GUIDELINES TO MAKE THE HOUSING SOCIETIES' AUDITING PROCESS HASSLE-FREE

Auditing documents of a housing society is a cumbersome process. However, if one follows guidelines, the process can be made easier

Are the tedious procedures in auditing of your co-operative housing society taking a heavy toll on your personal time and energy?
It's not only the key `administrators' like the chairman and treasurer involved in managing the society, but each and every member of the society needs to be ready with paperwork, prior to auditing. Protocols to be followed for the seamless functioning of the society, are decided in the annual general meeting. Despite maintaining all the financial statements as decided in the meeting, even if there is the slightest slip-up in the documentation, the whole process goes for a toss and this matters a lot, especially when you are tied up with several other things in your personal and professional life. A systematic auditing process for the members of a housing society gives a feeling of assurance among its members that their society is run by sound professional and financial ethics. Following the guidelines streamlines the auditing process and makes it useful for societies, particularly when the accountant or the treasurer of the housing society does not have an accounting background.APPOINTING A CERTIFIED AUDITOR
An auditor is appointed after the annual general body meeting is held at the society. He must be different from the member who maintains the accounts. He checks the financial statements of the society. He should abide by the below mentioned criteria.
a) He needs to be a CA.
b) He needs to have a certificate in Government Diploma in Co-operative Accountancy .
MAINTAINING THE ACCOUNT SYSTEM AND ITS TIMELINES
Accounting time stretches from the month of April to September. All the financial statements need to be closed by the society in September and the auditing begins in the last week. Accounts need to be maintained in the areas like repairs and maintenance; sinking fund; water charges; common electricity charges; non-occupancy charges; conveyance of land charges; guest parking charges; housekeeping charges; security charges; elevator maintenance and other charges defined by the society.
BANK RECONCILIATION SHOULD BE COMPLETE
Care needs to be taken that cheques issued in the names of agencies hired for maintenance, are deposited in the bank. One has to make sure that the amount mentioned in the ledger and amount reflecting in the cheque for certain expenditure shown, should be the same. Bank statements of all the expenses need to be scanned and photocopied for the fixed duration of time.
PAPERWORK AND DOCUMENTATION REQUIRED
All the invoices and receipts received from vendors for maintenance, need to be recorded in a file or as a soft copy.The auditor has free access to the books, accounts, papers, vouchers, stock and he verifies the cash balance and security . The audit report is then presented in the AGM and is forwarded to the Registrar for this information and record.
DISCUSSION BETWEEN THE ACCOUNTANT AND TREASURER
The accountant and treasurer should plan a meeting with the auditor from April to September. The balance sheet containing assets and liability, cash flow sheet showing receipts and invoices, the sheet showing income and expenditure, need to be maintained by the cooperative housing society . The auditor may raise his queries in the application of tax and uncontrolled expenses in the balance sheet. (The writer is director, Apartment ADDA)