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Chapter-2 Performance Audit

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Chapter-2 Performance Audit CHAPTER-2 PERFORMANCE AUDIT CHAPTER-2 Rural Development Department 2.1 Implementation of Indira Awaas Yojana (IAY) Executive Summary Indira Awaas Yojana (IAY) was launched by the Ministry of Rural Development in May 1985 with an objective to help rural people below the poverty-line (BPI.) in construction of dwelling units and upgradation of existing unserviceable kutcha houses by providing assistance in the form of lump sum grant. Review of IAY in the State for the period April 2008 to March 2013 was conducted between May and September 2013. Some of the major audit findings are discussed below: Financial Management There was a short release of state share of 11.89 crore, besides State lost central share amounting to 256.42 crore due to excess carry over fund, short release of state share etc. (Paragraphs 2.1.5.2 and 2.1.5.3) Implementing agencies had not accounted for interest 1.05 crore earned on IAY funds despite credit by banks. (Paragraph 2.1.5.8) In 16 blocks, Utilisation Certificates (UCS) for an expenditure of 142.61 crore were not submitted by Block Development Officers (BDOs) to District Rural Development Agencies (DRDAs), as of May 2013. (Paragraph 21.5, 9) Financial management under the scheme should be bolstered with accurate accounting and effective utilisation ofscheme funds. Identification and selection of beneficiaries Additional 9.90 lakh BPL families identified in revised BPL survey 2010 were deprived of IAY scheme as State government did not sanction their names for inclusion in eligible beneficiaries list on the ground of extra burden on public exchequer. (Paragraph 21.6.1) Out of six test checked districts permanent waitlist was not prepared in Garhwa and Deoghar district to select IAY beneficiaries and in 14 testchecked blocks, 25,424 beneficiaries were selected without Gram Sabha approval. (Paragraph 2.1,6.2) In seven blocks of Garhwa and Ranchi districts, names of 593 selected beneficiaries did not match with the names mentioned in BPL list. Further, in six blocks of three test-checked districts, 474 houses were allotted to beneficiaries whose BPL numbers were not present in BPL list. (Paragraph 2.1. 6.4) In twelve blocks of six districts, 134 beneficiaries were allotted 279 houses under IAY during 2008-13. (Paragraph 2.1. 6.5) Preparation of correct Permanent Waitlist by the Gram Panchayats with approval of Gram Sabha as envisaged in IA Y guidelines should be ensured. Construction ofHouses and Quality In 17 test-checked blocks, 22 per cent houses, out of 29,118 houses sanctioned during 2008-11, were incomplete as of July 2013. Delay in completion ranged from four months to more than three years. (Paragraph 2.1.7.1) Inventory of constructed/upgraded houses under IAY not maintained in test checked blocks. (Paragraph 2.1.7.2) Implementing agency should ensure completion of targeted IA Y houses in prescribed timeframe. Convergence with other Schemes Test checked districts neither had any co-ordination with other departments in identifying the schemes/programmes that could be converged with IAY nor did they have any information on different facilities provided under Convergence. Further, in nine blocks, irregular deductions of 13.81 lakh were made from the instalments of beneficiaries. (Paragraphs 21.8.1 and 2.1.8.2) DRDAs should identify the programmes/schemes implemented by various Departments for dovetailing with IA Y to ensure provision of intendedfacilities to IA Y beneficiaries under Convergence. Monitoring and Evaluation The State Level Vigilance and Monitoring Committee (SLVMC) met only twice against the required 12 meetings to be held during 2010-13. Further, against the required 12 meetings of District Level Village Monitoring Committee (DLVMC) there was a shortfall ranging between 17 and 50 Per cent in number of meetings in four districts. (Paragraph 2.1.9.4) Meetings of SLVMC and DLVMC in required numbers should be ensuredfor better monitoring and supervision of implementation ofIA Y scheme. Audit Report on General, Social and Economic (Non-PSUs) Sectorsfor the year ended 31 March 2013 2.1.1 Introduction Indira Awaas Yojana (IAY), the flagship scheme of the Ministry of Rural Development (MoRD) for fulfilment of housing needs of rural poor was launched in May 1985 as a sub-scheme of Jawahar Rozgar Yojana (JRY). It is being implemented as an independent scheme since 1 January 1996. 10 Chapter-2: Performance Audit Objective ofIA Y The objective of the Indira Awaas Yojana is to help in construction/ upgradation of dwelling units of rural Below Poverty Line ( BPL) households l belonging to members of Schedule Castes (SCs)/Schedule Tribes (STS), freed bonded labourers, minorities and other non-SC/ST rural households by providing them a lump sum financial assistance. Assistance Pattern Indira Awaas Yojana is a Centrally Sponsored Scheme funded on cost-sharing basis between Government of India (GOD and the State Governments in the ratio of 75:25. In addition to the entitled grant2 , an IAY beneficiary can also avail a loan up to 20,000 under differential rate of interest (DRI) scheme at an interest rate of 4 per cent per annum. 2.1.2 Organisational structure In Jharkhand, the scheme is being implemented in the districts by District Rural Development Agencies (DRDAs) headed by the Deputy Commissioners (DCs)/ Deputy Development Commissioners (DDCs) under the overall supervision of the Principal Secretary, Rural Development Department (RDD). Organisational structure of Rural Development Department for implementation of IAY is as in Appendix-2,1.1. RDD is responsible for monitoring of scheme implementation although the funds were directly released by Gol to DRDAs. 2.1.3 Audit approach Audit objectives We reviewed the implementation of Indira Awaas Yojana in Jharkhand state to assess whether: The allocation and release of funds under IAY were made in an adequate and timely manner and that these were utilised economically and efficiently in accordance with the scheme provisions; The identification and selection of the target groups and the processes for allotment, construction and up-gradation of dwelling units were adequate and conformed to the scheme guidelines; The physical performance under IAY in terms of number of units constructed/ upgraded was as planned and targeted and that the constructions corresponded to the quality and financial parameters set out in the scheme guidelines; 1 As per IAY guidelines, 60 per cent of physical targets of IAY houses will be utilised for SC/ST BPL households, 40 per cent for non SC/ST-BPL households. Three and fifteen per cent of the above categories are for physically/ mentally challenged persons and BPL minorities respectively. 2 Effective rates of assistance for new consffuction of dwelling unit under LAY: from the year 2008: 35,000 (plain area) and 38,500 (hilly & difficult area), from the year 2010: 45,000 (plain area) and 48,500 (hilly & difficult area). Effective rates for Upgradation of dwelling unit under IAY: for the years 2008-13: 15,000. • The convergence of IAY activities with other programmes as envisaged was effectively achieved and ensured availability of a complete functional dwelling unit; and 11 Audit Report on General, Social and Economic (Non-PSUs) Sectorsfor the year ended 31 March 2013 • The mechanism in place for monitoring and evaluation of the outcomes of the programme was adequate and effective. 2.1.3.2 Audit criteria The audit criteria for the review of IAY were adopted from the following sources: • Indira Awaas Yojana guidelines issued by MoRD, Government of India (GOD; • Circulars/instructions issued by MoRD and RDD, Government of Jharkhand (GoJ); • Accounts Code 2001 issued by Government of India for accounting procedure of District Rural Development Agencies (DRDAs); and • Periodical reports/ returns prescribed under LAY Guidelines, BPL List and National Level Monitors (NLMs) Report. 2.1.4 Audit scope and methodology The review of the implementation of IAY in the State for the period 20082013 was conducted between May 2013 and September 2013 through issuing questionnaire/proformas and test check of records at the Department, six5 (out of 24) districts/DRDAs and 18 6 (out of 260) blocks. Audit also conducted joint physical inspection of 1198 IAY houses in 102 Gram Panchayats (GPs) and interviewed beneficiaries/owners of these houses. Review of IAY commenced with Entry Conference with the Principal Secretary, Rural Development Department on 23 May 2013, wherein the methodology, scope, objectives, and criteria were discussed. Exit Conference with the Secretary, Rural Development Department, Government of Jharkhand (GoJ) was held on 17 February 2014. Interim reply on report was furnished by RDD on 20 February 2014 which has been suitably incorporated. Auditfindings 2.1.5 Financial management The State Government e to IA Y guidelines for fund allocation to blocks did not consider giving 75 per cent weightagc As per para 4.1 of IAY Guidelines, inter-district/inter-panchayat allocation within to housing shortage a State was to be made by giving 75 per cent weightage to housing shortage and prescribed for 25 per cent weightage to rural SC/ST population of the concerned districts. Audit interblock/ inter- noticed that during 2008-13, the inter-block/ interGP allocation of funds was being panchayat allocation done by DRDAs by using census population of funds. Non Savings for 2008-12 remained four to 36 per cent of the total available funds, while expenditure exceeded the available funds by 64.65 crore (17 per cent) during 2012-13. - adhe renc Overall short release of State share in the State was 11.89 crore during 2008-13. 5Deoghar, East Singhbhum, Godda, Garhwa, Palamu, and Ranchi disfricts. 6 Sadar Deoghar, Madhupur, Ghatshila, Gourabanda, Godda Sadar, Thakurgangti. Chinia, Dandai, Nagaruntari, Garhwa Sadar, Medininagar, Leslignanj, Chainpur, Bishrampur, Namkum, Ratu, Mandar and Nagri. 12 Chapter-2: Performance Audit figures of SC, Financial Utilisation and Reporting ST, Minority As per the scheme guidelines, central assistance to the State Government was and others to be released in two instalments.
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