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Performance Audit Government of Manipur

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Performance Audit Government of Manipur Report of the Comptroller and Auditor General of India For the year ended 31 March 2015 GOVERNMENT OF MANIPUR Report No. 1 of 2016 TABLE OF CONTENTS Paragraph Page Preface - vii Executive Summary - ix CHAPTER I SOCIAL SECTOR Introduction 1.1 1 PERFORMANCE AUDIT LABOUR AND EMPLOYMENT DEPARTMENT Functioning of Industrial Training Institutes in Manipur 1.2 3 RURAL DEVELOPMENT AND PANCHAYATI RAJ DEPARTMENT Implementation of Pradhan Mantri Gram SadakYojana 1.3 36 (PMGSY) COMPLIANCE AUDIT CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION DEPARTMENT Extra Burden to Antyodaya Anna Yojana (AAY) Beneficiaries 1.4 66 DEPARTMENT OF EDUCATION (SCHOOLS) Extra Expenditure 1.5 66 Misappropriation of Fund 1.6 68 RURAL DEVELOPMENT AND PANCHAYATI RAJ DEPARTMENT Diversion of MGNREG Fund 1.7 69 SOCIAL WELFARE DEPARTMENT Working of Remand Homes/Juvenile/Correction Homes 1.8 70 Doubtful Expenditure 1.9 75 Suspected Misappropriation of Fund 1.10 76 CHAPTER II ECONOMIC SECTOR Introduction 2.1 79 PERFORMANCE AUDIT FOREST AND ENVIRONMENT DEPARTMENT Performance Audit on Effectiveness of Manipur Pollution 2.2 81 Control Board i Audit Report for the year ended 31 March 2015 COMPLIANCE AUDIT IRRIGATION AND FLOOD CONTROL DEPARTMENT Wasteful and Extra Expenditure 2.3 100 Wasteful Expenditure 2.4 102 PUBLIC HEALTH ENGINEERING DEPARTMENT Irregular Drawal of Self Cheques 2.5 103 PUBLIC WORKS DEPARTMENT Loss to Government Due to Incorrect Adoption of Base Rate 2.6 104 Unauthorised Execution of Work 2.7 106 HORTICULTURE AND SOIL CONSERVATION DEPARTMENT Follow up Audit on “CCO Based Audit of Department of 2.8 107 Horticulture and Soil Conservation” CHAPTER III ECONOMIC SECTOR (PUBLIC SECTOR UNDERTAKINGS) Functioning of State Public Sector Undertakings 3.1 111 PERFORMANCE AUDIT MANIPUR STATE POWER DISTRIBUTION COMPANY LTD. Implementation of Re-Structured Accelerated Power 3.2 123 Development and Reforms Programme Energy Billing System of Manipur State Power Distribution 3.3 145 Company Ltd. COMPLIANCE AUDIT MANIPUR INDUSTRIAL DEVELOPMENT CORPORATION LTD. Undue Benefit to the Supplier 3.4 151 CHAPTER IV REVENUE SECTOR Trend of Revenue Receipts 4.1 153 Analysis of Arrears of Revenue 4.2 155 Arrears in Assessments 4.3 156 Evasion of Tax Deducted by Department 4.4 156 Pendency of Refund Cases 4.5 156 Response of the Departments/Government Towards Audit 4.6 156 Analysis of the Mechanism for Dealing With the Issues Raised 4.7 159 by Audit Action Taken on the Recommendations Accepted by the 4.8 160 Departments/Government ii Table of contents Audit Planning 4.9 161 Results of Audit 4.10 161 Coverage of This Report 4.11 162 PERFORMANCE AUDIT TAXATION DEPARTMENT Admissibility of Input Tax Credit 4.12 163 TRANSPORT DEPARTMENT Implementation of Smart Card Project for Driving Licence 4.13 173 and Registration Certificates of Vehicles COMPLIANCE AUDIT TAXATION DEPARTMENT Evasion of Tax by Suppression of Purchase Turnover 4.14 183 Non-Levy of Penalty 4.15 184 Outstanding Tax and Penalty 4.16 184 TRANSPORT DEPARTMENT Arrears of Annual Tax on Vehicles 4.17 185 CHAPTER V GENERAL SECTOR Introduction 5.1 187 CHAPTER VI FOLLOW UP OF AUDIT OBSERVATIONS Follow up on Audit Reports 6.1 189 Action Taken on the Recommendations of Public Accounts 6.2 189 Committee Monitoring of Audit Observations 6.3 190 Response to Audit Observations and Outstanding Inspection 6.4 190 Reports APPENDICES Statement showing details of funds transferred directly to 1.1 193 Implementing Agencies under Social Sector Year-wise details of expenditure audited in respect of Social Sector 1.2 195 during 2014-15 1.3 List of units covered during the Performance Audit on ITI, 2015 195 1.4 Statement showing short deposit of admission fees 196 1.5 Statement showing delay in remittance of revenue 197 Statement showing payments made before Administrative Approval 1.6 198 and Expenditure Sanction 1.7 Statement showing splitting of sanction orders 199 iii Audit Report for the year ended 31 March 2015 1.8 Statement showing shortfall in availability of tools and equipments 200 1.9 Statement showing outdated tools and equipments 200 1.10 Statement showing un-installed machineries 201 1.11 Statement showing cash disbursement of stipends during 2013-2015 201 1.12 Statement showing delay in payment of stipends 202 Statement showing availability of raw materials and consumable 1.13 203 items 1.14 Statement showing details of Construction Civil Works 203 1.15 Statement showing details of study tours of supervisory staff 204 1.16 Statement showing study tour conducted at the end of the course 204 1.17 Statement showing shortage of instructors in ITIs 205 1.18 Organogram 206 1.19 New Connectivity works not prioritised 207 1.20 Loss to Government due to non-award of work to the lowest bidder 209 1.21 Upgradation works on ineligible roads 210 1.22 Short recovery of liquidated damages 211 1.23 Undue benefit to contractor 214 Abstract of financial irregularities noticed during the Performance 1.24 218 Audit of PMGSY Statement showing details of funds transferred directly to Implementing 2.1 219 Agencies under Economic Sector Year-wise details of expenditure audited in respect of Economic 2.2 220 Sector during 2014-15 2.3 Parameters measured for monitoring of water quality 221 2.4 Rate of water cess 222 Table 1: Total stretch of earthwork in excavation executed 222 (RD 290.277 m to RD 373.926 m) Table 2: Stretch of earthwork executed but redundant due to change 2.5 222 in design (RD 315.155 m to RD 373.926 m) Table 3: Calculation of cost for execution of compacted backfill 223 2.6 Statement showing details of self cheques drawn 223 Re-calculation of the rate per RM for 550 mm dia bore pile of 2.7 M-20 Grade for the work “Construction of Approach road to 224 Singjamei Bridge i/c Traffic Rotary” Re-calculation of the rate per RM for 600 mm dia bore pile of 2.8 M-35 Grade for the work "Construction of Salanthong Bridge over 225 Imphal River" Statement showing investment made by State Government in PSUs 3.1 226 whose accounts are in arrears iv Table of contents Summarised financial position and working results of Government 3.2 Companies and Statutory Corporations as per their latest finalised 227 financial statements as on 30 September 2015 3.3 Organogram of Manipur State Power Distribution Company Ltd. 230 Statement showing project details and date of signing Quadripartite Agreement, approved project cost, tendered cost of the project and 3.4A 231 release of funds and present status of work on date of audit (September 2015) Part-A Projects Statement showing project details and date of signing Quadripartite Agreement, approved project cost, tendered cost of the project and 3.4B 232 release of funds and present status of work on date of audit (September 2015) Part-B Projects Statement showing requirement/procurement of prepaid energy 3.5 233 meters and their actual allocation 3.6 Statement showing diversion of R-APDRP materials 234 Statement showing requirements of 7.5 meter STPs and quantity 3.7 intended to be procured as per the original LOAs as well as amended 235 LOAs. 4.1 Statement showing excess ITC Claims 236 Statement showing claim of ITC at higher rates than the actual rate 4.2 242 of tax Statement showing ITC claims on purchases from unregistered 4.3 243 dealers 4.4 Statement showing list of dealers claiming ITC without tax invoices 244 Statement showing dealers with ITC claims on purchase from 4.5 registered dealers who either did not file returns or showed nil sales 247 in returns Statement showing purchase from M/s Satyam Industries who filed 4.6 248 returns with 1 per cent VAT payable Statement showing purchase from M/s NT Enterprises which did not 4.7 249 show any sales 4.8 Statement showing local purchase turnover of un-registered dealers 250 Statement showing dealers with local purchase turnover who either 4.9 252 did not file returns or did not show purchase in their returns Statement showing list of dealers who failed to produce sales list or 4.10 254 sales registers Statement showing evasion of tax by concealment of taxable 4.11 255 turnover of sales and leviable penalty thereon A - Statement showing details of demand notice served to the 256 4.12 dealers B - Statement showing outstanding tax and penalty 256 Statement showing details of funds transferred directly to 5.1 257 Implementing Agencies under General Sector Year-wise details of expenditure audited in respect of General 5.2 257 Sector during 2014-15 v PREFACE 1. This Report of the Comptroller and Auditor General of India has been prepared for submission to the Governor of Manipur under Article 151 of the Constitution of India. 2. This Report contains significant results of performance audit and compliance audit of the Departments of the Government of Manipur under Social, Economic, Revenue and General Sectors including the Labour and Employment Department, Rural Development and Panchayati Raj Department, Social Welfare Department, Consumer Affairs, Food and Public Distribution Department, Department of Education (Schools), Forest and Environment Department, Irrigation and Flood Control Department, Public Health Engineering Department, Public Works Department, Taxation Department and Transport Department and two Public Sector Undertakings viz. Manipur State Power Distribution Company Ltd and Manipur Industrial Development Corporation Ltd. 3. The cases mentioned in the Report are those which came to notice in test audit during the year 2014-15, as well as those which came to notice in earlier years, but could not be dealt with in the previous Reports. Matters relating to the period subsequent to 2014-15 have also been included appropriately in the Report.
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