Report of the Comptroller and Auditor General of India On Social and General Sectors For the year ended 31 March 2016 GOVERNMENT OF MANIPUR Report No. 1 of 2017 Report of the Comptroller and Auditor General of India on Social and General Sectors For the year ended 31 March 2016 GOVERNMENT OF MANIPUR Report No. 1 of 2017 TABLE OF CONTENTS Paragraph Page Preface - v Executive Summary - vii CHAPTER I SOCIAL SECTOR Introduction 1.1 1 PERFORMANCE AUDIT DEPARTMENT OF EDUCATION (SCHOOLS) Implementation of Right of Children to Free and Compulsory 1.2 3 Education Act, 2009 HEALTH AND FAMILY WELFARE DEPARTMENT Implementation of National Rural Health Mission – 1.3 24 Reproductive and Child Health SOCIAL WELFARE DEPARTMENT Implementation of Integrated Child Development Services 1.4 56 COMPLIANCE AUDIT CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION DEPARTMENT Avoidable expenditure 1.5 86 RURAL DEVELOPMENT AND PANCHAYATI RAJ DEPARTMENT Excess expenditure 1.6 87 Excess payment 1.7 88 TRIBAL AFFAIRS AND HILLS DEPARTMENT Suspected misappropriation of fund 1.8 89 i Audit Report on Social and General Sectors for the year ended 31 March 2016 CHAPTER II GENERAL SECTOR Introduction 2.1 91 COMPLIANCE AUDIT FINANCE DEPARTMENT Labour cess not transferred 2.2 92 PLANNING DEPARTMENT Irregular expenditure 2.3 94 CHAPTER III FOLLOW UP OF AUDIT OBSERVATIONS Follow up on Audit Reports 3.1 95 Action taken on the recommendations of Public Accounts 3.2 95 Committee Monitoring of Audit observations 3.3 96 Response to Audit observations and outstanding Inspection 3.4 96 Reports APPENDICES Statement showing details of funds transferred directly to 1.1 99 Implementing Agencies under Social Sector Year-wise details of expenditure audited in respect of Social Sector 1.2 101 during 2002-03 to 2015-16 1.3 Selection of Blocks and Schools 101 1.4 VAT deducted at source not deposited into Government Account 103 Statement showing diversion of NRHM funds as loans, advances 1.5 103 etc. 1.6 Statement showing non-adjustment of advances at State level 104 1.7 Statement showing lack of infrastructure in the sampled PHSCs 104 1.8 Statement showing lack of infrastructure in the sampled PHCs 105 1.9 Statement showing lack of infrastructure in the sampled CHCs 105 Statement showing lack of infrastructure in the sampled District 1.10 105 Hospitals Statement showing poor infrastructure noticed in the sampled 1.11 106 PHSCs 1.12 Statement showing poor infrastructure noticed in the sampled PHCs 106 1.13 Statement showing poor infrastructure noticed in the sampled CHCs 106 1.14 Statement showing poor infrastructure noticed in District Hospitals 107 1.15 Statement showing equipment lying unutilised 107 ii Table of Contents APPENDICES Statement showing equipment and furniture not available in SCs, 1.16 108 PHCs, CHCs and District Hospitals 1.17 Statement showing expired medicines at store of DHS Ukhrul 108 Statement showing shortage of Specialist Doctors and Medical 1.18 109 Officers at District Hospital, Ukhrul Statement showing shortage of paramedics and support staff at 1.19 109 District Hospital, Ukhrul 1.20 Details of units sampled for the Performance Audit on ICDS 110 Statement showing delay in release of fund during 2012-13 to 1.21 112 2014-15 1.22 Statement showing month-wise retention of cash balances at bank 112 Statement showing availability of PSE kit in the sampled ICDS 1.23 113 Projects Statement showing details of funds transferred directly to 2.1 115 Implementing Agencies under General Sector Year-wise details of expenditure audited in respect of General 2.2 115 Sector during 2003-04 to 2015-16 2.3 Statement showing details of works test checked in audit 116 iii Audit Report on Social and General Sectors for the year ended 31 March 2016 iv PREFACE This Report of the Comptroller and Auditor General of India on Social and General Sectors has been prepared for submission to the Governor of Manipur under Article 151 of the Constitution of India. This Report contains significant results of performance audit and compliance audit of the Departments of the Government of Manipur under Social and General Sectors. The cases mentioned in the Report are those which came to notice in test audit during the year 2015-16, as well as those which came to notice in earlier years, but could not be dealt with in the previous Reports. Matters relating to the period subsequent to 2015-16 have also been included appropriately in the Report. The audits have been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. v Executive Summary EXECUTIVE SUMMARY This Report has been prepared in three chapters. Chapters I and II deal with Social and General Sectors and Chapter III deals with Follow up of Audit Observations. The Report contains three performance audits on ‘Implementation of Right of Children to Free and Compulsory Education Act, 2009’, ‘Implementation of National Rural Health Mission – Reproductive and Child Health’, ‘Implementation of Integrated Child Development Services’, and six compliance audit paragraphs. According to existing arrangements, copies of the performance audits and paragraphs were sent to the Administrative Heads of the concerned departments with a request to furnish replies within six weeks. Replies from the State Government wherever received have been incorporated in the Report. CHAPTER I SOCIAL SECTOR PERFORMANCE AUDIT Implementation of Right of Children to Free and Compulsory Education Act, 2009 The State Government did not plan and allocate adequate budgetary resources to accommodate the actual number of children attaining the age of enrolment due to non-preparation of database of children who had attained the age of elementary education. There were 4,670 teachers who did not have the minimum academic qualification. Text books and uniforms were not distributed to the students in due time. The creation of basic infrastructure for schools suffered due to (i) non-release of fund, (ii) diversion of fund and (iii) non-utilisation of fund. No action was taken to close 106 un-recognized un-aided private schools as per provisions of the Act. State Government was yet to issue an order for reservation of 25 per cent of seats in Class I for children belonging to weaker section and disadvantaged groups in unaided private school . (Paragraph 1.2) Implementation of National Rural Health Mission - Reproductive and Child Health During 2011-16, neither baseline facility surveys nor annual facility surveys were conducted hence implementation of the mission was not based on identified gaps. Objectives of the mission was not fully achieved and Reproductive and Child Health (RCH) under National Rural Health Mission (NRHM) was adversely effected on account of utilisation of only 48 to vii Audit Report on Social and General Sectors for the year ended 31 March 2016 73 per cent of the total funds and also diversion of funds on non-approved activities. Shortage of Community Health Centres (CHCs), Primary Health Centres (PHCs) and Primary Health Sub-Centres (PHSCs) was compounded by lack of requisite manpower as per Indian Public Health Standard (IPHS) norms even in those facilities which were functioning. Inspite of shortage of equipment, some of the equipment procured were lying unutilised. Service delivery was poor due to lack of infrastructure/poor infrastructure in the health facilities and non-availability of basic services and amenities like stock of essential drugs and medicines, ambulance service, Accredited Social Health Activists (ASHAs) drug kits and skilled birth attendants. There were instances of expired medicines being maintained in stock. Capacity addition/creation of health infrastructure was affected due to delays in construction, absence of quality control/testing. The quality assurance units did not perform the functions or held meetings as per the guidelines showing that the monitoring and quality assurance activities were not adequate. There were deficiencies in the data uploaded in Health Management Information System (HMIS) and to that extent the data in HMIS was not reliable. Except for Pulse Polio immunization, the State could not achieve the target for immunisation of children and pregnant women. (Paragraph 1.3) Implementation of Integrated Child Development Services Implementation of Integrated Child Development Services (ICDS) scheme in the State suffered from lack of adequate infrastructure and logistic support even after four decades of its launch. Lack of basic amenities and necessary infrastructure in many centers affected the quality of service delivery. Capacity building of human resource at various levels was affected as the stipulated trainings were not conducted resulting in the projects being manned without trained staff in many cases. Interruption in the service delivery and non-availability of adequate kits and equipment compromised the scheme implementation. Community mobilization, Information Education Communication (IEC), convergence with other line departments, monitoring and supervision and quality control were not taken up as envisaged thereby affecting the effectiveness of the scheme. Weakness in financial management and non-maintenance of accounting records resulted in leakage and unaccounted funds. (Paragraph 1.4) viii Executive Summary COMPLIANCE AUDIT Consumer Affairs, Food and Public Distribution Department : Avoidable expenditure of ` 4.03 crore due to storage of rice in godown instead of distributing it to the districts. (Paragraph 1.5) Rural Development and Panchayati Raj Department: Excess expenditure to the tune of ` 1.40 crore was incurred due to preparation of estimates of works at rates higher than those admissible under MGNREGS. (Paragraph 1.6) Value Added Tax (VAT) of ` 52.92 lakh deducted at the time of release of fund was subsequently disbursed in cash to the executing agencies as refund after completion of works resulting in excess payment. (Paragraph 1.7) Tribal Affairs and Hills Department : Misappropriation of funds to the tune of ` 34.29 lakh is suspected due to failure to comply with the provisions of financial rules.