RMSA MODEL SCHOOL AUDIT REPORT FOR TRE YEAR 2013-14 3: MODEL SCHOOL PAN-AACFU8940P ST NO. AACFU8940PSDOO1 UMESH R. MULIMANI & CO, CHARTERED ACCOUNTANTS Auditor's Report RASHTRIYA MADHYAMIKA SHIKSHA ABHIYAN SAMITHI- KARNATAKA- MODEL SCHOOL BANGALORE We have examined the attached Balance Sheet of RASHTRIYA MADHYAMIKA SHIKSHA ABHIYAN SAMITHI-KARNATAKA, MODEL SCHOOL, New Public Offices, Nrupatunga Road, Bangalore - 560 001 as at 31s March 2014, Receipt and Payment Account, Income and Expenditure Account for the year ended on that date in which are incorporated the audited financial statements of State Project Office-Bangalore, 74 Model Schools are audited by us. These financial statements are the responsibility of the management. Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted the audit in accordance with generally accepted auditing standards in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion based on audit conducted by us according to information and explanations furnished to us during the course of audit, we report that, 1) The accounts are maintained under cash basis of accounting system in double entry 2) The project expenditure are on the basis of audited Receipts and Payments Accounts of individual districts implementing the project 00and other implementing offices. 3) Attention is drawn tb the following items contained in the schedule- Significant Accounting Policies and Notes attached to and forming part of financial statements SI. No 11 representing the management report of outstanding advances amounting to Rs 6,00,703/- at Talukas- Model School Are subject to reconciliation and confirmation. 4) Subject to above and comments included in our Management Report of even date, we report that: a) PAB approval is available for the year 2013-2014 in respect of the expenses incurred for Model School. b) Incorporation of Expenditure incurred at Taluka levels - Model School have been initiated in the books of accounts SPO- RMSA, Karnataka. c) In respect of balances that are shown under Current Liabilities, Current Assets and Loans and advances, confirmation of balances have not been obtained and are subject to reconciliation UL Madki Complex, I Floor, Old Bus Stand Road, Near n, BIDAR - 585 401. Telefax : 08482-221214, Cell : 9448568202 - E-mail : urmulimani@gmaiI.com & urmulimani@rediffmai.com Subject to above, notes attached to and forming part of the accounts, we report that: (a) The goods, works and services procured for the purpose of projects are in accordance with procurement procedure prescribed by State Project Office, RMSA-Karnataka (b) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. (c) The Balance Sheet and Income and Expenditure Account referred to in this report are in agreement with the books of accounts maintained at SPO (d) In our opinion and to the best of our information and according to the explanations given to us, Balance Sheet, Income and Expenditure Account read together with the Schedules and Notes thereon give a true and fair view i) In so far as it relates to Balance Sheet of the state of affairs of the Rashtriya Madhyamika Shiksha Abhiyan-Karnataka as at 31-03-2014 and; ii) In so far as it relates to Income and Expenditure Account, the excess of Income over Expenditure for the year ended on that date Place: Bidar L'" For Umesh R Mu ani 'Co. Date: 02-08-2014 Chartey,edAcq6pntan .o, i579 en CA ll R'R,Mulimani aA * Partner MNo.115579 A FRN-124419W\ 2 PAN-AACFU8940P ST NO. AACFU8940PSDOO1 UMESH R. MULIMANI & CO, CHARTERED ACCOUNTANTS CERTIFICATE We have examined the attached Balance Sheet of RASHTRIYA MADHYAMIKA SHIKSHA ABHIYAN- KARNATAKA, New Public Offices, Nrupatunga Road, Bangalore- 560 001 as at 31-03-2014 and Receipts and Payment Accounts, Income and Expenditure Account for the year ended on that date in which are incorporated the audited financial statements of State Project Office- Bangalore, 74 Model Schools are audited by us. These financial statements are the responsibility of the RMSA. Our responsibility is to express an opinion on these financial statements based on our audit. Subject to our audit report of even date and notes attached to and forming part of financial statements, management report of even date, we report that 1. Goods, works and services procured for the purpose of projects are in accordance with procurement procedures prescribed by State Project Office, RMSA- Karnataka 2. the resources are used for the purpose of the project, and 3. the expenditure statements and financial statements are correct We have relied upon the supporting documents and records, subject to our audit report of even date and notes forming part of financial statements, we are of the opinion that the financial statements audited can be relied upon to support reimbursement under the aforesaid loan/credit agreement Further to the above, in our opinion and to the best of our information and according to the explanations given to us, it is certified that Income and Expenditure account and Balance Sheet read together with the Management Report, Schedules and Notes represent a true and fair view of Implementation (and operations) of the project for the year ended on 3 It March 2014. Place: Bidar U For UmeshR M mani[a-Co. Date: 02-08-2014 Charter tants ss9 CA R ulimani 81DAR Partner M No.115579 ' Acco FRN-124419W 3 Madki Complex, I Floor, Old Bus Stand Road, Near Ganesh Maidan, BIDAR - 585 401. Telefax 08482-221214, Cell : 9448568202 - E-mail : urmulimani@gmail.com & urmulimani@rediffmail.com RASHTRIYA MADHYAMIKA SIIKSHA ABHIYAN SAMITH- MODEL SCHOOL KARNATAKA- New Public Offices, Nrunathunga Road BANGALORE - 560 001 Significant Accounting Policies & Notes Forming part of Financial Statements for the year ended on 31st March 2014 A) Significant Accounting Policies 1. The Accounts are maintained under Cash basis of accounting and financial statements prepared accordingly. 2. The expenditure are accounted as expenditure of the RMSA- Model School accordingly, those expenditures have been routed through income and expenditure account 3. All the expenditures at Sub-District level are accounted on the basis of Utilization certificates issued by Model School. Expenditure at SPO level are accounted on the basis of utilization certificates 4. Bank balances with all implementing agencies of RMSA -MODEL SCHOOL are subject to confirmation. 5. Salary to Head Master and Assistant Teacher is not passing through RMSA School cash book therefore it is causing very difficult to trace exact amount of salary. 6. Non RMSA grant is released to RMSA grant account it is causing us to verify exact amount of RMSA grant and Non RMSA Grant 7. Advances outstanding at SPO & Model School, is subject to reconciliation and confirmation. 8. Previous year figures have been regrouped wherever necessary to confirm with presentation of current year figures. Place: BidarULFrmeR I Dae 09-0-20 14 ForU e ~~i .&C Dat: 0407201 Chartered Aco tants e '8oAI CA ulimani Partner 4/Accen%04' M No.115579 FRN-124419W 4 PAN-AACFU8940P ST NO. AACFU8940PSDOO1 UMESH R. MULIMANI & CO, CHARTERED ACCOUNTANTS CERTIFICATE This is to certify that we have gone through the procurement procedure used for the state for RMSA Model School and based on the Audit of the records for the year ended on 31-03-2014 for the RASHTRIYA MADHYAMIKA SHIKSHA ABHIYAN-KARNATAKA, New public office, Nrupathunga Road, Bangalore- 560001 and inputs from the District Audit reports, we are satisfied that the procurement procedure prescribed in the Manual on Financial Management and Procurement under RMSA has been followed Place: Bidar For Umesh R Date: 02-08-2014 Chartered cou nts a oAR CA U R ulimani e0 Partner A as M No.115579 FRN-124419W 5 Madki Complex, I Floor, Old Bus Stand Road, Near Ganesh Maidan, BIDAR - 585 401. Telefax :08482-'22)1A ii A4AQ202 - E :-rmaimni@amaitrom & urmuimnird. -fAitr- MANAGEMENT REPORT RASHTRIYA MADHYAMIKA SHIKSH A ABHIYAN SAMITHI- KARNATAKA- MODEL SCHOOL BANGLORE We have examined the attached Balance Sheet of RASHTRIYA MADHYAMIKA SHIKSHA ABHIYAN SAMITHI- KARNATAKA, MODEL SCHOOL New public office, Nrupathunga Road, Bangalore- 560001 as at 31't March 2014. Receipts and Payments Accounts & Income and Expenditure for the year ended on that date in which are incorporated the audited financial statements of State Project Office-Bangalore, 74 Model School audited by us, based on audit conducted by us according to information and explanations furnished to us during the course of audit 1. Capacity building Measures: In book keeping and maintenance of records As observed by us, with the audit of scheme accounts the personnel in charge of accounts at those levels are not fully aware of double entry system of book keeping and importance of capturing accounting information. Qualified and experienced staff in the line of maintenance of accounts on double entry system of accounting is not in charge of accounts and maintenance of accounts. Many of the accounts in charge are not fully following the provisions in the manual on Financial Management and Procurement and also Chart of Accounts. These personnel in charge of accounts need more training in keeping the scheme accounts in double entry system of accounting. Sustained measures are to be taken to create awareness as to the role and responsibility in implementation of the project account and periodical financial reporting 2. Existing internal control As observed by us existing controls in place relating to financial operations need to be reviewed and strengthened. Opening balance of project funds at various project implementing agencies, release of grants from time to time to implementing agencies, utilization of those grants and closing balances at implementing agencies at the close of the financial year are to be reconciled at periodical intervals. End use of the project funds is to be closely monitored. Adequate care is to be exercised in accepting and analyzing the Utilization Certificates issued by project implementing offices for Utilization of project funds. Guidelines regarding capitalization of assets created out of project funds though available in the Finance Manual not followed by some of the implementing offices under RMSA. Physical verification of assets, accounting of such assets, maintenance of assets register and timely capitalization of assets created out of project expenditure is to be ensured There should be periodical monitoring and review of project expenditures incurred at the level of Model School by concerned project authority. Annual financial statements prepared on the basis of expenditure incurred at the level of Model School are to be reviewed periodically for its authenticity and accuracy. 6 t dA 3. Implementation of Financial Management Manual In some of the cases, the books of accounts and other records maintained at all levels are as per procedures prescribed in manual on Financial Management and Procurement. In most of the accounts in respect of RMSA transactions are not maintained fully on Double Entry Method based on Mercantile System of accounting as required by Financial Management manual. In some of the cases, the following books of accounts and other records as suggested in Financial Management Manual are not maintained + General Ledger + Journal Proper Register + Advance Register e' Vouchers have not been produced for the expenses incurred in some of the Model School + All Model School amount is drawn by way of self cheque * Model Schools are spending un necessary amount on Minor Repairs and it is very high in some cases, SDMC approval is not made available at the time of audit 4. Expenditure under the scheme The funds released to the district by State Office are initially classified as advances and the same are indicated as such in the books of accounts. These advances are adjusted based on audited Receipts and Payments account of Individual districts. 5. Chart of Accounts: to be adopted by implementing offices There is a need to adopt chart of accounts in its entirety to be used by various implementing agencies to ensure uniformity in reporting and accounting. The chart of Accounts should be well documented and the officers in charge should be informed in writing about the existence, implementation and adoption of the same. This would enable to capture the inputs in the required format for budget exercise and for monitoring funds and project activities apart from uniform reporting of project performance. This would facilitate periodical audit review and finalization of annetal accounts. Further, this would also facilitate reporting to stakeholders and for preferring reimbursement claims. This has not been ensured by any of the implementing offices and the same should be also be strengthened at State Project Office. 6. Reconciliation of Funds released vis-A-vis Receipts by Implementing Offices Periodical reconciliation of grants released and the receipts of the same by the implementing offices are to be carried out at the level of implementing offices- activity-wise ie., project component -wise. This would facilitate taking timely action for any miss-match of funds and to prevent diversion of funds without proper authorization for activities other than envisaged including miss-utilization of funds 7 jM No.1f59)- BIDAR 4d4 cv Subject to the above and our Audit Report on consolidated financial statements of even date read together with notes thereon, we report that, a) The existing accounting system with regard to book keeping of the project transaction, release of funds and monitoring of their utilization are in accordance with accepted norms. b) The office of the SPO and implementing office have prepared the Bank reconciliation statement and there are no long outstanding entries lying unadjusted expect as stated in the Audit Reports of various Model School. c) The internal control over financial transaction and projects activities are required to be strengthened. d) The advances shown at the end of the year are subject to reconciliation and confirmation. Suggestions S Maintenance of the accounts at the level of Model School is to be strengthened to ensure accuracy of the expenditure on the projects activities and financial reporting. The person in charge of the accounts at Model School level should be imparted adequate training in maintenance of accounts and periodical reconciliation. * Periodical reconciliation of funds released from SPO to Model School is to be carried out. * Salary paid to HM and Asst Teacher shall be routed through RMSA Cash book * Exclusive Bank account should be maintained for RMSA Grant * There Should be a proper Authority to watch expenditure on Repairs and Office contingency expenses * General Ledger, Cheque issue register, Assets and Stock register shall be maintained * Importance should be given for maintenance of proper vouchers for funds released to implementing agencies down below them and for their own expenditure. * There should be in place periodical supervision and monitoring of funds received vis- &-vis funds released. * There should be in place checks and balances for supervision and monitoring of transactions of implementing offices down below district level. * Periodical review of financial progress vis-a-vis budget estimates is to be carried out Place: Bidar For Ume~ R Mulimani. C>.. Date: 02-08-2014 6Chartered s BIDAR P CA Mulimani Partner erpd s M No. 115579 FRN-124419 8 RASHTRIYA MADHYAMIK SHIKSHA ABHIYAN - KARNATAKAO UTILISATION CERTIFICATE FOR THE YEAR ENDING 31ST MARCH 2014 Annexure - IV NAME OF THE SCHEME: MODEL SCHOOLS - RECURRING SL. NO PARTICULARS CENTRAL SHARE STATE SHARE TOTAL 1 Opening Balance at the beginning of the financial year -1,29,19,125 43,07,675 -1,72,26,800 1.1 Advance With RMSA 2 Details of Funds Received during the year 2,20,00,000 2,20,00,000 2.1 Fund Received vide Sanction No. & Date 3 Total Fund Received 2,20,00,000 2,20,00,000 4.2) O terests 3,08,91,266 1,02,97,089 4,11,88,355 4.2) Oter Recipt 5 Total Fund Available(1+3+4) 1,79,72,141 2,79,89,414 4,59,61,555 6 6.1) Expenditure(Grant in aid general) 6,60,14,110 2,20,04,703 8,80,18,814 6.2) Expenditure(Others) 7 Total Expenditure (SI. No. 6+7) 6,60,14,110 2,20,04,703 8,80,18,814 Closing balance at the end of the financial year (as on 31.03.2014) 01) -4,80,41,969 59,84,711 -4,20,57,258 1 Certified that out of Rs.6,78,85,167/ (Rupees Six Crores Seventy Eight Lakhs Eighty Five Thousand One Hundred sixty seven only) of Grant-in-aid Sanctioned during the period ending 31.03.2014 i.e., From 01.04.2013 to 31.03.2014 towards Recurring Activity in favour of Rashtriya Madhyamik Shiksha Abhiyan - Karnataka - MODEL SCHOOL under Government of india and State Government letters of No and date give above, Rs, 0/- (Rs. Zero Only) towards Refund of Advance from RMSA and Bank Interest of Rs. 4,11,88,355/- (Rupees Four Crore Eleven Lakhs Eighty Eight Thousand Three Hundred Fifty Five only), and Unspent Grants as on 01.04.2013 of Rs.-1,72,26,800/- (Negetive Balance of Rupees One Crore Seventy Two Lakhs Twenty Six Thousand Eight Hundred only) aggregate of Rs.9,18,46,722/- (Rupees Nine Crores Eighteen Lakhs Forty Six Thousand Seven Hundred Twenty Two only) a sum of Rs.8,80,18,814/- (Rupees Eight Crores Eighty Lakhs Eighteen Thousand Fight Hundred and Fourteen only) has been utilised during the period 01.04.2013 to 31.03.2014 for which it was Sanctioned, and balance amount of Rs. 38,27,909/- ( Rupees Thirty Eight Lakhs Twenty Seven Thousand Nine Hundred Nine only) remaining unutilised (including Bank Balance and Advances) at the end of the year will be utilised for the RMSA-MODEL SCHOOL Programmes. 2 Certified that I have satisfied myself that the conditions on which the Grant-in-aid was sanctioned have been fully fulfilled/being fulfilled and that I have exercised the following Checks to see that the money was utilised for the purpose for which it was sanctioned. Kinds of Checks exercised a) Audited Statement of Accounts b) Utilisation Certificate c) Progress Report Date : 02.08.2014 STATE P T DIRECTOR Place : Bangalore MSA- I 0 MsRAMI SYED SALEEM, IAS., AUDITORS CERTIFICATE State Project Director We have verified the above statement with the books and records produced before us for our v§MnoV S 1Athkha Abbiyan same has been drawn in accordance there with atAbiya atunga Road,angalore - 560 001 FOR UMESH R ULIM NI AND CO Chartered FRIN :0124 Date: 02.08.2014 - ! a Place : Bidar CA U ULIMANI PARTN Membership No. 15579 RASHTRIYA MADHYAMIK SHIKSHA ABHIYAN - KARNATAKA" UTILISATION CERTIFICATE FOR THE YEAR ENDING 31ST MARCH 2014 Annexure - IV NAME OF THE SCHEME: MODEL SCHOOLS - NON-RECURRING SL. NO PARTICULARS CENTRAL SHARE STATE SHARE TOTAL 0pening Balance at the beginning of the financia year 1 as on 01.04.2013 83,80,00,000 31,13,45,000 1,14,93,45,000 2 DetaiPs of Funds Received during the year - 4,58,85,167 4,58,85,167 2.1 Fund Received vide Sanction No. & Date 3 Total Fund Received 4,58,85167 4,58,85,167 4 Other Receipts/interest: 5 Total Fund Available(1+3+4) 83,i0,00,000 35,72,30,167 1,19,52,30,167 6 Expendture (Grants for Creation of Capital Assets) 33,24,35,485 11,08,11,828 44,32,47,313 Total Expenditure 33,24,35,485 11,08,11,828 44,32,47,313 Closing balance at the end of the financial year (as on 8 31.03.201 ) 50,55,64,515 24,64,18,339 75,19,82,854 1 Certified that out of Rs. 0/- (Rupees Zero only) of Grant-in-aid Sanctioned during the period ending 31.03.2014 i.e., From 01.04.2013 to 31.03.2014 towards Non-Recurring Activity in favour of Rashtriya Madhyamik Shiksha Abhiyan - Karnataka - MODEL SCHOOL under Government of India and State Government letters of No and date give above, Bank Interest of Rs. 0.00/ (Rupees Zero only), and Unspent Grants as on 01.04.2013 of Rs.114,93,45,000/- (Rupees One Hundred Forteen Crores ninety Three Lakhs Forty Five Thousand only) aggregate of Rs.1,14,93,45,000/- (Rupees One Hundred Fourteen Crores Ninty Three Lakhs Forty Five Thousand on y) a sum of Rs. 44,32,47,313/-(Rupees Forty Four Crores Thirty Two Lakhs Forty Seven Thousand Three Hundred Thirteen only) has been utilised during the period 01.04.2013 to 31.03.2014 for which it was Sanctioned, and balance amount of Rs.70,60,97,687/- (Rupees Seventy Crores Sixty Lakhs Ninety Senven Thousand Six Hundred Eighty Seven only) remaining unutilised (including Bank Balance and Advances) at the end of the year will be utilised for the RMSA - MODEL SCHOOL Programmes. 2 Certified that I have satisfied myself that the conditions on which the Grant-in-aid was sanctioned have been fully fulfilled/being fulfilled and that I have exercised the following Checks to see that the money was utilised for the purpose for which it was sanctioned. Kinds of Checks exercised : a) Audited Statement of Accounts b) Utilisation Certificate c) Progress Report Date : 02.08.2014 STATE PRO J DIRECTOR Place : Bangalore W A-RS AUDITORS CERTIFICATE State Project Director ha e r ve statement with the toaks and records produced before us for N fy Abbiy I- rupatunga Road, Bangalore -560001 FOR UMESH R LIMAI AND CO Chartered Accohothtr- FRN NO: 0174 w Date 02.08.2014 $4 CA U LIMANI Place : Bidar PARTNE Membership No. 5579 &！님． && 「 ∼ !,,，즌 ㅇ ㅇ 요 && w CD cn co CD cý 00 CD r-4 ro 3 < er r4 w 0 CD CL ti cc aj < 0 di aj 0 cm u) 0 r- 0 cc Ln u - 2 E VI 0 cr < 0 u rL vi cs a- C3 CI) < In 0 0 ca W 0 r-i 00 46 u < m 0) UD M -1 -C ro rn m u :2 bo 16 -, > 2 M n I c vi < Lu vi nr: 0-1 0 > r ýD r o C3 < ca 0) 1;: < zw CD ,0 n m Ln Ln 0 , M 2 U a - ci > c < W -U M tt VI Ln a- 4 CD 00 cc < ýD D m CD Ln m N Ln et 0 CD r4 CD en m m - 2 >- N t, f14 cu CI) C> en rý -E -4 < 0 CD < "l V3 < CD n r, Ln m w cý n La Ln -i LIUU l- q Ci -i ri 0,ý Oý z CD ul Ln m Ln nj M: i) Cý ný cq ný -t > < 6n 0 rn 00 X 2- w 00 rlj u cci -t LQ Ln z < en -i z co m > Lu Ca cc u F- :7 u 0 in it CL co C> E E j-_ CD Ko 0 M ýLLJ i -- a) UJ -W co få aj U IV s Ir id Ln Ca -,4 < < 0 cc 2 t m c) > ýs; r-4 m CO to r4 u CL - en m > > fi ID Z L? u (D un CD 0 < < U 0 CD Ln CD CD Ln r: f14 ro CD (U 03 Ci 01ý u r-4 KD er- di Ln u p, aý m L,, n C3 10 co ej ……：；份 굽 &- ㅇ O O (O 驢魯 · O ㄴ O CU 1ㅁ白 Iㄷ 《볍 띠 ·님 쩍다 ‘뱁 O 「匕 枕· 楡 「 그 ∼ 《탭 a n ㄴ Z CD Ln c^ 0 el] en - cn en oc cý 16 en en go m OM 7- CD > M cr J:: CD cn CD IZ >, 85 cu bZ L4 0 0 M- fý3 0 V5 cz 46 aj 0, 0, -9 x be På 4 :i < x m ru to X 1,3 0 < 414 $- r Cý- w U' _c uj o -14 4 aý > a, cc x 44 > < cp Lu 00 CD Ln C1,1 CC CD CD U-5 en Ln CD w m m n m m 11, m n 00 0 n 0,ý ýD w cq CD >- vý rý 1-1ý 06 ý>6 ý6 ý6 cý Ln rn tý CD in 00 it) ýt r4 K rý uý 0 z f 0 5 c) 0 c) < (n CD Ln 0 0 CD CD R Cý t t Ln d c) l* 0ý C) CD 00 crý r2 06 cý rq in 4n < cn cn cu > cu 90 ci > bo 0 w w rn C3N åný en .ý-4 ,, m 00-1 - v en r_ 4 0 0 tý r4 CD r- it =1 tt U-S U bli > x x bt _m U4 ý4 (n z cu å3, < -ä m W > > ed M älj 0 0 < u i z CD 00 ID CD 0 CD D 00 m en CD rn 00 CD (D CD in CD Ln c -1ý CD in m LQ en Lt") w OU CN cý crý ce clý Lrý rlý 00 1-4 CD en t 0 C D w e 0 r O 21 CO C p Ln ýL en n '0' uÈcu × ×_ cc et 3c 3 Q4 E - -- r, P2 r, x c r. -9 l 0 fð. ,; 6 u C; cc c : u boo C4 c;fll " = fl 0" Ml td~~0 ~ '0 LOO Q D O 00 CD M 3 "3ý "3 fl 33 u cc r- CDl g~ al cn r n n - NCf >lo ~ fU f f l ,, f o- ClQ -U f Lj 0 LO 0 Q ~ c)( lO0 CD LOL 0 t,, O Oit i OC Ln N CD-r4On 0nL go g flCD flD 긱 ,,, 、、甌；方 0; ,,;,，눗《뿍． -，닌 ，江 ,，。》；딩 CD CD 0 m CD c CD 0 W , 8 8 ,1 Cq cq q CD -1 oq 71 4ý no 0 I cs r- ON ob -t Ln oc r, t CD LO C:3 0 m . . . . . . . cl TT CD C" ci C) C:3