List of Grey Areas along with common observations of audit
S. Grey areas Authority Types of Observations
No (A) Students Record v/s Fee and Funds 1 New Admission SOP Students allowed to enter the class room before depositing admission fee and funds, SLC from previous school not obtained, Tuition fee and funds not collected from the very next month mentioned(dues cleared up to) in SLC obtained from student, Full academic session fee not obtained from the nursery class admissions made during the academic session etc 2 Student identification number SI IDs are Not assigned on all student's related record like dossiers, fee slips, fee ledgers, attendance record, security fee record etc 3 Students' dossiers SOP Dossiers are Not properly filled / properly maintained, timely updated, etc 4 Class wise Nominal roll of students Class wise Nominal roll of students not maintained mentioning student details 5 Actual Strength of Students V/s Authorized Strength SOP Actual strength less than authorized (Welfare objective and Optimization objective) 6 Proper Documented Brother / Sister Tuition fee concession SOP Documented signed list not maintained, List not complete, List not updated, proper file of all list previous versions not maintained for record etc 7 Legitimate Brother / Sister Tuition fee concession and SOP Life time for three children’s not implemented, Status not changed on change of sibling strength Ben/FFE/FFO/Serving Concession 8 List of monthly outstanding fee of students SOP List not maintained along with financial impact and attached with progress reports 9 List of carried forward balance of advance fee received SI List not maintained along with financial impact and attached with progress reports 10 Fee rates with respect to categories SOP Old rates are charged, erroneous rates are charged, etc 11 Additional 25% fee from Ben/Ser/FFE/FFO repeaters SOP Additional 25% fee not collected from Ben/Ser/FFE/FFO repeaters 12 Monthly Progress report and its reconciliation SOP Monthly Progress report not prepared on actual student strength, wrong reconciliation 13 Monthly Class wise Fee Collection Register SOP Fee not written in the month of collection, monthly class wise totals not made and reconciled with fee collected as per bank statement etc 14 Date Wise Fee Collection Register SOP Register not maintained, date wise entries not made, date wise totals not tallied with date wise bank statement etc
15 Re admission fee SOP Re admission policy not implemented
16 Late Fee Fine SOP Less collected, wrong rates used etc S. Grey areas Type of Types of Observations No observation 17 Absentee Fine SOP Class wise record not maintained, Less collected, wrong rates used etc 18 Project Students' Security payable SOP Maintaining Payable balance SOP not followed, register not updated, refund policy not followed, Project Students' Security payable balance differs with HO maintained ledger balance 19 Struct off strength Struck off strength not mentioned in attendance and fee registers 20 SLC School leaving certificate issued without collecting dues up to the period student was kept enrolled in school (B) Employees record 21 Employee personnel files, attendance and leave record SOP Personnel files not updated, Blank spaces in attendance register, P written instead of signatures, register not signed by project head regularly, wrong calculation of earned leaves availed, leaves not recorded properly etc (C) Expenses 22 Salary and other major expenses SOP Excess Salary / allowances paid 23 Utilities SOP Late payment of utilities bills, Peak and off peak meters not installed for electricity 24 Budget SOP Variation in actual expenses with budget 25 Excursion trip SOP Discrepancies in excursion trip expense 26 Parents day SOP Discrepancies in parents day 27 Exam photocopy SOP Exam photocopy record not maintained student wise
28 General photocopy SOP Photocopy register not maintained
29 Rent SOP Income tax less deducted on building rent 30 General expense SOP Splitting invoices into many in purchase limit of prinicipal to avoid obtaining HO sanction (D) Cash and Bank 31 Cash book Cash book not daily updated 32 Cash in hand balance SOP Daily Cash in hand is more than authorized limit 33 Bank reconciliations SOP Bank reconciliations not correctly maintained at month end 34 Cash payments SOP Cash payments made over authorized limit, Open cheques issued instead of Cross cheques (E) Fixed Assets S. Grey areas Type of Types of Observations No observation 35 New assets SOP Assets not taken on ledger charge, Coding / Marking of fixed assets not done as per SOP etc 36 Ledgers' maintenance SOP Index pages not maintained in ledgers, Value of Fixed Assets not maintained, Ledgers not maintained head wise, Location of assets not mentioned on ledgers, Donated assets/personnel assets' register not maintained etc 37 Assets' maintenance SOP Out of order assets held, assets not properly safeguarded, assets not condemned by the school, assets not in use by the school 38 Stock take listings SOP Assets listings not maintained head wise, Head wise totals not made, summary of assets sub heads not made at the top etc. 39 Physical stock take SOP Excess/less items found in Physical Stock Take, stock take not evident in ledgers etc 40 Annual Reconciliation with Head office record SOP Reconciliation of inventory balances with FFHO record not carried out annually General Guidelines: All record required to be signed by the Principal must be scrutinized in the light of relevant SOPs. No one should be relaxed/benefitted at the expense of FF without proper SOP guidance. Stay Blessed Best of Luck