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GOVERNMENT of SIKKIM Report No. 1 of 2013 Report Of

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GOVERNMENT of SIKKIM Report No. 1 of 2013 Report Of Report of the Comptroller and Auditor General of India for the year ended March 2012 GOVERNMENT OF SIKKIM Report No. 1 of 2013 CONTENTS Paragraph Particulars Page no. Preface v Executive summary vii Chapter I: Social Sector 1.1 Introduction 1 1.2 Planning and conduct of Audit 2 Implementation of Mahatma Gandhi National Rural Employment 1.3 Guarantee Scheme in Sikkim 3 (Rural Management and Development Department) Non-deduction/ short realisation of Labour Cess 1.4 28 (Labour Department) Unfruitful expenditure 1.5 29 (Social Justice, Empowerment and Welfare Department) Unfruitful expenditure 1.6 30 (Water Security and Public Health Engineering Department) Failure to operationalise drug testing lab 1.7 32 (Health Care, Human Services and Family Welfare Department) Loss due to non-deduction of void on stone (Departments of: Building & Housing, Water Security & Public Health Engineering, Urban Development & Housing, Human 1.8 Resource Development, Health Care, Human Services & Family 33 Welfare, Roads & Bridges, Irrigation & Flood Control, Energy & Power, Rural Management & Development and Forest, Environment & Wildlife Management) Chapter II: Economic Sector 2.1 Introduction 35 2.2 Planning and conduct of Audit 38 Forest Conservation and Protection in Sikkim 2.3 38 (Forest, Environment and Wild life Management Department) Implementation of Pradhan Mantri Gram Sadak Yojana 2.4 70 (Rural Management and Development Department) Integrated Audit 2.5 (Animal Husbandry, Livestock, Fisheries and Veterinary Services 99 Department) Loss due to delayed response of the Department 2.6 132 (Tourism and Civil Aviation Department) Loss due to injudicious parking of huge funds in Savings account 2.7 (Horticulture and Cash Crops Development Department (Small 133 Farmers Agri. Business Consortium)) Excess expenditure due to adding incidental charges twice 2.8 134 (Roads & Bridges and Irrigation & Flood Control Department) Paragraph Particulars Page no. Chapter III: Economic Sector (Public Sector Undertakings) 3.1 Overview of State Public Sector Undertakings 137 Performance Audit of Power Transmission activities of Energy & 3.2 149 Power Department, Government of Sikkim Blockage of working Capital 3.3 (Sikkim Industrial Development and Investment Corporation 186 Limited) Inefficient monitoring system 3.4 (Sikkim Industrial Development and Investment Corporation 188 Limited) Weak Internal Controls 3.5 190 (Sikkim Mining Corporation) Blockage of fund 3.6 192 (State Bank of Sikkim) Chapter IV: Revenue Sector 4.1 Trend of Revenue Receipts 195 4.2 Response of the Departments/Government towards Audit 200 Analysis of the mechanism for dealing with the issues raised by 4.3 203 Audit 4.4 Results of Audit 204 Non-realisation of taxes 4.5 (Finance, Revenue and Expenditure Department (Commercial 204 Taxes Division)) Non realisation of State Income Tax 4.6 205 (Finance, Revenue and Expenditure (Income Tax Division)) Loss of revenue 4.7 206 (Transport Department (Motor Vehicles Division)) Loss of interest 4.8 (Labour Department and Sikkim Building & Other Construction 207 Workers Welfare Board) Chapter V: General Sector 5.1 Introduction 209 5.2 Planning and conduct of Audit 210 Implementation of schemes under Rural Infrastructure 5.3 Development Fund 210 (Finance, Revenue and Expenditure Department) Short realisation of Cess and loss of revenue due to belated revision of rates 5.4 229 (Finance, Revenue and Expenditure Department and Food, Civil Supplies and Consumer Affairs Department) ii Paragraph Particulars Page no. Chapter VI: Follow up of Audit Observations 6.1 Follow up action on earlier Audit Reports 231 Response of the departments to the recommendations of the 6.2 231 Public Accounts committee (PAC) 6.3 Monitoring 231 6.4 Outstanding Inspection Reports 232 6.5 Departmental Audit Committee Meetings 233 iii LIST OF APPENDICES Subject Appendix Page no. Statement showing important aspects to be covered by the State 1.3.1 235 Employment Guarantee Schemes vis-à-vis actually incorporated Statement showing important aspects to be covered by the State 1.3.2 236 Employment Guarantee Rules vis-à-vis actually incorporated Statement showing short and delayed release of State Share 1.3.3 236 Statement showing payment of wages through Bank/Post offices 1.3.4 237 Statement showing Non-Deduction of Void on stone 1.8.1 238 Statement showing the outstanding Net Present Value 2.3.1 252 Delay in release of funds by Government of India 2.3.2 252 Delay in release of funds by SFDA to FDAs 2.3.3 253 Release of funds to JFMC 2.3.4 254 Statement showing survival rate of plantation 2.3.5 255 Statement showing non-utilization of funds 2.3.6 255 Statement showing the construction of quarters for front line forester 2.3.7 256 Statement showing the diversion of funds 2.3.8 256 Statement showing the non-completion of afforestation 2.3.9 257 Statement showing extra expenditure on CAT plan 2.3.10 257 Target and achievement in respect of National Afforestation 2.3.11 261 Programme of four FDAs for the period 2007-12 Training and capacity building 2.3.12 262 Statement showing the boundary pillars in running kilometers 2.3.13 263 Statement showing particulars of up to date paid-up capital, loans outstanding and Manpower as on 31 March 2012 in respect of 3.1.1 264 Government Companies and Statutory Corporations Summarised financial results of Government companies and Statutory 3.1.2 266 Corporations for the latest year for which accounts were finalised Statement showing grants and subsidy received/receivable, guarantees received, waiver of dues, loans written off and loans converted into 3.1.3 268 equity during the year and guarantee commitment at the end of March 2012 Statement showing the investments made by the State Government in 3.1.4 270 working PSUs whose accounts is in arrears Statement showing financial position of Statutory Corporations 3.1.5 271 Statement showing working results of Statutory Corporations 3.1.6 272 Statement showing voltage-wise capacity additions planned, actual 3.2.1 273 additions and shortfall during five years up to 2011-12 Details of dues outstanding from Mittal Processor Private Limited 3.2.2 274 Non levy of Transmission of charges 3.2.3 274 Details of Defaulters in Construction Loans as on 31 March 2012 in 3.6.1 275 State Bank of Sikkim Statement showing lists of cancelled dealers during 2009-11 4.5.1 276 Statement showing funds allocation, budget provision and 5.3.1 277 expenditure iv PREFACE 1. This Report has been prepared for submission to the Governor underArticle 151 of the Constitution. 2. The Report deals with the findings of performance reviews and audit of transactions in various departments, audit of autonomous bodies and departmentally run commercial undertakings. 3. The Report also contains the observations arising out of audit of Statutory Corporations, Boards, Government Companies and revenue receipts. 4. This Report is prepared in six chapters. Chapters I to V deal with Social, Economic, General, Public Sector Undertakings and Revenue Sectors, and Chapter VI deals with Follow up of Audit observations. 5. The cases mentioned in the Report are among those which came to notice in the course of test-audit of accounts during the year 2011-12 as well as those which had come to notice in earlier years, but could not be dealt with in previous Reports. Matters relating to the period subsequent to 2011-12 have also been included, wherever necessary. 6. Audit observations on matters arising from the examination of Finance Accounts and Appropriation Accounts of the State Government, for the year ended 31 March 2012, are included in a separate Report on State Government Finances. 7. The audits have been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. v Executive Summary Executive Summary EXECUTIVE SUMMARY This Audit Report has been prepared in six chapters. Chapters I to V deal with Social, Economic, General, Public Sector Undertakings and Revenue Sectors, and Chapter VI deals with Follow up ofAudit observations. This Report contains 25 audit paragraphs (including eight general paragraphs) and six Performance Reviews including an Integrated Audit of Animal Husbandry, Livestock, Fisheries and VeterinaryServices Department.According to the existing arrangements, copies of the draft audit paragraphs and draft performance reviews were sent to the Secretary of the Department concerned by the Principal Accountant General (Audit) with a request to furnish replies within six weeks. Replies were received from the departments concerned except in respect of eight paragraphs. SOCIAL SECTOR PERFORMANCE REVIEW Implementation of Mahatma Gandhi National Rural Employment Guarantee Scheme in Sikkim The Scheme facilitated employment generation, adequate women participation, strengthening of rural infrastructure to a large extent, enhancement in purchasing power and improved health and educational status, etc. However, the implementation needed strengthening in planning, financial management and execution of works. The development and Annual Plans need be prepared as per the stipulations in the MGNREGS guidelines to capture realistic projection of employment and asset creation. The belated transfer of funds to Blocks and GPs need be addressed to ensure timely payment of wages to wage earners. The data and record management needs to be strengthened to capture appropriate complete data. Besides, submission of dated application by the wage earners and also issue of dated acknowledgement by the GPs needs to be insisted
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