CGI AUDIT REPORT LEAKED!!!!!!

CGI AUDIT REPORT –SEE WHETHER EVERY THING IS OK

Auditor – K A Felix & Co, Cost Accountants

Audit Report Date: 27.04.2012

Audit Period: 01.01.2009-31.12.2012

Note: comments offered here are by a member of CGI Action Council on behalf of CGI management/overseer. You are also welcome to offer YOUR comments and try to give our INNOCENT overseer a golden handshake.

7.1.3.1 ‘the major concern in this area is the donation coupons printed and issued for the fund mobilization for the new office complex. The donation coupons are printed and distributed without a serial number for tracing and verification’.

Comments- who authorized you to judge us? In COG we don’t believe in serial numbers, we want money only.

Action council has already told this to the public.

7.2.3 ‘During the preliminary visit for the audit we have noticed that most of the vouchers doesn’t have the signature of an approval authority and we have enquired about this to the accountant. To our surprise while we started the audit after couple of days, we found that rubber stamp of Overseers signature is affixed on all vouchers. How can an authority exercise its diligence in sanctioning a payment , if the voucher are being sealed with a rubber stamp signature and what is the purpose of such exercise ,long after releasing the payment’.

Comments-It is not a big mistake at all. Only thing is somebody might have made some money out of it. We simply keep unsigned vouchers and take some money as we like. This is not a fraud at all.

7.2.3.3 ‘Cash/bank payment vouchers are not pre-numbered and the voucher numbers are made after a long period, which can be easily identifiable based on the pen ink as well as the order in which it is mentioned.’

Comments- As we have told you we don’t believe in pre-numbering the vouchers. Then only we can we can number them on a latter date. But don’t call this a fraud; you will be cursed by God.

7.2.3.4 ‘We found many alterations and corrections the manual cash book balance; for example on 31.03.2009 the local cash book balance was checked, verified and signed by the accountant for a cash balance of INR 3.30 lakhs and the same has been carry forwarded to the next year books. But later there was additional entry in the books for INR 1.60 lakhs and balances in next year books corrected till 15.04.2009 and there after the closing balance are written with pencil till the end of April 2009. We feet that the said entries of INR 1.60 lakhs are made on later date. [annexure 2-samples of dated on which we found alternation/correction in daily closing cash balanced in local cash book]’

Comment- as per annexure 2 we have corrected the cash book only 90 times . Is it a big mistake? We will do whatever we want. Who care about the corrections? After all what is a cash book? We know only about a pass book and passport. You people are calling this a fraud. As an administrative head I am not responsible for this. You know the accountant has done it.

7.2.3.5 ‘The vouchers for the above transactions are also not tagged along with regular vouchers and on our enquiry, it was presented and found to be not matching with the vouchers generated at the period and the supporting documents quality all seems to be new.’

Comment-  who told you to see all such things. Again I am telling you this is not a big thing at all.

7.2.3.6 ‘We found that the correction in the manual cash book on a later date is a regular practice, but the books maintained before 2008-09 in manual system was very clear and without alterations’.

Comments – people who managed the system before 2008-2009 did not know any accounting rules. I am so liberal and made my associates to enjoy during my tenure

7.2.3.10 ‘another major concern is the cases of cash payments without the supporting documents. Many payments are being released just on the basis of a payment voucher. Due to lack of supporting document the verifiability is in question. The summary of such transactions identified are as under’,

Local account	56,90,196.00
FC Account	13,66,257.00
Total	70,56,453.00

Comments- payment of Rs 70.56 lakhs with out supporting voucher is done by the accountant. Hence I am not responsible for this. Otherwise I will sell my properties and compensate the amount. Un- fortunately the accountant is not having any property to sell.

7.2.3.11 ‘it is also noted that the balance as per manual cash book to not match with Tally cash book in many days. A few examples are noted below. As per the explanations given by the accounts, there are some mistakes in manual cash book which were rectified in the tally accounts on a later period.’

Date	Balance as per manual book	Balance as per  Tally	Difference
01.12.2009	169650	153127
16.04.2010	384879	152432
21.04.2010	305475	118857

Comment- What is there in an opening balance and closing balance?  The mistake is with the accountant. He has not learned the Tally properly. Money has not gone anywhere. I am sure it was there. I don’t have ‘silver and gold’.

7.2.3.12 ‘In the same model, previous days cash book balance do not match with the next day’s opening balance and the same has been rectified in the Tally cash book. Explanation given for the above is also mistake from accountant for that period. As per the closing balance and opening balance of the two days, we need to accept that there was a mistake from accountant in manual accounts for ` 2.26 lakhs, as there is supporting vouchers kept in the file’.

Date	Opening Balance	Receipts	Payments	Closing balance
15.04.2010	141797.00	26355.00	10096.00	158056.00
16.04.2010	384879.00	111950.00	624.00	497453.00

Comments- after all we are all very honest who care about these findings?

7.2.3.13 ‘manual cash book entry for the period 21.04.2010 to 02.05.2010 is missing and explanation given for the same is again mistake form the accountant, but we found entries in the tally accounts.’

Comments-  Why the auditor is harping about a book which is missing. We can supply any number of books he wants.

7.5.5.3 ‘The same person appointed as the site in charge for the YWEA project is the contractor for the office building and there is no independent site in charge appointed for the project. This is ma major deviation form the best practices’.

Comments- this is not a big issue. We give contracts to our best friends who can help us. If independent site in charge is posted he will be a nuisance to us.

7.5.5.4 ‘There is no cross verification method for the goods accepted by the contractor on behalf of COG. Site inventory accounting is also absent and it will be very difficult to track loss/theft of materials from the site’.

Comment-  what cross verification.  We have informed you through our news letter that every thing is OK here. You have to simply believe it.

7.5.5.5 ‘There are major deviations from the approved drawings in the actual construction and council approval notes are not received’.

Comments- don’t you know that projects are goose which lays golden eggs. If deviations are not allowed how can we survive?

7.5.5.6 ‘We are surprised to see the electrical work of both YWEA project as well as new office complex project. We found that the electric points given to an area is much higher that what is required for. For example in YWEA project, in a small area, there is more than 5 fans are fitted and in the same way in single hall we found nearly 7 number of fan points. This overdoing of electrical fittings followed in the new office complex also’.

Comments – ARAY BHAI don’t you know that it is ‘KATTILE THADI THEVERUDE AANA, VALIYADA VALI’

7.5.5.7 ‘We found that in the new office complex project many light points are not usable due to wrong position of the same. This seems to be wrong planning in the electrical drawings’.

Comments- we have not learned any drawings in our school days.

7.5.5.9 ‘missing of materials is another area. There were purchase of 24 number of AC [Asbestos] sheets on 20.09.2011. We couldn’t find material while trying to identifying the item physically. The explanation given to us that the sheet got damaged during this short period’.

Comments- a hurricane appeared in the last Big Move convention  and smashed all the sheets.

7.5.5.10 ‘we found that running bills of YWEA project were prepared by the site in charge himself and approved for payment. We are not provided with the full set of running bills for the YWEA project’.

Comments- we certify that the site in charge is an honest chap, hence full set of running bills are not at all required.

7.5.5.11 ‘for new office complex project, the contractor himself certifies the project progress and we haven’t found any other person cross checking the running bills’.

Comments- the contractor is every thing to us. That is why we accepted his offer letter. You can see that the auditor is silent about awarding the contact.

7.5.5.12 ‘it is also noted that the contractor himself initiate the purchase materials from the different suppliers and no quotation found except for purchase of cement and steel’

Comments- the contractor is deeply committed to COG and its projects. That is why he is arranging the materials form different suppliers by spending his time and energy.

8.1 ‘After detailed audit of the transactions happened over three years, we don’t have a feel of any major fraud or misappropriation of money.  We haven’t come across with any concrete evidence to establish a suspicion of malafide transactions’.

Comments- GLORY! This is the reason why we have entrusted the audit to a cost accountant instead of a statutory auditor [chartered accountant]. Even though he has pointed out so many adverse things, we managed to get a certificate like this. You know we got a clean chit from international CGI based on this comment.

8.2 ‘However the weakness of the system and lack of proper system has created enough room for mistakes and loss of money through different routs. The authorities who are vested with the trusteeship should have exercised more diligence to keep the accounts and records in a flaw less manner’.

Comments- See the auditor is playing. In one place he says nothing is there, But here he says loss of money is there through different roots. We can entrust the investigation to CBI to find out how much money has gone and where it has gone.