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Download Full Report Paragraph Page Number Number Preface v CHAPTER 1 – INTRODUCTION About this report 1.1 1 Auditee profile 1.2 1 Authority for Audit 1.3 2 Organisational structure of the Office of the Principal 1.4 3 Accountant General (G&SSA), Karnataka, Bangalore Planning and conduct of Audit 1.5 3 Significant audit observations 1.6 3 Performance audits of 1.6.1 3 programmes/activities/Department Compliance audit 1.6.2 5 Lack of responsiveness of Government to Audit 1.7 8 Inspection reports outstanding 1.7.1 8 Response of Departments to the draft paragraphs 1.7.2 8 Follow-up on Audit Reports 1.7.3 9 Paragraphs to be discussed by the Public Accounts 1.7.4 9 Committee CHAPTER 2 - PERFORMANCE AUDIT SOCIAL WELFARE DEPARTMENT Functioning of the Karnataka Residential 2.1 15 Educational Institutions Society CHAPTER 3 - COMPLIANCE AUDIT AGRICULTURE DEPARTMENT Disbursement of Agricultural Subsidies 3.1 53 DEPARTMENT OF e-GOVERNANCE Audit of Human Resources Management System 3.2 68 LABOUR DEPARTMENT Functioning of Karnataka Building and Other 3.3 80 Construction Workers’ Welfare Board MEDICAL EDUCATION DEPARTMENT Pradhan Mantri Swasthya Suraksha Yojana 3.4 95 Unjustified payment of consultancy charges 3.5 100 i Report No.3 of the year 2014 Paragraph Page Number Number HOME DEPARTMENT A non-viable training school abandoned midway 3.6 101 Boats procured failed to enhance the disaster 3.7 103 management capability HOUSING DEPARTMENT Undue benefits to a lessee 3.8 104 Unalloted Ashraya houses in poor condition 3.9 106 PRIMARY AND SECONDARY EDUCATION DEPARTMENT Excess payment of salary to teaching staff in aided 3.10 108 institutions REVENUE DEPARTMENT Unauthorised use of Government land by a Golf 3.11 109 Club Unjustified concession in grant of land 3.12 111 Loss due to incorrect fixation of the price of land 3.13 112 Unjustified grant of land to an encroacher 3.14 113 SOCIAL WELFARE DEPARTMENT Irregular and excessive release of grants 3.15 115 URBAN DEVELOPMENT DEPARTMENT Unauthorised donations 3.16 116 Loss of revenue 3.17 117 Wasteful investment on a water supply scheme 3.18 119 Injudicious parking of surplus funds in a savings 3.19 120 bank account Collection of only a part of the fees payable by 3.20 121 consumers Loss due to non-acceptance of the second highest 3.21 122 offer Excess payment to contractors 3.22 123 Doubtful expenditure on raising and maintenance 3.23 124 of seedlings Poor planning in the restoration of a polluting lake 3.24 125 ii Table of contents LIST OF APPENDICES Appendix Page Details Number Number Year-wise breakup of Outstanding Inspection Reports 1.1 131 and Paragraphs in respect of Primary and Secondary Education Department as of December 2013 Details of Departmental Notes pending as of December 1.2 132 2013 (excluding General and Statistical Paragraphs) Paragraphs (excluding General and Statistical) yet to be 1.3 133 discussed by PAC as of December 2013 District-wise distribution of residential schools 2.1 134 District-wise distribution of residential colleges 2.2 135 Residential schools not having either bathrooms or 2.3 136 toilets or both Other infrastructural deficiencies noticed during the 2.4 137 joint inspection of residential schools and colleges Statement of the release of grants by the Departments to 2.5 139 the Society at the fag end of the year Statement showing the pendency of Utilisation 2.6 140 Certificates Details of tenders where financial bids had been 2.7 141 irregularly opened Eligibility criteria prescribed for hiring of PMCs 2.8 142 Details of schools where construction had not 2.9 143 commenced Unspent balance with DCs 2.10 144 Details of sanctioned posts, men in position and 2.11(a) 145 vacancies as of June 2013 Position of vacancies and excess staff 2.11(b) 145 Details of payment of incentives under Suvarna Bhoomi 3.1 146 Yojane -Agriculture during 2011-12 and 2012-13 Invalid data in the master table 3.2 147 Invalid KGID policy numbers 3.3 148 Erroneous deductions towards Employees’ General 3.4 149 Insurance Scheme Irregular payment of benefits 3.5 150 Details of excessive grants released to institutions 3.6 152 Details of donations made by BDA during 2009-12 3.7 153 Excess payment due to irregular price adjustment for 3.8 156 steel iii This Report of the Comptroller and Auditor General of India has been prepared for submission to the Governor under Article 151 of the Constitution for being laid before the State Legislature. The report covering the year 2012-13 contains significant results of the compliance and performance audit of the Departments/Autonomous Bodies of Departments of the Government of Karnataka under the General and Social Services including Department of Agriculture under Economic and Revenue Services. Audit had been conducted in conformity with the auditing standards issued by the Comptroller and Auditor General of India, based on the auditing standards of the International Organisation of Supreme Audit Institutions. Chapter-1 of this report covers auditee profile, authority for audit, planning and conducting of audit and responses of the department to the draft paragraphs. Highlights of audit observations included in this Report have also been brought out in this chapter. uuuuu v Chapter 1 1.1 About this Report This Report of the Comptroller and Auditor General of India (C&AG) relates to matters arising from performance audit of selected programmes and activities and compliance audit of Government Departments and autonomous bodies. Compliance audit refers to examination of the transactions relating to expenditure of the audited entities to ascertain whether the provisions of the Constitution of India, applicable laws, rules, regulations and various orders and instructions issued by competent authorities are being complied with. On the other hand, performance audit, besides conducting a compliance audit, also examines whether the objectives of the programme/activity/Department are achieved economically and efficiently. The primary purpose of the Report is to bring to the notice of the State Legislature, important results of audit. Auditing Standards require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions. The findings of audit are expected to enable the Executive to take corrective actions as also to frame policies and directives that will lead to improved financial management of the organisations, thus, contributing to better governance. This chapter, in addition to explaining the planning and extent of audit, provides a synopsis of the significant deficiencies and achievements in implementation of selected schemes, significant audit observations made during the compliance audit and follow-up on previous Audit Reports. Chapter-2 of this report contains findings arising out of performance audit of selected programmes/activities/Departments. Chapter-3 contains observations arising out of compliance audit in Government Departments and autonomous bodies. 1.2 Auditee Profile The Principal Accountant General (General & Social Sector Audit), Karnataka Bangalore conducts audit of the expenditure under the General and Social Services incurred by 66 Departments in the State at the Secretariat level and 11 autonomous bodies. The Departments are headed by Additional Chief Secretaries/Principal Secretaries/Secretaries, who are assisted by Directors/ Commissioners and subordinate officers under them. 1 Report No.3 of the year 2014 The summary of fiscal transactions during the year 2010-11 and 2011-12 is given in Table-1 below. Table-1: Summary of fiscal transactions Receipts Disbursements 2011-12 2012-13 2011-12 2012-13 Total Non Plan Plan Total Revenue receipts 69,806.27 78,176.22 Revenue 65,115.07 55,081.58 21,211.68 76,293.26 expenditure Tax revenue 46,475.96 53,753.56 General services 16,445.48 20,028.35 152.50 20,180.85 Non-tax revenue 4,086.86 3,966.10 Social services 25,171.73 17,110.39 13,309.41 30,419.80 Share of union taxes/ 11,075.04 12,647.14 Economic services 19,153.90 15,112.05 6,562.14 21,674.19 duties Grants-in-aid & 8,168.41 7,809.42 Grants-in-aid and 4,343.96 2,830.79 1,187.63 4,018.42 contributions from GOI contributions Section-B: Capital and others Misc. Capital receipts 89.19 33.04 Capital outlay 15,505.65 321.65 15,156.82 15,478.47 General services 625.49 27.09 562.38 589.47 Social services 2,695.19 6.64 2,909.35 2,915.99 Economic services 12,184.97 287.92 11,685.09 11,973.01 Recoveries of loans 240.40 157.61 Loans and 1,815.55 17.77 1,084.60 1,102.37 and advances advances disbursed Public debt receipts* 9,357.95 13,464.66 Repayment of 3,319.88 3,727.06 --- 3,727.06 public debt* Contingency Fund 12.53 0.51 Contingency 0.51 -- -- -- Fund Public Account 94,408.53 1,07,548.81 Public Account 86,216.03 -- -- 1,01,877.94 receipts disbursements Opening cash balance 7,667.31 9,609.49 Closing cash 9,609.49 -- -- 10,511.24 balance Total 1,81,582.18 2,08,990.34 Total 1,81,582.18 2,08,990.34 (Source: Finance accounts 2012-13) * Excluding net transactions under ways and means advances and overdrafts 1.3 Authority for Audit The authority for audit by the C&AG is derived from Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971. C&AG conducts audit of expenditure of the Departments of Government of Karnataka under Section 131 of the C&AG's (DPC) Act.
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