Report of the Comptroller and Auditor General of India on for The
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lR;eso t;rs Report of the Comptroller and Auditor General of India G O on V E General, Social, Economic, R N M Revenue and Economic (PSUs) Sectors E © COMPTROLLER AND N T AUDITOR GENERAL OF INDIA O for the year ended 31 March 2014 F www.cag.gov.in M I Z O R A M Government of Mizoram Laid before the Legislature on .................. Report of the Comptroller and Auditor General of India on General, Social, Economic, Revenue and Economic (PSUs) Sectors For the year ended 31 March 2014 GOVERNMENT OF MIZORAM TABLE OF CONTENTS Paragraph Particulars Page Preface v Executive Summary vii Chapter-I : General Sector 1.1 Introduction 1 1.2 Planning and conduct of Audit 2 Compliance Audit Paragraphs 1.3 Non-release of State’s Share, diversion of Central Assistance and 2 excess payment of CST (Fire and Emergency Service (Home) Department) 1.4 Loss to the State exchequer 4 (Printing and Stationery Department) Follow up of Audit Observations 1.5 Non-submission of suo moto Action Taken Notes 5 1.6 Response to audit observations and compliance thereof by the 6 Executive 1.7 Audit Committee Meetings 7 Chapter-II : Social Sector 2.1 Introduction 9 2.2 Planning and conduct of Audit 11 Performance Audit 2.3 Total Sanitation Campaign (TSC)/Nirmal Bharat Abhiyan (NBA) 11 (Public Health Engineering Department) 2.4 Disaster Management and Rehabilitation in Mizoram 44 (Disaster Management and Rehabilitation Department) Follow up of Audit Observations 2.5 Non-submission of suo moto Action Taken Notes 76 2.6 Response to audit observations and compliance thereof by the 76 Executive 2.7 Audit Committee Meetings 77 Chapter-III : Economic Sector (Other than State Public Sector Undertakings) 3.1 Introduction 79 3.2 Planning and conduct of Audit 81 Performance Audit 3.3 Development of Tourism Sector in Mizoram 81 (Tourism Department) Compliance Audit Paragraphs 3.4 Loss due to undue financial aid to Contactors 112 (Public Works Department) 3.5 Infructuous expenditure in patch repairing works 113 (Public Works Department) i Audit Report for the year ended 31 March 2014 Paragraph Particulars Page 3.6 Irregularities in implementation of Oil Palm Mills Project 114 (Agriculture Department) Follow up of Audit Observations 3.7 Non-submission of suo moto Action Taken Notes 118 3.8 Response to audit observations and compliance thereof by the 118 Executive 3.9 Audit Committee Meetings 119 Chapter-IV : Revenue Sector 4.1 Trend of revenue receipts 121 4.2 Analysis of arrears of revenue 122 4.3 Arrears in assessments 122 4.4 Evasion of tax detected by the Department 123 4.5 Pendency of Refund Cases 123 4.6 Response of the Government/Departments towards audit 123 4.7 Analysis of the mechanism for dealing with the issues raised by Audit 126 4.8 Action taken on the recommendations accepted by the Departments/ 127 Government 4.9 Results of audit 128 4.10 Coverage of this Report 128 Performance Audit 4.11 Implementation of National Bamboo Mission 129 (Environment and Forests Department) Compliance Audit Paragraphs 4.12 Underassessment of tax 153 (Taxation Department) 4.13 Non-realisation of tax from a dealer 154 (Taxation Department) 4.14 Non-levy of penalty 155 (Taxation Department) 4.15 Under-assessment of tax 156 (Taxation Department) 4.16 Short assessment of Tax 158 (Taxation Department) 4.17 Short deposit of revenue 159 (Land Revenue and Settlement Department) Chapter-V : Economic Sector (State Public Sector Undertakings) (Government Commercial and Trading Activities) 5.1 Overview of State Public Sector Undertakings 161 Performance Audit 5.2 Management of Power through generation and procurement 169 (Power and Electricity Department) 5.3 Working of the Zoram Electronics Development Corporation Limited 187 (Information and Communication Technology Department) ii Table of Contents LIST OF APPENDICES Appendix Subject Page 1.3.1 Statement showing details of excess payment of CST to different 211 firms 2.3.1 Statement showing details of selected Districts, Blocks and Village 212 Councils 2.3.2 Statement showing the funding pattern for implementation of various 214 components of TSC/NBA projects 2.3.3 Statement showing short release of State share under TSC/NBA 215 programme during 2009-14 2.3.4 Statement showing the delay in release of Central Share by the 216 SLW&SM during 2009-14 2.3.5 Statement showing the target and achievement during the period 217 2009-14 2.3.6 Statement showing showing implementation of Projects in Rural 218 and Urban areas vis-à-vis expenditure (proportionately) incurred thereagainst during 2009-14 in the five test checked Districts 2.3.7 Statement showing Summary sheet of beneficiary survey 219 2.4.1 Statement showing the details of Silpaulin received by the six Districts 220 and their utilisation during 2009-14 2.4.2 Statement showing the details of Poly-tarpaulin received by the six 220 Districts and their utilisation during 2009-14 2.4.3 Statement showing the details of relief assistance given to the 221 beneficiaries much delayed in Aizawl, Champhai and Lawngtlai Districts 2.4.4 Statement showing the details of less relief assistance given to the 224 beneficiaries in Aizawl, Mamit and Lawngtlai Districts 2.4.5 Statement showing physical and financial progress report under 227 NSSP 3.3.1 Statement showing revenue collected by the Tourism Department 228 during 2009-10 to 2013-14 3.3.2 Statement showing project-wise approval by GoI, funds released by 229 GoI and its expenditure upto March 2014 3.3.3 Statement showing the expenditure incurred by the executing agencies 231 for construction of different Tourist centre under Tourism Department during 2004-05 to 2013-14 3.4.1 (A) Statement showing interest due on Mobilisation Advance in Execution 232 of NABARD works under PWD Mamit Division 3.4.1 (B) Statement showing interest due on Mobilisation Advance in Execution 234 of improvement of Bilkhawthlir - Saiphai - Natasura Road under PWD Kolasib Division iii Audit Report for the year ended 31 March 2014 Appendix Subject Page 4.11.1 Statement showing discrepancy between fund released by SMD and 235 fund received by the 14 FDAs 4.11.2 Statement showing purchase of materials/printing without following 236 the codal provision of General Financial Rules, 2005 4.11.3 Statement showing expenditure incurred under National Bamboo 240 Mission on unauthorised items 4.14.1 Statement showing non-levy of penalty from dealers failing to submit 241 Charter Accountant’s Audited Statement 4.16.1 Statement showing escapement of purchase turnover with consequent 243 escapement of sales resulting in underassessment of tax 5.1.1 Statement showing particulars of up to date paid-up capital, loans 244 outstanding and manpower as on 31 March 2014 in respect of Government companies 5.1.2 Statement showing grants and subsidy received/receivable, guarantees 245 received, waiver of dues, loans written off and loans converted into equity during the year and guarantee commitment at the end of March 2014 5.1.3 Summarised financial results of Government companies for the latest 246 year for which accounts were audited 5.1.4 Statement showing investments made by the State Government in 248 working PSUs by way of equity, loans, grants and others during the period in which the accounts have not been audited as on 31 March 2014 5.1.5 Statement showing Financial Position and Working Results of State 249 Trading Scheme of Food, Civil Supplies and Consumer Affairs Department for the last three years ending 31 March 2014 5.1.6 Statement showing working results and operational performance 250 of Mizoram State Transport for the last three years ending 31 March 2014 5.2.1 Details of installed capacity, expected generation and actual 251 generation during 2008-14 from Small Hydel Projects and other Generating units 5.2.2 Details of Energy Drawl (2008-09 to 2013-14) under Power Purchase 252 Agreements 5.2.3 Details of PPAs as on 31 March 2014 253 5.2.4 Details of MoUs as on 31 March 2014 255 5.2.5 Financial Position of Power and Electricity Department 256 iv Table of Contents PREFACE 1. This Report of the Comptroller and Auditor General of India has been prepared for submission to the Governor of Mizoram under Article 151 of the Constitution of India. 2. This Report contains significant results of performance audit and compliance audit of the Departments of the Government of Mizoram under General, Social, Economic, Revenue and Economic (PSUs) Sectors including the Fire and Emergency Service (Home) Department, Printing and Stationery Department, Public Health Engineering Department, Disaster Management and Rehabilitation Department, Tourism Department, Public Works Department, Agriculture Department, Environment and Forests Department, Taxation Department, Land Revenue and Settlement Department, Power and Electricity Department and Information and Communication Technology Department. 3. The cases mentioned in the Report are those which came to notice in the course of test audit during the year 2013-14, as well as those which came to notice in earlier years, but could not be dealt with in the previous Reports. Matters relating to the period subsequent to 2013-14 have also been included, wherever necessary. 4. The audits have been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. v Executive Summary EXECUTIVE SUMMARY vii EXECUTIVE SUMMARY This Audit Report has been prepared in five Chapters. Chapters I to V deal with General, Social, Economic (other than Public Sector Undertakings), Revenue and Economic (Public Sector Undertakings) Sectors. This Report contains six performance audits and eleven compliance audit paragraphs. According to the existing arrangements, copies of the draft compliance audit and draft performance reviews were sent to the concerned Secretaries/Principal Secretaries to the State Government by the Principal Accountant General (Audit) with a request to furnish replies within six weeks.