STATUS
OF CO-OPERATIVE BANK
The
Department of Co-operation is headed by the Registrar of
Co-operative Societies who looks after the administrative
matters relating to 11690 Co-operative Societies. The affairs
of the following categories of Co-operatives are administered
by the Head of Department noted against each to whom the
powers of Registrar of Co-operative Societies have been
delegated by Government.
| Sl.
No. |
Type
of Societies |
Number |
Head
of Department |
| 1 |
Handloom
Co-operatives |
605 |
Director
of Industries and Commerce |
| 2 |
Coir
Co-operatives |
705 |
Director
of Coir Development |
| 3 |
Khadi
and Village Industries
Co-operatives |
2342 |
Secretary,
Khadi and Village Industries Board |
| 4 |
Other
Industrial Co-operatives |
2018 |
Director
of Industries and Commerce |
| 5 |
Milk
Marketing Co-operatives |
618 |
Director
of Diary Development |
| 6 |
Fisheries
Co-operatives |
618 |
Director
of Fisheries |
| 7 |
Primary
APCOS |
2486 |
Director
of Diary Development |
Responsibility
to conduct the audit of all Co-operatives is vested with
the Registrar of Co-operative Societies as per Government
Order No.413/C3/69/AD dated 8.12.1969.
At
the Head Quarters, Registrar of Co-operative Societies is
assisted by five Additional Registrar 3 Joint Registrars,
Finance Officer and Law Officer. Portfolios handled by
these officers are as shown below.
| 1 |
Additional
Registrar (Credit) |
Affairs
relating to Credit Co- operatives/ Banks, Vigilance
Wing and Nodal Officer for implementing Plan Schemes |
| 2 |
Additional
Registrar (General) |
Establishment
matters General administration and affairs to Co-operative
Education and Training |
| 3 |
Additional
Registrar (Consumer) |
Affairs
relating to Consumer Co-operatives Federation, Wholesale
Stores Miscellaneous and Housing Co-operatives |
| 4 |
Additional
Registrar (ICDP) |
Monitoring
ICDP Programmes implemented by NCDC |
| 5 |
Additional
Registrar (Audit) |
Matters
related to the Audit of Co-operatives |
| 6 |
Joint
Registrar (Marketing) |
Matters
relating to the Marketing and Processing Co-operatives |
| 7 |
Joint
Registrar (Vigilance) |
Matters
related to Vigilance Enquiry and General Matters |
| 8 |
Joint
Registrar (SC/ST) |
Matters
related to employees of Co-operative Societies and
SC/ST Co-operatives |
| 9 |
Finance
Officer |
Posted
from Finance Department. Advises Registrar Co-operative
Societies in financial matters |
| 10 |
Law
Officer |
Post
from Law Department. Advises Registrar of Co-operative
Societies in legal matters |
The
above officers are assisted by Deputy Registrars, Assistant
Registrars and Inspectors of Co-0operative Societies in
Head Office.
The
functions of the Department is divided into two compartments
at District and Taluk level viz: Administration and Audit
Wing.
Administration
wing
The
Joint Registrar of Co-operative Societies (General) is the
District level officer supervising and controlling the affairs
of Co-operative Societies functioning under Co-operative
Department. Deputy Registrar (Administration) Assistant
Registrar (Planning) and Assistant Registrar (SC/ST) are
assisting the Joint Registrar in the following matters.
| 1 |
Deputy
Registrar (Administration) |
Establishment,
Accounts, Registration and amendment of Bye-laws of
Co-operative Societies, appointment of Returning Officer
for the conduct of election to the Managing Committee
of Co-operatives, Matters relating to Arbitration
Execution and Liquidation, Statistical Statements,
affairs relating to Housing and Miscellaneous Co-operatives,
Stationery and Records. |
| 2 |
Assistant
Registrar (Planning) |
Planning
and Monitoring of Assistance Sanctioned to Co-operatives,
matters related to Primary Agricultural Credit Societies,
Primary Co-operative Agricultural and Rural Development
Banks, District Co-operative Bank, Urban Banks, Employees
Credit Co-operatives and Consumer Co-operatives.
|
| 3 |
Assistant
Registrar (SC/ST) |
Matters
relating to SC/ST Co-operatives and files relating
to financial assistance sanctioned by District Panchayats |
Joint
Registrar (General) performs statutory duties and functions
confirmed on him as per the provisions of KCS Act 1969.
Registration of Primary Co-operatives and there Bye-law
amendments conduct of surprise and detailed Inspections
of Co-operative Societies, conducting or ordering for the
conduct of 65 enquiry, 66 inspection and pursue follow up
action, surcharge proceedings under section 68 of KCS Act
1969, supersession of the Managing Committee, appointment
of administrators appointment of returning officers, for
the conduct of elections top the Managing Committee of Co-operatives,
deciding of Arbitration Cases, ordering for the liquidation
of Co-operative Societies, sanctioning of financial assistance
to co-operatives and monitoring of Plan Schemes. He also
reviews and supervised the work done by the field level
officers in the District. He has to conduct two surprise
inspections and one detailed inspection of Co-operatives
every month. Inspectors and Assistants are provided in Joint
Registrars Offices to deal with the files related to various
matters.
So far as the Department of Co-operation is concerned, 56
circle offices headed by the Assistant Registrar (General)
are functioning in the State. Co-operative Inspectors (units)
and A.E.L. Inspectors, are functioning under the Assistant
Registrar. He supervises the works done by the field level
officers and performs duties conferred on him as per the
provisions of Kerala Co-operative Societies Act 1969 as
delegated as per Notification No.
One Inspector of Co-operative Societies is assisting Assistant
Registrar (General) in performing office works.
Inspector of Co-operative Societies looks after the affairs
of 25 to 35 Co-operatives coming under his unit. He has
to act an Enquiry Officer, Inspecting Officer, Returning
Officer, Part-time Administrator, Arbitrator and liquidator
Simultaneously. Besides, the Inspectors of Co-operative
Societies have to conduct petition enquiries to prepare
and furnish annual statistical statements of Co-operative
Societies and to scrutinise proposals for financial assistance
and forward the same to Joint Registrar of Co-operative
Societies. Monthly targets fixed for inspection of Co-operative
Societies are as shown below
| |
Surprise
Inspection |
Detailed Inspection |
Assistant Registrar (General) |
2 |
1 |
Inspectors
of Co-operative Societies |
3 |
2 |
Inspection process is not conducted at the targeted level
due to heavy work load of Inspectors of Co-operative Societies.
An Independent Election Commission has been constituted
as per section 28 B of Kerala Co-operative Societies Act
to conduct election to the Managing Committees of Co-operatives.
Even though Election Commission is constituted, works done
by the Inspectors in this regard prior to the Introduction
of Kerala Co-operative Societies Act has not been changed.
They are yet to function as Returning Officer and duties
related thereto.
In addition to the Inspectors of Co-operative Societies
A.E.L. Inspector are functioning in Assistant Registrars
Offices for performing duties related to Arbitrator and
Execution. Further, Special Sale Officers are functioning
under Rule 156 Part I Kerala Service Rules for executing
awards issued under section 70 or Kerala Co-operative Societies
Act 1969.
Audit
Wing
Responsibility to conduct audit of all Co-operative
Societies in the State is vested with the Registrar of Co-operative
Societies under section 63 of Kerala Co-operative Societies
Act 1969. Even though the powers of Registrar have been
delegated to various Heads of Department under whom Handloom,
Coir, Fisheries, Apcos, Milk Producers Co-operatives and
other Industrial Co-operatives are functioning, powers under
section 63 of Kerala Co-operative Societies Act 1969 has
not been delegated. The power is vested with Registrar
of Co-operative Societies as per the Act and Government
order No.413/C3/69/AD dated 8.12.1969.
Joint Registrar of Co-operative Societies (Audit) is the
District Level Officer supervising and reviewing the works
of Auditors under has control. He also conducts test audit
of Co-operatives and verifies diaries and programmes of
Auditors. Audit Certificates in respect of primary co-operatives
coming under Banking Regulation Act and Primaries audited
by Senior/Special Grade Concurrent Auditors are approved
and issued by Joint Registrar (Audit). Audit Certificate
in respect of Apex, Central Regional and State level Co-operatives
are approved and issued by Registrar of Co-operative Societies.
The Joint Registrar (Audit) is assisted by an Assistant
Registrar and Auditors for office work.
In Taluk/Circle, Assistant Registrar Co-operative Societies
(Audit) is reviewing works done by the Auditors. He approves
and issues Audit Certificates in respect of Societies included
under Unit Audit and Societies audited by Junior Concurrent
Auditors. He also verifies, diaries and programmes of Auditors
and conducts test audit of Co-operative Societies. In office,
he is assisted by an Auditor of Co-operative Societies.
Total number of Auditable Societies in Kerala is 17258.
Category-wise details of Societies is as shown below.
| Sl.
No. |
Category |
Total
No. of Societies |
R.N.A.
Societies |
Auditable
Co-operatives |
No.
of Audits |
| 1 |
Societies
under Co-operative Department |
11393 |
1142 |
10251 |
21603 |
| 2 |
Handloom
C-operatives |
605 |
42 |
563 |
988 |
| 3 |
Khadi
and Village Industries Co-operatives |
2342 |
953 |
1389 |
2986 |
| 4 |
Coir
Co-operatives |
705 |
56 |
649 |
1106 |
| 5 |
Other
IndustrialCo-operatives |
2018 |
667 |
1351 |
3020 |
| 6 |
Milk
Marketing Co-operatives |
618 |
193 |
425 |
1132 |
| 7 |
Fisheries
Co-operatives |
618 |
175 |
443 |
994 |
| 8 |
Primary
Apcos |
2486 |
299 |
2187 |
3657 |
|
|
Total |
20785 |
3527 |
17258 |
35486 |
Audit of Co-operatives is divided into 2 Categories viz.
Unit Audit and Concurrent Audit.
Unit
Audit
Unit
Audit is conducted after the expiry of the accounting year
of Co-operative Societies. The Accounting/Financial year
of Co-operatives in the State is 1st April to
31st March of every year. 13423 Societies are
covered under Unit Audit. About 380 Auditors are engaged
in unit audit and average number of societies under one
unit is 35. An Auditor has to audit 3 societies in a month
and furnish Audit notes. Apart from the unit auditors,
arrear audit wing consisting 74 Auditors is working in the
Districts.
Audit fee is levied from Co-operative Societies covered
under unit audit as per the rates fixed by the Government
from time to time. The fee fixed by Government at present
is paise 50 for every 100 Rupees or part thereof subject
top a maximum of Rs.15000/-. The Audit fee is calculated
from various co-operatives on the basis of items noted below.
| Sl.
No. |
Type
of Societies |
Audit
fees to be calculated |
| 1 |
Credit
Societies except HousingCo-operatives
and PCARDBS
|
On
Working Capital |
|
2 |
PCARDBS,
Housing Co-operatives |
On
the aggregate of loans issued and that recovered during
the year under Audit |
| 3 |
Societies
having Credit and non-credit activities |
On
Working Capital or on Sale proceeds of goods whichever
is less |
| 4 |
Societies
dealing in goods(except
Coir Co-operatives)
|
On
Sale Proceeds |
|
5 |
Coir
Co-operative Societies |
On
proceeds of Coir sold as owners as well as on the
commission realised on goods sold as agents |
| 6 |
Transport
Societies |
On
hire charges collected and sale proceeds of articles |
| 7 |
Other
Societies |
On
gross income |
The following Co-operatives are exempted from the payment
of Audit fee.
a)
SC/ST Co-operatives
b)
Farming Co-operatives
c)
Social Welfare Societies
d)
Any Society for the 1st year of audit
e)
Any Weaver’s Society/Coir Co-operative Society/Housing Society/Primary
Societies formed for the benefit of fishermen till the completion
of 6 years after the commencement of it’s business.
Audit
fee is the major income under Revenue so far as the Department
of Co-operation is Concerned. Average income receivable
in a year under the item is Rs.9.45 crores.
Year-wise pending
of audit as on 30.04.2001 is shown below.
1996
– 1997 |
544 |
1997
– 1998 |
1832 |
1998
– 1999 |
3716 |
1999
– 2000 |
8009 |
2000
– 2001 |
13321 |
Total
: |
27422 |
Concurrent
Audit
Concurrent Auditors are appointed, in Co-operative Societies/Banks,
under Rule 156 part I Kerala Service Rules. Co-operative
Societies, having financial strength and huge transactions,
are requesting for the creation of the post of Concurrent
Auditors by way of adopting Committee Resolutions in the
prescribed form. The Registrar of Co-operative Societies/Government
in turn accords sanction for the creation of the posts of
Concurrent Auditors for a specific period. Validity of
the posts is extended for a further period by way of continuance
sanction as per the request of the concerned societies.
Creation/continuance sanction of posts of Concurrent Auditors
up to the level of Special Grade Co-operative Inspector
is sanctioned by Registrar of Co-operative Societies and
the remaining posts viz. Assistant Registrars and above,
by the Government of Kerala. Co-operative Societies adopted
for Concurrent Audit need not pay audit fee, but to remit
the cost of auditors in advance. Even so, an amount of
Rs.77.30 lakhs is due from various Co-operative Institutions
towards audit cost. Major portion under the item is due
from the Kerala Co-operative Milk Marketing Federation (Rs.33.62
lakhs). The present staff strength and position of audit
is shown below.
| Sl.No. |
Types
of Audit |
No.
of Auditors |
No.
of Societies |
No.
of Audits |
No.
of Audit pending as on 30.4.2001 |
Of
which arrears |
| 1 |
Single
Concurrent |
514 |
353 |
702 |
680 |
328 |
| 2 |
Group
Concurrent |
509 |
1295 |
2624 |
2538 |
1246 |
| 3 |
Apcos
Audit |
83 |
2187 |
3657 |
3507 |
1336 |
|
|
Total |
1106 |
3835 |
6983 |
6725 |
2910 |
A
separate audit wing consisting of 83 auditors including
a Deputy Registrar of Co-operative Societies is created
for conducting the audit of Kerala Co-operative Milk Marketing
Federation, Regional Co-operative Milk Producers Unions
and Primary Apcos. The Deputy Registrar/Concurrent Auditor
is auditing the accounts of KCCMF and supervising and reviewing
the works done by the auditors of Primary Apcos and Unions.
Audit fee as applicable to Primary Co-operatives is collected
from Apcos by the Federation which in turn remits the costs
of Concurrent Auditors to Government.
The audit certificates in respect of Primary Apcos are approved
and issued by the Assistant Registrar/Concurrent Auditor.
The present position of Concurrent Auditor (Category-wise)
is shown below.
Joint
Registrars |
19 |
Deputy
Registrar |
6 |
Assistant
Registrar |
83 |
Special
Grade Auditors |
53 |
Senior
Auditors |
534 |
Junior
Auditors |
411 |
Total |
1106 |
The audit of accounts of the following Co-operative Institutions
is current.
a)
Kerala State Co-operative Bank and 14 District Co-operative
Banks
b)
56 Primary Co-operatives coming under B.R.Act
c)
43 PCARDBS
d)
Kerala Co-operative Milk Marketing Federation
e)
Kerala Co-operative Housing Federation
f)
Kerafed
g)
Handicrafts Apex Co-operative Society
h)
RAIDCO
i)
Kerala Dinesh Beedi Co-operative Society
j)
HANTEX
Usually,
Societies are requesting for Concurrent Auditors when the
audit of accounts of these societies is in arrears. Hence
there Concurrent Auditors have to complete arrear audit
as well as Concurrent Audit.
Unlike other audits Co-operative audit is not merely
financial audit, but administrative audit also. The Co-operative
Auditor has to check the accounts and other matters of the
society and prepares final accounts by himself. A new auditor
has to proceed to a Co-operative Society with it’s back
note for auditing the society without any specific guideline.
Hence effective in service training by eminent persons is
imperative for a perfect and professional audit. Audit
Manual should be self explanatory in order to provide detailed
and effective guidelines to the Auditors. Another aspect
is that the staff strength of audit has not been increased
simultaneously with the increase of turn over and business
of Co-operative Societies. Hence team audit consisting
of one Senior Officer and three or more auditors of the
Department may be insisted and implemented for making Co-operative
audit perfect and professional.
Recently suggestions have been raised at various level
that audit of major institutions may be entrusted to Chartered
Accountant due to the arrears in audit. The fact is that
th4e audits of major co-operative institutions are not in
arrears Kerala State Co-operative Banks, District Co-operative
Banks and Co-operatives coming under the Banking Regulation
Act are audited promptly within the time limit. Another
difference is that the Chartered Accountants are verifying
the final accounts prepared by the institutions. But the
Co-operative Auditor has to prepare final accounts by himself
after verifying the records of the society. So also the
Chartered Accountants are accountable to the Board of Directors
of the Co-operative institution while the Department Auditor
is accountable to the members of these institutions as well
as Government. Further, administrative audit is not done
by Chartered Accountants Audit fee charged by Government
is much lesser than the fee charged by Chartered Accountants.
Co-operative Audit can be made perfect and prompt by strengthening
the present system and by way of providing adequate training
and effective guidelines for audit.
Implementation
of Plan schemes
Plan Schemes implemented by the Department of Co-operation
comprise of the following categories provision and expenditure
is also shown against each Category.
(Rs.
in lakhs)
| Sl.No. |
Name
of Schemes |
1997-1998
Pro. Exp.
|
1998-1999
Pro. Exp.
|
1999-2000
Pro. Exp.
|
2000-2001
Pro. Exp.
|
| 1 |
State
Plan Schemes |
14.00
26.43 |
15.25
14.69 |
15.25
15.64 |
13.25
15.14 |
| 2 |
NABARD
Assisted Schemes |
-- -- |
-- -- |
20.00
6.29 |
12.00
2.19 |
| 3 |
Government
of India assisted Schemes (C.S.S) |
3.02 0.77 |
1.81 1.32 |
2.05 3.13 |
1.60 -- |
| 4 |
NCDC
Schemes |
28.57
15.06 |
39.40
24.55 |
32.40
30.36 |
28.41
34.69 |
| 5 |
KSCARDB
Debentures |
5.00 5.00 |
6.00 6.00 |
6.00 6.00 |
6.00 1.24 |
| 6 |
Housing
Sector |
0.50 0.50 |
0.80 0.80 |
1.00 1.00 |
1.26 1.06 |
| 7 |
SCP/TSP
Schemes |
-- -- |
1.05 1.05 |
0.70 0.70 |
1.03 1.03 |
|
|
Total |
51.09
47.76 |
64.31
48.41 |
77.40
63.12 |
63.55
55.35 |
9th Plan target has already been covered at the
end the 4th year of the plan period by spending
an amount of Rs.71.92 crores against the target of Rs.66.66
crores (10%) but the amount sanctioned under plan schemes
so far on all categories an amount of Rs.70.16 crores has
not been released to the societies. The amount is kept
in T.P. Account of the societies.
Revenue
Average income and expenditure of the Department in a year
under revenue is as shown below.
(Rs.
in lakhs)
| Sl.No. |
Income |
Amount |
Sl.No. |
Expenditure |
Amount |
| 1 |
Audit
Fee |
227.29 |
1 |
Salaries |
3591.04 |
| 2 |
Arbitration
Fee |
552.56 |
2 |
Travelling
Expenses |
40.61 |
| 3 |
Liquidation
Charges |
33.44 |
3 |
Office
Expenses |
19.27 |
| 4 |
Cost
of Staff |
1310.07 |
4 |
Rent |
14.93 |
| 5 |
Appeals,
Revision and Review |
13.44 |
5 |
Motor
repair charges |
0.46 |
| 6 |
Registration
fee of Co-operative Societies |
65.99 |
6 |
Petrol
Charges |
10.37 |
| 7 |
Other
items |
29.32 |
7 |
Wages |
19.69 |
|
|
|
|
8 |
Other
charges |
0.20 |
|
|
Total |
2232.21 |
|
Total |
3696.57 |
Huge amounts are due from Co-operatives towards audit fee,
audit cost, interest on loans etc. Details of the amount
receivable are as shown below.
(Rs.
in Crores)
| Sl.No. |
Particulars |
Amount
due from primaries |
Amount
due from Apex Institutions |
Total |
| 1 |
Loan
installments |
Rs.
1.83 |
Rs.
18.92 |
Rs.
20.75 |
| 2 |
Interest
on Loans |
Rs.
1.88 |
Rs.
45.62 |
Rs.
47.50 |
| 3 |
Penal
Interest |
Rs.
0.52 |
Rs.
3.14 |
Rs.
3.66 |
| 4 |
Retirement
of Share Capital |
Rs.
5.29 |
Rs.
5.57 |
Rs.
10.86 |
| 5 |
Dividend
on Share Capital |
Rs.
0.03 |
-- |
Rs.
0.03 |
| 6 |
Audit
Fee |
Rs.
0.90 |
-- |
Rs.
0.90 |
| 7 |
K.S.R.Cost |
Rs.
0.05 |
-- |
Rs.
0.05 |
| 8 |
Audit
Cost |
Rs.
0.77 |
-- |
Rs.
0.77 |
|
|
Total |
Rs.11.27 |
Rs.
73.25 |
Rs.
84.52 |
As mentioned above, an amount of Rs. 84.52 lakhs have to
be received from various co-operatives towards revenue as
well as capital investments.
With regard to the arrears towards audit fee, huge amounts
are due from co-operatives functioning under the control
of other Departments. They include Handloom Co-operatives,
Coir Co-operatives, Khadi and Village Industries Co-operatives,
Fisheries etc. The collection is to be made by the controlling
Departments.
In order to increase collection of revenue targets may be
fixed to the District Officers on the basis of outstanding
balance and current demand. A monitoring committee may
be constituted for collection of audit fee from co-operatives
functioning under the control of other Departments. At
State level, committee consisting of secretaries to Government
of the Concerned Departments, and Head of Departments may
be constituted to review the collection of audit fee at
District level, a committee headed by Joint Registrar (General)
