It is commonly observed that many societies have not carried out Audits of Accounts for previous years. Now, as per Model Bye-Laws, it is mandatory to audit the accounts and approve the same on or before, 30″ of September. Bye-Law no. 95 (b) states that one of the important businesses to be transacted at the AGM is to receive the Annual Report of the Managing Committee activities and on its working in the preceding co-operative year, together with the Statement of Account in Form ‘N’ prescribed under Rule 62(1) of the Rules, showing Income and expenditure during the preceding co-operative year the Balance Sheet at the close of the preceding co-operative year.
Thus, if the audit is not done for the previous years, then it is the responsibility of the Managing Committee members to see that accounts of all previous years are audited after completion.
Collection of the following documents (year-wise) in a separate box file must be done with separate dividers used in individual files while file these documents –
Accounting tips for timely and regular audit
|S.N.||Name of the Head||Description|
|1||Repairs & Maintenance A/c||Paid for purchase of cleaning items|
|Paid for labor charges for cleaning work.|
|Paid for any other repair work|
|2||Maintenance Electricals A/C||Paid for purchase of electrical items (tube light, bulb, switch)|
|Paid for labor charges for electrical repairs|
|3||Maintenance Plumbing A/C||Paid for purchase of plumbing items (tap, pipe)|
|Paid for labor charges for plumbing work|
|4||Salary A/c||Paid for the payment of sweeper’s salary for the month of April 2015.|
|5||Misc Charges/ General Expenses A/c||Paid for the purchase of clock, torch|
|6||Staff Welfare NC||Paid for purchase of any items for staff like tea, uniform, umbrella, raincoat, etc.|
|7||Maintenance Lift A/c||Paid for Annual Maintenance Charges for repairing and maintenance of lift.|
|8||Water Tanker Charges A/c||Paid for the supply of water tanker|
|9||Printing & Stationery A/c||Paid for purchase of stationery items photocopying, typing, binding, etc.|
|10||Postage & Telephone A/c||Paid for the courier, Registered posts, Advertisements, phone call charges, telephone recharge|
|11||Conveyance A/c||Paid for the Auto fare for e.g: From Laxmi Road to Camp (for the purpose of a survey of Accounting firms) (write purpose to be precise)|
|12||Legal & Professional charges A/c||Paid for legal consultancy charges/ Accounting charges / Audit charges|
|13||Cultural Expenses/ Festival Expenses||Paid for any expenses incurred for the Ganpati festival|
|14||Meeting Expenses A/c||Paid for any expense related to Annual General Meeting / Managing Committee Meeting for e.g. hiring of chairs shamiana/printing meeting pamphlets|
|15||Security charges А/с||Paid for security services provided for a period of one financial year.|
Always write the purpose of the expenditure in the voucher and try to be precise to keep transparency in the account. The description should be to the point and in short. Such a system helps accountants and auditors to put each and every expense under an appropriate head.
If an Account is regularised, then the Managing Committee members can divert their attention to other important matters related to the welfare of the Society. Hence, updating and maintaining previous records becomes an essential task for the Committee members.