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Social, Economic, Revenue & General Sectors, Government of Nagaland

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Social, Economic, Revenue & General Sectors, Government of Nagaland Report of the Comptroller and Auditor General of India on Social, Economic, Revenue and General Sectors For the year ended 31 March 2016 GOVERNMENT OF NAGALAND Report No. 1 of 2017 2 TABLE OF CONTENTS Reference to Paragraph (s) Page (s) Preface vii Executive Summary ix CHAPTER I – SOCIAL SECTOR Introduction 1.1 1 Planning and Conduct of Audit 1.2 1 Performance Audit SCHOOL EDUCATION DEPARTMENT Implementation of Right to Education Act, 2009 1.3 2 Compliance Audit paragraphs DEPARTMENT OF MUNICIPAL AFFAIRS Payment without supply of materials 1.4 25 TECHNICAL EDUCATION DEPARTMENT Undermining of Legislative financial control 1.5 26 HEALTH AND FAMILY WELFARE DEPARTMENT Payment without receipt of equipment 1.6 28 CHAPTER II – ECONOMIC SECTOR Introduction 2.1 31 Planning and Conduct of Audit 2.2 32 Performance Audits DEPARTMENT OF TOURISM Creation, Maintenance and Management of Tourism Infrastructure 2.3 32 NAGALAND STATE TRANSPORT DEPARTMENT Activities of Nagaland State Transport 2.4 60 Compliance Audit paragraphs PUBLIC WORKS (ROADS & BRIDGES) DEPARTMENT Excess payment to contractor 2.5 79 RURAL DEVELOPMENT DEPARTMENT Suspected Misappropriation of MGNREGS fund 2.6 80 DEPARTMENT OF FISHERIES Fraudulent payment 2.7 82 TOURISM DEPARTMENT Misutilisation/Misappropriation of Government revenue 2.8 84 i Reference to Paragraph (s) Page (s) CHAPTER III – ECONOMIC SECTOR (PUBLIC SECTOR UNDERTAKINGS) Introduction 3.1 87 Accountability framework 3.1.2 to 3.1.4 87 Stake of Government of Nagaland 3.1.5 to 3.1.8 89 Reconciliation with Finance Accounts 3.1.9 92 Finalization of accounts 3.1.10 to 93 3.1.13 Performance of SPSUs 3.1.14 to 95 3.1.17 Winding up of non-working SPSUs 3.1.18 and 97 3.1.19 Accounts Comments 3.1.20 97 Performance Audits and Paragraphs 3.1.21 and 98 3.1.24 Disinvestment, Restructuring and Privatisation of SPSUs and any 3.1.25 99 reforms in power sector CHAPTER IV –REVENUE SECTOR Trend of Revenue Receipts 4.1.1 101 Variation between the budget estimates and actuals 4.1.4 103 Analysis of arrears of revenue 4.1.5 103 Arrears in assessment 4.1.6 103 Response of the Departments/Government towards audit 4.1.7 104 Analysis of mechanism for dealing with the issues raised by Audit 4.1.8 106 Audit Planning 4.1.9 108 Results of Audit 4.1.10 109 Performance Audit FINANCE DEPARTMENT/DIRECTORATE OF LOTTERIES Nagaland State Lotteries 4.2 109 MOTOR TRANSPORT DEPARTMENT Computerisation of Motor Vehicles Department 4.3 138 Compliance Audit Paragraphs FINANCE (TAXATION) DEPARTMENT Evasion of Tax 4.4 153 Evasion of Tax 4.5 156 Loss of Revenue/Evasion of Tax 4.6 158 ii Reference to Paragraph (s) Page (s) CHAPTER V – GENERAL SECTOR Introduction 5.1 161 Planning and Conduct of Audit 5.2 162 FINANCE (TREASURIES AND ACCOUNTS DEPARTMENT) Fraudulent payment of pensions 5.3 162 Fraudulent drawal 5.4 164 CHAPTER VI – FOLLOW UP OF AUDIT OBSERVATIONS Response of the departments to the recommendations of the Public 6.1 171 Accounts Committee (PAC) Monitoring 6.2 171 Outstanding Inspection Reports 6.3 171 Departmental Audit Committee Meetings 6.4 173 iii APPENDICES Appendix Page No. Statement showing position of schools in Mon, 1.3.1 175 Dimapur and Kohima Statement showing the details of variation in 2.5.1 176 quantities of work as per revised Bill of Quantity Statement showing Investments by State Government 3.1.1 177 in SPSU’s whose accounts are in arrears Summarised financial results of Government 3.1.2 178 Companies for the latest year for which accounts are finalized Statement showing the important terms and conditions 4.2.1 181 of the agreement and important provisions of Lotteries (Regulation) Rules, 2010 Statement showing details of weekly schemes for 4.2.2 183 paper and Online lotteries Statement of non-capturing of essential information in 4.3.1 185 Vahan and Sarathi database Statement of invalid/incorrect/unusual data in detected 4.3.2 186 Vahan and Sarathi database Statement of tax defaulting vehicles 4.3.3 187 Statement of short remittances of revenue into 4.3.4 188 Government account Statement showing the details of the evasion of Tax 4.4.1 190 Statement showing the details of tax evaded 4.4.2 191 Statement showing the details of dealers returns, tax 4.4.3 192 assessed and tax evaded and interest thereon Statement showing the incorrect application of rates 4.5.1 193 Statement showing fraudulent drawal of pension 5.3.1 194 gratuity, commutation and pension arrears with forged Authorities under Zunheboto Treasury. Statement showing fraudulent drawal of Revision of 5.3.2 195 pension (ROP) 2010 with forged Authorities under Zunheboto Treasury iv Appendix Page No. Statement showing Double/Triple/Quadruple Drawal 5.3.3 196 of Pension under Zunheboto Treasury Statement showing double/triple/quadruple drawal 5.3.4 198 of pension under Dimapur Treasury Statement showing fraudulent/double/excess drawals 5.4.1 199 of Pay and Allowances by School Education Department v PREFACE 1. This Report for the year ended March 2016 has been prepared for submission to the Governor of Nagaland under Article 151(2) of the Constitution of India. 2. The Report contains significant results of the performance audit and compliance audit of the Departments of the Government of Nagaland under the Social, Economic, Revenue and General Sectors including the Departments of School Education, Nagaland State Lotteries, Tourism, Motor Vehicle Department, Nagaland State Transport, Finance, Treasuries and Accounts, Public Works, Fisheries etc. 3. The cases mentioned in this Report are those which came to notice in the course of test audit during the year 2015-16 as well as those which came to notice in earlier years, but could not be reported in the previous Reports; instances relating to the period subsequent to 2015-16 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. vii EXECUTIVE SUMMARY This Report is arranged in six chapters. Chapter I deals with Social Sector contains Performance Audit of Implementation of Right to Education Act, 2009 and three Compliance Audit paragraphs. While Chapter II deals with Economic Sector (other than Public Sector Undertakings) besides two Performance Audits viz., Creation, Maintenance and Management of Tourism Infrastructure and Activities of Nagaland State Transport Department and also contains four Compliance Audit paragraphs; Chapter III deals with Economic Sector (Pubic Sector Undertakings). Chapter IV dealing with Revenue Sector contains two Performance Audits viz., Nagaland State Lotteries and Computerisation of Motor Vehicles Department and three Compliance Audit paragraphs. Chapter V deals with General Sector features two Compliance Audit paragraphs, whereas Chapter VI deals Follow-up on audit observations. According to the existing arrangements, copies of the draft audit paragraphs and draft performance audits were sent to the Secretary of the departments concerned by the Accountant General (Audit) with a request to furnish replies within six weeks. Replies were not received from the Secretaries of the Departments concerned in respect of six audit paragraphs. CHAPTER-I: SOCIAL SECTOR Performance Audits Implementation of Right to Education Act, 2009 To make elementary education a fundamental right to all children, Article 21-A was inserted through the 86th Constitutional Amendment Act 2002, and subsequently the Right of Children to Free and Compulsory Education Act or Right to Education Act (RTE) Act 2009 was enacted by Parliament. The Right of Children to Free and Compulsory Education (RTE) Act came into operation with effect from 01 April 2010. In Nagaland, the Right to Education (RTE) Rules were notified on 21 March 2011 and implementation of the Right to Education Act commenced from 2011-12. The Performance Audit of Right to Education Act (RTE) Act 2009 covering the period from 2011-12 to 2015-16 was taken up during May 2016 to September 2016. The major points noticed were: Highlights One of the setback faced by the State in implementation of Right to Education was the lack of accuracy of child population since household survey to ascertain the actual elementary school going child population was not conducted by the concerned authority (Paragraph 1.3.8.1) ix Audit Report for the year ended 31 March 2014 In contravention to the Act, collection of fees of ` 30.03 lakh from the children in the three test checked districts occurred as School Grant was not released. (Paragraph 1.3.8.11) A total of 10,690 teachers (65 per cent) in Government schools were yet to be trained thus compromising the quality of education in the State. (Paragraph 1.3.8.15 (ii)) Avoidable expenditure of ` 11.96 crore was incurred due to excess procurement of school uniforms. (Paragraph 1.3.8.17.2) Compliance Audit Paragraphs The Additional Director, Department of Municipal Affairs Cell arbitrarily altered the specification of the Roto Crates and extended undue benefit to the Supplier. Further, the Additional Director also paid the full amount of ` 1.11 crore to the supplier without actual receipt of the material. (Paragraph 1.4) An amount of ` 5.08 crore received as compensation from National Institute of Technology for the standing building and land was not deposited into Government Account and was irregularly diverted bypassing the legislative financial control and accountability. (Paragraph 1.5) The Director, Health and Family Welfare, paid ` 36.66 lakh without actual supply/ procurement of seven medical equipment. Besides, the Department paid ` 17.19 lakh for two items not sanctioned by the Competent Authority. (Paragraph 1.6) CHAPTER-II: ECONOMIC SECTOR Performance Audits Creation, Maintenance and Management of Tourism Infrastructure.
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