Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com ANDHRA PRADESH CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS AUDIT RULES, 1987 CONTENTS 1. Short title 2. . 3. The auditor shall also report on the following mattersrelating to accounts 4. . 5. . 6. The auditor shall append to his report 7. . 8. . ANDHRA PRADESH CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS AUDIT RULES, 1987 In exercise of the powers conferred by sub-section (2)of Section 60 read with Section153 of the Andhra Pradesh and HinduReligious Institutions and Endowments Act,1987 (Act No. 30 87 ) theGovernor of Andhra Pradesh hereby makes the following rules, t h e samehaving been previously published as required by sub- section (1) ofSection 153 of the said Act. 1. Short title :- These rules may be called the AndhraPradesh Charitable and Hindu Religious Institutions and EndowmentsAudit Rules,1987. 2. . :- The audit of the accounts of a Charitable or ReligiousInstitution or Endowment under Section 58 shall be made in the Officeof the institution concerned or at such other place as the Commissionermay, by special order, direct. 3. The auditor shall also report on the following mattersrelating to accounts :- (a) whether the accounts and registers required to be maintainedby the Commissioner are kept; (b) whether all the immovable properties and rights, suchas fishery rights, right to long grass in village tanks, right tousufruct of trees, and the like, not used by the institution for itspurposes have been leased or licensed out in the prescribed mannerand to the advantage of the institution and lease deeds or deeds oflicence have been got executed in all cases and registered, wherenecessary, and if in any cases, such properties or rights have notbeen leased or licensed or lease deeds or deeds of licence have notbeen taken what such cases are: (c) whether the various items of income or amounts dueto the institution have been realised at the proper times and whetherdue steps to recover the amounts overdue have been taken and, if not,in which case such action has not been taken; (d) whether any claims have become barred by the law oflimitation and, if so what such cases are and the person or personsresponsible for allowing the claims to become time-barred and thequantum of amount to which each person is responsible; (e) whether all collections have been brought into accountwithout delay; (f) whether any claims have been written off and, if so,to what extent and under what authority and the reasons therefor asrecorded by the authority ordering the write off; (g) whether the expenditure is in accordance with the sanctionedbudget and, if there are deviations from such budget, what these deviationsare and if there is excess expenditure over budget sanctions, whetherthe same has been duly approved or ratified by the competent authority. (h) whether every item of expenditure has been sanctionedby the authority competent in that behalf and is supported by propervoucher. (i) whether there is any item of expenditure which, inthe opinion of the auditor is, prima facie, Dextravagant; (j) whether there has been any diversion of funds or propertiesfor purposes other than those of the institution. (k) whether advances made have been recouped or adjustedwithout delay and advances pending adjustment, outstanding on thedate of audit; (l) whether moneys not required for immediate expenditurehave been deposited in banks and surplus funds have been invested; (m) whether all donations or offerings in kind are accountedfor and whether donations made as contributions for specific purposesare earmarked and in other cases are invested in interest- yieldingsecurities; (n) whether in respect of building works, check measurementwas done by the competent authority before final payment was madeand whether the necessary subsidiary accounts and registers such asmeasurement books, stock books, muster rolls, tenders and agreementare kept; (o) whether securities have been obtained from the staffin charge of collections or valuables and security bonds got executed. (p) whether proper safeguards have been made to preservethe costly and valuable jewellery and rare pieces of art or imagesin safe custody; (q) whether there have been any violation of any of thescheme provisions, if the institution is governed by a scheme or ofthe rules framed under notification if the institution has been notified; (r) whether the sanction of the prescribed authority hasbeen obtained for the creation of the post and scale of pay and allowancesthat the holder of the post possesses the requisite qualificationsand are within the age limits prescribed and that in t h e case of freshentrants that certificates of age, health and vaccination are enclosedto the first pay bill. (s) whether claims for travelling allowance are in accordancewith the rules prescribed and that the travelling allowance billsare approved or counter-signed by the prescribed authority. (t) whether a dittam is prepared and got sanctioned bythe prescribed authority and that the expenditure in this regard isstrictly in accordance with the sanctioned dittam; (u) whether in respect of all refunds of deposits, theclaim from the party for the refund is forthcoming, that the amountreferred is supported by corresponding credit in the concerned depositregister, that the fact of refund is duly recorded against the concerneditem in the deposit register and that the payee's acknowledgment,stamped wherever necessary, is obtained from the payee. (v) whether the annual requirements of the various suppliesand services are assessed at the beginning of the year, those tendersor quotations have been invited or called for in respect of all suppliesand services in the prescribed manner, that the rules regarding invitationof tenders, obtaining of earnest money and security deposits and executionof agreements are strictly adhered to. 4. . :- The auditor shall verify the cash balance and statein the report whether the cash was readily forthcoming for verification. 5. . :- (1) The auditor shall, in the course of audit, verifythe debentures, share certificates, Government bonds or fixed depositsand the securities and the bank pass books belonging to the institutionand report whether they are found correct and they are readily forthcoming. (2) The auditor shall report whether any investment orsecurities have been encashed before the date of maturity and, ifso, whether such encashment was done with the previous permissionof the competent authority or not and whether the proceeds after suchencashment have been spent for the purposes for which the encashmentwas reported and sanctioned for. It shall be verified whether the income tax exemption certificateswere obtained. (3) The auditor shall also verify whether an inventoryregister for the jewels and valuables belonging to the institutionsmaintained, and if so, whether they are intactand correct and whetherit is being periodically inspected by such officers as may be appointedby the Commissioner. 6. The auditor shall append to his report :- (a) a statement of receipts and charges under the budgetheads; (b) a statement of income and expenditure; (c) a consolidated statement of assets and liabilities; (d) a statement of the debentures, share certificates,Government bonds and other securities; (e) a statement of the demand, collection and balanceof all items of revenue or income or decrees, both arrears and currentoutstanding in cash and in kind at the end of the financial year andof the names of the tenants or other persons from whom the arrearsare due with details of years for which they are due in respect ofall temples;and (f) a statement of demand, collection and balance of allitems of revenue income, or decrees, both arrears and current, outstandingin cash and in kind at the end of the year in respect of the institutionsincluded in the lists published under Section 6. 7. . :- The auditor shall prepare an abstract of the auditedaccounts (receipts and charges and balance-sheet) and submit two copiesthereof alongwith the audit report. 8. . :- One copy of the abstract of audited accounts shallbe forwarded by the Assistant Commissioner or the Deputy Commissioneror Regional Joint Commissioner or the Commissioner as the case maybe, to the trustee or the Executive Officer of the Chairtable or ReligiousInstitutions or Endowment for publication. The Trustee or the ExecutiveOfficer shall, on receipt thereof, publish the abstract on the noticeboard of the institution or in any other conspicuous place in thepremises of the institution. Where the institution is a specifiedendowment, the abstract shall be published on the notice board orany other conspicuous place of the Charitable or Religious Institutionto which it is attached.Where the specified endowment is attachedto more than oe institution or endowment, the abstract shall be publishedon the notice board or other conspicuous place of any one of the Charitableor Religious Institutions as the Assistant Commissioner , the Deputy Commissioner, or Regional Joint Commissioner or the Commissioner,as the case may be, may determine.The Commissioner may in the caseof an institution or endowment of the accounts of which are subjectto concurrent audit under clause (a) of sub-section (2) of Section58, direct that the abstract of audited accounts shall, in addition,be published in any newspaper or any other manner.