The Director of Cooperative Audit is the Registrar of Cooperative Audit appointed by the Government in exercise of powers conferred by Section 80 of Tamil Nadu Cooperatives Societies Act, 1983 to exercise the powers of Registrar under Section 80 of Tamil Nadu Cooperative Societies Act, read with the rules 101,102 &103 of Tamil Nadu Cooperative Rules, 1988. The Government also conferred powers under Section 72, 80 & 148 of Tamil Nadu Cooperative Societies Act, 1983 on the Director Of Cooperative Audit. As per the above statutory provisions,the Director Of Cooperative Audit is responsible for conducting audit of all cooperative institutions in Tamil Nadu except Milk Cooperative Societies,(for audit of Milk Cooperative Societies there is a separate department under the head of Director of Milk Cooperative Audit).The main function of the Cooperative Audit Department is to conduct audit of all Cooperative Societies functioning under the administrative control of 14 Functional Registrars except the Multi State Cooperatives and Milk Cooperatives.
HEAD OFFICE LEVEL
1. Formulating the audit procedure to conduct the audit of Cooperative societies
2. Fixing the annual target and appraising the audit program of Joint Director and Assistant Director of Cooperative Audit for completion of audit.
3. Monitoring Audit progress by getting monthly report from the subordinate officers and conducting periodical review meetings.
4. Approval of Audit program and issue of audit certificate of Apex Cooperative institutions.
5. Monitoring and reviewing the collection of audit cost i.e. Audit cost and F.R. cost (Fundamental rule 127).
6. Monitoring and sending the special reports relating to serious irregularities of Cooperative Societies to Functional Registrars and Government.
7. Arrangement for stock verification at the end of Financial year (31st March)
8. Conducting Departmental Revenue Audit.
9. Monitoring and reviewing Liquidation Audit.
10. Refund of Revenue Deposit.
11. Re audit and Revision of Audit certificate.
12. Maintaining and Monitoring the Audit squad. Conducting the special Audit through the Audit squad.
REGIONAL OFFICE LEVEL
1. Approval of Audit program and issue of audit certificate of District level and specified Cooperative institutions.
2. Reviewing the audit progress of Assistant Director Of Cooperative Audit by getting the monthly reports and conducting monthly meetings.
3. Reviewing the collection of Audit cost at regional level.
4. Sending the special reports to regional level administrative officers.
5. Reporting to the Director on the progress of above activities.
6. Maintaining and Monitoring the work of Audit squad.
7. Department Revenue Audit and Inspection of Offices of Assistant Director Of Cooperative Audit Offices in the region.
8. Conducting the Test Audit of selected societies.
DISTRICT OFFICE LEVEL
1. Finalise the list of societies to conduct the audit every year.
2. Draw auditor wise monthly and manual audit program for the completion of audit.
3. Get the fortnight work, diaries from the auditors and review their work.
4. Receive the Final Audit Memorandum from the auditors and issue audit certificate
5. Sending the Final Audit Memorandum to societies, financial banks and administrative offices.
6. Levy and collection of of Audit Cost (Audit Fees and F.R. cost) from the Cooperative institutions.
7. Sending the special reports to district level administrative officers.
8. Conducting the Test Audit of selected societies.
9. Conducting the Audit of liquidated societies till the financial closure.
10. Arranging for the verification of stocks held by the Cooperatives once in a year.
11. Reporting to the Joint Director of Cooperative Audit and Director of Cooperative Audit on the progress of above activities.
12. Taking action on the Representations &Clarifications received from the Societies, Administrative officers and Subordinate staff (Auditors).
13. Collection and Refund of Revenue Deposits for the F.R. Posts.
14. Reaudit and Revision of Audit certificates.
The audit of Co-operative Societies are being conducted in two ways :
Concurrent Audit and
2. F.R.127 Audit.
The Concurrent Auditors are required to conduct the audit of small Societies whose final audit would be completed within a period of 45 days and below. These small Co-operative societies were grouped into single audit chart and the same was entrusted to an auditor in a particular Head quarters. He will conduct and complete the audit of these societies one by one. The Audit Fees are levied according to the grade of the Auditor conducting the audit and on the basis of the actual man days taken for audit of accounts of the Societies concerned.
2. F.R.127 AUDIT:
In the bigger type of societies having huge transaction where the requirement of man days for audit exceeds 45 days, auditor posts are sanctioned under F.R. 127 terms. The Director of Co-operative Audit appoints one or more auditors specially or exclusively for the audit of accounts of one or more Societies for which he gets bulk sanction of posts from the Government for a specified period under F.R..127 terms and appoints them to audit the accounts of the Societies.
Around 13622 Cooperative Societies are being audited by Cooperative Audit Department. These Societies are under the control of various Functional Registrars as follows: