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Non-aided Societies

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In order to eliminate draw-backs, shortcomings etc as outlined above and to bring about a large scale improvement in the matter of audit of non-aided societies, the following procedure should be followed :-

(i) All non aided societies will be free to select and appoint their own Auditor from the panel maintained by District Deputy Registrar. This will be irrespective of even the 3rd year of non-aided status. In other words, there will be no Departmental Auditors for non-aided societies, though there are a few rare exceptions. Also, the District Allotment Committee will not hereafter make any allotment of a Certified Auditor to any non-aided society under the first provision of section 81(1) (b). It will be deemed that a certified Auditor from District Deputy Registrar’s panel who is selected by a non-aided society in its 3rd year, is the Auditor authorized by the Registrar as required under the first provision of Section Sec 81(1) (b).

(ii) However, a non-aided society which may choose and Auditor ‘X’ for 2 years should not have the same Auditor for the 3rd year but should select some other Certified Auditor viz. ‘Y’ from the Deputy Registrar’s panel. This is to ensure that there is adequate objectivity, fresh outlook and necessary safeguard in the audit work which is carried fro year to year.

(iii) The burden of quickly selecting a Certified Auditor from District Deputy Registrar’s panel would stand fully thrown on the non-aided society. No list will be published by the District Deputy Registrar but the non-aided society may send a representative to District deputy Registrar’s office to see the panel of certified auditors.

Actually, the correct interpretation is that every 3rd year starting from 1985-86, considering that the Act was amended in May 1986 that a society remains non-aided, its audit shall be done by a departmental auditor or by a Certified Auditor, as allotted by Allotment Committee. quite often, a society may remain unaided for a number of consecutive years in which case it would be easy to identify ‘every 3rd year’ for the allotment purpose.  However, there are some cases where societies may switch from aided category in 1 year to non-aided category in another year and vice-versa. An example is given below :-

1985-86 – Non-aided

1986-87 – Aided

1987-88 – Non-aided

1988-89 – Non-aided (3rd Year)

1989-90 – Aided

1990-91 – Non-aided

1991-92 – Aided

1992-93 – Non-aided

1993-94 – Aided

1994-95 – Non-aided (3rd Year)

In the above example its clear that the term “every 3rd year” of non-aided status would be the years 1988-89 and 1994-95, for which years, under the first proviso to section 81(1)(b), the Allotment Committee would have to allot a Certified Auditor.