REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA FOR THE YEAR ENDED 31 MARCH 2009 (CIVIL) GOVERNMENT OF MAHARASHTRA REPORT OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA FOR THE YEAR ENDED 31 MARCH 2009 (CIVIL) GOVERNMENT OF MAHARASHTRA www.cag.gov.in TABLE OF CONTENTS Reference Paragraph Page No. Preface CHAPTER I INTRODUCTION About this Report 1.1 1 Auditee profile 1.2 1 Authority for audit 1.3 2 Planning and conduct of audit 1.4 2 Organisational structure of the offices of the Principal 1.5 3 Accountant General (Audit)-I, Mumbai and the Accountant General (Audit)-II, Nagpur Significant audit observations 1.6 4 Budget and expenditure controls 1. 7 7 Response of the departments to draft paragraphs 1.8 8 CHAPTER II PERFORMANCE REVIEWS Public Health Department National Rural Health Mission 2.1 9 School Education and Sports Department Development of Sports in Maharashtra 2.2 34 Rural Development and Panchayat Raj Department Working of District Rural Development Agencies 2.3 60 (DRDAs)in Maharashtra Rural Development and Water Conservation Department 2.4 80 Minor Irrigation (Local Sector) Projects Home Department Computerisation in Police Department 2.5 94 Audit Report (Civil) for the year ended 31 March 2009 CHAPTER III Reference AUDIT OF TRANSACTIONS Paragraph Page No. Fraudulent drawal/misappropriation/ 3.1 embezzlement/losses Public Health Department. Fraudulent payment of medical reimbursement claims 3.1.1 109 Excess payment/overpayment/wasteful/infructuous 3.2 expenditure General Administration Department Overpayment of incentive allowance 3.2.1 110 Planning Department Inadmissible expenditure 3.2.2 111 Urban Development Department Excess payment to Municipal Councils 3.2.3 112 Water Resources Department Undue financial aid to the contractor 3.2.4 113 Extra contractual benefit 3.2.5 114 Payment to contractor beyond contractual obligation 3.2.6 116 Excess payment 3.2.7 117 Extra expenditure 3.2.8 118 Payment beyond contractual obligation 3.2.9 119 Violation of contractual obligations, undue favour to 3.3 contractors and avoidable expenditure Housing Department Undue benefit to a trust 3.3.1 120 Public Health Department Avoidable expenditure 3.3.2 122 Public Works Department Loss to the Government and undue benefit to a developer 3.3.3 123 Undue benefit to the private developer 3.3.4 124 Water Resources Department Irregular payment of mobilisation advance 3.3.5 126 Avoidable extra expenditure 3.3.6 126 iv Table of contents Reference Paragraph Page No. Idle investment/idle establishment/blocking of funds, delays in commissioning of equipments and 3.4 diversion/misutilisation of funds Higher and Technical Education Department Blockage of funds 3.4.1 128 Home Department Idling of kitchen equipment 3.4.2 129 Unfruitful expenditure on patrolling boats 3.4.3 130 Housing Department Idle investment on construction of office units 3.4.4 131 Law and Judiciary Department Unfruitful expenditure on franking machines 3.4.5 132 Rural Development and Water Conservation Department Idle investment on construction of minor irrigation tanks 3.4.6 133 Public Works Department Idle investment on incomplete bridge 3.4.7 134 Water Resources Department Idle investment on minor irrigation tank 3.4.8 136 Water Supply and Sanitation Department Unfruitful expenditure on water supply scheme 3.4.9 137 Regulatory issues and other points of interest 3.5 Water Resources Department Irregular sanction of advance 3.5.1 138 Finance Department Functioning of Treasuries 3.5.2 140 Outstanding Inspection Reports, Departmental Audit 3.5.3 141 Committee Meetings, Follow-up on Audit Reports and Action Taken Notes CHAPTER IV INTERNAL CONTROL IN GOVERNMENT Fisheries Department Internal controls in Fisheries Department 4.1 143 v Audit Report (Civil) for the year ended 31 March 2009 Reference APPENDICES Paragraph Page No. Statement showing no. of paragraphs/reviews in respect of 1.1 169 which Government explanatory memoranda (UORs) had not been received Details of units selected for audit 2.1 170 Details of Facility Survey conducted in the selected units 2.2 172 Statement showing inadmissible expenditure from RKS 2.3 174 fund Statement showing component-wise receipt and 2.4 176 expenditure under NRHM during 2005-06 to 2008-09 Delay in transfer of funds by SHS to DHS 2.5 178 Statement showing non-availability of infrastructure in the 2.6 179 selected CHCs and PHCs Statement showing number of selected CHCs not having 2.7 181 fully equipped Operation Theater Statement showing vacancy position in the selected CHCs 2.8 182 Statement showing shortfall in training 2.9 183 Statement showing details of institutional deliveries in 2.10 185 selected districts Statement of targets and achievement of family planning 2.11 186 operations during 2005-09, in eight test checked districts Target and achievement of Immunisation coverage in 2.12 188 respect of BCG, Measles, DPT and OPV Major Schemes implemented by the Sports Department 2.13 189 List of units test-checked 2.14 190 Sports Complexes At Divisional, District And Taluka 2.15 192 Level And Their Cost Ceiling District-wise Coaches position 2.16 193 Conditions for payment of Grant-in-aid to various 2.17 194 institutions List of 18 institutions whose primary objective was not development of sports but grant-in-aid sanctioned for 2.18 195 sports related activities Recommendations of Mid Term Review Committee 2.19 196 vi Table of contents APPENDICES Reference Appendix Page No. Statement showing the names of the districts, blocks and 2.20 197 villages selected for audit as well as details of village-wise beneficiaries surveyed jointly by audit and departmental officers Statement showing the details of funds available and 2.21 198 expenditure incurred on SGSY, IAY, DRDA Administration and Hariyali during 2004-09 in the entire State Statement showing the details of funds available and 2.22 199 expenditure incurred on SGSY, IAY, DRDA Administration and Hariyali during 2004-09 in the selected districts Statement showing the short release of funds by the 2.23 200 Government of India Statement showing shortfalls in holding of the meetings of 2.24 201 various committees Statement showing vacancy position in the selected 2.25 202 DRDAs Statement showing progress of implementation of SGSY, 2.26 203 IAY and Hariyali schemes Details of infrastructure created in selected districts 2.27 204 Statements showing Budget allotment and Expenditure 2.28 205 Statement showing increase in cost of works and increase 2.29 206 in cost of storage over the prescribed yardstick Statement showing reasons for increase in cost 2.30 207 Statement showing list of projects remaining incomplete 2.31 208 due to opposition from land owners Statement showing expenditure of projects for which 2.32 209 distribution system was not completed as of February/ March 2009 Statement showing expenditure of projects for which 2.33 210 distribution system was not completed as of February/ March 2009 Statement showing reasons for increase in cost of projects 2.34 211 on account of Clause 38 and EIRL vii Audit Report (Civil) for the year ended 31 March 2009 Reference APPENDICES Appendix Page No. Statement showing over payment of incentive allowance 3.1 212 Statement showing excess payment of dearness allowance 3.2 213 grant Statement showing extra contractual benefit 3.3 214 Calculation of Profit 3.4 215 Statement showing avoidable expenditure 3.5 216 Department-wise outstanding Inspection Reports/paras 3.6 218 issued upto December 2008 but outstanding as on 30 June 2009 Statement showing details of various schemes 4.1 221 implemented by Department Statement showing details of Irregularities noticed in DC 4.2 222 bills Statement showing details of loans and interest pertaining 4.3 223 to the period prior to 1977-78 remained to be recovered as of December 2008 Statement showing details regarding performance of fish 4.4 224 seed centres viii P R E F A C E This Report on the audit of expenditure incurred by the Government of Maharashtra has been prepared for submission to the Governor under Article 151 of the Constitution. The report covers significant matters arising out of the compliance and performance audits of various departments including autonomous bodies and departmentally run commercial undertakings. Audit observations on the Annual Accounts of the Government would form part of a Report on State Finances, which is being presented separately. The Report starts with an introductory Chapter outlining the audit scope, mandate and the key audit findings which emerged during the year-long audit exercise. Chapter II of the Report covers performance audits while Chapter III discusses material findings emerging from compliance audits. Chapter IV includes a report on the assessment and evaluation of internal controls in the Fisheries Department. The cases mentioned in this Report are among those which came to notice in the course of test-audit of accounts during the year 2008-09 as well as those which had come to notice in earlier years but could not be dealt with in previous Reports; matters relating to the period subsequent to 2008-09 have also been included wherever necessary. CHAPTER - I Page INTRODUCTION 1 to 8 CHAPTER I: INTRODUCTION 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 the 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.