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Chapter Ii Performance Audits Planning Department

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Chapter Ii Performance Audits Planning Department CHAPTER II PERFORMANCE AUDITS PLANNING DEPARTMENT 2.1 Implementation of Mahatma Gandhi National Rural Employment Guarantee Scheme Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is being implemented in Maharashtra since February 2006 with the objective of enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every person who volunteer to do unskilled manual work. Audit examined the records of 240 Gram Panchayats in 24 blocks of nine districts of Maharashtra for the period 2007-08 to 2011-12. It was observed that eight of the nine test-checked districts did not prepare the five year District Perspective Plan and the Annual Development Plans were also unrealistic. Delay in establishing separate Commissionerate for the Scheme, vacancies in the key posts, non-appointment of full-time dedicated officials and support staff, delay in imparting training to key personnel etc. impacted the implementation of the Scheme. The demand for works was extremely low in the test-checked districts. Only 0.42 per cent to 3.22 per cent of the beneficiaries in the test-checked districts were provided 100 days of employment during 2007-12. There were delays in execution of works. A number of works were abandoned leading to unfruitful expenditure and works which were not permissible under the Scheme were also undertaken. Project completion reports were not accompanied with report of the Vigilance and Monitoring Committees or photographs of the completed works. There were delays in the payment of wages and unemployment allowance and differential in wages due to revision in wage rates was also not paid. There were shortfalls in verification/inspection of works and social audits conducted. The Management Information System was not reliable. The key findings are highlighted below. Highlights Eight out of nine test-checked districts did not prepare long-term District Perspective Plans while the Annual Development Plans were unrealistic as the quantum of employment actually generated against the estimated demand was substantially low. (Paragraph 2.1.7.1) There was delay of more than six years in notifying the State Employment Guarantee Council Rules. The Mahatma Gandhi National Rural Employment Guarantee Scheme Commissionerate was established belatedly in September 2011 and was yet to commence full-fledged functioning in view of vacancies in the key posts. (Paragraphs 2.1.7.2 (b) and 2.1.7.3(a)) Audit Report (Local Bodies) for the year ended March 2012 Absence of full-time dedicated Programme Officers and support staff at block and Gram Panchayat levels coupled with non-imparting of training to key personnel impacted the implementation of the Scheme. (Paragraphs 2.1.7.3(b) and (c)) The demand for work was extremely low in the nine test-checked districts and ranged between 0.29 per cent and 48.45 per cent during the period 2007-12. Only 0.42 per cent to 3.22 per cent of the beneficiaries in the test- checked districts were provided 100 days of employment during the same period. (Paragraph 2.1.7.5) Works which were not permissible under the Scheme were undertaken leading to irregular expenditure of ` 47.19 crore. There were delays in execution of works and a number of works were abandoned leading to unfruitful expenditure of ` 34.28 crore. (Paragraphs 2.1.7.6(a) and (b)) There were delays in the payment of wages and unemployment allowance to the beneficiaries and differential wages due to revision in wage rates was also not paid. (Paragraph 2.1.7.7) The monitoring and evaluation mechanism was inadequate. There were shortfalls in verification/inspection of works and social audits conducted. The Management Information System database did not provide assurance on its reliability. (Paragraphs 2.1.7.8(a) and (b), 2.1.7.11(a) and 2.1.7.12) 2.1.1 Introduction The Maharashtra Employment Guarantee Act was enacted in 1977 with the objective of securing the right to work by guaranteeing employment to all adult persons who volunteered to do unskilled manual work in rural areas in the State of Maharashtra. The Government of Maharashtra (GoM) introduced the Employment Guarantee Scheme (EGS) from 26 January 1979. The National Rural Employment Guarantee Act (NREGA) was enacted in 2005 with the objective of enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household adult member who volunteered to do unskilled manual work. The work guarantee was also to serve other objectives such as generating productive assets, protecting the environment, empowering rural women, reducing rural-urban migration and fostering social equity among others. The Act was renamed (October 2009) as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Act provided a right to the rural households to register themselves with the local Gram Panchayats (GPs) for employment5. Work was to be provided within 15 days from the date of demand, failing which the State Government was required to pay 5 Works like water conservation, water harvesting, drought proofing, irrigation canals etc. 12 Chapter II – Performance Audits unemployment allowance at the stipulated rates. In terms of Section 28 of MGNREGA, 2005 the GoM amended The Maharashtra Employment Guarantee Act, 1977 in 2006 to make it consistent with the provisions of the Central Act. The GoM introduced The Maharashtra Rural Employment Guarantee Scheme (MREGS) in February 2006 in 12 of the 33 districts6 which was further extended to six more districts with effect from April 2007 and to the entire State with effect from April 2008. The Scheme was renamed as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)-Maharashtra in July 2011. The MGNREGS was implemented as Centrally Sponsored Scheme on a cost sharing basis between the Centre and the State. The Central Government was to bear all costs other than 25 per cent of the cost of material and wages for semi-skilled/ skilled workers, unemployment allowance and administrative expenses of the State Employment Guarantee Council (SEGC), i.e. an apex body to be set up in every State for monitoring and reviewing the implementation of the Act. During 2007-12, an expenditure of ` 2,820.82 crore had been incurred under this Scheme in Maharashtra. 2.1.2 Organizational structure The organizational structure for implementation of MGNREGS in the State and the roles at State, District, Panchayat Samiti and Gram Panchayat level were as under: State Employment Guarantee Council Planning Department (Mantralaya) Commissioner, MGNREGS Chief Executive Officer, Zilla Parishad Collector (Joint District Programme (District Programme Co-ordinator) Co-ordinator) Block Development Tahsildar Officer (Programme (Joint Programme Officer) Officer) Line Village Development Departments Officer/Gram Sevak (Gram Panchayat) 6 Excluding Mumbai City and Mumbai Suburban District 13 Audit Report (Local Bodies) for the year ended March 2012 The State Government designated (October 2006) the Collectors as District Programme Coordinators (DPCs) and the Chief Executive Officers (CEO) of Zilla Parishads as Joint DPCs for implementation of MGNREGS in the districts. The Tahsildars (Revenue and Forest Department) were designated as the Programme Officers (POs) and the Block Development Officers (BDOs) (Rural Development and Water Conservation Department) were designated as Joint Programme Officers (Joint POs). The POs and Joint POs were responsible for implementation and monitoring of the Scheme within the block. 2.1.3 Audit objectives The main audit objectives were to ascertain whether: works under the Scheme were properly planned and executed in compliance with the Act and the guidelines and durable assets were created, maintained and properly accounted for; funds released under the Scheme were accounted for and utilized in compliance with the guidelines; there was an effective process of registration of households, allotment of job cards and allocation of employment in compliance with the guidelines; the intended objective of providing 100 days of annual employment at the specified wage rates was effectively achieved and wages and unemployment allowance were paid in accordance with the Act and the guidelines; and there was an adequate and effective mechanism at different levels for monitoring and evaluation of the Scheme. 2.1.4 Audit criteria Appropriate criteria have been derived from the following documents: The Maharashtra Employment Guarantee Act, 1977; The National Rural Employment Guarantee Act, 2005; MGNREGA (State Scheme); MGNREGA operational Guidelines, 2008; and Government Resolutions (GRs) and Circulars issued by GoM from time to time. 2.1.5 Scope of Audit The Performance Audit of MGNREGS was conducted between February and June 2012 and records for the period 2007-12 were test-checked. Nine districts viz., Ahmednagar, Bhandara, Buldhana, Latur, Nanded, Nandurbar, Sindhudurg, Thane and Yavatmal and 24 blocks in these districts were selected based on Simple Random Sampling without Replacement. Ten GPs were selected from each selected block. Within each GP, 10 works were selected on random basis and where the number of works was less than 10, all 14 Chapter II – Performance Audits the works were selected for audit and physical verification. 2.1.6 Audit methodology The audit examination involved scrutiny of records at the Secretariat, Office of the Commissioner, MGNREGS, office of the selected DPCs, Joint DPCs, POs, Joint POs and selected GPs and survey of 2,152 beneficiaries in the 24 selected blocks. An entry conference with the Principal Secretary (EGS and Water Conservation) of Planning Department, GoM was held in February 2012 wherein the audit objectives, criteria, scope and methodology were discussed. The exit conference was held in October 2012 with the Principal Secretary (EGS and Water Conservation) of Planning Department where audit findings were discussed. The reply received (October 2012) from the State Government had been duly acknowledged and incorporated at appropriate places in the report.
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