Report of the Comptroller and Auditor General of India for the year 2011-12 GOVERNMENT OF TRIPURA Report No.1 of 2013 TABLE OF CONTENTS Paragraph(s) Page(s) Preface v Executive Summary vii CHAPTER I: SOCIAL SECTOR Introduction 1.1 1 Planning and conduct of Audit 1.2 2 EDUCATION (SOCIAL WELFARE & SOCIAL EDUCATION) DEPARTMENT Integrated Audit of the Education (Social Welfare and Social 1.3 4 Education) Department RURAL DEVELOPMENT DEPARTMENT Performance Audit on ‘Mahatma Gandhi National Rural 1.4 33 Employment Guarantee Scheme’ EDUCATION (SCHOOL) DEPARTMENT Utilisation of Edusat Network 1.5 64 HOME (JAIL) AND PUBLIC WORKS (ROADS AND BUILDINGS) DEPARTMENTS Unused construction 1.6 69 LABOUR DEPARTMENT (Tripura Building and Other Construction Workers’ Welfare Board) Failure to achieve the objects of the Board besides imprudent 1.7 72 investment of idle funds CHAPTER II: ECONOMIC SECTOR Introduction 2.1 75 Planning and conduct of Audit 2.2 76 PUBLIC WORKS (ROADS AND BUILDINGS) DEPARTMENT Unfruitful expenditure 2.3 77 Undue financial benefit leading to loss of interest 2.4 78 PUBLIC WORKS (WATER RESOURCE) DEPARTMENT Faulty planning leading to idle investment 2.5 80 PUBLIC WORKS DEPARTMENT (WATER RESOURCE, DRINKING WATER AND SANITATION) Blocking up of public funds on idle stores 2.6 82 CHAPTER III: ECONOMIC SECTOR (Public Sector Undertakings) Overview of State Public Sector Undertakings 3.1 85 POWER DEPARTMENT (Tripura State Electricity Corporation Limited) Performance Audit of Power Transmission Activities 3.2 96 FOREST DEPARTMENT (Tripura Forest Development and Plantation Corporation Limited) Loss due to non-realisation of cost of packaging 3.3 130 (i) Paragraph(s) Page(s) POWER DEPARTMENT (Tripura State Electricity Corporation Limited) Deficient planning in construction of buildings 3.4 132 Loss of interest 3.5 134 CHAPTER IV: REVENUE SECTOR General 4.1 137 Trend of revenue receipts 4.1.1 137 Variations between the budget estimates and actuals 4.1.2 138 Cost of collection 4.1.3 140 Analysis of arrears of revenue 4.1.4 140 Arrears in assessment 4.1.5 141 Evasion of tax 4.1.6 141 Refunds 4.1.7 141 Response of the Departments/Government towards audit 4.1.8 142 Failure of senior officials to enforce accountability and protect the 4.1.8 (a) 142 interest of the State Government Departmental Audit Committee Meetings 4.1.8 (b) 143 Response of the Departments to the draft audit paragraphs 4.1.8 (c) 144 Follow up on Audit Reports – summarised position 4.1.8 (d) 144 Compliance with the earlier Audit Reports 4.1.8 (e) 144 Analysis of the mechanism for dealing with the issues raised by 4.1.9 145 Audit Position of Inspection Reports 4.1.9 (a) 145 Assurances given by the Department/Government on the issues 4.1.9 (b) 145 highlighted in the Audit Reports Recovery of accepted cases 4.1.9 (b) (i) 145 Action taken on the recommendations accepted by the 4.1.9 (b) (ii) 146 Departments/Government Results of audit 4.1.10 147 Position of local audit conducted during the year 4.1.10 (a) 147 This Report 4.1.10 (b) 147 TRANSPORT DEPARTMENT Computerisation of Transport Department in Tripura 4.2 148 FINANCE (EXCISE & TAXATION) DEPARTMENT (SALES TAX/VALUE ADDED TAX) Short levy of tax 4.3 170 FOREST DEPARTMENT Suspected misappropriation 4.4 172 CHAPTER V: GENERAL SECTOR Introduction 5.1 175 Planning and conduct of Audit 5.2 176 HOME (POLICE) DEPARTMENT Unfruitful expenditure 5.3 177 (ii) Paragraph(s) Page(s) CHAPTER VI: FOLLOW UP OF AUDIT OBSERVATIONS Follow up action on earlier Audit Reports 6.1 179 Monitoring 6.2 180 Outstanding Inspection Reports 6.3 181 APPENDICES Appendix No. Page(s) Establishment of AWCs where population was below the norms 1.1 185 Statement showing name of the units audited at the State, District, 1.2 187 Block and GP levels Statement showing year-wise works supervised by POs in six 1.3 188 Blocks Details of possible generation of additional persondays with the 1.4 189 shortfall in release of State share Statement showing details of material labour ratio at Districts 1.5 190 Summary of 600 test checked works 1.6 191 Statement Showing the GP-wise execution of earthen roads 1.7 192 Statement showing missing/stolen equipment of SITs 1.8 195 Statement showing details of delay in completion of various 1.9 196 construction works of Sub-Jail at Gandacherra Details of avoidable loss of interest due to investment of idle 1.10 197 funds in savings accounts instead of in fixed deposits Statement showing award of seven package works of roads, 2.1 198 bridges, buildings etc. in the State to four agencies by four executing Divisions during 2008-11 Statement showing the Interest Free Mobilisation Advance paid 2.2 199 to the agencies during the period April 2008 to January 2012 and the interest amount that could be realised at 10 per cent per annum upto 31 December 2011 Statement showing particulars of up-to-date capital, loans 3.1 200 outstanding and manpower as on 31 March 2012 in respect of Government Companies and Statutory Corporations Summarised financial results of Government companies and 3.2 202 Statutory corporations for the latest year for which accounts were finalised Statement showing grants and subsidy received/receivable, 3.3 204 guarantees received, waiver of dues, loans written off and loans converted into equity during the year and guarantee commitment at the end of March 2012 Statement showing investment made by State Government in 3.4 206 PSU's whose accounts are in arrears Statement showing financial position of Statutory Corporation 3.5 207 (Tripura Road Transport Corporation) Statement showing working results of Statutory Corporation 3.6 208 (Tripura Road Transport Corporation) (iii) Appendix No. Page(s) Statement showing year-wise quantity of Cenex sold, Barrels 3.7 209 used, average purchase cost of Barrels and cost of packaging Statement showing loss of interest due to Fixed Deposits made on 3.8 210 the same dates at varied interest rates Statement showing issuance of two or more driving licences to 4.1 215 same persons Statement showing Improper mapping of business process rules 4.2 221 in case of One Time Tax (OTT) for Private cars/ Two wheelers Statement showing short realisation of taxes in case of 4.3 223 quarterly/yearly tax due to improper mapping of business process rules Statement showing short levy of VAT, interest and penalty due to 4.4 229 concealment of turnover by the dealers and incorrect application of taxable rates Statement showing short levy of VAT, interest and penalty due to 4.5 234 erroneous computation Statement showing details of amount due to be realised, actual 4.6 236 realisation, amount remitted etc. by the Shibbari Beat Officer (iv) PREFACE This Report has been prepared for submission to the Governor under Article 151 of the Constitution. The Report deals with the findings of performance reviews and audit of transactions in various departments under Social, Economic, Revenue and General Sectors including audit of autonomous bodies and local bodies. The Report also contains the observations arising out of audit of Statutory Corporations, Boards, Government Companies and revenue receipts. 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 had come to notice in earlier years but could not be dealt with in previous Audit Reports; matters relating to the period subsequent to 2011-12 have also been included, wherever necessary. Audit observations on matters arising from the examination of Finance Accounts and Appropriation Accounts of the State Government for the year ended 31 March 2012 are included in a separate Report on State Finances. 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 Audit Report has been prepared in six chapters. Chapters I to V deal with Social, Economic, Economic (Public Sector Undertakings), Revenue and General Sectors and Chapter VI deals with Follow up of Audit observations. This Report contains 24 audit paragraphs (including 11 general paragraphs and one long paragraph on Utilisation of Edusat network), 3 Performance Audit and an Integrated Audit of the Education (Social Welfare and Social Education) Department. According to the existing arrangements, copies of the draft paragraphs and draft performance audit were sent to the Secretary of the Departments concerned with a request to furnish replies within six week. However, in respect of one Performance Audit and seven Audit Paragraphs included in the Report, no replies were received till the time of finalisation of the Report (February 2013). A synopsis of the important findings contained in the Report is presented below: SOCIAL SECTOR PERFORMANCE AUDITS Integrated Audit of the Education (Social Welfare & Social Education) Department The short release of funds against the approved planned budget provision and non- utilisation of even the available funds had adversely affected implementation of programme/schemes. Indiscriminate setting up of Anganwadi Centres without following the prescribed norm resulted in extra avoidable liability for payment of honorarium to the assigned staff, while essential facilities for drinking water, toilets, kitchen sheds and other minimum infrastructural needs in the AWCs remained neglected. The Department did not have proper control over construction of Anganwadi Centres which appeared to be either incomplete or not taken up at all in case of 1,367 buildings even after a lapse of more than two to six years since sanction and release of funds to the implementing agencies.