AFVOA Newsletters of Year 2012

Page 54 of 80 Col Narayanan to mention a few. In addition. Col KS Chakravarthi has been assisting in the Data Entry of our members list and tabulation of their personal details. We thank you for your support and look forward to the coming year with great hope. Thank you all. Presentation of Audited Accounts Col RS Varadan, Treasurer presented the audited accounts, copies of which had been circulated to the members in advance. The following observations on the audited accounts were made by Maj Gen C Govindaswamy. Alongside the responses from the Treasurer are recorded. Balances with Banks and FDs (a) It is noticed that the AFVOA has two Savings Bank Accounts, one with SBI and the other with ICICI Bank. The balance is about Rupees one lakh in each of the accounts. Since a high payout is only to the caterer after each meet, it is felt that there is no need to hold these large amounts as balances in Savings Bank accounts. Much of the balances should have been kept in the form of FDs, which would have earned higher interest. Treasurer: In view of the proposal for starting a Life Time Subscription (LTS), we felt that we may need to retain some cash in Bank., till we build up interest from the LTS. However since the proposal for LTS has been deferred, member’s point is noted for action. (b) A sum of Rs. 5, 00,000/= appears as “Capital Reserve” under “Liabilities” in the Balance sheet. The interest accruing from this reserve amount should be credited under Capital Reserve and not be merged with the other interest as is being done now. Treasurer: The term Capital Reserve does not exist in the columnar cash book. It is one of the standard heads used in the CA’s report. This point will be discussed with the CA and action as appropriate taken. (c) The accounts should preferably be kept in one bank. This will also simplify the workload for the treasurer. Treasurer: This was a decision taken after careful thought in 2009. There is no difficulty in operating the accounts in two different banks as they are co-located. . ICICI is a scheduled bank with flexi timings and hence convenient. Heads of Expenditure. In the Statements of accounts there are two heads of expenditure introduced: (a) Welfare Expenses. (b) Travelling and Conveyance I request that the details of expenditure under these heads may please be intimated. Treasurer: These heads were introduced by splitting one head for purposes of transparency and clarity. It will be seen that under Welfare a sum of Rs 2870 and under Travelling and Conveyance a sum of Rs 1100 has been spent during the entire year.