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Audit Reports for 2007-Audit Reports for 2007-08 08

• Received only from 30 States/UTsReceived only from 30 States/UTs• Not received from 5 States of Chhattisgarh Not received from 5 States of Chhattisgarh

(defective & returned), Haryana, HP, J&K and (defective & returned), Haryana, HP, J&K and Manipur.Manipur.

• Consolidated report on audit due for Consolidated report on audit due for submission to Development Partners on 31submission to Development Partners on 31stst Dec 08 but could not submit the same.Dec 08 but could not submit the same.

• Defaulting States to ensure immediate Defaulting States to ensure immediate submission of the same.submission of the same.

• States/UTs should ensure that the statutory States/UTs should ensure that the statutory audit is completed by September every year audit is completed by September every year and the audit report submitted to MHRD in and the audit report submitted to MHRD in time. time.

• Also ensure that audit of VECs receiving more Also ensure that audit of VECs receiving more than Rs. 1 lakh per year is covered in a three than Rs. 1 lakh per year is covered in a three year cycle of audits.year cycle of audits.

3333

Internal Audit Internal Audit • More focus should be given to internal More focus should be given to internal

audit in order to follow prescribed audit in order to follow prescribed accounting procedure and maintenance accounting procedure and maintenance of books of accounts.of books of accounts.

• States/UTs to carry out internal audit on States/UTs to carry out internal audit on a concurrent basis. Some States are a concurrent basis. Some States are lagging behind in internal audit.lagging behind in internal audit.

• While most of the States/UTs have While most of the States/UTs have introduced internal audit mechanism, introduced internal audit mechanism, some States/UTs have not yet started some States/UTs have not yet started the same.the same.

• These States should ensure that the These States should ensure that the internal audit mechanism is in place on a internal audit mechanism is in place on a priority basis.priority basis.

4444

Annual Reports Annual Reports • Annual reports for 2007-08 are still Annual reports for 2007-08 are still

awaited from most of the States/UTs.awaited from most of the States/UTs.• Need to be tabled in the Parliament by Need to be tabled in the Parliament by

3131stst December every year. December every year.• The delay in its submission is taken The delay in its submission is taken

very seriously by the Lok Sabha very seriously by the Lok Sabha Parliamentary Committee on papers Parliamentary Committee on papers laid on table. laid on table.

• Also pending for the previous years in Also pending for the previous years in respect of many States like AP, Bihar, respect of many States like AP, Bihar, Chhattisgarh, Dadar & Nagar Haveli, Chhattisgarh, Dadar & Nagar Haveli, Daman & Diu, Delhi, Haryana, Daman & Diu, Delhi, Haryana, Lakshadweep, Meghalaya and Sikkim.Lakshadweep, Meghalaya and Sikkim.

Financial Financial ManagementManagement

Concurrent Financial ReviewConcurrent Financial Review• IPAI review reports on the 2IPAI review reports on the 2ndnd Phase of 10 Phase of 10

States of Assam, Gujarat, Haryana, States of Assam, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttarakhand and Rajasthan, Tamil Nadu, Uttarakhand and West Bengal have been shared with the West Bengal have been shared with the States for taking further follow up action. States for taking further follow up action.

• The States should ensure that Action The States should ensure that Action Taken Reports are submitted to MHRD in Taken Reports are submitted to MHRD in time.time.

• Follow up action on the 1Follow up action on the 1stst Phase of IPAI Phase of IPAI Review reports is also pending in most of Review reports is also pending in most of the States. The States should take the States. The States should take immediate follow up action in this regard. immediate follow up action in this regard.

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Staff PositionStaff Position• Vacant posts of accounts staff exist in SPO in Vacant posts of accounts staff exist in SPO in

the States of Andhra Pradesh, Arunachal the States of Andhra Pradesh, Arunachal Pradesh, Assam, Goa, J&K, Karnataka, Pradesh, Assam, Goa, J&K, Karnataka, Kerala, Maharashtra, Meghalaya, Kerala, Maharashtra, Meghalaya, Puducherry, Punjab, Rajasthan, Tripura, Uttar Puducherry, Punjab, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.Pradesh, Uttarakhand and West Bengal.

• Vacant posts of accounts staff exist in DPOs Vacant posts of accounts staff exist in DPOs of Andhra Pradesh, Assam, Bihar, Goa, of Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Karnataka, Madhya Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Orissa, Pradesh, Maharashtra, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal.Pradesh, Uttarakhand and West Bengal.

• States to fill up these vacancies on priority.States to fill up these vacancies on priority.

77

Capacity Building of Accounts Capacity Building of Accounts StaffStaff

• MHRD prescribed 5 days mandatory training in MHRD prescribed 5 days mandatory training in a year to accounts staff.a year to accounts staff.

• However, some States like Haryana, J&K, However, some States like Haryana, J&K, Nagaland have not imparted training to Nagaland have not imparted training to accounts staff in 2008-09.accounts staff in 2008-09.

• Some States/UTs have not reported the details Some States/UTs have not reported the details of training during 2008-09.of training during 2008-09.

• Some States/UTs have not provided adequate Some States/UTs have not provided adequate training.training.

• All States/UTs should ensure that a minimum of All States/UTs should ensure that a minimum of 5 days training is provided mandatorily to all 5 days training is provided mandatorily to all accounts staff in a year.accounts staff in a year.

Issues related to unspent balance of Issues related to unspent balance of DPEP/SSA Pre-project activitiesDPEP/SSA Pre-project activities

• Refund of unspent balance of DPEP is Refund of unspent balance of DPEP is still awaited from : still awaited from : – Bihar, Chhattisgarh, Jharkhand, HP, MP, Bihar, Chhattisgarh, Jharkhand, HP, MP,

Orissa, UP and West BengalOrissa, UP and West Bengal

• Refund of unspent balance of pre-Refund of unspent balance of pre-project activities is still awaited from:project activities is still awaited from:– Arunachal Pradesh, Assam, Bihar, J&K, MP, Arunachal Pradesh, Assam, Bihar, J&K, MP,

Meghalaya, Manipur, Mizoram and West Meghalaya, Manipur, Mizoram and West Bengal.Bengal.

• Non-refund will adversely effect the Non-refund will adversely effect the further releases of funds from SSA.further releases of funds from SSA.

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Advances Advances • All funds released to districts and sub-district All funds released to districts and sub-district

level units are initially treated as advances level units are initially treated as advances and the same adjusted as expenditure on and the same adjusted as expenditure on receipt of utilization certificate/expenditure receipt of utilization certificate/expenditure statement.statement.

• However, in actual practice States are However, in actual practice States are invariably showing these releases as invariably showing these releases as expenditure without waiting for utilization expenditure without waiting for utilization certificate/expenditure statement.certificate/expenditure statement.

• States should cease this practice forthwith States should cease this practice forthwith and follow the correct accounting procedure and follow the correct accounting procedure prescribed in the Manual on FM&P.prescribed in the Manual on FM&P.

• Large advances are outstanding in some Large advances are outstanding in some States which are to be adjusted immediately.States which are to be adjusted immediately.

Procurement Plan- 2009-Procurement Plan- 2009-1010

• States/UTs to upload the procurement Plan for 2009-10 on States/UTs to upload the procurement Plan for 2009-10 on their website as soon as the PAB Minutes for the AWP&B for their website as soon as the PAB Minutes for the AWP&B for 2009-10 are received. 2009-10 are received.

• An intimation to this effect should also be furnished to MHRD.An intimation to this effect should also be furnished to MHRD.

Financial performance of the States/UTsFinancial performance of the States/UTsExpenditureExpenditure• The total expenditure incurred during 2008-09 The total expenditure incurred during 2008-09

(up to Dec 08) is Rs. 11777.15 crore which is (up to Dec 08) is Rs. 11777.15 crore which is 49% of the approved outlay.49% of the approved outlay.

• Low expenditure or no expenditure reported by Low expenditure or no expenditure reported by many States under the activities of LEP, Remedial many States under the activities of LEP, Remedial Teaching, major repairs, textbooks, TLE, Inclusive Teaching, major repairs, textbooks, TLE, Inclusive education, BRC, CRC, teachers training, REMS, education, BRC, CRC, teachers training, REMS, EGS/AIE, innovative activities, NPEGEL etc.EGS/AIE, innovative activities, NPEGEL etc.

• Backlog of State share as on December 2008 in Backlog of State share as on December 2008 in AP (Rs. 31.93 cr), Arunachal Pradesh (Rs. 3.2 cr), AP (Rs. 31.93 cr), Arunachal Pradesh (Rs. 3.2 cr), Chhattisgarh (Rs. 106.91 cr), Daman & Diu (Rs. Chhattisgarh (Rs. 106.91 cr), Daman & Diu (Rs. 0.36 cr), Delhi (Rs. 6 cr), J&K (Rs. 57.67 cr), 0.36 cr), Delhi (Rs. 6 cr), J&K (Rs. 57.67 cr), Kerala (Rs. 15.90 cr), Maharashtra (Rs. 13.75 cr), Kerala (Rs. 15.90 cr), Maharashtra (Rs. 13.75 cr), Manipur (Rs. 0.02 cr), Mizoram (Rs. 0.94 cr), Manipur (Rs. 0.02 cr), Mizoram (Rs. 0.94 cr), Nagaland (Rs. 2.56 cr), Orissa (Rs. 80.77 cr), Nagaland (Rs. 2.56 cr), Orissa (Rs. 80.77 cr), Pondicherry (Rs. 1.22 cr), Punjab (Rs. 46.23 cr), Pondicherry (Rs. 1.22 cr), Punjab (Rs. 46.23 cr), Rajasthan (Rs. 299.90 cr), Sikkim (Rs. 1.05 cr), Rajasthan (Rs. 299.90 cr), Sikkim (Rs. 1.05 cr), Tamil Nadu (Rs. 44.29 cr), Tripura (Rs. 2.46 cr), Tamil Nadu (Rs. 44.29 cr), Tripura (Rs. 2.46 cr), Uttarakhand (Rs. 45.08 cr) and West Bengal (Rs. Uttarakhand (Rs. 45.08 cr) and West Bengal (Rs. 0.5 cr).0.5 cr).