Short Answer

Yes, any deficiency noted in the audit must be included in the AGM resolutions.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 mandates that the auditors of a cooperative society must submit their audit report to the society. If any deficiency is noted in the audit report, it is crucial for the society to address these issues transparently. This is because the Annual General Meeting (AGM) is the platform where members are informed about the financial health and operations of the society. Including deficiencies in the AGM resolutions ensures that all members are aware of the challenges and can collectively work towards resolving them.

Furthermore, Rule 87 of the Gujarat Cooperative Societies Rules, 1965 specifies that the audit report must be submitted to the Registrar along with the AGM resolutions. By including deficiencies in the AGM resolutions, the society complies with the reporting requirements set out by the Rules. This practice promotes accountability and transparency within the cooperative society, fostering trust among members and stakeholders.

In practice, if deficiencies are identified during the audit, the auditors should detail these issues in their report. The management committee then discusses these deficiencies and proposes corrective actions during the AGM. Members can deliberate on the resolutions and provide inputs on how to address the identified deficiencies effectively. This collaborative approach ensures that the society's operations are improved and financial integrity is maintained.

Practical Examples

• In a housing cooperative society, the audit reveals discrepancies in the maintenance fund utilization. During the AGM, the management committee presents resolutions to enhance fund transparency and accountability, ensuring members' contributions are utilized efficiently.

• A credit cooperative society's audit highlights irregularities in loan disbursement procedures. The AGM resolutions include measures to strengthen internal controls and compliance mechanisms to prevent such issues in the future.

• A dairy cooperative society's audit uncovers inventory mismanagement leading to losses. AGM resolutions focus on implementing inventory tracking systems and training staff to mitigate future losses effectively.

References

• Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 87 of the Gujarat Cooperative Societies Rules, 1965: Official PDF