Report of the Comptroller and Auditor General of India for the Year Ended

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Report of the Comptroller and Auditor General of India for the Year Ended Report of the Comptroller and Auditor General of India For the year ended 31 March 2014 GOVERNMENT OF MANIPUR Report No. 1 of 2015 Report of the Comptroller and Auditor General of India For the year ended 31 March 2014 GOVERNMENT OF MANIPUR Report No. 1 of 2015 TABLE OF CONTENTS Paragraph Page Preface - v Executive Summary - vii CHAPTER-I SOCIAL SECTOR Introduction 1.1 1 COMPLIANCE AUDIT DEPARTMENT OF EDUCATION (SCHOOLS) Audit on Infrastructure facilities in High and Higher 1.2 3 Secondary Schools FAMILY WELFARE DEPARTMENT Irregular Expenditure 1.3 13 RELIEF AND DISASTER MANAGEMENT DEPARTMENT Non-accountal of Scheme Fund 1.4 14 RURAL DEVELOPMENT AND PANCHAYATI RAJ Diversion of Fund 1.5 14 Excess Expenditure 1.6 15 SOCIAL WELFARE DEPARTMENT Unfruitful Expenditure 1.7 16 CHAPTER-II ECONOMIC SECTOR Introduction 2.1 19 PERFORMANCE AUDIT PUBLIC HEALTH ENGINEERINGDEPARTMENT Total Sanitation Campaign (TSC) 2.2 21 VETERINARY AND ANIMAL HUSBANDRY DEPARTMENT Veterinary and Animal Husbandry Services 2.3 54 COMPLIANCE AUDIT FOREST DEPARTMENT Undue benefit to Contractor 2.4 82 PUBLIC HEALTH ENGINEERING DEPARTMENT Blocking of Fund 2.5 83 i Audit Report for the year ended 31 March 2014 Non-realisation of outstanding water charges 2.6 84 Suspected misappropriation 2.7 85 PUBLIC WORKS DEPARTMENT Inadmissible expenditure 2.8 87 CHAPTER-III ECONOMIC SECTOR (PUBLIC SECTOR UNDERTAKINGS) Overview of Government Companies and Statutory 3.1 89 Corporations COMPLIANCE AUDIT MANIPUR TRIBAL DEVELOPMENT CORPORATION LTD. Undue benefit to supplier 3.2 96 Irregular release of Mobilisation Advance 3.3 98 MANIPUR POLICE HOUSING CORPORATION LTD. Undue advantage to suppliers 3.4 99 CHAPTER-IV REVENUE SECTOR Trend of revenue receipts 4.1 101 Analysis of arrears of revenue 4.2 103 Arrears in assessments 4.3 103 Evasion of tax deducted by Department 4.4 103 Pendency of Refund Cases 4.5 104 Response of the Departments/Government towards Audit 4.6 104 Analysis of the mechanism for dealing with the issues raised 4.7 106 by Audit Action taken on the recommendations accepted by the 4.8 107 Departments / Government Audit Planning 4.9 108 Results of Audit 4.10 109 Coverage of this Report 4.11 109 COMPLIANCE AUDIT REVENUE DEPARTMENT Short Realisation of Stamp Duty and Registration Fees 4.12 110 TAXATION DEPARTMENT Concealment of purchase turnover 4.13 111 Non deduction of VAT 4.14 112 Non realisation of tax and interest 4.15 113 ii Table of contents Short levy of tax and penalty 4.16 114 TRANSPORT DEPARTMENT Non recovery of professional tax 4.17 115 CHAPTER-V GENERAL SECTOR Introduction 5.1 117 CHAPTER-VI FOLLOW UP OF AUDIT OBSERVATIONS Follow up on Audit Reports 6.1 119 Action taken on the Recommendation of Public Accounts 6.2 119 Committee Monitoring of Audit Observations 6.3 120 Response to Audit Observations and outstanding Inspection 6.4 120 Reports APPENDICES Statement showing details of funds transferred directly to 1.1 123 Implementing Agencies under Social Sector Year-wise details of expenditure audited in respect of Social Sector 1.2 125 during 2013-14 1.3 Statement showing construction of various items 126 1.4 Status of Computer Room and Facility 127 1.5 Status of Library Construction and Library Facility 129 1.6 Pupil Teacher Ratio 130 Statement showing irregular expenditure incurred by the Director, 1.7 133 Family Welfare Services, Government of Manipur Statement showing details of funds transferred directly to 2.1 137 Implementing Agencies under Economic Sector Year-wise details of expenditure audited in respect of Economic 2.2 139 Sector during 2013-14 Statement showing expenditures incurred by Deputy Director 2.3 140 (Dairy), Porompat in favour of MMPCUL Statement showing expenditures incurred by Deputy Director 2.4 (Dairy), Porompat without maintaining proper record of 142 procurement of materials and its utilisation Statement showing list of villages, unit cost and number of units for 2.5 implementation of Grassland Development including Grass 143 Reserves iii Audit Report for the year ended 31 March 2014 APPENDICES Statement of quantities of DI pipes received from M/s Electro Steel 2.6 Castings Limited, Kolkata by Water Supply Maintenance Division, 144 PHED Details of defaulting customers and amount defaulted during the 2.7 146 period 2011-12 to 2013-14 Statement showing particulars of up to date paid-up capital, loans 3.1 outstanding and Manpower as on 31 March 2014 in respect of 147 Government companies and Statutory corporations Summarised financial results of Government companies and 3.2 statutory corporations for the latest year for which accounts were 149 finalised Statement showing Investment made by State Government in PSUs 3.3 151 whose accounts are in arrears 3.4-A Statement showing receipt of material against supply order 153 3.4-B Statement showing payment of transportation cost 153 3.5 Statement showing details of supply orders and materials received 154 Comparative statement showing the Minimum Guidance Value 4.1 (MGV) and the rate at which land was valuated for the purposing of 155 levying stamp duty and registration fee 4.2 Abstract of the revenue due and revenue collected 155 4.3 Statement showing purchase of goods by unregistered dealers 156 4.4 Statement showing short levy of interest 157 Statement showing details of funds transferred directly to 5.1 158 Implementing Agencies under General Sector Year-wise details of expenditure audited in respect of General 5.2 158 Sector during 2013-14 iv 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 Department of Education (Schools), Family Welfare Department, Relief and Disaster Management Department, Rural Development and Panchayati Raj Department, Social Welfare Department, Public Health Engineering Department, Veterinary and Animal Husbandry Department, Forest Department, Public Work Department, Revenue Department, Taxation Department and Transport Department and two Public Sector Undertakings viz. Manipur Tribal Development Corporation Ltd. and Manipur Police Housing Corporation Ltd. 3. The cases mentioned in the Report are those which came to notice in the course of test audit during the year 2013-14, 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 2013-14 have also been included, wherever necessary. 4. 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 This Report has been prepared in six chapters. Chapters I to V deal with Social, Economic, Public Sector Undertakings, Revenue and General Sectors, and Chapter VI deals with Follow up of Audit observations. The Report contains two performance audits on Total Sanitation Campaign and Veterinary and Animal Husbandry Department and 20 paragraphs including results of audit on Infrastructure facilities in High and Higher Secondary Schools. According to existing arrangements, copies of the performance audits and paragraphs were sent to the Administrative Heads of the concerned departments with the request to furnish replies within six weeks. All the performance audits were discussed with the concerned Administrative Heads of the departments and other departmental officers. In respect of 13 paragraphs, reply of the Government/Department was received. Replies had not been furnished by the Government/Department for 7 paragraphs. CHAPTER I SOCIAL SECTOR Compliance Audit Paragraphs Audit on Infrastructure facilities in High and Higher Secondary Schools: The Department of Education (Schools) of the Government of Manipur is responsible for providing access to affordable quality school education from classes I to XII within easy reach. With the enactment of the Right to Free and Compulsory Education Act, 2009 (RTE Act), the Department has become more responsible for enforcing quality Elementary education which has become a fundamental right. Sarva Shiksha Abhiyan (SSA) was meant for translating this objective into reality in letter and spirit. Another important Centrally Sponsored Scheme that is going hand-in-hand with SSA in the Secondary Education Sector is the Rashtriya Madhyamik Shiksha Abhiyan (RMSA). It was noticed that the creation of infrastructure for schools suffered due to short release of funds viz; construction of classroom, science laboratory room, computer room, library room, art and crafts room and toilet. Science Laboratories, Libraries and Art and craft centres could not be made functional as Laboratory Assistants’, Librarians and Art and Craft instructors had not been appointed. Lack of laboratory equipment, Library Books and Art and Craft materials also posed impediments. Improving capacity in ICT skills suffered due to failure to put together the necessary IT infrastructure, Computer Faculty and study materials in the schools. Deployment of teachers was skewed and was not done in proportion to the enrolment, as envisaged in the guidelines. (Paragraph 1.2) vii Audit Report for the year ended 31 March 2014 Family Welfare Department : Expenditure of ` 97.93 lakh was incurred in violation of the delegated financial powers. (Paragraph 1.3) Relief and Disaster Management Department : Fund allocated under National School Safety Programme amounting to ` 65.93 lakh were withdrawn but not accounted for in the Cash Book. (Paragraph 1.4) Rural Development and Panchayati Raj Department : MGNREGS fund of ` 79.00 lakh was diverted for construction works which were not permissible as per scheme guidelines. Due to preparation of estimates of works at rates higher than those admissible under MGNREGS, there was excess expenditure to the tune of ` 2.83 crore. (Paragraph 1.5 & 1.6) Social Welfare Department : A Braille machine procured in 2009 for ` 63.17 lakh had been lying unused for want of personnel to operate the machine.
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