spu: Spu suspends the old Cao; First, the blacklisted audit firm | Vadodara news
In addition, in a decision likely the first of its kind taken by an educational institution, the university decided to blacklist the former auditor – chartered accountant (CA) KG Patel & Company, Anand – in relation to financial irregularities to the tune of Rs 37.30 crores.
Members of the university’s union recently made the decision based on a report submitted by a five-member committee headed by retired Gujarat high court judge Dhiren Karia.
The forensic audit engagement was carried out on an honorary basis by Shah Sanjeev & Associates, Chartered Accountant and Certified Fraud Examiner of Vadodara.
TOI previously reported that the investigative panel held the former CEO and former auditor liable for gross negligence in the performance of their duties.
“We have also decided to write a letter to the Institute of Chartered Accountants of India, the supreme accounting body, regarding the irregularity committed by the former CA recommending action by the institute,” said the SPU vice-chancellor professor Shirish Kulkarni, who had initiated an investigation based on a request made by union members.
While Bhatt, whose suspension order will be issued on Monday, will be the subject of a ministerial investigation, the university has also decided to form an investigation against its former official registrar, Dr Mohan Patel, currently director of NS Patel. Arts College.
“The accounts for the 2014-15 financial year were signed by him as the university clerk,” Kulkarni said.
The investigation report ruled out financial fraud or scam, but highlighted the accounting mismatch. The books of account of any organization correspond to its audited financial statements.
At USP, the books of account did not match the audited financial statements. During fiscal year 2014-15 there were two separate debit entries in the ledger accounts amounting to Rs 29.22 crore and Rs 8.08 crore. These adjustment entries were made in the accounts. This was adopted to match the audited statements with the books of account.
During the forensic audit, 5,496 general ledger accounts for fiscal year 2014-15 were examined. Of these adjusting entries were found in 1649 general ledger accounts.