-- Date of receipt of Form 3A/6A:
______________________________________________
-- Date entry made on _______________________ by
_____________________________
-- Checklist sent to Accounts section on
7. PERIOD FOR WHICH THE ACCOUNT IS TO BE COMPILED.
(A) In case of regular establishment i.e. where the employer has sent all the returns and remitted the dues upto date.
Please verify –
(i) whether the DCB Register is properly reconciled and item numbers are verified from the Schedule of receipts and tallied with the EDP Statement of DCB extracted from CCTS Report.
(ii) Whether Form 3A has been received in respect of all the members including members who have already left the service/where accounts settled.
(iii) Whether Form 6A reflects the Contribution in respect of all the members who have contributed during the financial year. The last account No. shown in Form 6A should tally with the one given in Form 9(R), upto February.
(iv) Whether the Form 3A has been prepared on remittance basis.
(v) Where any member has contributed in excess of the statutory rate or the statutory limit or a member’s Pension contribution is beyond the wage ceiling. These factors should be verified and noted.
(vi) Whether the non-contributory period of service is properly filled in Form 3A and wherever there is no wages, the non-contributory period should be taken as 30 days ( if it occur between the two spells of wage period).
(vii) Forward the Annual returns alongwith the prescribed documents to the EDP for generation of Check list. Wherever the Annual Returns are received in floppy, the hard copy should be received and the prescribed checks should be exercised before the floppy is sent to the EDP Centre.
(B) Compiling of accounts in respect of defaulting establishments:- (Where all the Monthly and Annual Returns are received but the employer is in default in payment of dues for part of the year or default in payment of employers share only).
In certain cases, employer is in default in payment of the dues whereas the Form 3A is prepared for the whole year with reference to the due amount. In such case, it is incorrect to compile the accounts for the whole year. When there is no remittances even for one month, the accounts should not be compiled for the whole year but only upto the month of payment of dues. The default period should not be treated as short remittances for the purpose of compiling the accounts. Under no circumstances, the Annual Statement of accounts should be prepared for the whole financial year in respect of a defaulting establishment. The default denotes only in respect of remittances in respect of EPF Account No.1. The default in other accounts will not affect the issue of Annual statement of accounts. However, efforts should be made to realize the dues, invoking recovery and Penal measures.
(C) Where the establishment is closed and no compliance:
If annual accounts has already been prepared up to the preceding financial year, the accounts should be compiled giving interest on the opening balance and also taking into account the withdrawals, if any.
(D) Triplicate challans received, but not reflected in Schedule of Receipt/Credit not given by the SBI to EPF Accounts:
The remittances are to be accounted only where it is confirmed through schedule of Receipts and the related Credit item No. to be verified. The compiling of Annual Accounts on the basis of Triplicate challans alone is highly irregular and this is totally prohibited. Efforts to be made to confirm the realisation in EPF accounts before approving the Annual Account.
(E) Where an employer has erroneously remitted the PF dues in other accounts
After due verification and examination, Cash section should be advised to transfer the funds from one account to another, before approving the Annual Account. The employer need not be asked to make good the shortfall by deposit.
(F) Where there is no compliance for the whole year or where the Monthly/Annual Returns are not forthcoming from the date of coverage.
Examine the position with Compliance Wing and Enforcement Officer concerned. If no account is to compiled, open a folio of Form 24 and record the full facts of the establishment and reason for non compilation duly indicating penal action taken and the EOs report to be attached. This Form 24 to be approved at the level of APFC. Thereafter the Establishment may be shown as disposal or clearance of Annual accounts for the year. Necessary note to be sent to EDP / Co-ord. Section for the purpose of compiling data on issue of Annual Accounts.
8. “COMPLIANCE”- Definition:
If an establishment is said to have complied, it is construed that the employer has submitted the prescribed returns and remitted the dues in full and the office in turn compiled the Annual statement and the statement issued to all the subscribers; then only the establishment is said to have been complied.
9. “BROAD SHEET” –
The compilation of Annual Accounts is completed only when the ‘Broad sheet’ is prepared and reconciled and the closing balance is certified by the AAO. Annual Accounts once compiled can not be revised and any additions/deletions should be incorporated in the current years account only. There is no question of provisional issue of Annual Statement of Accounts. PA dues or any arrear dues for the past period should be included in the current year account with due interest. The clerks in Accounts Section is required to maintain the prescribed Register for the
receipt and disposal of Form 3A & 6A and the progress in compilation of Account of each establishment.
Transfer of UCD Accounts to the Form 24:
The members PF accounts transferred to UCD account in accordance with the provisions of Para 72(6) of the EPF Scheme, 1952, prior to generation of Form 24 through computer are required to be reflected in the Form 24 of the current year, providing upto date interest. This should be done with the approval of APFC and duly linking the relevant ledger accounts and Form 9/UCD Register etc.
THE MANUAL OF ACCOUNTING PROCEDURE HAS GIVEN THE
PROCEDURE ELABORATELY ON PROMPT AND PROPER
COMPILATION OF ACCOUNTS. THIS SHOULD BE STUDIED. (Refer: Part II-A – Chapter 12).