Audited statement for provisioned expenses

Others 654 views 1 replies

 

Hi,

Please help me dear.... 

 

 

We are handling projects funded by Govt of India and on periodic basis we need to send utilization certificate to our funding agency. Usually a UC is just a certificate in which we declare that out of X amt received as funds Y amt has been utilized and balance Z amount is available.

 

Now while preparing UC we also take into account the provisions or expenses which are not yet spent from funds but surely will be spent in future months hence they are also termed to be utilized. Now the funding agency has asked for audited statement of accounts , so the expenses which we have already shown in UC but not yet out from our funds , how to explain this to auditor will the auditor understand this or only certify the statement based on actual expenses made.

 

 

 

Audited Statement of Accounts     
Receipt   Payment  
Details Amt Details  Amt
funds recd  100000 Expenses actual  50000
interest earned 1000 Expenses booked / will be spent in future for Sure 25000
    TOTAL UC AMT 75000
    Balance available  26000
TOTAL 101000 TOTAL 101000
       
       
Company Rep Sign    Auditor Sign  

 

So will the auditor sign for the 25000 rs also but the amount is not yet spent from the funds, but provisioned / booked
Replies (1)

Auditor will sign but he will provide anote in certificate giving the breakup and will mention that rs 25000 is booked as provsions for future exp.

HE WIil do this as he may want to just protect himself as he is certifying on basis of availaible evidences.


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