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Social General and Economic Sectors Non-PSU Government Of Report of the Comptroller and Auditor General of India on Social, General and Economic Sectors (Non-Public Sector Undertakings) for the year ended 31 March 2015 Government of Haryana Report No. 3 of the year 2016 TABLE OF CONTENTS Reference to Page/ Paragraphs Remarks Preface vii Overview ix Chapter – 1 Introduction Budget profile 1.1 1 Application of resources of the State Government 1.2 1 Persistent savings 1.3 2 Grants-in-aid from Government of India 1.4 2 Planning and conduct of audit 1.5 3 Significant audit observations and response of Government 1.6 3 to audit Recoveries at the instance of audit 1.7 4 Lack of responsiveness of Government to Audit 1.8 4 Follow-up on Audit Reports 1.9 5 Status of placement of Separate Audit Reports of 1.10 5 autonomous bodies in the State Assembly Year-wise details of performance audits and paragraphs 1.11 6 appeared in Audit Report Chapter 2 Performance Audit Public Health Engineering Department 2.1 7 Rural and Urban Water Supply Schemes Elementary Education Department 2.2 30 National Programme of Mid Day Meals in Schools Higher Education, Medical Education and Research and Technical Education Departments 2.3 49 Framework for setting up of Private Colleges and Private Universities Reference to Page/ Paragraphs Remarks Chapter 3 Compliance Audit Animal Husbandry and Dairying Department 3.1 69 Veterinary infrastructure and its utilisation Archaeology and Museums Department Delay in construction of museum and office building and 3.2 74 non-achievement of the objective of the department Education Department 3.3 76 Non-recovery of stipend amount from ineligible students Environment Department (Haryana State Pollution Control Board) 3.4 78 Avoidable payment of Income Tax Food and Supplies Department Avoidable payment of interest due to delay in realization of 3.5 79 bills from Food corporation of India Compliance of terms and conditions of milling agreements 3.6 81 for Custom Milled Rice Forest Department Excess payment to the land owner and non-deduction of 3.7 86 Income Tax Unfruitful expenditure on Plant Tissue Culture Unit 3.8 87 Health Department (Red Cross Societies) 3.9 89 Utilization of funds by Red Cross Societies Higher and Technical Education Departments (Guru Jambeshwar University, Hisar and Kurukshetra 3.10 93 University, Kurukshetra) Avoidable payment of Service Tax Home Department 3.11 94 Crime and Criminal Tracking Network and Systems Non-implementation of Outdoor Surveillance System 3.12 100 Non-procurement of jammers for jails 3.13 102 Horticulture Department Unfruitful expenditure on incomplete Hi-Tech Vegetable 3.14 104 Seedling Production Unit Industrial Training and Vocational Education Department 3.15 106 Blockade of funds due to injudicious site selection ii Reference to Page/ Paragraphs Remarks Irrigation Department 3.16 107 Unfruitful expenditure on incomplete canal Follow up Audit on Performance Audit on ‘Working of 3.17 109 Irrigation Department’ Irrigation and Public Works (Buildings and Roads) Departments 3.18 113 Avoidable expenditure on acquisition of land Medical Education and Research Department 3.19 115 Non-deposit of rent of shops in Government Account Public Health Engineering Department 3.20 115 Blockade of funds on unutilized pipes Injudicious expenditure on tertiary treatment water scheme 3.21 117 Public Works Department (Buildings and Roads) 3.22 118 Extra expenditure on construction of road Rural Development Department 3.23 120 Utilization of funds under Backward Region Grant Fund Social Audit provided under ‘Mahatma Gandhi National 3.24 125 Rural Employment Guarantee’-Audit of Scheme Rules, 2011 Sports and Youth Affairs Department 3.25 131 Utilisation of sports infrastructure Technical Education Department 3.26 137 Loss due to injudicious allotment of work Women and Child Development Department 3.27 138 Procurement in Women and Child Development Department iii APPENDICES Appendix Description Reference to Paragraph Page 1.1 Detail of nature of irregularities pointed out through 1.8 143 outstanding Inspection Reports 1.2 List of Outstanding Paragraphs to be discussed in 1.9 144 PAC for the year 2010-11, 2011-12, 2012-13 and 2013-14 as on 31 December 2015 1.3 Details of Audit Report paragraphs for which 1.9 146 action taken notes (ATNs ) were awaited for the years 2010-11, 2011-12, 2012-13 and 2013-14 as on 31 May 2015 1.4 List of paragraphs where recovery has been pointed 1.9 148 out but no action has been taken by the Administrative Departments 1.5 Details of outstanding recommendations of Public 1.9 149 Accounts Committee on which the Government is yet to take final decision as on 31 May 2015 1.6 Statement showing the details of rendering of 1.10 150 account to CAG and submission of Audit Report to State Legislature by the autonomous bodies as on 31 August 2015 2.1 Details of villages having deficient water supply 2.1.6.3 153 2.2 Details of expenditure incurred in excess of 2.1.7.1 154 sanctioned estimates 2.3 Details of cases in which schemes were taken up 2.1.8.3 155 without prior clearances from concerned authorities and clear title of land 2.4 Details of cases of delay in execution of works due to 2.1.8.5 156 inaction of the departmental officers 2.5 Details of diversion of funds provided for 2.1.8.8 (a) 158 sustainability of water resources 2.6 Number of Government Schools and Government 2.2.6 159 Aided Schools 2.7 Details of foodgrains allocated and lifted in the 2.2.8.2 160 State 2.8 Foodgrains requirement and actual receipt in 2.2.8.2 161 selected schools 2.9 Details of inspections carried out by the Department 2.2.10.1 162 2.10 Details of Private colleges in the State 2.3.1 163 2.11 Statement showing the test-checked private colleges 2.3.4 164 iv Appendix Description Reference to Paragraph Page 2.12 List of colleges affiliated without compliance of 2.3.6.2 165 deficiencies 3.1 Detail of paddy given, CMR due, CMR delivered 3.6.1 166 and balance rice not received from millers in FSD 3.2 Details of audit observations where there was 3.17.3.1 168 insignificant/no progress 3.3 Details of audit observations where there was 3.17.3.2 169 substantial implementation/progress 3.4 Details of audit observations where full progress in 3.17.3.3 170 all intended areas 3.5 Detail of avoidable payment made as compensation 3.18 171 for land acquired 3.6 List of selected Gram Panchayats for test-check 3.24 172 v PREFACE This Report for the year ended 31 March 2015 has been prepared for submission to the Governor of the State of Haryana under Article 151 of the Constitution of India. The Report contains significant results of the performance audit and compliance audit of the departments/autonomous bodies of Government of Haryana under the Social, General and Economic Sectors (Non-Public Sector Undertakings). The instances mentioned in this Report are those, which came to notice in the course of test audit during the year 2014-15 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports; instances relating to the period subsequent to 2014-15 have also been included, wherever necessary. The audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. vii Overview OVERVIEW This Report contains three Performance Audits i.e. (i) Rural and Urban Water Supply Schemes; (ii) National Programme of Mid Day Meals in Schools; and (iii) Framework for setting up of Private Colleges and Private Universities and 27 paragraphs relating to excess, irregular, unfruitful expenditure, avoidable payment, loss to State, shortcomings in implementation of rules and programmes, etc; involving ` 528.64 crore. Some major findings are mentioned below: The total expenditure of the State increased by 62 per cent from ` 33,063 crore to ` 53,677 crore during 2010-15, the revenue expenditure of the State Government increased by 74 per cent from ` 28,310 crore in 2010-11 to ` 49,118 crore in 2014-15 while capital expenditure decreased by eight per cent from ` 4,031 crore to ` 3,716 crore during the period 2010-15. PERFORMANCE AUDIT A performance audit of "Rural and Urban Water Supply Schemes" was conducted. Some major findings are given below: A five year comprehensive water security plan was not prepared. Only annual plans were prepared on demand basis. Further, 455 habitations were water deficient and no plan was prepared to provide potable water in 73 towns. (Paragraphs 2.1.6.1, 2.1.6.3 and 2.1.6.4) Out of 5003 rural water supply schemes, only 3145 schemes were completed (63 per cent) leaving 1858 schemes incomplete as of March 2015. Taking up of schemes without ensuring availability of raw water, obtaining prior clearances from concerned authorities, clear title of land, selection of unsuitable sites for water works, inaction of the departmental officers against contractors, execution of works without ensuring the availability of pipes resulted in non-completion of 25 schemes and unfruitful/wasteful expenditure of ` 30.46 crore. (Paragraphs 2.1.8.1 to 2.1.8.5 and 2.1.8.7) The component of sustainability of water resources under National Rural Drinking Water Programme was not implemented properly as funds of ` 17.47 crore meant for this component were spent on water supply schemes. Further, no arrangement was made for maintenance of assets created for water sustainability.
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