Audit Observations Part 2

Part 2

¯     Minutes Book

A separate minute’s book for the Managing Committee Meeting and the Annual General Body Meeting should be maintained and every page of the minute’s book should be serially numbered.

¯     Nomination from the members

All the members of the society must make nominations as required under Rule 25 of the Maharashtra State Co-operative Societies Rules, 1961. Any member, who has not made the nomination, should be informed to do so at the earliest.

¯     Conveyance

It has been observed that conveyance is a perpetual problem for most of the Societies. In most cases, land is not conveyed to the society. The Managing Committee of the Society should take all the necessary steps to transfer the conveyance in the name of the Society to have full legal standing.

¯     Affiliation

Every Society after its registration must apply for the membership of the Housing Federation of the District.

¯     Education Fund

The Education fund must be paid @ of Rs.3/- per member within 3 months after the close of the co-operative year of the society. If the education fund is not paid by any Managing Committee Member(s), the same will be held liable personally for the default.

¯     Statements of accounts of the Society

It is the responsibility of the Managing Committee to present the statement of accounts (Income & Expenditure Account and Balance Sheet) in “N” From prescribed under Rule 62(1) at time of the General Body Meeting.

¯     Audit Rectification

Most Managing Committees of societies are not aware that they should send the Audit Rectification Report in “O” From prescribed under Rule 73 of the rule within 3 months from the date of the completion of the audit to the Deputy Registrar and Auditor.

¯     Audit Classification

This is a novel feature of the Co-operative Audit under the Maharashtra Co-operative Societies Act and Rules. The Auditor, after completing the audit has to classify the Society as A, B, C or D. this classification is supposed to indicate the gradation allotted to the Society by the auditor for a particular year. ‘A’ indicates very good, ‘B’ indicates fair, ‘C’ indicates poor and ‘D’ indicates very poor. The Registrar has issued circulars laying down definite criteria on the basis of which the classification has to be awarded. In this circular the major points covered are relevant for Co-operative Banks. The auditor has to take help for relevant points before classifying housing societies.