Accounts of private schools in Delhi will be investigated, Rekha government’s big decision on complaints of high fee collection
Delhi’s Rekha Gupta government has decided to conduct a comprehensive investigation into the financial accounts and transactions of 1794 unaided (private) schools in the capital. The government has taken this step after receiving continuous complaints of high fee collection and financial irregularities by schools. According to officials, the financial accounts of these schools for the last 3 years will be examined. This audit will be conducted under the provisions of Delhi School Education Act and Rules, 1973 (DSEA&R, 1973).
The government says that through investigation it will be ensured whether the schools are charging fees as per the rules or not and whether additional fees are being charged from parents. If any irregularities are revealed in the investigation, strict action can be taken against the schools concerned.
According to officials, the financial accounts of these schools for the last three years will be examined. This investigation will be conducted under the provisions of Delhi School Education Act and Rules, 1973 (DSEA&R, 1973). According to officials, the education department had been receiving many complaints regarding financial irregularities in private schools for some time. However, sufficient facts could not be revealed in the investigation report of these complaints. The government, after investigating some cases, found that the existing investigation process was not sufficient to uncover all the irregularities.
The government has decided to create three Project Management Units (PMUs) to audit the accounts of all private schools. Each unit will consist of 10 Chartered Accountants (CAs), who will conduct a detailed analysis of the financial transactions of the schools for the last three years. This entire analysis will be done under the supervision of the Director of Education. 3 Project Management Units (PMU) will conduct the audit, a total of 30 Chartered Accountants (CA) will be involved, this entire process will cost approximately Rs 6.3 crore.
Delhi’s Rekha Gupta government has decided to launch a comprehensive investigation into the accounts and financial transactions of 1794 private schools. This work will be done on the basis of SOP (Standard Operating Procedure) prepared, so that any possible irregularities, misuse or suspicious transactions in the accounts of the schools can be identified.
investigation process
The audit will include verification of bills and expenditure details, students’ registration documents, reconciliation of fees collected and other expenses shown in the accounts. Physical verification will also be done where necessary. All three Project Management Units (PMUs) will operate for a full year, and will cost more than Rs 6.3 crore.
Unit allocation and cross-checking
The education department will allocate schools equally to all three PMUs. The audit report of any PMU can be cross-checked with other PMUs to check its authenticity. After the audit, chartered accountants will discuss with the schools in the presence of a representative of the Directorate of Education. Clarification may be sought from schools. Once each school’s report is ready, further action will be decided based on the school’s response and investigation report.
Is this why there is a need for audit?
For some time now, the government has been the target of opposition and parents regarding fee hike and financial irregularities in schools. The audit will decide whether the fee increase is appropriate and justified or not, so that further action can be taken against schools committing financial irregularities. In future, schools will also be given permission to increase fees on the basis of this audit. The government wants to know the real financial position of the schools through this audit. Wants to ensure authenticity and fairness of fee increase. Wants to protect the interests of parents by increasing financial transparency.
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