Annual Quality Assurance Reports
Best Practice – 2
Unique Book-Keeping System with Monthly Internal Audit.
Goal– The general health of any institution or organization depends upon its financial health which in turn depends upon how the financial resources available are recorded, managed and utilized. BLJS College is a privately managed but government aided institution and fund in-flow is from various sources e.g. Government, UGC, College Resources and The College Management. However the funds out-flow involves many expenditures heads like Main Fund/Management Fund, Amalgamated Fund, Student Fund, Development Fund, Self Financing Fund, R.K. Fund, UGC Fund etc. In order to keep a proper check on the income and the expenditure the college has devised a unique internal audit system so that a proper record with transparency of accounts can be maintained resulting in a sound financial discipline.
The Context- In matters of finance the possibility of human error as also mischief is always distinct. And wherever there is a possibility of dishonesty and fraud, the victim is always the institution. Here in this case the College Management, the Government of Haryana and the UGC. The expenditures are also multi directional in the sense that some parts of the fund are diverted to the university, some to the student welfare activities, another part goes to salary and pension heads. A large chunk of funds is spent on infrastructural such other requirements. In this complex and multilayered context it is important that a transparent system is evolved and for this college has devised a unique multi step internal audit system with the help of which all transactions can be monitored and scanned in an effective manner.
The Practice- The practice devised and evolved by the college is unique. All the bills submitted along with the wares purchased are entered in the central stock register. Each concerned department also maintains its own stock register which is verified at the end of each academic session. For a purchase of more than 500/- rupees a committee is constituted and quotations are invited. The firm quoting lowest rates for any job or purchase is given an order for the same. The concerned committee makes a formal check about the work done or items purchased before final entry is made in the stock registers. The bills then are sent to the accounts clerk who after scrutiny records these bills in various cash books, journals and ledgers. There after he presents the vouchers to the college bursar who also makes a thorough scrutiny before he recommends the bills for final payments. It may also be mentioned here that all the recurring and capital expenditures are recorded regularly in the books of accounts like trial balance, cash books, journals and ledgers, receipt and payments accounts, income and expenditure accounts and finally in the balance sheet for each and every head of accounts for various funds effectively managed and recorded in the books manually these accounts are also maintained through computer. All these account details are compiled on a monthly basis and then sent to the head quarters of the College Managing Body at Delhi and are scrutinized by internal auditors appointed specifically for the same purpose and discrepancies if any are pointed out and rectified at the college level to make the practice unique in itself. This unique internal system imposes a self discipline which checks carelessness, dishonesty and extravagance allowing the college a leverage to utilize and mobilize its funds in a careful and balanced manner. In addition to the internal monthly audit there are regular government and university audits thus a three tier audit system becomes an effective tool for a sound financial management mechanism. It is pertinent to suggest that the all financial accounts of the college are put under a scanner by a qualified and competent C.A. annually also.
Evidence of Success- All the financial records are maintained both manually and in computerized form. The college is able to plan ahead for its activities and development without getting bogged down by unclear financial situations. In fact the college always has a blue print of its infrastructural plans and clear cut financial picture as to from where the funds would be available for the execution of these plans. As a result the College Management and Administration is able provide adequate funds for the appointment of teaching and non-teaching staff other than the sanctioned and regular posts. The result of the practice indicates that proper financial management with the internal audit system on a monthly basis can lead to a healthy academic environment in any institution of higher learning and can act as a safeguard against so many mal-practices.
Problems Encountered and Resources Required -The only constraint that the college faces is that sometimes things and projects get delayed due to monthly internal audit and the queries raised by the head office.