அன்பான கனடா வாழ் காரைநகர் மக்களே , கனடா காரை கலாச்சார மன்ற உறுப்பினர்களே !
அனைவருக்கும் வணக்கம்.
கனடா காரை கலாச்சார மன்ற பொது சபைக்கூட்டம் கடந்த மே மாதம் 10ம் திகதி நடைபெற்றது அனைவரும் அறிந்ததே. அக் கூட்டம் தவிர்க்க முடியாத காரணங்களால் ஒத்தி வைக்கப்பட்டதனையும் அனைவரும் அறிந்திருப்பீர்கள். இதற்கு பின் வரும் காரணங்களை முன் வைக்கலாம்.
- கடந்த நிர்வாக சபையின் வரவு , செலவு கணக்குகள் பற்றிய கணக்காய்வாளரின் பரிசீலணை முற்றுப் பெறாமல் பொது சபையில் சமர்பிக்கபட்டது.
- கணக்காய்வாளர் கொடுத்த அறிக்கையினை பொது சபைக்கு சமர்பிக்கத் தவறியமை.
- புதிய நிர்வாக சபையினை தேர்வு செய்வதிலும், தற்காலிகமாக பழைய நிர்வாக சபை பொறுப்பு ஏற்பதிலும் ஏற்பட்ட தடைகள்.
இந்த சூழ் நிலையில் கனடா காரை கலாச்சார மன்றத்தின் பொறுப்பினை பொது சபையினர் தற்காலிகமாக போஷகர் சபையினரிடம் ஒப்படைத்து இருந்தனர். இந்த கால கட்டத்தில் கணக்காய்வாளர் தனது தனிப்பட்ட வெளிநாட்டு பயணத்தினை முடித்து கனடா திரும்பி இருந்தார். அவர் பழைய நிர்வாக சபையினருடன் தொடர்பு கொண்டு மன்றத்தின் வரவு , செலவு கணக்குகள் பற்றிய பரிசீலணையினை தொடர்ந்தார். துர் அதிஸ்டவசமாக பழைய நிர்வாக சபையினர் கணக்காய்வாளருக்கு ஒத்துழைப்பு கொடுக்காமல் கருத்து வேற்றுமையில் ஈடு பட்டதால் கணக்காய்வாளர் தனது பரிசீலணையினை தொடர முடியாமல் போனது பற்றி 10 பக்கங்கள் அடங்கிய தமது அறிக்கையினை கடந்த நிர்வாக சபை உறுப்பினர்களுக்கும் போஷகர் சபை உறுப்பினர்களுக்கும் சமர்பித்து உள்ளார். நிலைமை சிக்கலாக அமைந்த இந்த சூழலில்தான் ஒக்டோபர் 11ம் திகதி பொதுக்கூட்டம் கூட்டுவதற்கு போஷகர் சபை தீர்மானம் எடுத்துள்ளது. பொதுக் கூட்டத்திற்கு மக்கள் வரும் போது ஆழ்ந்து சிந்தித்து தீர்மானம் எடுப்பதற்கு போதியளவு தகவல்கள் உங்களுக்கு தேவைப்படும் என்பதால் கணக்காய்வாளரின் அறிக்கையினை முதற் கட்டமாக தங்களுக்கு சமர்ப்பிக்கின்றோம். தங்களுக்கு மேலதிக விபரம் தேவைப்பட்டால் “ karainagar@gmail.com” என்ற மின்னஞ்சலில் அல்லது 416-642-4912 என்ற இலக்கமுடைய தொலை பேசியில் தொடர்பு கொள்ளவும். கனடா காரை கலாச்சார மன்றம் கனடாவாழ் காரைநகர் மக்களுக்கு சொந்தமானது. உங்களின் முதன்மையான ஈடுபாடு மன்றத்திற்கு தேவை என்பதனாலேயும், மன்றத்தின் உண்மையான நிலைப்பாடு என்ன என்பதனை அறியத் தரவுமே இந்த அறிக்கை வெளியிடப்படுகின்றது.
இவ் வண்ணம்
கனடா காரை கலாச்சார மன்றம்
போஷகர் சபை
Dear CKCA Members,
Brief Report on Auditing of CKCA Accounts – 24-02-2013 to 10-05-2015
I thank you for having given me the opportunity of ofauditing CKCA Accounts for the 6th year in succession. My detail audit report runs to almost 40 paragraphs and 10 pages. I am sure that many of you would be bored to read through same. As such, I am giving here a glimpse of what I had to express. For details of each paragraph, you may refer to the report that follows.
Para 1 : The date and details the accounts returns handed over to me for auditing and the period of such statement.
Para 2 : The financial reports for the first 12 months of the above period had already been audited by me, presented to the members and approved and wondering as to why it had been repeated here
Para 3 : CKCA’s Accounts returns for 30-01-2014 to 19-04-2015 handed over to me on 19-04-2015, returned on 25-04-2015 due to incompletion and lack of time to the auditor, with his report and this fact had not been made aware of to the members.
Para 4 : My task is easy as I had already checked a major portion of this period’s report
para 5 : Periods of reports. The accounting is not confined to the calendar year as done in the past by CKCA except in exceptional circumstances when it would have gone to about 1 to 2 months beyond 01/01 for valid reasons
Para 6 : Small errors and omissions in this financial report .
Para 7 : Classes for Kids – Extravagant expenditure. Members to decide whether to continue.
Para 8 : TD Canada Trust Bank – Bank statements for January and February, 2013 now made available. In view of new development, two audited and approved statements may have to be reviewed.
Para 9 : In the Financial statement under review, big expenses not shown and thus total expenses incorrect.
Para 10 : My inability to reconcile cash balance as on 10-05-2015 in the balance sheet with the bank statement.
Para 11 : The Secretary’s report – Expenses shown therein and the financial report not tallying
Para 12 : Whether the financial report had been submitted to the Executive Committee and approved by them
Para 13 : Details of bad debts of $ 950.00
Para 14 : In the attachments, monies received not substantiated by receipts
Para 15 : Hatton National Bank Account
Para 16: Dealings with Karainagar Development Society
Para 17 : I had not been given a signed financial report for auditing
Para 18 : Money sent to KDS accounted in dollars. Money received by KDS accounted in Sri Lankan Rupees. Unable to check.
Para 19 : Money transfer expenses.
Para 20 : Sivan Kovil Pooja Expenses – Money collected – Not sent
Para 21 : Manikkawasagar Sabai Annathana Madayalam and Maniwasagar Sabai – Names confusion and discrepancy in monies sent.
Para 22 : Tax returns sent to Revenue Canada
Para 23 : Different methods of accounting adapted by CKCA for monies withdrawn from deposits in Canada and Sri Lanka.
Para 24 : Monies received in Karainagar on CKCA behalf by KDS not accounted in CKCA Accounts.
Para 25 : KDS accounts return. Are all expenses shown there in , on behalf of CKCA?
Para 26 : Depositing of 1 million Rupees to each of 10 schools
Para 27 : My appreciation of record receipts and payments in CKCA’s history
Para 28 : My request to amend words and figures and terms in their return and give explanatory notes or prepare a new return, not agreed by Ex: President and Treasurer.
Para 29 : The Secretary’s report and the accounts return not tallying in some aspects.
Para 30: Appreciation of donors of big amounts
Para 31 : Attachments 5 and 11 not given with the financial return.
Para 32 Tax return to Revenue Canada
Para 33 : In the attachment 2, two names of donors had been repeated.
Para 34 : Inventory items
Para 35 : The heading in the return is wrong
Para 36 : Funds shown in KDS account not shown in CKCA accounts
Para 37 : Uncollected funds shown as revenue in accounts
Para 38 : CKCA funds available with KDS at year end and shown in KDS account – not shown in CKCA accounts
Para 39 : Conclusion
Para 40 : My personal plea.
DETAIL REPORT ON AUDITING OF CKCA ACCOUNTS – 24.02.2013 to 10.05.2015
The Treasurer handed over the accounts of CKCA for the period 24th January, 2013 to 10th May, 2015 on 22nd August, 2015. He states that this accounts return is the one submitted by the CKCA Administration to all members at the general meeting on 10th May, 2015 and which I have to consider as the basic document I have to check. It is in a book form and also includes the Secretary’s report for the same period. Though the cover page of book state the period as 24-02-2013 to 10-05-2015, within the contents of the book is given the statement of income and expenses for the period 31-01-2014 to 10-05-2015 and I am proceeding to check and make my comments on this report for this period 31-01-2014 to 10-05-2015..
2. In early 2014, the Treasurer had submitted CKCA accounts return for the period February 28th 2013 to January 30th, 2014. I had audited this account, certified same on January 30th, 2014 and had also handed over a 1 page – 6 paragraph report. Today (26th August, 2015) the Treasurer informs me that this financial report had been presented to the Members at the general meeting on 02nd February, 2014 and unanimously adopted by them. Now I observe that this had been incorporated in this accounts return as Attachment 14 (Without my certification and /or report).
3. On 18th April, 2015, I informed C.K.C.A. Officials in writing that C.K.C.A. is expected to have its General Meeting shortly, that I had not been contacted about , auditing its accounts, that I am travelling abroad on 25th April on an urgent private business and would be out of Canada for few months. Afterwards, the Treasurer contacted me and handed over a partly prepared unsigned financial report for the period 2014-01-30 to 2015-04-19 and a heap of documents for auditing. Yet the last receipt book, minutes book of the Committee Meetings which had records of decisions made by the Executive Committee and some other important documents were not made available. The Treasurer assured that he would provide them. I had checked and cross checked the documents that were made available to me from 18th night to 23rd afternoon and pointed certain errors and omissions to the Treasurer. The Treasurer was very cooperative and rectified them. I expressed that they should ensure that my task is completed before 24th afternoon. Subsequently, the Secretary submitted the minutes of the Committee Meetings held on 19-05-2014, 08-06-2014, 04-08-2014, 24-08-20-14, 07-09-2014, 03-11-20124, and 30-11-2014. I have carefully studied them and found that during the period May to December, the financial expenditure up to date tallied with the Committee minutes except for the decision made on 04-08-2014 about the money to be sent to Karainagar Hindu College Multi Media Room development. Minutes of the meetings held before May 2014 and after December, 2015 were not made available. At 5 P.M. on 23rd March, I requested the Treasurer to submit the fully completed certified financial report together with the attachments in the morning of 24th, to enable me to check, certify and return on 24th evening. Very late in the night of 24th April, 2015, I received the final balance sheet of C.K.C.A. as at April 24th, 2015, signed by the President, Secretary and Treasurer, together with 11 attachments ( a total of 16 pages). This report varied from the previous report by figures of some transactions made between 19th and 24th April, 2015. I also received the receipt book No 24 with the last receipt No: CK 3179 used on 24/04/2015. Transactions (Receipts and payments) had also taken place between 19th and 24th April, 2015.Throughout the night of 24th and early morning of 25th, I had tried to study the new balance sheet as at April 24, 2015, the statement of deficiency for the period from February2, 2014 to April 24, 2015 and the 11 attachments (All newly prepared documents). I could not understand many figures in these documents and was unable to get any clarification from anybody due to the time factor. As I have to attend to my other personal duties and depart from Toronto in the evening, I stopped my work of looking into those papers. I had checked everything connected with the lotto tickets (Unsold ticket books, partly sold books, fully sold books and the amount of $ 1,460.00, realised from that sales) and found everything in order. I returned all documents, the financial report (without certification) to the Treasurer with my 2 paged – 11 paragraph report and requested that my report be circulated among the members at the general meeting on 10th May, 2015. This appears not to have been done. Now, a new financial report for the period 2013-02-24 to 2015-05-10 is submitted for auditing.
(4) The checking of new financial report for the period 31-01-2014 to 10-05-2015 is made easy as I had already checked the report for the period 31-01-2014 to 19-04-2015 and had got many of my doubts cleared and / or attended to at that time. I had also prepared and handed over my report to the Treasurer – though my work was incomplete. I am proceeding to check this report from that stage. However during the period 20-04-2015 to 10-05-2015 (Almost 15 days) many transactions, involving thousands of dollars had been made and the format and way of presentation of the accounts had been altered by the Treasurer..
(5) In the past, on several occasions, I had pointed out, both verbally and in writing, that the accounts of CKCA should be prepared in terms of clause 3.0026 of the CKCA constitution from the date a new administration of CKCA takes over the functions of the Association to 31st December of that year, then from 01st of January next year to 31st December of that year, then from 01st January of following year to the day they are leaving their post and a new administration takes over etc: Please see paragraph 4 of my report of 21-04-2013 to the financial report for the period 01-01-2011 to 15-02-2013. I had also mentioned this point as my requirement (1) – vide paragraph 6 of my letter of 09-07-2015 sent to all ex: committee members and patron committee members of CKCA. But the ex: President had stated that they can’t abide by this requirement and that they had followed the practice in which earlier CKCA reports had been prepared (In my view, this statement is incorrect). If my requirement had been accepted and adapted, it would have made matters easier, to forward tax returns to Revenue Canada, etc: At least I hope the future CKCA administrations would take note of this recommendation for the preparation of their financial returns.
(6) I have pointed out certain errors and omissions in this return. The Treasurer had cleared my doubts in certain instances and agreed to rectify the rest (Like the words payments and receipts in Attachment 2 in the wrong places, difference of 0.43 cents in the income over expenditure and cash reconciliation in Attachment 14. In view of the stand taken by Ex: President and Treasurer (Vide para 9 below) these points will go unattended now.
(7) Classes For Kids: $ 8,042.50 + $ 114.94 (Supplies Expense – Tamil Class) had been spent and only $ 160.00 recovered. I don’t have the Secretary’s minutes book to check whether this subject had been discussed at various stages of this programme. The CKCA Members should decide whether this is a viable expenditure
(8) TD Canada Trust Bank Account: I had been given bank accounts statements for the periods 01-01-2013 to 29-05-2015. The statements for January and February, 2013 included therein, are in 5 pages and are not in the usual TD Bank statements’ usual format with its logo etc: I am seeing these statements for the first time. These statements were not made available to me at the time I audited the CKCA accounts for the period 01-01-2012 to 15-02-2013. I doubt that the previous Treasurer would have handed over these statements to this Treasurer as I had been told and am being told even now, that the previous Treasurer had not handed over any financial documents to the new administration. In view of this new development, I have my doubts about the accuracy of the financial statements for the periods 01-01-2012 to 15-02-2013 which I had audited and conditionally (That I had not been given the necessary documents) certified and the subsequent financial statement for the period 28-02-2014 to 30-01-2014 (There is a gap of 12 days) as its starting balance is dependant on the closing balance of the previous account. The CKCA Members have to discuss and decide on this issue.
(9) I am unable to understand the statements made in this financial statement. Total Revenue for the period 31-01-2014 to 10-05-2015 is given as $ 115,755.23. I agree with this figure. Total expenses for this same period is given as $ 38,799.12 and income over current year is given as $ 76,956.11. I don’t agree with these figures. Has monies sent to Nilamathy, Sadaiyalee keerni, Kanthar Kundu, Karai Sivan Temple pooja, School Donations, Kalapoomy Muthtamil Perravai etc: been accounted? Are they not expenses? I informed the Ex: President and Treasurer about these and some other doubts in writing and requested them to meet me in person and clarify. On 31-08-2015 they met me and we had a frank and cordial discussion. The Ex: President verbally stated that these expenses had been shown in Attachment 12. There is no cross – referencing in the main CKCA accounts return to this KDS accounts. Further, when I pointed out that such expenses made through KDS had been shown in the main CKCA statement in the past and even by this Administration – vide returns for the periods 24-02-2013 to 30-01-2014 (Vide Attachment 14) and for the period 31-01-2014 to 24-04-2015 referred in paragraph 3 above the Ex: President was not prepared to concede with my request to incorporate those expenses in the main CKCA report or to cross reference them. He claimed that the members will automatically understand matters.
(10) According to the balance sheet of the financial accounts, Assets – Cash is $ 2,758.51. According to the bank statement the balance as on 10-05-2015 is $ 1752.66. Despite Ex: President’s efforts to verbally explain me, (He refused to place his explanation in writing or amend the figures in the financial statement) I am unable to reconcile the figures.
(11) According to the Secretary’s report for 2013 to 2015, CKCA had assisted development work in many activities in Karainagar. But this is not revealed in CKCA’s financial report for 31-01-2014 to 10-05-2015. Was no financial commitments involved for these activities?
(12) The financial report should be submitted to the Executive Committee for discussion and approval, before submitting to the Auditor for checking and certifying. Was it done in this case? If so, to substantiate same, I require the minutes of same for verification. The Minutes was not given – but the Ex: President stated in writing that it had been done at the Executive Committee meeting on 08th May, 2015.
(13) Details of bad debt (CKCA Record only – 2013 Karai Vasantham) – $ 950.00 should be given. On 31/08 the details was given to me in writing. My request that this statement should be incorporated in the return was not accepted. Even this year, this type of situation is likely to recur, as amounts promised as donations had not been received – but shown ac received and accounted as income. Please see para 14 below.
(14) In the Revenue column, some attachments had been referred to. In those, some money had been shown as received. But receipts appear not to have been issued. The Ex: President and Treasurer at the discussion with me on 31/08 were unable to give me a definite answer or prepared to put their response in writing after their further investigation.
(15) Hatton National Bank: We had 3 fixed deposit accounts and a savings account. Leaving 2 accounts for Rs. 150,000/-, Rs. 100,000/- intact, the third account for Rs. 1,000,000/- appear to have lapsed on 12th June, 2015. In addition, we had a savings account with HNB. For the last several years, the arrangement with the bank is to forward the interests derived from the fixed deposits to the savings account. I had been given copies of these fixed deposits for perusal. I was also given a copy of bank savings account statement for the period 01-12-2012 to 09-01-2013, with an outstanding balance of Rs. 830,785.95. I was not given the bank savings account statements after 09-01-2013. HNB pays 4% interest on the daily balance and the interest is credited monthly. In this financial statement, I am auditing, the Cash Balance in Sri Lanka cage, Current Account Balance is given as Rs. 452,280.26. I am at a loss to understand as to how the savings account is named as current account and how the figure Rs. 452,280.26 was arrived at. I would have appreciated if the Treasurer had explained these matters in a brief statement to his financial statements. On 31/08, at our discussion, I was told that the un-updated passbook of HNB Savings account had been handed over to the Patron Committee Coordinator and available with him and that Rs. 800,000.00 from this account had been transferred to KDS on CKCA’s instructions. However they are not prepared to put their statement in writing or show these transactions in their accounts.
(16) Dealings with Karainagar Development Society: is given in Attachment 12. It is appreciated that KDS had confined their accounts to the calendar year ( That is from 01st of January to 31st December) unlike CKCA administrators who had given unacceptable excuses for not submitting returns according to calendar year. Many terms and figurers in the KDS statement are not understood, and appear not tallying with CKCA figures. For example:- In the receipts column – Rs. 50,000.00 (Oct – donation), Rs. 1,000.00 (Nov – donation), Rs. 100,000.00 (No date – donation), Rs. 71,400.00 (No date – deposit), Rs. Rs. 800,000.00 (04-09-2015 – HNB Bank), Rs.25,000.00) (No date – Appapillai Master). Are these amounts included in the income statements of CKCA and receipts issued? Even the opening balance in the KDS statement is not agreeing with the figures of CKCA statements. It is not clear whether every payment made by KDS was on the direction of CKCA. I would appreciate if the Treasurer or any other responsible Officer had explained these matters in brief statements. At our discussion on 31/08, The Ex: President and Treasurer attempted to convince me about their dealings with KDS. I am unable to accept the KDS statement, as it is not signed or certified by anybody. Further receipts and payments up to 05-05-2015 had been included in the KDS statement and creates some doubts.
(17) I had not been given a signed ( By the 3 responsible Senior Officials of CKCA ) financial statement to check and place my signature as Auditor. Further as mentioned in my letter of 27-08-2015 for which no response (Except a verbal mild protest from one person) had been received, I propose to send draft report to all Ex: Committee members and Patron Committee Members for their views and suggestions to improve my final audit report. Later, when I release my final report, and as expressed by me on several earlier occasions and in terms of the CKCA Constitution, I would like every CKCA Member be circulated same so that they can study same at leisure at home and come prepared to discuss and approve at the general meeting.
18. Monies had been collected by CKCA in Canada in dollars. CKCA’s fixed deposit in Canada was in dollars. These monies were sent to KDS in Sri Lanka on different days at different exchange rates and the money received by KDS in Sri Lankan Rupees and distributed among schools and others in rupees. How are the members to ensure that the money paid by them for a specific purpose, had been properly handed over at that end? The Treasurer should prepare a schedule incorporating these details and annex as attachment.
(19) Money Transfer Expense – $ 140.00 is shown in the Expense in the relevant place. In the Attachment 1, Service Charge of $ 10.00 is shown. Is it duplication? Ex: President and Treasurer claims that it is not so. I accept their explanation.
(20) Sivan Kovil Pooja Information : After much publicity in the CKCA website, $ 700.00 had been collected from 5 person – vide Attachment 3 – and shown in the Revenue column also. Has this money been paid to Sivan Kovil? The Ex: President and Treasurer accept that these monies were not used for the purpose for which they had been collected and remain with CKCA. The CKCA should have informed the contributors of this position. (Incidentally, I too had paid Rs 100.00 to the President on behalf of my Brother-in-law and had been issued with a receipt. My Brother- in-law is under the impression that Pooja in his name had been done in Karainagar Sivan Temple on a particular day in December last year). In this connection, I have also to refer to the Secretary’s report, wherein he had stated that 19 persons who were interested in having Poojas held in their names at the Sivan Temple had been connected with the Sivan Temple Administrators . Can somebody explain the connection between these 2 events?
(21) In the Attachment 9, Annathana Sabai Donation – $ 150.00 from 6 persons and Manikkavasakar Madalaya Sabai Donation – $ 100.00 from 4 persons are shown. What is the difference? Payment of SL Rs. 64,125.00 had been made to Manikkavasakar Annathana Sabai and Rs. 61,300.00 paid to Maniwasagar Sabai in Sri Lanka by K.D.S. Are the figures tallying? The Ex: President and Treasurer verbally explain that both names had been erroneously used and CKCA’s contribution of Rs. 50,000 each had been paid to both Manivasagar Sabai and Manikkawasagar Annathana Sabai along with collected funds. Even now, the arithmetic of the figures are not tallying.
(22) The Ex: President had given me a copy of Tax Return sent to Revenue Canada. I had failed to enquire the follow up action on this submission – Whether CKCA had to pay any taxes or whether it had been accepted etc: I hope the Ex: President will explain the situation.
(23) The fixed deposit withdrawal of $ 21,000.00 from Canada Trust Bank is shown as GIC mattured in the Net Assets cage of the Balance Sheet as at May 10th, 2015. The withdrawal of Rs. 800,000.00 from Hatton National Bank in Sri Lanka is not shown in the CKCA Accounts – but as Receipt on 04-09-2015 in the KDS Account. I don’t agree with this controversial method of accounting.
(24) Further to para 16 above, and according to Ex: President and Treasurer, the deposits of Rs. 50,000.00, Rs. 1000.00, Rs. 100,000.00, Rs. 71,400.00 and Rs. 25,000.00 are donations made by well wishers on CKCA’s request in Sri Lankan currencies to the CKCA School Donation Fund. In my view, they should have been issued receipts by CKCA and their names and amounts should appear in the Attachment 6. These amounts should also be included in the “Payments through KDS cage in the balance sheet.
(25) In the KDS statement (Attachment 12), many items of payment of CKCA funds are shown. Is each one of these payments done on CKCA’s directions and with the CKCA Executive members’ knowledge and approval? I have my doubts about some of these items.
(26) The programme of depositing One Million Sri Lankan Rupees to 12 Primary Schools in Karainagar is a very good and welcome programme. According to the Secretary’s report and financial report of KDS, this programme had been implemented in respect of 10 school up to 10-05-2015. I would have appreciated if I had been given the file or papers connected to this programme and copies of the agreements to check on the correctness and legality of same.
(27) I think, in the year 2014 -15 CKCA had created a record by collecting a record $ 115,755.23 (Subject to correction – vide para 37 below) as revenue and spent again a record of $ 38,799.12 plus Sri Lankan Rs. 11,070,412.00. (Again subject to correction). I would appreciate if the Treasurer can explain how the amounts for such huge expenditure had been derived. Anyhow my Congratulations to the Members and the Administrators of CKCA for these records.
(28) The contents of many paragraphs above had been conveyed by me in writing to the Ex: President and Ex: Treasurer. I requested them to meet me in person, clarify, amend and/or re-prepare their statement. On 31st August evening both of them came and met me. We had a frank and open discussion. They clarified many things – Some I agreed with, while with many, I disagreed. They were not prepared to comply with my request that they prepare a new report embodying the omissions and corrections of errors or amend their reports accordingly or give written statements about each point to be attached to their return. Their stand was that, the Ex: President being a Professional Accountant, have prepared the return according to Canadian standard of preparing such returns and used Canadian Accountancy words and terms to explain things and convince me. I told them that our members are laymen, ignorant of any other returns other than our CKCA’s past accounts returns and that this return too should be in line with the past CKCA’s returns. They said that they had already circulated their return and that they have to stand by it. They can’t amend same or add any addenda or put in writing the different points in the report, so that if the members question them at the general meeting of the members, they would reply them. I have decided to stand by their request to complete my report and submit to the members. I feel that no useful purpose could be achieved due to their stubborn attitude. I have also to state that I would not be approving or certifying the accounts return as submitted as the Ex: president and Treasurer had refused to comply with my requests.
(29) The Secretary’s report give the details of the assistance provided to the schools and other organizations together with the expenses involved. Most of the items are tallying with the figures shown as payments in the KDS statement. But I observe, some payments by KDS are not explained or even substantiated in the Secretary’s report (Like Canada Office Acc – Rs. 78,000.00, Kayalvili veeddu thiddam – Rs. 24,400.00, Palavodai Land – Rs. 17,500.00 + Rs. 20,000.00 + Rs. 8,534.00 + Rs. 20,000.00, Vani Vizha gift items Rs. 27,930.00 etc: etc:
(30) It should be appreciated that, though many had contributed donations for schools ranging from one hundred dollars upwards, 4 persons had donated One Thousand dollars each, three persons had donated One Thousand Two Hundred Dollars each, Dr. Kalaichandran had donated Five Thousand Dollars, Paramanantharajah Thambyayah had donated Eight Thousand Dollars and Theesan Thiraviyanathan had donated Twenty Thousand Dollars. The names and the amounts they had donated had been given in Attachment 6. Five such persons’ names and amounts do not appear in this list
(31) Attachment 5 and 11 are missing in the accounts return booklet, referred to in para 1 above, and handed over to for auditing. On 31/08, when the Ex: President and Treasurer met me they handed over to me a copy of the Attachment 11. This shows details of 3 items I raised in my letters referred in para 9 above. They are (1) Bad debt Expense – Karai Vasantham – 2013 – $ 950.00, (2) Bank Reconciliation – $ (244.15) and (3) Cash Reconciliation – $ 244.15. Details for the figures are not given. These items should be cross referenced to the main accounts return.
(32) Tax Return to Revenue Canada : It is appreciated that the Ex: President had submitted tax returns for the year 2013 (From 01-01-2013 to 31-12-2013) to Revenue Canada on 2014-11-24. The amounts mentioned in the return appear to be correct (However, I am unable to check them). I would like the President inform the Members the result of this submission (Whether the Association had been taxed etc: ). Also why he had not submitted the tax return for the year 2014 (01-01-2014 to 31-12-2014) to Revenue Canada on or before the due date?
(33) Two names of donors had been shown at two places in Attachment 2. However the total amount appear correct.
(34) Furnishing inventory items and their values (Total value $ 2,608.47) in Attachment 13 is appreciated. However the attachment 13 show two different lists – (1) Inventory as of May 08th, 2015 and worth $ 1,506-64 and (2) Inventory items deducted as expense and worth $ 1,101.83. What is the difference between these two lists? The second item worth $ 1,101.83 is shown in the balance sheet also – but not under the expenses on the statement of income page of the return. A saree (R.S.M.) worth $ 99.00 is also included therein. Can the Treasurer explain things?
(35) Even the statement “ STATEMENT OF INCOME FOR THE PERIOD FROM JANUARY 31, 2014 TO MAY 10, 2015” appear to be wrong as this list shows the statement of expenses too.
(36) Rs. 123,000.00 shown by KDS as received from CKCA is not shown in the CKCA accounts as payments
(37) Seven names and amounts are shown without receipt numbers in the attachments 1, 2, 6 and 8. Further another cheque for $ 250.00 which had been received by CKCA and deposited in the bank on 25-04-24 had bounced back on 05-05-2015. Probably receipt had been issued and name and amount included in one of the attachments. The total amounts involved is $ 2,350.00. If the monies had not been received, these amounts should not be included in the revenue cage of the accounts
(38) It appears that KDS had been maintaining an accurate accounts system. It had shown an opening balance of Rs. 59,325.00 in their 2014 CKCA accounts. This is not reflected in the CKCA accounts. I presume that in the previous years too this trend of not revealing the amount of CKCA funds available with KDS had continued.
(39) Conclusion: I had been appointed by the members as the auditor of CKCA. Like that of all other CKCA. Officials, auditor has also to work voluntarily, without any remuneration. The Auditor cannot be expected to do a 100% accurate check. If he has any doubts, he gets them clarified from the Treasurer or other Officials and get the Treasurer to amend the report. If the Treasurer refuses to accede to the auditor’s request, the auditor report the developments to the members and that is what is happening here. My study of the accounts, without the support of Ex: President and Treasurer after 31st August indicates no room for suspecting misappropriation of funds or fraud. But their failure to prepare the returns in the usual format in which earlier CKCA financial reports had been prepared, their refusal to confine the accounts returns to the calendar year, their failure and refusal to incorporate the expenses made in Karainagar through KDS in the expenses cage of their return, their failure to acknowledge receipt of donations in Karainagar in their returns in Canada, their non-cooperation with me to listen to my suggestions and amend or give cross-reference, failure to give me an authentic signed financial report, not submitting an authentic KDS statement of accounts regarding CKCA dealings, etc: are the reasons why I am not certifying this CKCA financial report.
(40) I would like to quit from CKCA. work in future, due to my old age and bad health. I thank all members who had elected me as the auditor for the past 6 continuous years and would kindly request them to leave me alone without bothering me with any CKCA posts in future.
M.Velauthapillai Auditor, CKCA 07th September, 2015
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