Accounts audit of apartment association
T SANKAR RAO
(Querist) 23 September 2013
This query is : Resolved
Sir,
Is there Govt.agency to audit the accounts of Apartment Association which is registred as a Society by the Dist.Registrar of Societies, Hyderabad. In fact, who is the authority to audit the accounts of the Soceity?
Thank you.
R.K Nanda
(Expert) 23 September 2013
depends on bye laws of society.
T SANKAR RAO
(Querist) 24 September 2013
Sirs,
The byelaws of the Society are as follows:
18.Gen.body-duties, powers:
19.The order of business at the Gen.body and the functions thereon shall be as follows:(i)To appoint an Auditor to examine and report on the annual financial statement given to him, and for remuneration, if any, payable to the auditor. The Accounts of the association are to be audited by Internal Audit from among the members of the Assn.
SEC.VII Powers & Duties of the Members of Executive Committee:
24.Audtir:
Internal audit by one of the members of the Assn.appointed by the Gen.body shall examine the Annual stt.of Income and Expenditure and verify the same with the accounts and relevant records relating thereto shall be the same as found by him to be correct and shall report to the Gen.body upon any matter connected with the accounts which appears to him needing corrective and remedial measures.
The Assn.was regd.in 2001 and only one person had acted as President continuously upto the end of 2012 although committee members were frequently replaced. Cash Books & Vouchers have not been maintained. Even if maintained, for some periods, only receipts and payments indicated without supporting vouchers. Receipt books are not perfectly maintained. There is no statement of dues to be collected from members. Bank transactions do not reflect in any books as cash book is not maintained. No final accounts such as R&P, I&E and B/S prepared for any one of the 12 years under the presidentship of a Gentleman. Who will bell the cat? is the question of some members. Is it not the responsibility of the Registrar to inspect the accounts when asked for? Nobody has knowledge/interest to audit the accounts. In such circumstances, cann't we get the acccounts audited by an External Auditor, probably, by a CA? althogh this provision is not mentioned in the Byelaws. Is there no way to make the Gentelman account for his misdeeds for 12 years? Is there no responsibility with the Registrar if reported to him about the status of the society? Is there any govt.body by which the accounts of the past could be got audited?
I am the president of the society for this year of 2013.
I would be grateful for your kind guidelines.
Thank you!
