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.

• 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.

Maintenance of Accounts contd.../-

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 No of Units under Different levels of Paschim Banga Sarva Shiksha Mission Covered & Included in the Compilation of Annual AccountsMission Covered & Included in the Compilation of Annual Accounts

SPO/DPO  No of Units Total

State Project Office 1 - - - 1Bankura 1 45 1896 57 1999Bardhaman 1 59 3172 289 3521Birbhum 1 32 1610 100 1743Cooch Behar 1 26 1346 80 1453Dakshin Dinajpur 1 18 782 41 842DGHC, Darjeeling 1 14 1323 84 1422Hooghly 1 47 2364 292 2704Howrah 1 34 1797 108 1940Jalpaiguri 1 27 1691 90 1809Kolkata 1 10 - 141 152Malda 1 31 1468 42 1542Murshidabad 1 41 3056 128 3226Nadia 1 37 2142 186 2366North 24 Parganas 1 57 2603 680 3341Paschim Medinipur 1 69 3230 131 3431Purba Medinipur 1 46 2531 93 2671Purulia 1 45 1627 47 1720Siliguri Mahakuma 1 7 336 33 377South 24Parganas 1 51 3590 152 3794Uttar Dinajpur 1 17 948 74 1040Total 21 713 37512 2848 41094

No. of CLRC Units

No. of VEC

Units

No. of WEC Units

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 MHRd’s 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

CASH BOOK Dr. Receipt Payment Cr. Date Particulars L.F Vr. No. Cash Bank Date Particulars L.F Vr. No. Cash Bank

Format of Cashbook

Sl. N

o.

Cheq

ue N

o.

Date

Issu

ed to

Amou

nts

(Rs.

)

Vouc

her N

o. &

Da

te

Purp

ose

Sign

atur

e of

Ca

shie

r

Sign

atur

e of

CF

Sign

atur

e of

SPD

Format of Cheque Issue RegisterFormat of Cheque Issue Register

Format of Ledger BookFormat of Ledger BookLEDGER ACCOUNT

Dr. Cr. Date Particulars Folio No. Amount Date Particulars Folio No. Amount

Format of Voucher Register

VOUCHER REGISTER Signature of Authorized Persons

Vouc

her

No a

nd

Date

Part

icul

ars

of

Vouc

her

Amou

nt

Acco

unta

nt

FAO

Cont

rolle

r of

Fi

nanc

e

Stat

e Pr

ojec

t Di

rect

or

Name of the SIS __________________

LIABILITIES Schedule AmountCurrent

year

Amount Previous

Year

ASSETS Schedule AmountCurrent

year

Amount Previous

Year

Capital Fund Fixed Assets

Opening BalanceGeants received from Govt. of India(a)SSA(b)NPEGEL & KGBVGrants received from State Govt.(a)SSA(b)NPEGEL & KGBV

Civil Works :I)Opening BalII)Add transferred during the yearTotalComputerFurnitureVehicleEquipment

Total Current AssetsAdvances outstanding :(a) Civil Works i) Op. bal ii) Advances during the yearTotalLess Transferred to Civil worksNet 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

Current Liabilities

Total TotalChartered Accountant Firm State Project Director (SSA)

Annex-XXI(See Para No 108.1)

(Figure in Rs.)

Consolidated Balance Sheet as on ………

Annex-XXII See Para No. 108.1

(Figure in Rs.) Consolidated Income and Expenditure Account for the year ended ……..

Name of the SIS __________________

EXPENDITURE Schedule

AmountCurrent

year

Amount Previous

Year

INCOME Schedule

AmountCurrent

year

Amount Previous

Year

Expenditure at District and sub-district levelTeacher SalaryFree Text BookInnovative ActivitiesIEDSchool Maintenance GrantManagement CostLearning Enhancement ProgrammeResearch & EvaluationSchool GrantTLETeacher TrainingCommunity TrainingOthersState LevelSIEMATManagement CostResearch and EvaluationSupervision and MonitoringOthers

Interest(a)SSA(b)NPEGEL(c)KGBVOther IncomeExcess of Expenditure over income transferred to Capital Fund

TOTAL TOTAL

Chartered Accountant Firm State Project Director (SSA)

Key Gaps/Difficulties in maintenance of Prescribed Books & Accounts as well as steps to bring

improvements in this activityKey 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 Remarks : The proformas prescribed in FM&P Manual for consolidated Balance Balance Sheet and The Income & Expenditure Account are Sheet and The Income & Expenditure Account are seems to be not as per standard accounting principal and in West seems to be not as per standard accounting principal and in West Bengal these profrmas are not used for preparation of Annual Bengal these profrmas are not used for preparation of Annual Accounts and it is prepared in the proformas Accounts and it is prepared in the proformas shown earlier.shown earlier.

TTHANKSHANKS