Society Bye-Laws – Audit of Accounts of the Society

With the financial year coming to a close, it’s time for housing societies to shift their attention towards auditing their books for the last financial year. Apartment Management Software come very handy in these times. For the Management Committee, whether newly appointed or not, this can be quite a task. But do you know what does the law state about audit of accounts of the society ?

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  1. (a) The society may, if it considers it necessary, appoint an internal Auditor, to audit the accounts of the society, at the annual general body meeting. The Society shall appoint the Statutory Auditor in its General Body Meeting from the panel of Auditors approved by State Govt. and same Statutory Auditor shall not be appointed for more than two consecutive years. The Statutory Auditor shall submit his Audit Report as provided in section 81 of the Act. (b) It shall be the responsibility of the Committee to get the accounts audited within a period of Four month from the closure of financial year. (c) The Remuneration of Auditors so appointed shall be decided by the General Body Meeting of the Society.
  2. The Secretary of the society shall produce or cause to be produced all the books, registers, records before the internal auditor and the Statutory Auditor, in the office of the society or where the records are normally kept and furnish such information as may be required by him for the conduct of the audit of the accounts of the society.
  3. (a) On receipt of the audit reports from the Statutory and Internal Auditors, the Secretary of the Society shall prepare draft audit rectification reports on the objections raised and suggestions made, in the form ‘0’ prescribed under Rule 73 of the MCS Rules 1961 and place the same before the meeting of the Committee, held next after the date of the receipt of the audit reports, for its approval. The audit rectification shall be done by the committee within 3 months from the date of audit reports. The committee shall submit Audit Rectification Report to the Registrar and the Annual General Body Meeting of the Society. (b) If the Committee of the Society fails to submit Audit Rectification Report to the Registrar and the Annual General Body Meeting, all the members of the Committee shall be deemed to have committed an Offence under section 146 of the Act and shall be liable for Penalty under section 147 of the Act.

Read several Maharashtra Co-Operative Housing Society Bye-Laws in our other blogs.

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