LEVY OF AUDIT COST
As per the provisions in the Tamil Nadu Co-op Societies Act, 1983 and under Rule 103 of Tamil Nadu Co-operative Societies Rules 1988, Audit Fees and F R cost are being collected from Co-operative Institutions towards the audit work.
Audit fees are levied according to the grade of the auditors who are conducting the audit and on the basis of the actual time taken for the audit of accounts of the Cooperative societies concerned. The present rates of Audit fees are being collected as per G.O.Ms.No.340, Finance (CA) Department, dt: 21.09.2012. A sum of Rs.1.90 Crores had been collected as audit fees during the Financial year 2011-12.
The existing Rate of Audit Fees as fixed in the G. O. Ms. No. 340 Finance (CA) Department, dated 21.09.12 are given below:
(b) F.R.127 AUDIT:
In respect of bigger societies having more transactions with multiple activities, auditors have been engaged under Fundamental Rule 127 terms, according to which, Auditors perform audit against the posts created and the cost of establishment is fully recovered based on financial positions of the societies. Taking into consideration of the present financial crisis of the Cooperative Institutions, the Government have reduced the levy of F.R Cost from 100% to 45% with effect from 21.09.2012. A sum of Rs.9.35 Crores has been collected as FR cost during the financial year 2011-12 .
The existing Rate of F.R.Cost as fixed in the G.O.Ms.No.340 Finance(CA) Department, dated 21.09.12 are given below:
Some of the societies are exempted from payment of Audit fees, like the societies of which all the members or a majority of them are Harijans/Fishermen, Training institutes, Supervising Unions, Jaggery manufacturing societies, Palmgur Federation and all Primary Agrigultural Cooperative banks (PACBs) working at loss. (Listed below)
The following categories of Societies are exempted from the payment of Audit Fees.
1. All Societies of which all the members or a majority of them are Harijans/ Fisherman.
2. All Primary Co-operative Banks working without profit other than Rural Bank, Agricultural Bank, Land Development Banks (Now Primary Co-operative Agricultural and Rural Development Bank) and Credit Unions.
3. Co-operative Training institutes.
4. Co-operative Supervising unions.
5. Weavers Co-operative Societies which have not completed six Co-operative years from the date of commencement of Business.
6. Industrial Co-operative Societies and State Khadhi and Village Industries Board which have not completed five Co-operative years from the date of commencement of business.
7. All Jaggery manufacturing Co-operative Societies.
8. All the Co-operative Fisherman Federation.
9. All the Hand Pounding of Paddy Workers Co-operative Societies.
10. All the District Palmgur Federation.
11. All the Bhoodan and Gramdhan Co-operative Societies.
12. All Palm Leaf Products Manufacturing Co-operative Societies.
13. All other Primary Co-operative Societies other than those mentioned in item No.1 to 12 which have not completed three Co-operative years from the date of Commencement of Business.
14. This exemption shall not apply to Sugar mills and Spinning mills and Societies which have their accounts audited at their own cost.
COLLECTION OF AUDIT FEES & F.R.COST
The audit of bigger societies are being conducted throughout the year under F.R.127 terms by one or more auditors. As per F.R.127 terms, the cost of the audit post has to be recovered from the Co-operative institutions concerned. The F.R. Cost is also fixed by the Government and is being collected cadre wise as per G.O.Ms.No.340, Finance (CA) Department, dated: 21.09.2012. A sum of Rs.9.35 crores had been collected as FR Cost during the Financial year 2011-12.
THE AUDIT FEES AND F.R. COST COLLECTION FOR THE PAST 5 YEARS ( IN LAKHS):