Organisational Structure
  Important authorities
  Development of Health Care
  Employment oriented Co-Operation
  Other Co-operatives
  Role of Nabard
  National Co-operative Dev.corpn
  Draft National Policy
  Government Orders
  Achievements
   
 
 
 

Disclosure of Information under section 4(1)(b)of the
Right to Information Act, 2005

STATUS OF CO-OPERATIVE BANK

The Department of Co-operation is headed by the Registrar of Co-operative Societies who looks after the administrative matters relating to 11690 Co-operative Societies. The affairs of the following categories of Co-operatives are administered by the Head of Department noted against each to whom the powers of Registrar of Co-operative Societies have been delegated by Government.

Sl. No.

Type of Societies

Number

Head of Department

1

Handloom Co-operatives

605

Director of Industries and Commerce

2

Coir Co-operatives

705

Director of Coir Development

3

Khadi and Village Industries

Co-operatives

2342

Secretary, Khadi and Village Industries Board

4

Other Industrial Co-operatives

2018

Director of Industries and  Commerce

5

Milk Marketing Co-operatives

618

Director of Diary Development

6

Fisheries Co-operatives

618

Director of Fisheries

7

Primary APCOS

2486

Director of Diary Development

Responsibility to conduct the audit of all Co-operatives is vested with the Registrar of Co-operative Societies as per Government Order No.413/C3/69/AD dated 8.12.1969.

At the Head Quarters, Registrar of Co-operative Societies is assisted by five Additional Registrar 3 Joint Registrars, Finance Officer and Law Officer.  Portfolios handled by these officers are as shown below.

1

Additional Registrar (Credit)

Affairs relating to Credit Co- operatives/ Banks, Vigilance Wing and Nodal Officer for implementing Plan Schemes

2

Additional Registrar (General)

Establishment matters General administration and affairs to Co-operative Education and Training

3

Additional Registrar (Consumer)

Affairs relating to Consumer Co-operatives Federation, Wholesale Stores Miscellaneous and Housing Co-operatives

4

Additional Registrar (ICDP)

Monitoring ICDP Programmes implemented by NCDC

5

Additional Registrar (Audit)

Matters related to the Audit of Co-operatives

6

Joint Registrar (Marketing)

Matters relating to the Marketing and Processing Co-operatives

7

Joint Registrar (Vigilance)

Matters related to Vigilance Enquiry and General Matters

8

Joint Registrar (SC/ST)

Matters related to employees of Co-operative Societies and SC/ST Co-operatives

9

Finance Officer

Posted from Finance Department.  Advises Registrar Co-operative Societies in financial matters

10

Law Officer

Post from Law Department.  Advises Registrar of Co-operative Societies  in legal matters

The above officers are assisted by Deputy Registrars, Assistant Registrars and Inspectors of Co-0operative Societies in Head Office.
The functions of the Department is divided into two compartments at District and Taluk level viz: Administration and Audit Wing.

Administration wing
         The Joint Registrar of Co-operative Societies (General) is the District level officer supervising and controlling the affairs of Co-operative Societies functioning under Co-operative Department.  Deputy Registrar (Administration) Assistant Registrar (Planning) and Assistant Registrar (SC/ST) are assisting the Joint Registrar in the following matters.

1

Deputy Registrar (Administration)

Establishment, Accounts, Registration and amendment of Bye-laws of Co-operative Societies, appointment of Returning Officer for the conduct of election to the Managing Committee of Co-operatives, Matters relating to Arbitration Execution and Liquidation, Statistical Statements, affairs relating to Housing and Miscellaneous Co-operatives, Stationery and Records.

2

Assistant Registrar (Planning)

Planning and Monitoring of Assistance Sanctioned to Co-operatives, matters related to Primary Agricultural Credit Societies, Primary Co-operative Agricultural and Rural Development Banks, District Co-operative Bank, Urban Banks, Employees Credit Co-operatives and Consumer Co-operatives.             

3

Assistant  Registrar (SC/ST)

Matters relating to SC/ST Co-operatives and files relating to financial assistance sanctioned by District Panchayats

                Joint Registrar (General) performs statutory duties and functions confirmed on him as per the provisions of KCS Act 1969.  Registration of Primary Co-operatives and there Bye-law amendments conduct of surprise and detailed Inspections of Co-operative Societies, conducting or ordering for the conduct of 65 enquiry, 66 inspection and pursue follow up action, surcharge proceedings under section 68 of KCS Act 1969, supersession of the Managing Committee, appointment of administrators appointment of returning officers, for the conduct of elections top the Managing Committee of Co-operatives, deciding of Arbitration Cases, ordering for the liquidation of Co-operative Societies, sanctioning of financial assistance to co-operatives and monitoring  of Plan Schemes.  He also reviews and supervised the work done by the field level officers in the District.  He has to conduct two surprise inspections and one detailed inspection of Co-operatives every month. Inspectors and Assistants are provided in Joint Registrars Offices to deal with the files related to various matters.

           So far as the Department of Co-operation is concerned, 56 circle offices headed by the Assistant Registrar (General) are functioning in the State.  Co-operative Inspectors (units) and A.E.L. Inspectors, are functioning under the Assistant Registrar.  He supervises the works done by the field level officers and performs duties conferred on him as per the provisions of Kerala Co-operative Societies Act 1969  as delegated as per Notification No.

           One Inspector of Co-operative Societies is assisting Assistant Registrar (General) in performing office works.

           Inspector of Co-operative Societies looks after the affairs of 25 to 35 Co-operatives coming under his unit.  He has to act an Enquiry Officer, Inspecting Officer, Returning Officer, Part-time Administrator, Arbitrator and liquidator Simultaneously.  Besides, the Inspectors of Co-operative Societies have to conduct petition enquiries to prepare and furnish annual statistical statements of Co-operative Societies and to scrutinise proposals for financial assistance and forward the same to Joint Registrar of Co-operative Societies.  Monthly targets fixed for inspection  of Co-operative Societies are as shown below

  Surprise Inspection    Detailed Inspection

Assistant Registrar (General) 

2  
  1

Inspectors of Co-operative Societies 

3     
  2

                                            

           Inspection process is not conducted at the targeted level due to heavy work load of  Inspectors of Co-operative Societies.  An Independent Election Commission has been constituted as per section 28 B of Kerala Co-operative Societies Act to conduct election to the Managing Committees of Co-operatives.  Even though Election Commission is constituted, works done by the Inspectors in this regard prior to the Introduction of Kerala Co-operative Societies Act has not been changed.  They are yet to function as Returning Officer and duties related thereto.

           In addition to the Inspectors of Co-operative Societies A.E.L. Inspector are functioning in Assistant Registrars Offices for performing duties related to Arbitrator and Execution.  Further, Special Sale Officers are functioning under Rule 156 Part I Kerala Service Rules for executing awards issued under section 70 or Kerala Co-operative Societies Act 1969.

Audit Wing

       Responsibility to conduct audit of all Co-operative Societies in the State is vested with the Registrar of Co-operative Societies under section 63 of Kerala Co-operative Societies Act 1969.  Even though the powers of Registrar have been delegated to various Heads of Department under whom Handloom, Coir, Fisheries, Apcos, Milk Producers Co-operatives and other Industrial Co-operatives are functioning, powers under section 63 of Kerala Co-operative Societies Act 1969 has not been delegated.  The power is vested with Registrar of Co-operative Societies as per the Act and Government order No.413/C3/69/AD dated 8.12.1969.

           Joint Registrar of Co-operative Societies (Audit) is the District Level Officer supervising and reviewing the works of Auditors under has control.  He also conducts test audit of Co-operatives and verifies diaries and programmes of Auditors.  Audit Certificates in respect of primary co-operatives  coming under Banking Regulation Act and Primaries audited by Senior/Special Grade Concurrent Auditors are approved and issued by Joint Registrar (Audit).  Audit Certificate in respect of Apex, Central Regional and State level Co-operatives are approved and issued by Registrar of Co-operative Societies.  The Joint Registrar (Audit) is assisted by  an  Assistant Registrar and Auditors for office work.

           In Taluk/Circle, Assistant Registrar Co-operative Societies (Audit) is reviewing works done by the Auditors.  He approves and issues Audit Certificates in respect of Societies included under Unit Audit and Societies audited by Junior Concurrent Auditors.  He also verifies, diaries and programmes of Auditors and conducts test audit of Co-operative Societies.  In office, he is assisted by an Auditor of  Co-operative Societies.

           Total number of Auditable Societies in Kerala is 17258.   Category-wise details of Societies is as shown below.

Sl. No.

Category

Total No. of Societies

R.N.A. Societies

Auditable Co-operatives

No. of Audits

1

Societies under Co-operative Department

11393

1142

10251

21603

2

Handloom C-operatives

 605

 42

563

988

3

Khadi and Village Industries Co-operatives

2342

953

1389

2986

4

Coir Co-operatives

705

56

649

1106

5

Other IndustrialCo-operatives

2018

667

1351

3020

6

Milk Marketing Co-operatives

618

193

425

1132

7

Fisheries Co-operatives

618

175

443

994

8

Primary Apcos

2486

 299

  2187

3657

 

Total

20785

3527

17258

35486

  Audit of Co-operatives is divided into 2 Categories viz. Unit Audit and Concurrent Audit.

 Unit Audit

Unit Audit is conducted after the expiry of the accounting year of Co-operative Societies.  The Accounting/Financial year of Co-operatives in the State is 1st April to 31st March of every year.  13423 Societies are covered under Unit Audit.  About 380 Auditors are engaged in unit audit and average number of societies under one unit is 35.  An Auditor has to audit 3 societies in a month and furnish Audit notes.  Apart from the unit auditors, arrear audit wing consisting 74 Auditors is working in the Districts.

           Audit fee is levied from Co-operative Societies covered under unit audit as per the rates fixed by the Government from time to time.  The fee fixed by Government at present is paise 50 for every 100 Rupees or part thereof subject top a maximum of Rs.15000/-.  The Audit fee is calculated from various co-operatives on the basis of items noted below.

Sl. No.

Type of Societies

Audit fees to be calculated

1

Credit Societies except HousingCo-operatives and PCARDBS

On Working Capital

2

PCARDBS, Housing Co-operatives

On the aggregate of loans issued and that recovered during the year under Audit

3

Societies having Credit and non-credit activities

On Working Capital or on Sale proceeds of goods whichever is less

4

Societies dealing in goods(except Coir Co-operatives)

On Sale Proceeds

5

Coir Co-operative Societies

On proceeds of Coir sold as owners as well as on the commission realised on goods sold as agents

6

Transport Societies

On hire charges collected and sale proceeds of articles

7

Other Societies

On gross income

     The following Co-operatives are exempted from the payment of Audit fee.                    

a)      SC/ST Co-operatives
b)      Farming Co-operatives
c)      Social Welfare Societies
d)      Any Society for the 1st year of audit
e)      Any Weaver’s Society/Coir Co-operative Society/Housing Society/Primary Societies formed for the benefit of fishermen till the completion of 6 years after the commencement of it’s business.

Audit fee is the major income under Revenue so far as the Department of Co-operation is Concerned.  Average income receivable in a year under the item is Rs.9.45 crores.

Year-wise pending of audit as on 30.04.2001 is shown below.

1996 – 1997

 544

1997 – 1998

1832

1998 – 1999 

3716

1999 – 2000     

8009

2000 – 2001 

13321 

Total   : 

27422

Concurrent Audit

         Concurrent Auditors are appointed, in Co-operative Societies/Banks, under Rule 156 part I Kerala Service Rules. Co-operative Societies, having financial strength and huge transactions, are requesting for the creation of the post of Concurrent  Auditors by way of adopting Committee Resolutions in the prescribed form.  The Registrar of Co-operative Societies/Government in turn accords sanction for the creation of the posts of Concurrent Auditors for a specific period.  Validity of the posts is extended for a further period by way of continuance sanction as per the request of the concerned societies.  Creation/continuance sanction of posts of Concurrent Auditors up to the level of Special Grade Co-operative Inspector is sanctioned by Registrar of Co-operative Societies and the remaining posts viz. Assistant Registrars and above, by the Government of Kerala.  Co-operative Societies adopted for Concurrent Audit need not pay audit fee, but to remit the cost of auditors in advance.  Even so, an amount of Rs.77.30 lakhs is due from various Co-operative Institutions towards audit cost.  Major portion under the item is due from the Kerala Co-operative Milk Marketing Federation (Rs.33.62 lakhs).  The present staff strength and position of audit is shown below.

Sl.No.

Types of Audit

No. of Auditors

No. of Societies

No. of Audits

No. of Audit pending as on 30.4.2001

Of which arrears

1

Single Concurrent

     514

     353

    702

        680

   328

2

Group Concurrent

     509

   1295

  2624

      2538

  1246

3

Apcos Audit

       83

   2187

  3657

      3507

  1336

 

Total

   1106

   3835

  6983

      6725

  2910

             A separate audit wing consisting of 83 auditors including a Deputy Registrar of Co-operative Societies is created for conducting the audit of Kerala Co-operative Milk Marketing Federation, Regional Co-operative Milk Producers Unions and Primary Apcos.  The Deputy Registrar/Concurrent Auditor is auditing the accounts of KCCMF and supervising and reviewing the works done by the auditors of Primary Apcos and Unions.  Audit fee as applicable to Primary Co-operatives is collected from Apcos by the Federation which in turn remits the costs of Concurrent Auditors to Government.    

                        The audit certificates in respect of Primary Apcos are approved and issued by the Assistant Registrar/Concurrent Auditor.

                        The present position of Concurrent Auditor (Category-wise) is shown below.

Joint Registrars

19

Deputy Registrar

6

Assistant Registrar   

83

Special Grade Auditors

53

Senior Auditors 

534

Junior Auditors

411

Total

1106

                                The audit of accounts of the following Co-operative Institutions is current.

a)      Kerala State Co-operative Bank and 14 District Co-operative Banks

b)      56 Primary Co-operatives coming under B.R.Act

c)      43 PCARDBS

d)      Kerala Co-operative Milk Marketing Federation

e)      Kerala Co-operative Housing Federation

f)        Kerafed

g)      Handicrafts Apex Co-operative Society

h)      RAIDCO

i)        Kerala Dinesh Beedi Co-operative Society

j)        HANTEX

Usually, Societies are requesting for Concurrent Auditors when the audit of accounts of these societies is in arrears.  Hence there Concurrent Auditors have to complete arrear audit as well as  Concurrent Audit.

         Unlike other audits Co-operative audit is not merely financial audit, but administrative audit also.  The Co-operative Auditor has to check the accounts and other matters of the society and prepares final accounts by himself.  A new auditor has to proceed to a Co-operative Society with it’s back note for auditing the society without any specific guideline.  Hence effective in service training by eminent persons is imperative for a perfect and professional audit.  Audit Manual should be self explanatory in order to provide detailed and effective guidelines to the Auditors.  Another aspect is that the staff strength of audit has not been increased simultaneously with the increase of turn over and business of Co-operative Societies.  Hence team audit consisting of one Senior Officer and three or more auditors of the Department may be insisted and implemented for making Co-operative audit perfect and professional.

         Recently suggestions have been raised at various level that audit of major institutions may be entrusted to Chartered Accountant due to the arrears in audit.  The fact is that th4e audits of major co-operative institutions are not in arrears Kerala State Co-operative Banks, District Co-operative Banks and Co-operatives coming under the Banking Regulation Act are audited promptly within the time limit.  Another difference is that the Chartered Accountants are verifying the final accounts prepared by the institutions.  But the Co-operative Auditor has to prepare final accounts by himself after verifying the records of the society.  So also the Chartered Accountants are accountable to the Board of Directors of the Co-operative institution while the Department Auditor  is accountable to the members of these institutions as well as Government.   Further, administrative audit is not done by Chartered Accountants Audit fee charged by Government is much lesser than the fee charged by Chartered Accountants.  Co-operative Audit can be made perfect and prompt by strengthening the present system and by way of providing adequate training and effective guidelines for audit.

Implementation of Plan schemes

            Plan Schemes implemented by the Department of Co-operation comprise of the following categories provision and expenditure is also shown against each Category.

(Rs. in lakhs)

Sl.No.

Name of Schemes

1997-1998 Pro.     Exp.

1998-1999 Pro.      Exp.

1999-2000 Pro.     Exp.

2000-2001 Pro.      Exp.

1

State Plan Schemes

14.00  26.43

15.25  14.69

15.25  15.64

13.25  15.14

2

NABARD Assisted Schemes

   --        --

   --        --

20.00    6.29

12.00    2.19

3

Government of India assisted Schemes (C.S.S)

  3.02    0.77

  1.81    1.32

  2.05    3.13

  1.60      -- 

4

NCDC Schemes

28.57  15.06

39.40  24.55

32.40  30.36

28.41  34.69

5

KSCARDB Debentures

  5.00    5.00

  6.00    6.00

  6.00    6.00

  6.00    1.24

6

Housing Sector

  0.50    0.50

  0.80    0.80

  1.00    1.00

  1.26    1.06

7

SCP/TSP Schemes

    --        --

  1.05    1.05

  0.70    0.70

  1.03    1.03

 

Total

51.09  47.76

64.31  48.41

77.40  63.12

63.55  55.35

  9th Plan target has already been covered at the end the 4th year of the plan period by spending an amount of Rs.71.92 crores against the target of Rs.66.66 crores (10%) but the amount sanctioned under plan schemes so far on all categories an amount of Rs.70.16 crores has not been released to the societies.  The amount is kept in T.P. Account of the societies.

Revenue

            Average income and expenditure of the Department in a year under revenue is as shown below.

(Rs. in lakhs)

Sl.No.

Income

Amount

Sl.No.

Expenditure

Amount

1

Audit Fee

227.29

1

Salaries

3591.04

2

Arbitration Fee

552.56

2

Travelling Expenses

40.61

3

Liquidation Charges

33.44

3

Office Expenses

19.27

4

Cost of Staff

1310.07

4

Rent

14.93

5

Appeals, Revision and Review

13.44

5

Motor repair charges

0.46

6

Registration fee of Co-operative Societies

65.99

6

Petrol Charges

10.37

7

Other items

29.32

7

Wages

19.69

     

8

Other charges

0.20

 

Total

2232.21

 

Total

3696.57

    Huge amounts are due from Co-operatives towards audit fee, audit cost, interest on loans etc.  Details of the amount receivable are as shown below.

(Rs. in Crores)

Sl.No.

Particulars

Amount due from primaries

Amount due from Apex Institutions

Total

1

Loan installments

Rs.  1.83

Rs.  18.92

Rs.  20.75

2

Interest on Loans

Rs.  1.88

Rs.  45.62

Rs.  47.50

3

Penal Interest

Rs.  0.52

Rs.    3.14

Rs.    3.66

4

Retirement of Share Capital

Rs.  5.29

Rs.    5.57

Rs.  10.86

5

Dividend on Share Capital

Rs.  0.03

       --

Rs.    0.03

6

Audit Fee

Rs.  0.90

       --

Rs.    0.90

7

K.S.R.Cost

Rs.  0.05

       --

Rs.    0.05

8

Audit Cost

Rs.  0.77

       --

Rs.    0.77

 

Total

Rs.11.27

Rs.  73.25

Rs.  84.52

As mentioned above, an amount of Rs. 84.52 lakhs have to be received from various co-operatives towards revenue as well as capital investments.

            With regard to the arrears towards audit fee, huge amounts are due from co-operatives functioning under the control of other Departments.  They include Handloom Co-operatives, Coir Co-operatives, Khadi and Village Industries Co-operatives, Fisheries etc.  The collection is to be made by the controlling Departments.

            In order to increase collection of revenue targets may be fixed to the District Officers on the basis of outstanding balance and current demand.  A monitoring committee may be constituted for collection of audit fee from co-operatives functioning under the control of other Departments.  At State level, committee consisting of secretaries to Government of the Concerned Departments, and Head of Departments may be constituted to review the collection of audit fee at District level, a committee headed by Joint Registrar (General) and other District Officers of Departments concerned as members may be constituted.  The committee may fix the target for Taluk level officers including field officers for collection of audit fee pertaining to other Departments.  Another suggestion is to direct the co-operatives concerned to remit the audit fee including arrears before the commencement of the audit of the succeeding year.  This can be done by the Auditor or A.R. (Audit) as the case may be.

 
     

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