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CAG slams 25 top city schools-Expensive cars bought from school funds-school passed the 6th pay commision burden to parents while sitting on their reserves-Times of india
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CAG slams 25 top city schools
New Delhi: Delhi’s private schools had complained that they were reeling under the burden of having to pay teachers higher salaries following the Sixth Pay Commission. A report by the Comptroller and Auditor General, however, says they used the Commission as an alibi to make money.
The auditor held that 25 elite schools passed on the burden to parents, without drawing on the cash reserves they had accumulated by not implementing the staff salaries prescribed by the government. The money collected from parents was instead transferred to the schools’ societies and trusts. Schools which claimed to be making losses didn’t hesitate to acquire expensive cars, the report said.
CAG also said schools paid salaries to fictitious staff and unauthorizedly collected money under various heads.
The CAG report, finalized last month, also said that while some contributed to the provident fund of fewer employees (National Victor School), others such as Amity International made contribution for more employees than were working. Sixth Pay Commission arrears were paid to staff not enrolled as employees.
CAG had audited accounts of 25 schools — Mount Carmel, ASN School, Sachdeva, Mother Divine, Sadhu Vaswani, Ryan International, St Mary, Birla Vidya Niketan, Air Force Bal Bharti, GD Salwan, National Victor, Amity International, DPS-RK Puram, GD Goenka, Maharaja Agrasen, Convent of Jesus and Mary, JD Tytler, Sardar Patel, Vasant Valley, Ramjas Public School, St Xavier’s, Frank Anthony, Presentation Convent, Modern School (Barakhamba Road) and Summer Fields School.
Damning Report
CAG report says 25 elite private schools
passed on 6th Pay Commission burden to parents, while sitting on their reserves
Some schools claimed to pay salary, arrears to non-existent employees; others bought costly cars despite running on loss
One school increased maintenance spending nine-fold within 2 years without any increase in built-up area
Expensive cars bought from school funds
New Delhi: In clear violation of Delhi School Education Act, many top private schools in Delhi did not offer 20% EWS reservatio, says the CAG.
CAG has also severely criticized the Directorate of Education of Delhi government for failing to monitor these lapses. As for illegal transfer of money, CAG pointed out nine cases. Sardar Patel paid Rs 2.33 crore as usage charge to Gujarat Education Society for using its assets, Birla Vidya Niketan (BVN) paid Rs 5.23 crore as rent to Birla Academy of Art and Culture and Rs 2.5 crore on repair and maintenance. CAG said it did not agree with the reply by BVN that the school paid very less user charges compared to the market rent and that the depreciation was borne by the society.
CAG said the school’s claim was not supported by documents and, moreover, the building was 27 years old and supposed to be fully depreciated. GD Goenka gave Rs 4.10 crore as interest-free loan to the parent society even as the school had an outstanding liability of Rs 6.33 crore as bank loans.
CAG dismissed the school’s explanation, making it clear that “no amount could be transferred to the society from the school funds”. “Irregular transfers” were found in the case of Frank Anthony Public School, Summer Fields, GD Salwan Public School and Mount Carmel. CAG also said that five among the 25 — GD Goenka, Sachdeva, Vasant Valley, Mount Carmel and CJM — collected excess fee ranging from Rs 4.38 crore to Rs 20.41 crore. CAG pointed out that despite running in loss, schools like Vasant Valley and ASN spent money on expensive cars — BMW, Honda Accord, Innova and Honda City.
The auditor held that 25 elite schools passed on the burden to parents, without drawing on the cash reserves they had accumulated by not implementing the staff salaries prescribed by the government. The money collected from parents was instead transferred to the schools’ societies and trusts. Schools which claimed to be making losses didn’t hesitate to acquire expensive cars, the report said.
CAG also said schools paid salaries to fictitious staff and unauthorizedly collected money under various heads.
The CAG report, finalized last month, also said that while some contributed to the provident fund of fewer employees (National Victor School), others such as Amity International made contribution for more employees than were working. Sixth Pay Commission arrears were paid to staff not enrolled as employees.
CAG had audited accounts of 25 schools — Mount Carmel, ASN School, Sachdeva, Mother Divine, Sadhu Vaswani, Ryan International, St Mary, Birla Vidya Niketan, Air Force Bal Bharti, GD Salwan, National Victor, Amity International, DPS-RK Puram, GD Goenka, Maharaja Agrasen, Convent of Jesus and Mary, JD Tytler, Sardar Patel, Vasant Valley, Ramjas Public School, St Xavier’s, Frank Anthony, Presentation Convent, Modern School (Barakhamba Road) and Summer Fields School.
Damning Report
CAG report says 25 elite private schools
passed on 6th Pay Commission burden to parents, while sitting on their reserves
Some schools claimed to pay salary, arrears to non-existent employees; others bought costly cars despite running on loss
One school increased maintenance spending nine-fold within 2 years without any increase in built-up area
Expensive cars bought from school funds
New Delhi: In clear violation of Delhi School Education Act, many top private schools in Delhi did not offer 20% EWS reservatio, says the CAG.
CAG has also severely criticized the Directorate of Education of Delhi government for failing to monitor these lapses. As for illegal transfer of money, CAG pointed out nine cases. Sardar Patel paid Rs 2.33 crore as usage charge to Gujarat Education Society for using its assets, Birla Vidya Niketan (BVN) paid Rs 5.23 crore as rent to Birla Academy of Art and Culture and Rs 2.5 crore on repair and maintenance. CAG said it did not agree with the reply by BVN that the school paid very less user charges compared to the market rent and that the depreciation was borne by the society.
CAG said the school’s claim was not supported by documents and, moreover, the building was 27 years old and supposed to be fully depreciated. GD Goenka gave Rs 4.10 crore as interest-free loan to the parent society even as the school had an outstanding liability of Rs 6.33 crore as bank loans.
CAG dismissed the school’s explanation, making it clear that “no amount could be transferred to the society from the school funds”. “Irregular transfers” were found in the case of Frank Anthony Public School, Summer Fields, GD Salwan Public School and Mount Carmel. CAG also said that five among the 25 — GD Goenka, Sachdeva, Vasant Valley, Mount Carmel and CJM — collected excess fee ranging from Rs 4.38 crore to Rs 20.41 crore. CAG pointed out that despite running in loss, schools like Vasant Valley and ASN spent money on expensive cars — BMW, Honda Accord, Innova and Honda City.
Replies to This Discussion
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Permalink Reply by 38wooofssdpvn on
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This is technically our money that the schools are misusing. Since schools financial documents are never declared to the Parents committee in any school. The mandate should be that all schools should print their annual balance sheet for the year in the School's annual Journal or magazine that they publish. It should be open for all parents to see. If there are cash reserves then why dont schools engage the money in profit earning Mutual Funds with Principal protection. This way if they end up making money from the cash reserves maybe they would charge us lesser.
Sambit Misra
Shivalik, Malviya Nagar
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Permalink Reply by Sakshi (Moderator) on
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@ sambit You are SPOT ON
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Permalink Reply by deepak gupta on
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every school which has been given cheap land shud be audited by CAG every year,schools which are found involved in irregularities shud immediately be asked to reduce fee's,schools shud be forced to run on a no profit no loss basis,and i m sure if government makes such a law,u will see lot of advertisements in news papers offering scchools for sale.
right now,government should seeks legal advice to see if any criminal proceedings can be initiated against culprit schools.
all their expensive cars shud be sold and money generated shud be used to fund schooling costs of EWS category.
CAG did check that birla vidya niketan paid huge money as rent,but did it check further to see where actually the money ended up?
there is no disclosure made in newpaper on where all the money finally went.
G.D.Goenka gave interest free loan of 4.10 crore to parent society,but what did the parent society did with this money?
CAG shud dig this deep rooted curropt system of privately owned school managments and all such societies misusing public money.
school hiked fees to cope with sixth pay commission,and now after so many years of sisth pay commission's implementation CAG waked up and went to audit.
there are more serious questions,
did CAG checked previous acounts books? for how many years?
CAG selected only these 25 schools? or CAG is going to audit every school regularly?
i think we shud flood CAG with complaints regarding school's financial managment so that every school is audited by CAG.
think how much money is generated every year by a school? considering 4000 average fee paid by each student and having 2000 students enrolled on average and 10 sections of 14 standards from nursery to 12th?
assuming eah section consists of 35 students every school is making 14 lac rupees from every class,considering 14 standards from nursery to 12th,they collect rougly 2 crore every month,transportation,or other charges like development fee etc are extra,so every school is collecting 25-30 crore annually,and their staff includes average 100-150 people consisting teachers and administration staff and supporting staff like peons,drivers,gardners etc.
so how much they spend on paying salaries,maintanence etc?
definiately,huge money is left unused,the calculation i explained can be calculated even by a common man.
i wonder why CAG waked up for the first time for such an audit?
why our government or taxmen never got this thought?
or may be they all knew,but bribed to keep mum.......
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running a school is the best business :)
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ashima i presented an idea about running a school by funds contributed by parents here.go through the old threads or search the thread from discussions started by me from my profile.
not many people showed interest.
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Permalink Reply by Sumit Vohra (Webmaster) on
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Dear Deepak
Last year you raise a very noble cause i remember.. not many parents showed interest
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yeah,the cause is still here,if possible highlight it or promote it,we have new parents this year,may be we find people interested,if we get few people interested every year,that dream may become reality may be few yrs later.
there is always hope.
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Dear Deepak
Sure i will after the clear guidelines come as they are tense now !!
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Great Idea Mr. Deepak....a school can be run in every area with the cooperative funding by the parents concerned...
and you have given a very clear example above that how the profit seeking schools are managing their affairs after collecting such huge money in fees from parents and getting subsidized land/rent already...In present times schools and technical colleges have become a very lucrative business options for all budding entrepreneurs..and I'm sure not all of them will be having philanthropy/no profit no loss mode of society in mind...venture capitalists are ready for funding..so all them wants a good return in capital employed..
same is true for the reputed chains of schools functioning in the Delhi-NCR and other parts of the country....people have accepted this model...and till then there is no major repression from such schools no voice can be raised against them..its the fact the all children of the powerful people are also studying in such schools..and we middle class also want to rub shoulder with them, so we die for such schools too at any cost...
In our times Central schools were at the fore front of providing quality education and parents had no objection of sending their kids to Government and Missionary schools...but in recent times of consumerism where everything has a price tag and anything can be bought by anybody...all are brand conscious..and it has become a belief and the practice too that the private big names of schools are the proven brands...and they are incashing this brand equity in this sellers' dominated market...
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We all know that schools are just mending money in the name of fee. I think all of us r even ready to pay this money provided we get admission in the school of our choice. But then, when results r out, we r hardly left with any choice n we have to spend money on the school which we never desired for.
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