BANGALORE: Is Bangalore University engaged in commercial activity? This was the point raised during Monday’s Academic Council meeting which saw the university’s annual financial statement for the year 2010- 11 being tabled.
The members were critical of the report, which contains several discrepancies, including sales tax amounting to Rs 46.34 lakh.
The university’s balance sheet as on March 31, 2011, showed sales tax under liabilities column, categorised under statutory dues amounting to Rs 46.34 lakh.
“There is no provision for a university to deduct sales tax.
It is an expense on our part. Sales tax is applicable to a trader. Has the university been doing commercial activity?” questioned R Karuna Moorthy, a member.
Members also objected to the use of ‘revenue and expenditure’ while preparing the accounts.
Babu Rao H, a practising chartered accountant and a member, said: “The university is a nontrading concern. Revenue and expenditure will not feature in our accounts. Please remove those words, as only receipts and payments are applicable,” he said.
Further, the members were outraged over the accounts showing Rs 1,000 as the yearly expenditure on the sitting fees, TA and DA of Academic Council meetings.
Also, the report showed Rs 50 lakh towards audit charges. “Can we really trust these figures? The Finance Officer should not have tabled a faulty report.
If the auditor has okayed this, then it is not justified to pay him Rs 50 lakh a year,” the members said.
While Finance Officer Prof N Rangaswamy was tonguetied to most of the queries, he did concede that the accounting system needed upgradation.
“We have been following fund-based accounting system.
However, this has not been upgraded. During the month-long research for this report, I realised the mistakes,” he told the meeting.
No resolution was taken as further discussion on the financial statement was deferred.
Monday’s Academic Council meeting was delayed by almost one hour due to noncompliance from both Vice- Chancellor Dr N Prabhu Dev and the members.
The meeting was notified to be held at the seminar hall at Jnana Jyothi Auditorium at 11 am.
The VC showed up around 11.25 am after the quorum was established.
Following the notice, he took his chair in the seminar hall, while the members had shifted to the board room.
“The board room is comfortable. There are mikes. Even the last meeting was held here. We do not want the meeting at the seminar hall,” said the members.
Finally, the meeting was held in the seminar hall.