INSPECTION REPORT on the ACCOUNTS of the OFFICE of the COMMISSIONER, KEERAPALAYAM PANCHAYAT UNION, UNDER SECTION 20(1) of CAG’S (DPC) ACT 1971

INSPECTION REPORT ON THE ACCOUNTS OF THE OFFICE OF THE COMMISSIONER, KEERAPALAYAM PANCHAYAT UNION, UNDER SECTION 20(1) OF CAG’s (DPC) ACT 1971.

Part I : INTRODUCTION:

OVERVIEW OF THE AUDITEE UNIT

1.1 Keerapalayam is a Panchayat Union in Cuddalore District and the population of the Panchayat Union as per 2011 census was 1,18,476. The Panchayat Union is administered by the council of elected representatives and assisted by Commissioner, at the level of Block Development Officer who is the executive head and responsible for implementing the decisions of the council. The Commissioner functions under the direct supervision of the Assistant Director/Panchayat Union/Project Director of the District Rural Development Agency/District Collector and under the overall control of the Commissioner of Rural Development &Panchayat Raj who is the Head of the Department for Panchayat Unions.

1.2 Budget/ Financial Performance.

(in Rupees) Year Budget estimate Revised estimate Actual Expenditure Capital Revenue Capital Revenue Capital Revenue 2014-15 The preparation of budget is not in practice. 23597044 16138676 2015-16 44291114 8479945 Actual expenditure made based on requirement and 2016-17 25469579 11400067 2017-18 Council’s resolutions. Commented in DIR. 19309200 10824679

1.3 Field of activities carried out by the auditee unit.

The Village Panchayat renders basic services to the general public which include health care and sanitation, education, installation & maintenance of street lights, drinking water supply, provision of roads, solid waste management, sewerage disposal, burial/cremation grounds, parks, play grounds, markets, cycle/taxi stands and maintenance, issue of licences to trades/shops and collection of tax and non tax receipts, along with fees on granting Building approval.. Also performs, additional duties, as assigned by the AD (PU) and DRDA in relation to the Panchayat.

1.3 AUDIT OBJECTIVES To verify: i) whether the funds sanctioned for implementing various Central and State Schemes were effectively utilised adhering to the time schedule, without any delay which could cost excess expenditure than sanctioned one. Further, to verify, whether there was any deviation in the design/structure/change of location, etc., for which the approval of the UE/AEE/EE/S was obtained in advance.

ii) whether revenue collection mechanism is efficiently and effectively followed as per the provisions of the Acts, Rules & Regulations of the Government of India and Government of Tamil Nadu and resolutions adopted in the Council, without any hindrance;

iii) whether proper planning of Schemes/Services was done for delivery of various essential citizen services and the same were rendered/discharged efficiently and effectively within the stipulated time, deficiencies/failure in this regard should be highlighted. To verify whether service level bench marks fixed for delivery of services is adhered to. iv) whether the completed Schemes were immediately brought into beneficiaries’ use, such as, usage of the facilities of VPSC, Noon-meal Centres, PDS, etc and any delay in functioning of VPSC, Noon-meal Centres, PDS, etc..would find a place in the DIR v) To verify whether all the recommendations of the GramaSabha were brought to the Council for consideration and taking the proposal to the Government, for approval and sanction, through the AD (Panchayat)/DRDA concerned; vi) whether the registers, returns and allied records were maintained as per manual/guidelines and submitted periodically to higher officials without delay.

1.5 Audit Criteria

The contents of the following Acts, Manuals, Resolutions of the Council and any other current Notifications, etc., on the subject, were used as criteria for audit findings:

i) Budget and Accounting Manual ii) Tamil Nadu Town and Country Planning Act 1971 iii) Tamil Nadu Tender Transparency Act 1998 iv) Municipal Solid Waste (Management & Handling) Rules 2000 v) Ministry of Road, Transport and Highways specifications 3

vi) Council resolutions vii) Scheme guidelines for various schemes issued by the respective Government at the time of sanctioning the schemes. viii) Government orders, executive instructions and circulars issued from time to time. ix) Notifications issued by the Governments, from time to time, and/or any other source of information relating to the functioning of the PUC

1.6 Scope of Audit

The audit focused on the

a. the essential and important features, provision of basic amenities, services and development schemes to the Village and Block Panchayats were implemented by the Panchayat Union (taken care of all the Resolutions passed by the Grama Sabha and Council Resolutions) b. calculation of tax and non tax revenues and collected, without any arrears; c. budgetary control mechanism is in place for effective delivery of citizen service, within the sanctioned Estimate and in time and for any changes, whether proper justification with the approval of the competent authority was obtained; d. effective system of grievance redressal mechanism was in place

The previous audit of this Panchayat Union was conducted in 08/2008 covering the period up to 2007-08. During the present audit, taken up from 27.02.2018 to 09.03.2018 activities and transactions pertaining to the period from 2008-09 to 2016-17 were test checked.

1.7 AUDIT METHODOLOGY

The audit has been conducted in accordance with the applicable Audit Procedures and Auditing Standards of CAG and Local Bodies Manual. The methodology as detailed in these manuals was adopted wherever necessary while conducting audit.

PART II- AUDIT FINDINGS:

PARA NO. GIST OF OBJECTIONS PART-IIA MGNREGS Works 1 A)Unfruitful expenditure in construction of VPSCs Rs.631.03 lakhs B)Non levy of penalty for delayed execution of works – Rs.24,24,450/- 2 Thane housing scheme Accounts Misappropriation of funds at village panchayat level – Rs.23.11 lakhs 3 IAY Special Schemes for 2013-14 and 2015-16: – i) Non recovery of funds released to Cancelled houses. ii) Mis appropriation of funds Rs.39.07 lakhs.

PART-IIB Delay in ‘Suo-motu’ regularization of unapproved layouts resulted in 4 postponement of Revenue - Rs.1.27 crore.

5 Transfer of Funds from Account No.II of C.Veerasolagan Village Panchayat Rs.11,77,697/- 6 Locking up of IAY funds Rs.24.48 lakhs

7 CMSPGH Scheme – works not completed and non-installation of solar power panel in construction of green houses 8 Nutritious Meals Programme 1) Non Provision of Advance funds for feeding charges resulted in Non ascertaining of provision of slandered food. 2) Non reconciliation of accounts. 9 Non – Recovery of Various advances – Rs.3.10 crores 10 Non rectification of differences in the accounts for long period 11 Inordinate delay in execution of kitchen shed works at Noon Meal Centers - Non Achievement of scheme objective. 12 Non recovery of SPF 2000 Scheme Contribution to be recovered Rs.1,08,850/- 13 Non-preparation of annual budget 14 Non Coverage of Noon Meal Employees under EPF Act 1952 15 Un claimed Lapsed Deposits Rs. 69203/-

PART III:

Follow up on findings outstanding from previous reports to be included under Part III.

Year Paras outstanding Paras settled Paras pending 3/IIB Commented in --- current IR and para dropped 4/IIB --- Reply not acceptable 6/IIB Reply accepted and --- L21-172/14-15 para dropped 7/IIB --- Reply not acceptable 9/IIB Reply accepted and --- para dropped 13/IIB Reply accepted and --- para dropped

PART IV

BEST PRACTICES:

The Street lighting, Road works and Water supply services are provided satisfactorily as per requirement.

PART V Acknowledgement:

An entry meeting for this compliance audit was held on 30.04.2018 during which council resolution files, property tax, assessment files, files relating to various Schemes, etc., and other connected records required for the audit were briefly explained to the Commissioner. Both the sides have agreed to fix 10.05.2018 as the last date for furnishing of the records and 11.05.2018 as the last date for furnishing the replies to the audit slips so as to facilitate fixing date of Exit meeting/discussion.

The Audit acknowledges the co-operation extended by the Commissioner, Keerapalayam Panchayat Union and staff in completing audit successfully.

On completion of Audit, an exit meeting was held on 30.05.2018 with the Commissioner, Keerapalayam Panchayat Union in which the audit findings were explained, discussed and responses of the Commissioner were considered and appropriately incorporated in the draft inspection report.

The following persons held the charge of the post of Commissioner during the period covered by audit...

Sl. Name From To No. Shri/Smt./Selvi 1 R. Rajendram 01.04.2008 13.02.2015 2 R. Jayabal 14.02.2018 15.05.2015 3 M. Ganesan 16.05.2015 21.06.2015 4 R. Mohanraj 22.06.2015 07.02.2016 5 N.P. Devadoss 08.02.2016 14.08.2016 6 M Pushbaraj (Addl.) 15.08.2016 16.08.2016 7 G. Tharaeswari 17.08.2016 31.08.2016 8 M Pushbaraj (Addl.) 01.09.2016 15.09.2016 9 M. Pazhanivel 16.09.2016 31.10.2017 10 D. Revathi 01.11.2017 till date.

The local audit was conducted by the following officers:

Sl. No. Name and Designation From To Shri/Smt./Selvi 1 B. Srinivasulu, Audit Officer 30.04.2018 11.05.2018 2 V. Natarajan, Assistant Audit Officer 30.04.2018 11.05.2018 3 G. Senthil Kumaran, Senior Auditor 30.04.2018 11.05.2018

Annexure

List of annexure with case referencing to the para with source name has to be mentioned.

Source (whether the Annexure Para annexure prepared Title Particulars No. listed by audit or auditee or from some other source) 1 THANE Annexure to para 2/IIA 2/IIA prepared by audit Misappropriation from the records of funds produced

Part III

Follow up on findings outstanding from previous reports to be included under Part III.

Year Paras outstanding Paras settled Paras pending Enclosed

Besides, comment on non opening/maintenance of asset register, Road register, register of Advances, Stock register etc in the prescribed format to be included under part III with necessary supporting documents.

Comment on pendency in preparation of bank reconciliation statements by the Panchayat Union in respect of each account to be included with supporting documents under Part III.

Comment on formation/functioning of various committees and status of implementation of their recommendations to be included under part III with supporting documents. Details of sanctioned strength in each cadre, person in position and impact on account of shortage in staff like pendency in execution of sanctioned schemes, short fall in revenue collection, etc., to be commented under part III with supporting key documents.

Comment on i) delay/non-furnishing of utilization certificates in respect of various scheme funded by GOI, State and other external agencies, ii) non-surrender of unutilized funds iii) diversion of funds to other schemes/heads etc to be included under part III with supporting documents.

PART IV

BEST PRACTICES:

Any good practices / innovations, if noticed during the course of audit may be included under this part. To include any best practices or innovations in the office audited. If there is no comment for inclusion under this item, this heading need not be included in the Inspection report.

Scope Limitations (wherever applicable) when the auditee has not furnished details/documents/files, the details of the same has to be mentioned. Besides efforts taken to get those details/documents/files like issue of reminders, bringing to knowledge of higher authority etc have to be mentioned. Impact of non production of document/files has to be mentioned in the report.

Part V Acknowledgement:

Draft Inspection Report has been prepared based on the above guidelines

PART - IIA 01. MGNREGS Works:

A) Unfruitful expenditure in construction of VPSCs – Rs.631.03 lakhs. B) Non levy of penalty for delayed execution of works – Rs. 16,59,450+Rs.7.65,000 = Rs.24,24,450/- In G.O.Ms.No. 83, Rural Development and Panchayat Raj (CGS.1)Department dt.19/07/2013 orders were issued for construction of 4174 Village Panchayat Service Centres (VPSCs) and 120 Block Panchayat Service Centres (BPSC) in Tamil Nadu under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) 2013-14. Based on the GO the Chairman, DRDA and District Collector, Cuddalore accorded administrative sanctions for construction of 31 VPSCs vide Roc. No. Roc.No.2540/14/A9 dt.26.12.2014 and revised administrative sanction vide Roc.No.2540/14/A9 dated 11.1.2015 for the year 2014-15 and for construction of 32 VPSCs vide Roc.No.1429/15/A9 dt.8.8.2015 for the year 2015-16 in Keerapalayam Block. The details as follows:

No. of No. of VPSCs Materi Rate per al VPSCs provided with Labour VPSC & Charge Man handed Infrastructure, VPSCs Charges over to i.e., total s Days Year Allotted Rs. in lakh Pudhu computer,printer, Rs. in lakh Rs. in Vazhvu Total Rs. scanner, Internet lakh Project In lakhs connection and manpower

1 2 3 4 5 6 7 8 9 14.43x31 361.401 2014-15 31 23.52 337.885 12851 22 Nil =447.33 2015-16 32 17x32= 544 15.29 254.33 269.63 8358 9 Nil Total 991.33 38.81 592.22 631.03 21209

Block Development Officers/Village Panchayats, in Cuddalore issued work orders to respective village panchayats secretaries for construction of BPSCs and VPSCs in the respective village Panchayats as per the proceedings of Chairman, DRDA and District Collector, Cuddalore. The service centres are constructed to facilitate the citizens’ access to information on various schemes and to provide platform to various schemes of different departments at block level and village Panchayat level. The basic objective was improving service delivery to the 11 rural community and to act as knowledge resource centres, as stated in the Government orders sanctioning the work. As per the guidelines issued for use age of VPSC in GO dt. 26/05/2015 the services in the VPSCs are to be provided by the village poverty reduction committee in village panchayats. The services deliveries should be entrusted to PLF/ better performing Self Help Groups (SHG) under mobilization. Director of Rural Development and Panchayat Raj Institutions, Chennai in letter No. Roc.27548/2015 MGNREGS - II-2 dt.25/05/2016, the requested the District Collector, Cuddalore to hand over the VPSCs to the District Project Manager, Pudhu Vazhvu Project or Project Officer, MagalirThittam for utilization of the building for providing various services as per guidelines issued in the GO dated 26/05/2015. As per the GO dated 26/05/2015 the intended objective of construction of these BPSCs/VPSCs are to offer instant information and service to public as below:- Block Panchayat Service Centre/Village Panchayat Service Centre  Bank and financial service assistance  Basic amenities services  Public information and knowledge related services  Solving public grievances assistances etc., For facilitating these services the BPSC/VPSCs should be provided with infrastructures such as computers, printers, scanners, UPSs and internet connectivity at a cost of Rs.1.50 lakh per centre before handing over to PudhuVazhlvu Project. The service charges in respect of Central Government related and business related services by VPSC/PLP/SHGs and the service charges so collected should be remitted to Village Panchayats account after deducting suitable charges for rendering these services. The ownership of the building would be vested with the concerned Village Panchayats only. In this connection, the following observations were made: 1. On a scrutiny of files and other related records, it was noticed that the infrastructure facilities for provision of services as per guidelines such as computers, printers, scanners, internet/broad band connectivity, information data bank etc., were not provided in 63 VPSCs so far and also 32 VPSCs not handed over to the Pudhu Vazhvu Project even after incurring an expenditure of Rs.631.03 lakh. 2. Further no training was given to the persons to be involved in provisions of the services at VPSCs. 12

3. Further the manpower i.e. total man days 21209 of used in the construction of VPSCs were termed as wasteful.

Hence, the expenditure made towards construction of BPSCs/VPSCs for Rs. 631.03 lakhs (labour Rs.38.81 lakh and Materials Rs.592.22 lakh) was construed as unfruitful besides resulting in non-achievement of the intended objective of the scheme. 13

B) Non levy of penalty for delayed execution of works – Rs. 16,59,450+Rs.7.65,000 = Rs.24,24,450 As per the conditions of the work order the work had to completed in prescribed time of six months from the date of issuing the work order, if not completed in the said time a penalty of 5% on estimate amount should be levied for the delay. On a scrutiny of work orders and estimate and account registers it was observed that no penalty was levied for the delayed execution of works. Hence, it is stated that the penalty charges amounting to Rs. Rs.24,24,450 may be recovered from the village panchayat secretaries concerned or those who executed the works. The details as follows: Sl. Year Name of the Village Estimate Work Date of Period of Amount No. Panchayat in which Amount Order completion delay of VPSC constructed per date of work penalty VPSC at 5% (Rs. in on lakhs) estimate Rs. 1 Ayeepettai 15.9.2016 12 months 72150 2 Ayyanar 18.7.2016 10 months 72150 Akkaramangalam 3 Kannagudi 24.6.2016 9 months 72150 4 2014-15 Madhuranthaganallur 14.43 16.3.2015 4.8.2016 11 months 72150 5 Mazhavarayanallur 13.4.2016 7 months 72150 6 Mudikandanallur 7.6.2016 9 months 72150 7 Nangudi 15.4.2016 7 months 72150 8 Odakkanallur 10.4.2017 19 months 72150 9 Palayamkottaimel 26.7.2017 22 months 72150 10 Pannapattu 5.4.2016 7 months 72150 11 Paradhur 19.4.2017 19 months 72150 12 Perur 26.7.2017 22 months 72150 13 Ramapuram 28.9.2015 12 days 72150

14 Sathamangalam 1.9.2017 24 months 72150

15 Sengalmadu 28.3.2016 6 months 72150

16 Tharasur 26.5.2016 8 months 72150

16.3.2015 17 Thenharirajapuram 20.01.2017 16 months 72150

18 Thunisiramedu 8.7.2016 10 months 72150 19 2014-15 Varadharajapuram 14.43 24.6.2016 9 months 72150 20 Valasakadu 22.4.2016 7 months 72150

21 Vattathur 22.4.2016 7 months 72150 22 C.veerasozhagan 14.7.2016 8 months 72150 23 Velliyangudi 14.4.2017 19 months 72150 14

Total = Rs.16,59,450 1 Devangudi 12.4.2017 19 months 85000

2 Kanur 16.3.2015 7.6.2017 21 months 85000 3 Kavalakudi 20.2.2018 29 months 85000 4 Pudaiyur 20.2.2018 29 months 85000 5 2015-16 Vilagam 17 12.4.2017 19 months 85000 6 Kandhakumaran 14.11.2017 19 months 85000 7 Kiliyanur 6.6.2017 14 months 85000 8 Vadapakkam 29.10.2015 20.1.2017 9 months 85000 9 Gudalaiyathur 10.1.2018 21 months 85000 Total =Rs. 7.65,000

On this being pointed out it was replied that the construction works of all the VPSCs would be completed and the same would be utilised as per the guidelines. In respect of the delay in construction it was replied that the matter would be examined and further report would be sent to audit.

2. THANE Housing Scheme Accounts Misappropriation of funds of village panchayat level - Rs.23.11 lakhs A scrutiny of ‘THANE Housing Scheme 2012-13’ files revealed that the files had inadequate information as detailed below:- 1. Copies of administrative sanction orders not available; 2. Copies of revised administrative sanction if any not available; 3. Copies of orders in respect of construction of houses which got cancelled, if any, were not available. 4. The funds release details with copies of proceedings / orders not available. 5. The work orders issued to beneficiaries were not available in respect of all beneficiaries. From the progress reports furnished it was observed that there were 6262 houses allotted to Keerapalayam block. Out of them, 6125 houses got completed and 137 houses were pending completion at various stages. A test check of Thunisiramedu village panchayat records relating to THANE Housing Scheme revealed that there were 154 houses allotted to Thunisiramedu Village. The estimated cost for the houses was Rs.154.00 lakh (@ Rs.1.00 lakh per house). The funds amounting to Rs.1,07,80,000/- was released by DRDA towards cost of construction apart from the cost of material. The material was procured by DRDA and stocked at Keerapalayam block office. The payments were made by village panchayats based on payment advice issued by BDO(VP). The “Payment advice”was issued as per the progress of construction works in 4 stages by deducting the cost of material issued to beneficiaries. The Thunisiramedu Village Panchayat’s Thane Housing Scheme Account vide Account No.6066073526(Indian Bank, Bhuvanagiri Branch) was credited with the following funds:- Amount received from DRDA = Rs.10780000- Interest amount = Rs. 164403- Amount transferred from other panchayats = Rs. 2200000------Total Rs. 13144403 ------16

In this connection the ‘beneficiaries wise bill payments list’ was prepared from ‘E & A register’ and compared with the bank statements. On comparison it was observed that funds were deducted from the bank accounts on different names other than the beneficiaries or the names as per the cash books and in some cases without payment advice. The total amount got deducted from the ‘THANE’ accounts without proper justification worked out to Rs.23,11,439- as detailed in the Annexure. The unauthorized with drawls was not recovered from the defaulters. Further, the records relating to other panchayats could not be verified in audit due to belated submission of records by other 7 village panchayats, which were called for audit. Since, these discrepancies/ the unauthorized withdrawals were not brought out in the audit reports submitted by the Dy.BDO(Audit) of Keerapalayam Block, action was also not taken to review all the ‘THANE Housing Scheme accounts’ maintained in other Village Panchayats, to find out similar or other discrepancies, if any. In reply it was stated that the matter would be examined under intimation to audit. Further report is awaited.

Annexure to Para No. 02/II A

Ch.Amount Name as per Name as per Vr.No./date Sl.No Ch.No of Date Rs. Passbook Cashbook & Remarks 1 057380/27.1.15 29733 S.Ezhailarasan Ravi 178/2015 Dt.21.1.15 2 057381/27.1.15 29733 S.Ezhailarasan Rajesh 179/27.1.15 3 075097/13.2.15 29733 S.Ezhailarasan Elanjiyam 193/13.2.15 4 075109/27.4.15 30183 S.Ezhailarasan Jayalakshmi 1/27.4.15 5 075110/27.4.15 30183 S.Ezhailarasan Gandhimathi 2/27.4.15 6 075111/304.15 30183 S.Ezhailarasan Ramesh/ 3/30.4.15 Subramanian 7 075119/08.6.15 13267 Selvarani Kaliyaperumal 10/8..6.15 8 075131/11.7.15 30183 S.Ezhailarasan Kaliyammal 23/11.7.15 9 075132/11.7.15 30183 R.Rajan Anjammal 22/11.7.15 10 075140/08.08.15 14901 R.Rajeswari Rajeswari 31/8.8.15 Excess payment 11 075148/16.9.15 18794 R.Rajeswari Rajeswari 39/16.9.15 Excess payment 12 075150/17.9.15 14901 G.Elavazhagan Latha 41/17.9.15 13 075151/17.9.15 18794 G.Ramamaheswari Thiyagarajan 42/17.9.15 14 075154/23.9.15 18794 G.Elavazhagan Latha 46/23.9.15 15 075180/16.3.16 18794 G.Ramamaheswari Rajendran 73/16.3.16 16 398277/24.3.16 18794 G.Ramamaheswari Latha 81/24.3.16 17 398278/4.4.16 30183 S.Ezhailarasan Latha 1/4.4.16 18 398283/12.4.16 13567 G.Ramamaheswari Sundaramoorthy 6/12.4.16 19 398284/21.4.16 30183 S.Ezhailarasan Sarasur 7/21.4.16 20 075185/03.05.16 30183 S.Ezhailarasan Manivannan 8/21.4.16 21 398289/03.5.16 30183 G.Elavazhagan Elangiyam 12/3.5.16 22 398295/10.5.16 30183 G.Ramamaheswari Gajendran 18/10.5.16 23 398296/10.5.16 30183 G.Ramamaheswari Kasinathan 19/10.5.16 24 398297/10.5.16 30183 G.Ramamaheswari Ramesh 20/10.5.16 25 398301/18.5.16 30183 G.Elavazhagan Umarani 21/18.5.16 26 398300/18.5.16 30183 G.Elavazhagan Kasambu 22/18.5.16 27 398299/18.5.16 13157 G.Elavazhagan Pugazhandhi 23/18.5.16 28 398305/24.5.16 13567 S.Ezhailarasan Latha 26/24.12.16 29 398304/24.5.16 18794 S.Ezhailarasan Susila 27/24.5.16 30 398303/25.5.16 14901 S.Ezhailarasan Sundaramoorthy 28/25.5.16 Excess payment 31 398308/3.6.16 20000 R.Rajarajan Rajarajan 31/3.6.16 32 398309/4.6.16 14901 G.Ramamageswari Thiyagarajan 32/4.6.16 18

33 398311/14.6.16 13567 G.Ramamageswari Elangiyam 33/4.6.16 34 398310/14.6.16 18147 G.Ramamageswari Anjammal 34/14.6.16 35 398313/24.6.16 18147 N.Ilayaraja Ilaiyaraja 35/24.6.16 Excess payment 36 398312/24.6.16 18147 N.Ilayarajan Sarasu 36/24.9.16 37 398314/1.7.16 30183 G.Amirthalakshmi G.Amirthalakshmi 37/1.7.16 38 398315/1.7.16 30183 N.Ilayaraja Achiyammal 38/1.7.16 39 398317/13.7.16 30183 S.Ezhailarasan Sundaramoorthy 39/13.7.16 40 398319/13.7.16 30183 G.Elavazhagan Latha 40/13.7.16 41 398320/13.7.16 13567 G.Elavazhagan Kamaraj 41/13.7.16 42 398326/14.7.16 30183 G.Elavazhagan Kavitha 47/13.7.16 43 398328/15.7.16 30183 G.Elavazhagan Saratham 48/11.7.16 44 398333/18.7.16 30183 N.Ilayaraja Elangiyam 49/18.7.16 45 398332/18.7.16 30183 G.Elavazhagan Anjammal 50/18.4.16 46 398330/18.7.16 30183 S.Ezhailarasan Kaliyammal 51/18.7.16 47 398331/18.7.16 30183 G.Elavazhagan Kiruba 52/18.7.16 48 398329/18.7.16 30183 S.Ezhailarasan Anjammal 53/18.7.16 49 398334/18.7.16 30183 N.Ilayaraja Revathi 54/18.7.16 50 398327/21.7.16 10183 Bhavani Samuraj 55/19.7.16 51 398337/21.7.16 30183 G.Ramamageswari Chandira 56/21.7.16 52 398336/21.7.16 18147 G.Ramamageswari Rajeswari 57/21.7.16 53 398338/21.7.16 18147 S.Ezhailarasan Kolanjiyappan 58/21.7.16 54 398339/21.7.16 13567 N.Ilayaraja Thiyagarajan 59/21.7.16 55 398335/21.7.16 13567 R.Rajeswari Rajendran 60/21.7.16 56 398340/26.7.16 20000 S.Velmurugan Saminathan 61/26.7.17 57 398341/26.7.16 30183 S.Velmurugan Velmurugan 62/26.7.16 58 398344/8.7.16 30183 G.Elavazhagan Shanmugam 63/8.8.16 59 398343/8.8.16 30183 S.Ezhailarasan Selladurai 64/8.8.16 60 398342/8.8.16 13567 S.Ezhailarasan Parasuraman 65/8.8.16 61 398345/24.8.16 30183 S.Ezhailarasan Ragu 66/24.8.16 62 398346/29.8.16 30183 N.Ilayaraja Elangiyam 67/29.8.16 63 398353/30.8.16 30183 N.Ilayaraja Rajendran 68/30.8.16 64 398352/30.8.16 30183 N.Ilayaraja Sathish 69/30.8.16 65 398350/30.8.16 30183 G.Elavazhagan Ramasamy 70/30.8.16 66 398348/30.8.16 30183 G.Elavazhagan Desingu 71/30.8.16 67 398351/29.8.16 30183 N.Ilayaraja Muniyammal 72/30.8.16 68 398349/29.8.16 30183 G.Elavazhagan Usha 73/30.8.16 69 398355/3.9.16 18794 S.Ezhailarasan Rajashri 77/3.9.16 70 398354/3.9.16 30183 S.Ezhailarasan Rajashri 77/3.9.16 71 398358/12.9.16 30183 S.Ezhailarasan Elangiyam 86/12.9.16 72 398357/12.9.16 30183 S.Ezhilarasan Gomathi 87/12.9.16 73 398360/12.9.16 30183 N.Ilayaraja Nagalingam 88/12.9.16 74 398359/12.9.16 30183 N.Ilayaraja Balamurugan 89/12.9.16 75 398361/12.9.16 30183 G.Elavazhagan Kaliyaperumal 90/12.9.16 19

76 729770/19.9.16 30183 G.Elavazhagan Veerapan 94/19.9.16 77 729767/19.9.16 30183 S.Ezhailarasan Nisha 95/19.9.16 78 729769/19.9.16 30183 N.Ilayaraja Veerammal 96/19.9.16 79 729771/19.9.16 30183 N.Ilayaraja Murugesan 97/19.9.16 80 729766/19.9.16 30183 N.Ilayaraja Rajmohan 98/19.9.16 81 729768/19.9.16 30183 S.Ezhilarasan Chandira 99/19.9.16 82 729773/20.9.16 30183 S.Ezhilarasan Kuppammal 102/20.9.16 83 729774/20.9.16 30183 S.Ezhilarasan Praba 103/20.9.16 84 729776/20.9.16 30183 N.Ilayaraja Karthick 104/20.9.16 85 729777/20.9.16 30183 N.Ilayaraja Rajmohan 105/20.9.16 86 729778/20.9.16 20000 R.Sasikumar Kolangiyappan 106/21.9.16 87 729779/23.9.16 10183 R.Rajarajan Rajarajan 107/23.9.16 Excess payment 88 729781/28.9.16 30183 N.Ilayaraja Kolangiyappan 108/28.9.16 Excess payment 89 729784/28.9.16 30183 G.Elavazhagan Aravinth 109/28.9.16 90 729783/28.9.16 30183 N.Ilayaraja Rajendran 110/28.9.16 91 729785/24.9.17 18153 S.Palaniyammal Sekar 1/17.8.17 – Excess payment/Full payment already made Total 2311439

3. IAY Special Schemes for 2013-14 and 2015-16: – i) Non recovery of funds released to cancelled houses. ii) Mis appropriation of funds Rs.39.07 lakhs. A scrutiny of IAY Special Scheme files for 2013-14 and 2015-16 maintained in the O/o. the Block Development Officer (VP), Keerapalayam Panchayat Union revealed that the administrative sanction orders and funds receipt orders were not available in the files. As per the progress reports, it was observed that the construction of houses under IAY Special Scheme was still pending completion as detailed below. No.of houses No.of houses No.of houses Period Scheme allotted completed Pending 2013-14 IAY Special 980 872 108 2015-16 Project 206 0 206 (in 2014-15 no IAY houses were allotted to Keerapalayam Block) In this Connection the following observations were made:- 1) The BDO (VP) in Lr.No.B2/593/17, dt.21.11.17 requested District Collector, Cuddalore to cancel 39 houses and issue revised sanction order for 33 different Panchayats / beneficiaries. The District Collector / Chairman DRDA, Cuddalore in Roc.No. A12/3333/2013, dt.24.04.2017 had cancelled 126 houses in Cuddalore District, including 10 houses at Keerapalayam and re-allotted to other Panchayats. In this connection the details of total Number of houses which got cancelled and the details of recovery of funds released to original beneficiaries by way of cash/cheque/ cost of materials etc., had not been obtained from concerned village panchayats. Due to this, the fact of recovery or other wise of funds released to cancelled houses was not intimated to audit. 2) Mis appropriation of funds: It was observed from the IAY files that the notices were issued to panchayat presidents of the following village panchyats to remit the amounts which were allegedly misappropriated by them as detailed below

Amount allegedly Sl.No Name of the Village misappropriated Rs. 1 C.Veerasolagan 210401 2 Thunisiramedu 3183142 3 Sengalmedu 194538 Total 3906970

On a test check of Thunisiramedu Village Panchayat accounts, it was observed that the funds were repeatedly transferred to some particular accounts(as per Bank Statement) viz., Account No.033131331519, Account No.0030784993853 etc., for which the ‘Advice for Payments’ were not received from the Block Development officer(VP). It was also noticed that the funds relating to the houses under construction were received from the DRDA in advance of actual requirement. Hence, the misappropriation of funds could not be noticed until reconciliation of accounts. The Audit Reports submitted by Dy.BDO (Audit), Keerapalayam block also did not highlighted the misappropriation if any occurred, so far. Action was not taken to reconcile all the IAY accounts maintained in village panchayats under the control of keerapalayam block and the details of recovery of amounts which were misappropriated was also not available. On this being pointed out it was replied that action would be taken to recover the funds released for construction of houses which were cancelled. It was also replied that the misappropriated fund would be recovered from the concerned Village Panchayat Presidents. Further it was also replied that the IAY Special Scheme accounts would be reconciled and the excess funds available would be surrendered along with accrued bank interest after completion of houses under progress. Further report is awaited.

PART - IIB 04. Delay in ‘Suo-moto’ regularization of unapproved layouts resulted in postponement of Revenue - Rs.1.27 crore. The Notification of ‘Regularization of unapproved plots and layouts Rules 2017’ under Section 113, read with section 122 of Tamil Nadu Town and country planning Act, 1971 was issued vide G.O.Ms.No.78, Housing and Urban Development (UD 4(3) Department, dated 04.05.2017. Under this Rule, the Government exempts all unapproved layouts, where any or all plots are sold and registered on or before the 20th October 2016 and all unapproved plots which were sold and registered on or before the 20th October 2016 from the operation of all the provisions of Tamil Nadu Town and Country Planning Act, 1971(Act35 of 1972). Under this rule (Rule 5(3), (4) &(5)) the competent authority for regularization viz, LPA/RPA /NTDA functioning under the control of DTCP should call for the list of unapproved layouts from the competent authorities of Local Bodies within 15 days of this notification and shall suo-moto prepare, approve and ‘give in-principle’ for layout frame work as existing on ground on receipt of lists furnished by the competent authorities of Local Bodies, but not applied by the layout promoters for regularization. The layout promoters shall rectify the deficiencies in such unapproved layouts and to comply with the conditions as directed by the competent authority concerned and pay the required fee and charges as prescribed in these rules. These Rules also provide for regularisation of individual plots on receipt of online applications and payment of applicable fees and charges. The applicable charges for Village Panchayat areas for reglarisation of plot/layouts as per G.O.(MS) No. 78, dt. 04.05.2017 read with G.O.(MS) No. 172, dt. 13.10.2017 are as detailed below: Regularisation Charges – Rs.30/- per Sq.m Development Charges – Rs.25/- per Sq.m A scrutiny of records and files maintained in the O/o. the Commissioner/BDO (VP), Keerapalayam Panchayat Union revealed that 1. there were no register/records maintained for recording the details of unapproved layouts in Keerapalayam Block. In the absence of such records the audit could not ascertain the total number unapproved layouts existing in the Block; 23

2. Even though the Notification was issued in 05/2017, there was no ‘Suo motu’ Regularisation activities taken up within the 15 days from the date of issue of notification as insisted by the Government Order. 3. After repeated correspondence on this subject received from LPA/DTCP, the BDO(VP) had furnished a list of 12 such unapproved layouts for regularisation to ADTCP, Villupuram Zone in 03/2018 vide Lr.no. B1/340/18, dt. 08.03.2018. The delay in submission of the list of unapproved layout resulted in postponement of realisation of revenue as detailed below:

Sl.No. Name of the Layout Habitation/lacation Area in Acres 1 Venkateswara Nagar Extn Thirupaninatham 0.66 2 Gasan Golden Nagar Kaliyamalai 4.00 3 Star City Nagar C.Melavannaiyur 6.94 4 Sri Lakshminagar Thirupaninatham 1.80 5 Sri Venkateswara Nagar Thirupaninatham 2.68 6 SKP Nagar Mazhavaranallur 2.00 7 Thillai Natarajan Nagar Kannangudi 3.45 8 Muthu Nagar Extn. Kannangudi 10.80 9 Muthu Nagar Kannangudi 12.50 10 Chandiranagar C.Veerasolagan 7.61 11 Sethu Venu Nagar Keerapalayam 3.23 12 A.V.Garden Keerapalayam 1.23 Total 56.9 56.9 acres = 230266.13 Sq.m. Total Area = 230266.13 Sq.m. Regularisation charges @ Rs.30/Sq.m. = Rs.69,07,983.90 Development Charges @ Rs.25/Sq.m. = Rs.57,56,653.25 Total = Rs.1,26,64,637.15 Further, it was also noticed that there was no individual plots which were regularised under this scheme in Keerapalayam Block and no revenue realised so far.

On this being pointed out, it was replied that early action would be taken to regularise the unapproved plots and the applicable charges would be collected and remitted into relevant head of account. Further report is awaited.

05. Transfer of Funds from Account No.II of C.Veerasolagan Village Panchayat Rs.11,77,697/-Records not produced. On a scrutiny of local fund Audit Report for 2015-16 it was noticed from para no. 28, and related records furnished by the village panchayat, in respect of C.Veerasolagan Village panchayat that an amount of Rs.11,77,697/- was transferred from account No.11040194723, SBI, Chidambaram( Account No.II, TNEB account) to a different account No.0035490351051, SBI, Chidambaram on 18/1/2016. In this regard, the cash books relating to the period of transfer was not furnished. The voucher proceedings for such transfer were also not furnished. From the bank statements furnished for the period up to 11/2017 it was observed that many debits were made from that account for which the cash book entries/vouchers were not furnished. The balance in the bank account as on 14.11.2017 was Rs.4,76,166/-. Bank statement for further period was not produced to audit. The reason for such transfer of funds was not stated and the expenditure made from this account was not justified with adequate documents and vouchers. On this being pointed out, it was replied that the connected records would be produced to audit at the earliest.

06. Locking up of IAY funds Rs.24.48 lakhs A Scrutiny of IAY scheme records maintained in the Keerapalayam Panchayat Union, revealed that there were three separate cash books and bank accounts maintained for operating IAY scheme funds at block level as detailed below:- Balance as of Sl.No Name of the Account 3/2018 IAY Cement & Material Account 1 837269 (I.B.Account No.529021861) IAY “NISHA” account 2 1038180 (I.B.Account No.859403650) IAY New Group house(I.B.Account 3 572285 No.850415086) Total 2447734

The IAY Scheme got discontinued in 2015-16 except IAY Special Project taken up in 2015-16 Since 2016-17 the scheme was renamed as PMAY(G) and separate bank accounts opened for operating PMAY(G)funds. In respect of IAY Special Projects (2013-14) and 2015-16,the funds were directly sent to village panchayat accounts by ‘DRDA’ by deducting the estimated cost for cement and steel. The cement / steel(material) required for construction were also procured by DRDA and stored at Block level office. The payments were made to beneficiaries at village panchayat level on receipt of payment advise issued by BDO(VP). The deduction for cost of material issued at block level is being made from the total estimated cost of Rs.1.20 lakh and the balance amount to be paid being indicated in payment advise. Hence funds retained in the above three IAY scheme accounts amounting to Rs.24.48 lakh was construed as locking up of funds. The funds locked up in these accounts was not reconciled with expenditure on houses taken up under IAY up to 2012-13 (as there were no houses allotted under IAY regular scheme from 2013-14) and the excess fund available was not surrendered to Government. On this being pointed out, it was replied that the IAY Scheme funds would be reconciled and excess funds available would be remitted to DRDA/Director. Further report is awaited.

07. CMSPGH Scheme – Works Not Completed and Non-Installation of Solar Power

Panel in construction of Green Houses. In GO (Ms.)No.46, Rural Development and Panchayat Raj (SGS1)Department, dated 17.08.2011, orders were issued for construction of 3 lakh houses for a period of 5 years at the rate of Rs.60,000 per house per year from 2011-2012 to 2015-2016 under the Chief Minister’s Solar Powered Green House Scheme (CMSPGHS) and a detailed Guidelines were also issued for the implementation of the scheme. Further in GO MS No 24 RD&PR Dept dt 24.2.17 orders were issued for implementation of the CMSPGH Scheme for the year 2016-17 for construction of 20000 houses. The Scheme was launched of the benefit for the people who are in below poverty line in rural areas. Each house is built with an area of 300 Sq.ft. at an unit cost of 2.1 lakh per house @ 1.8 lakhs for construction and Rs. 30,000 for installation of solar powered light. The unit cost for the Solar Powered Green House was enhanced from Rs.1.80 lakh to Rs. 2.10 lakh from the year 2013-14 onwards. Special house scheme for weavers in 365 sq.ft at an unit cost of Rs.2.60 lakh per house @ Rs.2.30 lakhs for construction and Rs.30,000 for installation of Solar powered lights was also implemented. The amount of Rs.30,000/- per house for SPV Home lighting system would be drawn by the Commissioner of Rural Development & Panchayat Raj and deposited with TEDA. However during the year 2016-17 the installation of Solar Power Lighting System in the houses was entrusted to Rural Development and Panchayat Raj Department instead of TEDA. People who were categorised as BPL with own household patta for their sites are eligible and the beneficiaries were selected through Grama Sabha. No land acquisition was envisaged under this scheme. The community wise allocation was 29% to SC, 1% to ST and 70% to Others. Each house was built with 300 Sq. ft. with the living room, bed room, kitchen, sit out and toilet. Each house was provided with 5 CFL Lamps one each in bed room, living room, kitchen, toilet and sit out. Wherever possible, toilet was constructed by dovetailing fund from TSC. To ensure uniformity no change in type design was permitted. On a scrutiny of records in respect of implementation of the Solar powered Green House by Block Development Officer, Keerapalayam it was noticed that construction of 188 Green Houses were taken up during the years from 2014-15 to 2017-2018 as detailed below:- 27

Estimated Expenditure No. of houses to be House Houses Under Year cost (Rs. in incurred (Rs. in provided with Solar taken up completed progress lakh) lakh) Lighting 2014-15 103 103 0 185.40 185.40 0 2015-16 42 42 0 75.60 75.60 0 2016-17 36 0 36 64.80 9.52 (for 10 36 houses details enclosed)*** 2017-18 7 0 7 12.60 0.96(for 4 7 houses details enclosed)*** Total 188 145 43 338.4 271.48 43 *** Work Expenditure Prescribed To be Name of the Date of Sl.No order incurred time as per completed Beneficiary/ House Completion Date (Rs) work order on 2016-17 1 Venkatesan 01.09.17 118855 13.07.17 2 Balasubramaniyan 21.08.17 71889 20.11.17 3 Ramalingam 21.08.17 118855 20.11.17 4 Senthil 21.09.17 118855 20.11.17 5 Indira 01.09.17 71889 30.11.17 6 Sakthival 31.10.17 118855 3 Months 30.01.18 7 Anbazhagan 03.10.17 118855 02.01.18 8 Selvaraj 29.11.17 118855 28.02.18 Not 9 Ramesh 03.10.17 47859 02.01.18 Completed 10 Moorthy 28.12.17 47859 27.03.18 Total 952626 *** 2017-18 1 Kalaivani 28.12.17 47859 27.03.18 2 Rajendiran 09.01.18 47859 08.04.18 3 Months 3 Raja 28.12.17 0 27.03.18 4 Vageesanpillai 07.12.17 0 06.03.18 Total 95718

In this connection the following observations were made on a test check of works carried out under the Scheme. 1. During 2016-17 and 2017-18, 36 houses and 7 houses respectively were not completed though the same had to be completed within 3 Months as per the work orders issued and even after incurring an expenditure of Rs.10.48 lakh. 2. During the period 2016-17 and 2017-18, out of the constructed 188 houses, in 43 houses solar power lighting was yet to be provided. The delay in completion of green houses and non-installation of solar powered lighting leads to non achievement of objective of the scheme and also the beneficiaries were deprived of the facility of utilizing green energy at free of cost instead of incurring expenditure towards conventional electricity charges. This was brought to notice for necessary remedial action. In reply, it was replied that the green houses taken up would be completed at the earliest and solar power panel installation would be installed at the earliest. Further report is awaited regarding the installation and continuous functioning of solar panels.

08. Nutritious Meals Programme:- 1) Non provision of advance funds for feeding charges resulted in non ascertaining of provision of slandered food. 2) Non reconciliation of accounts. Under Puratchi Thalaivar MGR’s Nutritious Meals Programme (NMP) the mid day meals was being provided to students through 106 noon meal centers of Elementary / High schools of the Government / Panchayat Union schools functioning under the jurisdiction of Keerapalayam Bolck. As per the “NMP” guidelines, the feeding charges required for a quarter of a year should be drawn as advance from social welfare department through P.A (Noon Meals) to District Collector and disbursed to the Noon Meal Centers. At the end of the quarter, the advance drawn should be adjusted by submitting bills / vouchers for the actual expenditure based on the number of students who actually consumed food. A scrutiny of NMP records and accounts revealed that. 1) No advance funds were drawn from Social welfare department and disbursed to Noon Meal Centers for the past 3 years (2015-16 to 2017-18). The funds were drawn and disbursed belatedly after completion of the quarter. The grant amount of Rs.18,77,650 received on 05.09.2017 towards feeding charges was disbursed on 28.09.2017 to Noon Meal Centers for I & II quarter of 2017-18. Thereafter, no funds were disbursed to the noon meal centers. Since, no funds were provided to noon meal centers for 3rd and 4th quarter of 2017-18, the poor noon meal center employees (Organisers) were forced to utilize their own funds for provision of mid day meals. As such, the fact of provision of quality food to beneficiaries could not be ascertained. 2) The grants received were being operated through Indian Bank account No.6484279442 However, the balances as per cash books had not been reconciled with the balances as per pass books. The cash books were not closed every month and the differences with bank accounts if any, had not been endorsed by the BDO(BP) from 2014-15 to 2017-18. Action taken in this regard was called for. On this being pointed out, it was replied that the noon meal programme accounts would be closed regularly and reconciled with Treasury/Bank. It was further stated that the feeding charges required for succeeding quarter would be obtained well in advance and the funds so obtained would be disbursed to the Noon Meal Centres soon after the receipts of advances. Further report is awaited. 30

09. Non – Recovery of Various advances – Rs.3.10 crores

A Scrutiny of register of Advances revealed that various advances made to suppliers of other advances etc., amounting to Rs.3.10 crore had not been recovered till date. Reason for non recovery of outstanding advances ever after more than 20 to 25 years was not stated to audit.

The records relating to the following. 10 cases of advances were called for test Check. and Scrutinized . The reason for the non-adjustment / recording of the advances amounting to Rs. 21,20,981/-(10 cases) was called for.

Sl.No Name of (Adv.) Unadjusted amount 1 Election Fund 1000000 2 Thane Scheme 526810 3 LF VI/ Ac. 100000 4 Bore well 59128 5 Bio Gas 42350 6 LF VI A/c. 100000 7 Boker (comp) Mahrres 36827 8 BIO Gas, Trrichy 42350 9 Cruch 49000 10 Thane Staff Salary 164516 Total 2120981

On this being pointed out, it was replied that the unadjusted advances would be adjusted by obtaining the bills. Further report is awaited.

10. Non rectification of differences in the accounts for long period.

A scrutiny of cash books, treasury scrolls and pass books relating to the accounts maintained by O/o. the Commissioner, Panchayat Union, Keerapalayam revealed that the differences in the following accounts had not been rectified for a long period as detailed below while under taking reconciliation of accounts. (as per Reconciliation statement for 03/2018)

I. General Fund account LF-I) Amount added:- 1. Co-op cheque cancelled but not taken into account- Rs. 4642.00 (Dates not disclosed in Reconciliation Statement) 2. 31.03.09 remittance not taken into credit - Rs. 72.00 3. 07.12.09 excess receipts included by treasury - Rs. 1532.00 4. 12.03.12 P.F. remittance wrongly taken in to credit in G.F. Account - Rs. 49500.00 5. Closing Balance and Opening Balance Treasury Difference for 04/2011 - Rs. 409052.00 Amount Deducted 1. 08/12 –Treasury difference - Rs. 794711.70 2. 2010-11- Treasury difference - Rs. 121311.70 3.18.09.09- remittance not taken into credit by treasury - Rs. 39936.00 4. 18.09.09- remittance shown as expenditure by treasury - Rs. 39936.00 5. 09.10.09 – remittance not taken into credit - Rs. 1388.00 6. Ch.No.460225/01.10.09 – Debited Rs.13750 insted of Rs.1375 - Rs. 12375.00 7. 08/12 Excess deduction by Treasury - Rs. 9800.00 8. 09/12 and 10/12 CB & OB Difference - Rs. 569965.00 32

TPF – Provident Fund account Amount added;-

1. Treasury Difference 12/85 - Rs. 1500.00 02/87 - Rs. 50.00 12/88 - Rs. 60.00 05/89 - Rs. 1770.00 08/93 - Rs. 4430.00 2. 03/04 Remittance not taken Excess credit by Treasury -Rs. 9745.00 3. 07/12 Remittance for which details not known -Rs. 49500.00 Amount Deducted 1. 01/08 –Treasury Difference - Rs. 13600.00 2. 01/13 - Treasury Difference - Rs. 10130.00 II. MLACDS account (LF- IX) Amount added;- Treasury Difference - Rs. 42366.00 (Details not known)

The reason for non – rectification of the differences which occurred in the accounts, in the following month soon after reconciliation of accounts for a month was called for. Action taken to rectify the long pending differences between Treasury figures and departmental figures was also called for. It was replied that the differences in the accounts would be examined and rectified by the concerned treasury. Further report is awaited.

11. Inordinate delay in execution of kitchen shed works at Noon Meal Centers - Non Achievement of scheme objective.

Under National Programme for Mid Day Meals Scheme(NP-MDMS), construction of kitchen shed with store rooms were sanctioned to Noon meal centers of Keerapalayam Panchayat Union as detailed below:-

No. of kitchen shed allotted & No. of works No. of works Period A.S .No & Date Date of work completed pending order 2010-11 14/28.11.13 Roc.PD/1/4153/2010 Dt.01/2013 2010-11 20/28.11.13 Roc.PD/1/4153/2010 Dt.30.05.2013 2010-11 1/28.11.13 Roc.PD/1/4153/2010 Dt.08/2013 33 25 2012-13 10/24.6.14 Roc.PD/1/8106/2013 Dt.17.12.2013 2012-13 01/09.02.17 Roc.PD/1/9933/2013 Dt.15.12.2016 2013-14 12/24.6.14 Roc.PD/1/806/2013 Dt.13.02.14 Total 58 Works 33 25

In this regard, it was observed that the work orders were issued to the Road Inspectors(RI) of the Keerapalaym Panchayat Union with the due dates for completion within 2 months / 3 months. However, only 33 works were completed and 25 works had not been completed even after completion of 1 year to 4 years from the date of work order. Non completion of kitchen shed works had not resulted in non achievement of objective of the scheme.

Action taken in this regard was called for. On this being pointed out, it was replied that the pending works of kitchen shed with store room would be completed at the earliest. Further report is awaited.

12. Non recovery of SPF 2000 Scheme Contribution to be recovered Rs.1,08,850/- As per G.O.Ms.No.504, pension Department date 02.11.2000, the Government employees appointed on or after 01.10.2000 are covered under the New SPF Scheme 2000 and they have to contribute Rs.70/-per month towards SPF contribution . This was communicated in Lr.No.75910/per /2000-2, Dated 02.11.2000 of the Spl. Secretary to the Government. It was observed from pay bill register that SPF contribution of Rs.70/-from the following officials appointed after 01.10.2000 had not been deducted, this had resulted in short recovery. Action may be taken to recover the SPF contribution amount of Rs.1,08,850/- from the Government Servants concerned and remitted into Government account under intimation to audit. On this being pointed out, it was replied that the SPF contribution would be recovered from the employees who joined after 1.10.2000 and the same would be remitted into Government Account. Further report is awaited.

13. Non-Preparation of Annual Budget As per Tamil Nadu Panchayat Act, 1994, section 192, budget of the following year has to be passed by the Council and submitted to the District Collector, before 30th of the November for approval and as per TNFC –Vol-I, Article-3 & 40, the expenditure has to be incurred only on the items sanctioned in the budget. However, it was noticed that Keerapalayam, PUC had not passed the Annual Budget for the years from 2014-15 to 2017-18 in the previous years as per the provisions of Act. Non-compliance to the provisions of the Act and codes was brought to notice. Moreover, expenditure incurred without passage of budget would amount to having expended without appropriate authority sanction. On this being pointed out, it was replied that the budget would be prepared in future. Further report is awaited.

14. Non Coverage of Noon Meal Employees under EPF Act 1952

Noon Meal centers were established in Panchayat Union, Keerapalyam in 05/2015 as per G.O.Ms.No.79, MA & WS Department Dated 31.05.2013 As per Employees Provident Fund and Miscellaneous Provision Act, 1952, the employees of noon meal should be covered under the Act, in the form of provident fund, pension and Insurance benefits, etc., A Scrutiny of pay bills in respect of Noon Meal employees(106 employees) revealed that there was no deduction made towards Employees provident fund from 2003 to till date. This lapse was brought to notice. On this being pointed out, it was replied that the EPF contribution would be deducted from NMP employees after obtaining the EPF Nos. in respect of the NMP employees. Further report is awaited.

15. Un claimed Lapsed Deposits Rs. 69,203/-

As per Tamil Nadu Financial Code (TNFC) Vol. I the unclaimed deposits lapses to Government after Completion of 3 years from the date of final payment

A scrutiny of deposits register revealed that the following deposits recovered from contractors for taking up various works were kept unclaimed for more than 3 years ever after completion of work and final payment mode.

The cases mentioned below amounting to Rs.69,203/- were not examined for release of deposits to the Contractor and the unclaimed deposits were not lapsed under proper authority and credited to the General fund Account.

Sl. Name of suppliers Vr. No. and date Amount No. S/Shri Rs. 1 Jamunarani 67/11.5.2012 5,000 Jamunarani 1,3 & 5/11.5.2012 24,000 2 3 P. Karthik 25/5.2012 9,703

4 T. Natarajan 4 & 5/4.2012 10,540

5 S. Krishnamoorthy 25/6.2012 3,390

6 S. Jothiraj 26/6.2012 4,180

7 S. Jothiraj 35/6.2012 4,790

8 T. Natarajan 52/12.2012 7,600

Total 69,203

On this being pointed out, it was replied that the unclaimed deposits would be lapsed to General Fund Account. Further report is awaited.

For Sr. Deputy Accountant General/ SS II