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POINTS FOR DISCUSSION

(Draft)

AL-SHIFA TRUST
(Special school & centre for rehabilitation)

For the year ended June 30, 2009

Business Assurance Services


Anjum Asim Shahid Rahman
Chartered Accountants

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |1

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

For the period ended June 30, 2009

It is one of the primary responsibilities of management to safeguard the assets of the


company. It has been noted that all assets of the organization (except for a negligible
amount) have not been insured to cover risk of loss in case of any un-foreseen event
or damage.

Management Comments
Since Trust does not have ample funds, we are not meeting this optional requirement

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

Insurance cover of fixed assets

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |2

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

For the period ended June 30, 2009

During the course of our audit we have identified differences between fixed asset
register & ledger the details of which are provided in ANNEXURE-A.

Management Comments
Adjusting entry

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

Difference between fixed asset register and ledger

Anjum Asim Shahid Rahman


Chartered Accountants

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AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Previous audit reports not signatured

During the course of our audit we noted that previous audit reports of nine
consecutive years which are listed below does not have signature of the partner
of the firm because signing conditions were not fulfilled. This also includes the audit
report of financial statements for the year ended June 30, 2008 from which we have
taken our opening balances of balance sheet accounts. In the absence of signature the
opening balances cannot be relied.

Management Comments
Will be discussed with AASR Management

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |4

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Other institution of the name of Al-Shifa trust

During the course of our audit we have noted that other institution of the name of
Al-Shifa trust also operates in country. This issue may influence the decision of the
users/stakeholders of the financial statements especially the donors. Appropriate
steps should be taken to resolve the issue.

Management Comments
AL-Shifa was the fist one to register with the name. There is no institution with the
exact name, there are, institution with the name of Al-Shifa Eye Hospital or PNS Shifa
but not exactly AL-SHIFA TRUST. An advertisement will be published in newspapers
regarding the registration of the Trust

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |5

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Board approval for purchase & disposal of fixed assets

During the course of our audit we have noted that the fixed assets that have been
purchased and disposed off during the current year have does not contain any
approval from board of trustees.

Management Comments
Minimum requirement as per Trust Deed is of Three Trustees and all our minutes are
signed at-least by three trustees

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |6

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Investment in non compliance of trust deed

During the course of our audit we have noted that Al-shifa trust as per its addendum
to the trust deed is in non compliance of its investment clause. Investment clause
states that idle funds can only be invested in N.I.T units or government securities.
Al-Shifa trust has made investment in a term deposit with Habib Metropolitan Bank.

Management Comments
There was no investment avenue available for 3 months, in the institutes mentioned in
trust deed.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |7

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Standard practice not followed for additions & disposals in fixed assets

During the course of our audit we have not found any documentary evidence
(except for a few) regarding obtaining at least three quotations from suppliers/
service providers for the assets which trust has purchased and different services
which trust has obtained. This is a standard practice that is followed in organizations.
Similarly while disposing the assets bids are obtained of which no documents
have been found.

Management Comments
Company rates are fixed & that can be checked on that date

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e |8

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Standard practice not followed for additions in investment

During the course of our audit we have found only one documentary evidence of
obtaining rate of profit on investment from a different financial institution whereas at
least three of such rate offers are required.

Management Comments
From next time in writing offers will be obtained

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

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AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Proper tagging not present on fixed assets

During the course of our audit we have noted that proper tagging is not present on
the fixed assets.

Management Comments
Fixed asset shall be soon tagged

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 10

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Physical verification of donation boxes

During the course of our audit we were not able to physically verify the existence of
all the donation boxes that have been added as fixed assets during the year.

Management Comments
Due to problem of permission

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 11

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Internal audit personnel

During the course of our audit we have noted that entity does not have any internal
Audit Personnel.

Management Comments
Trust does not have the resources

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 12

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Provision for rent of land

During the course of our audit we have noted that the premises on which trust is
built is owned by Civil aviation authority. Trust does not pay any rent for the space
that it uses. Trust also does not have any express agreement with the authority for the
land which it uses. In the absence of any express agreement it is our understanding
that trust should create provision for rent expense based on the market rate for
commercial property.

Management Comments
In the early years, Al-Shifa Trust was paying rent to CAA regularly but since CAA
formed as an AUTHORITY they stopped charging us rent.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 13

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Income booked without agreement

During the course of our audit we have noted that entity has booked an amount from
Pakistan International Airlines as income that is receivable however entity does not
have any such agreement from PIA.

Management Comments
Documents will be provided

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

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AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

AASR Bills not paid

During the course of our audit we have noted that trust has not paid bills of
Anjum Asim Shahid Rahman,Chartered Accountants of some of the previous years
amounting to Rs.49,415 in respect of different services obtained from the firm.

Management Comments
Will be paid soon

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 15

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Inventory Card not maintained

During the course of our audit we could not find any inventory card system for
maintaining in or out of inventory. Due to this inventory consumption expense
during the period cannot be verified.

Management Comments
This system is in progress

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 16

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Prior Year Receivables

During our audit we find that some receivables from Aircrew medical Centre
(ACMC) is not settled. Amount is due from last few years and it should be written
off with board approval. Detail of amount is as under:
Description
Bill No. 645 - ACMC

Year
2003-4

Amount

Bill No. 550 - ACMC

2002-3

800

Bill No. 416 - ACMC

2001-2

1,400

Bill No. 475 - ACMC

2001-2

1,900

1,300

Total

5,400

Management Comments
Can be write offadjusting entry may be passed

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 17

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Gratuity Payable:

During the course of our audit we find that gratuity is payable to two employees
who vacate their office but amount is still not paid.

Management Comments
Case will be put up in next board of trustees meeting.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 18

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Gratuity Provision:

Gratuity is applicable after five years for all employees from the date of joining.
Provision of gratuity after five years creates heavy impact on liability side of Balance
Sheet and contravention of matching principle of accounting. Gratuity provision
should be made every year after joining employment; however, there should
be a bar/restriction to attain gratuity facility before five years.

Management Comments
Will be followed from next year

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 19

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

EOBI Contribution:

We, during our audit, found that Trust did not paid EOBI contribution within 15
days of every month. The unpaid amount is Rs: 166,318 and outstanding for more
than two years. Trust is in violation of EOBI rule, i.e. Rule 2 state below:

Contributions falling due, at the end of the month, to which


they relate, Shall be paid not later than 15th of the next month.
As per above stated rule, unpaid amount of Rs: 166,318 should be paid along with
arrears to comply with EOBI rules 1976.This matter should be seriously looked
into as this may expose trust to the penal action.

Management Comments
We are in a process to finalize the matter with officials of EOBI

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 20

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Group insurance of trust employees:

During the course of our audit we observed that the trust as per its rules and
regulations framed is required to arrange for the group insurance to its employees.
However no such insurance has been arranged.

Management Comments
This matter will be put up in next board meeting for regularization.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 21

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Medical facilities to employees:

During the course of our audit it has been noted that trust as per its rules and
regulations framed is required to provide medical facilities to its employees however
no such facility is provided.

Management Comments
This matter will be put up in next board meeting for regularization.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 22

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Employee scrutiny at the time of appointment:

During the course of our audit it has been noted that trust as per its rules and
regulations framed is required to check on the background (e.g. criminal record)
and previous track record (e.g. references from previous employers) of its
prospective employees at the time of appointment because as per rules no
appointment can be made of an employee who was convicted of misconduct
previously or moral turpitude.

Management Comments
Will be done onward

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 23

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Regulations not available:

During the course of our audit it has been noted that as per the rules of the
trust it is preferred that regulations in respect of the following items shall be
maintained however no regulations were available.

Qualifications to hold a particular office


Record of service for employees

Management Comments
Will be done onward

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 24

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Documentary evidence in respect of ex-officio trustee:

During the course of our audit we have noted that as per the trust deed the
certain members of the board of trustees be the ex-officio trustee. However so
far we have not been provided any documentary support in respect of ex-officio
trust members.

Management Comments
Will be provided

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 25

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Confirmations not received:

During the course of our audit we have not so far received the confirmations in
respect of following:

Security deposit with Pakistan state oil (PSO)


Investment with Habib Metropolitan Bank (HMB)

Management Comments
Will be followed up

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 26

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Automation of accounting system and other subsidiary records:

During the course of our audit it was noted that many of the records which were
required for audit purposes were not available in soft form. Those documents could
have easily been maintained in soft form and audit could have been very speedily
completed. Further more automation also reduces errors to almost negligible amount
and decreases cost as well. Therefore we recommend that all such record which
can be maintained in soft form should be maintained in that form.

Management Comments
Will be done onward

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 27

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Compliance with Civil Aviation Regulations:

During the course of our audit


it has been noted that the premises on which the trust has been built is situated
in the vicinity of airport and therefore comes under the jurisdiction of civil
aviation authority (CAA). As per the terms of licensing the premises it has been
found that compliance with the following laws are necessary.

Regulations for conduct at airports as contained in aircraft rules 1937 (amended)


Regulations for prevention of fire at Airports1949

Due to the non-availability of following regulations for our perusal we were


unable to satisfy our self as to whether the trust is complying with the regulations.

Management Comments
Will be provided

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 28

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Compliance with Licensor Contract:

During the course of our audit it has been noted that the premises on which the
trust has been built is situated in the vicinity of airport and therefore comes
under the jurisdiction of civil aviation authority (CAA). As per the terms of
licensing the premises it has been found that trust shall provide in prominent place
in the premises, Visitors and complaint book for members and visitors to
record suggestions and complaints which shall be open to inspection by airport
manager. However no such book was found to be available with the
conditions prescribed.

Management Comments
Due to the renovation work, the book was removed from there, now has been placed

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 29

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Mode for calculation of gratuity:

During the course of our audit it has been noted that the trust does not use the
actuarial valuation method for the calculation of gratuity which is the preferred,
standard & reliable practice.

Management Comments
Trust does not have enough resources

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 30

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

For the period ended June 30, 2009

During the course of our audit it has been noted that the trust has provided
advances/salary in advance to certain employees. However following discrepancies
were found regarding this issue.

No policy was present


Advances/salary in advance were provided free of interest charge.

Management Comments
Policy will be made

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

Provision of advances/advance salary to trust employees:

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 31

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Employee of the trust employed else where:

During the course of our audit it has been noted that as per the trust deed an
employee of the trust cannot engage himself in other employment without the
permission of competent authority however such case was found for one
employee for which we have not seen the sanction /approval document so far.

Management Comments
Will be put up in board meeting

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 32

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Policy for maximum limit of cash payment:

During the course of our audit it has been noted that there is no policy for
maximum limit of cash payment. We understand that there should be a policy
formulated as to the maximum limit of cash payment and all payments above
that amount should be made through crossed cheque.

Management Comments
Some of the staff members are not maintaining their bank accounts, so we have to pay
them salary in cash.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 33

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Employees Enrollment Procedure:

During the course of our audit we have observed that for the purpose of new
appointments standard procedure for hiring the new employees does not exist.

Management Comments
This point has now been implemented

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 34

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Hiring Of Employees:

According to Rule 8 of Trust Deed of Trust,:

All appointments, unless the competent authority decides otherwise,


shall be made by competent authority
However it was observed that during the year all the employees hired were not
according to Trust Deeds rule.

Management Comments
Letter will be provided

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 35

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Deposit bank account operations not in compliance with the trust deed:

During the course of our audit it has been noted that in order to strengthen the
internal controls (check & balance system) the trust deed has a clause that there
should be two bank accounts of following nature operated jointly by two trustees as
per certain conditions of the deed.

Deposit Account
Operating Account

The funds of the trust shall primarily be kept in deposit account and such amount
shall be transferred from time to time into operating account for managing the daily
affairs of the trust. However it has been observed that no such practice is followed
and funds of the trust are kept in operating account.
Management Comments
This practice will be followed onwards

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 36

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Retirement of certain employees:

During the course of our audit it has been noted that the trust has certain employees
who have attained the age of sixty years.As per the trust deed an employee will retire
at the age of sixty. We understand that approval of board of trustees should be taken
for this situation to continue.

Management Comments
Matter will be put up in next board of trustees meeting

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 37

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Appointment letter of trusts finance manager:

During the course of our audit we have so far not been provided appointment letter
of Manager Finance Mr. Naveed Usman.

Management Comments
This matter will be put up in next board of trustees meeting

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 38

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Tax expense for the year:

During the course of our audit it has been noted that entity has not created any
provision for taxation on its income from different activities for the current year.

Management Comments
Tax consultancy is with AASR

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 39

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Availability of approved tariff rates:

During the course of our audit it has been noted that approved tariff rates from
board of trustees are not available for the following revenue sources
Treatment of CAA & PIAC employees
Workshop Income

Management Comments
Alternative evidences have been shown to the auditors.

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

Anjum Asim Shahid Rahman


Chartered Accountants

P a g e | 40

AL-SHIFA TRUST
( SPECIAL SCHOOL & CENTRE FOR REHABILITATION )

Non-availability of revenue records in proper form:

Revenue is the most critical head in any organization and strict check & balances are
in place on this area in any organization. Proper records in respect of revenue are not
available for the management to take decisions and the auditors to have its proper
verification in the limited time. We therefore recommend that proper record should
be maintained as provided in ANNEXURE-C or some other more helpful format.

Management Comments
Will be followed onward

RESOLVED
ADJUSTING ENTRY
MANAGEMENT LETTER
BOARD LETTER
AUDIT REPORT
OTHER(SPECIFY)

IDENTIFIED BY

REVIEWED BY

PARTNER

OINTS FOR DISCUSSION

For the period ended June 30, 2009

AS PER LEDGER

VEHICLES

FURNITURES &
FIXTURES

WORKSHOP
EQUIPMENT

PHYSIO
EQUIPMENT

DIFFERENCE
AS PER FIXED ASSET
REGISTER
AS PER LEDGER
DIFFERENCE
AS PER FIXED ASSET
REGISTER
AS PER LEDGER
DIFFERENCE
AS PER FIXED ASSET
REGISTER
AS PER LEDGER
DIFFERENCE
AS PER FIXED ASSET
REGISTER
AS PER LEDGER

COMPUTERS
OFFICE
EQUIPMENT

AS PER LEDGER
DIFFERENCE
AS PER FIXED ASSET
REGISTER
AS PER LEDGER
DIFFERENCE

ACC. DEP OF ASSETS


DISPOSED DURING THE
YEAR

WDV AS ON JUNE 30, 2009

ACC. DEP AS ON JUNE 30,


2009

CHARGE FOR THE YEAR

WDV (AS ON JUL 1, 2008)

1,725,478

549,819

29,596

700,055

1,025,423

1,220,278

505,200

1,725,478

555,866

29,898

694,310

1,031,168

(6,047)

(302)

5,745

(5,745)

DISPOSAL

505,200

1,955,288

31,700

1,986,988

394,956

41,940

1,602,272

384,716

1,955,288

31,700

1,986,988

423,635

44,808

1,576,461

410,527

(28,679)

(2,868)

25,811

(25,811)

179,086

179,086

15,021

2,253

166,318

12,768

179,086

179,086

15,366

2,305

166,025

13,061

(345)

(52)

(293)

293

1,417,937

234,660

188,213

1,464,384

188,213

404,561

48,219

1,172,681

303,338

134,578

1,428,987

234,660

188,213

1,475,434

188,213

411,068

48,875

931,743

543,691

135,051

(6,507)

(656)

240,938

(240,353)

(473)

(11,050)

(11,050)

1,962,400

835,000

360,000

2,437,400

360,000

1,148,530

287,210

801,478

1,635,922

299,602

1,962,399

835,000

360,000

2,437,399

360,000

1,298,446

317,193

931,743

1,755,855

299,602

(149,916)

(29,983)

(130,265)

(119,933)

DIFFERENCE
AS PER FIXED ASSET
REGISTER

COST (AS AT JUN 30, 2009)

1,220,278

DELETIONS

ADDITIONS

AS PER FIXED ASSET


REGISTER

COST (AS AT JUL 1, 2008)

BUILDING

DESCRIPTION

ANNEXURE-A

132,150

130,300

262,450

34,908

15,779

113,022

149,428

132,150

130,300

262,450

132,150

4,260

4,260

258,190

(97,242)

11,520

108,762

(108,762)

256,207

22,700

233,507

22,700

24,159

3,261

215,030

18,477

20,278

256,207

22,700

233,507

22,700

(70,980)

9,176

316,084

(82,577)

20,278

95,139

(5,915)

(101,054)

101,054

ANNEXURE-C
WORKSHOP RECEIPTS

Date

Receipt
record
#

Patient
Name

Equipment
name

Equipment
quantity

Equipment
Rate

Amount
that
should
be paid

Waiver /
concession

Amount
actually
paid

Balance

TRANSPORT RECEIPTS
Date

Receipt
record #

Student
name

Area

Amount that
should be
paid

Waiver /
concession

Amount
actually
paid

Balance

TREATMENT RECEIPTS
Receipt
Patient
Date record
Name
#

Patient
type

Patient
age

Amount
Amount
Nature/type
that
Waiver /
actually Balance
of treatment should concession
paid
be paid

ADMMISION RECEIPTS

Date

Receipt
record #

Student
name

Amount
that
should be
paid

Waiver /
concession

Amount actually
paid

Balance