the project

period were in excess of Rs. 26

lakhs.

� Payments such as field

teachers’ salaries, conductance

of various programmes,

procurement of provisions for

programmes and materials for

schools etc were routed

through these advances

� Many such payments

individually were in excess of

Rs. 20,000

� There was no fixed duration /

periodicity for settlement of the

advances, and there was a

running advance account for

the entire project duration.

6. Ongoing loans from Mr. Ravi

Ongoing loans were taken from

and repaid to Mr. Ravi at various

points in time during the project

period. All the loan amounts were

received in cash, while repayments

happened in cash as well as

cheques. The total amount of


to purchase of materials (for

which no stock records are

maintained), without proper

supporting documents, can

amount to putting project funds

at risk.

� Cash advances in excess of

Rs. 20,000 are not permitted as

per the Income Tax Rules.

� Cash loans and advances in Non Negotiable

excess of Rs. 20,000 are not

permitted as per the Income

Tax Rules. Any short term

funding arrangement to meet

project expenses should be by

way of bank transfers and / or

account payee cheques, SAMATA


E Observations

Loans taken from / repaid to Mr.

Ravi over the project period was in

excess of Rs. 10,00,000 7. Stock registers

� Although considerable

quantities of materials were

procured for the school,

considerable amounts were

spent of printing of various

books and purchase of CDs,

cultural instruments, and many

items were purchased though

advances given to Mr. Raju, no

stock records were

maintained for any of these

items.

� Stock records were maintained

only for kitchen provisions like

rice, dal, oil etc, but not for

vegetables.

� Stock issues were initialed by

the person maintaining the

stock records, and not by the

person receiving the stock.

8. Level of supporting

� In many instances, the level of

supporting was weak, and the

bills attached were informal

paper bills, specially for field

related payments. It was

informed that programmatic


preferably with prior intimation

to the Trust.

� Loans on account of trust

grants cannot be kept pending

after receipt of grant

installments.

� Proper stock records must be Highly Desirable

maintained for all items

purchased either directly or

through advances

� Issues out of stock must be

duly authenticated, preferable

by a person who is not

responsible for buying and

maintaining the stock records.

� The issues must be tracked,

monitored and correlated to the

number of students present.

� Proper details, financial and Highly desirable

programmatic supporting must

be enclosed for all programme

expenses.

� As far as possible these should

be paid by way of account SAMATA


E Observations

backup for such payments

(signed attendance registers,

reports etc) were available at

the field but were not submitted

/ enclosed with the vouchers.

� In some instances payments

were made / booked only on

the basis of voucher payments

without any details or

supporting backup. (Details are

provided in the main report)

9. National Adivasi Children’s

Science Congress

� Vide email of 27/1/2010,

approval was received from

TSWT to utilize the amount of

Rs. 150,000 assigned for

children’s summer camp, for

the National Adivasi Children’s

Traditional Knowledge and

Science Congress in February

2010

� The actual amount incurred

on the congress was Rs.

350,885

� On 31st March 2010, the

excess amount of Rs.

200,000 on account of the

congress was transferred to

the head of “education mela,

traditional seeds festival”

� Some other instances of wrong

booking were also noted, which

are details in the main report.


payee cheques.

� This is a very serious concern. Non Negotiable

Overspending on account of

one budget head cannot be

transferred to another budget

head, to avid reporting huge

over-utilization. In this case the

congress was itself

unbudgeted, and specific

permission had been received

to spend Rs. 150,000 on the

congress.

� Complete transparency must

be maintained in all aspects of

grant utilization.

SAMATA


E Observations

10. Salaries of project / Executive

Director

� The approved budget had

provisions of the salaries of 1

project Director @ Rs. 30,000

and for the Executive Director’s

time 2 Rs. 10000 per month

� For the period from October to

May 2010, the salary of Project

Director @ Rs 30,000 per

month was paid to Ms.

Bhanumathi, and the amount

for Executive Director’s time

was paid to Mr. Ravi, the

Executive Director from

October 2008 to September

2010

� It was informed that Ms.

Bhaumathi (spouse of Mr.

Ravi) left SAMATA in June

2010.

� Therefore from October 2010

to March 2012, the salary of

full time project Director (Rs.

34,000 pm) was paid to Mr.

Ravi R Pragada, Executive

Director, who during this

period, also drew salaries

from other projects of

SAMATA funded by

European Union (Rs. 30,000

pm) and TDH (Rs. 10,000

pm). Further, Mr. Ravi also

drew salary from Crynet (Rs.


Non Negotiable

� The position of the project

director was budgeted as a full

time position. The salary on

account of this cannot be paid

to the Executive Director, who

is responsible for and drawing

salaries from other projects (in

this case three other projects)

as well, indicating that only part

of his time is devoted for the

project under review.

� Further the amount earmarked

for the “Executive Director’s”

time cannot be paid to any

other person, in this case, to a

person, who as informed in

based in Hyderabad, and who

visits Vizag to provide inputs to

SAMATA.



grant utilization.

� Proper disclosures must be

made to the Board of Samata

and also the donors for such

payments made.

� Disclosure should also be

made in form 10B filed with the

Income Tax Returns

SAMATA


E Observations

18000 pm) (another

organization headed by Mr.

Ravi and funded by SDTT

during this period).

� The amount for Executive

Director’s time was paid to

one Mr. G.Satya Srinivas who

as informed in based in

Hyderabad, and who visits

Vizag to provide inputs to

SAMATA.

� No appointment letters,

Board resolutions, ToRs, or

any other documentation

was prepared for the above

payments. Further, the Trust

was not informed about the

above changes and

charging.

The details of salaries charged to

the project over the entire project

period (as provided by SAMATA)

are provided in Annexure 8). This

statement also provides the details

of the project staff who continued

to be employed by SAMATA as at

the time of the review. It was

informed that if the new proposal is

approved by TSWT, these staff

members would be deputed to the

new project.

11. Payments under the head

“Salary of Resource Person”

� There was no clarity regarding


� Amounts budgeted under the Highly Desirable

head of salaries cannot be paid

SAMATA


E Observations

the amounts booked under this

head.

� In 2008-09, amounts paid to M.

Seema @ Rs. 8000 per month

was charged

� In 2009-10, various amounts

paid to different persons

including G Sunithi, Seema, E

Sujatha and Kapre Gouri were

charged

� In 2010-2011 Amounts paid to

E Sujata, Dr. NCB Nath for

OD, and Malikreddy Ramana

were charged (travel etc)

� For all the above payments,

there were no details provided,

no agreements / contracts.

ToRs documented, no

deliverables mentioned nor any

invoices raised by the

consultants

� No tax was deducted at source,

even where the payments

exceeded the specified limits.

12. Payment of rent to Mr. Ravi R

Pragada, Executive Director

� Upto September 2011, the rent

for the MRC cum school was

paid to one Mr. Srinivasa Rao

with whom there were periodic

rent agreements.

� From October 2011 onwards

the school was shifted to a

property located in Dabbanda


to various persons at different

points in time, and for different

purposes including travel.

� Proper contract, with clear

Terms of Reference should be

entered into for any consultancy

awarded.

� Deliverables received against

the consultancy payments must

be documented and

authenticated before payments

are made.

� Tax must be deducted at source

where the payment exceeds the

stipulated limit.

Highly desirable

� A proper process must be

followed before making rent

payments (or any other

payments) to Board members,

to evidence that the amounts

paid are not in excess of what

the organization would

otherwise pay for similar SAMATA


E Observations

Village, which belongs to the

Executive Director, Mr. Ravi R

Pragada. For this purpose, a

lease agreement was entered

into on 30/9/2011 between Mr.

Ravi and Samata Society for

rental payment to Mr. Ravi @

Rs. 30,000 per month. The

rent agreement was signed

by the administrative officer

of Samata, on behalf of

Samata . There was no Board

resolution or disclosure to the

Board in this regard.

� For the period from October

2011 to March 2012 an amount

of Rs. 97700 was charged to

the TSWT funded project as

rent to Mr. Ravi, which was

paid in cash on 31st March

2012, as reflected in the

running ledger of Mr. Ravi in

Samata books of account.

13. Payments through CBOs

� The amounts for maintaining

the 4 Field Resource Centres

(including repairs and some

programmes) were routed

through the chief functionaries

of 4 local CBOs, Velugu,

Adivaasi Sansthan, Sanjeevini,

and TERD, for which ongoing

advances were given..

� The level of supporting


services.

� Further, documentation (in this

case the rent agreement)

should be signed by a Board

member, and not a person who

is subordinate to the Executive

Director cum Secretary (in this

case the administrative officer)



grant utilization.

� Proper disclosures must be

made to the Board of Samata

and also the donors for such

payments made.

� Disclosure should also be

made in form 10B filed with the

Income Tax Returns

� A proper monitoring Highly Desirable

mechanism should be put in

place for any expenses routed

through other entities or Chief

Functionaries of other entities

(who in this case are also the

Board members of Samata)

� It must be ensured that proper

processes are followed and

cheque payments are made at

SAMATA


E Observations

received from the Chief

Functionaries of the 4 CBOs

was in many instances, in the

nature of self (or CBO) attested

statements / bills, and in many

instances in round figures.

� Further since the advances

were given in the person

names of individuals, the end

use of the funds was by way of

cash payments.

� The four Chief Functionaries

are on the General Body of

Samata, of which one ( Mr. B.

Sanjeeva Rao) is the Treasurer

of Samata.

14. The treasurer had signed many

blank cheques on the project bank

account, including on the back of

the cheques, to facilitate cash

withdrawal.

15. Financial and programmatic

reports sent to TSWT were

generally delayed, in many

instances beyond one month from

the due dates of submission.


that level too.

� Proper details, financial and

programmatic supporting must

be enclosed for all programme

expenses.

This is a very serious concern Non Negotiable

area. The practice of one signatory

signing on blank cheques must be

immediately discontinued.

All reports to the Trust must be Highly Desirable

submitted in time .

Accounting and Internal Control Systems

16. � Samata maintained manual

vouchers with manual

numbering. .

� Many vouchers were

incomplete in terms of

narrations and adequate details

pertaining to payments made.

� Samata could consider printing Highly Desirable

vouchers directly from Tally

� In case it prefers to use manual

vouchers, these should be pre-

numbered at the time of

printing.

� A proper and robust vouching SAMATA


E Observations 17. Cash in hand and cash in transit

were not insured.

18. Cash spending, retention and

withdrawal limits were not defined

and many cash payments in

excess of Rs. 20,000 were noted..

19. Bank accounts had signatures of

the treasurer on blank cheques.

20. Appointment letters were not

issued to all staff members. It was

informed that appointment letters

were issued to project staff, based

on donor stipulations.

21. Salary registers were maintained

project wise. However no

consolidated salary register was

maintained, although there were

some salaries that were funded by

more than one donor.

22. Some salaries were paid by cash.

23. Provident Fund, gratuity, and

accident insurance benefits were

not provided to staff.

24. � Income tax return for FY ended

31st March 2012 (asst year


system should be put in place.

Cash in hand and cash in transit Highly Desirable

must be insured at all times.

It is recommended that cash Highly Desirable

spending limits be defined and

implemented across the

organization.

This is a very serious concern Non Negotiable

area. The practice of one signatory

signing on blank cheques must be


Proper appointment letters should Highly Desirable be

issued to all staff members. ,

Consolidated salary register must Highly Desirable be

maintained, to indicate the

source of all salary payments,

especially since there are some

salaries that are funded by more

than one donor.

Efforts must be made to pay all Non Negotiable

salaries by way of account payee

cheques or direct bank transfers.

� Registrations should be Non Negotiable

obtained under the various Acts

as mandated by law.

� Deductions and payments must

be made as mandated by the

Acts.

All statutory compliances must be Non Negotiable

strictly adhered to. SAMATA


E Observations

2012/13) was delayed.

� The Income Tax returns for

Samata were filed with forms

3CB and form 3CD (Tax Audit

Reports) instead of Form 10B.

25. � No audited balance sheet for

the foreign contributions was

submitted along with the FC 3

returns filed with the Home

Ministry.

� No postal receipts or

acknowledgements were

preserved for the returns filed.

� No online FC 3 returns were

filed.

� For the financial year ended

31st March 2012, the returns

were filed in form FC3 instead

of form FC 6 as mandated by

the FCRR 2011.

� In the financial year 2012-13,

there was mixing of Indian and

foreign funds since the trial

balance for the FC books of

account, reflected a loan from

Indian General Account.

26. � No tax was deducted at source

from consultancies, some

salaries, other payments such

as book designing, hiring of

tents, bedsheets, pillows etc,

and payments routed through

advances, which could attract

the provisions for deduction of


IT returns must be filed in time, and

with duly completed form 10B,

since that Samata is registered

under section 12A of the Income

Tax Act.

These aspects must be addressed Non Negotiable on

a priority basis

� Tax must be deducted at Non Negotiable

source from specified payments

that exceed the stipulated

limits, deposited in time, and

necessary TDS returns filed in

time.

� TDS returns must be filed

within stipulated timelines. SAMATA


E Observations

tax at source.

� There were delays in the filing

of TDS returns.

27. The returns with the Registrar of

Societies for the financial years

2009-10. 2010-11 and 2011-12

were filed together on 22nd August

2012.


All statutory returns must be filed in Non Negotiable

time.

Conclusion:

As can be noted from the above observations and the detailed report, while basic

systems are in place, there is an urgent need to strengthen certain aspects of internal

control, especially in relation to strengthening supporting documentation and reducing

cash payments, including those routed through advances. Some important aspects of

grant management highlighted in the report also need to be addressed. The same

concerns had also been highlighted in the prefunding assessment report of Samata.

Samata may also consider documenting a “conflict of interest policy” to deal with

payments and financial dealings with Board members. Other aspects of organizational

governance also need to be strengthened in the areas pointed out earlier.

During the wrap-up meeting held at the conclusion of this review in which all the

observations made in this report were discussed, it was informed that immediate action

would be taken by Samata to address the concerns and gaps.

Acknowledgements:

We would like to put on record the complete support and cooperation extended by the

management and staff of SAMATA during the course of the Financial Review

SAMATA


Prefunding Financial Review Report of SAMATA Detailed report

Section 1 Prefunding Financial Review Scope, Method ology and Reporting

1.1 Prefunding Financial Review Scope

This Financial Review was undertaken with the objective of assessing the adequacy of

financial management and monitoring systems at SAMATA with a special focus on

adequacy of financial systems within the organization. The scope of the Financial Review

included the following broad areas:

1. Review of account and internal control systems;

2. Review of utilization of previous grant

3. Overall review of legal and statutory compliances.

The scope of this Prefunding Financial Review was limited to sample checks at SAMATA. It did

not include the review of programmatic aspect of SAMATA though a brief discussion was held in

this regard.

1.2 Prefunding Financial Review Methodology

1. Discussions with SAMATA staff members to get an overview of the organization, its

programs and the systems in place;

2. An overall review of the accounting and other internal control mechanisms in place,

conducted through checks on a sample basis;

3. An overall review of books and records, accounting systems and statutory returns filed to

assess adherence to statutory requirements.

4. Debriefing meeting was held with the Secretary (a lso the Executive Director) and

Finance staff of Samata, wherein the key observati ons pertaining to Governance,

previous grant utilization, accounting and internal control systems were

discussed. TWST - SAMATA


All the observations and recommendations included i n this report were shared with the

Executive Director and Staff members of SAMATA pres ent at the meeting.

1.3 Reporting The Financial Review report includes:

1. The executive report outlining background, overview of grant and utilization and key

observations and recommendations (marked as “E” ) and

2. This detailed report containing:

a) Financial Review scope, methodology and reporting;

b) Observations and recommendations marked as “D” corresponding to each area

within the overall scope of Financial Review.

3. Annexures to provide additional information.

TWST - SAMATA


Section 2: Overview of previous grants and overall utilization, monitoring

and reporting processes

2.1 Previous Education Grant

� Vide grant letter dated 3rd March 2009, Tata Social Welfare Trust made a grant of Rs.

219.06 lakhs towards the project for “contextual education of adivasi children and

youth in Andhra Pradesh” for a period of three years with retrospective effect from

October 2008 to September 11.

� The total project cost upto September 2011 was Rs. 1,75,08,239.

� Over the project period, TSWT had approved the following reallocations / revisions:

o Vide email of 14/9/2009, to utilize the under-spent amount of Rs. 222,000

towards materials cost for repairs of village schools.

o Vide email of 27/1/2010, to utilize the amount of Rs. 150,000 assigned for

children’s summer camp, for the National Adivasi Children’s Traditional

Knowledge and Science Congress in February 2010

� Upon the conclusion of the original project period in September 2011, a “no cost”

extension of the project upto 31st March 2012, with a total budget of Rs.28,60790 for

the period October 2011 to March 2012.

The detailed utilization totaling to Rs. 1,75,08,239 for the original project period is

provided in Annexure 6

The detailed utilization totaling to Rs. 28,05,278 for the period of no cost extension is

provided in Annexure 7

The overall grant reconciliation for the total grant, including for the extended period upto

March 2012 is tabled below: Amount in Rs.

Opening Balance Nil

Total Grant Received 2,01,65,000.00

Interest Earned 2,38,038.00

Total 2,04,03,038.00

Less: Expenditure 2,03,27,673.00

Closing Balance

Returned to Tata Social Welfare Trust, Vide

cheque No. 386809 dated 15/06/2012 , State

Bank of India, MVP Colony, Visakhapatnam

75,365.00

75,365.00

TWST - SAMA TA


� A separate Tally Company was created for the TSWT grant funds, which was

structured as per the TSWT approved budget lines / sub line items.

� A separate bank account was maintained for the project in account number

30705996868 with State Bank of India.

� Sweep facility utilized for the project funds, wherein the surplus project funds were

automatically invested by the bank, thereby enabling optimum investment of project

funds.

� There was a documented process put in place for pre-approval of project related

expenses by the project director/ executive director.

The following gaps were noted in TSWT grant Managem ent, based on sample

review and vouching for the entire project period f rom October 2008 to March 2012

D Observations

1. Payments from October 2008-March 2009

As mentioned earlier, the TWST grant was from

retrospective effect from October 2008. The

first installment of the TSWT grant was

received on 26th March 2009.

During the period from October 2008 to March

2009:

� Cash loan of Rs. 270,000 and cheque loan

of Rs. 100,000 was taken from the

Executive Secretary, Mr. Ravi

Rebbapragada at various points in time.

These amounts were reflected in the project

books and project expenses were booked

against the said amount received.

� All payments made on account of the

project expenses (from the loans taken)

from October 2008 to March 2009 were

made in cash.

� Over the period from October 2008 to

March 2009, the project salaries were

accrued (not paid) to the staff based on the

Recommendations

� Cash loans and advances in


permitted as per the Income Tax

Rules. Any short term funding

arrangement to meet project

expenses should be by way of

bank transfers and / or account

payee cheques, preferably with

prior intimation to the Trust.

� Loans on account of trust grants

cannot be kept pending after

receipt of grant installments.

� Organizational expenses must be

paid by way of account payee

cheques / bank transfers to the

extent possible. Most payments

paid by cash could have been

paid by account payee cheques.

� All salaries must be paid by way of

account payee cheques / bank

transfers only. Cash salary TWST - SAMATA


D Observations

budgeted categories, numbers and

amounts. The salaries for the six month

period were paid together to all staff

members in April 2011, after receipt of the

first installment of the TSWT grant.

� It was noted that while salaries to 12

project staff members were made by way of

bank transfers / cheques, the following

salaries were paid in cash in April 2012, for

the period October 2008 to March 2009:

Field teachers (40 nos) 429,000

Security charges 24,000

Support staff 12,000

Teacher FRC ( 3 nos) 36000

RC incharge ( 3 nos) 72000

� In many of the above instances, the

payments to individual staff members

exceeded Rs.20,000.

� No appointment / deputation letters were

issued to any of the project staff

members during the entire project

period.

� No attendance records were available for

the field / FRC teachers (upto May 2009)

and other staff to whom cash salaries

were paid. The payments were made on

the basis of signatures of the concerned

staff members on a sheet of paper, without

affixing any revenue stamps.

� Although the TSWT grant installment was

received in March 2009 , of the loan of Rs.

370,000 taken from Mr. Ravi, Rs. 2,70,000

was repaid to Mr. Ravi only on 6th July

2009.

Recommendations

payments, without other


letters, attendance records etc.

are indicative of very weak control.

TWST - SAMATA


D Observations

2. Payments beyond project period:

Although the formal period for the no-cost

extension was upto March 2012, the following

payments were made in April 2012 Rs.

Dissemination and Documentation 95.00 Medical Support 1,508.00 Stationery and Teaching Aids 300.00 Books on Tribal culture 63,105.00 Education Mela 46,449.00 Two CDs 52,074.00 Total 1,63,531.00

It was informed that approval was received

from TWST for the above spending in April

2012. However no written email or approval

was available in this regard.

3. Cheques issued / charged to the project but

not cleared till the time of the review.

From the bank reconciliation statements

prepared for the TSWT bank account, it was

noted that two cheques of Rs. 18,000 and Rs.

5,500 paid to Mr. K Gowri (Resource person)

and G Sunitha (teacher trainer) respectively in

March 2010, were not yet debited to the project

bank account even at the time of the review in

October 2012.

These amounts have already been charged to

the project. The two cheques have since long

become stale and cannot be presented for

payment. It was informed by Samata, that these

amounts totaling to Rs 23500, still lying in the

project bank account, were no longer

payable to the parties.

Recommendations

Payments beyond the project period

cannot be charged, unless written

approval is received from the Trust. In

this instance, the no cost extension

was expressedly granted upto March

2012.

Samata should request for post facto

approval of the Trust for the expenses

incurred in April 2012.

The amount of Rs. 23500 should be

refunded to TSWT . This was

discussed and agreed at the wrap-up

meeting held at the conclusion of the

review.

TWST - SAMATA


D Observations

4. Cash Payments

� Over the project period (apart from the

above initial period) also, payments

considerable payments were made by cash.

� In many instances, the individual payments

were much in excess of Rs. 20,000.

Instances include v.no. 149, dt 1-6-09 for

Rs. 42000 for food payment to Andhra

Bhavan (Vizag based); Rs. 28,435 paid on

same day to sainath supplier for bed, pillow,

bedsheet hire charges (vizag based); v.bo.

183 dt 30/6/2010 Rs. 48000 cash payment

to Swati guest house for accommodation

charges for accommodation charges;

24/11/2011 cash payment of Rs. 26500 for

5 tyres paid to Gopala tyres, V.No. 298 dt

25/1/2012 Rs. 33388 cash paid to SRMT for

servicing charges of Sumo, Rs. 33,337 cash

payment on 8-6-2011 for stationery and

sport material for school -many more such

cash payments were noted

� Many of these payments could have been

made by way of account payee cheques,

since these pertained to suppliers based in

Vishakapatnam (rent, accessories for

vehicles, provisions from regular suppliers,

food and accommodation expenses etc)

� Salaries to teachers and some other staff

were continued to be made in cash

throughout the project period.

� Capital items were also purchased in cash.

For instance Rs. 38,055 paid to M/s Balajee

Enterprise for voice recorder and camera

� No revenue stamps were affixed for cash

Recommendations

� Organizational expenses must be


cheques / bank transfers to the

extent possible. Most payments

paid by cash could have been

paid by account payee cheques.

� All salaries must be paid by way of

account payee cheques / bank

transfers only. Cash salary

payments, without other


letters, etc. are indicative of very

weak control.

� Cash payments in excess of Rs.

20,000 are not permitted as per

the Income Tax Rules.

� Revenue stamps must be affixed

on the cash payment vouchers of

Rs. 5000 or more.

TWST - SAMATA


D Observations

payments in excess of Rs. 5000.

5. Huge advances to Mr. K.V.Sitarama Raju

Although in the later part of the project period,

direct cash payments were reduced, most of

these payments were routed though huge cash

advances given to Mr. K.V. Sitarama Raju .

The overview of expenses routed though cash

advances to Mr. Raju is tabled below:

Recommendations

� Routing of cash expenses which

can otherwise be paid by account

payee cheques is not an

acceptable grant management

practice.

� This coupled with huge project

Period Amount of cash funds transferred in cash to a

advances to Mr. Raju single individual for purposes

April 09 - March 10 928966

April 10 - March 11 780765

April 11 - Sep 2011 439155

October 11-March 12 469500

April 2012 13000

Total cash advances 2631386

to Mr. Raju

� Many of the individual advances given to

Mr. Raju were in excess of Rs. 20000 (even in

excess of Rs. 100,000. In one instance

cash advance of Rs. 3,26,700 was given to

Mr. Raju on 3-3-2012 for disbursement of

salaries to filed school teachers)

� Payments such as field teachers’ salaries,

conductance of various programmes,

procurement of provisions for programmes

and materials for schools etc were routed

through these advances

� Many such payments individually were in

excess of Rs. 20,000

� There was no fixed duration / periodicity for

settlement of the advances, and there was a

running advance account for the entire

project duration.

varying from salary payments, to

purchase of materials (for which

no stock records are maintained),

without proper supporting

documents, can amount to putting

project funds at risk.

� Cash advances in excess of Rs.

20,000 are not permitted as per

the Income Tax Rules.

TWST - SAMATA


D Observations

6. Ongoing loans from Mr. Ravi

Ongoing loans were taken from and repaid to

Mr. Ravi at various points in time during the

project period. All the loan amounts were

received in cash, while repayments happened

in cash as well as cheques. The total amount of

Loans taken from / repaid to Mr. Ravi over the

project period was in excess of Rs. 10,00,000

7. Stock registers

� Although considerable quantities of

materials were procured for the school,

considerable amounts were spent of

printing of various books and purchase of

CDs, cultural instruments, and many items

were purchased though advances given to

Mr. Raju, no stock records were

maintained for any of these items.

� Stock records were maintained only for

kitchen provisions like rice, dal, oil etc, but

not for vegetables.

� Stock issues were initialed by the person

maintaining the stock records, and not by

the person receiving the stock.

� These was no analysis / tracking

undertaken to relate the stock issues with

the number of student, to monitor the proper

usage of the various items.

� This is particularly important because these

items are purchased in bulk (for example

rice is purchased 10000 kgs at a time) and

Recommendations

� Cash loans and advances in


permitted as per the Income Tax

Rules. Any short term funding

arrangement to meet project

expenses should be by way of

bank transfers and / or account

payee cheques, preferably with

prior intimation to the Trust.

� Loans on account of trust grants

cannot be kept pending after

receipt of grant installments.

� Proper stock records must be

maintained for all items

purchased either directly or

through advances

� Issues out of stock must be duly

authenticated, preferable by a

person who is not responsible for

buying and maintaining the stock

records.

� The issues must be tracked,

monitored and correlated to the

number of students present.

TWST - SAMATA


D Observations

constitute a considerable proportion of

spending.

8. Level of supporting

� In many instances, the level of supporting

was weak, and the bills attached were

informal paper bills, especially for field

related payments (eg. JV 155 2010-11

payment of Rs. 20,925 towards providing

food for teachers training programme at

Vizag). It was informed that programmatic

backup for such payments (signed

attendance registers, reports etc) were

available at the field but were not submitted

/ enclosed with the vouchers.

� In some instances payments were made /

booked only on the basis of voucher

payments without any details or supporting

backup, Instances include:

� V.no 451 dt 30/09/2011 cash payment of

Rs. 10,000 to resource person on the basis

of a voucher without recipient’s signature, or

details specifying the purpose, nature of

work etc..

� V.no 459 dt 30/09/2011 cash payment of

Rs. 9,000 to resource person on the basis of

a voucher without any details specifying the

purpose, nature of work etc..

� V.no 84 dt 10/03/2012 cash payment of Rs.

16,000 for conducting youth camp, paid /

booked on the basis of a voucher without

any details or signature of recipient.

9. National Adivasi Children’s Science

Congress

� Vide email of 27/1/2010, approval was

Recommendations


programmatic supporting must be

enclosed for all programme

expenses.

� As far as possible these should be


cheques.

� This is a very serious concern.

Overspending on account of one

budget head cannot be transferred TWST - SAMATA


D Observations

received from TSWT to utilize the amount of

Rs. 150,000 assigned for children’s summer

camp, for the National Adivasi Children’s

Traditional Knowledge and Science

Congress in February 2010

� The actual amount incurred on the

congress was Rs. 350,885

� On 31st March 2010, the excess amount

of Rs. 200,000 on account of the

congress was transferred to the head of

“education mela, traditional seeds

festival”

� Some other instances of wrong booking

were also noted. For example

o vide v.no, 451 dated 30/09/2011 Rs.

56000 was paid for purchase of

Almirahs etc. Of this Rs. 36000 was

charged to capital items and Rs.

20,000 to monthly running of

centres..

o V.no, 344 dt 23/8/2010 for purchase

of printer, scanner, photocopier for

Rs. 9200 charged to dissemination

and documentation)

10. Salaries of project / Executive Director

Project Director

� The approved budget had provisions of the

salaries of 1 project Director @ Rs. 30,000

and for the Executive Director’s time @ Rs.

10000 per month

� For the period from October to May 2010,

the salary of Project Director @ Rs 30,000

per month was paid to Ms. Bhanumathi, and

the amount for Executive Director’s time

Recommendations

to another budget head, to avid

reporting huge over-utilization. In

this case the congress was itself

unbudgeted, and specific

permission had been received to

spend Rs. 150,000 on the

congress.

� Complete transparency must be

maintained in all aspects of grant

utilization.

� Proper disclosures must be made

for payments made to the same

person under various projects.

This is particularly important in

case of Mr. Ravi, sine he is also

the Secretary of Samata

� The position of the project director

was budgeted as a full time

position. The salary on account of

this cannot be paid to the

Executive Director, who is

responsible for and drawing

salaries from other projects (in this

case three other projects) as well, TWST - SAMATA


D Observations

was paid to Mr. Ravi, the Executive Director

from October 2008 to September 2010

� It was informed that Ms. Bhaumathi

(spouse of Mr. Ravi) left SAMATA in June

2010.

� From October 2010 to March 2012, the

salary of full time project Director (Rs.

34,000 pm) was paid to Mr. Ravi R

Pragada, Executive Director, who during

this period, also drew salaries from other

projects of SAMATA funded by

European Union (Rs. 30,000 pm) and

TDH (Rs. 10,000 pm). Further, Mr. Ravi

also drew salary from Crynet (Rs. 18000

pm) (another organization headed by Mr.

Ravi and funded by SDTT during this

period).

� The amount for Executive Director’s

time was paid to one Mr. G.Satya

Srinivas who as informed in based in

Hyderabad, and who visits Vizag to

provide inputs to SAMATA.

� No appointment letters, Board

resolutions, ToRs, or any other

documentation were prepared for the

above payments. Further, the Trust was

not informed about the above changes

and charging.

The details of salaries charged to the project

over the entire project period (as provided by

SAMATA) are provided in Annexure 8). This

statement also provides the details of the

project staff who continued to be employed by

SAMATA as at the time of the review. It was

Recommendations

indicating that only part of his time

is devoted for the project under

review.

� Further the amount earmarked for

the “Executive Director’s” time

cannot be paid to any other

person, in this case, to a person,

who as informed in based in

Hyderabad, and who visits Vizag

to provide inputs to SAMATA.



utilization.


to the Board of Samata and also

the donors for such payments

made.

� Disclosure should also be made in

form 10B filed with the Income

Tax Returns

TWST - SAMATA


D Observations

informed that if the new proposal is approved by

TSWT, these staff members would be

deputed to the new project.

11. Payments under the head “Salary of

Resource Person”

� There was no clarity regarding the amounts

booked under this head.

� In 2008-09, amounts paid to M. Seema @

Rs. 8000 per month was charged

� In 2009-10, various amounts paid to

different persons including G Sunithi,

Seema, E Sujatha and auri Kapre Gouri

were charged

� In 2010-2011 Amounts paid to E Sujata, Dr.

NCB Nath for OD, and Malikreddy Ramana

were charged (travel etc)

� For all the above payments, there were no

details provided, no agreements / contracts.

ToRs documented, no deliverables

mentioned nor any invoices raised by the

consultants

� No tax was deducted at source, even where

the payments exceeded the specified limits.

12. Payment of rent to Mr. Ravi R Pragada,

Executive Director

� Upto September 2011, the rent for the MRC

cum school was paid to one Mr. Srinivasa

Rao with whom there were periodic rent

agreements.

� From October 2011 onwards the school

was shifted to a property located in

Dabbanda Village, which belongs to the

Executive Director, Mr. Ravi R Pragada. For

this purpose, a lease agreement was

Recommendations

� Amounts budgeted under the head

of salaries cannot be paid to

various persons at different points

in time, and for different purposes

including travel.

� Proper contract, with clear Terms of

Reference should be entered into

for any consultancy awarded.

� Deliverables received against the

consultancy payments must be

documented and authenticated

before payments are made.


where the payment exceeds the

stipulated limit.

� A proper process must be

followed before making rent

payments (or any other payments)

to Board members, to evidence

that the amounts paid are not in

excess of what the organization

would otherwise pay for similar

services.

� Further, documentation (in this TWST - SAMATA


D Observations

entered into on 30/9/2011 between Mr. Ravi

and Samata Society for rental payment to

Mr. Ravi @ Rs. 30,000 per month. The rent

agreement was signed by the

administrative officer of Samata, on

behalf of Samata . There was no Board

resolution or disclosure to the Board in this

regard.

� For the period from October 2011 to March

2012 an amount of Rs. 97700 was charged

to the TSWT funded project as rent to Mr.

Ravi, which was paid in cash on 31st March

2012, as reflected in the running ledger of

Mr. Ravi in Samata books of account.

13. Payments through CBOs

� The amounts for maintaining the 4 Field

Resource Centres were routed through the

chief functionaries of 4 local CBOs, Velugu,

Adivaasi Sansthan, Sanjeevini, and TERD.

� For this purpose, advances were given in

the personal names of the 4 Chief

Functionaries. In some instances, amounts

for the repairs of the FRCs and certain

programmes conducted at the FRCs were

also routed through these advances.

� The level of supporting received from the

Chief Functionaries of the 4 CBOs was in

many instances, in the nature of self (or

CBO) attested statements / bills, and in

many instances in round figures.

� Further since the advances were given in

the person names of individuals, the end

Recommendations

case the rent agreement) should

be signed by a Board member,

and not a person who is

subordinate to the Executive

Director cum Secretary (in this

case the administrative officer)



utilization.


to the Board of Samata and also

the donors for such payments

made.

� Disclosure should also be made in

form 10B filed with the Income

Tax Returns

� A proper monitoring mechanism

should be put in place for any

expenses routed through other

entities or Chief Functionaries of

other entities (who in this case are

also the Board members of

Samata)

� It must be ensured that proper

processes are followed and

cheque payments are made at

that level too.


programmatic supporting must be

enclosed for all programme

expenses.

TWST - SAMATA


D Observations

use of the funds was by way of cash

payments.

� The four Chief Functionaries are on the

General Body of Samata, of which one ( Mr.

B. Sanjeeva Rao) is the Treasurer of

Samata.

14. Payments for Books and CDs

Huge Amounts were paid to Ms Realtime

computer services for books and CDs. These

include Rs. 3,12,407 form Books on Tribal

Culture and Rs. 100,568 for CDs. Though

quotations were collected, and payments were

made by account payee cheques, the following

gaps were noted.

� No purchase orders were issued with

documented terms and conditions for the

contract. There was no documentation to

indicate satisfactory deliverables before

making payments.

� No formal stock records were maintained

for the Books and CDs.

� No tax was deducted at source from the

payments made.

15. The treasurer had signed many blank cheques

on the project bank account, including on the

back of the cheques, to facilitate cash

withdrawal.

16. Financial and programmatic reports sent to

TSWT were generally delayed, in many

instances beyond one month from the due

dates of submission.

Recommendations

� Proper purchase orders / contract

must be issued to vendors,

specifying the terms and condition

of the purchase.

� Proper stock records must be

maintained for all items purchased /

printed.


where applicable.

This is a very serious concern area.

The practice of one signatory signing

on blank cheques must be


All reports to the Trust must be

submitted in time .

TWST - SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 35 Section 3: Accounting and Internal Control systems

3.1 Books of Account and Maintenance of Vouchers

� It was informed that Samata has briefly documented its financial processes, but

these have not been formally adopted.

� SAMATA maintain its books of account in Tally accounting software, wherein

separate companies are maintained for foreign and Indian grants. In addition, a

separate company was also maintained for the TSWT funded project.

� The accounts were structured as per the donor approved budget line items

� It was informed that the accounts were updated on a daily basis

� External backup was taken on a fortnightly basis on an external hard disk.

� It was informed that the books of account were printed on a monthly basis.

� Paid stamp was affixed on the vouchers.

Following observations were made with regard to Books of Account and

maintenance of vouchers: D Observations

17. � Samata maintained vouchers manually.

The vouchers numbers were also put

manually.

� Vouchers for receipts were not

prepared. There was no distinction

between cash and bank vouchers.

� Many vouchers were incomplete in

terms of narrations and adequate

details pertaining to the payments

made.

18. Tally was not password protected 19. The level of supporting was generally not

adequate, and programmatic supporting

was not enclosed with the vouchers.

Recommendations

� Samata could consider printing

vouchers directly from Tally

� In case it prefers to use manual

vouchers, these should be pre-

numbered at the time of printing.

� A proper and robust vouching system

should be put in place.

Proper security levels must be defined for

the accounting software.

Proper details, financial and programmatic

supporting must be enclosed for all

programme expenses. TWST - SAMATA


3.2 Cash / Bank Controls and advances management

� As informed, all Samata bank accounts are jointly operated by the Treasurer and

Secretary.

� BRS is prepared on a monthly basis all bank accounts.

� No limits are defined or followed for cash withdrawals, cash retention and cash

payments.

� Cash in hand and cash in transit was not insured. �

Cash verification was not undertaken.

� Advances though given to staff in cash.

Following observations were made with regard to Cas h and Bank Controls, and

advances management D Observations 20. Cash in hand and cash in transit were

not insured.

21. Cash spending, retention and withdrawal

limit were not defined / followed and

many cash payments in excess of Rs.

20,000 were noted..

22. BRS is prepared on a monthly basis.

However, these were not analyzed for

stale cheques etc.

23. � It was noted that the cheque books

for all bank accounts had signatures of

the treasurer on blank cheques.

� Further his signature was also affixed

at the back side of the cheques for

endorsement to facilitate cash

withdrawal.

24. There was no formal process defined for

cash verification.

Recommendations

Cash in hand and cash in transit must be

insured at all times.

It is recommended that cash spending

limits be defined and implemented across

the organization.

Monthly BRS should be prepared for all

bank accounts operated by SAMATA.

This is a very serious concern area. The

practice of one signatory signing on blank

cheques must be immediately

discontinued.

Proper cash tallying and verification

systems must be put in place on a priority

basis. TWST - SAMATA


D Observations 25. � Advances though given to staff in

cash.

� In many instances expenses that

were met from advances, could have

been paid directly at the

organizational level, through account

payee cheques.

� There was no formal mechanism for

monitoring the periodicity of advance

settlement. Advances were

maintained in the ledger as running

advance accounts.

Recommendations

As far as possible, advances should not

be given for payments that can be made

directly at the organizational level by

account payee cheques /

A proper advance management system

should be put in place on a priority basis.

This system should address importance

aspects and templates for giving,

accounting, utilization and settlement of

advances.

3.3 Fixed Assets Management and Stock Management � Quotations were called for before purchase of fixed asset and for undertaking

large works such as printing of books etc. However, processes such as

comparative analysis and issue of purchase orders etc. were not followed.

� The process of calling for quotes was not followed for items which formed a major

portion of procurement - namely provisions such as rice, dals, materials for

schools etc. Further, as mentioned earlier, in most instances such purchases

were routed through advances.

� Although considerable quantities of materials were procured for the school,

considerable amounts were spent of printing of various books and purchase of CDs,

cultural instruments, and many items were purchased though advances, no stock

records were maintained for any of these items.

� Stock records were maintained only for kitchen provisions like rice, dal, oil etc,

but not for vegetables.

� There was no capitalization policy for fixed assets.

� Fixed assets ( with the exception of vehicle) were not covered by insurance.

� It was informed that project wise fixed asset registers were maintained as per the

donor stipulations.

� There was no system of verification of fixed assets.

TWST - SAMATA


Following observations were made with

management:

D Observations

26. No process was followed for items which

formed a major portion of procurement -

namely provisions such as rice, dals,

materials for schools etc. Further, as

mentioned earlier, in many instances

such purchases were routed through

advances

27. No process was followed for hiring of

consultants, issue of ToRs, deduction of

tax at source etc.

28. There was no capitalization policy for

fixed assets. 29. No consolidated fixed asset register was

maintained.

regard to fixed asset and stock

Recommendations

Proper organizational procurement

processes must be put in place, and

meticulously followed for all procurement of

goods and services.

� Proper contract, with clear Terms of

Reference should be entered into for any

consultancy awarded.

� Deliverables received against the

consultancy payments must be

documented and authenticated before

payments are made.

� Tax must be deducted at source where

the payment exceeds the stipulated limit.

It is recommended that a capitalization

policy be documented which could include

(amongst other conditions) (i) assets costing

more than Rs 5,000/- only will be capitalized

(ii) The useful life of the asset must be more

than one year and (iii) The asset must be

depreciated as per Income Tax rules.

� Fixed assets register must be

maintained in an updated manner at all

times. Preprinted format available in the

market may be used.

� Separate fixed asset register must be

maintained for assets created out of

foreign contributions.

TWST - SAMATA


D Observations

30. The process of calling for quotes was not

followed for items which formed a major

portion of procurement - namely

provisions such as rice, dals, materials for

schools etc. Further, as mentioned

earlier, in most instances such purchases

were routed through advances.

31. There was no system of physical

verification/ write off of assets which were

lost/ stolen/ damaged/ destroyed/ not in

working condition etc.

32. Fixed assets were not covered by

insurance

Recommendations

Inventory register must be maintained for all

Inventory items procured/ received.

Proper system of physical verification/ write

off of assets

It is recommended that physical assets be

covered by Insurance. Compact or umbrella

insurance policy may be considered.

3.4 Human Resource Management

� SAMATA employed 31 staff members excluding the school teachers. The list of staff,

along with the funding sources is provided in Annexure 5.

� It was informed that SAMATA has documented some of its HR processes, though

these have not been formally introduced.

� Appointment letters were not issued to staff membe rs, except in the case of

projects where this was a donor requirement.

� While most salaries to teachers and other support staff were made by cash

� It was informed that attendance registers were maintained at all levels.

� Salary registers were maintained project wise. However no consolidated salary

register was maintained, although there were some salaries that were funded by more

than one donor.

� It was informed that hospitalization coverage was provided to the staff.

� Samata has not obtained registration under Provident Fund, Payment of Gratuity, and

profession Tax Acts, although it was informed that these Acts were applicable to the

organization.

� Annual performance appraisal of staff was not formally done.

TWST - SAMATA


Following observations were made with regard to Hum an Resources management:

D Observations

33. Appointment letters were not issued to all

staff members. It was informed that

appointment letters were issued to project

staff, based on donor stipulations.

34. Salary registers were maintained project

wise. However no consolidated salary

register was maintained, although there

were some salaries that were funded by

more than one donor.

35. Some salaries were paid by cash.

36. Provident Fund, gratuity, and accident

insurance benefits were not provided to

staff.

37. Profession tax was not deducted from

staff salaries.

Recommendations

Proper appointment letters should be

issued to all staff members. ,

Consolidated salary register must be

maintained, to indicate the source of all

salary payments, especially since there

are some salaries that are funded by more

than one donor.

Efforts must be made to pay all salaries by

way of account payee cheques or direct

bank transfers.

� Registrations should be obtained under

the various Acts as mandated by law.

� Deductions and payments must be

made as mandated by the Acts.

3.5 Statutory Compliances:

Following observations were made with regard to Sta tutory Compliances: D Observations 38. � Income tax return for FY ended 31st

March 2012 (asst year 2012/13) was

delayed.

� Tax audit reports in form 3CB and

3CD were filed, wherein it was

mentioned that it was not possible for

the auditor to verify whether

payments in excess of Rs. 20,000

were made in cash, since there was

Recommendations

All statutory compliances must be strictly

adhered to.

IT returns must be filed in time, and with

duly completed form 10B, since that

Samata is registered under section 12A of

the Income Tax Act. .

TWST - SAMATA


D Observations

no such evidence in the possession

of the assesse (Samata)

39. � FC returns were filed in time for the

financial years ended 31st March

2010 and 2011.

� However no audited balance sheet

for the foreign contributions was

submitted along with the returns.

� No postal receipts or

acknowledgements were preserved

for the returns filed.

� No online FC 3 returns were filed.

� For the financial year ended 31st

March 2012, the returns were filed in

form FC3 instead of form FC 6 as

mandated by the FCRR 2011.

� In the financial year 2012-13, there

was mixing of Indian and foreign

funds since the trial balance for the

FC books of account, reflected a loan

from Indian General account.

40. � No tax was deducted at source from

consultancies, some salaries, other

payments such as book designing,

hiring of tents, bedsheets, pillows etc,

and payments routed through

advances, which could attract the

provisions for deduction of tax at

source.

� There were delays in the filing of TDS

returns.

Recommendations

These aspects must be addressed on a

priority basis

� Tax must be deducted at source from

specified payments that exceed the

stipulated limits, deposited in time, and

necessary TDS returns filed in time.

� It is important that such payments be

identified and tracked over each

financial year to facilitate deduction of

tax at source.

� TDS returns must be filed within

stipulated timelines. TWST - SAMATA


D Observations 41. � The returns with the Registrar of

Societies for the financial years 2009-

10. 2010-11 and 2011-12 were filed

together on 22nd August 2012.

� There was formal receipt /

acknowledgement from the office of

the registrar for the filing of returns.

Such a receipt was available only

upto financial year 2007-08.

Recommendations

All statutory returns must be filed in time.

TWST - SAMATA


Annexures

Annexure 1: Funding profile - 2012-13 Amount

S.no Donor Name Project Title (Rs) Mining Information Clearinghouse of India

1 European Union (MICI) 5954407 Mining Information Clearinghouse of India

2 Grasroots International (MICI) 676312 Eastern Ghats Ecosystem protection and

3 Key stone foundation Management 3834732 Sustainable Agriculture and Ecological

4 Key stone foundation Development 198175 Promotion and protection of rights of

5 TDH children in the mining sector 1517942 Frende der Erziehungskust-

6 German Voluntary contribution 723618 12905186

TWST - SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 44 Annexure 2: List of General Body Members S.No Name Address Occupation

1 Sri.Ravi Rebbapragada 541,Adityaniba,Raod No.1, Social work banjarahills, Hyderabad -34.

2 Lotha Subbarao P.Mallapuram (po) Farmer Sankhavaram Mandal East Godavari District.A.P

3 K.S Sastry KS Sastry Social work Secretary- Gandhi Centre 48-13-2, - Srinagar Visakhapatnam 530016

4 Rohit Jain Executive Director Social work Q-1, Hauz Khas Enclave New Delhi -100 016.

5 B.T.Venkatesh BT Venkatesh Advocate No 40, 2nd Main, 5th Cross Gandhinagar Bangalore 560009

6 Busari Ramayamma D.Mallpuram(v) P.M.Puram(P) Farmer Sankavaram E.G.Dt. A.P .

7 Murla Chalayyamma Polavaram (v) P.M.Puram(P) Farmer Sankavaram E.G.Dt. A.P .

8 B.Sanjeevarao Velugu Association Social work Kotturu-Vil.Post & Mandal Srikakulam District 532455

9 K.Manmadharao K.Manmadha Rao Social work Adivasi Mitra Paderu Visakhapatnam District 531 024

10 K.Dharamaraju Plot no 34, Balaji Enclave Social work Transport Road Near Diamond Point Secunderabad 500 009

11 G. Satya Srinivas AP State NGO's Committee on PFM Social work 304 Gautami Apartments Barkatpura - Hyderabad

12 Mrs. Kishori Deshpandey SRINIVAS (name of the house) House wife 6-3-565, Yerramanzil Somajiguda, Hyderabad 82

13 Indrani P Indrani Business Ankita Agencies Plot No.147, Road No.10 Jubilee Hills Hyderabad 500034

14 Kopuru Chanti D.Mallpuram(v) P.M.Puram(P) Farmer Sankavaram E.G.Dt. A.P .

15 Gollapalli Babulu Daddugula Farmer Natavaram mandal Visaka Dist. A.P.

16 Somula Bangaramma Koitiguda Farmer Borra getuvalasa Anantagiri mandal Visakha Dist. A.P.

TWST - SAMATA


S.No Name Address Occupation 17 Sambe Pollanna Nimmalapadu Farmer

Anantagiri mandal Visakha Dist. A.P.

18 L.V.V.Satyanarayana P.Mallapuram Famar Ex. Post Master Sankhavaram Mandal East Godavari District.A.P

19 Ch.Rajulamma Sangavaka (V) Health worker Kotananduru Manadal East Godavari District.A.P

20 Sri.P.Devellu MIG-A-108, Sagarnagar Social work Visakhapatnam 530043

21 Sri.P.Jaggarao Indugapalli Social work Kotananduru Manadal East Godavari District.A.P

23 Sri S.Krishna Gollupalem (v) Social work Gajapathinagaram (so) Vizainagaram Dist.A.P.

24 Sri.G.Dalayya N.Venkatanagaram Coordinator N.N.Patnam(Po) Tuni Mandal East Godavari District.A.P

25 Makireddy Ramana Jogampeta Social work Golugonda (Mandal) Visakhapatnam District, A.P

26 K.Venkata Rao Korra (Village) Social work Dumbriguda (Mandal) Visakhapatnam District

27 J.Musalayya Yarakapuram (village) Farmar P.Mallapuram -Post Sankhavaram (Mandal E.G.Dt - A.P- 533 446.

28 P.Vasu Chettupalii (village) Researcher Rolugunta Mandal visakhapatnam District - A.P

29 S.Mosherao Annavaram (village) Journalist Snkhavram (Post) East Godavari District - A.P

30 Manoharan Manoharan Social Service Gudalur (V) Po Nilagiris District - 643 212 Tamilanadu

31 Ms. Shantha Sinha M.V.Foundation Social work 201, Narayan apartments Marredpally (West) Secunderabad - 500 026.

Ms. Enakshi Ganguly 32 Thukral 1342 Pocket, B. Section. A, Researcher

Vasant Kunj New Delhi - 110 070.

33 Sr. Philomina Thomas Women's Welfare Centre Social work Flat No.7, Ashia Apartment Magar Road, Pune - 411 006 Maharashtra.

TWST - SAMATA

Rozmin N Ajani, Chartered Accountant Continuation s heet 46 Annexure 3: List of Governing Body Members S.No Name Designation Address Occupation

1 L.Subbarao President P.Mallapuram (post) Farmar Sankhavaram East Godavari District

2 Sr. Philomina Thomas Vice President Women's Welfare Centre Social work Flat No.7, Ashia Apartment Magar Road, Pune - 411 006 Maharashtra.

3 Ravi Rebba pragada Secretary 541, Aditya Residency Social work

Road No.1, Banjarahills

Hydearabad -500 034 4 Ms. Indrani Joint Secretary Ankita Agencies Business

Plot No.147, Road No.10 Jubilee hills - Hyderabad - 34

5 Mr.B. Sanjeeva Rao Treasurer Kotturu Social work Srikakulam District Andhrapradesh - 532 455.

6 Ms. Enakshi Ganguly Member 1342 Pocket, B. Section. A, Researcher Thukral

Vasant Kunj New Delhi - 110 070.

7 Ms. Shantha Sinha

8 Mrs. Kishori Deshpandeh

Member M.V.Foundation Social work 201, Narayan apartments Marredpally (West) Secunderabad - 500 026.

Member Srinivas (Name of the House) Social work

No. 6 - 3 - 565, Yerramanjali Somajiguda, Hyderabad - 500 082.

9 Shri.Rohit Jain Member Q -1, Hauzkhas Enclave (F.F) Social work New Delhi - 110 016.

TWST - SAMATA


General Body Annexure 4: Samata Organogram

Executive Body

mm&P Executive Director MICI CIO Researcher

Media Coord. Off. Assistant Admin/Finance Field Staff Delhi Delhi Samata HQ Coordinator-

FO- North

Field - 1 Media-1

Legal - 1

Data Coordinator-1

Director IT & Documentation

Education- MRC-9 Finance-2

Coordinator RC-1

Schools 40

Field Coordinator-1 Youth Centers

4- 12

Health - 1

TWST - SAMATA

Admin-4 FO-West

FO - South

FO - East

FO - Central


Annexure 5: Current Staffing profile S.No. Name

1 Ravi R Pragada

Designation

Executive Director

Date of appointment

Since incorporate

Amount Funded by (Rs)

European Union/ TDH 45163

2 Ravisankar Doc.& web content manager 2001 Samata 17600

3 S.Krishna Administrator Since incorporate Keytone/ Samata 17600

4 P.Jaggarao Accounts Coordinator Since incorporate European Union 17600

TDH/ 5 Gopi Accountant 2005 Keystone/Samata 14300

6 G.Dalayya Field Coordinator Since incorporate Samata 8800

7 K.Prabhavathi Research Associate September -2012 TDH 20327

8 G.Srinivas Media Coordinator/ Reeacher Since incorporate Keystone foundation 13500

9 G.Saiman Documentationist Since incorporate Keystone foundation 12000

10 Makiredy Ramana Field Coordinator Since incorporate Keystone foundation 12000

Balamitra Education Project

11 K.Seetaramaraju Field Coordinator Apr-08 Samata 12100

12 Ch.Rajulamma Correspondent Since incorporate Samata 13000 School Teacher/Field

13 Y.Simhachalam Coordinator Oct-09 Samata 6050

14 E.Dhanalakshmi School Teacher/ Trainer Apr-05 Samata 6050

15 K.Swaropa School Teacher/ Trainer Apr-10 Samata 3000

16 S.Geeta School Teacher/ Trainer Aug-05 Samata 6050

17 T.Chinathalli School support staff Jun-12 Samata 3500

18 G.Sathibabu Office Assistant Apr-08 Samata 6050

19 K. Kondamma School support staff Aug-11 Samata 2500

20 R.Simahachalam School support staff Jun-12 Samata 2000

21 M.Gopinadh Office /Security Jun-12 Samata 5000

22 J. Prakash Rao Driver Sep-12 Samata 6000

23 M.Pydiaraju Office /Security Jun-12 Samata 3500

New Delhi office Staff (MICI)

24 Nishant Kumar Alag Chief Information Officer Nov-10 European Union 30000

25 Ranjana Majumdar Media Coordinator Sep-12 European Union 20000

26 Sushant Panigrahy Field staff Coordinator May-11 European Union 20000

27 Ashok shrimali Field Orgnaiser Nov-10 European Union 18000

28 Ravi Mittal Field Orgnaiser Nov-10 European Union 18000

29 Aruna Chandrasekar Field Orgnaiser May-11 European Union 18000

30 Deme Oram Field Orgnaiser Aug-12 European Union 18000

31 Kishore Vijay Field Orgnaiser Jun-11 European Union 18000

32 Mr. Om Prakash Office Assistant Jan-11 European Union 8000

TWST - SAMATA


Annexure 6: Samata Budget vs Actual original projec t period

S.No Line Items Total Approved Expenditure Total Va riance Budget 3 Years Year 1 Year 2 Year 3 Expenses

I Maintaining of 40 village schools at 4 CBO level 1 Teacher’s salaries (40 teachers x 12 mths x Rs.2000) 30,75,600 8,34,472 7,69,000 9,56,625 25,60,097 5,15,503 2 Annual day celebrations at cluster level (4 clusters) 1,20,000 25,551 37,833 42,690 1,06,074 13,926 3 Assistant Coordinator salary (1 coordinator x 12 mths x Rs. 2,38,320 72,000 72,600 93,720 2,38,320 -

6000) 4 Material 6,00,000 1,04,182 45,439 1,12,475 2,62,096 3,37,904 5 Sagarnagar, Visakhapatnam Resource Center staff field 1,80,000 47,741 49,930 1,06,469 2,04,140 (24,140)

visits 6 Cost of four wheel vehicle 6,00,000 6,05,690 - - 6,05,690 (5,690) 7 Driver salary for vehicle (1 driver x 12 mths x Rs. 5000) 1,98,600 60,000 60,500 76,200 1,96,700 1,900 8 Vehicle maintenance (fuel , vehicle repairs ) 2,69,760 45,954 76,959 1,13,585 2,36,498 33,262 II Maintaining of 4 Field Resource Centres 1 Resource Centre Incharge cum Community Coordinator (4 6,35,520 1,68,000 1,93,600 2,45,080 6,06,680 28,840

centers x 12 mths x Rs. 4000) 2 Teacher (one teacher for each resource center) ( 4 centers x 3,17,760 84,000 96,800 1,10,440 2,91,240 26,520

12 mths x Rs. 2000) 3 Adolescent Education Programme Coordinator ( 4 centers x 4,04,640 72,000 1,45,200 1,87,440 4,04,640 -

12 mths x Rs. 3000) 4 Training, staff meetings at cluster level (weekly (4 days per 1,68,000 50,375 20,383 53,221 1,23,979 44,022

month for 4 clusters for 7 months=28 days for 40 teachers @ 50 per day)

5 Children's Summer Camps(50 Students for 15days @Rs.50) 4,50,000 1,50,556 51,807 46,734 2,49,097 2,00,903 6 Children's Winter Camps (50 Students for 15days @ Rs.50/-) 3,00,000 - - 50,000 50,000 2,50,000 7 Youth camps (4 per year per cluster=16) (per camp 50 youth 9,60,000 1,58,093 3,71,692 3,73,500 9,03,285 56,715

@ food expenses Rs. 10000/-, local conveyance Rs.4000/- and Rs. 6000/- by conducting cultural and sports events, awarding prizes and camp arrangements

8 Office and stationery expenses 1,44,000 17,020 35,060 32,110 84,190 59,810 9 Travel expenses for field visits of Field Resource Centre 1,44,000 21,959 45,760 54,411 1,22,130 21,870

coordinators 10 Running cost of centre (electricity, incidental maintenance) 2,88,000 39,127 76,349 84,559 2,00,035 87,965 11 Cost of library books on tribal laws,, history, literature and 80,000 13,192 7,425 19,140 39,757 40,243

children's stories 12 Almariah and shelf for storage of books 40,000 40,624 - - 40,624 (624) 13 Cultural instruments 32,000 32,580 - - 32,580 (580) 14 Audio and video equipment 80,000 76,920 - - 76,920 3,080 15 Training material like boards, markers 96,000 - 3,303 14,840 18,143 77,857 III Balamitra Resource cum Training Centre, Sagarnagar,

Visakhapatnam 1 Salary for Project Director (1 x Rs. 30,000 x 12 months) 11,91,600 3,60,000 2,64,000 4,68,600 10,92,600 99,000 2 Salary for 1 Project Coordinator for the Visakhapatnam 4,76,640 1,44,000 1,05,600 1,87,440 4,37,040 39,600

TWST - SAMATA



Resource Centre (1 x Rs. 12000 x 12 months) 3 Salary for 1 Documentation Assistant (1 x Rs. 10000 x 12 3,97,200 1,20,000 1,21,000 1,56,200 3,97,200 -

months) 4 Salary for 4 Teachers Trainer (4 x Rs.5000 x12 months 7,94,400 2,40,000 2,29,500 2,52,150 7,21,650 72,750 5 Salary for 1 Cook (1x Rs.2000 x 12 months) 79,440 24,000 24,200 22,710 70,910 8,530 6 Salary for 1 Support staff (1x Rs.2000 x 12 months) 79,440 24,000 19,466 31,240 74,706 4,734 7 Salary for 1 Office boy (1 x Rs.1500 x 12 months) 59,580 18,000 18,150 20,870 57,020 2,560 8 Field Coordinator’s salary (1 Coordinator x 12 mths x Rs. 3,97,200 1,20,000 1,21,000 1,56,200 3,97,200 -

10000) 9 Salary for 1 Resource Person (part time) (1 x Rs. 8000 x 12 3,17,760 80,000 77,000 1,02,157 2,59,157 58,603

months) 10 Electricity charges (every 2 months Rs.4000) 79,440 15,790 26,872 23,560 66,222 13,218 11 Building rent (per month Rs. 15000) 5,95,800 1,58,760 1,75,500 2,31,600 5,65,860 29,940 12 Phone bill (per month Rs.800) 28,800 4,800 8,354 10,490 23,644 5,156 14 Monthly running cost for centre (water, incidental 1,80,000 46,901 53,759 50,010 1,50,670 29,331

maintenance costs) (Rs.5000 per month) 15 Teachers trainings once in year (45 days) Food Rs. 1,80,000, 11,85,000 1,81,713 1,82,929 2,94,785 6,59,427 5,25,573

Accommodation Rs. 1,80,000 material Rs. 20,000, [This is for the 40 village school teacher training programmes] travel Rs. 15000

16 Resource Center's Team Training, Food and Travel Rs. 400 x 3,02,400 61,374 20,022 22,055 1,03,451 1,98,949 12 x 21 days, [This is for training the 12 staff of the Field Resource Centers from the 4 clusters at Visakhapatnam Resource cum Training Centre]

17 Exposure visits for staff at the Field Resource Centers and 3,00,000 50,052 81,888 68,088 2,00,028 99,972 the staff at the Visakhapatnam Resource cum Training Center

18 Education meals- traditional seed festivals, annual day meals, 4,80,000 24,932 2,22,206 55,987 3,03,125 1,76,875 mid-term meals, adivasi sports meals Books on tribal culture: 14 booklets in 5 languages, 500 7,00,000 - - 3,12,407 3,12,407 3,87,593 copies @ Rs. 20 per copy (4 first yes, and 5 each in second and third year) 2 CDs per year*4 languages*3years=24 CDs* 50 1,99,800 - - 1,00,568 1,00,568 99,232 copies=1200*146 per CD=176000 and Booklet with lyrics: 20 per book * 1200=Rs. 24000 Charges for DTP/graphic designing 45,000 - - - - 45,000 Translation charges 28,800 - 7,080 - 7,080 21,720 Survey and compiling of songs and stories 40,200 - 10,000 - 10,000 30,200 Camera 18,000 21,990 - - 21,990 (3,990) Recording equipment 20,000 - 18,000 - 18,000 2,000 Annual report of Balamitra (100 copies per year) 18,000 - - - - 18,000 Computers purchase (2 computers x Rs.24000) 24,000 23,750 - - 23,750 250 Report on education (mid-day meal, anganwadis and 40,200 - - - - 40,200

TWST - SAMATA



government schools) one for Visakahaptnam and one for Srikakulam Printing of checklists and lesson plans for the 40 schools 12,000 4,370 78 - 4,448 7,552 Printed version of Telugu quarterly newsletter produced by 6,000 - 365 - 365 5,635 village schools (4 per year)

IV Balamitra Residential Model School , Sagarnagar, Visakhapatnam

1 Food & supplies (Provisions, Vegetables, oils) 9,53,280 2,50,521 3,38,960 3,36,423 9,25,903 27,377 2 Education material (note books, crayons, chalk, slate) 30,000 4,619 17,592 6,937 29,148 852

Rs.250*40Students 3 Medical support for children and supporting staff 75,000 17,994 25,436 19,524 62,954 12,047 4 Correspondent salary 2,16,000 72,000 66,000 78,000 2,16,000 - 5 Staionery, teaching aids, photocopying 30,000 10,412 13,586 16,512 40,510 (10,510) V Advocacy programme 1 Dissemination and Documentation, publications, filing RTI 1,08,000 1,565 16,277 8,422 26,264 81,736 2 Programme travel for participating in state and national level 2,88,000 7,139 7,011 38,889 53,039 2,34,961

meetings 3 Programme Communication (phone,fax, Internet, postage etc 1,44,000 24,525 47,249 21,199 92,973 51,027 4 State level Consultation on Tribal Education (Food , 1,50,000 - - - - 1,50,000

Accommodation, Travel Workshop material ) for participants and experts

VI Administrative support @ 10% 1 Executive Director's time 3,97,200 1,20,000 1,21,000 1,56,200 3,97,200 - 2 Administrator 3,57,480 1,08,000 1,08,900 1,40,580 3,57,480 - 3 Accountant 3,17,760 96,000 96,800 1,24,960 3,17,760 - 4 Office Assistant 1,98,600 60,000 60,500 78,100 1,98,600 - 5 Computer software 48,340 - 24,900 23,677 48,577 (237) 6 Administrative/office rent, electricity, maintenance (shared) 2,88,000 85,968 96,000 1,04,000 2,85,968 2,032 7 Staff welfare expenses(Staff tea expenses and cost of 1,26,000 11,023 28,834 50,239 90,095 35,905

sanitation cleaning material 8 Security charges 1,44,000 48,000 44,000 52,000 1,44,000 - 9 Audit 73,770 12,500 25,000 25,000 62,500 11,270 10 Purchase of 2 computers @ 24000 per computer 48,000 47,500 - - 47,500 500 11 Infrastructure of 4 Field Resource Centres(roof, flooring,tiling) 21,240 - - 8,949 8,949 12,291

New Approved Budget Line It ems 1 Cost of repairs 2,22,000 - 1,94,187 27,200 2,21,387 613 2 National Adivasi Children's Traditional Knowledge Science 1,50,000 - 1,50,000 - 1,50,000 -

Congree Grand Total 2,19,05,570 54,22,232 54,28,840 66,57,167 1,75,08,239 43,97,332

TWST - SAMATA


Annexure 7: Samata Budget vs Actual “no cost extens ion” period

Sl Budget Actuals Variance

No PARTICULARS

I Maintaining of 40 village schools at 4 CBO level 1 Teacher’s salaries (40 Teacher's)(9 Senior Teacher's @

Rs.2420/-*6Months)(31Jr. Teacher's @ Rs.1815/-*6 Months)

2 Annual day celebrations at cluster level (4 clusters) (Rs.10,000 per each cluster *4 Cluster)

3 Assistant Coordinator salary (1 coordinator x6 mths x Rs. 7,260)

4 Material 5 Sagarnagar, Visakhapatnam Resource Center staff field

visits (Rs5000/- per month * 6Months) 6 Driver salary for vehicle (1 driver x 6 mths x Rs. 6050) 7 Vehicle maintenance (fuel , vehicle repairs )(Rs.9,680/-per

month * 6 Months) Annexute-I Total

II Maintaining of 4 Field Resource Centres 1 Resource Centre Incharge cum Community Coordinator (4

centers x 6 mths x Rs. 4840) 2 Teacher (one teacher for each resource center) ( 4 centers x

6 mths x Rs. 2,420) 3 Adolescent Education Programme Coordinator ( 4 centers x

6 mths x Rs. 3,630) 4 Training, staff meetings at cluster level (Monthly one

meeting each cluster RS.1500/-*4 =Rs.6,000/-per cluster per month * 6 Months)

5 Children's Winter Camps (50 Students for 4days @ Rs.65/- per cluster =Rs.13,000* 4 cluster)

6 Youth camps (1 per luster) (per camp 50 youth @ food expenses Rs. 10000/-, local conveyance Rs.4000/- and Rs. 6000/-=Rs.20,000/- by conducting cultural and sports events, awarding prizes and camp arrangements

7 Office and stationery expenses (Rs.1000*6 Months*4Resource Centres )

8 Travel expenses for field visits of Field Resource Centre coordinators (Rs.1000/-per month *6months *4 Resource cnetre's)

9 Running cost of centre (electricity, incidental maintenance) (Rs.2000/-per month *6months*4 Resource Centre's) Annexute-II Total

III Balamitra Resource cum Training Centre, Sagarnagar, Visakhapatnam

1 Salary for Project Director (1 x Rs. 36,300 x 6 months) 2 Salary for 1 Project Coordinator for the Visakhapatnam

Resource Centre (1 x Rs. 14520 x 6 months) 3 Salary for 1 Documentation Assistant (1 x Rs. 12100 x 6

months) 4 Salary for 4 Teachers Trainer (4 x Rs.6050 x6 months) 5 Salary for 1 Cook (1x Rs.2420 x 6 months) 6 Salary for 1 Support staff (1x Rs.2420 x 6 months) 7 Salary for 1 Office boy (1 x Rs.1815 x 6 months) 8 Field Coordinator’s salary (1 Coordinator x 6 mths x Rs.

12100)

Oct-11 to April - Oct-11 to April - Oct-11 to April - 2012 2012 2012

4,68,480 4,64,640 3,840

40,000 40,000 0

43,560 43,560 0 50,000 22,738 27,262

30,000 58,195 -28,195 36,300 36,000 300

58,080 1,10,695 -52,615 7,26,420 7,75,828 -49,408

0

1,16,160 1,16,160 0

58,080 58,080 0

87,120 87,120 0

36,000 23,327 12,673

52,000 58,445 -6,445

80,000 80,000 0

24,000 9,757 14,243

24,000 31,653 -7,653

48,000 49,987 -1,987 5,25,360 5,14,529 10,831

2,17,800 2,17,800 0

87,120 87,120 0

72,600 72,600 0 1,45,200 1,34,160 11,040

14,520 14,520 0 14,520 14,420 100 10,890 12,200 -1,310

72,600 72,600 0

TWST - SAMATA


Sl Budget Actuals Variance No PARTICULARS Oct-11 to April - Oct-11 to April - Oct-11 to April -

2012 2012 2012 9 Salary for 1 Resource Person (part time) (1 x Rs. 9680 x 6

months) 58,080 57,895 185 10 Electricity charges (Rs.2420*6Months) 14,520 7,684 6,836 11 Building rent (per month Rs. 18150*6 Months) 1,08,900 1,08,900 0 12 Phone bill (per month Rs.800* 6 Months) 4,800 4,681 119 13 Monthly running cost for centre (water, incidental

maintenance costs) (Rs.5000 per month*6 Months) 30,000 43,829 -13,829 14 Teachers trainings once in 6 Months (10 days) 100 * 10 days

*50 teachers=Rs.50,000/- Accommodation Rs.100*10days*50 Teachers=50,000/-Material cost Rs.15,000/-, Travel Rs.35,000/-(This is for 40 Village School Teacher's for Attending Training Programme) 1,50,000 93,165 56,835

15 Resource Center's Team Training, Food and Travel Rs. 450 x 12 Staff *6 Trg Prog per each month [This is for training the 12 staff of the Field Resource Centers from the 4 clusters at Visakhapatnam Resource cum Training Centre] 32,400 8,765 23,635

16 Education meals- traditional seed festivals, annual day meals, mid-term meals, adivasi sports meals 60,000 65,263 -5,263

17 Books on tribal culture: 4 booklets(Each book let 500 copies @ Rs.21,000/-per book let) 84,000 63,105 20,895

18 2 CDs in 4 languages( Each Cd's 500 copies @ Rs.50/-per copy =Rs25,000/- with booklet with lyrics: ( 2 Cd's *Rs.25000=Rs.50,000) 50,000 55,049 -5,049

19 Printed version of Telugu quarterly newsletter produced by village schools (4 per year) 6,000 5,640 360 Annexute-III Total 12,33,950 11,39,396 94,554

IV Balamitra Residential Model School , Sagarnagar, Visakhapatnam

1 Food & supplies (Provisions, Vegetables, oils)(40 Students *Rs.800 per Month* 6Months) 1,92,000 1,93,889 -1,889

2 Education material (note books, crayons, chalk, slate) Rs.125*40Students 5,000 5,698 -698

3 Medical support for children and supporting staff (teachers, cook, helper etc.)(50(Children & Staff)*1*250) 12,500 12,592 -92

4 Correspondent salary (Rs.7260*6months*1) 43,560 43,560 0 5 Staionery, teaching aids, photocopying 5,000 3,773 1,227

Annexute-IV Total 2,58,060 2,59,512 -1,452 V Advocacy programme 0 1 Dissemination and Documentation, publications, filing RTI

(Rs.1000/-permonth * 6Months) 6,000 2,636 3,364 2 Programme travel for participating in state and national level

meetings(Rs.5000/-permonth * 6 Months) 30,000 27,317 2,683 3 Programme Communication (phone,fax, Internet, postage

etc.) (Rs.3,000/-per month * 6months) 18,000 13,312 4,688 Annexute-V Total 54,000 43,265 10,735

VI Administrative support @ 10% - 0 1 Admin Support 63,000 72,748 -9,748

Annexute-VI Total 63,000 72,748 -9,748 Grand Total 28,60,790 28,05,278 55,512

TWST - SAMATA


Annexure 8: Staff of Tata Social Welfare Trust From October -2008 to March-2012 S.No. Name

1 Ravi R Pragada

Designation

Executive Director

Date of appointment

Since incorporate

Amount Funded by (Rs)

European Union/ TDH 45163

2 Ravisankar Doc.& web content manager 2001 Samata 17600

3 S.Krishna Administrator Since incorporate Keytone/ Samata 17600

4 P.Jaggarao Accounts Coordinator Since incorporate European Union 17600 TDH/

5 Gopi Accountant 2005 Keystone/Samata 14300

6 G.Dalayya Field Coordinator Since incorporate Samata 8800

7 K.Prabhavathi Research Associate September -2012 TDH 20327

8 G.Srinivas Media Coordinator/ Reeacher Since incorporate Keystone foundation 13500

9 G.Saiman Documentationist Since incorporate Keystone foundation 12000

10 Makiredy Ramana Field Coordinator Since incorporate Keystone foundation 12000 Balamitra Education Project

11 K.Seetaramaraju Field Coordinator Apr-08 Samata 12100

12 Ch.Rajulamma Correspondent Since incorporate Samata 13000 School Teacher/Field

13 Y.Simhachalam Coordinator Oct-09 Samata 6050

14 E.Dhanalakshmi School Teacher/ Trainer Apr-05 Samata 6050

15 K.Swaropa School Teacher/ Trainer Apr-10 Samata 3000

16 S.Geeta School Teacher/ Trainer Aug-05 Samata 6050

17 T.Chinathalli School support staff Jun-12 Samata 3500

18 G.Sathibabu Office Assistant Apr-08 Samata 6050

19 K. Kondamma School support staff Aug-11 Samata 2500

20 R.Simahachalam School support staff Jun-12 Samata 2000

21 M.Gopinadh Office /Security Jun-12 Samata 5000

22 J. Prakash Rao Driver Sep-12 Samata 6000

23 M.Pydiaraju Office /Security Jun-12 Samata 3500

New Delhi office Staff (MICI)

24 Nishant Kumar Alag Chief Information Officer Nov-10 European Union 30000

25 Ranjana Majumdar Media Coordinator Sep-12 European Union 20000

26 Sushant Panigrahy Field staff Coordinator May-11 European Union 20000

27 Ashok shrimali Field Orgnaiser Nov-10 European Union 18000

28 Ravi Mittal Field Orgnaiser Nov-10 European Union 18000

29 Aruna Chandrasekar Field Orgnaiser May-11 European Union 18000

30 Deme Oram Field Orgnaiser Aug-12 European Union 18000

31 Kishore Vijay Field Orgnaiser Jun-11 European Union 18000

32 Mr. Om Prakash Office Assistant Jan-11 European Union 8000

TWST - SAMATA

Government & Nonprofit

Report on samata ngo corruption practices and misusing fcra govt funds