List of Grey Areas along with common observations of audit

S. Grey areas Authority Types of Observations

No
 (A) Students Record v/s Fee and Funds
1 New Admission SOP Students allowed to enter the class room before depositing admission fee and
funds, SLC from previous school not obtained, Tuition fee and funds not
collected from the very next month mentioned(dues cleared up to) in SLC
obtained from student, Full academic session fee not obtained from the nursery
class admissions made during the academic session etc
2 Student identification number SI IDs are Not assigned on all student's related record like dossiers, fee slips, fee
ledgers, attendance record, security fee record etc
3 Students' dossiers SOP Dossiers are Not properly filled / properly maintained, timely updated, etc
4 Class wise Nominal roll of students   Class wise Nominal roll of students not maintained mentioning student details
5 Actual Strength of Students V/s Authorized Strength SOP Actual strength less than authorized (Welfare objective and Optimization objective)
6 Proper Documented Brother / Sister Tuition fee concession SOP Documented signed list not maintained, List not complete, List not updated, proper file of all
list previous versions not maintained for record etc
7 Legitimate Brother / Sister Tuition fee concession and SOP Life time for three children’s not implemented, Status not changed on change of sibling strength
Ben/FFE/FFO/Serving Concession
8 List of monthly outstanding fee of students SOP List not maintained along with financial impact and attached with progress reports
9 List of carried forward balance of advance fee received SI List not maintained along with financial impact and attached with progress reports
10 Fee rates with respect to categories SOP Old rates are charged, erroneous rates are charged, etc
11 Additional 25% fee from Ben/Ser/FFE/FFO repeaters SOP Additional 25% fee not collected from Ben/Ser/FFE/FFO repeaters
12 Monthly Progress report and its reconciliation SOP Monthly Progress report not prepared on actual student strength, wrong
reconciliation
13 Monthly Class wise Fee Collection Register SOP Fee not written in the month of collection, monthly class wise totals not made and
reconciled with fee collected as per bank statement etc
14 Date Wise Fee Collection Register SOP Register not maintained, date wise entries not made, date wise totals not tallied with date
wise bank statement etc

15 Re admission fee SOP Re admission policy not implemented

16 Late Fee Fine SOP Less collected, wrong rates used etc
S. Grey areas Type of Types of Observations
No observation
17 Absentee Fine SOP Class wise record not maintained, Less collected, wrong rates used etc
18 Project Students' Security payable SOP Maintaining Payable balance SOP not followed, register not updated, refund
policy not followed, Project Students' Security payable balance differs with HO
maintained ledger balance
19 Struct off strength   Struck off strength not mentioned in attendance and fee registers
20 SLC   School leaving certificate issued without collecting dues up to the period student
was kept enrolled in school
(B)  Employees record    
21 Employee personnel files, attendance and leave record SOP Personnel files not updated, Blank spaces in attendance register, P written
instead of signatures, register not signed by project head regularly, wrong
calculation of earned leaves availed, leaves not recorded properly etc
 (C) Expenses    
22 Salary and other major expenses SOP Excess Salary / allowances paid
23 Utilities SOP Late payment of utilities bills, Peak and off peak meters not installed for electricity
24 Budget SOP Variation in actual expenses with budget
25 Excursion trip SOP Discrepancies in excursion trip expense
26 Parents day SOP Discrepancies in parents day
27 Exam photocopy SOP Exam photocopy record not maintained student wise

28 General photocopy SOP Photocopy register not maintained

29 Rent SOP Income tax less deducted on building rent
30 General expense SOP Splitting invoices into many in purchase limit of prinicipal to avoid obtaining HO
sanction
(D)  Cash and Bank    
31 Cash book   Cash book not daily updated
32 Cash in hand balance SOP Daily Cash in hand is more than authorized limit
33 Bank reconciliations SOP Bank reconciliations not correctly maintained at month end
34 Cash payments SOP Cash payments made over authorized limit, Open cheques issued instead of
Cross cheques
 (E) Fixed Assets    
S. Grey areas Type of Types of Observations
No observation
35 New assets SOP Assets not taken on ledger charge, Coding / Marking of fixed assets not done as
per SOP etc
36 Ledgers' maintenance SOP Index pages not maintained in ledgers, Value of Fixed Assets not maintained,
Ledgers not maintained head wise, Location of assets not mentioned on ledgers,
Donated assets/personnel assets' register not maintained etc
37 Assets' maintenance SOP Out of order assets held, assets not properly safeguarded, assets not
condemned by the school, assets not in use by the school
38 Stock take listings SOP Assets listings not maintained head wise, Head wise totals not made, summary
of assets sub heads not made at the top etc.
39 Physical stock take SOP Excess/less items found in Physical Stock Take, stock take not evident in ledgers
etc
40 Annual Reconciliation with Head office record SOP Reconciliation of inventory balances with FFHO record not carried out annually
  General Guidelines:    
  All record required to be signed by the Principal must be scrutinized in the light of relevant SOPs.
  No one should be relaxed/benefitted at the expense of FF without proper SOP guidance.
  Stay Blessed
Best of Luck