INTERNAL AUDIT REPORT

Christ College autonomous

FY 2020-21
Conducted by
CMI Devamatha Province’s Internal Audit Team, Patturaikkal,
Thrissur.

Name of the Institution

CHRIST COLLEGE IRINJALAKUDA
Name of the Trust
CHRIST COLLEGE EDUCATION SOCIETY
Principal
Rev. Fr. Dr. JOLLY ANDREWS

Manager
Rev Fr JACOB NJERINJAMPILLY
OBSERVATIONS:
Books are accounted in Tally ERP 9 Software.

Day book is maintained manually has been computerized which has helped
reduce time and extra work of Accountant, the software used here for accounting is
Original version of Tally.

Day to day Accounting is yet to be made practical but there is improvement

and attempt is seen to make day to day accounting is visible.
The Financial transactions recorded, are supported by appropriate documentation.
Opening differences exist in tally. Cash verification is done on daily basis.
1. Statutory/Legal Matters
 Income Tax and Other Legal Compliance.
Christ college education society has 12A registration.
Accounts are just audited of Financial Year 2020-21 and IT Returns are yet to be filed.

 Foreign Contribution Documents/ RBI Approval

Institution does not receive any foreign funds and do not maintain FCRA Bank Account.
 Government Documents/Corporation/ Panchayath records
Fitness certificate from the Irinjalakuda municipality is available.

 Permission Records
Permission Records of college is available. Affiliation from Calicut University is
received.

2. Land Documents
 Land sketch of Christ College is available.
 Building permit and building tax are up to date.
 Land taxes are paid
3. I T Infrastructure
 IT Infrastructure is made better by enabling Parental security for L.A.N Connectivity
and Security of systems are ensured. L.A.N connectivity is available for every system.
 Software used for Accounting has access control defined and back entries are possible.
 Fee collection software is reliable to account college Fees. It is only used for accounting
admission fees and tuition fees. (Knowledge Pro and E college Solution).
 AMC’s should be renewed periodically.

4. Budget
 Budget was not prepared in time due to pandemic.
 The Financial and Operational Budget which s approved by the manager of the society is
available.
 Minutes of the Budget Meeting is kept in monastery.
 Variances above 10% are reported to the president of the society.

5. Fixed Assets Register

 There are different types of Fixed Assets owned by college, but there was no
proper
record/Register for Fixed Assets maintained and hence verification of Fixed Assets wa
not possible.
6. Lab Register/Inventory Register
 Lab facility is available, and manual lab register is maintaining properly. Latest
updation in lab register is on 18-12-2020.
 Additions and deletions are not properly entered. Latest purchase is not
entered in the lab register.

7. Admissions/Removal of staff and Administrative Matter

 Staff list is been maintained on category basis.
 A separate list is also been maintain for staff admitted and staffs who have left the
organization.
 Relatives of employees are not appointed.
 ESI/PF Covered Staff List and Salary Acquaintance register are maintained properly.
 There is specific signed job contract.
 Staff Memo register is not maintained.
 Teaching and non teaching staff list is maintaining separately.
Salary Acquaintance registers and ESI/PF register is maintaining properly.

8. Admissions – students
 Admission list is maintained computer system basis.
 Additions/Deletions of admission list are properly entered.
 Yearly verification date and removal of scrap form records/register are maintained.

9. Verification of income
 9.1 Application Fees
 Serial continuity of the receipts are properly maintained, hence receipts issued and tot
receipts are equal.
 Application fee is collected through bank only.

9.2 Admission Fees

 List of class wise admission and list of class wise admission fee are available.
 Admission fees collected from each new student is varying according with self finance
section and aided section.
 Admission fee is only collected through bank.

9.3 Tuition Fees

 Class wise list of tuition fee collected is maintaining properly, and the receipts are
properly issued.
 Method of collecting tuition fee is only through bank.

 Records of advance tuition fee and arrear in tuition fee are maintained properly.

9.4 Donation
 This institute does not collecting any type of donations. That’s why
there are no separate accounts and receipts are maintaining for donation.

10. Verification of Expenses

10.1 Staff Cost
 List of Teaching and Non-Teaching staffs are maintaining properly.
 Arrear in salary payment is not occurred, so arrear salary list is not preparing.
 Aided employees are availing loan from the institution, there is no loan sanction letter
is maintaining while sanctioning a loan.
 ESI and PF calculations are maintaining properly and TDS return is filed within the du
date.
 Salary payment is done through bank. And also daily wage is paid as cash.

10.2 Other expenses/Vouching

 It is really appreciated to see new Standard operating procedures adopted for
payments of expenses which includes maker and checker
concept are done effectively.

 Proper voucher system is followed for each payment; approval of the bursar is
obtained for transaction wherever required.
 Vouchers are prepared for each transaction and serially numbered.
 Payments above Rs.10,000 are paid through Bulk Transfers which is
appreciated.
 Appropriate classification is given for each expense and adequate supporting
documents are attached with each voucher.
11. Cash /Bank/Fixed Deposit
 All Bank transactions including Interest and Bank charges were accounted after receivin
Bank Statement; Bank transactions are accounted completely, but transactions
of IDBI bank is not accounted completely. Cash verification is done on a daily bas
 Last year’s Closing Balances were not brought forward as this year’s opening in tall
so there is difference in opening balance.
 Confirmation statement from bank is not collected.
 Document of fixed deposit is available, but confirmation statement of fixed deposit is not
available.
12. Loans
 It’s good to see Loan Amount availed from Individuals are brought down as per previous
audit report’s recommendation.
13. Vehicle Department
 There is only one bus under vehicle department.
 Vehicle Documents were available for verification.

14. Hostels
 Hostels are not functioning due to pandemic and so verification of Accounts and Documen
were not possible.

Recommendations
  As per 269SS of Income Tax Act 1961, A person shall not take or accept
loan/deposit from other person otherwise than by the prescribed banking channels i.e
A/c payee cheque or account payee bank draft or by use of electronic clearing syste
so that the aggregate from such person is Rs.20,000/- or more.
And Section 271D of Income Tax Act 1961 provides that if a loan or deposit is accepted i
contravention of the provisions of section 269SS then a penalty equivalent to the
amount of such loan or deposit may be levied by the Joint commissioner.
So, we recommend you to reduce loan from individuals or such loans
should be taken complying above section 269SS.

 Maintaining Cash book & Cheque Register (for inward and outward
transaction) are recommended.

 As per section 194A of Income Tax Act 1961, The Payer/Deductor shall deduct TD
if the amount of such interest paid or credited OR is likely to be paid or credited in a
financial year, exceed
1. 10,000 where the payer is
o Banking company or any bank or a banking institution
o Co-operative society engaged in the business of banking
o Post office (on deposit under scheme framed and notified by Central Government)

Christ College Irinjalakuda INTERNAL AUDIT REPORT Z0Z0-Z 1

2. 5,000 in any other case

Interests paid for Loan from individuals are without deducting TDS u/s 194A, which
we recommend to deduct and then make payment to the
recipient of the interest.
• There are different types of Fixed Assets owned by the Institution, but there was no prope
record/Register for Fixed Assets maintained and hence verification of Fixed Assets was
not possible so we recommend maintaining
Fixed Asset register.

• Minutes of Budget meeting should be kept at office.

• Making of quarterly budget variance report helps to identify the
effectiveness of annual budget.

• It is recommended to have computerized lab register helps to maintaining

stock details effectively.

• Loan agreement must be signed while sanctioning a loan to an aided staff

• Management should collect confirmation statements from respective banks
on time.

• Computerization of hostel sections will help to improve their accounting

system more effectively.

Antony Johnson Pellissery Chief Audit Executive

CMI Devamatha Province’s Internal Audit Team
 MANAGEMENT AUDIT FORM
Management Audit Programme for Educational Institutions managed by
Carmelites of Mary Immaculate (CMI)
Name of the Institution CHRIST COLLEGE (AUTONOMOUS)
Place IRINJALAKUDA
Name of the Trust CHRIST COLLEGE EDUCATIONAL SOCIETY
Principal Rev. Fr. Dr. JOLLY ANDREWS
Manager Rev. Fr. JACOB NJERINJAMPILLY

1. Statutory/Legal Matters
Receive d Not
Particulars Received
1 Trust Deed and Registration Details ✔
2 12A Registration Details ✔
 3 PAN ✔
4 Audited Financial Statements ✔

5 Annual Return 10B/Audit Report ✔

6 Acknowledgement of Income Tax Returns Filed ✔

7 Acknowledgement of Quarterly TDS Return

8 Foreign Contribution Documents/ RBI Approval

9 Government Documents/Corporation/ Panchayath records ✔

10 Permission Records of Nursery

11 Permission Records of Primary
12 Permission Record of High School
13 Permission Records of College ✔
us

dit Team, Patturaikkal,

TY

helped
here for accounting is

vement
iate documentation.
is.

yet to be filed.

CRA Bank Account.

cut University is
 or L.A.N Connectivity
e for every system.
ntries are possible.
used for accounting
).

ager of the society is

e was no proper
ion of Fixed Assets was
properly. Latest

ase is not

istrative Matters

ho have left the

tained properly.

arately.
rly.

ister are maintained.

eceipts issued and total

n fee are available.

rding with self finance

d the receipts are

aintained properly.

at’s why
for donation.
rly.
list is not preparing.
no loan sanction letter

n is filed within the due

d as cash.

edures adopted for

al of the bursar is

bered.
rs which is

adequate supporting
ounted after receiving
but transactions
is done on a daily basis.
year’s opening in tally

of fixed deposit is not

down as per previous

ccounts and Documents

ke or accept
banking channels i.e.
tronic clearing system

deposit is accepted in
equivalent to the
oner.
h loans

nd outward

ductor shall deduct TDS

d or credited in a

Central Government).

TDS u/s 194A, which

ut there was no proper
of Fixed Assets was

tify the

aintaining

taff
ve banks

ounting

xecutive
dit Team
naged by

Remark s
NA

NA

NA
NA
NA
 2. Land Documents
Particulars Received Not
Received
1 Sale Deed
2 Land Sketch ✔
3 Land Tax ✔

4 Encumbrance Certificate
5 Building Permit ✔

6 Building Tax ✔
7 Provincial House Approval For Building Construction ✔
including Financial and Structure
8 Building Permit from Local/District/State ✔

9 Obtain minimum 3 quotations from Engineers ✔

10 Check the Minutes of the meeting for award of contract ✔

11 Check whether the building construction expenses has ✔

been provided in the annual budget
12 Construction pending under litigation/dispute ✔

3. I.T Infrastructure
Particulars Received Not Remarks
Received
Details of software used for Accounting ✔ ORIGINAL
1 - Original
- Pirated

2 Any customization done? NA

3 Back dated entry possible or not? ✔

4 Access control defined or not? ✔
5 Details of Smart School Supplier and Agreement NA
6 Annual Maintenance Contract NA
7 Availability of LAN ✔
8 Password Security and Virus Control Software’s ✔
Remarks

NA

Copy is
available
NA

Remarks

ORIGINAL

NA

NA

NA
 4. Budget
Particulars Received Not
Received
Availability of Approval Financial and Operational Budget ✔
1 (Manager/Provincial Approval)

2 Minutes of the Budget Meeting ✔

Basis for preparation of Budget and Assumptions should also ✔

3 form part of Budget

4 Quarterly variance analysis by budget committee

Variances above 10% should be reported to Manager/ ✔

5 Provincial for Ratification

5. Fixed Assets Register

Particulars Received Not Remarks
Received
1 Availability of Fixed Assets Register
2 Updated on ……………………………
3 Check whether assets are properly numbered

4 Check the quotations available (Minimum 3)

5 Additions/Deletions are properly entered Not Maintained

6 Yearly verification date and removal of scrap form

records/register
7 Purchases below Rs.5000 should be expensed

8 Mode of Maintenance – Manual/System

 Remarks

ANNUAL

NA

Remarks

tained
 6. Lab Register /Inventory Register
Particulars Received Not
Received

1 Availability of Lab/Inventory Register ✔

2 Updated on ……………………………

3 Mode of Maintenance – Manual/System ✔

4 Additions/Deletions are properly entered ✔

5 Yearly verification date and removal of scrap form ✔
records/register
6 Verify the inventory/lab items and report exceptions ✔

7. Admissions/Removal of Staff and Administrative matters

Particulars Received Not
Received
1 Obtain list of staff - category wise ✔

2 Obtain list of staff admitted/resigned during the period – ✔

Category wise
3 Obtain the procedure followed for Staff recruitment ✔

4 Any agreement with Recruitment Agency

5 Check News Paper Add is available ✔

6 Check the application forms received ✔

7 Check the Interview Procedure followed ✔

8 Check any donations involved for admissions

9 Compare the salary offered with existing staff ✔
10 Check any relatives of employees are appointed and the
details of the same
11 Check the signed Job contract ✔
12 Number of staffs resigned during the period and reason, ✔
notice period, relieving order
13 Staff Memo register ✔
14 Teaching and Non-Teaching Staff Register ✔
15 List ESI/PF Covered Staff ✔
16 Salary Acquaintance register ✔
Remarks

18-12-
2020
MANUAL

Remarks

NA

NA

NA
 8. Admissions – Students
Particulars Received Not Received

1 Obtain the procedure followed for Students admission ✔

2 Updated on ……………………………
3 Mode of Maintenance – Manual/System ✔

4 Additions/Deletions are properly entered ✔

5 Yearly verification date and removal of scrap form ✔

records/register
9. Verification of Income
9.1 Application Fees

Not Received
Particulars Received

1 Check the number of application sold ✔

2 Rate per Application ✔

3 Check the serial continuity of the receipts ✔

4 Vouch the total receipts with receipts issued ✔

5 Mode of collection – Cash/bank

9.2Admission Fees
Not Received
Particulars Received

1 Obtain list of class wise admissions ✔

2 Admission Fee –Class wise ✔

3 Check whether new admissions are entered in the ✔

admission register
4 Vouch the total receipt with receipts issued ✔

5 Mode of collection – Cash/bank

Remarks

SYSTEM

Remarks

BANK

Remarks

BANK
 9.3Tuition Fees
Particulars Received Not Received Remarks

1 Obtain list of class wise ✔

2 Admission Fee –Class wise ✔

3 Check whether new admissions are entered in the ✔
admission register
4 Vouch the total receipt with receipts issued ✔
5 Mode of collection – Cash/bank ✔ BANK

6 List of Arrears Fees – Opening ✔

7 List of Arrears Fees – Closing ✔
8 List of the Advance Fees – Opening ✔

9 List of the Advance Fees – Closing ✔

10 Method of Accounting – Accrual/cash basis ✔ CASH

11 Class wise list of students under fees concession ✔

12 Method of the accounting concession – ✔ ADJUSTING

Refund/Adjusting
13 Reconciliation of Fees Accounted with Due ✔

9.4 Donation
Not
Particulars Received Received

1 Whether separate receipts voucher system exist?

2 Purpose of donation – Revenue/Capital/Spl Purpose

3 Reconciliation of Accounted with Receipts

Check the nature the same and decided whether it should

4 be accounted in the house Book of Institution

5 Mode of collection – Cash/bank

6 List of Unaccounted donations?
7 Any other comments Amount is collected as management
contribution
 Remarks

BANK

CASH

ADJUSTING

Remarks

NA

NA

NA

NA

NA
NA
ected as management
ntribution
 9.5 Agricultural Income
Not
Particulars Received Received

1 Whether separate receipts voucher system exist? NA

2 Prepare a separate income and expenditure a/c for the
same
3 Reconciliation of Accounted with Receipts

10. Verification of Expenses

10.1 Staff Cost

Particulars Received Not

Received
1 Obtain list of Teaching and Non-Teaching staff ✔
2 Obtain the salary structure ✔
3 Obtain Attendance record on the test basis ✔
4 Do the reconciliation work – ie Due Vs Paid ✔
5 Obtain List of Opening and Closing Arrear Salary list

6 Obtain List of Opening and Closing Advance Salary List ✔

Salary advance above one month should be monitored ✔

7 and has to be sanctioned with the approval of Manager

8 Obtain list of Employee loan ✔

9 Check the loan sanction letter ✔
10 Check ESI/PF calculation and ensure that payment is done ✔
within the due date
11 Check the TDS applied and ensure that payment is done ✔
within the due date
12 Ensure that TDS return is filed within the due date ✔

13 Salary payment must be routed through bank ✔

 Remarks

NA

Remarks

NA

BOTH
 10.2 Other expenses/Vouching
Particulars Received Not
Received
1 Proper voucher system is followed for each payment ✔

Ensure that adequate supporting documents are ✔

2 attached with each voucher (like bills, receipts etc)

3 Rs.10,000 or above should be paid through account payee ✔

cheque or RTGS
4 Obtain the list of expenses which are not spend for school ✔
purpose
5 Check TDS deducted where ever applicable ✔

6 Check the Signature of Maker/Approval/Receiver ✔

7 Ensure that appropriate classification is given for each ✔

expenses
8 Ensure that serial continuity is followed ✔

11. Cash /Bank/Fixed Deposit

Particulars Received Not
Received
1 Obtain the cash certificate form cashier ✔

Verify the cash or Request the Manager to verify the cash ✔

2 and get the cash certificate counter
signed
3 Ensure that cash book is properly maintained in all ✔
respects
4 Check the cash balance with cash balance disclosed in the ✔
budget and financial statement
5 If any variances in cash – reconcile the same ✔

6 Obtain list of bank balances ✔

7 Obtain confirmation statement form bank ✔

8 Check the frequency in preparing the Bank reconciliation ✔

and verify
9 Obtain the bank reconciliation and verify ✔

10 Obtain list of fixed deposit ✔

11 Obtain the bank confirmation for fixed deposit/Verify ✔

fixed deposit receipts
Remarks

Both

Remarks

Daily
12. Loans
Particulars Received Not Received Remarks

1 Obtain list of bank loans and confirmation form bank NA

2 Check whether instalments and interest are serving
properly
3 Ensure that interest rate applied is as per the
sanction letter
4 Check Is there any penal interest
5 Ensure that loan is availed after getting the sanction
of Provincial/manager
6 Obtain reconciliation statement for the same
7 Any other matters

13. Vehicle Department

Particulars Received Not
Received
1 Obtain list of vehicles
2 Prepare the profit statement for each vehicle
3 Find out the vehicle with highest expense and report for
corrective action
4 Check the authenticity of repair bills
5 Ensure that Tax, Insurance and other statutory dues are
up to date NA
6 Obtain list of students using the vehicle facility
7 Obtain fees structure of vehicle
8 Do reconciliation of income with receipts
9 Obtain list of Arrear fees –Opening and Closing
10 Obtain list of Advance Fees – Opening And Closing
 Remarks

NA

Remarks

NA
 14. Boarding
P
articulars Received Not
Received
1 Obtain list students

2 Obtain fees structure

3 Obtain list of Arrear fees -Opening and Closing
4 Obtain list of Advances Fees -Opening and
Closlng
5 Do reconciliation of income with receipts

6 Ensure that proper voucher system is followed

for all expenses
7 Do reconciliation of income with receipts

Check the application and students register and

ensure that the records are reconciled
9 General rules applied for payment of salary and ,/
expenses should be followed

10 Checl‹ whether separate bank accounts are I

maintained and reconciliation of the same
Antony Johnson Pellissery Chief Audit Executive
CMI Devamatha Province’s Internal Audit Team
Patturaikkal, Thrissur.
Date: 16 6 zozt
CMI Devamatha Province

Z0 | P a g e
 Remarks

NA

dit Executive
l Audit Team