Uniform Format of Accountsfor the Central Autonomous Bodies Financial Audit of Autonomous 1 Bodies Uniform Format of Accounts Session Overview • We have covered discussion on: • legal mandate, mandate • audit objective, audit scope and audit process in audit of financial statements of autonomous bodies: Financial Audit of Autonomous 2 Bodies Uniform Format of Accounts . Session Overview • and different and important Accounting Standards applicable pp to autonomous bodies while preparing or presenting their financial statements. Financial Audit of Autonomous 3 Bodies Uniform Format of Accounts . • Besides we have also discussed risk assessment and internal controls in autonomous bodies. Financial Audit of Autonomous 4 Bodies Uniform Format of Accounts . • A uniform format has been prescribed in the Act f the for h companiesi so that h persons interested i d in i andd users of information contained in the financial statements are in a position to appreciate and comprehend the data in the context in which the company p y has presented p the data. 1956 specifies the format in which companies registered under the Act are to prepare and present their financial statements. Session Overview • Companies Act. Session Overview • Autonomous Bodies may or may not be registered under the Companies Act. 1956 they have to follow the provisions of the Act (including format for financial statements) for preparing and presenting their financial statements. • Iff they h are registered i d under d theh Companies i Act. Financial Audit of Autonomous 5 Bodies Uniform Format of Accounts . 1956. Financial Audit of Autonomous 6 Bodies Uniform Format of Accounts . they need not follow the provisions of the Act for presenting their financial statements. Session Overview • However However. if they are not registered under the Companies Act. • They receive substantial amounts of grants and/or loans from the Governments at Center and in the States States. Session Overview • Autonomous Bodies are usually non-profit organizations g engaged g g in different and diverse activities. Financial Audit of Autonomous 7 Bodies Uniform Format of Accounts . Session Overview Till recently there was no set standard of form for ppreparation p and presentation p of accounts. • It was also observed that the method of presentation of accounts by them was totally dismal and not keeping with the requirements of transparency and exposure of professional skill of these organizations. organizations Financial Audit of Autonomous 8 Bodies Uniform Format of Accounts . • un-scrutinized. • large number of items of accounts in all such organizations generally remained incomplete. Financial Audit of Autonomous 9 Bodies Uniform Format of Accounts . Session Overview • They did not give a lucid presentation of their accounts.. un scrutinized • and in arrears for several years. Parliamentary Committee on Papers in its 60th Report laid on the table of Rajya Sabha on 27th March 1998 felt that there is an urgent need of reviewing the method of ppresentation of accounts by y the Central Autonomous Organizations and impressed upon the Government to set up a Committee of Experts to work out a format prescribing a standard norms of accounts to bring similarity and transparency in the presentation of their accounts. Session Overview • In view of this problem. Financial Audit of Autonomous 10 Bodies Uniform Format of Accounts . The report also contained a uniform form of Financial Statements for the Central Autonomous Bodies. nts The committee submitted s bmitted its report to the Government on 15th November 200. Session Overview • The Ministry of Finance accordingly constituted a Committee of Experts on 26th May 1999 (committee reconstituted on 9th February 2000) to give their recommendation on different matters relating to acco accounts. Financial Audit of Autonomous 11 Bodies Uniform Format of Accounts . Financial Audit of Autonomous 12 Bodies Uniform Format of Accounts . Session Coverage • In this session we will discuss the recommendations of the Committee of Experts and also the recommended uniform format of financial statements applicable pp to central autonomous bodies. and Financial Audit of Autonomous 13 Bodies Uniform Format of Accounts . the learner will be able to state: • the different recommendations of the Committee of Experts set up by Government of India on the recommendations of the Parliamentary Committee on Papers. Learning Objective • At the end of the session. Financial Audit of Autonomous 14 Bodies Uniform Format of Accounts .. Learning Objective the uniform form of Financial Statements applicable pp to Central Autonomous Bodies. to the extent that he or she will be able to apply pp y these recommendations and uniform format while preparing the financial statements of Central Autonomous Bodies. p • ii.To suggest measures to enable clarity. transparency and simplicity in the presentation of accounts of such organizations organizations. Financial Audit of Autonomous 15 Bodies Uniform Format of Accounts . Terms of Reference of the Committee of Experts • i. To prescribe a standard or model format of accounts and accounting g reports p which Central Autonomous Organizations could adopt. especially with regard to grants released by the Go ernment Government. • iv. Terms of Reference of the Committee of Experts • iii. Any other matters. To suggest measures to enable evaluation through the accounts to the extent of achievement of socio-economic objectives of the organization. Financial Audit of Autonomous 16 Bodies Uniform Format of Accounts . which would enhance analytical and effective presentation of accounts of autonomous organizations. Fixed assets are not depreciated in case of some entities.Major deviations noticed by the Committee • In most of the cases accounts are maintained on cash basis and not on accrual basis. Financial Audit of Autonomous 17 Bodies Uniform Format of Accounts . certain accounting treatments will be required. For income income-tax tax exemptions exemptions. Recommendations of the Committee of Experts • All the autonomous organizations should ffollow one common fformat ffor its accounting and presentation of accounting f information. Financial Audit of Autonomous 18 Bodies Uniform Format of Accounts . Recommendations of the Committee of Experts • Within the common format of accounts. ffurther additional information f mayy be given as is prescribed for the Central Universities and other Educational Institutions and for the District Rural Development p Agencies. g Financial Audit of Autonomous 19 Bodies Uniform Format of Accounts . f Financial Audit of Autonomous 20 Bodies Uniform Format of Accounts . Recommendations of the Committee of Experts • The Financial Statements and its schedules will p provide ffull disclosure off the organization and all its accounting information. Recommendations of the Committee of Experts • The Accounting will be based on the pprinciple p off ‘Accrual System y off Accounting’ and the concept of ‘Going Concern’ will have to be maintained. Financial Audit of Autonomous 21 Bodies Uniform Format of Accounts . Recommendations of the Committee of Experts • Provision for Depreciation on Fixed Assets is to be made applicable pp in respect p off all the autonomous Organizations. Financial Audit of Autonomous 22 Bodies Uniform Format of Accounts . Recommendations of the Committee of Experts • The committee recommends that the Financial Statements ffor the Central Autonomous Organizations be prepared and p presented in the formats f recommended. Earlier pp application is encouraged.4. The formats should be pp made applicable ffor all accounting g years y commencing on or after 1.2001. g Financial Audit of Autonomous 23 Bodies Uniform Format of Accounts . Recommended format for financial statements Financial Audit of Autonomous 24 Bodies Uniform Format of Accounts .
Report "Uniform Format of Accounts for the Central Autonomous Bodies"