Co-operative Society not completed audit in time
Committee members not completing audit in time are not eligible for next election: We have been getting quite a number of queries from readers specifying that their Managing Committee has not completed the audit of the Co-operative Society. They have also enquired the remedy for it and if any punishment could be imposed on the delinquent members of the managing committee. We would like to clarify certain matters for the information of all.
WHO IS RESPONSIBLE TO COMPLETE THE ACCOUNTS & APPLY FOR AN AUDITOR
All the members of Managing Committee are jointly and severally responsible to COMPLETE THE ACCOUNTS on or before 30th April each year i.e. Accounts are to be written up from 1st April to 31st March of the next year and by accounting for the expenses payable, reversal of prepaid expenses, accounting depreciation, verification of inventory, equipments, furniture & fixture and fixed deposits and interests on deposits & members etc. and there after approach the Registrar of Co-operative Societies to select a Auditor from the panel prepared by the Registrar and request the Registrar for appointment of the Auditor.
WHO IS RESPONSIBLE TO HAND OVER THE ACCOUNTS TO AUDITOR IN TIME
It is the prime responsibility of all members of Managing Committee to ensure that entire accounts of the co-operative society are handed over to the Auditor of the Society by the Treasurer / Secretary. It the managing committee who are ensure that they remove all shortcomings found by the Auditors and reply to his / her queries immediately.
BLAME GAME AMONG THE MEMBERS OF MANAGING COMMITTEE
The members of the Managing Committee either blame each other or they blame the Auditor for not completing the audit in time and such a case, responsibility is to be fixed by the Registrar in case of any Inspection or Enquiry conducted on complaint by a member or as per rules.
IS MANAGING COMMITTEE RESPONSIBLE TO HAND OVER ACCOUNT ONLY
Our opinion is NO. The Managing Committee is responsible to ensure that the Audit is completed on time and that time is statutorily fixed as 120 days from the date the society was to complete their accounts i.e. 30.04. Therefore, every co-operative society is to complete their audit on or before 28 August each year. If Auditor report is dated after this date, the managing committee & the society is at default.
WHAT ACTION OR PENALTY CAN BE IMPOSED ON MANAGING COMMITTEE
Every member of the Managing Committee during the period of responsibility is liable to be punished that he /she is disqualified for the next “election term” of the managing committee of the society. In other words he / she is not eligible to be elected for 6 years.
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