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Government of Odisha Report No. 2 of the Year 2012 TABLE of CONTENTS

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Government of Odisha Report No. 2 of the Year 2012 TABLE of CONTENTS Report of the Comptroller and Auditor General of India General and Social Sector for the year ended March 2012 Government of Odisha Report No. 2 of the year 2012 TABLE OF CONTENTS Reference to Description Para Page Preface (v) Chapter 1 : Introduction Introduction 1-8 Chapter 2 : Performance Audits COMMERCE AND TRANSPORT DEPARTMENT Resources and Revenue sharing arrangement in PPP model Port 2.1 9-42 projects in the State PLANNING AND CO-ORDINATION DEPARTMENT Implementation of Integrated Action Plan (IAP) in the State 2.2 43-64 Chapter 3 : Compliance Audit WOMEN AND CHILD DEVELOPMENT DEPARTMENT Procurement and distribution of dal under Supplementary 3.1 65-84 Nutrition Programme (SNP) and Mid Day Meal (MDM) scheme HEALTH AND FAMILY WELFARE DEPARTMENT Functioning of blood banks in the State 3.2 85-98 Functioning of Trauma Care Centres on National Highways 3.3 99-112 SCHEDULED TRIBE AND SCHEDULED CASTE DEVELOPMENT DEPARTMENT Functioning of Ekalavya Model Residential Schools in the State 3.4 113-128 FOOD SUPPLIES AND CONSUMER WELFARE DEPARTMENT Diversion of TPDS rice 3.5 129-131 Appendices Appendix Reference to Number Description Para Page Number 2.1.1 Statement showing comparison of Tariff between 2.1.4.3 133 Dhamra Port and Paradip Port 2.1.2 Statement showing loss of Revenue share due to 2.1.4.4 134 acceptance of revenue percentage share below the reserve percentage for Gopalpur port 2.1.3 Statement showing loss of revenue to Government due to 2.1.4.4 135 acceptance of revenue share at lower rate for Gopalpur port compared to percentage of revenue share of Dhamra port 2.2.1 Statement showing test checked units under IAP 2.2.1.5 136 2.2.2 Statement showing district wise position of projects 2.2.2.4 137 approved / taken up and subsequently cancelled by the DLCs 2.2.3 Statement showing details of inadmissible projects 2.2.2.9 138-141 executed under IAP 2.2.4 (A) Statement showing excess submission of UC by the 2.2.3.3 142 Government of Odisha under IAP (B) Statement showing submission of inflated utilisation certificate by Executing Agencies under IAP 2.2.5 Statement showing projects sanctioned earlier under 2.2.4.1 143 other schemes but taken up under IAP 2.2.6 Statement of unfruitful expenditure due to midway 2.2.4.4 144 abandonment of projects 2.2.7 Statement of irregular execution of works through 2.2.4.6 145 outsiders without inviting tenders camouflaging the same as departmental execution 2.2.8 Statement on procurement of construction material on 2.2.4.7 146 hand receipt from private persons/unauthorised dealers and payment made in cash ii Appendix Reference to Number Description Para Page Number 2.2.9 Statement showing splitting up of projects to avoid wide 2.2.4.8 147 publicity and sanction of higher authorities 3.1.1 Statement showing loss on procurement of arhar dal 3.1.3.3 148 3.1.2 Statement showing the loss on purchase of arhar dal 3.1.3.3 149-150 under MDM (April 2010-March 2011) w.r.t. the highest State average wholesale price prevailing in the State as per Market Intelligence wing of FS & C W department of Government of Odisha 3.1.3 Statement showing the loss on purchase of arhar dal 3.1.3.3 151-152 under SNP (April 2010-March 2011) w.r.t. the highest State average wholesale price prevailing in the State as per Market Intelligence wing of FS & C W department of Government of Odisha 3.1.4 Statement showing the loss on purchase of arhar dal 3.1.3.3 153-154 under SNP (April 2010-March 2011) w.r.t. the Annual State average wholesale price prevailing in the State as per Market Intelligence wing of FS & C W department of Government of Odisha 3.1.5 Statement showing the loss on purchase of arhar dal 3.1.3.3 155-156 under MDM (April 2010-March 2011) w.r.t. the Annual State average wholesale price prevailing in the state as per Market Intelligence wing of FS & C W department of Government of Odisha 3.2.1 Statement showing Blood Banks in which blood was 3.2.3.1 157 extracted from donors without maintaining the requisite information 3.2.2 Statement showing non-conducting of ELISA test by 3.2.3.2 158 Blood Banks before transfusion of blood 3.2.3 Statement showing equipment not available in Blood 3.2.3.6 159-160 Banks 3.2.4 Statement showing number of Blood Bank staff who 3.2.4.2 161 were not trained in Blood Bank activities 3.2.5 Statement showing status of formation of managing 3.2.6.1 162 committee and dates of meeting in the test checked Blood Banks 3.3.1 Details of funds released in respect of equipment and 3.3.6.2 163 expenditure incurred in test checked TCCs iii Appendix Reference to Number Description Para Page Number 3.3.2 Statement showing inadmissible expenditure incurred by 3.3.6.3 164-165 TCC, Cuttack and TCC, Berhampur under equipment component 3.3.3 Details of funds released for recruitment of manpower 3.3.9 166 and expenditure incurred thereon for TCCs 3.3.4 Statement showing manpower position in TCC, Cuttack 3.3.9 167 and TCC, Berhampur against prescribed norm 3.4.1 Statement showing the details of district-wise ST 3.4.2.1 168 Population of the State 3.4.2 Comparative Statement showing disparity in the pay 3.4.6.1 169 structure of teachers of EMRS, Jawahar Navodaya Vidyalaya (JNV) and State Government Schools during 2011-12 3.5.1 Statement showing the details of quantity of TPDS rice 3.5 170 meant for BPL families allotted by GoI, lifted by the State Government and sold to the beneficiaries approved by GoI and ineligible beneficiaries during 2002-12 4 Glossary of Abbreviations 171-174 iv Preface This Report on the audit of expenditure incurred by the Government of Odisha 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/activities. 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 1 outlining the audit scope, mandate and the key audit findings which emerged during the audit exercise. Chapter 2 of the Report covers performance audits while Chapter 3 discusses material findings emerging from compliance audit. The cases mentioned in this Report are among those which came to notice in the course of test audit of accounts during the year 2011-12 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 2011-12 have also been included wherever necessary. (v) Chapter 1 Introduction Chapter 1 Introduction 1.1 About this Report This Report of the Comptroller and Auditor General of India (CAG) on Government of Odisha relates to matters arising from Performance Audit of selected programmes and activities and Compliance Audit of Government departments and Autonomous Bodies. 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 audit findings are expected to enable the executive to take corrective action as also to frame policies and directives that will lead to improved financial management of the organisations, thus contributing to better governance. Compliance audit refers to examination of the transactions relating to expenditure, receipts, assets and liabilities of the audited entities to ascertain whether the provisions of the Constitution of India, applicable Rules, Laws, Regulations and various orders and instructions issued by the competent authorities are being complied with. Performance audit examines the extent to which the objectives of an organisation, programme or scheme have been achieved economically, efficiently and effectively with due regard to ethics and equity. This chapter provides the audited entity's profile, the planning and extent of audit, a synopsis of the significant audit observations. Chapter 2 of this Report deals with the findings of Performance Audits and Chapter 3 deals with Compliance Audit of various departments and Autonomous Bodies. The cases mentioned in the Report are among those which came to notice in the course of test audit of accounts during the year 2011-12 as well as those which had come to light in earlier years but could not be dealt with in previous Reports. Matters relating to the period subsequent to 2011-12 have also been included, wherever necessary. 1.2 Audited entity's profile There were 38 departments in the State at the Secretariat level headed by Additional Chief Secretaries / Principal Secretaries / Commissioner-cum- Secretaries, assisted by Directors and Sub-ordinate Officers. Of these, 24 Departments including PSUs / Autonomous Bodies / Local Bodies coming under these Departments are under the audit jurisdiction of the Accountant General (General and Social Sector Audit). The comparative position of expenditure incurred by the Government of Odisha during 2011-12 and in preceding two years is given in Table 1.1. 1 Audit Report (G&SS) for the year ended March 2012 Table 1.1: Comparative position of expenditure (` in crore) Particulars 2009-10 2010-11 2011-12 Plan Non-plan Total Plan Non-plan Total Plan Non-plan Total Revenue Expenditure General 80.83 9204.32 9285.15 78.77 9858.00 9936.77 80.38 10848.20 10928.58 Services Social 3236.51 6601.70 9838.21 4249.09 7672.92 11922.01 5568.84 8769.23 14338.07 Services Economic 2297.75 3464.65 5762.40 3064.81 4012.75 7077.56
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