Year-end closing is the process of recording, reviewing, reconciling, and verifying all financial transactions and aspects of the Cooperative Societies for the fiscal year prior to the closing. This includes expenses, income, assets, investments, liabilities and more.
In this article, a check list is shared to ease this process:
Financial Checklist
- Call for Vendor Invoice for the month of March prior to closing.
- Provision for year end expense in the books.
- Resolve Suspense ledger.
- Round off the amount receivable or payable to nearest Rupee.
- Check if all entries / vouchers have relevant narrations.
- Cross check all On Account entries in Member ledgers and Vendor ledgers.
- Transfer delay interest as on 31- March into Member ledgers in case of outstanding.
- Send Annual ledger to all Members and rectify errors, if any.
- Check Invoices raised do not have due date beyond 31- March.
- Check Exception Reports and rectify the errors.
- Check Bank Payment and Cash Payment Files for Bills, Vouchers, Journals, and signatures by committee members / authorised signatories.
- Check Cheque Inventory for all bank accounts: Issued, Passed, Stalled and Cancelled
- Do Bank Reconciliation
- Check Debit Note and Credit Note files for the year to be duly signed by committee members / authorised signatories.
- Review all Account Payables and Account Receivables.
- Advance Tax Calculation and Payment.
- Deduct TDS on year end provisions.
- Record Depreciation on Fixed Assets.
- Call for Balance Confirmation statements.
- Review Budget vs Actual expenses for current year.
- Back up of Accounting data.
Cooperative Society Checklist
- Preparing and Publishing Members List as on 31-March.
- Check Minutes book of Committee Meetings with agenda.
- Approve pending Transfers if any.
- Update registers for Transfer cases.
- Check registers for during the year entries.
- Call for SGM to approve Maintenance and Budgets for next financial year.
Next Financial Year Checklist
- Prepare Budgets for Next Financial Year.
- Decide Maintenance Rates, Mode of Payment, Discount and Due dates.
- Incase differential rate is charged to members based on occupancy status (Owner / Tenant). Recheck the occupancy status of flats.
- If other than maintenance amount is collected (Parking Charges, etc), review the charges.
- Raise Maintenance Invoice / Other Invoice
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We will keep on updating the above article as per feedback from the readers. In case you have any query, please write it in the comment section below.
Gujarat Cooperative Societies 
Very Helpfull sir.
Sir
Pl clarify to whom the external auditors report in a coop hsg society in maharastra is to be addressed:
The members of the society
OR
the Managing committee
for Any commercial Co.-Op. service society, if not done Audit report since 2019 as per the Information received from Jilla Registrar, Sahkari mandali under RTI.
Wanted to know whether Audit report submission is Compulsory? if not submitted by society what are the legal formalities have to face.?
There are 700+ empaneled auditor which include CA firm to which various societies have been allocated to complete the Audit work. Even register office conduction camps were societies can visit and get their audit work completed.
Two issue which have been seen why audit is not pending
1. Lower fees offered to auditor : around Rs 3000 for per year audit
2. Book of accounts are not maintained by society in proper accounting software
Wanted to know whether Audit report submission is Compulsory? if not submitted by society what are the legal formalities have to face.?
Registrar can take action against such societies under Sec 107 (Winding up) and Sec 20 (Cancellation of Registration) of Gujarat Cooperative societies Act.
Thank you Sir for your kind response.
Is a coop housing service society required to appoint an audit firm to audit its books of accounts as at the end of the year? Or is the auditor appointed by the Registrar of Ccoperatives?
Yes both are different audit. Every before along with AGM audit books needs to be shared with members
Is it compulsory for cooperative housing service society to appoint an auditor from the penal list only?? Can society appoint a CA Firm which is not in the penal list issued by Govt
– Yearly audit can be done by any CA firm
– Government Audit needs to be done by the Auditor in Panel. Every year the Registrar office allocates societies to panel Auditors. Only last year an option was given, where a cooperative society could appoint any auditor from the panel after approval from the registrar.
Thanks for your reply