20 January 2010
The special points to be seen during audit of Educational Institutions are:- 1. Ascertain the legal status 2. Examine the trust deed/regulations in the case of school or college and note all relevant provisions. In the case of university, refer to the act of legislature and regulations framed there under. 3. Note the important provision of applicable state education act, especially those affecting the accounts and audit. 4. Obtain a list of book of accounts and that of other registers and records. 5. Examine the previous year’s audit and note the qualifications and observations. 6. Examine the entries in cash book/fee register with reference to the counterfoils of receipts issued against fee received. 7. Where the institution has hostel facility, examine the bill raised for accommodation, mess charges etc. 8. Examine whether the payments of scholarships to students are properly authorized and conform to terms stipulated by the donors. 9. Examine the payments on account of prizes/awards with reference to relevant bills, receipts. 10. Read through the minutes of meetings of managing committee/governing body, noting resolutions affecting accounts to see that these have been duly compiled with, specially the decisions regards the operation of bank accounts and sanctioning of expenditure. 11. Verify that the provident fund money of the staff has been invested in appropriate securities. 12. Verify the admission fees collected with admission slips signed by the principal. 13. Verify the rental income from landed property with the rent-rolls. 14. Confirm that free studentship and concessions have been granted by a person authorized to do so, having regards other rules prepared by managing committee. 15. Confirm that caution money and other deposits paid by student on admission, have been shown as liability in the balance sheet not transferred to revenue, unless they are not refundable. 16. Confirm that the fines for late payments or absences have been either collected or remitted under proper authority. 17. If the institution is an aided institution, examine the grants in aided by UGC; study the terms and conditions of UC grants. 18. Confirm that grants have been spent on sanctioned purposes. 19. Pay special attention to unutilized grants. 20. Special attention should be paid to trips arranged. 21. Verify the inventories of furniture stationary, clothing, laboratory equipments.
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