Audit indicts PU authorities for inconsistencies in cash book

  • Bhartesh Singh Thakur, Hindustan Times, Chandigarh
  • Updated: Sep 29, 2015 10:48 IST

The latest audit report of the Indian Audit and Accounts Department indicts Panjab University (PU) over improper maintenance of cash book and non-accountal of expenditure of Rs 3.95 crore.

Ensuring income and expenditure tallied

The audit report says that the account manual prescribes that a cash book for the current account shall be maintained by the accounts branch of PU.

At the end of each day, the total diurnal income and expenditure as per the income and expenditure register shall be brought to account daily with relevant registers and bank challans.

The income of challans posted in the cash book shall be tallied with the income register. The cash book shall be totalled, balanced and closed monthly and shall be checked by the superintendent concerned.

Further at the close of the day, the total of income and expenditure for the day as per income register and expenditure register shall be brought into the account in the cash book. The cash book shall be checked in detail with relevant register bank challans by the superintendents concerned.

Disorganised cash book

The audit report, for 2013-14, observed that the cash book of the current account for the period 2012-13 was not maintained as required ibid i.e. the cash book was not totalled, balanced and closed monthly. The cash book was also not checked by the superintendent concerned.

It was further noticed that entries of items of receipts and payments were not tallied with the bank.

“As per the cash book, expenditure in the month of March 2014 is stated to be of Rs 34.75 crore. When tallied with the bank statement the expenditure is Rs 30.8 crore,” states the report.

“The different of Rs 3.95 crore may be reconciled and results thereof may be intimated to audit. On being pointed out, no reply was made by the university,” states the report.

Rent and lease payment due

Outstanding arrears of rent/ lease money from allottees of shops, booths and the dhobi ghat are worth Rs 1.66 crore.

Para 22.4 of the university account manual 2012 prescribes that the collection of rent of houses, shops, booths.

They shall be watched through the rent renewal and collection register.

All the houses, shops, booths etc shall be entered in the register in serial order to ensure not any remain out of account.

Rent of shops, booths shall be payable by the 15th of the month.

If rent is paid after the 15th, interest at the rate of 12% per annum shall be recovered along with the monthly rent.

During the audit of estate branch of Panjab University we noticed that a huge amount of Rs 1.66 crore on account for rent and interest from 83 alllottees of shops, booths and dhobi ghat was in arrears on 31.3.2014.

“The university has failed to recover the amount and these have further accumulated to Rs 93 lakh ( February 2015),” says the report.

Daily closing not signed by superintendent

The scrutiny of the cash book (Canara Bank, plan) revealed that the daily closing of the cash book has not been signed by the concerned superintendent. “The details given in the column ‘particular’ does not indicate the nature of the expenditure. It does not elaborate the particulars of the payments made and a number of times, a lot of vouchers are clubbed together and individual details of vouchers are not given in the body. When it was pointed out, no reply was received,” says the audit report.

Non-clearance of remitted challans worth Rs 1.95 crore

During the scrutiny of cash book of current account, it was observed that a huge amount of Rs 1.94 crore remitted into bank during the years 2010-11 to 201314 through challans were not cleared by the bank upto March 31, 2014.

The auditors asked PU what were the reasons due to which these challans were not cleared by the bank but no reply was furnished.

Books for sale stocked

Publication bureau of PU has not been getting general and text books printed for sale. During the text check of these records, the audit found 46,626 number of books valuing Rs 25.7 lakh were lying in stock since long.

“The university authority failed to assess the sale of books before printing. With the passage of time, condition of the books is likely to deteriorate which point towards bleak chances of its sale.

Sincere efforts by PU are required for the sale of these books to avoid possible loss,” said the report.

Scheme for minorities not utilised

UGC allocated funds to PU under merged schemes during the 12th plan period to the tune of Rs 38 lakh for a coaching scheme for Scheduled Class/ Scheduled Ttribe/Other Backward Classes, minority (non-creamy layers/ equal opportunity cell).

The audit scrutiny revealed that university utilised only 31%, which is Rs 2.92 lakh upto March 2014 out of a grant of Rs 9.5 lakh. “This indicated that these schemes were not implemented effectively and thus the intended beneficiaries (students/faculty) were deprived of the benefits from these schemes,” says the report.

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