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Audit_of_Educational_institution.pptx.pdf-1 (1)

The document outlines the audit procedures for educational institutions, focusing on the systematic evaluation of financial statements, income sources, and expenditures. It details the necessary steps for verifying receipts, checking authorizations, and ensuring compliance with governing laws. Additionally, it emphasizes the importance of internal control systems and proper documentation of income and expenditures related to various fees and donations.

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Retchell Ellena Estimago
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11 views19 pages

Audit_of_Educational_institution.pptx.pdf-1 (1)

The document outlines the audit procedures for educational institutions, focusing on the systematic evaluation of financial statements, income sources, and expenditures. It details the necessary steps for verifying receipts, checking authorizations, and ensuring compliance with governing laws. Additionally, it emphasizes the importance of internal control systems and proper documentation of income and expenditures related to various fees and donations.

Uploaded by

Retchell Ellena Estimago
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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AUDIT OF

EDUCATIONAL
INSTITUTIONS
Sometimes referred to as
Audit of Books in the
education industry, is a
Audit of process of systematic
evaluation and
Educational documentation of financial
Institution statements, taxes,
expenditures, and incomes,
obtained by the
educational organization.
Main Source of Collection:
1.Grant from government 2.Donation
in cash and in kind. 3. Income from
Investments. 4. Admission fees
5.Tuition fees 6.Fines and Penalties 7.
Contribution towards specific fund.
Audit Procedure for
Educational Institution
 Governing Law
Auditor must follow trust deeds and other
relevant rules and regulations of accounts
keeping.
Audit Procedure for
Educational Institution
Budget Copy

An auditor should also have access to a copy


of the institution’s budget plan or the annual
financial statement.
Audit Procedure for
Educational Institution
Verifying Receipts

Examine the monthly student fee receipts,


examination fees, fees for laboratory, sports,
and fines etc. The auditor should also check
the carbon copies from receipt book
counterfoils.
Audit Procedure for
Educational Institution
Checking Proper Authorization

When a student gets a scholarship or


concession in a particular income, overhead, an
auditor must check for proper authorization. He
should then intimate those authorities again
about the fees relaxation.
Audit Procedure for
Educational Institution
Careful Vouching
An auditor is required to vouch carefully as
there are many expenditure heads. More heads
make it more complicated to categorize them
properly. An auditor should not make any
mistakes in vouching.
Audit Procedure for
Educational Institution
Checking donations

An education institution may receive a


donation for student welfare. These are
not general income and should be placed in
proper heads as specified by the governing
body.
Audit of Educational Institution
Procedures
Aspects Governing Law
Understand by which law such schools
Audited Financial Statements or colleges are governed.

Standard Operating Procedure Analyze the Previous Audited Report


along with Financial Statements

Board Minutes Read SOP’s OF Schools or college to


understand the working culture

Read board minutes to understand


what decisions are taken by the
management
Audit of Tuition Fee of School One of the most important aspect
or College of audit of educational institution.
Audit of Educational Institution

Aspects Procedures
Audit of Admission Fee This is a one time fee that
educational institution received
from the students. Such fee must
be reconciled with
admission/registration and
enrollment no.
Audit of Donation Received Donation in cash or in kind.
Audit of Sports Equipment Physical verification can be
and similar aspect carried out for high value sports
equipment. Any disposal of such
equipment should be dully
accounted for
Audit of Educational Institution

Aspects Procedures

Audit of Building Fund and any Any utilization of such fund must be
other similar funds dully approved by board

Checking of Grant Received Checked whether such government


grant are revenue in nature or has to
be capitalized.
Audit of Teacher Salary Independent confirmation can be
obtained from their monthly salary
and can be reconciled with salary cost
Internal Control System
 Whether internal control and internal check system is
working, if yes, how effectively.
 There is any system to physically verify the fixed assets,
stores and consumables at regular interval.
 Verify the control system concerning proper authorization,
obtaining quotations, proper maintenance of accounts and
record regarding purchase of fixed assets, purchase of
material, investment, etc.
Internal Control System

 Waiver of fees is properly sanctioned by appropriate


authorities.
 Whether collected fees is deposited in bank on a daily
basis.
 Whether approved list of supplier of sports material,
stationery, lab items are readily available.
 Whether control system for payment is adequate or not.
Audit Income of Educational
Institutions
1.Fees and charges received on account of admission fees,
tuition fees, sports fees, examination fees etc. should be
verified based on the approved fees structure.
2.Verification of counterfoil copies of fees receipt with fees
received register should be done.
3.Prescribed conditions by the State Government and the
University Grants Commission should be verified whether
fulfilled or not.
4.Cash book should be verified with counterfoil of receipt book
and fees register.
5.Fees receivable and actual fees received should be
reconciled.
Audit Income of
Educational Institutions
6. Charges and fees received and receivable should be examined on
account of hostel accommodation, mess, housekeeping and clothing,
etc.
7. Cash book should be verified with the donation received register.
8. Donation received should be accounted for according to the nature
of donation.
9.The purpose and utilization of grant should be same.
Expenditure of Educational
Institution
1. Payment made on account of salary should be verified from
terms of appointment and increment policy. Auditor should verify
the computation of salary and check whether all required
deductions are made out of it or not like advance salary, loan
installment, absence from duty and etc.
2. Check whether the laws are properly followed or not.
3. Utilities expense and all purchases should be properly
authorized by the assigned person.
Audit of Assets and Liabilities
1.Verification of Assets register should be done considering
grants on purchase of assets, if any received from State
Government/ University Grant Commission (UGC).
2.Verification of depreciation is very important; it should be
according to useful life of assets or as per the Companies Act,
whichever is applicable.
3. Donation is received in the form of investment, an Auditor
has to check all related correspondence with the donor.
4.All the applicable requirements of law should be fulfilled for
the purchase of investments and fixed assets.
THANK
YOU!

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