Report of the Comptroller and Auditor General of India ON GENERAL AND SOCIAL (NON-PSUs) SECTORS for the year ended 31 March 2012 Government of Madhya Pradesh Report No 4 of the year 2013 TABLE OF CONTENTS Paragraph Page Number Number Preface v Chapter 1 Introduction About this report 1.1 1 Profile of Audited Entities 1.2 1 Authority for audit 1.3 2 Organisational structure of the Office of the Principal 1.4 3 Accountant General (General & Social Sector Audit), Madhya Pradesh, Gwalior Planning and conduct of audit 1.5 3 Significant audit observations 1.6 3 Performance audit of programmes/activities/departments and 1.6.1 4 Chief Controlling Officer based audit of Government departments Compliance audit of transactions 1.6.2 7 Lack of responsiveness of Government to Audit 1.7 8 Outstanding Inspection Reports 1.7.1 8 Response of the Departments to Draft Audit Report 1.7.2 9 Constitution of Audit Committee 1.7.3 9 Follow-up on Audit Reports 1.7.4 9 Discussion of Audit Paragraphs by Public Accounts 1.7.5 10 Committee (PAC) Government response to PAC's recommendations 1.7.6 10 Records not produced to Audit 1.8 10 Chapter 2 Performance Audits Jails and Correctional Services Department Management of Jails in Madhya Pradesh 2.1 11 i Audit Report on General and Social (Non-PSUs) Sectors for the year ended 31 March 2012 Paragraph Page Number Number Panchayat and Rural Development Department Mahatma Gandhi National Rural Employment Guarantee 2.2 38 Scheme Chapter 3 Functioning of Government Department(s) Chief Controlling Officer based Audit of Public Health and 3.1 67 Family Welfare Department Chief Controlling Officer based Audit of Department of 3.2 106 Culture Chapter 4 Audit of Transactions Non-compliance with the rules 4.1 135 Planning, Economic and Statistics Department Embezzlement of Government money by DPO, Panna 4.1.1 135 Scheduled Castes and Scheduled Tribes Welfare Department Embezzlement of Government money 4.1.2 137 Social Justice Department Misappropriation /embezzlement of Government money 4.1.3 138 Department of General Administration Unauthorised retention of Government receipts 4.1.4 140 Department of Medical Education Irregular purchase of medicines 4.1.5 141 Failure of oversight/governance 4.2 142 Department of Bhopal Gas Tragedy Relief and Rehabilitation Failure to recover ` 1.17 crore from Hospital Services 4.2.1 143 Consultancy Corporation Department of Public Health and Family Welfare Irregular expenditure on pay and allowances 4.2.2 144 ii Table of contents LIST OF APPENDICES Appendix Page Details No. No. 1.1 Year-wise break up of outstanding Inspection Reports (IRs) as of 31 147 December 2012 1.2 Details of departmental replies pending as of 31 December 2012 148 1.3 Audit Paragraphs yet to be discussed by PAC as of 31 December 148 2012 1.4 Statement showing year-wise and department-wise position of Audit 149 Report paragraphs/reviews on which departmental Action Taken Notes on PAC Reports are pending as of 31 December 2012 2.1 Organisational Set up of the Jails and Correctional Services 151 Department 2.2 Statement showing delay in remitting the receipts 152 2.3 Statement showing cases where treatment to prisoners was not 153 provided 2.4 Statement showing Shortage of Weapons 154 2.5 Statement showing possession of prohibited articles 155 2.6 Statement showing delay in producing under trial prisoners to Court 156 in absence of police force 2.7 Statement showing details of inspections conducted at District level 157 2.8 Statement showing amount to be paid to victims lying in Personal 158 Deposit Account at the end of March 2012 2.9 Statement showing Overcrowding in test checked jails 159 2.10 Comparison statement of consumption of LPG for per prisoners per 160 annum (in Kg) 2.11 Statement showing the Shortage of staff in the Department 161 2.12 Statement showing delays in approval of Annual Plan at Gram 162 Panchayat Level 2.13 Statement showing delays in approval of Annual Plan at Block Level 164 2.14 Statement showing delays in approval of Annual Plan at District 165 Level 2.15 Statement showing Labour Budget Estimates (BE) and Actual 166 Expenditure 2.16 Statement showing belated transfer of funds of SGRY and NFFWP 167 2.17 Statement showing expenditure incurred on printing of bank pass 168 books 2.18 Statement showing registration and issue of Job Cards (JC) to 169 ineligible HHs of 13 test checked districts 2.19 Statement showing dated receipt of job applications not issued to 170 beneficiaries 2.20 Position of Non-Maintenance of records 171 2.21 Position of improper maintenance of records 172 iii Audit Report on General and Social (Non-PSUs) Sectors for the year ended 31 March 2012 Appendix Page Details No. No. 2.22 Statement showing delayed payment of wages 173 2.23 Statement showing Wage Slips not issued to the workers 176 2.24 Statement showing details of non-deployment of mates 177 2.25 Execution of impermissible works 178 2.26 Statement showing Wage : Material ratio at District level 179 2.27 Statement showing the payment of overhead charges to RES 180 2.28 Statement showing irregular convergence of NREGA funds with 181 Mukhya Mantri Sadak Yojna 2.29 Statement showing Grievance Redressal Mechanism 182 2.30 Statement showing the participation of the audit parties in Social 183 Audits 3.1 Statement showing sampled units selected 184 3.2 Statement showing saving more than 20 per cent and ` 50 lakh 186 during 2009-12 3.3 Statement showing rush of expenditure at Directorate level under 187 plan schemes 3.4 Statement showing position of compliance of codal provision in 188 respect of maintenance of accounts registers 3.5 Statement showing excess payment in four stage pay scale 190 3.6 Statement showing release of fund by DHS to field units at the fag 191 end of the year 3.7 Statement showing inter-scheme transfer from one to another during 192 2010-11 to 2011-12 3.8 Statement showing irregular expenditure on treatment of patient 193 under Deen Dayal Antyodaya Upchar Yojna (DDAUY) 3.9 Statement showing utilisation certificate and accounts not received 194 under Rajya Bimari Sahayata Nidhi Yojna (RBSNY) 3.10 Statement showing activities planned but not attended during 2009- 195 10 to 2011-12 3.11 Statement showing availability of facilities/services as per IPHS 199 norms 3.12 Statement showing non-imposing of penalty for delay in supply of 200 medicines purchased through TNMSC 3.13 Statement showing details of Budget provision and expenditure 201 incurred in Directorate of Culture 3.14 Statement showing details of Budget provision and expenditure 201 incurred in Directorate of Archaeology, Archives & Museum 3.15 Statement showing details of Budget provision and expenditure 201 incurred in Directorate of Swaraj Sansthan 4.1 Details of cheques 202 iv PREFACE This Report of the Comptroller and Auditor General of India has been prepared for submission to the Governor under Article 151 of the Constitution for being laid before the State Legislature. The Report, covering the year 2011-12, contains significant results of the compliance audits and performance audits of the Departments of the Government of Madhya Pradesh under General and Social (Non-PSUs) Sectors including Departments of Public Health and Family Welfare, Tribal Welfare, Education, Jail and Correctional Services, Panchayati Raj and Rural Development. However, Departments under the Economic and Revenue Sectors are excluded and covered in the Report on the Economic and Revenue Sectors. The cases mentioned in the Report are among those which came to notice in the course of test audit of accounts during the year 2011-12 as well as those which came to notice in earlier years but could not be reported in previous Audit Reports; matters relating to the period subsequent to 2011-12 have also been included, wherever necessary. Audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India, based on the auditing standards of the International Organisation of Supreme Audit Institutions. Chapter 1 of this report narrates the planning and extent of audit, responses of the departments to draft paragraphs and Audit Reports and provides a synopsis of significant audit observations included in this Report. Chapter 2 deals with the findings of Performance Audit on Management of Jails in Madhya Pradesh and Mahatma Gandhi National Rural Employment Guarantee Scheme, while Chapter 3 contains findings on Chief Controlling Officer based audit of the Public Health and Family Welfare Department and Department of Culture. Chapter 4 deals with audit findings of compliance audit in various Departments. v Chapter 1 Introduction Chapter 1 Introduction 1.1 About this Report This Report of the Comptroller and Auditor General of India (C&AG) relates to matters arising from performance audit of selected programmes and activities and compliance audit of Government departments and autonomous bodies falling under General and Social Sectors in the State. Performance audit examines whether the objectives of the programmes/activities/departments have been achieved economically and efficiently. On the other hand, compliance audit refers to examination of the transactions relating to expenditure of the audited entities to ascertain whether the provisions of the Constitution of India, applicable laws, rules, regulations and various orders and instructions issued by the competent authorities are being complied with. The primary purpose of the Report is to bring to the notice of the State Legislature, important results of audit. Auditing Standards require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions.