DC finds irregularities in Red Cross Society accounts | chandigarh | Hindustan Times
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DC finds irregularities in Red Cross Society accounts

chandigarh Updated: Jul 27, 2014 15:38 IST
HT Correspondent
HT Correspondent
Hindustan Times

Investigation, conducted by deputy commissioner (DC) Mohammed Shayin, has found major irregularities in the accounts of the Chandigarh branch of the Indian Red Cross Society.

Shayin is also the chairman of the Chandigarh branch of the society. M Kohli and Associates, a chartered accountant firm, conducted the investigation into the accounts on random basis in the past 10 years.

The firm chose the years-200506, 2010-11 and 2011-12 and submitted a report to the DC dated July 16.

In the financial year 2005-06, it has been found that the “vouchers of months April, May, June show that cheques have been deposited in the State Bank of Patiala (SBoP), but according to the bank statement, no transactions have taken place during these three months”.

There were 868 vouchers amounting to Rs 1.6 lakh.

The report from the chartered accountant firm added that the “bank statement of SBoP from April 1, 2005 to June 30, 2005, was not provided for verification”.

The report finds out that as per explanations given to the firm, the maximum cash retention limit with the society is Rs 2,000.

But it has been found that in 2012-13, in the months of May, June and July on most of the days, the cash used to be retained worth over Rs 3 lakh and on some occasions over Rs 4 lakh. “No explanation has been provided to us regarding the cash retained by society’s official,” said the report.


The rent of canteen is supposed be deposited on 10th of every month. But from 2010-11 on, in as many as eight occasions, the rent was deposited late and penalty was charged.

According to a payment voucher, it has been shown that Rs 20,000 has been deposited in J&K bank, but no corresponding entry has been found in the bank statement.

“The inventory of printing and stationary was neither maintained and nor was reconciled. Further valuation of printing and stationary did not take place, ”said the report.

“The cash book/kedger of 2005-06 was not maintained as per standard accounting practice, so day to day cash in hand cannot be ascertained. No ledger accounts were properly prepared. Annual accounts were prepared on the basis of balancing figures of cash book and ledger of 31.03.2006.”