GOVT. OF ASSAM DIRECTORATE OF HEALTH SERVICES, ASSAM, HENGRABARI, GUWAHATI-36 (State TB Cell) NO. JDTB/RNTCP/Acetts/2000/Pt/1048 Dated Guwahati the 23.11.2015 To The Deputy Director General (TB) Directorate General of Health Services Central TB Division Room No. 533 'C' Wing Nirman Bhawan, New Delhi 110011 Sub: - Submission of Audit Report and Utilization Certificate for the year 2014-15 Sir, With reference to the subject mentioned above, I have the honour to state you that I hereby submitting the Consolidated Audit Report 2014-15 (2 Sets) Please acknowledge the receipt Yours fai fully, (Dr. N. Das) Joint Director of Health Services (T1B) Assan Cum State Programme Officer, RNTCP Hengrabari. Guwahati-36 STATE HEALTH SOCIETY RNTCP, ASSAM CONSOLIDATED AUDITED STATEMENT OF ACCOUNTS FOR THE PERIOD FROM 01/04/2014 TO 31/03/2015 K P SARDA SC - 11, Parmeshwari Building, 2nd Floor Chatribari Road, Guwahati - 781 001 Ph: 0361-2512159, 2634672 Fax: 0361-2634672 Mobile: 98640 60803 email: kpsarda@gmail.com Website: http:/ / kpsardaco.icai.org.in State Health Society, RNTCP Assam INDEX OF DOCUMENTS S.No Particular Reference Page No I Audit Report Annex-XXVof FMM 1 2 Consolidated Receipts and Payments Account Annex-XIV of FMM 1 3 Consolidated Income and Expenditure Account Annex-XV of FMM 1 4 Consolidated Balance Sheet Annex-XVI of FMM 1 5 Consolidation Schedule(working-sheet) Attached Annex-XVIII of FMM (only to Consolidated Receipts and Payments Account for STCS) 2 6 Consolidation Schedule(working-sheet) Attached Format appended at S.No.6 to consolidated Income and Expenditure Account (only for STCS) 2 7 Consolidation Schedule(working-sheet) Attached Format appended at S.No.7 to consolidated Balance Sheet (only for STCS) 4 8 Accounting Policy Annex-1I of FMM 2 9 Management Letter by the Auditor refer to Annex-XXII of FMM 1 10 Schedule of Fixed Assets duly certified to have Format appended at S.No.11 1 been physically verified II Audited SOE Format appended at S.No. 12 12 Reconciliation Statement of Audited SOE with the Format appended at S.No.13 Quarterly Statement of Expenditure 1 13 Schedule of outstanding Advances recoverable Format appended at S.No.14 14 Bank Reconciliation Statement as on 31/03/2011 Annex- VIII of FMM along with Balance Certificate from Bank as on 1 that date 15 Utilization Certificate (Annex -XVIII & XIX of FMM as applicable) 16 Check list of Financial Management (Annex-XX of FMM) 1 17 Management replies (parawise) to the auditor's Format appended at S.No.18 observations, if any. (duly vetted by the auditors) 1 18 Management reply/assurances to the suggestions Format appended at S.No. 19 given by the Auditor in the Management Letter. (duly vetted by the auditors) 1 h. SA RD A &, CQQ SC- 11, Parmeshwari Building, K,,P,, SA R2nd Floor, Choatribari Road, Chartered Accountants Guwahati - 781 001 SI. No. 1 ANNEX- XXV AUDITOR'S REPORT Unqualified Opinion (District/ Health Society, RNTCP) Revised TB Control Project (for Project Financial Statement including SOE) To The Joint DHS (TB) Assam SPO, RNTCP Assam Hengrabari, Guwahati - 36 1. Report on the Financial Statements We have audited the accompanying consolidated expenditure statements/consolidated financial statements of the Revised TB Control Project implemented through Assam State Health Society, RNTCP (under Revised TB Control Society Project) RNTCP - II financed under World Bank as at 31st March 2015. 2. Management's responsibility for the financial statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Society in accordance with the accounting principles generally accepted in India. 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 are free from material misstatement, whether due to fraud or error. 3. Auditor's Responsibility 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 procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, 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 appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the society's internal control. An audit also include luating the appropriateness of Phone: (0361) 2512159,2634672 (0) e-mail: kpsardo@gmail. Mo ile 40-60803 Fax: (0361) 2634672 K SARDAX & COt SC-Il1, Parmeshwarn Building, IT t 2nd Floor, Choatribari Road, Chartered Accountants Guwahati - 781 001 accounting policies used and the reasonableness of the accounting estimates made by management, as 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 our audit opinion. 4. Opinion In our opinion and to the best of our information and according to the explanations given to us, the consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a. In the case of the balance sheet, of the state of affairs of the society as at 31st March 2015 b. In the case of the income and expenditure account, of the deficit for the year ended on that date c. In the case of the receipts and payments account, of the receipts and payments for the period from 01/04/2014 to 31/03/2015 5. Report on other legal and regulatory requirements a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. b. In our opinion proper books of account as required by law have been kept by the society so far as appears from our examination of those books. c. The balance sheet and the income and expenditure account dealt with by this report are in agreement with the books of account. For K. P. Sarda & Co. grda 0 Chartered Accountants Guwahati FRN : 319206E de1f AcC (CA. K P Sarda) Place Guwahati Partner Date 12/11/2015 Membership No. 054555 Phone: 10361) 2512159,2634672 (0) e-mail: kpsarda@gmoil.com Mobile :98640 -60803 Fax: (0361) 2634672 Cm m ,* r- M r- o w C,)00 o CD q* C, * r- l- ~ ~ r- e Z E w)Ne r- *© q mc n m"mr W D L _0 z ø ~~ CD t CD ILe N 5-> o0O 0 N C OC NOO M CO CDt -.O D. O r_ 0 C M cm eT- r_* CM o r- D MLn MLO C C OCD 0 CMC i cý (DT-, CM Co,æ 0 4 Dl CoCO CLOr- C o e-D( z 0 . LOC Cr-c4< C w mrCC co 0 CL <.Do - _ E ( -:: 3c _) m Ch ca o 3 2 :3 ø c øe M :6 s m- ~ L- ø 2~~< .c -cE mcz o -- 3 CP ma0 .as t ~ a L- ø .2 0o 4) ----t . m c o a. - Q) e, m to M - 0 0 0 r . mZ.a 0 u ." Lo r- o- z 0 ø m- ø ø 0. > X E m m . < 0 .9 - E E a - .. z 0) 0L . 0 . . G) C)o to N N *U - QE _~~ -.- (fl 'Z-- ~ - -. - e o o C 0 U) D0 So 00 o - c (N cri Lo -i-caU E-E 4-N 5-© O - - Z - - - - - - - - - - U a . i o w w > > z 00 CO C I a w cý C. OD< 0C 0 N W)< )<2"r.0 N02N. ., N ; . - :;; ~ " r CD V)M"WMR D oC oC >O u)L o m '*L2MW 1 0W 0c)11 *C Dc L - r- t0 W < 5- 5 oO0CoOCo 0 o ' - v - 4o V CD ~Ct~ CN CD O~ z 0- e io o Co Co m cm 0w WZ « Z 06 E) q q* C) q D 0 0c i u;<= OcE O M r r, C>o C C o o CD, Co C l- :Er ' 0 2 U) w CD CCN En Ea u C,)5 .. Z~ z~ a) w. z 2 < C> CN z00ý ~ LO a>L w (LI - i o 一！汗 C) LÉ) C> C> 0 CD M C) Li) 0 <ý l,- 00 0 CM LO N * ýn 00 C> 00 W C-) r- < a> (0 V) 0 C> <5 ai c 3 m cS q* 1,ý r-4 M Lø cm LD 00 C) 00 C) C> m 0 C) 00 (o Cl) U) 0 U) CL Q) w 0 U) U) ø u Q r_ u) ca cu 0 Q) CL =3 m >< D- E 4) U) C) U) Q> L- 4) ; 0 L- o Q cg a) = 4- c U) 0 0 c %.- o m Q> u) 0 ø z E U) CL U) z c 0 CL m 0 40 cm 0 0 ø G) > cr .0 r (n ø ø W U) U) cn U) c L> ø ø C) (D - U) cu ci 0 ca > CL G) «0 ø > > > ø ø ø uj C? cn C.-) i< < w 0 «0 cal < < 0 0 0 0ý =» -t U) Z le Ln CD LC) CD " C) m : CD M CD Cl) CD rq 11* Iýt LO C) cm 00 CO U) E CD W = cn 0 w z C> CO U) oo a> q* C,3 LO z cm CD cm w C> " cm U) Lo W) (o 00 Iýt Iýt CO 00 Nt 0 rý m CO 00 00 r- M M 0 U) 0 (J 0 m - C-3 > 0 > o IL -0 ýL < >< cg to 0 w ø U) ø cg 0 4- ø L- «0 0 ' r, r- M CL o cg ø U) C5 CL r Cg ø ø øý. ø L.. ø ø < L.. ø w cn o E - (D - CL 0 U) 0 cl CL ø o .6, E :S z cu CL -0 >< a 0 Q) 0 4j) - 1-- 01 w q* cm U) IN* 0 C> le " r4 " Lin c> V) LD 0 cm u; cm a> C) Ln w IN* CD V) (D 00 C,) cm 0 0ý a> - a) CD w CO S.NO. 8 ANNEXURE II ACCOUNTING POLICIES Basis of Accounting i. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting policies under the double entry system of accounting ii. Unless otherwise stated here under, the Financial Accounts are drawn up on cash basis. Treatment of Grant in Aid FROM CENTRE/ STATE Grant-in-Aid has been taken into account on actual receipt from CTD/STCS/Others. However, the Grant sanctioned/funds transferred by Government of India / State Society during the year (usually fag end of the year) but actually received by the Society after the close of the year has been credited to Grant-in-aid by debit to the head "Funds in Transit A/c". TREATMENT OF ADVANCES General Advances are charged off to the relevant account head on receipt of adjustment bill/ utilization certificate / actual receipt of goods or services. Grant-in-Aid to NGO(s) Funds released to the NGO(s) are treated as advance and booked as expenditure only on receipt of the utilization certificate from the NGO. For Civil Works Funds deposited with Public Works Department/ contractor is treated as advance at the time of release. On receipt of certificate of stage of completion, it booked as expense to the extent it is certified by PWD/ to the extent due to the contractor based on the stage of completion / the terms of agreement. TREATMENT OF PURCHASE OF MATERIAL (E.G. IEC material, stationery, medicines, lab consumables etc.) The materials purchased are treated as expenditure in full in the year of purchase and the purchase transaction is complete only with the receipt of material and making of the payment. Material supplied by CTD or other donor agencies free-of-cost are not taken into account in the financial books of accounts, and only recorded in the relevant stock registers. Contd... 1/Gw t TREATMENT OF FIXED ASSETS AND DEPRECIATION Assets acquired under the project are valued at historical cost including all direct costs (i.e. purchase price, transportation expenses, installation charges and other expenses incurred for bringing the fixed asset in working condition), incurred prior to its first use. In consonance of financial guidelines, no depreciation is charged on fixed assets. TREATMENT OF INTEREST EARNED IN THE BANK ACCOUNT No funds are kept in the Fixed Deposit. Interest earned on the funds kept in the Saving Bank Account maintained by the Society is accounted as Receipt and treated like Grant-in-aid, to be utilized for the same purposes for which the grant was received and subject to the same norms/guidelines. TRANSFER OF FUNDS TO DISTRICT SOCIETIES fINTER- DISTRICT TRANSFER OF FUNDS WITHIN THE STATE The receiving Society credits the amount under the head 'Intra-State Transfer (Receipts) and the remitting Society Debits the same under the head Intra-State transfer (Payments) and in consolidated accounts these are set off against each other like contra entries. u h ati d Acco SPO RNTCP DHS, Assam Auditor JOINT D SSAM Cum SP RN C ASSAM DIRECTOR CF HEALTH SERVE IENGRABARIL (G WAH ATI-39 4SAM, HENGRABARI, QUWAHAT1111 SC-I 1, Parmeshwori Building, CC 0 2nd Iloor, ChatribariRod G'\ K.P. SARDA & CO- 781 001 Rood. Chartered Accountants S.No.9 ANNEX-XXII MANAGEMENT LETTER To The State TB Officer, SPO RNTCP, Assam Hengrabari, Guwahati - 36 We have complied the attached Balance Sheet as at 31st March 2015, the annexed Income & Expenditure Account and the Receipt & Payment Account for the year ended on that date of Revised TB Control Project implemented through Assam State Health Society, RNTCP (under Revised TB Control Society Project) RNTCP - II financed under World Bank as at 31st March 2015. Based on the audited statements of accounts, we submit herewith the management letter forming part of the Audit Report: 1. It has been that most of the DTCS are not maintaining the Advance Payment Procedure as per the RNTCP Guidelines. 2. Most of the District Accountants are not well trained in the double entry system of Book Keeping. 3. The observations on the financial and internal control procedures as documented in the financial manual of the project as per the guidelines issued by the Central TB Division from time to time have been submitted in the management letters to the respective districts and state society (stand alone), wherever applicable by the respective auditors. For K. P. Sarda & Co. Sada 4 Chartered Accountants uwa adFRN : 319206E td AcC (CA. K P Sarda) Place : Guwahati Partner Date : 12/11/2015 Membership No. 054555 Phone: (0361) 2512159,2634672 (0) e-mail: kpsordo@gmail.com Mobile : 98640 - 60803 Fox: (0361) 2634672 S.No. 18 State Health Society, RNTCP Management Reply to the Audit Observations raised vide Audit report for the year 2014-15 S.No. Audit Observation Management Reply 1. It has been that most of the DTCS are not The point has been maintaining the Advance Payment noted and measures Procedure as per the RNTCP Guidelines. have been initiated. 2. The SOE and Audit Report of most of the districts were not aubmitted to the State ---------DO---------- Cell in a timely manner. 3. Most of the District Accountants are not well trained in the double entry system --------- DO---------- of Book Keeping ASA 01 REI,SIE1,LTH sERVIeE9 Cur SO~~'P. ISA ASUA, RENGRABARI, GUJWARM-TI3f Curn Spo R, CP, ASSAM HENGRABARI, GUWAIiATI-30 To M/s. K P Sarda & Co. Chartered Accountants For K. P. Sarda & Co. C4rtered Acco tants Pa rtner I agree with the Management Replies Parne Signature and seal of Auditors S.No. 19 State Health Society, RNTCP Management Reply to the Audit Observations / Suggestions raised vide Management Letter for the year 2014-15 S.No. Audit Observation Management Reply 1. It has been that most of the DTCS are not The point has been maintaining the Advance Payment noted and measures Procedure as per the RNTCP Guidelines. have been initiated. 2. The SOE and Audit Report of most of the districts were not aubmitted to the State ---------DO---------- Cell in a timely manner. 3. Most of the District Accountants are not well trained in the double entry system ---------DO---------- of Book Keeping SSAM Com SP RNT P, ASSAM DIREC MOAH SERVICES HENGRABARI, GUWAHATI-38 ASSAM, HENGRABARI. GUWAHATI.36 To M/s. K P Sarda & Co. Chartered Accountants For K. P. Sarda & Co. C rtered Acco tants I agree with the Management Replies Partner Signature and seal of Auditors