ICAI pens draft note on school accounting

Concerned over the lack of transparency and uniformity in the accounts prepared by various schools, the Institute of Chartered Accountants of India (ICAI) has issued a draft guidance note on 'accounting by schools' which will be applicable to all non-government schools.

"The government has come across a number of cases including some prominent schools in Delhi where schools have been diverting funds from one school to another or to other entities. The human resource development ministry had asked us to come up with the guidance note to tighten the accounting norms," Kamlesh Vikamsey, president of ICAI, said.

The guidance note is expected to become mandatory from the next financial year.

"A lot of money is flowing into the education system and, therefore, there is need to increase transparency and bring uniformity in financial reporting," Vikamsey said.