Delhi’s premier All India Institute of Medical Science (AIIMS) almost lost interest income worth Rs 1.54 crore in 2010-11 due to lack of internal control, says a Comptroller and Auditor General’s report on autonomous bodies under the Union Government.
According to AIIMS records, it invested Rs 6.93 crore in fixed deposits (FDs) of State Bank of India in 2010-11, which matured in August 2010 with a value of Rs 8.37 crore. However, the audit report noted that the SBI had by then deducted Rs 39.09 lakh as tax at source (TDS) on the maturity value and credited Rs 7.98 crore to the institute.
When this was pointed out by audit (in August 2011), AIIMS took up the matter with SBI, which stated that it was incorrectly done and assured a refund from the income tax authorities. The institute claimed (in September 2011) a TDS refund of Rs 1.54 crore which had been deducted by the SBI on interest income from investments.
“The reply of the Institute attributes the error of incorrect deduction of TDS solely to the Bank. However, the fact that the deficiency went unnoticed until pointed out by audit reflects lack of internal control regarding interest on investment to be realised by the Institute,” says the report.
The matter was referred to the Health Ministry in November 2011; their reply was awaited as of January 2012, the audit report said.
As of September 11, 2009, the AIIMS had a total of 17 FDs of Rs 99 lakh invested at an interest rate of 10.1 per cent.