.A AJIT K. JAIN & ASSOCIATES City Tower, 2nd Floor, Circular Road, Dimapur - 797 112 [NAGALAND], Ph. 03862- 2271811231513, Fax: 03862-227181, E-mail: caajit@yahoo.coml caajitjain@gmail.com AUDIT REPORT IN RESPECT OF TI POOL FUND To, The Project Director Nagaland State AIDS Control society Kohima -1. Nagaland. We have audited the accompanying special purpose Cash Flow Statement (Receipts & Payment Account) of Nagaland State AIDS Control Society in respect of TI POOL FUND for the year ended 31st March, 2019 and Income & Expenditure Account and Balance Sheet in respect of TI POOL FUND for the year ended on that date. The statement is the responsibility of the management of Nagaland State AIDS Control Society. Our responsibility is to express an opinion on the accompanying statement based on our audit. We conducted our audit in accordance with the standards prescribed by the ICAl. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements a, free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The policy management of Nagaland State AIDS Control Society is to prepare the accompanying statements on the cash receipts and disbursement basis in conformity with the standards prescribed by the ICAl for Cash Accounting. On this basis cash receipts are recognized when received and cash expenditures are recognized when paid rather than when incurred. In our opinion, the accompanying statement referred to above gives a true and fair view of (or presents fairly, in all material respects) the cash credits and disbursements of the program during the year ended 31St March, 2019 and Income & Expenditure Account and Balance Sheet in respect of TI POOL FUND for the year ended on that date of the program in accordance with the standards prescribed bi the ICAl subject t our observation as placed in Management letter. Our audits were conducted for the purpose of forming an opinion on the special purpose financial statement taken as a whole. For AJIT K. JAIN & ASSOCIATES Chartered Accountants FRN : 319201 E ,AJIT JA N) M.'No. 054 5 ,I-red PLACE DIMAPUR DATE 21stJune, 2019. ANNEXURE TO AUDIT REPORT ON TI POOL FUND FOR THE FY: 2018-2019. Review of Vouchers: > System generated vouchers are used. The supporting evidences such as cash memo, invoice, bills, etc. are attached along with the vouchers. In few cases un-authenticated supporting bills were attached. As per the explanation provided to us in some areas and for some expenses it is not possible to receive proper pre-printed machine made generated bills. Review of Stock: t Physical stock verification (e.g. JEC materials, medicine, needle and syringe etc.) was done by the management and it was found correct on 31.03.2019. > The management is maintained separate stock register for each stock item. Review of Fixed Assets: > Fixed Assets has been maintained as per NACO's guidelines and physical verification was done by the management on 31.03.2019. Review of Advances: > There was no major long outstanding advance against NGO's/others as on 31.03.2019. Bank Reconciliation Statement: > Bank Reconciliation Statement has been maintained in the NACO's software and it was taken print out on monthly basis. Fund Utilisation: > The fund utilization has been generally-less than the budgeted amount. Mode of Payment: > The payments have been made through PFMS. Annual Salary Revised for Contractual Staff: > Salary of all the staff members has been revised in terms of NACO's letter No. A-11011/23/2013- DAC (HR) Government of India, MoH&FW, NACO, Dated I1h April 2017. As on 31" March 2019 Financial burden for SACS to clear off the Arrear liability is Rs 450.00 Lakhs. NXN~ &Ass 'VI rn DIM UR 4A Procurement procedures: > Procurement of materials/goods, etc has been done on the basis of tenders. On the basis of tenders received from the respective suppliers and with reference to the general market rate of the items, company price, the rates of the items have been fixed by the procurement committee. > All the relevant documents regarding purchase like tender advertisement, comparative statement, purchase orders, etc are kept in the procurement file. > Expenditure is incurred with reference to the approved budgetary allocation in case the budget is exceeding than proper re-appropriation duly approved by the competent authority. Statutory Compliances: > Deduction of Income Tax, TDS, GST and Professional Tax has been made from all payments where applicable. The same have also been deposited timely to the Central/State Government account. > The Society is registered u/s 12A of the Income Tax Act, 1961. >N SACS is registered under Employee Provident Fund, it is observed payment not made on due date. As per explanations provided to us, fund not received on time from NACO. Internal Audit of NGO's > The Payment has been made through PFMS (Salary and Other Cost). > The supporting evidences such as cash memo, invoice, bills, etc. are not Pre-Printed in some cases. As per the explanation provided to us in remote areas it is not possible to receive proper pre-printed machine made generated bills. > Temporary Loan received in cash. Compliance of previous year audit observations: > Action Taken Report(ATR) on the observations of the previous year Statutory Audit Report and Internal AUdit Report have been submitted to MoH&FW, NACO Pt A Nagaland SACS - TI POOL FUND IDraft] Health & Family Welfare Department New Secretariat Building, Kohima - 797001 National AIDS Control Project - Phase TV Balance Sheet For The Period From 01-Apr-2018 To :31-Mar-2019 Figures for the Figpres for the Figuures f&r th Figoes for the previous Period Schedule currentPerod previous>Pe-iod Schedde arrent Period (Rs.) LI ÅILITIES Reference (Rs.) Rs. ASS TS Refer·ence 4,036,318.97 GENERAL FUND 01 102,342.97 4,935,613.00 FIXED ASSETS 02 4,935,613.00 CURRENT LIABILITIES AND CURRENT ASSETS, LOANS AND PROVISIONS ADVANCES 0,00 CURRENT LIABILITIES 0501 0.00 66,598.97 CURRENT ASSETS 0301 54,976.97 4,935.613.00 FIXED ASSET FUND 4,935,613.00 3,969,720.00 LOANS AND ADVANCES 0401 47,366.00 8,971,931.97 5,037,955.97 8,971,931.97 5,037,955.97 For A T < JAIN & ASSOCIAI& Chartered Accruntants o. 054 5 Auditor RN 31920 F Proje e t r X3R SNagaland 5. oiSociety 31-»ar-i8 rRculas s.) Advance to NGOs 3,718.00 3,903,644.00 Advance to Staff 0.00 10,000.00 Advance to Distriet Hospitals 43,648.00 56,076.00 Total 47,366.00 3,969,720.00 CURRENT LIABILITIES Schedule 0501 Figures in Rupees ÅS at å at 31-Mar-19 31-Mar-IS e ri ars