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Appendix V SEPARATE AUDIT REPORT of the COMPTROLLER & AUDITOR GENERAL of INDIA on the ACCOUNTS of INDIAN COUNCIL of HISTORIC

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Appendix V SEPARATE AUDIT REPORT of the COMPTROLLER & AUDITOR GENERAL of INDIA on the ACCOUNTS of INDIAN COUNCIL of HISTORIC Annual Report (2009–2010) 137 Appendix V SEPARATE AUDIT REPORT OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA ON THE ACCOUNTS OF INDIAN COUNCIL OF HISTORICAL RESEARCH FOR THE YEAR ENDED 31 MARCH 2010 138 Annual Report (2009–2010) Annual Report (2009–2010) 139 Separate Audit Report of the Comptroller & Auditor General of India on the Accounts of Indian Council of Historical Research for the year ended 31 March 2010 We have audited the attached Balance Sheet of Indian Council of Historical Research (ICHR) as at 31 March 2010 and the Income & Expenditure Account / Receipts & Payments Account for the year ended on that date under Section 20(1) of the Comptroller & Auditor General’s (Duties, Powers & Conditions of Service) Act, 1971. The audit has been entrusted for the period up to 2012-13. These financial statements include the accounts of two regional centres of ICHR. These financial statements are the responsibility of Council’s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. This Separate Audit Report contains the comments of the Comptroller and Auditor General of India (CAG) on the accounting treatments only with regard to classification, conformity with the best accounting practices, accounting standards and disclosure norms, etc. Audit observations on financial transactions with regard to compliance with the Law, Rules & Regulations (Propriety and Regularity) and efficiency-cum-performance aspects, etc., if any are reported through Inspection Reports/CAG’s Audit Reports separately. 3. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion. 4. Based on our audit, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; ii. The Balance Sheet and Income & Expenditure Account/Receipts & Payments Account dealt with by this report have not been drawn 140 Annual Report (2009–2010) up in the format approved by the Govt. of India, Ministry of Finance. iii. In our opinion, proper books of accounts and other relevant records have been maintained by the Council in so far as it appears from our examination of such books. iv. We further report that: A Balance Sheet A.1 Liabilities A.1.1 Provisions No provisions had been made for Pension, Gratuity and Leave Encashment resulting in understatement of expenditure and liabilities. The amount could not be quantified. A.2 Assets A.2.1 No depreciation had been charged on fixed assets. B. General 1. The accounts had been prepared on cash basis instead of accrual basis. 2. Double entry system of accounting has not been adopted. Journals, ledger and trial balance have not been prepared. C. Grant-in-aid: The Council received Grant-in-aid of Rs. 1293.49 lakh which includes Plan grant of Rs. 302.50 lakh (including Rs. 61.00 lakh received on 11.3.2010), grant for NER Rs. 45.00 lakh (including Rs. 11.25 received on 17.3.2010) and Non Plan grant of Rs. 945.99 lakh (including Rs. 323.00 lakh received on 17.3.2010). It had also its own receipt of Rs. 6.17 lakh (Plan: Rs. 3.97 lakh and Non-Plan: Rs. 2.20 lakh). It utilized Rs. 1198.63 lakh (Plan: Rs. 358.00 lakh and Non-Plan: Rs. 840.63 lakh). D. Management letter: Deficiencies which have not been included in the Audit Report have been brought to the notice of the Member Secretary, ICHR through a management letter issued separately for remedial / corrective action. Annual Report (2009–2010) 141 v. Subject to our observations in the preceding paragraphs, we report that the Balance Sheet and Income and Expenditure Account / Receipts and Payments Account dealt with by this report are in agreement with the books of accounts. vi. In our opinion and to the best of our information and according to the explanation given to us, the said financial statements, read together with the Accounting Policies and Notes on Accounts, and subject to the matters stated above and other matters mentioned in Annexure to this Audit Report, give a true and fair view in conformity with accounting principles generally accepted in India: a. in so far as they relate to the Balance Sheet of the state of affairs of the Indian Council of Historical Research as at 31 March 2010; and b. in so far as they relate to the Income and Expenditure Account of the surplus for the year ended on that date. For and on behalf of the C&AG of India Sd/- Director General of Audit Central Expenditure Place: New Delhi Dated: 28.9.10 142 Annual Report (2009–2010) Annexure to the Separate Audit Report 1. Adequacy on internal audit system ● The Council had set up its internal audit department w.e.f. 22 September 2008 but no intenal audit had been conducted so far. Only financial matters were routed through internal audit department. 2. Adequacy of internal control System ● The management’s response to audit objections was not effective as 47 paras pertaining to period from 1995-96 to 2008-09 were outstanding till date. 3. System of physical verification of assests ● The physical verification of fixed assets of ICHR hqrs. and two regional centres had not been conducted since June 2008 and 2000 respectively. 4. System of physical verification of inventory ● The physical verification of inventory like books and publication, consumables and stationary etc. had not been conducted since June 2008. 5. Regularity in payment of statutory dues ● As per accounts no statutory dues were outstanding for more than six months as on 31.3.2010. Annual Report (2009–2010) 143 Appendix V(A) REPLIES TO COMMENTS ON ACCOUNTS FOR 2009-10 (REPLIES TO S.A.R.) 144 Annual Report (2009–2010) Annual Report (2009–2010) 145 REPLIES TO COMMENTS ON ACOUNTS FOR 2009-10 (REPLIES TO S. A. R.) A. Balance Sheet A.1. Liabilities A.1.1 Provisions Please refer to Note No. 8 regarding retirement benefits in Schedule- XXIV: - Forming part of the accounts as at 31st March 2010, which clearly states the payments are made at the time the occasion arise on cash basis. A.2 Assets A.2.1 Please refer to Schedule XXIV – Accounting Policy No. 3 As the Council is not a profit earning organization and is fully funded by the Government of India, Depreciation on its fixed Assets is not provided by the Council. B. General B.1 Please refer to Schedule XXIV- Accounting Policy No.1 B.2. All such entries shown in Ledger are a Detail Posting Register. In addition, Classified Abstract is maintained showing booking on monthly basis. C. Grants-in-aid No Comments. 146 Annual Report (2009–2010) Annexure to Audit Report 1. Adequacy of Internal Audit system To strengthen and make more effective to Internal Audit system, the Council has recommended one post of Assistant Director (Internal Audit) 2. Adequacy of Internal Control system This is not correct to say that the response of the management to audit objection is not effective. In this connection I am to inform you that out of the 83 outstanding paras of previous year only 47 paras are now outstanding. It means that the Council took effective steps to settle outstanding paras. Now the reply of remaining outstanding paras will be submitted to the next audit party as and when it comes. 3. System of physical verification of Assets The Council has constituted two Committees for physical verification of fixed assets for Head Quarters as well as Regional Centres and report will be submitted shortly. 4. System of physical verification of inventory The Council has also constituted a Committee for physical verification of inventory and report will be submitted in due course of time. 5. Regularity in payments of statutory dues No comments Annual Report (2009–2010) 147 Appendix VI RESEARCH PROJECTS 2009-10 148 Annual Report (2009–2010) Annual Report (2009–2010) 149 RESEARCH PROJECTS 2009-10 During the year under report the Research Projects on the topic / theme noted against each were approved / awarded to the following scholars: 1. Shri Indra Bahadur Newar, Lecturer, Deptt. of History, Chaiduar College,Gohpur, Sonitpur, Assam, “Assimilation of the Nepalese in Assam vis-à-vis Socio-Economic Transformation A Case Study of Sonitpur District of Assam” (Rs. 75,000/-) 2. Dr. N.G. Mataisang W.Ramsan, Trex, D.D.K., Imphal, P.O. Lamlong, Porompat-50, Imphal (Manipur), “The Tangkhul Traditional Religious Beliefs and Practices” (Rs. 62,000/- for one year) 3. Dr. Tapti Ghatak, Reader, Deptt. of History, Acharya Profulla Chandra College, P.O. New Barrackpore, North 24, Parganas, Kolkata-700 131, “History of 24 Parganas (North and South): Compilation of Source Materials” (Rs. 2,50,000/- for two years). 4. Kumari Ambika Dhaka, House No.67, Bajrang Vihar, Near Durgapura Rly. Station, Jaipur,-302-018, “Architectural Grandeur and Empyrean Sculpture Art of Brahmanical Temples in Hadoti during Eighth- Ninth Century A.D.” (Rs. 50,000/- for two years) 5. Dr. Prasanta Kumar Nayak, Reader, Deptt. of History, Government College, Bomdila, Dist. West Aameng, Arunachal Pradesh-79001, “History of Arunachal Pradesh: A Probe into its Periodisation” (Rs.
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