XIII–XVI. Accounts, profits, irrecoverable dues and audit

Bye-laws 141–153

Bye-law 141. Books of Accounts, Registers and other books to be maintained

The Society shall maintain the following books of accounts, records and Registers.

1. The Register of Members in “I” form prescribed under Rule 32 of the MCS rules 1961.
2. The List of Members in ‘J’ form prescribed under Rule 33 of the MCS rules
3. The Cash Book
4. The General Ledger,
5. The Personal Ledger.
6. The Sinking Fund Register.
7. The Audit Rectification Register in ‘O’ form, prescribed under the MCS rules 1961.
8. The Investment Register.
9. The Nomination Register.
10. The Society / Members Loan Register/Mortgage Register.
11. The Minutes Book for the meetings of the Committee of the Society.
12. The Minutes Book for the meetings of the General Body of the Society.
13. The Property register and furniture, fixtures and office equipment.
14. The Structural and Fire Audit Register and Lift Inspection Record
15. The Register of Nominal Members (Tenant occupant)
16. The Register for Active Members

Bye-law 142. Other Record to be Maintained Separately

The Society shall maintain separate files for the following subjects :

i. Applications for Membership.
ii. Applications for nominal / Associate Membership
iii. Letters of resignations of Membership including associate and
iv. Nominal Membership.
v. Applications for transfer of shares and/or interest in the
vi. Capital /property of the Society.
vii. Cases of expulsion of Members.
viii. Nominations made by Members including revocations thereof.
ix. Separate file for correspondence entered into with each Member.
x. Correspondence with the Co-Operative Registrar.
xi. Correspondence on Property Taxes including Non-agricultural taxes.
xii. Correspondence on common electric supply.
xiii. Correspondence about Conveyance of the property.
xiv. All Types of Agreements, with papers connected thereto.
xv. Approved plans of construction and correspondence thereon.
xvi. Applications tor allotment of parking spaces.
xvii. Vouchers, along with the bills relating thereto arranged in order of entries in the cash book and the journal.
xviii. Counterfoils of challans for credits of amounts into the bank, arranged in order of dates of credits.
xix. Counterfoils of cheques issued.
xx. Counterfoils of share certificates.
xxi. Applications for duplicate share certificates.
xxii. Application for registration of the Society, the copy of the bye-laws and amendments thereto.
xxiii. A certificate of registration fully framed.
xxiv. Counterfoils of receipts or carbon copies of receipts issued by the Society.
xxv. Counterfoils of bills or carbon copies of bills for the Society’s charges.
xxvi. Correspondence about loan received and property of the Society mortgaged.
xxvii. Notices and Agenda of the Meetings of the Committee and general body of the Society.
xxviii. Periodical statements of Accounts prepared by the Society.
xxix. Committee’s annual reports on the working of the Society.
xxx. Audit memos received from the Statutory Auditors, with rectification reports thereon.
xxxi. Audit reports received from Internal Auditors, with rectification reports thereon.
xxxii. Papers pertaining to the election of the Committee.
xxxiii. Complaint from Members and correspondence thereof.

Note: The Society shall also maintain separate files relating to other subjects not expressly indicated above.

Bye-law 143. Secretary to maintain and keep upto date the Accounts Books etc

Unless otherwise decided by the Committee, it shall be the responsibility of the Secretary of the Society to maintain and keep up to date the Account Books, Registers and other Records mentioned under the bye-laws Nos. 141 and 142.

Bye-law 144. Limit for cash on Hand limit

The Secretary of the Society or the paid employee, authorised by the Committee in that behalf, may retain in his personal custody, at the close of every day, a sum, not exceeding Rs. 5,000 (Rupees Five Thousand only),for petty expenses. If due to unavoidable circumstances, the cash in hand has exceeded the above limit, the excess cash shall be credited into the bank within the next three days by the Secretary or any other person authorised by the Committee to keep cash in hand.

Bye-law 145. Payment beyond certain Limit by Cheques

All payments in excess of Rs.1500/- (Rupees Fifteen Hundred) shall be made by means of crossed a/c payee’s cheques.

Bye-law 146. Finalization of Accounts

146(a) Finalisation of Accounts

Within 45 days of the close of every co-operative year, the Secretary of the Society or any other person, authorised by the Committee in that behalf, shall finalise the accounts of the preceding co-operative year, prepare the Receipts and Payments Statement, the Income and Expenditure Statement for the said year and the Balance Sheet as at the close of the said year in the forms prescribed under Rule 62(i) of MCS Rules 1961 alongwith the list of Active Members and Non-Active Members as at the close of the preceding co-operative year, with amounts to their credit in the share capital account and deposits, if any, the schedules of investments, the debtors, the creditors, the furniture, the fixtures and the office equipments etc. .

146(b) Filling of Annual Returns

The Society shall prepare and file Annual Returns as prescribed in the Act & the Rules. The Society shall file Annual Returns on or before 30th September of every year with the Registrar including the following matters, namely

i. Annual Reports of Societies activities.
ii. Societies Audited Statement of Accounts;
iii. Plans for surplus disposal as approved by the General Body of the Society;
iv. List of amendments to the Byelaws of the Society, if any;
v. Declaration regarding date of holding of its General Body Meeting and conduct of elections when due;
vi. Any other information required by the Registrar in pursuance of any of the provisions of the Act.
vii. List of Active and Non-Active Members.
viii. Every Society shall also file a Return regarding the name of the Auditor or Auditing Firm from a Panel Approved by a State Government in this behalf, appointed in the General Body Meeting together with his written consent within a period of one month from the date of Annual General Body Meeting.
ix. If the Society fails to intimate and file the Returns as provided by section 75(2A) and section 79(1B), the Registrar may cause Societies accounts to be audited by appointing an Auditor from the panel of Auditors.

Bye-law 147. Security by the Employees

Every paid employee, holding any office in the Society and handling cash and/or securities of the Society, shall furnish such security, as is provided under Rule 107B of the MCS Rules 1961.

Bye-law 148. Contribution to the Statutory Reserve Fund of the Society

148(a) Contribution to Statutory Reserve Fund

After providing for the interest upon any loans and deposits and after making such other deductions as required under Section 65(1) and 66 of the MCS Act 1960 and Rule 49A of MCS Rules 1961, twenty five percent (25%) of the net profit of all the business carried on by or on account of the Society, shall be placed at the credit of the Reserve Fund of the Society.

148(b) Distribution of remaining profit of the Society

The remaining seventy five percent (75%) of the net profit of the Society shall be utilised as provided under Rule 50, 51, 52, 53 of MCS Rule 1961.

i. To pay dividend not exceeding 15 percent per annum, upon the paid up share capital at such rate as the Committee may recommend and the Annual General Body Meeting may approve. The dividend on shares shall be paid to the registered holders of such shares according to the books of the Society as on the last day of the preceding co-operative year.
ii. To pay honorarium to office-bearers of the Society not exceeding fifteen percent (15%) of the net surplus to reward them for the sacrifice of their valuable time for the working of the Society or as decided by the General Body Meeting
iii. To allocate to a Common Welfare Fund, such part of the profit as the Annual Meeting of the General Body may determine, to be utilised in furtherance of
iv. the objects specified in the bye-law No. 5(d).
v. The balance, if any, shall be carried forward or dealt with in such manner as the Annual General Body Meeting, on the recommendations of the Committee, may determine.

Bye-law 149. Amounts which could be written off:

Subject to the bye-law no. 150, the Society may write off Society’s charges due from the Members, the expenses incurred on recovery thereof and the accumulated losses, which are certified as irrecoverable by the Statutory Auditor, appointed under section 81 of the Act.

Bye-law 150. Procedure to be followed before writing off any Account

The amounts mentioned in the bye-law no. 149 shall not be written off unless:

150(a)

the meeting of the General Body of the Society has given due sanction for writing off the amounts.

150(b)

the approval of the financing agency to the writing off of the amounts, if the Society is indebted to it.

150(c)

the approval of the Registering Authority is obtained.

Provided that, if the Society is affiliated to the District Central Cooperative Bank or any other financing agency but is not indebted to it the permission of the Bank or the financing agency is not necessary, Provided further that, if the Society is classified as A or B at the last Audit, no such permission of the Bank or the financing agency or the Registering Authority is necessary, if there is sufficient balance in the Bad Debt Fund, specially created for the purpose to cover the amount proposed to be written off.

Bye-law 151

151(a) Appointment of Auditors

The Society shall appoint the Statutory Auditor in its General Body Meeting from the panel of Auditors approved by State Govt. and same Statutory Auditor shall not be appointed for more than two consecutive years. The Statutory Auditor shall submit his Audit Report as provided in section 81 of the Act.

151(b) Responsibility of the Committee to get the Accounts Audited

It shall be the responsibility of the Committee to get the Accounts Audited within a period of six months from the closure of financial year and in any case before issuance of Notice of the holding of the Annual General Body Meeting.

151(c) The Remuneration of Auditors

The Remuneration of Auditors so appointed shall be decided by the General Body Meeting of the Society.

151(d)

The Society may, if it considers it necessary, appoint an internal Auditor, to audit the accounts of the Society, at the Annual General Body Meeting

Bye-law 152. Secretary to produce books, register, records etc. to Internal/Statutory Auditors

Bye-law 153

153(a) Preparation of Audit Rectification Report

On receipt of the audit reports from the Statutory and Internal Auditors, the Secretary of the Society shall prepare draft audit rectification reports on the objections raised and suggestions made, in the Audit rectification Report in form ‘0’ prescribed under Rule 73 of the MCS Rules 1961 and place the same before the meeting of the Committee, held next after the date of the receipt of the audit reports, for its approval. The Audit Rectification shall be done by the Committee within three months from the date of audit report. The committee shall submit Audit Rectification Report to the Registrar and the Annual General Body Meeting of the Society.

153(b)

If the Committee of the Society fails to submit Audit Rectification Report to the Registrar and the Annual General Body Meeting, all the Members of the Committee shall be deemed to have committed an Offence under section 146 of the Act and shall be liable for Penalty under section 147 of the Act.