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Report of 2013 Table of Contents Reference to Description Paragraphs Page/Remarks Preface vii Chapter-1 Introduction on Social, General, Revenue and Economic Sectors General Introduction 1.1 1 Chapter-2 Social, General and Economic Sectors (Non-PSUs) General Introduction 2A 3 Audit mandate 2.1 3 Planning and conduct of Audit 2.1.1 3 ([SHQGLWXUHSUR¿OHRIWKH6WDWH*RYHUQPHQW 2.1.2 4 Lack of responsiveness of Government to Audit 2.1.3 5 Audit Findings 2B 7 PERFORMANCE AUDIT RURAL DEVELOPMENT DEPARTMENT 0DKDWPD*DQGKL1DWLRQDO5XUDO(PSOR\PHQW*XDUDQWHH 2.2 11 6FKHPH THEMATIC AUDIT Election Department 2.3 39 DEPARTMENT OF LABOUR )XQFWLRQLQJRI8WWDUDNKDQG%XLOGLQJDQG2WKHU 2.4 47 Construction Workers Welfare Board WOMEN EMPOWERMENT AND CHILD DEVELOPMENT DEPARTMENT ,QWHJUDWHG&KLOG'HYHORSPHQW6HUYLFHV 2.5 58 AUDIT OF TRANSACTIONS Social Welfare Department Unfruitful expenditure 2.6 71 Blockade of fund 2.7 72 Department of Sports Avoidable extra expenditure 2.8 73 i Reference to Description Paragraphs Page/Remarks Department of Higher Education Avoidable cost escalation 2.9 75 Public Works Department Undue advantage to contractor 2.10 76 Irregular expenditure 2.11 77 Avoidable extra expenditure 2.12 78 CCO BASED AUDIT OF A GOVERNMENT DEPARTMENT Department of Horticulture 2.13 79 Chapter-3 Revenue Sector General Introduction 3C 113 Audit mandate 3.1.2 113 Planning and conduct of audit 3.1.3 113 Trend of revenue receipts 3.1.4 113 9DULDWLRQEHWZHHQWKH%XGJHW(VWLPDWHVDQG$FWXDOV 3.1.5 117 Cost of collection of revenue receipts 3.1.6 119 $QDO\VLVRIFROOHFWLRQRIWD[UHYHQXH 3.1.7 119 $QDO\VLVRIDUUHDUVRIUHYHQXH 3.1.8 120 Arrears in assessment 3.1.9 121 Evasion of Tax 3.1.10 121 'LVSRVDORI5HIXQGFDVHV 3.1.11 121 5HVSRQVHRIWKH'HSDUWPHQWV*RYHUQPHQWWRDXGLW 3.1.12 122 )DLOXUHRI+HDGRI'HSDUWPHQWWRHQIRUFHDFFRXQWDELOLW\ 3.1.13 122 DQGSURWHFWLQWHUHVWRIWKH6WDWH*RYHUQPHQW Departmental Audit Committee Meetings 3.1.14 123 5HVSRQVHRIWKH'HSDUWPHQWVWRWKHGUDIWDXGLWSDUDJUDSKV 3.1.15 123 )ROORZXSRQWKH$XGLW5HSRUWVVXPPDULVHGSRVLWLRQ 3.1.16 124 3RVLWLRQRI,QVSHFWLRQ5HSRUWV 3.1.17 124 5HFRYHU\RIUHYHQXHRIDFFHSWHGFDVHV 3.1.18 124 5HVXOWVRIDXGLW 3.1.19 125 &RQWHQWVRIWKH5HYHQXH&KDSWHURIWKLVUHSRUW 3.1.20 125 ii Reference to Description Paragraphs Page/Remarks Audit Findings 3D 126 PERFORMANCE AUDIT COMMERCIAL TAX DEPARTMENT $GPLQLVWUDWLRQRI9$7LQ8WWDUDNKDQG 3.2 127 DEPARTMENT CENTRIC COMPLIANCE AUDIT 6WDWH([FLVH'HSDUWPHQW 3.3 152 Chapter-4 Economic Sector (PSUs) General Introduction 4E 163 Audit Mandate 4.1.2 163 ,QYHVWPHQWLQ6WDWH368V 4.1.3 164 %XGJHWDU\RXWJRJUDQWVVXEVLGLHVJXDUDQWHHVDQGORDQV 4.1.4 165 5HFRQFLOLDWLRQZLWK)LQDQFH$FFRXQWVRIWKH*RYHUQPHQW 4.1.5 167 3HUIRUPDQFHRI3XEOLF6HFWRU8QGHUWDNLQJV 368V 4.1.6 167 $UUHDUVLQ¿QDOLVDWLRQRIDFFRXQWV 4.1.7 170 :LQGLQJXSRIQRQZRUNLQJ368V 4.1.8 171 Accounts Comments and Internal Audit 4.1.9 172 ,QWHUQDO$XGLW,QWHUQDO&RQWURO6\VWHP 4.1.10 174 6WDWXVRISODFHPHQWRI6HSDUDWH$XGLW5HSRUWV 6$5V 4.1.11 175 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DOVREHHQLQFOXGHGZKHUHYHUQHFHVVDU\ 8. 7KH$XGLWKDVEHHQFRQGXFWHGLQFRQIRUPLW\ZLWKWKH$XGLWLQJ6WDQGDUGV LVVXHG 0DUFK E\WKH&RPSWUROOHUDQG$XGLWRU*HQHUDORI,QGLD vii Chapter 1 Introduction on Social, General, Revenue and Economic Sectors 1.1 General Introduction The Government departments have been grouped in Social Sector, General Sector, Revenue Sector and Economic Sector (Non-PSUs) and Public Sector Undertakings of all Sectors for the purpose of audit. This Report covers audit observations on Social Sector, General Sector, Revenue Sector and Economic Sector of both Non-PSUs and PSUs. Chapter-2 of this Report relates to Social, General and Economic Sectors (Non-PSUs). Under Sectoral Re-organisation, there are 32 Government departments and 38 Autonomous Bodies in the Social Sector, 20 Government departments and three Autonomous Bodies in the Economic Sector and 23 Government departments and one Autonomous Body in the General Sector in the State, headed by Additional Chief Secretaries/ Principal Secretaries/ Secretaries/ Managing Directors/ Directors, which are audited by the Principal Accountant General (Audit), Uttarakhand. 7KLV&KDSWHUFRQWDLQVDEURDGSUR¿OHRIWKH$XGLWHGHQWLWLHVRIWKH6WDWH*RYHUQPHQW 'HSDUWPHQWVDQGDXWRQRPRXVERGLHVH[SHQGLWXUHSUR¿OHXQGHUGLIIHUHQWVHFWRUVWR these departments/ bodies during the last three years (2009-12) and the coverage of DXGLWHGHQWLWLHVE\$XGLWGXULQJ%HVLGHVWKH¿QGLQJVRISHUIRUPDQFHDXGLW thematic audit, observations on audit of transactions in Government Departments DQG$XWRQRPRXV %RGLHV DQG UHVXOWV RI &KLHI &RQWUROOLQJ 2I¿FHU &&2 EDVHG Audit of a Government Department are also included in this Chapter. Chapter-3 of this Report relates to Revenue Sector. Under Sectoral 5HRUJDQLVDWLRQWKHUHDUH¿YHGHSDUWPHQWV &RPPHUFLDO7D[6WDWH([FLVH6WDPS and Registration, Transport, Entertainment Tax) of the Government which have been included under the Revenue Sector. These relates to Tax Revenue. The other departments fall under Social Sector, General Sector and Economic Sector which contribute Non-Tax Revenue. The major areas of Tax Receipts are Taxes on sale/ trade, Taxes on services administered by the Commissioner Commercial Tax, State Excise administered by the Excise Commissioner, Stamp Duty and Registration )HHV7D[HVRQ9HKLFOHVHWF$XGLWRIXQLWVRIWKHDERYH¿YHGHSDUWPHQWVRXWRI total 239 was conducted by the Revenue Sector during the year 2011-12. 7KLV&KDSWHUFRQWDLQVDEURDGSUR¿OHRIWKH$XGLWHGHQWLWLHVXQGHU5HYHQXH6HFWRU the tax and non-tax revenue receipts of the State Government, analysis of arrears RIUHYHQXHHWF%HVLGHVWKH¿QGLQJVRISHUIRUPDQFHDXGLWDQGGHSDUWPHQWFHQWULF compliance audit relating to Revenue Sector are also included in this Chapter. Chapter-4 of this Report relates to Economic Sector (PSUs). Under Sectoral
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