Annual Review Report on the Working of Treasuries, Pay and Accounts Office, Ibrahimpatnam (Vijayawada) in the State of Andhra Pradesh for the Year 2017-18
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ANNUAL REVIEW REPORT ON THE WORKING OF TREASURIES, PAY AND ACCOUNTS OFFICE, IBRAHIMPATNAM (VIJAYAWADA) IN THE STATE OF ANDHRA PRADESH FOR THE YEAR 2017-18 ACCOUNTANT GENERAL (A&E) ANDHRA PRADESH, HYDERABAD Preface The Treasuries are primarily responsible for preparation and correctness of initial and subsidiary accounts as well as ensuring regularity of financial transactions in accordance with applicable codes, manual and administrative procedures relating to such accounts and transactions. To ensure internal controls in financial reporting and compliance to rules and regulations in financial transactions inspection of District Treasuries is periodically undertaken under Section 10, 13 and 17 of CAG (DPC) Act, 1971 read with Regulations on Audit and Accounts 2007. This Annual Review Report on the working of Treasuries and Pay and Accounts Office, Ibrahimpatnam @ Vijayawada in the State of Andhra Pradesh for the year 2017-18 is prepared as required under Paragraph 20.17 of Manual of Standing Orders (A&E) Volume I. The Report includes deficiencies noticed during compilation of accounts and local inspections of treasuries conducted during 2017-18 for improving the functioning of treasuries. The Report is in four Parts. Part 1: Introduction Part 2: Defects noticed during compilation and verification of accounts Part 3: Defects and Irregularities noticed during inspection of Treasuries Part 4: Annual Review Report on working of Pay and Accounts Office, Ibrahimpatnam @ Vijayawada. The review is intended to draw the attention of the State Government and Departmental Authorities to the delays in rendering of accounts, short comings in maintenance of initial accounts, other defects noticed during the course of compilation of accounts. Incidentally, irregularities during the local inspection of Treasuries such as fraudulent drawal of money by the treasury officials from CINB account of Treasury to the individual account and drawal of pensions of ceased/transferred pensions by inducing imposters to individual accounts are also brought to notice. I hope Government and DTA will take appropriate remedial measures to improve the functioning of Treasuries and Accounts Department by exercising effective internal controls. (ANINDYA DASGUPTA) Accountant General (A&E) i Table of contents Contents Page No. Sl.No i) Highlights (iii) Part-1: ii) 1 Introduction Part-2: iii) Defects noticed during compilation and 3 verification of accounts Part-3: iv) Defects and other irregularities noticed during 9 inspection of treasuries Part-4: Annual Review Report on working of 42 v) Pay and Accounts Office, Ibrahimpatnam (Vijayawada) ii HIGHLIGHTS Sl. Para Gist of Para No No 1 487 inspection reports containing 2,125 paras were outstanding by the 3.1.4 end of 31-3-2018 2 55,656 items of vouchers amounting to 2.4 ₹ 3186.96 Crore are wanting from various Treasuries 3 Delay in adjustment of advances on 1,223 items of AC bills amounting 2.5 to ₹.215.10 Crore 4 Adverse balance under Deposit Accounts amounting to ₹.923.30 crore 2.6.2 5 Misclassification under MH 8009 Regular GPF Account - 40 items of Class IV GPF, CPS, ZPPF debits amounting to ₹.85.11 lakh and 3117 2.8.3 items of credits amounting to ₹.3.12 Crore 6 Undisbursed amount lying idle in CINB Account - ₹.9078.81 lakh 3.2.1(ii) 7 Non-lapsing of Civil Deposits under ‘B’ Category - ₹.38.24 crore 3.3.1 8 Unadjusted balances and irregularities in Contributory Pension Scheme 3.3.10 (CPS) – ₹.29.96 crore (ii)(a) 9 Short credit to MH 8342-117-04-002 - ₹.3.97 crore at DTO, 3.3.10 Machilipatnam (vi) 10 Excess payment of pensions amounting to ₹. 223.89 lakh was noticed in 3.4.1 Sub-Treasuries 11 Fraudulent payment of pension in respect of 14 spurious PPOs issued by 3.4.2 Local Fund authorities - ₹.4.22 crore in Krishna District 12 Excess payment of pension of ₹.1.14 crore in 12 PPOs at DSTO, 3.4.3 Seethammadhara, Visakhapatnam 13 Non-compliance of the effective date in GO 315 resulted in excess 3.4.4 pension payment - ₹. 1.11 crore 14 Irregular payment of Honorarium to the contract supervisors- ₹ 1.73 3.6.11 crore 15 Retention of unused stamps worth of ₹ 121.74 crore 3.6.16 16 Minus LoCs amounting to (-) ₹. 47.39 Crore in PD portal 3.6.19 iii Annual Review Report-2017-18 PART-I Introduction 1.1 Treasuries and Sub-treasuries in Andhra Pradesh function under the administrative control of the Director of Treasuries and Accounts (DTA), Andhra Pradesh, Ibrahimpatnam, Vijayawada under the Finance Department of the State Government of Andhra Pradesh. In addition to the treasuries, the following authorities also attend to treasury functions and/or render accounts to this office. Pay and Accounts Officer (PAO), Ibrahimpatnam. Pay and Accounts Officer (Andhra Pradesh Bhavan), New Delhi. Andhra Pradesh State Legislature, Amaravati 1.2 The Treasury is the nucleus of the accounting system of Government. It maintains records of financial transactions and conducts necessary checks on the flow of Funds as per the provisions contained in AP Treasury Code, financial rules and various executive instructions issued from time to time. The State is divided into 13 districts and at district level, the District Treasury acts as the receiver and disburser of the State Government funds besides rendering monthly accounts to the Accountant General (AG) (A&E) who in turn compiles the State Government’s accounts on monthly and annual basis. 1.3 Computerisation in the State treasuries started initially with primary compilation of accounts using ‘C-TAS’ package developed on ‘COBOL’ in 1990 with the help of Andhra Pradesh Technological Services (APTS) Ltd. In April 2009, APTS Ltd., rolled over to Integrated Management of Pay and Accounts and Treasury department (IMPAcT) package by re-engineering the ‘C-TAS’ package using web based technologies. The Government had implemented electronic payments for all transactions processed through treasuries by using Corporate Internet Banking (CINB) account and permitted the Department to open CINB accounts in all treasuries in order to facilitate transfer of funds to the beneficiaries directly through ‘IMPAcT’ package covering all payments including salaries, pensions, payments to third parties (suppliers, utility payments etc.) which can be accessed through ‘https://treasury.ap.gov.in’. Government of Andhra Pradesh has also implemented another IT project called Comprehensive Financial Management System (CFMS) from 02-04-2018 onwards in place of existing treasury IT applications like IMPAcT, HRMS covering all internal stakeholders in the Government like Finance Department, Administrative Departments, Heads of Departments, and AG (A&E), with interface with RBI through 3 accounts of RBI i.e one for e-receipts, one for GST receipts and one for e-payments. However, the Pension records/data - 1 - Annual Review Report-2017-18 are being maintained through earlier Pension Package i.e IMPAct module in CFMS even though payments are being made through CFMS. Organisational set-up: 1.4 The hierarchical structure of the Department of Treasuries and Accounts is as follows: ORGANISATIONAL SET-UP Finance Department Director of Treasuries and Pay & Accounts Office, Andhra Accounts (DTA) Pradesh, Ibrahimpatnam District Treasuries (13) Divisional Sub Treasuries Sub Treasuries (42) (154) All the 42 Divisional Sub Treasuries and 154 Sub-Treasuries functioning in the State are Banking Treasuries (Details vide Annexure 1.1 and 1.2). Scope and Methodology of Treasury Inspection 1.5 The inspection of the District Treasuries and sampled Sub-treasuries covering the period 2017-18 was conducted in 2017-18. The inspection was carried out in accordance with auditing standards prescribed by the Comptroller and Auditor General of India.The scope of the inspection was twofold - financial audit and compliance audit under the themes - Financial Reporting, Salary payments and Supplementary bills including payments relating to Scholarships, Pensions and Class IV GPF. - 2 - Annual Review Report-2017-18 PART-II Defects noticed during compilation and verification of accounts Compilation Process: 2.1 The A.G (A&E), AP is responsible for compiling the accounts of the State Government of Andhra Pradesh. Each District Treasury furnishes accounts to AG (A&E) ‘Sub Account’ wise i.e. for each department and consolidated ‘Main Accounts’ wise i.e. incorporating the total receipts and charges for the entire district covering all government departments in the district. Each main account is supported by consolidated schedule of deductions corresponding to the schedules of each sub account, a consolidated list of payments and memorandum of reconciliation making the totals of the list of payments and the amount in the account and in the schedule of deductions agree. Along with the Accounts, the Treasury furnishes all the supporting documents including the vouchers. The A.G (A&E) office receives the main accounts from all the District Treasury Offices. The Main Accounts are verified with the respective Sub Account to see that the Major Head figures shown in the Main Accounts tally with the Major Head totals shown in the Sub Accounts for each of the Major Heads. The Main Accounts is then sent for preparation of Monthly Civil Accounts (MCA) and Sub Accounts are sent to respective Compilation Sections of the Accounts Wing for detailed compilation. Defects in compilation and verification of accounts Delay in rendition of Monthly Accounts: 2.2 Completeness of accounts means that all transactions relevant to the year/month of accounts are included leaving no transaction over looked. Accounts comprising of wanting sub-accounts, vouchers, and schedules effect the completeness objective. Timely rendition of monthly account by the District Treasuries with supporting documents is a pre requisite for the preparation of MCA and monthly expenditure report. Delay in rendition of monthly accounts by District Treasuries adversely affects the timely rendition of the MCA to the State Government by the Office of A.G (A&E).