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This Report on the audit of expenditure (General and Social Sector) incurred by the Government of Maharashtra has been prepared for submission to the Governor of Maharashtra under Article 151 of the Constitution of India. 2. Chapter I of this Report covers audited entity profile, authority for audit, planning and conducting of audit and responses of the departments to draft paragraphs. Highlights of audit observations included in this Report have also been brought out in this chapter. 3. Chapter II contains findings of the performance audit of Working of the Maharashtra Maritime Board and the Mumbai Building Repairs and Reconstruction Board. Chapter III deals with the findings of transaction audits. Chapter IV includes a report on the Chief Controlling Officer based Audit of the Women and Child Development Department. 4. Audit observations on matters arising from the examination of Finance and Appropriation Accounts of the State Government for the year ended 31 March 2012 are presented separately. 5. The Report containing observations arising out of audit of Statutory Corporations, Boards and Government Companies and the Reports containing observations on Economic Sector, Revenue Sector and Social Sector (Rural Development and Water Conservation and Urban Development Departments) are presented separately. 6. The cases mentioned in this 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. CHAPTER - I Page INTRODUCTION 1 to 9 Chapter I : Introduction 1.1 About this Report This Report of the Comptroller and Auditor General of India (C&AG) relates to matters arising from performance audit of selected autonomous bodies and compliance audit of Government departments falling under General and Social Sector. Compliance audit refers to examination of the transactions relating to expenditure of the audited entities to ascertain whether the provisions of the Constitution of India, applicable laws, rules, regulations and various orders and instructions issued by the competent authorities are being complied with. On the other hand, performance audit besides conducting a compliance audit, also examines whether the objectives of the programme/activity/department are achieved economically and efficiently. The primary purpose of the Report is to bring to the notice of the State Legislature, important results of audit. Auditing Standards require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions. The findings of audit are expected to enable the Executive to take corrective actions as also to frame policies and directives that will lead to improved operational efficiency and financial management of the organisations, thus contributing to better governance. This chapter, in addition to explaining the planning and extent of audit, provides a synopsis of the significant deficiencies and achievements in working of the two Boards, significant audit observations made during the audit of transactions and follow up on previous Audit Reports. Chapter II of this Report contains findings arising out of performance audit of two selected Boards. Chapter III contains observations on audit of transactions in Government departments and autonomous bodies. Chapter IV contains observations on the Chief Controlling Officer (CCO) based audit of the Women and Child Development Department. 1.2 Audited Entity Profile The Principal Accountant General (General & Social Sector Audit), Maharashtra conducts audit of the expenditure under the General and Social Services incurred by 19 departments in the State at the Secretariat level and eight autonomous bodies. The departments are headed by Additional Chief Secretaries/Principal Secretaries/Secretaries, who are assisted by Directors/ Commissioners and subordinate officers under them. A summary of the State Government’s fiscal transactions during 2011-12 vis-à-vis the previous year is given in Table 1. Report No. 3(GSS) for the year ended March 2012 Table 1 : Summary of fiscal operations (` in crore) 2010-11 Receipts 2011-12 2010-11 Disbursements 2011-12 Section-A: Revenue Non Plan Plan Total 105867.82 Revenue Receipts 121286.14** 106459.38 Revenue 101519.15 22035.04 123554.19 Expenditure 75027.10 Tax revenue 87608.46 37704.23 General services 42352.03 500.85 42852.88 8225.04 Non-tax revenue 8167.70** 48282.06 Social services 40525.19 14287.02 54812.21 11419.78 Share of Union 13343.34 19285.36 Economic services 17743.52 7125.23 24868.75 Taxes/Duties 11195.90 Grants from 12166.64 1187.73 Grants-in-aid and 898.41 121.94 1020.35 Government of India Contributions Section B : Capital 17.28 Miscellaneous Capital 455.83 17963.37 Capital Outlay 2848.16 15031.38 17879.54 Receipts 640.09 Recoveries of Loans 558.74 959.08 Loans and 836.28 and Advances Advances disbursed 20739.78 Public debt receipts* 24452.56 4773.61 Repayment of 6458.35 Public Debt* 0.00 Appropriation from 1000.00 850.00 Appropriation to 500.00 Contingency fund Contingency fund 853.00 Contingency Fund 511.20 11.20 Contingency Fund 1000.00 48406.32 Public Account 53389.38 39557.62 Public Account 46962.93 Receipts Disbursements 25559.36 Opening Cash 31509.39 31509.39 Closing Cash 35971.95 Balance Balance 202083.65 Total 233163.24 202083.65 Total 233163.24 (Source : Finance Accounts of the respective years) * Excluding ways and means advances and overdraft (Receipt : nil and Disbursement : nil) **Includes ` 170.23 crore, the outstanding central loans under Central Plan Schemes and Centrally Sponsored Schemes advanced to State Governments by the Ministries other than Ministry of Finance written off as per the recommendation of the Thirteenth Finance Commission (ThFC). 1.3 Authority for audit The authority for audit by the C&AG is derived from Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971. The C&AG conducts audit of expenditure of the Departments of Government of Maharashtra under Section 131 of the C&AG's (DPC) Act. The C&AG is the sole auditor in respect of eight autonomous bodies which are audited under sections 19(2)2, 19(3)3 and 20(1)4 of the C&AG's (DPC) Act. In addition, the C&AG also conducts audit of 878 other bodies/authorities, under Section 145 of the C&AG's (DPC) Act, which are substantially funded by the Government. Principles and 1 Audit of (i) all transactions from the Consolidated Fund of the
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