Distance Education Institute comes under audit scanner
R. Sujatha
CHENNAI, April 30, 2018 00:00 IST
Local Fund Audit raises 654 objections pertaining to Rs. 27 crore over 35 years
An idea to generate revenue resulted in losses for the Institute of Distance Education (IDE) of the University of Madras.
Errors in the institute’s mode of managing bank accounts, non-maintenance of funds/registers, mismanagement of funds, lack of assessment of demand for admission leading to excess printing of prospectus-cum-applications have all led to the erosion of the IDE’s funds. In the last 35 years the Local Fund Audit (LFA) raised 654 objections pertaining to Rs. 27 crore.
In the last six years, the IDE consistently printed prospectus-cum-applications in excess, leading to an excess expenditure of Rs. 1,40,903, the audit pointed out. The admission strength had fallen by 40% leading to a 20% dip in fee receipts.
Since the university had not prepared and produced the ‘Demand, Collection and Balance Statement’ for the fees collected from students enrolled for the various courses from financial year 2006-07, “the correctness of fees collected could not be ascertained.
Though the defect was pointed out in the previous year’s audit reports, no tangible action was taken. Hence, action may be taken to prepare the Demand, Collection and Balance statement and produce it to audit for verification.”
The university said that with the introduction of the online mode of payment for the admission and examination wing of the IDE, the DCB statement would be prepared and submitted for audit.
No bank record
For 2016-17, the LFA raised 19 objections pertaining to Rs. 21,71,161. The IDE had not cashed all the cheques it received. Until March 31 of 2017, it had uncashed cheques for Rs. 1,17,67,616. Subsequently it cashed many of them, but a cheque for Rs. 2.36 lakh was not cashed till the close of audit.
The institute showed Rs. 13,69,354 as being credited, but at the end of financial year 2016-17, the bank had no record. Later, the error was only partially rectified and no credit was given for Rs. 6,647 till the close of audit, the LFA pointed out.
The university responded that the rectified demand drafts were being sent to the bank concerned for encashing.
Last year, the actual expenditure incurred by the IDE under various heads was in excess of the revised budget estimate to the tune of Rs. 6,17,809.
The university maintained that the excess expenditure was due to cost increase and assured that it would seek the Senate’s approval.
The IDE cancelled 44 study centres, but failed to furnish details regarding fee collection and pending amount due to study centres.
The LFA pointed out that the IDE has not maintained the register for study centres.
R. Sujatha
CHENNAI, April 30, 2018 00:00 IST
Local Fund Audit raises 654 objections pertaining to Rs. 27 crore over 35 years
An idea to generate revenue resulted in losses for the Institute of Distance Education (IDE) of the University of Madras.
Errors in the institute’s mode of managing bank accounts, non-maintenance of funds/registers, mismanagement of funds, lack of assessment of demand for admission leading to excess printing of prospectus-cum-applications have all led to the erosion of the IDE’s funds. In the last 35 years the Local Fund Audit (LFA) raised 654 objections pertaining to Rs. 27 crore.
In the last six years, the IDE consistently printed prospectus-cum-applications in excess, leading to an excess expenditure of Rs. 1,40,903, the audit pointed out. The admission strength had fallen by 40% leading to a 20% dip in fee receipts.
Since the university had not prepared and produced the ‘Demand, Collection and Balance Statement’ for the fees collected from students enrolled for the various courses from financial year 2006-07, “the correctness of fees collected could not be ascertained.
Though the defect was pointed out in the previous year’s audit reports, no tangible action was taken. Hence, action may be taken to prepare the Demand, Collection and Balance statement and produce it to audit for verification.”
The university said that with the introduction of the online mode of payment for the admission and examination wing of the IDE, the DCB statement would be prepared and submitted for audit.
No bank record
For 2016-17, the LFA raised 19 objections pertaining to Rs. 21,71,161. The IDE had not cashed all the cheques it received. Until March 31 of 2017, it had uncashed cheques for Rs. 1,17,67,616. Subsequently it cashed many of them, but a cheque for Rs. 2.36 lakh was not cashed till the close of audit.
The institute showed Rs. 13,69,354 as being credited, but at the end of financial year 2016-17, the bank had no record. Later, the error was only partially rectified and no credit was given for Rs. 6,647 till the close of audit, the LFA pointed out.
The university responded that the rectified demand drafts were being sent to the bank concerned for encashing.
Last year, the actual expenditure incurred by the IDE under various heads was in excess of the revised budget estimate to the tune of Rs. 6,17,809.
The university maintained that the excess expenditure was due to cost increase and assured that it would seek the Senate’s approval.
The IDE cancelled 44 study centres, but failed to furnish details regarding fee collection and pending amount due to study centres.
The LFA pointed out that the IDE has not maintained the register for study centres.
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