Society Auditor Services in India

Yes. All cooperative housing societies registered under state cooperative societies legislation are required to have their accounts audited annually. In Maharashtra, for example, the audit must be conducted by an auditor empanelled with the Divisional Joint Registrar of Co-operative Societies. The audit report must be presented at the Annual General Meeting and filed with the registrar within the prescribed time.

The sinking fund is a mandatory contribution from society members set aside for major structural repairs and reconstruction of the building. Under the Maharashtra Co-operative Societies Act, housing societies must collect a minimum sinking fund contribution of 0.25% per annum of the construction cost of the building from each member. The auditor verifies that contributions have been collected, invested in permitted instruments, and not used for unauthorised purposes.

Failure to conduct and file a mandatory audit can result in penalties under the applicable state cooperative societies act, potential cancellation of the society's registration, and difficulties in obtaining NOCs for member flat transfers and loans. The managing committee members may also face personal liability for non-compliance with statutory obligations.

In most states, cooperative housing society audits must be conducted by an auditor empanelled or authorised by the state cooperative department — not simply any practising Chartered Accountant. The empanelment requirements vary by state. It is important to confirm that your society auditor holds the necessary empanelment for the relevant state before the audit commences.

Key documents include: cashbook and ledgers; bank statements and passbooks; maintenance charge receipts; vouchers for all payments; sinking fund and repair fund investment records; AGM and managing committee meeting minutes; member list with flat details; property tax and water charge payment records; and the previous year's audited accounts and audit report.