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Presentation on Maintenance

of Books of Accounts and


Closing of Annual Accounts of
SSA by Chief Consultant, TSG
and Finance Controller, SSA,
West Bengal

Maintenance of Accounts

State Implementation Society is required to maintain the


following books of accounts and registers

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

Maintenance of Accounts contd.../-

SIS may maintain any other books of accounts, if


considered desirable.

Society should prepare every month a district wise


abstract to indicate the monthly expenditure.

A quarterly consolidated account indicating the receipts


and payments should be prepared.

Opening balance and closing balance should be indicated


correctly every quarter.

Wherever the funds are received and utilised including the


VECs / SMCs are required to maintain the accounts.

Consolidated records of reciepts and expenditure need to


be maintained at the district and State Project Office.

Maintenance of Accounts contd.../-

Society is required to maintain a register of assets and a


stock register separately for capital goods, consumable
and non-consumable articles acquired out of SSA funds.

Society shall also arrange the physical verification of the


assets at least once a year.

The asset register and stocks register need to be


maintained at the level of school, CRC, BRC, DPO and
SPO.

An abstract of register of assets need to be appended to


annual statement of accounts.

The register of abstract shall contain progressive figures


of stores and their values.

Annual Accounts of SSA

Society need to prepare annual accounts of the receipts


and payments and a statement of liabilities.

The SPO shall prepare the annual accounts of the society


immediately after the close of the financial year.

The annual accounts need to be got approved by the


Executive Committee of the Society.

The annual accounts of the society are mandatorily to be


got audited by a Chartered Accountant firm.

No of Units under Different levels of Paschim Banga Sarva Shiksha


Mission Covered & Included in the Compilation of Annual Accounts
SPO/DPO

No of
Units

No. of CLRC
Units

No. of
WEC Units

Total

No. of
VEC
Units

State Project Office

Bankura

45

1896

57

1999

Bardhaman

59

3172

289

3521

Birbhum

32

1610

100

1743

Cooch Behar

26

1346

80

1453

Dakshin Dinajpur

18

782

41

842

DGHC, Darjeeling

14

1323

84

1422

Hooghly

47

2364

292

2704

Howrah

34

1797

108

1940

Jalpaiguri

27

1691

90

1809

Kolkata

10

141

152

Malda

31

1468

42

1542

Murshidabad

41

3056

128

3226

Nadia

37

2142

186

2366

North 24 Parganas

57

2603

680

3341

Paschim Medinipur

69

3230

131

3431

Purba Medinipur

46

2531

93

2671

Purulia

45

1627

47

1720

Siliguri Mahakuma

336

33

377

South 24Parganas

51

3590

152

3794

Uttar Dinajpur

17

948

74

1040

21

713

37512

2848

41094

Total

Maintenance of Books of Accounts and


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

Mainly following books of accounts are


maintained in SPO and DPO

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

Mainly following books of accounts are


maintained in CLRC

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

Mainly following books of accounts are


maintained in VEC/WEC

Only statements of accounts are maintained.


Vrs. are prepared and preserved.
Common Bank pass book is maintained.
Statement of civil works cost is prepared.
UC s prepared.

In SPO and DPOs generally annual accounts is prepared


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

Status of Annual Accounts in West


Bengal for the year 2009-10

All the district accounts have been completed


prior to 30th June, 2010.
In SPO the accounts have been completed in
2nd week of July, 2010. The delay is mainly
due to shortage of staff at SPO Finance.
The consolidation of accounts at SPO will be
done after completion of Statutory Audit at
DPOs and SPO.

Status of Statutory Audit in West Bengal,


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

Practically statutory audit started in 2nd week of June after a


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

Some of the proformas of Books of Accounts


used in West Bengal and Income &
Expenditure proforma and Balance Sheet are
reproduced below
Format of Cashbook

Format of Cheque Issue Register

Format of Ledger Book

Format of Voucher Register

Consolidated Balance Sheet as on

Annex-XXI
(See Para No 108.1)
(Figure in Rs.)

Name of the SIS __________________


LIABILITIES

Schedule

Amount
Current
year

Amount
Previous
Year

ASSETS

Capital Fund

Fixed Assets

Opening Balance
Geants received from Govt.
of India
(a)SSA
(b)NPEGEL & KGBV
Grants received from State
Govt.
(a)SSA
(b)NPEGEL & KGBV

Civil Works :
I)Opening Bal
II)Add transferred during the year
Total
Computer
Furniture
Vehicle
Equipment

Total

Current Assets
Advances outstanding :
(a) Civil Works
i) Op. bal
ii) Advances during the year
Total
Less Transferred to Civil works
Net Balance
(b) Others

Less Excess of Expenditure


over income transferred to
Capital Fund

Net Capital Fund

Balances at districts:
(a)Cash at Bank
(b)Cash in Hand
(c)Balances at School

Advances repayable

Closing Balance at SPO


(a)Cash in Hand
(b)Cash at Bank

Schedule

Amount
Current
year

Amount
Previous
Year

Current Liabilities
Chartered Accountant Firm

Total

State Project Director (SSA)

Total

Annex-XXII
See Para No. 108.1
(Figure in Rs.)

Consolidated Income and Expenditure Account for the year ended ..


Name of the SIS __________________
EXPENDITURE

Expenditure at District and


sub-district level
Teacher Salary
Free Text Book
Innovative Activities
IED
School Maintenance Grant
Management Cost
Learning Enhancement
Programme
Research & Evaluation
School Grant
TLE
Teacher Training
Community Training
Others

Schedul
e

Amount
Current
year

Amount
Previous
Year

INCOME

Schedul
e

Amount
Current
year

Amount
Previous
Year

Interest
(a)SSA
(b)NPEGEL
(c)KGBV
Other Income
Excess of Expenditure
over income transferred
to Capital Fund

State Level
SIEMAT
Management Cost
Research and Evaluation
Supervision and Monitoring
Others

TOTAL
Chartered Accountant Firm

TOTAL
State Project Director (SSA)

Key Gaps/Difficulties in maintenance of Prescribed


Books & Accounts as well as steps to bring
improvements in this activity
Key Gaps/ Difficulties

Sufficient number of accounts personnel are not available at each level


All the prescribed books of accounts could not be maintained at each level due to
insufficient accounts personnel
There is no accounts personnel at CLRC
Most of the VEC/WEC personnel are from non finance background
All the personnel involved in the implementation of SSA program are not trained in
the area of accounts and finance
Accounts in the PBSSM at all level has not been computerized

Steps to bring Improvements

Rationalization of man-power requirement should be done on the basis of present


volume of approved outlay
Maintenance of unnecessary books of accounts or less important books of accounts
should be avoided
All the CLRCs should have an accountant to improve the quality of accounts.
All the persons involved in the finance & accounts should be provided proper
training
A customized accounting package supported by MIS system should be developed &
all the levels should be brought under that fold.

Remarks : The proformas prescribed in FM&P Manual for consolidated


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

THANKS