## Educational Institution Audit — Verification of Fees from Students
### Primary Concern: Fee Concessions
Fee concessions are a high-risk area because:
- They reduce revenue without corresponding expense recognition
- They may be granted without proper authority
Audit approach for concessions:
- Verify that concessions are granted only under proper authority of college management
- Review the internal controls for granting concessions
- Perform detailed testing of a sample of cases for genuineness and proper management approval
### Six-Point Verification Programme for Student Fees
| # | Verification Procedure |
|---|---|
| 1 | Cross-check names in the Fee Register (each month/term) with Class Registers (students on rolls); verify fee amounts charged; test the internal control system for raising demands |
| 2 | Compare counterfoils of receipts with Cash Book entries; trace collections in the Fee Register to confirm revenue is duly accounted for |
| 3 | Total the Fee Register columns for each month/term; confirm fees paid in advance are carried forward; ensure irrecoverable arrears are written off only under appropriate authority |
| 4 | Check admission fees against admission slips signed by the head of institution; confirm amounts credited to Capital Fund (unless managing committee has directed otherwise) |
| 5 | Confirm that fines (late payment, absence, etc.) are either collected or remitted under proper authority |
| 6 | Confirm that hostel dues were recovered before closing a student's account and refunding caution money deposits |