Delhi govt will hire 40 CAs to audit records of 1,700 private schools

The report by the CAs will be sent to officials of the Directorate of Education (DoE) to give final nod for fee hike, if required.

Delhi government will engage 40 charted accountants (CAs) to audit the financial statements of about 1,700 private schools of last three years. The government will finalise the names auditors by the end of this month. The aim is to put a curb on “unnecessary” fee hikes by the schools in Delhi.

Delhi government will engage 40 charted accountants (CAs) to carry out auditing of about 1,700 private schools’ financial statements of last three years. (Burhaan Kinu/HT PHOTO)

In December, the government had announced that it would audit the accounts of all private unaided recognised schools after it received several complaints from parents about unnecessary fee hikes.

The report by the CAs will be sent to officials of the Directorate of Education (DoE) to give final nod for fee hike, if required.

“We are in the process of hiring the CA firms and CAs. We will need around 40 CAs and the auditing will start by next month,” an official from the private school branch in DoE said.

The official said after the CAs submit their reports then a copy will be sent to the school for their response. “After going through the report and the comments of the school, the DoE will take the final call on whether fee hike needs to be there,” the official said.

The official said the process will be finished by March, before the next academic session starts in April.

Last year, the government had conducted audit of around 150 private schools, which were built on Delhi Development Authority’s (DDA’s) land. The schools build on DDA land need prior permission of the government for any fee hike.

The government had found in the audit of these schools that many institutions siphoned off money collected through fees.

“Many schools (DDA) were found to have spent huge amount of money on developing school building even though various court orders have made it clear that the schools can only spend on furniture, fixture and equipment. Some schools have also done construction of other buildings under the society using school fees,” Atishi Marlena, advisor to education minister Manish Sisodia had said.

Marlena said the Delhi School Education Act and Rules (DSEAR) 1973 allows for conducting audit of private schools if the DoE director is not satisfied with the fee estimate given by the school.