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Report of the Comptroller and Auditor General of India General and Social Sector Government of Tamil Nadu Report No. 1 of 2020

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Report of the Comptroller and Auditor General of India General and Social Sector Government of Tamil Nadu Report No. 1 of 2020 Report of the Comptroller and Auditor General of India on General and Social Sector for the year ended March 2018 Government of Tamil Nadu Report No. 1 of 2020 TABLE OF CONTENTS Paragraph Page No. Preface vii CHAPTER I - INTRODUCTION About this Report 1.1 1 Profile of Audited Entities 1.2 1 Authority for Audit 1.3 2 Planning and conduct of audit 1.4 3 Response to Audit 1.5 3 Audit observations on Performance Audit 1.6 4 Audit observations on Compliance Audit 1.7 7 Recommendations 1.8 9 Follow-up on Audit Reports 1.9 9 CHAPTER II - PERFORMANCE AUDITS HEALTH & FAMILY WELFARE, HIGHWAYS & MINOR PORTS AND HOME, PROHIBITION AND EXCISE DEPARTMENTS Road Safety System in Tamil Nadu 2.1 11 HEALTH AND FAMILY WELFARE DEPARTMENT Performance Audit on Provision of Health Care 2.2 55 Services and Medical Education through Indian Systems of Medicine MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT Performance Audit on Computerisation of functions 2.3 84 in Urban Local Bodies MUNICIPAL ADMINISTRATION & WATER SUPPLY AND HOUSING & URBAN DEVELOPMENT DEPARTMENTS Observance of Development Regulations for 2.4 111 planning permission and building licence in Chennai Metropolitan Area i Audit Report (General and Social Sector), Tamil Nadu for the year ended March 2018 Paragraph Page No. CHAPTER III - COMPLIANCE AUDIT MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT Implementation of ‘Hogenakkal Water Supply and 3.1 139 Fluorosis Mitigation Project’ Avoidable/Unfruitful expenditure 3.2 HEALTH AND FAMILY WELFARE DEPARTMENT Irregular procurement and idling of medical 3.2.1 151 equipment HIGHER EDUCATION DEPARTMENT Unfruitful expenditure due to poor planning 3.2.2 155 HEALTH AND FAMILY WELFARE DEPARTMENT Irregular purchase of medicines leading to avoidable 3.2.3 157 expenditure MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT TAMIL NADU WATER SUPPLY AND DRAINAGE BOARD Avoidable expenditure on laying of pipes without 3.2.4 159 prior permission from National Highways Authority of India HEALTH & FAMILY WELFARE AND PUBLIC WORKS DEPARTMENTS Unfruitful expenditure on construction of cafeterias 3.2.5 161 and common rooms SOCIAL WELFARE AND NUTRITIOUS MEAL PROGRAMME DEPARTMENT Avoidable expenditure and blocking of funds due to 3.2.6 163 non-completion of hostel project for working women SCHOOL EDUCATION DEPARTMENT Irregularities in annual maintenance contract 3.2.7 165 ii Table of Contents Paragraph Page No. Regularity issues and others 3.3 DEPARTMENT OF SPECIAL PROGRAMME IMPLEMENTATION AND REVENUE & DISASTER MANAGEMENT DEPARTMENT Scheme for free distribution of electric fans, mixies 3.3.1 168 and grinders to women beneficiaries in the State LABOUR AND EMPLOYMENT DEPARTMENT Diversion of Manual Workers General Welfare Fund 3.3.2 174 REVENUE AND DISASTER MANAGEMENT DEPARTMENT Non-realisation of revenue due to non-revision of 3.3.3 176 lease rent MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT TIRUTTANI MUNICIPALITY Under-utilisation of Bio-Methanation-cum-Power 3.3.4 178 Generation Plant COIMBATORE CITY MUNICIPAL CORPORATION Non-utilisation of artificial hockey turf 3.3.5 180 Loss of revenue 3.4 MUNICIPAL ADMINISTRATION AND WATER SUPPLY DEPARTMENT COIMBATORE CITY MUNICIPAL CORPORATION, GREATER CHENNAI CORPORATION AND PALANI MUNICIPALITY Incorrect assessment of property tax 3.4.1 182 iii Audit Report (General and Social Sector), Tamil Nadu for the year ended March 2018 APPENDICES Appendix Details Page No. No. 1.1 Department-wise details of Outstanding Inspection 187 Reports and Paragraphs 2.1 District-wise offices visited 188 2.2 Sample Selection Process 189 2.3 Details of road safety measures as per IRC provisions 190 lacking in test-checked roads/reaches of Chennai District 2.4 Details of inadequate equipment in the trauma care 191 centres of the test-checked hospitals in sampled districts 2.5 Details of inadequate staff in the Trauma Care Centres 194 of the test checked hospitals in sampled districts 2.6 Details of non-implementation of road safety measures 195 recommended by District Road Safety Committee/ noticed during joint physical verification 2.7 Sampled ISM Institutions 197 2.8 Non-provision of in-patient facilities in test checked 198 ISM wings 2.9 Details of equipment supplied/not-supplied/non- 199 functioning in Siddha, Ayurveda and Unani Wings 2.10 Equipment supplied to non-functioning ISM Units in 202 The Nilgiris District 2.11 Shortage of manpower in ISM hospitals and ISM Wings 203 (AMO/MO) 2.12 Non-functioning of ISM Wings in test checked districts 206 due to non-posting of doctors 2.13 Shortfall in drawing samples 207 2.14 Leakage of revenue on account of non-receipt of 208 Profession Tax from traders 2.15 Pending requests received during September 2015 to 209 January 2018 in the test-checked municipalities 2.16 Delay in delivery of municipal services 210 2.17 Arrears of Profession Tax in the test-checked 211 municipalities iv Table of Contents Appendix Details Page No. No. 2.18 Non-tax arrears in the test checked municipalities 212 2.19 Statement showing the workflow of planning permission 213 2.20 Property Tax assessment details 214 2.21 Violations in planning permissions issued by local 215 bodies 2.22 Collection of and disbursement of Development 216 Charges and Open Space Reservation Charges in Chennai Metropolitan Area during 2013-18 2.23 Collection of OSR charges in lieu of provision of OSR 217 land 2.24 Non-transfer of gift deeds of OSR land to local bodies in 218 test-checked planning permissions 2.25 Details of Floor Space Index and Premium Floor Space 219 Index for various types of buildings 2.26 Incorrect assessment of Floor Space Index 220 2.27 Inadequate parking facilities 221 2.28 Delay in conduct of site visit and issue of building 222 licences by Greater Chennai Corporation 2.29 Environment Clearance obtained after issue of Planning 223 Permission 2.30 Construction commenced before issue of Planning 224 Permission 3.1 Selected Implementing Units 225 3.2 Supply of Hogenakkal water to local bodies served by 226 pumping mains and gravity mains 3.3 Statement showing the excess payment due to adoption 228 of new rates for additional quantities 3.4 Statement showing the avoidable expenditure due to 229 provision of separate item for jointing DI pipes 3.5 Details of blood samples tested using existing auto/ 230 semi auto analysers in two sampled hospitals (Illustrative) v Audit Report (General and Social Sector), Tamil Nadu for the year ended March 2018 Appendix Details Page No. No. 3.6 Avoidable extra expenditure on purchase of Rub N Run 231 oil and Liver Tonic 3.7 Details of sampled districts and taluks 232 3.8 Details of avoidable extra expenditure on Pre-Delivery 233 Inspection (PDI) charges 3.9 Details of loss due to storage of FMGs in uninsured 234 godowns 3.10 Details of damaged and faulty FMGs in godowns 235 3.11 Short levy of Property Tax by Coimbatore City 236 Municipal Corporation 3.12 Short levy of Property Tax by Palani Municipality for 237 the period 2014-18 Glossary of abbreviations 238 vi PREFACE This Report for the year ended March 2018 has been prepared for submission to the Governor of Tamil Nadu under Article 151 of the Constitution of India. The Report contains significant results of the Performance Audit and Compliance Audit of the departments of the Government of Tamil Nadu under the General and Social Services including departments of Health & Family Welfare, Home, Prohibition & Excise, Municipal Administration & Water Supply, Higher Education, Social Welfare & Nutritious Meal Programme, School Education, Special Programme Implementation, Revenue & Disaster Management and Labour & Employment. The instances mentioned in this Report are those, which came to notice in the course of test audit for the period 2017-18 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 2017-18 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 vii CHAPTER I INTRODUCTION CHAPTER I INTRODUCTION 1.1 About this Report This Report of the Comptroller and Auditor General of India (CAG) on Government of Tamil Nadu (GoTN) relates to matters arising from Performance Audit of selected programmes and activities and Compliance Audit of Government departments, Autonomous Bodies and Local Bodies. The primary purpose of the Report is to bring important results of audit to the notice of the State Legislature. Auditing standards issued by the CAG require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions. The audit findings are expected to enable the Executive to take corrective actions as also to frame appropriate policies and directives that will lead to improved financial management of the organisations, thus, contributing to better governance. Compliance Audit refers to examination of transactions relating to expenditure, receipts, assets and liabilities of audited entities to ascertain whether provisions of the Constitution of India, applicable laws, rules, regulations and various orders and instructions issued by the competent authorities are being complied with. Performance Audit examines the extent to which objectives of an organisation, programme or scheme are achieved economically, efficiently and effectively. This Chapter provides profile of audited entities, planning and extent of audit and synopsis of audit observations. Chapter II of this Report deals with findings of Performance Audit and Chapter III deals with findings of Compliance Audit of various departments, Autonomous Bodies and Local Bodies. 1.2 Profile of Audited Entities There are 37 departments in the State at the Secretariat level, headed by Additional Chief Secretaries/Principal Secretaries/Secretaries who are assisted by Commissioners/Directors and Subordinate Officers.
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