1994-95 - Birbal Sahni Institute of Palaeobotany

BSIP
(Annexure
Annexure 'A'
to and forming part of the Audit Report for the Year ended 31st
March, 1995)
Comments on Accounts of Birbal Sahni Institute of Palaeobotany,
for the year ended 31st March, 1995.
Accounts :
Lucknow
I. Accounts of various Projects tenable at the Institute have been maintained
separately and do not form PaJt of the Balance Sbeet and Income and
Expenditure Account and Receipt and Payment Account.
2. Accounts have been maintained on cash basis.
3. Verification of bank account reveals that various entries have been incorporated
in the Bank Reconciliation Statement under the head "Credit without advice
(C.W.A.)" and "Debit without advice (D.W.A.)" amounting to Rs. 28.936/- and
Rs. 32.976/- respectively.
As explained to us. the above entries are not at present u·aceable. But in our
opinion. the same are verifiable provided proper communication is there
between the various departments of the Institute.
4. Various advances were found pending recovery for an unduly long period.
Efforts aJ·eto be made [or speedy settlement of the same.
Change of Accounting polides :
150
5. During the year under audit. there has been a significant change in the
accounting policies o[ the Institute. Advances on Revenue Account as on
Balance Sheet date. which were hithelto shown in the Assets side of the B/s.
have been charged to Income and Expenditure Account by debiting to the
respective heads of Expenditure Account. Therefore. "Excess of Expenditure
over Income" has been over estimated by that anlOunt.
6. There had been a short deduction of Income Tax from the Salary of employees
of the Institute. But. however. the same has been recovered from them in early
next year. Proper care should be taken while deducting Income Tax to avoid
any harsh action taken by the Income Tax Authorities.
7. During the year under audit. three vehicles costing Rs. 2.56.346.11 were
disposed off at Rs. 1.17.705.00. Sale price, as stated above. has been shown in
the "Income and Expenditure Account" of the year under the head "Misc.
Income". However, original cost of the vehicles have been reduced from Assets
and Capital Fund heads in the Balance Sheet. In our opinion. prior approval of