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Haryana Report No 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 2016 Government of Haryana Report No. 1 of the year 2017 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 2016 Government of Haryana Report No.1 of the year 2017 TABLE OF CONTENTS Reference to Paragraphs Page Preface v Overview Vii 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 4 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 Agriculture Department 2.1 7 Working of Haryana State Agriculture Marketing Board Medical Education and Research Department Working of Pandit Bhagwat Dayal Sharma Post Graduate 2.2 25 Institute of Medical Sciences, Rohtak School Education Department 2.3 40 Right of Children to Free and Compulsory Education Act 2009 Chapter 3 Compliance Audit Environment Department (Haryana State Pollution Control Board) 3.1 53 Environment Clearance and Post Clearance Monitoring Food and Drug Administration Department 3.2 58 Implementation of Food Safety and Standards Act, 2006 Reference to Paragraphs Page Home and Administration of Justice Department Non-implementation of project for Upgradation of Police 3.3 64 Control Room Home and Administration of Justice, Revenue and Disaster Management Departments 3.4 66 Avoidable payment of interest due to delay in deposit of enhanced land compensation Industrial Training Department Upgradation of Government Industrial Training Institutes 3.5 68 through Public Private Partnership Irrigation and Water Resources Department 3.6 75 Incomplete Irrigation Scheme Industries and Commerce Department 3.7 76 Investment Promotional Schemes Labour Department 3.8 81 Delay in construction of Workers' Facilitation Centres Medical Education and Research Department 3.9 83 Avoidable payment of Service Tax Extra expenditure due to injudicious allotment of works 3.10 84 Improper evaluation of bids 3.11 85 Public Works Department (Buildings & Roads) 3.12 86 Implementation of Pradhan Mantri Gram Sadak Yojna Excess payment to agencies 3.13 91 Unfruitful expenditure on incomplete work 3. 14 92 Public Health Engineering Department 3.15 94 Incomplete Sewerage scheme Unfruitful expenditure 3.16 95 Science and Technology Department 3.17 96 Non deposit of interest amount in Government Account Town and Country Planning Department (Haryana Urban Development Authority) 3.18 98 Non-recovery of unearned increase in value of land and annual ground rent Women and Child Development Department 3.19 100 Homes/Centres for Destitute Women and Children Beti Bachao Beti Padhao Scheme 3.20 105 ii APPENDICES Appendix Description Reference to Paragraph Page 1.1 Details of nature of irregularities pointed out through 1.8 113 outstanding Inspection Reports 1.2 List of Outstanding Paragraphs to be discussed in PAC 1.9 114 for the years 2012-13, 2013-14 and 2014-15 as on 31 October 2016 1.3 Details of Audit Report paragraphs for which action 1.9 116 taken notes (ATNs ) were awaited for the years 2012-13, 2013-14 and 2014-15 as on 31 October 2016 1.4 List of paragraphs where recovery has been pointed 1.9 117 out but no action has been taken by the Administrative Departments 1.5 Details of outstanding recommendations of Public 1.9 118 Accounts Committee on which the Government is yet to take final decision as on 31 August 2016 1.6 Statement showing the details of rendering of accounts 1.10 119 to CAG and submission of Audit Report to State Legislature by the autonomous bodies 2.1 Production and arrival of produce of main crops in the 2.1.7.2 122 mandis 2.2 Details of loss of interest due to non-investment of 2.1.7.4 123 surplus funds in fixed deposits during 2011-16 2.3 Details of godown rent not recovered 2.1.7.5 124 2.4 Details of non-recovery of water and sewerage charges 2.1.7.5 125 for the period 2011-16 2.5 Details of non-recovery of balance amount of 2.1.7.5 126 shop/booth plots 2.6 Details of non-recovery of enhanced land 2.1.7.5 127 compensation 2.7 Details of Infrastructural facilities in mandis not 2.1.8.1 128 provided 2.8 Details of Business activities not related to agriculture 2.1.8.2 130 produce 2.9 Details of irregular construction of basement in 2.1.8.4 133 shops/booths and upper storey on booths 2.10 Details of encroachment of mandi land 2.1.8.6 134 2.11 Details of staff position of the Board 2.1.11.1 135 2.12 Details showing frequency of conducting of internal 2.1.12 136 audit iii Appendix Description Reference to Paragraph Page 2.13 Details of Surprise checks by enforcement staff during 2.1.12 137 2011-16 2.14 Details showing financial loss due to collection of 2.2.7.4 138 hostel fee at old rates 2.15 Details showing shortage of machinery and equipment 2.2.8.1 139 in different departments 2.16 Details of machinery and equipment required, Appendix 142 available and shortage in Cardiac Surgery Department 2.15 2.17 Details of machinery and equipment required but not Appendix 143 purchased in Neurosurgery Department 2.15 2.18 Details of machinery and equipment not in working Appendix 144 condition in Urology Department 2.15 2.19 Statement showing the existence of effluent beyond 2.2.8.3 (iii) 145 permissible limit 2.20 Details showing number of doctors, range of h-index 2.2.10.1 146 and Cumulative h-index of different departments 2.21 Details of sanctioned strength and actual strength in 2.2.11.1 147 various cadres 2.22 Details of delays in release of grants by GOI and the 2.3.7.2 148 State Government to the Parishad 2.23 Details of children attained the age of enrollment, 2.3.8.1 149 children enrolled and non- enrollment of children in three districts 3.1 Details of pass percentage of the students 3.5.3.4 150 3.2 Details of excess amount paid to the service provider 3.11 153 3.3 Statement showing the details of incomplete works 3.12.3.1 155 shown complete by the Department 3.4 Statement showing the excess payment made to 3.13 156 agencies iv PREFACE This Report for the year ended 31 March 2016 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 and autonomous bodies of the 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 2015-16 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 2015-16 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. v Overview OVERVIEW This Report contains three performance audits viz. (i) Working of Haryana State Agricultural Marketing Board;(ii) Working of Pandit Bhagwat Dayal Sharma Post Graduate Institute of Medical Sciences, Rohtak and (iii) Right of Children to Free and Compulsory Education Act, 2009 and 20 paragraphs relating to excess, unfruitful expenditure, avoidable payment and shortcomings in implementation of rules and programmes involving ` 747.16 crore. Some major findings are summarized below: The total expenditure of the State Government increased by 109 per cent from ` 38,014 crore to ` 79,394 crore during 2011-16. The revenue expenditure increased by 85 per cent from ` 32,015 crore in 2011-12 to ` 59,236 crore in 2015-16 while the capital expenditure increased by 29 per cent from ` 5,372 crore to ` 6,908 crore during the period 2011-16. PERFORMANCE AUDIT 1. Working of Haryana State Agricultural Marketing Board The Haryana State Agricultural Marketing Board was set up in August 1969 with the main objective of providing facilities for better regulation of purchase, sale, storage and processing of agricultural produce. A performance audit of the functioning of the Board for the period 2011-16 brought out lack of long term planning and deficiencies in both financial management and execution of projects and schemes which undermined the overall objectives of the Board. Some of the significant findings are as follows: Surplus funds were kept in savings bank accounts instead of in fixed deposits resulting in loss of interest of ` 6 crore. An amount of ` 126.44 crore was outstanding on account of interest on loan, godown rent, water and sewerage charges, cost of shop/booth sites/land and enhanced land compensation. (Paragraphs 2.1.7.4 and 2.1.7.5) Basic infrastructure facilities such as boundary walls, weighbridges at entry point, check-post, canteen and dormitory were not provided in 38 Market Committees.
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