I TDITO R'S REPO RT We have audited the accompanying Financial Statements of UTTARAKHAND STATE AIDS CONTROL SOCIETY, DEHRADUN, UTTRAKHAND for the year ended March 31, 2018 which comprises Balance Sheet. Income and Expenditure Account and Receipt & Payment Account and significant accounting policies. Management of society is responsible for the preparation of these Financial Statements in accordance with the law. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedure selected depends on the audttor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessment, the auditor considers internal control relevant to the Society's preparation and fair presentation of the financial statements in order to design audit procedures that are the appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimate made by management, as o well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for the audit opinion except we are not able to give any opinion regarding the utilisation qf frnd & Statement of ex.enditure (SOE) o," NWGO's/periherals units as the rtanagement has informed to us that internal auditor for the JNGO's/perijpherals unit has been aoppointed but audit procedure is still in process. Further epovt 0r the same has not been produced to us. However SPO has consolidated the expenditure cyainst tnd tran.-ferred to VGO,s/pen pherals on the basis (funaudited statement cf' exi;penditure submitted by them. Apart from this there is a di//erence ofjRs. 5,000/- in the balance sheet bruate to last year ie. 20 6-17arid also mentioned b us in. report for that period) that relate to the T77Pool fild due to fulty uoucher Tl system softwore CPT'MS. The same could nol be traced out by the managernent everi no .siecific nbufit feature in software to trace out the same. In our opinion and to the best of our information and according to the explanation given to us, the financial statements give the information required by the Act in all material respects and give a true and fair view in conformity with the accounting principles generally accepted in India subject to our observation & comments given in Annexure-l a) In the case of the Balance sheet. Of the state of affairs of the society as at March 31, 20:18. b) In the case of Income and Expenditure Account of the surplus/deficit for the year ended on as on date; and c) In the case of Receipt and Payment Account, of the cash flows for the year ended on that date. For Singhal Gupta & Co. Chartered Accountants .1 I CA Ranh Shuki Date: 20/08/20 18 (Partner) Plice: Dehradun T RAKHA J STATE A S ONTRO S C, Ty A D B HIVAT ONS F NA N AL YEA R 0 8 «. Ob/ect ciause of the N A CO has been overlookei i the society Priniary object ofthe society is to colaborate with NGOs, women self-hep groups. lä>th based organisation, positive people's network and comim unities. Further society prov des thie drugskits to the NGC's and other collaboratecd members for pro>er compliance of the objec and purpose of NACO. bn somne of the cases t has been observed that object lause has been superseded by the society. For consumnables purchase tender bad been finalised in favour of M/s Akansha enterprises and agreement for the terms & condition bad been signed in March or one year AUer that negotiation bad been done with the party for reducing rate/price ofe onsumables. Further party agreed xvith negotiated rate. In al tlis process fOloxwing points are beyondljustification. Why has U'SAC:S we'ithdrawn/careiimet wvith party after hnalisation? What was the reason of price negotiation when al the aspects regarding quality, price, timely supply and other ternis & conditions bad been fiialsed by the purehase commiättee at the 1 ime of awardine Contract/tender 1o party? Dur-ig le m proce\ e n it petit ion has been led by the party: duc to this . 'he g irid s!, rrdttiioed by h: NACO has lapsed/unuilised dur-ig rii.,- preoe ~o e e same coud be utilsed if proper reasonable steps taken at the tnme of tinlisaion of nder. 2. In most of the caws wime gp h baseen observ d to fransför lic iund to N äY F in for the first half 1hs been rleased bs N ACO on dated 2 %/20 17 but th spre has been disbursed to NR on 16/] 0/201 7 ie. alter 4 months approx. ln such i nation actvitis by the NGUxs depend upon the society flind cannot be justified. 3. Agreement viti the NGIOs hs been execuled on 27' t0]7 Le I the nåd of himancial year. DCi in such proess is beyind justilimin. Page 2 of 6 4. Apart From this it has also been observed that at the end of the year 2018, expenditUre of NGO's has been incorpoated by the society on the basis of eXpCnditure sheet/U.j However books of accounts/ financials/UC have not been auadited/certifled by the chartered accoantant by the NG 0s. B. DEM.4 /VDQ A'ONSMP ON OF COSIBLE.,'S:- I. In relation to demand of consuiables at hospital/centres/blood bank divi O delay has been observed in purchase according to demand of civision. On scrutiny of movement register the hact had been noticed that demand had been generated on 01/11/2017 by ICT1C Doon lospital for cotton (Requirement 3 BAndfes) however the only I bundle had been issued aganst demand. Futher at itat time there was enough quantity (38 bundles) was available in store, In redaton to the above below points are beyond justilfcation- s Reason for non-distribution to the centres while there was availability in the stock for demanded items. Further concerned person told us that issue quatity of consumables depends upon the availability oF stock and exact requAiremnt of consmabe s at cenres. In such situation both the aspects raise the question as / lfavailability of stock is major factor ten consumables shal be procured Within time so that would be available for centres. And unnecessary delay process in procureenlt shall be avoided. I If exact demand is the major factor then inspection of the centres shall be regularly in defail to assess the requirement. 2. Delay process oF purchase against consLImahles triggered the ultimate usage of fund for consumption basis at the time when occasion demand for that. C riO/VNTH.Y END (-L OSLA'G OF ACCO1 7NTS& REPORTLVG AS PER GUIDET VIS 1. MonThly information has not been obtained from the NGO/PLeripherals owing to which monthly reports in relation to overdcue advance to units/staff or u1nsettled advance/ ageing of advances has not been maintained. 2. In respect to settlement oF accounts, adjustments of NO's accounts have been done without confirming the hafance through balance confirmation. Page 3 of 6 P. TYlD:ail UL OF GVV F7Ro INv . At the time of cash withdrawal fron the bank for expenses, estimation of expenses u Id be conputed by the concerned person. 1lowever such practise has lot been foliowed wliiie wihdrawaf of cash from1 bank. During the ycar cash has been withdrawn for the 'xpenseS however no such estimation/ basis of past history expenses review has been produced to us. E. f fM ViNT vNAN' F0 'ASSE£7S (qNNU1f,L x½/'NTENA.CF As per the guidelines isse(s shoLid be under a conipiete comprehensive plan for Preventive Inaiitenance wit hrspec, to varous parameters. A MC agreernent has been executedi but doc enatiELI:\'S \'OT FOLLOWIi-):- i AH the books of accounts have been mentioned in CPFMS software, but quarterly allocations in CIPFMJS has been adjusted in tune of 25 % for cach quarer, 'The variance are as under: Quarter As per Budget targe( As per h tij Variation NACO expellditure CFPMS ( re1 (%) (Rs.in las) (%) - n i lenii u ir Ra. InlWP 1 9 % 230.08 307 24 % 290.63 307.56 24% 290.63 25 % 307,56 -1% 25 % 307.56 8% Total 100 % 1230.23 100 %, 1230.23 Page 5 of 6 2. Dung tie audit it has been observed that no visit of blood bank units has been conducted by the concerned officer. Apart from this tour diary/visit report has not been produced to Us. 3. Operational guidelies of National AIDS Control Organization- NACO have riot been fNowed by the USACS, As pcr the operational manual in relation to the Targeted Intervention programnme, NGO's I B0 shall I triAned for myintaining daily diary. recoding in register, compitid an aorting ad use of dats or proram pmning. Aan Rom this Ycqpoinibih nf oouwcw. oilcer shall be ied to iniUnaill the dCiails Of contracts issued M )s with folowing details; however no such details has been maintained by the society. > Contract Nunber, contract description etc. (antrac amount, expenditure incurred quarter wise with details of total expenditure incurred on contract. > Details of contract amendment clause or extension clause if any. E it.LANCE ChVfRlA L77ON- The opening and closing balance of units are subject to contirmation and also the balance does not match with cash book maintined at unit's level. However mternal audit for the Inanci year 2017-18 has not been coiducted. 2. Reav 'n 16:- the variancc between expenditure incurred at units and booked in Ci isS mwry be as uidr: r fhere is possility that some expenditure may be disalowed by the imternal auditor due to non-genuineneSS or non-prodUCing the supportin vouchers and the same nmy be considered in cash book. I However we are not able to provide any opinion egAding balances of NGO's as audit for the saie are still in process. Q Others reasons can be due to bank interest, bank charges etc. F COUIfPL vcE OF Ff.-NANCIAL CONTROL R ODAULRE:- 1. As per the guidelines issued by NACO in relation to releases of fund state that should be releases af1er obtaining the expenditure of previous quailer. however Siatement of expenditure have not been submitted regularly by the units Despite of fund have been released to the Urits, C2 B, 1NK RECN/ /L le- 1/70"STA EA VT:- 1. Bank reconciiation has been maintained by SACS on monthly basis. 2. Bank reconciliation of the units cannot be comiented due to non-availability of internal audit report. Page 6 of 6 OTHER OBSERVATION A. MAINTENN EXPENSES: I. Generator daily fuel consumnption register has not been naintained on regular basis. The sane issue bad been raised by us in previous audit report but register has not been inainined after 06/02/2018. It is reconimendatory to the society to fix the accountability of proper staffto maitaia aut signed by the iere in charge on weekly basis. Further the saen shall be iwconc i c l on month ly bais is. 2. There is a di1fference of Rs. 5,000/- in the balance sheet (relate to last year i.e. 2016 1 7anl also mentioned by us in report for that period) that relate to he TI Pool fund duc to faulty voucher in system software CPFMS. The same could not be traced out by the management even no specific inbuilt feature in software to trace out the same. 6; . Is Opning balance of Net Current Assets Amouni (Rs.) Sources of funds Amount (Rs.) 497 sxb .00 Utilisation of funds \ l - 24,760,647,43 Bank Interest & Miscel)aneous Receipts Amount (Rs.) Interest from Bank 837,582.41 |Ciosing bala*ce ofNet Current nus iiimi 38,291,859,66 -J- 르…郞 - ! 」 건 ! ; 1 ·，「··「…：，■nrH&＼·― り ] - - - 【 - - 【 I ;&\1 ■ ・（------(1戸（…に 1 〕 I l 1 〔 ／〕r!＿一究〕 〕 l ! � � � ____.�_- � �' с ы ас � � � � � . ^ .и р � � .� р � t� eq аз � аС �: � " - " • � �r мrri _ � . �Г� сг' ' . т) . 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Sir, In reference to NACO letter no. M-13013/1/2018-NACO (Fin), Daled: 15"' March 2019, å i,; lo inform that CA firm- M/s. Singhal Gupta & Co. was appointed as Statutory Auditor of [Jtlariklhiliad SACS för the FY 20!7-18. The firm has completed and submitted the Statutory Audit Report ior (lie VY 2017-18. ln this regard required information is as under- Firm's Registration Nuiber (FRN) : 004933C Member's Name : CA Rahul Shukla Membership Registration Number (MRN): : 415276 It is also informed that we are already send above inflormation by c-mail on dated: 23 January 2019. This is for information and necessary perusal. Thanks. Your Siricerely, (Dr. A. Senger) Addi. Project Director, Uttarakhand SACS CC- Under Secretary (Fin.), NACO, Gol for information. Scanned by CamScanner