AUDIT REPORT 30-12-2017 LOCAL FUND AUDIT, KEONJHAR, ODISHA CATEGORY : Panchayat Samiti,General Audit Report No : 309201/AR/2017-2018-KEONJHAR PARA: 1 TITLE SHEET 1 Name of the Institution : Ghasipura P.S. Pre audit 2 Year of Accounts under Audit : 2016-2017 3 Name of the Local Authority during the year of A/Cs : SRI SURANJAN KUMAR SAHOO,BDO,OAS - I, JB. 31.10.11 TO 13.07.17. Name of the Local Authority at the time of Audit : 1. SRI SURANJAN KUMAR SAHOO,BDO,OAS-I,JB 31.10.11 TO 13.07.17 2. SRI UMAKANTA PARIDA,BDO, IC,OAS-I,JB. 14.07.17 TO 20.07.17 3. SRI DEBADATA MOHANTA,BDO, OAS - I, JB 21.07.17 TO CONTINUE 4 Duration of Audit : 01-07-2017 To 31-08-2017 (Mandays Consumed :- 35) 5 Name of the Auditors : PRADEEP KUMAR MISTRY - Lead Auditor(01-07-2017 to 31-08-2017) SRI SWARUP KUMAR SAHOO - Auditor(01-07-2017 to 31-08-2017) 6 Name of the Reviewing Officer : CHANDRA SEKHAR DALAI(Audit Superintendent) 7 Date of submission of report by Reviewing officer : 29-12-2017 8 Entry Conference Date : 23-06-2017 9 Exit Conference Date : 10 Name of the District Audit Officer : SRI BHUBAN KUMAR NAIK 11 Date of approval of report by District Audit Officer : 30-12-2017 1 / 99 AUDIT REPORT 30-12-2017 PARA: 2 PHYSICAL VERIFICATION Slno Items Date Of Physical Physical Balance Balance As per Cash Reference To The Discrepancies If Any verification Before / Book / Stock Page No Of Cash After Transaction Register Book / Stock Register 1 Measurement Books 1.07.17 2 Nos. 2 Nos. Page-22 2 Cash in hand 1.07.17 0 -- -- Cash books in PRIA-SOFT not done. 3 Miscellaneous 1.07.17 0 0 -- Receipt Books 4 Others 1.07.17 0 -- -- 5 ServicePostage 1.07.17 Rs.286.00 Rs.286.00 Page-28 Stamps Comments Comments Physical verification of liquid cash revealed that the physical cash balance in the Samiti as on 1.07.17 before transaction was Rs.0.00. The cash book balance on first day of audit could not be ascertained due to non maintenance of up-to-date cash book in PRIA-SOFT. On issue of POM the local authority stated that the cash books in PRIA- SOFT have not been made up-to-date due to some technical reason. The same will be produced to audit at the time of exit conference. The reply of the local authority was unacceptable as it was nothing but to skip the rule of law. However audit advised that Rule 36(e) of PSAP Rule 2002 need be followed scrupulously and physical verification of the cash balance in hand may be conducted in a monthly basis, record signed and dated certificate to that effect in the cash books and compliance reported to audit. 2 / 99 AUDIT REPORT 30-12-2017 PARA: 3 LIST OF VERIFIED RECORDS A : List Of Verified Records/Register Slno List Records/Register Rules Form No 1 T.A. Bill for members of the Samiti Rule 88(b) Form No.-XXXIX 2 Muster Roll Rule 85(1) Form No.-XXXVII & XXXVIII 3 Completion Certificate Rule 80(1) Form No.-XXXV 4 Stock Register of MBs Rule 80(2) 5 Measurement Books Rule 80(1) Form No.-XXXIV 6 Execution of agreements with the Rule 74(3)(d) Form No.-XXX Contractors 7 Issue of Tender orders Rule 74(3)(d) Form No.-XXIX 8 Forms to be used by the Rule 74(1) Form No.-XXVI to XVIII Contractors for submission of Tenders 9 Stock Book Rule 71 Form No.-XXV-A 10 Register of Cheques and Drafts Rule 63 Form No.-XXIII received 11 Log Book Rule 60 Form No.-XXII 12 Stationery Account Rule 56 Form No.-XXI 13 Stamp Account Rule 56 Form No.-XX 14 Register of Advances Rule 42(1) Form No.-XI 15 Cash Book Rule 32 Form No.-X 16 Cheque Books Rule 22 17 Guard file for paid vouchers Rule 20 18 Guard file for supply Rule 18(4) 19 Order Book Rule 18(3) Form No.-VI or VII 20 Bill Register Rule 18(1) Form No.-V 21 Allotment Register Rule 11 Form No.-IV 22 Pass Books Rule 7 23 P.L. Account Rule 5(2) B : List of Records/Registers not Produced to Audit Slno List Records/Register Rules Form No 1 Register of Administrative Approval Rule 76(4) Form No.-XXXIII 2 Execution of agreements with the Rule 74(3)(e) Form No.-XXXI other agencies other than Contractors. 3 Register of Estimates Rule 76(4) Form No.-XXXII 4 Indemnity bond executed Rule 31(3) Form No.-IX C : List of Records/Registers not Maintained Slno List Records/Register Rules Form No 1 Register of lapsed Deposits Rule 64 Form No.-XXIV 2 Revenue Register Rule 51 Form No.-XIX 3 Register of Immovable Properties Rule 49 Form No.-XVIII 4 Appropriation of Loan Register Rule 47(1) Form No.-XVII 5 Loan Register Rule 46 Form No.-XVI 6 Register of Securities Rule 45(1) Form No.-XV 7 Deposit Ledger Rule 44 Form No.-XIII, XIV 8 Register of Outstanding Advances Rule 43 Form No.-XII 9 Permanent Advance Cash Book Rule 21 Form No.-VIII 10 Receipts for taxes Rule 6(3) Form No.-III 11 Misc. Receipts Rule 6(2) Form No.-II 12 Grant-in-Aid Register Rule 5(4) Form No.-I D : List of Records/Registers not Required Slno List Records/Register Rules Form No Comments Non production of Accounts Records and Registers. The following records & registers relating to the year 2016-17 as per the provisions made in Panchayat Samiti act 1959 Odisha Panchayat Samiti Accounting 3 / 99 AUDIT REPORT 30-12-2017 Procedure Rules 2002 have not been maintained. The local authority was asked the reasons for non-maintenance of those prescribed records in response to which it was replied that the prescribed records & registers will be maintenance in future. Non-maintenance of records results following consequences. Sl.No. Name of the Account Register Corresponding Rules Remarks 1 Annual Budget for 2016-17 Sec.24(i) (2)of P.S.Act.1959 Non preparation of Annual Budget reduced accountability transparency & smooth financial of the PS. Budget is the statutory requirement & without the same the expenditure control mechanism will collapse. 2 Security Deposit Register Rule-44 Form Non-preparation of S.D. ledger will result failure in monitoring of S.D. refund & No-XIIIof PSAP Rule double payment to executants. 3 Property Register Rule 49 Form XVIII of PSAP Rule Non-maintenance of properties register, the exact position of the property of PS such as land, ponds, and market complexes could not be ascertained. In due course the revenue generated from such properties will be nullified. 4 Asset Register Govt. Instructions as per scheme As per instruction of Govt. the Asset Guidelines. created out of utilization of a particular scheme fund should be maintained distinctively. Without maintenance of the same the assets so generated could not be ascertained. 5 Bank Reconciliation Statement G.O.No.5302/PR Due to non-Reconciliation of the different between closing balance of all 23.04.99 pass book & also cash books the possibility of the financial fraud could not 690/F dt.21.01.2009 be avoided. Further the closing balance of the cash book will be understand or 13000/PR dt.25.07.14. overstated resulting incorrect picture of cash management. 14261/PR dt.20.05.13 Rule-33 of PSAP Rules Besides the above the following records & registers are not produced to audit for verification. 1. Audit compliance register. 2. MPR file relating to development works for the year 2016-17. Due to non-production of audit compliance register the exact position of outstanding audit paras waiting for settlement could not be ascertained. Hence the local authority was suggested to produce the same before next audit. Improper maintenance of Project cum work registers for the year 2016-17. On scrutiny of the project cum work register for the year 2016-17, it was noticed that the register was not maintained properly. Only the list of approved projects was reflected with the estimate value only. The date of issue of work order to the executants with their signature was missing. Huge blank spaces were noticed without any reference of the project and its estimated cost. The details of the sanction orders, release of funds under different schemes were not mentioned in the work register. Again the status of the projects (i.e. completed/In progress/Not started) showing the date of completion and date of payment of bills was not reflected in the register. On verbal quarry it was replied by the local authority that the development Assistant will be instructed to do the needful as suggested by audit. The reply of the local authority does not provide complete answer to the them of the objection. It is the duty of the Assistant Engineer, Accounts Officer and B.D.O. of the PS to ensure the maintenance of the register for proper monitoring and supervision of the scheme fund. Non-maintenance of the said register defeats the very purpose of the Govt. instructions, as it is the main basis for supplementing information regarding the performance of the different schemes for a specific period. 4 / 99 AUDIT REPORT 30-12-2017 PARA: 4 FINANCIAL POSITION Ghasipura P.S. Pre audit - 2016-2017 Slno Name of the OB as on Opening Receipt Total(In Expenditur Closing Closing Closing Closing Difference Remarks Cash Book Date Balance(I during the Rs:) e during Balance as Balance(I Balance as Balance(I (In Rs:) n Rs:) Year the Year per Audit n Rs:) per (DD n under under (DD MM (AUDIT) MM Rs:)(CAS Audit(In Audit(In YYYY) YYYY) H BOOK) Rs:) Rs:) Cash Book 1 Govt.