Audited Accounts & Audit
Report for the year 2012-2013
SSA- Karnataka, Jharkhand &
West Bengal
41st Quarterly Review Meeting of
Finance Controllers on 29th May 2014 & 30th May 2014
New Delhi
1
Compliance of Audit Observations awaited
S.
State/UT
No.
1 A& N Island
2 Andhra
Pradesh
3 Arunachal
Pradesh
Assam
4
5
Bihar
Compliance of Audit Observations
awaited
2010-2011, 2011-2012
2005-2006, 2006-2007, 2010-2011
2005-2006, 2006-2007, 2007-2008, 20082009, 2009-2010, 2010-2011, 2011-2012
2008-2009, 2009-2010, 2010-2011, 20112012
2005-2006, 2006-2007, 2007-2008, 20082009, 2009-2010, 2010-2011, 2011-2012
2
S.
State/UT
No.
6 Chhattisgarh
7
Chandigarh
Compliance of Audit Observations
awaited
.2008-2009, 2009-2010, 2010-2011, 20112012
2008-2009, 2009-2010, 2011-2012
8
Delhi
2010-2011, 2011-2012
9
Daman & Diu
2010-2011, 2011-2012
Dadra & Nagar 2009-2010, 2011-2012
10
Haveli
11 Goa
2008-2009, 2009-2010, 2010-2011, 20112012
12 Gujarat
2008-2009, 2009-2010, 2010-2011, 20112012
3
S.
No.
13
State/UT
Haryana
14 Himachal
Pradesh
15 Jammu &
Kashmir
16 Jharkhand
17 Karnataka
18 Kerala
19 Lakshadweep
Compliance of Audit Observations
awaited
2005-2006, 2006-2007, 2007-2008, 20082009, 2009-2010, 2010-2011, 2011-2012
2007-2008, 2008-2009, 2009-2010, 20102011, 2011-2012
2009-2010,2010-2011, 2011-2012
2009-2010, 2010-2011, 2011-2012
2006-2007, 2007-2008, 2008-2009, 20092010, 2010-2011, 2011-2012
2006-2007, 2007-2008, 2008-2009, 20092010, 2010-2011, 2011-2012
2010-2011, 2011-2012
4
S.
State/UT
No.
20 Madhya
Pradesh
21 Maharashtra
22
Manipur
23 Meghalaya
24 Mizoram
25
Nagaland
Compliance of Audit Observations
awaited
2006-2007, 2008-2009, 2009-2010, 20102011, 2011-2012
2008-2009, 2009-2010, 2010-2011, 20112012
2005-2006, 2006-2007, 2008-2009, 20092010, 2010-2011, 2011-2012
2006-2007, 2007-2008, 2008-2009, 20092010, 2010-2011, 2011-2012
2008-2009, 2009-2010, 2010-2011, 20112012
2005-2006, 2006-2007, 2007-2008, 20082009, 2009-2010, 2010-2011, 2011-2012
5
S.
State/UT
No.
26 Odisha
Compliance of Audit Observations
awaited
2010-2011, 2011-2012
27 Punjab
2007-2008, 2008-2009, 2009-2010, 20102011, 2011-2012
2009-2010, 2010-2011,
28 Puducherry
29 Rajasthan
30 Sikkim
31
Tamil Nadu
32 Tripura
2008-2009, 2009-2010, 2010-2011, 20112012
2006-2007, 2009-2010, 2010-2011, 20112012
2006-2007, 2007-2008, 2008-2009, 20092010, 2010-2011, 2011-2012
2007-2008, 2008-2009, 2009-2010, 20106
2011, 2011-2012
S.
Compliance of Audit Observations
State/UT
No.
awaited
33 Uttar Pradesh 2007-2008, 2008-2009, 2009-2010, 20102011, 2011-2012
34 Uttarakhand 2010-2011,2011-2012
35 West Bengal
2009-2010, 2010-2011, 2011-2012
7
Audited Accounts & Audit Report for the year 2012-2013SSA, Karnataka State :
i. Audited Utilization Certificate and Audited FMR-I, II & III
not enclosed. Consolidated annual financial statement also
not enclosed.
ii. Para on compliance of previous years audit observations
pertaining to SPO/DPOs not enclosed.
iii. As per MHRD guidelines uniform is to be supplied to all
girl students, SC/ST/BPL boys only. But Rs.1789.46 lakhs
were spent on purchase of uniform for non-eligible
students, which is yet to be reimbursed by State Govt.
Moreover as per SSA guidelines, procurement of uniform is
decentralized at SMC level, but SSA/Karnataka during the
year 2012-2013 has followed centralized vendor
identification process, thus violating SSA framework
8
guidelines.
iv. 3916 nos. SDMCs which received grant more than Rs. 1
lakh during the year were Audited, but none from district
of Mandya as no arrangements were made by DPO. Gist of
observations made by the Auditors be sent to us for
perusal.
v. In the Books of accounts following appear as outstanding
advances as on 31.3.2013 Rs.2752.19 lakhs as DPEP,
Salary but DPEP accounts were closed long back in year
2003 Rs.6.80 lakhs as RMSA, which is non SSA activity.
These advances be settled early.
vi. Canara Bank-FCRA account, which is a non-operational
bank account be closed.
vii. There are few long outstanding statutory dues and long
outstanding liabilities. These be settled early.
9
viii. Rs.4188.23 lakhs is appearing as outstanding advances as on
31.3.2013, against staff, universities NGOs, Govt. and other
agencies. These advances need to be settled promptly.
ix. Rs.357387 were paid to Poornima Gramina Abhuvruddhi. But
Utilization Certificate provided is only for Rs.3,15,295.
Balance amount of rs.42092 yet to be received by SSA.
x. As per Balance Sheet, total outstanding advances as on
31.3.2013 are Rs.17033.23 lakhs, which include Rs.5637.15
lakhs outstanding advances pertaining to SPO office.
Rs.3895.91 lakhs is appearing as Advance to Karnataka Text
Book society and Rs.425.62 lakhs as Advance to Rajiv Gandhi
Rural Housing Society, Rs. 3 lakh as Advance to Primary
School Teachers Association and Rs.266.69 lakhs as Advance
Member Secretary General Thammaiah on account of advance.
These be settled/adjusted early.
10
Auditor has pointed out that:
i.
Advances released to District Offices and other implementing
office have not been reviewed / monitored and reconciled at
periodic internals
ii. Compliance to provision of Income Tax Act relating to TDS
and timely filling of ETDS returns is weak.
iii. Internal control measures with regard to transfer of funds,
maintenance of accounts & records, periodical reconciliation
of funds record and releases, advances outstanding, need to be
strengthened.
iv. DIETs are clubbing SSA grants along with other non SSA
grants. Non SSA grants are being credited to SSA Bank A/C.
Separate Bank accounts be maintained for non SSA funds.
v.
DPO accounts are not being incorporated in SPO books of
accounts on month to month basis/regular intervals. But at end
of financial year.
11
vi. Proper control for maintenance of accounts at SDMC level
lacking
vii. Receipts & payment A/C at DPO level not prepared on
monthly basis but once in a year.
viii. Auditor has provided gist of observations regarding
DPO/Sub DPOs offices, at Page 12 to 52 of the Audit
Report all of these need to be attended on priority basis.
These observations mainly pertain to
 TDS not deducted
 Non maintenance proper records/registers
 Recovery of excess payment made
 Non reconciliation of cash book & Bank Account etc.
12
KGBV
i.
ii.
iii.
iv.
v.
Through accounting software has been installed, but the
same is not put to use. But accounts maintained
manually.
Monthly district KGBV accounts are not getting
incorporated in SPO-KGBV books of accounts on month
to month basis Maintenance of accounts at DPO-KGBV
level is to be strengthened.
These are few long outstanding advances/liabilities
appearing in books of accounts. These be adjusted on
priority basis.
Periodical reconciliation of grants released and receipt
not done.
Auditor at Para-12 of Audit Report (KGBV) have pointed
out large number of audit observations, which need to be
13
looked into and necessary improvement carried out.
Audited Accounts & Audit Report for the year 2012-2013-SSAWest Bengal
1. In FMR-I Expenditure (SSA, NPEGEL, KGBV) has been
shown as Rs.443154.35 lakhs. Under Note-1, it is indicated
that this expenditure includes advances, both, civil and other
paid during the year. This is not in-accordance with FM&P
manual. Advances should not be shown as expenditure till
end use of funds is known and statement of Expenditure/
Utilization Certificates have been received from spending
unit.
Further in Note-2, while calculating Expenditure of SSA, it
is indicated that. Advances against Civil Works paid during
the year, less refund i.e., Rs. 202613.75 lakhs have been
shown as expenditure. This is not in-accordance with FM&P
manual. Advances should not be shown as expenditure, till
14
end use is known and UCs have been received.
2. Utilization Certificate for (DPEP) has been submitted
indicating that an expenditure of Rs.127.97 lakhs have
incurred. Further it has been certified that this sum has
been utilized during FY-2012-2013 for purpose for which
it was sanctioned and leaving unutilized balance as on
31.3.2013 of Rs.670.17 lakhs.
The DPEP accounts were closed long back in year 20032004 and amount lying unutilized was to be returned back
to GOI. Please clarify when amount would be refunded
back to GOI.
3. In FMR-III expenditure have been indicated as
Rs.437272.97 lakh, which does not match with amount of
Expenditure stated in FMR-I. We note that both FMR-I
and FMR-III have been audited and signed by the same
Auditor.
15
4. As per Expenditure Statement of SSA for the year 2012-2013 sum
of expenditure incurred in all the District Offices & SPO office is
only Rs.233109.82 lakhs.
5. In the consolidated Balance Sheet as on 31.3.2013
(Rs. in lakhs)
(i) Advances against Civil Works
=
243034.67
(i) Advances against Other Advances
=
45495.07
(i) Advances disbursed to District
=
1555295.45
(i) Balance at SPO/District cash in =
Bank/Hand
(i) Other liabilities
=
59045.38
3015.73
16
In the balance sheet huge amount is being shown as advances
against Civil Works / Other advances etc. This is viewed with
concern by the MHRD. All outstanding advances should be settled
promptly.
Further Balance (Cash at Bank/Hand) at SPO/District does not
match with the UC, Consolidated Annual financial statement and
Receipt and Payment A/C. Please note that UC must be prepared
on the basis of Books of Accounts maintained by the Society.
5. Details regarding Audit of Accounts maintained by SMCs which
received grant of more than Rs. 1 lakh not furnished. The gist of
the observations made by the Auditors may please be sent to
MHRD for perusal.
6. Details regarding pending Audit observations and settlement of
Audit observations during year not furnished.
17
Auditor has pointed out that:
i.
Most of the district are not reconciling the bank balance with
the balances as per cash book.
ii. District Birbhum:
• An amount of Rs.86,350/- issued prior to Rs.01.01.2013 still
remains un-cleared
• Advance aggregating to Rs.204,366,016/- disbursed prior to
01.04.2012 are still outstanding.
• Utilization Certificate are not properly maintained.
• District Burdwan :
• Civil Advance amounting to Rs.42,439,000/- relating to 20102011 is still to be utilized as no Utilization Certificate is
received. Utilization Certificate for Civil Advance amounting to
Rs.216,507,700/- received in 2011-2012 is still pending till the
date of audit.
18
iv. District Coochbehar :
• Suspense Account of Rs.4,99,894/- as appearing in
Balance Sheet and Receipts and Payments Account
represents receipts on various dates during financial
year 2012-2013 source of which is not identified and
hence credited to suspense account.
• For Grants other than civil an amount of
Rs.45,45,67,632/- has been adjusted during the year as
being utilized as certified by District Authority.
• Compliance of provisions relating to deduction of TDS
payment thereof and submission of quarterly returns
needs to be improved.
19
• Provision of Rs.44,00,000/- has been made at the end of the
year towards interest receivable from Central Bank of
India. However no supporting or worksheet for the same
was made available.
v. District Dakshin Dinajpur :
• The DPO is neither maintaining the ledger books
systematically nor ledgers are authenticated by the
concerned person.
• No quotation is being taken for the expenses to be incurred
during the training programmes, as it is learnt that
providers for such items are not available in sufficient
numbers.
20
(vi) District Darjeeling:
• Ledger book is not properly maintained in as much as
receipts are not recorded therein and opening balances
as at 01.02.2012 are not brought forward.
• Stock Register and Bill Register is not maintained
• Opening Balance of Rs.58,016,793/- as on 01.04.2012
includes an amount of Rs.5,14,50,000/- being amount
defalcated during financial year 2004-2005 for which
no provision is held in the books.
• Out of total amount capitalized during the year, amount
of RS.24,231,000/- is capitalized only on the basis of
certificate received from Public Health Engineering
Department.
21
vii. District Hooghly :
• It is noticed from B.R.S. as at 31.03.2013 that it
includes several debits and credit entries which
remain unadjusted for more than three months
including unadjusted entries since 2003.
• It is noticed that outstanding advance as on
31.03.2013 includes amount disbursed in
financial year 2004-05 but still remain
unadjusted.
22
viii. District Howrah:
• The register for collection of Utilization Certificate was
not updated
• During the year the DPO received a total refund of
Rs.4.81 crores out of which details of head wise
breakup was not available.
• It was found that a cheque amounting to Rs.950/bearing ch.no.32028328 issued on 19.09.2012 is still
appearing in the BRS as on 31.03.2013
• It was found that a cheque amounting to Rs.13,500/bearing ch. no. 875864 received on 06.09.2012 is not
yet credited in the bank account and is appearing in the
BRS as on 31.03.2013.
• Assets /Stock purchased and transferred to the
CLRCs,VEC,WEC,SMC are not recorded at any level.
23
ix. District Jalpaiguri:
• Amount debited by United Bank of India on various dates
during the financial year 2012-2013 aggregating to
Rs.1480677 is not recorded in Bank Book.
• Amount credited by United Bank of India on various dates
during financial year 2012-2013 aggregating to
Rs.1339750 is not recorded in Bank Book.
• Cheque of Rs.599/- for payment of TDS issued on
31.05.2012 is still not cleared.
• The amount of Rs.46,780.00 in Suspense Account as
appearing in liabilities side of Balance Sheet as at
31.03.2013 represent amount received in the financial year
2011-2012 source of which is not known.
24
• The amount of interest earned on SSA funds at various
units including the CLRS’S are not recorded as income
in DPOs books of accounts.
• Fund of Rs.1,70,80,000 received from Jalpaiguri Zilla
Parishad (TSC Cell) during the year on 28.03.2013 for
disbursement on their behalf has not been disbursed till
date of our audit.
x. District Kolkata:
• Maintenance of the UC register in both the civil
and the non-civil departments is not done
systematically/properly.
25
•
•
•
•
The bank account of DPO, Kolkatta maintained with
Bank of India Rash Behari Avenue Branch, S/B A/c
No.401510100013775 is not being reconciled inspite of
continuous adverse comments in the previous audit
reports of the statutory auditors as well as Internal
Auditors. There is huge differences of Rs.7,65,42,937.69
between the balances as per bank statement and Books
of accounts as on 31.3.2013.
The DPO is not maintaining the Cash Book and Ledger
Book properly.
TDS not deducted in case of payment made towards
consultancy charges.
Long outstanding balances other then civil advances
26
KGBV:
1. Birbhum:
Utilization Certificate is not maintained
properly.
2. Bankura :
DPO
office
has
not
maintained the UC register properly for the FY-2012-2013.
Recurring expenses advance register have not been
maintained properly.
3. Dakshin Dinajpur, Murshidabad:
Realization
of
UC of advances is not at all satisfactory
4. Siliguri :
In absence of requisite bills, vouchers &
UCs unable to comment on correctness of expenditure of
Rs.41,07,068/- incurred during the year.
5. South 24 Parganas: Unadjusted advance against civil
work amounting to Rs.3,87,500 are lying in books of
accounts from April 1, 2011.
27
Audited Accounts & Audit Report for the year 2012-2013,
SSA-Jharkhand
1. In the Balance Sheet an amount of Rs.21321.46
lakhs have been shown as current liabilities.
(Rs. in lakhs)
1 Loan from DPEP
2. NCERT & Other Suppliers for
Free Text Books
3. 12th FC fund of GOJ for Civil
Works
4. Outstanding liabilities
5. Advances from other agencies
=
=
17.75
644.91
= 6808.57
= 7001.36
= 6146.99
28
All these current liabilities need, detailed breakup yearwise
and intervention head wise. Please analyses /Review whether
these are liabilities to be paid from SSA funds and whether the
sanction of PAB has been obtained/exist for the spillover
amount for incurring the expenditure.
2. As on 31.3.2013 Outstanding advances for Civil Engg.
Work is Rs. 120973.15 lakhs, Outstanding Advances for
programme expenditure is Rs.39064.54 lakhs.
• Huge amount is outstanding for Civil Engg. Works &
programme expenditure. In fact the position has
deteriorated as compared to previous year.
29
• Need to have better co-ordination with Civil Engg.
Department. Please collect/Adjust the expenditure
for all the completed works & where statement of
expenditure have been received. Please submit
action plan to settle these huge outstanding
advances within reasonable time period.
• As per Para-75.1 of FM&P the Utilization
Certificate for all advances given for programme
implementation should have been received within 1
month of the close of FY i.e., by April 2013.
• The expenditure which have not been incurred, the
advances should be refunded and deposited with SPO/DPO
bank A/C
30
3. Huge amount of balances are lying in the Bank A/C
maintained by DPO.
I. Hazaribagh = Rs.1278.16 lakhs
II. Gumla = Rs.1090.999 lakhs
III.Palamu = Rs.2745.563 lakhs
Further release of funds to these districts be
regulated. If amount is not required to be spent at DPO
level, same may be refunded back to SPO.
31
4. Review of advances for program expenditure reveal that:
I. Advances to NGOs
=
Rs.1192.49 lakhs
II. Advances to NPEGEL =
Rs.934.87 lakhs
III. Advances to VEC for Training / Grants = Rs.22791.21
lakhs
IV. Advances to VEC for Bridge course = Rs.2243.72 lakhs
All these outstanding advances need to be settled promptly.
Huge amount of Rs.22791.21 lakhs lying as outstanding
advances with VECs need special attention and prompt action
on the part of SSA management to adjust the same by
submission of UCs.
32
5.
6.
7.
8.
9.
An amount Rs.3197.85 lakhs appear as receivable
from GOJ for text books (OBC & General). This is in
addition to Rs.448.41 lakhs shown as Receivable from
State Govt. for APL boys-Uniform.
NPEGEL, Expenditure Rs.558.33 lakhs include
Management cost = Rs.2600.49 lakhs as credit entry.
There is no separate intervention Head approved by
AWP&B. Then how expenditure have been shown.
Management letter not enclosed.
FMR-III is not as per prescribed format. Kindly
resubmit.
The review of intervention wise expenditure reveal
that approved:
33
Activity
Uniform
Free Text Books
AWP&B
Actual
Expenditure
Savings
17444.43
4973.50
12470.93
7542.38
6168.99
1373.39
Huge savings under Uniform / Free Text Books
intervention as compared to approved AWP&B is
surprising. Whether SSA society has not provided
these entitlements to the children in time.
34
10. In CAFS: Rs.53290.00 lakhs (31% of total expenditure)
during the year have been shown as other expenses.
In the AWP&B approved by PAB, there is no such
intervention head for expenditure. Apparently the
expenditure have not been allocated/booked against
the proper intervention..
11. The settlement of previous years, Audit objection, do
not mention any details, yearwise regarding the
compliance / non compliance of no. of Audit
observations made by Statutory Auditors by
DPO/SPOs office.
35
Auditor in his report has pointed out.
(i) No Internal Audit conducted by SSA during FY-20122013. Due to this Internal Audit Reports could not be
persued by the Auditor and so unable to comment on
the adequacy of the Internal Control System. SSA
must introduce the Internal Audit immediately.
(ii) Bank Reconciliation:
In Sindega DLO Rs.29,97,154/- is credited in the bank
accounts but entry is not made in the books where as a
cheque of is Rs.5,56,250/- was issued from SBI but
entry was made in BOI.
In Pakur DLO there are several Stale cheques which is
not reversed during the year. At the BRC level BRS is
not being done at the regular interval of time.
36
iii. Deposit of Statutory Liability :
P.F. Deducted has not been deposited by SPO within
the due date. In Hazaribagh division TDS is not
deducted on Hire charges of vehicle. In Sindega,
Saraikela tax deducted has not been deposited within
the due date.
iv. Adjustment of Advances:
Huge amount of Rs.1603 crore unadjusted advances is
lying as on balance sheet date. In DLO simdega,
Saraikela, Dhanbad, Bokaro, Lohardaga, Chatra, East
Singhbhum, West Singhbhum, Latehar, Ranchi,
Jamtara, Giridih, Hazaribagh, Garhwa, Sahibganj,
Dumka, Gumla huge Civil Advances are being carried
forward from several years.
37
In DLO Pakur Advance given to NGO Foundation
for Awareness counseling and Education (FACE)
Rs.16,34,316/- is adjusted whereas utilization
certificate of Rs.9,02,130/- was provided to the
society.
v. Adjustment of Outstanding Liability :
In DLO Simdega, Dhanbad, Lohardaga, East
Singhbhum, Ranchi, Garhwa, Khunti provision for
liability was made in earlier years but no payment
or adjustment is being made. There liability should
be written back if not required. In DLO Ramgarh
liability is created without the proper supporting
document.
38
vi. Expenses Incurred without Budget :
In DLO West Singhbhum and Pakur Expenses on
infrastructure for Library Books made without budget.
Proper action should be taken.
vii. VEC Audit :
6126 nos. of VEC were audited by several district auditors.
The common observation is that the proper Cash book is
not being maintained by the VECs and other Records like
Fixed Assets register, Ledger, voucher etc. are not being
maintained properly. The basic training is required in the
VECs for the keeping of Books of Accounts and other
records.
viii Compliance of Previous Auditors observations :
In DLO some of the audit observation of the previous
auditors are complied and some are in process.
39
40