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AUDIT REPORT 08-03-2018 LOCAL FUND AUDIT, PURI, ODISHA CATEGORY : Panchayat Samiti,General Audit Report No : 311564/AR/2017-2018-PURI PARA: 1 TITLE SHEET 1 Name of the Institution : Kanas P.S 2 Year of Accounts under Audit : 2016-2017 3 Name of the Local Authority during the year of A/Cs : 1.Sri Saroj Kumar Dutta,OAS-I 01.04.2016 to 30.06.2016 2. Sri Ajay Kumar Parida,OAS-I,I.C. 01.07.2016 to 03.08.2016 3. Smt. Prativa Sahu,OAS-I 04.08.2016 to 31.03.2017 Name of the Local Authority at the time of Audit : Smt. Prativa Sahu,OAS-I 4 Duration of Audit : 19-07-2017 To 25-09-2017 (Mandays Consumed :- 38) 5 Name of the Auditors : SATYA BHUSHAN MISHRA - Lead Auditor(19-07-2017 to 25-09-2017) SATYAPIRA PATTANAIK - Auditor(19-07-2017 to 25-09-2017) 6 Name of the Reviewing Officer : BIJAYA KUMAR BEHERA(Audit Superintendent) 7 Date of submission of report by Reviewing officer : 06-12-2017 8 Entry Conference Date : 19-07-2017 9 Exit Conference Date : 02-01-2018 10 Name of the District Audit Officer : Smt Arundhati Jena 11 Date of approval of report by District Audit Officer : 08-03-2018 1 / 132 AUDIT REPORT 08-03-2018 PARA: 2 PHYSICAL VERIFICATION Slno Items Date Of Physical Physical Balance Balance As per Cash Reference To The Discrepancies If Any verification Before / Book / Stock Page No Of Cash After Transaction Register Book / Stock Register 1 ServicePostage 19.07.17 Worth of Rs 886.00 Worth of Rs 886.00 Page-13 NIL Stamps 2 Measurement Books 19.07.17 12 nos 12 nos Page-8 NIL 3 Cash in hand - - - - - 4 Miscellaneous 19.07.17 12 nos 12 nos Page-6 NIL Receipt Books Comments Non-Production of physical cash balance and d cash book (consolidated) for verification on the first day of audit. Neither the cash balance as per cash book on first day of audit could not be ascertained due to non maintenance of d cash book in PRIASOFT, nor the physical verification of liquid cash in the Samiti chest was conducted on the first day of audit before transaction due to nonproduction of the same. The total cash balance as per consolidated cash book as on 31.03.2017 was Rs.33944. 00. In spite of POM issued to produce the physical balance of cash, though it was replied by the local authority that, the same was produced but till close of audit neither the d cash book was produced nor the physical balance of cash was produced by the local authority. As per Rule-37(2) of PSAP rules, the physical cash balance should be Rs.10000.00, where there was treasury within the HQR of the P.S. and the limit of Rs.20000.00 is admissible the Samiti is situated at a place with no treasury. The physical balance of MBs, MR books, Postage stamps was produced to audit for verification. It was construed that due to negligence and lack of sincerity in the part of the cashier and Computer Programmer neither the cash book was d nor the physical cash balance was produced to audit for verification. The Block Development officer has not verify the cash balance in the Samiti chest at the end of every month, in contravention to rule-36(e) of OPSAP rules-2002. In this context it was brought to the notice of the local authority that the d cash book may be maintained as soon as possible and compliance reported. 2 / 132 AUDIT REPORT 08-03-2018 PARA: 3 LIST OF VERIFIED RECORDS A : List Of Verified Records/Register Slno List Records/Register Rules Form No 1 Muster Roll Rule 85(1) Form No.-XXXVII & XXXVIII 2 Stock Register of MBs Rule 80(2) 3 Measurement Books Rule 80(1) Form No.-XXXIV 4 Stock Book Rule 71 Form No.-XXV-A 5 Log Book Rule 60 Form No.-XXII 6 Stationery Account Rule 56 Form No.-XXI 7 Stamp Account Rule 56 Form No.-XX 8 Register of Advances Rule 42(1) Form No.-XI 9 Cash Book Rule 32 Form No.-X 10 Guard file for paid vouchers Rule 20 11 Bill Register Rule 18(1) Form No.-V 12 Pass Books Rule 7 13 Misc. Receipts Rule 6(2) Form No.-II 14 P.L. Account Rule 5(2) B : List of Records/Registers not Produced to Audit Slno List Records/Register Rules Form No 1 Completion Certificate Rule 80(1) Form No.-XXXV 2 Register of Administrative Approval Rule 76(4) Form No.-XXXIII 3 Register of Estimates Rule 76(4) Form No.-XXXII 4 Execution of agreements with the Rule 74(3)(e) Form No.-XXXI other agencies other than Contractors. 5 Execution of agreements with the Rule 74(3)(d) Form No.-XXX Contractors 6 Issue of Tender orders Rule 74(3)(d) Form No.-XXIX 7 Forms to be used by the Rule 74(1) Form No.-XXVI to XVIII Contractors for submission of Tenders 8 Register of lapsed Deposits Rule 64 Form No.-XXIV 9 Revenue Register Rule 51 Form No.-XIX 10 Register of Immovable Properties Rule 49 Form No.-XVIII 11 Appropriation of Loan Register Rule 47(1) Form No.-XVII 12 Loan Register Rule 46 Form No.-XVI 13 Deposit Ledger Rule 44 Form No.-XIII, XIV 14 Register of Outstanding Advances Rule 43 Form No.-XII 15 Permanent Advance Cash Book Rule 21 Form No.-VIII 16 Allotment Register Rule 11 Form No.-IV 17 Grant-in-Aid Register Rule 5(4) Form No.-I C : List of Records/Registers not Maintained Slno List Records/Register Rules Form No D : List of Records/Registers not Required Slno List Records/Register Rules Form No 1 T.A. Bill for members of the Samiti Rule 88(b) Form No.-XXXIX 2 Register of Securities Rule 45(1) Form No.-XV 3 Indemnity bond executed Rule 31(3) Form No.-IX 4 Guard file for supply Rule 18(4) 5 Order Book Rule 18(3) Form No.-VI or VII 6 Receipts for taxes Rule 6(3) Form No.-III Comments Non Production of account records & registers. The following records & registers relating to the year 2015-16 as per the provisions made in Panchayat samiti act, 1959 & Odisha Panchayat samiti accounting procedure rules 2002 have not been maintained. The local authority was asked the reasons for non- maintenance of these prescribed records, in response to which it was replied that the records will be maintained 3 / 132 AUDIT REPORT 08-03-2018 henceforth. Non-maintenance of records results following consequences. Sl. No Name of the account register Corresponding Rules Remarks 1 Grant-in –Aid register Rule- 5(4),Form-I of PSAP Rules-2002 Non maintenance of G.I.A. register fails to fetch the actual position of utilisation of Govt. grant for a particular period and also lacks to provide information regarding unutilised grants at the end of a financial year. 2 Allotment Register Rule- 11,Form-IV of PSAP Rules-2002 Non maintenance of allotment register fails to provide information in respect of the actual position of funds received and utilised under a particular scheme. Again due to non maintenance of the same will result diversion /encroachment of grants from the purpose for which it was sanctioned. 3 Register of outstanding Rule-43 of PSAP Rules-2002 Non maintenance of Register of outstanding advances fails to provide the advances correct information in respect of the long outstanding advances against staff and others. In due course the amounts will be taken as unclassified advances and results misutilisation of Govt. money paid to somebody for a specified purpose. 4 Security deposit ledger Rule 44, Form XIII & form XIV of PSAP Non- preparation of SD ledger results failure in monitoring of SD refund and Rule- 2002 double payment to executants. 5 Investment register Rule 45, Form XV of PSAP Rule- 2002 Non- maintenance of investment ledger creates difficulty in watching the exact position of the investment, the date of maturity, interest accrued as well as correlating the investment amounts to the scheme funds. 6 Property register Rule 49, Form XVIII of PSAP Rule-2002 Non- maintenance of property register the exact position of the property of PS such as land, ponds and market complexes could not be ascertained. In due course the revenue generated from such properties will be nullified. 7 Asset register Rule-30A, Rule- 171(5)(i) of O.G.F.R. and As per instructions of Govt the asset created out of utilisation of a particular Govt instructions as per scheme guidelines scheme fund should be maintained distinctively. Without maintenance of the same the asset so generated could not be ascertained. 8 Bank Reconciliation statement G.O. No.5302/PR, 23.04.99, 690/F Due to non reconciliation of the difference between closing balance of all pass dt.21.01.2009, 13000/PR dt.25.07.14, books and also cash books the possibility of financial fraud could not be 14261/PR,20.5.13 avoided. Further the closing balance of the cash books will be understated or overstated resulting incorrect picture of cash management. Rule 33 of PSAP rules 9 Budget of the samiti Sec-24(1),(2) of PS act,1959 Non preparation of annual budget reduced accountability and smooth financial control at the level of the Panchayat Samiti. Budget is the statutory requirement and without the same the expenditure control mechanism will be failed.