TABLE OF CONTENTS Reference to Paragraphs Page 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 Funds transferred directly to the State implementing 1.4 2 agencies Grants-in-aid from Government of India 1.5 3 Planning and conduct of audit 1.6 3 Significant audit observations and response of Government 1.7 4 to audit Recoveries at the instance of audit 1.8 4 Lack of responsiveness of Government to Audit 1.9 5 Follow-up on Audit Reports 1.10 5 Status of placement of Separate Audit Reports of 1.11 6 autonomous bodies in the State Assembly Year-wise details of reviews and paragraphs appeared in 1.12 7 Audit Report Chapter – 2 Performance Audit Public Health Engineering Department 2.1 9 Sewerage Schemes Urban Local Bodies Department 2.2 27 Working of Urban Local Bodies Education Department (Haryana School Shiksha Pariyojna Parishad) 2.3 46 Sarva Shiksha Abhiyan Rural Development Department 2.4 66 Indira Awaas Yojna Cooperation Department 2.5 80 Working of Cooperation Department Reference to Paragraphs Page Chapter – 3 Compliance Audit Civil Aviation Department Irregularities in the functioning of Civil Aviation 3.1 99 Department Civil Secretariat 3.2 102 Irregular expenditure Allotment of space to banks without execution of agreement 3.3 104 Development and Panchayat Department 3.4 105 Management of panchayat land Food and Supplies Department Loss due to distribution of foodgrains to ineligible ration 3.5 110 card holders Health and Medical Education Department 3.6 111 Non-recovery of bond money Home and Administration of Justice Department 3.7 112 Management of properties of Haryana Wakf Board Housing Department – Housing Board Haryana 3.8 114 Irregular allotment of open space Information, Public Relations and Cultural Affairs Department 3.9 115 Irregularities in the functioning of the Information, Public Relations and Cultural Affairs Department Irrigation Department 3.10 118 Unfruitful expenditure on construction of a minor Irregularities and deficiencies in construction of Dam across 3.11 120 river Kaushalya near Panchkula Public Health Engineering Department 3.12 121 Unfruitful expenditure on incomplete water supply scheme Public Works Department (Building and Roads) 3.13 123 Incomplete Works Public Works (Building and Roads), Irrigation and Public Health Engineering Departments 3.14 125 Miscellaneous Public Works Advances Revenue and Disaster Management Department 3.15 128 Delay in release of annuity payment to the beneficiaries Town and Country Planning Department (Haryana Urban Development Authority) 3.16 132 Construction of Buildings and their utilisation ii Reference to Paragraphs Page Status of utilisation of land acquired by HUDA 3.17 134 Transport Department 3.18 137 Avoidable payment of special road tax Urban Local Bodies Department 3.19 138 Non-functioning of Solid Waste Management Plant Loss due to non-recovery of outstanding lease money 3.20 139 Welfare of Scheduled Castes and Backward Classes Department 3.21 141 Irregularities in implementation of scheme for providing coaching to Scheduled castes/Backward Classes candidates iii APPENDICES Appendix Description Reference to Paragraph Page 1.1 Statement showing year-wise breakup of outstanding 1.9 149 Inspection Reports and Paragraphs 1.2 Detail of nature of irregularities pointed out through 1.9 150 outstanding Inspection Reports 1.3 List of Outstanding Paragraphs to be discussed in 1.10 151 PAC for the year 2008-09, 2009-10, 2010-11 and 2011-12 1.4 Details of Audit Report paragraphs for which replies 1.10 153 are waited for the years 2008-09, 2009-10, 2010-11 and 2011-12 (Civil Reports ) as on 31 July 2013 1.5 List of paragraphs where recovery has been pointed 1.10 154 out but no action has been taken by the Administrative Department 1.6 Details of outstanding recommendations of Public 1.10 155 Accounts Committee on which the Government was yet to take final decision 1.7 Statement showing the details of rendering of 1.11 156 account to CAG and submission of Audit Report to State Legislature by the autonomous bodies 2.1 Statement showing the details of splitting of works 2.1.7.3 158 2.2 List of Municipal Corporations, Councils and 2.2.4 159 Committees selected for Performance Audit 2.3 Statement showing details of diversion of grants 2.2.7.4 160 2.4 Details of loss due to non-recovery of regularization 2.2.8.1 161 charges 2.5 Statement showing the details of non-recovery of 2.2.8.4 162 cess 2.6 Details of Outstanding Annual Renewal Fee of 2.2.8.6 163 Cellular Mobile Telephone Towers installed in Municipal Area 2.7 Details of Outstanding House Tax including Fire Tax 2.2.8.6 164 2.8 Details of Outstanding Rent collected/levied by 2.2.8.6 165 municipalities 2.9 Scheme-wise grants received and expenditure 2.2.9 166 incurred during 2008-13 by selected municipalities 2.10 Details of Outstanding Paras of Director, Local Audit 2.2.11.3 168 Department Haryana iv Appendix Description Reference to Paragraph Page 2.11 Details of payment on muster rolls without obtaining 2.3.7.4 170 signatures/thumb impressions 2.12 Details of enrolment of SC students and girl students 2.3.8.1 171 2.13 Details of delay in lifting of free text books 2.3.8.6 172 2.14 Details of targets and achievements of civil works 2.3.9 173 executed under SSA 2.15 District-wise position of shortage of teachers in 2.3.10.1 174 primary and upper primary schools 2.16 Statement showing the details of amounts 2.4.6.4 175 recoverable from ineligible families 2.17 Details of beneficiaries who received second 2.4.6.5 176 installment but not completed their houses 2.18 Statement showing the details of beneficiaries who 2.4.6.6 177 availed assistance for rural housing from two schemes 2.19 Details of dwelling units which utilized for other 2.4.6.7 178 purposes 2.20 Details of targets and achievements in respect of test- 2.4.8.1 179 checked districts 2.21 Statement showing the detail of target and 2.5.8.3 180 achievement of inspections 2.22 Statement showing the detail of 21 major schemes 2.5.9 181 operated by the Co-operation Department during 2008-13 v vi OVERVIEW This Report contains five Performance Audits on Sewerage Schemes, Working of Urban Local Bodies, Sarva Shiksha Abhiyan, Indira Awaas Yojna and Working of Cooperation Department and 21 paragraphs relating to excess, irregular, unfruitful expenditure, diversion of funds and avoidable payment etc; involving ` 1953.20 crore. Some major findings are mentioned below: PERFORMANCE AUDIT A performance audit of “Sewerage Schemes” was conducted. Some major findings are given below: Only 598.34 MLD (50 per cent) out of 1188.53 MLD sewage generated in the State was treated. (Paragraph 2.1.6.1) There was an expenditure of ` 323.96 crore on 158 incomplete Urban Sewerage Schemes as of March 2013. Out of these, 41 schemes were awaiting completion for the last three to eight years. (Paragraph 2.1.8) Sewage Treatment Plant (STP) for Bawal town constructed at a cost of ` 5.48 crore remained non-functional and sewerage scheme for Kosli town in Rewari district remained abandoned since December 2009 after spending ` 9.15 crore. (Paragraph 2.1.10.1) STP of Ganaur town though shown completed on 30 September 2010 was running without filter media, as a result of which waste water was being discharged without treatment. (Paragraph 2.1.10.3) As against generation of 200 MLD wastewater in Faridabad, only 94 MLD of wastewater was treated while the capacity of treating was 160 MLD. (Paragraph 2.1.11.2) Functioning of 18 STPs constructed under Yamuna Action Plan was not up to the mark as 229 samples out of 232 samples of these STPs were found to be below norms. (Paragraph 2.1.11.5) Report of Social, General and Economic Sectors (Non-PSUs) for the year ended 31 March 2013 A performance audit on “Working of Urban Local Bodies” was conducted. Some major findings are given below: Municipalities were not preparing annual accounts in the shape of balance sheet since their inception, as a result true and fair view of the state of affairs could not be ascertained. (Paragraph 2.2.7.1) Ten municipalities had not recovered regularization charges amounting to ` 170.40 crore since December 2004 from house owners of regularized colonies. (Paragraph 2.2.8.1) Thirteen municipalities had not availed of the exemption from Service Tax amounting to ` 1.95 crore during July 2012 to March 2013 on the manpower outsourced for sanitation purpose. (Paragraph 2.2.8.3) An amount of ` 101.82 crore were outstanding on account of installation fee (` 0.73 crore), renewal fee of communication towers (` 1.58 crore), House Tax including fire tax (` 95.82 crore) and rent of municipal shops (` 3.69 crore). (Paragraph 2.2.8.6) Temporary advances amounting to ` 274.48 crore were pending against Government Departments, officers/officials, contractors, etc. in six municipalities as on 31 March 2013. (Paragraph 2.2.8.6) An expenditure of ` two crore incurred on construction of drains and laying cement concrete/interlocking tiles in streets of Ratia town had gone waste due to lack of planning and co-ordination. Municipal Corporation, Hisar had spent ` 5.06 crore on development works in unauthorised colonies. (Paragraph 2.2.9.4) A performance audit of “Sarva Shiksha Abhiyan” was conducted.