GOVERNMENT OF ANDHRA PRADESH CONSOLIDATED AUDIT … English Audit... · 2012-03-21 · state audit department consolidated audit and review report on the accounts of panchayat raj

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GOVERNMENT OF ANDHRA PRADESH

STATE AUDIT DEPARTMENT

CONSOLIDATED AUDIT AND REVIEW

REPORT ON THE ACCOUNTS OF

PANCHAYAT RAJ INSTITUTIONS,

MUNICIPAL CORPORATIONS,

MUNICIPALITIES,

AGRICULTURAL MARKET COMMITTEES

AND ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2008-09

DIRECTOR OF STATE AUDIT

A.P., HYDERABAD.

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CONSOLIDATED AUDIT AND REVIEW

REPORT ON THE ACCOUNTS OF

PANCHAYAT RAJ INSTITUTIONS,

MUNICIPAL CORPORATIONS,

MUNICIPALITIES,

AGRICULTURAL MARKET COMMITTEES

AND ZILLA GRANDHALAYA SAMSTHAS



A.P., HYDERABAD.

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The CONSOLIDATED AUDIT AND REVIEW REPORT for the year 2008-09

compiled in FIVE parts.

Part - I: PANCHAYAT RAJ INSTITUTIONS.

Part - II MUNICIPAL CORPORATIONS.

Part - III: MUNICIPALITIES.

Part – IV AGRICULTURAL MARKET COMMITTEES.

Part - V ZILLA GRANDHALAYA SAMSTHAS.

All parts are designed independently and comprehensively.

Part I deals with the Panchayat Raj Institutions and a few Selected Audit

Objections.. The connected statements are appended.

. Part II deals with the Municipal Corporations and a few Selected Audit

Objections. The connected statements are appended.

Part III deals with the Municipalities and a few Selected Audit Objections.

The connected statements are appended.

Part IV deals with the Agriculture Marking Committees and a few Selected

Audit Objections. The connected statements are appended.

Part V deals with the Zilla Grandhalaya Samasthas and a few Selected Audit

Objections. The connected statements are appended.

FOREWORD

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The State Audit Act, 1989 passed by the Legislature of Andhra Pradesh has

empowered the Director of State Audit to conduct the audit of accounts of Local

Bodies, which he was doing earlier also as per Government orders.

The Director, State Audit conducts post audit of all Local Bodies in the

subsequent financial year. The Director, State Audit (DSA) conducts the audit of

these Panchayat Raj Institutions through the District Audit Offices headed by the

District Audit Officer (DAO). The District Audit Officer is the District Administrative

Head of the Department. The Office of the AAO is known as Unit Office.

There are six Regional Offices in the State in each of the six zones headed by

Regional Deputy Director (RDD).

The Audit Reports of notified Gram Panchayats and Mandal Parisads are

approved by the DAO. The Audit Reports of non-notified Gram Panchayats are

approved by the Assistant Audit Officer. The Audit Reports of Zilla Parishads are

approved by the Regional Deputy Director, State Audit of the Zone concerned.

Institution wise audit reports containing various audit objections are issued to

the Executive Authorities of the concerned Local bodies for follow up action i.e.,

rectification of defects pointed out in the audit reports and to submit a approved

replies to the Audit Report after approval by the General Body of the authority

concerned.

Under the State Audit Act, the Director is vested with the power of

disallowing any item of the expenditure incurred contrary to the law and surcharge the

same on the person incurring or authorizing the incurring of such expenditure.

Under Section 11 of State Audit Act, 1989, the Director, State Audit is

required to submit annually a Consolidated Audit and Review Report on the accounts

of the Local Bodies to the Government for laying of such report on the table of the

Legislative Assembly/ Legislative Council.

The Annual Consolidated Audit and Review Report (Annual CARR) of PRIs

namely Zilla Parishads, Mandal Parishads, Gram Panchayats and also that of

Municipal Corporations, Municipalities, Agricultural Market Committees and Zilla

Grandhalaya Samasthas whose accounts for the year 2008-09 and also the arrears

were audited by the Director of State Audit during the year 2009-10 is submitted.

PREFACE

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During the year under the report the Director could audit some of the

arrears also a part from current as shown below:

Sl.

No. Name of the Institution

Current

Audit

Arrear

Audit Total

1. Zilla Parishads 22 0 22

2. Mandal Parishads 1090 0 1090

3. Gram Panchayats 20311 361 20672

4. Municipal Corporations 7 0 7

5 Municipal Councils 50 38 88

6. Agricultural Market Committees 311 0 311

7. Zilla Grandhalaya Samstas 23 0 23

Total: 21814 399 22213

AUDITED AMOUNTS:

The total Receipts and Payments of all the above institutions in the State for

the year 2008-09 were Rs. 6398.07 Crores and Rs. 6459.47 Crores respectively.

AUDIT OBJECTIONS:

Various irregularities noticed in the course of audit are being reported to

Executive Authorities under 19 categories as detailed below for easier facilitation in

taking follow up action:

1. Variation in Account Figures

2. Excess Utilisation of Grants

3. Diversion of Grants / Funds

4. Non-utilistion of Grants before lapsable date

5. Mis-utilisation of Grants / Funds

6. Non-utilistion of Earmarked Funds

7. Non-collection of dues

8. Advances Pending Adjustment

OVER VIEW

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9. Violation of Rules

10. Non-remittance of Deductions / Recoveries from vouchers / Pay Bills

/ Contingent Bills

11. Non Production of records

12. Mis-appropriations

13. Excess payments

14. Wasteful Expenditure

15. Instances of cases of unaccounted cash / stores

16. Pendency of Utilisation Certificates

17. Surcharge Certificates Recovery Pending.

18. Others

19. DDs/Cheques received, but not realised within time.

A total number of 338135 audit objections involving an amount of Rs.1281.52

Crores were raised during the year. The category wise and institution wise number of

audit objections raised during the year are shown in Statements from 4(1) to 4(4)

appended respective institutional reports.

On receipt of replies to the defects pointed out in the earlier reports supported

by relevant records / documents, the audit objections were settled wherever the replies

were satisfactory. The DAOs and RDDs are authorized to attend the settlement of

audit objections. The Audit Reports contain the details of number of audit objections

pending settlement at the close of the audit.

The audit paras selected for inclusion in the Annual CARR give a

glimpse of financial administration in the Local Authorities. For institution wise

details respective audit reports are to be referred.

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l. No. PARTICULARS PAGE No.

I Part I Panchayat Raj Institutions - Zilla Parishads 17-87

Panchayat Raj Institutions - Mandal Parishads 89-135

Panchayat Raj Institutions - Gram Panchayats 137-180

II Part II Municipal Corporations 185-246

III Part III Municipal Councils 250-328

IV Part IV Agriculture Market Committees 333-375

V Part V Zilla Grandhalaya Samasthas 381-410

CONTENTS

SS

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PART-I



CONSOLIDATED AUDIT AND

REVIEW REPORT ON THE

ACCOUNTS OF

PANCHAYAT RAJ INSTITUTIONS



A.P., HYDERABAD.

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STATEMENT No.

DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF PRIs., FOR THE YEAR 2008-09

PAGE No.

I Introductions and a few selected audit objections of Zilla Parishads –

category wise 17-71

1 Consolidated Statement showing the Status of Audit of ZP 73 (1). Status of Audit of Zilla Parishads as on 31-3-2010 74

2 Statement of Consolidated Receipts & Payments of Zilla Parisahds for the year 2008-09

75

2(a). Statement of Consolidated fund wise Receipts of Zilla Parishads for the year 2008-09.

76

2.(b). Statement of Consolidated fund wise payments of Zilla Parishads for the year 2008-09.

77

3 Statement of Consolidated Grant released to Zilla Parishads and Expenditure incurred from the grants for the year 2008-09

78

3.(A) (1)&(2) Consolidated Statement of Grant (Receipts ) released to the Zilla Parishads for the year 2008-09

79-80

3(B)(1)&(2). Consolidated Statement of Payments made from the Grants by Zilla Parishads for the year 2008-09.

81-82

4 4 Statement showing Audit objections for the year 2008-09

(Dist Wise) 83

4. (1) Statement showing Audit objections raised (Category wise)

and amount involved for the year 2008-09. 84

4 (3)(1) to (3) Statement showing the number of audit objections

for the year 2008-09 (Dist-Categoty-Institution wise)

Grampanchayats.

85-87

II Introductions and a few selected audit objections of Mandal Parishads –

category wise 89-118

1 Consolidated Statement showing the Status of Audit of Mandal Parishads for the year 2008-09.

119

(1). Statement showing Status of Audit of Mandal Parishads as on 31-3-2010

120

2 Statement of Consolidated Receipts. 121

2(a). Statement of Consolidated fund wise Receipts of Mandal Parishads for the year 2008-09.

122

2.(b). Statement of Consolidated fund wise payments of Gram Panchayats for the year 2008-09.

123

3 Statement of Consolidated Receipts and Payments (Grants) of Mandal Parishads for the year 2008-09

125

3.(a)(1) to 3(a)(2) Consolidated Statement of Grants (receipts) to Mandal Parishads nts for the year 2008-09

126-127

3 (b)(1) to 3(b)(2). Consolidated Statement of Grants (payments) of Mandal Parishads for the year 2008-09.

128-129

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4 Statement showing the number of Audit objections in Mandal

Parishads the year 2008-09(District Wise Consolidated

Figures)

130

4 CAT Statement showing the number of audit objections raised 131

CONTENTS

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(category wise) and amount involved in Mandal Parishads for

the year 2008-09.

4(1) to 4(4) Statement showing the Dist Wise and categoty wise

audit objections raised during the year 2008-09. 132-135

III Introductions and a few selected audit objections of Gram panchayats –


1 Consolidated Statement showing the Status of Audit. 167

(1). Status of Audit of Gram Panchayats as on 31-3-2010 168

2 Statement of Consolidated Receipts & Payments of Gram Panchayats for the year 2008-09

169

2(1). Statement of Consolidated Receipts of Gram panchayats for the year 2008-09 (Receipts Heads)

171

2.(2). Statement of Consolidated Expenditure of Gram Panchayats for the year 2008-09 (payments Heads).

172

3 Statement of Consolidated Grant wise Receipts and Payments Gram Panchayats for the year 2008-09

173

3.(1) Statement of Consolidated Grant Receipts of Government Grants for the year 2008-09

174

3(2). Statement of Consolidated Grant Payments of Gram Panchayats for the year 2008-09.

175

4 Statement showing the Number of Audit objections the year

2008-09 176

4 (a) Statement showing Audit objections raised (Category wise)

and amount involved for the year 2008-09. 177

4(1) to 4(3) Statement showing the number of audit objections

for the year 2008-09 (Dist-Categoty-Institution wise)

Grampanchayats.

178-180

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ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON

THE ACCOUNTS OF ZILLA PARISHADs FOR THE YEAR 2008-09

INTRODUCTION

1.1 Under the A.P. State Audit Act, 1989 the Director of State Audit, Andhra

Pradesh is made in charge of the audit of the funds of the Panchayat Raj

Institutions as specified in the Schedule prescribed in the said Act.

1.2 The Department has got its offices located in all the Districts of Andhra

Pradesh where in the District Audit Officer; State Audit is the head at the

District Level.

1.3 The Department conducts post audit of the Panchayat Raj Institutions and

Audit Reports consisting of defects noticed in the audit are issued to the Chief

Executive Officer of the institutions concerned who has to take action for

rectifying the defects pointed out in the Audit Report.

1.4 Under the State Audit Act, the Director of State Audit, Andhra Pradesh is

vested with the power of disallowing any item of the expenditure incurred

contrary to the law and surcharge the same on the person incurring or

authorizing the incurring of such expenditure and may charge against any

person responsible there for, the amount of any deficiency, loss or unprofitable

out lay occasioned by the negligence or misconduct of that person or of any

such sum which ought to have been accounted for but is not brought into

account by that person and shall, in every such case, certify the amount due

from such person.

SCOPE OF AUDIT

2.1 The State Audit Department has been statutorily entrusted with the authority

to verify the following aspects during the course of post audit of the Panchayat

Raj Institutions, viz., Zilla Parishads.

a) Whether the taxes, fees etc., collected by the Panchayat Raj Institutions

were properly accounted for with full details in the books of accounts

of the body concerned.

b) Whether adequate care is taken up periodically to check up the funds

with the Treasury or Bank.

c) Whether the expenditure incurred was provided for in the Budget of

the Panchayat Raj Institutions concerned and duly sanctioned by the

competent authority under the Act / Rules or by any Executive

Instructions by the Government.

d) Whether the funds were utilized only for the permitted purposes

prescribed under the Act / Rules.

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e) Whether the procedure prescribed by the Government in incurring the

expenditure / payments made is properly followed and accounted for

with due classification in the books of accounts of the Panchayat Raj

Body.

f) Whether the required vouchers for the expenditure incurred were

maintained.

g) Whether grants received from the different sources were properly

accounted for and utilized for the purposes for which they were meant.

h) The Department also conducts propriety audit of the expenditure

incurred.

ZP Fund:

The ZP fund constitute different own and Grant Funds. The pattern of post audit of all

the constituents of ZP Fund is not uniform, though Annual Accounts of ZP contains

all such constituents. The position is submitted below.

# Constituent of ZP Fund Remarks on post audit

1 General Fund Post Audit is being conducted by the Director

of State Audit and the consolidated Report is

being placed on the table of Legislative

Assembly / Council. Salaries are being paid

through Treasuries under Grant of 010. Post

audit is not being reflected in the ZP Audit

Report.

2 Loan fund -Do-

3 Women & Child welfare fund -Do-

4 BRGF Grant -Do-

5 Central Finance Commission

Grants

-Do-

6 State Finance Commission Grants -Do-

7 Education Fund Only contingencies are being audited by the

State Audit Dept. Salaries are being paid

through Treasuries under Grant of 010. Post

audit is not being reflected in the ZP Audit

Report.

8 003 Engg Funds Being paid by the PAO. Post Audit is not being

reflected in ZP Audit Report.

9 MP LADs Audited by Charted Accountants

10 PMGSY Audited by Charted Accountants

11 RWS Being paid by the PAO. Post Audit is not being


12 NABARD Audited by Charted Accountants

13 Indiramma No post audit.

14 Minimum Needs Programme Being paid by the PAO. Post Audit is not being


15 Mahatma Gandhi NREGS Separate project organization. No Financial

audit.

16 APSDRF Separate audit by State Audit Dept.

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As per G.O.Ms.No. 60 Fin & plg. (FW.BG) Department, dated 30-03-2001,

the audit of the Engineering Funds of PRIs., were entrusted to the Pre-Audit officers,

works, of the respective districts WEF 30-03-2001. The Account General in letter

Sr.DAG/LBAA 2010-11/80, dated 25-10-2010, has clarified that the Establishment

and works vouchers of PR division are pre-audited by the PAO and the vouchers are

transmitted to the O/o the Accountant General for post audit and the LBAA is

regularly conducting the post audit of the above vouchers. Even though the audit of

the Engineering Bills are not being audited by this department from 2002-03 onwards

all the funds and grants received by the institution and expenditure made are

incorporated in the receipts and expenditure of the Zilla Parishads.

An internal audit wing is to be established under the control of CPR&RE, A.P.

Hyderabad to ensure functioning of internal accounting of checks and balances on

financial transactions. GAAP (Generally Accepted Accounting Practices) stipulate

existence of internal audit of major institutions.

As per standard instructions interest accrued on the Grant Funds should be

treated as add on grants and have to be used for the purpose for which grant is

released. These Grant Funds are merged into General Funds and the interest accrued

is not being apportioned to the respective Grants. It may be stated that the Prl.

Secretary to the Govt, PR Dept has agreed for the apportionment of interest accrued to

various Grants but orders have not been issued so far.

The items of income and expenditure for which the audit was not conducted

by this department is not included in the receipts and payments statement ie.,

statement (2 )and in the grant statement i.e. statement (3). The income and

expenditure shown is the audited figure only.

STATUS OF AUDIT

3. The audit of the following Panchayat Raj Institutions up to the year 2008-09

was conducted in the year.

Panchayat Raj Institutions No. of Years audited

i) Zilla Parishads : 22

RECEIPTS AND PAYMENTS (2008-09)

4.1 The Receipts and Payments are inclusive of the various grants received from

Central and State Governments during the year 2008-09 by the Zilla Parishads.

The details of gross Receipts including grants and Payments are shown in the

Statements No. 2(1) to 2(2) with reference to the Zilla Parishads, respectively.

The various Grants received by the Zilla Parishads are exclusively detailed in

Statement Nos. from 3 (1) to 3(2).

4.2.1 The aggregate Receipts & Payments of Zilla Parishads in the State during

the year are Rs.129179.59 lakhs and Rs.117784.20 lakhs respectively. These

figures are present in pie diagram (Chart – 1 and 2).

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Chart – 1

45.58%

14.53%

1.39%

4.67%

24.02%

5.31%

0.16%

4.30%

0.02%

GENERAL FUND 45.58%

EDUCATION FUND 14.53%

SGRY 1.39%

OTHER PROGRAMES 4.67%

DEPOSITS 74.02%

ADVANCES 5.31%

LOANS 0.16%

BRGF 4.30%

PENSION FUND 0.02%

Name of the Fund Receipts % of

Receipts

General Fund 58875.47 45.58

Education Fund 18769.79 14.53

SGRY 1799.56 1.39

Other Programmes 6038.97 4.67

Deposits 31034.67 24.02

Advances 6864.10 5.31

Loans 211.97 0.16

BRGF 5560.85 4.30

Pension Fund 24.22 0.02

Total: 129179.59 99.98

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Chart –2

PIE CHART PAYMENTS OF ZILLA PARISHADS FOR 2008-09

15.64%

1.68%

0.03%4.07%

36.34%

0.15%

17.41%

5.78%

18.90%

1 GENERAL FUND 36.34%

2 EDUCATION FUND 17.41%

3 OTHER PROGRAMES 15.64%

4 SGRY 1.68%

5 DEPOSITS 18.90%

6 ADVANCES 5.78%

7 LOANS 0.15%

8 BRGF 4.07%

9 PENSION FUND 0.03%

Name of the Fund Payments % of

Payments



SGRY 18422.40 15.64


Deposits 22266.43 18.90

Advances 6802.63 5.78

Loans 173.47 0.15

BRGF 4792.19 4.07

Pension Fund 37.18 0.03

Total: 117784.20 100

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4.3 . The pattern of Receipts Payments (Fund wise) of the Zilla Parishads for the year

2008-09 exhibited in the bar chart (chart – 3)

Chart - 3

RECIEPTS & PAYMENTS OF ZILLA PARISHADS

FOR 2008-09 (FUND WISE)

58

87

5.4

7

18

76

9.7

9

17

99

.56

60

38

.97

31

03

4.6

7

68

64

.10

21

1.9

7

55

60

.85

24

.22

42

80

5.3

4

20

50

6.1

7

18

42

2.4

19

78

.38

22

26

6.4

3

68

02

.63

17

3.4

7

47

92

.19

37

.18

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1 2 3 4 5 6 7 8 9

RECIEPTS PAYMENTS

4.4. The pattern of Receipts Payments (Grant wise) of Zilla Parishads for the year

2008- 09 exhibited in the bar chart (chart – 4)

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Chart-4

4.5 The General Fund occupied lion share in Zilla Parishads Fund at 27.10 %,

Loan Fund is insignificant. The Deposits fund share in receipts are 11.80 % as against

9.74 % share in payments

4.6 The Department has conducted the audit of the Receipts amounting to

Rs.129179.59 lakhs and Payments of Rs.117784.20 lakhs as detailed in the

StatementsNo.2(1)to2(2).

RECIEPTS & PAYMENTS OF ZILLA PARISHADS

FOR 2008-09 (GRANT WISE)

8664.8

4

17456.1

5

96.3

0 1949.7

2

28399.1

7

2276.3

5

77.3

4

40.8

5

31.4

5

1239.0

5

45.8

3

411.8

9

149.3

6

10.9

2

5560.8

5

18143.5

7

4711.2

1

18452.7

7

589.6

8

1856.1

5

13412.8

8

1266.8

1

93.2

9

46.5

4

79.5

7

1347.8

8

9.5 455.7

9

218.3

7.0

3

4792.1

9

19494.8

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

RECIEPTS PAYMENTS

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4.7 The trend of the receipts and payments for the last 5 years is shown below.

Sl.

No. Year Receipts Payments

ratio or

receipts and

payment

Increase

in

receipts

Increase

in

payments

%

Receipts

YtY

%

Payments

YtY

1 2004-05 148524 147205 100:81

2 2005-06 121519 123714 100:108 27005 22.22 23491 18.99

3 2006.07 231584 133216 100:90 -110065 -47.53 -9502 -7.13

4 2007-08 146940 126375 100:100 84644 57.60 6841 5.41

5 2008-09 129180 117784 100:79 17760 13.75 8591 7.29

839712 716994

The above table indicates the fluctuation in increasing receipts and payments

i.e., ill economic condition of the institutions. In the year 2008-09 the

expenditure is higher than the receipts.

GRANTS POSITION

5.1 The Zilla Parishads are provided grants by the State / Central Governments to

implement the schemes entrusted to them and also for over all development of

the area under their jurisdiction. The Zilla Parishads have received the grants

as detailed below during the year 2008-09.

5.2 The grants Received by the Zilla Parishads have been enumerated below.

Z.P. Receipts %

Grants 84553.64 65.45

Non Grants 44625.95 34.55

Total: 129179.59 100

5.3 The Grants constitutes 65.45% of Receipts in respect of Zilla Parishads.

AUDIT OBJECTIONS

6.1 During the course of audit of these Zilla Parishads for the year 2008-09, the

defects noticed were already pointed out in the relevant Audit Reports, as

“Audit Objections” which were forwarded to the Chief Executive Authorities

concerned for further action at their end as per the procedure laid down under

the A.P. State Audit Act,1989.

6.2 A total number of 5617 audit objections involving an amount of Rs.38601.28

lakhs were raised in the audit of the Zilla Parishads during the year under

report.

6.3 A Consolidated Statement showing the number of objections raised, amount

involved with institution-wise break-up is annexed vide Statement No.4.

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STATEMENT SHOWING INCIDENCE OF OBJECTIONS IN ZILLA

PARISHADS (2008-09)

Sl.

No. Name of the Category

No. of

Paras %

Amount

in Lakhs %

(1) (2) (3) (4) (5) (6)

1

Non remittance of deduction

recoveries from the work bills / pay

bills / contingent bills etc

1667 29.68 5464.19 14.16

2 Non Production of Records 1367 24.34 16284.98 42.19

3 Excess Payments 735 13.09 174.91 0.45

4 Violation of Rules 443 7.89 4498 17.32

5 Others ., 383 6.82 335.27 0.87

6 Advances pending adjustment 230 4.09 983.74 2.55

7 Non-collection of dues 161 2.87 305.97 0.79

8 Diversion of Grants / Funds 155 2.76 952 1.62

9 Instances of cases of unaccounted for

cash / stores 116 2.07 2235.75 5.79

10 Pendency of Utilisation Certificates 115 2.05 4327.49 11.21

11 Non-utilisation of Earmarked Funds 69 1.23 583.28 1.51

12 Variation in Account Figures 64 1.14 74.26 0.19

13 Non-utilisation of grants before the

lapsable date 37 0.66 198.63 0.51

14 Excess Utilisation of Grants / Funds 26 0.46 152.36 0.39

15 Wasteful Expenditure 23 0.41 6.44 0.02

16 Mis-utilisation of Grants / Funds 10 0.18 47.48 0.12

17 Misappropriations 12 0.21 117.41 0.30

18 Surcharge Certificates recovery

pending 4 0.07 0.00 0.00

19 D.D./Cheques received, but not

realized with in time. 0 0 0.00 0

Total: 5617 100 38601.28 100

6.6 The objections 5617, in Number and the amount involved Rs.38601.28 lakhs

were categorized and their category has been analyzed 29.68% No.of paras involved

and also 14.16% of amount involved pertains to the Non remittance of deduction

recoveries from the work bills / pay bills / contingent bills etc. The next slot goes to

Non Production of Records 24.34% which constitutes 42.19%. These two together

state that records are not properly kept by Zilla Parishads.

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AUDIT-PARAS

Gist of some of the selected audit objections raised during the year 2008-09

under report is enumerated below:

1.VARIATION IN ACCOUNT FIGURES

According to the instructions contained in Government Memo No.

4657/Accts.I/70-I PR Department dated. 16-12-1970, Government Memos No.

1360/Accts.VII/71-1 of PR Department dated. 01.09.1971 and Government

Memo.No.1986/Accts.VI/71-3 of PR Department dated. 02.11.1977 reconciliation of

cashbook balances with the Treasury balances has to be done promptly and regularly

every month.

It was observed in audit that there are certain variations between the Account

Figures of Treasury and Cash Book like Opening Balance in the cash book of the

current year not tallying with the Closing Balance of the Cash Book of the previous

year. Balance of the Treasury Pass Book as per Cash Book are not tallying with the

actual Closing Balance in the Treasury Pass Book as on 31st March. This is happening

due to none crediting of Receipts in to the Treasury Pass Book by the Treasury

Authorities. Receipts credited in the cash book by remittance through Chalans are not

credited in the Treasury Pass Book by the Treasury Authorities. Debiting the cheques

issued by one D.D.O. to another D.D.O. by Treasury authorities. With out explaining

the differences of addition or subtraction are being done in the reconciliation by the

DDO to arrive at the balance actually available in the S. T. Pass Book. In the absence

of reconciliation, it is not possible to know the missing credits if any and wrong debits

and it is likely that mis-appropriations if any are concealed. It is, therefore, necessary

that this work be attended to on time.

Reconciliation between the cash

balance and Treasury pass book balance has not been done in respect of the

Zilla Parishads noted in Statement No. 4 (3) (1) resulting in Non-reconciliation of

amounts aggregating to Rs. 74.26 lakhs in 64 objections.

1.1. VARIATIONS IN ACCOUNTS FIGURES BETWEEN THE ANNUAL

ACCOUNT AND THE PASS BOOKS/CASH BOOKS.

During the course of the audit of Vizianagaram Zilla Parishad for the year

2008-09, it was noticed that there were some variations in account figures as detailed

below.( Para. 7 of the AR)

27

Amount in Rs.

Annual accounts should reflect the financial transaction done by a particular

institution in a year. But as seen above variations in both receipts and charges with

references to pass book all financial transactions were not taken into account which is

irregular.

1.2. VARIATION IN ACCOUNTS FIGURES NEED ECONCILIATION

There is a difference between closing balance of Treasury Pass Book and

Closing balance of Cash Book in treasury column as detailed below. The differences

are to be reconciled and correct balances should be arrived.

# Name of the District

Closing

balance of

S.T.O.

Closing balance

of Cash.Book

Differen

ce

Pa

ra.

No.

1 Z.P.General funds of

Medak Dist.

178234552 178214196 20356 4

2 Z.P.Secondary

Education Fund of

Nalgonda

37224826 27943101 192393 2/1

1.3. PROVIDENT FUND - VARIATION IN ACCOUNTS WITH TREASURY

PASS BOOK - NEEDS EARLY ACTION Rs.84,60,937.

On verification of the receipts and charges from Treasury Pass Book of Z.P.

Srikakulam, it is observed that the figures adopted were wrongly noted and certified

by the Treasury Authorities in the Memo of Payment as detailed below. (Para 1)

1. General Funds

Receipts in the Annual Account 7221042

Receipts in the Pass Book 183751340

Charges in the Annual Account 4663877

Charges in the Pass Book 170668176

2 Sand Cess


Receipts as per R & C Statement 14260299

3 15% EMF allocation for W & CW Funds


Receipts in the Cash Book 4080391

4 9% RWS allocation


Receipts in the Cash Book 2448235

5 Agriculture (Water Sheds)

Expenditure in the Annual Account 1179600

Expenditure in the Cash Book 997500

28

# Month Actual Receipt as

per cash book

Treasury

Reconciliation

figures

Difference

1 7/2008 1,79,45,446 1,79,52,946 (-) 7,500

2 12/2008 2,57,32,046 2,51,82,826 5,49,220

3 1/2009 1,96,43,520 1,95,06,205 1,37,315

4 2/2009 2,16,02,246 1,93,81,488 22,20,758

5 3/2009 1,84,82,856 1,79,29,212 5,53,644

Total 34,60,937

2. EXCESS UTILISATION OF GRANTS/FUNDS

The State Government releases grant-in-aid to Zilla Parishads to meet the

expenditure on developmental works and contingency items like T.A., stationary,

honorarium to the elected representatives etc. It was noticed during the audit that the

Executive Authorities of the Zilla Parishdas were incurring expenditure in excess of

the grant received from the Government either in anticipation of the release of further

grant or withdrawing the excess amount from the General Funds of the institution

without any valid orders.

All such cases of excess expenditure over and above the Grant-in-aid received

are detailed in Statement No. 4(3) (1) to the Report from which it could be seen that a

total amount of Rs. 152.36 lakhs in 26 paras.

3. DIVERSION OF GRANTS

The Zilla Parishads are provided with funds by the State/Central Governments

either by way of grants or by a prescribed share in the Cess, Taxes or Fees collected

by the State Government. All the monies received by the Zilla Parishads from part of

their general funds and they can be utilized for the purposes prescribed under the

relevant Act/Rules.

Incurring of expenditure for purposes other than the prescribed ones without

specific sanction of the Government is not permissible and it amounts to diversion of

funds. In case of specific grants, the grants should be utilized only for the specific

purpose for which the grant is released and no diversion is permissible without the

permission of such grant releasing authority. But it was noticed in audit that

notwithstanding such instructions, diversion of specific grants and earmarked funds is

taking place. It was also observed in audit that expenditure was incurred under certain

grant heads even in the absence of receipt of any grant during the year by diverting

other grants. However, such cases were pointed out under the caption ‘Diversion of

Grants’.

As per Sub Section 3 of Section 198 of the Andhra Pradesh Panchayat Raj

Act, 1994 read with G.O.Ms.No. 446 of PR & RD (Progs. III) Department, dated

29-10-1998, the funds of the Zilla Parishad shall be utilized for payment of pay and

allowances of its officers and other employees, allowances to be paid to the special

invitees and members of Zilla Parishad, its Standing Committee and TA to the

Chairman and Vice Chairman of Zilla Parishad and any item of expenditure directed

29

by the Government for carrying out the purposes of Andhra Pradesh Panchayat Raj

Act 1994 and such other expenses as may be necessary for such purposes.

The Grants – in – Aid are given for utilizing the amounts on specific

objections/purposes. They cannot be diverted to any other purpose vide Rule - 32 of

the Rules prescribing the purposes for which Zilla parishad Fund shall be applied

issued vide G.O. Ms. No. 229 of Panchayat Raj, Rural Development and Relief

(Accts.I) Department dated. 17.06.1997.

Diversion of Grants/ Funds to a tune of Rs. 624.94 lakhs in 155 paras were

diverted to other purposes as detailed in the Statement No.4 (3) (1) appended to this

report.

3.1 ADVANCES – ZPTC ELECTIONS – EXPENDITURE INCURRED – NOT

REIMBURSED TO Z P GENERAL FUNDS – Rs. 1,37,949.

It was noticed during the audit of ZP Medak, at Sanga Reddy, for the year

2008-09 an amount of Rs. 10,77,649 was drawn as an advance from Zilla Parishads

General Fund for conducting elections to Z..P.T.C.s of Achanta, Peravali and

Denduluru in Medak District. Out of the above, an amount of Rs. 9,39,700 only was

adjusted to the Zilla Parishad General Fund till the closure of the audit leaving a

balance of Rs.1,37,949 (Para No.62)

3.2. DIVERSION OF FUNDS - Z.P. GENERAL FUNDS DIVERTED TO SGRY WORKS –

TO BE TRANSFERRED.

During the course of audit of ZP Guntur, for the year 2008-09 it was noticed

that, an amount of Rs.1,43,89,859 as detailed below was drawn and distributed to the

Engineering divisions from the Z.P. General Funds towards payment of SGRY 20%

work which were completed and payment were not made due to non-availability of

SGRY Funds. The authority under which the said expenditure incurred from Z,.P.

General Funds was not produced to audit.

Vr No Date Progs SA No & Date Executive Authority Amount

496/ 10-08 Rc No:2182/P6/28-8-08 EE PR Narasaraopeta 2500000

498/ 10-08 Rc No: 2182/ P6/28-8-08 EE PR Tenali 2500000

499/ 10-08 Rc No:2182/P6/28-8-08 EE PR Guntur 2500000

617/ 12-08 Rc No: 2182/P6/4-12-08 EE PR Narasaraopeta 86428

838/ 3-09 Rc No: 2182/ P6/21-02-08 EE PR Tenali 1441442

839/ 3-09 Rc No:2182/P6/21-02-08 EE PR Narasaraopeta 3372000

840/ 3-09 Rc No:2182/P6/21-02-08 EE PR, Guntur 1989989

Total 1,43,89,859

( Para No. 3(1) of AR of Z.P. General Fund, Guntur District 2008-09 )

30

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE:

Government release special grants to the Zilla Parishads for implementing

specific schemes. These grants are to be utilized for the purposes for which they are

meant for, following the guidelines issued/ norms prescribed and such utilization

should be within the time prescribed. Otherwise, the grants will lapse to government,

unless Government extends the lapsable date of any particular grant or grant releasing

authority

Government issued orders in G.O. Ms. No 666 (Accts-I) Department dated

13-6-1978 extending the period of Utilization of non-salary grants, particularly

Panchayat Raj Grants, up to a maximum period of 18 months instead of end of the

financial year to allow reasonable time to utilize the grant released. According to the

above orders, grants released in the first year of a financial year can be utilized on or

before 30 th September. The Local Bodies did not utilize the grants released within

the lapsable date and thereby huge amounts were left unutilized. The grant

sanctioning authorities were also not approached for extending the utilization period.

Thus the schemes for which the grants released were not implemented effectively and

totally. The unspent balances were also not refunded to the grant releasing authorities.

As per the instructions issued in D.O.No V-

24011/34/2001/NEFWP/NREGA/C2/dt.2-8-07 of the Minister of Rural Development,

Govermnment of India, the unspent balances are to be remitted to the State funds

before the lapsable time. During the course of audit it was noticed that in many of the

Zill Parishads the unspent balances were kept aside neither utilizing them in time nor

remitting the same to the concerned funds.

An amount aggregating to Rs.198.63 lakhs was not utilized by the Zilla

Parishads in the state pointed out in 37 objections as detailed in the Statement No. 4

(3) (1) appended to this report is lying with the Zilla Parishads un-utilized. Non-

Utilization of allocated amount for the Welfare of weaker sections is brought to the

notice of the Government.

4.1. XII FINANCE COMMISSION GRANT – NON UTILIZATION OF FUNDS UNDER

SANITATION –NEEDS UTILIZED

As verified from the connected file of Z.P. Ongole, it was noticed that XII

Finance Commission Grant were released by Commissioner of Panchayat Raj and

Rural Employment, Hyderabad, for maintenance of CPWS and Sanitation works to

Zilla Parishads. But, in Zilla Parishad, Ongole has utilized the amount only for

maintenance of CPW Scheme. But the sanitation grant was not spent and allowed to

be accumulated year by year. Due to non-utilization of sanitation grant, an amount of

Rs.7,98,00,000 was kept idle as detailed below with the Zilla Parishad, Ongole. The

Commissioner , Panchayat Raj and Rural Employment in Memo.No

575/CPR&RE/Accts.II(1)/09, dt:24.2.2009 has also issued guidelines and thereby

instructed the CEOs., to spend sanitation amount to improve sanitation in villages till

they qualified for Nirmal Puraskar. But, no expenditure was incurred till the closure

of the audit for improvement of sanitation facilities in GPs, due to which the

purpose of grant released by Government was defeated and intended beneficiaries

31

were deprived of the benefit. Further allowing the grant to be accumulated year by

year without proper reason i.e. locking up of capital and serves no purpose.

Rs. In Crores.

# Year Install

ment

Amount

received

Amount

utilized

Available

balane

1 07-08 I&IInd 4.00 0.02 3.98

2 08-09 I&IInd 4.00 Nil 4.00

Total 4.00 0.02 7.98

( Para No.2(3) of Audit Report of Z. P.Prakasham District for 2008-09 ) 4.2. ADJUSTED TO Z.P.GENERAL FUNDS - BUT NOT UTILISED.

The Government have issued orders in G.O.Ms. No: 666 PR (Accounts. I)

Department dt: 13-6-1978 extending the period of utilization of the grants up to a

maximum period of 18 months. Grants released in the first half year of the financial

year can be utilized up to the end of the September of the next financial year.

Violating the above rules the grant kept unutilized even after 18 months would need

to be taken to utilize for the purpose for which the grant is release. Otherwise the very

purpose of the grant will be kept in vain.

Few examples of such instances are given in the table.

# Name of the

District Nature of the grant

Amount of the

grant

Para

No.

1 Vishakapatnam Opening of libraries 12,100 6

2 Vishakapatnam Best G.P. Award 17,300 6

3 Nellore Opening of libraries 12,100 6

4 Nellore Best G.P. Award 17,300 6

5 Prakasam Opening of libraries 12,100 2/1

5 Prakasam Best G.P. Award 17,300 2/1

5. MIS-UTILIZATION OF GRANTS :

The Grants meant for specific purposes or earmarked funds shall not be

utilized for any other purpose. Any contingent expenses connected with utilization of

grant, shall be met from the provision of General Fund to the extent permitted. Instead

of the above, the authorities are utilized the specific grants and earmarked funds for

contingent expenditure. This is a mere misapplication of funds and is not a prudent

accounting practice.

During the course of audit, several instances have come to the notice of the

audit that some Zilla Parishads are incurred expenditure in excess of the Grant-in-Aid

received and over and above the budgetary provision. The fact of incurring such

excess expenditure further implies that such expenditure was met from the unspent

balances of some other grants. Necessary steps are called for to curb this sort of

financial indiscipline at the earliest so as to ensure proper utilization of these grants

for which they have been released for. The excess expenditure incurred, wherever

possible, should be got reimbursed from the grant sanctioning authorities duly

explaining the circumstances under which excess expenditure over and above the

grant sanctioned became inevitable.

32

The objectives of expenditure incidental to administration of Zilla Parishads

have been specified in Rule 6 of the rules prescribed the purposes for which the Zilla

Parishad fund shall be applied as amended in G.O. Ms. No. 704, Panchayat Raj, Rural

Development and Relief (Mandal-I) Department dated. 05.11.1994. No expenditure

can be incurred for any other purposes than the specified one.

Contrary to the Government orders the expenditure was incurred on purposes

not authorized under the A.P.P.R Act and Rules framed there under resulting in Mis-

Utilisation of funds to a tune of Rs. 47.48 lakhs 10 objections as detailed in the

Statement No. 4(3) ( 1 ) appended to this Report.

A few cases of Mis-Utilization of funds / grants were noticed in audit and a

few of them are mentioned below. 5.1. POL CHARGES- ADVANCES PAID FOR POL-ADJUSTMENT NOT WATCHED-

LEADING TO MISUTILISATION OF GRANTS-NEEDS IMMEDIATE ADJUSTMENT AND

ACTION AGAINST THE CONCERNED. Rs.50,000.

It is observed in audit that an amount of Rs.50,000 was paid as an advance to

A.A.Brothers, Balaji Junction, Vizianagaram for supply of POL to the Zilla Parishad

official vehicles vide Vr.No.374, dt.29-1-09.But the adjustment of this advance was

not watched and ensured till the close of the financial year. The section incharge is

responsible for watching the adjustment of this advance has failed in doing so.

Moreover, number of times payments to the same dealer were made for supplying the

POL after this advance was made, but no care was taken to adjust the advance paid to

the dealer. In spite of the advance available with the dealer, the Zilla Parishad,

Vizianagaram has continued paying for the actual usage without deducting the

advance. This unfrudent sanction of the contingent advances and non-watching

adjustment as expenditure is highly irregular and amounts to mis-utilisation of the

funds.

Hence necessary action may be initiated against the persons responsible for

their negligence besides ensuring the advance adjusted to the Z.P funds immediately.

( Para No.11 of Audit Report of Z. P., Vizayanagaram District for 2008-09)

6.NON-UTILISATION OF EARMARKED FUNDS

Government vide their orders issued in G.O. Ms. No.450 & 451 P.R. & R.D.

(Programme-IV) Department, dated 9-4-2001 and G.O. Ms. No.38 Women

Development and Child Welfare Department, dated 29-5-98 read with G.O. Ms.

No.704 of P.R. & R.D. Department, dated 5-11-1994 under subsection (1) of section

171 of the Andhra Pradesh Panchayat Raj Act, 1994, every Zilla Parishad shall

allocate in every year the following percentage of its general funds to be spent on the

schemes benefiting the weaker sections.

1. For S.C.s : 15%

2. For S.T.s : 6%

3. For Women & Child Welfare : 15%

33

Further 1/3 of such earmarked funds shall be made over at the beginning of the year to

the A.P. Scheduled Castes Co-operative Finance Corporation / A.P. Scheduled Tribes

Co-operative Finance Corporation / A.P. Women Co-operative Finance Corporation

as the case may be utilize for the benefit of the S.C.s, S.T.s and Women and

Children respectively. The balance of 2/3rd

funds shall be utilized by the Z.Ps / M.Ps

for the benefit of S.C.s, S.T.s, Women & Children in the Z.P, M.P areas. Unspent

balance out of the 2/3rd

funds at the end of the financial year, if any, shall be made

over to the respective corporations.

It is observed in audit that in many cases the funds to be earmarked as per the

orders of the Government were worked out and provided for in their respective budget

estimates. But funds were neither made over to the respective corporations at the

beginning of the year nor fully utilized by the Z.Ps. The unspent balances at the end of

the year were also not remitted to the respective corporations in many cases. Such

inaction had defeated the very purpose of earmarking of funds.

An amount aggregating to Rs .583.28 lakhs pointed out in 69 paras as

detailed in the Statement No. 4 (3) (1) appended to this report is lying with the Zilla

Parishads un-utilized. During the year 08-09 it was noticed that position of utilization

of earmarked funds and transferred to the respective agencies is as follows.

Rs.in Lakhs

#

Nature

of

earmark

% Total

allocation

Total

utilized/transferred % Balance

1 S.C 15 1374.32 1368.34 99.56 5.98

2. W&CW 15 2210.61 1066.23 48.23 1144.38

7. NON-COLLECTION OF DUES

On verification of the revenue collections in Zilla Parishads, it was observed

that huge amounts were left pending realization for longer periods and some of them

were even allowed to become barred by limitation of time. No appropriate action

seemed to have been initiated by the concerned Executive Authorities for realization

of taxes and fees etc., due before they became barred by limitation of time in spite of

various statutory provisions existing for their recovery by way of certain procedures

like distraint, prosecution or filing of suits. Dependence on Government grants gets

lowered if these outstanding dues are realized in time which ultimately increases their

self sustainability. In fact some of these dues cannot be recovered legally now and

constitute a permanent loss to the institutions which needs to be curbed. A case study

of the amounts outstanding/ time barred dues and dues which are likely to become

time barred during the year 2008-09 is given below.

According to the instructions issued in G.O. Ms. No. 99 Panchayat Raj &

Rural Development (Mandals-I) Department dated. 13.02.1990, the Zilla Parishad

Development Officer of a Zilla Parishad shall scrutinize personally from time to time

the records and registers relating to the revenue due to the Zilla Parishad, obtain from

the subordinates or other officers of all items of uncollected arrears of revenue and

take timely action for their realization.

34

A consolidated Statement 4 (3) (1) showing audit objections on Non-

collecation of dues is appended to the Report from which it could be seen that an

amount of Rs.305.97 lakhs was pointed out in 161 paras .

7.1. ZILLA PARISHADS – NON COLLECTION/SHORT COLLECTION OF REVENUE – RS.

29.58 (LAKHS)

An aggregate amount of Rs.29.58 lakhs was pending realization from the

tenants/lessees towards rents, leases on the properties of Zilla Parishads as detailed

below. The Executive Authorities did not take any appropriate action for their

realization within the time fixed, which resulted in, the revenue receipts falling into

arrears and chances of collection becoming more difficult. Appropriate action is needs

to be taken to realize the outstanding amount form the revenue yielding properties of

Zilla Parishads.

Rs. In lakhs

# Name of the ZP and

District Details of Revenue

Para

No.

Amount

due

1 ZP, Kadapa Shopping Complex Rents 5 21.52

2 ZP, Karimnagar Shopping Complex, Rents 6(ii) 3.85

3 ZP, Visakhapatnam Barma stalls Rents 4(4) 2.31

4 ZP, Visakhapatnam Quarters Rent 4(2) 0.68

5 ZP, Guntur Shopping Complex – Amount

Pending from Lessee

4(1) 1.22

Total: 29.58

7.2. SHOPPING COMPLEX - KOTHAVALASA SHOPPING COMPLEX - NON

COLLECTION OF DUES - LONG PENDENCY - NEEDS TIMELY WATCHING AND

PROPER ACTION. Rs.7,44,802.

As verified from the Miscellaneous Demand Register for the year 2008-09, the

following amounts were overdue and pending collection as on 31-03-09.

Old Shopping Complex.

Name of Defaulter

Sarvasri

Pending as on

31309 Rs.

1. K.Veerraju 14400

2. K.Appa Rao 40535

3. G.V.Ramana 38600

4.P.Rama Rao 31630

5. V.Kondala Rao 33120

6. K.Satyanarayana 31225

7. K.Satyanarayana 33080

8. K.A.V.S.Prasad 5680

9. K.Chalamaji Rao

22740

10. V.Venkataramana 36200

11. K.Janardana Rao 26100

12.T.Narasimha murthy 6550

35

B. New Shopping Complex:

The existing Godowns were dismantled and new shopping complex was

constructed. All shops were auctioned and allotted to the highest bidders for 2 years.

As per the DCB 2008-09, the dues staggered to a tune of Rs.1,53,770 as follows:-

Shop No. Name of tenant Dues as on 31.3.09 Rs.

04 K.Veerraju 10x1000=10,000

05 T.Nukaraju 18x1400=25,200

09 P.Varahala Rao 10x2000=20,000

10 G.Nagaratnam 3x2200=6,600

11 N.Rama Rao 8x1000=8,000

13 K.Pydachari 7x2200=15400

14 K.Nukaraju 23x2350=54050

26 Y.V.Y.S.Jaganmohan 22x660=14520

Total: 1,53,770

If this practice is continued, the Zilla Parishad shall loose its income. This

would need to be curtailed through filing cases in the Court for recovering the

amount with interest.

.( Para No.13 of Audit Report of Z. P., Vizainagaram District for 2008-09 )

7.3. AUCTIONS - HEAVY ARREARS PENDING REALISATION - EARLY ACTION

NEED TO BE TAKEN. RS. 2,40,000.

As seen from the register of auctions relating to the weekly sandy of

Kothavalasa, it is observed that the auctioned amount is not fully realised as detailed

below.

# Year Name of the Bidder Auctioned

amount Collected Due

01 2006-07

Sri M.Swaminaidu

S/O.Late Ammatalli

Veerabhadrapuram(V),

Kothavalasa(M)

4,80,000 4,20,000 60,000

02 2008-09

Sri B.Appa Rao,

S/o.Late Appalanaidu,

Tummikapalli(V),

Kothavalasa(M)

5,21,000 3,41,000 1,80,000

Total 10,01,000 7,61,000 2,40,000

13. T.V.Ramana 7010

14. M.Sarayya Setty 16162

15. Y.Yerri naidu 21770

16. P.Demudu 56136

17. B.Ammanna babu 170095

TOTAL: 591032

36

If the lessee has not paid the entire leased amount the Executive Authority

should have taken the action by forfeiting the EMD & FSD etc., further the E.A.

should have not allowed the lessee to lift the sand without paying the entire bid

amount as per tender conditions. The Executive Authorities have not taken any steps

to collect the amount from the above bidders. The Bidder at Sl. No. 1 Sri M.Swami

Naidu has not paid the amount since 2006-07.

( Para No.14 of Audit Report of Z. P.Vizainagaram District for 2008-09 )

7.4. QUARTERS - ZP STAFF QUARTERS - RENT NOT COLLECTED - NEEDS

REALISATION Rs. 67,566.

As verified from the DCB register for the year 2008-09 it is noticed that the

rent fixed by the ZP for quarters owned by the Zilla Parishad was not recovered from

the occupants of the quarters from pay bills and remitted to the General Funds as

detailed hereunder. In Vishkapatnam district such practice is not being adopted

resulting an amount of Rs.61,845 loss caused to the ZP Funds. The DDO has to

recover the rents from the occupants from their salary bills in the succeeding months.

# Name of the

employee O.B Demand Total Collection Balance

1. SattiBabu (PR) ,SA - 22,884 22,884 17163 5721

2. M. Sanyasi Rao 12,470 - 12,470 - 12,470

3. KBVBSR.Murthy

JA

4644 27864 32508 25542 6966

4. RV. Nagaraju, RS 18707 12444 31151 11407 19744

5. VA. Suryanarayana 12,957 - 12,957 - 12,957

6. P.P. Kiran Kumar - 5560 5560 2224 3336

7. P. Ramu - 12,770 12,770 6398 6372

Total 48,778 58,638 1,07,416 45,571 61,845

( Para No.8 of A. R on the accounts of Z. P.,Vishakapatnam District )

7.5. LEASES - SHOPPING COMPLEX - ARREARS OF RENTS - NEEDS

COLLECTION Rs. 5,71,554

Huge arrears of rents in respect of Zilla Parishads Shopping Complex are still

pending realization from the tenants as noted below.

# Name of the Tenant Shop No Amount

1 Sri M. Someswara Rao 1 3,000

2 Smt K. Devi 1 5,024

3 Sri S.M. Hayath 2 10,170

4 Sri P. Venkata Rao 2 2,50,702

5 Sri GSK Prasad - 2,54,005

6 Sri B. Rama Krishna 5 994

7 Sri G. Kesava Rao - 47,659

Total 5,71,554

( Para No.9 of Audit Report of Z. P.Vishakapatnam District for 2008-09 )

37

8.ADVANCES PENDING ADJUSTMENT

It was observed during the course of audit that temporary advances paid for

specific purpose were outstanding for a long time though they should have been got

adjusted through detailed bills and vouchers as soon as possible as per Article 99 of

the A.P. Financial Code. Non-settlement of advances leads to misuse of funds to

avoid refund of unspent amounts. Several objections were raised on such outstanding

advances in the relevant Audit Reports pointing out above the failure of the Executive

Authorities in taking necessary action to get these advances adjusted.

It was also observed that huge amounts of personal advances are also

outstanding for a long time due to the inaction on the part of the Drawing Officers.

The objections are relating to advances pending adjustment from the Staff towards

T.A., pay Festival Advances L.T.C. Marriage Advance, Motor Cycle Advance and

advances for purchase of Materials, goods and services. The Personal advances have

to be recovered in the pay and T.A. Bills and advances for purchase of materials,

goods and services have to be adjusted soon after the purpose is over. Non-

recovery/Non-adjustment of advances for years together is a serious lapse and the

officers who have not recovered the amounts have to be held responsible for their

failure to recover the advances. There is need to review the progress in the recovery

of the advances in the monthly meetings at the Zilla Parishad Development Officers

and to ensure that the outstanding advances are recovered expeditiously.

An aggregate amount of Rs.983.74 lakhs in 230 paras are raised under the

category of Advances Pending adjustment during the year as detailed in the

Statement No.4 (3) (2) appended to this report.

8.1. WORKS - DEPARTMENTAL EXECUTION - ADVANCES PAID TO MANDAL

ENGINEERING OFFICER - PENDING ADJUSTMENT - Rs.1,00,000.

Vide Voucher No.32/18-11-2008, an amount of Rs.1,00,000 was drawn and

paid to Sri U.Y.Ratnam, Mandal Engineering Officer, Mandal Parishad, Makkuva.as

Advance for Construction of Cause way across Gomukhi river at Dabbagedda

departmentally. Even at the end of the financial year neither these advances were

adjusted nor refunded to the ZP funds by the said MPDO. It is also observed that no

Advance Recoverable Register is maintained for the year 2008-09 to check the

correctness of the balances of the previous years. The executive authority has to

ensure its remittance along with interest.

( Para No.13 of Audit Report on the accounts of Z. P.Vizianagaram- District )

8.2.ADVANCES - FESTIVAL AND EDUCATION AND OTHER ADVANCES

NOT ADJUSTED -ADVANCES RECOVERABLE REGISTER NOT

PRODUCED - NEEDS ACTION Rs. 2,42,150.

An amount of Rs. 84,507 was drawn and paid to the staff towards Festival,

Education Advances and other purpose as detailed hereunder . But the same were not

got adjusted to the General Funds at the end of the Financial year. The details of the

recoveries could not be verified as the Advance Recoverable Register was not

produced to audit. Further, since the salaries of the staff is being paid from 010, the

payment of advances to staff from the General funds is irregular.

38

Vr No Name of the employee Particulars of

advance Amount

16/ 4-08 Sri Ch. Venkata rao,

MPDO, K,Kotapadu

Advance for medical 25,000

17/4-08 Smt R.M. Glads, MPDO,

Bheemunipatnam

Advance for medical 25,000

94/ 6-08 N.V.R.Ch. Murthy, Supdt Education advance 3,000

S. Appala raju, SA ,, 3,000

K.N. Narayana Rao, SA ,, 3,000

D. Krishna , SA ,, 3,000

K. Venkata Rao 2,100

P. Sunitha, SA ,, 3,000

Details not recorded in

Advance Register

,, 72,900

124/ 7-08 A. Subrahmanyam , O.S ,, 3,000

A. Srinivasa Rao ,, 3,000

409/ 12-08 Festival advance to staff 89,000

654/2-09 MGM Rao Supdt ZP 7150

Total 2,42,150

( Para No.11 of Audit Report of Z. P.Vishakapatnam District for 2008-09 )

9. VIOLATION OF RULES

It was noticed in the audit that in some cases the Rules / Government

instructions for incurring the expenditure from the funds of the Zilla Parishasds were

violated either due to negligence or ignorance. In certain cases, the funds of the ZPs

were utilized for the purposes other than the permitted ones under the Act / Rules. It

was also noticed that in a few cases, Government instructions were misunderstood or

misinterpreted. Such irregular expenditure incurred was objected in the relevant Audit

Reports.

443 No. of audit objections involving an amount of Rs.6684.19 Lakhs were

raised in the relevant Audit Reports as shown in Statement No.4(2)annexed to the

Report.

Some of such cases are mentioned hereunder

9.1 CONSUMPTION OF PETROL /DIESEL FOR ZP VEHICLES OVER AND

ABOVE THE CEILING – IRREGULAR – RS. 2,20,806-00

Government has fixed consumption of petrol / diesel for all the vehicles of the

officers below the cadre of Secretary vide G.O.Ms.No. 529 GA(OP-II) Dept, dated

13-9-1990, G.O.Ms.No. 148 F & P (FW-Admn-I), Dept, dated 21-10-2000 and in

G.O.Ms.No. 602 PR & RD (Porgs.III), Dept, dated 4-10-2009 read with Govt. Memo.

No. 9558/Progs/91-1, dated 25-2-1991 PR & RD Dept, orders were issued limiting

the maximum ceiling limit per month at 250 liters and 160 liters for the Z.P. Chair

Person and CEO, Z.P respectively. But as verified from the bills relating to the

consumption of fuel of the Vehicles of Z.P, Kadapa for the year under audit, it was

noticed that as much as 10,474.20 liters of fuel was consumed when the limit was

3,360 liters resulting in excess consumption by 7114.20 liters, worth Rs. 2,20,806-00

in contravention of the ceiling fixed in the above G.Os which is highly irregular and

the amount needs to be recovered from the persons responsible.

(Para No.6 of the AR on the General Fund of Z.P.,Kadapa for 2008-2009)

39

9.2 PURCHASE OF STATIONERY WITHOUT CALLING TENDERS –

IRREGULAR- RS 1,61,929/-

An aggregate amount of Rs.1,68,344/- was drawn and paid towards purchase

of stationery by the Zilla Parishad Kadapa. As per G.O.Ms.No.583/GA (OP-III)

Dept, dt:26-10-1998, stationery has to be purchased by Zilla Parishad by estimating

the requirement for the entire year by calling tenders. But, in the instant case the

stationery was purchased in piece meal without calling any tenders resulting in

foregoing the purchase at a competitive price which is highly irregular and serious

violation of rules.

(Para No.6.1 of A.R. on the a/cs of G. F. of Z.P., Kadapa for 2008-2009)

9.3. NON DISTRIBUTION OF THE SAND AUCTION AMOUNT AMONG THE

GRAM PANCHAYATS AND MANDAL PARISHADS - IRREGULAR-.

Rs.1,05,28,255.

During the course of the audit, it was observed that an amount of

Rs.3,21,34,774 was received by the Z.P. towards Seigniorage fees and leases through

the sand auctions conducted by the Mines & Geology Department in the District. As

per the instructions issued in G.O.Ms.No.255, PR dept. dt:2/8/2001, the above

amount shall be apportioned @ 25% to Gram Panchayats, 25% to Zilla Parishad and

50% to Mandal Parishads concerned by the Zilla parishad. But, in contravention of

the said rules, lakhs of rupees were lying with the Z.P as shown below without

distributing to the Mandal Parishads and Grampanchayats for the years 2007-08 and

2008-2009 which resulted in loosing of their legitimate share by the said institutions

and thereby depriving them to take up developmental activities to that extent which is

highly irregular.

Amount in Rs

Amount to be

distributed to

Balance

amount

pending

distribution

as on

1.04.2008

Amount to be

distributed

during

2008-09

Amount

distributed

during

2008-09

Balance

amount to be

distributed as

on 31.03.2009

Grampanchayats

(25%) 20,48,677 80,33,693 65,72,952 35,09,418

Mandal Parishads

(50%) 40,97,354 1,60,67,388 1,31,45,905 70,18,837

Total: 61,16,031 2,41,01,081 1,97,18,857 1,05,28,255

(Para No.16 of the A R on the accounts of the ZP, Khammam for the year 2008-09)

9.4. UTILISATION OF S.F.C FUNDS ON INADMISSIBLE WORKS Rs.20,20,450.

As per the guidelines of the State Finance Commission Grants, works

involving capital nature viz. construction of MPP/ZPP Buildings providing toilets and

drinking water facilities in MPP/ZPP Schools and alteration to old MPP/ZPP Schools

are admissible to be taken up.

40

But, it was observed that the SFC funds were utilized on road works and

construction of Gram Panchayat Buildings, Mandal Resource Buildings against the

guidelines of SFC grant. As such, the expenditure incurred for Rs 20,20,450 is held

under objection.

( Para No.64 of the A.R. on the a/cs of G. F. of the Z.P.,W.G. Dist. for 2008-09)

9.5 NON- COLLECTION OF USER CHARGES ON WATER SUPPLY-IRREGULAR

As per Para No.4 of Annexure.III to G.O.Ms.No.33 Panchayat Raj & Rural

Development (Pts.III) Dept, dated:3-2-2006 the Panchayat Raj Institutions should set

in mechanism for recovery of at least 50% of the recurring cost on O &M of Water

Supply in the form of user charges. As per Para No.15 of

Prog.sNo.10669/CPR&RE/J1/2005, dated:8-2-2006 of the Commissioner of

Panchayat Raj and Rural Employment, Hyderabad, a statement should be furnished

by D.P.O / C.E.O. Zilla Parishad in respect of user charges collected every month by

the 10th

of the Next month to the Commissioner, P.R & R.E. But, it is noticed that no

amount was collected during the year 2008-09 towards user charges and the entire

expenditure was met from the RWS funds which is not permissible.

( Para No.2(3) of A.R. on the a/cs of E.E (RWS), Podili, Z.P. Ongole for 2008-2009)

9.6. PERSONAL DEPOSIT ACCOUNT - TRANSFER OF AMOUNT FROM ONE

BANK TO THE OTHER - FINANCIAL PRINCIPLES PRESCRIBED BY

GOVERNMENT NOT OBSERVED BY THE EXECUTIVE AUTHORITY -

As seen from the Cash book and Personal Deposit Accounts relating to

Backward Regions Grant Fund(BRGF) it could be seen that the Executive Authority

drawn the funds from the Personal Deposit Accounts and transferred the amounts

from one bank to the other without the orders of the Grants Sanctioning Authority. It

is clear that the Executive Authority did not observe the instructions issued by Govt.

vide Go.Ms.No.3 F&P (W&M) Dept. dated: 22-04-2000 in the operation of funds and

possibility of funds without being utilized for the purpose for which it was sanctioned.

The C.E.O. Zilla Paris had not aware of that under section 197 of APPR

Act.1994 all the money received by Z.P shall be lodged in the Govt. Treasury only.

Keeping the Z.P funds in Commercial Banks out side the Treasury is violation of

statutory provision and may leads to misappropriation of funds.

Bank A/c.No Name of Bank Balance Amount

312022092520 Syndicate Bank Anantapur 3,47,59,286

30358599682 SBI(ADB) Agril.Anantapur 50856285

62094791422 SBH Anantapur 6886000

10781 APGB Kanaganapalli 50,00000

042210100001130 Andhra Bank Pamidi 50,00000

01310100005109 Andhra Bank Anantapur 20933000

3042984153 Central Bank Anantapur 17289000

Total: 4,07,23,571

( Para No.31 of Audit Report of Z. P,Anantapur District for 2008-09 )

41

9.7.. CONTINGENCIES – HUGE PURCHASES OF CROCKERY ITEMS –

VIOLATION OF RULES- Rs. 46,140.

During the year an amount of Rs.46,140 was incurred towards purchase of

crockery items for the use in Office. According to the Articles of Financial Code read

with G.O.Ms.No.148, Fin Department Dt.21.10.2000, the Chief Executive Officer,

Zilla Parishad, Vizinagaram was vested with the Powers for Purchase of crockery

items worth of Rs.1,000 Per Annum only. But, in violation of Articles of Financial

Code and orders of Government, huge amount was incurred as usual every year for

purchase of crockery. Government reiterated the instructions vide Para 4 of the

G.O.Ms.No.271 PR&RD Department Dt.10.6.2006, that any extraordinary item of

expenditure shall be incurred with the prior sanction of the Government only.

(Para No.44 of the A.R of G.F, Zilla Parishad, Vizianagaram for 2008-09)

9.8. EXPENDITURE INCURRED WITHOUT BUDGET AND MORE THAN THE

PROVISION IN THE REVISED BUDGET ESTIMATES 08-09 - IRREGULAR -

NEEDS RATIFICATION OF THE GOVERNMENT.

The Revised Budget Estimates 08-09 was got approved by the Government

through G.O.Ms.No.388, PR & RD (Accounts-IV) Dept.dt.17-12-2009.

Though, it was clearly instructed time and again by the Government while

approving Budget Estimates / Revised Budget Estimates of Zilla Parishad to adhere to

the budgetary provisions, as usual, the instructions of the Government were simply

set- a- side, by the CEO of ZP, Srikakulam and expenditure incurred on the following

items more than the allocations in RBE for 08-09 and also in r/o certain items, where

no provision in the BE/RBE.

Item of Expenditure RBE 08-09

Rs.

Expenditure

incurred Rs.

Excess

expenditure Rs.

Purchase of A.C. Machine 0 59000 59000

POL Charges 400000 511758 111758

TA to staff 200000 252525 52525

Vehicle repairs 150000 182120 32120

Printing & Binding 100000 171323 171323

(Para No.4 of the A.R.of Zilla Parishad of Srikakulam for the year 2008-09)

10.NON-REMITTANCE OF THE DEDUCTIONS / RECOVERIES

FROM THE VOUCHERS / PAY BILLS / CONTINGENT BILLS

It was noticed during the audit that various deductions / recoveries affected

from the work bills / pay bills were not remitted to the Government or a part of them

only were remitted in spite of statutory obligation to remit the same to Government

account with in a prescribed time under the relevant statutory provisions which also

include penalty as well as prosecution for non adherence.

The deductions normally made from work bills / pay bills that are to be

remitted to Government account are

42

Work Bills

1. Sales Tax

2. Seigniorage Fees

Pay Bills

1. Income Tax

2. Profession Tax

3. Loan recoveries

The above nature of objections raised during the year under report are 1667

involving an amount of Rs.5464.19 Lakhs which are shown in Statement No. 4(2)

appended to the report.

Some of them are detailed here under

10.1 SALES TAX /VAT DEDUCTED BUT NOT REMITTED OR PARTLY

REMITTED Under A.P.G.S.T Act 1957 as amended from time to time and as per

G.O.Ms.No.556 Revenue (CI-II) Department, Dated 07-08-2000 read with

Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax @

2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for exclusive

civil contracts for laying or repairing of roads and contracts for canal digging lining

and repairing and @ 4% of turnover for all categories of other contracts not falling in

the above mentioned category has to be recovered from the work bills and remitted to

state funds within a week from the date of recovery failing which the Drawing Officer

has to pay personally 24% penal interest besides remitting the amount to state funds.

It was observed that Sales Tax/ VAT deducted at source from the work bills

was not remitted /Partly remitted to the state funds till the close of audit. Such

irregularities noticed were pointed out in the relevant audit reports of the following

institutions. A few of such cases are mentioned below.

Amount in Rs

# Name of the Institution &

District

Amount

Collected

Amount

Remitted

Balance to

be Remitted

Para

No.

1 E.E.(RWS), Palasa,

Srikakulam District

39,968 22,025 17,943 11


Srikakulam District

17,767 0 17,767 11(B)

3 E.E.,P.R, Tekkali,

Srikakulam District

13,779 0 13,779 12

4 E.E.(RWS), Medak District 2,04,752 0 2,04,752 10

Total: 2,76,266 22,025 2,54,241

43

10.2. SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED /PARTLY

REMITTED IRREGULAR Rs. 9,075. As per G.O.MS.No.331, Industries and Commerce (M.I) Department, Dated

21-06-2000, Seigniorage Fees or Dead Rent which ever is higher shall be recovered

from the work bills on all Minor Minerals dispatched or consumed from the land at

the rates specified in the Schedule-I and Schedule-II annexed to the said G.O as the

case may be and to be credited to the consolidated fund of State Government through

the concerned Assistant Director of Mines & Geology of the District. However, it

was observed that though the amounts were recovered from the work bills towards

Seiginorage Fees, the same were either not remitted or partly remitted to State Funds

till the close of audit. Such inaction was pointed out in the relevant audit reports of

the following institutions. Few of such instances are listed below.

# Name of the Institute &

District

Amount

Collected

Amount

Remitted

Balance

to be

Remitted

Para

No.

1 E.E., (RWS) Palasa,

Srikakulam District

23,690 15,597 8,093 11

2 E.E., (RWS) Medak Dist 982 0 982 10

Total: 24,672 15,597 9,075

10.3 NON REMITTANCE OF THE PROFESSION TAX DEDUCTED FROM THE

PAY BILLS.

Profession Tax deducted from the Pay Bills was not remitted to the concerned

Head of Account till the close of the audit. Such inaction of the concerned Executive

Authority was pointed out in the relevant Audit Reports.

Some such instances are listed below.

Amount in Rs

#

Name of the

Institution & District

Amount

Collected

Amount

Remitted

Balance to be

Remitted

Para

No.

1 Secondary Education

Fund, Nellore

19,020 00 19,020 10

2 SecondaryEducation

Fund,Nalgonda

1,775 00 1,775 8

Total: 20,795 0 20,795

NAC Charges

Amount in Rs:

#

Name of the Institution

&

District

Amount

Collected

Amount

Remitted

Balance to

be Remitted

Para

No.


Srikakulam District

3,543 1,542 2,001 11

2 E.E.(RWS), Medak,

Medak District

12,935 0 12,935 10

Total: 16,478 1,542 14,936

44

10.4. NON REMITTANCE OF THE H.B.A DEDUCTED FROM PAY BILLS:

In ZP Karimnagar a sum of Rs. 4,05,000 was recovered from the pay bills of

the staff towards House Building Advance recovery. But, as verified from the relevant

record the above amount was not remitted to the concerned Head of Account till the

close of the audit

10.5. NON REMITTANCE OF THE DEDUCTED LABOUR CESS FROM THE

WORK BILLS:

In EE (RWS), Sangareddy, Medak ZP it was noticed that a sum of Rs.45,471

recovered towards Labour cess in work bills. But, the same is not remitted to the

head of account concerned till the close of audit.

11. NON-PRODUCTION OF RECORDS

The Zilla Parishads have to provide certain basic civic infrastructure and

services like Road, Drain, Street lights, Water Supply, Conservancy and solid waste

management. They also perform certain regulatory functions. They also prepare plans

for economic development and social justice. To fulfill all the desires and needs the

total revenue base needs to be enhanced every year. With the rise in demand for

services, the functionaries need to have effective financial management skills and

accountability practices.

All these functions would be reflected on the record when they were

accounted for as per the provisions contained in AP Account Code which comprises

the comptroller and Auditor General (C&AG) rules together with the local rulings

relating to Local variation in accounts procedure. These initial accounts are to be kept

ready and should produce to Audit for verification. Then only the transparency in

incurring of public money and their utility to the General Public can be reasonably

judged.

Such an important function on the part of the Drawing and Disbursing Officers

in the maintenance and production of records to audit are not properly being

maintained. Thereby, the main access to clear the doubt of transparency in public

expenditure have not been availed. In spite of all these guidelines and instructions, the

DDOs of all local and urban bodies have failed to maintain the records and to produce

the same to Audit when ever the local teams visited their institutions. Under the

category of non – production of records to the Audit, the major part is in works and

the related records such as M.book, estimate file, tenders etc. The others are non

production of vouchers along with the related files and registers. The paras on non

production of records have been drawn from the individual A.Rs of the concerned

institution and their details are furnished here under. Further it is a surprise to note

that the heads of the institutions could not explain why the records could not be

maintained in the office and can be produced when ever they are being demanded by

the Audit Parties and other agencies during their local visits.

45

The financial health of an institution depends up on the quality of the records

that are being maintained to show the accountability of the financial transactions that

occur in the institution. Though, the provisions under Rule, 6 of A.P.State Audit

Rules, 2000 are clear that the onus for production of records to audit lies with the

Executive Authority of the institution, in the following cases the said rule is not

complied with as they have failed to furnish various records to audit as a result of

such inaccessibility to the records several audit objections were pointed out in various

ARs of the concerned institutions. Records like M. Books, connected files, vouchers

in which crores of rupees transacted in many institutions form the major chunk of

audit objections under the category of non production of the records. Transactions

relating to the purchase of various contingent articles, goods etc., were not accounted

for in stock registers and produced to audit. Remittances made to the different

departments etc for which neither the acknowledgements nor any evidence produced

in audit also form part under this category. However, several half-margin letters

issued for production of the required record, the Executive Authorities did not comply

with and resulted in inaccessibility to the records and raising of paras to that extent.

1367 No of objections involving a sum of Rs.16284.98 lakhs were raised

under this category during the year under report. The same is incorporate in

Statement No.4(2) appended to the report.

A few examples raised in the A.Rs for the year 2008-09 are as shown below.

11.1. EXECUTION OF WORKS – CONNECTED MEASUREMENT BOOKS –

ESTIMATES ETC., - NOT PRODUCED.

During the course of audit for the year 2008-09 it was noticed that various

works were executed under various schemes. But, the connected estimates M-Books

and connected files were not produced for audit for verification. Due to which the

correctness of the payment made could not be verified in audit. Few such instance

cases are given below

# Name of the Zilla Parishad & Dist., Amount involved

Rs. Para No

1 Srikakulam, Srikakulam 4,34,30,250 10

2 Guntur, Guntur 17,84,190 6 of GF

3. Chittoor, Chittoor 2,69,171 6 of GF

4. Vijayanagaram, Vijayanagaram 82,40,511 33 of GF

5 Visakhapatnam, Visakhapatnam 9,39,976 30 of EF

11.2. NON PRODUCTION OF THE PAID VOUCHERS:

Audit came across several cases where amounts were drawn from the funds of

the Zilla Parishad, but the connected paid vouchers /sub vouchers /files were not

produced to the audit for verification. Such irregularities noticed were pointed out in

the relevant Audit Reports. A few of such cases are given below.

# Name of the Zilla Parishad & Dist., Amount involved

Rs. Para No

1 General Funds,Anathapur, 78,22,000 5(4)

2 General Funds, Kurnool 18,56,622 21

46

11.3NON PRODUCTION OF THE CONNECTED RECORDS / REGISTERS / FILES

During the course of the audit and scrutiny of the records for the year 2008-09,

it was noticed that the following records were not produced for audit, to certify the

correctness of the expenditure incurred.

# Name of the

Zilla Parishad Particulars

Amount

Rs. Para No.

1 Karimnagar,

Out going recoveries – Paid Receipts

not Produced

1,16,18,849 6(v)

2 Guntur, Remittances Challans and

Acknowledgements not Produced

3,23,592 523

3 Kadapa, Suit Register and Files not produced 1,65,000 7

4 Karimnagar,

Purchase of New Xerox Machines to

Z.P- Connected file not Produced

1,23,703 4(5)

5 Nalgonda, Purchase files and Stock Register 2,05,680 17 of GF

11.4 NON PRODUCTION OF THE PAYEES ACKNOWLEDGEMENT:

During the course of the Audit on the accounts of the following Zilla Parishad

Institutions, the Payees Acknowledgments were not produced for verification. Hence,

it is not ensure that the amounts were received by the organizations or not. Thereby

there is every chance for misappropriation of funds.

# Name of the Zilla Parishad & Dist.,

Amount

involved

Rs.

Para No.

1 Sangareddy, Medak District 2,00,63,368 21

2 Nalgonda, Nalgonda District 16,29,415 23

3 Karimnagar, Karimnagar 1,37,250 21

11.5. SAND AUCTION-AMOUNT DISTRIBUTED TO MPP/GP-CONNECTED

FILES NOT PRODUCED:

On verification of the cash book for the year 2008-09, it was noticed that a sum

of Rs.1,90,86,353 has been adjusted under sand auction and out of which an aggregate

amount of Rs.40,16,187 has been released to the M.P.P/G.P.But, the demand and

connected auction files showing the total amount to be adjusted and the balances if

any were not put forth.

The released amount of Rs.40,16,187 has been drawn through self checks and

distributed to the M.P.P/G.P through demand drafts. The practice of the drawing the

amount through the self checks and the adjustment to the M.P.P/G.P through D.D-s is

against the financial rules, the connected counter foils and payees acknowledgement

from the individuals were not produced to the for verification.

( Para No.25 of Audit Report of Z. P., Srikakulam District for 2008-09 )

47

12. MIS-APPROPRIATIONS

The following types of Mis-appropriations were noticed during the course of

audit.

1. Un-disbursed Pay and Allowances not refunded.

2. Short disbursed the amounts drawn

3. Excess drawls not refunded.

4. Deductions made from the pay bills to be remitted towards Group Insurance

Scheme, Life Insurance polices, General provident Fund etc., not remitted to

concerned heads.

5. Mis-appropriations by wrong totals.

6. Amount drawn without vouchers

A consolidated statement of audit objections on misappropriations noticed in

the audit is annexed vide statement No 4(2) . A total number of 12 cases involving an

amount of Rs.117.41 lakhs were pointed out in the relevant Audit Reports.

12.1 SGRY- DEPOSITING SURPLUS SGRY FUNDS IN THE PERSONAL

ACCOUNT OF CEO-ZP- MISAPPROPRIATION OF SGRY FUNDS - NEEDS

RECOVERY Rs. 13,37,389.

As per Govt instructions Vide DON V- 24011/ 34/2001- IV FF WP/ NREGS

DT; 2-8-2007 The Funds released under SGRY should be utilized on or before 31-3-

2009 and the funds if any kept un-utilized should be remitted to the NREGP Funds.

Accordingly on verification of the records pertaining to the Mandal Parishad,

Rambilli, it was noticed in audit that an amount of Rs. 13,39,645 was remitted by

MPDO M.P., Rambilli through cheque No: 477129 Dt: 31-3-2009 to the SGRY Funds

of Z.P. While verifying the records of SGRY for the year 2008-09 it was observed

that the unspent amount of Rs. 13,39,645 which was stated to have been remitted

was not accounted for the funds of SGRY till the closure of the Audit. When the

above matter was brought to the notice of the Zilla Parishad Authorities it was replied

that the details in respect of above amount of Rs.13,39,645 were not available .

But on verification of inquiry file and on verification of contents noted in

Cheque No: 746326 Dt: 9-4-2009 in which amount was remitted to SGRY Funds , it

is noticed that the above unspent amount of Rs.13,39,645 from MPDO, MP, Rambilli

was deposited in Andhra Bank, Waltair by opening new account No:

063310100004456 instead of crediting the same to the SGRY Funds at ZPP. The

unspent amount of Rs. 13,39,645 was not credited so far till closure of audit. In

Contrary to the instructions issued under SGRY and contrary to the Financial Rules

the unspent amount of Rs. 13,39,645 deposited in Personal Account and withdrawn

on self cheques and in the names mentioned in the table resulting into

misappropriation of funds to a tune of Rs. 13,39,645 as shown below.

48

Date of drawal Cheque No Amount Remarks

9-4-09 746327 15000 Self

15-4-09 746328 50000 Self

17-4-09 746326 100000 Leela Krsihan

21-4-09 746329 1042376 ,,

24-4-09 746330 30000 Self

25-4-09 746331 100000 K. Bala Krishna

27-4-09 B.C 22

TOTAL: 1337389

As no expenditure was booked under SGRY duly enclosing vouchers with

Voucher Numbers for the above amounts, it is construed in audit that the entire

amount of Rs. 13,37,389 was misappropriated. Early and effective action would

need to be taken to recover the amount from the persons responsible.

( Para No.46 of Audit Report of Z. P, Vishakapatnam District for 2008-09 )

12.2 PARISHAD EDUCATION FUND-AMOUNT DRAWN THROUGH SELF

CHEQUE - TRANSACTION NOT ENTERED IN CASH BOOK - CHEQUE AMOUNT

CREDITED IN GENERAL FUND ACCOUNT OF ZILLA PARISHAD DETAILS OF

PAYMENTS NOT PRODUCED - AMOUNT MISAPPROPRIATED - NEEDS

RECOVERY AND ACTION. Rs. 29,93,325.

As verified from the Cheque Book of Educational Contingent Grant, it was

noticed that an amount of Rs.29,93,325 was drawn from Treasury through self cheque

No. 826291 Dt: 3-3-09. This cheque amount was not encased from Educational

Contingent Fund Treasury Pass Book. As verified from the Cash Book of the

Educational Contingent grant, there are no entries recorded in respect of self cheque

drawn through cheque No.829621/Dt.3-09 for Rs.29,93,325. The connected records

were not produced for verification in audit. Hence, it is constructed that the amount

was misappropriated. Necessary disciplinary action also would need to be taken

against on the persons responsible besides recovering the same.

( Para No. 10 of A.R. of Parishad Edn fund Z. P,EG, District for 2008-09 )

12.3. SFC GRANT RECEIVED - CHEQUE ISSUED BY C.E.O ZP, ONGOLE BUT

NOT ACCOUNTED FOR IN PASS BOOK OF EE PR PARCHUR- MIS

APPROPRIATION OF Rs. 1,00,000.

As verified from the Grants Appropriation Register along with the Cash Book,

an amount of Rs.1,00,000 was released to EE,PR Parchur, by the C.E.O., Zilla

Parishad, Ongole through Cheque No.0051116, dated 1-1-2009 vide Procgs

No.P3/1755/08,dt.30-12-08. As verified from the Bank Statement, the said amount

was not taken into Account of EE., PR, Parchur. But, as verified from the Cash

Book of the C.E.O., Zilla Parishad, General Fund, Ongole the said amount was

encashed in the month of 1/2009. As the amount was not taken in to the Bank

Account or Cash Book of EE PR Pachur, hence it is construed that the amount was

misappropriated.

( Para No. 36 of Audit Report of Z. P,Prakasam District for 2008-09 )

49

12.4. PROVIDENT FUND - MISAPPROPRIATION OF AMOUNTS FROM ZILLA

PARISHAD PROVIDENT FUND - RS.46,16,000.

As verified from the Abstract Registers, Ledgers, Nominal Registers,

Schedules, Cash Book, Pass Book-.etc... of provident fund in Zilla Parishad, for the

year 2008-09, the following defects were noticed.

(1). Opening balance and Closing Balance amounts shown in respective

individual accounts were not countersigned by the competent authority.

(2) . Opening Balance, Closing Balance and interest columns were not being

forward and reconciled correctly from time to time.

(3). In certain cases, names of the individuals were not being noted in the

Ledger Register. Only P.F Account Numbers of the respective individual

were only noted.

(4) . It was observed that necessary postings relating to monthly subscriptions of

P.F deductions from the salary bills of the individuals were not being

posted in ledger register for last 5 years.

(5). In some cases, it was noticed that postings were made in the Abstract

Register, but the same was not in accordance with the P.F. ledger.

(6) Provident Fund part final withdrawals and temporary advances were

sanctioned without updating individual accounts in ledger.

Such irregular maintenance of records lead to the loss to a tune of Rs.46.16 lakhs

as detailed below.:

(i) Applications manipulated.

During the verification of Records it was noticed that some of P.F subscribers

applied for part final withdrawals (Statement enclosed). But as verified from the

applications of the individuals and nominal register, the names of respective Provident

Fund account holders in the applications did not match with the Provident Fund

account numbers in the nominal register. Hence it is construed that the names of the

Provident Fund account holders were altered and amount drawn through benami

names instead of original names.

(ii) Fake entries made in the Abstract Register.

In spite of suitable audit objections already being raised in para No: 50 of

Zilla Parishad General Fund of 2007-2008, no action has been taken for rectification

of the defects as pointed out there in on the maintenance of Zilla Parishad Provident

Fund Ledger. Further, during the period under audit, it was observed that the same

irregularity was being continued. Applications of provident fund holders and their

respective account numbers the balance amounts available etc- were being

manipulated. ( Statement enclosed).

50

(iii) Creation of Fake schedules.

Provident Fund amounts deducted from the pay bills of Individual concerned

towards P.F. subscription/ adjustment of D.A arrears etc-to be credited basing on the

schedules furnished by the D.D.O.s duly countersigned by the S.T.O concerned.

Instead of that, it was observed that the amounts deducted from the subscriber and

name of the subscriber in the Provident Fund Schedules and the Schedules of the Sub

Treasury Office did not agree each other and the same were manipulated as detailed

below.

Month

& Year

Name of the

employee as

per nominal

Register

Name of the

employee as

per Fake

Schedule

Information as per Fake Schedules

Z.P P.F

Number

S.T.O

Employee

code

Amount

(Rs.)

1 2 3 4 5 6

5/2008 Kallakuri

Ammi Raju

K.Chandra

Shekhara

Rao

2116 0415631 5000

11/2007 Kallakuri

Ammi Raju

K.Chandra

Shekhara

Rao

2116 0415631 5000

(iv) Defects in maintenance of Provident Fund Ledger & Subsidiary Registers:-

As verified from the records, the following defects were noticed in

maintenance of P.F ledgers subsidiary registers as shown below.

The Abstract and Ledger Registers were not brought up to date and duly

counter signed by the competent authority concerned from time to time.

The opening balance, closing balance, subscriptions, adjustments of D.A

arrears were taken in ledger register as per manipulated applications (i.e. fake

applications).

It was observed from the registers (i.e. ledger and abstract registers) relating to

previous years and manipulated applications that the individuals who were sanctioned

part final withdrawals were already retired or expired. It is prima facie the amounts

tampered which is quite irregular as per Treasury and Financial Code.

In other some cases, it was observed that some of pages from the ledger which

might have shown that P.F. accounts were being closed were intentionally removed

from register. But the valid reasons if any were not pointed out in audit in verification.

(v) Cheques were not issued in a proper way.

Cheques of P.F. part final withdrawals were to be dispatched from dispatch

section. But, it was told in audit that the cheques were handed over to the applicants in

person. But, in that case, the acknowledgements in token of receiving the cheques

were not produced to audit.

(v) Utilization Certificates are not taken from Competent Authority:-

It was observed that the utilization certificates issued by the Head Master/

Mandal Education Officer stating the utilization of the part final withdrawals

concerned were not furnished to audit for verification.

(vii) Tampering of records - withdrawal of part final amounts:-

51

In the light of the above an aggregate amount of Rs.55,76,000 as detailed in

the statement was mis-appropriated by way of tampering the records, such as names

of Provident Fund account holder and their Provident Fund Account Numbers.

Mostly, the amount drawn as Part-Final withdrawals by the Provident Fund holders

was Mis-appropriated. Further, the issue of Cheques to the Provident Fund holders

were also not made in a proper way i.e. through dispatcah section. Instead of doing

that the cheques were issued by hand.The payees acknowledgements were also not

pointed out in audit.

Therefore in the light of the above it is construed that the competent

authority, supervising authority and Drawing and Disbursing Officer concerned have

grossly violated the due procedures causing loss to a tune of Rs.46,16,000 by way of

Mis-appropriation. Therefore a detailed investigation needs to be taken besides

making recovery of the amount of Rs.46,16,000 from the person/persons responsible

under R.R Act and furnished the information to audit for verification.

( Para No.46 of A. R of Z. P, West Godavari District for 2008-09 )

12.5. XII F.C GRANT-FDRs UNDER XII F.C. GRANT TRANSFERRED AND

DEPOSITED INTO OTHER BANK AT KAKINDA-TRANSACTIONS NOT TAKEN

INTO CASH BOOK-INTEREST NOT CREDITED-MISAPPROPRIATION OF

FUNDS- Rs. 8, 30,386.

During the course of audit for the year 2008-09, it was noticed that a sum of

Rs. 4,14,00,000 was deposited in various banks. Out of which a sum of

Rs.2,54,00,000 was reinvested along with the interest. The remaining balance of

Rs.1,60,00,000 was not drawn and reinvested along with the interest of Rs.5,25,594

even after maturity date.

Further, the concerned Bank Pass Book in which the above FDRs were

deposited along with the amount of Rs. 2,50,00,000 drawn on 17-3-09 from Sub-

treasury was also not made available for audit. This is evident that the Executive

Authority has deposited the funds under XII FC in the bank other than the VSP Dist

with malafide intension and to maintain the Pass books un-authorizidely which

resulting violation of rules and misappropriation through interest accrued by Deposits.

As verified from the above pass book and other records it was noticed in audit

that only a sum of Rs 5,25,597 towards interest which was due on 18-03-09 on FDRs

transferred to Kakinada was only remitted to the XIIFC. Funds and the remaining

amounts which were drawn through self cheques were not remitted to XIIFC funds.

As the amount drawn on self cheques was duly transferred to some other bank it is

noticed in audit that the entire amount was thus misappropriated and caused loss to

the funds as noted below

# Names of Bank & FDR No.

Fax

value

Amount Deposited in Andhra

Bank with interest

1 S.B.H. Alamarada

TDR No. 000106/31-5-08

20-00 1. BC.No. 166048/18-3-09 - 700000

2. BC.No. 166049/18-3-09 - 700000

3. BC.No. 166050/18-3-09 - 662126

2062126

52

2 Punjab & Sind Bank 20-00 BC. No. 006445/19-3-09 - 2098408

3 ING Vysya Bank, VSP, TDR

No.752091028860 Dt: 6-9-08

25-00 - 19-3-09 2628835-62

4 SBI, Ukkunagaram

TDR.No.216414/6-10-08

40-00 1.BC.No.605601/18-3-09 - 4083153

2.BC.No. 605602/28-3-09 - 7172

3. BC.No. 605595/18-3-09 - 3076

4090401

5 BOB, Dabagardens

0529005/6-20-08

20-50 BC.No.559987/19-3-09 - 2050180/-

6

APGUB.

Muralinagar

144703/20-11-08

20-00 1.145871/18-3-09 - 950000

2.145872/18-3-09 - 950000

3.145873/18-3-09 - 126290

4.145874/18-3-09 - 5621

2031911

7 Andhra Bank Dabagardens,

TDR. No. 84003/20-6-2008

15-00 18-3-09 1563733

160-00

Principle 16000000

Interest 525594

Total 16525594

Amount drawn from Treasury

& deposited in Bank

25000000

Total deposit in Andhra Bank

Kakinada

41525594

Interest occurred on A/c No: 034710100001459 not remitted to 11th

Finance Fund

Thus, an amount of Rs. 8,30,386 was misappropriated . Further the details of

interest accrued on the amount of Rs.2,65,00,000 deposited was also not made

available for audit.

Date Amount

20-3-2009 333026

31-3-2009 128835

15-4-2009 73733

5-5-2009 98302

5-5-2009 88176

5-5-2009 7484

5-5-2009 2640

7-5-2009 5945

7-5-2009 66695

7-5-2009 683

7-5-2009 21197

16-5-2009 16542

3-8-09 385

2-6-09 500000

Total 1355083

Amount transferred to 11 th finance Fund A/c No:

4456

83525597

Amount of interest 830386

53

The matter would need to be investigated and the interest accrued on deposits

may be arrived and recovered the same from the persons responsible .

( Para No.52 of Audit Report of Z. P.Vishakapatnam District for 2008-09)

12.6. CONTINGENCIES-HUGE AMOUNTS INCURRED FOR XEROX INSPITE OF

PURCHASE OF NEW XEROX MACHINE-MISUTILISATION OF FUNDS

:Rs.40,000.

During the year 2008-09 nearly an amount of Rs.40,000 was spent towards

Xerox at different times and the amounts were drawn both exclusively and as part of

the contingency bill every month. This huge expenditure on Xerox was incurred

inspite of availability of a new Xerox machine in the Zilla Parishad . Even the sub

vouchers produced for the Xerox did not contain any details like No. of copies made

and price charged for each copy etc.,

Hence it is suggested to use the in-house Xerox machine to the extent possible

and cut down on the expenditure on Xerox from the outside.

( Para No.10 of Audit Report of Z. P.Vizayanagaram District for 2008-09 )

13. EXCESS PAYMENTS

Excess payments under the following categories were pointed out in the Audit

Reports of the respective Zilla Parishads in the State.

1. Excess payment due to erroneous pay fixations.

2. Irregular sanction of leaves

3. Excess payment of Travelling allowances.

4. Excess and irregular payment of leave travel concession.

5. Excess payment of house rent allowances.

6. Excess payments of surrender leave salary.

7. Excess payment in works.

The inadmissible excess payments made are recoverable from the persons

responsible.

735 No of objections involving a sum of Rs.174.91 lakhs were noticed under

this category during the year under report. The same was incorporated in Statement

No.4(2) appended to this report.

13.1. GENERAL FUND A/c 2008-09- VEHILE FUEL CHARGES -INCURRED

MORE THAN THE LIMITATION BY CEO/ Dy.CEO - IRREGULAR - NEEDS

RECOVERY Rs. 1,15,704.

In G.O.Ms. No: 602 PR & RD ( Progs -III) Deptt Dt: 4-10-90 R/w Govt

Memo No: 9558/ Prog-IV/ 91-1 Dt: 25-2-1991 PR & RD, there are certain ceiling

for usage of fuel for the vehicles used by the Government Officials. During course of

audit of expenditure of Zilla Parishad General Fund A/c of ZP Visakhapatnam, for the

year 2008-09, it is noticed that the fuel consumed charges used more than the limits

prescribed for Vehicle provided by the Government to the officials as detailed below.

54

Vr No &

Date Vehicle Month

Lts

actually

Used

Amoun

t paid

Lts

to be

used

Amount

admissib

le

Excess

paid

25/30-4-

08

AP 31 6822

AP 31 A 8388

AP 11 C8279

3/08 320 17,830 160 8,898 8,932

63/5-08 ,, 4/08 306 17,009 160 8,898 8,111

89/5-08 ,, 5/08 420 23,365 160 8,898 14,467

145/7-08 ,, 6/08 332 16,199 160 8,898 7,301

180/8-08 ,, 7/08 529 27,046 160 8,898 18,148

275/ 10-08 ,, 8/08 477 26,144 160 8,898 17,246

353/10-08 ,, 9/08 357 20,450 160 8,898 11,552

381/11-08 ,, 10/08 370 19,609 160 8,898 10,711

407/ 12-08 ,, 11/08 186 10,850 160 8,898 1,952

656/ 1-09 ,, 12/08 261 12,929 160 8,898 4,031

594/2-09 ,, 1/09 336 18,694 160 8,898 9,787

639/ 3-09 ,, 2/09 299 12,364 160 8,898 3,466

Total 1,15,704

The excess amount paid towards POL should be recovered from the persons

responsible unless excess expenditure be ratified by the Government.


13.2. CONTINGENCIES-WATER CHARGES PAID TO GVMC FROM THE

GENERAL FUNDS - IRRGULAR - NEEDS RECOVERY Rs. 41,556.

An amount of Rs. 41,556 was drawn and paid to the GVMC towards water

charges of Z.P. Quarters as detailed below. But as per sub rule 2 of FR 45-IV the

water charges have to be born by the staff who occupied the quarters. Hence

necessary action may be taken to recover the water charges from the staff and made

good to the Zilla Parishad, General Funds.

Vr No: Details of expenditure Amount

24/4-08 1/08 to 3/08 10,398

143/ 7-08 4/08 to 6/08 10,389

543/1-09 7/08 to 9/08 10,389

661/ 3-09 10/08 to 12/08 10,389

41,556


14. WASTEFUL EXPENDITURE

The canons of financial propriety envisaged in the Andhra Pradesh Financial

Code are sacrosanct for all Government Authorities entrusted with authorizing or

incurring of expenditure from public funds. They are expected under Articles 3 to

exercise the same diligence and care in expending public money under their control as

persons of ordinary prudence would exercise in respect of their own money.

Government have issued instructions through various orders and also incorporated in

the statutes of Local Bodies the various items on which public money can be

expended and the principles to be adhered to while expending on such items. Yet, it

was noticed in audit that the funds of Zilla Parishads were several times incurred

55

without adhering to the laid down principles leading to the wasteful expenditure of

public money. All the cases of such wasteful expenditure observed in the audit of

Zilla Parishads for the year 2008-09 were expenditures that were avoidable,

extraordinary and lacked proper planning.

The purposes for which the Zilla Parishad Fund may be applied include all

objects expressly declared obligatory or discretionary by the relevant laws or rules

made there under and in general everything incidental to administration. Contrary to

rules and instructions, an amount aggregating to Rs. 6.44akhs in number of paras 23

was spent during the year on wasteful item. The wasteful expenditure noticed during

the course of the audit of the Zilla Parishads is in the following orders:-

1. Purchase of Maps and Charts not commenced by the Government/Director of

School Education, A.P. Hyderabad.

2. Huge expenditure on inaugural functions of the offices.

3. Publication charges of achievements made in news papers.

A few of such cases pointed out in the Audit Reports classified according to the

type of their wastage are illustrated here under

14.1 PURCHASE OF OPERATING SYSTEM (WINDOWS VISTA BUSINESS VERSION)

WASTEFUL EXPENDITURE –-Rs. 1,41,939.

During the course of audit it was noticed that a sum of Rs.1,41,939 was spent

from ISL funds for purchase of 14 units of operating systems VISTA Business

Version from M/s Silicon Business Solutions Pvt., Limited, Hyderabad. In the above

expenditure the following irregularities were find out the ISL funds are meant for

constructions of community latrines in rural areas not for other purpose.

1. when the Window XP is available purchase of Windows vista is wasteful

expenditure, as the VISTA is a failure operating system and not useful for the regular

office work.

2. While purchasing the Software/Hardware for the use of computers technical

guidance from the authorities of APTS/NIC/GDS is required. But the same was not

obtained in this regard. As the Operating System purchased without technical advice

from the concerned authorities and the same is not used for its purpose.

3. The connected stock register relating to the details pertaining to installation of

Windows VISTA Operating System is not produced for audit for verification of the

correctness of the stock available in stores.

Therefore, it is construed that the entire amount spent for the above purpose is

wasteful and need to be recovered from the persons responsible... (Para No.26 of the

A.R of Zilla Parishad, Khammam Disrict for 2008-09)

14.2. ADVERTISEMENT PUBLISHED ON THE OCCASION OF SAKSHI DAILY PAPER

OPENING DAY BY HONORABLE CHAIR PERSON – WASTEFUL EXPENDITURE.

Rs..25,920.

During the course of audit it was noticed a sum of Rs. 25,920 was drawn and

paid in voucher No.456/12/08 to Sakhsi Telugu Daily News paper towards the

payment for advertisement charges for publishing the congratulatory message to

56

Sakshi by the Honorable Chair Person by way of self Cheque. The advertisement

should be related tenders, leases auctions and notices regarding to the staff of the

Office (if the information was not possible to send personally) were admissible vide

G.O.Ms.No.704/PR Dt.5.11.1994. Hence, the above expenditure is a wasteful and

needs to be recovered from the person responsible and made good to the ZP funds, as

the said advertisement is no way re;ated tp tje activies of ZP.

(Para No.9.1 of the A.R of G. F, Zilla Parishad, Kadapa for 2008-09)

15. INSTANCES OF CASES UNACCOUNTED FOR

Under Section 197 of Andhra Pradesh Panchayat Raj Act, 1994 all moneys

received by the Zilla Parishad shall be properly accounted for and lodged in the

nearest Government Treasury in the personal deposit account of the Zilla Parishad.

Further the Zilla Parishad Chief Executive Officer shall arrange for the proper

maintenance of stock accounts as well as collection of revenue and cause verification

at the end of every half year as required in G.O.Ms.No.559, Panchayat Raj, Rural

Development and Relief (Accounts-I) Department dt.5.9.1994 owing to failure to

check periodically as prescribed, an amount aggregating to Rs. 2235.75 Lakhs

remained unaccounted for which 116 objections raised as detailed in the Statement

No.4 (3) appended to this report.

16. PENDENCY OF UTILIZATION CERTIFICATES

According toArt 211-A (2) of the Andhra Pradesh Financial Code Volume-I,

read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, it is the responsibility of

the Grant Receiving Authority to send the Utilization Certificates in the proforma

prescribed duly certified by the District Audit Officer, State Audit Department. But

heavy No. of Utilization Certificates were not furnished to audit for certification and

transmission to the Grant ReleasingAuthorities concerned.

In G.O.Ms.No. 507, Fin (TFR) Deptt., dt. 10-4-2002, the Government have

among others prescribed the pre-condition under para 12 of G.O. for further drawal of

Funds from April, 2002 onwards by the Local Bodies / Public Sector Enterprises,

Autonomous Bodies and other Grant-in-Aid institutions as follows.

“Utilization Certificates certified by the Statutory Auditor, that the funds

previously released have been fully and properly used for the purpose for which they

have been sanctioned” be furnished.

A aforesaid Government orders are not being observed by the Executive

Authorities resulted in heavy pendency of Utilization Certificates to be furnished to

the Grant Releasing Authorities. Such cases are reported in the ARs of ZP s shown in

the statement appended herewith.

As per instructions issued in Article-211-A (a) of the A.P. Financial Code,

Volume I, it is the responsibility of the grant receiving authority to send the

Utilization Certificate’s in the proforma prescribed, duly getting them certified by the

concerned District Audit Officers. But it was found during the course of audit that a

large No. of Utilization Certificate’s were pending receipt, an amount aggregating to

57

Rs.4327.49 Lakhs for which 115 paras raised on Pendency of utilization

certificates as detailed in Statement No.4(3). Proper utilization of the grant could

not be certified in audit. Even there is a chance for deviation of the works and also

chance for fraud. Due to non-furnishing of the UCs, the further grant would not be

received.

16.1. U.CS - NON - SUBMISSION OF UTILIZATION CERTIFICATES BY

THE EXECUTIVE AUTHORITY TO CHIEF EXECUTIVE OFFICER, ZILLA

PARISHAD ELURU.

According to Article 211(A) of A.P. Financial Code Volume -I, it is the

responsibility of the grant receiving authority to send the utilization certificates to the

grant releasing authority duly certified by the District Audit Officer, State Audit. The

utilization certificates in respect of grants as detailed below have not been furnished

to audit for verification and onward transmission to Government through the Chief

Executive Officer, State Audit, Zilla Parishad, Eluru.

# Name of the Grant Total Amount(Rs.)

1 T.F.C Grant 2,00,00,000

2 S.F.C Grant 1,27,08,097

3 35% General Funds 4,08,08,456

4 9% D.W Funds 57,13,224

5 15% SC Funds 71,48,721

6 6% ST Funds 12,16,875

7 15% W.W Funds 81,70,340

(Para No. 63 of Audit Report of Zilla Parishad, Eluru W.G.Dist. for 2008-09)

16.2. ZP, KADAPA- ADVANCE-SANCTION OF MARRIAGE ADVANCE UTILIZATION

CERTIFICATE NOT PRODUCED-AMOUNT NOT DEPOSITED IN LUMP SUM.

During the course of audit of ZP Kadapa for the year 2008-09, it was noticed

that on the following vouchers an aggregate amount of Rs.21,33,000 was drawn and

paid to the employees towards Marriage Advance for the year 2008-09 as given below

as per rule 15-D of the Provident Fund Rules.

As prescribed in Rule 15-D of Provident Fund Rules, the subscriber shall

furnish a Utilization Certificate to the Sanctioning Authority within the period of one

month from the date of Marriage failing which the entire amount shall be recovered

and deposited into the fund in a lump sum. But, in the following cases the connected

Utilization Certificates were not produced and amount was not remitted either, which

is against the rules.

Statement showing the sanction of Marriage Advances Ucs not produced in

Kadapa District.

58

# Vr.No.&

Date

Name of the Employee &

Designation Sarva

Sri/Smt

PF No. Purpose of sanction Amount

(Rs.)

1 95/18.04.08 K.Jaganatha Reddy, HM 8690 Marriage Advance to

his daughter 400000

2 153/05.08 T.C.Reddemma 9942 Marriage Advance to

his daughter 150000

3 179/5-08 P.Nageswar Reddy, SGT 8475 Marriage Advance to

his daughter 50000

4 653/7-08 K.Venkatarami Reddy, HM 10970 Marriage Advance to

his daughter 55000

5 688/7-08 Y.Sarda Devi, SGT 11519 Marriage Advance to

his daughter 35000

6 858/8-08 V.Ramakrishna Reddy,

SGT 11811

Marriage Advance to

his daughter 52000

7 888/8-08 B.Ramanuja Naidu, SA 8420 Marriage Advance to

his daughter 95000

8 943//8-08 J.Kalavathamma, SA 9487 Marriage Advance to

his daughter 150000

9 949/9-08 N.Viswanatha Reddy, HM 10688 Marriage Advance to

his daughter 40000

10 1164/108 A.Badri Narayana,SA 9614 Marriage Advance to

his daughter 72000

11 1493/11-08 K.Narayana,SA 10618 Marriage Advance to

his daughter 95000

12 1497/11-08 P.Changalrayadu,SGT 12579 Marriage Advance to

his daughter 40000

13 1547/12-08 A.Ramasubbaiah,SGT 13009 Marriage Advance to

his daughter 120000

14 1765/12-08 CV.Subba Reddy, HM 8464 Marriage Advance to

his daughter 400000

15 1908/2-09 N.Venkataramana,O.S. 11153 Marriage Advance to

his daughter 129000

16 1936/2-09 S.Abbdual Razak,HM 8917 Marriage Advance to

his daughter 100000

17 2032/3-09 U.Kondaiah,SA 11136 Marriage Advance to

his daughter 150000

Total 2133000

16.3. DEPARTMENTS – UTILIZATION CERTIFICATES NOT PRODUCED KADAPA

DISTRICT -- GENERAL FUNDS- AMOUNT RELEASED TO VARIOUS

INSTITUTIONS/DEPARTMENTS.

During the course of audit an amount of Rs.8,20,72,528 was drawn from the

Zilla Parishad, General Funds and released to the various departments as detailed

below. But the Utilization Certificates were not produced for audit. Hence action

should be taken to obtain the Utilization Certificates and produce to audit for

verification.

#

Vr.No.&

Date Purpose and to whom released Amount

1 110/6-08 EE RWS Rajampet towards operation and

maintenance of CPWS Schemes

1334500

2 110/6-08 EE RWS Pulivendala towards operation and

maintenance of CPWS Schemes

3500000

3 112/6-08 Assistant Director, Agriculture (SC) Badvel 177750

4 112/6-08 Assistant Director, Agriculture (SC) LR Palli 177750

59

5 112/6-08 Assistant Director, Agriculture (SC)

Rayachoty

177750

6 113/6-08 Assistant Director, Agriculture (SC) Kadapa 177750

7 266/9-08 Member of Secretary DWSC Kadapa (TFC )

for sanitation

20000000

8 267/9-08 EE PR Kadapa for Repairs to A.C.Guest

House in ZP

500000

9 331/10-08 EE RWS Rajampet for maintenance of CPWS 1490500

10 331/10-08 EE RWS Pulivendala for maintenance of

CPWS

5045000

11 332/10-08 EE RWS Kadapa for maintenance of CPWS 238038

12 366/11-08 Pay and accounts officer telugu ganga project

Kadapa for Construction of new meeting hall

ZP Kadapa

5000000

13 440/12-08 EE PR Kadapa for Repairs to A.C.Guest

House in ZP

130000

14 492/1-09 Commissioner, AMR, APARD, Hyderabad 200000

15 513/2-09 EE RWS Kadapa for maintenance of CPWS 587490

16 514/2-09 EE RWS Rajampt for maintenance of CPWS 1997000

17 514/2-09 EE RWS Pulivendala for maintenance of

CPWS

2250000

18 606/3-09 Assistant Director, Agriculture (SC) Badvel 246250

19 606/3-09 Assistant Director, Agriculture (SC) LR Palli 246250

20 606/3-09 Assistant Director, Agriculture (SC)

Rayachoty

246250

21 608/3-09 Assistant Director, Agriculture (SC) Kadapa 246250

22 614/3-09 SC RWS Kadapa for sanitation 39800000

Total 83768528

16.4 ZP, KHAMMAM-ZILLA PARISHAD GENERAL FUNDS -9% DRINKING WATER

FUNDS RELEASED TO EXECUTIVE AGENCIES-UTILISATION PARTICULARS

WANTING Rs. 26,44,416

During the course of audit of the General Fund of the Zilla Parishad,

Khammam, it is noticed that the chief Executive Officer, ZP, Khammam have

released 9% drinking water funds to the Executive Engineers of RWS Project

Divisions, Khammam and Kothagudem as detailed below and paid through the PAO,

Khammam, subject to submission of Utilization Certificates. The Executive Agencies

have not furnished the Utilization Certificates till the close of audit. The Zilla

Parishad authorities have not taken any action for obtaining the Utilization

Certificated from the concerned.

In the absence of the Utilization Certificates the correctness of the expenditure

incurred by the Executive Agencies could not be verified in audit. The same would

need to be obtained and produced to audit for verification to admit the expenditure.

60

# Vr.No. & Date Amount Name of the Executive Agency

1 36/06.05.08 46126 E.E.R.W.S.Khammam

2 111/19.06.08 59977 E.E.R.W.S.Khammam

3 420/05.11.08 99908 E.E.R.W.S.Khammam

4 340/29.09.08 60000 E.E.R.W.S.Khammam

5 424/13.11.08 210000 E.E.R.W.S.Kothagudem

6 421/08.11.08 200000 E.E.R.W.S.Khammam

7 476/10.12.08 34080 E.E.R.W.S.Khammam

8 505/26.12.08 30000 E.E.R.W.S.Khammam

9 552/22.01.09 500000 E.E.R.W.S.Kothagudem

10 581/30.01.08 49529 E.E.R.W.S.Khammam

11 629/26.02.09 199468 E.E.R.W.S.Khammam

12 693/31.03.09 89244 E.E.R.W.S.Khammam

13 692/31.03.09 196366 E.E.R.W.S.Khammam

14 694/31.03.09 29718 E.E.R.W.S.Khammam

15 695/31.03.09 120000 E.E.R.W.S.Khammam

16 652/20.03.09 720000 P.A.O.Khammam

Total 2644416

16.5 ZILLA PARISHAD –SEIGNIORAGE GRANT PAID TO VARIOUS AGENCIES –

UTILISATION PARTICULARS NOT FURNISHED Rs.35,25,000.

During the course of audit of the General Funds of ZP, Khammam, it is

noticed that the Chief Executive Officer, Z.P., Khammam have distributed

seigniorage grant to various agencies as shown below during the year, subject to

submission of utilization certificates. The Executive Agencies have not furnished the

Utilization Certificates required till the close of audit. The ZP authorities have not

taken any action for obtaining the same.

# Vr.No. & Date Amount Name of the Executive

Agency

1 82/13.06.08 400000 E.E.P.R.Khammam

2 112/19.06.08 200000 E.E.P.R.Khammam

3 166/05.07.08 200000 E.E.P.R.Khammam

4 215/05.08.08 200000 E.E.P.R.Kothagudem

5 298/24.09.08 200000 E.E.P.R.Khammam

6 305/25.09.08 950000 E.E.P.R.Khammam

7 308/25.09.08 200000 E.E.P.R.Khammam

8 361/17.10.08 200000 E.E.P.R.Khammam

9 419/5.11.08 300000 E.E.P.R.Khammam

10 653/20.03.09 500000 PAO,.Khammam

11 655/20.03.09 175000 E.E.P.R.Khammam

Total 3525000

16.6. ZILLA PARISHAD GENERAL FUND-6% S.T. EARMARKED FUNDS

CONTRIBUTION AND ALLOCATION MADE TO VARIOUS AGENCIES- UTILISATION

PARTICULARS NOT FURNISHED Rs. 21,50,000.

During the course of audit of the General Funds of the ZP, Khammam, it is

noticed that the Chief Executive Officer, ZP, Khammam has contributed and

61

allocated 6% S.T.funds to the various agencies as shown below during the year,

subject to submission of Utilization Certificates. The Executive Agencies have not

furnished the utilization certificates till the close of audit. The ZP authorities have not

taken any action in this regard.

But the executive agencies have not submitted the utilization certificates to ZP

authorities. In absence of the same the correctness of the expenditure incurred by the

executive agencies could not be verified. The same would need to be obtained and

produced to audit for verification to admit the expenditure.

# Vr.No. & Date Amount Name of the Executive Agency

1 48/17.05.08 300000 E.E.P.R. Kothagudem

2 189/29.07.08 400000 E.E.P.R. Kothagudem

3 219/11.08.08 300000 E.E.P.R. Bhadrachalam

4 380/23.10.08 200000 E.E.P.R. Kothagudem

5 533/12.01.09 200000 E.E.P.R. Khammam

6 610/24.02.09 200000 E.E.P.R. Kothagudem

7 649/20.03.09 550000 P.A.O. Khammam

Total 2150000

16.7. KHAMMAM-CONTINGENT GRANTS – UTILISATION CERTIFICATE NOT

FURNISHED –NEEDS ACTION .

In continuation of para No.10 of the Audit Report for the year 2007-08 and on

verification of the Annual Accounts of the Parishad Education Fund for the year

2008-09, the contingencies grant released by the District Educational Officer,

Khammam, the expenditure booked and balances left over for each year is as detailed

below.

Year Opening

Balance

Grants

Releases Total Expenditure Balance

1991-92 - 619520 619520 328334 291186

1992-93 291186 1014188 1332374 354653 977721

1993-94 977721 - 977721 649068 328653

1994-95 328653 - 328653 - 328653

1995-96 217903 - 328653 110750 217903

1996-97 (-)47747 - 217903 265650 (-)47747

1997-98 45432 189000 141253 95901 45432

1998-99 1043885 1386000 1431352 387467 1043885

1999-00 (-)56153 - 1043885 1110038 (-)56153

2000-01 (-)280318 - (-)56153 245165 (-)280318

2001-02 1001182 1305000 1024682 23500 1001182

2002-03 917552 598885 1600067 682515 917552

2003-04 627032 199551 1117103 490071 627032

2004-05 1822021 1791705 2418737 596716 1822021

2005-06 1399511 200134 2022155 622644 1399511

2007-07 4734641 4199698 5599209 864568 4734641

2007-08 4734641 3799181 8533822 1410109 7123713

2008-09 7123713 - 71,23,713 2,64,145 68,59,568

62

As on 31.03.09, the outstanding balances of contingencies grant is

Rs.68,59,568. The Grant Appropriation Register is not being properly maintained.

Necessary action would need to be taken to maintain the Grants Appropriation

Register with an opening balance of grant Rs.71,23,713 as on 01.04.08. Immediate

action would to be taken to furnish the year wise Utilization Certificates for the year

1991-92 to 2008-09 to the District Audit Officer, State Audit, Khammam for counter

signature and onward transmission to the Grant Releasing Authority.

16.8. NELLORE - GRANTS ADJUSTED TO Z.P.P. AND DISTRIBUTED TO

MANDAL PARISHAD, GRAM PANCHAYATS etc., -UTILISATION CERFICIATES

NOT OBTAINED - NEEDS EARLY ACTION.

`The following Grants were adjusted to the Zilla Parishad,Nellore under

general funds during the year under audit and inturn distributed among the all

Mandal Parishads in the District. But, the Utilization Certificates for the amounts

sanctioned were not obtained and produced to audit for verification

.

The details of releases under each head were as detailed below.

# Nature of Grant Amount No.of U.C.s

1 Best Gram Panchayat award 17,300 1

2 Opening libraries in S.C. Localities 12,100 1

3 Contingencies and TA to MPPs 2,78,000 1

4 Honorarium to MPTC members 26,45,600 1

5 Honorarium & TA to Non- official of

M.P.P.

3,59,200 1

( Para No.38 of Audit Report of Z. P ,Nellore District for 2008-09 )

16.9. CONTINGENT AMOUNT PAID TO HEAD MASTERS OF THE Z.P. HIGH

SCHOOLS IN THE DISTRICT - UTILISATION CERTIFICATES NOT

FURNISHED:-

As verified from the cash book along with the connected file, an amount of

Rs.42,90,000 was permitted to be distributed to the High Schools of the Zilla

Parishad, in Prakasam District basing on the number of students available in the

schools vide Progs.Rc.No.E1/1418/2004 Dt.29-7-2008 of the Chief Executive Officer,

Zilla Parishad, Ongole. No Utilization Certificates in the prescribed Proforma and

certified by the District Audit Officer, State Audit, Ongole as required were obtained

from the concerned Head Masters of the High Schools so far to certify the correctness

of the expenditure incurred.

( Para No.6/2 of Audit Report of Z. P ,Prakasham District for 2008-09 )

16.10. UTILIZATION CERTIFICATES NOT PRODUCED -- GENERAL FUNDS-

AMOUNT RELEASED TO VARIOUS PURPOSES TO OTHER EXECUTIVE

AGENCIES.

According to Article 211-A(2) of the A.P. Financial Code Vol -I, it is the

responsibility of Grant Receiving Authority to furnish the U.C.s in the prescribed

proforma and certified by the District Audit Officer, State Audit. The following

Grants were adjusted to the Zilla Parishad under General Funds during the year

under audit and distributed among all the Mandal Parishads in the District. But the

Utilization Certificates for the amounts sanctioned were not obtained and produced to

audit for verification.

63

The Executive Authority has not taken any steps to recover the unspent

amount if any from the agencies concerned. Hence, action would need to be taken to

obtain the Utilization Certificates duly recovering the unspent amount from the

concerned.

# Vr.No.&

Date

Name of the Grants

Transferred

Name of the Executive

Agency

Amount

Rs.

Para

No

1 29/02.06.08 General Fund,

Karimnagar

District. Sports Council,

Karimnagar

65000 24

2 95/15.02.08 1/3rd

share of 6% ST

EMF of General Fund,

Karimnagar

Member Secretary, A.P.,

Co-opertative Finance

Corporation, Karimnagar

510592 25

3 94/15.07.08 1/3rd

share of 15% SC

EMF of General Fund,

Karimnagar

Executive Director,

S.C.Corp.,, Co-op.,Sociaty

Ltd, Karimnagar

1276481 26

4 Progs.No.B1/B

6/278/09

dt.21.2.09

6% ST EMF Grant EEPR., Peddapalli,

Karimnagar

120000 27

5 69/23.06.09 9% of General Fund EEPR(RWS),Manthani,

Karimnagar

25000 29

6 342/10.11.08 9% of General Fund EEPR(RWS),Manthani,

Karimnagar

39000 29

7 267/14.01.08 9% of General Fund EEPR(RWS) Manthani,

Karimnagar

115000 29

8 4/09.04.08 9% of General Fund EEPR(RWS) Karimnagar 148814 30

9 266/14.10.08 9% of General Fund EEPR(RWS),

Karimnagar

50000 30

10 362/12.08 9% of General Fund EEPR(RWS) Karimnagar 83182 30

11 340/10.11.08 9% of General Fund EEPR(RWS), Karimnagar 75000 30

12 68/11.6.08 Seignerage Charges of

ZP., KMR

EEPR.KMR 903247 31


ZP., KMR

EEPR.KMR 470000 31


ZP., KMR

EEPR.KMR 248800 31

15 230/17.9.08

Seignerage Charges of

ZP., KMR

EEPR.KMR 833148 31


ZP., KMR

EEPR.KMR 409910 31


ZP., KMR

EEPR.KMR 1230309 31

18 356/ .12.08 Seignerage Charges of

ZP., KMR

EEPR.KMR 165000 31


ZP., KMR

EEPR.KMR 897396 31


ZP., KMR

EEPR.KMR 108632 31


ZP., KMR

EEPR.KMR 209537 31


ZP., KMR

EEPR.KMR 290407 31


ZP., KMR

EEPR.KMR 408210 31


ZP., KMR

EEPR.KMR 525924 31


ZP., KMR

EEPR.KMR 52727 31


ZP., KM

EEPR(RWS), KMR 140000 32

64


ZP., KMR



ZP., KMR


29 235/17.9.08


ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR



ZP., KMR

EEPR(RWS) ,Manthani,

Karimnagar

1118000 33


ZP., KMR


Karimnagar

210000 33


ZP., KMR


Karimnagar

405000 33

45 301/23.10.08


ZP., KMR


Karimnagar

280000 33

46 341/.11.08 Seignerage Charges of

ZP., KMR


Karimnagar

410000 33

47 476/12 .2.09 Seignerage Charges of

ZP., KMR


Karimnagar

60000 33

48 489/02.09 15% W&CW

Fund, KMR

EEPR., Peddapally 80000 44

49 489/02.09 General Fund of ZP,

KMR

DM&HO.,KMR 300000 45

50 106/22.07.08 Gneral Fund of ZP, KMR EEPR (RWS), KMR 50000 47

51 442/29.01.99 TFC Grant, KMR SEPR(RWS), KMR 2000000

0

48

52 272/17.10.08 TFC Grant, KMR EEPR(RWS),KMR 7495500 49

53 430/01.09 TFC Grant, KMR EEPR(RWS), KMR 7495500 49

54 185/07-08 Seigniorage fee MP

share,Kadapa

MP Galiveedu,Kadapa 3680214 32

55 192/08-08 SFC MP Share Kadapa MP Kalsapade, Kadapa 570000 32

56 492/1-09 General fund of Kadapa Commr.,

AMR,APARD,Hyd

200000 30

57 267/9-08 General fund of Kadapa EEPR Kadapa for AC

repairs in ZP Guest house

500000 30

65

17. SURCHARGE CERTIFICATES RECOVERY PENDING

In accordance with the provision of the State Audit Act, 1989 and Rules issued

thereunder, the audit of local authorities i.e., ZPs, and schemes as entrusted by the

Government is being conducted and various defects noticed during the audit also

pointed out in the relevant ARs every year. In the case of serious irregularities,

Special Letters are also issued to the Chief Executive Authorities concerned to make

the loss good to the funds of the institutions concerned.

Pursuant to the special letters, surcharge action as per Sec. 10 of the State

Audit Act, 1989 is initiated for recovery of the amounts involved in the clear cases of

loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular

payments. The amount surcharged have to be recovered from the concerned treating

them as Revenue Recoverable under Revenue Recovery Act , 1864 and as per sub-

rule 5 of rule 9 of A.P. State Audit Rules issued in G.O.Ms.No. 130, Finance &

Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the

cases mentioned in the statement appended herewith.

As per Section 10 of the A.P. State Audit Act, 1989 and Sub- rule 1 (b) of

Rule 9 of A.P. State Audit Rules 2000, issued in G.O. Ms. No. 130 Finance &

Planning, Dated: 08-09-2000, the Director of State Audit is empowered for initiating

surcharge proceedings against the persons responsible for causing loss to the funds of

various local authorities. Accordingly the Director of State Audit is issuing Surcharge

Certificates.

After issue of Surcharge Certificate, the course of action available to the

person surcharged is either to remit the surcharged amount with in 60 days after the

date of service on him of the Surcharge Certificate or to appeal to Government against

such surcharge certificate.

If the person Surcharged does not appeal against the Surcharge Certificate

issued and also fails to remit the surcharged amount copies of all Surcharge

Certificates on which no action has been taken for recovery shall be communicated to

the District Collector concerned, by the surcharge issuing authority, to initiate action

for recovery as if they were the arrears of land revenue. The District Collector shall

send the particulars of the said recovery to the said surcharge issuing authority. But

during the course of audit it was noticed that no such action has been taken on SCs

issued by the State Audit Department thereby the very purpose of the surcharge action

is deprived of. Action would need to be taken in recovering the surcharged amounts

from the surchargee who were not reacted within the time as per rules. The inaction of

the revenue department in this regard become lenient in making proper expenditure

and encourages them for misappropriation and fraudulent expenditure.

It is observed in audit for the year 2008-09 that recovery of the Surcharged in

number of paras 04 is pending as at the close of the audit detailed in Statement No.

4(3) to this report.

66

17.1 SURCHARGE CERTIFICATES ISSUED-PENDING RECOVERY Rs.46,556.

The following Surcharge Certificates were issued to the following Executive

Engineer as detailed here under. Action would need to be taken to recover the same

from the persons responsible and to remit the same to the concerned funds as per

rules.

# Year of

AR

Para

No.

Name and Designation of

the Surchargee

Amount

Surcharg

ed

SC No.& Date

1 2 3 4 5 6

1 1993-94 18 Sri C.Venkatapathi, EE 3,050 385/1/01-02,

dt.27-2-2002

2 1993-94 17 Sri C.Venkatapathi, EE 2,468 385/1/01-02,

dt.27-2-2002

3 1993-94 19 Sri M.Nagi reddy,EE 1,924 25568/1317/M/02-1

dt.18.03.03


dt.18.03.03


dt.18.03.03

6 1996-97 20 SriG.Murali Manohar,EE 4,261 23853/243/M1/03-01

dt.13.04.04

7 1996-97 24 SriG.Murali Manohar,EE 2,568 23853/243/M1/03-01

dt.13.04.04

8 1998-99 23

(a)(b)

Sri.M.Abdul Kareem,EE 7,483 28082/242/M1/03-

01,dt.2-12-04

9 1999-

2000

17 Sri.M.Abdul Kareem,EE 4,484 1216/10/M1/04-1

dt.4.12.04

10 20 Sri.M.Abdul Kareem,EE 1,682 1216/10/M1/04-1

dt.4.12.04

11 27(a) Sri.M.Abdul Kareem,EE 7,191 1216/10/M1/04-1

dt.4.12.04

12 31 Sri.M.Abdul Kareem,EE 5,277 1216/10/M1/04-1

dt.4.12.04

Total 46,556

18. OTHERS

There are other irregularities pointed out in audit which do not come under the

above 17 categories. A few examples are narrated in brief.

A Consolidated Statement No. 4 (3) showing audit objections on others is

appended to the Report from which it could be seen that an amount of Rs. 335.27

lakhs was pointed out in 383 Audit Paras .

18.1. H.B.A LOAN LEDGER ACCOUNTS OF THE PROVINCIALISED NON

TEACHING STAFF OF Z.P. SRIKAKULAM NOT MAINTAINED

PROPERLY –NEEDS EARLY ACTION:

As verified from the Loan Ledger of Loan funds of Zilla Parishad, Srikakulam

for theyear 2008-09 during the course of the Audit, it is noticed that an amount of Rs.

67

55,84,500 was already sanctioned to the provincialised non teaching staff of Zilla

Parishad, Srikakulam towards HBA for construction of House /Purchase of Ready

Built House/ for repairs of the house / purchase of House site as the case may be but

the installments of the advances recovered from the loanees were not properly entered

in the ledger by making necessary postings and arriving the outstaying balance at the

end of the financial year. Precisely the defects noticed at the time of Audit are:

Total loan amount sanctioned was not clearly shown in the ledger.

Individual wise installments were not fixed

In Majority of the cases principal and interest amounts were not distinctively

indicated.

The Closure of the account in the cases of the total recovery i.e. Principal and

interest was not certified.

In case of the Retired/Deceased employees, the date of retirement /Death was not

mentioned.

Yearly recoveries were not totaled and balance left over was not shown

Even if in such cases where the monthly recoveries are recorded, the

particulars of the challans in which the amounts were remitted to the loan fund were

not noticed.

Therefore action would need to be taken to update the ledger accounts of the

said loanees and produced to audit for verification.

(Para No.22 of Loan fund, ZP Srikakulam District for the year 2008-09).

18.2 16% CONTINGENCIES-REFRESHMENT CHARGES SEEMS TO BE HIGH-

NEEDS ACTION TO REDUCE IT. (RS. 3,00,413+ Rs.27,34,055).

During the course of audit, it was noticed that an amount of Rs.3,00,413 was

incurred towards refreshment charges during the year 2008-09 as detailed here under

and the expenditure seems to be high and needs action to reduce it.

As verified from the Annual Account Statement, an amount of Rs.27,34,055

was incurred to wards refreshment charges. But head wise details were not produced

to Audit for verification as required.

(Para No.46 of Loan fund, ZP Srikakulam District for the year 2008-09).

18.3. RECEIPTS OF STATUTORY INCOME NOT WATCHED - INCOME LOST -

NEEDS EARLY ACTION FOR REALIZATION.

It is the responsibility of the Charges Receiving Authority to watch the

demand and receipt of statutory income guaranteed in the Acts and Rules .

68

The following are the details of statutory income not realized.

# Statutory

Income Periods for which yet to be received

Amount

Realised

1 Rs. 4 Grant IV quarter 4322200

2 Surcharge on

Stamp duty

A register would need to be maintained or

watch the adjustment of stamp duty from the

Registrar of Stamps & Registration Department

12527723

3 Seigniorage fee

grant

Vide G.O.Ms.No. No, 335 PR & RD Dt. 6-8-

1996 the Mandal share was 37.5 % out of the

total receipts towards Seigniorage Charges

collected. Action would need to be taken for

ultimate adjustment of Seigniorage share by

addressing the Director of Mines /

Commissioner Panchayat Raj under Sub head

20 assistance to the Mandal Parishads for

apportioning Seigniorage fee collection (

37.5%) this is to be adjusted quarterly through

Commissioner, Panchayat Raj

7704700

4 PS Charges

The works executed under different Charges by

the Grampanchayats in Mandal are being

supervised by Mandal Engineering officer.

Hence the PS Charges recovered form the bills

would need to be adjusted to Mandal Parishad

General Funds

5 Profession Tax

38 % profession tax realised in the Mandal area

should be adjusted to Mandal Parishad general

Funds vide G. O. Ms. No. 544 Revenue CT -II

Dept Dt. 12-7-99 read with letter Rc. No.

191/99-B Dt. 26-11-99 . This has to be

adjusted through commissioner, Panchayat Rah

at the end of every quarter vide G. O. Rt. No.

565 PR & RD Dt. 31-3-1999.

-

6 Markets

For the ZP markets, the mandal share was 37.5

% of total l income. For the Mandal , Markets

the share was 50 % but this was not ealized

during the year Vide ( G.O. Ms. No. 628 PR &

RD Dt. 23-9-1995.

-

7 Entertainment

Tax

40 % total tax collected has to be realised and

adjusted to funds. But this was not done. -

The details of the assigned revenues received from time to time shall be

recorded in the Miscellaneous Demand Register and the DCB shall be maintained by

addressing the authorities of the collection department concerned as below.

(Para No.47.of Loan fund of ZP Srikakulam District for the year 2008-09).

69

18.4. AMOUNT TRANSFERRED TO N.E.D.C.A.P. SRIKAKULAM - AUTHORTY

WANTING NEEDS ACTION - Rs.20,80,000.

On verification of the cash book, it was observed that an aggregate amount of

Rs.20,80,000 was drawn and paid to NEDCAP as detailed under 15% allotment

towards Women & Child welfare during the year 2008-09.

However, the authority under which the said amount transferred to the

NEDCAP was not put forth by the Chief Executive Officer, Zilla Parishad Srikakulam

without which the expenditure cannot be admitted in audit . Therefore, action may be

initiated to produce the authority along with the connected U.Cs and other record for

verification of audit.

# Rc.No./date Amount transferred to

NEDCAP

1 2208/08/B5/20-9-08 20,00,000

2 2208/07/B5/15-12-08 80,000

TOTAL: 20,80,000


18.5. 12TH

FIANANCE CHARGES SCOPE -IRREGULARITY NOTICED -ACTION

CALLED FOR ACCOUNT NO. 11152337371 SBI, SRIKAKULAM.

On verification of the 12th

Finance Account it was observed that the following

irregularities were taken into as against the rules prescribed in the G.O.Ms.No.33 PR

& RD Dept. Dt. 3-2-06 and progs. No.10669 CPR/RE/2005,Dt. 8-8-06.

1. The closing balance was not reconciled with the Bank Pass Book.

2. The interest accrued was not noted in the cash book as required.

3. The total Charges shall be distributed proportionately based on the

number of hand Pumps available at Zilla Parishad level.

4. Amount shall be allocated to the Gram Panchayats as per the census of

the 2001.

5. An aggregated amount of Rs.4,87,08,007 has been incurred to

maintain the following schemes 6. P.W.S.Schemes 7. Staff salaries

8. Restoration of defunct PWS Schemes

9. Repairs to P.W.S Schemes

10. Purchase of Spare parts

11. Indiramma sanitary latrines, Adharsha houses for 2007-08

12. Power consumption charges

13. Paid to abetment charges

However, the head wise expenditure particulars were notfurnished for

verification and the connected vouchers, M.Books,Stock files were not produced to

audit for verification . Therefore, the matter may be investigated and action taken in

this regard.

70

ABSTRACT

Opening Balance : 60,68,169

Receipt : 5,76,50,162

Total: 6,37,18,331

Expenditure 4,87,07,938

Closing balance 1,50,10,393


18.6. MISCELLANEIOUS DEMAND REGISTER - NOT MAINTAINED PROPERLY.

The MDR in respect of all miscellaneous items like rents on ZP Lands and

buildings , sites , other recoveries of revenue etc., were not entered separately and

recoveries were also not watched properly. All the misc., revenues, i.e., all items

such as revenue yielding properties should be taken to the MDR, and their

realization watch irregularly. In the absence of the fixation of demand, it could not

be verified whether the entire amounts due to Zilla Parishad, Visakhapatnam have

been realized promptly or not. Any loss sustained due to non proper maintenance of

register would need to be made good by the persons responsible. The abstract arrived

at for surcharge on stamp duty was not attested by the Chief Executive officer, Zilla

parishad, For other items no abstract was prepared. The demands for other dues were

not recorded and recoveries watched..

b. Register of Properties.

The register of properties in which the Zilla Parishad Building & Lands on

which rents and lease amounts to be derived and entered was not produced to verify

whether all the properties on which such income is due to Zilla Parishad was realized

in full after fixing up of rents and obtaining lease deeds etc., Early action would need

to be taken to produce the register of properties along with miscellaneous Demand

Register. In the absence of the year wise details, it could not be verified whether the

amount due to be barred by limitation or not.

(Para No.59 of Loan fund, ZP Srikakulam District for the year 2008-09.

18.7. APPROVED CONSOLIDATED ACTION PLAN NOT PRODUCED.

As per Para No: 14 of the Progs No: 10669/CPR& RE/J1/ 2005, Dt: 8-2-06

of the Commissioner of Panchayat Raj and Rural Employment , Hyderabad, a

consolidated Action Plan for the District shall be prepared by the District Panchayat

Officer in respect of Gram Panchayats and by the Chief Executive Officer, Zilla

Parishad in respect of the Zilla Parishad and shall be submitted to the Government

and also to the Commissioner PR & RE before 18-2-2006. But, the consolidated

approved Action Plan if any prepared was not produced to the audit. The same may

be produced to audit at an early time

(Para No.60.of Loan fund, ZP Srikakulam District for the year 2008-09).

71

18.8. PROVIDENT FUND-REGISTER OF LIFE ASSURANCE POLICIES-NOT

MAINTAINED NEEDS ACTION .

The register of Life Insurance Policies was not written up and produced for

verification during the course of audit. Non submission of the register of life

Insurance Policy, details of policies, no. of Policies such as the name of the policy,

date of maturity of the policy, and amount of policy, amount of premium, date of

receipt of the policy, date of assignment and date of acknowledgment of the policy

after registration of assignment in the books of the company etc., could not be verified

in audit. Early action would need to be taken to produce the above register for

verification in audit.

(Para No.61of Loan fund, ZP., Srikakulam District for the year 2008-09).

19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES RECEIVED BUT NOT

REALIZED WITHIN TIME :

NIL

DATE 25.02.2012

HYDERABAD DIRECTOR

STATE AUDIT,

A.P., HYDERABAD.

72

73

\

STATEMENT No. 1

STATEMENT SHOWING THE STATUS OF ZP AUDIT

SL.

No.

NAME OF

THE

INSTITUTION

DEMAND AS ON

1-4-2009

AUDITS

COMPLETED AS

ON 31-3-2010

BALANCE AS ON

31-03-2010

ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT

1 ZILLA

PARISHADS 2 22 0 22 2 0

74

STATEMENT No. 1 (1)

STATEMENT SHOWING STATUS OF AUDIT OF ZILLA

PARISHADS AS ON 31-3-2010

SL

No.

NAME OF

THE

DISTRICT

DEMAND AS ON

1-4-2009

AUDITS

COMPLETED AS

ON 31-3-10

BALANCE AS ON

31-03-2010


1 Adilabad

0 1 0 1 0 0

2 Ananthapur

0 1 0 1 0 0

3 Chittoor

0 1 0 1 0 0

4 East Godavari

2 1 0 1 2 0

5 Guntur

0 1 0 1 0 0

6 Kadapa

0 1 0 1 0 0

7 Karimnagar

0 1 0 1 0 0

8 Khammam

0 1 0 1 0 0

9 Krishna

0 1 0 1 0 0

10 Kurnool

0 1 0 1 0 0

11 Mahaboobnagar

0 1 0 1 0 0

12 Medak

0 1 0 1 0 0

13 Nalgonda

0 1 0 1 0 0

14 Nellore

0 1 0 1 0 0

15 Nizamabad

0 1 0 1 0 0

16 Prakasam

0 1 0 1 0 0

17 Ranga Reddy

0 1 0 1 0 0

18 Srikakulam

0 1 0 1 0 0

19 Visakhapatnam

0 1 0 1 0 0

20 Vizianagaram

0 1 0 1 0 0

21 Warangal

0 1 0 1 0 0

22 West Godavari

0 1 0 1 0 0

TOTAL: 2 22 0 22 2 0

75

S TATEMENT No. 2

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF

ZILLA PARISHADS FOR THE YEAR 2008-09 Rs. In lakhs

Sl.

No. NAME OF THE DISTRICT Receipts Payments

1 ADILABAD 2797.86 2690.64

2 ANANTHAPUR 7109.56 4949.02

3 CHITTOOR 3000.49 3830.32

4 EAST GODAVARI 9704.13 9045.33

5 GUNTUR 16706.05 7740.59

6 KADAPA 5907.63 12850.89

7 KARIMNAGAR 4274.05 6789.16

8 KHAMMAM 7645.88 7210.22

9 KRISHNA 3938.98 3846.54

10 KURNOOL 899.99 1959.43

11 MAHABOOBNAGAR 3912.32 3953.87

12 MEDAK 375.04 229.89

13 NALGONDA 5663.37 5262.44

14 NELLORE 3903.11 3139.96

15 NIZAMABAD 1095.65 998.73

16 PRAKASAM 3436.99 3178.18

17 RANGA REDDY 10113.70 3959.10

18 SRIKAKULAM 1933.19 2351.26

19 VISAKHAPATNAM 1841.61 1600.32

20 VIZIANAGARAM 2635.27 2482.21

21 WARANGAL 23201.75 22745.75

22 WEST GODAVARI 9082.97 6970.35

TOTAL: 129179.59 117784.20

76

STATEMENT No. 2 (a)

STATEMENT OF CONSOLIDATED FUND WISE RECEIPTS OF ZILLA PARISHADS FOR THE YEAR 2008-09 Rs. In lakhs

SL

No.

NAME OF THE

DISTRICT

General

fund

Education

fund SGRY

Other

Programmes Deposits Advances Loans BRGF

Pension

Fund Total

1 ADILABAD 272.36 338.92 1201.19 423.10 181.46 2.59 0.00 375.37 2.87 2797.86

2 ANANTHAPUR 4910.88 596.98 2.73 34.76 1178.87 1.93 4.69 378.71 0.00 7109.56

3 CHITTOOR 2091.30 146.16 0.00 0.00 241.11 68.05 0.94 452.93 0.00 3000.49

4 EAST GODAVARI 6309.55 770.68 0.00 0.00 2612.85 0.00 11.05 0.00 0.00 9704.13

5 GUNTUR 6262.99 676.47 142.68 0.00 9508.55 0.00 115.36 0.00 0.00 16706.05

6 KADAPA 2781.04 661.35 178.91 1382.68 0.00 94.53 5.70 785.18 18.24 5907.63

7 KARIMNAGAR 2777.63 846.57 14.51 0.00 1.28 64.64 9.33 560.09 0.00 4274.05

8 KHAMMAM 1624.89 525.65 0.00 1838.69 3161.25 0.00 13.72 481.60 0.08 7645.88

9 KRISHNA 3161.71 773.52 3.75 0.00 0.00 0.00 0.00 0.00 0.00 3938.98

10 KURNOOL 217.29 0.00 7.74 391.87 268.70 14.04 0.00 0.00 0.35 899.99

11 MAHABOOBNAGAR 2522.98 960.35 0.00 35.80 0.00 4.95 0.00 388.24 0.00 3912.32

12 MEDAK 1.68 67.96 0.00 0.00 0.00 0.00 10.00 295.40 0.00 375.04

13 NALGONDA 2487.56 941.52 38.72 31.76 1741.44 0.06 8.93 413.38 0.00 5663.37

14 NELLORE 3044.24 792.80 0.00 0.00 2.47 63.60 0.00 0.00 0.00 3903.11

15 NIZAMABAD 877.01 0.00 0.00 0.00 0.00 0.00 0.00 218.64 0.00 1095.65

16 PRAKASAM 640.78 890.51 0.00 1885.00 9.87 0.31 9.89 0.00 0.63 3436.99

17 RANGA REDDY 5547.06 518.76 0.00 0.00 3649.79 1.84 8.07 388.18 0.00 10113.70

18 SRIKAKULAM 908.69 561.30 15.89 0.00 444.25 2.15 0.91 0.00 0.00 1933.19

19 VISAKHAPATNAM 1362.42 292.16 143.44 15.31 0.59 24.20 3.49 0.00 0.00 1841.61

20 VIZIANAGARAM 1837.51 469.37 50.00 0.00 33.23 0.00 0.00 245.16 0.00 2635.27

21 WARANGAL 3747.00 7026.96 0.00 0.00 5423.35 6426.47 0.00 577.97 0.00 23201.75

22 WEST GODAVARI 5488.89 911.80 0.00 0.00 2575.60 94.74 9.89 0.00 2.05 9082.97

TOTAL: 58875.47 18769.79 1799.56 6038.97 31034.67 6864.10 211.97 5560.85 24.22 129179.59

77

STATEMENT 2(b)

STATEMENT OF CONSOLIDAED FUND WISE PAYMENTS OF ZILLA PARISHADSS FOR THE YEAR 2008-09

Rs.in lakhs

SL

No.

NAME OF THE

DISTRICT

General

fund

Education

fund

Other

Programmes SGRY Deposits Advances Loans BRGF

Pension

Rund Total

1 ADILABAD 150.82 352.58 423.10 1201.19 184.71 5.06 0.00 373.18 0.00 2690.64

2 ANANTHAPUR 2962.23 692.71 10.14 1.84 1042.91 4.18 1.60 233.41 0.00 4949.02

3 CHITTOOR 1360.18 1714.66 0.00 0.00 355.89 64.29 0.94 334.36 0.00 3830.32

4 EAST GODAVARI 6346.71 568.01 1.68 0.00 2128.93 0.00 0.00 0.00 0.00 9045.33

5 GUNTUR 2023.09 682.29 0.00 141.51 4781.79 0.00 111.91 0.00 0.00 7740.59

6 KADAPA 1128.62 1180.60 9835.62 56.98 0.00 11.20 0.00 629.98 7.89 12850.89

7 KARIMNAGAR 2448.82 862.67 2866.42 0.00 0.00 63.63 4.06 543.56 0.00 6789.16

8 KHAMMAM 1114.81 466.24 3396.69 0.00 1950.46 0.00 18.76 263.26 0.00 7210.22

9 KRISHNA 2891.31 825.00 0.00 130.23 0.00 0.00 0.00 0.00 0.00 3846.54

10 KURNOOL 215.84 0.00 545.29 36.48 1150.26 11.56 0.00 0.00 0.00 1959.43

11 MAHABOOBNAGAR 2482.76 929.72 1.94 0.00 0.00 0.00 0.00 539.45 0.00 3953.87

12 MEDAK 9.76 19.26 0.00 0.00 0.00 0.00 0.00 200.87 0.00 229.89

13 NALGONDA 2396.73 846.74 127.49 59.83 1405.30 2.10 6.55 413.00 4.70 5262.44

14 NELLORE 2174.37 870.47 0.00 0.00 26.92 68.20 0.00 0.00 0.00 3139.96

15 NIZAMABAD 781.25 0.00 0.00 0.00 0.00 0.00 0.00 217.48 0.00 998.73

16 PRAKASAM 1065.09 906.16 1197.38 0.00 9.32 0.00 0.23 0.00 0.00 3178.18

17 RANGA REDDY 2194.17 528.93 0.00 0.00 842.71 2.44 10.82 380.03 0.00 3959.10

18 SRIKAKULAM 1366.80 579.52 0.00 0.00 360.29 22.68 0.45 0.00 21.52 2351.26

19 VISAKHAPATNAM 957.77 282.94 16.65 313.11 0.00 29.85 0.00 0.00 0.00 1600.32

20 VIZIANAGARAM 1706.68 511.59 0.00 35.76 3.11 0.00 0.00 225.07 0.00 2482.21

21 WARANGAL 3747.00 6701.14 0.00 1.45 5413.00 6426.47 18.15 438.54 0.00 22745.75

22 WEST GODAVARI 3280.53 984.95 0.00 0.00 2610.83 90.97 0.00 0.00 3.07 6970.35

TOTAL: 42805.34 20506.17 18422.40 1978.38 22266.43 6802.63 173.47 4792.19 37.18 117784.20

78

STATEMENT No. 3

CONSOLIDATED STATEMENT OF GRANTS RELEASED TO ZILLA

PARISHADS AND EXPENDITURE INCURRED FROM GRANTS FOR THE

YEAR 2008-09

Rs. In lakhs

SL No. NAME OF THE

DISTRICT RECEIPTS PAYMENTS

1 ADILABAD 2338.40 2338.48

2 ANANTHAPUR 4559.31 1994.69

3 CHITTOOR 2001.07 2908.66

4 EAST GODAVARI 2394.23 2239.01

5 GUNTUR 3266.89 1648.04

6 KADAPA 2166.47 2064.69

7 KARIMNAGAR 1435.13 1425.35

8 KHAMMAM 11473.96 9090.74

9 KRISHNA 2686.74 2087.61

10 KURNOOL 6666.83 5587.31


12 MEDAK 419.59 314.05

13 NALGONDA 2273.61 1786.01

14 NELLORE 3902.68 3139.96

15 NIZAMABAD 233.75 1113.70

16 PRAKASAM 2768.51 2866.61

17 RANGA REDDY 9586.92 3331.17

18 SRIKAKULAM 3189.48 5187.14


20 VIZIANAGARAM 2153.54 2606.62

21 WARANGAL 15465.09 10406.51

22 WEST GODAVARI 2692.26 2356.91

TOTAL: 84553.64 66834.42

79

STATEMENT 3(A)(1)

CONSOLIDATED STATEMENT OF GRANTS (RECEIPTS) RELEASEDTO ZILLA PARISHADS FOR THE YEAR 2008-09 (In Lakhs)

SL

No.

NAME OF THE

DISTRICT Teaching

grant

Non-teaching

grant

Pension

grant SGRY Central fin State fin

Honorarium-

chair person

TA-DA-non

officials

1 ADILABAD 0.00 314.19 2.87 1201.19 0.00 32.99 0.00 8.40

2 ANANTHAPUR 0.00 536.41 1.83 0.00 2667.46 963.47 10.30 0.00

3 CHITTOOR 0.00 146.16 0.00 0.00 1300.02 52.98 37.67 10.90

4 EAST GODAVARI 770.70 197.42 0.00 0.00 1209.95 67.61 0.00 0.80

5 GUNTUR 0.00 655.91 0.00 0.00 2610.45 0.00 0.00 0.00

6 KADAPA 0.00 636.26 0.00 0.00 745.03 0.00 0.00 0.00

7 KARIMNAGAR 0.00 846.57 14.51 0.00 0.00 0.00 0.00 9.33

8 KHAMMAM 0.00 528.64 0.00 0.00 1423.82 78.10 7.45 0.00

9 KRISHNA 0.00 756.06 15.33 0.00 1763.61 147.25 0.00 0.00

10 KURNOOL 0.00 762.70 0.35 7.74 2385.37 468.57 8.71 0.00

11 MAHABOOBNAGAR 0.00 960.35 0.00 0.00 0.00 92.19 0.00 3.87

12 MEDAK 67.96 0.00 0.00 0.00 15.04 41.00 0.00 0.00

13 NALGONDA 941.52 0.00 0.00 38.72 846.05 31.76 0.00 0.00

14 NELLORE 0.00 792.80 0.00 0.00 796.13 37.36 0.00 0.00

15 NIZAMABAD 3.25 2.23 0.00 1.74 0.00 0.00 1.21 0.75

16 PRAKASAM 0.00 890.51 0.00 0.00 1023.30 46.78 0.00 0.00

17 RANGA REDDY 6412.04 0.00 0.00 0.00 1884.47 29.55 0.00 0.00

18 SRIKAKULAM 0.00 495.99 0.00 0.00 285.14 55.66 0.00 5.86

19 VISAKHAPATNAM 0.00 292.16 11.01 143.44 800.27 41.53 0.00 0.00

20 VIZIANAGARAM 469.37 0.00 50.00 556.89 33.16 0.00 0.00 0.00

21 WARANGAL 0.00 7026.96 0.40 0.00 7844.00 0.00 0.00 0.38

22 WEST GODAVARI 0.00 1614.83 0.00 0.00 765.90 89.55 12.00 0.56

TOTAL: 8664.84 17456.15 96.30 1949.72 28399.17 2276.35 77.34 40.85

80

STATEMENT 3(A)(2)

CONSOLIDATED STATEMENT OF GRANTS (RECEIPTS) RELEASED TO ZILLA PARISHADS FOR THE YEAR 2008-09 (Rs.In Lakhs)

Sl.

No.

NAME OF THE

DISTRICT TA-DA-

Staff

Natural

calamities

Building

grant

Election

grant

Office

contingencies

Contingencies

HSs

Backward

Regions Charges

Fund

Other grants Total

1 ADILABAD 0.25 0.00 0.00 400.00 3.14 0.00 375.37 0.00 2338.40

2 ANANTHAPUR 0.24 0.00 0.00 0.00 0.00 0.89 378.71 0.00 4559.31

3 CHITTOOR 0.41 0.00 0.00 0.00 0.00 0.00 452.93 0.00 2001.07

4 EAST GODAVARI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 147.75 2394.23

5 GUNTUR 0.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3266.89

6 KADAPA 0.00 0.00 0.00 0.00 0.00 0.00 785.18 0.00 2166.47

7 KARIMNAGAR 0.23 0.00 0.00 4.40 0.00 0.00 560.09 0.00 1435.13

8 KHAMMAM 0.69 0.00 0.00 0.29 0.00 0.00 481.60 8953.37 11473.96

9 KRISHNA 4.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2686.74

10 KURNOOL 0.17 391.87 43.58 3.00 0.00 0.00 0.00 2594.77 6666.83

11 MAHABOOBNAGAR 0.28 0.00 0.00 1.92 143.20 0.00 388.24 0.00 1590.05

12 MEDAK 0.19 0.00 0.00 0.00 0.00 0.00 295.40 0.00 419.59

13 NALGONDA 0.28 0.00 0.00 1.90 0.00 0.00 413.38 0.00 2273.61

14 NELLORE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2276.39 3902.68

15 NIZAMABAD 1.75 0.00 2.25 0.00 0.24 0.00 218.64 1.69 233.75

16 PRAKASAM 0.43 778.01 0.00 0.00 0.00 0.00 0.00 29.48 2768.51

17 RANGA REDDY 0.23 0.00 0.00 0.00 0.00 10.03 388.18 862.42 9586.92

18 SRIKAKULAM 2.78 69.17 0.00 0.00 2.78 0.00 0.00 2272.10 3189.48

19 VISAKHAPATNAM 0.34 0.00 0.00 0.38 0.00 0.00 0.00 0.00 1289.13

20 VIZIANAGARAM 0.00 0.00 0.00 0.00 0.00 0.00 245.16 798.96 2153.54

21 WARANGAL 15.38 0.00 0.00 0.00 0.00 0.00 577.97 0.00 15465.09

22 WEST GODAVARI 2.78 0.00 0.00 0.00 0.00 0.00 0.00 206.64 2692.26

TOTAL: 31.45 1239.05 45.83 411.89 149.36 10.92 5560.85 18143.57 84553.64

81

STATEMENT No. 3(B)(1)

CONSOLIDATED STATEMENT OF PAYMENT MADE FROM GRANTS BY ZILLA PARISHADS FOR THE YEAR 2008-09

(In Lakhs)

SL

No. NAME OF THE DISTRICT

Teaching

grant

Non-teaching

grant

Pension

grant SGRY Central fin State fin

Honorarium-

chair person

TA-DA-

non

officials

1 ADILABAD 0.00 336.63 0.00 1201.19 0.00 23.01 0.00 0.50

2 ANANTHAPUR 0.00 546.11 56.09 1.84 1109.55 37.91 1.18 0.00

3 CHITTOOR 0.00 1714.66 0.00 0.00 746.52 33.11 37.67 10.90

4 EAST GODAVARI 568.01 197.42 0.00 0.00 1209.95 95.70 8.97 9.21

5 GUNTUR 0.00 608.68 167.73 0.36 824.51 0.00 2.09 2.11

6 KADAPA 0.00 606.45 0.00 0.00 764.42 61.70 0.00 0.05

7 KARIMNAGAR 0.00 862.67 0.00 0.00 0.00 0.00 0.00 9.33

8 KHAMMAM 0.00 466.24 0.00 0.00 878.66 76.84 7.45 0.00

9 KRISHNA 0.00 756.06 240.98 112.10 868.47 103.41 0.25 0.00

10 KURNOOL 0.00 546.45 0.00 36.48 1038.52 119.66 8.93 0.00

11 MAHABOOBNAGAR 0.00 929.72 0.00 0.00 0.00 0.00 0.00 0.00

12 MEDAK 19.26 8.00 0.00 0.00 15.04 70.00 0.27 0.25

13 NALGONDA 846.74 0.00 4.70 59.83 319.77 127.49 9.43 0.00

14 NELLORE 0.00 870.47 0.00 0.00 395.77 37.36 0.27 0.00

15 NIZAMABAD 850.34 2.14 0.00 1.50 0.00 0.00 4.18 0.75

16 PRAKASAM 0.00 906.17 0.00 0.00 1023.30 174.00 0.00 0.00

17 RANGA REDDY 1915.27 0.00 0.00 0.00 84.01 41.00 0.38 0.00

18 SRIKAKULAM 0.00 495.99 21.52 0.00 285.14 93.45 0.00 8.88

19 VISAKHAPATNAM 0.00 282.94 62.50 313.11 146.56 10.65 0.22 0.00

20 VIZIANAGARAM 511.59 0.00 35.76 128.28 98.51 0.00 0.00 0.00

21 WARANGAL 0.00 6701.14 0.40 1.45 3249.60 0.00 0.00 0.00

22 WEST GODAVARI 0.00 1614.83 0.00 0.00 354.58 161.52 12.00 4.56

TOTAL: 4711.21 18452.77 589.68 1856.15 13412.88 1266.81 93.29 46.54

82

STATEMENT No. 3(B)(2)

CONSOLIDATED STATEMENT OF PAYMENT MADE FROM GRANTS BY ZILLA PARISHADS FOR THE YEAR 2008-09

(In Lakhs)

S.No NAME OF THE DISTRICT TA-DA-

Staff

Natural

calamities

Building

grant

Election

grant

Office

contingencies

Contingencies

HSs

Backward

Regions Charges

Fund

Other grants Total

1 ADILABAD 0.83 0.00 0.00 400.00 3.14 0.00 373.18 0.00 2338.48

2 ANANTHAPUR 1.34 0.00 0.00 0.00 0.24 7.03 233.41 0.00 1994.69

3 CHITTOOR 0.41 0.00 0.00 0.00 31.03 0.00 334.36 0.00 2908.66

4 EAST GODAVARI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 149.75 2239.01

5 GUNTUR 2.52 0.00 0.00 40.04 0.00 0.00 0.00 0.00 1648.04

6 KADAPA 2.09 0.00 0.00 0.00 0.00 0.00 629.98 0.00 2064.69

7 KARIMNAGAR 0.23 0.00 0.00 9.56 0.00 0.00 543.56 0.00 1425.35

8 KHAMMAM 2.68 0.00 0.00 0.00 0.00 0.00 263.26 7395.61 9090.74

9 KRISHNA 4.01 0.00 0.00 0.00 0.00 0.00 0.00 2.33 2087.61

10 KURNOOL 1.28 545.29 7.26 2.00 18.01 0.00 0.00 3263.43 5587.31

11 MAHABOOBNAGAR 0.00 0.00 0.00 1.92 25.83 0.00 539.45 0.00 1496.92

12 MEDAK 0.36 0.00 0.00 0.00 0.00 0.00 200.87 0.00 314.05

13 NALGONDA 2.88 0.00 0.00 2.17 0.00 0.00 413.00 0.00 1786.01

14 NELLORE 1.43 0.00 0.00 0.00 0.00 0.00 0.00 1834.66 3139.96

15 NIZAMABAD 30.84 0.00 2.24 0.00 0.24 0.00 217.48 3.99 1113.70

16 PRAKASAM 4.70 758.44 0.00 0.00 0.00 0.00 0.00 0.00 2866.61

17 RANGA REDDY 1.50 0.00 0.00 0.00 73.98 0.00 380.03 835.00 3331.17

18 SRIKAKULAM 2.31 44.15 0.00 0.00 39.67 0.00 0.00 4196.03 5187.14

19 VISAKHAPATNAM 2.00 0.00 0.00 0.10 26.16 0.00 0.00 0.00 844.24

20 VIZIANAGARAM 0.00 0.00 0.00 0.00 0.00 0.00 225.07 1607.42 2606.62

21 WARANGAL 15.38 0.00 0.00 0.00 0.00 0.00 438.54 0.00 10406.51

22 WEST GODAVARI 2.78 0.00 0.00 0.00 0.00 0.00 0.00 206.64 2356.91

TOTAL: 79.57 1347.88 9.50 455.79 218.30 7.03 4792.19 19494.86 66834.42

83

STATEMENT No.4 (1) STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE

YEAR

2008-09 (DISTRICT WISE)

Rs. In lakhs

Sl. No. NAME OF THE DISTRICT ZILLA PARISHADS

No. AMOUNT

1 Adilabad 72 161.87

2 Ananthapur 119 264.89

3 Chittoor 65 35.58

4 East Godavari 184 4158.77

5 Guntur 103 228.44

6 Kadapa 59 161.70

7 Karimnagar 51 836.66

8 Khammam 91 707.75

9 Krishna 112 7076.49

10 Kurnool 2126 12162.00

11 Mahaboobnagar 23 128.54

12 Medak 77 904.79

13 Nalgonda 28 44.03

14 Nellore 80 44.54

15 Nizamabad 1640 5599.92

16 Prakasam 139 18.31

17 Ranga Reddy 52 2178.69

18 Srikakulam 165 1296.49

19 Visakhapatnam 119 1165.49

20 Vizianagaram 93 425.68

21 Warangal 98 466.86

22 West Godavari 121 533.79

TOTAL: 5617 38601.28

84

STATEMENT No.4 (2) STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED

(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09

Rs. In lakhs

Sl.

No. NAME OF THE CATEGORY

ZILLA PARISHADS

No. AMOUNT

1 Variation in Account Figures 64 74.26

2 Excess Utilisation of Grants / Funds 26 152.36

3 Diversion of Grants / Funds 155 624.94

4 Non-utilisation of grants before the lapsable date 37 198.63

5 Mis-utilisation of Grants / Funds 10 47.48

6 Non-utilisation of Earmarked Funds 69 583.28

7 Non-collection of dues 161 305.97

8 Advances pending adjsutemnt 230 983.74

9 Violation of Rules 443 6684.19

10 Non remittance of deduction recoveries from work bills

/ pay bills / contingent bills etc., 1667 5464.19

11 Non Production of Records 1367 16284.98

12 Misappropriations 12 117.41

13 Excess Payments 735 174.91

14 Wasteful Expenditure 23 6.44

15 Instances of cases of unaccounted for cash / stores 116 2235.75

16 Pendency of Utilisation Certificates 115 4327.49

17 Surcharge Certificates recovery pending 4 0.00

18 Others 383 335.27

19 D.D/Cheques received but not realized with in time 0 0.00

Total: 5617 38601.28

- 85 -

STATEMENT NO.4 (3)(1)

STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09

(District and Category wise ) Zilla Parishad

S.No Name of the

District

Variation in

Account figures(1)

Excess Utilisation

of Grants (02)

Diversion of

Grants(03)

Non-utilisation of

Grants(4)

Mis-Utilisation

of Grants(05)

Non-utilisation of

Earmarked funds(6)

Non-Collection of

Dues (07)

No Amt No Amt No Amt No Amt No Amt No Amt No Amt

1 Adilabad 1 12.06 2 1.39 1 0.00 0 0.00 0 0.00 1 0.00 1 0.46

2 Ananthapur 2 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 0 0.00

3 Chittoor 1 0.00 0 0.00 4 3.21 0 0.00 0 0.00 0 0.00 5 0.21

4 East Godavari 6 2.50 0 0.00 5 46.48 0 0.00 0 0.00 4 72.53 6 16.25

5 Guntur 5 0.14 3 1.98 2 143.90 1 0.00 0 0.00 0 0.00 9 21.42

6 Kadapa 2 0.00 4 37.35 4 1.15 0 0.00 0 0.00 2 54.99 1 21.52

7 Karimnagar 0 0.00 1 0.95 1 0.10 1 0.00 0 0.00 0 0.00 2 9.09

8 Khammam 1 0.20 0 0.00 0 0.00 0 0.00 0 0.00 3 25.11 0 0.00

9 Krishna 8 0.95 0 0.00 2 3.56 0 0.00 0 0.27 4 324.00 60 3.75

10 Kurnool 3 0.00 1 0.00 22 105.00 0 0.00 1 1.00 0 0.00 10 68.00

11 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 3 44.38 0 0.00 1 0.00

12 Medak 4 0.00 0 0.00 1 12.16 0 0.00 0 0.00 1 61.52 0 0.00

13 Nalgonda 1 0.00 0 0.00 1 0.00 0 0.00 0 0.00 1 0.00 1 0.00

14 Nellore 0 0.00 0 0.00 3 0.00 1 0.00 0 0.00 0 0.00 0 0.00

15 Nizamabad 9 46.72 0 0.00 90 52.56 11 25.76 4 1.33 48 45.13 22 25.28

16 Prakasam 4 5.00 0 0.00 5 0.00 5 0.00 0 0.00 0 0.00 2 0.30

17 Ranga Reddy 0 0.00 1 0.00 3 0.00 0 0.00 0 0.00 1 0.00 2 24.39

18 Srikakulam 2 0.13 1 0.00 0 0.00 7 172.58 0 0.00 0 0.00 0 0.00

19 Visakhapatnam 2 0.00 4 109.54 0 0.00 1 0.29 0 0.00 0 0.00 7 13.85

20 Vizianagaram 2 0.00 2 0.00 3 2.50 3 0.00 2 0.50 1 0.00 2 9.85

21 Warangal 1 0.00 4 1.15 5 52.94 0 0.00 0 0.00 2 0.00 4 1.43

22 West Godavari 10 6.56 2 0.00 3 201.38 7 0.00 0 0.00 0 0.00 26 90.17

TOTAL: 64 74.26 26 152.36 155 624.94 37 198.63 10 47.48 69 583.28 161 305.97

- 86 -



(District and Category wise) Zilla Parishad

Name of the

District

Advances Pending

Adjustment (08)

Violation of Rules

(09)

Non-Remittance of

Deductions (10)

Non-Production of

Records(11)

Missappropriation

and Fraud(12)

Excess

Payment(13)

Wasteful

Expenditure(14)


Adilabad 1 0.50 5 16.27 5 0.97 24 120.95 0 0.00 3 0.36 0 0.00

Ananthapur 5 1.31 32 13.35 7 3.22 38 246.98 2 0.00 10 0.04 0 0.00

Chittoor 4 9.92 18 2.77 8 0.37 15 19.10 0 0.00 0 0.00 0 0.00

East Godavari 10 331.73 26 1759.10 9 20.41 61 1800.06 3 57.21 15 50.49 3 0.26

Guntur 6 1.03 10 0.00 8 0.25 29 59.46 0 0.00 7 0.26 0 0.00

Kadapa 0 0.00 18 4.93 0 0.00 11 31.39 0 0.00 5 9.88 3 0.49

Karimnagar 4 140.59 5 6.48 3 4.05 5 6.14 0 0.00 1 0.24 0 0.00

Khammam 3 33.74 16 144.45 16 29.27 6 22.52 0 0.00 4 0.34 0 0.00

Krishna 0 0.00 12 1599.06 0 0.00 25 1975.18 0 0.00 0 0.00 0 0.00

Kurnool 99 145.00 52 65.00 179 76.00 917 9316.00 2 0.00 637 103.00 2 0.00

Mahaboobnagar 2 8.32 5 10.15 0 0.00 2 61.51 0 0.00 5 2.52 0 0.00

Medak 0 0.00 22 11.74 21 122.81 17 695.43 0 0.00 6 0.67 1 0.13

Nalgonda 2 1.01 9 9.45 0 0.00 6 22.86 0 0.00 0 0.00 2 0.70

Nellore 5 23.56 22 18.00 3 0.19 12 0.20 0 0.00 5 0.05 3 2.54

Nizamabad 62 129.62 22 14.93 1346 5044.01 0 0.00 0 0.00 0 0.00 0 0.00

Prakasam 1 0.31 31 1.08 19 11.14 28 0.11 0 0.00 5 0.37 0 0.00

Ranga Reddy 4 19.11 5 1999.33 4 19.56 13 111.51 0 0.00 9 3.33 0 0.00

Srikakulam 3 12.18 34 55.01 7 10.13 78 1025.64 0 0.00 0 0.00 0 0.00

Visakhapatnam 5 6.11 39 839.00 3 21.03 18 110.01 1 10.23 9 2.16 2 0.00

Vizianagaram 3 1.02 26 59.63 15 91.16 12 259.40 0 0.00 11 1.17 4 0.46

Warangal 7 94.93 11 1.94 12 9.05 29 304.90 1 0.17 1 0.04 1 0.17

West Godavari 4 23.75 23 52.52 2 0.57 21 95.63 3 49.80 2 0.00 2 1.69

TOTAL: 230 983.74 443 6684.19 1667 5464.19 1367 16284.98 12 117.41 735 174.91 23 6.44

- 87 -



( District and Category wise ) Zilla Parishad

Name of the

District

Instance of cases

un account for

(15)

Pending of U.Cs

(16)

Surcharge

certificate

Recovery Pending

Others (18)

D.D/Cheques/B.C,

etc,received but not

realised with in time (26)

Total

No Amt No Amt No Amt No Amt No Amt No Amt

Adilabad 0 0.00 2 0.00 0 0.00 26 8.91 0 0.00 72 161.87

Ananthapur 0 0.00 4 0.00 1 0.00 16 0.00 0 0.00 119 264.89

Chittoor 0 0.00 2 0.00 0 0.00 8 0.00 0 0.00 65 35.58

East Godavari 1 1.75 7 0.00 0 0.00 28 0.00 0 0.00 184 4158.77

Guntur 0 0.00 8 0.00 0 0.00 15 0.00 0 0.00 103 228.44

Kadapa 0 0.00 3 0.00 0 0.00 6 0.00 0 0.00 59 161.70

Karimnagar 0 0.00 27 669.02 0 0.00 1 0.00 0 0.00 51 836.66

Khammam 0 0.00 12 386.38 0 0.00 30 65.74 0 0.00 91 707.75

Krishna 0 0.00 1 3169.72 0 0.00 0 0.00 0 0.00 112 7076.49

Kurnool 113 2234.00 13 40.00 0 0.00 75 9.00 0 0.00 2126 12162.00

Mahaboobnagar 1 0.00 0 0.00 1 0.00 3 1.66 0 0.00 23 128.54

Medak 0 0.00 0 0.00 0 0.00 4 0.33 0 0.00 77 904.79

Nalgonda 0 0.00 0 0.00 0 0.00 5 10.01 0 0.00 28 44.03

Nellore 0 0.00 7 0.00 0 0.00 19 0.00 0 0.00 80 44.54

Nizamabad 0 0.00 0 0.00 0 0.00 26 214.58 0 0.00 1640 5599.92

Prakasam 0 0.00 10 0.00 0 0.00 29 0.00 0 0.00 139 18.31

Ranga Reddy 0 0.00 1 0.00 0 0.00 9 1.46 0 0.00 52 2178.69

Srikakulam 0 0.00 4 0.00 0 0.00 29 20.82 0 0.00 165 1296.49

Visakhapatnam 0 0.00 3 50.65 0 0.00 25 2.62 0 0.00 119 1165.49

Vizianagaram 0 0.00 1 0.00 1 0.00 5 0.00 0 0.00 93 425.68

Warangal 0 0.00 1 0.00 1 0.00 18 0.14 0 0.00 98 466.86

West Godavari 1 0.00 9 11.72 0 0.00 6 0.00 0 0.00 121 533.79

TOTAL: 116 2235.75 115 4327.49 4 0.00 383 335.27 0 0.00 5617 38601.28

- 88 -

- 89 -


THE ACCOUNTS OF MANDAL PARISHADS FOR THE YEAR

2008-09

INTRODUCTION

1.5 Under the A.P. State Audit Act, 1989 the Director is made in charge of the audit

of the funds of Mandal Parishads as specified in the Schedule prescribed in the

said Act.

1.6 The Department has got its offices in all the districts of Andhra Pradesh where in

the District Audit Officer; State Audit is the head at the district level.

1.7 The Department conducts post audit of the Mandal Parishads and Audit Reports

consisting of defects noticed in audit are issued to the Mandal Development

Officers of the Mandals concerned who has to take action for rectifying the

defects pointed out in the Audit Report.

1.8 Under the State Audit Act, the Director is vested with the power of disallowing

any item of the expenditure incurred contrary to the law and surcharge the same

on the person incurring or authorizing the incurring of such expenditure and may

charge against any person responsible there for, the amount of any deficiency,

loss or unprofitable out lay occasioned by the negligence or misconduct of that

person or of any such sum which ought to have been accounted for but is not

brought into account by that person and shall, in every such case, certify the

amount due from such person.

SCOPE OF AUDIT

2.2 The State Audit Department being one of the limbs of the Government has been

statutorily entrusted with the authority to verify the following aspects during the

course of post audit of the Panchayat Raj Institutions, viz., Mandal Parishads.

i) Whether the grants received by the Mandal Parishads were properly

accounted for with full details in the books of accounts of the Mandals

concerned.

j) Whether adequate care is taken to periodically check up the funds with

Treasury or Bank.

k) Whether expenditure incurred was provided for in the Budget of the

Mandal Parishads concerned and duly sanctioned by the competent

authority under the PRI Act / Rules or any executive instructions issued by

the Government.

l) Whether funds were utilized only for the permitted purposes prescribed

under the Act / Rules.

- 90 -

m) Whether the procedure prescribed by Government in incurring the

expenditure / payments made is properly followed and accounted for with

due classification in the books of accounts of the Mandal Parishad.

n) Whether vouchers for the expenditure incurred were maintained.

o) Whether grants received from different sources were utilized for the

purposes for which they were meant.

2.3 During the year under report, the Department has also conducted audit of the

accounts of the scheme “Sampoorna Grameena Rojgar Yojana”.

STATUS OF AUDIT

3.1 Out of total demand of 1097 current and arrear 2, 1090 years current Mandal

Parishads were audited by this department which has shown in Statement -I.

3.2 The Department has conducted the audit of the receipts amounting to Rs. 51706.90

lakhs and payments of Rs. 52730.90 lakhs as detailed in the Statements No. 2 (a) to

2 (b) with District wise break up.

3.3 The Pie chart of propositional Percentages of Receipts and Payments of Mandal

Parishads during the year 2008-09 is placed below.

- 91 -

CHART-1

Name of the Fund Receipts

(Rs. In Lakhs) % of Receipts



Social Welfare Fund 2758.81 5.34

Minor Irrigation 44.03 0.09

Roads and Bridges 124.97 0.24

Rural Water Supply 590.66 1.14


Sampoorna Grameena Rojgar Yojana 911.82 1.76

Deposits 959.18 1.86

Advances 563.10 1.09

Total: 51706.90 100

PIE CHART OF MP RECEIPTS 2008-09

47.25%

4.66%

5.34%

0.09%

0.24%

1.14%

36.57%

1.76%

1.86%

1.09%

0.00%



3 SOCIAL WELFARE 5.34%

4 MINOR IRRIGATION 0.09%

5 ROADS & BRIDGES 0.24%

6 RWS & ARWS 1.14%


8 SGRY 1.76%

9 DEPOSITS 1.86%

10 ADVANCES 1.09%

- 92 -

Chart - II

CHART-2

Name of the Fund Payments

(Rs. In Lakhs) % of Payments



Social Welfare Fund 3209.76 6.09

Minor Irrigation 209.80 0.40

Roads and Bridges 1502.60 2.85

Rural Water Supply 806.04 1.53


Sampoorna Grameena Rojgar Yojana 1470.19 2.79

Deposits 556.70 1.06

Advances 669.29 1.27

Total: 52730.90 100

3.4 The Fund Wise Receipts & Payments of Mandal Parishads in the State for the year

2008-09 are exhibited in the bar charts. (Chart –3)

PIE CHART PAYMENTS (Funds) OF MANDAL PARISHADS

FOR 2008-09

46.33%

0.40%

2.85%

1.53%

33.46%

2.79%

1.06%

1.27%

6.09% 4.24%



3 SOCIAL WELFARE 6.09`%

4 MINOR IRRIGATION 0.40%

5 ROADS & BRIDGES 2.85%

6 RWS & ARWS 1.53%


8 SGRY 2.79%

9 DEPOSITS 1.06%

10 ADVANCES 1.27%

- 93 -

Chart –3

RECIEPTS & PAYMENTS OF MANDAL

PARISHADS FOR 2008-09 (FUND WISE)

24

43

2.3

3

24

10

.91

27

58

.81

44

.03

12

4.9

7

59

0.6

6

18

91

1.0

9

91

1.8

2

95

9.1

8

56

3.1

0

24

42

8.9

6

22

34

.17

32

09

.76

20

9.8

0

15

02

.60

80

6.0

4

17

64

3.3

9

14

70

.19

55

6.7

0

66

9.2

9

GE

NE

RA

L

FU

ND

ED

UC

AT

ION

FU

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SO

CIA

L

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LF

AR

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MIN

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RU

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ER

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1 2 3 4 5 6 7 8 9 10

RECIEPTS PAYMENTS

3.5 The General Fund occupied main share in Mandal Parishads Funds at 47.25% as

against 46.33 % in payments, the Minor Irrigation fund and RWS are

insignificant. The Deposits fund share in receipts only 1.09 % as against 1.06 %

share in payments.

3.6 The Receipts and Payments particulars of Mandal Parishads with reference to

Statement are given below:

Name of the Statement No. of the Statement

Consolidated Statement of Receipts & Payments

District Wise (Funds) Statement – 2

Consolidated Statement of Receipts Head Wise

(Funds) Statement – 2(a)

Consolidated Statement of Payments Head Wise

(Funds)

Statement – 2(b)

- 94 -

3.7.The Department has conducted the audit of the Receipts amounting to Rs. 51706.90

lakhs and payments of Rs. 52730.90 lakhs as detailed in the Statement No. 2(a) &

2(b)

GRANTS POSITION

4.1 Mandal Parishads are provided grants by the State / Central Governments to

implement the schemes entrusted to them and also for over all development of the

area under their jurisdiction. The Mandal Parishads have received the grants as

detailed below during the year 2008-09.


Consolidated Statement of Receipts & Payments District Wise (Grants) Statement – 3

Consolidated Statement of Receipts Head Wise (Grants) Statement – 3(a) 1&3(a)2

Consolidated Statement of Payments Head Wise (Grants)

Statement – 3(b) 1&3(b)2

The grants & Non grants received by Mandal Parishads have been shown below.

Mandal Parishads Receipts %

Grants 55589.61 51.81

Funds 51,706.90 48.19

Total: 1,07,296.51 100

4.3 The Receipt of Grants & Non-grants constitutes 51.81% & 48.19 % respectively.

Head wise received by Mandal Parishads are shown in the Statement No.3

4.4 The Payments from grants & Non grants by Mandal Parishads have been shown

below.

Mandal Parishads Payments %

Grants 55162.68 51.13

Funds 52,730.90 48.87

Total: 1,07,893.58 100

4.5 The Payments of Grants & funds constitutes 51.13% and 48.87 % respectively.

Head wise payments of Mandal Parishads are shown in the Statement No.3.

4.6 The Grants wise Receipts & Payments of Mandal Parishads for the year 2008-09 are exhibited in the bar charts. (Chart –4)

STATEMENT%20No.%203%20(2008-09).xls


- 95 -

Chart -4

RECIEPTS & PAYMENTS OF MANDAL

PARISHADS FOR 2008-09 (GRANT WISE)

16372.0

1

3778.7

1

1446.8

2

3387.5

6

675.6

3

323.0

8

880.8

8

231.3

4

212.8

6

319.7

3

1084.2

3

14.4

9

227.0

9

3.5

3 2288.8

8

51.3

1

18675.5

7

17667.8

3

3122.5

5

1419.2

7

2672.5

1

774.6

9

382.2

6

1387.5

3

337.9

3

373.0

4

306.4

9

1103.4

6

210.5

0

372.7

1

7.5

2 1888.0

5

36.6

6

18018.8

TE

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)

NA

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RD

OT

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R G

RA

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S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

RECIEPTS PAYMENTS

Receipts Payments Ratio of

R&P

% Receipts

Y to Y

% Payments

Y to Y

2004-05 139237 137785 100:99

2005-06 74152 71821 100:97 -46.74 -91.85

2006-07 39732 44031 100:111 -46.42 -63.12

2007-08 82024 60568 100:74 106.44 27.30

2008-09 51707 52731 100:101 -36.96 -14.86

386904 366970

- 96 -

The Drastic change in 2005-06 is due to taking away of salaries of teachers of

PRIs to the treasuries. The change of receipts and payments is so erratic and doesn’t

have any form. The receipts and payments ratio is good in 2004-05, 2005-06 and is not

good in other years that is to say that the efficiency in spending of funds is decreased.

AUDIT OBJECTIONS

5.1 During the course of audit the Mandal Parishads for the year 2008-09, the defects

noticed were already pointed out in the relevant Audit Reports, as “Audit

Objections” which were forwarded to the Chief Executive Authorities concerned

for further action at their end as per the procedure laid down under the A.P. State

Audit Act.


lakhs were raised in the audit of the Mandal Parishads during the year under

report.


involved with institution-wise break-up is annexed vide Statement No. 4.

5.4 CATEGORISATION OF AUDIT OBJECTIONS:

The Audit Objections are classified into 19 Categories as detailed below and

shown in the Appended Statement No. – 4.

All objections category wise Statement – 4

All objections District wise Statement – 4 CAT

Variation in Account Figures Statement – 4 (1)

Excess Utilization of Grants Statement – 4 (1)

Diversion of Grants / Funds Statement – 4 (1)

Non-Utilization of Grants before lapsable date Statement – 4 (1)

Mis-Utilisation of Grants / Funds Statement – 4 (1)

Non-Utilization of Earmarked Funds of MPs Statement – 4 (2)

Non-collection of dues Statement – 4 (2)

Advances pending adjustment Statement – 4 (2)

Violation of Rules Statement – 4 (2)

Non-remittance of Deductions / Recoveries from vouchers /

Pay Bills / Contingent Bills

Statement – 4 (2)

Non-production of Records Statement – 4 (3)

Mis-appropriations Statement – 4 (3)

Excess payments Statement – 4 (3)

Wasteful Expenditure Statement – 4 (3)

Instances of cases of unaccounted cash / stores Statement – 4 (4)

Pendency of Utilization Certificates Statement – 4 (4)

Surcharge Certificates - Recovery pending Statement – 4 (4)

Others Statement – 4 (4)

D.D./Cheques received but not realized with in time Statement – 4 (4)

- 97 -

STATEMENT SHOWING INCIDENCE OF OBJECTIONS (2008-09)

# Name of the Category No. of

Paras %

Amount

Rs. in

Lakhs

%

(1) (2) (3) (4) (5) (6)

1 Others 5211 23.97 439.16 7.53

2 Violation of Rules 3774 17.36 485.30 8.32

3 Non Production of Records 3316 15.25 1514.01 25.96

4 Non remittance of deduction recoveries from

work bills / pay bills / contingent bills etc

2036 9.37 1418.13 24.32

5 Non-utilization of Earmarked Funds 1470 6.76 710.94 12.19

6 Pendency of Utilization Certificates 1464 6.73 39.27 0.67

7 Excess Utilization of Grants / Funds 870 4.00 240.95 4.13

8 Non-utilization of grants before the lapsable date 696 3.20 68.83 1.18

9 Diversion of Grants / Funds 681 3.13 229.45 3.93

10 Non-collection of dues 669 3.08 114.56 1.96

11 Advances pending adjustment 626 2.88 285.95 4.90

12 Excess Payments 458 2.11 144.28 2.47

13 Variation in Account Figures 227 1.04 26.74 0.46

14 Mis-utilisation of Grants / Funds 118 0.54 37.89 0.65

15 Wasteful Expenditure 69 0.32 71.36 1.22

16 Misappropriations 32 0.15 4.49 0.08

17 Instances of cases of unaccounted for cash /

stores

14 0.06 0.04 0.00

18 Surcharge Certificates recovery pending 7 0.03 0.35 0.01

19 D.D./Cheques received but not realized with in

time

1 0.00 0.56 0.01

Total: 21739 100 5832.26

100

5.5 The objections – Number and amount involved – were categorized and

their category has been analyzed 23.97% of Amount involved and also 7.53%

pertains to Others and Number involved 17.36% of amount involved 8.32%

pertains to the Violation of rules etc.,. The next slot goes to Non production of

records 15.25% of amount in 25.96% of no. of objections involved.

- 98 -

AUDIT – PARAS

Gist of some of the selected audit objections raised during the year 2008-09 under

report is enumerated below:

1. VARIATION IN ACCOUNT FIGURES


Figures of treasury and Cash Book like Opening Balance in the Cash Book of the current

year not tallying with the Closing Balance of the Cash Book of previous year. Balance of

the Treasury Pass Book as per Cash Book not tallying with the actual Closing Balance in

the Treasury Pass Book as on 31st March. Non crediting of Receipts in to the Treasury

Pass Book by the Treasury Authorities. Receipts credited in the cashbook by remittance

through Challans are not credited in the Treasury passbook by the Treasury authorities.

Debiting the Cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.

Without explaining the differences, addition or subtraction is being done in the

Reconciliation by the DDO to arrive at the balance actually available in the S. T. Pass

book. Wrong Totaling of Credits and Debits either by D.D.O. or Treasury. Revision in the

Plus or Minus Memo in the S. T. pass book during the subsequent financial year by the

Treasury Authorities with retrospective effect. Consolidated Closing Balance of all Cash

Books not tallying with consolidated closing balance of Annual Account of the

Institutions etc., A few instances of Variation in Account figures, noticed in the Audit

Reports in Mandal Parishads are detailed below:

During the course of audit, it was noticed that as per G.O.Ms.No.12 F&P Dept.,

dated.14-1-2000, Mandal Parishad funds shall be reconciled with Treasury Pass Books.

But in some of the Mandal Parishad in the state have not been reconciled with Treasury

Authorities caused variation between the Cash Book & Treasury Pass Books.

Further, it was also noticed that the Annual accounts was prepared without

rectifying the Opening Balances & Closing Balances of the last years. The difference in

Cash Book, Pass Book & Annual Accounts may be reconciled and rectified the defects to

avoid every scope from all sorts of financial irregularities/misappropriations. Necessary

instructions may be issued to all the Mandal Parishads to reconcile the Cash Book figures

with Treasury Authorities to avoid differences. Out of total No of objections, raised

1.06% of objections and 41.01% of amount involved came under this category. This

category occupies 15th

place in amount and 13th

place in No of objections.

A Consolidated Statement – 4 (1) of Variation in account figures is appended to

the Report from which it could be seen that Non-reconciliation of Rs. 26.74 Lakhs was

pointed out in 227 audit paras.

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2. EXCESS UTILISATION OF GRANTS

The State Government releases grant-in-aid to the Mandal Parishads to meet the

expenditure on developmental works and contingency items like T.A., stationary,

honorarium to the elected representatives etc. It was noticed during the audit that the

Executive Authorities of the Mandal Parishads were incurring expenditure in excess of

the grant received from the Government either in anticipation of the release of further

grant or withdrawing the excess amount from the General Funds of the institution without

any valid orders.

During the course of Annual Audit on the accounts of Mandal Parishads for the

year 2008-09, it was noticed that in certain Mandal Parishads excess utilization made

than the grants received which is against the rules for Ex:- in Vajrakarur Mandal

Parishad of Anathapur District a sum of Rs.63,000 was released under Honorarium to the

Non-officials, but a sum of Rs:1,26,000 was drawn and paid to the above purpose which

is double to the grant actually released. The above irregularity was incorporated in Para

No.50 of the Audit Report. In the same way it was pointed out in Para No. 1 of Audit

Report of Kakinada Mandal Parishad of East Godavari District that a sum of Rs:1,76,823

was released under TA, Contingencies & Honorarium to the Non-officials, but a sum of

Rs:3,83,856was utilized in the same year for the said purpose. By observing the same it

is clear that the excess expenditure than the grant released might be met from the other

allocation. Necessary instructions may be issued to the Executive Authorities not to

reoccur the same in the future. The excess utilization of grant occupies 2.88% in total

No. of objections and 1.58% in total amount involved. The overall picture of the grants is

shown in chart-4 of the report and it shows that the payments are higher than the grant

received for each function in teaching grant, SFC Grant, Honorarium to chair persons ,

TA/DA to non –officials and staff Building grant, Rural water supply, Elections grant.

In case of funds the payments are more than the funds received. Minor Irrigation, Roads

and Bridges, Rural Water Supply and SGRY.

A Consolidated Statement – 4 (1) of Excess Utilisation of grant is appended to

the Report from which it could be seen Rs. 240.95 Lakhs was pointed out in 870 audit

paras.


The Mandal Parishads are provided with funds by the State/Central Governments

either by way of grants or a prescribed share in the Cess, Taxes or Fees collected by the

State Government. All the monies received by the Mandal Parishads from part of their

general funds and they can be utilized for the purposes prescribed under the relevant

Act/Rules. However, specific grants received should be utilized for the purpose for which

the grant is released.

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Incurring of expenditure for purposes other than the prescribed ones without

specific sanction of the government is not permissible and amounts to diversion of funds.

In case of specific grants, the grants should be utilized only for the specific purpose for

which the grant is released and no diversion is permissible without the permission of

grant releasing authority. But it was noticed in audit that notwithstanding such

instructions, diversion of specific grants and earmarked funds is taking place. It was also

observed in audit that expenditure was incurred under certain grant heads even in the

absence of receipt of any grant during the year by diverting other grants.

But during the course of audit for the year 2008-09, it was observed that

diversions were took place even though specific orders were issued for spending the

amounts for the purpose for which it was granted vide G.O.Ms.No. 446 PR & RD(Progs-

II) Dept Dt.29-10-1998

For ex:- in Mutharam M.P. of Karimnagar District a sum of Rs.25,000 was

utilized for payment of electricity charges of MPDO office from the TFC funds which

was granted for Protective Water Supply and Sanitation. Which was incorporated in

Para No.1 of the said Audit Report for the year 2008-09. In Gangavaram Mandal

Parishad of East Godavari District a sum of Rs:53,571 was drawn from the SFC funds

and paid towards purchase of tables, chairs, computer printer, battery & fan (Para No.23).

In Ramakuppam Mandal Parishad of Chittoor District a sum of Rs.43,000 was drawn

from SGRY funds and paid towards contingent expenditure. The position of the No of

objections raised during the year is 9th

and 6th

place in amount involved.

A Consolidated Statement – 4 (1)of Diversion of Funds and Grants Excess

Utilization of Grants/Funds is appended to the Report from which it could be seen that

an amount of Rs. 229.45 lakhs was pointed out in 681 audit paras

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLETIME:

Government releases special grants to the PRIs for implementing specific

schemes. These grants are to be utilized for the purposes for which they are meant for

following the guidelines issued / norms prescribed and such utilization should be within

the date prescribed, otherwise, the grants would lapse to government, unless the lapsable

date of any particular grant is extended by government or grant releasing authority.

Government issued orders in G.O. Ms. No 666 (Accts-I) Department dated 13-6-

1978 extending the period of Utilization of non-salary grants, particularly Panchayat Raj

Grants, up to a maximum period of 18 months instead of end of the financial year to

allow reasonable time to utilize the grant released. According to the above orders, grants

released in the first year of a financial year can be utilized on or before 30th September of

succeeding year. The local bodies did not utilize the grants released within the lapsable

date and thereby huge amounts were left unutilized. The grant sanctioning authorities

were also not approached for extending the utilization period. Thus, the schemes for

which the grants released were not implemented effectively and totally. The unspent

balances were also not refunded to the grant releasing authorities.

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A Consolidated Statement – 4 (1)of Non-utilization of Funds before Lapsable

Date is appended to the Report from which it could be seen that an amount of Rs. 68.83

lakhs was pointed out in 696 audit paras

5. MIS-UTILIZATION OF GRANTS:

Grants meant for specific purposes or earmarked funds shall not be utilized for

any other purpose. Any contingent expenses connected with utilization of grant, shall be

met from the provision of General Fund to the extent permitted. In stead, the authorities

have used specific grants and earmarked funds for contingent expenditure. This is

misapplication of funds and is not a prudent accounting practice.

A Consolidated Statement – 4 (1) of Mis-utilization of Grants/ Funds is

appended to the Report from which it could be seen that an amount of Rs.37.89 lakhs

was pointed out in 118 audit paras.

6. NON-UTILISATION OF EARMARKED FUNDS

Government vide their orders issued in G.O. Ms. No.450 & 451 P.R. & R.D.

(Programme-IV) Department, dated 9-4-2001 and G.O. Ms. No.38 Women Development

and Child Welfare Department, dated 29-5-98 read with G.O. Ms. No.704 of P.R. & R.D.

Department, dated 5-11-1994 issued instructions that every ZP and MP shall earmark

funds out of their General Funds and utilize the same on the schemes benefiting the S.C.s,

S.T.s and for Women and Child Welfare at the following rates.

4. For S.C.s : 15%

5. For S.T.s : 6%

6. For Women & Child Welfare : 15%

Further 1/3 of such earmarked funds shall be made over at the beginning of the

year to the A.P. Scheduled Castes Co-operative Finance Corporation / A.P. Scheduled

Tribes Co-operative Finance Corporation / A.P. Women Co-operative Finance

Corporation as the case may be to utilize for the benefit of the S.C.s, S.T.s and Women

and Children respectively. The balance of 2/3rd

funds shall be utilized by the Mandal

Parishads for the benefit of S.C.s, S.T.s, Women & Children in the ZP, MP areas.

Unspent balance out of the 2/3rd

funds at the end of the financial year, if any, shall be

made over to the respective corporations.

It is observed in audit that in many cases the funds to be earmarked as per the

orders of Government were worked out and provided for in their respective budget

estimates. But, funds were neither made over to the respective corporations at the

beginning of the year nor fully utilized by the Mandal Parishads. The unspent balances at

the end of the year were also not remitted to the respective corporations in many cases.

Such inaction had defeated the very purpose of earmarking of funds.

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During the course of audit of M.P. Palakonda of Srikakulam District for the year

2008-09, it was noticed that a sum of Rs:1,97,952 is available for implementation of

various activities benefiting the S.Ts., in Mandal area in addition to the above a sum of

Rs.1,52,000 was allocated during the year 2008-09. But, no single work is proposed and

completed from the above funds, due to which the purpose of earmarking funds for the

development of S.Ts., is defeated. It is further noticed that the unspent balance was also

not remitted to the respective Corporation/Agencies during the end of the financial year

2008-09 as per said G.Os.

In M.P. Guntur, out of total accumulated balance of Women and Child welfare

fund of Rs:4,80,538, a sum of Rs:3,47,226 was utilized during the year 2008-09. But the

unspent balance of Rs:1,33,357 is not remitted to the Women welfare Corporation as per

rules. Action would need to be taken to transfer the unspent balances to the respective

Corporations at the close of every financial year.

During the year a sum of Rs. 4574.75 lakhs was earmarked under S.C., S.T., and

Child and Women Welfare at the rate of 15%,6% and 15% respectively as detailed in the

table . Out of which a sum of Rs. 2965.13 lakhs only utilized and transferred to the

respective funds. The balance of Rs.1609.62 lakhs was neither utilized nor transferred to

the respective corporations. The percentage of utilization/transferred and balance to be

utilized/ transferred is shown in the table along with their percentage of achievements.

Rs. Lakhs

#

Name

of the

Fund

% of funds

earmarked for

each category

Amount

earmarked

Amount Utilized +

transferred to the

concerned agencies

% of

utility and

transferred

Amount

Leftover

1 S.C 15 2084.51 1303.99 63 780.52

2 S.T 6 691.12 570.36 83 120.76

3 W&CW 15 1799.12 1090.78 61 708.34

4574.75 2965.13 1609.62

As analyzed from the above table it is clear that, out of total allocation only

64.82% of total earmarked was utilized and transferred to the connected agencies and

35.18% of the earmarked amount was kept without proper utilization/transfer.

It is also noticed that a total sum of Rs.6925.25 Lakhs is available as OB at the

beginning of the year. The O.Bs., available in the MPs., reflects the inaction of the

executive authorities in utilizing/ transferring the funds in time as per rules. Thus the

intended welfare is defeated in every case.

A Consolidated Statement – 4 (2) of Non-utilization of Earmarked Funds is

appended to the Report from which it could be seen that an amount of Rs. 710.94 lakhs

was pointed out in 1470 audit paras .

- 103 -


On verification of Revenue Collections in Mandal Parishads (source of revenue to

Mandal Parishad), it was observed that huge amounts were left pending realization for

longer periods and allowed to become barred by limitation of time in certain cases. No

appropriate action seemed to have been initiated by the executive authorities for

realization of taxes and fee etc due before they became barred by limitation of time in

spite of various statutory provisions existing for their recovery such as through distrait,

prosecution or filing of suits. Dependence on Government grants gets lowered if timely

and appropriate action is taken by the executive authorities for collection of these

outstanding dues which ultimately increases their self sustainability. In fact some of these

dues cannot be recovered legally now and constitute a permanent loss to the institutions

which needs to be curbed. A case study of the amounts outstanding / time barred dues

and dues which are likely to become time barred during the year 2008-09 in Panchayat

Raj bodies and others is given below.

During the course of audit of Mandal Parishads for the year 2008-09 it was

noticed that a sum of Rs.2,03,000 is pending realization towards shops rents in M.P.

Dhone of Kurnool District . In M.P Ravi kamathur and Golgonda of Visakhapatnam

District an aggregate amount of Rs.1,44,000 was pending realization towards shopping

complex rents and Market kist. In Srikalahasthi MP of Chittoor District a sum of

Rs.51,000 are pending realization towards shopping complex rents.

It is further noticed that in Narsipatnam MP of Visakhapatnam District , daily

market was leased out to Sri P.Arjuna, for Rs.11,03,500 and entered in to an agreement

to pay 1/3 of bid amount on the date of agreement and the remaining amount in 9

installments to be paid on 5th

of every month. But it was noticed that a sum of

Rs.6,72,000 was paid by the above bidder leaving a balance of Rs.4,31,500. In the same

way Sri K.Venkata Ramana Reddy has leased out Vemulapudi Daily Market for

Rs.2,38,500 with the above conditions. But it was noticed in the audit, only a sum of

Rs.1,01,780 was paid to the MP funds leaving a balance Rs.1,36,720. The above markets

are run y the Mandal Parishads only. It is not known how the Executive Authorities are

allowed the tenants/bidders to continue without paying such rents/kists etc. it is also

noticed that the above agreements were not registered, due to which there is no chance

for taking legal action on the such defaulters. If the Executive Authorities had taken the

action on the very next day of the due date, the above question of pending realization

could not have arose. Necessary instructions may be issued to the Executive Authorities

by making them responsible for such non-collections, so that the revenue of the Mandal

Parishads will be raised and financial position of the institution will be improved.

A Consolidated Statement – 4 (2) showing audit objections on Non- collection of

dues is appended to the Report from which it could be seen that an amount of Rs.114.57


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8. ADVANCES PENDING ADJUSTMENT



adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the

A.P. Financial Code. Non-settlement of advances leads to misuse of advances to avoid

refund of unspent amounts. Several objections were raised on such outstanding advances

in the relevant Audit Reports pointing out failure of the executive authorities to take

necessary action to get these advances adjusted.It was also observed that huge amounts of

personal advances were outstanding for a long time due to the inaction of the drawing

officers.

During the course of audit it was observed that House Building Loan, Marriage

Advance, Vehicle Advance etc., given to the staff. But the D.D.Os are not recovered the

same though they can recover easily from salaries. Due to which a huge financial loss

caused to the M.P. Funds. Action would need to be taken to recover the same from the

loanee along with the penal interest. In M.P. Khammam it was observed that a sum of

Rs.2,72,501 is left uncollected towards H.B.A during the year 2008-09. The advances

pending adjustment cause due to not showing the pending advances in the LPCs., of the

employees when every they were transferring from one institution to another, and non-

maintaining the advances recovery registers and for want of proper checking. The

Administrative Authorities has to take action in issuing of LPCs., forwarding of the pay

bills for payment, and before sanctioning the fresh advances to staff. They should ensure

the dues from the staff in the above instances.

In some instances advances were given to the Engineering Staff for execution of

certain works. But the same were neither adjusted nor recovered till the closure of audit.

The EA has not taken any action to recover the same which leads to temporary

misappropriation of funds due to irresponsible of the Executive Authorities.

The receipts of the advances are 0.74% in total receipts and the payments are

0.97% in total payments of the year. The figure shows the week repayments by the

loanees compare to the payments made towards advances.

A Consolidated Statement – 4 (2) showing audit audit objections on Advances

Pending is appended to the Report from which it could be seen that an amount of Rs.

285.95 lakhs was pointed out in 626 audit paras.


It was noticed in audit that in some cases the Rules / Government instructions for

incurring the expenditure from the funds of the Panchayat Raj bodies have violated either

due to negligence or ignorance. In certain cases, the funds of the Panchayat Raj bodies

were utilized for purposes other than the permitted ones under the Act / Rules.

- 105 -

In GM No.96929/I&PR/A1/2003-1 dated 12-09-2003Government have

instructed all the Head of the Departments to release advertisements of press publicity

through I&PR Department alone and the payments to be made after obtaining

certification of the bill by the I&PR Department. During the course of annual audit on the

accounts of Mandal Parishads it was noticed that huge expenditure were incurred

following violating the above orders. Such inadmissible expenditure was pointed out in

the Audit Reports of the respective MPs. For example a sum of Rs.15,000 in Veeraballi

MP of Kadapa District and Rs.6,494 in MP Rompicharla of Chittoor District were

noticed as inadmissible payments made by violating the rules towards advertisement

charges during the year under report.

In many instances huge amounts were paid to the officers of various levels of

M.P. towards Cell Phone charges in excess of the ceiling fixed in

Memo.11136/CP&DE/01.09.2003 read with Cir.No.741/IT&C/2003 of IT&C Dept.,

dt.13.11.03 and G.O.Ms.No.291 IT&C Dept dt.27.09.2007. In some cases irregular

appointments were made against to act 2 of 1994 and instructions issued in

Memo.44742/A1/412/A1/FC111/97 dt.04.11.1997.

During the course of audit of MP Ibrahimpatnam of Ranga Reddy District for the

year 2008-09, it was noticed that a sum of Rs.12,134/- was drawn towards refreshment

charges for General Body meeting held on 08-08-08. Out of which an amount of

Rs.6.650 was paid towards purchase of 9 calculators & 25 Lifco dictionaries. The above

expenditure is held under objection as it is unauthorized utilization of funds for whicyh

they were drawn. Such violations attract surcharge action.

A Consolidated Statement – 4 (2) showing audit objections on Violation of

Rules is appended to the Report from which it could be seen that an amount of Rs.

485.30 lakhs was pointed out in 3774 audit paras

10.NON-REMITTANCE OF DEDUCTIONS / RECOVERIES FROM

VOUCHERS / PAY BILLS / CONTINGENT BILLS

It was noticed during audit that various deductions / recoveries effected from the

work bills / pay bills were not remitted to Government. And in some cases a part of

them only were remitted in spite of statutory obligation to remit the same to Government


include penalty as well as prosecution for non adherence. The deductions like IT ,

seigniorage charges and PT normally made from work bills / pay bills that are to be

remitted to Government account.

Under Section 200 of IT Act 1961. Read with Rule 30(1)(b) the authority which

deducts the IT from work bills or from Pay Bills shall remit the same to the Income tax

Department within first week of the next month of such deduction. In case of failure the

D.D.O will be held responsible for payment of such deduction under Sec.201(1), along

with Penal Interest @15% P.A.under Sec.201(1)(a). In many cases the income tax was

- 106 -

not recovered , some cases recovered income tax was not remitted to IT Department and

in some cases recovered tax was remitted partly. As per G.O.Ms.No. Rev(CT-II) Dept.,

dt.07.08.2000 read with Government Mem.No.4638/CT-II (I) Dept., dt.02.01.2003, the

ST/VAT has to be deducted @ 2% of turnover exclusive civil contract for laying or

repairing of roads digging lining and repairing of canals. @ 4% of turnover for other

contracts work bills. The recovered amount has to be remitted to the state funds within a

week from the date of recovery. If failed the D.D.O has to Pay 24% Penal Interest besides

the recovered ST/VAT to the state funds. But during the course of audit it was observed

that the recovered amount were not remitted Partly remitted to the state funds. It was

noticed during the year that a sum of Rs. 403.78 lakhs of recoveries made from the work

bills was not remitted to the concerned Head of account. During the year 12 types of

remittances not remitted/non-deductions made were noticed and the same were

incorporated in the statement.

As per G.O.Ms.No.331 Industries and Commerce (M.I) Dept., dt.21.06.2000

Seignorage fee shall be recovered from the work bills on all minor mineral dispatch/

consumption from the land, and the same has to be credited to the consolidated fund of

State Government through the AD of Mines & Geology of the respective district. As as

verified from the objections raised during the year it was noticed that an amount of

Rs.169.04 lakhs of Seigniorage fee collected not remitted to the State Funds, and a sum

of Rs.213.93 lakhs was not deducted from the work bills.

It is further noticed that the deductions made towards PT from the pay bills of

employees has not remitted to the concerned funds. In the above all cases the drawing

officer has to be held responsible for the omissions. Action would need to be taken on the

D.D.Os departmentally based on the observations made in the Audit Reports concerned

to avoid such inactions in future and to rectify the omissions already done.

A Consolidated Statement – 4 (2) showing audit objections on Non –remittance

of Deductions/Recoveries from vouchers /Pay Bills/Contingent Bills is appended to the

Report from which it could be seen that an amount of Rs. 1418.13 lakhs was pointed out

in 2036 audit paras

10.1. INCOME TAX RECOVERIES NOT REMITTED / PARTLY REMITTED

Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b) the

authority which deducts the Income Tax from work bills or from pay bills shall remit the

same to the Income Tax Department within the first week of the next month of such

deduction. In case of failure to remit the Tax, the Drawing and Disbursing Officer will

be held responsible under section 201 (1). And for payment of interest at 15% per annum

under section 201 (1)(a) from the time of such default till the payment of such tax and

prone to levying of penalty. Under section 221 up to the amount of tax not remitted plus

prosecution under section 276 B for a period ranging from three months to seven years

with fine. Though the statutory provisions are clear, it was observed during the year

under audit that the Income Tax deducted at source from the work bills was not remitted

to the Central Government Account till the close of audit. Such irregularities noticed

were pointed out in the relevant audit reports of various institutions shown below.

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INCOME TAX DEDUCTED BUT NOT REMITTED

Amount in Rs.

# Name of the MP and District Amount

recovered

under IT

Amount

remitted

Amount

to be

remitted

Para

No. of

the AR

1 K. Gangavaram ,East Dodavari 227173 0 227173 20

2 Pedavegi ,West Dodavari 44897 0 44897 12

3 Chodavaram ,Visakapatnam 22636 0 22636 5

4 Veeraghattam ,Srikakulam 17304 0 17304 25

5 Unguturu, Krishna 19635 0 19635 14

6 Railway Koduru, Kadapa 33214 0 33214 12

7 Achampet, Mahaboobnagar 33980 0 33980 19

8 Velgatoor ,Karimnagar 123752 0 123752 6

9 Peddemul, Rangareddy 17570 0 17570 7(a)

10 Guntur, Guntur 235055 216790 18265 12

11 Narsapur ,Medak 10631 0 10631 14

569057

10.2 SALES TAX DEDUCTED BUT NOT REMITTED TO THE STATE FUNDS.

The sales tax has to be recovered Under A.P.G.S.T Act 1957 as amended from

time to time and as per G.O.Ms.No.556 Revenue (CI-II) Department Dated 07-08-2000

read with Government Memo.No.4638/CT-II(I) Department Dated 02-01-2003. The

above Tax @ 2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for

exclusive civil contracts for laying or repairing of roads. Contracts for canal digging

lining and repairing and @ 4% of turnover for all categories of other contracts not falling

in the above mentioned category has to be recovered from the work bills. And the same

has to be remitted to state funds within a week from the date of recovery. If failed the

Drawing Officer has to pay personally 24% penal interest besides remitting the amount to

state funds.

It was observed that Sales Tax/ VAT deducted at source from the work bills was

not remitted to the state funds till the close of audit.

- 108 -

A few of such cases are mentioned below.

Amount in Rs

# Name of the MP and District Amount of Vat deducted but

not remitted

Para No. of the

AR

1 Buchiyapeta Visakhapatnam 20956 5

2 K. Gangavaram East Godavari 458570 20

3 DenduluruWest Godavari 22577 12(B)

4 Bhemunipatnam

Visakhapatnam

297700 5

5 Kanchili Srikakulam 25021 13

6 Unguturu Krishna 21174 14

7 Tanguturu Prakasam 28850 7

8 Indukurupeta Nellore 34350 13

9 Railway Kodur Kadapa 33214 12

10 Dhone Kurnool 27839 11

11 Balanagar Mahaboobnagar 112070 13

12 Mallial Karimnagar 27571 3(c )

13 Narsimhulapeta Warangal 2240 12

14 Ibrahimpatnam Rangareddy 184315 19

15 Guntur Guntur 492164 12

16 Shivampeta Medak 25067 10

Total: 1813678

10.3 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED.

As per G.O.MS.No.331 Industries and Commerce (M.I) Department Dated 21-06-

2000 Seignior age Fees or Dead Rent which ever is higher shall be recovered from the

work bills on all Minor Minerals dispatched or consumed from the land. The rates of

deductions are specified in Schedule-I and Schedule-II annexed to the said G.O as the

case may be and to be credited to the consolidated fund of State Government through the

concerned Assistant Director of Mines & Geology of the District. However it was

observed that though the amounts were recovered from the work bills towards Seignior

age Fees the same were either not remitted or partly remitted to State Funds till the close

of audit. Such inaction was pointed out in the relevant audit reports of the following

institutions. Some of such instances are listed below.

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SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED

# Name of the MP and District Amount deducted but not

remitted Para No. of the AR

1 Atreyapuram East Godavari 164692 11(1)


3 Pedavegi West Godavari 230373 14

4 Chodavaram Visakhapatnam 334644 5

5 Burja Srikakulam 21549 30

6 Kanchili Srikakulam 15041 13

7 Unguturu Krishna 30983 14

8 Chimakurthi Prakasam 1124889 8

9 Tanguturu Prakasam 145218 8

10 Indukuripeta Nellore 75620 13

11 Nandalur Kadapa 127073 10

12 Dhone Kurnool 29486 11


14 Veligatoor Karimnagar 179269 6

15 Ibrahimpatnam Rangareddy 133897 19

16 Guntur Guntur 358759 12

17 Narasapur Medak 39569 14

3228852

NAC Charges

Amount in Rs

# Name of the MP&

District

Amount Deducted but not

remitted `Para No.


2 Bhimunipatnam Visakhapatnam 2067 5

3 Ibrahimpatnam Srikakulam 14431 13

4 Indukuripeta Nellore 2687 13

5 Mydukur Kadapa 2000 4


7 Velgatoor Karimnagar 11505 6

8 Medchal Rangareddy 28467 17

94239

- 110 -

10.4. LOBOUR CESS DEDUCTED FROM WORK BILLS BUT NOT REMITTED

Lobour Cess recoveries made from work bills were not remitted to concerned

head of account till the close of audit. Such in action of the Executive Authority was

pointed out in the relevant audit reports. some instances are shown below.

Amount in Rs.

# Name of the MP&

District

Amount

deducted but not

remitted

Para No.

1 S.RajavaramViskhapatnam 4902 6(5)

2 GiddaluruPrakasham 2426 6

3 Nandaluru Kadapa 2500 4


The Panchayat Raj Bodies provide certain basic civic infrastructure and services

like Road Drain Street lights water Supply Conservancy and solid waste management.

They also perform certain regulatory functions. They also prepare plans for economic

development and social justice. With the rise in demand for services the functionaries

need to have effective financial management skills and accountability practices.

All these functions would be reflected on the record when they were accounted

for as per the provisions contained in AP Account code which comprises the comptroller

and Auditor General (C&AG) rules together with the local rulings relating to Local

variation in accounts procedure. These initial accounts are to be kept ready and should

have to be produced to Audit for verification. Then only the transparency in incurring of

public money and their utility to the General Public can be reasonably judged.

Such as important function on the part of the Drawing and disbursing officers of

all the Local Bodies in the maintenance and production of records to audit are not

properly being maintained. Thereby the main access to clear the doubt of transparency in

public expenditure have not been availed. In spite of all these guidelines and instructions

the DDOs of all local bodies have failed to maintain the records and to produce the same

to Audit when ever the local teams visited their institutions. Further it is surprise to note

that the heads of the institutions could not explain why the records could not be

maintained in the office and can be produced when ever they are being demanded by the

audit parties and other agencies during their local visits.

The financial health of an institution depends up on the quality of the records that

are being maintained to show the accountability of the financial transactions that occur in

the institution. Records like M. Books connected files vouchers in which crores of

rupees transacted in many institutions form major chunk of audit objections under the

category of non production of records. Transactions relating to purchase of various

- 111 -

contingent articles goods etc. were not accounted for in stock registers and produced to

audit. Remittances made to different departments etc for which neither the

acknowledgements nor any evidence produced in audit also form part under this

category. Though several half margin letters issued for production of the required record

the executive authorities did not comply with which resulted in inaccessibility to the

records and raising of paras to that extent.

Due to non production of M-Books & Estimate etc. the correctness of the

payments made could not be certified . Non production of layout register there is a

chance for disposal of layouts. The Major portion of non-production goes to M-Books

and second slat goes to non-production of Vouchers. The main records to check the

correctness of the expenditure are M-Books and Vouchers. Without verifying the above

two records the major portion of the audit is in doubt. And there is every chance for

fraud and misappropriation of funds. As stated in Rules 5 and 6 of the State Audit Rules

framed under State Audit Act 1989 the CEO is responsible for preparing and production

of Annual Accounts and produce records for audit. The failure of the CEOs. in

discharging the above function defeated the very purpose of audit and thereby there is

chances for fraud and misappropriation of the funds of the institution.

A Consolidated Statement – 4 (3) showing audit objections on Non-production

of Records is appended to the Report from which it could be seen that an amount of Rs.

1514.01 Lakhs was pointed out in 3316 audit paras

12. MIS-APPROPRIATIONS :

During the course of audit under report it was noticed that 107 misappropriation

suspected cases were noticed. The above category occupies 0.29% in number and 0.12%

in amount involved among the total audit objections. Necessary surcharge action will be

taken by this department as per the procedure laid in Rules 9 of the State Audit Rules

framed under State Audit Act 1989 on all fit cases. If surcharged amount is not paid by

the surcharhee within 60 days the same will be recovered under Revenue Recovery Act. .

During audit it was observed that a sum of Rs.14,869 was drawn by the MPDO

Venkatapuram, Khammam district vide cheque No.00329/06.02.2009 but the purpose of

drawal is not recorded in the Cash Book and the same was also not remitted to the

Mandal Parishad Funds till 31.03.2009.

In MP Thandur of Ranga Reddy District a sum of Rs.9,21,450 was paid to Sri

G.Krishna Reddy Contractor through Cheque.No. 000995/26.03.2009 but the relevant

adjustment particulars were not furnished to audit. The matter was brought to the notice

of the MPDO Vide. HM Lr.No.7/Spl/2009-10 dt.23.02.2010 he has neither replied nor

remitted the said amount to Mandal Parishads Funds. In the same M.P. a sum of

Rs.87,350 was drawn and paid to the Contractor (Details not noted)

Vide.Cheque.No.000977/05.03.2009. No details for the above amount was furnished

even after brought to the notice of the MPDO through Special letter.

- 112 -

An amount of Rs.8,400 was drawn towards payment of sitting fees to MPTCs for

the General body meetings of the Ibrahimpatnam M.P., of Ranga Reddy District, for the

ear 2008-09. But, on verification of the Acquittance Register it was observed that an

amount of Rs.4,450 only was disbursed to the MPTCs/ Sarpanches, till the close of audit

and the balance amount of Rs.3,950 was neither accounted for nor remitted back to

Mandal Parishad funds which is construed as misappropriated.

In Thandur Mandal Parishad of Ranga Reddy District for the year 2008-09, it was

observed that a sum of Rs.2,23,296 was drawn in three different cheques on 8-4-2004 and

12-4-2008. The details for which purpose the advance was drawn is not recorded in the

cash-book. Drawl of amounts without indicating the purpose is inadmissible and

construes clear case of misappropriation of funds.

In all above cases, action would need to be taken for immediate recovery of the

same along with penal interest besides disciplinary action under CCA Rules as per

G.O.Ms.No.25 GA (Ser.C) dt.03.02.2009.


audit is annexed vide Statement – 4 (3) . A total number of 32 cases involving an

amount of Rs. 4.49 lakhs were pointed out in the relevant ARs.

13. EXCESS PAYMENTS

It was observed in audit that in several cases excess payments were made due to

either.

(a) Incorrect calculations or

(b) Excess totaling in Bills or

(c) Admission of inadmissible claims or

(d) Lack of knowledge of Government instructions.

During the course of audit M.P.Zaheerabad of Ranga Reddy District for theyear

2008-09, it was noticed that a sum of Rs.6053.00 was excess paid in the work

“Construction of side Drain” as detailed below.

#

Name of the

work Vr.No.&Dt

MB No.&

Page

Number

Descriptio

n

Rate

allowed

Rate as

per

estimate

Exc

ess

Quantit

y

Diff.Amo

unt.

1 Const.of Side

drain

M.B.No.30

0/BM

P.g.No.39

Collection

of Gravel 141.76 114.76 27 224.18 6,053.00

During the course of audit of M.P.Paderu of Vishakapatnam District, it was

noticed Sri.G.V.Chittiraju MPDO has occupied the Government Quarters. But as verified

from the Pay Bills it is noticed that the HRA & AHRA admissible to him was not

deducted from the pay bills and paid in full which lead to excess payment. Therefore the

HRA & AHRA paid to the above MPDO from 4/2007 to 3/2009 is worked out to

Rs.38813 and held under objection as excess payment.

- 113 -

In Saluru MP of Vizayanagaram District it was noticed that a sum of Rs.23,227

was excess paid uin construction of culvert at Gedipallivalasa as detailed below.

Cost paid Rs. 3,838.13 per RMT

Cost of RCC pipes as per estimation Rs. 2,909.04 per RMT

Excess paid Rs.

929.09x25RMT=23,227

A Consolidated Statement – 4 (3) of showing audit objections on Excess

payments is appended to the Report from which it could be seen that an amount of Rs.



The canons of financial propriety envisaged in Andhra Pradesh financial code are

sacrosanct for all Government Authorities entrusted with authorizing or incurring of

expenditure from public funds. They are expected to act under Articles 3 of Financial

Code (Vol.I) to exercise the same diligence and care in expending public money under

their control as persons of ordinary prudence would exercise in respect of their own

money. Government have issued instructions through various orders and also

incorporated in the statutes of local bodies the various items on which public money can

be expended and the principles to be adhered to while expending on such items. Yet it

was noticed in audit that the funds of Panchayat Raj bodies were several times incurred

without adhering to the laid down principle leading to wasteful expenditure of public

money. All the cases of such wasteful expenditure observed in the audit of Panchayat

Raj bodies for the year 2008-09 were expenditures that were avoidable extraordinary and

lacked proper planning.

14.1. ADVERTISEMENT PUBLISHED ON DEVELOPMENT ACTIVITIES

WASTEFUL EXPENDITURE – NEEDS ACTION Rs.14,000.

An amount of Rs.15000 was drawn on the following vouchers from the General

Funds towards advertisement charges in Vaartha, Telugu daily news paper to publish the

congratulatory message to the newly elected MPs, MLAs & MPTCs in the Mandal

Parishad Jurisdiction.

As there is no provision in the A.P. Panchayat Raj Act to incur such expenditure,

the same is rregular and wasteful expenditure as it is neither incidentalto administration

nor beneficial to the public in the Mandal Parishad area.

Vr.No.&Date Particulars Amount Rs.

37/23-5-09 Congratulatory message in

Vaartha

14,000

88/4-9-08 Advt.Charges 1,000.

Total 15,000

- 114 -

A Consolidated Statement – 4 (3 of showing audit objections on Wasteful

Expenditure is appended to the Report from which it could be seen that an amount of

Rs. 71.36 lakhs was objected in 69 audit paras


Several instances of Cash / Stores unaccounted for were noticed

consolidated statement of cases of unaccounted for cash / stores statement No 9 (15) is

appended to Report.

Consolidated Statement of Instances of cases unaccounted for is annexed in

Statement – 4 (3 to the Report showing 14 paras involving an amount of Rs.0.04 lakhs.


According toArt 211-A (2) of the Andhra Pradesh Financial Code Volume-I Read

with Govt. Memo. No. 46825/Accts/75 dt. 6-1-1996. It is responsibility of the Grant

receiving authority to send the utilization certificates in the proforma prescribed duly

certified by the District Audit Officer State Audit Department. But heavy No. of

Utilization Certificates were not furnished to audit for certification and transmission to

the grant releasing authorities concerned.

In G.O.Ms.No. 507 Fin (TFR) Department dt. 10-4-2002 the Government have


Funds from April 2002 onwards by the local bodies / Public Sector enterprises

Autonomous bodies and other Grant-in-Aid institution.

“Utilization Certificates certified by the Statutory Auditor that the funds


have been sanctioned.”

But the aforesaid Government orders are not being observed by Executive

Authorities which resulted in heavy pendency of utilization certificates to be furnished to

the grant releasing authorities. Such cases are reported in the Audit Reports of ZP / MP /

GPs shown in the statement appended herewith.

According to Article 211-A(2) of the Financial Code Vol. it is responsibility of

the grant releasing authority to send an UC in the prescribed proforma duly certified by

the DAO of State Audit Department of concerned District. But during the course of audit

it was noticed that the utilization certificates as per rules ahs not submitted to the

concerned. Due to which the very purpose of the releasing of grant will not serve. And

proper utilization of the grant it could not be certified in audit. Thus there is a chance for

deviation of the works and also chance for fraud. Due to non-furnishing of the UCs. the

further grant would not be received. Some of the examples are read here in Peddemul

MP of Rangareddy District it was noticed that a sum of Rs.1,95,000 was released under

TFC grants Rs.2, 10, 375 & Rs.10,50,000 under ACDP and a sum of Rs.82994 was

released under SFC Grant to Eluru MP of West Godavari District. But the Utilization

- 115 -

Certificates were not furnished to audit to check the correctness of the utilization.

Necessary instructions may be given to the Grant Receiving authorities in this regard to

have control on the grants and their proper utilization and in remitting of the unutilized

balances.

A Consolidated Statement – 4 (4) showing audit objections on Pendency of

Utilization Certificates is appended to the Report from which it could be seen that an

amount of Rs.39.27 lakhs was pointed out in 1464 audit paras.


In accordance with the provision of the State Audit Act 1989 and Rules issued

there under the audit of schemes as entrusted by the Government is being conducted and

various defects noticed during the audit also pointed out in the relevant Audit Reports

every year. In the case of serious irregularities Special Letters are also issued to Chief

Executive Authorities concerned to make the loss good to the funds of the institutions

concerned.

Pursuant to the special letters surcharge action as per Sec. 10 of the State Audit

Act 1989 is initiated for recovery of the amounts involved in clear cases of the loss mis-

utilization mis-appropriations wasteful expenditure excess and irregular payments. The

amount surcharged have to be recovered treating them as Revenue Recoverable under

Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State Audit Rules issued in

G.O.Ms.No. 130 Finance & Planning (FW.Admn.II) Department dated 8-9-2000.

As stated in Rule 9(5) every person aggrieved by any disallowance surcharge may

within 60 days after the date of service on him can file an appeal before the government

who shall pass such orders as it deems fit/to make an application to the concerned

Principal Civil Court of their jurisdiction to set aside such allowance. Under sub rule (8)

of the said rules the surcharged amount shall be paid by the person in the nearest

Treasury or in the office of the Local Authority. In case of neither remittance nor make

an appeal such sum shall be recoverable as if it were arrear of Land Revenue. But during

the course of audit it was noticed that no such action has been taken on SCs. issued by the

State Audit Department thereby the very purpose of the surcharge action is deprived of.

Action would need to be taken in recovering the surcharged amounts from the

surchargees who were not reacted within the time as per rules.

A Consolidated Statement – 4 (4) showing audit objections on Surcharge

certificates recovery pending is appended to the Report from which it could be seen that

an amount of Rs.0.35 lakhs was pointed out in 7 audit paras.

- 116 -

18. OTHERS

There are other irregularities pointed out in audit which do not come under the

above 17 categories. A few examples are narrated in brief. In MP Polaki of Srikakulam

District it was noticed that 53 acres of the Cashew gardens were leased out at the

following rates which shows fluctuations in leased amounts. The reasons for such

fluctuations is not known to the audit.

Year Leased for Rs.

2005-06 1,39,000/-

2006-07 90,000/-

2007-08 3,11,000/-

2008-09 1,80,000/-

It was also noticed that a sum of 3,03,400 was left uncollected towards leased

amount for the period from 1994-95 to 2002-03. If the lessee has not paid the entire

leased amount the Executive Authority should have taken the action by forfeiting the

EMD&FSD etc. Further the EA should have not allowed the lessee to harvest the crop

without paying the entire bid amount as per tender conditions.

In MP Kanchili of Srikakulam District it was noticed that a sum of Rs.2,02,892

was deducted by the treasury authorities under narration lapsable as on 31-03-2009.

under G.O.Ms.No 43 Fin (W&M) Dept. Dated 22-4-000 the unspent balances under

schemes alone are lapsable. The amount lapsable are related to earmarked fund for

W&CW which has to utilize within 18 months. The lapse is caused due to lapse of

proper check by the Executive Authority and due to which the developmental activities

are held up. .

As per G.O.Ms.172 PR&RD dated 23-02-2005 the Annual Account has to be

maintained in New Accounting system but in most of the Mandal Parishads it was

noticed that the accounts and other subsidiary Registers are not maintained in the

proformas prescribed in the above Government Orders. Necessary and strict instructions

would need to be given to the Executive Authorities concerned to migrate into the New

Accounting system.

Government have reviewed the present systems and felt the need for

strengthening the Asset Management at various levels. The controls over land and

buildings stocks stores and other assets require strengthening to prevent any misuse.

There is every need to have relevant and reliable information about assets. It is therefore

essential to develop and maintain inventory of all assets to ensure that they are brought

into the books. The key requirements to ensure that assets are retained in the proper

custody and used as per the following norms prescribed.

a) Physical controls: All assets are kept under proper watch and ward to safeguard them

against theft pilferage damage and risk posed by the weather.

- 117 -

b) Asset Registers: The asset registers must be maintained as per the formats stated in

G.O.Ms No. 667 Finance (TFR.II) Dept dated 11.10.2004 for the every year ending with

31st December. The custodians for the assets are required to maintain Asset Registers for

all assets with up to date entries to know the actual ownership and prevent illegal

occupation/utilization.

c) Physical Verification: There are three forms of physical verification required - first

regular attestation of the accuracy of the records; secondly verification by the Head of

Office at least once a year and thirdly authentication by the Superior Officer during the

periodic inspections.

d) Disposal of Assets: All the offices are required to maintain a register of

unserviceable assets and dispose of the unserviceable assets as per provisions of A.P.

Financial Code Volume I and Departmental Codes and Manuals.

In G.O.Ms.No.667 Finance (TFR II) Department dated 11-10-2004 Government

have prescribed the following registers keeping in view the generality of the assets in

different categories like buildings roads etc.

1. Register of lands

2. Register of Buildings

3. Register of roads

4. Register of trees

5. Register of vehicles

6. Register of plant Machinery and Equipment

7. Register of Computer Hardware

8. General stock Register

9. Register of Furniture & Fixtures including Air Conditioners

10. Register of unserviceable articles

But the above registers were not maintained and produced to audit for

verification. Early action may be taken for the maintenance of the above registers and

produced to audit.

A Consolidated Statement – 4 (4) showing audit objections on others is

appended to the Report from which it could be seen that an amount of Rs. 439.16 lakhs

was pointed out in 5211 audit paras .

19. DEMAND DRAFTS / BANKERS CHEQUES ETC. RECEIVED

BUT NOT REALIZED WITHIN TIME :

Demand Drafts and cheques received for payment of money due to the Panchayat

Raj Bodies are to be entered in a register of Demand Drafts and Cheques received and

should be sent to the Banks for realization immediately. In the following cases Demand

Drafts received were not presented to the banks for payment till the close of audit.

- 118 -

19.1 GRANTS RELEASED FROM C.E.O. Z.P. KHAMMAM – NOT

IN TREASURY PASS BOOK – NEEDS EARLY ACTION Rs.55676.

As verified from the General fund cash book and Treasury pass book of MPP.

Chintoor the following amounts released by the Chief Executive Officer Zilla Parishad

Khammam towards SFC 1st quarter grant for the year 2008-09 of Rs.40,533 and seignior

age grant 2nd

quarter for the year 2008-09 for Rs.15,143 were not adjusted in the General

fund account of MPP Chintoor The same is recorded by the CEO in the records of the

MP during the time of inspection. Even then the same was not taken into the account of

MP.

Amount in Rs.

Sl.

No. Purpose of Grant Amount to be adjusted

01 SFC 1st Quarter for 2008-09 40,533

02 Seigniorage Grant of IInd quarter for the

year 2008-09.

15,143

Total: Rs.55,676

A Consolidated Statement – 4 (4) showing audit objections on D.D

Cheques but not realized with in time is appended to the Report from which it could be

seen that an amount of Rs. 0.56 lakhs was pointed out in 1 audit para .

DATE:31-12-2011 HYDERABAD DIRECTOR

STATE AUDIT

A.P., HYDERABAD

- 119 -

STATEMENT No. 1

CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT

#

NAME OF

THE

INSTITUTION

DEMAND AS ON

1-4-2009

AUDITS

COMPLETED AS

ON 31-3-2010

BALANCE AS ON

31-03-2010


1 MANDAL

PARISHADS 2 1097 0 1090 2 7

- 120 -

STATEMENT No. 1 (1)

STATEMENT SHOWING STATUS OF AUDIT OF MANDAL PARISHADS

AS ON 31-3-2010

#

NAME OF

THE

DISTRICT

DEMAND AS ON

1-4-2009

AUDITS

COMPLETED AS

ON 31-3-10

BALANCE AS

ON 31-

03-2010

ARREARS CURRENT ARREARS CURRENT ARREAR

S CURRENT

1 Adilabad 0 52 0 52 0 0

2 Ananthapur 1 63 0 63 1 0

3 Chittoor 0 65 0 65 0 0

4 East Godavari 0 58 0 58 0 0

5 Guntur 0 57 0 57 0 0

6 Kadapa 0 50 0 49 0 1

7 Karimnagar 0 57 0 55 0 2

8 Khammam 1 46 0 46 1 0

9 Krishna 0 49 0 49 0 0

10 Kurnool 0 53 0 53 0 0

11 Mahaboobnaga

r 0 64 0 64 0 0

12 Medak 0 46 0 46 0 0

13 Nalgonda 0 59 0 56 0 3

14 Nellore 0 46 0 46 0 0

15 Nizamabad 0 36 0 36 0 0

16 Prakasam 0 56 0 56 0 0

17 Ranga Reddy 0 33 0 32 0 1

18 Srikakulam 0 38 0 38 0 0

19 Visakhapatnam 0 39 0 39 0 0

20 Vizianagaram 0 34 0 34 0 0

21 Warangal 0 50 0 50 0 0

22 West Godavari 0 46 0 46 0 0

Total 2 1097 0 1090 2 7

- 121 -

STATEMENT No. 2

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS (Funds)

OF MANDAL PARISHADS FOR THE YEAR 2008-09

Rs.in Lakhs

# NAME OF THE


1 Adilabad 1254.29 1262.86

2 Ananthapur 1109.93 2254.66

3 Chittoor 4148.14 4080.66

4 East Godavari 6507.17 6581.21

5 Guntur 3697.95 3822.40

6 Kadapa 642.48 662.90

7 Karimnagar 3170.70 3300.31

8 Khammam 4249.77 3212.74

9 Krishna 2046.45 2406.87

10 Kurnool 502.98 593.59

11 Mahaboobnagar 1856.68 1369.01

12 Medak 1892.42 1564.57

13 Nalgonda 6057.33 5583.25

14 Nellore 974.30 1143.18

15 Nizamabad 387.66 478.47

16 Prakasam 1490.95 1386.39

17 Ranga Reddy 3864.33 4667.63

18 Srikakulam 610.51 923.08

19 Visakhapatnam 1122.43 1132.00

20 Vizianagaram 1437.07 1682.81

21 Warangal 2025.47 2108.47

22 West Godavari 2657.88 2513.84

TOTAL: 51706.90 52730.90

122

STATEMENT No. 2(a)

STATEMENT OF CONSOLIDATED fund wise RECEIPTS OF MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

# NAME OF THE

DISTRICT

General

fund

Educati

on fund

Social

Welfar

e Fund

M.I

Roads

&

Bridges

Rural

Water

Supply

Other

Program

mes

SGRY Depos

its

Advanc

es Total

1 Adilabad 254.35 0.00 42.91 0.00 0.00 6.44 685.40 142.99 96.93 25.27 1254.29

2 Ananthapur 594.76 0.00 16.81 0.00 0.00 0.00 476.90 11.06 4.74 5.68 1109.93

3 Chittoor 702.88 2113.04 0.00 0.00 2.83 0.00 1287.21 0.00 38.06 4.12 4148.14

4 East Godavari 3459.90 0.00 952.21 0.00 1.18 0.02 1966.63 0.00 28.20 99.03 6507.17

5 Guntur 2521.78 208.90 653.21 0.00 0.00 0.00 197.96 12.95 62.34 40.81 3697.95

6 Kadapa 559.91 0.00 0.00 0.00 0.00 0.00 82.57 0.00 0.00 0.00 642.48

7 Karimnagar 1055.98 88.97 0.00 0.00 0.00 1.19 1750.04 33.55 188.48 52.49 3170.70

8 Khammam 1142.52 0.00 83.74 0.00 0.00 0.00 3016.01 0.00 7.50 0.00 4249.77

9 Krishna 1407.30 0.00 85.73 10.09 22.99 35.58 156.59 313.54 13.06 1.57 2046.45

10 Kurnool 305.99 0.00 93.84 0.00 0.00 0.00 5.83 92.91 3.35 1.06 502.98

11 Mahaboobnagar 966.13 0.00 0.00 0.00 0.00 0.00 879.00 0.00 11.11 0.45 1856.68

12 Medak 1537.19 0.00 15.01 15.20 0.00 0.00 245.95 31.50 30.78 16.79 1892.42

13 Nalgonda 1547.46 0.00 23.97 0.00 0.00 26.62 4363.77 0.00 24.30 71.21 6057.33

14 Nellore 692.26 0.00 105.15 0.00 0.00 0.00 95.11 0.00 0.00 81.78 974.30

15 Nizamabad 289.29 0.00 0.00 0.00 0.00 0.00 93.48 0.00 2.11 2.78 387.66

16 Prakasam 928.14 0.00 95.49 0.00 0.00 9.70 318.53 62.95 54.36 21.78 1490.95

17 Ranga Reddy 3190.73 0.00 276.53 0.00 0.00 1.21 52.07 0.00 332.89 10.90 3864.33

18 Srikakulam 504.59 0.00 0.00 0.00 0.00 0.00 98.83 0.00 4.92 2.17 610.51

19 Visakhapatnam 769.58 0.00 18.43 0.00 40.44 0.00 12.57 206.76 20.12 54.53 1122.43

20 Vizianagaram 447.55 0.00 193.61 0.00 0.00 20.02 748.94 3.62 10.18 13.16 1437.07

21 Warangal 180.32 0.00 69.72 18.74 57.53 45.95 1630.95 0.00 0.00 22.26 2025.47

22 West Godavari 1373.73 0.00 32.45 0.00 0.00 443.93 746.76 0.00 25.75 35.26 2657.88

TOTAL: 24432.33 2410.91 2758.81 44.03 124.97 590.66 18911.09 911.82 959.18 563.10 51706.90

123

STATEMENT No. 2(b)

STATEMENT OF CONSOLIDATED FUND WISE PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

#

NAME OF

THE

DISTRICT

General

fund

Educatio

n fund

Social

Welfar

e Fund

M. I R &B RWS&

ARWS Others SGRY

Deposit

s

Advanc

es Total

1 Adilabad 273.87 0.00 6.01 0.00 0.00 12.34 682.55 175.90 73.75 38.44 1262.86

2 Ananthapur 476.52 0.00 92.21 0.00 51.66 9.03 1586.34 22.77 4.72 11.41 2254.66

3 Chittoor 677.47 1972.12 0.36 159.44 28.39 5.46 1194.95 0.00 36.96 5.51 4080.66

4 East Godavari 3135.70 0.00 955.00 0.51 517.90 17.85 1827.07 0.00 26.18 101.00 6581.21

5 Guntur 2543.23 224.52 656.13 0.00 34.24 10.94 237.31 18.00 25.58 72.45 3822.40

6 Kadapa 587.98 0.00 0.00 0.00 0.00 0.00 74.92 0.00 0.00 0.00 662.90

7 Karimnagar 1249.54 37.53 0.00 0.00 180.30 80.61 1590.25 8.48 110.92 42.68 3300.31

8 Khammam 980.52 0.00 62.20 0.00 0.00 0.00 2170.02 0.00 0.00 0.00 3212.74

9 Krishna 1456.26 0.00 147.17 8.17 44.26 49.36 304.89 384.97 10.00 1.79 2406.87

10 Kurnool 341.22 0.00 148.65 0.00 0.00 0.00 7.68 95.23 0.41 0.40 593.59

11 Mahaboobnagar 579.71 0.00 0.00 0.00 5.24 0.00 779.30 0.00 4.76 0.00 1369.01

12 Medak 1490.19 0.00 13.21 0.00 0.00 5.91 22.37 22.00 0.00 10.89 1564.57

13 Nalgonda 1531.90 0.00 26.18 0.00 0.00 15.97 3432.70 474.47 17.64 84.39 5583.25

14 Nellore 881.62 0.00 72.87 0.00 0.06 55.99 61.02 0.00 0.00 71.62 1143.18

15 Nizamabad 345.57 0.00 0.00 0.00 0.00 0.00 129.22 0.00 1.57 2.11 478.47

16 Prakasam 727.40 0.00 89.83 0.00 229.95 30.02 183.61 93.67 13.90 18.01 1386.39

17 Ranga Reddy 3860.04 0.00 435.85 8.64 113.12 5.92 39.77 0.00 191.83 12.46 4667.63

18 Srikakulam 802.23 0.00 0.00 0.00 0.00 0.00 113.28 0.00 4.75 2.82 923.08

19 Visakhapatnam 654.87 0.00 31.36 0.00 207.92 0.00 15.67 157.01 7.46 57.71 1132.00

20 Vizianagaram 501.22 0.00 364.95 0.00 0.00 37.71 741.79 17.69 4.98 14.49 1682.81

21 Warangal 147.52 0.00 69.08 33.04 82.53 70.30 1673.39 0.00 0.00 32.61 2108.47

22 West Godavari 1184.38 0.00 38.71 0.00 7.03 398.64 775.29 0.00 21.29 88.50 2513.84

TOTAL: 24428.96 2234.17 3209.76 209.80 1502.60 806.04 17643.39 1470.19 556.70 669.29 52730.90

124

125

STATEMENT No. 3

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS

(Funds) OF MANDAL PARISHADS FOR THE YEAR 2008-09

Rs.in Lakhs

Sl.No. Name Of The

District Receipts Payment

1 Adilabad 2030.28 2274.13

2 Ananthapur 4920.32 3329.64

3 Chittoor 6719.36 6276.02

4 East Godavari 5505.02 5582.32

5 Guntur 2718.32 2697.24

6 Kadapa 801.85 680.89

7 Karimnagar 3270.49 3012.67

8 Khammam 2314.19 3655.95

9 Krishna 1452.25 1541.16

10 Kurnool 313.62 267.30


12 Medak 1089.69 940.60

13 Nalgonda 4675.98 5345.52

14 Nellore 190.02 196.44

15 Nizamabad 1489.52 1518.74

16 Prakasam 582.08 376.46

17 Ranga Reddy 3006.18 3399.81

18 Srikakulam 3090.96 3321.13


20 Vizianagaram 1999.36 1866.14

21 Warangal 2181.63 2120.75

22 West Godavari 2601.49 2351.23

TOTAL: 55589.61 55162.68

126

STATEMENT No. 3 (a)1

CONSOLIDATED STATEMENT OF GRANTS (Receipts) TO MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

Sl.

No.

Name Of The

District Teaching

Non-

teaching SGRY

Central

Finance

State

Finance RRM

Honorarium

to

Presidents

TA-Dato

non-

officials

TA-DA to

officers&

Staff

1 Adilabad 0.00 20.58 136.99 174.26 20.55 0.00 7.45 4.31 1.88

2 Ananthapur 0.00 1206.61 480.72 1822.53 85.55 1.74 38.24 15.17 5.43

3 Chittoor 5032.60 380.82 380.99 61.01 54.52 0.00 21.94 13.56 3.82

4 East Godavari 3665.41 290.69 0.00 53.77 33.15 117.02 13.25 6.28 13.60

5 Guntur 1132.02 176.61 1.73 60.20 0.00 0.00 7.22 10.28 2.98

6 Kadapa 0.00 0.00 0.00 18.72 20.38 0.00 37.72 1.32 45.05

7 Karimnagar 68.03 286.63 12.30 72.04 39.61 0.19 19.00 8.91 2.28

8 Khammam 1111.98 120.52 0.84 100.90 15.34 2.43 13.53 2.64 0.84

9 Krishna 25.67 34.33 213.20 37.89 34.20 6.39 26.68 10.22 3.25

10 Kurnool 0.02 0.00 86.23 65.57 39.72 0.00 17.77 1.45 3.47

11 Mahaboobnagar 0.00 43.48 2.50 19.57 19.02 0.00 4.53 2.31 4.14

12 Medak 210.00 202.20 31.50 12.09 20.29 99.01 31.80 12.00 12.10

13 Nalgonda 3802.04 120.66 0.00 100.59 43.89 0.00 13.51 16.75 2.41

14 Nellore 0.00 1.14 0.00 93.76 27.78 0.53 17.19 10.65 0.72

15 Nizamabad 0.00 44.25 0.00 49.50 29.56 26.55 88.50 10.30 19.98

16 Prakasam 0.00 0.00 0.53 136.72 28.60 6.71 32.54 6.42 3.53

17 Ranga Reddy 0.00 253.51 0.87 52.72 24.96 0.00 411.12 20.66 3.95

18 Srikakulam 0.20 48.44 12.34 33.12 23.13 0.00 21.03 6.24 1.02

19 Visakhapatnam 934.80 104.61 48.94 243.45 26.48 0.00 21.04 2.87 8.76

20 Vizianagaram 0.00 0.00 0.00 63.86 19.04 0.00 2.52 7.06 1.10

21 Warangal 3.12 197.52 0.00 11.58 35.87 62.51 17.55 0.95 0.95

22 West Godavari 386.12 246.11 37.14 103.71 33.99 0.00 16.75 42.99 71.60

TOTAL: 16372.01 3778.71 1446.82 3387.56 675.63 323.08 880.88 213.34 212.86

127

STATEMENT No. 3 (a)2

CONSOLIDATED STATEMENT OF GRANTS (Receipts) TO MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

Sl.

No.

Name Of The

District

Minor

irrigation

Natural

clamity

Building

grant

RWS/

ARWS

Election

grant

Assembly

MP,MLA Nabard BRGF

Other

grants Total

1 Adilabad 0.00 0.00 0.00 0.00 0.00 542.03 0.00 436.09 686.14 2030.28

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 789.79 474.53 4920.32

3 Chittoor 0.00 0.00 0.00 0.00 0.00 63.58 0.00 684.16 22.36 6719.36

4 East Godavari 206.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1105.45 5505.02

5 Guntur 0.21 0.00 1.99 0.00 0.00 0.00 0.00 0.00 1325.08 2718.32

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 434.60 244.06 801.85

7 Karimnagar 0.00 0.00 0.00 2.87 0.21 767.44 0.00 425.54 1565.44 3270.49

8 Khammam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 722.40 222.77 2314.19

9 Krishna 0.00 0.00 0.00 19.76 0.00 140.86 0.00 0.00 899.80 1452.25

10 Kurnool 0.98 0.00 0.00 0.00 3.02 0.00 0.00 0.00 95.39 313.62

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 1.10 0.00 585.00 154.71 836.36

12 Medak 0.00 0.00 0.00 0.00 0.00 0.00 0.00 443.10 15.60 1089.69

13 Nalgonda 112.14 0.00 0.00 0.00 0.00 0.00 0.00 460.00 3.99 4675.98

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38.25 190.02

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 328.00 892.88 1489.52

16 Prakasam 0.00 0.00 0.00 0.00 0.00 1.00 0.00 0.00 366.03 582.08

17 Ranga Reddy 0.00 0.00 0.00 1.21 0.30 79.14 0.00 582.25 1575.49 3006.18

18 Srikakulam 0.00 0.00 0.00 0.00 0.00 123.64 0.00 0.00 2821.80 3090.96

19 Visakhapatnam 0.00 1084.23 0.00 0.00 0.00 0.00 0.00 0.00 1325.46 3800.64

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 37.94 0.00 367.76 1500.09 1999.36

21 Warangal 0.00 0.00 0.00 67.71 0.00 488.85 51.31 433.88 809.83 2181.63

22 West Godavari 0.00 0.00 12.50 135.54 0.00 43.30 0.00 0.00 1471.74 2601.49

TOTAL: 319.73 1084.23 14.49 227.09 3.53 2288.88 51.31 6692.57 17616.89 55589.61

128

STATEMENT No. 3(b)1

CONSOLIDATED STATEMENT OF GRANTS(Payments) TO MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

Sl.

No.

Name Of The

District Teaching

Non-

teaching SGRY

Central

Finance

State

Finance

Rural road

maintenance

Honorarium

to Presidents

TA-Dato

non-

officials

TA-DA to

officers&

Staff

1 Adilabad 0.00 39.05 173.38 159.93 27.47 0.00 14.18 9.98 6.69

2 Ananthapur 0.00 580.83 132.07 1471.69 205.77 48.27 34.03 9.88 9.56

3 Chittoor 5027.62 275.47 7.38 42.52 43.28 0.00 22.78 19.09 8.32

4 East Godavari 3618.27 270.63 0.00 26.63 31.21 41.73 17.78 10.77 93.60

5 Guntur 1132.02 169.85 1.59 22.50 0.00 0.00 8.22 32.80 10.48

6 Kadapa 0.00 0.00 0.00 11.97 12.81 0.00 37.48 0.29 24.37

7 Karimnagar 71.07 285.04 15.24 39.81 26.65 0.00 19.47 12.15 3.11

8 Khammam 2278.13 166.76 10.68 90.31 23.76 2.00 36.52 4.03 2.68

9 Krishna 25.67 32.62 243.77 29.37 38.11 10.65 38.56 12.40 9.48

10 Kurnool 0.80 0.00 94.10 47.30 30.10 0.00 32.90 2.20 16.60

11 Mahaboobnagar 0.00 12.63 3.83 22.74 14.24 0.00 8.01 3.08 7.07

12 Medak 210.00 202.20 22.00 14.21 19.50 68.90 45.90 18.80 13.90

13 Nalgonda 4060.29 118.06 470.59 84.51 38.96 0.00 19.83 35.34 10.09

14 Nellore 0.00 1.14 0.00 71.46 30.82 0.00 14.77 23.62 7.04

15 Nizamabad 0.00 45.75 0.00 47.19 27.55 25.70 85.91 10.12 20.28

16 Prakasam 0.00 0.00 0.00 161.11 73.38 26.46 36.63 7.65 16.77

17 Ranga Reddy 0.00 280.28 4.51 33.28 16.44 113.12 801.12 30.06 3.65

18 Srikakulam 0.20 48.44 24.32 20.63 19.01 0.00 42.33 10.72 9.11

19 Visakhapatnam 936.07 113.35 156.68 80.84 11.42 0.00 31.15 13.93 17.27

20 Vizianagaram 0.00 0.00 3.11 72.51 18.50 0.00 2.77 9.95 2.71

21 Warangal 3.12 239.38 0.00 34.19 38.83 33.50 16.56 1.89 2.68

22 West Godavari 304.57 241.07 56.03 87.81 26.88 11.93 20.62 59.18 77.58

TOTAL: 17667.83 3122.55 1419.27 2672.51 774.69 382.26 1387.53 337.93 373.04

129

STATEMENT No. 3 (b) 2

CONSOLIDATED STATEMENT OF GRANTS (Payments) TO MANDAL PARISHADS FOR THE YEAR 2008-09

Rs. In lakhs

# Name Of The

District

Minor

irrigation

Natural

clamity

Building

grant RWS/ARWS

Election

grant

Assembly

MP,MLA NABARD

Back Ward

Regions

Grant

Other

grants Total

1 Adilabad 0.00 0.00 0.00 0.00 0.00 567.10 0.00 376.57 899.78 2274.13

2 Ananthapur 0.97 0.00 0.00 6.33 0.14 0.00 0.00 333.95 496.15 3329.64

3 Chittoor 0.00 0.00 173.66 40.45 0.00 18.50 0.00 554.05 42.90 6276.02

4 East Godavari 224.11 0.00 0.00 5.88 0.00 0.00 0.00 0.00 1241.71 5582.32

5 Guntur 3.12 0.00 2.56 0.00 0.00 0.00 0.00 0.00 1314.10 2697.24

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 414.96 179.01 680.89

7 Karimnagar 0.00 0.00 9.59 79.11 0.27 340.42 0.00 597.18 1513.56 3012.67

8 Khammam 0.00 0.00 0.00 0.00 0.00 20.24 0.00 722.40 298.44 3655.95

9 Krishna 0.00 0.00 0.00 19.76 0.20 234.42 0.00 0.00 846.15 1541.16

10 Kurnool 0.00 0.00 0.00 0.00 5.50 0.00 0.00 0.00 37.80 267.30

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 1.10 0.00 631.85 152.40 856.95

12 Medak 8.28 0.00 0.00 0.00 0.00 0.00 0.00 301.31 15.60 940.60

13 Nalgonda 43.80 0.00 0.00 0.00 0.00 0.00 0.00 446.00 18.05 5345.52

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 47.59 196.44

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 328.00 928.24 1518.74

16 Prakasam 26.21 0.00 0.00 10.69 0.00 0.93 0.00 0.00 16.63 376.46

17 Ranga Reddy 0.00 0.00 0.00 4.97 0.60 51.29 0.00 518.20 1542.29 3399.81

18 Srikakulam 0.00 0.00 0.00 0.00 0.00 112.46 0.00 0.00 3033.91 3321.13

19 Visakhapatnam 0.00 1103.46 0.00 0.00 0.81 0.00 0.00 0.00 1086.61 3551.59

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 37.70 0.00 360.46 1358.43 1866.14

21 Warangal 0.00 0.00 13.46 68.46 0.00 498.32 36.66 328.84 804.86 2120.75

22 West Godavari 0.00 0.00 11.23 137.06 0.00 5.57 0.00 0.00 1311.70 2351.23

TOTAL: 306.49 1103.46 210.50 372.71 7.52 1888.05 36.66 5913.77 17185.90 55162.68

130

STATEMENT No.4

STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS IN

MANDAL PARISHADS FOR THE YEAR 2008-09 (DISTRICT WISE

CONSOLIDATED FIGURES)

Rs. In lakhs

Sl. No. NAME OF THE DISTRICT MANDAL PARISHADS

No. AMOUNT

1 Adilabad 664 230.50


3 Chittoor 445 126.91


5 Guntur 845 269.01

6 Kadapa 1043 179.16


8 Khammam 4114 207.39

9 Krishna 885 253.36

10 Kurnool 853 240.62


12 Medak 510 119.01

13 Nalgonda 462 421.55

14 Nellore 981 123.05

15 Nizamabad 358 1016.85

16 Prakasam 864 124.09





21 Warangal 915 379.86


TOTAL: 21739 5832.26

131

STATEMENT No. 4

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY

WISE) AND AMOUNT INVOLVED IN MANDAL PARISHADS FOR THE YEAR 2008-09

( CATEGORY WISE CONSOLIDATION)

Rs. In lakhs

Sl.


MANDAL PARISHADS

No. AMOUNT










10 Non remittance of deduction recoveries from work

bills / pay bills / contingent bills etc., 2036 1418.13








18 Others 5211 439.16

19 D.D/Cheques received but not realized with in

time 1 0.56

Total: 21739 5832.26

132

STATEMENT 4 (1)

STATEMENT SHOWING DISTRICT WISE AND CATEGORY WISE AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09

RS.IN LAKHS

Sl.

No.

NAME OF THE

DISTRICT

VARIATION IN

ACCOUNT FIGURES

EXCESS UTILISATION OF

GRANTS / FUNDS

DIVERSION OF GRANTS /

FUNDS

NON-UTILISATION OF

GRANTS BEFORE THE

LAPSABLE DATE A

MIS - UTILISATION

OF GRANTS / FUNDS

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 2 0.00 71 27.00 22 8.93 21 7.75 11 2.81

2 Ananthapur 10 2.93 119 9.87 50 5.39 11 1.47 0 0.00

3 Chittoor 23 2.97 35 37.32 9 4.03 2 0.80 2 0.80

4 East Godavari 3 0.19 24 6.29 79 28.04 12 0.00 2 0.00

5 Guntur 10 0.00 40 5.09 16 5.24 0 0.00 6 3.58

6 Kadapa 10 0.00 79 2.28 14 0.61 13 0.00 1 0.50

7 Karimnagar 12 0.43 20 9.22 23 5.14 3 0.61 0 0.00

8 Khammam 4 0.12 136 8.41 38 8.20 368 8.64 76 13.45

9 Krishna 1 2.39 16 0.85 19 2.07 15 3.70 0 4.80

10 Kurnool 9 5.05 17 4.89 14 4.79 5 0.00 1 0.16

11 Mahaboobnagar 6 0.02 57 3.68 46 7.95 0 0.00 2 1.55

12 Medak 8 0.00 8 0.95 29 16.01 5 0.00 0 0.00

13 Nalgonda 19 1.27 36 23.57 32 49.80 9 23.19 10 4.55

14 Nellore 11 0.00 43 5.43 65 5.30 13 0.00 0 0.00

15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

16 Prakasam 59 0.00 3 0.00 57 14.33 6 0.00 0 0.00

17 Ranga Reddy 6 1.16 22 39.33 33 7.11 2 0.00 0 0.00

18 Srikakulam 0 0.00 18 7.44 24 8.82 146 10.47 0 0.00

19 Visakhapatnam 6 0.11 57 10.91 37 17.02 0 0.00 3 0.00

20 Vizianagaram 5 0.00 7 1.07 5 0.20 9 2.78 1 1.29

21 Warangal 14 0.84 57 37.36 33 18.53 42 9.42 3 4.41

22 West Godavari 9 9.26 5 0.00 36 11.94 14 0.00 0 0.00

TOTAL: 227 26.74 870 240.95 681 229.45 696 68.83 118 37.89

133

STATEMENT 4 (2)


RS.IN LAKHS

Sl.

No.

NAME OF THE

DISTRICT

NON-UTILISATION OF

EARMARKED FUNDS

NON-COLLECTION

OF DUES

ADVANCES PENDING

ADJUSTMENT VIOLATION OF RULES

NON RENITTANCE OF

DEDUCTION


1 Adilabad 38 17.28 9 0.76 38 22.23 98 46.50 33 11.55

2 Ananthapur 213 19.20 7 1.71 55 17.09 285 34.04 189 21.00

3 Chittoor 28 18.59 2 0.69 10 7.66 96 27.5 33 9.58

4 East Godavari 79 61.03 11 4.06 89 32.42 298 12.85 94 36.23

5 Guntur 61 3.44 35 0.20 24 27.49 77 8.09 78 38.16

6 Kadapa 103 35.55 1 0.00 6 0.70 208 8.84 96 25.05

7 Karimnagar 56 3.01 5 0.56 16 7.15 128 12.69 127 24.18

8 Khammam 60 10.93 358 52.37 16 3.99 1058 32.22 261 15.04

9 Krishna 100 25.86 4 5.26 2 0.52 286 42.25 156 32.67

10 Kurnool 188 70.74 40 8.35 45 25.90 27 1.45 50 15.38

11 Mahaboobnagar 46 87.17 51 12.72 11 6.85 51 9.62 82 30.54

12 Medak 26 29.26 8 0.19 28 10.96 59 8.10 89 34.10

13 Nalgonda 53 46.49 6 0.30 26 11.94 62 40.41 60 12.61

14 Nellore 58 5.67 35 0.00 36 11.15 135 24.76 96 9.84

15 Nizamabad 0 0.00 2 0.10 3 0.20 1 0.30 40 814.51

16 Prakasam 114 10.27 6 0.00 26 7.89 48 13.82 111 42.69

17 Ranga Reddy 32 179.52 10 4.01 12 7.97 84 12.40 72 105.27

18 Srikakulam 0 0.00 2 11.61 21 11.13 334 23.24 70 13.61

19 Visakhapatnam 46 0.00 32 8.30 34 32.68 129 8.77 50 63.25

20 Vizianagaram 44 0.00 10 3.38 43 12.14 101 4.21 66 33.70

21 Warangal 78 70.53 20 0.00 20 14.83 95 108.32 96 11.71

22 West Godavari 47 16.40 15 0.00 65 13.06 114 4.92 87 17.45

TOTAL: 1470 710.94 669 114.57 626 285.95 3774 485.30 2036 1418.13

134

STATEMENT 4 (3)


RS.IN LAKHS

Sl.

No.

NAME OF THE

DISTRICT

NON-PRODUCTION

OF RECORDS

MIS

APPROPRIATION

EXCESS

PAYMENTS

WASTEFUL

EXPENDITURE

INSTANCE CASES OF

UNACCOUNTED FOR


1 Adilabad 166 78.24 2 0.30 11 1.31 3 0.10 0 0.00

2 Ananthapur 232 72.30 5 0.70 79 3.09 3 0.25 0 0.00

3 Chittoor 71 13.00 1 0.13 14 1.52 6 0.62 0 0.00

4 East Godavari 230 66.80 0 0.00 21 1.02 20 4.07 0 0.00

5 Guntur 193 164.47 0 0.00 26 1.04 2 0.01 0 0.00

6 Kadapa 237 92.50 0 0.00 10 0.41 3 0.52 1 0.00

7 Karimnagar 97 65.25 1 0.40 5 0.42 8 0.79 2 0.00

8 Khammam 487 33.33 2 0.22 9 0.38 1 0.05 0 0.00

9 Krishna 130 124.47 0 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 98 38.81 1 0.30 44 1.70 0 0.00 0 0.00

11 Mahaboobnagar 95 26.09 1 0.00 36 2.94 4 0.37 1 0.04

12 Medak 65 16.49 6 0.91 7 0.12 2 1.90 0 0.00

13 Nalgonda 55 31.00 1 0.15 3 115.02 2 59.57 1 0.00

14 Nellore 183 56.22 0 0.00 25 2.23 2 0.03 1 0.00

15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

16 Prakasam 52 28.34 1 0.10 14 0.84 2 0.20 0 0.00

17 Ranga Reddy 40 68.13 6 0.74 31 4.83 2 0.83 0 0.00

18 Srikakulam 355 13.61 2 0.10 12 0.29 0 0.00 0 0.00

19 Visakhapatnam 150 104.87 0 0.00 26 2.07 1 0.95 1 0.00

20 Vizianagaram 137 352.20 2 0.14 34 2.57 6 0.66 7 0.00

21 Warangal 98 38.81 1 0.30 44 1.70 0 0.00 0 0.00

22 West Godavari 145 29.09 0 0.00 7 0.79 2 0.44 0 0.00

TOTAL: 3316 1514.01 32 4.49 458 144.29 69 71.36 14 0.04

135

STATEMENT 4 (4)


RS.IN LAKHS

Sl.

No.

NAME OF THE

DISTRICT

PENDENCY U.CS S.C. RECOVERY

PENDING OTHERS

DD/CHEQUES RECEIVED

BUT NOT REALISED TOTAL


1 Adilabad 53 0.00 0 0.00 86 5.74 0 0.00 664 230.50

2 Ananthapur 90 0.17 0 0.00 365 3.81 0 0.00 1713 193.02

3 Chittoor 9 0.00 0 0.00 104 1.70 0 0.00 445 126.91

4 East Godavari 42 29.01 1 0.00 340 6.92 0 0.00 1345 288.93

5 Guntur 41 0.00 3 0.00 233 12.22 0 0.00 845 269.01

6 Kadapa 68 0.00 1 0.35 192 11.85 0 0.00 1043 179.16

7 Karimnagar 29 3.17 0 0.00 113 1.81 0 0.00 645 134.83

8 Khammam 34 3.15 0 0.00 1205 16.33 1 0.56 4114 207.39

9 Krishna 19 0.00 0 0.00 137 8.52 0 0.00 885 253.36

10 Kurnool 81 0.59 0 0.00 233 62.51 0 0.00 853 240.62

11 Mahaboobnagar 32 0.00 0 0.00 214 14.60 0 0.00 735 204.14

12 Medak 20 0.00 0 0.00 150 0.02 0 0.00 510 119.01

13 Nalgonda 5 0.00 0 0.00 82 1.68 0 0.00 462 421.55

14 Nellore 61 0.00 0 0.00 217 2.42 0 0.00 981 123.05

15 Nizamabad 0 0.00 0 0.00 312 201.74 0 0.00 358 1016.85

16 Prakasam 48 0.58 2 0.00 315 5.03 0 0.00 864 124.09

17 Ranga Reddy 24 2.01 0 0.00 79 9.32 0 0.00 455 442.63

18 Srikakulam 38 0.00 0 0.00 242 4.24 0 0.00 1264 104.56

19 Visakhapatnam 30 0.00 0 0.00 127 1.32 0 0.00 729 250.25

20 Vizianagaram 623 0.00 0 0.00 92 1.19 0 0.00 1192 415.51

21 Warangal 81 0.59 0 0.00 233 62.51 0 0.00 915 379.86

22 West Godavari 36 0.00 0 0.00 140 3.67 0 0.00 722 107.02

TOTAL 1464 39.27 7 0.35 5211 439.16 1 0.56 21739 5832.26

136

137


THE ACCOUNTS OF GRAM PANCHAYATS FOR THE YEAR

2008-09

INTRODUCTION

1.1 Under the A.P. State Audit Act, 1989 the Director is made in charge of the

audit of the funds of Gram Panchayat Institutions as specified in the Schedule

prescribed in the said Act.

1.2 The Department has got its offices in all the districts of Andhra Pradesh where

in the District Audit Officer; State Audit is the head at the district level.

1.3 The Department conducts post audit of the Gram Panchayat Institutions and

Audit Reports consisting of defects noticed in audit are issued to the Executive

Officer/Sarpanch of the Gram Panchayat concerned who has to take action for

rectifying the defects pointed out in the Audit Report.

1.4 Under the State Audit Act, 1989, the Director is vested with the power of

disallowing any item of the expenditure incurred contrary to the law and surcharge the

same on the person incurring or authorizing the incurring of such expenditure and

may charge against any person responsible there for, the amount of any deficiency,

loss or unprofitable out lay occasioned by the negligence or misconduct of that person

or of any such sum which ought to have been accounted for but is not brought into

account by that person and shall, in every such case, certify the amount due from

such person.

SCOPE OF AUDIT

2 The State Audit Department has been statutorily entrusted with the authority

to verify the following aspects during the course of post audit of the Gram

Panchayats.

a) Whether the taxes, fees etc., collected by the Gram Panchayats were

properly accounted for with full details in the books of accounts of the

body concerned.

b) Whether adequate care is taken to periodically check up the funds with

Treasury or Bank.

c) Whether expenditure incurred was provided for in the Budget of the

Gram Panchayat Institutions concerned and duly sanctioned by the

competent authority under the Act / Rules or any executive instructions

issued by the Government.

d) Whether funds were utilized only for the permitted purposes prescribed

under the Act / Rules.

e) Whether the procedure prescribed by Government in incurring the

expenditure / payments made is properly followed and accounted for

with due classification in the books of accounts of the Panchayat Raj

body.

138

f) Whether vouchers for the expenditure incurred were maintained.

g) Whether grants received from different sources were properly

accounted for and utilized for the purposes for which they were meant.

STATUS OF AUDIT

3. 1 During the audit year 2008-09, 20311 current years of audit and 361

arrear audits of Gram Panchayats were audited by this department. No. of GPs.,

audited District wise is shown in Statement No. 1

3.2 The pending audit position of Gram Panchayats for the year 2008-09 is also

furnished in the appended Statement 1.

RECEIPTS AND PAYMENTS (2008-09)

4.1 The Receipts and Payments are inclusive of the various grants received from

Central and State Governments during the year 2008-09 by the Gram Panchayats. The

details of gross Receipts including grants and Payments are shown in the Statement

No. 2. The various Grants received by the Gram Panchayats are exclusively detailed

in Statement No.3

4.2 The aggregate Receipts & Payments of the Gram Panchayats in the State

during the year 2008-09 are Rs. 119397.52 lakhs and Rs.94878.02 lakhs

respectively.

A comparative Bar diagram showing consolidated income and expenditure

for the years 2007-08 and 2008-09 are show in the given chart –I.

Chart – 1

(Rs in lakhs)

Bar diagram showing the receipts and

payments of the GPs., during the

years 2007-08&2008-08

receipts ,

75964

receipts ,

119397

payments ,

76056

payments ,

94878

0

20000

40000

6000080000

100000

120000

140000

2007-08 2008-09

4.3 The details of the various source of receipts of the Gram Panchayat is detailed

in the Appended in Statement 2(1) appended to the report and also shown below

through pie chart II.


Copy%20of%20STATEMENT%20NO.2including%20(2008-09).xls

STATEMENT%20NO.3%20modified.xls

../G-SECTION%20AAO/CARR%20GP%2008-09/STATEMENT%20NO.2(2008-09).xls

139

Rs. In Lakhs

Chart –2

pie chart showing the receipts of GP

for the year 2008-09

13927.66, 12%

23177.04, 19%

27500.50, 23%

38597.45, 32%

791.13, 1%

737.03, 1%

11329.50, 9%

3337.21, 3%

TAX RESOURCES

11.66%

NON-TAX

RESOURCES 19.41%

OTHER

RECEIPTS23.03%

GOVERNMENT

GRANTS 32.33%

ADVANCES 0.66%

DEPOSITS 0.62%

BRGF9.49%

SALARY GRANTS

2.80%

4.4. The details of the expenditure made by the Gram Panchayat under various

heads is detailed Appended in Statement No. 2(2) and also shown below through

pie chart III.

S.No. Name of the income source Amount received

1. Tax resources 13927.66

2. Non-tax resources 23177.04

3. Other receipts 27500.50

4. Government grants 38597.45

5. Advances 791.13

6. Deposits 737.03

7. Salary grants 3337.21

8. BRGF 11329.50

Total 119397.52

140

Chart –3

PIE chart of Payments of GP for

2008-09

9004.02, 9%

12284.02, 13%

20439.11, 22%40679.22, 42%

1646.17, 2%

576.63, 1%

9700.93, 10%

547.91, 1%

SALARIES 10%

OTHER

ADMINISTRATIVE

EXPENDITURE 13%MAINTENANCE

EXPENDITURE 22%

WORKS 42%

ADVANCES 2%

DEPOSITS 1%

BRGF 3%

OTHERS1%

4.5 The Department has conducted the audit of the Receipts amounting to Rs.

119397.52 Lakhs and Payments of Rs. 94878.02 Lakhs as shown in the Statement

No. 2 .

4.6 The trend of the receipts and payments for the last 5 years is shown below.

S.

No

.

Year Receipts

in Lakhs

Payments

in Lakhs

Ratio of

receipts

and

payments

Increase

in

receipts

Increase

in

payment

s

% of

change in

Receipts

YtY

% of change

in Payments

YtY

1 2004-05 81597 66349 100:81

2 2005-06 123654 133995 100:108 42057 67646 34.01 50.48

3 2006.07 85242 76727 100:90 -38412 -57268 -45.06 -74.64

4 2007-08 75964 76056 100:100 -9278 -671 -12.21 -0.88

5 2008-09 119397 94878 100:79 -43434 -18822 -36.38 -19.84

Total 485854 448005

S.No. Mode of expenditure Amount involved

1. Salaries 9004.02

2. Other administrative expenditure 12284.02

3. Maintenance expenditure 20439.11

4. Works 40679.22

5. Advances 1646.17

6. Deposits 576.63

7. BRGF 9700.93

8. Others 547.91

Total 94878.02

141

The above table indicates decreasing trend in receipts and also decreasing trend in

expenditure. The economic condition of GPs is deteriorating instead of improving. In

the years 2005-06 & 2007-08 the expenditure is higher than the receipts.

GRANTS POSITION

5.1 Gram Panchayat are provided grants by the State / Central Governments to

implement the schemes entrusted to them and also for over all development of the

area under their jurisdiction. The Gram Panchayats have received the grants as

detailed in the Statement No.3

5.2 The Grant Wise Receipts & Payments of Gram Panchayats in the State

for the year 2008-09 are exhibited in the bar charts, Chart – IV & Chart-V

Chart IV

Amount in lakhs

Bar diagram showing the trend of

Grants and non-grants of GPs., for the

year 2008-09

55170.31

64227.21

45262.249615.82

0

10000

20000

30000

40000

50000

60000

70000

receipts 55170.31 64227.21

payments 45262.2 49615.82

grants non grants


Consolidated Statement of Receipts & Payments District

Wise & Head wise (Grants)

Statement – 3

Consolidated Statement of Receipts Head Wise (Grants) Statement – 3(1)

Consolidated Statement of Payments Head Wise (Grants) Statement – 3(2)

../G-SECTION%20AAO/CARR%20GP%2008-09/STATEMENT%20NO.3.xls

142

Chart -V

AUDIT OBJECTIONS

6.1 During the course of audit Gram Panchayats for the year 2008-09, the defects

noticed were already pointed out in the relevant Audit Reports, as “Audit Objections”

which were forwarded to the Chief Executive Authorities concerned for further action

at their end as per the procedure laid down under the A.P. State Audit Act 1989.

6.2 A total number of 3,01,291 audit objections involving an amount of Rs.

15639.27 lakhs were raised in the audit of the Gram Panchayats during the year

under report.


involved with institution-wise break-up is annexed vide Statement No. 4

6.4 CATEGORISATION OF AUDIT OBJECTIONS:

The Audit Objections are classified into 19 Categories as detailed below and

shown in the Appended Statement No. –4

Consolidated statement of audit objections district wise Statement –4

Statement showing category wise consolidated objections Statement – 4 CAT

Variation in Account Figures Statement -4(1)

Excess Utilisation of Grants Statement – 4(1)

Diversion of Grants / Funds Statement – 4(1)

Non-Utilisation of Grants before lapsable date Statement – 4(1)

Mis-Utilisation of Grants / Funds Statement – 4(1)

Non-Utilisation of Earmarked Funds Statement – 4(1)

Copy%20of%20Copy%20of%20STATEMENT%20NO.4modified.xls



../G-SECTION%20AAO/CARR%20GP%2008-09/STATEMENT%20No..5.xls

143

Non-collection of dues Statement – 4(1)

Advances pending adjustment Statement – 4(2)

Violation of Rules Statement – 4(2)

Non-remittance of Deductions / Recoveries from

vouchers / Pay Bills / Contingent Bills

Statement –4(2)

Non-production of Records Statement – 4(2)

Mis-appropriations Statement – 4(2)

Excess payments Statement – 4(2)

Wasteful Expenditure Statement –4(2)

Instances of cases of unaccounted cash / stores Statement – 4(3)

Pendency of Utilisation Certificates Statement – 4(3)

Surcharge Certificates - Recovery pending Statement – 4(3)

Others Statement – 4(3)

DDs / Cheques received but not realised Statement – 4(3)

6.5 The objections raised during the year 2008-09 and amount involved there on

were categorized and their category has been analyzed 37.67%of objections involved

pertains to the others category . The next slot goes to violation of rules and Non-

production of records at 21.10% and 13.33% respectively. The details are shown in

Statement No.4 .

Name of the categeory no of

objections %

Amount

involved %

Others 113400 37.67 990.77 6.34

Violation of Rules 63538 21.10 3190.70 20.40

Non Production of Records 40118 13.33 3501.50 22.39

Non remittance of deduction

recoveries from work bills / pay

bills / contingent bills etc.,

28373 9.42 3002.43 19.20

Non-collection of dues 18962 6.30 1799.89 11.51

Non-utilisation of grants before

the lapsable date 12766 4.24 176.68 1.13

Advances pending adjsutemnt 6484 2.15 1863.55 11.92

Excess Utilisation of Grants /

Funds 5757 1.91 248.77 1.59

Pendency of Utilisation

Certificates 5084 1.69 13.54 0.09

Variation in Account Figures 3549 1.18 132.21 0.85

144

Diversion of Grants / Funds 1031 0.34 283.30 1.81

Surcharge Certificates recovery

pending 686 0.23 153.77 0.98

Excess Payments 565 0.19 90.18 0.58

Misappropriations 288 0.10 78.27 0.50

Wasteful Expenditure 267 0.09 51.87 0.33

Instances of cases of

unaccounted for cash / stores 100 0.03 28.55 0.18

Mis-utilisation of Grants / Funds 91 0.03 33.29 0.21

D.D/Cheques received but not

realized with in time 0 0.00 0.00 0.00

Non-utilisation of Earmarked

Funds 0 0.00 0.00 0.00

Total: 301059 100.00 15639.27 100.00

145

AUDIT – PARAS

Gist of some of the selected audit objections raised during the year 2008-09 under


1. VARIATION IN ACCOUNT FIGURES It was observed in audit that there are certain variations between the Account

Figures of treasury and cashbook like opening Balance in the cash book of the current

year not tallying with the Closing Balance of the cash book of previous year. Balance

of the Treasury Pass Book as per cash book not tallying with the actual Closing

Balance in the Treasury Pass Book as on 31st March. Non crediting of Receipts in to

the Treasury Pass Book by the Treasury Authorities. Receipts credited in the

cashbook by remittance through Chalans are not credited in the Treasury pass book by

the Treasury authorities. Debiting the cheques issued by one D.D.O. to another

D.D.O. by Treasury authorities. With out explaining the differences addition or

subtraction is being done in the Reconciliation by the DDO to arrive at the balance

actually available in the S. T. Pass book. Wrong Totaling of Credits and debits either

by D.D.O. or by Treasury. Revision in the Plus or Minus Memo in the S. T. pass book

during the subsequent financial year by the Treasury authorities with retrospective

effect. Consolidated Closing Balance of all cashbooks not tallying with consolidated

closing balance of annual account of the institutions etc.

A Consolidated STATEMENT NO.4 (1) of Variation in account figures is appended

to the Report from which it could be seen that Non-reconciliation of Rs. 132.21 was

pointed out in 3549 audit paras.

This category occupies 9th

place in No of objections raised during the year. The

percentage of amount involved under this category is 1.18%. Some of the instance

cases are shown below for example.

A few of such cases are detailed below.

S.

No.

Name of the GP

and District

Nature of variation Differe

nce Rs.

Para

No

1. Bandapalli, East

Godavari.

Closing balances

As per cash book Rs.60,416

As per passbook Rs.43,014

17,402 13

2. Bhurgampahad,

Khammam

Closing balances

As per cash book Rs.1,01,114

As per passbook Rs.1,03,807

2,693 1

3. Peeramchervu,

Ranga Reddy

Maintained (–) balance due to non-

reconciliation of accounts at the close

of the year.

4,715 1

4. Kamalapuram,

Kadapa

Cash book

CB on 31-3-08 Rs.1,72,416

OB on 1-4-08 Rs.1,04,355

Pass book

CB on 31-3-08 Rs.1,17,064

OB on 1-4-08 Rs. 77,092

68,061

79,972

3

146


The state Government releases grant-in-aid to PRIs to meet expenditure on

developmental works and contingency items like T.A., Stationery, honorarium to

elected representatives etc. It was noticed during the audit that the executive

authorities of PRIs were incurring expenditure in excess of the grant received from

the Government either in anticipation of the release of further grant or withdrawing

the excess amount from the General Funds of the institution.

During the course of audit of Karivetinagaram GP of Chittoor District for the

year 2008-09 it was noticed that a sum of Rs.8617-00 was received towards

Contingent expenditure during the year under report. As against the said grant, a sum

of Rs.61674-00 was drawn and spent towards contingencies. Thus an amount of Rs.

53057-00 was drawn in excess more than the receipt of the grant as noted here under.

Contingencies - 35,841-00

Postage - 1,500-00

Stationery - 3,467-00

Telephone - 5,062-00

Current Charges - 15,804-00

Total Rs: 61,674 -00

This category occupies 8th

position in No of objections and 1.91% in amount

involved. Rupees 248.77 lakhs has been spent in excess in all G.Ps, in 5757 instances

is appended in Statement No.4(1).


The Gram Panchayats are provided with funds by the State/Central Governments

either by way of grants or a prescribed share in the Cess, Taxes or Fees collected by

the State Government.. GPs, are vested with the power of levying certain taxes and

fees like House Tax, Tax on agricultural land for a specific purpose, Fees for lease of

porambokes or community lands under their control etc. Such taxes/fees constitute

one of the main source of income to them apart from grants-in-aid provided by the

Central/State Governments.

All the monies received by the local bodies form part of their general funds and they

can be utilized for the purposes prescribed under the relevant Act/Rules. However,

specific grants received should be utilized for the purpose for which the grant is

released.

Incurring of expenditure for purposes other than the prescribed ones without specific

sanction of the government is not permissible. In case of specific grants, the grants

should be utilized only for the specific purpose for which the grant is released and no

diversion is permissible without the permission of such grant releasing authority. But

it was noticed in audit that notwithstanding such instructions, diversion of specific

grants and earmarked funds is taking place. It was also observed in audit that

expenditure was incurred under certain grant heads even in the absence of receipt of

147

any grant during the year by diverting other grants. However, such cases were pointed

out under the caption ‘Diversion of Grants”.

Such few cases are shown in the table.

S.No. Name of the Gram

panchayat&District

Details of the Diversion Amount

involved

Rs.

Para

No

1. Kirikera, Anantapur General Funds to TFC works 68,386 3

2. Pentavelli,

Mahaboobnagar

EFC funds to SJRY works 25,000 17

3. Mudivarthi, Nellore SFC funds to ISL

beneficiaries

7,375 35

4 Surareddypalem,

Ongole

SFC fund diverted to TFC

funds

27,916 33

5 Bandarupalli, Nellore TFC funds diverted to SGRY

works

30,000 15

A Consolidated Statement No. 4(1) of Diversion of Funds and Grants /Funds is


lakhs was pointed out in 1031 audit paras.

4. NON-UTILISATION OF GRANTS BEFORE

LAPSABLE DATE

Government release special grants to the PRIs for implementing

specific schemes. These grants are to be utilized for the purposes for which

they are meant for following the guidelines issued / norms prescribed and such

utilization should be within the date prescribed, otherwise, the grants will

lapse to government, unless the lapsable date of any particular grant is

extended by government or grant releasing authority.

Government issued orders in G.O. Ms. No 666 (Accts-I) Department

dated 13-6-1978 extending the period of Utilization of non-salary grants,

particularly Panchayat Raj Grants, up to a maximum period of 18 months

instead of end of the financial year to allow reasonable time to utilize the grant

released. According to the above orders, grants released in the first year of a

financial year can be utilized on or before 30th

September. The local bodies

did not utilize the grants released within the lapsable date and thereby huge

amounts were left unutilized. The grant sanctioning authorities were also not

approached for extending the utilization period. Thus the schemes for which

the grants released were not implemented effectively and totally. The unspent

balances were also not refunded to the grant releasing authorities.

As per the instructions issued in D.O.No.V-24011/34/2001 /NFFWP/

NREGA/ C2/Dt.2-8-07 of the Minister of Rural Development, Government of

India, the unspent balances are to be remitted to the State funds before the

lapsable time. During the course of audit it was noticed that in many of the

148

Gram Panchayats the unspent balances were kept aside neither utilizing them

in time nor remitting the same to the concerned funds.

For example in Tekkali Gram Panchayat of Srikakulam District a sum

of Rs. 5,43,739/- under SGRY Scheme was kept unspent without transferring

to NREGS funds. The same observation was made in JRY Funds of

Ramalingapuram GP of Prakasam District during the year 2008-09.

The category occupies 18th

place in Number of objections and 0.03% in

amount involved.

A Consolidated Statement No.4(1)of Non-utilization of Funds before

Lapsable Date is appended to the Report from which it could be seen that an

amount of Rs. 176.68 lakhs was pointed out in 12766 audit paras.

5. MIS-UTILIZATION OF GRANTS/FUNDS

Grants meant for specific purposes or earmarked funds shall not be

utilized for any other purpose. Any contingent expenses connected with

utilization of grant, shall be met from the provision of General Fund to the

extent permitted. In stead, the authorities have used specific grants and

earmarked funds for contingent expenditure. This is misapplication of funds

and is not a prudent accounting practice.

During the course of audit, several instances have come to the

notice of audit that some Panchayat Raj bodies incurred expenditure in excess

of the Grant-in-Aid received and over and above the budgetary provision. The

fact of incurring such excess expenditure further implies that such expenditure

was met from the unspent balances of some other grants. Necessary steps are

called for to curb this sort of financial indiscipline at the earliest so as to

ensure proper utilization of these grants for which they have been released for.

The excess expenditure incurred, wherever possible, should be got reimbursed

from the grant sanctioning authorities duly explaining the circumstances under

which excess expenditure over and above the grant sanctioned became

inevitable. Early action may be taken to make good the mis-utilized funds

from the person or persons responsible by initiating appropriate action.

As instructed in G.O.Rt.No.279 Fin. Dept., dated 30-01-2006 &

G.O.Ms.No.33 PR&RD, dated 3-2-2006, the 12th

Finance Funds has to be

utilized only for water Supply and Sanitation works only. Violating the above

instructions in Nagaram Gram Panchayat of Khamma District a sum of

Rs.21,000/- was spent towards constructions of culvert. Due to which the very

purpose of the funds released was defeated.

A Consolidated Statement No. 4 (1) of Mis-utilisation of Grants/

Funds is appended to the Report from which it could be seen that an amount

of Rs. 33.29 lakhs was pointed out in 91 audit paras.

149


Not Relevant


On verification of Revenue Collections in the Gram Panchayats it was

observed that huge amounts were left pending realization for longer periods and

allowed to become barred by limitation of time in certain cases. No appropriate action

seems to have been initiated by the Executive Authorities for realization of taxes and

fee etc. due before they became barred by limitation of time in spite of various

statutory provisions existing for their recovery such as through distraint, prosecution

or filing of suits. Dependence on Government grants gets lowered if timely and

appropriate action is taken by the executive authorities for collection of these

outstanding dues which ultimately increases their self sustainability. Infact some of

these dues cannot be recovered legally now and constitute a permanent loss to the

institutions which needs to be curbed.

case study of the amounts outstanding / time barred dues and dues, which are likely

to become time barred during the year 2008-09 in Gram Panchayats is given below.

Such few examples are shown in the given table

Sl.

No

Name of the Gram

Panchayat and

District

Nature of dues Amount

inRs.

Para

No.

1 Hiramandalam.

Srikakulam

House-tax not collected from the

Govt. Buildings

73960 2

2 Kilagada,

Visakhapatnam

Non-collection of House-tax 9297 4

3 Tekkali, Srikakulam Non-collection of House-tax for the

years from 05-06 to 07-08

119930 4

4. Abbedoddi,

Anantapur

Non- collection of House tax for the

year 2005-06

4469 1

5 Pileru, Chittoor Non- collection of House tax for the

year 2005-06

13188 2

6 Pullampeta, Kadapa Non- collection of House tax for the

year 2006-07&2007-08

120480 14

7 Dondapadu,Krishna Non- collection of House tax for the

year 2005-

122158 2

8 Nandigama, Krishna Non- collection of House tax and

Tap-Fee for the year 2005-06

657819 1

Total 1121301

If the Executive Authorities of Gram Panchayat has taken appropriate legal

action for collection of the above dues by following the rules framed in the act, the

loss would not have arise.

150

A Consolidated Statement No. 4(1) showing audit objections on Non-

collection of dues is appended to the Report from which it could be seen that an

amount of Rs. 1799.89 lakhs was pointed out in 18962 audit paras.

7.1 Non Levy of Advertisement Tax in Gram Panchayat Areas.

Sec.63 of AP PR Act,1994 envisages that every GP shall levy Advertisement

Tax on the exhibits in the area of GP after taking the required sanction from the ZP

concerned. Thus Advertisement Tax has been treated as a mandatory tax by the Act.

But the said tax is not levied and collected in any of the Gram Panchayat right from

1994 till date. No correspondence was made by the Gram Panchayats with ZP

concerned to levy Advertisement Tax in the State. This revenue source has potential

to yield Rs. 35.00 Crores a year. The HOD i.e CPR & RD may take steps to tap this

revenue source.

8. ADVNACES PENDING ADJUSTMENT




the A.P. Financial Code. Non-settlement of advances leads of misuse of advances to

avoid refund of unspent amounts. Several objections are raised on such outstanding

advances in the relevant ARs pointing out failure of the executive authorities to take

necessary action to get these advances adjusted.


outstanding for a long time due to the inaction on the part of the drawing officers.

Few such examples are given below.

In Kumbidisingi GP., Visakhapatnam District a sum of Rs.1,04,000/- was

paid towards execution of works under SGRY Scheme. In Vanugupalli GP of

Visakhapatnam District a sum of Rs.1,02,000/- was drawn towards execution of

works under TFC funds, the same were not adjusted till the close of audit. In Panduru

GP of Srikakulam District, it was observed that a sum of Rs.12,156/- is pending

adjustment towards personal advance since long back. The DDOs., are responsible to

watch the recovery of the same within the time prescribed.

A Consolidated Statement No.4(2) showing audit objections on Advances

Pending is appended to the Report from which it could be seen that an amount of Rs.


9.VIOLATION OF RULES

It was noticed in audit that in some cases the Rules / Government instructions

for incurring the expenditure from the funds of the Panchayat Raj bodies were

violated either due to negligence or ignorance. In certain cases, the funds of the Gram

panchayats were utilized for purposes other than the permitted ones under the Act /

Rules. It was also noticed that in a few cases.Government instructions were

151

misunderstood or misinterpreted. Such irregular expenditure incurred was objected in

the relevant ARs

A Consolidated Statement No. 4(2) showing audit objections on Violation of Rules

is appended to the Report from which it could be seen that an amount of Rs. 3190.70


The defects relating to violation of Rules were pointed in the relevant ARs. A few

such cases are shown below.

a).The Government have issued instructions to all local bodies to submit the

Annual Accounts for the year 2008-09 in New proforma prescribed and

communicated vide G.O.Ms.No.172 dated, 16-5-05. But, during the course of annual

audit of Gram panchayats for the year 2008-09 it was noticed that action was not

taken to prepare and furnish the annual account as stated in the above Government

Orders.

b). As prescribed in Govt. Memo No. 40183/Pts.4/2002-03 PR&RD

Department, dated 31-7-03, the amount spent on purchase of electrical goods should

not exceed 15% of total income of the Gram Panchayat in that particular year. But

during the course of audit of Gram Panchayats for the year 2008-09 it was noticed

that in the following instances the amount spent on Electrical goods during the year

has exceed the limit prescribed in the rules. Hence, the amount spent more than the

ceiling is held under objection.

Sl.

No.

Name of the

Gram

Panchayat

and District

Amount spent

on purchase of

Electrical

goods.

Rs.

Amount

admissible

as per

rules

Rs.

Excess

amount

spent

Rs.

Para

No.

1. Vanjari,

Visakhapatnam

44500 5915 38585 11

2 Chennampalli,

Anatapur

31165 13166 17999 7

3 Govindapalli,

Anantapur

54036 9088 44948 7

4 Pullampeta,

kadapa

109748 30000 79748 8

c).In Dundigal Gram Panchayat of Ranga Reddy District during the year

under report, an amount of Rs. 9,57,731-00 was drawn and paid towards

wages of contingent staff engaged for purpose of water supply, street lighting,

sanitation etc., as shown below. However, the continuation orders of the Dist

Collector under section 36(1) of APPR Act 1994 was not obtained and

produced to audit. In the absence of the same, the expenditure thus incurred

cannot be admitted in audit and held under objection.

152

Sl.no.

Category No. of employees

1. Watermen 8

2. Electricians 2

3. Plumber 1

4. Kamatis 12

5. Sweepers 15

6 Bill collectors 2

Total 40

d). In Narepalli Gram Panchayat of Ranga Reddy District it was noticed that, a

sum of Rs.47,316/- was drawn and paid towards motor rewinding charges for the

period from 4/2008 to 12/2008. But, the expenditure was not certified by the AE RWS

as per rules. Due to which the correctness of the requirement could not be certified. It

is further noticed that the removed copper wire cost was also not deducted from the

payment.

e). Expenditure incurred on advertisement charges – Irregular- Needs recovery.

As per G.O.Ms..No.60497/Progs IV/A1/95, PR&RD, Department dated 14-8-

96, government has imposed ban on the expenditure on advertisement charges. But,

the competent authority has incurred huge amounts for advertisement on

developmental activities of the Gram panchayat during the year 2008-09. Some of

such cases are narrated in the given table as an example.

S.No. Nme of the GP District Amount spent on

advertisement charges

Para

No.

1. Palakonda, Srikakulam 46866 80

2. Parimpudi, West Godavari 30532 10

3 Samandepalli, Anantapur 24018 11

4 Pakala, Chittoor 12000 6

5 Kanigiri, Ongole 52044 33

6 Inturu, Guntur 16632 10

7 Kosigi, Mhaboobnagar 99644 38

8 Kompalli, Ranga Reddy 141094 15

Total 422830

153

10. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES

FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS

It was noticed during audit that various deductions / recoveries effected from the work

bills / pay bills were either not remitted to Government or a part of them only were

remitted in spite of statutory obligation to remit the same to Government account with

in a prescribed time under the relevant statutory provisions which also include penalty

as well as prosecution for non adherence.



Work Bills

1. Seigniorage Charges

Others

1. Library cess

2. User charges

A Consolidated Statement No. 4(2) showing audit objections on Non –

remittance of Deductions/Recoveries from vouchers /Pay Bills/Contingent Bills is



a). As per G.O.MS.No.331, Industries and Commerce (M.I) Department,

Dated 21-06-2000 Seigniorage charges or dead rent which ever is higher shall be

recovered from the work bills on all Minor Minerals dispatched or consumed from the

land at the rates specified in Schedule-I and Schedule-II annexed to the said G.O as

the case may be and to be credited to the consolidated fund of State Government

through the concerned Assistant Director of Mines & Geology of the District.

However, it was observed that though the amounts are recovered from the work bills

towards Seigniorage Charges, but not remitted to head of account concerned.

For example a sum of Rs. 1,22,337/- in Isnapur GP of Medak District,

Rs.2,26,089/- in Nandigama GP of Krishna District, Rs.13,962/- in Dasari GP of

Prakasam District and Rs. 9,992/- in LB Patnam GP of Visakhapatnam District was

recovered towards seigniorage charges and not remitted till the close of audit.

b). Under Section 20 of the A.P Libraries Act 1960 levy of Library Cess by the GPs,

Municipalities is obligatory and to be collected as part of House Tax / Property Tax

at the rate of 8 paise per every rupee. This should be collected along with the House

Tax and remitted to the Treasury to the credit of the Z.G.S at the end of every month.

During the year under audit, it was observed that though amounts towards Library

Cess were collected along with House Tax / Property Tax the same were not remitted

to Z.G.S funds till the close of audit. Such inaction was pointed out in the relevant

ARs.

In the following G.Ps., the library cess collected but not remitted to the

ZGS.

154

S.No. Name of the Gram

panchayat and District Amount

Collected

Amount

Remitted

Balance

to be

Remitted

Para

No.

1 Vattinagulapally, Ranga

Reddy

14762 Nil 14762 4(a)

2 Dundigal, Ranga reddy 96033 Nil 96033 13

3 T.Sundupalli, Kadapa 32159 Nil 32159 14

4 Gudipadu, Kadapa 1466 Nil 1466 9

5 Dondapadu, Krishna 12494 Nil 12494 5

156914

c). In GOMs.No. 97 PR &RD, Dept, dated: 14-3-2002, Government have issued

rules relating to Levy of special tax / user charges according to which GP may levy

user charges annually for providing street lighting and drinking water supply. The

charges shall be worked out in the manner that cost of the operation and maintenance

of the above said amenities be distributed among all the house holds which are

utilizing the services. Further while issuing guidelines on utilization of the funds

under 12th

finance commission in the G.O.Ms.No. 33 PR & RD[ PTS.III] dated:

3.02.2006 laid condition that the PR IS should set a Mechanism for recover of at

lease 50% of the recurring costs on O & M of water supply in the term of user

charges.

In Vedurthy GP of Medak District, it was noticed that the GP has incurred the

expenditure for providing the amenities. But user charges in aforesaid manner have

not been levied and collected resulting a short fall of income to an extent of Rs.

67,321/-

Recurring expenditure of water supply maintenance = Rs. 1,10,892/-

Deduct collection made in the form of water charges = Rs. 43,571/-

Short fall = Rs. 67,321/-


The Panchayath Raj Bodies provide certain basic civic infrastructure and

services like Road, Drain, Street lights water Supply Conservancy and solid waste


for economic development and social justice. To fulfill all the desires and needs the

total revenue base needs to be enhanced every year. With the rise in demand for

services, the functionaries need to have effective financial management skills and



accounted for as per the provisions contained in AP Account code, which comprises



ready and should have to be produced to Audit for verification. Then only the

transparency in incurring of public money and their utility to the General Public can

be reasonably judged.

155

Such an important function on the part of the Drawing and disbursing officers of all

the Local Bodies and Urban Bodies in the maintenance and production of records to

audit are not properly being maintained. Thereby the main access to clear the doubt of

transparency in public expenditure have not been availed. In spite of all these

guidelines and instructions the DDOs of all local and urban bodies have failed to

maintain the records and to produce the same to Audit when ever the local teams

visited their institutions. Under the category of non – production of records to Audit,

the major part is in works and the related records such as M.book, estimate file,

tenders etc. The others are non production of vouchers along with the related files and

registers. The paras on non production of records have been drawn from the

individual A.Rs of the concerned institution and their details are furnished here

under. Further it is surprise to note that the heads of the institutions could not explain

why the records could not be maintained in the office and can be produced when ever

they are being demanded by the audit parties and other agencies during their local

visits.



occur in the institution. Though the provisions under Rule, 6 of A.P. State Audit

Rules, 2000 are clear that the onus for production of records to audit lies with the

executive authority of the institution, in the following cases the said rule is not

complied with as they have failed to furnish various records to audit as a result of

such inaccessibility to the records several audit objections were pointed out in various

A.Rs of the concerned institutions. Records like M. Books, connected files, vouchers

in which crores of rupees transacted in many institutions form major chunk of audit

objections under the category of non production of records. Transactions relating to

purchase of various contingent articles, goods etc., were not accounted for in stock

registers and produced to audit. Remittances made to different departments etc for

which neither the acknowledgements nor any evidence produced in audit also form

part under this category. Though several half margin letters issued for production of

the required record, the executive authorities did not comply with which resulted in

inaccessibility to the records and raising of paras to that extent.

This nature of objections stood in 2nd

position in No of objections and occupies

15.59% in amount involved.

A Consolidated Statement No.4(2) of showing audit objections on Non-

production of Records is appended to the Report from which it could be seen that an

amount of Rs. 3501.50 was pointed out in 40118 audit paras

A few of the paras raised in ARs for the year 2008-09 are categorized

accordingly and tabulated as shown below.

11.1. EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS ETC.,- NOT PRODUCED- EXPENDITURE HELD

UNDER OBJECION.

Various works were executed by the Gram Panchayat under various schemes

during the year 2008-09 but the connected estimates, measurement books, agreement

files etc., were not produced to audit for verification. As the correctness of the same

could not be verified due to non-production of the connected records the amount is

held under objection. The Executive Authorities concerned would need to take

immediate action to produce connected records to audit for verification immediately.

156

,

Sl.

No

Name of the GPs

& Dist.,

Particulars of records not

produced

Amount

involved

Rs.

Para

No.

1 Kalvakurthy,

Mahaboobnagar

Estimates, Agreements, M.Books 396571 59

2 Govindampalli,

Anantapur


3 Pullapeta, Kadapa Estimates, Agreements, M.Books 179620 13

4 Hiramandalam,

Srikakulam


5 Jammikunta,

Karimnagar


6 Govindapalli,

Anantapur

Estimates, Agreements, M.Books 186800 11&12

7 Dudigal, Ranga

Reddy


8 Nandigama,

Krishna

Non-production of Vouchers and

Stock-registers

290284 2 of

TFC

Funds.

11.2 Non-maintenance and non-production of records for audit for verification. As mentioned in section 268 of APPR ACT 1994, and as per G.O.Ms.No.

119 PR & RD dept., dt: 18-5-2007, the following registers have to be maintained and

produced for audit for verification. During the course of annual audit on the accounts

of the Gram Panchayats for the year 2008-09 it was noticed that the following

Registers were not maintained and produced for audit for verification in Bollaram GP

of Ranga Reddy District.

1. Cash Book

2. Register of Money value forms. 3. House tax demand register. 4. Water tap connections demand register. 5. Auction Register. 6. Register of dues. 7. Receipt books of Bill collections and outstanding biil register. 8. Buillding applications register. 9. Layout fee register. 10. Meeting minutes register. 11. Licence fee demand Register. 12. Kolagharam and fish auction register. 13. Regiaster of Library Cess remittance Register. 14. Register of Advnaces and Deposits.

157

15. Register of Suits. 16. Register of Grants

17. Stock Register 19. Miscllaneous Demand Register. 20. T&P Register 21. Register of Income sources. 22. Porumbok Register.

23. Register of usfructs.


Cases of misappropriation of money noticed in audit were

pointed out in the A.Rs concerned.

A consolidated statement of audit objections on misappropriations

noticed in audit is annexed vide statement No. 4(2) . A total number of 288

cases involving an amount of Rs. 78.27 lakhs were pointed out in the relevant

ARs.

To illustrate the various types of modus operandi, a few of the cases

pointed out are reproduced below.

12.1 GPs - COLLECTION OF TAXES - AMOUNT NOT FULLY

REMITTED -MISAPPROPRIATED – Rs. 1,28,748/-

On verification of Cash-Book of Ravikamatam GP, Visakhapatnam District

for the year 2008-09, it was noticed that a sum of Rs.1,28,748/- was kept as

cash on hand without remitting the same to the account of the Gram Panchayat

till the close of audit as detailed below which can be treated as

Misappropriated.

OB in Treasury pass-book as on 1-4-08 Rs.1,14,414-95

Amount collected from 1-4-08 to 31-3-09 Rs.2,19,065-50

Total balance has to be shown in Treasury pass-book Rs.3,33,480-45

Actual balance as per Treasury pass book as on 1-4-09 Rs.1,70,352-00

Amount remitted as on 21-4-09 Rs. 34,380-00

Amount to be remitted in to the Treasury Rs.1,28,748-45

12.2 . In Dondapadu Gram Panchayat of Gudivada mandal Krishna

District, it was noticed that a sum of Rs.14,000/- was drawn through Cheque

No. 936108 . but, the same was not recorded in the cashbook and the no

evident record of incurring any expenditure was produced for audit for

verification. It is construed that the above amount was misappropriated by the

cheque drawl authority.

158

12.3 . In Turimellam GP of Prakasam District it was noticed that a sum of

Rs.38.011/- was misappropriated as detailed below from the house tax collected.

House Tax collected during the year Rs.2,63,326.72

Amount remitted to the concerned account Rs.2,25,315.72

Short remitted Rs. 38,011-00

12.4. In Kanakamamidi GP of Ranga Reddy District, it was observed that a sum of

Rs.18,260/- was collected towards taxes and fees etc. But , as verified from the

concerned Treasury pass book it was noticed that the same was not remitted.

12.5 In Chitkulu Gram Panchayat of Medak District it was noticed that a sum of

Rs.24,182/- was misappropriated showing wrong challan No. in which a sum of

Rs.24,182/- was remitted by then PS during the month of 6/2008. The details of the

collections remittance and misappropriation made as detailed below.

House tax collected Rs.1,41.034/

House tax remitted Rs. 91,305/-

Balance to be remitted Rs. 49,729/-

Cash on hand Rs. 25,547/-

Shown as remittance in challan No.9930/2-1-09 Rs. 24,182/-

( the said amount was remitted by the then Panchayat Secretary during the month of

6/2008 in the same challan No.)

12.6 BALANCE AT THE END OF 10.12.08 NOT BROUGHT FORWARD AND NOT

ADOPTED AS OPENING BALANCE FOR NEXT MONTH - LOSS -NEEDS

RECOVERY -Rs. 20,196/-

Prior to assumption of the charge of the post of Panchayat Secretary, Kallakal

on 24.12.08 by Sri M. Mohan Reddy, the post held by Sri B.Vijayudu now working as

PS GP Makthal, Makthal Mandal, Mahabubnagar District. The Cash balance of Rs.

20,196/- was available in the cash book prior to 24.12.08. On the plea that Sri B.

Vijayudu did not hand over the cash, the cash balance was not adopted as opening

balance by Sri M. Mohan Reddy for further period. As such, the amount of Rs.

20196/- remains unremitted to GP fund and it is not shown in the Cash book which

tantamount to misappropriation and loss to the institution.

Para 9 of kallakal Gram panchayat of Medak District.

12.7 During the course of audit of Bollaram G.P., Medak District for the year 2008-

09 it was noticed that a sum of Rs.10,63,270/- was remitted to the treasury through

challans by the industries located in the Panchayat area towards property tax .

Although the said amount was paid directly by the industries the Executive Officer

Sri G. Muralidhar has recorded in the cash book and irsalnama register as the said

amount was collected from the owners of the village. And the acknowledgement

towards the said payment has not given to the industries owners. Thus a sum of

Rs.10,63,270/- was misappropriated.

(Para No. 10 of Bollaram GP of Medak District)

159

12.8 In Kandulapadu Gram Panchayat of B.Konduru Mandal, Krishna District it was

noticed that a sum of Rs.68,019/- was misappropriated as detailed below.

As verified from the balances bills to be collected, the bills for Rs.18,799/- towards

house tax and for Rs.49,040/- towards water user charges to audit. Therefore it is

construed that the said amount of Rs.68,109/- was collected but not remitted , hence

misappropriated.

12.9 COLLECTION OF TAXES NOT REMITTED TO THE GP FUNDS-

AMOUNT HELD UNDER OBJECTION RS.5,27,282-00

On verification of receipt books, Irsalnama registers and cash book, it is

noticed that an amount of Rs.5,27,282-00 as detailed below was collected towards

various taxes by Sri.Khaza Mahamood Ali, Ex- Executive Officer, GP

Ibrahimpatanam. In the absence of remittance particulars the same could not be

verified by audit as to whether the amount collected was remitted to GP funds. Hence

an amount of Rs.5,27,282-00 is held under objection and needs investigation to

prevent loss to GP funds.

S.

No

.

Name of the

employee

Total amt.

collected

Book

No.

Rc. No. Total amt.

remitted

1

Sri.Khaza Mohamood

Ali, Ex-Executive

Officer, GP

Ibrahimpatnam

51,945-00

13

1201 to 1300 NIL

2 -do- 1,77,646-00 14 1301 to 1400 NIL

3 -do- 91,646-00 16 1501 to 1600 NIL

4 -do- 29,555-00 18 1701 to 1738 NIL

5 -do- 37,930-00 18 1739 to 1755 NIL

6 -do- 1,38,561-00 10 901 to 1000 NIL

Total 5,27,282-00

(Para No.10 of Ibrahimpatnam GP of Ranga Reddy District for the year 2008-09)

12.10 In Kallata GP of Srikakulam District a sum of Rs.43,000/- was misappropriated

during the

year 2008-09 as detailed below.

S.No. Amount drawn as

per counter foil Rs.

Amount drawn as

per Treasury Pass

Book

Rs.

Excess drawl

Rs.

Para No of

the AR

1. 3000 30000 27000 Para 4 of the

TFC Funds

2. 5000 21000 16000 Para 11 of

the General

Funds.

Total 8000 51000 43000

160

12.11 Payment of Bonus of one month salary to the staff of the GP – Irregular –

Needs recovery Rs.31,240/-

During the verification of the pay bills of the staff of the Vittanagulapally Gram

Panchayat, Ranga Reddy District for the year 2008-09 it was noticed that a sum of

Rs.31,240/- was drawn and paid to the staff as bonus through Voucher No.121/18-8-

2008. Bonus is not an admissible item of expenditure. Thus, the payment was treated

as excess payment and the same would need to be recovered immediately.

(Para No. 8(a) of the AR of Vittanagulapally GP., Ranga Reddy District for 08-09.

13. EXCESS PAYMENTS

It was observed in audit that in several cases excess payments were made due

to either.

(e) Incorrect calculations or

(f) Excess totaling in Bills or

(g) Admission of inadmissible claims or

(h) Lack of knowledge of Government instructions.

A Consolidated Statement No. 4 (2) of showing audit objections on Non-

production of Records is appended to the Report from which it could be seen that an

amount of Rs.90.18 lakhs was pointed out in 565 audit paras

Afew such instance cases are given below for example.

13.1. During the course of audit of Gram panchayats in Visakhapatnam district it

was noticed that the following excess payments were made in execution of various

works.

S.

No.

Name of the

GP

Details of the

work executed

Description of the payment made Excess

paid (Rs.)

1. Sanivaram

para 7 of the

AR

Formation of

road from PR

Road to Kotla

guruvu

Estimation value Rs.1,60,000

Value of work done Rs.1,55,606

Less SC Rs. 9,911

Net value of work Rs 1,45,695

Advance on 24-3-08 Rs.1,75,000

Excess paid Rs. 29,305

29305

2 Thumangula ,

para 8 0f the

AR

Constructionof

open well at

Borangangula

Estimation value Rs.1,30,000

Value of work done Rs.1,02,030

Less SC Rs. 3,120

Net value of work Rs 98,910

Total paid as per CB Rs.1,15,500


16590

3 Construction of

Rachabanda at

Gasaigonda

Estimation value Rs. 25,000

Value of work done Rs. 22,013

Less SC Rs. 541

Net value of work Rs 21,472

Total paid as per CB Rs. 29,464


7992

Total excess paid 53887

161

13.2. During the course of audit of Isnapur Gram panchayat of Medak District it was

noticed that a sum of Rs. 9,558/- was excess paid in execution of work of Extension

of pipe line from Hnaumandas House to Ualla Balaiah House. Amount paid to Sri.

Purushottam Reddy , Contractor vide cheque Nop.672165 dated 15-09-2008 through

Voucher No.81/15-09-2008.

M.Book No. 2192/AM/PR/07.

Total value of work done Rs.93,917/-

Deduct VAT&IT Rs. 4,779/-

Net to be paid Rs.89,138/-

Actually paid Rs.98,696/-

Excess paid Rs. 9,558/-

The excess payment was done due to adding the VAT&IT instead of deducting

the amount vide M-Book No. 130/AH/05-06

13.3 During the course of audit of Dundigal GP of Ranga Reddy District it was

noticed that an excess amount of Rs.19,696/- was drawn and paid to P. Ramaraju

Contractor, in Construction of School Building due to allowing of excess rate than

the approved as follows.

S.No. Nature of

work

done

Approved

Rate

Rs.

Allowed

Rate

Rs

Excess

allowed

Rs.

Quantity of

work

Total

excess paid

Rs.

1. Supply and

filling of

sand

306.50 1127.50 821.00 23.99Cum 23.99x821=

19,696/-

The above amount was paid through Cheque No.820269&820275, dated 12-8-2008.


The canon of financial propriety envisage in Andhra Pradesh financial code

are sacrosanct for all Government Authorities entrusted with authorizing or incurring

of expenditure from public funds. They are expected under Articles 3 to exercise the

same diligence and care in expending public money under their control as persons of

ordinary prudence would exercise in respect of their own money. Government have

issued instructions through various orders and also incorporated in the statutes of local

bodies the various items on which public money can be expended and the principles

to be adhered to while expending on such items. Yet, it was noticed in audit that the

funds of Panchayat Raj bodies were several times incurred without adhering to the

laid down principle leading to wasteful expenditure of public money. All the cases of

such wasteful expenditure observed in the audit of the Gram Panchayats for the year

2008-09 were expenditures that were avoidable, extraordinary and lacked proper

planning.

Consolidated Statement of Wasteful Expenditure incurred is annexed in

Statement No.4(2) to the Report showing 267paras involving an amount of

Rs.51.87lakhs. Such few cases are mentioned below

162

14.2 PURCHASE OF MATERIAL EXCESS THAN THE REQUIREMENT –

KEPT UN-USED WASTEFUL EXPENDITURE – NEEDS RECOVERY.

During the course of Annual Audit of the accounts of Gram Panchayats for the

year 2008-09, it was noticed that in some of the Gram panchayats material was

purchased more than the requirement in some of the Gram Panchayats material

purchased and kept in stores without utilization. The purchases are made without

requirement hence the expenditure incurred is wasteful

A few such cases are shown in the table.

S.No. Name of the GP

and District

Nature of

waste

No. of

pipes

purchased

No of

pipes

required

No.

of

pipes

kept

un-

used

Amount

involved

Para

No.

1. Vattinagulapally,

Ranga Reddy

Purchase of

pipes for

Manjeera

pipeline

works more

than the

requirement

200 163 37 1,34,798 8(b)

2. Kosigi,

Mahaboobnagar

Purchase of

submersible

pump sets

and spares

Material purchased and kept

un-used in the store.

1,38,346 42

3 Kodangal

Mahaboobnagar

Purchase of

submersible

pump sets

and spares

Material purchased and kept

un-used in the store.

3,65,679 28


Several instances of Cash / Stores unaccounted for were noticed Consolidated

statement of cases of unaccounted for cash / stores statement No 9 (15) is appended to

Report. The cash on hand unless it is accounted for resulting loss to the GP

concerned. The amount would need to be made good.

Consolidated Statement of Instances of cases unaccounted for is

annexed in Statement No. 4(3) to the Report showing 100 paras involving an amount

of Rs.28.55 lakhs.


According toArt 211-A (2) of the Andhra Pradesh Financial Code Volume-I,

Read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996. It is responsibility of the

Grant receiving authority to send the utilization certificates in the proforma prescribed

163

duly certified by the District Audit Officer, State Audit Department. But heavy No.

of Utilization Certificates were not furnished to audit for certification and

transmission to the grant releasing authorities concerned.

In G.O.Ms.No. 507 Fin (TFR) Deptt., dt. 10-4-2002, the Government have


Funds from April, 2002 onwards by the local bodies / Public Sector enterprises,

Autonomous bodies and other Grant-in-Aid institution.




But the aforesaid Government orders are not being observed by Executive

Authorities which resulted in heavy pendency of utilization certificates to be

furnished to the grant releasing authorities. Such cases are reported in the Gram

Panchayats shown in the statement appended herewith.

A Consolidated Statement No.4(3) showing audit objections on Pendency

of Utilisation Certificates is appended to the Report from which it could be seen

that an amount of Rs.13.54 Lakhs was pointed out in 5084 audit paras.



thereunder, the audit of local authorities i.e., ZPs, MPs, GPs, Agricultural Market

Committees, Municipalities, Zilla Grandhalaya Samsthas and other institutions and

schemes as entrusted by the Government is being conducted and various defects

noticed during the audit also pointed out in the relevant ARs every year. In the case

of serious irregularities Special Letters are also issued to Chief Executive Authorities

concerned to make the loss good to the funds of the institutions concerned.


Audit Act, 1989 is initiated for recovery of the amounts involved in clear cases of the


payments. The amount surcharged have to be recovered treating them as Revenue

Recoverable under Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State

Audit Rules issued in G.O.Ms.No. 130, Finance & Planning (FW.Admn.II)

Department, dated 8-9-2000. But, recovery is pending in the cases mentioned in the

statement.

Immediate action would need to be taken to recover the surcharged amount

from the surcharges and fact be intimated to audit.

A statement of such 686 cases involving an amount of Rs. 153.77 lakhs is

appended as Statement No. 4(3) to this report.


164

Some of the instance cases are incorporated in the given table.

S.No. Name of the GP/District S.C.No./date Details of the

Surchargee

Amount

involved.

1 Uppalapadu

GP,Prakasam

13/1-9-08 Jakkula

Chiasubbaraidu Ex-

Sarpanch for 2002-03

31173

2 Ramayapalem, Prakasam 22/1-9-08 L.Subbu Reddy, Ex-

Sarpanch for 2002-

03

19857

3 Vempara, Prakasam 38/8-9-08 Madala

Ananthalakshmi Ex-

Sarpanch

39500

4 Laveru, Srikakulam 441/28-2-09 P.Sriramulunaidu,Ex-

Sarpanch

31215

5 Vanagavasala,

Srikakulam

432/29-11-

08

PVA Naidu,

Sarpanch

28700

6. 433/29-11-

08

R.Chinnarao Ex-

Sarpanch

38800

7 Penta, Srikakulam 184/27-10-

09

Dhanalakshmi 25087

8 183/27-10-

09

18700

9 Kapparam , Srikakulam 376/28-2-09 Y.Pedddiraju, Ex-

Sarpanch

12000

10 147/30-9-09 35400

11 148/30-9-09 3700

12 Peddapeta,Srikakulam 337/8-11-08 K.Vedavathi,

Sarpanch

55000

13 Cheedivalasa,

Srikakulam

346/31-1-09 B.Rama Devi

Sarpanch

24500

14 SSValasa, Srikakulam 229/30-12-

08

Neelaveni, Sarpanch 26106

15 230/30-12-

08

33896

16 Peddaram,Srikakulam 361/29-11-

08

S.Bhaskar Rao Ex-

Sarpanch

20800

17 362/29-11-

08

25530

18 363/29-11-

08

163850

18. OTHERS

A Consolidated Statement No. 4(3) showing audit objections on others is


lakhs was pointed out in 1,13,400 audit paras.

165

18.1. In the following cases the cash on hand was not remitted to the funds of the

Gram panchayat till the close of the financial year .

Sl.

No. Name of the GP & District

Amount kept in

hand without

remitting

1. Korisapadu, Prakasam 17680.14

2 Rajubangarupalem, Prakasam 20000.00

3 Pallepalem, Prakasam 20000.00

4 Isnapur, Medak 284754.00

18.2. THE INSPECTION NOTES OF THE DLPO/EO (PR&RD) ARE NOT

PRODUCED FOR AUDIT

As per power entrusted in Section 44 of PR ACT 1994, as per G.O.Ms.No.

70 PR & RD Dept., dt: 29-2-2000 and G.O.Ms.No 362 PR & RD Dept., dt: 3-12-

2001 the Dl.PO and the Extension Officer of (PR&RD) has not inspected the Gram

Panchayats. The administrative inspections strengthen the Gram Panchayat

Administration. The absence of conducting of inspections may result in slackness in

Gram Panchayat Administration. The mechanism of administrative inspections needs

to be strengthen

19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES

RECEIVED BUT NOT REALIZED WITHIN TIME :

-NIL-

DATE: 29.02.2012 HYDERABAD DIRECTOR

STATE AUDIT

A.P., HYDERABAD

166

167

STATEMENT No. 1

CONSOLIDATED STATEMENT SHOWING THE STATUS OF

AUDIT

NAME OF THE

INSTITUTION

DEMAND

AS ON 1-4-2009

AUDITS COMPLETED

AS ON 31-3-2010

BALANCE

AS ON 31-03-2010


GRAM

PANCHAYATS 6903 20578 361 20311 6542 267

168

STATEMENT No. 1 (1)

STATEMENT SHOWING STATUS OF AUDIT OF GRAM PANCHAYATS AS ON 31-3-2010

SL

No.

NAME OF THE

DISTRICT

DEMAND AS ON

1-4-2009

AUDITS COMPLETED

AS ON 31-3-10

BALANCE AS ON

31-03-2010


1 Adilabad 6 130 0 129 6 1

2 Ananthapur 5837 1001 0 996 5837 5

3 Chittoor 42 1147 1 1144 41 3

4 East Godavari 45 1012 2 1012 43 0

5 Guntur 0 1022 0 1022 0 0

6 Kadapa 168 804 3 797 165 7

7 Karimnagar 65 1194 1 1181 64 13

8 Khammam 305 770 0 770 305 0

9 Krishna 1 973 0 969 1 4

10 Kurnool 12 898 0 889 12 9

11 Mahaboobnagar 35 1088 5 1064 30 24

12 Medak 325 1059 325 1010 0 49

13 Nalgonda 0 1178 0 1106 0 72

14 Nellore 0 961 0 961 0 0

15 Nizamabad 0 718 0 716 0 2

16 Prakasam 1 1043 0 1040 1 3

17 Ranga Reddy 45 705 23 638 22 67

18 Srikakulam 0 1101 0 1101 0 0


20 Vizianagaram 0 928 0 926 0 2

21 Warangal 1 1014 1 1013 0 1

22 West Godavari 15 888 0 883 15 5

TOTAL: 6903 20578 361 20311 6542 267

169

STATEMENT No. 2

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM

PANCHAYATS FOR THE YEAR 2008-09

Rs. In lakhs

SL

No. NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 ADILABAD 1109.82 930.93

2 ANANTHAPUR 4360.56 3383.36

3 CHITTOOR 4348.72 3291.26

4 EAST GODAVARI 7443.78 6622.39

5 GUNTUR 5704.93 4541.98

6 KADAPA 3800.71 2945.29

7 KARIMNAGAR 6920.61 5347.42

8 KHAMMAM 4438.85 3490.39

9 KRISHNA 6670.46 5970.32

10 KURNOOL 3054.96 2370.43


12 MEDAK 3045.61 2818.23

13 NALGONDA 14959.90 3447.21

14 NELLORE 3858.90 2787.96

15 NIZAMABAD 3651.33 1915.20

16 PRAKASAM 4623.74 4202.93

17 RANGA REDDY 11696.75 14055.40

18 SRIKAKULAM 2927.04 2402.27


20 VIZIANAGARAM 5135.69 4525.48

21 WARANGAL 6122.48 5563.41

22 WEST GODAVARI 6797.66 6063.34

TOTAL: 119397.52 94878.02

B

170

STATEMENT No.2(1)

STATEMENT OF CONSOLIDATED RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR 2008-09(RECEIPT HEADS)

Rs. In Lakhs

Sl.

No.

NAME OF THE

DISTRICT

TAX

RESOURCES

NON-TAX

RESOURCES

OTHER

RECEIPTS

GOVERNMEN

T GRANTS ADVANCES DEPOSITS BRGF

SALARY

GRANTS TOTAL

1 ADILABAD 57.61 11.59 25.57 65.10 0.00 2.13 891.00 56.82 1109.82

2 ANANTHAPUR 257.87 580.99 852.49 1406.40 42.55 33.98 1086.00 100.28 4360.56

3 CHITTOOR 298.33 997.01 326.88 1691.61 7.17 37.04 960.00 30.68 4348.72

4 EAST GODAVARI 1570.27 953.92 2515.03 1898.27 17.38 117.43 0.00 371.48 7443.78

5 GUNTUR 1463.78 789.68 1481.16 1754.58 3.72 28.36 0.00 183.65 5704.93

6 KADAPA 214.80 434.56 1479.43 773.03 0.11 12.28 857.50 29.00 3800.71

7 KARIMNAGAR 790.04 882.73 1593.61 2448.03 0.72 12.31 852.50 340.67 6920.61

8 KHAMMAM 380.03 600.34 549.26 1799.46 45.09 53.14 931.50 80.03 4438.85

9 KRISHNA 1519.65 1812.02 1348.04 1657.69 1.64 58.50 0.00 272.92 6670.46

10 KURNOOL 226.26 308.27 798.69 1382.37 220.29 17.47 0.00 101.61 3054.96

11 MAHABOOBNAGAR 228.74 1908.74 328.25 1106.53 1.89 10.02 1046.50 112.31 4742.98

12 MEDAK 700.52 1137.29 30.63 385.69 0.00 0.00 738.50 52.98 3045.61

13 NALGONDA 157.89 3350.08 2880.00 7454.48 0.00 0.00 899.00 218.45 14959.90

14 NELLORE 441.16 774.84 1171.17 1301.74 25.01 47.78 0.00 97.20 3858.90

15 NIZAMABAD 542.43 1254.54 453.95 718.77 0.00 2.64 679.00 0.00 3651.33

16 PRAKASAM 808.37 722.75 661.74 2204.65 26.94 21.56 0.00 177.73 4623.74

17 RANGA REDDY 1013.85 2353.05 6662.99 848.38 0.00 0.00 812.00 6.48 11696.75

18 SRIKAKULAM 150.94 465.85 1296.68 828.49 97.38 21.35 0.00 66.35 2927.04

19 VISAKHAPATNAM 211.58 1516.27 290.78 1667.20 128.28 72.81 0.00 95.12 3982.04

20 VIZIANAGARAM 143.08 817.43 943.30 2207.30 170.01 93.82 708.50 52.25 5135.69

21 WARANGAL 1415.07 325.41 531.56 2475.92 0.00 18.35 867.50 488.67 6122.48

22 WEST GODAVARI 1335.39 1179.68 1279.29 2521.76 2.95 76.07 0.00 402.52 6797.66

TOTAL: 13927.66 23177.04 27500.50 38597.45 791.13 737.03 11329.50 3337.21 119397.52

171

STATEMENT No. 2 (2)

STATEMENT OF CONSOLIDATED EXPENDITURE OF GRAM PANCHAYATS FOR THE YEAR 2008-09(PAYMENT HEADS)

Rs. In Lakhs

Sl.

No.

NAME OF THE

DISTRICT SALARIES

OTHER

ADMINISTRATIVE

EXPENDITURE

MAINTENANCE

EXPENDITURE WORKS ADVANCES DEPOSITS BRGF OTHERS TOTAL

1 ADILABAD 64.55 56.30 54.03 54.50 0.18 0.00 701.37 0.00 930.93

2 ANANTHAPUR 171.48 203.74 1077.85 1122.94 83.81 15.44 708.10 0.00 3383.36

3 CHITTOOR 167.11 352.92 627.26 1062.98 187.46 29.17 781.62 82.74 3291.26

4 EAST GODAVARI 948.99 1357.59 2065.57 1986.62 42.81 180.79 0.00 40.02 6622.39

5 GUNTUR 518.77 1302.72 934.40 1750.87 29.99 4.13 0.00 1.10 4541.98

6 KADAPA 70.80 133.53 726.86 888.67 9.08 6.70 1109.65 0.00 2945.29

7 KARIMNAGAR 940.42 393.92 1135.28 2170.97 7.87 4.03 694.93 0.00 5347.42

8 KHAMMAM 277.72 213.68 889.13 1398.20 9.28 3.92 698.46 0.00 3490.39

9 KRISHNA 581.99 1285.90 1602.79 2444.59 10.32 44.73 0.00 0.00 5970.32

10 KURNOOL 88.10 265.90 329.55 1288.46 293.90 104.52 0.00 0.00 2370.43

11 MAHABOOBNAGAR 262.16 604.21 550.50 1650.41 1.63 4.01 1255.52 13.27 4341.71

12 MEDAK 150.42 180.99 600.92 1261.66 5.29 25.20 593.75 0.00 2818.23

13 NALGONDA 270.25 48.22 818.93 1599.41 0.00 0.00 710.40 0.00 3447.21

14 NELLORE 193.05 327.17 947.53 1287.27 3.80 29.14 0.00 0.00 2787.96

15 NIZAMABAD 127.60 226.52 387.58 630.05 0.25 0.00 543.20 0.00 1915.20

16 PRAKASAM 514.14 648.53 1036.07 1847.45 131.94 16.08 0.00 8.72 4202.93

17 RANGA REDDY 836.86 1967.96 2491.84 8021.79 4.16 36.54 696.25 0.00 14055.40

18 SRIKAKULAM 189.73 348.47 677.99 858.73 317.66 9.69 0.00 0.00 2402.27

19 VISAKHAPATNAM 1091.71 419.44 823.57 1307.82 205.34 13.23 0.00 0.00 3861.11

20 VIZIANAGARAM 187.83 574.34 509.69 2391.22 299.55 13.51 549.33 0.00 4525.48

21 WARANGAL 740.06 390.08 704.97 2667.16 0.01 0.72 658.35 402.06 5563.41

22 WEST GODAVARI 610.27 981.89 1446.81 2987.45 1.84 35.08 0.00 0.00 6063.34

TOTAL: 9004.02 12284.02 20439.11 40679.22 1646.17 576.63 9700.93 547.91 94878.02

172

STATEMENT No.3

STATEMENT OF CONSOLIDATED GRANT WISE RECEIPTS & PAYMENT OF GRAM PANCHAYATS


Sl

No.

Name Of The

District

Salary Grant JRY/SGRY XI finance State Finance BRGF Other grant Total

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 56.82 53.22 0.60 0.61 41.24 36.65 6.51 5.29 891.00 701.37 898.86 704.38 1004.03 800.15

2 Ananthapur 160.69 163.91 0.71 9.61 920.13 588.86 159.99 131.22 1086.00 708.10 1323.30 716.58 2564.82 1610.18

3 Chittoor 829.88 792.46 0.02 0.27 875.76 771.43 151.26 174.55 960.00 781.62 566.04 1168.35 3382.96 2907.06

4 East Godavari 521.91 723.98 4.06 7.54 1353.71 981.49 248.26 292.64 0.00 0.00 179.53 172.40 2307.47 2178.05

5 Guntur 42.33 29.61 0.48 1.66 73.01 49.60 15.92 24.49 0.00 0.00 0.00 0.00 131.74 105.36

6 Kadapa 28.43 0.00 0.00 0.00 491.46 431.66 121.57 138.02 857.50 1109.65 1259.54 1308.63 1901.00 1878.31

7 Karimnagar 409.36 962.48 0.29 2.28 6092.56 4849.95 1375.22 1426.79 852.50 694.93 1971.96 2177.25 9849.39 9418.75

8 Khammam 39.14 106.80 139.07 92.91 737.63 581.79 190.00 197.48 931.50 698.46 0.00 0.00 1105.84 1677.44

9 Krishna 275.52 518.67 259.01 347.34 954.36 679.65 183.84 224.39 0.00 0.00 90.00 0.00 1762.73 1770.05

10 Kurnool 106.01 183.50 81.58 149.16 865.68 659.21 170.75 244.06 0.00 0.00 684.98 421.94 1909.00 1657.87

11 Mahaboobnagar 113.17 256.61 0.67 5.55 1089.18 908.46 102.98 175.52 1046.50 1255.52 1156.86 1387.60 2462.86 2733.74

12 Medak 52.98 150.42 8.34 30.30 46.02 60.96 150.29 170.20 738.50 593.75 768.55 774.74 1026.18 1186.62

13 Nalgonda 218.45 271.17 0.01 25.43 6396.72 874.92 976.68 184.10 899.00 710.40 1421.08 1372.63 9012.94 2728.25

14 Nellore 97.21 191.11 5.10 52.74 796.05 405.49 185.46 196.80 0.00 0.00 310.76 150.93 1394.58 997.07

15 Nizamabad 0.00 0.00 2.38 9.49 611.06 394.82 72.36 77.81 679.00 543.20 679.00 543.20 1364.81 1025.33

16 Prakasam 177.97 514.05 1.36 21.18 797.42 570.42 144.20 183.99 0.00 0.00 1290.12 982.32 2411.07 2271.96

17 Ranga Reddy 6.48 938.13 0.66 12.37 589.58 414.02 99.99 86.11 812.00 696.25 812.00 696.25 1508.71 2146.88

18 Srikakulam 66.35 189.30 32.84 54.11 653.59 497.69 224.13 256.58 0.00 0.00 220.00 75.96 1196.91 1073.64

19 Visakhapatnam 70.56 106.77 273.75 396.37 1004.08 533.22 143.25 68.15 0.00 0.00 12.94 0.00 1504.58 1104.51

20 Vizianagaram 71.01 118.09 172.11 136.95 570.10 428.64 144.00 169.30 708.50 549.33 1529.15 701.42 2486.38 1554.41

21 Warangal 50.39 108.08 0.00 0.64 810.17 660.63 229.97 168.21 867.50 658.35 867.50 658.35 1958.03 1595.91

22 West Godavari 402.52 610.27 131.50 312.07 1303.57 964.85 317.43 414.45 0.00 0.00 769.26 539.02 2924.28 2840.66

TOTAL: 3797.19 6988.63 1114.54 1668.59 27073.09 16344.42 5414.06 5010.15 11329.50 9700.93 16811.43 14551.95 55170.31 45262.20

173

STATEMENT No. 3(1)

STATEMENT OF CONSOLIDATED grant receipts OF GRAM PANCHAYATS FOR THE YEAR 2008-09

Sl

No.

Name Of The

District

Salary

Grant JRY/SGRY

X/XI

finance

State

Finance

BACK WARD

REGIONS GRANT

FUND Other grant Total

1 Adilabad 56.82 0.60 41.24 6.51 891.00 7.86 1004.03

2 Ananthapur 160.69 0.71 920.13 159.99 1086.00 237.30 2564.82

3 Chittoor 829.88 0.02 875.76 151.26 960.00 566.04 3382.96

4 East Godavari 521.91 4.06 1353.71 248.26 0.00 179.53 2307.47

5 Guntur 42.33 0.48 73.01 15.92 0.00 0.00 131.74

6 Kadapa 28.43 0.00 491.46 121.57 857.50 402.04 1901.00

7 Karimnagar 409.36 0.29 6092.56 1375.22 852.50 1119.46 9849.39

8 Khammam 39.14 139.07 737.63 190.00 0.00 0.00 1105.84

9 Krishna 275.52 259.01 954.36 183.84 0.00 90.00 1762.73

10 Kurnool 106.01 81.58 865.68 170.75 0.00 684.98 1909.00

11 Mahaboobnagar 113.17 0.67 1089.18 102.98 1046.50 110.36 2462.86

12 Medak 52.98 8.34 46.02 150.29 738.50 30.05 1026.18

13 Nalgonda 218.45 0.01 6396.72 976.68 899.00 522.08 9012.94

14 Nellore 97.21 5.10 796.05 185.46 0.00 310.76 1394.58

15 Nizamabad 0.00 2.38 611.06 72.36 679.00 0.00 1364.81

16 Prakasam 177.97 1.36 797.42 144.20 0.00 1290.12 2411.07

17 Ranga Reddy 6.48 0.66 589.58 99.99 812.00 0.00 1508.71

18 Srikakulam 66.35 32.84 653.59 224.13 0.00 220.00 1196.91

19 Visakhapatnam 70.56 273.75 1004.08 143.25 0.00 12.94 1504.58

20 Vizianagaram 71.01 172.11 570.10 144.00 708.50 820.65 2486.38

21 Warangal 50.39 0.00 810.17 229.97 867.50 0.00 1958.03

22 West Godavari 402.52 131.50 1303.57 317.43 0.00 769.26 2924.28

TOTAL: 3797.19 1114.54 27073.09 5414.06 10398.00 7373.43 55170.31

174

STATEMENT No. 3(2)

STATEMENT OF CONSOLIDATED grant payment OF GRAM PANCHAYATS FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No. Name Of The District Salary Grant JRY/SGRY X/XI finance State Finance

BACK WARD

REGIONS

GRANT FUND Other grant Total

1 Adilabad 53.22 0.61 36.65 5.29 701.37 3.01 800.15

2 Ananthapur 163.91 9.61 588.86 131.22 708.10 8.48 1610.18

3 Chittoor 792.46 0.27 771.43 174.55 781.62 386.73 2907.06

4 East Godavari 723.98 7.54 981.49 292.64 0.00 172.40 2178.05

5 Guntur 29.61 1.66 49.60 24.49 0.00 0.00 105.36

6 Kadapa 0.00 0.00 431.66 138.02 1109.65 198.98 1878.31

7 Karimnagar 962.48 2.28 4849.95 1426.79 694.93 1482.32 9418.75

8 Khammam 106.80 92.91 581.79 197.48 698.46 0.00 1677.44

9 Krishna 518.67 347.34 679.65 224.39 0.00 0.00 1770.05

10 Kurnool 183.50 149.16 659.21 244.06 0.00 421.94 1657.87

11 Mahaboobnagar 256.61 5.55 908.46 175.52 1255.52 132.08 2733.74

12 Medak 150.42 30.30 60.96 170.20 593.75 180.99 1186.62

13 Nalgonda 271.17 25.43 874.92 184.10 710.40 662.23 2728.25

14 Nellore 191.11 52.74 405.49 196.80 0.00 150.93 997.07

15 Nizamabad 0.00 9.49 394.82 77.81 543.20 0.00 1025.33

16 Prakasam 514.05 21.18 570.42 183.99 0.00 982.32 2271.96

17 Ranga Reddy 938.13 12.37 414.02 86.11 696.25 0.00 2146.88

18 Srikakulam 189.30 54.11 497.69 256.58 0.00 75.96 1073.64

19 Visakhapatnam 106.77 396.37 533.22 68.15 0.00 0.00 1104.51

20 Vizianagaram 118.09 136.95 428.64 169.30 549.33 152.09 1554.41

21 Warangal 108.08 0.64 660.63 168.21 658.35 0.00 1595.91

22 West Godavari 610.27 312.07 964.85 414.45 0.00 539.02 2840.66

TOTAL: 6988.63 1668.59 16344.42 5010.15 9700.93 5549.48 45262.20

175

STATEMENT NO.4

STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS

FOR THE YEAR 2008-09 Rs. In lakhs

Sl. No. NAME OF THE

DISTRICT

GRAM PANCHAYATS

No. AMOUNT

1 Adilabad 277 51.67


3 Chittoor 4272 271.04


5 Guntur 17903 788.03

6 Kadapa 11781 198.08


8 Khammam 4679 688.03

9 Krishna 17219 590.82

10 Kurnool 18044 655.09


12 Medak 6343 549.25

13 Nalgonda 12130 615.46

14 Nellore 22364 933.25

15 Nizamabad 10433 1515.34

16 Prakasam 20529 961.40

17 Ranga Reddy 9513 1519.17

18 Srikakulam 29279 1062.10



21 Warangal 9049 439.25


TOTAL: 301059 15639.27

176

STATEMENT No. 4 (a)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED


Rs. In lakhs

Sl.


GRAM PANCHAYATS

No. AMOUNT




4 Non-utilisation of grants before the lapsable

date 12766 176.68






10 Non remittance of deduction recoveries from

work bills / pay bills / contingent bills etc., 28373 3002.43






stores 100 28.55



18 Others 113400 990.77

19 D.D/Cheques received but not realized with in

time 0 0.00

Total: 301059 15639.27

177

STATEMENT NO.4(1)


( DISTRICT - CATEGORY - INSTITUTION WISE ) GRAM PANCHAYATS Amount in Lakhs

Sl.No Name of the District

Variation in

Account figures(1)

Excess Utilisation of

Grants (02)

Diversion of

Grants(03)

Non-utilisation of

Grants(4)

Mis-

Utilisation of

Grants(05)

Non-

utilisation of

Earmarked

funds(6)

Non-Collection of

Dues (07)


1 Adilabad 12 0.00 4 0.05 1 0.32 14 0.00 0 0.00 0 0.00 7 0.22

2 Ananthapur 394 4.66 525 1.73 19 2.04 1774 5.87 7 0.29 0 0.00 1861 45.42

3 Chittoor 38 0.06 2 0.00 0 0.00 0 0.00 0 0.00 0 0.00 531 40.64

4 East Godavari 12 0.67 216 13.89 11 0.61 75 5.30 3 4.45 0 0.00 264 45.48

5 Guntur 167 0.57 745 33.46 14 5.85 627 10.19 5 0.51 0 0.00 1129 207.54

6 Kadapa 381 5.35 564 6.89 4 0.33 727 3.31 4 0.33 0 0.00 714 11.16

7 Karimnagar 122 1.99 225 8.13 5 0.66 743 16.26 1 0.09 0 0.00 832 2.08

8 Khammam 2 0.09 180 23.66 27 2.90 276 10.11 23 6.30 0 0.00 487 168.50

9 Krishna 93 4.15 423 8.68 46 2.99 576 4.99 3 1.44 0 0.00 997 193.09

10 Kurnool 254 10.13 386 63.55 29 3.84 310 1.52 10 5.91 0 0.00 1207 46.36

11 Mahaboobnagar 9 0.05 5 1.49 4 0.92 887 6.06 1 0.45 0 0.00 905 16.91

12 Medak 50 0.10 80 3.16 10 6.29 150 30.16 0 0.00 0 0.00 500 12.21

13 Nalgonda 192 4.04 30 3.00 2 0.38 553 25.66 5 2.47 0 0.00 627 27.70

14 Nellore 53 0.21 191 8.34 577 0.77 706 2.26 0 0.00 0 0.00 1650 292.12

15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

16 Prakasam 228 0.89 169 2.83 203 7.01 1316 0.28 0 0.00 0 0.00 1185 223.77

17 Ranga Reddy 126 52.65 68 5.71 1 0.01 312 2.94 8 7.20 0 0.00 529 1.52

18 Srikakulam 268 5.69 368 7.76 23 1.47 1395 13.04 1 0.28 0 0.00 1953 115.57

19 Visakhapatnam 870 33.19 486 13.70 11 241.00 1165 18.35 0 0.00 0 0.00 1583 87.33

20 Vizianagaram 210 7.12 258 2.88 20 1.08 206 2.95 0 0.00 0 0.00 824 124.53

21 Warangal 13 0.00 208 19.14 11 1.43 412 15.50 4 1.03 0 0.00 453 0.72

22 West Godavari 55 0.60 624 20.72 13 3.40 542 1.94 16 2.54 0 0.00 724 137.02

TOTAL: 3549 132.21 5757 248.77 1031 283.30 12766 176.68 91 33.29 0 0.00 18962 1799.89

178

STATEMENT NO.4(2)


( District - Category - Institution wise ) Grampanchayati

Amount in Lakhs.

Sl.

No

Name of the

District

Advances

Pending

Adjustment (08)

Violation of Rules

(09)

Non-Remittance of

Deductions (10)

Non-Production of

Records (11)

Missappropri

ation and

Fraud

(12)

Excess

Payment

(13)

Wasteful

Expenditure

(14)


1 Adilabad 5 10.02 72 21.49 14 3.45 43 16.05 3 0.01 2 0.06 0 0.00

2 Ananthapur 808 90.98 6212 89.09 1853 45.45 2310 122.52 11 1.86 70 7.23 19 2.61

3 Chittoor 160 79.01 893 24.61 546 74.16 434 44.86 2 0.04 7 6.69 2 0.33

4 East Godavari 36 12.54 539 12.29 291 17.34 356 16.83 2 0.69 9 1.44 31 2.78

5 Guntur 127 46.86 2740 54.69 2240 175.55 3124 217.76 6 2.43 125 16.93 20 3.75

6 Kadapa 163 54.90 2144 19.60 703 42.14 1673 48.75 5 1.29 3 0.05 8 0.25

7 Karimnagar 17 18.21 1596 35.94 770 30.10 2187 138.76 19 1.47 0 0.00 1 0.07

8 Khammam 25 8.14 1528 215.37 508 64.14 315 17.72 3 0.56 13 1.33 1 0.05

9 Krishna 76 16.90 3345 64.78 2108 161.53 2047 109.98 9 2.42 26 3.18 1 0.02

10 Kurnool 737 300.62 3545 77.44 1467 55.36 1400 55.36 12 3.49 16 0.59 16 1.13

11 Mahaboobnagar 265 90.27 4907 364.70 108 19.16 3595 369.71 45 31.17 68 28.60 18 8.91

12 Medak 250 39.20 1410 198.28 379 94.23 1150 120.21 6 0.50 9 1.21 3 1.01

13 Nalgonda 14 1.96 4979 453.36 148 15.86 1403 56.27 89 3.47 0 0.00 11 0.73

14 Nellore 52 7.33 4984 185.66 930 58.28 2994 364.25 0 0.00 44 3.29 6 1.97

15 Nizamabad 1 0.26 1 0.47 5465 902.93 0 0.00 0 0.00 0 0.00 0 0.00

16 Prakasam 550 230.26 4050 78.03 2407 121.91 4708 269.74 3 0.57 17 0.75 21 3.61

17 Ranga Reddy 32 14.08 2734 558.47 615 410.03 1476 409.85 15 10.97 61 11.27 18 16.99

18 Srikakulam 1928 373.85 5891 256.71 1363 38.02 4609 237.87 3 0.26 5 0.06 16 0.84

19 Visakhapatnam 650 250.44 5077 155.56 1258 399.98 1526 477.40 5 1.49 28 2.67 26 1.59

20 Vizianagaram 550 201.53 2007 112.55 1435 71.85 1674 142.11 0 0.00 11 0.04 30 1.62

21 Warangal 17 8.10 2554 129.46 673 31.97 1366 108.56 25 7.76 21 2.21 1 0.00

22 West Godavari 21 8.09 2330 82.16 3092 168.99 1728 156.94 25 7.83 30 2.58 18 3.61

TOTAL: 6484 1863.55 63538 3190.70 28373 3002.43 40118 3501.50 288 78.27 565 90.18 267 51.87

179

STATEMENT NO.4(3)

STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09 ( District - Category - Institution wise ) Grampanchayati

Amount in Lakhs.

Sl.

No

Name of the

District

Instance of cases

un account for

(15)

Pending of U.Cs

(16)

Surcharge

certificate Recovery

Pending

Others (18)

D.D/Cheques/B.C,

etc,received but not

realised with in time

(26)

Total

No Amt No Amt No Amt No Amt No Amt No Amt

1 Adilabad 0 0.00 9 0.00 0 0.00 91 0.00 0 0.00 277 51.67

2 Ananthapur 23 0.63 911 0.04 0 0.00 11870 17.13 0 0.00 28667 437.54

3 Chittoor 2 0.43 152 0.00 0 0.00 1503 0.21 0 0.00 4272 271.04

4 East Godavari 0 0.00 837 2.42 0 0.00 1331 2.98 0 0.00 4013 139.71

5 Guntur 2 0.00 135 0.00 0 0.00 6697 11.94 0 0.00 17903 788.03

6 Kadapa 1 0.00 662 0.00 0 0.00 4025 3.73 0 0.00 11781 198.08

7 Karimnagar 1 0.01 449 0.00 0 0.00 3505 6.23 0 0.00 10473 260.00

8 Khammam 0 0.00 24 3.26 534 144.53 733 21.37 0 0.00 4679 688.03

9 Krishna 3 5.91 112 0.00 2 0.00 7352 10.76 0 0.00 17219 590.82

10 Kurnool 0 0.00 65 0.16 0 0.00 8590 29.63 0 0.00 18044 655.09

11 Mahaboobnagar 5 2.57 2 0.00 0 0.00 4167 53.85 0 0.00 14991 994.82

12 Medak 16 0.60 40 0.00 0 0.00 2290 42.09 0 0.00 6343 549.25

13 Nalgonda 1 4.98 8 0.00 0 0.00 4068 15.58 0 0.00 12130 615.46

14 Nellore 15 4.32 943 0.00 0 0.00 9219 4.45 0 0.00 22364 933.25

15 Nizamabad 0 0.00 0 0.00 0 0.00 4966 611.68 0 0.00 10433 1515.34

16 Prakasam 31 9.10 389 3.34 28 6.04 5224 3.27 0 0.00 20529 961.40

17 Ranga Reddy 0 0.00 44 0.00 1 0.00 3473 17.48 0 0.00 9513 1519.17

18 Srikakulam 0 0.00 121 0.05 121 3.20 11214 7.43 0 0.00 29279 1062.10

19 Visakhapatnam 0 0.00 1 0.00 0 0.00 9352 9.90 0 0.00 22038 1692.60

20 Vizianagaram 0 0.00 4 0.00 0 0.00 2916 1.86 0 0.00 10145 670.11

21 Warangal 0 0.00 19 4.27 0 0.00 3272 109.10 0 0.00 9049 439.25

22 West Godavari 0 0.00 157 0.00 0 0.00 7542 10.09 0 0.00 16917 606.51

TOTAL: 100 28.55 5084 13.54 686 153.77 113400 990.77 0 0.00 301059 15639.27

180

181

PART-II





ACCOUNTS OF

MUNICIPAL CORPORATIONS FOR

THE YEAR 2008-09


A.P., HYDERABAD.

182

183

CONTENTS

STATEMENT No.

DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF MUNICIPAL CORPORATIONS


PAGE No.

1 Introductions and a few selected audit objections of Municipal

corporations category wise 185-235

1 Consolidated Statement showing the Status of Audit of Municipla Corporations

237

2 2(1)1 to 2 (1) 3 Statement of Consolidated Receipts & Payments of Zilla Parisahds for the year 2008-09

238-240

2 (2) Statement of Consolidated Receipts & Payments of GHMC for the year 2008-09.

241-242

3

3. Consolidated Statement showing Number of Audit objections

raised (Category wise) and amount involved for the year 2008-

09.(Municipal Corporations)

243

3(1) 1 to 3(1) 3 Statement showing the number of audit

objections raised during the year 2008-09. 244-246

184

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE

ACCOUNTS OF MUNICIPAL CORPORATIONS FOR THE YEAR

2008-09

INTRODUCTION

2.1 Under the State Audit Act, 1989 the Director of State Audit, A.P., Hyderabad

is made in charge of the audit of the funds of local authorities and other

authorities specified in the Schedule prescribed in the said Act. By virtue of

this legal position the Director of State Audit, A.P., Hyderabad is the Auditor

for the accounts of the Municipal Corporations constituted in the State of

Andhra Pradesh this excludes Municipal Corporations. The Number of

Municipal Corporations for the year 2008-09 is 15.

1.2 The Department has got 6 (six) Zonal Offices and District Offices in all the

Districts. The Regional Deputy Directors head the Zonal Offices, and the

District Audit Officer, State Audit heads the District Offices.

1.3 The Department conducts post audit of the Municipal Corporations Audit

Reports consisting of defects noticed in audit is issued to the Commissioners

of the Municipal Corporation concerned who has to take action for rectifying

the defects pointed out in the Audit Report.

1.4 Under the State Audit Act, the Director is vested with the power of

disallowing every item of the expenditure incurred contrary to the law and

surcharge the same on the person incurring or authorizing the incurring of

such expenditure and may charge against any person responsible there for, the

amount of any deficiency, loss or unprofitable out lay occasioned by the

negligence or misconduct of that person or of any such sum which ought to

have been accounted for but is not brought into account by that person and

shall, in every such case, certify the amount due from such person.

SCOPE OF AUDIT

2.4 The State Audit Department verifies the following aspects during the course of

post audit of the Municipal Corporations.

Whether the amounts collected like taxes, fees etc., by the Municipal

Corporations were properly accounted for with full details in the books of

accounts of the Municipal Corporation concerned.

Whether adequate care has been taken in periodical checking up of the funds

with Treasury or Bank.

Whether expenditure incurred is provided for in the Budget of the Municipal

Corporation and duly sanctioned by the competent authority under the relevant

rules and executive instructions issued by the Government.

Whether funds are utilized only for the permitted purposes prescribed under

the Hyderabad Municipal Corporations Act 1955 Rules.

185

Whether the procedure prescribed by Government in incurring the

expenditure/payments made is properly followed and accounted for with due

classification in the books of accounts of the Municipal Corporation.

Whether vouchers for the expenditure incurred were maintained.

Whether grants received from different sources were properly accounted for

and utilized for the purposes for which they were meant.

GRANTS RECEIVED DURING THE YEAR BY THE MUNICIPAL

CORPORATIONS.

3.1 The Municipal Corporations are provided grants by the State / Central

Governments to implement the schemes entrusted to them and also for over all

development of the area under their jurisdiction.

3.2 The Receipts and Payments are inclusive of the various Grants received from

Central and State Governments during the year 2008-09 by the Municipal

Corporations. The fund wise detailed of 7 Municipal Corporations are detailed

in Statement No.2.

The Fund Wise Receipts of Municipal Corporations excluding GHMC

for the year 2008-09 are exhibited below in the Pie chart for 6 Municipal

Corporations leaving the GHMC as GHMC annual accounts are prepared in

Double Entry Accrual Based Accounting System and others are in Single

Entry Cash Based System.

186

PIE chart of Receipts of MC for 2008-09

35%

1%

2%

16%

8%

2%

12%

1%

2%

6%

2%

0%

2%

11%

1. General Account

35%

2. Lighting A/c 1%

3. Ele. Education A/c

2%

4. W.S & Drainage A/c

16%

5. Town Planning A/c

8%

6. Special Funds 2%

7. Deposits & Adv. 12%

8. Welfare Schemes

1%

9. City Engineering 2%

10.City Project 6%

11. UCD Project 2%

12. Parks Leisure &

Cemetries 0%

13. Public Health

(Utility) 2%

14. Sanitation Fund

11%

The Fund Wise Payments of Municipal Corporations excluding

GHMC for the year 2008-09 are exhibited below in the Pie chart.

187

PIE Chart of Payment of MC for 2008-09

16%

3%

2%

23%

1%

1%10%1%

8%

20%

3%

0%

5%7%

1. General Account 16%

2. Lighting A/c 3%


2%


23%


1%

6. Special Funds 1%

7. Deposits & Adv. 10%

8. Welfare Schemes 1%

9. City Engineering 8%

10.City Project 20%

11. UCD Project 3%

12. Parks Leisure &

Cemetries 0%

13. Public Health (Utility)

5%

14. Sanitation Fund 7%

STATUS OF AUDIT

4.1 7 years of Audit of Municipal Corporations up to the year 2008-09 was

conducted up to 31.12.2011.

4.2 The Department has conducted the audit of the receipts amounting to Rs.

265726.88 lakhs and Payments of Rs.311457.55 lakhs as detailed in the

Statements No.2 with Corporation wise break up.

188

4.2.1 The Fund Wise Receipts & Payment of Municipal Corporations excluding

GHMC for the year 2008-09 are exhibited below in the bar charts.

BAR Chart of R & P of MC for 2008-09

39363.12

649.95

2500.36

18379.05

8575.30

1695.45

13393.02

828.97

1786.02

6244.92

1929.84

0.25

1689.58

12485.73

18351.72

3675.93

2309.41

27674.24

622.20

801.86

11361.52

785.84

8901.16

23880.12

3022.36

176.55

6064.79

7754.05

1. General Account

2. Lighting A/c




6. Special Funds

7. Deposits & Adv.

8. Welfare Schemes

9. City Engineering

10.City Project

11. UCD Project

12. Parks Leisure &

Cemetries

13. Public Health (Utility)

14. Sanitation Fund

Receipts

Payments

AUDIT OBJECTIONS

5.1 During the course of audit of these Municipal Corporations for the year 2008-

09 various defects noticed were already pointed out in the relevant Audit

Reports which were forwarded to the Municipal Commissioners concerned for

further action at their end as per the procedure laid down under the A.P. State

Audit Act.


lakhs were raised in the audit of the Municipal Corporations during the year

under report.

189


involved with category wise break-up is annexed vide Statement No.3.

5.4 CATEGORISATION OF AUDIT OBJECTIONS

The various audit objections are classified into 19 categories as detailed

below.






6. Non-Utilisation of Earmarked Funds




10. Non-remittance of Deductions / Recoveries from vouchers / Pay Bills /

Contingent Bills



13. Excess payments



16. Pendency of Utilization Certificates

17. Surcharge Certificates – Recovery pending

18. Others

19. Demand Drafts / Cheques / Bankers Cheques etc., received but not

realized within time

5.5 Consolidated Statements showing the various Audit Objections raised in the

Audit Reports with amounts involved category-wise are annexed to the Report

[Statements from 3 (1) to 3 (3)].

5.6 The objections raised have been here under and observed that the Non

collection of dues has accounted for 43% of objections followed by Violation

of Rules 24%.

5.7 Gist of some of the selected audit objections pertaining to the year under


190


(CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2008-09

Rs. In lakhs.

Sl.

No. NAME OF THE CATEGORY No. % AMOUNT %

1 Non-collection of dues 70 8 19215.51 43

2 Violation of Rules 189 22 10870.49 24

3 Non Production of Records 250 29 8332.38 19

4 D.D. Cheques received but not realised

with in time 2 0 3673.64 8

5 Excess Utilisation of Grants / Funds 8 1 1151.82 3

6

Non-remittance of the Deductions /

Recoveries from the Vouchers / Pay

Bills Contingent Bills 47 5 683.95 2

7 Advances pending adjustment 23 3 233.19 1

8 Variation in Account Figures 17 2 99.23 0

9 Excess Payments 74 9 74.01 0

10 Others 126 15 53.05 0

11 Non-utilisation of grants before the

lapsable date 3 0 35.70 0

12 Diversion of Grants / Funds 6 1 20.40 0

13 Mis-appropriations 19 2 2.50 0

14 Wasteful Expenditure 5 1 2.06 0

15 Mis-utilisation of Grants / Funds 2 0 1.33 0

16 Pendency of Utilisation Certificates 3 0 0.24 0

17 Surcharges Certificates- Recovery

Pending 0 0 0.00 0

18 Instances of cases of unaccounted for

cash / stores 8 1 0.00 0

19 Non- utilisation of Earmarked Funds 5 1 0.00 0

Total: 857 100 44449.49 100

The objections - Number and amount involved - were categorized and their

category has been analyzed. 43% of amount objected pertains to the Non collection of

dues, followed by Violation of Rules which constitutes 24%.

191

AUDIT PARAS





year, Balance of the Treasury Pass Book as per Cash Book is not tallying with the

actual Closing Balance in the Treasury Pass Book as on 31st March. This is

happening due to Non-crediting of Receipts into the Treasury Pass Book by the

Treasury Authorities. Receipts credited in the cash book by remittance through

Challans are not credited in the Treasury Pass Book by the Treasury Authorities.

Debiting the cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.

Without explaining the differences, addition or subtraction are being done in the


Book. Wrong Totaling of Credits and Debits either by D.D.O. or Treasury. Revision

in the Plus or Minus Memo in the S. T. Pass Book during the subsequent financial

year by the Treasury authorities with retrospective effect. Further, Consolidated

Closing Balance of all cash books are not tallying with consolidated closing balance

of annual account of the institutions etc., A few instances of Variation in Account

figures noticed in the Audit Reports in various Local Bodies are detailed below:

A Consolidated Statement No. 3 (1) of Variation in account figures is

appended to the Report from which it could be seen that 17 audit paras involving an

amount of Rs. 99.23 lakhs were pointed out.

1.1 MC, WARANGAL - VARIATION BETWEEN ANNUAL ACCOUNTS

STATEMENT OF TOTAL RECEIPTS AND D.C.B NOT TALLIED:

During the course of audit on verification of receipt in accordance with the

Annual Account & D.C.B and receipt & payment statement abnormal variation

noticed as follows:

Sl.

No. Name of the Receipt head

Amount as

per A.A/c

Amount as per

R & P

Statement

Collection amount

of D.C.B

Statement

1 Property Tax 1917.15 1931.88 1912.74

2 Tax on Advt. 72.48 28.88 28.88

3 D&O Trader Licence Fee 32.18 10.21 10.21

4 Betterment Charges 88.96 88.94 90.50

5 Water Charges 77.96 0 0

6 Market fee 6.43 3.47 3.47

7 Rent on Shops 26.85 28.52 28.13

8 Mutation Fee 4.45 5.08 5.11

Total 2226.46 2096.98 2079.04

The Executive authority

would need to rectify / reconcile the above variations and furnished to audit.

(Para No. 1 (7) of MC, Warangal AR for 2008-09)

192

1.2) MC, KAKINADA - PROPERTY TAX – COMPONENT FIGURES NOT

TALLIED WITH DCB FIGURES NEEDS RECTIFICATION.

On verification of DCB statement of Municipal Corporation for the

year 2008-09, the Property Tax receipts were not tallied with the annual account

figures as detailed here under.

As per DCB

statement

As per annual

account

Difference

1. General 53437843 54145194 707354

2. Water 21375138 21224406 150732

3. Drainage 6679731 6632626 47105

4. Scavenging 13893839 13795865 97974

5. Lighting 26718922 26530509 188413

6. Education 26757204 26568519 188685

7. Library Cess 4884218 4849776 34442

Total 1414705

The reason for the difference of Rs.14,14,705.00 at the end of the year

2008-09 was not explained in audit. Therefore action would need to be taken to

rectify the differences at an early date and loss if any sustained would need to be

recovered and remitted to Municipal Corporation funds.

(Para No. 2 of MC, Kakinada AR for 2008-09)

1.3) MC, TIRUPATI - REVENUE – PROPERTY TAX – DIFFERENCE IN

DEMAND SUPPLIED BY ONLINE AND MANUAL THROUGH REGISTERS-

REASONS NOT EXPLAINED FOR DIFFERENCE OF RS.20,75,919-

As could be seen from the D C B of property Tax obtained from Property

tax Registers and demand generated in “ON LINE” difference of property tax as

shown below is noticed

Rs

DCB generated from ON LINE;

1st Half year : 8, 37, 41,665/-

2nd

Half year : 8, 48, 11,438/-

Total : 16, 85, 53,103/-

DCB of property Tax obtained from registers: 16, 64, 77,184/-

Difference 20, 75,919/-

Reasons for such huge difference are not explained in audit which needs to

be reconciled.

(Para No.5 of MC, Tirupati AR for 2008-09)

193

1.4) MC, KAKINADA - HUGE ARREARS OF TAXES / NON TAXES

PENDING -COLLECTIONS MADE MANUALLY EVEN AFTER THE

CONSTRUCTION OF E-SEVA CENTRES.

In terms of AP Municipalities (collection of taxes) Rules 1965 read with

corresponding provisions of HMC Rules, municipal Corporation / Municipalities

empowered to collect taxes / non taxes such a property tax, adv tax, water charges,

encashment fee, market fee, rent of shops etc and their prompt collection enables the

municipal corporation to implement various developmental activities in the Municipal

area. A scrutiny of the demand collection, balance statement appended to the annual

account at the end of the year 2008-09 revealed pendency of huge arrears as detailed

below.

Sl.

No. Nature of Taxes/Non taxes

As per DCB amount

pending collection upto

the end of 31.3.09 Rs.

1 Property Tax 118136605.09

2 Encrochment Fee 2773900

3 Water Charges 67329059

4 Market Fee 2844295

5 Shops rents 1344651

6 Fishary Rents 23000

7 Ferry 32500

8 Advances 169045

9 D&O trades 3830338

10 Advertisement Tax 4975711

The DCB statement was not revealing year wise arrear position. It was also

observed that the preparation of arrear demand register was dispended with after

computerization of collection of property tax. In terms of Rule 4 of AP Municipality

rules 1965 read with corresponding HMC Act & Rules the balances outstanding and

the lists except miscellaneous demand register which shall be maintained in such a

form as may be laid down by Govt from time to time.

(Para No.5 of MC, Kakinada AR for 2008-09)


The State Government releases grant-in-aid to meet the expenditure on

developmental works and contingency items. It was noticed during the audit that the

Executive Authorities of the MCs were incurring expenditure in excess of the grant

received from the Government either in anticipation of the release of further grant or

meeting the excess amount from the General Funds of the institution without any

valid orders.

A Consolidated Statement No. 3 (1) is appended to the Report from which it

could be seen that an amount of Rs.1151.82 lakhs was pointed out in 8 audit paras.

194


Municipal Corporations are

empowered to levy and collect different taxes like Property Tax, Advertisement Tax,

Vacant Land Tax etc., and collect water charges for supply of water to the households

and industrial/commercial units. The Municipal Corporations are authorized to collect

Building License fee for permitting the Traders to carry on business in the Municipal

area. Certain Municipal Corporations also raise income from their properties by

leasing them out. All the monies received by the Municipal Corporations form part of

their general funds and they can be utilised for the purposes prescribed under the

Act/Rules. Rule 39 of Rules framed relating to Taxation and Finance in Schedule II

under Section 130 of the Andhra Pradesh Municipal Corporations Act, 1965

prescribed the purposes to which the Municipal Fund should be applied. According to

the said rule, these include all objects expressly declared obligatory or discretionary

by law or rules and in general everything necessary for or conducive to the safety,

health, education and convenience of inhabitants or to the amenities of the Municipal

Corporation and incidental to the administration and the fund should be applicable

thereto within the Municipal Corporation. But there are many instances where the

grants/funds are applied for a different purpose rather than the intended one.

As per the orders issued by the Government in G.O Ms. No. 1886, Municipal

Administration, dt.22.11.1965, the Municipal Corporations should not divert the

following earmarked funds even temporarily for other purposes without the previous

sanction of Government.

1. Water and Drainage Tax Funds

2. Deposits including Provident Funds

3. Lighting Tax Fund

4. Loan Funds

5. Special Government Grants

6. Elementary Education Fund

7. Capital Receipts from sale of capital assets and

8. Endowments.

Consolidated Statement showing details of Diversion of Grants is

annexed to the report vide Statement No. 3 (1) from which it can be seen that 6 no. of

audit paras involving an amount of Rs.20.40 lakhs were raised in the audit reports for

the year and a few of them are narrated below.

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

Government releases special grants to the local bodies for implementing


meant duly following the guidelines issued / norms prescribed and such utilization

should be within the date prescribed. Otherwise, the grants will lapse to the

Government, unless the lapsable date of any particular grant is extended by the

Government or grant releasing authority.

195


13-6-1978 extending the period of Utilization of non-salary grants, up to a maximum

period of 18 months instead of end of the financial year to allow reasonable time to

utilize the grant released. According to the above orders, grants released in the first

year of a financial year can be utilized on or before 30th

September of succeeding

year. The Local Bodies did not utilize the grants released within the lapsable date and

thereby huge amounts were left unutilized. The grant sanctioning authorities were also

not approached for extending the utilization period. Thus the schemes for which the

grants released were not implemented effectively and totally. The unspent balances

were also not refunded to the grant releasing authorities.

A Consolidated Statement No. 3 (1) of Non-utilization of Grants/ Funds before

Lapsable Date is appended to the Report from which it could be seen that an amount

of Rs. 35.69 lakhs was pointed out in 3 audit paras.

5. MIS-UTILISATION OF GRANTS

Municipal Corporations are in receipt of Grant-in-aid from the Government

for certain specified purposes to be spent within the prescribed time limits and they

furnish utilization certificates for the grants utilized.

During the Course of audit, several instances have come to the notice of audit

that certain Municipal Corporations incurred expenditure in excess of the Grant–in-

aid received.

The fact of incurring such excess expenditure further implies that such

expenditure was met from the unspent balances of some other grants. Necessary steps

are called for to curb this sort of financial indiscipline at the earliest. The excess

expenditure incurred, wherever possible, should be got reimbursed from the grant

sanctioning authorities explaining the circumstances under which the excess

expenditure over and above the grant sanctioned became inevitable.

2 audit paras of Mis-utilisation of funds / grants involving Rs. 1.33 lakhs

pointed out in the relevant audit reports are detailed in Statement No. 3 (1) appended

to this report.


-Nil-


On verification of Revenue collections in Municipal Corporations, huge amounts have

been noticed pending realization for long periods and allowed to become barred by

limitation of time. No appropriate action seems to have been initiated by the executive

authorities before the dues became barred by limitation of time, in spite of various


or filing of suits.

196

A Consolidated Statement No. 3 (1) of Non-collection of dues is appended to

the Report from which it could be seen that 70 audit paras were pointed out involving

Rs.19215.51 lakhs.

7.1 GUNTUR MUNICIPAL CORPORATION - TOWN PLANNING

SECTION – NON-COLLECTION OF VACANT LAND TAX FROM THE

VACANT LAND OWNERS/BEFORE CONSTRUCTION OF BUILDING OF

BUILDERS – IRREGULAR - NEEDS RECOVERY - Rs.2,01,353/-

As verified from the building applications and vacant land files it was noticed

that the vacant land tax at the rate of 1% per annum or 0.5% per half year on vacant

site value as per registered title deeds was not collected from the vacant site owners

for the years from 2000-01/1 to 2008-09/2. But as per Preamble No.59/698 dated 23-

10-02 of Municipal Corporation, Guntur along with A.P. Hyderabad Municipal

Corporation Act 212 (2) vacant land tax at the rate of 1% per annum has to be

collected from the vacant site owners. Due to the non-collection of vacant land tax in

the following cases loss of an amount of Rs.2,01,353.00 was caused to the Municipal

funds. Hence, immediate action would need to be taken to collect the above amount

of Rs.2,01,353.00 and credit to Municipal funds.

Sl.

No

Building

application

No.

Name of the

Building

owner &

Address

Period

Vacant land tax

To be

collecte

d

Already

collecte

d

Balance

Rs. Rs. Rs.

1 2 3 4 5 6 7

1

BAC

56/08/G1,

dt.

M. Sambasiva

Reddy 2nd

line

Chaitanyapuri,

Koritepadu,

Guntur

Smt. B.

Hymavathi –

site owner

1-4-2000 to 31-

3-2002

1-4-2002 to 30-

9-2003

1-10-2003 to

30-9-2004

1-10-2004 to

30-9-2005

1-10-2005 to

30-9-2006

1-10-2006 to

31-3-2008

1-4-2008 to 30-

9-2008

Total

2480

2325

1925

2118

3982

5176

5198

5198

2480

2325

1925

2118

3982

5176

NIL

18006

-do- B.

Sampurnamm

a – site owner

1-4-2000 to 31-

3-2002

1-4-2002 to 30-

9-2003

1-10-2003 to

30-9-2004

1-10-2004 to

2480

2325

1925

2118

2480

2325

1925

2118

197

30-9-2005

1-10-2005 to

30-9-2006

1-10-2006 to

31-3-2008

1-4-2008 to 30-

9-2008

Total

3982

5176

5173

5173

3982

5176

NIL

18006

-do- B.

Annapurnamm

a – site owner

1-4-2000 to 31-

3-2002

1-4-2002 to 30-

9-2003

1-10-2003 to

30-9-2004

1-10-2004 to

30-9-2005

1-10-2005 to

30-9-2006

1-10-2006 to

31-3-2008

1-4-2008 to 30-

9-2008

Total

2480

2325

1925

2118

3982

5176

5148

5148

2480

2325

1925

2118

3982

5176

NIL

18006

2 691/08-G2,

dt.

Y. Ankamma

Chowdary s/o

Y. Ramaiah

nearest

D.No.1-2-

66/2, Besides

JKC College,

Guntur

2000-01/1

2000-01/2

2001-02/1

2001-02/2

2002-03/1

2002-03/2

2003-04/1

2003-04/2

2004-05/1

2004-05/2

2005-06/1

2005-06/2

2006-07/1

2006-07/2

2007-08/1

2007-08/2

2008-09/1

Total

1412

1412

1412

1412

1765

1765

1765

1941

1941

2135

2135

4013

4013

5216

5216

5216

7800

5216

5216

5216

7800

1412

1412

1412

1412

1765

1765

1765

1941

1941

2135

2135

4013

4013

NIL

NIL

NIL

NIL

27121

3

BA

800/08/G2,

dt.21-11-

08

P.L.V.

Subrahmanya

Kumar 3rd

line

Brundavan

Guardens,

Guntur

2000-01/1

2000-01/2

2001-02/1

2001-02/2

2002-03/1

2002-03/2

2003-04/1

2003-04/2

2004-05/1

774

774

774

774

968

968

968

1065

1065

774

774

774

774

968

968

968

1065

1065

198

* 60%

Discount

allowed for

the year 2007-

08/2

2004-05/2

2005-06/1

2005-06/2

2006-07/1

2006-07/2

2007-08/1

2007-08/2

2008-09/1

2008-09/2

Total

1172

1172

2203

2203

2864

2864

2864

2864

2864

*1146

2864

2864

1172

1172

2203

2203

2864

2864

NIL

NIL

NIL

20608

4

BA

945/08/G2,

dt.21-2-09

Borra Baghya

Latha w/o B.

Venkateswara

Reddy

D.No.2-2-

38/A,

Stambalagaruv

u, Guntur

2000-01/1

2000-01/2

2001-02/1

2001-02/2

2002-03/1

2002-03/2

2003-04/1

2003-04/2

2004-05/1

2004-05/2

2005-06/1

2005-06/2

2006-07/1

2006-07/2

2007-08/1

2007-08/2

2008-09/1

Total

983

983

983

983

1229

1229

1229

1352

1352

1487

1487

2796

2796

3635

3635

3635

3635

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

983

983

983

983

1229

1229

1229

1352

1352

1487

1487

2796

2796

3635

3635

3635

3635

33429

5

BA

925/08/G2,

dt.

Sri K.

Ramachandra

Murthy

D.No.3-20-6,

Near

Recruitment

Office,

Pattabhipuram

, Guntur

2000-01/1

2000-01/2

2001-02/1

2001-02/2

2002-03/1

2002-03/2

2003-04/1

2003-04/2

2004-05/1

2004-05/2

2005-06/1

2005-06/2

2006-07/1

2006-07/2

2007-08/1

2007-08/2

2008-09/1

Total

1326

1326

1326

1326

1657

1657

1657

1823

1823

2005

2005

3769

3769

4900

4900

4900

4900

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

1326

1326

1326

1326

1657

1657

1657

1823

1823

2005

2005

3769

3769

4900

4900

4900

4900

45069

6

BA

863/08/G2,

dt.8-12-08

R. Venkata

subbaiah

D.No.1-36-61,

2000-01/1

2000-01/2

2001-02/1

560

560

560

NIL

NIL

NIL

560

560

560

199

4th

line

Naibrahmana

Colony,

Maruthi

Nagar, Guntur

2001-02/2

2002-03/1

2002-03/2

2003-04/1

2003-04/2

2004-05/1

2004-05/2

2005-06/1

2005-06/2

2006-07/1

2006-07/2

2007-08/1

2007-08/2

2008-09/1

2008-09/2

Total

560

700

700

700

770

770

847

847

1592

1592

2070

2070

2070

2070

2070

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

560

700

700

700

770

770

847

847

1592

1592

2070

2070

2070

2070

2070

21108

Total 201353

(Para No.6 of MC, Guntur AR for 2008-09)

7.2 MC, GUNTUR - MARKETS AND SHOPPING COMPLEXES – HEAVY

ARREARS OF RENTS PENDING REALISATION – NEEDS ACTION:

Rs.1,67,75,875/-

As verified from the Demand, Collection and Balance statements for the year

2008-09, it was noticed that an amount of Rs.1,67,75,875/- was still to be realized

from markets and shopping complexes as on 31-3-2009 as detailed below. Early

action may be taken for the realization of dues along with penal interest. Loss, if any,

caused in this regard may be made good from the person or persons responsible.

Sl.

No. Details of properties

Arrears up to

2007-08

Rs.

Current

2008-09

Rs.

Total

Rs.

1 Markets 6851217 2879054 9730271

2 Complexes 2419236 4626368 7045604

Total 9270453 7505422 16775875

(Para No.12 of Guntur AR for 2008-09)

7.3 GVMC, VISAKHAPATNAM - MARKET NOT LEASED OUT -

DEPARTMENT COLLECTION MADE - IRREGULAR - NEEDS EARLY

ACTION. RS. 23,36,440/-

As verified from the D.C.B of markets, shops and other properties owned by

the Corporation, it is noticed that certain markets were not leased out in auction, but

departmental collections were made. The register of assets owned by the Corporation

was not furnished to Audit, to enable to verify whether all the properties of the

Corporation were leased out are not. Notification for the leases in the open auction

200

has to be issued in the month of February and the process is to be closed before 31st

March, duly finalizing the bids and to obtain registered agreements from the bidders

at their cost. No reasons or any explanations were given for Department Collections

of the Market Lease-s etc.

The lease amounts have to be recovered from lessees as per the agreement

conditions, further the lease has to be terminated if there is a default in payment of the

bid amount and the bidder has to forfeit the initial deposit and EMD. The balance

lease should be further auctioned duly following the procedure. But, no action was

taken on defaulting bidders in time and Contractor has allowed the bid amounts to fall

in arrears. The loss in this regard would need to be recovered from person or persons

responsible and made good to GVMC Funds.

Markets are leased out on yearly basis. The licensee (Lessee) has to pay the

entire lease amount of the year in advance. But in some cases, it is observed that some

of the licensees have not paid the lease amount of 2007-08 even during 2008-09. Such

cases are listed below:

ARREARS OF MARKET LEASES FOR THE YEAR 2008-09

Sl.

No. Name of Markets

Demand

Amount

Rs

Collection

Amount

Rs.

Net Due

Amount

Rs.

1

Permission to Sell Ice

Cream on Push Carts

(25B-215-001)

10,668/- 7112/- 3,556/-

2 Maintenance of Canteen

in Mudasarlova Park 12,768/- 6,384/- 6,384/-

Total 9,940

Zone VI Arear DCB of Markets

1 Daily Market,

Pendurthyi 150000 140000 10000

Zone V Arrears of Markets

1 K V V Satya Satish 2201000 50000 1701000

2 K Srinu 751000 15000 601000

2952000 65000 2301000

Zone V, Fish Tanks

S.No. Name of the Bidder Demand Collection Balance

1 D Ramana 10000 4500 5500

Zone V, Usufruct of Trees

S.No. Name of the Bidder Demand Collection Balance

1 D Janakamma 12000 2000 10000

Total Non Collection Of Miscellaneous Income From Market Leases

Amounts to Rs.23,36,440/-

(Para No.11 of GVMC, Visakhapatnam AR for 2008-09)

201

7.4) MC, TIRUPATI - REVENUE – PROPERTY TAX COLLECTION - HUGE

PENDENCY IN CURRENT YEAR - RS. 10, 70, 90,513/-

As seen from the DCB statement for the year 2008-09 a total demand,

collection and balance of property tax is as follows. And percentage of collection of

property taxes 36% only.

Demand Collection Balance to be collected

16,64,77,184 5,93,86,671 10,70,90,513

It is observed that property tax is collected only 36% and leaving a balance of

Rs. 10, 70, 90,513/- which is 64%.

The executive authority is requested to take effective steps for collection of

property tax for taking up of developmental activities in corporation areas


7.6) MC, KAKINADA - ADVERTISEMENT TAX – PENDING FROM 1999-

2000 TO 2008-09 – HUGE AMOUNT NOT COLLECTED – NEEDS ACTION.

On verification of Advertisement Tax records, it was noticed that huge amounts were

pending from 1999-2000 to 2008-09 as detailed below.

Year Demand Collection

Balance

Amount in

Rs.

1999-2000 56218 478 55740

2000-01 264624 15776 248848

2001-02 299620 0 299620

2002-03 351070 7440 343630

2003-04 314197 7100 307097

2004-05 518345 18560 499785

2005-06 688336 83960 604376

2006-07 1146125 729386 416739

2007-08 416739 35150 381589

2008-09 7724881 2749170 4975711

11780155 3647020 8133135

Effective steps would need to be taken to recover the Advertisement Tax.

(Para No.10 of Kakinada AR for 2008-09)

202

8. ADVANCE PENDING ADJUSTMENT




the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to






A Consolidated Statement No.3 (2) showing the audit objections on Advances

Pending is appended to the Report from which it could be seen that an amount of

Rs.233.18 lakhs was pointed out in the 23 audit paras.

8.1) MC, TIRUPATI - ADVANCES – VARIOUS ADVANCES DRAWN BY

DR. K.M.MITHRA, M.H.O. – MUNICIPAL CORPORATION – TIRUPATI –

NOT GOT ADJUSTED – NEEDS ACTION Rs.6,50,000/-

As seen from the advances recoverable register, it is noticed that the

following advance amount drawn and paid to Dr. K.M.Mithra, M.H.O. Municipal

Corporation, Tirupati. But the same was not got adjusted till the close of audit. The

individual was relieved on transfer but the advance pending was still due from the

individual.

The executive authority is hereby taken proper action for realizing huge

advance pending amount from the individual and credited to corporation genera

funds.

Sl.

No

Vr.No & Date Nature of advance Advance

sanctioned

Rs.

Remarks

1 867 / 11.08 Repairs of P.H. vehicles 100000 Not got

adjusted

2 `` Purchase of workshop

shed materials

100000 ``

3 Roc.No,6161/09/C1

Dt: 8-10-09

Advance drawn 250000 ``

4 911/11-09 Vehicle repair charges 200000 ``

5 1092/1-09 Towards arrangements of

pulse polio programme

50000 ``

Total Advance pending 7,00,000-


203



instructions for incurring the expenditure from the funds of the MCs were violated

either due to negligence or ignorance. In certain cases, the funds of the MCs were

utilized for the purposes other than the permitted ones under the Act / Rules. It was

also noticed that in a few cases, Government instructions were misunderstood or

misinterpreted. Such irregular expenditure incurred was objected to in the relevant

Audit Reports.

A Consolidated Statement No.3 (2) showing the audit objections on Violation of

Rules is appended to the Report from which it could be seen that an amount of

Rs.10870.48 lakhs was pointed out in 189 Audit Paras.

9.1) GHMC – CIRCLE VIII, ABIDS – ENGINEERING SECTION -

SRI.D.YADAIAH S/O SRI. MAISAIAH, APPOINTED AS KAMATI,

PROMOTED AS BILL COLLECTOR AND LOWER DIVISION CLERK

WITHOUT QUALIFICATION AND THE INDIVIDUAL PROMOTED

WITHOUT OBSERVING THE MINIMUM SERVICE IN PARTICULAR

CATEGORY- IRREGULAR-NEED TO BE REGULARIZED.

On verification of service register of Sri.D.Yadaiah, LDC working in Engg.

Section of GHMC Circle No.VIII, Abids. The following were observed.

The individual was appointed as Kamati wef.01-07-1992 and his pay fixed at

minimum Rs.1375-00 in the scale of Rs.1375-2375. Subsequently the following

promotions were effected.

I) Promoted as Bill Collector wef.31-8-2000. AN. Pay fixed as on 01-09-

2000 @ Rs.3210-00 in the scale of Rs.2750-5150.

II) Promoted as lower division clerk wef.05-05-2001 FN. Pay fixed as on

05-05-2001 @ Rs.3290-00 in scale of Rs.3290-6550 , under FR

22(a)(ii) and next increment allowed on 01-09-2001 under FR31

In this case it was noticed that the individual has passed only S.S.C., vide Roll

No.0658454, held in march-1994,as per entry made in S.R. page No.1.

As per Govt. Orders issued in G.O.Ms.No.591GAD(Services),dated 01-10-

1984, the basic qualification for J.A(LDC)/TYPIST/STENO. are intermediate pass.

But without possessing requisite basic qualification the individual was promoted as

LDC, which irregular and contrary to Govt. rule.

And as per rule 9 of last grade service rules issued in G.O.Ms.No.564

GA(Ser.B) Dept.,Dt.24-10-1992 and read with the ad-hoc rule issued under state and

subordinate service rules issued in G.O.Ms.No.627 GA(Ser.A)Dept.,Dt.21-12-1983,

No person shall be eligible for appointment by transfer or promotion unless he has put

in not less than three years of service in the category from which appointment by

204

transfer or by promotion as made. In the instance cases this rule has not been observed

and the individual has been promoted/appointed by transfer in short- duration.

The services of above person need to be regulated as per rules and if any

excess payment made to the individual need to be worked out and recovered from the

person or person’s responsible, under intimation to audit.

(Para No.9 of Engg. Section, GHMC AR for 2008-09)

9.2 GHMC, MALKAJGIRI - WATER SUPPLY – COLLECTION OF WATER

TAX – NOT SELF SUPPORTED HEAVY ARREARS – OTHER DEFECTS

During the year under audit an amount of Rs.4,84,12,864-00 was

drawn & paid towards supply of Manjeera water to Malkajgiri Circle area, public

through water tankers as detailed in the Annexures.

Where as the water tax collected by GHMC during the year 2008-09 is

Rs.210.89 Lakhs as per DCB statements which clearly shows that the water charges

paid is more than 100% excess and not self supported. If the water supply staff

salaries also included excess goes to 200%.

Coersive steps would need to be taken to minimize the expenditure, besides

raising the collection, and become self supportive.

Further in respect of water charges paid for mobile tankers, connected tender

files, trip sheets etc., were not furnished to audit for verification. Action may be taken

to furnish the same at an early.

Manjeera water supply charges paid to HMWSSB by Malkajgiri

Sl.

No. Vr.No. & Dt.

Amount

(Rs.) Period

1 8000 13671/30.5.08 4486348 w.s.charges for 3/08

2 8000 13682/ ,, 4494498 ,, 4/08

3 8000 19612/19.6.08 4572129 ,, 05/08

4 8000 31641/30.7.08 4421714 ,,06/08

5 8000 35122/12.8.08 4223261 ,,07/08

6 8000 47969/24.9.08 4449592 ,,08/08

7 8000 53323/16.10.08 4605691 ,,09/08

8 8000 63214/19.11.08 4753099 ,,10/08

9 8000 71527/15.12.08 4423998 ,,11/08

Total 40430330

205

Addl. consumption charges Rs.34000000/- upto 7/07 to 11/08 @ 2000000-00.

Supply of majeera water through mobile tankers

1 8000

50542/4.10.08 328123 19739 308123 G.Nagesh

8602/01000

20047, MB

No.17/08-

09

Youthamn

agar

Reswork

2 8000

48453/25.9.08 344993 20756 324237 do@114/- do 2880

3 8000 16042/9.6.08 339060 17008 322052 do@114/ 2976

4 8000 80255/7.1.09 339060 20399 318661 do@114/ 2976

5 8000

71347/15.12.08 328123 19739 308123

do@114/ 2976

6 8000

59210/7.11.08 339060 20399 318661

do@114/ 2880

7 8000

50482/25.9.08 300779 18096 282683

do@114/ 2976

8 8000

48461/25.9.08 310806 18700 292106

R.Upender

reddy

167/07-08,

A/c.964125

100330106

2640

9 8000 16026/9.6.08 310681 15600 295081 do 2728

10 8001

03030/20.3.09 280727 16888 263839

do 2728

11 8001 03017/,, 306248 18423 287825 do 2464

12 800092257/16.2.09 310805 18700 292105 do 2688

13 8000 80243/7.1.09 310805 18700 292105 do 2728

14 8000

73159/15.12.08 300779 18096 282683

do 2728

15 8000

59209/7.11.08 310806 18700 292106

do 2640

16 8000

35097/12.8.08 310805 18701 292104

do 2728

17 8000 25686/8.7.08 300779 15089 285690 do 2728

18 8000

10102/16.5.08 300659 15095 285564

do 2728

19 8000

35091/12.8.08 332617 20009 312608 Y.Naresh

M.B.No.45/

05-06 2640

20 8000 25693/8.7.08 328123 16458 311665 ,, 2640

21 8000

10112/16.5.08 328123 16459 311664 ,, 2968

22 800092254/16.2.09 326869 19665 307204 2880

23 8000

04315/25.4.08 347002 27007 319995 2880

24 8000 04319/,, 326701 25426 301275 2869

25 8000 04316/,, 320001 24911 295090 2784

7982534

(Para No. 29 of GHMC, Malkajgiri Circle AR for 2008-09)

9.3 KAPRA - BUILDING PERMISSION FEE-LESS COLLECTED-BY

ADOPTING LESS RATES-LOSS CAUSED-NEEDS RECOVERY-Rs.81619.00

As per the Resolution No, 94 dated 30.06.2008 of GHMC, The Town

Planning Charges and building permission fees were enhanced w.e.f. 01-07-2008.

In respect of Building permission fee the following charges need to be collected.

206

Residential Building.

1. Up to 200 Sq.Metres of plot area Rs.10/- per

Sq.Metres on built up area

2. 200 Sq.Metres to 500 Sq.meatres of plot area Rs.50/- per Sq.Mt

built up area

2. 501 Sq.Mt to 750 Sq.Mts of plot area Rs.70/- per Sq.Mt on

built up area.

But in the following cases, the less rates were adopted which caused

loss to the tune of Rs.81, 619-00.

Immediate action would need to be taken to recover the less collection

and credited to GHMC funds.

Sl.

No

Permit No & Date Name of the

owner

Plot area in

Sq.Meters

Plinth area

in Sq.Meters

Fee to be

collected

Collected Difference

1 BA/G1/78/08-09

Dt.15.09.2008

Kokila Jhonson 200.64 188.46 188.46x50/-

=9423/-

1890 7533

2. BA/G1/210/08-09

Dt.11.02.2009

D.Kanthi Reddy 223.21 173.12 173.12x50/-

=8656/-

1732 6924

3 BA/G1/216/08-09

Dt.17.02.2009

K.Jagan Mohan

Reddy 229.93 124 124x50/-

=6200/-

1240 4960

4 BA/G1/77/08-09

Dt.20.09.2008

M.Srinivas Prasad 219.82 189.16 189.16x50/-

=9458/-

1892 7566

5 BA/G1/111/08-09

Dt.15.10.2008

G.Venkateswer

Rao 250 84.99 84.99x50/-

=4250/-

840 3410

6 BA/G1/42/08-09

Dt.03.07.2008

D.Chandra Shekar 200.66 99.80 99.80x50/-

=4990/-

998 3792

7 BA/G1/142/08-09

Dt.16.12.2008

P.Satya Narayana

Raju 330. 82 82x50/-

=4100/-

820 3280

8 BA/G1/180/08-09

Dt.30.12.2008

Thakur devi Singh 250.83 121 121x50/-

=6050/-

1210 4840

9 BA/G//161/08-09

Dt.08.12.2008

G.Shashamani 223.24 185.30 185.30x50/-

=9300/-

1860 7440

10 BA/G2/114/08-09

Dt.18.02.2009

K.Malahar Rao 247.16 164 164x50/-

=8200/-

1640 6560

11 BA/G2/123/08-09

Dt.07.03.2009

Y.Nirmala 292. 200 200x50/-

=10000/-

2000 8000

12 BA/G2/133/08-09

Dt.20.03.2009

P.Neeraja 226.50 82.36 82.36x50/-

=4150/-

830 3320

13 BA/G1/117/08-09

Dt.08.10.2008

K.Swarna 240.14 112 112x50/-

=5600/-

1120 4480

14 BA/G1/119/08-09

Dt.13.10.2008

AVS.Pavankumar 834.05 316.74 316.74x50/-

=25360/-

15850 9510

TOTAL

81619

(Para No.5 of GHMC, Kapra Circle AR for 2008-09)

207

9.4 KAPRA - COLLECTION OF PROPERTY TAX-NO CARBON

IMPRESSION WERE FOUND ON THE REVERSE OF THE DUPLICATE

RECEIPTS-NEEDS ACTION.

During the course of audit on verification of the receipt books towards

collection of property tax no carbon impression were found on the reverse of the

duplicate receipts.

The matter was brought to the notice of the valuation Officer vide Half

Margin Lr.No.14/2009-10 dt.18.02.2010 and requested to provide an explanation, but

no reply was received in this matter.

Without a reverse impression of the content of the original receipt on

the duplicate receipt, there is a every possibility of writing different amounts in the

original and duplicate receipts.

(Para No.9 of GHMC, Kapra Circle AR for 2008-09)

9.7 GVMC, VISAKHAPATNAM - LEASES - LEASE OF CERTAIN

MARKETS, PARKING PLACES, PARKS & OTHER MISCELLANEOUS

PLACES - NOT LEASED OUT - IRREGULAR -NEEDS ACTION

As verified from the DCB statement furnished relating to the various Zones , it is

noticed that the following properties of GVMC which were leased out during the year

2007-08 and amount collected, Some of them were not leased out during the year

2008-09. But, no reasons were given for not leasing out the following properties.

Hence, early action would need to be taken on the person responsible for not leasing

out the properties in the year 2008-09 besides recovery of loss caused to GVMC.

Statement of Shop Rooms Vacant

Shop No. Name of the Complex Remarks

23A-208-001 Shivaji Park MS Complex Vacant




25A-214-003 Seethammadhara MS

Complex

Vacant

25A-214-009 Seethammadhara MS

Complex

Vacant

25A-214-05A Seethammadhara MS

Complex

Vacant

3 Mulagada Shopping Complex Vacant

4 Mulagada Shopping Complex Vacant

5 Prakash Nagar Vacant

6 Prakash Nagar Vacant

1 Trinadhapuram Vacant



208


1 Mindi Shops MP lads Vacant



1 Srinivasa Shopping Complex

Pendury

Vacant

Statement of Markets Rooms Vacant

Sl.

No.

Name of the Market Remarks

1 Jagga Rao Bridge Market Not Leased

2 Sivaji Park Gate Entrance Not Leased

3 Sivaji Park Parking Not Leased

4 Nehru Bazar Shops Not Leased

5 Mudasarlova Park Parking Not Leased

(Para No. 31 GVMC, Visakhapatnam AR for 2008-09)

9.8) MC, TIRUPATI - REVENUE-LESS COLLECTION OF ROOM RENTS

NEAR LEELA MAHAL SHOPPING COMPLEX THAN FIXED BY

MUNICIPAL CORPORATION - IRREGULAR-NEEDS COLLECTION -

Rs.68,760-

Municipal Corporation, Tirupati vide Lr.Roc no: 3339/08/A1 dt:07-06-2008

and dt:05-07-2008 have leased out shops 22 in number to different people to carryout

their business at a rent of Rs.700- per month per shop 1 to 21 and at a rent of Rs.800-

per month shop no:22 near Leela Mahal Shopping Complex.

Again in Lr.Roc No: 5446/04/A1 dt.30.08.08 have leased out shop no:7 (o.c)

at Rs.1650- per month and shops in I floor 1 to 6 at Rs.880- per month near E-seva

Complex.

But, as verified in MDR, rents on shops are collected as shown below:

Shop No Rent Fixed Per

month

Rs.

Rent

Collected

Rs.

Less

Collection

Rs.

Total Less

Collection

Rs.

1 to 21 700 500 200 50400

22 800 600 200 2400

Near Leela Mahal

Shopping Complex 7 (O.C)

6150 800 850 10200

e-Seva Complex (1 to 6) 880 800 80 5760

Total 68760

The reason for short collection of rents to a tune of Rs.68, 760- was not

explained in audit. The Executive Authority is required to make good the amount

from the person(s) responsible and intimate to audit.


209

9.10) MC, TIRUPATI - P.H.SECTION –SUPPLY OF P.H.ARTICLES –

CONNECTED STOCK REGISTER AND ITS UTILIZATION NOT POINTED

OUT NEEDS ACTION RS 23,97,072-00

In the following vouchers an amount of Rs 23,97,072-00was drawn and paid

to various firms towards supply of P.H.Articles for maintenance of P.H.wing of

Municipal Corporation Tirupati. The Connected stock register in which the supply of

P.H. Articles recorded not produced to audit to verify the correctness of the stock

received from firms’. The utilization of P.H. Articles also not pointed out to audit.

Though the half margin letter was addressed to the executive authority Concerned for

production of afore said records, the executive authority has not produced the record.

Sl.

No. Voucher No & date Details Amount

1 399/07/2008 Amount drawn and paid to NCCF of India

to wards supply of Lime Powder

440200

2 505/07/2008 Supply of Conservancy articles( amount

paid to NCCF of India tpt)

48150

3 506/07/2008 Supply of Plastic buckets ( amount paid to

NCCF of India tpt)

46750

4 508/07/2008 Supply of Coconut brooms( amount paid to

NCCF of India tpt)

247500

5 507/07/2008 Supply of Bleaching powder (amount paid

to NCCF of India Tpt)

54000

6 509/07//2008 Supply of malathin 165000

7 398/07/2008 Supply of By-Tex 312000

8 1029/12/2008 Supply of Uniform Cloth and Coconut Oils 613986

9 1031/12/2008 Supply of Malathin 82500

10 1250/01/2009 Supply of By-Tex 78000

11 63/03/2009(TTD Loan) Supply of Eprens 116000

12 64/03/2009(TTD Loan) Supply of Chappels to P H.Workers 92986

Total 2397072

(Para No. 38 of MC, Tirupati AR for 2008-09)

9.11) MC, KAKINADA - OIL BILLS – PURCHASE OF OIL TO VEHICLES –

LOG BOOKS NOT – PRODUCED – DETAILS OF THE VEHICLES

ENGAGED NOT KNOWN – VEHICLE NUMBER NOT ENTERED IN THE

BILL – IRREGULAR Rs.2,34,711.00

During the course of audit, it was noticed that, huge expenditure was

incurred towards oil bills as detailed below. But the vehicle no. for which the oil was

taken was not entered in the bills issued by the oil agency. Further no. of vehicles and

type of the vehicle engaged by the Municipal authorities during the year under audit

was also not furnished to audit. The log book was not maintained and produced to

audit. Some tractors and cars were engaged on contract hire basis for which oil

expenses have to be borne by the contractors themselves but not by the corporation.

Due to non availability of the above information, it was not known whether the

expenditure on oil was properly incurred or not. Therefore the entire amount is held

under objection. Action would need to taken to produce all the above records to

210

audit. The loss if any sustained would need to be made good from the person

responsible and credited to municipal funds under intimation to audit.

Sl.

No

Vr. No & Dt Name of the contractor Amount

1 107/4.08 S. Ananda Rao 12642

2 114/4.08 K. Kasinath 12739

3 119/4.08 G. Eswara Rao 12740

4 115/4.08 K. Kondala Rao 11760

5 306/6.08 K. Kasinath 32415

6 142/4.08 S.R.T Agency 69820

7 783/11.08 G. Bheemeswara Rao 49245

8 871/11.08 K. Kondala Rao 16600

9 1182/3.09 G. Bheemeswara Rao 16750

234711

(Para No.29 of Kakinada AR for 2008-09)

9.12 GHMC MALKAJGIRI - AUCTION OF TAI BAZAR FOR 2008-09 –

CERTAIN IRREGULARITIES NOTICED.

File No.A1/809/08, dt.1.4.08

On verification of the Auction file of Tai Bazar for the year 2008-09, it

was observed that it was auctioned on 17.3.08 and on 28.3.08 with an EMD of

Rs.1.00 Lakh and knocked down in favour of the highest bidder Sri.M.Vijaya Kumar

for Rs.4.00 Lakhs. As per the Tender conditions, immediately after knocking out the

bid, 50% amount should be paid in (24) hours, and remaining 50% be paid in (5)

installments excluding EMD, and if not paid by 31.8.08, a fine has to be imposed

besides forfeiting the EMD. For (5) installments of 50% bid amount, advance post

dated cheques have to be obtained and enter into agreement.

The bidder paid the 50% of the total bid along with (including) EMD

immediately instead of excluding EMD and (3) post dated cheques furnished for 4/08,

5/08 and 7/08. The post dated cheques were bounced and the 50% bid amount not

collected within the specified date of 31.8. 2008. No action was taken to collect the

auction amount and no notices were also served for collection from 4/08 to 1/09. For

belated payment, no penalty was imposed and collected which is highly irregular.

Immediate action may be taken to fix penality and recover the same from him.

(Para No.2 of GHMC, Malkajgiri AR for 2008-09)

211

9.13 GHMC, RAJENDRA NAGAR CIRCLE - LAYING OF CC ROAD

FROM 7 TEMPLES TO 2-1-94 AT UPPARPALLY UNAUTHORISED,

CONTRARY TO RULES

Administrative sanction was given for laying

road from 7 temples to 2-1-94 as per plan in the work file. But, as verified from the

M.Book the road was laid at 2-2-36/1 to 2-2-36/2 and at 2-2-30. There is no H.No. 2-

2-36/1 to 2-2-36/2 mentioned in the administrative sanction. As such work was done

at the place other than the place approved by Competent Authority which is highly

irregular and violation of rules.

(Para No.21 of GHMC, Rajendra Nagar Circle AR for 2008-09)

10. NON-REMITTANCE OF THE DEDUCTIONS /

RECOVERIES FROM THE VOUCHERS / PAY BILLS /

CONTINGENT BILLS




account within a prescribed time under the relevant statutory provisions which also


The deductions normally made from the work bills / pay bills that are to be

remitted to Government account are hereunder.

Work Blls

3. Income Tax

4. Sales Tax/VAT


Pay Bills

4. Profession Tax

5. G.P.F. (Government Employees)

6. G.I.S Premium.

7. Contribution to Pension Scheme

8. Sainik Welfare fund

The defects noticed were pointed out in the respective Audit Reports. Some of

them are as under.

A Consolidated Statement No.3 (2) showing the audit objections on Non

remittance of Deductions/Recoveries made from the vouchers /Pay Bills/Contingent

Bills is appended to the Report from which it could be seen that an amount of


212

10.1 GUNTUR - LIBRARY CESS NOT REMITTED TO ZILLA

GRANDHALAYA SAMSTHA, GUNTUR : Rs.1,42,39,324-81 AND

Rs.89,84,008/- IN KURNOOL.

i) During 2008-09, an amount of Rs.19,22,30,885 was collected

towards property tax (current + arrear). As per the Annual Account

(G1.Deposits – 021301), an amount of Rs.46,65,940 only was shown

as Library Cess collections. The library cess collected along with

property tax amounting to Rs.1,42,39,324.81 (Rs.19,22,30,885 x

8/108) i.e. eight paise per every Rupee was not remitted to Zilla

Grandhalaya Samstha, Guntur. Early action may be taken for the

remittance of Rs.1,42,39,324.81 to Zilla Grandhalaya Samstha,

Guntur.

ii) An amount of Rs.89,84,008/- was collected towards Library Cess by

the Kurnool Municipal Corporation but no amount was remitted to

Zilla Grandhalaya Samstha, Kurnool. Library Cess collected would

need to be remitted immediately ZGS under intimate to Audit. The

Library Cess collected may be kept in inoperative account and

transferred to ZGS in monthly intervals.


10.2) MC, TIRUPATI - WORKS – EXECUTION OF WORKS RECOVERIES

MADE FROM THE WORK BILLS NOT REMITTED TO THE CONCERNED

HEAD OF ACCOUNTS NEEDS ACTION - Rs. 8,53,304/-

As per G.O.Ms.No: 217 Industries & Commerce (M-I) Dept., Dt: 29-9-2004,

G.O.Ms.No: 11 Finance ( W & P) F – 8 department dt: 29-7-2005 and G.O.Ms.No:

159 R & B (R-3) Dept., Dt: 30-10-2004 the deduction towards Seigniorage fee, VAT

& I.T. etc., respectively were made to Rs. 8,53,304/- from the work bills pertaining to

works executed during the year as detailed below. But the same were not remitted to

the concerned head of accounts. The same would need to be remitted to the respective

heads of accounts and remittance challans produced to audit.

Name of the

scheme I.T. VAT S.F. NAC CMRF

Service

Tax Total

T.T.D.Loan

Scheme

190029 295272 123057 7625 11432 0 627415

Road Cutting

charges

0 0 51546 3771 5657 0 60974

S.S.A.Funds 0 55824 11153 7312 11522 0 85811

Street Foods 0 0 0 0 0 79104 79104

Total 853304


213

10.3) MC, KAKINADA - WORKS – INCOME TAX, SALES TAX,

SEIGNORAGE CHARGES AND NAC ETC DEDUCTED FROM THE WORK

BILLS – BUT NOT REMITTED TO CONCERNED HEAD OF ACCOUNT

Rs.19,14,579.

The following works were executed by the MC, Kakinada for the year 2008-

09 under grant works and the income tax, sales tax, seignorage charges and NAC etc

were deducted from the work bills. But the same were not remitted to the concerned

head of account. Early action would need to be taken to get the amounts remitted to

concerned department under proper head of account.

Sl.

No Name of the grant

Amount deducted towards.

IT Rs. VAT Rs. SC Rs. NAC

Rs.

CMRF

Rs.

1 Rajiv Nagar Bata 463578 827994 413472 26560 31049

2 IKP 29941 44000 16677 1292 1938

3 Water works 10183 14665 32 462 691

4 NSDP 8870 15850 7335 396 594

Total 511572 902509 437576 28710 34272

(Para No.35 of MC, Kakinada AR for 2008-09)


The Urban Local Bodies provide certain basic civic infrastructure and services

like Road, Drain, Street lights, Water Supply, Conservancy and solid waste


for economic development and social justice. To fulfill all the needs, the total revenue

base needs to be enhanced every year. With the raise in demand for services, the

functionaries need to have effective financial management skills and accountability

practices.





ready and should be produced to Audit for verification. Then only the transparency in


judged.


of all the Local Bodies and Urban Bodies in the maintenance and production of

records to audit are not properly being discharged. Thereby, the main access to clear

the doubt of transparency in public expenditure has not been availed. In spite of all

these guidelines and instructions, the DDOs of all local and urban bodies have failed

to maintain the records and to produce the same to Audit when ever the local teams

visited their institutions. Under the category of non – production of records to the

214

Audit, the major part is in works and the related records such as M.book, estimate file,



individual ARs of the concerned institution and their details are furnished here under.

Further it is a surprise to note that the heads of the institutions could not explain why

the records could not be maintained in the office and produced when ever they are

being demanded by the Audit Parties and other agencies during their local visits.



occur in the institution. Though the provisions under Rule 6 of A.P. State Audit Rules,

2000 are clear that the onus for production of records to audit lies with the Executive

Authority of the institution, in the following cases the said rule is not complied with

as they have failed to furnish various records to audit. As a result of such

inaccessibility to the records, several audit objections were pointed out in various ARs

of the concerned institutions. Records like M. Books, connected files, vouchers in

which crores of rupees transacted in many institutions form the major chunk of audit

objections under the category of non production of the records. Transactions relating

to the purchase of various contingent articles, goods etc., were not accounted for in

stock registers and produced to audit. Remittances made to the different departments

etc for which neither the acknowledgements nor any evidence produced in audit also

form part under this category. Though several half margin letters were issued for

production of the required records, the Executive Authorities did not comply with and

resulted in inaccessibility of the records and raising of paras to that extent.

A Consolidated Statement No.3 (2) of showing the audit

objections on Non-production of records is appended to the report from which it

could be seen that an amount of Rs.8332.37 lakhs was pointed out in 250 Audit

Paras.

11.1 GHMC, ALWAL - CASH RECEIPT BOOKS – (MISC.) NOT

PRODUCED.

As could be verified from the money value form register maintained in

the GHMC circle it was noticed that the following cash receipt book issued to the

Bill-Collector staff as noted against each for collection, but the receipt books were not

produced to Audit for verification in spite of several times reminded . It is a serious

lapse, and suspicious that there is any mis-appropriation.

In absence of receipt

books amount remitted to chitta could not be verified action would need to be taken to

produce the receipt books.

Sl.No. Name of the bill collector S/S Book No.

1 P.Krishna Chary, PH Worker 816

(Para No.12 of GHMC, Alwal Circle AR for 2008-09)

215

11.2 MC, GUNTUR - WORKS EXECUTION OF WORKS CONNECTED

PAID VOUCHERS ESTIMATES AND M.BOOKS-NOT PRODUCED

EXPENDITURE INCURRED RS.7,10,06,399 HELD UNDER OBJECTION:

During the course of audit, the paid vouchers, estimates and connected

measurement books pertaining to works executed as detailed below were not made

available for verification in audit to certify the genuineness of the expenditure

incurred.

The connected measurement books as prescribed in the

paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code

volume-I would need to be produced for verification in audit to certify the

genuineness of the expenditure incurred in the absence of the connected measurement

books as prescribed above, detailed designs and estimates as prescribed vide Para

No.173 of A.P. PWD Code and completion report as specified vide Article 181 of

A.P. Financial Code Vol.I and Para 216 to 218 of A.P. P.W.D code, the genuineness

of the expenditure incurred and payment made could not be certified and admitted in

audit. Hence, the same would need to be produced for verification in audit. The

voucher wise details are mentioned in the original para furnished to the

Commissioner, Municipal Corporation, Guntur.


11.3 GUNTUR MUNICIPAL CORPORATION – TOWN PLANNING

SECTION – NON-PRODUCTION OF B.P.S APPLICATIONS ALONG WITH

REGISTER – NEEDS EARLY ACTION FOR PRODUCTION:

During the course of audit, it was noticed that an amount of

Rs.6,53,56,722/- was collected towards building penalization scheme during the year

under report. But the connected building penalization scheme applications along with

the Register were not produced to audit. Due to non-production of the building

penalization scheme applications along with the register, it could not be verified

whether the B.P.S. amount was correctly calculated and collected. Hence immediate

action would need to be taken to produce the building penalization scheme

applications along with register to audit for verification. Loss, if any, caused in this

regard would need to be taken to collect and credited to Municipal Funds and produce

challans to audit.


11.4 MC, GUNTUR - PUBLIC HEALTH SECTION - MAINTENANCE OF

VEHICLES - LOG BOOKS NOT PRODUCED-EXPENDITURE INCURRED.

Rs.79,13,021/-

The following are the important registers to be checked in audit of bills

relating to maintenance of vehicles in public health section.

1.Log Books 2)Registers showing the repairs, replacements etc., 3)Register showing

the cost of petrol, Oil etc., 4) Register of inventory or equipment 5) Hire charges

216

payment register 6) Register of old parts collected after replacement 7) Register of

accidents.

1) Log Book: During the course of audit due to non-production of these books, it

could not be verified in audit whether the following procedure was followed.

1) That all the entries in the relevant columns in the Log Books were made.

2) That the entries in log books were noted by the officer who used the vehicle in

his own hand writing the mileage at the start and at the completion of their

trips after verifying kilometers.

3) That sufficient particulars were recorded regarding movement and purpose to

indicate the journeys were on official business.

4) That the log book in respect of each vehicle was closed at the end of the month

and a summary prepared in the log book showing details of duty and non-duty

journey performed during the month in the prescribed proforma.

5) That the quantity of petrol diesel oil purchased has been entered in the log

book of the respective vehicle.

6) That the hire charges collected as per hire charges payment register have been

entered in the concerned log books.

7) That the log book was scrutinised personally by the authority concerned once

in a month and his signature appended there in.

8) That the log books was written in the prescribed proforma with full details


A) REGISTER SHOWING THE REPAIRS, REPLACEMENTS, SPARE

PARTS ETC

Due to non-production of these registers, it could not be verified in audit whether

the following prescribed procedure was followed.

a) That the voucher No. and date and nature of repairs etc. together with amount were

noted in the appropriate columns of the register.

b) That in the case of replacement etc. the old parts were disposed off in public

auction noted and the sale proceeds credited to municipal funds

c) That in case of purchase of spare parts, the rules relating to the invitation and

disposal of tenders have been observed.

B) REGISTER SHOWING THE COST OF PETROL, OIL, ETC.,

Due to non-production of this register, it could not verified in audit whether the

following prescribed procedure was followed or not.

a) That the details of expenditure incurred towards cost of petrol etc. have been

entered with reference to the voucher No. and date and the amount covered for the

same.

b) That the consumption of the petrol, oil etc. date wise has been entered therein.

c) That in respect of the contingent bills for the supply of petrol/diesel oil, the

following certificates have been recorded by the authority concerned on the bills.

Certified that quantities purchased have been entered in the log book of the

respective vehicle.

217

Certified that necessary recoveries under rules have been made from the

parties concerned using the vehicles for non-duty journeys and the amounts credited

to the institution.

d) That the mileage run by the vehicle during a particular period as per log book was

in accordance with the issues of petrol and oil shown in this register.

e) That the propulsion charges or cost of fuel etc., received if any from the persons

who used the vehicle on non-duty have been entered in this register and a receipt to

that effect has been issued to the parties.

f) That the register was periodically checked by the concerned authority and a

certificate to that effect has been recorded.

C) REGISTERS OF INVENTORY OF EQUIPMENT

Due to non-production of this register, it could not be verified in audit whether

the following prescribed procedure was followed or not.

a) That the nature of equipment purchased has been entered in this register together

with the date of purchase and price etc, as per voucher.

b) That the inventory of equipment has been checked by the concerned authority

every month and a certificate to that effect has been recorded there in.

c) That the loss if any, arising out of negligence or fault of any person has been

recovered and credited to the funds.

An amount of Rs.79,13,021-00 was incurred towards Petrol/Diesel oils during

the year as detailed below since the connected aforesaid records and registers were

not produced, the genuineness of the expenditure incurred could not be admitted in

audit.

11.5 WARANGAL - HUGE AMOUNTS WERE PAID TOWARDS

SANITATION- NON PRODUCTION OF FILES RELATED AMOUNT HELD

UNDER OBJECTION RS.6,33,55,036-00

On verification of Annual Account of Municipal Corporation Warangal for the

year 2008-09, it is noticed that huge amounts were paid towards sanitation. But the

related records and files were not furnished to audit.

The amounts were paid as follows as per Annual Account.

a. Private Sanitation Rs.5,94,77,335-00

b. Special Sanitary Arrangements Rs. 38,07,611-00

c. Sanitation Rs. 70,090-00

-----------------------------

Total: Rs.6,33,55,036-00

-----------------------------

The record relating above amounts were not furnished to audit till the close of

audit. In the absence of the above records the correctness of the amounts paid is not

certified in audit. Hence, the amount is held under objection.

(Para No. 11(10) of MC, Warangal AR for 2008-09)

218

11.6 MC, KAKINADA - WORKS – EXPENDITURE INCURRED ON

VARIOUS WORKS CONNECTED, ESTIMATION, M. BOOKS AND FILES

NOT FURNISHED Rs.2,10,54,021 + Rs.47,47,615/-

During the course of audit for the year 2008-09 a few of the connected records

relating to general fund works were furnished for audit after issuing half margines

repeatedly.

Most of the estimates, M. Books as shown below audit despite of issuing as

many half margin letters which is irregular. In the absence of the same the

expenditure incurred on them in held under objection.

Sl.

No. Vr. No & dt Contents

Amount

(Rs.)

1 2/2.4.08 Collection and supply of the materials for the

work arrangements of furniture in UPADI,

APUSP scheme in Municipal ELe school in

Ramarao pet 36th

ward.

292351

2 5/4.4.08 Maintenance of BT Road in AE in section with

Hot

159302

3 6/4.4.08 Repairs to CC drain 203517

4 8/4.4.08 Formation of gravel road to revenue colony in

continue to saibaba temple street in Sanjay

nagar.

82601

5 9/4.4.08 Improvement of Nookalamma temple

street from cenema road to II with police

station.

120287

6 9/4.4.08 Laying of CC roads to heavy street near boar

wells in Kotha Kakinada, 7th

division.

267694

7 14/4.4.08 Urgent repairs to bloyars and roofens of market

shet in 21st division.

83236

8 16/4.4.08 Urgent repairs to colaps of the east side

compound wall of Vijya buried ground.

73988

9 18/4.4.08 Construction of pedestral and 1st land for Hon,

ble Ex-minister P. Padmanabha statue at

Kalpana centre.

80528

10 72/9.4.08 Providing gravel road for Rajiv Gruha Kalpa

colony in Sanjay nagar R.K.

364395

11 78/10.4.08 Laying of CC road to L shape road to

Bhashyam public school vide in

santhinagar of 7th

division.

392296

12 79/10.4.08 Formation of BT road in from of along

building in municipal corporation provi

311996

13 82/11.4.08 Providing heavy dust and gravel formation to

ayodhyanagar Rd No.2 in 9th

division.

207092

14 138/24.4.08 Construction of RCC culvert in 25th

division. 113670

15 139/24.4.08 Urgent repairs to pragati college road from

godarigunta road to DSP office road junction.

82354

219

16 420/27.6.08 Repairs to school at ladies club. 4385

17 412/27.6.08 Labour charges for material supply of

construction drain to north side nookalamma

temple.

5845

18 397/25.6.08 Construction of culvert existing drain to

extand gate to municipal corporation grills high

school indiranagar 5th division.

19078

19 284/2.6.08 Collection supply of materials for the work

laying of cc road at public

Road in Rajendra nagar of 4th

ward

173938

20 285/2.6.08 Labour charges for the work laying of CC road

at public litren south side at Rajendra nagar 44th

ward.

79435

21 286/2.6.08 Construction of cc drain to cross roads in

srinagar, 5th division.

86129

22 287/2.6.08 Laying of CC road in Iitulavasteet in 31st

division.

261855

23 1210/19.3.09 Laying of CC road and CC drain from

D.No.59-17-9 to 59-5-28.

71168

24 1200/16.3.09 Balance work completed in community hall at

Mallaya agraharam in 43rd

division.

49244

25 1201/16.3.09 Laying of CC road and construction of CC

drain in 17th

division

439973

26 1202/16.3.09 Urgent repairs to pragathi college road from

DSP office road junction to

82169

27 1207/19.3.09 Formation of 9th

division. 71106

28 1208/19.3.09 Construction of CC drain on south vide of

23rd

division.

83504

29 1209/19.3.09 Construction of CC drains on north side of

chikkulavari street from D.No.53.5.16 to

53.5.19 23rd

division.

87646

30 1211/19.3.09 Construction of CC drains in south side of

street from Ramalayam to yanam road 23rd

division.

86611

31 1212/20.3.09 Laying of CC roads and construction f CC

drain water drain on west side of 2nd

D.No.59.20.81

432030

32 1213/3.07 Construction of memorial at Yellavari yulu

amarao road reading room in G. Nagar in 43rd

division.

280282

33 1214/3.07 Construction of veturnery hospital building in

kunukulavari street of 21st division.

350501

34 1215/3.07 Laying of CC roads and construction of CC

drain and RCC culverts in ramana street in 18th

division.

418253

35 1233/26.3.09 Construction of CC cuver drains with RCC

culvert of Ashok nagar 49th

division.

82542

220

36 1236/30.3.09 Construction of CC drain and culvert at

Raghunaidu street west side from Rajari street s

29th

division.

39905

37 1237/30.3.09 Provident benefits to newly construction G+2 84564

38 661/4.9.08 Cost for enjoying SHP motor to PVP AE 4036

39 825/17.11.08 Urgent repairs to drain at Venki konda vari

street in 3rd

division.

32332

40 860/26.11.08 Improvements to Jawahar street from

Achutaramayya street towards surya rao peta.

635875

41 1147/3.3.09 Providing CC surface road and construction of

Cc drain in 30th

division.

528422

42 1159/3.3.09 Repairs to providing of CC road to in 38th

division.

2.27.709

43 110/3.3.09 Providing position walls and to new office

in municipal office.

110640

44 1167/3.3.09 Improvements to nookalamma street from

Jawahar street to up to for 42 division.

500000

45 1168/3.3.09 Laying of CC road from D.No.47.1.8/11 to

D.No.47 from medical public health 14h

division.

499808

46 1169/3.3.09 Construction of CC drain and RCC culvert in

Venkateswara Nagar of 12th

division.

274220

47 784/17.11.08 Providing painting to traffic 82154

48 785/17.11.08 Providing paint 51504

49 786/17.11.08 Construction of CC drain on north side of 1st

cross road in Sri rama sar 3rd

division.

47724

50 787/17.11.08 Laying of CC road to Bhashyam public school

north side 1st at santhinagar 7

th division.

89264

51 788/17.11.08 Providing sub grade for widening portion to

Nookalamma temple from prakasam steet.

497718

52 789/17.11.08 Formation of part ways into CC inter locking

tiles in Raja tank.

840259

53 790/17.11.08 Maintenance of B.T roads in JN poor hot line

process

223260

54 791/17.11.08 Construction of RCC slabs culvert and

construction of CC drains raising to old drains

in 26th

division.

56978

55 792/17.11.08 Laying of CC payment and construction of

CC drains in Kohtapeta market 36th

division.

740677

56 793/17.11.08 Construction of Parapet wall along the bund

on water side goat club from Ashram public

school

246959

57 794/17.11.08 Construction of compound wall to goat club

east side from prakruti chikitalaya 1st division.

246959

58 795/17.11.08 Construction of RCC retining wall and boating

sittings in back club.

325537

59 796/17.11.08 Repairs and maintenance to RCC slab culvert

and CC drainin 31st division.

154641

221

60 797/17.11.08 Laying of CC road from existence CC road

towards was as pullaari street in 43rd

division.

372677

61 798/17.11.08 Foration of gravel road along WFCCL road in

2nd

division.

169852

62 799/17.11.08 Construction of drains and culvert to Bhangarai

Naidu street from maintain

326879

63 880/17.11.08 Construction of sulabha toilets in

Jagannaikpur

307888

64 801/17.11.08 Repairs and maintenance to 34th

division 118814

65 802/17.11.08 Maintenance of maternity centre 2 roos

buildings at Rechelpeta.

225071

66 803/17.11.08 Fabrication and eventrus of goat club main

gate.

89281

67 804/17.11.08 Collection and supply of the materials for the

work to LB nagar main road from pithapuram

road in 44th

road

339555

68 805/17.11.08 Labour for the work urgent repairs to LB nagar

main road to MES road in at 44th

ward.

151388

69 806/17.11.08 Construciton of CC drains and RCC culvert in

Bhanuvari street near padmanabhanagar SN pur

in 24th

division.

453553

70 807/17.11.08 Laying of CC road surface and construction of

CC drains in sa 44th

division.

155930

71 808/17.11.08 Providing water bund jagannadha road in

ALlamraju nagar on 7th

division.

121504

72 809/17.11.08 Laying of CC roads to 1st road in Sivareddy

nagar in JNpuram at 22nd

division.

255323

73 810/17.11.08 COnstructionof track payments around the goat

club.

78390

74 878/17.11.08 Providing CC surface and construction of CC

drains in Ankannavari street in 30th

division.

200000

75 1018/21.1.08 Widening MC Louthern High school from

Santhi Bhavan junction upto Bulusu

Sambasivamurthy it in and opp

225851

76 1013/12.11.08 Construcitonof drainage facility in Kakinada

municipal corporation office.

231293

77 1002/9.11.08 Laying 100 MM thick surface to Jyothivani

sandal construction of 22 mm CC drain

modality it in 29th

division.

87819

78 1004/9.11.08 Construciton of compound wall to municipal

corporation elementary school south side at

ramarao peta in 41st division.

81594

79 995/2.1.09 Improvements of Burrial ground at Yallavari

cheruvu.

424086

80 946/2.1.09 Laying of CC roads CC drain storm water drain

on west side 1st road from B.No.59-20-6/3 in

2nd

division.

301605

81 947/2.1.09 Laying of CC road and construction of culvert

at vari street in 23rd

division.

323211

222

82 948/2.1.09 Laying 100 MM thick CC road from towards

east RU Jayaraju street in Innivasa nagar 50th

division

86905

83 950/2.1.09 Maintanance of toilets

Community toilets 32 division.

81891

84 951/2.1.09 Laying of 10 mm CC surface to street and

veeravani and construction of culverts in 39

division.

392715

85 953/2.1.09 Providing ornaments MC snill wall at sramika

pushakana wear temple.

364888

86 957/2.11.09 Wideling with foot path to pathnudu steet from

50 buildings in to venkatnagar in 3rd

division.

172367

87 958/2.11.09 Wideling with foot path to pathnudu steet from

50 buildings in to venkatnagar road in to MES

road in 3rd

division.

241013

88 959/2.11.09 Formationof gravel road along drain from

sivalayam temple to towards north in 42nd

division.

100190

89 960/2.11.09 Construciton of CC draina t RCC cross culvert

at industrial estate lalbahadur nagar

129860

90 961/2.11.09 Providing side bey one path work to municipal

college ones hostel north side road 4th

division.

51042

91 962/2.11.09 Formation of metal road from existing BT road

to totwards to went plant in

84129

92 963/2.11.09 Formation of sub megried low laying roads in

path and demmulapeta roads in 11th

division.

81935

93 964/2.11.09 Construciton of community hall at dairy form

centre SC area.

306448

94 965/2.11.09 Providing quantial roads at gandhinagar,

Bhanuvari street south cross road 24th

division.

85001

95 966/2.11.09 Proding roads to kuntha dulipete and

Bhanuvari street northside 3rd

division.

85544

96 967/2.11.09 Construciton of CC storm water drain along

MES road from ashok nagar.

88417

97 968/2.11.09 Construcitonof culvert at prasanthi college road

by the side of satya public school.

85114

98 969/2.11.09 Laying at CC road to culvert from

janmabhoomi park west side road in vallabhai

patel in 5th

division.

440588

99 970/2.11.09 Formation of metal road and construction of

CC drain in durgayya thota in 39 division.

231689

100 971/2.11.09 Construction of community toilets at Nagaraju

pet community hall in JN pur 26th

division.

360375

(A) Total Rs. 21054021

101 Vr. No Month / Year Amount Rs.

102 952 1/09 302067

103 83 21/08 51070

104 74 ” 354800

105 1 ” 200000

223

106 131 ” 114384

107 132 ” 124722

108 133 ” 122744

109 134 ” 118879

110 135 ” 111687

111 294 ” 22971

112 319 ” 293635

113 321 ” 55695

114 322 6/08 47725

115 323 ” 46725

116 396 ” 51000

117 630 9/08 112091

118 631 9/08 113305

119 632 ” 112586

120 633 ” 110249

121 634 ” 109439

122 672 ” 109889

123 673 ” 108091

124 674 ” 107192

125 675 ” 111238

126 775 11/08 61925

127 872 ” 224773

128 873 ” 218920

129 875 ” 155000

130 876 ” 145000

131 949 ” 78887

132 956 1/09 112988

133 955 ” 115472

134 1003 ” 298999

135 1170 3/09 98157

136 1198 ” 83160

137 1199 ” 142150

(B) Total Rs. 4747615

(Para No.54 & 55 of MC, Kakinada AR for 2008-09)

11.7 MC, KURNOOL - VACANT LAND TAX – DEMAND REGISTER AND

CONNECTED FILES NOT PRODUCED

During the course of audit on the accounts of VLT – on verification challan registers

for 2008-09, an amount of Rs.23,20,384/- was collected under Vacant Land Tax and

the same was adjusted in chitta.

As per Hyderabad Municipal Corporation Act 1955, Vacant Land Tax

has to be collected at the rate of 0.5% on the registration value of the Land from the

date of layout or in the absence of layout from the year 1994-95 to the date of

construction of building. But, the vacant land tax registers and connected files

and documents were not produced to audit for verification inspite of half margin

letters issued.

224

In the absence of the above said files, Registers and documents, the

correctness of the amount of Rs.23,20,384/- collected during 2008-09 cannot be

certified in Audit. Hence action would need to be taken to produce the above said

records to audit for verification.

(Para No.48 of MC, Kurnool AR for 2008-09)

11.9 KURNOOL - PUBLIC HEALTH PURCHASE OF SANITATION ITEMS

FOR USAGE OF PUBLIC HEALTH SECTION CONNECTED SANCTIONED

PROCEEDINGS STOCK REGISTER QUOTATIONS NOT PRODUCED TO

AUDIT Rs.3,44,441/-.

During the course of audit as verified from the cash book an Amount of

Rs.3,44,441/- was drawn through vouchers which were noted against each (Details

mentioned in original para) in selected months and paid to various agencies for

purchase of sanitation it material.

But the connected quotation file sanctioned proceedings and stock and

issue register were not produced to audit.

In the absence of the same, the correctness of the payment made and

utilization, balance of material could not be verified in audit.

Hence the amount was held under objection. Action would need to be taken to

produce the same to audit for verification.

(Para No. 58 of MC, Kurnool AR for 2008-09)

12. MIS-APPROPRIATIONS


the audit is annexed vide statement No.3 (2). A total number of 19 cases involving an

amount of Rs.2.50 lakhs were pointed out in the relevant ARs.

Cases of misappropriations of money noticed in audit were pointed out in the

Audit Reports concerned. A few of such cases are reproduced below.

12.1 GVMC, VISKHAPATNAM - RECEIPTS - MISAPPROPRIATION OF

CERTAIN RECEIPTS PAID BY THE TAX PAYERS IN SAUKARYAM

SECTION - NEEDS ENQUIRY AND APPROPRIATE CRIMINAL ACTION

ON THE PERSONS RESPONSIBLE - RS. 3,30,45,264/-.

As verified from the verification Report furnished by the Dist Audit Officer,

State Audit, Visakhapatnam, it was noticed that the collections received in the

Sowkaryam centre were not fully remitted into the Bank account. The operator who

was in-charge of the collection counter has manipulated the account figures generated

in the Bank Scroll duly entering into the computer server by manipulating the

computer software and changing the figures has misappropriated an amount of Rs.

3,30,45,264/-.

225

The details that could be analyzed from the computer back-up data for the

period from 2003-2004 to 2010-2011 are as detailed here under. The data for the

period from 2000-2001 to 2002-2003 could not verified and analyzed as the

information was not properly stored. The year wise, Head Wise and User ID wise

differences between accounts figures and Revenue figures are arrived and elucidated

in the statements enclosed for the period from 2003-04 to 20011-12. The total amount

tentatively arrived, that was found to be misappropriated was Rs.3,30,45,264/-

Statement Showing Year Wise And Head Wise Differences

Property Tax Transactions

Year Revenue Amount Accounts Amount Difference Amount

2011-2012 1039478 87586 951892

2010-2011 15086149 1319244 13766905

2009-2010 7243791 827966 6415825

2008-2009 261429 107055 154374

2007-2008 3122768 2140351 982417

2006-2007 6393031 3390288 3002743

2005-2006 165575 82585 82990

2004-2005 4573775 3961287 612488

2003-2004 115371 99572 15799

Total 38001367 12015934 25985433

Vacant Land Transactions


2011-2012 141286 22786 118500

2010-2011 1712909 344631 1368278

2009-2010 863481 119169 744312

2008-2009 39998 10698 29300

Total 2757674 497284 2260390

Bulk Semi Bulk Transactions


2011-2012 143549 17234 126315

2010-2011 2127032 168125 1958907

2009-2010 355817 64716 291101

Total 2626398 250075 2376323

Shop lease rent Transactions


2011-2012 29834 5566 24268

2010-2011 1005225 165227 839998

2009-2010 507670 139002 368668

Total 1542729 309795 1232934

TAP Transactions


2011-2012

2010-2011 3060 1440 1620

2009-2010

226

2008-2009 43400 31536 11864

Total 46460 32976 13484

D&O Trade Transactions


2011-2012 42140 10140 32000

2010-2011 1146880 127180 1019700

2009-2010 156190 31190 125000

Total 1345210 168510 1176700

ABSTRACT

Taxes Revenue Amount Accounts Amount Difference Amount

Property Taxes 38001367 12015934 25985433

Vacant Land

Transcations 2757674 497284 2260390

Bulk Semi Bulk

Transactions 2626398 250075 2376323

Shop lease rent

Transactions 1542729 309795 1232934

TAP Transactions 46460 32976 13484

D&O Trade

Transactions 1345210 168510 1176700

Grand Total 46319838 13274574 33045264

In some cases, as detailed in the Statements enclosed in respect of Bulk Water

supply, the original values i.e pre-modified values could not be retrieved from the

data. The collection figures could not be compared due to the deletion of actual

demand values from the system. The difference amount of Rs.3,30,45,264/- can be

construed as embezzled by the staff who were involved in the process of collection

and remittance of the taxes to the bank. Effective steps may be taken not to ensure

that such security lapses in the software being used by GVMC are plugged

immediately and to ensure that there are no security lapses in the software being used,

which will enable people in committing such frauds.

The computer soft ware and other applications are now in operation in GVMC

for various purposes Viz property Tax, Water Tax, D&O Trades, Building license fee

and other receipts were developed long back. The said applications through which all

the operations were carried out was not equipped with adequate security features. The

system figures have never been reconciled and cross checked with other data available

by the revenue authorities. Despite computerisation, there is a need for continuous

reconciliation of collection figures with bank pass book and with that of revenue

figures on a daily basis. But the revenue authorities have not made any effort to verify

the amounts collected under different heads. The revenue authorities have totally

depended on the computer data and in the absence of periodical reconciliation and

blind & total reliance put on the data given by the person handling sensitive areas

might have paved the way for embezzlement of GVMC funds as there were no

adequate cross checks or proper internal controls.

227

The account section is supposed to verify the correctness of the accounts

figures with that of revenue figures and reconcile with bank statements and then only

finalize the annual account. But the account section has not cross checked the

collection figures with revenue data available in the system. The amount reflected in

the computer data has been taken as correct and it is taken into account and shown as

receipts under different heads. The lack of coordination of various sections has given

wide scope to perpetuate such fraud and gone un-noticed for such long periods of

time.

In Saukaryam centre, the concerned in-charge has never made any effort to verify the

bank scroll with the individual figures with office copy of receipts generated in the

system which was issued to the tax payer. The in-charge has simply verified total

figure in bank scroll pay in slip amount to be remitted into bank account in the centre

premises itself. Had they verified the said receipts with bank scroll, the manipulation

of the bank scroll figures would have been detected earlier and the loss caused to the

corporation funds would have been averted. Thus there was a gross negligence of duty

by the in-charge of Saukaryam centre. It is incomprehensible as to why the

supervisory officials have been indifferent in discharging their minimum supervisory

checks. It is Sine-quo-non to bring such serious matter to the notice of the authorities-

concerned including Commissioner. The responsibility for this loss caused to the

funds of GVMC lies with the section authorities, besides the persons directly involved

in the defalcation/fraud.

Further it is also informed that the verification of the said collection amounts

and revenue figures are not exhaustive, but still inclusive as the verification was

limited to the extent of data that was available. Hence a detailed inquiry may be

ordered to arrive at the exact loss caused to the Municipal Corporation.

Hence, the matter is brought to the notice of the Government as per Article

294 of A.P Financial Code Volume I and as per G.O.Ms. No. 25 Finance Department

(services Dt: 3-2-2004). As per the instructions of the Government in the above G.O

the Commissioner is requested to lodge a police compliant against the responsible

persons for the loss caused to the Municipal Corporation. Effective steps need to be

taken to recover the loss caused to the Municipal Corporation. To avoid further

recurrence of this kind the following measures are to be taken to plug the leakage of

various revenues receivable by the Corporation.

1. To rectify the defects in the software which rendered the

defalcation/emblazement of cash possible

2. To ensure information security of collection mechanism and the

software by getting information systems audit done periodically.

3. To recover the embezzled amounts of Rs.3,30,45,264/- from the

responsible persons by following due process and

4. To take administrative action against the persons who indulged in

defalcation/embezzlement in collection of cash and its remittance in the bank.

(Para Number : 68 of GVMC, Visakhapatnam AR for 2008-09)

228

13. EXCESS PAYMENTS

It was observed in audit that in several cases, excess payments were made due

to either.

(i) Incorrect calculations or

(j) Excess totaling in Bills or

(k) Admission of inadmissible claims or

(l) Lack of knowledge of Government instructions.

A Consolidated Statement No.3 (2) of showing audit objections on Excess

paynebts is appended to the Report from which it could be seen that an amount of Rs.

74 lakhs was pointed out in 74 Audit Paras.

13.2 MC, GUNTUR - ENGINEERING SECTION ESTABLISHMENT – SRI

KSHATRI BABU, NON P.H. WORKER – SANCTION OF EXTRA

ORDINARY LEAVE – PERIODICAL INCREMENTS AND S.A.P.P. I NOT

POSTPONED – NEEDS REVISION AND RECOVERY :

As per page 19 of service register volume I of Sri K. Babu, Non P.H., worker

was sanctioned extra ordinary leave for 117 days i.e., from 1-8-02 to 25-11-02. But,

the periodical increments and the appointment to S.A.P.P. I post were not postponed

to the extent of E.O.L., period. The periodical increments sanctioned and

appointment to S.A.P.P. I post may be revised as follows.

Pay Admitted Pay admissible

1-5-02 3650/2650-4850 1-5-02 3650/2650-4850

1-5-03 3750

117 days of E.O.L.)

1-8-03 3750 (after postponing 1-5-04

3850

1-8-04 3850

1-5-05 3950 1-8-05 3950

R.S.P., 2005 R.S.P., 2005

1-7-03 5605/3950-8815 1-7-03 5470/3950-8815

1-5-04 5750 1-8-03 5605

1-5-05 5895 1-8-04 5750

1-5-06 6040 1-8-05 5895

1-5-07 6195 1-8-06 6040

1-5-08 6350 1-8-07 6195

1-8-08 6350

S.A.P.P. I S.A.P.P. I (after postponing EOL)

3-5-08 6505/4050-9050 27-8-08 6505/4050-9050

1-5-09 6675 1-8-09 6675

The excess payment made to the individual may be worked out and recovered

from the responsible persons.

(Para No.90 of Engg. Section, MC, Guntur AR for 2008-09)

229










was noticed in audit that the funds of Municipal Corporations were several times

incurred without adhering to the laid down principles leading to the wasteful

expenditure of public money. All the cases of such wasteful expenditure observed in

the audit of Municipal Corporations for the year 2008-09 were expenditures that were

avoidable, extraordinary and lacked proper planning.

A Consolidated Statement No.3 (3) of showing audit objections on Wasteful

Expenditure is appended to the Report from which it could be seen that an amount of



CASH/STORES

Several instances of Cash / Stores unaccounted for were noticed, a consolidated

statement of cases of unaccounted for cash / stores a Consolidated Statement of

Instances of cases unaccounted for is annexed in the Statement No.3 (3) in which 8

paras were raised.


According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I





transmission to the Grant Releasing Authorities concerned.

In G.O. Ms. No. 507, Fin (TFR) Deptt., dt. 10-4-2002, Government have



Autonomous Bodies and other Grant-in-Aid institutions.




230

As the aforesaid Government orders are not being observed by the Executive

Authorities resulted in heavy Pendency of Utilization Certificates to be furnished to

the Grant Releasing Authorities. Such cases are reported in the ARs of Municipal

Corporations shown in the statement appended herewith.

A Consolidated Statement of cases of Pendency of Utilization Certificates is

appended in Statement No.3 (3) to the Report from which it could be seen that an

amount of Rs.0.23 lakhs was pointed out in 3 audit paras.

16.1 GVMC, VISAKHAPATNAM - NON SUBMISSION OF UTILISATION

CERTIFICATES

The utilization certificates in respect of the following Grants released during

the year 2008-2009 have not been furnished to audit for verification and transmission

to the authorities concerned according to Article - 211 - A @ of the A.P. Financial

Code Vol - I, it is the responsibility of the Grant receiving authorities to send the

utilization certificate in the Proforma prescribed duly setting the same certified by

the District Audit Officer, State Audit. But the utilization certificates have not been

furnished even after completion of the audit.

Name of the

Grant

UCs due to be

submitted

UCs submitted Balance of UCs to be

submitted

No Amount No Amount No Amount

NOAP 1 170316125 - - 1 170316125

Sec. Education 1 41058389 - - 1 41058389

Ele. Education 1 48492850 - - 1 48492850

M.P. Lads 1 5075000 - 1 5075000

ACDP 1 550000 - - 1 550000

APUSP 1 4850000 - - 1 4850000

JNNURM 1 623071140 - - 1 623071140

MEPMA 1 22526017 - - 1 22526017

Solid Waste

Management

1 155123000 - - 1 155123000

JNNURM(

water supply)

1 613339997 - - 1 613339997

(Para No. 89 of GVMC, Visakhapatnam AR for 2008-09)

16.2 KURNOOL - NON – SUB MISSION OF UTILIZATION CERTIFICATES

According to article 22 (A) of the Andhra Pradesh financial code volu.

I it is the responsibility of the grants recovering authority to furnish utilization

certificates to the grants releasing authority . The utilization certificates would need

to be furnished to the District Audit Officer, State Audit, Kurnool in the proforma

prescribed for counter signature. But the utilization certificates for no accounts were

furnished to audit for verification of the authority concerned.

231

Name of the Scheme Grant Expenditure

Tugabdra Puskaralu 44994636 40786128

STSRG 642706 979798

NOAP 40335763 43133650

DFID 0 1635819

ILCS 1654996 3990832

CC Roads & Drans 9356287 8710137

TFC 15365143.61 19285210

TOTAL 112349531.61 118521574

(Para No. 89 of MC, Kurnool AR for 2008-09)


-Nil-

18. OTHERS

A Consolidated Statement No.3 (3) showing audit objections on others is

appended to the Report from which it could be seen that an amount of Rs.53.04 lakhs

was pointed out in 126 Audit Paras .

18.1 GHMC CIRCLE-IV SARDAR MAHAL TAX SECTION - PROPERTY

TAX COLLECTION NOT ACCOUNTED IN THE BOOKS OF ACCOUNTS-

NEEDS ADJUSTEMENT –Rs.107967/-

On verification the following amounts collected by the bill collectors through

cash and cheques are entered in the list of collection of Taxes But the following

amounts collected for the year 2008-09 through receipts books shown against each are

not entered in the list provided by the authorities concerned.

Sl

No.

Name of the B. C.

Code Book No. Receipt No.

Amount

(Rs.)

1 112 1661 1 3677

2 121 4150 42 1440

3 108 4151 11to 18 &

24,25

23276

4 136 4155 19 2031

5 011 1529 75 1050

6 116 88 1 to 7 7995

7 1522 85 578

8 1549 20 3360

9 108 4151 87 61830

10 5436 1 2730

Total 107967

232

In the absence of the above information the correctness of the amounts

collected by the bill Collector could not be verified.

Therefore immediate action would need to be taken to get adjustment

into GHMC books of accounts under intimation to Audit.

18.2 GHMC, ALWAL - REGISTER OF IMMOVABLE PROPERTY NOT

MAINTAINED.

a)The Register of immovable property, register of roads etc., was not

maintained and produced during the audit for verification whether the roads on which

the expenditure as incurred were actually belonged to the Municipal or not.

b)The register of land and building was also not produced to audit to verify the

details of land acquisition and in case of donation if any, the related title deeds are not

made available.

In the absence of the above, it could not be verified in the audit whether the

expenditure incurred is admissible or not. The consequential loss if any will have to

be made good by affecting recoveries from the person responsible.

(Para No.14 (b) of GHMC, Alwal Circle AR for 2008-09)

18.3 LB NAGAR - BUILDING PERMISSION FEE – BETTERMENT

CHARGES AND DEVELOPMENT CHARGES ON BUILT UP AREA NOT

COLLECTED – LOSS CAUSED TO THE INSTITUTION – NEEDS

RECOVERFY – Rs.1,72,475/-

During the course of audit on Building Permit Files, it was noticed that the

following cases, the G.H.M.C. authorities failed to collect the Betterment Charges and

Development Charges which resulted loss to the institution as detailed below:

Sl.

No

.;

Name of the

individual

Permit No. & Dt. Betterment

Charges

Development

Charges for

Plinth Area

Developme

nt Charges

for Open

Area

TOTAL

1 G. Rangamannar G3/DA/37/2008

Dt.10.09.2008

270

S.Mx100 =

27,000

270 S.Mx100 =

27,000

74 S.M. x

75 = 5550

59550

2 G. Sreenivas G3/BA/38/20085

dt.10.09.2008

270

S.Mx100 =

27,000

270 S.Mx100 =

27,000

74 S.M. x

75 = 5550

59550

3 M. Prapulla Bhai G3/BA/41/2008

dt.15.09.2008

238

S.Mx100 =

23,800

238 S.Mx100 =

23,800

77 S.M. x

75 = 5775

53375

TOTAL 172475

Immediate action needs to be taken to collect the less collected amount

from the concerned person or persons and remitted to the G.H.MC. funds under

intimation to audit.

(Para No. 38 of GHMC, LB Nagar Circle AR for 2008-09)

233

18.4 MC, GUNTUR - WORKS – M. BOOKS – RECORDING & CHECK

MEASUREMENT – INCONSISTENT:

Name of the work: “providing gravel road in A.T. Agraharam 10th

line north side

cross road in Division 28”

Estimate: Rs.95,000/-

M.B. No.91/05-06

Technical sanction No.1498/2005-06 of M.E., Municipal Corporation

Vr.No.550/5-08 – final payment Rs.27,599/-

As seen from the M. Book from page No.1 to 8, the collection and supply of

gravel was recorded by the engineer on 18-3-2006. At page No.1, the D.E.E. check

measured the quantity of collection recorded from page No.1 to 8 on 18-3-2006.

From page No.9 to 11 of M. Book the spreading of gravel was recorded by the

engineer on 16-3-2006 as the date of measurement of spreading was 16-3-2006. The

same was check measured by the DEE on 17-3-2006. (vide at page No.9 the record of

check measurement from page No.9 to 11 was recorded by the DEE himself)

As such, it is clear that the spreading was recorded and check

measured before collection of gravel which was impossible. Loss caused if any due to

the above lapse would need to be worked out and recovered form the persons

responsible.


18.5 MC, KURNOOL - VERIFICATION PROPERTY TAX REMITTANCE –

PARTLY VISIBLE OF THE ENTRIES IN THE REMITTEE CHALLANS DUE

TO FLOODS.

On verification of the PT remittance challan with reference to

cash book and Treasury Passbook it was noticed that amounts mentioned in the

challans, date of remitted and signature of the person who was remitted the amount

and seal affixed by the Bank authorities and signature of the Bank authority and

figures mentioned of the Bank authorities were all are not clearly visible for

verification of the correctness of the amounts remitted during the year 2008-09 due to

floods in Kurnool in 2nd

& 3rd

October 2009.

In the absence of the above if any loss caused due to non visible of the

amount mentioned in the challan would need to be made good from the person or

persons responsible.

(Para No.53 of MC, Kurnool AR for 2008-09)

19. DDS / CHEQUES RECEIVED BUT NOT REALIZED

WITHIN TIME

Demand Drafts and Cheques received in payment of money due to the

Municipalities are to be entered in a Register of Demand Drafts and Cheques

Received and should be sent to the Banks for realization immediately. In the

fallowing cases Demand Drafts received were kept in the files and some of the

234

Demand Drafts were sent to the issuing Banks for revalidation as they had

become state due to their non presentation within their validity period, But

some of them are not received back duly revalidated by the Banks concerned

till the close of Audit.

A statement showing such 2 instances involving Rs.3673.64 lakhs

were pointed out in the audit for the year 2008-09 is appended as Statement

No. 3 (3).

DATE: 12-03-2012

HYDERABAD DIRECTOR

STATE AUDIT

A.P., HYDERABAD.

235

236

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT

OF MUNICIPAL CORPORATIONS FOR THE YEAR 2008-09

Sl.

No.

NAME OF

THE

DISTRICT

DEMAND AS ON

01-04-2009

AUDIT

COMPLETED AS

ON 31-12-2011

BALANCE AS ON

31-12-2011



2 Kakinada 0 1 0 1 0 0

3 Rajamundry 2 1 0 2 1

4 Eluru 2 1 0 2 1

5 Vijayawada 2 1 0 2 1

6 Guntur 0 1 0 1 0 0

7 Nellore 1 1 0 1 1

8 Tirupati 0 1 0 1 0 0

9 Anantapur 2 1 0 2 1

10 Kadapa 1 1 0 1 1

11 Kurnool 4 1 0 1 4 0

12 Warangal 0 1 0 1 0 0

13 Karimnagar 0 1 0 0 1

14 Nizamabad 2 1 0 2 1

15 GHMC 18 1 0 1 18 0

TOTAL: 52 15 0 7 52 8

237

STATEMENT No.2 (1) 1

CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS


Rs.in lakhs

Sl.

No.

Name of the

Mpl. Corpn.

General Account Lighting A/c Ele. Education A/c W.S & Drainage A/c Town Planning A/c

Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment

1 Tirupati 2165.45 2842.27 252.60 249.61 455.82 253.74 48.37529 471.68 1.85784 28.13

2 Kakinada 3933.94 3243.63 265.38 235.32 547.29 313.79 685.1577 710.22 243.925 114.62

3 Guntur 5099.67 4123.39 130.53 471.88 0.00 19.07 692.5542 1242.64 1493.62 94.70

4 Kurnool 2201.29

1854.32 0.00

195.57 601.73

581.81 308.98

319.97 93.54

33.53

5 GHMC Head wise detailes mentioned in Statement No.2 (2)

6 GVMC 22014.44 2870.95 0.30 1983.34 895.51 1141.00 15859.28 24261.54 6428.15 276.89

7 Warangal 3948.32 3417.15 1.15 540.22 0.00 0.00 784.7033 668.20 314.211 74.33

TOTAL: 39363.12 18351.72 649.95 3675.93 2500.36 2309.41 18379.05 27674.24 8575.30 622.20

238


CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS


Rs.in lakhs

Sl.

No.

Name of

the Mpl.

Corpn.

Special Funds Deposits & Adv. Welfare Schemes City Engineering City Project UCD Project

Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment

1 Tirupati 0 0.00 526.7343 618.16 0 0.00 0 0.00 0 0.00 0 0.00

2 Kakinada 0 0.00 0 3136.47 0 0.00 0 0.00 0 0.00 0 0.00

3 Guntur 1695.45 801.86 216.0772 1015.47 828.972 785.84 0 0.00 0 0.00 0 0.00

4 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5 GHMC Head wise detailes mentioned in Statement No. 2 (2)

6 GVMC 0 0.00 11806.01 5984.63 0 0.00 1786.019 8901.16 6244.92 23880.12 1929.84 3022.36

7 Warangal 0 0.00 844.202 606.80 0 0.00 0 0.00 0 0.00 0 0.00

TOTAL: 1695.45 801.86 13393.02 11361.52 828.97 785.84 1786.02 8901.16 6244.92 23880.12 1929.84 3022.36

239


CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS FOR THE

YEAR 2008-09

Rs.in lakhs

Sl.

No.

Name of

the Mpl.

Corpn.

Parks Leisure & Cemetries Public Health (Utility) Sanitation Fund Total

Receipts Payment Receipts Payment Receipts Payment Receipts Payment

1 Tirupati 0 0.00 0 0.00 0 0.00 3450.84 4463.58

2 Kakinada 0 0.00 0 0.00 12485.726 7754.05 18161.43 15508.10

3 Guntur 0 0.00 0 0.00 0 0.00 10156.88 8554.85

4 Kurnool 0.00

0.00 0.00

0.00 0.00

0.00 3205.54 2985.20

5 GHMC Head wise details mentioned in Statement No. 2 (2)

156205.31 196075.79

6 GVMC 0.25416 176.55 1689.585 6064.79 0 0.00 68654.30 78563.33

7 Warangal 0 0.00 0 0.00 0 0.00 5892.59 5306.71

TOTAL: 0.25 176.55 1689.58 6064.79 12485.73 7754.05 265726.88 311457.55

240

STATEMENT No. 2 (2)

GREATER HYDERABAD MUNICIPAL CORPORATION

(Rupees in Lakhs)

REVENUE INCOME BY

ACCCOUNT

REVENUE EXPENDITURE BY

ACCCOUNT

A B C D E F

2008-09 2008-09

1 Tax Revenues 36954.72 1 Establishment Expenses 23303.10

2 Assigned Revenues 17528.11 2 Administrative Expenses 2203.05

3

Rental Income from

Municipal Properties 801.65 3

Operations and

Maintenance 61937.33

4 Fees and User Charges 74395.45 4 Interest & Finance Charges 2236.88

5 Sales & Hire Charges 1381.15 5 Programme Expenses 1885.30

6 Revenue Grants 234.57

7 Income From Investments 5310.87

8 Interets Earned 0.00

9 Other Income 2602.06

Grand Total: 1,39,208.58 Grand Total: 91,565.66

241

STATEMENT No. 2 (2)

GREATER HYDERABAD MUNICIPAL CORPORATION (Rupees in Lakhs)

CAPITAL RECEIPTS BY

ACCCOUNT

CAPITAL EXPENDITURE BY

ACCCOUNT

A B C D E F

2008-09 2008-09

1

Revenue Transfers for Capital

Works 0.00 1

Bridges Fly-overs & Sub-

Ways 1849.60

2 Plan Grants and Contributions 16996.73 2 Buildings 2135.31

3 Borrowings 0.00 3 Furniture & Fixtures 143.66

4 Housing 14962.64

5 Land & Land Improvements 12031.72

6 Machinery & Wquipment 675.90

7 Muliti- Modal Transport 0.31

8 Other Works 11.96

9 Roads & Pavements 47301.37

10 Storm Water Drainage 12227.58

11 Street Lighting 8573.01

12 Vehicles 867.84

13 Water Supply & Sewerage 3729.23

Grand Total: 16996.73 Grand Total: 104510.13

242

STATEMENT No. 3

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT

OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED

FOR THE YEAR 2008-09 (MUNICIPAL CORPORATION)

Rs. In lakhs.

Sl.

No. NAME OF THE CATEGORY No. AMOUNT






6 Non- utilisation of Earmarked Funds 5 0.00




10 Non-remittance of the Deductions / Recoveries

from the Vouchers / Pay Bills Contingent Bills 47 683.95


12 Mis-appropriations 19 2.50




stores 8 0.00


17 Surcharges Certificates- Recovery Pending 0 0.00

18 Others 126 53.05

19 D.D. Cheques received but not realised with in

time 2 3673.64

Total: 857 44449.49

243

STATEMENT 3 (1)

STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09

Rs. In lakhs.

Sl.

No.

NAME OF

THE

DISTRICT

VARIATION IN

ACCOUNT

FIGURES

EXCESS

UTILISATION OF

GRAMTES/FUNDS

DIVERSION OF

GRANTS/FUNDS

NON-

UTILISATION

OF GRANTS

BEFORE THE

LASPSABLE

DATE

MIS-

UTILISATION

OF

GRANTS/FUNDS

NON-

UTILISATION

OF

EARMARKED

FUNDS

NON-

COLLECTION OF

DUES

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Tirupati

0 0 0 0 0 0 0 0 0 0 0 0 13 1181.48

2 Kakinada

1 3.08 2 0 0 0 0 0 0 0 0 0 0 0.00

3 Guntur

0 0.00 2 0 0 0 0 0 0 0 1 0 14 262.98

4 Kurnool

1 0.00 0 0 1 6.00 0 0 0 0 0 0 12 142.83

5 GHMC

5 0.00 1 0 0 0.00 0 0 1 0 3 0 9 17430.70

6 GVMC

3 0.00 1 0 2 0.00 2 0 0 0 0 0 17 81.51

7 Warangal

7 96.15 2 1151.8233 3 14.40 1 35.70 1 1.33 1 0 5 116.02

Total 17 99.23 8 1151.82 6 20.40 3 35.70 2 1.33 5 0 70 19215.51

244

STATEMENT 3 (2)


Rs. In lakhs.

Sl.

No.

NAME OF THE

DISTRICT

ADVANCES

PENDING

ADJUSTMENT

VIOLATION OF

RULES

NON REMITTANCE

OF DEDUCTION

FROM WORK

BILLS/PAY

BILLS/CONTINGENT

BILLS ETC.

NON-PRODUCTION

OF RECORDS

MIS-

APPROPRIATIONS

EXCESS

PAYMENTS

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Tirupati

1 0.00 30 69.15 1 8.53 17 10.88 10 0.97 11 0.95

2 Kakinada

13 0.80 17 10.40 12 24.59 32 454.29 4 0.07 0 0.00

3 Guntur

1 161.91 22 3.52 3 176.96 39 1954.77 0 0.00 21 8.10

4 Kurnool

0 0.00 17 40.68 1 89.84 70 881.47 1 0.00 0 0.00

5 GHMC

5 2.92 80 10698.35 21 252.30 68 4246.97 3 1.46 28 4.93

6 GVMC

2 39.87 18 0.00 3 0.00 11 0.00 1 0.00 3 59.45

7 Warangal

1 27.68 5 48.38 6 131.73 13 784.00 0 0.00 11 0.58

Total 23 233.19 189 10870.49 47 683.95 250 8332.38 19 2.50 74 74.01

245

STATEMENT 3 (3)


Rs. In lakhs.

Sl.

No.

NAME OF THE

DISTRICT

WASTEFUL

EXPENDITURE

INSTANCES

OF CASES OF

UNACCOUNTED

FOR CASH /

STORES

PENDENCY

OF

UTILISATION

CERTIFICATES

SURCHARGES

CERTIFICATES

- RECOVERY

PENDING

OTHERS

D.D. /

CHEQUES

RECEIVED BUT

NOT REALISED

WITH IN TIME

Total


1 Tirupati

1 0.08 5 0 0 0 0 0 0 0.00 0 0.00 89 1272.03

2 Kakinada

0 0.00 0 0 0 0 0 0 0 0.00 0 0.00 81 493.23

3 Guntur

3 1.20 2 0 1 0 0 0 25 27.67 0 0.00 134 2597.12

4 Kurnool

0 0.00 0 0 1 0 0 0 12 0.69 0 0.00 116 1161.52

5 GHMC

1 0.79 1 0 0 0 0 0 53 18.30 2 3673.64 281 36330.34

6 GVMC

0 0.00 0 0 1 0.24 0 0 17 6.39 0 0.00 81 187.45

7 Warangal

0 0.00 0 0 0 0 0 0 19 0.00 0 0 75 2407.80

Total 5 2.06 8 0 3 0.24 0 0 126 53.05 2 3673.64 857 44449.49

246

PART-III





ACCOUNTS OF

MUNICIPAL ITIES



A.P., HYDERABAD.

247

248

CONTENTS

STATEMENT No.

DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF MUNICIPALITIES FOR THE

YEAR 2008-09

PAGE No.

1 Introductions and a few selected audit objections of Municipalities


1 Statement showing Dist wise Status of Audit of Municipalities for the year 2008-09

311

2 1 & 2 . Consolidated Statement of fund wise Receipts & Payments of Municipalities for the year 2008-09

312-314

3 3 to 3 (3) 2 Consolidated Statement of Grants Receipts and Payments Fund wise in Municipalities for the year 2008-09

315-323

4. 4 to 4 (2) 3 Statement showing the consolidated audit objections

raised during the year 2008-09 324-328

249


ACCOUNTS OF MUNICIPALITIES FOR THE YEAR 2008-09

INTRODUCTION

1.1 Under the State Audit Act, 1989 the Director of State Audit, A.P., Hyderabad

is made in charge of the audit of the funds of local authorities and other

authorities specified in the Schedule prescribed in the said Act. By virtue of

this legal position the Director of State Audit, A.P., Hyderabad is the Auditor

for the accounts of the Municipalities constituted in the State of Andhra

Pradesh this excludes Municipal Corporations. The Number of Municipalities

for the year 2008-09 is 104.

1.2 The Department has got 6 (six) Zonal Offices and District Offices in all the

Districts. The Regional Deputy Directors head the Zonal Offices, and the

District Audit Officer, State Audit heads the District Offices.

1.3 The Department conducts post audit of the Municipalities Audit Reports

consisting of defects noticed in audit are issued to the Commissioners of the

Municipality concerned who has to take action for rectifying the defects

pointed out in the Audit Report.

1.5 Under the State Audit Act, the Director is vested with the power of

disallowing every item of the expenditure incurred contrary to the law and

surcharge the same on the person incurring or authorizing the incurring of

such expenditure and may charge against any person responsible there for, the

amount of any deficiency, loss or unprofitable out lay occasioned by the


have been accounted for but is not brought into account by that person and

shall, in every such case, certify the amount due from such person.

SCOPE OF AUDIT 2.5 The State Audit Department being one of the limbs of the Government of

Andhra Pradesh verifies the following aspects during the course of post audit

of the Municipalities.

Whether the amounts collected like taxes, fees etc., by the Municipal Councils

were properly accounted for with full details in the books of accounts of the

Municipality concerned.

Whether adequate care has been taken in periodical checking up of the funds

with Treasury or Bank.

Whether expenditure incurred is provided for in the Budget of the Municipal

Council and duly sanctioned by the competent authority under the relevant

rules and executive instructions issued by the Government.

Whether funds are utilized only for the permitted purposes prescribed under

the A.P. Municipalities Act 1965 Act / Rules.

Whether the procedure prescribed by Government in incurring the

expenditure/payments made is properly followed and accounted for with due

classification in the books of accounts of the Municipality.


Whether grants received from different sources were properly accounted for

and utilized for the purposes for which they were meant.

2.6 The Department also conducts propriety audit of the expenditure incurred.

250

GRANTS RECEIVED DURING THE YEAR BY THE MUNICIPAL

COUNCILS.

3.3 The Municipal Councils are provided grants by the State / Central

Governments to implement the schemes entrusted to them and also for over all

development of the area under their jurisdiction.

3.4 The Receipts and Payments are inclusive of the various Grants received from

Central and State Governments during the year 2008-09 by the Municipal

Councils. The various Grants received by Municipal Councils are detailed in

Statement No.3.

The Fund Wise Receipts of Municipal Councils for the year 2008-09

are exhibited below in the Pie chart.

PIE CHART OF MCs RECEIPTS FOR 2008-09

53%

4%5%

15%

3%

9%

1%

6% 4%

1. General fund 53%

2. Lighting fund 4%

3. Education fund 5%

4. Water supply & Drainage

fund 15%

5. Town Planning 3%

6. Deposit fund 9%

7. Advances fund 1%

8. Pension fund 6%

9. Provident fund 4%

The Fund Wise Payments of Municipal Councils for the year

2008-09 are exhibited below in the Pie chart.

251

PIE CHART OF MCs PAYMENTS FOR 2008-09

55%

4%

5%

16%

1%

9%

1%

6%3%

1. General fund 55%

2. Lighting fund 4%

3. Education fund 5%

4. Water supply & Drainage

fund 16%

5. Town Planning 1%

6. Deposit fund 9%

7. Advances fund 1%

8. Pension fund 6%

9. Provident fund 3%

STATUS OF AUDIT

4.2 88 years of Audit of Municipal Councils up to the year 2008-09 was conducted

in the year as mentioned below.

Arrear Audit Current Audit Total

38 50 88


24527.67 lakhs and Payments of Rs. 21340.23 lakhs as detailed in the

Statements No.2 with Dist wise break up.

4.3.1 The Fund Wise Receipts & Payment of Municipal Councils for the year 2008-

09 are exhibited below in the bar charts.

252

BAR CHART OF RECEIPTS & PAYMENTS FOR

2008-09 (FUND WISE)

12852.69

1101.42

1310.95

3596.70

694.58

2257.57

321.04

1487.35

905.37

11435.54

937.96

1144.98

3500.41

235.85

1853.98

275.79

1289.94

665.78

1. General fund

2. Lighting fund

3. Education fund

4. Water supply &

Drainage fund

5. Town Planning

6. Deposit fund

7. Advances fund

8. Pension fund

9. Provident fund

RECIEPTS PAYMENTS

AUDIT OBJECTIONS

5.8 During the course of audit of these Municipalities for the year 2008-09 various

defects noticed were already pointed out in the relevant Audit Reports which

were forwarded to the Municipal Commissioners concerned for further action

at their end as per the procedure laid down under the A.P. State Audit Act.


lakhs were raised in the audit of the Municipalities during the year under

report.


involved with category wise break-up is annexed vide Statement No.4.

253


The various audit objections are classified into 19 categories as

detailed below.






6. Non-Utilisation of Earmarked Funds





Contingent Bills



13. Excess payments




17. Surcharge Certificates – Recovery pending

18. Others

19. Demand Drafts / Cheques / Bankers Cheques etc., received but not

realized within time



[Statements from 4 (1) to 4 (3)].

5.13 The objections raised have been here under and observed that the Non

production of records has accounted for 36% of objections followed by

Violation of Rules 28%.



254


(CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2008-09

Rs. In lakhs.

Sl.

No. Name of the category No. % Amount %



3 Non-remittance of the deductions /

Recoveries from Bills 371

10 597.09

6

4 Others 367 10 697.89 7


6 Surcharges Certificates- Recovery Pending 190 5 47.44 0


8 Pendency of Utilisation Certificates 120 3 517.98 5

9 Advances pending adjsutemnt 100 3 222.50 2

10 Mis-appropriations 67 2 59.54 1

11 Non-utilisation of grants before the lapsable

date 65

2 38.33

0

12 Non- utilisation of Earmarked Funds 65 2 48.79 0

13 Variation in Account Figures 61 2 131.88 1

14 Diversion of Grants / Funds 36 1 119.94 1

15 Wasteful Expenditure 27 1 39.13 0

16 Excess Utilisation of Grants / Funds 24 1 7.89 0


stores 22

1 3.13

0

18 Mis-utilisation of Grants / Funds 13 0 9.85 0

19 D.D. Cheques received but not realised with

in time 0

0 0.00

0

Total: 3796 100 10400.69 100

The objections - Number and amount involved - were categorized and their

category has been analyzed. 36% of amount objected pertains to the Non production

of records, followed by Violation of Rules which constitutes 28%. These two together

state that records are not properly kept by Municipalities.

255

AUDIT PARAS

Gist of some of the selected audit objections raised during the year 2008-09

under report is enumerated below:





year, Balance of the Treasury Pass Book as per Cash Book is not tallying with the

actual Closing Balance in the Treasury Pass Book as on 31st March. This is

happening due to Non-crediting of Receipts into the Treasury Pass Book by the

Treasury Authorities. Receipts credited in the cash book by remittance through

Challans are not credited in the Treasury Pass Book by the Treasury Authorities.

Debiting the cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.

Without explaining the differences, addition or subtraction are being done in the


Book. Wrong Totaling of Credits and Debits either by D.D.O. or Treasury. Revision

in the Plus or Minus Memo in the S. T. Pass Book during the subsequent financial

year by the Treasury authorities with retrospective effect. Further, Consolidated

Closing Balance of all cash books are not tallying with consolidated closing balance

of annual account of the institutions etc., A few instances of Variation in Account

figures noticed in the Audit Reports in various Local Bodies are detailed below:

A Consolidated Statement No. 4(2) 1 of Variation in account figures is

appended to the Report from which it could be seen that 61 audit paras involving an

amount of Rs. 131.88 lakhs were pointed out.

A few of such cases are detailed below.

1.1 MC GADWAL, MAHABOOBNAGAR - VARIATION IN ACCOUNT -

NEEDS ADJUSTMENT /RECOVERY - RS. 28,831/-

On Verification of the accounts, it is noticed that there is a difference of Rs.

19,926/- and Rs. 8,905/- between Cash Book and Pass Book in General Fund Account

and P.D Account respectively even after reconciliation as follows.

1) G.F.

Closing Balance Rs. 44,61,406-00

ADD:-

Un-cashed cheques Rs. (+) 04,00,564-00

---------------------

48,61,970-00

LESS:-

Closing Balance at S.T.O. (-) 48,42,044-00

--------------------

Difference 19,926-00

-------------------

256

2) P.D. A/C of NSDP

Closing Balance 12,57,023-00

Closing Balance at S.T.O. 10,12,950-00

Cash on Hand 2,52,978-00

-----------------

12,65,928-00

-----------------

Difference 8,905-00

-----------------

The aggregating difference of Rs.28,831/- may be reconciled at an early date

under intimation to audit.

(Para No. 19 of AR of MC Gadwal, Mahaboobnagar dist. For 2008-09)

1.2 MC CHIRALA, PRAKASAM - RECONCILIATION NOT DONE

BETWEEN CASH BOOK AND TREASURY PASS BOOK - OTHER

DEFECTS - NEEDS ACTION:

A) During the audit, it is noticed that reconciliation between cash and treasury

pass books, bank pass books was not done during the year 2008-09. The cash books

which were maintained in the municipality (all schemes and funds) were not closed

monthly and annually. The closing balance was also not arrived at monthly and

annually. Immediately the reconciliation between cash book and pass books (treasury

and bank pass books), monthly and annual abstracts would need to be arrived and the

fact intimated to audit.

B) The Treasury pass book was not certified by the Treasury authorities. The

Treasury receipts were not taken into cash book. In the absence of the

same, the correctness of the transactions noted in the S.T Pass Book could

not be certified in audit.

C) The relevant register of DD received was also not produced to audit. As

such the classification of the receipt could not be known in audit.

D) The challan-wise receipts were also not noted in posting register. As such,

the figures arrived at in the annual account could not be verified in audit.

The executive authority could not explain to audit as to how the figures

were arrived in the annual account. In the absence of the above

information the correctness of the annual account could not be verified

with reference to cash book and pass books in audit.

The misappropriation that may cause due to the non-reconciliation of Cash

Books with reference to Treasury Pass Book and non-maintenance of Posting

Registers, would need to be recovered from the person or persons responsible.

(Para No. 3 of AR of MC, Chirala, Prakasam dist. For 2008-09)

257


The State Government releases grant-in-aid to meet the expenditure on

developmental works and contingency items like T.A., stationery, honorarium to the

elected representatives etc. It was noticed during the audit that the Executive

Authorities of the MCs were incurring expenditure in excess of the grant received

from the Government either in anticipation of the release of further grant or

withdrawing the excess amount from the General Funds of the institution without any

valid orders.

A Consolidated Statement No. 4(2) 1 is appended to the Report from which it

could be seen that an amount of Rs.7.89 lakhs was pointed out in 24 audit paras.

2.1 MC MARKAPUR, PRAKASAM - EXCESS UTILISATION OF FUNDS

EXPENDITURE INCURRED IN EXCESS OVER THE BUDGET

PROVISION:-

In respect of the following items, excess expenditure was incurred over the

budget provision. The excess expenditure would need to be recovered.

Sl.

No.

Head of Account Budget

Provision

(Rs.)

Actual

expenditure

(Rs.)

Excess

incurred

(Rs.)

% of excess

1 Jeep hire charges 250000 359459 109459 43.78%

2. Chalivendram 0 93119 93119 100%

3. Catches dogs&Pigs 50000 70000 20000 40%

4. Uniform and

Chapplas

133000 243323 110323 82.95%

433000 765901 332901 76.88%

(Para No. 2 of AR of MC Markapur, Prakasam dist. For 2008-09)


Municipalities are empowered to levy and collect different taxes like Property

Tax, Advertisement Tax, Vacant Land Tax etc., and collect water charges for supply

of water to the households and industrial/commercial units. The Municipalities are

authorized to collect Building License fee for permitting the Traders to carry on

business in the Municipal area. Certain Municipalities also raise income from their

properties by leasing them out. All the monies received by the Municipalities form

part of their general funds and they can be utilised for the purposes prescribed under

the Act/Rules. Rule 39 of Rules framed relating to Taxation and Finance in Schedule

II under Section 130 of the Andhra Pradesh Municipalities Act, 1965 prescribed the

purposes to which the Municipal Fund should be applied. According to the said rule,

these include all objects expressly declared obligatory or discretionary by law or rules

and in general everything necessary for or conducive to the safety, health, education

and convenience of inhabitants or to the amenities of the municipality and incidental

258

to the administration and the fund should be applicable thereto within the

municipality. But there are many instances where the grants/funds are applied for a

different purpose rather than the intended one.

As per the orders issued by the Government in G.O Ms. No. 1886, Municipal

Administration, dt. 22.11.1965, the Municipal Councils should not divert the

following earmarked funds even temporarily for other purposes without the previous

sanction of Government.

9. Water and Drainage Tax Funds

10. Deposits including Provident Funds

11. Lighting Tax Fund

12. Loan Funds

13. Special Government Grants

14. Elementary Education Fund

15. Capital Receipts from sale of capital assets and

16. Endowments.

Consolidated Statement showing details of Diversion of Grants is annexed to

the report vide Statement No. 4(2) 1 from which it can be seen that 36 no. of audit

objections involving an amount of Rs.119.94 lakhs were raised in the audit reports

for the year and a few of them are narrated below.

3.1 MC GADWAL - DIVERSION OF FUNDS - SCHEME FUND DIVERTED

TO GENERAL EXPENDITURE WITHOUT PRIOR PERMISSION

COMPETENT AUTHORITY - IRREGULAR - NEEDS RE- IMBURSEMENT

- Rs.1,45,57,969/-

During the year under audit, on verification of cash book, it was noticed that

the scheme funds as noted below were diverted for general expenditure without prior

permission of the competent authority which is irregular and contrary to scheme

instructions (guidelines).

According to scheme instructions, the Grants sanctioned for the specific

purpose should not be diverted to another purpose even temporarily without prior

permission of competent authority. Immediate action would need to be taken to

reimburse the amount so diverted at an early date.

DIVERSION OF DEVELOPMENTAL CHARGES TO MISCELLANEOUS

EXPENDITURE

Sl.

No.

Name of the

Scheme Vr.No. & Dt Particulars

Amount

(Rs.)

1 Dev. Charges (GO.

Ms. No. 158)

1/11-08-08 Purchase of engine oil &

mechanic labour charges.

7375

2 -do- 2/11-08-08 Purchase of 4-Q- PVC pipes. 7640

3 -do- 3/11-08-08 Purchase of 4 PVC pipes &

Spares.

29417

4 -do- 4/11-08-08 Purchase of 4-Q- PVC pipes. 9990

Total 54422

259

DIVERSION OF SCHEME FUNDS TO GENERAL EXP.

Sl.

No Scheme Vr.No. Particulars

Amount

(Rs.)

1 B.P.S. 1 to 23 Amount paid towards salaries, contract

labour wages & purchase of electric

materials.

4225244

2 C.C.F. 7 to 11 Amount paid towards salaries, contract

labour wages and CM’s programme

expenditure.

5002350

3 Flood Grant 1 to 3 Amount paid towards contract labour

wages, Office Exp. Chair person

honorarium, hire charges.

4084369

4 IDSMT 1 to 6 &

33 to 57

Amount paid for water supply, sanitation,

CM’s Programme, Diesel bills etc.,

1185584

Total 14497547

Grand Total 14551969

(Para No. 20 of AR of MC Gadwal, Mahaboobnagar dist. For 2008-09)

3.2 MC WANAPARTHY, MAHABOOBNAGAR - DIVERSION OF FUNDS

FROM LRS & BPS – NEEDS REIMBURSEMENT Rs. 2633229/-

As per Rule 14 of AP Regulation of Un-approved and Illegal Layout Rules,

2007 issued in G.O Ms. No. 902, Municipal Admn. & Urban Development (M), Dept,

dt. 31-12-2007, the amount collected by the competent authority under these rules

shall be kept and maintained under the control of the competent authority in a separate

account and utilized only for improvement of amenities in the area.

But, the Commissioner, Wanaparthy Municipality has diverted the amount

from LRS & BPS account and utilized for other than the purpose prescribed in the

aforesaid Govt. Orders as shown below.

Sl.

No. Vr. No & Date Details

Amount

(Rs.)

1 1/11-7-08 Transportation of water through Tankers 727980

2 2/11-7-08 -do- 14800

3 3/11-7-08 -do- 27420

4 4/11-7-08 -do- 33200

5 5/11-7-08 -do- 106600

6 6/22-7-08 -do- 88660

7 7/22-7-08 -do- 49000

8 8/18-9-08 Purchase of Electrical material for street

lights maintenance from Manikanta Eng.

Co. Wanaparthy

24312

260

9 9/18-9-08 -do- 38970

10 10/18-9-08 -do- 38820

11 11to 36/18-9-08 Car hire charges materials, Digital

photos misc. etc.,

49123

12 36/1 to 36/40/26-9-09 -do- 54985

13 37/29-9-08 Supply of contract labour for water

supply for 7/08

209988

14 38/29-9-08 Tri -cycle pullers wages for 7/08 10000

15 39/29-9-08 Payment of spl. sanitation 18720

16 40/29-9-08 Supply of contact labour for sanitation

for 7/08

251100

17 41/29-9-08 Pay bill of PH workers (31) Nos for 7/08 251276

18 42/29-9-08 Loan re-payment of staff APGVB for

7/08

25050

19 43/29-9-08 LIC of staff for 7/08 9805

20 43/1/29-9-08 Refund of EPF of staff 38350

21 44/12-1-09 Supply of water through tankers 565070

Total 2633229

Early action would need to be taken to reimburse the amount of Rs. 2633229/-

so diverted under intimation to audit.

(Para No. 18 of AR of MC Wanaparthy, Mahaboobnagar dist. For 2008-09)

3.3 MC VIKARABAD, RANGA REDDY - MUNICIPAL STAFF SALARIES -

PAID FROM RAIN WATER HARVESTING SCHEME – NEEDS

REIMBURSEMENT FROM MUNCIPAL FUNDS

An amount of Rs.10,39,250/- was drawn and paid to the municipal staff

salaries from Rain Water Harvesting scheme. The Commissioner and Director of

Municipal Admn has given permission that the staff salaries of Municipal council,

Vikarabad shall be incurred from RWH scheme with the condition to re-imburse the

said drawn amount in six months but, the Commissioner of municipality have failed

to reimburse the said amount from municipal funds to RWH A/c which needs

immediate adjustment so as to achieve the scheme’s objectives.

Sl.

No. Cheque No. Date

Amount

Drawn (Rs.)

1 240773 15-05-2008 1023735

2 240774 15-05-2008 15515

Total 1039250

(Para 31 of AR of MC Vikarabad, Ranga Reddy dist. For 2008-09)

261

3.4 MC, ZAHEERABAD - N.R.Y (TRAINING) GRANT – SPENT FOR

MAINTENANCE WORKS – HIGHLY IRREGULAR – Rs. 46466/-

On verification of the Cash Book relating to the NRY (training component)

(A/c No. 50193 of AB), it was noticed that the following expenditure was incurred by

the Municipal Commissioner for maintenance works.

V.No. 1/11.04.08 – Construction of drain and slab - Rs. 24527/-

V. No. 2/11.304.08- Collection and supply of gravel

to Ahmednagar Colony Ward No.19 - Rs. 21939/-

The advance was drawn in favour of the AE, MC, Zaheerabad. Diversion of

Training grant for maintenance works is irregular. Further, the administrative sanction

of the council was also not obtained for taking up the work. Pending approval of

council, the works were stated to have been executed and post-sanction was also not

obtained.

(Para 41 of MC Zaeerabad, Medak dist. For 2008-09)

3.5 MC ZAHEERABAD, MEDAK - SPECIAL GRANT – GRANT RELEASED

FOR THE DEVELOPMENTAL WORKS – DIVERTED FOR

MAINTENANCE WORKS – OBJECTED Rs.1666073/-

As seen from the Cash Book relating to the special grant (A/c No.

30480154354 – SBI Zaheerabad), it is noticed that out of balance amount of Rs.

21,31,000/- of the previous year, an amount of Rs. 1666073/- was incurred on the

following items.

# V.No./dt Nature of expenditure Amount

(Rs.) Remarks

1. 1-6/22.09.08 Salaries of the staff including

honorarium

284001 Self cheque

2. 7/22.09.08 Purchase of electrical material

for street lighting

149095 Master Electrical

ZHB

3. 8/22.09.08 -do- 123740 Venkateswara

Electricals ZHB

4 9/22.09.08 Private Sanitation 126055 Paid to Sri Saibaba

Labour Society for

the month of 7/08 &

8/08

5 10/22.09.08 -do- (24) laboureres 101088 R. Viswanath

6 11/23.09.08 -do- 99344 -do-

7 12/23.09.08 -do- 28 labourers 117936 Paid to Sri Sudhir for

the month of 7/08

8 12/23.09.08 -do- 28 labourers 113568 Paid to Sri Sudhir for

the month of 8/08

9 13&14/23.09.08 Labourers for Housing board

area

34980 R. Viswanath

10 15/23.09.08 Purchase of Tri-cycles 106548 R. Viswanath

11 17/23.09.08 Laboures of Mpl. Park 49608 R. Viswanath

262

12 19/23.09.08 Private sanitation 49920 R. Viswanath

13 37/10.10.08 Desilting with JCB 6300 R. Viswanath

14 38/10.10.08 Killing of dogs 3500 R. Viswanath

15 18/23.09.08 Outsourcing of computer

operator

12720 R. Viswanath

16 20/23.09.08 Hiring of vehicle for Office 22300 Shiva travels 4/08 to

9/08

17 21/23.09.08 Hiring of vehicle for

Commissioner

51000 7/08 to 9/08

18 22/23.09.08 Hiring of vehicle 34000 8/08 & 9/08

19 26/10.10.08 Purchase of chairs 4375 R. Viswanath

20 40/10.10.08 Purchase of Neel kamal chairs 9750 R. Viswanath

21 25/23.09.08 Water supply maintenance 68000 Sri Saibaba

Contractor

22 27/10.10.08 Purchase of white cement and

bleaching powder

13625 R.Viswanath

23 30/10.10.08 -do- 3250 R.Viswanath

24 36/10.10.08 -do- 1250 R.Viswanath

25 39/10.10.08 -do- 7625 R.Viswanath

26 43/10.10.08 -do- 3125 R.Viswanath

27 44/10.10.08 -do- 10500 R.Viswanath

28 45/10.10.08 -do- 1250 R.Viswanath

29 48/10.10.08 -do- 7000 R.Viswanath

30 32/10.10.08 Water supply booklets 2845 R.Viswanath

31 33/10.10.08 Printing of pamphlets 2000 R.Viswanath

32 35/10.10.08 Name plates and MC poles 1200 R.Viswanath

33 49/10.10.08 Painting of sign boards 5670 R.Viswanath

34 51/10.10.08 DTP Charges 1575 R.Viswanath

35 31/10.10.08 Gravelling Ward -3 8446 R.Viswanath

36 46/10.10.08 Digging of pits for plantation

along NH 9

11232 R.Viswanath

37 34/10.10.08 Water supply tanker 5952 -

38 28/10.10.08 Purchase of POL 1000 -

39 42/10.10.08 Purchase of POL 1310 -

40 47/10.10.08 Tent charges 2230 -

41 23/23.09.08 Mike announcement 3580 -

42 24/23.09.08 -do- 3580 -

Total 1666073

As stated above, most of the grant was spent for the purpose of maintenance

besides incurring maintenance expenditure from the General Fund. The reasons for

spending the fund on the maintenance alone instead of developmental works were not

explained to Audit.

In view of the above, the expenditure of Rs.16,66,073/- could not be admitted

in Audit.

(Para 44 of MC Zaheerabad, Medak dist. For 2008-09)

263

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE

DATE

Government releases special grants to the local bodies for implementing


meant duly following the guidelines issued / norms prescribed and such utilization

should be within the date prescribed. Otherwise, the grants will lapse to the

Government, unless the lapsable date of any particular grant is extended by the

Government or grant releasing authority.


13-6-1978 extending the period of Utilization of non-salary grants, up to a maximum

period of 18 months instead of end of the financial year to allow reasonable time to

utilize the grant released. According to the above orders, grants released in the first

year of a financial year can be utilized on or before 30th

September of succeeding

year. The Local Bodies did not utilize the grants released within the lapsable date and

thereby huge amounts were left unutilized. The grant sanctioning authorities were also

not approached for extending the utilization period. Thus the schemes for which the

grants released were not implemented effectively and totally. The unspent balances

were also not refunded to the grant releasing authorities.

A Consolidated Statement No. 4 (2) 1 of Non-utilization of Grants/ Funds

before Lapsable Date is appended to the Report from which it could be seen that an

amount of Rs. 38.33 lakhs was pointed out in 65 audit paras

A few of such cases pointed out in the Audit Reports of the Municipalities are

detailed hereunder.

4.1 MC RAJAM, SRIKAKULAM - BALANCES AVAILABLE IN IN-

OPERATIVE P.D.ACCOUNTS – NEITHER UTILISED NOR REMITTED TO

GRANT RELEASING AUTHORITY- NEEDS EARLY ACTION:

During the course of audit for the year 2008-09, it is observed that the

following P.D. Accounts were in operative since long time as detailed in the

annexure. But no action was taken to remit the balances left under various schemes to

state funds which is contrary to the provisions.

Sl.

No.

Name of the

Account/Fund OB Receipt Total Payments CB

1 PF 2824115 2824115 0 2824115

2 Uda Charges 209595 21240 230835 0 230835

3 BPS Scheme 50000 845172 895172 0 895172

4 NSDP 498266 50301 548567 0 548567

5 CDR 5845 0 5845 0 5845

6 UWET 169818 9220 179038 0 179038

7 EIUS 470956 27620 498576 0 498576

264

8 Community

Structure 63339 420 63759 0 63759

9 Dwcrua 480385 28823 509208 0 509208

10 Parka and play

grounds 103000 6180 109180 0 109180

11 4978319 103000 3637 106637 0 106637

4978319 992613 5970932 0 5970932

Therefore, immediate action may be taken to close the accounts by

remitting the balances with interest accrued as on the date to the grant releasing

authorities early and fact intimated to audit.

(Para No. 16 of AR of MC Rajam, Srikakulam for 2008-09)

5. MIS-UTILIZATION OF GRANTS

Municipal Councils are in receipt of Grant-in-aid from the Government for

certain specified purposes to be spent within the prescribed time limits and they

furnish utilization certificates for the grants utilized.

During the Course of audit, several instances have come to the notice of audit

that certain Municipal Councils incurred expenditure in excess of the Grant–in-aid

received.

The fact of incurring such excess expenditure further implies that such

expenditure was met from the unspent balances of some other grants. Necessary steps

are called for to curb this sort of financial indiscipline at the earliest. The excess

expenditure incurred, wherever possible, should be got reimbursed from the grant

sanctioning authorities explaining the circumstances under which the excess

expenditure over and above the grant sanctioned became inevitable.

13 cases of Mis-utilisation of funds / grants involving Rs. 9.85 lakhs pointed

out in the relevant audit reports are detailed in Statement No. 4 (2) 1 appended to this

report

A few of them are mentioned below.


Governments have earmarked funds of Municipality out of their Funds and

utilize the same on the schemes benefiting the SCs, STs, and for Women and Child

Welfare at the following rates.

For Scheduled Castes: 15%

For Scheduled Tribes: 6%

For Women & Child Welfare: 15%

Further 1/3rd

of such earmarked funds shall be made over at the beginning of

the year to the A.P. Scheduled Castes Co-operative Finance Corporation / A.P.

Scheduled Tribes Co-operative Finance Corporation / A.P. Women Co-operative

Finance Corporation to be utilized for the benefit of the SCs, S.Ts and Women &

265

Children respectively. The balance of 2/3rd

funds shall be utilized by the

Municipalities for the benefit of Scheduled castes / Scheduled Tribes / Women &

Children in the respective municipal area. Unspent balance, if any out of the 2/3rd

funds at the end of the financial year, shall be made over to the respective

corporations.

It was observed in audit that in many cases the funds to be earmarked were not

worked out and provided for in their respective Budget Estimates. As such, funds

were neither made over to the respective corporations at the beginning of the year nor

utilized for the benefit of these sections by the municipalities in the State. The unspent

balances at the end of the year were also not remitted to the respective corporations in

many of the cases. Such inaction had defeated the very purpose of earmarking of

funds for the welfare of these sections.

A Consolidated Statement No. 4 (2) 1 of Non-utilisation of Earmarked Funds

is appended to the Report from which it could be seen that 65 objections were pointed

out involving Rs. 48.79.lakhs

6.1 MC, BHONGIR, NALGONDA - INDIRAMMA PENSION AMOUNTS -

UNDISBURSED AMOUNTS KEPT WITH MUNICIPAL ACCOUNTS -

VIOLATION OF INSTRUCTIONS - NEEDS IMMEDIATE REMITTANCE

As per the proceedings of the District Collector and Executive Chairman,

District Rural Development Agency, Nalgonda No.D/578/Reg.Pension/2007, Dated

23-03-2009, regarding pensions, all the Municipal Commissioners in the District were

instructed to submit acquittances along with Utilization Certificates for the amounts

disbursed and also to refund the unspent balances, if any through Demand Drafts by

8th

of every month in favour of the Project Director, DRDA, Nalgonda. But, contrary

to the instructions issued in the above said proceedings, the amounts mentioned below

were kept in different accounts of Municipal Council. By this the objectives of

pension scheme were found to be ignored and the very purpose of providing Pensions

to various Categories was not fulfilled. The amounts may be refunded as per the

guidelines issued in the above proceedings to make the scheme useful to other

beneficiaries.

STATEMENT OF UNDISBURSED PENSION AMOUNTS KEPT WITH

MUNICIPAL COUNCIL, BHONGIR DURING THE FINANCIAL YEAR 2008-

09

Name of the bank Account Number Pension Amount kept

(Rs.)

State Bank of Hyderabad 738802 19665

Andhra Bank 23787 6739

NDCC Bank 7013 14000

APGVB 44 15400

(Para No.4 of AR of MC Bhongir, Nalgonda dist. For 2008-09)

266


On verification of Revenue collections in municipalities, huge amounts have

been noticed pending realization for long periods and allowed to become barred by

limitation of time. No appropriate action seems to have been initiated by the executive

authorities before the dues became barred by limitation of time, in spite of various


or filing of suits.

A Consolidated Statement No. 4 (2) 2 of Non-collection of dues is appended to

the Report from which it could be seen that 228 objections were pointed out involving

Rs.1043.99 lakhs

7.1 MC ZAHEERABAD, MEDAK - DEMAND, COLLECTION AND

BALANCE OF TAX AND NON-TAX REVENUE – NON-CERTIFICATION

OF DEMAND – MAJOR LAPSES IN COLLECTION OF DUES – Rs.

1,11,28,000

During the course of Audit of Zaheerabad MC for the year 2008-09, it was

noticed that huge amounts of property Tax was not collected by the Municipal

authorities.

In spite of issue of 8 Half margin letters, neither the DCB statement showing

the demand, collection and balance of the Tax and Non-tax revenue of Municipality,

nor the demand registers were produced to the Audit for verification which is highly

irregular.

However, as per the inspection report of the RD, MA dated 2.09.2009, the

total property tax to be collected is Rs. 1,11,28,000/- . Collection of the property tax

which is the main source of the revenue of the Municipality is poor. Necessary steps

need to be taken for improvement of the collection of the property tax.

(Para No. 9 of AR of MC, Zaheerabad, Medak dist. For 2008-09)

7.2 MC ZAHEERABAD, MEDAK - WATER SUPPLY CONNECTIONS-

NON-COLLECTION OF WATER CHARGES - HUGE LOSS AND

OTHER IRREGURLARITIES - Rs. 3,12,480/-

As seen from the register of water supply connections, 651 connections were

given out to the consumers, but no demand is raised for all the new connections of the

year under report. Thus, a loss to the tune of Rs. 3,12,480/- ( 651 X 12 months X Rs.

40/- per month) was sustained due to the negligence of the executive authorities.

Further as on date of the close of the year 2008-09, 3331 water tap

connections were under service, but the receipts towards water charges is Rs.

8,82,000/-, which is meager compared to the no. of connections in use. The Executive

Authority awfully failed to collect the water charges and improve the revenue of the

institution.

267

The register of tap connections and files were not properly maintained

showing the date of receipt of the application, sanction of connections and date of

connection and inclusion in the demand etc.

To be corrected.

(Para No. 11 of AR of MC, Zaheerabad, Medak dist. For 2008-09)

7.3 MC, CHITTOOR - PROPERTY TAX - DEMAND COLLECTION AND

BALANCE OF PROPERTY TAX - HUGE AMOUNT OUT-STANDING

NEEDS ACTION - RS.29310078-00

During the course of audit, it is ascertained that the total demand under

property tax for the year 2008-09 was arrived as Rs.64383627-00 but Rs.35073549-

00 was collected during the year and Rs.29310078-00 was pending collection

Year Demand Collection Balance

2008-09 64383627 35073549 29310078

The total property tax demand arrived for 2008-09 was certified by the

commissioner. And the remaining amount of the property tax out standing is pending

collection amounting to Rs.29310078/-

Immediate action would need to be taken for property tax prompt collection.

(Para No.1 of AR of MC, Chittoor dist. For 2008-09)

7.4) MC, AMADALAVALASA, SRIKAKULAM - CURRENT DCB- DCB OF

TAXES AND NON-TAXES OF CURRENT YEAR - PENDING

COLLECTION - NEEDS EARLY ACTION:Rs.4294357.00

The demand fixed collections made and the balances left over at the

end of the year under report in respect of taxes and non-taxes are given below.

Sl.

No. Item of revenue Demand Collection

Written

off

Balance

1 Property tax 7303391 4097937 0 3205454

2 Water tax 808080 388080 0 420000

3 Shop Rooms Rents 306070 106991 0 199079

4 Market Lease 854052 833106 0 20946

5 IDSMT Room Rent 165600 165600 0 0

6 D&O Traders 109510 109510 0 0

7 HSC 808080 388500 0 419580

8 Advertisement Tax 8829 4673 0 4156

9 Encroachment Fees 158655 133520 0 25135

10 Slaughterhouse 7200 7200 0 0

11 Fish Ponds 35577 35570 0

7

TOTAL 10565044 6270687 0 4294357

268

Hence, action would need to be taken to collect the balances of taxes

and non-taxes by taking coercive steps under the act with personal interest etc., for

the delay in payment.

(Para No.15 of AR of MC Amadavalasa, Srikakulam dist. For 2008-09)

7.5 MC, AMADALAVALASA, SRIKAKULAM ARREAR DCB- HUGE

ARREARS OF TAXES AND NON-TAXES OF ARREAR - PENDING

COLLECTION - NEEDS EARLY ACTION.

The demand fixed collections made and the balances left over during the

year under report in respect of arrear taxes and non-taxes are given below.

SL.

No. Item of Revenue Demand Collection

Written

off Balance

1 Property tax 8634829 2161907 0 6472922

2 Water tax 505127 206800 0 298327

3 Shop Rooms Rents 227897 107730 0 120167

4 Market Lease 527492 0 0 527492

5 IDSMT Room Rent 99697 0 0 99697

6 HSC 505127 202950 0 302177

7 Advertisement Tax 8895 4789 0 4106

8 Encroachment Fees 101290 56040 0 45250

TOTAL 10610354 2740216 0 7870138

Hence, early action would need to be taken to collect the balances of taxes

and non-taxes by taking coercive steps under the act with personal interest etc., for the

delay in payment.

(Para No.16 of AR of MC Amadavalasa, Srikakulam dist. For 2008-09)

7.6 MC RAJAM, SRIKAKULAM - SHORT/UNDER UTILISATION OF

GRANTS-NEEDS UTILISATION:

During the course of audit for the year 2008-09, it is noticed that though

there were sufficient funds available with the institution in the following

accounts/schemes to take up development activities, execution of works etc., no

action was taken to utilization of grants fully which is irregular.

Sl.

No.

Name of the

Account/Fund

Total

amount

available

(Rs.)

Utilisation

(Rs.)

Balance available

as on 31.3.2009

(Rs.)

1 General Funds 10193361 6527013 3666348

2 General Funds 2824115 0 2824115

3 PF 230835 0 230835

4 Uda Charges 895172 0 895172

5 BPS Scheme 548567 0 548567

6 NSDP 5845 0 5845

269

7 CDR 179038 0 179038

8 UWET 498576 0 498576

9 Special Grant 106561 111889 106561

10 EIUS 63759 0 63759

11 12th Finance 2281490 181941 2099549

12 Community Structure 509208 0 509208

13 Infrastructure 169448 179615 169448

14 Pavalavaddi 1364510 1333494 31016

15 NOAP 8918595 8882600 35995

17 MEPMA 283927 282184 1743

18 Dwcrua 109180 0 109180

19 Special Grant New 3333000 3379200 3333000

20 Parka and play grounds 106637 0 106637

21 SGRY 100483 89647 10836

22 Water supply Donation 2548000 2516000 32000

23 Water Supply Estimation 385000 301320 83680

Total 35655307 23784903 15541108

Non utilization of grants may hampers the various developmental activities and

the very purpose of the scheme could not be served.

Hence, action may be taken to utilize the grants fully within the stipulated

period to avoid locking of funds.

(Para No. 17 of AR of MC Rajam, Srikakulam for 2008-09)

8. ADVANCES PENDING ADJUSTMENT




the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to






A Consolidated Statement No.4 (2) 2 showing the audit objections on

Advances Pending is appended to the Report from which it could be seen that an

amount of Rs. 222.50 lakhs was pointed out in the 100 audit paras.

8.1 MC, MADANAPALLI, CHITTOOR DISTRICT - ADVANCES PAID TO

MUNICIPAL ASSISTANT ENGINEERS - NOT GOT ADJUSTED -

IRREGULAR - RS. 1102500/-

As seen from the following vouchers, advances were drawn and paid to

Municipal Assistant Engineers for departmental execution of works. But the

270

adjustment particulars were not pointed out to audit for verification. The advances are

to be adjusted within 3 months or soon after the purpose are over.

The executive authority must insist on the adjustment particulars or recover

from the person or persons responsible.

Sl

No.

(I)

Vr. No & date Advances paid to A.E Amount

(Rs.)

1 461/7.08 K. Balasubramanyam, A.E., 300000










Total 1077500

Sl

No.

(II)

Vr. No & date Advances paid to A.E Amount

Rs.

1 784/11-08 A. Subbarayudu, A.E., 20000

2 1534/1-09 A. Subbarayudu, A.E., 5000

3 955/12.08

M.B.No. 54/06-07

(p.38)

A. Subbarayudu, A.E., --

Total 25000

1. 1077500

2. 25000

Total 1102500

(Para No.3 of Audit Report of MC, Madanapalli, Chittoor District for 2008-09)

8.2 MC YELLENDU, KHAMMAM - M.C. GENERAL FUNDS - ADVANCES

NOT ADJUSTED - NEEDS EARLY ACTION - RS.2,13,000/-

As verified from the cash book and connected vouchers, an amount of

Rs.2,13,000/- was drawn and paid to the following individuals towards advances for

various purposes during the year 2008-09. But the said advances were not adjusted

271

till the end of the audit. Further the advance recoverable Register was also not

produced for verification in audit. Non-adjustment of advances for months together

leads to temporary misappropriation of funds.

Hence, immediate action would need to be taken to adjust the said advance

amounts from the concerned individuals and the fact reported to audit.

Sl.

No.

Name of the

individual &

designation

Vr. No./Date Amount

(Rs.) Purpose of Advance

Sarvasri

1 P. Ramanaiah.

Comm.(FAC) 140/25-08-2008 25000

Details of Advance not

stated in Cash Book

2 Md. Amjad Pasha,

Sanitory Jawan 143/02-09-2008 2000

Towards Sanitation

maintenance

3 R. Ramanna, AE. 253/11-09-2008 25000

Towards Gravel Road

formation at Kalimatha

Temple

4 Md. Amjad Pasha,

Sanitory Jawan 189/30-09-2008 4000

Sanitation materials for

Ramjan Festival

5 Ramanaiah.

Comm.(FAC) 196/20-10-2008 27000

Indiramma Sambaralu

distribution of pension

6 P. Ramanaiah.

Comm.(FAC) 197/21-10-2008 25000

Indiramma Sambaralu

distribution of housing

sanction orders

7 V. Eswaraiah, Fitter 243/10-11-2008 20000 Purchase of pipes of

leakage on pumping main

8 Md. Amjad Pasha,

Sanitory Jawan 248/21-11-2008 2000 Sanitation maintenance

9 K. Ravi, Jr.Asst. 249/29-11-2008 3000 Imprest cash

10 V. Eswaraiah, Fitter 297/23-12-2008 10000 Leakage materials

11 R. Ramanna, AE. 300/30-12-2008 12000 Maintenance of water

supply



14 Md. Maqbool, Fitter 482/17-02-2009 15000 Motor winding


16 Md. Maqbool, Fitter 484/07-03-2009 20000 Water supply maintenance

17 Md. Maqbool, Fitter 511/20-03-2009 10000 Water supply maintenance

Total: Rs. 213000

(Para No. 3 of MC Yellendu, Khammam dist. For 2008-09)

8.3 MC, VIKARABAD, RANGAREDDY - ADVANCE PENDING

ADJUSTMENT – NEEDS TO BE ADJUSTED – Rs.4,07,500/-

As verified from the following vouchers during the audit period for the year

2008-09, it is noticed that, an amount of Rs. 407500/- was paid to the following

272

individuals towards advance for the purpose detailed below. The advance was not

adjusted till the date of completion of audit.

Hence an early action would need to be taken either to adjust the advance or to

recover the unadjusted amount from the person/s concerned and credited to Municipal

Funds under intimation to Audit.

Voucher No.

& Date

Purpose Name of the

Individual &

Designation

Amount

(Rs.)

03 & 01-07-2008 Maintenabce of water

supply scheme

T. Laxminarayana A.E 13000

04 & 05-07-2008 Purchase of Ferric alam do 10000

05 & 15-07-2008 do do 35000

09 & 11-08-2008 do K. Rajaiah D.E 33500

33 & 26-02-2009 Scheme consultation

Charges

K. Rajaiah D.E 150000

28 & 26-11-2008 Electrical material K. Rajaiah D.E 96000

11 & 13-08-2008 do T. Lingam W.S Staff 50000

Total 407500

(Para No. 25 of AR of MC, Vikarabad, Rangareddy dist. For 2008-09)

8.4 ADVANCES – ADJUSTEMENT PARTICULARS NOT PRODUCED –

NEEDS RECOVERY Rs. 115000/-

As seen from the General Fund Cash book of the MC Zaheerabad, the

following advances were made over for the purpose specified against each.

Sl.

No. V.No./dt

Amount

(Rs.) Purpose

Name of the

person

1 304/28.02.09 100000 Procurement of High

mast lights

Raja

Electrical

Sadashivapet

2 187/15.10.08 15000 Repairs to computer Laxmaiah

Computer

operator

The adjustment particulars of the advances were not produced to Audit.

Immediate action would need to be taken for recovery of the amount of Rs.1,15,000/-

from the person or persons responsible under intimation to Audit.

(Para No. 37 of AR of MC Zaheerabad, Medak dist. For 2008-09)

273



instructions for incurring the expenditure from the funds of the MCs were violated

either due to negligence or ignorance. In certain cases, the funds of the MCs were

utilized for the purposes other than the permitted ones under the Act / Rules. It was

also noticed that in a few cases, Government instructions were misunderstood or

misinterpreted. Such irregular expenditure incurred was objected to in the relevant

Audit Reports.

A Consolidated Statement No. 4(2) 2 showing the audit objections on

Violation of Rules is appended to the Report from which it could be seen that an

amount of Rs. 2959.84 lakhs was pointed out in 738 Audit Paras.

Some of such cases are mentioned hereunder.

9.1 MC WANAPARTHY, MAHABOOBNAGAR - PAYMENT OF WAGES TO

SANITATION WORKERS WITHOUT COUNCIL APPROVAL –

IRREGULAR - Rs. 1885992/- HELD UNDER OBJECTION.

During the year under audit, an amount of Rs.18,85,992/- shown in the

appended list was spent towards the wages to sanitation workers against the months

shown in the list. Out of the payment, the following defects were noticed during the

audit.

1. Attendance certificate of sanitation workers not produced.

2. Attestation of the Mpl. Engineer was not taken in NMR.

3. Resolution of the Municipal Council to engage the services of NMRs was

not furnished to audit.

In the absence of the council resolution, the payment cannot be admitted in

audit and is held under objection.

Sl.

No. Vr No. & Date Amount Details

1 255/10-12-08 243000

Payment towards engaging of six members of

contract labour, supply of workers for cleaning of

drain, roads, sweeping and of garbage with

tractors. From 1-8-08 to 31-8-08 (Municipal

council resolution not produced) B. Vijay Kumar,

Contractor.

2 256/10-12-08 8000 Engaging 10 Nos Tri-cycles workers for lifting of

garbage from door to doorfrom 1-8-08 to 26-8-08.

(15,16,19,20,21,22,23,24,2& 26)(attendance not

produced)

3 257/10-12-08 126090 Payment to Sri. B. Vijaya Kumar contractor

towards engaging of 31 members on contract

labour basis for cleaning of drains, roads and

lifting of garbage with tractor. From 1-8-08 to 31-

8-08 (Attendance certificates CR registers not

produced)

274

4 258/10-12-08 216987 Payment to B. Vijay Kumar contractor towards

supply of labour for maintenance of water supply

for the month of Aug-08. (CR not produced)

594077 (A)

5 303/4-3-09 249000 Payment made to Sri. B. Vijaya Kumar, contractor

towards engaging labour for maintenance of

sanitation drain, road sweeping and garbage lifting

with tractors (1-11-08 to 30-11-08) (the NMR was

not attested by the engineer) (61) members CR

also not produced)

6 304/29-3-09 18850 Payment made to B Vijaya Kumar contractor

towards computer operator / Sanitation workers.

7 305/25-3-09 209988 Payment made to Sri. B. Vijaya Kumar contractor

towards engaging water supply labour for

maintenance of water supply for the month of

11/08

8 46 No.s x30

135/day

186300 Mtnce. of water supply hand works 7 road

maintain of water supply

9 1x35/135/day 9000 Skilled workers W.f. works less qualification

10 2x3/244/day 24480 Work inspectors was ITI/IVC qualification

477838 (B)

11 306/25-3-09 8000 Payment of tri-cycle workers bill for 11/08

engaging of 10 Numbers try cycle work for lifting

of garbage for labour in the ward No.

15,16,19,20,21,22,23,24,25 & 26 8x1000= 8000

12 307/25-3-09 125550 Payment made to Sri. B. Vijaya Kumar contractor

towards contract labour charges for maintenance of

sanitation drain damaging road sweeping and

garbage filling with tractors and other sanitation

work from 1-11-08 to 30-11-08. (the NMR was not

attested by the Mpl. Engineer)

13 284/20-2-09 209988 B. Vijaya Kumar, contractor Wanaparthy towards

supply of water supply for the month of 10/08. Bill

not enclosed, NMR not attested )

14 285/26-2-09 8000 Tri cycle towards engaging of 8 members workers

for door to door collection for the month of 9/08

8x1000= 8000/- Attendance certificate not

enclosed.

15 286/20-2-09 8000 -do-

16 287/20-2-09 257100 Payment to Sri.B. Vijaya Kumar towards engaging

of 60 members contract for road sweeping drain

cleaning and lifting of garbage with tractor from 1-

10-08 to 31-10-08.

616638 (C)

18 288/20-2-09 129735 Payment towards engaging of 31 members labour

for cleaning drain. Road, sweeping, garbage lifting

275

with tractors and hiring of sanitation workers (1-

10-08 to 31-10-08) (NMR not attested and CR also

not enclosed)

19 289/20-2-09 48204 B. Vijaya Kumar, contractor Wanaparthy towards

supply of community organizer and wages taken

7/07 to 12/07 142xdays

20 210/20-2-09 19500 Sri B. Vijaya Kumar, Contractor towards supply of

computer operators on contract basis

197439 (D)

GRAND TOTAL

(A+B+C+D) 1885992


9.2 MC MIRYALAGUDA, NALGONDA - PURCHASE OF ELECTRICAL

GOODS AND WATER SUPPLY MATERIALS - GOODS RATES NOT

FINALISED BY THE COMMITTEE - PURCHASES NOT EFFECTED FROM

SSI UNITS.

An amount of Rs. 4,00,652/- was drawn and incurred for purchase of

Electrical and water supply materials during the year under audit. The purchases were

made in local market in piece meal to avoid the tender system.

Govt. through G.O.Ms.No.43 I & com (SSI) Dept., Dt. 20-07-1999 has

introduced a revised marketing assistance scheme duly constituting a purchase

committee and it was also ordered that the commissioner of Industries shall finalize

the rates in every year and purchases shall be made from the S.S.I. units only.

But the above orders of the Govt. were not adhered to and purchases made in

local market in piece meal ranging from Rs. 1930/- to Rs. 29,400/-, without approval

of committee.

This should be avoided in future and purchases shall be made in terms of the

above G.O.

WATER SUPPLY MATERIAL

Sl.

No. Vr.No. & Date Particulars

Amount

(Rs.)

1 657/28-01-09 Motor repairs Sri Sai baba Engineering

Electricals, Nalgonda

6140

2 264/20-01-09 Motor repairs 8518

3 662/28-01-09 Motor repairs 5555

4 659/28-01-09 Repairing of power bore 4895

5 660/28-01-09 Motor repairs 7480

6 661/28-01-09 Motor repairs 4720

7 658/28-01-09 Motor repairs 4845

8 35/16-04-08 Purchase of water supply material 2165

9 261/20-01-09 Purchase of water supply material 6325

10 64/26-12-08 -do- 3265

11 65/26-12-08 -do- 3285

12 42/26-12-08 -do- 3270

276

13 69/26-12-08 -do- 3335

14 66/26-12-08 -do- 3022

15 71/26-12-08 -do- 3146

16 49/26-12-08 -do- 3240

17 46/26-12-08 -do- 3420

18 1/04-04-2008 -do- 4390

19 242/- -do- 2860

20 244/- -do- 2800

21 262/20-01-09 -do- 4580

22 265/27-01-2009 -do- 6960

23 266/27-01-09 -do- 2780

24 343/12-09-08 -do- 2465

25 346/12-09-08 -do- 2920

26 348/12-09-08 -do- 3000

27 349/12-09-08 -do- 2735

28 406/01-10-08 -do- 3000

TOTAL:- 1,15,116

ELECTRICAL MATERIAL

Sl.

No. Vr. No. & Date Particulars

Amount

(Rs.)

1 122/30-05-08 Purchase of Electrical Material 29400

2 123/30-05-08 -do- 29340

3 124/30-05-08 -do- 27860

4 147/13-10-2008 -do- 2791

5 148/13-10-08 -do- 2790

6 149/13-10-08 -do- 2790

7 150/13-10-08 -do- 2800

8 151/13-10-08 -do- 2790

9 152/13-10-08 -do- 2880

10 153/13-10-08 -do- 2880

11 154/13-10-08 -do- 2995

12 155/13-10-08 -do- 2995

13 1563/13-10-08 -do- 2995

14 157/13-10-08 -do- 2995

15 158/13-10-08 -do- 2995

16 159/13-10-08 -do- 2995

17 160/13-10-08 -do- 2995

18 161/13-10-08 -do- 2.925

19 162/13-10-08 -do- 2850

20 163/13-10-08 -do- 2790

21 164/13-10-08 -do- 2790

22 165/13-10-08 -do- 2790

23 174/23-06-08 -do- 2980

24 175/23-06-08 -do- 3000

25 176/23-06-08 -do- 2980

26 177/23-06-08 -do- 2980

277

27 178/23-06-08 -do- 3000

28 179/23-06-08 -do- 2810

29 180/23-06-08 -do- 2980

30 181/23-06-08 -do- 4400

31 182/23-06-08 -do- 2980

32 183/23-06-08 -do- 3000

33 184/23-06-08 -do- 2980

34 185/23-06-08 -do- 3000

35 186/23-06-08 -do- 1930

36 187/23-06-08 -do- 2980

37 188/23-06-08 -do- 2980

38 189/23-06-08 -do- 2980

39 190/23-06-08 -do- 2980

40 437/13-10-08 -do- 2790

41 438/13-10-08 -do- 2995

42 439/13-10-08 -do- 2790

43 440/13-10-08 -do- 2925

44 441/13-10-08 -do- 2995

45 442/13-10-08 -do- 2995

46 443/13-10-08 -do- 2995

47 444/13-10-08 -do- 2995

48 445/13-10-08 -do- 2800

49 446/13-10-08 -do- 2995

50 447/13-10-08 -do- 2800

51 448/13-10-08 -do- 3000

52 449/13-10-08 -do- 2995

53 450/13-10-08 -do- 2995

54 451/13-10-08 -do- 2995

55 452/13-10-08 -do- 2800

56 453/13-10-08 -do- 2995

57 454/13-10-08 -do- 2800

58 455/13-10-08 -do- 2800

59 456/13-10-08 -do- 2790

60 457/13-10-08 -do- 2800

61 458/13-10-08 -do- 2800

62 459/13-10-08 -do- 2800

63 460/13-10-08 -do- 2995

64 461/13-10-08 -do- 2925

65 462/13-10-08 -do- 2995

66 463/13-10-08 -do- 2995

67 464/13-10-08 -do- 2790

68 465/13-10-08 -do- 2995

69 466/13-10-08 -do- 2995

70 467/13-10-08 -do- 2790

71 468/13-10-08 -do- 3000

TOTAL:- 2,85,536

(Para No. 12 of MC Miryalaguda, Nalgonda dist. For 2008-09)

278

9.3 WORKS EXECUTED - ENTRIES NOT RECORDED IN THE

MEASUREMENT BOOKS - RS.375641/-

As verified from the following vouchers during the Audit for the year 2008-09,

amount was drawn and paid towards different works as detailed below. The details of

work were not recorded in the M. Books not measured and not check measured.

Voucher no/date Particulars Paid to whom Amount

(Rs.)

13/20/6/08/ W.S Motor repairs M.A.L Motor winding Engg

works SRPT

17170

103/25-6-08/W.S Removal of Debris S.Badraiah Contractor 17170

241/8-10-08 G.F J.C.B.Hire charges Sahithi Soundarya earth

movers SRPT

11250

460/24-3-09/G.F ,, Hanuman Dozers works 16304

454/20-3-09/ G.F ,, Sahithi Soundarya earth

movers SRPT

40145

295/17-11-08/G.F ,, Sahithi Soundarya earth

movers SRPT

54195

247/20-10-08/G.F ,, Sahithi Soundarya earth

movers SRPT

28150

232/6-10-08 Removal of Debris S.Badraiah Contractor 27030

122/23-8-08/G.F ,, S.Badraiah Contractor 24930

128/8-9-08/G.F ,, S.Badraiah Contractor 22950

456/20-3-09 ,, S.Badraiah Contractor 24740

462/25-3-09 ,, Sri satya Narayana Stri seva

sangam

34450

457/20-3-09 ,, S.Badraiah Contractor 26180

482/31-3-2009 ,, Repairs of Municipal complex

toilets

13377

134/9-9-08 Collection of gravel

and spreading of

gravel

S.Badraiah Contractor 17600

Total 375641

(Para No. 10 of AR of MC Suryapet, Nalgonda dist. For 2008-09)

9.4 MC ZAHEERABAD, MEDAK - WORKS – WORKS EXECUTED BY THE

CONTRACTOR AND CHEQUE ISSUED IN FAVOUR OF MUNICIPAL

ENGINEER AND VICE – VERSA – HIGHLY IRREGULAR –RS.68,497/-

During the verification of certain work bills as shown below, it was noticed

from the connected note files that though the works were executed by the contractor -

Sri R.Viswanath, the cheques were issued in favour of the Municipal Engineer - Sri

Vasudeva Reddy and vice-versa in certain cases, which shows the collusion

persisting between the Engineers with the contractors in execution of public works

and misuse of public money. The reasons for issue of the cheques in such a manner

were not furnished to audit.

279

Cases wherein the works executed by Sri R.Viswanath, contractor and the

payment made to Sri Vasudeva Reddy,M.E are shown below.

Sl.

No. Vr.No & dt.

Amount (Rs.)

Name of the Work

1 205/3.11.08 8265 Construction of platform to power bore at

SC hostel IDSMT Colony.

2 270/3.11.08 7159 Construction of RCC Slab on existing drain

beside Reddy Hostel

3 211/3.11.08 7729 Construction of platform to public stand

post Ward.No.15

4 216/3.11.08 22921 Maintenance of septic tank beside Girls

School

Total: 46074

B) Cases wherein the works were executed by Sri Vasudeva Reddy M.E.

(Departmental execution) and the payment was made to Sri R.Viswanath, Contractor.

Sl.

No. Vr.No & dt.

Amount

(Rs.) Name of the Work

MB.

No.

1 242/26.11.08 16,823 Providing Gravel at Idgha ME/16/07

2 243/26.11.08 5600 -do- ME/16/08

Total: 22423

The above cases are only a few instances which were detected in the records

that were produced to Audit. The possibility of having many such cases cannot be

ruled out in the records which were not produced to Audit as number of M.Bs and

files were not produced in several cases in spite of the requests made through Half

Margin letters.

(Para No.49 of AR on the account of MC, Zaheerabad, Medak District for 2008-09)

9.5 MC ZAHEERABAD, MEDAK - WATER SUPPLY SCHEME –

WATER SUPPLY MAINTENANCE – NOT SELF SUSTAINING – NON

OBSERVANCE OF GOVERNMENT ORDERS.

Government in GO.Ms.No.44 MA Dept, dt: 19.01.1993, read with

GO.Ms.No.206 MA Dept, dt.17.05.1993 issued orders that the water supply

scheme should be maintained on no loss and no gain basis and it should be self

sustaining. Even the Eleventh and Twelfth Finance Commissions reiterated the

same and recommended for collection of user charges to meet the expenditure. But

in the instant case, the entire expenditure on water supply (O&M) was incurred by

the MC for Rs. 33,62,820/- whereas the receipt under the same head was Rs.

13,01,129/-, only. The Municipal council did not evince any interest in bridging

the gap by collecting user charges etc as a result the General funds were made to

suffer.

(Para No. 31 of A.R. on the accounts of MC, Zaheerabad, Medak District for 2008-

09)

280

9.6 MC MACHERLA, GUNTUR - INCURRING OF EXPENDITURE –ALL

PAYMENTS MADE IN CASH BY DRAWING THROUGH SELF CHEQUES –

HIGHLY IRREGULAR.

As verified from the cash book, vouchers etc, relating to expenditure, it was

noticed that the entire payments were made during 2008-09 (except payments made to

A.P.S.P.D.C.L) through cash by drawing the amounts through self cheques.

According to note 2 of Chapter 6 of Accounts Manual all the payments exceeding

Rs.200 shall have to be made by way of cheques only. But, the Commissioner,

Municipal Council, Macherla has made almost all the payments by way of cash,

which is against the Financial Code and as such is irregular.

(Para 13 of A.R. on the accounts of Municipal Council, Macherla, Guntur District

for 2008-2009)

9.7 MC ZAHEERABAD, MEDAK - COLLECTED AMOUNTS – ABNORMAL

DELAY IN REMITTANCE - TEMPORARY MISAPPROPRIATION

During the course of audit, it was noticed that the bill collectors have been

remitting the collected amount towards taxes and fees after lapse of considerable

period from the date of collection. The lapse has not been rectified in spite of

reporting in the previous Audit Reports. The collections shown below were made

before 31.03.09, but remitted with the delay ranging from one month to 6 months

which is highly irregular and amounts to the temporary misappropriation.

Sl.

No. Name of the B.C. I.R.No.

Amount

(Rs.) Date of Remittance

1 S. Anjaiah 55 7329 08/04/2009

2 Md.Gouri 60 20630 08/04/2009

3 K.srinivas 150 32911 08/04/2009

4 s.anjaiah 56 25206 08/04/2009

5 Md.Gouri 59 11769 08/04/2009

6 Md.Gouse 83 36586 08/04/2009

7 S.Anjaiah 57 61300 08/04/2009

8 Md.Gouri 61,62,63to87 158945 08/04/2009

9 K.Srinivas 152 to154 26023 13/04/2009

10 S.Anjaiah 6 20291 4/6/2009

11 Md.Gouri 1 9283 16/6/2009

12 S.Anjaiah 4 to6 32050 16/6/2009

13 Md.Gouse 1 to8 24828 18/6/2009

13 K.Srinivas 7&8 13863 23/6/2009

14 S.Anjaiah 8 11410 23/6/2009

15 Yadaiah 72to77 188165 24/6/2009

16 Yadaiah 81 to82 51166 2/7/2009

17 Yadaiah 83&84 43715 2/7/2009

18 Yadaiah 85 to88 83179 4/7/2009

19 Yadaiah 1 to 3 42901 4/7/2009

20 Yadaiah 4 to 6 76024 23/7/2009

281

21 Yadaiah 7 53390 23/7/2009

22 Yadaiah 8 23521 24/8/2009

23 Yadaiah 9 to 16 137472 2/9/2009

24 Yadaiah 17 to19 43838 6/10/2009

25 Yadaiah -- 20575 6/10/2009

Total 1256370

(Para No. 19 of A.R. of M. C. Zaheerabad, Medak Dist. for the year 2008-09)

9.8 MC PUNGANURU, CHITTOOR – WORKS – EXECUTION OF WORKS

IN MUNICIPAL AREA – CHECK MEASUREMENT NOT DONE BY

ENGINEERING AUTHORITY BEFORE MAKING PAYMENT – NEEDS

ACTION – Rs. 1256544/-

The following works were executed in Municipal area during the year under

report. But the measurements of said works were not check measured by the

engineering authority before making payment to contractors as per Art. 174 of APTC

Vol - I. As such the expenditure incurred is held under objection. Early action would

need to be taken to obtain the same from the engineering authority and produce to


Vr no. & date Nature of works MB. No. Amount

407/12.08 Providing pvc pipe line in 19th

ward

12/07-08 18404

96/7.08 Construction of censers in 19th

ward

27/03-04 16000

398/12.08 Repairs of culvert & Rehabitation

of cc road

24/03-04 24437

79/7.08 Providing cc road 23/05-06 24458

84/7.08 Laying of cc road 9/07-08 24207

(002)283/8.08 Laying of cc broad 5/07-08 24228

399/12.08 Providing pipeline in 19th

ward 5/07-08 16442

11/5.08 Construction of cc drain 8/07-08 9811


81/7.08 Repairs of RR drain 20/05-06 17507

85/7.08 Laying of cc road 11/05-06 24105

14/5.08 Providing gravel for pips 11/05-06 17076


78/7.08 Rehabitation of cc road 3/05-06 23598

15/5.08 Laying of gravel road 3/05-06 16615

273.10.08 Providing pipe line 4/99-219 24310

87/07-08 Providing cc paten works 9/99-219 24158

13/5-08 Repairs to cc drain 9/99-219 17440

114/8-08 Construction of culvert 11/99-219 24363


86/07-08 Providing cc road 13/03-04 24368

220/10-08 Formation of gravel road 06/03-04 21778

(002)292/8-08 Construction of RCC culvert 31/03-04 23247

115/8-08 Providing cc drain 31/03-04 24296

282

116/8-08 Laying of cc road 23/03-04 24231

20/6-08 Construction of cc drain 05/03-04 24143


403/12-08 Providing pipeline 05/03-04 6417

406/12-08 Providing pvc pipeline 05/03-04 16841

91/7-08 Providing cc paten works 05/03-04 24322



286/8-08 Rehabitation of cc road 05/03-04 23775


100/7-08 Construction of culverts cc drain 05/03-04 24226


12/5-08 Providing cc drain & road 05/03-04 22976



19/6-08 Repairs of RR culvert 24/05-06 24125


301/11-08 Laying of cc road 24/05-06 18043



77/7-08 Repairs of RCC culvert 22/03-04 24162


06/5-08 Repairs to drain 9/03-04 17000

83/7-08 Laying of cc road 9/03-04 23986

80/7-08 Providing RCC culvert 03/03-04 24134

272/10-08 Providing PVC pipeline 03/03-04 24043

08/5-08 Repairs to cc road 03/03-04 20000



300/11-08 Laying of gravel road 12/05-06 22171


40/4-08 Extension of pipeline 12/07-08 17163


117/8-08 Laying of cc road 24/03-04 24249

Grand Total 1256544

(Para No. 3 AR of MC Punganuru, Chittoor dist. For 2008-09)

10. NON-REMITTANCE OF THE DEDUCTIONS / RECOVERIES FROM

THE VOUCHERS / PAY BILLS / CONTINGENT BILLS




account within a prescribed time under the relevant statutory provisions which also


283

The deductions normally made from the work bills / pay bills that are to be

remitted to Government account are hereunder.

Work Blls

6. Income Tax

7. Sales Tax/VAT


Pay Bills

9. Profession Tax


11. G.I.S Premium.



The defects noticed were pointed out in the respective Audit Reports. Some of

them are as under.

A Consolidated Statement No. 4 (2) 2 showing the audit objections on Non

remittance of Deductions/Recoveries made from the vouchers /Pay Bills/Contingent

Bills is appended to the Report from which it could be seen that an amount of Rs.

597.09 lakhs was pointed out in 371 Audit Paras.

10.1 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED OR

PARTLY REMITTED

As per G.O.MS.No.331, Industries and Commerce (M.I) Department, Dated

21-06-2000, Seigniorage Fees or Dead Rent whichever is higher shall be recovered

from the work bills on all Minor Minerals dispatched or consumed from the land at

the rates specified in Schedule-I and Schedule-II annexed to the said G.O as the case

may be and to be credited to the consolidated fund of State Government through the

concerned Assistant Director of Mines & Geology of the District. However, it was

observed that though the amounts were recovered from the work bills towards

Seigniorage Fees, the same were either not remitted or partly remitted to State Funds

till the close of audit. Such inaction was pointed out in the relevant audit reports of

the AMCs. Some of such instances are listed below.

SEIGNIORAGE CHARGES COLLECTED BUT NOT REMITTED

Sl.

No.

Name of the MC & District Seigniorage Charges

collected but not remitted

Rs.

Para

No.

1 Rajam, Srikakulam 26730 60

2 Yellandu, Khammam 55919 10

3 Suryapet, Nalgonda 163960 17

4 Wanaparthy, Mahaboobnagar 47127 31

5 Miryalaguda, Nalgonda 234063 15

Total:

284

10.2 INCOME TAX RECOVERIES NOT REMITTED / PARTLY REMITTED

Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b), the

authority which deducts the Income Tax from work bills or from pay bills shall remit

the same to the Income Tax Department within the first week of the next month of

such deduction. In case of failure to remit the Tax, the Drawing and Disbursing

Officer will be held responsible under section 201 (1) for payment of interest at 15%

per annum, under section 201 (1)(a) from the time of such default till the payment of

such tax and prone to levying of penalty, under section 221 up to the amount of tax

not remitted plus prosecution under section 276 B for a period ranging from three

months to seven years with fine. Though the statutory provisions are clear, it was

observed during the year under audit that the Income Tax deducted at source from the

work bills was not remitted to the Central Government Account till the close of audit.

Such irregularities noticed were pointed out in the relevant audit reports. Some of

them are shown below.


Sl.

No.

Name of the MC & District I.T to be

remitted

Rs.

Para

No.

1 Siricilla, Karimnagar 57912.65 11


3 Amadalavalasa, Srikakulam 187040 55



6 Rajam, Srikakulam 37847 60

Total: 608701.65

10.3 SALES TAX / VAT DEDUCTED BUT NOT REMITTED OR PARTLY

REMITTED

Under A.P.G.S.T Act 1957 as amended from time to time and as per


Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax @

2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for exclusive

civil contracts for laying or repairing of roads and contracts for canal digging, lining

and repairing and @ 4% of turnover for all categories of other contracts not falling in

the above mentioned category has to be recovered from the work bills and remitted to

state funds within a week from the date of recovery failing which the Drawing Officer

has to pay personally 24% penal interest besides remitting the amount to state funds.

It was observed that Sales Tax/ VAT deducted at source from the work

bills was not remitted to the state funds till the close of audit. Such irregularities

noticed were pointed out in the relevant audit reports of the MCs. A few of such

cases are mentioned below.

285

VAT/ST DEDUCTED BUT NOT REMITTED

Sl.

No. Name of the MC & District

To be

remitted

Rs.

Para

No.


2 Vikarabad, Ranga Reddy 155336 25

3 Suryapet, Nalgonda 103803 16

5 Amadalavalasa, Srikakulam 214456 55

6 Siricilla, Karimnagar 107608.65 14


Total: 989364.65

10.4 NAC CHARGES DEDUCTED FROM WORK BILLS BUT NOT

REMITTED

NAC charges effected from work bills were not remitted to till the close of

audit. Such inaction of the Executive Authority was pointed out in the relevant audit

reports and some such instances are shown below.

NAC Charges

Sl.

No. Name of the MC & District

Deducted

but not

remitted

Rs.

Para

No.


2 Gadwal, Mahaboobnagar 23397 49


4 Amudalavalasa, Srikakulam 20809 56

Total: 64585

10.5 LIBRARY CESS COLLECTED BUT NOT REMITTEE TO ZILLA

GRANDHALAYA SAMSTHAS

Under Section 20 of the A.P Libraries Act 1960, levy of Library Cess by the

Gram Panchayats, Municipalities is obligatory and to be collected at 8 paise per every

rupee of the property tax. This should be collected along with the House Tax and

remitted to the Treasury to the credit of the Z.G.S at the end of every month. During

the year under audit, it was observed that though amounts towards Library Cess were

collected along with House Tax / Property Tax the same were not remitted to Z.G.S

funds till the close of audit. Such inaction was pointed out in the relevant audit

reports.

286


Sl.

No.

Name of the MC & District Collected but not

remitted to ZGS

Rs.

Para

No.

1 Manuguru, Khammam 235093 6


3 Tandur, Ranga Reddy 814682 19

4 Tuni, East Godavari 287466 2

Srikalahasti, Chittoor 1093928 3

5 Markapur, Prakasam 2786001 8(5)

6 Amudalavalasa, Srikakulam 449691 62

Chittoor, Chittoor 4400241 3

Total: 10862089

10.6. PROFESSION TAX DEDUCTED FROM PAY BILLS – BUT NOT

REMITTED

Profession Tax deducted from Pay Bills was not remitted to concerned Head

of Account fully in some cases till the close of audit. Such inaction of the Executive

Authority was pointed out in the relevant audit reports.


Sl.

No. Name of the Municipal Council & District

Amount

Collected but

not remitted

Para

No.

1 Markapur, Prakasam 145140 9(1)

2 Bhongir, Nalgonda 800 11(b)

Total: 145940

10.7 DEDUCTIONS / RECOVERIES OF G.I.S PREMIA NOT REMITTED OR

PARTLY REMITTED

In Place of the Family Benefit Fund, the A.P State Employees Group

Insurance Scheme, 1984 was introduced with effect from 01-11-1984

Vide.G.O.Ms.No.293, Finance & Planning (F.W.Admn.II) Department, Dated 08-10-

1984. All those employees who were in service as on 01-11-1984 and who join

service on or after 01-11-1984 would compulsorily become members in this scheme.

Drawing and Disbursing Officer Concerned has to recover Group Insurance Premium

from the Pay Bills as per the rates fixed for the Groups classified and remit to state

funds immediately. But it was observed that in some cases the G.I.S Premium

deducted from Pay Bills was not remitted to State Funds till the close of audit.

287

Some such cases are shown below.

Sl.

No.

Name of the Municipal

Council & District

Amount

Collected

Amount

Remitted

Balance to

be

Remitted

Para

No.

1 Markapur, Prakasam 62163 33505 28658 9(1)

Total: 62163 33505 28658

10.8 G.P.F DEDUCTED BUT NOT REMITTED

As per rule 10(1) m of G.P.F Rules, 9% of the basic pay of an employee

(without insurance) or 4% of basic pay of an employee (with insurance) has to be

compulsorily recovered towards monthly subscriptions to his/her G.P.F Account. It

was noticed in audit that though the G.P.F amount was deducted from the Pay Bills

the same was not remitted to concerned head of account till the close of audit. Such

defects noticed were pointed out in the Audit Reports concerned.

Some such cases are shown below.

Sl.

No.

Name of the Municipal

Council & District

Amount

Collected

Amount

Remitted

Balance to

be Remitted

Para

No.

1 Markapur, Prakasam 422160 393160 29000 1

Total: 422160 393160 29000

10.9 AP EMPLOYEES WELFARE FUND – NOT REMITTED

As per G.O.Ms.No.68 Fin & Plg. Department, dt.24-04-1992 newly recruited

employees have to contribute a sum of Rs. 50/- from the first salary of the employees

and other employees Rs.20/- every year from the salary of March payable in April and

credited to the Employees Welfare Fund Account.

However it was observed that the said contribution is not being collected and

remitted or partially remitted in certain cases. Such defects noticed were pointed out

in the Audit Report concerned.

Some of such instances are listed below.

Sl.

No.

Name of the Municipal Council & District

Amount

Collected but

not remitted

Para

No.

1 Markapur, Prakasam 900 1

2 Bhongiri, Nalgonda 2420 11(a)

Total: 3320

288


The Urban Local Bodies provide certain basic civic infrastructure and services

like Road, Drain, Street lights, Water Supply, Conservancy and solid waste


for economic development and social justice. To fulfill all the needs, the total revenue

base needs to be enhanced every year. With the raise in demand for services, the

functionaries need to have effective financial management skills and accountability

practices.





ready and should be produced to Audit for verification. Then only the transparency in


judged.


of all the Local Bodies and Urban Bodies in the maintenance and production of

records to audit are not properly being discharged. Thereby, the main access to clear

the doubt of transparency in public expenditure has not been availed. In spite of all

these guidelines and instructions, the DDOs of all local and urban bodies have failed

to maintain the records and to produce the same to Audit when ever the local teams

visited their institutions. Under the category of non – production of records to the

Audit, the major part is in works and the related records such as M.book, estimate file,



individual ARs of the concerned institution and their details are furnished here under.

Further it is a surprise to note that the heads of the institutions could not explain why

the records could not be maintained in the office and produced when ever they are

being demanded by the Audit Parties and other agencies during their local visits.



occur in the institution. Though the provisions under Rule 6 of A.P.State Audit Rules,

2000 are clear that the onus for production of records to audit lies with the Executive

Authority of the institution, in the following cases the said rule is not complied with

as they have failed to furnish various records to audit. As a result of such

inaccessibility to the records, several audit objections were pointed out in various ARs

of the concerned institutions. Records like M. Books, connected files, vouchers in

which crores of rupees transacted in many institutions form the major chunk of audit

objections under the category of non production of the records. Transactions relating

to the purchase of various contingent articles, goods etc., were not accounted for in

stock registers and produced to audit. Remittances made to the different departments

etc for which neither the acknowledgements nor any evidence produced in audit also

form part under this category. Though several half margin letters were issued for

production of the required records, the Executive Authorities did not comply with and

resulted in inaccessibility of the records and raising of paras to that extent.

289

A Consolidated Statement No. 4 (2 2 of showing the audit objections on

Non-production of records is appended to the report from which it could be seen that

an amount of Rs. 3793.26 lakhs was pointed out in 1148 Audit Paras.

A few of the paras raised in the ARs for the year 2008-09 are as shown below.

11.1 EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS Etc., - NOT PRODUCED

Amounts were drawn in the vouchers detailed in the respective audit paras

and stated to have been spent on execution of works during the year. But the

sanctioned estimates, measurement books and agreement files were not produced to


A few such cases are mentioned below.

Sl.

No.

Name of the

MC & Dist.,

Particulars of the records not

produced

Amount

involved

Rs.

Para No.

1 Miryalaguda,

Nalgonda

Measurement Books and files

not produced

4507322

20

2 Punganuru,

Chittoor

M .books and connected Files 1954157 4

3 Wanaparthy,

Mahaboobnagar

M. Books and connected files 5378754 35

4 Siricilla,

Karimnagar

M. Books and Estimates 1107161 21

5 Tuni, East

Godavari

M. Books and Estimates 931128 12

Chittoor,

Chittoor

M. Books, Estimates and

agreements

5996127 4

Amadalavalasa,

Srikakulam


connected files

836285 73,74,75

& 78

Total

11.2 PAID VOUCHERS/CHALLANS NOT PRODUCED:

Audit came across several cases where amounts were drawn from the funds

of MCs, but, the connected paid vouchers/challans were not produced to audit for

verification. Such irregularities noticed were pointed out in the relevant Audit

Reports. A few such cases are given below.

Sl.

No

.

Name of the

AMC & Dist.,


produced

Amount

involved

(Rs.)

Para

No.

1 Punganuru,

Chittoor

Providing of pipeline, construction of

CC drain etc. – connected vouchers

1238691 4

290

2 Punganuru,

Chittoor

CC charges paid to Electricity

Department – Sub-Vouchers and

Payee’s acknowledgement

1140000 4

3 Tuni, East

Godavari

Private sanitation, night sanitation etc.

– paid vouchers

1165967 19

4 Wanaparthy,

Mahaboobnagar

IHSDP Scheme funds – paid

vouchers/bills

300000 47

5 Gadwal,

Mahaboobnagar

Payments made towards preparation of

estimates and project reports for under

ground drainage under IHSDP scheme,

delivery of hand pumps etc.

10125198 78

6 Siricilla,

Karimnagar

Vouchers 4591577 17

Total 18561433

11.3 RECORDS / REGISTERS / FILES NOT PRODUCED:

During the audit for the year 2008-09, it was noticed that expenditure was

incurred for the stated purposes as shown in the respective audit paras. But, the

connected Registers, Records and Files were not produced for verification in audit. A

few of such cases are detailed below.

Sl.

No

Name of the MC& Dist., Particulars of the records

not produced

Amount

Rs.

Para

No.

1 Manuguru, Khammam Tractor Log book 175995 10

2 Suryapet, Nalgonda Tractor-wise Log Books 1086061 23

3 Mahaboobnagar,

Mahaboobnagar

Log books 579671 38

4 Wanaparthy,

Mahaboobnagar

Stock Register 2082904 41

5 Gadwal, Mahaboobnagar Building permission file and

related files

344201 50

Total 4268832

11.4 UTILISATION OF CELL PHONES OF MUNICIPAL STAFF -

SANCTION OF COMPETENT AUTHORITY NOT PRODUCED RS. 123537/-

HELD UNDER OBJECTION - NEEDS ACTION.

During the course of audit, it was noticed that an amount of Rs. 123537/- was

spent towards utilization of cell phones from chair person to contingent labour

monthly charges. But the list of employees that are eligible for this provision was not

produced to audit for verification.

In spite of General instructions issued by the Government on spending the

funds of local bodies read with article 3 of Andhra Pradesh financial code according

to which every government servant who incurs or authorizes the incurring of any

expenditure from public funds should see that it does not contravene the principals of

financial property and every government servant is expected to exercise the same

291

diligence and care in respect of any expenditure from public money under his / her

control as a person of ordinary prudence would exercise in respect of his own money.

Due to non-production of the said authority, the amount which was incurred /

spent for taking services of cell phones Rs. 123537 is held under objection in audit.

The cell phone charges paid to the ineligible employees may be recovered from them.

Otherwise, the entire amount may be recovered from the DDO.

Sl.

No. Monthly Year Vr. No. & Date

Utilisation No

of employees

non - officers

Amount

1 3/08 19/22.4.2008 1 to 18 13018

2 4/08 49/1.5.2008 1 to 18 5801

3 5/08 83/13.6.2008 1 to 18 10954

4 6/08 141/9.7.2008 1 to 18 11816

5 7/08 158/28.8.2008 1 to 18 11558

6 8/08 189/29.9.2008 1 to 17 21011

7 9/08 267/21.10.2008 1 to 16 11093

8 10/08 284/10.11.2008 1 to 16 10790

9 11/08 354/17.12.2008 1 to 15 10820

10 12/08 381/20.1.2009 1 to 16 10915

11 1/08 444/13.2.2009 1 to 8 5761

12 2/08 Bills not produced for audit

Total:- 123537

(Para No.18 of Audit Report of MC, Siricilla, Karimnagar District for 2008-09)

11.5 LOG BOOKS NOT PRODUCED RS. 914358

During the year under report the following vehicles Diesel / petrol

consumption records i.e. log books for the year 2008-09 were not produced In spite of

issue of half margin letter, the authorities concerned have not responded.

Due to non production of the log books the correctness of the Diesel / Petrol

consumption was not verified and entered expenditure incurred towards the Diesel /

Petrol was held under objection.

Sl.

No. Name of the Vehicle / Machine

Diesel / Petrol Consumed

worth Rs.

1 Flogging machine 244552.35

2 Autos (4) 106640.60

3 AP 15V 2951 65081.10

4 AP 15T 349 148774.90

5 Office Generator 26690.45

6 Tractor ( New ) 67015

7 AP 15 X 6559 155766

8 APR 7506 94552

9 APTV 936 5284

Total:- 914356.40

(Para No.20 of Audit Report of Municipalities, Siricilla, Karimnagar District for 2008-09)

292

11.6 RAJIV NAGARA BATA – GRANT ADJUSTED – RELEASE ORDERS

AND OTHER RECORDS NOT PRODUCED –OBJECTED –Rs. 86,55,677/-

I) On verification of the Cash book relating the Rajiv Nagara Bata Scheme, it

was noticed that an amount of Rs.5,70,200/- was received under Grant-in-aid and

unspent balance amounting to Rs. 99,84,380/- was carried forward to the current year.

An amount of Rs. 86,55,677/- was spent during the year under report. The correctness

of the expenditure could not be examined in audit due the reason set forth.

1. Grant release orders were not produced to know the purpose of the grant

for which the same was released.

2. The expenditure was incurred under following heads

Details of work Amount (Rs.)

a) Laying of CC roads 174045

(b) Construction of drains 176716

© Purchase of Bleaching powder 32, 381

(d) Installation of public taps 271582

(e) Rectification of water leakages 10710

(f) Purchase of PVC pipes 18980

(g) Purchase of tube lights 18620

(h) Electrical material and cables 298896

(i) PWS material 377165

(j) Gravelling 96395

(k) Mobilisation Advances 5844093

(l) Refund of EMD 661100

(m) Bank charges 2975

Total 8655677

The supporting records, viz, MBs, files, administrative sanction of the

competent authority etc., were not produced for verification in spite of request made

in the 8 Half Margin letters issued during the course of audit addressing the

Commissioner, MC Zaheerabad.

The Government have issued instructions to spend the grants for

developmental works in order to improve the urban infrastructure. Contrary to

Government Orders, the expenditure was made for maintenance works also as noted

above.

In absence of the records, the expenditure of Rs 8655677/- could not be

admitted in Audit and held under objection.

(Para No. 33 of A.R. of M. C. Zaheerabad, Medak District for the year 2008-09)

293



the audit is annexed vide statement No 4 (2) 2. A total number of 67 cases involving

an amount of Rs.59.54 lakhs were pointed out in the relevant ARs.

Cases of misappropriations of money noticed in audit were pointed out in the

Audit Reports concerned. A few of such cases are reproduced below.

12.1 MC WANAPARTHY, MAHABOOBNAGAR - DRAWAL OF

HONORARIUM OF MEMBERS FROM MUNICIPAL GENERAL FUNDS -

SHORT DISBURSEMENT - NEITHER REMITTED TO MUNCIPAL FUNDS

NOR DISBURSED TO THE MEMBERS - MISAPPROPRIATION - NEEDS

RECOVERY RS. 41,200/-

In the following vouchers, a sum of Rs. 155000/- was drawn towards

honorarium of members from Municipal General Funds for disbursement.

But as seen from the acquittance Register of Honorarium to members, it is

noticed that a sum of Rs. 114600/- only disbursed to the members leaving a balance of

Rs. 41,200/-, which was neither disbursed to the members nor remitted to Municipal

General Funds as shown here under.

Sl.

No.

Vr. No &

Dt.

Fund

in

Which

drawn

Details

Amount

Drawn

(Rs.)

Amount

disbursed

(Rs.)

Balance

(Rs.)

1 87/11-5-2008 GF-I Honorarium to

Chair person, V.C.,

and Council

Members

39200 38200 1000

2 55/18-6-2008 GF-II -do- 5/2008 38200 0 38200

3 115/5-12-08 GF-II -do- 10/2008 39200 38200 1000

4 116/5-12-08 GF-II -do- 11/2008 39200 38200 1000

Total Rs. 155800 114600 41200

It is clear that the amount was misappropriated by way of short disbursement

of drawn amount.

Therefore, early action would need to be taken to recover the un-disbursed

amount of Rs.79400/- from the person or persons responsible and credited to

Municipal General Funds concerned under intimation.

(Para No. 53 of AR of MC Wanaparthy, Mahaboobnagar district for 2008-09)

294

12.2 MC SIRICILLA, KARIMNAGAR - PROPERTY TAX COLLECTED BY

SRI SYED AMJAD B.C. BUT NOT REMITTED TO MUNICIPAL FUNDS -

NEEDS RECOVERY RS. 19828.

During the course of audit it was noticed that a total sum of Rs. 19828 was

collected by Sri. Syed Amjad B.C. towards Property Tax and the same was entered in

Irsalnama register at P. No. - Nil - Dt:- 6.1.2009. But the said amount was not

remitted to the Municipal funds by the bill collector concerned and no action was

taken by the Municipal commissioner so far even after issue of half margin letter at

the time of audit and no reply was received to the half margin letters. Thus it is

construed that the amount was misappropriation by the said B.C.

Sl.

No.

Book No. RPT No. / Dt Amount

(Rs.)

1 220 21960/6.1.2009 720

- 961/ - 667

- 962/ - 667

- 963/ - 319

- 964/ - 417

- 965/ - 201

- 966/ - 2366

- 967/ - 598

- 968/ - 3570

- 969/ - 876

- 970/ - 502

- 971/ - 502

- 972/ - 819

- 973/ - 262

- 974/ - 150

- 975/ - 4859

- 976/ - 548

- 977/ - 1156

- 978/ - 629

Total:- 19828

Immediate action would need to be taken to recover the said amount from

Syed Amzad the B.C. and credit to municipal fund.

(Para No. 22 of AR of MC Siricilla, Karimnagar dist. For 2008-09)

12.3 MC WANAPARTHY, MAHABOOBNAGAR - AMOUNT COLLECTED

BUT NOT REMITTED TO MUNICIPAL FUNDS (CHITTA) -

MISAPPROPRIATION - Rs. 4, 51,370/-

During the course of audit, in the following Receipt numbers a sum of Rs.

451370/- was collected by the I/c bill collector R. Srinivasulu but the amount was not

remitted to Municipal funds till the close of audit.

Therefore, the amount of Rs. 451370/- may be recovered from the individual

with penal interest and remitted to the Municipal funds under intimation to audit.

295

COLLECTED BUT NOT REMITTED

R. SRINIVASULU.

Thus the collected amount was misappropriated by the said BC.

B.No. R.No. Date Amount

634 080063301 to 63325 23/11/09 44455

634 Irsalnama P.No.244 63326 to 63350 23250

634 63351 to 63375 11275

634 63376 to 63400 1-12-09 10360

635 080063401 to 425 1-12-09 17777

635 63426 to 63450 5/12/09 8275

635 63451 to63475 5/12/09 5200

635 63476 to 63500 9/12/09 7675

637 63601 to 63625 9/12/09 6600

637 63626 to 63650 10/12/09 9700

637 63651 to 63675 11/12/09 6900

637 63676 to 63700 11/12/09 9085

638 63701 to 63725 15/12/09 6400

638 63726 to 63750 15/12/09 9400

638 63751 to 63775 16/92/09 10200

638 63776 to 63800 17/12/09 9300

639 63801 to 63825 17/12/09 9425

639 63826 to 63850 18/12/09 10550

639 63851 to 63875 21/12/09 18600

639 63876 to 63900 22/12/09 9600

641 080064001 to 64025 2/1/10 11050

641 080064026 to 64050 2/1/10 5800

641 080064051 to 64075 7/1/10 13877

641 080064076 to 64100 7/1/10 6600

643 08006420 to 64225 8/1/10 6875

643 080064226 to 64250 11/1/10 7400

643 080064251 to 64275 11/1/10 5489

643 080064276 to 64300 12/1/10 8945

644 080064301 to 64325 16/1/10 11175

644 080064326 to 64350 18/1/10 6225

644 080064351 to 64375 18/1/10 7375

644 080064376 to 64400 19/1/10 7525

645 080064501 to 64525 22/1/10 8925

645 080064526 to 64550 23/1/010 9925

645 080064551 to 575 25/1/10 46055

645 080064576 to 64600 27/1/10 9500

646 680064401 to 64425 2/2/10 12225

646 080064426 to 64450 8/2/10 9177

646 080064451 to 64475 9/2/10 7825

646 080064476 to 64500 10/2/10 5375

Total 451370


296

12.4 MC SURYAPET, NALGONDA - AMOUNT COLLECTED TOWARDS

LICENCE FEE AND BIRTH AND DEATH CERTIFICATE FEE – SHORT

REMITTANCE - NEEDS RECOVERY Rs.10,990/-

On verification of the receipt Books, it was noticed that a sum of Rs.11,040/-

was collected towards licence fee and for issue of Births and Deaths Certificates. But

as verified from the Daily Cash Register only a sum of Rs.50/- was remitted to the

M.C. Funds instead of Rs.11,040/-. Thus a sum of Rs.10,990/- was misappropriate as

detailed in the Statement.

Receipt Book

No Receipt S.N

Amount

collected

Amount was

shown in the

D.C.R

Difference

484 48390/10-7-08 130 50 180

254 25394/24-3-09 50 0 50

25395/24-3-09 50 0 50

25396/24-3-09 50 0 50

25397/25-3-09 50 0 50

25398/25-3-09 50 0 50

25399/25-3-09 50 0 50

25400/25-3-09 50 0 50

41 4001 to 4100 5260 0 5260

61 6001 to 6100 5300 0 5300

Total 11040 50 10990

(Para No. 27 of AR of MC Suryapet, Nalgonda dist. For 2008-09)

12.5 M.C. YELLENDU, KHAMMAM - IRSALNAMA AMOUNTS NOT

BROUGHT TO CASH BOOK AND NOT REMITTED IN MUNICIPAL

GENERAL FUNDS - TEMPORARY MISAPPROPRIATION OF MUNICIPAL

FUNDS - NEEDS RECOVERY RS.60,215/-.

During the course of audit, it was noticed that a sum of Rs. 60,125/- was

collected by Smt. K. Rajeswari, JA and the same was stated to have been handed

over to Sri K.Ravi during the period from 09.09.2009 to 29.09.2009 as detailed

below. But, the same was not remitted to the MC funds, as such it is construed as

misappropriated.

Hence, the same would need to be recovered from the person or persons

responsible with penal interest and remitted to the M.C. funds under intimation to

audit.

Sl.

No.

Name of the

Collection staff

Date of

Collection

Irsal

Page

No.

Collection

Amount

(Rs.)

Whom taken

the amount in

office

01. Smt.K.Rajeswari,

Jr.Asst. 09-09-2009 15 2965 Sri K. Ravi

02. ,, 09-09-2009 19 1905 ,,

03. ,, 09-09-2009 21 11680 ,,

04. ,, 10-09-2009 25 2955 ,,

05. ,, 15-09-2009 27 1000 ,,

297

06. ,, 17-09-2009 31 3755 ,,

07. ,, 17-09-2009 35 5990 ,,

08. ,, 22-09-2009 43 10500 ,,

09. ,, 23-09-2009 51 8335 ,,

10. ,, 25-09-2009 53 1855 ,,

11. ,, 25-09-2009 57 5425 ,,

12. ,, 29-09-2009 61 3850 ,,

TOTAL: 60215


12.6 M.C. YELLENDU, KHAMMAM - WATER SUPPLY & GENERAL

FUNDS - COLLECTION AMOUNTS NOT REMITTED TO MUNICIPAL

FUNDS - NEEDS RECOVERY RS.32,900/-

During the course of audit, it is noticed that the following amounts were

collected by the Municipal staff and the same were handed over in the office on the

date noted against them. The said amounts were not remitted to Municipal funds of

M.C. Yellandu immediately after receipt of the same from collection staff and hence

treated to have been misappropriation.

Sl.

No.

Name of the

Fund

Date of

Collection

Cash Book

PageNo.

Collection

Amount

(Rs.)

Whom taken the

amount in office

01. Water Supply

Funds 19-12-2008 141 29350

Sri S. Lingaiah,

Manager

02. General Fund 20-01-2008 113 3550 Sri S. Lingaiah,

Manager

TOTAL: 32900

Hence immediate action would need to be taken to recovered from the person

or persons held responsible with penal interest. The said amount of Rs.32, 900/-

would need to be recovered from the concerned and remit the same to M.C. funds

immediately.


13. EXCESS PAYMENTS

It was observed in audit that in several cases, excess payments were made due

to either.

(m) Incorrect calculations or

(n) Excess totaling in Bills or

(o) Admission of inadmissible claims or

(p) Lack of knowledge of Government instructions.

298

A Consolidated Statement No. 4 (2) 3 of showing audit objections on Excess

paynebts is appended to the Report from which it could be seen that an amount of Rs.

62.22 lakhs was pointed out in 154 Audit Paras.










was noticed in audit that the funds of Municipalities were several times incurred

without adhering to the laid down principles leading to the wasteful expenditure of

public money. All the cases of such wasteful expenditure observed in the audit of

Municipalities for the year 2008-09 were expenditures that were avoidable,

extraordinary and lacked proper planning.

A Consolidated Statement No. 4 (2) 3 of showing audit objections on

Wasteful Expenditure is appended to the Report from which it could be seen that an

amount of Rs. 39.13 lakhs was pointed out in 27 Audit Paras.

A few of such cases pointed out in the Audit Reports classified according to

the type of their wastage are illustrated here under.

14.1 MC SIRICILLA, KARIMNAGAR - PAYMENT OF ADVERTISEMENT

CHARGES ABNORMAL EXPENDITURE INCURRED – HELD UNDER

OBJECTION Rs. 195898/-

An amount of Rs. 195898/- was drawn and paid towards advertisement

charges in various news papers from municipal funds during the year under report.

The said amount was spent for publishing the development activities, congratulations

messages, Welcome messages on opening ceremonies & greetings on New Year or

other festivals as detailed below.

But the following irregularities were noticed in audit.

1) The authority and purpose of incurring of such expenditure on publication

was not submitted to the Audit.

2) Permission orders of the Government or higher authorities as the case may

be, were not obtained under section 130 of the A.P. municipal Act 1965 for payment

of charges towards Advertisements.

3) The expenditure of huge public money on Advertisements is not useful to

general public as it seems wasteful and un-authorized as per the Municipal Act.

299

Further it was not brought to the notice of the higher authorities in spite of

recurring nature of the objections raised on previous audit reports and the practice is

being continued.

Therefore the expenditure was held under objection and be recovered.

Annexure Vr. No. / Date Amount Purpose

152/21.8.2008 13000 Calandar publication charges

153/21.8.2008 12000 Welcomes on opening ceremonies of various

developmental programme

155/21.8.2008 17000 New year greeting by the council members

307/12.11.2008 10000 Welcome to opening ceremonies

347/17.12.2008 19380 Opening ceremony of various development

programme

348/1712.2008 12495 -- do --

351/17.12.2008 31595 Council wishes on 12th

anniversary

223/16.10.2008 15428 Development at activities

222/16.10.2008 40000 Calendar publication

224/16.10.2008 25000 Daily printing AP Ambedkar yuvajana sangham

Total:- 195898

(Para No. 25 of AR of MC Siricilla, Karimnagar dist. For 2008-09)

14.2 MC, GADWAL, MAHABOOBNAGAR - ADVERTISEMENT IN

NEWSPAPERS MAGAZINES CERTAIN DEFECTS NOTICED - WASTE FUL

EXPENDITURE RS. 64,000/-

An amount of Rs. 90,730/- was incurred towards advertisement charges in

daily news papers / Magazines from general fund as noticed below during the year

under report.

Sl.

No. Vr No / date Particulars

Amount

(Rs.)

1 281/ 23.06.07

Bill No

935963/30.11.2000.

281/23.06.07 Bill No-

974964 Dt 30.11.01.

Paper advertisement. Manager Ushodaya

Enterprises Ltd, Hyd.

Paper advertisement. Manager Ushodaya

Enterprises Ltd, Hyd.

15480

11250

2 431/29.02.08 Publication of CD of photographs Adv in

Siyasatha Daily

10000


Esthaval Daily

10000


Rehanuma Daily

10000


Manifest Daily

10000

6 430/29.2.08 Advertisement charges paid SFI magazine. 12000

7 436/29.2.08 Paper add to Advt for -Dasara - Deepavali-

Shubakankshalu

12000

TOTAL 64000

300

In memo No 60497//A1/95 Dt 14.8.1996 the Govt of A.P has ordered on news

paper advertisements.

Further there is no provision to give advertisement on festival greetings and

annual greeting and development advertisements.

Hence the expenditure can not be admitted in Audit and needs recover from

the person(s) and credited municipal funds.

(Para No. 91 of AR of MC, Gadwal, Mahaboobnagar dist. For 2008-09)

14.3 MC ZAHEERABAD, MEDAK - ADVERTISEMENTS MADE IN

VARIOUS MAGAZINES / NEWS DAILIES NEEDS RECOVERY Rs.5,23,331/-

.

During the audit on the accounts of MC Zaheerabad for the year 2008-09, it was

noticed that abnormal expenditure was incurred for advertisements which were not so

useful and purposeful.

The Advertisements with captions “Congratulations to Hon’ble MLA/MPs

“Welcome address”, “Developmental Activities taken up under the Municipality”

were made in several news dailies and in some cases not popularly known magazines.

The expenditure is avoidable, unreasonable and abnormal.

Further the Government vide GO Ms.No.37 GA Dept. (I&PR) Dated 22-01-

1994 ordered that all the advertisements should be made through public relations

department and the Govt. vide Memo No. 669291/I&PR/A1/2003 of GAD Dated 12-

09-1993, issued orders not to admit the bills in case of violation of guidelines.

Contrary to the aforesaid orders, the advertisements were made directly without

consultation of I&PR Dept. The advertisement bills were not scrutinized at least by

the public relations department and technical opinion obtained about the rates of

advertisement. Hence the expenditure of Rs.5,23,331/- could not be admitted in audit

and needs recovery from the persons or persons responsible.

SI.

No.

VR.NO./DATE AMOUNT

(Rs.)

AGENCY DT.OF

PUBLICATION

1. 94/06-06-2008 62532 ANDHRA

JYOTHI

21-10-2007

2. 166/06-09-2008 4120 -DO- --

3. 181/06-10-2008 12000 CALANDER --

4. 189/21-10-2008 48600 PRJA SHAKTHI 29-09-2008

5. 218/05-11-2008 28660 DECCAN

RAHEEMA

28-02-2005

6. 247/28-11-2008 96040 EENADU 27-11-2008

7. 262/27-01-2009 29200 DECCAN

RAHEEMA

03-10-2008

8. 301/20-02-2009 32000 MUNSIF 02-10-2008

9. 157/14-08-2008 2191 VAARTHA 09-02-2008

301

10. 158/14-08-2008 4752 JAGURUTHI 05-07-2008

11. 265/02-02-2009 30294 SURYA 22-10-2007

12. 99/17-04-2008 46094 AMODA 20-03-2005

13. 21/18-04-2008 20000 SEEIA SATH 20-10-2007

14. 28/21-11-2008 25000 BALDIA

SAMACHAR

02-02-2008

15. 69/20-05-2008 15000 ANDRA JYOTHI 18-09-2007

16. 293/09-02-2009 25000 SOUVENEIR -- 17. 296/16-02-2009 16848 --- -- 18. 20/17-04-2008 25000 BALDIA

SAMACHAR --

Total 523331

(Para No. 27 of AR of MC Zaheerabad, Medak dist. For 2008-09)

14.4 MC PALAMANERU, CHITTOOR - WASTEFUL EXPENDITURE

PUBLICATIONS OF GREETING IN NEWS PAPER WASTEFUL

EXPENDITURE - NEEDS RATIFICATION OF GOVT RS : 129980

The following payments were made towards new year greeting and birthday

greeting to public leader through publication in news paper is there wasteful

expenditure . The expenditure needs to be got ratified from the Govt., order. The

payment need recovery from the persons responsible.

Sl.

No. Vr.No. & Month Particulars

Amount

(Rs.)

1 69/6-08 Dasara subhakanchalu Visalandhar Daily

news paper

12000

2 144/9-08 State Education , Govt., Minster of

R.Changa reddy welcome greeting

Visalandra News paper

15000

3 289/12-08 Ushodaya enter prises towards welcome

of Minister

19803

4 291/12-08 Vartha daily greeting new year 13277

5 293/12-08 Sakshi daily welcome to C.M 27200

6 295/12-08 Visalandra daily Paper welcome to C.M. 10000

7 296/12-08 Praja varthi daily welcome to C.M 5200

8 297/12-08 Prajavartha monthly Vijayadashmi,

Deepavatli subhakanchalau

12500

9 298/12-08 Prajaparshed monthly for publication

calendar 07-08

15000

Total 129980

(Para No.8 of AR of MC Palamaneru, Chittoor dist. For 2008-09)

302

15. INSTANCES OF CASH/STORES UNACCOUNTED FOR

Several instances of Cash / Stores unaccounted for were noticed, a

consolidated statement of cases of unaccounted for cash / stores statement No 9 (15)

is appended to the Report.

A Consolidated Statement of Instances of cases unaccounted for is annexed in

the Statement No. 4 (2) 3 to the Report showing 22 paras involving an amount of

Rs.3.13 lakhs


According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I





transmission to the Grant Releasing Authorities concerned.

In G.O. Ms. No. 507, Fin (TFR) Deptt., dt. 10-4-2002, Government have



Autonomous Bodies and other Grant-in-Aid institutions.




As the aforesaid Government orders are not being observed by the Executive

Authorities resulted in heavy Pendency of Utilization Certificates to be furnished to

the Grant Releasing Authorities. Such cases are reported in the ARs of Municipalities

shown in the statement appended herewith.

A Consolidated Statement of cases of Pendency of Utilization Certificates is

appended in Statement No. 4 (2) 3 to the Report from which it could be seen that an

amount of Rs. 517.98 lakhs was pointed out in 120 audit paras

16.1 MC, YELLENDU, KHAMMAM -NON-SUBMISSION OF UTILIZATION

CERTIFICATE

According to Article 211 A(a) of the A.P., Financial Code Volume-I, it is the

responsibility of the grant receiving authority to send the utilization certificates in the

proforma prescribed, duty getting the same certified by the Audit Officer, State Audit.

But the same were not furnished to audit for certification and for onward transmission

to the grant releasing authority.

303

Sl.

No.

Purpose of

Grant

UC due to

submission UC submitted

U/c pending

submission

No. Amount No. Amount No. Amount

1 T.S.P. grants 1 153589 - Nil - 1 153589

2 Building grant 1 2363717 - Nil - 1 2363717

3 NOAP 1 5455100 - Nil - 1 5455100

4 Midday meals 1 170538 - Nil - 1 170538

5 Dhobighat Fund 1 467334 - Nil - 1 467334

6 T.F.C. 1 1811983 - Nil - 1 1811983

7 Special Grant 1 830979 - Nil - 1 830979

8 Pavala Vaddi 1 404563 - Nil - 1 404563

9 Spl.Sanitation 1 60485 - Nil - 1 60485

Total 9 11718288 9 11718288

(Para No. 27 of AR of MC, Yellendu, Khammam dist. For 2008-09)

16.2 MC VIKARABAD, RANGA REDDY - NON-SUBMISSION OF THE

UTILISATION CERTIFICATES – PENDING.

According to Art.211 (A) 2 of the A.P. Financial Code Vol. I, it is the

responsibility of the grant receiving authority to send the utilization certificate in the

proforma prescribed duly getting the same certified by the Dist. Audit Officer, State

Audit.

In the following schemes the grant in aid was received and the expenditure

was incurred during the year. But the Utilization Certificates along with voucher wise

particulars were not furnished for countersignature by Audit department and

certification and transmission to the authorities concerned. The reasons for not

submitting the utilization certificate was not explained.

(Para No.33 of AR of MC, Vikarabad, Ranga Reddy dist. For 2008-09)

Sl.

No.

Sl No. in the

statement

Name of the scheme Expenditure

In Rs.

Bank name & Account

No.

1 4 NSDP 38180 AB 10363

2 7 SJSRY(Revolving

fund

67500 CB 9653

3 8 SJSRY(Subsidy) 278837 SBH 52128124867

4 16 APRURMSP 1387042 AB 61301100014995

5 19 Drought 525110 SBH 52128162439

6 20 Flood grant 83155 AB 61301100010604

7 22 MLA GRANT 825830 Sbh 5218162428

8 39 Solid waste

management

1508311 AB 15965

9 41 Office Building a/c II 233844 SBH 62024741837

10 44 DCP Funds 298585 SBH 62066154283

TOTAL 5246394

304

16.3 MC, AMADALAVALASA, SRIKAKULAM - NON-SUBMISSION OF

UTILISATION CERTIFICATES-NEEDS EARLY ACTION

The utilization certificates for the grants released during the year have not

been produced to audit for verification. The grants released and expenditure incurred

as detailed here under.

According to Article-211-A (2) of the A.P Financial Vol.I, it is the

responsibility of the grant receiving authority to send the utilization certificates in the

prescribed proforma duly getting the same, certified by the Dist. Audit Officer, State

Audit. But the utilization certificates for the following grants (Separate statement

enclosed) were not furnished to audit for counter signature and on ward transmission

to the grant releasing authority.

Further, the utilization certificates are also pending submission for the

previous years, as already pointed out. Hence action would need to be taken to

submit the U.Cs immediately.

Sl

No

Name of the

Grant/

Scheme

Grant

Amount

(Rs.)

Amount

Utilised

(Rs.)

Unspent

Including

Opening

Balance

1 S.J.S.R.Y.Infraustructure 131441 341 906028.42

2 Pavala Vaddi 229 6000 435.05

3 Self Employment 20205 62700 319394.71

4 DWCUA 13538 1064752 128486.62

5 T & C Revolving Fund 2938 0 86151.27

6 Community Structure 3115 0 91349.42

7 ACDP 4733 120000 78273.44

8 Solid Waste Management 1084571 1005465 162807.44

9 N.S.D.P 10884 356930 119088.07

10 Flood Damage Relief

Fund 97184 729379 2134914.36

11 Water Suplly Contribution 43887 56904 1253011.01

12 T.P. Development

Charges 25807 174813 765169.54

13 E.I.U.S. 526797 0 987954.62

14 Tribal Sub Plan 310548 137792 223639.23

15 Elections 57 0 1678.93

16 Rajiv Nagar Bata 234 0 6853.34

17 Office Building 6236945 3494249 3746547

18 Shop Room R. F( IDSMT) 10252 0 300625.22

19 ILCS Stage II 49669 0 1457378.37

20 IDSMT 254100 0 7451107.68

21 Adverse seasonal

Conditions 10382 0 304434.27

22 School Buildings 465872 0 518890.94

23 A.P.U.R.M.S.P 7368 0 64762.14

305

24 A.P.U.R.M.S.P 5088767 3227894 1981000

25 Park & Play Grounds 195214 378450 2301698.86

26 E-Seva Kendram 436 0 12764.66

27 B.S.Y. 403 40 11882

28 U.B.S.P 1797 0 52704

29 U.B.S.P 7817 0 229266

30 U.B.S.P 96 0 2817.90

31 Adverse seasonal

Conditions 490 0 14382

32 Old age pension 9835605 9679334 205995.50

33 N.F.B.S 3943 40 116553

34 Plan Grant 3370000 0 3370000

35 Janmabhoomi 15175 0 448741

36 Community Seva

Kendram 277 40 8147

37 Flood Damage works 8453 40 249940

38 D.C.P 7798 0 228635.87

39 Akshara Kranthi 1475 0 2137.75

40 NRY 510 0 14948

41 A.C.D.P 1081516 1399045 242594

42 Pavala vaddi 513947 560161 34257

43 MEPMA 70052 63641 6411

44 Urban Health Centre 528686 278058 250810

45 Building Penalisation

Scheme

281060 215 280845

46 Infraustructure 3603 0 105649.67

47 Pavala Vaddi Pathakam 191 40 5595

Total 30328067 22796323 31286756.3

Hence, action would need to be taken to submit the Utilization Certificates

for the counter signature of the District Audit Officer, State Audit, Srikakulam

immediately.

(Para No. 85 of AR of MC Amadalavalasa, Srikakulam dist. For 2008-09)



there under, the audit of local authorities and schemes as entrusted by the Government

is being conducted and various defects noticed during the audit also pointed out in the

relevant ARs every year. In the case of serious irregularities, Special Letters are also

issued to the Chief Executive Authorities concerned to make the loss good to the

funds of the institutions concerned.


Audit Act, 1989 is initiated for recovery of the amounts involved in the clear cases of


payments. The amount surcharged have to be recovered from the concerned treating

them as Revenue Recoverable under Revenue Recovery Act , 1864 and as per sub-

306

rule 5 of rule 9 of A.P. State Audit Rules issued in G.O. Ms. No. 130, Finance &

Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the

cases mentioned in the statement appended herewith.

A statement of 190 such cases involving an amount of Rs. 47.44 lakhs is

appended as Statement No. 4(2) 3 to this report.

18. OTHERS

A Consolidated Statement No. 4 (2) 3 showing audit objections on others is


lakhs was pointed out in 367 Audit Paras .

18.1 MC, VIZIANAGARAM –LIBRARY CESS NOT REMITTED

TO ZGS – NEEDS REMITTANCE TO ZGS FUNDS – Rs. 250000/-

During the course of audit, it is noticed that an amount of Rs.2,50,000/- was

drawn and paid from Library Cess Funds (A/c No.10576588604) towards expenditure

on surrender leave salaries of PH staff under 002 MC General Funds. Which is

irregular and violation of rules. The Library cess collected may be kept in inoperative

account and transferred to ZGS in monthly intervals.

Hence the same amount may be reimbursed from 002 Municipal General

Funds and remitted to the Secretary, Zilla Grandhalaya Samstha and Vizianagaram to

head of account concerned.

(Para No. 78 of AR of MC Vizianagaram, Vizianagaram dist. For 2008-09)

18.2. MC, ZAHEERABAD, MEDAK – ANALYSIS OF REVENUE RECEIPTS

WITH REFERENCE TO THE TARGETS FIXED IN THE BUDGET:

During year under report the actual in respect of revenue receipts fell short of

the budget estimates as shown below.

Rs. in lakhs

Sl.

No. Item of receipt

Budget

estimate Actuals Shortfall

Percentage

of short fall

1. Property tax 159.72 97.20 62.52 39.14

2. Advertisement tax 0.66 0.16 0.50 75.75

3 Vacant land tax 6.65 0 6.65 100

4. Surcharge on stamp duty 35.92 78.75 0 0

5. Entertainment tax 9.97 8.51 1.46 14.64

Other misc revenue:

1. Mutations 0.66 0.20 0.46 70

2. Sale of tender schedule

and other forms

0.31 0 0.31 100

307

3. Registration of birth and

deaths

0.60 0.018 0.58 97

4. Contractors registration fee 0.26 0 0.26 100

5. Warrant fee 0.12 0 0.12 100

6 Water charges 18.63

Remunerative Enterprises:

1. Land Rents 0.45 0 0.45 100

2. Market fee 3.32 2.45 0.87 26.20

3. Trade licence fee 1.46 0.20 1.26 86.30

4. Rents of buildings and

shops

11.97 0.37 11.6 97

On the whole, targets were not reached in many items of the revenue. But,

100% shortfalls are noticed in the respect of many items of non-tax revenue.

Necessary steps needs to be taken to improve the collections in respect of the sources

of non-tax revenue.

(Para No. 8 of A.R. of M. C. Zaheerabad, Medak District for the year 2008-09)

18.3 MC CHIRALA, PRAKASAM - DRAWAL OF AMOUNT FROM IHSDP

FUNDS THROUGH UN-KNOWN CHEQUES - EXPENDITURE DETAILS

NOT RECORDED IN CASH BOOK - VOUCHERS & CHEQUE BOOK NOT

PRODUCED – CHANCE FOR MISAPPROPRIATION - NEEDS

INVESTIGATION - RS. 5, 67,617/-

During the course of audit, while verifying the Cash Book with reference to

the Bank Statement of IHSDP Funds lodged in Andhra Bank, Wanaparthy bearing

A/c No. 063210011903823, it is noticed that a sum of Rs. 5,67,617/- was drawn

through cheques as noted below:-

1) Cheque No. 988891, Dated: 31.12.2008 Rs: 3,82,478/-

2) Cheque No. 988892, Dated: 01.01.2009 Rs: 1,85,139/-

---------------------

Rs. 5,67,617/-

---------------------

On verification of Cash Book, it is noticed that the details of expenditure were

not pointed out in cash book and the vouchers were also not produced in spite of

several reminders through Half Margin letters. Further, the above cheque numbers

were not tallied with the cheque series of IHSDP account. The cheque book of above

series was also not produced to audit, due to which to whom the cheques were issued

could not be verified in audit. In view of the above, it is presumed that another cheque

book might have been obtained from the bank and drawn the amount from IHSDP

funds without noting the details of expenditure in the cash book.

308

Therefore, the executive authority concerned would need to investigate the

matter and if any loss/fraud caused in this regard may be recovered from the person or

persons responsible and credited to IHSDP Funds under intimation to audit.

(Para No. 69 of AR of MC Chirala, Prakasam dist. For 2008-09)

18.4 MC TANDOOR, RANGA REDDY- ABNORMAL EXPENDITURE

TOWARDS PURCHASE OF DIESEL - CERTAIN DEFECTS NOTICED - Rs.

15, 73,977/-.

In the following vouchers an amount of Rs.15, 73,977/- was drawn and

paid towards diesel and petrol for office vehicles, tractor and generator purchased.

During the course of audit on verification of connected records the

following defects were noticed, as detailed below.

1. The log books were not maintained in a systematic manner and the same was

not attested by the concerned authority from time to time.

2. Trip sheets were not produced duly attested for verification.

3. The mileage of the tractors was very low. The mileage of 2km. P.L. is being

shown, which shows the stage of condemnation of the vehicles or repairing the

tracts.

4. There is no uniformity in consumption of diesel for Generator, mainly

according to the records produced by the executive authority; as such the

consumption is very high compared to previous years more than 2000 liter per

month.

The executive authorities did not initiate any economic steps in

consumption of diesel and petrol for both sanctioned generator and gave room for mis

- utilization of the municipal funds in the name of the diesel purchase.

Immediate action would need to be taken to initiate a detailed enquiry in

utilization of diesel by the departmental officers and fact needs to be brought to notice

of the audit department.

(Para No. 22 of AR of MC Tandoor, Ranga Reddy dist. For 2008-09)

18.5 MC MIRYALAGUDA, NALGONDA - PAYMENT OF DIESEL AND OIL

CHARGES TO THE OFFICE AND PRIVATE TRACTORS ENGAGED IN

THE SANITARY SECTION – DEFECTS IN AMOUNT HELD UNDER

OBJECTION Rs. 19, 30,372/-

During the year, an amount of Rs. 19,30,372/- has been spent on purchase of

Diesel and Oil to the office and private tractors engaged in the sanitary section. On

verification of the slip enclosed to the paid vouchers it was noticed that the quantities

of the diesel and oil mentioned in the slip are not tallied with log books of the office

tractors and the dates of slips are also at variance with the dates and quantities in the

log book. Further the vehicle registration numbers and names of owners the

private tractors were also not mentioned in the slips and vouchers. In absence of

which the amount of Rs. 19, 30,372/- is held under objection.

309

AMOUNT SPENT ON PURCHASE OF DIESEL AND OIL FOR SANITARY

SECTION TRACTOR (8) NO-S

Vr.No. & Date Particulars Amount

7/04/08 Purchase of Diesel for sanitary section 73761

690/9-2-08 -do- 94631

691/9-2-08 -do- 102222

693/12-08-09 -do- 119460

694/12-08-09 -do- 88434

260/11-08-08 -do- 183274

259/11-08-08 -do- 75227

196/08-07-08 -do- 77660

195/08-07-08 -do- 56932

145/17-06-08 -do- 14705

132/04-06-08 -do- 84350

547/11-11-08 -do- 2850

433/13-10-08 -do- 144859

90/15-05-08 -do- 63940

553/13-11-08 -do- 68093

554/13-11-08 -do- 35453

555/13-11-08 -do- 74736

260/09-01-09 -do- 57925

259/09-01-09 -do- 133958

268/27-01-09 -do- 1255

214/15-12-08 -do- 90282

215/15-12-08 -do- 150086

132/15-12-08 -do- 90940

131/02-09-08 -do- 83154

19/21-05-08 -do- 2185

TOTAL:- 1970372

(Para No. 27 of AR of MC Miryalaguda, Nalgonda dist. For 2008-09)

19. DDS / CHEQUES RECEIVED BUT NOT REALIZED WITHIN TIME

-NIL-

DATE: 01-03-2012

HYDERABAD DIRECTOR,

STATE AUDIT,

A.P., HYDERABAD.

310

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF

MUNICIPALITIES FOR THE YEAR (2008-09)

Sl.

No.

NAME OF THE

DISTRICT

DEMAND AS ON

01-04-2009

AUDIT

COMPLETED AS

ON 31-3-2010

BALANCE AS ON

31-03-2010


1 Adilabad 0 6 0 6 0 0

2 Ananthapur 38 7 7 0 31 7

3 Chittoor 6 3 2 0 4 3

4 East godavari 0 7 0 4 0 3

5 Guntur 15 11 4 6 11 5

6 Kadapa 39 6 1 0 38 6

7 Karimnagar 0 4 0 2 0 2

8 Khammam 1 7 1 6 0 1

9 Krishna 13 5 1 0 12 5

10 Kurnool 32 4 0 0 32 4

11 Mahaboobnagar 7 3 0 3 7 0

12 Medak 2 5 0 5 2 0

13 Nalgonda 9 4 1 4 8 0

14 Nellore 34 3 0 0 34 3

15 Nizamabad 0 3 0 3 0 0

16 Prakasam 13 4 9 2 4 2

17 Ranga reddy 2 2 2 2 0 0

18 Srikakulam 0 5 0 5 0 0



21 Warangal 0 2 0 0 0 2

22 West godavari 18 7 7 0 11 7

TOTAL: 238 104 38 50 200 54

311

STATEMENT No. 2

STATEMENT OF CONSOLIDATED (DIST WISE) RECEIPTS AND

EXPENDITURE OF MUNICIPALITIES FOR THE YEAR 2008-09

Rs. In lakhs

SL

No.

NAME OF THE

DISTRICT RECEIPTS EXPENDITURE

1 Adilabad 1537.40 1326.12

2 Ananthapur 0.00 0.00

3 Chittoor 0.00 0.00

4 East Godavari 2066.40 1862.55

5 Guntur 2606.54 2002.91

6 Kadapa 0.00 0.00

7 Karimnagar 1576.14 1419.87

8 Khammam 2784.30 2586.55

9 Krishna 0.00 0.00

10 Kurnool 0.00 0.00


12 Medak 1835.88 1373.97

13 Nalgonda 1290.29 728.36

14 Nellore 0.00 0.00

15 Nizamabad 3455.50 3639.97

16 Prakasam 2333.24 2221.69

17 Ranga Reddy 1177.63 962.00

18 Srikakulam 2502.15 2234.06


20 Vizianagaram 0.00 0.00

21 Warangal 0.00 0.00

22 West Godavari 0.00 0.00

TOTAL: 24527.67 21340.23

Note: Zeroes in all the Statements indicate non availability of information

312

STATEMENT 2 (1) 1

CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MUNICIPALITIES


Rs. In lakhs

Sl

No.

NAME OF

THE

DISTRICT

General fund Lighting fund Education fund Water supply &

Drainage fund Town Planning

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 1358.00 1018.80 0.08 64.36 0.00 0.00 36.78 133.87 22.48 15.45

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 1041.33 953.18 62.64 56.19 463.72 471.92 188.57 94.40 32.55 21.58

5 Guntur 1586.61 1149.85 317.45 223.85 182.63 105.90 304.81 328.92 47.33 33.95

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 511.73 281.38 0.00 15.23 0.00 0.00 1030.55 1082.72 17.32 6.33

8 Khammam 1889.47 1751.70 7.95 25.44 0.00 0.00 160.72 225.09 147.81 49.23

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 301.54 301.54 0.00 0.00 0.00 0.00 101.79 104.11 25.54 8.31

12 Medak 1510.90 821.03 11.28 34.29 0.00 0.00 150.20 288.12 42.28 22.16

13 Nalgonda 66.59 108.74 0.00 79.58 0.00 139.78 199.37 186.01 140.97 19.61

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 284.95 1400.35 421.45 108.52 0.00 0.00 833.10 645.80 0.00 0.00

16 Prakasam 1710.85 1557.52 117.99 71.45 164.85 125.80 121.30 110.33 36.40 26.04

17 Ranga Reddy 652.83 596.90 0.00 33.07 0.00 0.00 101.10 88.53 58.80 6.96

18 Srikakulam 1472.92 1217.24 100.00 186.25 307.39 277.25 266.37 184.04 105.90 21.57

19 Visakhapatnam 464.97 277.31 62.58 39.73 192.36 24.33 102.04 28.47 17.20 4.66

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 12852.69 11435.54 1101.42 937.96 1310.95 1144.98 3596.70 3500.41 694.58 235.85

Note: In Krishna, Nellore and Warangal Districts audits for the year 2008-09 could not be conducted due to non production of Annual Accounts.

313

STATEMENT 2 (1) 2

CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MUNICIPALITIES


Rs. In lakhs

SL

No.

NAME OF

THE

DISTRICT

Deposit fund Advances fund Pension fund Provident fund Grand Total

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 94.29 76.13 25.77 17.51 0.00 0.00 0.00 0.00 1537.40 1326.12

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 67.91 81.20 0.00 0.00 13.69 13.85 195.99 170.23 2066.40 1862.55

5 Guntur 166.69 155.16 0.12 0.50 0.08 1.94 0.82 2.84 2606.54 2002.91

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 16.04 22.98 0.50 11.23 0.00 0.00 0.00 0.00 1576.14 1419.87

8 Khammam 95.80 54.48 0.13 1.32 482.42 479.29 0.00 0.00 2784.30 2586.55

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 25.89 136.18 3.10 3.45 0.00 0.00 0.00 0.00 457.86 553.59

12 Medak 40.20 130.26 0.81 3.22 80.21 74.89 0.00 0.00 1835.88 1373.97

13 Nalgonda 883.36 194.64 0.00 0.00 0.00 0.00 0.00 0.00 1290.29 728.36

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 499.80 387.50 249.90 193.70 833.10 645.80 333.20 258.30 3455.50 3639.97

16 Prakasam 181.85 330.55 0.00 0.00 0.00 0.00 0.00 0.00 2333.24 2221.69

17 Ranga Reddy 4.08 6.27 0.00 4.59 0.00 0.00 360.82 225.68 1177.63 962.00

18 Srikakulam 178.58 273.86 40.11 39.23 27.67 32.62 3.21 2.00 2502.15 2234.06

19 Visakhapatnam 3.08 4.77 0.60 1.04 50.18 41.55 11.33 6.73 904.34 428.59

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 2257.57 1853.98 321.04 275.79 1487.35 1289.94 905.37 665.78 24527.67 21340.23

Note: In Krishna, Nellore and Warangal Districts audits for the year 2008-09 could not be conducted due to non production of Annual Accounts.

314

STATEMENT No. 3

CONSOLIDATED STATEMENT OF GOVERNMENT GRANTS SANCTIONED

AND

EXPENDITURE INCURRED FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No. Name Of The District Receipts Payment

1 Adilabad 822.19 831.04

2 Ananthapur 0.00 0.00

3 Chittoor 0.00 0.00

4 East Godavari 577.01 654.55

5 Guntur 69.83 11.25

6 Kadapa 0.00 0.00

7 Karimnagar 95.74 88.56

8 Khammam 323.11 261.63

9 Krishna 0.00 0.00

10 Kurnool 0.00 0.00


12 Medak 432.16 349.23

13 Nalgonda 482.23 467.54

14 Nellore 0.00 0.00

15 Nizamabad 0.00 226.06

16 Prakasam 274.38 294.62

17 Ranga Reddy 354.81 230.20

18 Srikakulam 1244.99 1318.60



21 Warangal 0.00 0.00


TOTAL: 5513.71 5689.56

315

STATEMENT 3(1) 1

CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No.

Name Of The

District Teaching grant SJSRY Grant

Environments

improvement

grant

Integrated

development of

small towns grant Women welfare

Slum

improvement

Drought relief

flood relief grant


1 Adilabad 0.00 0.00 1.69 1.08 6.67 8.96 43.10 54.84 0.00 0.00 0.27 2.31 12.83 16.33

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 416.01 443.29 16.10 18.81 0.75 5.27 8.08 37.58 0.00 0.00 0.00 0.00 0.00 0.00

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83 11.25

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 0.00 0.00 6.34 8.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Khammam 0.00 0.00 19.91 7.50 0.31 0.00 37.31 37.08 0.31 0.00 0.00 0.00 1.22 5.55

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 47.48 60.24 18.48 13.73 0.00 0.00 13.00 0.00 0.00 0.00 40.32 120.07 0.01 0.00

12 Medak 0.00 0.00 5.11 12.28 0.03 0.00 130.87 32.86 56.89 58.68 0.00 0.00 9.20 8.96

13 Nalgonda 0.00 0.00 37.59 28.12 0.00 0.00 22.33 0.00 0.00 0.00 0.00 0.00 10.61 17.17

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 71.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 180.95 176.72 5.50 14.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 4.93

17 Ranga Reddy 2.10 2.79 30.18 4.44 0.00 0.00 105.45 17.05 0.00 0.00 0.25 0.00 30.08 29.44

18 Srikakulam 583.28 608.96 5.68 2.68 21.20 7.26 24.08 17.13 0.52 113.07 0.11 3.57 8.60 26.04

19 Visakhapatnam 519.49 443.21 1.27 2.78 0.00 0.00 13.37 116.19 0.00 0.00 0.15 0.33 37.88 47.39

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 1749.31 1735.21 147.85 185.78 28.96 21.49 397.59 312.73 57.72 171.75 41.10 126.28 180.39 167.06

316

STATEMENT 3(1) 2

CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR

2008-09

Rs. In lakhs

Sl

No.

Name Of The

District Low cost sanitation Master Plan grant

Urban poverty

alleviation grant

Shelter upgradation

from housing

corporation grant

Assembly

constituency

development

grant

Urban services

poor grant

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 0.43 0.00 60.95 35.27 0.00 0.00 0.00 0.00 55.64 63.23 91.37 91.29

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 0.98 10.84 0.00 10.84 0.00 0.00 0.00 0.00 5.91 6.16 0.21 0.30

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Khammam 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 2.78 1.68 0.00 0.00

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 0.12 0.08 74.54 71.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12 Medak 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.50 29.39 0.00 0.00

13 Nalgonda 0.00 0.00 0.00 1.37 3.48 0.39 0.00 0.00 5.27 6.57 13.61 32.13

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 58.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

17 Ranga Reddy 0.15 0.00 25.00 24.43 0.00 0.00 0.00 0.00 14.88 21.66 0.00 0.00

18 Srikakulam 0.80 0.54 0.00 0.54 0.00 0.00 0.00 0.00 21.81 26.28 73.54 99.16

19 Visakhapatnam 0.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 3.10 11.46 160.51 202.51 3.48 0.39 0.00 0.00 137.81 154.97 178.73 222.88

317

STATEMENT 3(1) 3


2008-09

Rs. In lakhs

Sl

No.

Name Of The

District NSDP grant

Parks & Play

grounds grant

C.M Special

grant

Special

component

(SC) grant

Tribal sub plan

(ST) grant

Development

of Satelite town

grant

Decentralisation

grant


1 Adilabad 1.48 9.34 16.36 12.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 0.50 5.01 2.94 21.74 52.59 26.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 16.50 1.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Khammam 0.55 0.28 3.68 0.00 100.41 54.78 0.00 0.00 0.18 1.54 0.00 0.00 0.00 0.00

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

12 Medak 0.22 35.49 0.92 4.18 0.11 0.00 1.25 2.01 0.00 0.00 0.00 0.00 0.00 0.00

13 Nalgonda 0.87 4.36 26.59 16.09 0.00 0.00 0.00 0.00 0.00 0.00 1.66 5.01 0.00 0.00

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.01 0.01 0.08 0.95

18 Srikakulam 6.20 8.03 9.83 9.36 116.15 88.31 1.14 0.00 3.11 1.38 0.00 0.00 0.09 0.00

19 Visakhapatnam 0.41 1.89 4.68 14.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 26.73 66.19 65.00 78.83 269.26 169.33 2.39 2.01 3.29 2.92 2.67 5.02 0.18 0.95

318

STATEMENT 3(1) 4


2008-09

Rs. In lakhs

Sl

No.

Name Of The

District

E-seva centres

grant

Old age pension

grant

Balika Sumrudhi

Yojana grant

Urban service

project grant

Eco conservation

grant

Mega city project

grant Grand Total


1 Adilabad 3.97 13.52 358.80 368.06 0.00 0.00 168.63 163.20 0.00 0.00 0.00 0.00 822.19 831.04

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 0.00 0.00 72.94 73.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 577.01 654.55

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83 11.25

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 0.00 7.21 72.90 71.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 95.74 88.56

8 Khammam 0.02 0.00 156.09 153.22 0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 323.11 261.63

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 193.95 266.05

12 Medak 0.09 0.00 195.87 165.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 432.16 349.23

13 Nalgonda 0.00 0.00 355.55 350.33 0.00 0.00 4.67 6.00 0.00 0.00 0.00 0.00 482.23 467.54

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 12.92 0.00 83.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 226.06

16 Prakasam 0.00 0.00 87.80 98.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 274.38 294.62

17 Ranga Reddy 0.02 0.05 127.82 108.39 0.00 0.00 17.87 21.94 0.00 0.00 0.00 0.00 354.81 230.20

18 Srikakulam 0.01 0.00 368.84 313.55 0.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00 1244.99 1318.60

19 Visakhapatnam 0.00 0.00 65.52 63.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 643.31 690.23

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 4.11 33.70 1862.13 1849.41 0.32 0.00 191.26 191.14 0.00 0.00 0.00 0.00 5513.71 5689.56

319

STATEMENT 3(2) 1

CONSOLIDATED STATEMENT OF RECEIPTS GRANTS WISE IN MUNICIPATIES FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No.

Name Of The

District

Teachin

g grant

SJSRY

Grant

Environ

ments

improve

ment

grant

Integrate

d

developm

ent of

small

towns

grant

Wome

n

welfare

Slum

impro

vemen

t

Drought

relief

flood

relief

grant

Low

cost

sanita

tion

Master

Plan

grant

Urban

poverty

alleviatio

n grant

Shelter

upgradation

from housing

corporation

grant

Assembly

constituency

development

grant

Urban

services

poor

grant

1 Adilabad 0.00 1.69 6.67 43.10 0.00 0.27 12.83 0.43 60.95 0.00 0.00 55.64 91.37

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 416.01 16.10 0.75 8.08 0.00 0.00 0.00 0.98 0.00 0.00 0.00 5.91 0.21

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 69.83 0.00 0.00 0.00 0.00 0.00 0.00

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 0.00 6.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Khammam 0.00 19.91 0.31 37.31 0.31 0.00 1.22 0.00 0.02 0.00 0.00 2.78 0.00

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 47.48 18.48 0.00 13.00 0.00 40.32 0.01 0.12 74.54 0.00 0.00 0.00 0.00

12 Medak 0.00 5.11 0.03 130.87 56.89 0.00 9.20 0.10 0.00 0.00 0.00 31.50 0.00

13 Nalgonda 0.00 37.59 0.00 22.33 0.00 0.00 10.61 0.00 0.00 3.48 0.00 5.27 13.61

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 180.95 5.50 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.00 0.00 0.00 0.00

17 Ranga Reddy 2.10 30.18 0.00 105.45 0.00 0.25 30.08 0.15 25.00 0.00 0.00 14.88 0.00

18 Srikakulam 583.28 5.68 21.20 24.08 0.52 0.11 8.60 0.80 0.00 0.00 0.00 21.81 73.54

19 Visakhapatnam 519.49 1.27 0.00 13.37 0.00 0.15 37.88 0.52 0.00 0.00 0.00 0.02 0.00

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 1749.31 147.85 28.96 397.59 57.72 41.10 180.39 3.10 160.51 3.48 0.00 137.81 178.7

3

320

STATEMENT 3(2) 2

CONSOLIDATED STATEMENT OF RECEIPTS GRANTS WISE IN MUNICIPATIES FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No.

Name Of The

District

NSD

P

grant

Parks

&

Play

groun

ds

grant

C.M

Special

grant

Special

compone

nt (SC)

grant

Tri

bal

sub

plan

(ST)

gra

nt

Develop

ment

ofSatelit

e town

grant

E-

seva

centr

es

gran

t

Old age

pension

grant

Balika

Sumrud

hi

Yojana

grant

Urban

service

project

grant

Eco

conser

vation

grant

Meg

a

city

proj

ect

gran

t

Grand

Total

1 Adilabad 1.48 16.36 0.00 0.00 0.00 0.00 3.97 358.80 0.00 168.63 0.00 0.00 822.19

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 0.50 2.94 52.59 0.00 0.00 0.00 0.00 72.94 0.00 0.00 0.00 0.00 577.01

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 16.50 0.00 0.00 0.00 0.00 0.00 0.00 72.90 0.00 0.00 0.00 0.00 95.74

8 Khammam 0.55 3.68 100.41 0.00 0.18 0.00 0.02 156.09 0.32 0.00 0.00 0.00 323.11

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 193.95

12 Medak 0.22 0.92 0.11 1.25 0.00 0.00 0.09 195.87 0.00 0.00 0.00 0.00 432.16

13 Nalgonda 0.87 26.59 0.00 0.00 0.00 1.66 0.00 355.55 0.00 4.67 0.00 0.00 482.23

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 87.80 0.00 0.00 0.00 0.00 274.38

17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 1.01 0.02 127.82 0.00 17.87 0.00 0.00 354.81

18 Srikakulam 6.20 9.83 116.15 1.14 3.11 0.00 0.01 368.84 0.00 0.09 0.00 0.00 1244.99

19 Visakhapatnam 0.41 4.68 0.00 0.00 0.00 0.00 0.00 65.52 0.00 0.00 0.00 0.00 643.31

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 26.73 65.00 269.26 2.39 3.29 2.67 4.11 1862.13 0.32 191.26 0.00 0.00 5513.71

321

STATEMENT 3(3) 1

CONSOLIDATED STATEMENT OF PAYMENTS GRANT WISE IN MUNICIPATIES FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No.

Name Of The

District

Teaching

grant

SJSRY

Grant

Environm

ents

improvem

ent grant

Integrated

developme

nt of small

towns

grant

Women

welfare

Slum

improvem

ent

Drought

relief flood

relief

grant

Low cost

sanitation

Master

Plan grant

Urban

poverty

alleviation

grant

Shelter

upgradatio

n from

housing

corporatio

n grant

Assembly

constituen

cy

developme

nt grant

Urban

services

poor grant

1 Adilabad 0.00 1.08 8.96 54.84 0.00 2.31 16.33 0.00 35.27 0.00 0.00 63.23 91.29

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 443.29 18.81 5.27 37.58 0.00 0.00 0.00 10.84 10.84 0.00 0.00 6.16 0.30

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 11.25 0.00 0.00 0.00 0.00 0.00 0.00

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 0.00 8.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

8 Khammam 0.00 7.50 0.00 37.08 0.00 0.00 5.55 0.00 0.00 0.00 0.00 1.68 0.00

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 60.24 13.73 0.00 0.00 0.00 120.07 0.00 0.08 71.93 0.00 0.00 0.00 0.00

12 Medak 0.00 12.28 0.00 32.86 58.68 0.00 8.96 0.00 0.00 0.00 0.00 29.39 0.00

13 Nalgonda 0.00 28.12 0.00 0.00 0.00 0.00 17.17 0.00 1.37 0.39 0.00 6.57 32.13

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 71.05 0.00 0.00 0.00 0.00 0.00 0.00 58.13 0.00 0.00 0.00 0.00

16 Prakasam 176.72 14.75 0.00 0.00 0.00 0.00 4.93 0.00 0.00 0.00 0.00 0.00 0.00

17 Ranga Reddy 2.79 4.44 0.00 17.05 0.00 0.00 29.44 0.00 24.43 0.00 0.00 21.66 0.00

18 Srikakulam 608.96 2.68 7.26 17.13 113.07 3.57 26.04 0.54 0.54 0.00 0.00 26.28 99.16

19 Visakhapatnam 443.21 2.78 0.00 116.19 0.00 0.33 47.39 0.00 0.00 0.00 0.00 0.00 0.00

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West

Godavari

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 1735.21 185.78 21.49 312.73 171.75 126.28 167.06 11.46 202.51 0.39 0.00 154.97 222.88

322

STATEMENT 3(3) 2

CONSOLIDATED STATEMENT OF PAYMENTS GRANT WISE IN MUNICIPATIES FOR THE YEAR 2008-09

Rs. In lakhs

Sl

No.

Name Of The

District

NSDP

grant

Parks &

Play

grounds

grant

C.M

Special

grant

Special

compo

nent

(SC)

grant

Tribal

sub plan

(ST)

grant

Develop

ment

ofSateli

te town

grant

E-seva

centre

s

grant

Old age

pension

grant

Balika

Sumru

dhi

Yojana

grant

Urban

service

project

grant

Eco

conserv

ation

grant

Mega

city

project

grant

Grand

Total

1 Adilabad 9.34 12.57 0.00 0.00 0.00 0.00 13.52 368.06 0.00 163.20 0.00 0.00 831.04

2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4 East Godavari 5.01 21.74 26.24 0.00 0.00 0.00 0.00 73.74 0.00 0.00 0.00 0.00 654.55

5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.25

6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Karimnagar 1.79 0.00 0.00 0.00 0.00 0.00 7.21 71.00 0.00 0.00 0.00 0.00 88.56

8 Khammam 0.28 0.00 54.78 0.00 1.54 0.00 0.00 153.22 0.00 0.00 0.00 0.00 261.63

9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 266.05

12 Medak 35.49 4.18 0.00 2.01 0.00 0.00 0.00 165.38 0.00 0.00 0.00 0.00 349.23

13 Nalgonda 4.36 16.09 0.00 0.00 0.00 5.01 0.00 350.33 0.00 6.00 0.00 0.00 467.54

14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 12.92 83.97 0.00 0.00 0.00 0.00 226.06

16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 98.22 0.00 0.00 0.00 0.00 294.62

17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 0.01 0.05 108.39 0.00 21.94 0.00 0.00 230.20

18 Srikakulam 8.03 9.36 88.31 0.00 1.38 0.00 0.00 313.55 0.00 0.00 0.00 0.00 1318.60

19 Visakhapatnam 1.89 14.89 0.00 0.00 0.00 0.00 0.00 63.55 0.00 0.00 0.00 0.00 690.23

20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL: 66.19 78.83 169.33 2.01 2.92 5.02 33.70 1849.41 0.00 191.14 0.00 0.00 5689.56

323

STATEMENT No. 4

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT

OBJECTIONS RAISED (DIST WISE) AND AMOUNT INVOLVED FOR THE

YEAR 2008-09 (MUNICIPALITIES)

Rs. In lakhs.

Sl.

No.

NAME OF THE DISTRICT No. AMOUNT

1 Adilabad 289 978.28

2 Ananthapur 0 0.00

3 Chittoor 0 0.00


5 Guntur 330 837.97

6 Kadapa 0 0.00


8 Khammam 225 732.64

9 Krishna 0 0.00

10 Kurnool 0 0.00


12 Medak 206 1257.22

13 Nalgonda 205 737.36

14 Nellore 0 0.00

15 Nizamabad 720 3045.26

16 Prakasam 239 227.30





21 Warangal 0 0.00


TOTAL 3796 10400.69

324

STATEMENT No. 4 (1)

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS

RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09

(MUNICIPALITIES)

Rs. In lakhs.

Sl. No. NAME OF THE CATEGORY No. AMOUNT






6 Non- utilisation of Earmarked Funds 65 48.79




10 Non-remittance of the deductions / Recoveries

from Bills

371 597.09







17 Surcharges Certificates- Recovery Pending 190 47.44

18 Others 367 697.89

19 D.D. Cheques received but not realised with in

time

0 0.00

Total: 3796 10400.69

325

STATEMENT 4(2) 1

STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09 Rs. In lakhs.

Sl.

No.

NAME OF THE

DISTRICT

VARIATION IN ACCOUNT

FIGURES

EXCESS

UTILISATION OF

GRAMTES/FUNDS

DIVERSION OF

GRANTS/FUNDS

NON-UTILISATION

OF GRANTS BEFORE

THE LASPSABLE

DATE

MIS-UTILISATION OF

GRANTS/FUNDS

NON-UTILISATION OF

EARMARKED FUNDS


1 Adilabad 0 0.00 2 0.00 4 29.53 0 0.00 0 0.00 1 0.00

2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0

3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0

4 East Godavari 2 5.78 2 0.00 2 14.39 0 0.00 1 0.00 0 0.00

5 Guntur 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0

7 Karimnagar 0 0.00 0 0.00 0 0.00 1 0.00 1 0.21 1 0.00

8 Khammam 2 0.00 0 0.00 3 29.15 6 0.00 0 0.00 2 0.00

9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0

11 Mahaboobnagar 2 0.00 1 0.00 4 0.96 0 0.00 5 9.64 2 0.00

12 Medak 3 4.20 2 0.00 5 30.87 0 0.00 0 0.00 2 25.89

13 Nalgonda 0 0.00 9 7.85 6 4.39 7 17.83 2 0.00 16 22.90

14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

15 Nizamabad 40 121.90 0 0.00 0 0.00 40 0.00 0 0.00 40 0.00

16 Prakasam 2 0.00 2 0.00 6 3.94 0 0.00 2 0.00 0 0.00

17 Ranga Reddy 5 0.00 2 0.00 2 0.25 0 0.00 1 0.00 1 0.00

18 Srikakulam 1 0.00 2 0.04 1 0.00 7 20.50 0 0.00 0 0.00

19 Visakhapatnam 4 0.00 2 0.00 3 6.46 4 0.00 1 0.00 0 0.00

20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0

21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0

22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 61 131.88 24 7.89 36 119.94 65 38.33 13 9.85 65 48.79

326

STATEMENT 4(2) 2


Rs. In lakhs.

Sl.

No.

NAME OF THE

DISTRICT

NON-COLLECTION OF

DUES

ADVANCES PENDING

ADJUSTMENT VIOLATION OF RULES

NON REMITTANCE OF

DEDUCTION FROM

WORK BILLS/PAY

BILLS/CONTINGENT

BILLS ETC.

NON-PRODUCTION OF

RECORDS

MIS-

APPROPRIATIONS


1 Adilabad 7 23.43 10 10.22 96 112.41 36 38.79 71 640.61 4 5.29

2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0

3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0

4 East Godavari 24 7.91 12 10.08 84 144.93 24 18.40 170 194.96 3 0.59

5 Guntur 14 10.30 5 12.71 43 42.09 7 25.34 205 743.66 1 1.30

6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0

7 Karimnagar 8 3.09 1 0.10 34 22.56 12 14.02 28 77.26 7 1.25

8 Khammam 15 263.87 35 56.98 37 194.48 35 79.86 39 99.78 3 1.75

9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0

11 Mahaboobnagar 3 22.55 4 5.47 41 434.43 6 3.35 41 31.68 3 0.93

12 Medak 8 72.96 4 5.68 60 520.00 16 32.76 58 520.19 12 32.13

13 Nalgonda 1 80.05 3 1.42 53 433.54 18 17.27 27 140.64 3 0.89

14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

15 Nizamabad 90 274.00 0 0.00 60 960.27 154 130.00 110 689.81 20 12.80

16 Prakasam 10 0.74 5 5.70 55 11.05 19 33.68 104 151.92 0 0.00

17 Ranga Reddy 10 13.10 2 5.34 7 0.46 12 12.60 15 18.20 0 0.00

18 Srikakulam 23 225.00 7 91.14 125 75.18 18 121.88 218 271.24 9 2.05

19 Visakhapatnam 15 46.99 12 17.66 43 8.44 14 69.14 62 213.31 2 0.56

20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0

21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0

22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL 228 1043.99 100 222.5 738 2959.84 371 597.09 1148 3793.26 67 59.54

327

STATEMENT 4(2) 3

STATEMENT SHOWING THE CATEGORY WISE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR2008-09

Rs. In lakhs.

Sl.

No.

NAME OF THE

DISTRICT

EXCESS

PAYMENTS

WASTEFUL

EXPENDITURE

INSTANCES

OF CASES OF

UNACCOUNTED

FOR CASH /

STORES

PENDENCY

OF

UTILISATION

CERTIFICATES

SURCHARGES

CERTIFICATES -

RECOVERY

PENDING

OTHERS

D.D. / CHEQUES

RECEIVED BUT NOT

REALISED WITH IN

TIME

Total

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 5 5.80 7 6.14 0 0.00 1 0.00 0 0.00 45 106.06 0 0.00 289 978.28

2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00

3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0

4 East Godavari 18 5.45 0 0.00 0 0.00 0 0.00 0 0.00 34 1.14 0 0.00 376 403.63

5 Guntur 8 0.71 3 1.81 0 0.00 3 0.00 0 0.00 41 0.05 0 0.00 330 837.97

6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0

7 Karimnagar 5 0.79 4 7.51 0 0.00 0 0.00 0 0.00 9 4.51 0 0.00 111 131.30

8 Khammam 14 1.28 0 0.00 0 0.00 5 0.00 0 0.00 29 5.49 0 0.00 225 732.64

9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 0.00 0 0.00

10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00

11 Mahaboobnagar 10 1.42 0 0.00 1 0.01 0 0.00 0 0.00 24 61.20 0 0.00 147 571.64

12 Medak 15 8.98 1 2.64 0 0.00 2 0.00 0 0.00 18 0.92 0 0.00 206 1257.22

13 Nalgonda 10 2.53 2 4.93 1 3.12 1 0.00 1 0.00 45 0.00 0 0.00 205 737.36

14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

15 Nizamabad 13 1.00 0 0.00 17 0.00 96 363.48 0 0.00 40 492.00 0 0.00 720 3045.26

16 Prakasam 4 7.42 3 3.86 1 0.00 2 0.00 9 0.00 15 8.99 0 0.00 239 227.30

17 Ranga Reddy 3 0.87 1 2.01 1 0.00 3 154.50 6 0.00 25 15.84 0 0.00 96 223.17

18 Srikakulam 12 11.28 4 8.59 0 0.00 5 0.00 174 47.44 0 0.00 0 0.00 606 874.34

19 Visakhapatnam 37 14.69 2 1.64 1 0.00 2 0.00 0 0.00 42 1.69 0 0.00 246 380.58

20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00

21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00

22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00

TOTAL 154 62.22 27 39.13 22 3.13 120 517.98 190 47.44 367 697.89 0 0 3796 10400.69

328

PART-IV




REVIEW REPORT ON THE ACCOUNTS

OF

AGRICULTURAL MARKET

COMMITTEES



A.P., HYDERABAD.

329

330

CONTENTS

STATEMENT No.

DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF AGRICULTURAL MARKET

COMMITTEES FOR THE YEAR 2008-09

PAGE No.

1 Introductions and a few selected audit objections of Agricultural Market

Committees category wise 333-365

1 Statement showing Dist wise Status of Audit of Agricultural Market Committees for the year 2008-09

367

2 (1) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09

368

(2) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09 (receipts)

369

(3) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09(Payments)

370

3 3(3)1to 3 Statement showing the consolidated category wise audit objections.

371-373

4 4.(1) Statement showing Number of Audit objections raised

(Category wise) and amount involved for the year 2008-09. 374

5 Consolidated statement showing the Status of audit objections of

(AMCs) 2008-09 375

331

332


ACCOUNTS OF AGRICULTURAL MARKET COMMITTEES FOR

THE YEAR 2008-09

INTRODUCTION

1.1 Under the State Audit Act, 1989 the Director of State Audit, A.P. Hyderabad is

made in charge of the audit of the funds of Local Authorities and other authorities

specified in the Schedule prescribed in the said Act. By virtue of this legal position, the

Director of State Audit, A.P., Hyderabad is the Auditor for the accounts of the AMCs in

the State of Andhra Pradesh. The Number of AMCs in the State is 311 for the year 2008-

09.

1.2 The Department has got offices in all the districts, the District Audit Officer; State

Audit is the head at the district level.

1.3 The Department conducts post audit of the AMCs and Audit Reports consisting of

defects noticed in audit are issued to the Secretary of the AMC concerned who has to take

action for rectifying the defects pointed out in the Audit Report.

1.4 Under the State Audit Act, the Director is vested with the power of disallowing

every item of the expenditure incurred contrary to the law and surcharge the same on the

person incurring or authorizing the incurring of such expenditure and may charge against

any person responsible there for, the amount of any deficiency, loss or unprofitable

outlay occasioned by the negligence or misconduct of that person or of any such sum

which ought to have been accounted for but is not brought into account by that person

and shall, in every such case, certify the amount due from such person.

SCOPE OF AUDIT

2.7 The State Audit Department being one of the limbs of the Government of

Andhra Pradesh verifies the following aspects during the course of post audit of the

AMCs.

Whether the Market fee, License fee and other amounts like leases / rents collected etc.,

by the AMCs were properly accounted for with full details in the books of accounts of the

AMC concerned.

Whether adequate care is taken in periodical checking up of the funds with Treasury or

Bank.

Whether expenditure incurred is provided for in the Budget of the AMC and duly

sanctioned by the competent authority under the relevant rules and executive instructions

issued by the Government.

Whether funds are utilized only for the permitted purposes prescribed under the A.P.

(Agricultural Produce and Live Stock) Markets Act / Rules.

333

Whether the procedure prescribed by Government in incurring the expenditure /payments

made is properly followed and accounted for with due classification in the books of

accounts of the AMC.


STATUS OF AUDIT

3.1 The current audit of 311 AMCs out of 311 AMCs for the year 2008-09 was

conducted in the year leaving no balance of current audit of AMCs.

3.2 The Department has conducted the audit of the receipts amounting to

Rs. 433.17 crores and payments of Rs. 412.90 crores as detailed in the Statements No.

2 with AMC-wise break up.

3.3 The Pie chart of propositional Percentages of Receipts and Payments of

AMCs during the year 2008-09 is placed below.

PIE CHART OF RECEIPTS OF AMCs FOR THE YEAR 2008-09

76.96%

0.61%

0.06%

1.79%

0.23%

0.96%

5.81%

2.43%

6.24%

15.45%

3.66%

1.25%

MARKET FEES 76.96%

LICENSE FEES 0.61%

LATE FEE 0.06%

PROPERTY RENTAL FEES 1.79%

INTEREST ON INVESTMENT 1.25%

AUCTIONS 0.23%

INCOME FROM MISCELLANEOUS

SOURCES 3.66%

DEPOSITS 0.96%

LOAN 5.81%

ADVANCES 2.43%

GRANT IN AID 6.24%

../AMC%20CARR%2022.12.11/R%20&%20C_2008-09_AMCs.xls

../AMC%20CARR%2022.12.11/R%20&%20C_2008-09_AMCs.xls

334

PIE CHART OF PAYMENTS OF AMCs


SALARIES

20.48%

OTHER ADMN.

EXPENDITURE

21.94%

LAW CHARGES

0.18%

ACQUISITION OF

PROPERTIES

0.99%

DEVELOPMENT

WORKS 13.65%

FURNITURE AND

VEHICLES ETC.,

0.68%

10%

CONTRIBUTION

TO CENTRAL

MARKETING

FUND 7.48%

REPAYMENT OF

LOANS 5.34%

OTHERS 11.3%

ADVANCES

7.73%

DEPOSITS 0.75%

OTHERS 9.49%

SALARIES 20.48%

OTHER ADMN.

EXPENDITURE 21.94%

LAW CHARGES 0.18%

ACQUISITION OF

PROPERTIES 0.99%

DEVELOPMENT WORKS

13.65%

FURNITURE AND

VEHICLES ETC., 0.68%

10% CONTRIBUTION TO

CENTRAL MARKETING

FUND 7.48%

REPAYMENT OF LOANS

5.34%

OTHERS 11.3%

ADVANCES 7.73%

DEPOSITS 0.75%

OTHERS 9.49%

335

TREND OF RECEIPTS AND PAYMENTS OF AMCs

The receipts and payments of AMCs over 2007-08 and 2008-09 is as

follows.

34000

36000

38000

40000

42000

44000

46000

Receipts Payments

Series1

Series2

The trend of receipts during the last 5 years is mentioned below.

Year Market

fee

Rs. In

crores

Total

Receipts

Rs. In

crores

% of Market

fee out of

total receipts

(appx.)

% Increase

in Market

fee year to

year

% Increase

in Total

receipts

year to year

2004-05 193.22 282.57 68

2005-06 205.76 296.26 69 6 5

2006-07 278.70 393.18 71 35 33

2007-08 286.15 440.04 65 3 12

2008-09 333.35 433.17 77 16 -1.56

As seen from the above table, the raise in the Market fee

and Total receipts is erratic. During the year 2006-07, the increase in Market fee

and Total receipts is 35% and 33% respectively. During the year 2007-08, the

increase was reduced to 3% and 12% respectively. During the year 2008-09, the

trend is negative in the total receipts. Though Market fee and License fee are the

main sources of income for AMCs, steps may be taken to increase income from

other resources as well by increasing property rentals.

336

AUDIT OBJECTIONS

4.1 During the course of audit of these AMCs for the year 2008-09, various

defects noticed were already pointed out in the relevant Audit Reports

which were forwarded to the Secretaries concerned for further action at

their end as per the procedure laid down under the A.P. State Audit Act.

4.2 A total number of 4818 audit objections involving an amount of

Rs. 11599.39 lakhs were raised in the audit of the AMCs during the year

under report.

337



Rs. In lakhs.

Sl.

No. Name of the Category

No. of

Paras

% of No.

of Paras Amount

% of

Objections

1 VARIATION IN ACCOUNT FIGURES 117 2.43 30.51 0.26

2

EXCESS UTILISATION OF GRANTS /

FUNDS 109 2.26 300.36 2.59

3 DIVERSION OF GRANTS / FUNDS 52 1.08 941.54 8.12

4

NON- UTILIZATION OF GRANTS

BEFORE THE LAPSABLE DATE 12 0.25 78.10 0.67

5

MIS - UTILISATION OF GRANTS /

FUNDS 11 0.23 2.43 0.02

6

NON- UTILIZATION OF EARMARKED

FUNDS 6 0.12 5.82 0.05

7 NON-COLLECTION OF DUES 457 9.49 1107.68 9.55

8 ADVANCES PENDING ADJUSTMENT 313 6.50 2647.79 22.83

9 VIOLATION OF RULES 1274 26.44 1230.87 10.61

10 NON-REMITTANCE OF DEDUCTIONS

381 7.91 289.88 2.50

11 NON-PRODUCTION OF RECORDS 946 19.63 2909.96 25.09

12 MIS-APPROPRIATIONS 50 1.04 22.96 0.20

13 EXCESS PAYMENTS 142 2.95 112.14 0.97

14 WASTEFUL EXPENDITURE 37 0.77 15.13 0.13

15

INSTANCES OF CASES OF

UNACCOUNTED FOR CASH / STORES 24 0.50 2.80 0.02

16

PENDENCY OF UTILISATION

CERTIFICATES 5 0.10 70.40 0.61

17

SURCHARGE CERTIFICATES

RECOVERY PENDING 6 0.12 11.07 0.10

18 OTHERS 875 18.16 1807.56 15.58

19

D.D/CHEQUES RECEIVED BUT NOT

REALIZED WITH IN TIME 1 0.02 12.38 0.11

Total

4818 100.00 11599.38 100.00

From the above table, it can be known that major part of amount of

objections is on Non-production of records followed by Advances pending

adjustment which constituted 25.09% and 22.83% respectively.

338


Audit Reports with amounts involved category-wise are annexed to the

Report Statements from 3 (1) to 3 (3)



../AMC%20CARR%2022.12.11/3%20Statements%20A.M.C/STATEMENT%20No.%203%20%20(2008-09).xls

339

AUDIT PARAS

1. VARIATION IN ACCOUNT FIGURES (CATEGORY 1)


figures of treasury and cash book like opening Balance in the cash book of the current

year not tallying with the Closing Balance of the cash book of previous year. Balance as

per cash book not tallying with the actual Closing Balance in the Treasury Pass Book as

on 31st March. Non-crediting of Receipts into the Treasury Pass Book by the Treasury

Authorities. Receipts credited in the cash book by remittance through Challans are not

credited in the Treasury pass book by the Treasury authorities. Debiting the cheques

issued by one D.D.O. to another D.D.O. by Treasury authorities. Without explaining the

differences, addition or subtraction is being done in the reconciliation by the DDO to

arrive at the balance actually available in the S. T. Pass book. Wrong Totaling of Credits

and debits either by D.D.O. or Treasury. Revision in the Plus or Minus Memo in the S. T.

pass book during the subsequent financial year by the Treasury authorities with

retrospective effect. Consolidated Closing Balance of all cash books not tallying with

consolidated closing balance of annual account of the institutions etc.

A Consolidated Statement No. 4 (1) of Variation in account figures is appended

to the Report from which it could be seen that variation in account figures of Rs. 30.51

lakhs was pointed out in 117 audit paras.

A few instances of Variation in Account figures, noticed in the audit

reports in various local bodies are detailed below:

1.1.AMC, ADONI, KURNOOL DIST. – CLOSING BALANCE AS PER CASH

BOOK AND SUB TREASURY PASS BOOK NOT TALLIED – NEEDS

RECONCILIATION - Rs.42,36,153.34.

As verified from Cash Book and Sub Treasury Pass Books, it was

noticed that the closing balance of Treasury Pass Book as on 31-03-2009 was shown as

Rs.1,57,69,620 and the Closing Balance as per Cash Book as on 31-3-2009 shown as

Rs.1,15,33,466.66 resulting in difference of Rs.42,36,153.34 for which the reasons were

not explained by the Executive Authority concerned in audit. There are many mistakes in

totaling of debits/Credits in both the Cash Book and Pass Book. All the entries in both

the books need to be totaled and reconciled with each other along with the Cheques

issued up to 31.3.2009. The reconciliation was not done every month and the monthly

accounts were also not prepared and produced to audit.

Hence, action may be taken for rectification of the said difference under


(Para No. 1-2 of Audit Report on the accounts of A.M.C., Adoni, Kurnool District for

the year 2008-09)

../AMC%20CARR%2022.12.11/3%20Statements%20A.M.C/STMT%20No.%204_AuditObjecitons%20%20(2008-09).xls

340

1.2. AMC, BOWENPALLY, RANGA REDDY DISTRICT - DISCREPANCY

BETWEEN THE CASH BOOK BALANCE AND BANK PASS BOOK BALANCE

– NOT RECONCILED - Rs.48,95,118.33

During the course of audit, on verification of the Cash book, the Bank balance

was shown as Rs.3,70,54,055/- as on 31.03.2009, whereas the closing balance was shown

in Bank Pass Book as Rs. 4,19,49,173.33 as on 31.3.2009. The discrepancy between

Cash Book and Pass Book balances comes to Rs.48,95,118.33. The reason for the

variation was not explained in audit. Further, the reconciliation was not done from April,

2008 onwards.

The reconciliation would need to be done to rectify the above defect in

consultation with the Treasury authorities and produce to audit for verification.

(Para No. 1 of Audit Report on the accounts of A.M.C., Bowenpally, Rangareddy dist.

for the year 2008-09)

1.3. AMC :BOWENPALLY, RANGAREDDY DISTRICT – VERIFICATION OF

ANNUAL ACCOUNTS – TOTAL INCOME NOT AGGREGATING WITH

DAILY INCOME REGISTER – INCOME EXCESS ARRIVED AT - Rs.

14,34,236/-

On verification of the Annual Account for the year 2008-09, it is noticed that the

total income arrived was Rs. 5,08,59,946/- whereas the total income as verified from the

daily income Register was Rs. 4,94,25,710/-. The excess arrival of total income in

Annual Account for the year 2008-09 is Rs.14,34,236/-, which is not explained in audit.

Action would need to be taken to rectify the defects

and furnish the remarks to audit for verification.

(Para No. 2 of Audit report A.M.C., Bowenpally, Rangareddy dist. for the year 2008-09)

1.4. AMC : BOWENPALLY , RANGAREDDY DISTRICT – MARKET FEE

COLLECTION – DIRECTLY REMITTED IN BANK – NOT ACCCOUNTED

FOR IN MAIN CASH BOOK – NEEDS ACTION - Rs.14,34,245/-

On verification of the Daily Income Register, it is noticed that the

following collections were made towards Market Fee for the year 2008-09 through

cheques/DDs on 7.1.2009 and the same were noted in the Daily Income Register for

Rs.14,94,711/-, out of which only an amount of Rs. 60,466/-, i.e., Sl.No.10 was

accounted for in main cash book on 7.1.2009 and the balance amount of Rs.14,34,245/-

(1494711-60,466=14,34,245/-) was not taken into main cash book till close of audit. But

the same were directly remitted in bank account. This practice has to be discontinued in

341

future. The Executive authority is to take immediate action for accounting all the

collections in to main cash book, and the fact intimated to audit.

Sl.no. Name of the Agency & R.No. Amount

1 Food world-8777 4870

2 ITC -8778 44192

3 Reliance Fresh-8779 169472

4 Food World Group-8779 977088

5 Metro cash & carry-8781 109176

6 Khandewal-8782 7425

7 ,, - 8783 7425

8 ,, - 8784 9300

9 Metro cash & carry-8785 105297

10 M.F.(receipt) 60466

Total 1494711

(Para No. 5 of Audit Report of A.M.C., Bowenpally, Rangareddy dist. for the year 2008-

09)

1.5. AMC, KESAMUDRAM, WARANGAL DISTRICT – VARIATION IN

ACCOUNTS FIGURES – NEEDS RECONCILIATION - Rs.356727/-

As verified the reconciliation statement enclosed to the Annual Account of AMC

Kesamudram for the year 2008-09, it was observed that there are huge variations between

Cash Book, Treasury Pass Book and Bank Pass Book as detailed below. Therefore, the

same would need to be rectified and adjusted to AMC Funds.

342

Abstract

1. Difference between Cash Book and Pass Book in previous year Rs. 1,15,239/-

2. Difference between Cash Book and Pass Book in current year Rs. 2,41,488/-

Total Rs.3,56,727/-

(Para No. 1 of A.R. of A.M.C. Kesamudram, Warangal Dist. for the year 2008-09)

1.6.AMC, NALGONDA, NALGONDA DISTRICT - AMOUNT CREDITED IN

THE TREASURY PASS BOOK BUT NOT ACCOUNTED FOR IN CASH BOOK –

NEEDS RECONCILIATION AND ACCOUNT FOR – Rs.37,201/-

On verification, an amount of Rs.37, 201/- as per the challans noted below was

shown in the Treasury Pass Book as receipt, but the same was not accounted in the Cash

Book. Early action would need to be taken to reconcile the figures with the Treasury

Pass book and Cash Book and fact intimated to audit.

Sl. No. Challan No. Amount

1. 60912/31.3.2009 29000

2. 47288/19.2.2009 3066

3 222 / -- 2400

4. 250/ ---- 1500

5. 6400/30.5.2008 1235

Total 37,201 ( Para No. 1 of A.R. of A.M.C., Nalgonda for the year 2008-09, Nalgonda District )

Closing Balance of Cash Book as on 31.3.2009 6678576

Add:.Un Cashed Cheques 1.No0034/31.3.2009

2.No0035/31.3.2009

3.No0036/31.3.2009

105559

82611

66466

254636

Total Receipts 6933212

Add ; cheques not taken in to cash Book

1) 06.03.2007

2) 06.03.2007

3) 06.03.2007

40

50

8539

8629

6941841

Less: Difference between Cash Book and Treasury

Pass Book in previous year -

115239

Balance as per Treasury Pass Book 6826602

Bank Pass Book reconciliation as on 31.3.2009 as

per Cash Book Balance

2312740

Less: Difference between cash book and Bank Pass

Book

241488

Closing Balance as per Bank Pass Book as on

31.3.2009

2071252

343

1.7. AMC, ALAIR, NALGONDA DIST. – VARIATION IN ACCOUNTS –

NEEDS RECONCILIATION AND RECTIFICATION – Rs. 85,418/-

On verification of the ST Pass Book, it was

observed that the closing balance as on 31.3.2008 is Rs.25,54,271/- and the

Opening balance taken as Rs..26,39,689/- as on 1.4.2008. Thus, there is a

difference of Rs. 85,418/-. The reasons for the variation between the Closing

Balance and Opening Balance were not explained in the audit. The ST pass book

may be reconciled with the Cash Book and subsidiary registers and fact intimated

to audit. Further, the Sub Treasury Pass book was not attested by the STO as on

the close of audit. The same may be produced to audit duly got attested by the

STO.

( Para No. 2 of A.R. of A.M.C., Alair for the year 2008-09, Nalgonda

District )

2. DIVERSION OF GRANTS /FUNDS (CATEGORY 3)

The AMCs are provided with funds by way of Grants or prescribed

share in taxes or fee collected by the AMCs. The specific grant has to be utilized for

the specific purpose for which the grant is released. But, it is noticed in audit that

expenditure was incurred under certain grant heads even in the absence of receipt of

any grant during the year by diverting other grants.

A Consolidated Statement No. 4 (3) of Diversion of grants/funds is

appended to the Report for Rs. 836.98 lakhs were pointed out in 44 audit paras.

3. NON-COLLECTION / SHORT COLLECTION OF DUES

(CATEGORY 7)

The main source of income of AMCs up to 90% is mainly derived from

the Market fee only. The remaining receipts are from the license fee, interest on

short term loans and fixed deposits, leases, rents on godowns etc. Amount is due

to be collected towards Market fee, leases, Rents etc., at the end of the year. The

Executive Authorities have failed to realize the said dues and allowed them to fall

into arrears. Timely action if taken for their realization, bad and doubtful debts

can be avoided. All sums due to the Market committees by way of Market fee and

other fee levied under Sub-Section (i) of Section 12 of Andhra Pradesh

(Agricultural Produce & Livestock) Markets Act 1966 may have to be recovered

in the same manner as arrears of land revenue.

A Consolidated Statement No. 4 (7) of Non-Collection of dues is

appended to the Report for Rs. 1012.26 lakhs pointed out in 442 audit paras.



344

3.1.NON-COLLECTION/SHORT COLLECTION OF DUES :

During the course of audit, it was observed that dues viz. Market fee,

Leases, Rents, etc., were not collected properly in the AMCs to a tune of Rs.

1012.26 lakhs in the state during the year 2008-09. Action would need to be taken

immediately to realize the dues from the concerned. A few such examples are

given below.

Rs. In lakhs

Sl.

No.

Name of the AMCs

and District

Details of Revenue not

collected

Para

No.

Amount

due

(Appx.)

1 Jogipeta AMC

Medak Dist.

Shop rents due from the

traders

6 1.00

2 Eluru AMC,

W.G. Dist.

Pendency of market fee 3 8.63

3 Karimnangar AMC

Karimnagar Dist.

Rooms, Godown & Shop

rents

1 4.81

4 Kavali AMC,

SPSR Dist.

Market fee due from the

traders

4 3.20

5 Gooty AMC,

Ananthapuram Dist.

Godowns rent 1 1.37

6. Adoni AMC,

Kurnool Dist.

Market fee 5 16.92

7. Koilakuntla AMC,

Kurnool Dist.

Godown Rent 14 6.29

8. Narsampet AMC,

Warangal Dist.

Market fee 3 43.94

4.ADVANCES PENDING ADJUSTMENT (CATEGORY 8)

It was observed during the course of audit that temporary advances paid

for specific purpose were outstanding for a long time though they should have

been got adjusted through detailed bills and vouchers as soon as possible as per

Article 99 of the A.P. Financial Code. Non-settlement of advances leads to

misuse of advances to avoid refund of unspent amounts. Several objections were

raised on such outstanding advances in the relevant audit reports pointing out

failure of the executive authorities to take necessary action to get these advances

adjusted.

A Consolidated Statement No. 4 (8) of Advance Pending Adjustment

district-wise is appended to the Report. 307 Audit paras involving Rs. 2476.40

lakhs were pointed out during the year 2008-09. A few such cases are shown

below.


345

4.1 RYTHU BANDHU PATHAKAM – LOANS NOT RECOVERED FROM

LOANEES – NEEDS RECOVERY:

During the course of audit, it is noticed that farmers were sanctioned loans

under Rythu Bandhu Pathakam. As per the guidelines issued in G.O.Ms.No.601,

Agri. Co-op (Market -II), Dept., dated 1.12.1993, R.B.P. Loans shall be

sanctioned over the produce from the seasonal crops, which shall be recovered

within 90 days and up to another 90 days with interest with the permission of the

Director of Marketing. But, in some of the AMCs, it was noticed that the Stock

stored by the farmers in the Godowns is being allowed to be stored for more than

6 months and the R.B.P. Loans are not realized within the stipulated time. A few

of such cases are given below.

Sl.

No.

Name of the AMC & District Amount

outstanding

Rs.

Para No.

1. Nalgonda, Nalgonda Dist. 39,000/- 8

2. Gudiwada, Krishna Dist. 48,77,000/- 2

3. Proddutur, Kadapa Dist. 96,22,000/- 5

4.2 AMCS – ADVANCE PAID TO A.P MARKFED, HYDERABAD ON

INTEREST FREE BASIS – NOT REIMBURSED

In Rule 15 of A.P (Agrl. Produce & Livestock) Markets Act, 1966, the

purposes for which the market committee funds to be expended are prescribed. As

the AP MARKFED also deals with the welfare of farmers, Govt. is issuing orders

for sanction of advances from various AMCs to AP MARKFED for specific

purposes. Based on the Govt. orders and on orders from the Commissioner &

Director of Marketing, Hyderabad, the AMCs paid loans to the Managing

Director, AP MARKFED, Hyderabad for various purposes on interest free basis.

But, the said loans were not reimbursed by the Managing Director, AP

MARKFED, Hyderabad, due to which there is strain on the funds of AMCs. A

few of such cases are mentioned below.

Sl.

No

.

Name of the AMC & District Amount paid

to MARKFED

Rs.

Vr. No.

/Date

Para

No.

1. Eluru, West Godavari District 50,00,000/- 17/17.7.2008 6

2. Bowenpally, Ranga Reddy District 2,00,00,000/- - 19

3. Mummidivaram, East Godavari

District

1,00,00,000/- 568/7.7.08

274/28.3.09

18

4. Sulthanabad, Karimnagar 1,00,00,000/- 59/ 7 /2008

249 / 2008

7

5. Darsi, Ongole 1,60,00,000/- 65/15-7-08

17

Total 6,10,00,000/-

346

4.3 AMC, PARIGI, R.R.DIST. – SRI K. CHANDRASEKHAR,

SECRETARY, GRADE II – NON-ADJUSTMENT OF ADVANCE PAY

SHOWN IN LPC – RECOVERY TO BE MADE :

During the audit, on verification of Last Pay Certificate in respect of Sri

K. Chandrasekhar (issued on transfer from Agricultural Marketing Committee,

Nagarkurnool), it was noticed that an amount of Rs. 12,700/- was taken as Pay

Advance by the individual. But, on his reporting to duty on 1.7.2008 at

Agricultural Marketing Committee, Parigi, the said amount was not adjusted.

Hence, action may be taken to recover the said amount alongwith interest from

the individual and to credit the entire amount to the respective funds through

challan, under intimation to the audit.

(Para No. 14 of AR of AMC, Parigi, Ranga Reddy dist. for the year 2008-09)

4.4 AMCS - LOANS PAID TO OTHER AGRICULTURE

MARKET COMMITTEES - REPAYMENT –PENDING

As per Rule 14 (3) of A.P (Agrl. Produce & Livestock) Markets Act,

1966, loans may be granted to other AMCs out of surplus funds with the previous

sanction of the Commissioner and Director of Marketing upto such amount and

on such rates of interest as may be prescribed by the Government from time to

time. Accordingly, loans are being given by one AMC to another AMC @ 12.5%

interest. But, neither the loans nor the interest thereon are being recovered.

Certain such cases are shown below.

Sl.

No.

Name of the AMC &

District by which loan

was given

Name of the AMC & District

to which loan was given

Amount

Rs.

Para

No.

1. Tandur, R.R dist. Sardar Nagar, R.R Dist. 5,00,000/- 3

2. -do- Parigi, R.R Dist. 5,00,000/- 3

3. -do- Marpally, R.R Dist. 5,00,000/- 3

4. -do- Vikarabad, R.R Dist. 5,00,000/- 3

5. -do- Ibrahimpatnam, R.R Dist. 5,00,000/- 3

6. Sulthanabad,

Karimnagar district

Mallial, Karimnagar Dist. 20,00,000/- 8

7. Bowenpally, RR Dist. Marpally, R.R dist. 25,00,000/- 18

Total 70,00,000/-

Necessary steps should be taken to recover the principal alongwith

interest @ 12.5% from the respective AMCs.

347

5. VIOLATION OF RULES (Category 9)

It was noticed in audit of the AMCs that in some cases the Rules and

Government instructions for incurring the expenditure from the funds of the

AMCs were violated either due to negligence or ignorance. At times, the funds of

the AMCs were utilised for purposes other than the permitted ones under the Act /

Rules. It was also noticed that in a few cases Government instructions were

misunderstood or misinterpreted. Such irregular expenditure incurred was

objected in the relevant audit reports.

A Consolidated Statement No. 4 (9) on category of Violation of Rules is

appended to this Report. 1236 objections involving an amount of Rs. 1190.90

lakhs were pointed out.

5.1 LAYING OF CEMENT CONCRETE ROAD IN THE MARKET YARD

OF MYDUKUR – PAYMENT MADE WITHOUT CHECK-

MEASUREMENT – IRREGULAR

During the course of Audit, it was noticed that an amount of

Rs.6,29,465/- was drawn and paid to the contractor towards execution of laying

cement concrete road in the Market Yard in AMC, Mydukur, Kadapa district

without getting the Check measurement of the work recorded in the

M.Book.No.47/2008-2009 by the technical authority which is irregular.

(Para 6 of the AR on the accounts of AMC, Mydukur, Kadapa Dist for 2008-

2009)

5.2 REIMBURSEMENT OF MEDICAL EXPENDITURE – MEDICAL

BILLS NOT GOT SCRUTINIZED BY THE MEDICAL AND HEALTH

DEPARTMENT- IRREGULAR. RS.32,892/-

An amount of Rs.32,892/- was drawn and paid to Sri Nagendra Kumar,

Watchman, AMC, Mydukur towards reimbursement of medical expenditure

incurred for the treatment of his father. Though there are clear instructions of

Government issued vide GO.Ms.No.74 Medical and Family welfare (K1) Dept,

dt:15-3-2005 and GO.Ms.No.105 of Medical and Health dept, dt: 9-4-2007 that

the Medical bills should be got scrutinized from the Medical and Health

Department for reimbursement of expenditure, the same was not done in the

instant case and the payment was made as such without due scrutiny, which is

irregular.

(Para 5 of the AR on the accounts of AMC, Mydukur, Kadapa Dist. for 2008-

2009)


348

5.3 SALE OF BENGAL GRAM- COMMISSION ACCRUED-

EXPENDITURE INCURRED DIRECTLY FROM 2% COMMISSION

ON SALES– IRREGULAR

The AMC, Martur has received 18467 bags of Bengal Gram seed

worth Rs.78,48,475/- from various firms and sold to the farmers and an amount

of Rs.76,91,505/- was paid back to the firms by deducting Rs.1,56,970/-

towards 2% commission . Out of the above commission an amount of

Rs.1,44,275/- was credited to A.M.C funds and the remaining amount of

Rs.12,695/- was spent without crediting it into AMC funds towards contingent

expenditure & for engaging labour which is irregular as all the amounts due to

AMCs shall be first lodged in the account and expenditure shall be incurred from

the fund later but not directly.

(Para No. 10 of the AR on the accounts of A.M.C.Martur, Prakasam District for

2008-2009)


FROM VOUCHERS / PAY BILLS / CONTINGENT

BILLS (Category 10)

It was noticed during audit that various deductions / recoveries effected

from the work bills / pay bills were either not remitted to Government or a part of

them only were remitted in spite of statutory obligation to remit the same to

Government account within a prescribed time under the relevant statutory

provisions which also include penalty as well as prosecution for non-adherence.

A Consolidated Statement No. 4 (10) of Non-remittance of deductions

/ recoveries from vouchers / pay bills / contingent bills are appended to the Report

for Rs. 277.18 lakhs was pointed out in 360 audit paras.



Work Bills

9. Income Tax

10. Sales Tax/VAT

11. Seigniorage Fee

Pay Bills

14. Profession Tax



349

3. G.I.S Premium.



These defects noticed were pointed out in the Audit Reports. Some of them are as

under.

6.1 INCOME TAX RECOVERIES NOT REMITTED / PARTLY

REMITTED

Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b), the

authority which deducts the Income Tax from work bills or from pay bills shall

remit the same to the Income Tax Department within the first week of the next

month of such deduction. In case of failure to remit the Tax, the Drawing and

Disbursing Officer will be held responsible under section 201 (1) for payment of

interest at 15% per annum, under section 201 (1)(a) from the time of such default

till the payment of such tax and prone to levying of penalty, under section 221 up

to the amount of tax not remitted plus prosecution under section 276 B for a

period ranging from three months to seven years with fine. Though the statutory

provisions are clear, it was observed during the year under audit that the Income

Tax deducted at source from the work bills was not remitted to the Central

Government Account till the close of audit. Such irregularities noticed were

pointed out in the relevant audit reports.


Sl. No. Name of the AMC & District I.T to be

remitted

Rs.

Para No.

1 Devarakadra, Mahaboobnagar 59016 19

2 Rajampeta, Kadapa 13440 6

3 Bhadrachalam, Khammam 26915 4

4 Dharmaram, Karimnagar 24518 4

5 Korutla, Karimnagar 4055 11

6 Tandur, Rangareddy 4580 7

7 Kovvur, West Godavari 50169 12

Total: 182693

6.2 SALES TAX / VAT DEDUCTED BUT NOT REMITTED OR PARTLY

REMITTED

Under A.P.G.S.T Act 1957 as amended from time to time and as per


350

Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax

@ 2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for

exclusive civil contracts for laying or repairing of roads and contracts for canal

digging lining and repairing and @ 4% of turnover for all categories of other

contracts not falling in the above mentioned category has to be recovered from the

work bills and remitted to state funds within a week from the date of recovery

failing which the Drawing Officer has to pay personally 24% penal interest

besides remitting the amount to state funds.

It was observed that Sales Tax/ VAT deducted at source from the work

bills was not remitted to the state funds till the close of audit. Such irregularities

noticed were pointed out in the relevant audit reports of the AMCs. A few of

such cases are mentioned below.

VAT/TOT DEDUCTED BUT NOT REMITTED

Sl.

No.

Name of the AMC & District To be

remitted

Rs.

Para No.

1 Achampeta, Mahaboobnagar 23666 20



4 Kalluru, Khammam 43915 5

5 Dhrmaram, Karimnagar 42018 4

6 Ibrahimpatnam, Rangareddy 4414 25

7 Nidamanoor, Nalgonda 20375 4

Total: 232160

6.3 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED OR

PARTLY REMITTED

As per G.O.MS.No.331, Industries and Commerce (M.I) Department,

Dated 21-06-2000, Seigniorage Fees or Dead Rent whichever is higher shall be

recovered from the work bills on all Minor Minerals despatched or consumed

from the land at the rates specified in Schedule-I and Schedule-II annexed to the

said G.O as the case may be and to be credited to the consolidated fund of State

Government through the concerned Assistant Director of Mines & Geology of the

District. However, it was observed that though the amounts were recovered from

the work bills towards Seigniorage Fees, the same were either not remitted or

partly remitted to State Funds till the close of audit. Such inaction was pointed

out in the relevant audit reports of the AMCs. Some of such instances are listed

below.

351

SEIGNIORAGE CHARGES COLLECTED BUT NOT REMITTED

Sl.

No.

Name of the AMC & District Seigniorage Fee

collected but not

remitted

Rs.

Para

No.

1 Nidamanoor, Nalgonda 12106 4




5 Ibrahimpatnam, Rangareddy 5299 25

Total: 155523

6.4 NAC CHARGES DEDUCTED FROM WORK BILLS BUT NOT

REMITTED

NAC charges effected from work bills were not remitted till the close of

audit. Such inaction of the Executive Authority was pointed out in the relevant

audit reports and some such instances are shown below.

NAC Charges

Sl.

No.

Name of the AMC & District Deducted

but not

remitted

Rs.

Para No.

1 Devarakadra, Mahaboonnagar 6587 17

2 Narayanapeta, Mahaboonnagar 2022 17



5 Narsingi, Rangareddy 1748 7

Total: 22468

7. NON-PRODUCTION OF RECORDS (Category 11)

The AMCs have to maintain effective financial management skills and



accounted for as per the provisions contained in AP Account code. These initial

accounts are to be kept ready and should have to be produced to Audit for

verification. Then only the transparency in incurring of public money and their

utility to the General Public can be reasonably judged.

Such an important function on the part of the Drawing and disbursing

officers of all the AMCs in the maintenance and production of records to audit is

not properly being discharged. Thereby the main access to clear the doubt of

352

transparency in public expenditure has not been availed. In spite of all guidelines

and instructions, the DDOs of Agriculture Market Committees have failed to

maintain the records and to produce the same to Audit whenever the local teams

visited their institutions. Under the category of non – production of records to

Audit, the major part is in works and the related records such as M Book, estimate

file, tenders etc. The others are non-production of vouchers along with the related

files and register. The paras on non-production of records have been drawn from

the individual Audit Reports of the institutions concerned and their details are

furnished hereunder. Further it is surprising to note that the heads of the

institutions could not explain why the records could not be maintained in the

office and can be produced when ever they are being demanded by the audit

parties and other agencies during their local visits.

A Consolidated Statement No. 4 (11) of Non-production of records is

appended to the report for Rs. 2887.07 lakhs pointed out in 936 audit paras.

7.1 EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS Etc., - NOT PRODUCED

Amounts were drawn in the vouchers detailed in the respective audit

paras and stated to have been spent on execution of works during the year. But the

sanctioned estimates, measurement books and agreement files were not produced

to audit for verification.

A few such cases are mentioned below.

Sl.

No.

Name of the

AMC & Dist.,


produced

Amount

involved

Rs.

Para

No.

1 Parchuru,

Prakasam

M.books, Estimates, Connected

files

1141771 10

2 Vemulawada,

Karimnagar

Construction of Compound wall at

sub-yard, Boyinpalli Measurement

Book not produced

150000 11

3 Amangal,

Mahabubnagar

M.book, Estimates and connected

Files

299632 17

4 Narayanapet,

Mahabubnagar


connected files

935429 18

5 Devarakadra,

Mahabubnagar

M.books, Estimates and Connected

Files

2721334 22

Total 5248166


353

7.2 PAID VOUCHERS/CHALLANS NOT PRODUCED:

Audit came across several cases where amounts were drawn from the

funds of AMCs, but, the connected paid vouchers/challans were not produced to

audit for verification. Such irregularities noticed were pointed out in the relevant

Audit Reports. A few such cases are given below.

Sl.

No.

Name of the

AMC & Dist.,


produced

Amount

involved

Rs.

Para

No.

1 Ponduru,

Srikakulam

Fertilizer Account – Connected

Records

400000 34

2 Musthabad,

Karimnagar

LTC (Home Town) claim –

Vouchers and Connected Records

5600 11

3 Ongole,

Prakasam

Arrears bill etc. 198855 21

Total 604455

7.3 RECORDS / REGISTERS / FILES NOT PRODUCED:

During the audit scrutiny for the year 2008-09, it was noticed that

expenditure was incurred for the stated purposes as shown in the respective audit

paras. But, the connected Registers, Records and Files were not produced for

verification and certification of audit. A few of such cases are detailed below.

Sl.

No

Name of the

AMC& Dist.,


produced

Amount

Rs.

Para

No.

1 Ponduru,

Srikakulam

Seed Account – Connected Records

not produced

4064446 26

2 Guntakal,

Ananthapur

Market fee paid to other AMCs –

Receipts not enclosed to Monthly

returns

142055 5

Total 4206501

7.4. PAYEES’ ACKNOWLEDGEMENT NOT PRODUCED

During the course of Audit on the accounts of the following AMCs, the

Payees’ Acknowledgements were not produced for verification. As the payments

are made through Demand Drafts, in the absence of relevant payees’

acknowledgements, whether the amounts were credited to the respective accounts

could not be verified.

354

Sl.

No

Name of the AMC

& Dist.,

Particulars of the records

not produced

Amount

involved

Rs.

Para

No.

1 Ramachandrapuram,

East Godavari

Paid to M.D., AP State Co-

operative Markfed, Hyderabad

1496813 6

2 Sathupalli,

Khammam

Contribution of 10% Central

Market Fund

690822 7

3. Railwaykoduru,

Kadapa

Contribution of Central

Market Fund

454251 6

4. Mahabubabad,

Warangal

Payment of 10% Contribution 159212 13

5. Kesamudram,

Warangal

Payment of 10% Contribution 148280 11

Total: 2949378

7.5 AMOUNT REMITTED – CHALLANS NOT PRODUCED

During the year 2008-09, amount was drawn and remitted to different

heads i.e., Sales Tax, Seigniorage Charges, Income Tax and NAC etc. But, the

challans for the said remittances were not produced to audit for verification. One

such case is mentioned below.

Sl.

No.

Name of the AMC & Dist. Amount

involved

Rs.

Para No.

1. Ongole, Prakasam 66857 14

Total 66857

8. MIS-APPROPRIATIONS (Category 12)

Cases of misappropriation of money noticed in audit were pointed

out in the audit reports concerned. No. of misappropriations noticed in audit is

annexed vide statement No.4 (12). A total no. of 47 cases involving an amount

of Rs. 22.72 lakhs were pointed out in the relevant audit reports.

To illustrate the various types of modus operandi, a few of such cases

pointed out are reproduced below.

8.1 AMC, JAMMALAMADUGU, YSR KADAPA DISTRICT - AMOUNTS

COLLECTED – NOT REMITTED IN FULL – RECORDS TAMPERED –

MISAPPROPRIATION OF AMOUNT Rs. 103871/-


355

Out of the collections made by the Agricultural Marketing Committees,

some amount was remitted through challans but shown in Chitta, cash book and

pass book etc as if the entire amount collected was remitted by indulging in

tampering of the above records. For instance, out of the amount of Rs. 29681/-

collected, only Rs. 9681/- was remitted in the Treasury through challan No. 352,

dated 18-4-2008 and the figures in challan, cash book, pass book were tampered

by adding a numeric figure of 2 before 9681/- to show that as if the entire

collected amount of Rs. 29681/- was remitted. Thus the differential amount of Rs.

20000/- was construed as misappropriated.

Likewise, an amount of Rs. 83871/- was misappropriated by the staff of

AMC in other four cases which needs to be recovered besides taking stringent

disciplinary action against the persons responsible.

(Para 17 of AR on the accounts of AMC, Jammalamadugu, YSR Kadapa

district for 2008-09)

8.2 AMC BOWENPALLY, RANGA REDDY DISTRICT - EXCESS

DRAWAL OF AMOUNT THROUGH SELF-CHEQUE – BALANCE

AMOUNT NOT REMITTED – MISAPPROPRIATION OF FUNDS

Rs.23940/-

An amount of Rs. 28779/- was drawn through self cheque No. 1638,

dated 17-6-2008 for payment towards electricity charges & leave salary of the

employees etc. But on verification, the total amount payable works out to Rs.

4839/- only thus resulting in excess drawl of Rs. 23940/- for which there was no

record or any particulars of remittance of amounts back. Drawal of funds in

excess beyond the requirement and non remittance of such excess amount

tantamount to misappropriation of AMC funds which needs to be recovered

immediately besides taking severe disciplinary action against the person/persons

responsible.

(Para 39 of AR on the accounts of AMC, Bowenpally, Rangareddy District

for 2008-09)

8.3 AMC, GADDIANNARAM, RANGA REDDY DISTRICT - AMOUNTS

COLLECTED BUT NOT REMITTED TO AMC FUNDS –

MISAPPROPRIATED-Rs.7248/-

During the course of audit, it was observed that an amount of Rs. 7248/-

was collected from the commission agents/licensed traders but the same was not

remitted to AMC funds which is construed as misappropriated. Immediate action

need to be taken for recovering the same from the person responsible.

(Para 5 of AR on the accounts of AMC, Gaddiannaram, Rangareddy District

for 2008-09)

356

8.4 LICENCE FEE COLLECTED AMOUNT SHORT TAKEN IN DAY

BOOK – MISAPPROPRIATION – Rs.3170/-

During the course of verification of Miscellaneous receipt books with

reference to Daily collection Register, it was observed that an amount of Rs.

3170/- was not taken into daily collection books though shown in the receipt

books which is construed as deliberate and misappropriated.

(Para 14 of the AR on the accounts of AMC, Thorrur, Warangal District for

2008-09)

9. EXCESS PAYMENTS (Category 13)

It was observed that in several cases excess payments were made due to

incorrect Calculation, Excess totaling in bills, admission of inadmissible claims,

Lack of knowledge of Government Instructions.

A Consolidated Statement No. 4 (13) of objections is appended to the

Report for Rs. 111.83 lakhs pointed out in 135 audit paras.

9.1 AMC, NIZAMABAD – IRREGULAR PAYMENT OF DEARNESS

RELIEF ON PENSION TO FAMILY PENSIONER – NEEDS IMMEDIATE

RECOVERY - Rs.21,430/-

During the course of audit, while verifying the pension payment

vouchers, it was noticed that Family Pension is being paid to Sri Mallaiah,

Watchman of the AMC, Nizamabad on the death of his wife Smt. Mallamma

while in service on 14-01-2008. On detailed verification of payment of Family

Pension to Sri Mallaiah, Watchman, it was observed that he was being paid

Family Pension and D.R. and I.R. on the said Family Pension at appropriate rates

from time to time.

According to the orders issued in G.O.Ms. No.125, Finance and Planning

(FW.Pension.I) Department, dated 01-09-2000, a pensioner can not enjoy both

Dearness Relief and Dearness Allowance, one on his pension and the other on his

salary.

But, in this case, Sri Mallaiah, Watchman was being paid Dearness

Relief on Family Pension (on the death of his wife Smt. Mallamma while in

service) with effect from 15-01-2008 at appropriate rates and he is also being paid

Dearness Allowance on his own pay, which is highly irregular and contrary to the

above Government Orders.

The irregular payment of Dearness Relief was calculated up to 31-03-

2009 in the annexure enclosed and worked out at Rs.21,430/-.


357

Statement showing the particulars of Dearness Relief payments on Family

Pension to Sri Mallaiah, Watchman, Husband of Late Smt. Mallamma, Ex-

Watchman (From 15-01-2008 to 31-03-2009)

Voucher

No.

and Date

Voucher

Amount

Rs.

Family

Pension being

paid to Sri

Mallaiah,

Watchman

Rs.

Dearness

Relief

Paid

@ 35.796%

Rs.

Total Family

Pension

(Pay + DR on

Family

Pension)

Rs.

Period

090/-06-08 22,812/- 16,798/- 6,014/- 22,812/- 15-01-08 to

31-05-08

120/-06-08 2,33,859/- 3,693/- 1,322/- 5,015/- June, 2008

165/-07-08 2,31,269/- 3,693/- 1,322/- 5,015/- July, 2008

246/-09-08 2,24,724/- 3,693/- 1,322/- 5,015/- August, 2008

283/-09-08 2,38,730/- 3,693/- 1,322/- 5,015/- September,

2008

326/-10-08 2,59,258/- 3,693/- 1,322/-

IR 554

5,569/- October, 2008

457/-11-08

458/-11-08

459/-11-08

3,13,324/- 3,693/- DR @42.390%

DR 1566/-

15% IR 554/-

DR Arrears

976/-

6,789/- November,

2008 and DR

Arrears from

01-07-08 to

31-10-08

634/-01-09 2,71,069/- 3,693/- DR 1566/-

15% IR 554/-

5,813/- December,

2008

724/-02-09 2,84,183/- 3,693/- DR 1566/-

22% IR 813/-

6,072/- January, 2009

751/-02-09 2,82,003/- 3,693/- DR 1566/-

22% IR 813/-

6,072/- February, 2009

3,693/- DR 1566/-

22% IR 813/-

6,072/- March, 2009

TOTAL DR 21,430/-

IR 4,101/-

358

The Executive Authority is suggested to stop the payment of Dearness

Relief on Family Pension to Sri Mallaiah and recover Rs.21,430/- towards

inadmissible payment of Dearness Relief on Family Pension already made (as

worked out in the above annexure). He is further requested to calculate the

payment of Dearness Relief on Family Pension up to the date and recover the

same from Sri Mallaiah and made good the entire recovered amount to AMC

funds and fact intimated to audit.

(Para 15 of AR of AMC, Nizamabad for the year 2008-09)

10. WASTEFUL EXPENDITURE (Category 14)

The cannons of financial propriety envisaged in Andhra Pradesh

Financial Code are sacrosanct for all Government Authorities entrusted with

authorizing or incurring of expenditure from public funds. As per Article 3 of

A.P. Financial Code Vol.I every DDO is to exercise the same diligence and care

in expending public money under their control as persons of ordinary prudence

would exercise in respect of their own money. The responsibility of the

Government Officer, who is entrusted with duties of dealing with public money is

greater than his responsibility towards private money. Government have issued

instructions through various orders and also incorporated in the statutes of local

bodies the various items on which public money can be expended and the

principles to be adhered to while expending money on such items. Yet, it was

noticed in audit that the funds of local bodies were spent several times without

adhering to the established canons of financial propriety leading to wasteful

expenditure of public money. All the cases of such wasteful expenditure observed

in the audit for the year 2007-08 were avoidable, extraordinary and lacked proper

planning.

A Consolidated Statement No. 4 (14) of Wasteful expenditure is

appended to the Report for Rs. 15.13 lakhs was pointed out in 37 audit paras.

10.1 ADVERTISEMENT CHARGES PAID - WASTE FUL

EXPENDITURE-Rs. 61,111/-

During the course of audit, it is noticed that the following amounts were

drawn and paid towards advertisement Charges for various purposes as detailed

and noted against each. It is observed that the cash bill and acquittance were

produced but the expenditure incurred towards advertisement was not related to

the AMC activities. Hence, it is treated as wasteful expenditure.

Sl.

No.

Vr. No. & Date Particulars Amount

Rs.

1. 108/7-2008 Advertising Charges of

inauguration of Sakshi Daily

Newspaper

51,233/-


359

2. 85/7-2008 Adv. Charges of 12th

Anniversary Celebration of

Vaartha Daily Newspaper

9,878/-

Total 61,111/-

10.2 INADMISSIBLE ITEM OF EXPENDITURE – EXPENDITURE MET

FROM A.M.C FUNDS FOR THE PURPOSE OTHER THAN ADMISSIBLE

ITEMS – NEEDS RECOVERY - Rs.6767/-

The following items of the Expenditure were incurred from the AMC

funds during the year under report, which are not authorized item to be met from

the AMC Funds as per rules framed under.

Therefore the total Expenditure of Rs.6767/- would need to be recovered

from the person or persons responsible and remit to the AMC Fund under


Sl.No. Vr.No.&

Date

Particulars Amount

1 67/8-08

Advertisement charges towards DASERA

FESTIVAL in Vartha News Paper inner page

of Dist edition vide receipt No.2467030

3500/-

2 115/11-08 Advertisement charges towards DASERA

FESTIVAL

Sakshi 9-10-08 Rs.1080/-

And Jyoti 4-10-09 Rs.2187/-

Total Rs.3267/-

Voucher amount bills 8067/-

3267/-

Total 6767/-

(Para No.4 of AR of AMC Sarangapur, Adilabad District)

10.3 EXPENDITURE INCURRED ON HOME GUARDS –

ABNORMAL EXPENDITURE OF Rs. 5,09,175/- - HELD UNDER

OBJECTION:

During the course of audit, it is learnt that during the Hon’ble Chief

Minister’s visit on 7.12.2000, it was reported that thefts are occurring in the

AMC. As per the instructions, a Committee was constituted under the supervision

of District Collector and Superintendent of Police, Nizamabad and 10 other

officers on 10.12.2000 and during the committee meeting, a resolution was passed

and orders were issued. Accordingly, Home Guards were deputed for security.

Expenditure was incurred for purchasing investigation equipment and on salaries

of the Home Guards. This practice is still continuing. During the year 2008-09, an

amount of 5,09,175/- was incurred on 15 Home Guards. During the said year, 42

360

security guards were working and an amount of Rs. 19,84,653/- was incurred on

them. When such a huge expenditure is incurred on Security Guards, incurring

expenditure on the Home Guards also seems to be wasteful. Hence, it may be

reviewed as to whether engaging Home Guards is still necessary and decision

may be taken accordingly.

(Para No. 17 of AR of AMC, Nizamabad, Nizamabad district for the year 2008-

09)

11. INSTANCES OF CASES OF UNACCOUNTED CASH /

STORES (Category 15)

Several instances of cash/stores unaccounted for were noticed during the

course of audit and a few of such audit observations are furnished hereunder:

Consolidated statement of cases of unaccounted for cash/stores in

Statement No. 4 (15) is appended to the report from which it can be noticed that

24 paras involving Rs. 2.80 lakhs were reported.

11.1 AMC, CHINTAPALLI, VISAKAPATNAM DIST. - MARKET FEE

COLLECTED AT CHECK POST - NOT REMITTED TO A.M.C FUNDS -

FUNDS MISAPPROPRIATED - NEEDS EARLY ACTION Rs.7,747/-

During the course of Audit, it is noticed that a total sum of Rs.7,747/- was

collected through M.Rs at check post towards Market fee from various Business

persons as detailed below.

Receipt Book No. Receipt Nos. Amount

Collected

Rs.

3788 to 3792

76 7,747/-

But the said amount has not been remitted to Market Committee funds till

the close of audit. As per the Govt. instructions issued i.e. GO.Ms.No.195 (F&P)

(F.W.) TFR dt. 24-5-1989 as per TR 10(i) (ii) & SR (8cc) 10(a) (b) whatever the

amounts collected shall be remitted to institution funds at the earliest possible

time. But in this case, the instructions were not followed. Hence necessary steps

would need to be taken for recovery of the said amount from the person or

persons responsible and remitted to AMC Funds besides taking administrative

action against the individuals responsible.

(Para No.18 of AR of AMC, Chintapalli, Visakhapatnam district for the year

2008-09)


361

12. PENDENCY OF UTILIZATION CERTIFICATES (Category 16)

NIL

13. SURCHARGE CERTIFICATES RECOVERY PENDING (Category 17)


thereunder, the audit of local authorities i.e., Zilla Parishads, Mandal Parishads, Gram Panchayats, AMCs, Municipalities, Zilla Grandhalaya Samsthas and other institutions

and schemes as entrusted by the Government is being conducted and various defects

noticed during the audit also pointed out in the relevant Audit Reports every year. In the

case of serious irregularities, Special Letters are also issued to Chief Executive Authorities concerned to make the loss good to the funds of the institutions concerned.

Pursuant to the special letters, surcharge action as per Sec. 10 of the State Audit

Act, 1989 is initiated for recovery of the amounts involved in clear cases of the loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular payments. The

amounts surcharged have to be recovered treating them as Revenue Recoverable under

Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State Audit Rules issued in

G.O.Ms.No. 130, Finance & Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the cases mentioned in the statement.

Immediate action would need to be taken to recover the surcharged amount from

the surcharges and fact be intimated to audit.

A Consolidated Statement No. 4 (17) Issue of Surcharge Certificates is appended to

the Report for Rs. 11.07 lakhs was pointed out in 6 audit paras.

14. OTHERS (Category 18)

Other objections which were not fallen in the above categories are

incorporated under this category. Such objections numbering 875 were raised for an

amount of Rs. 1807.56 lakhs as detailed in Statement No. 4 (18).

14.1 A.M.C. MUMMIDIVARAM, EAST GODAVARI DISTRICT - GODOWNS

BELONGING TO A.M.C.s - UNUTILISED - LOSS OF REVENUE TO

COMMITTEE FUNDS BY WAY OF NON REALIZATION OF RENT - NEEDS

ACTION :

During the course of audit, the records revealed that the committee owned 6

Godowns - 5 at Mummidivaram and one at Katrenikona out of which one godown at

Mummidivaram was leased out to Civil Supplies Department with a monthly rent of Rs.

5000/- P.M. and the remaining 5 Godowns were kept vacant. The reasons for keeping the

godowns vacant were not forthcoming to Audit. However, the institution due to keeping



362

of godowns vacant, is put to loss of revenue to the tune of Rs. 3,00,000/- per annum ( if

they are leased out @ Rs. 5,000/- P.M.).

Further, the file relating to the Godown at Mummidivaram leased out to Civil

Supplies department was also not produced to verify the correctness of the demand of @

Rs. 5000/- P.M.

(Para No.17 of AR of AMC, Mummidivaram, East Godavari district for the year 2008-

09)

14.2 A.M.C. KOTHAPETA, EAST GODAVARI DISTRICT - FERTILISERS,

PESTICIDES AND SEEDS - ACCOUNTS NOT MAINTAINED PROPERLY -

CERTAIN DEFECTS:

In Resolution No. 9 dated 13.3.07 of the Market Committee, Kothapeta, East

Godavari District, it was proposed to take up the sale of fertilizers, pesticides and seeds to

Ryots on Co- Operative basis. The Director of Marketing, Hyderabad accorded sanction

for Rs. 4,72,810/- to withdraw and deposit in Scheduled Bank to transact the business.

A separate cash book was opened.

As verified from the subsidiary register maintained on the said cash book, the

following defects were found.

1. The survey report of the fields for the requirement of fertilizers, pesticides and seeds

etc were not obtained from the field staff and not produced to audit to verify the

correctness of the quantities purchased.

2. The list of approved registered firms and companies were not produced at the time

of the Audit to verify quality of the pesticides etc.

3. The terms and conditions for supply of the quantities made by the concerned firms

were not produced.

4. The register was not produced showing the particulars like (a) place of indent (b)

Amount deposited (c) Advance payment if any (d) Quantity and Quality of the

supplies (e) Actual Quantity and quality of supplies (f) Arrival of sale rate etc.

5. The list of Ryots in market committee area was not produced at the time of Audit to

verify the sales made accounting register of sales.

6. The loss if any sustained due to non sale of expired pesticides and fertilizers,

purchased stocks excess over the required quantity would need to be recovered from

the person or persons responsible.

14.3 A.M.C MARTUR, PRAKASAM DISTRICT - SALE OF BENGALGRAM

SEEDS TO FARMERS - STOCK REGISTER OF RECEIPT BOOKS NOT

MAINTAINED:

As verified from the stock register of Bengal Gram seed, 18467 bags were

received from the following firms during the year. The same were sold to the farmers by

the A.M.C. Martur. The receipt books were also received from the concerned firms for

sales purpose. The seed of Bengal Gram were sold through receipt books by A.M.C. It

was observed that the stock register of the receipt book which were received from the

concerned firms was not maintained and produced to audit. In the absence of the stock

363

register, the correctness of the collection amount could not be checked in audit. If any

loss caused in this regard, the same would need to be recovered from the person or

persons responsible.

Sl.No. Name of the firm No. of Bags

received

1 AP Seeds 8000

2. HAKA 5600

3. AP Mark Fed 4867

Total: 18467

(Para No.22 of AR of AMC, Martur, Prakasam district for the year 2008-09)

14.4 A.M.C BANTUMILLI, KRISHNA DISTRICT - MARKET FEE - ANNUAL

ASSESSMENTS NOT VERIFIED:

Under Bye-Law 4415 with the section 12(B) and 17(C) of Andhra Pradesh

(Agricultural produce & Live Stock ) Market Committee Act 1966, all the Traders who

are liable to pay Market Fee shall produce their accounts for Annual Assessments and the

difference of Market fee if any due to Committee has to be paid by them before

assessment every year.

But as seen from the Market fee Demand Register and their Records viz.,

Monthly Returns for the month of March, it is noticed that the Annual Assessments of

Traders for the periods noted below were not finalized by the

Secretary, Agriculture Market Committee, Bantumilli.

DETAILS OF ASSESSMENTS ANALIZED & PENDING DURING 2008-2009

Sl.

No. Year

Assessments

pending (OB)

Assessments

completed

during the

year

Balance

1 2004-2005 03 - 03

2 2005-2006 15 1 14

3 2006-2007 31 2 29

4 2007-2008 31 5 26

Total 80 8 72

Action would need to be taken to verify the Assessments relating to the traders

and to fix up market fee demand and short remittance of Market Fee would need to be

recovered from the traders and credited to the Committee funds.

(Para No.10 of AR of AMC, Bantumilli, Krishna District for the year 2008-09)

364

15. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES ETC., RECEIVED BUT NOT REALIZED WITHIN TIME (Category 19)

Demand Drafts and cheques received for payment of money due to the Institution are to be entered in a register of Demand Drafts and Cheques received and should be sent to the Banks for realization immediately. In the following cases, Demand Drafts received were not presented to the banks for payment till the close of audit.

A Consolidated Statement No. 4 (19) of Non-realization of Cheques in time is appended to the Report for Rs. 12.38 lakhs was pointed out in 1 audit para.

DATE 20-01-2012

HYDERABAD DIRECTOR,

STATE AUDIT,

A.P., HYDERABAD.


365

366

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF AMCS FOR THE YEAR 2008-

09

SL.

NO

NAME OF THE

DISTRICT

AUDIT PENDING AS

ON 1-04-2009

AUDITS

COMPLETED AS ON

31-03-2010

BALANCE AS ON

31-03-2010


1 Adilabad 0 16 0 16 0 0

2 Ananthapur 0 13 0 13 0 0

3 Chittoor 0 15 0 15 0 0

4 East godavari 1 19 0 19 1 0

5 Guntur 0 18 0 18 0 0

6 Kadapa 1 12 0 12 1 0

7 Karimnagar 0 20 0 20 0 0

8 Khammam 0 13 0 13 0 0

9 Krishna 0 18 0 18 0 0

10 Kurnool 0 12 0 12 0 0

11 Mahaboobnagar 0 17 0 17 0 0

12 Medak 0 11 0 11 0 0

13 Nalgonda 0 19 0 19 0 0

14 Nellore 0 11 0 11 0 0

15 Nizamabad 0 10 0 10 0 0

16 Prakasam 0 14 0 14 0 0

17 Ranga reddy 0 13 0 13 0 0

18 Srikakulam 0 13 0 13 0 0



21 Warangal 0 12 0 12 0 0

22 West godavari 0 18 0 18 0 0

TOTAL: 2 311 0 311 2 0

367

STATEMENT No. 2 (1) STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS


Rs. In lakhs

Sl.

No.

NAME OF THE

DISTRICT RECEIPT PAYMENT

1 Adilabad 1772.20 1562.22

2 Ananthapur 930.14 1046.59

3 Chittoor 823.84 1014.41

4 East Godavari 3155.93 3186.71

5 Guntur 6284.21 5709.97

6 Kadapa 898.41 950.35

7 Karimnagar 2296.26 1883.01

8 Khammam 2139.78 1782.78

9 Krishna 3168.27 3136.88

10 Kurnool 1719.78 1972.62


12 Medak 492.57 529.32

13 Nalgonda 2573.28 2044.55

14 Nellore 1169.65 1002.63

15 Nizamabad 1498.91 1411.02

16 Prakasam 1765.35 1888.74

17 Ranga Reddy 2246.26 2585.48

18 Srikakulam 1013.85 708.98



21 Warangal 2725.78 2978.91

22 West Godavari 3770.68 3596.90

TOTAL: 43316.82 41290.29

368

STATEMENT No. 2 (2)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS FOR THE YEAR 2008-09

(RECEIPT HEADS)

Sl.

No.

NAME OF

THE

DISTRICT MA

RK

ET

FE

ES

LIC

EN

SE

FE

ES

LA

TE

FE

E

PR

OP

E

RT

Y

RE

NT

A

L F

EE

S

INT

ER

ES

T O

N

INV

ES

TM

EN

T

AU

CT

I

ON

S

INC

OM

E F

RO

M

MIS

CE

L

LA

NE

O

US

SO

UR

C

ES

DE

PO

S

ITS

LO

AN

AD

VA

N

CE

S

GR

AN

T

IN A

ID

TOTAL

1 Adilabad 1449.33 17.57 0.02 113.01 0.16 0.02 1.19 7.84 58.05 66.40 58.61 1772.20

2 Ananthapur 641.20 4.36 0.14 24.67 3.45 1.68 2.10 20.79 59.68 61.54 110.52 930.14

3 Chittoor 642.94 5.61 9.57 21.23 3.92 1.15 60.88 25.84 13.26 8.57 30.87 823.84

4 East Godavari 2188.55 12.95 0.05 11.30 9.88 0.79 31.86 10.02 17.51 113.98 759.04 3155.93

5 Guntur 4892.23 57.21 2.48 35.87 13.85 69.95 352.35 62.67 392.49 56.69 348.42 6284.21

6 Kadapa 553.12 3.40 0.08 9.97 0.97 0.65 17.11 10.50 113.65 22.74 166.22 898.41

7 Karimnagar 2010.64 12.18 0.01 16.75 13.62 1.83 5.03 7.05 123.68 40.84 64.63 2296.26

8 Khammam 1621.76 7.20 0.27 22.09 2.00 1.13 4.65 25.58 105.66 101.71 247.73 2139.78

9 Krishna 2291.93 16.12 0.24 13.54 6.83 2.16 15.11 11.38 374.39 45.98 390.59 3168.27

10 Kurnool 1439.78 8.96 1.28 49.61 30.79 0.53 45.56 52.66 54.51 27.29 8.81 1719.78

11 Mahaboobnagar 1332.66 9.83 0.35 21.37 0.72 0.01 68.67 33.64 90.83 94.62 0.03 1652.73

12 Medak 440.53 6.20 0.03 16.20 0.54 0.28 0.01 1.52 19.78 5.40 2.08 492.57

13 Nalgonda 1752.29 4.24 0.89 17.49 8.15 0.87 229.51 17.94 391.22 74.77 75.91 2573.28

14 Nellore 926.46 6.89 0.28 51.67 5.96 0.01 24.04 37.77 53.63 13.81 49.13 1169.65

15 Nizamabad 1202.60 6.76 0.04 0.00 165.82 0.00 24.09 0.94 84.95 0.00 13.71 1498.91

16 Prakasam 1173.96 6.79 0.05 38.15 6.76 0.02 449.26 13.73 18.65 26.18 31.80 1765.35

17 Ranga Reddy 1538.72 22.80 7.44 268.04 253.49 1.41 13.63 5.98 89.79 10.11 34.85 2246.26

18 Srikakulam 898.69 7.09 0.73 2.87 1.91 0.07 15.12 12.20 8.61 28.17 38.39 1013.85

19 Visakhapatnam 482.79 11.51 0.25 6.30 2.75 0.74 6.36 5.90 2.80 27.80 47.48 594.68

20 Vizianagaram 504.72 5.91 0.02 6.90 0.12 2.16 61.96 15.73 0.02 13.60 13.13 624.26

21 Warangal 2385.98 13.21 0.04 18.71 3.44 10.71 2.90 14.82 125.86 149.80 0.31 2725.78

22 West Godavari 2964.10 16.93 1.19 11.06 4.69 2.11 155.60 22.75 317.70 63.17 211.38 3770.68

TOTAL: 33334.97 263.73 25.45 776.80 539.81 98.27 1586.99 417.25 2516.72 1053.17 2703.64 43316.82

369

STATEMENT No. 2 (3)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS FOR THE YEAR 2008-09

(PAYMENT HEADS)

Sl.

No

.

NAME OF

THE

DISTRICT S

AL

AR

IES

OT

HE

R

AD

MN

.

EX

PE

ND

ITU

RE

LA

W

CH

AR

GE

S

AC

QU

ISIT

I

ON

OF

PR

OP

ER

TIE

S

DE

VE

LO

PM

EN

T

WO

RK

S

FU

RN

ITU

RE

AN

D

VE

HIC

LE

S

ET

C.,

10%

CO

NT

RIB

U

TIO

N T

O

CE

NT

RA

L

MA

RK

ET

IN

G F

UN

D

RE

PA

YM

EN

T O

F L

OA

NS

OT

HE

RS

AD

VA

NC

ES

DE

PO

SIT

S

OTHER

S TOTAL

1 Adilabad 212.01 154.74 28.21 0.00 249.69 8.24 119.49 7.54 282.26 69.47 22.62 407.95 1562.22

2 Ananthapur 239.87 248.34 1.55 0.00 187.35 4.34 62.50 11.62 17.33 19.28 13.14 241.27 1046.59

3 Chittoor 289.04 46.72 0.48 0.00 128.04 23.99 73.30 18.53 88.88 187.42 8.45 149.56 1014.41

4 East Godavari

365.05 500.02 5.75 146.4

2 141.06 23.67 224.03 197.64 464.94 783.34 9.52 325.27 3186.71

5 Guntur

768.51 420.85 3.44 133.8

7 873.37 30.03 488.67 421.88 1481.49 376.25 24.31 687.30 5709.97

6 Kadapa 260.03 197.68 0.69 0.00 165.47 4.01 57.26 36.67 20.41 7.58 8.83 191.72 950.35

7 Karimnagar 315.32 626.93 0.89 0.00 266.72 16.60 200.49 85.28 2.02 34.88 5.11 328.77 1883.01

8 Khammam 303.50 863.54 4.20 0.00 79.97 0.00 54.32 1.00 279.42 154.84 40.04 1.95 1782.78

9 Krishna 445.86 1062.58 2.41 0.00 381.34 10.11 188.02 244.70 79.12 169.02 3.08 550.64 3136.88

10 Kurnool 353.72 325.09 0.98 0.00 505.64 7.52 156.46 22.07 423.88 161.98 15.28 0.00 1972.62

11 Mahaboobnagar 340.06 181.22 2.37 94.81 208.78 3.56 112.95 67.39 10.65 74.22 54.16 61.35 1211.50

12 Medak 124.49 58.69 0.62 0.60 118.13 14.40 66.71 0.96 41.74 85.81 1.29 15.88 529.32

13 Nalgonda 419.73 216.65 2.56 0.05 629.57 69.90 166.64 17.36 0.72 379.14 5.43 136.80 2044.55

14 Nellore 140.69 223.33 4.17 10 156.52 4.04 112.21 76.96 257.83 7.93 8.95 0.00 1002.63

15 Nizamabad 325.54 566.56 0.00 0.00 0.00 0.00 122.60 11.25 31.87 126.48 0.00 226.72 1411.02

16 Prakasam 299.84 538.55 2.95 2.97 203.98 15.36 115.05 399.95 165.71 103.22 13.32 27.84 1888.74

17 Ranga Reddy 700.29 623.96 3.28 0.00 372.93 8.37 141.65 5.20 339.75 29.79 32.18 328.08 2585.48

18 Srikakulam 205.21 47.74 2.05 0.93 29.29 1.08 72.53 215.45 74.40 49.69 10.61 0.00 708.98

19 Visakhapatnam 145.36 44.40 1.63 4.55 72.88 6.93 53.62 22.12 75.39 11.23 5.86 102.95 546.92

20 Vizianagaram 112.22 176.96 1.17 0.00 10.66 3.30 40.95 20.00 86.20 7.26 5.25 75.83 539.81

21 Warangal 349.11 1600.71 1.91 0.00 646.21 9.90 199.50 40.41 32.97 34.41 5.97 57.81 2978.91

22 West Godavari 1738.79 332.11 103.69 14.09 206.62 16.15 259.17 282.92 667.64 318.56 15.22 848.83 4803.79

TOTAL: 8454.24 9057.37 74.99 408.2

9 5634.22 281.50 3088.12 2206.89 4666.56 3191.80 308.62 3917.68 41290.29

370

STATEMENT. 3 (3) 1

STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONS

Rs. In lakhs

Sl.

No.

NAME OF THE

DISTRICT

VARIATION IN

ACCOUNT

FIGURES

EXCESS

UTILISATION

OF GRANTS /

FUNDS

DIVERSION OF

GRANTS /

FUNDS

NON-

UTILIZATION OF

GRANTS BEFORE

THE LAPSABLE D

MIS -

UTILISATION OF

GRANTS / FUNDS

NON-

UTILIZATION OF

EARMARKED

FUND

NON-COLLECTION

OF DUES


1 Adilabad 1 0.05 8 4.22 9 246.80 0 0.00 2 0.56 0 0.00 1 0.06

2 Ananthapur 6 0.00 8 1.83 4 3.76 0 0.00 0 0.00 0 0.00 30 17.10

3 Chittoor 1 0.00 7 36.82 1 1.36 0 0.00 1 0.00 0 0.00 16 9.09

4 East Godavari 2 5.47 9 31.97 2 35.20 0 0.00 0 0.00 0 0.00 40 47.70

5 Guntur 3 0.00 9 50.45 1 0.00 1 0.00 1 0.16 0 0.00 29 21.46

6 Kadapa 5 0.00 3 16.02 0 0.00 9 76.73 0 0.00 0 0.00 9 0.45

7 Karimnagar 6 0.34 1 0.69 3 2.37 0 0.00 0 0.00 0 0.00 7 12.03

8 Khammam 1 0.00 1 2.20 0 0.00 0 0.00 1 1.10 0 0.00 11 63.97

9 Krishna 3 0.02 3 1.28 0 0.00 0 0.00 0 0.00 0 0.00 37 234.95

10 Kurnool 0 0.00 2 0.60 2 26.08 1 1.37 3 0.01 4 0.44 9 7.62

11 Mahaboobnagar 8 2.28 4 3.34 4 3.89 0 0.00 1 0.00 1 5.20 48 2.97

12 Medak 7 4.93 9 100.27 2 2.25 1 0.00 0 0.00 0 0.00 10 24.22

13 Nalgonda 24 0.00 14 0.00 6 2.38 0 0.00 1 0.32 1 0.18 32 115.20

14 Nellore 3 0.00 4 4.44 3 5.24 0 0.00 0 0.00 0 0.00 19 90.34

15 Nizamabad 0 0.00 6 8.82 8 104.56 0 0.00 0 0.00 0 0.00 15 95.43

16 Prakasam 7 0.00 7 6.73 0 0.00 0 0.00 0 0.00 0 0.00 13 18.34

17 Ranga Reddy 17 5.98 4 2.44 4 7.60 0 0.00 0 0.00 0 0.00 24 29.26

18 Srikakulam 4 6.57 0 0.00 1 0.05 0 0.00 0 0.00 0 0.00 23 68.94

19 Visakhapatnam 6 0.09 3 0.00 0 0.00 0 0.00 0 0.00 0 0.00 20 95.87

20 Vizianagaram 4 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 20 59.86

21 Warangal 7 4.78 5 3.00 2 500.00 0 0.00 1 0.28 0 0.00 6 10.83

22 West Godavari 2 0.00 2 25.24 0 0.00 0 0.00 0 0.00 0 0.00 38 82.00

TOTAL 117 30.51 109 300.36 52 941.54 12 78.10 11 2.43 6 5.82 457 1107.69

371

STATEMENT 3 (3) 2

STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS

Rs. In lakhs

Sl.

No.

NAME OF THE

DISTRICT

ADVANCES PENDING

ADJUSTMENT

VIOLATION OF

RULES

NON-REMITTANCE OF

DEDUCTIONS/

RECOVERIES FROM

WORK

BILLS/PAYBILLS/CON

TINGENT BILLS

NON-

PRODUCTION OF

RECORDS

MIS-

APPROPRIATIONS

EXCESS

PAYMENTS


1 Adilabad 6 75.10 56 73.58 13 130.44 34 207.98 4 0.15 7 0.77

2 Ananthapur 37 6.06 47 30.87 10 2.30 56 24.60 8 0.39 4 27.53

3 Chittoor 7 12.86 45 6.38 5 3.22 24 46.42 0 0.00 0 0.00

4 East Godavari 28 463.53 70 239.03 8 1.32 65 510.26 0 0.00 5 0.34

5 Guntur 18 212.21 79 91.77 19 9.47 90 1244.34 0 0.00 12 1.66

6 Kadapa 6 4.67 58 42.44 7 1.64 48 74.83 4 2.03 2 0.49

7 Karimnagar 53 10.99 110 8.36 21 5.70 69 27.61 1 0.14 9 0.20

8 Khammam 9 704.47 25 13.15 29 16.15 13 7.34 0 0.00 13 65.93

9 Krishna 30 58.29 40 36.01 30 9.14 28 29.04 0 0.00 4 1.20

10 Kurnool 10 36.46 40 49.30 5 7.86 47 52.44 0 0.00 2 0.22

11 Mahaboobnagar 5 2.76 65 22.07 50 8.52 64 62.24 6 6.47 26 4.60

12 Medak 3 0.00 37 37.15 25 3.87 20 7.34 1 1.26 6 1.32

13 Nalgonda 9 295.33 30 58.62 24 3.66 21 14.83 1 0.21 1 0.00

14 Nellore 8 134.78 55 17.96 4 0.33 25 6.83 0 0.00 3 0.07

15 Nizamabad 6 171.39 38 39.97 21 12.71 10 22.89 3 0.24 7 0.31

16 Prakasam 8 0.55 91 27.01 7 1.87 63 260.53 6 10.53 3 0.51

17 Ranga Reddy 10 230.34 43 35.54 29 21.23 35 44.84 10 1.01 6 0.19

18 Srikakulam 10 6.34 128 47.85 20 0.96 85 79.89 0 0.00 4 0.24

19 Visakhapatnam 12 102.78 60 6.99 2 0.00 41 23.82 0 0.00 10 1.69

20 Vizianagaram 13 11.89 59 88.18 13 26.84 37 27.54 2 0.47 3 0.06

21 Warangal 2 1.33 62 139.87 34 17.65 44 89.58 4 0.06 13 4.68

22 West Godavari 23 105.66 36 118.77 5 5.01 27 44.76 0 0.00 2 0.13

TOTAL 313 2647.79 1274 1230.87 381 289.89 946 2909.96 50 22.96 142 112.14

372

STATEMENT 3 (3) 3 STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS Rs. In lakhs

Sl.

No.

NAME OF THE

DISTRICT

WASTEFUL

EXPENDITURE

INSTANCES

OF CASES OF

UNACCOUNT

ED FOR CASH

/ STORES

PENDENCY

OF

UTILISATIO

N

CERTIFICA

TES

SURCHARG

E

CERTIFICA

TES

RECOVERY

PENDING

OTHERS

D.D/CHEQUES

RECEIVED BUT

NOT REALIZED

WITH IN TIME

Total

No. AMOUNT No. AMOU

NT No.

AMOU

NT No.

AMOU

NT No. AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 1 7.86 0 0.00 1 0.40 0 0.00 52 417.43 0 0.00 195 1165.40

2 Ananthapur 2 1.03 0 0.00 0 0.00 1 0.34 31 0.00 0 0.00 244 115.81

3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 25 0.00 0 0.00 132 116.15

4 East Godavari 1 0.00 0 0.00 0 0.00 0 0.00 32 128.84 0 0.00 262 1463.66

5 Guntur 3 0.73 6 0.06 1 0.00 0 0.00 33 0.00 0 0.00 305 1632.31

6 Kadapa 1 0.30 0 0.00 0 0.00 0 0.00 19 2.08 0 0.00 171 221.68

7 Karimnagar 3 0.57 0 0.00 2 40.00 0 0.00 46 121.45 0 0.00 331 230.45

8 Khammam 0 0.00 13 2.50 0 0.00 0 0.00 17 83.78 0 0.00 133 960.59

9 Krishna 1 0.04 0 0.00 1 30.00 0 0.00 37 24.71 0 0.00 214 424.68

10 Kurnool 2 0.20 0 0.00 0 0.00 0 0.00 31 4.59 0 0.00 158 187.19

11 Mahaboobnagar 3 1.56 0 0.00 0 0.00 0 0.00 63 55.43 0 0.00 348 181.33

12 Medak 1 0.01 2 0.06 0 0.00 0 0.00 0 0.00 0 0.00 124 182.67

13 Nalgonda 2 0.49 0 0.00 0 0.00 0 0.00 51 44.06 0 0.00 217 535.28

14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 0.00 124 259.99

15 Nizamabad 0 0.00 0 0.00 0 0.00 1 5.09 54 0.69 0 0.00 169 462.10

16 Prakasam 1 0.55 0 0.00 0 0.00 0 0.00 23 14.04 0 0.00 229 340.66

17 Ranga Reddy 0 0.00 1 0.10 0 0.00 2 0.07 47 376.99 1 12.38 233 767.97

18 Srikakulam 2 0.12 0 0.00 0 0.00 0 0.00 171 254.11 0 0.00 448 465.07

19 Visakhapatnam 2 0.14 2 0.08 0 0.00 0 0.00 16 229.57 0 0.00 174 461.03

20 Vizianagaram 2 0.39 0 0.00 0 0.00 0 0.00 21 10.63 0 0.00 174 225.87

21 Warangal 10 1.15 0 0.00 0 0.00 2 5.57 57 14.26 0 0.00 249 793.04

22 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 49 24.90 0 0.00 184 406.47

TOTAL 37 15.13 24 2.80 5 70.40 6 11.07 875 1807.56 1 12.38 4818 11599.39

373

STATEMENT No. 4 STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY

WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09

Rs.

In lakhs.

Sl.

No. NAME OF THE CATEGORY No. AMOUNT




4 Non-utilisation of Grant before lapsable dates 12 78.10


6 Non-Utilisation of Earmarked Funds 6 5.82




10 CONSOLIDATION FIGURES 381 289.88







17 Surcharges Certificates Recovery Pending 6 11.07

18 Others 875 1807.56

19 D.D/Cheques Received but not realized within time 1 12.38

Total: 4818 11599.38

374

STATEMENT No. 5

CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT

OBJECTIONS (A.M.C)2008-09

Sl

No. Name of the district

Closing Balance as on 31.3.10

No.of

Paras

Amount (Rs. in

Lakhs)

1 Adilabad 1580 8674.48


3 Chittoor 492 376.69


5 Guntur 2409 10474.99

6 Kadapa 4734 2675.22


8 Khammam 661 2730.61

9 Krishna 1027 2377.44

10 Kurnool 2772 6943.10


12 Medak 245 349.10

13 Nalgonda 823 1877.75

14 Nellore 1249 2727.88

15 Nizamabad 596 2580.97

16 Prakasam 2150 1500.47

17 Ranga Reddy 837 1829.98




21 Warangal 2121 4499.30


TOTAL: 31058 69074.11

375

376

PART-V




REVIEW REPORT

ON THE ACCOUNTS OF

ZILLA GRANDHALAYA SAMSTHAS



A.P., HYDERABAD.

377

378

CONTENTS

STATEMENT No.

DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF ZILLA GRANDHALAYA

SAMSTHAS FOR THE YEAR 2008-09

PAGE No.

1 Introductions and a few selected audit objections of Zilla Grandhalaya

Samsthas category wise 381-402

1 Statement showing Dist wise Status of Audit of Zilla Grandhalaya Samsthas for the year 2008-09

403

2 (1) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09

404

(2) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09 ( (receipts)

405

(3) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09 (Payments)

406

3 3(3)1to 3 Statement showing the consolidated category wise audit objections.

407-409

4 4. Statement showing Number of Audit objections raised

(Category wise) and amount involved for the year 2008-09. 410

379

380


ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR THE

YEAR 2008-09

INTRODUCTION

1.1 The Director of the State Audit is the Statutory Auditor for the Local

Authorities including Zilla Grandhalaya Samsthas under section 3(1) of the

AP State Audit Act, 1989. The Department has got offices at all the district

head quarters headed by the District Audit Officer. The District Audit Officer

causes conducting of post audit of ZGS of the district in the month of June

every financial year and approves and issues Audit Report to the Secretary of

the ZGS of district concerned. These Audit Reports contain

(a) every payment which is contrary to law

(b) the amount of any deficiency, waste or loss which has been caused by the

gross negligence or misconduct of any person in the performance of his

duties.

(c) the amount of any sum received which ought to have been accounted but

is not brought into account by any person; and

(d) any material impropriety or irregularity which the auditor may observe in

the expenditure or in the recovery of money due.

1.2 The Audit is conducted by an Audit Party headed by the Assistant Audit

Officer. The District Audit Officer scrutinizes the Draft Audit Report along

with Annual Accounts submitted by the Assistant Audit Officer and approves

the Audit Report. The Audit Report will be issued to the Secretary, ZGS of the

District concerned with a request to furnish replies to each para of the Report

after getting due approval of the District Grandhalaya Committee within 60

days from the receipt of the Audit Report. The DAO scrutinizes the approved

replies furnished and settles the objections. In case the approved replies are

not acceptable, the DAO issues Further Remarks to the Secretary, ZGS on

what action required to be taken. The Secretary, ZGS should furnish the

replies to Further Remarks. In case the replies furnished to Further Remarks

are satisfactory, the DAO drops the objections. If replies are not satisfactory,

the DAO initiates Surcharge Action and submits Draft Surcharge Certificate to

the Regional Deputy Director for approval and issue against the Secretary

fixing the responsibility for the loss so sustained by the ZGS with a direction

to make good the loss with in 60 days. The amount so surcharged should be

recoverable from the Surchargee even resorting to Revenue Recovery Act till

the amount surcharged is recovered in full. In case the Surchargee has any

grievance, he may appeal to the Secretary, Finance, GOAP or file a suit in

civil court.

The Director/ his Subordinate Officers are vested with the powers of

disallowing every amount/item of the expenditure incurred contrary to the law

381

and surcharge the same on the person incurring or authorizing the incurring of

such expenditure and may charge against any person responsible therefore, the

amount of any deficiency, loss or unprofitable outlay occasioned by the


have been accounted for but not brought into account by the person and shall,

in every such case, certify the amount due from such person.

SCOPE OF AUDIT

2.1 The Scope of the Post Audit of ZGS encompasses the following items:

(i) Whether Library Cess (a) levied by all the Gram Panchayats in

the State on House Tax and all the ULBs in the State on

Property Tax @ 8%, (b) collected by all the Gram Panchayats

and ULBs and (c) whether the collected library Cess has been

properly adjusted to funds of Zilla Grandhalaya Samsthas

concerned.

(ii) Whether adequate care is taken in periodical checking up of the

funds with Treasury or Bank.

(iii) Whether expenditure incurred is provided for in the Budget of

the Zilla Grandhalaya Samstha and duly sanctioned by the

competent authority under the relevant rules and executive

instructions issued by the Government.

(iv) Whether funds are utilized only for the permitted purposes

prescribed for Zilla Grandhalaya Samstha under the A.P. Public

Libraries Act, 1960 / Rules.

(v) Whether the procedure prescribed by Government in incurring

the expenditure / payments made is properly followed and

accounted for with due classification in the books of accounts

of the Zilla Grandhalaya Samstha.

(vi) Whether vouchers for the expenditure incurred were

maintained.

(vii) Whether prescribed Registers have been maintained

(viii) Whether the Annual Accounts prepared with reference to the

Actual Transactions of the ZGS and express true and fair value of the

ZGS.

382

GRANTS RECEIVED DURING THE YEAR BY THE LOCAL

AUTHORITIES.

3.1 The Zilla Grandhalaya Samsthas are provided grants by the State

Government towards Salaries, Pensions, Contingent Expenditure and other

Grants for books, furniture etc.,The receipts and payments are inclusive of

the grants received from Government during the year 2008-09 by Zilla

Grandhalaya Samsthas.

3.2 The Pie chart of proportional Percentages of Receipts and Payments of

Zilla Grandhalaya Samsthas during the year 2008-09 is placed below.

3.3 The bulk of receipts came from Salary grant (46%) followed by Library

cess (34%) which shows that Grandalaya Samsthas are dependent on

Government grants instead of raising of its main resource.

Library Cess: This department has observed that Grampanchayats and Municipalities

have to remit Library cess to a tune of Rs.209.80 lakhs and Rs. 97.00 lakhs

respectively to Zilla Grandhalaya Samsthas. But no action was taken by the Zilla

Grandhalaya Samsthas to get the amounts remitted by the said institutions.

ZGS RECEIPTS 2008-09

34%

46%

7%

1%

0%

12% 1 LIBRARY CESS - 34%

2 SALARY

GRANT -46%

3 PENSION

GRANT -7%

4 CONTINGENT GRANT-1%

5 SALE OF OLD NEWS PAPERS-0%

6 OTHER

RECEIPTS-12%

383

3.5 The bulk of payments are for salaries (42%) followed by pensions (19%). The

Development expenditure is only 10% on cost of books and periodicals.

3.6 The receipts and payments of previous years in respect of ZGS is as detailed

below.

Rs. In Lakhs

# Year Receipts

%

Change

Y to Y

Library

Cess

%

Change

Y to Y

Payments

%

Change

Y to Y

1 2005-06 9989.88 3218.56 12340.49

2 2006-07 8129.48 -19 4955.36 54 5337.70 -57

3 2007-08 7210.89 -11 2027.45 -59 6175.84 16

4 2008-09 5951.34 -17 1905.80 -6 6468.83 5

Total 31281.59 12107.17 30322.86

ZGS PAYMENTS 2008-09

10%

42%

19%

3%

1%

7%

10%

0%

8%

1 COST OF

BOOKS & PDLS-10%

2 SALARIES-42%

3 PENSIONS-19%

4 EXPENDITURE

FROM

CONTINGENT 3%

5 TA & LTC-1%

6 OTHER ADMN.

EXPENDITURE-7%

7 COST OF

BUILDINGS-10%

8 INVESTMENTS-0%

9 OTHERS-8%

384

The receipts are falling very steeply as much as by -19%, -11% and -17%. The

trend of receipt is negative and erratic. It may be stated in this regard that there is

general tendency in increase of House Tax in Gram Panchayats and Property Tax in

ULBs either due to new assessments or rectification of un-assessed and under

assessed. Against this back drop the receipt of library cess is falling significantly and

the trend is negative. This is against the general tendency of increase in receipts.

There is pertinent need to go for in depth study and take remedial measures to revert

the negative trend and make it in commensurate with the HT and PT.

As against negative trend of receipts and library cess the expenditure is

increased. As a result, there is no financial prudence and discipline.

3.6 The expenditure against grants is exceeding the grant amount many times as

detailed below.

Sl.

No.

Name of the

Grant

Amount of Grant

received in lakhs

Expenditure

against the grant

in lakhs

Excess

utilization

1 Pension 385.44 1194.77 809.33

2 Contingent 29.19 182.28 153.09 414.63 1377.05 962.42

STATUS OF AUDIT

4.1 The audit of all the Zilla Grandhalaya Samsthas / City Grandhalaya Samsthas

up to the year 2008-09 was conducted in the year.


59.51 Crores and expenditure of Rs. 64.68 Crores as detailed in the

Statements No. 2 (1) to 2 (3) with Zilla Grandhalaya Samstha wise break up.

AUDIT OBJECTIONS

5.1 During the course of audit of these Zilla Grandhalaya Samsthas for the year

2008-09 various defects noticed were already pointed out in the relevant Audit

Reports which were forwarded to the Secretaries concerned for further action

at their end as per the procedure laid down under the A.P. State Audit Act.


involved with Zilla Grandhalaya Samstha wise break-up is annexed vide

Statement No.3

STATEMENT%20No.%203%20%20(2008-09).xls

STATEMENT%20No.%203%20%20(2008-09).xls

385


The various audit objections are classified into 19 categories as detailed

below.


2. Excess Utilisation of Grants / Funds

3. Diversion of Grants/Funds

4. Non-utilization of Grants before lapsable date

5. Mis-utilisation of funds

6. Nin-utilisation of Earmarked funds





Contingent Bills

11. Non-production of records


13. Excess Payments




17. Surcharge certificates-Recovery pending

18. Others

19. D.D/Cheques received but not realized within time



[Statements from 3 (1) to 3 (3)



STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED

(CATEGORY WISE)

AND AMOUNT INVOLVED FOR THE YEAR 2008-09.

(Rs in Lakhs)

Sl. No.

NAME OF THE

CATEGORY

No of

objections % Amount %

1

Excess Utilization of

Grants / Funds 13 5 318.58 20

2

Non-utilization of

Grants before the

lapsable date 1 0 7.34 0


STATEMENT%20No.%203%20%20(2008-09).xls

386

4

Advances Pending

Adjustment 12 5 12.83 1


6

Non remittance of

deductions 8 3 2.64 0

7

Non Production of

Records 65 26 446.93 27

8

Mis-appropriation of

Funds/Grants 1 0 0.02 0


10

Pendency of

Utilization Certificates 7 3 290.71 18

11 Others 23 9 64.8 4

Total: 249 100 1631.9 100

The Dominant Category of Objections in ZGS is Non production of Records

which constituted 27% followed by Non- Collection of Dues at 21% in terms of

value. Where as Excess Utilisation of Grants/Funds and Pendency in submission

of Utilisation Certificates which constitute 20 % and 18% respectively.

The administrative expenditure in proportion with total expenditure of ZGS is

analyzed. As seen form the table, it can be observed that, the expenditure on

administrative contingencies is vastly varying from one district to the another district

from 1 % in Adilabad and West Godavari districts , 22% in Nalgonda district. The

range of variation is too high to rely. Obviously there must have been mis-

classification among these districts otherwise such variation is un-acceptable. An in-

depth study is required as to why there is such a large variation among the districts

and the Director of Public Libraries is requested to standardize the practice to get

uniform practices throughout state.

STATEMENT SHOWING THE COMPARISON BETWEEN OTHER

ADMNISTRATIVE EXPENDITURE WITH TOTAL EXPENDITURE

S.No. Name of the District

OTHER ADMN.

EXPENDITURE

TOTAL

EXPENDITURE % of total

1 Adilabad 2.03 187.34 1.08

2 Ananthapur 23.82 230.56 10.33

3 Chittoor 20.18 384.78 5.00

4 East Godavari 33.23 391.72 8.48

387

5 Guntur 7.99 344.21 2.32

6 Kadapa 8.42 218.57 3.85

7 Karimnagar 0.00 237.63 0.00

8 Khammam 23.10 224.56 10.29

9 Krishna 0.00 448.96 0.00

10 Kurnool 0.00 210.38 0.00

11 Mahaboobnagar 40.00 246.51 16.23

12 Medak 17.31 151.68 11.41

13 Nalgonda 44.61 202.09 22.07

14 Nellore 15.36 296.80 5.18

15 Nizamabad 0.00 0.00

16 Prakasam 15.95 266.88 5.98

17 Ranga Reddy 74.34 1277.43 5.82

18 Srikakulam 15.81 173.21 9.13

19 Visakhapatnam 5.76 337.00 1.71

20 Vizianagaram 0.00 127.56 0.00

21 Warangal 35.25 196.63 17.93

22 West Godavari 1.74 314.33 0.55

TOTAL: 384.90 6084.05

As seen form the table, it can be observed that, the expenditure on daily

newspapers is vastly varying from one district to another district from 1 % in Krishna

district, 27% in Nalgonda district. The range of variation is too high to rely. An in-

depth study is required as to why there is such a large variation among the districts

and the Director of Public Libraries is requested to standardize the practice to get

uniform practices throughout state.

Sl.

No. Name of the District

SALE OF OLD

NEWS PAPERS

COST OF BOOKS

& PDLS

% of

realisation

1 Adilabad 0.05 6.18 1.00

2 Ananthapur 0.92 11.80 8.00

3 Chittoor 0.74 44.03 2.00

4 East Godavari 1.85 13.23 14.00

5 Guntur 2.13 16.05 13.00

6 Kadapa 1.01 24.96 4.00

7 Karimnagar 0.20 61.80 0.00

388

8 Khammam 0.42 44.09 1.00

9 Krishna 2.65 17.26 15.00

10 Kurnool 0.62 13.78 4.00

11 Mahaboobnagar 0.58 8.90 7.00

12 Medak 0.72 5.36 13.00

13 Nalgonda 2.10 7.73 27.00

14 Nellore 0.46 53.91 1.00


16 Prakasam 0.91 24.30 4.00

17 Ranga Reddy 1.72 135.12 1.00

18 Srikakulam 0.07 27.19 0.00

19 Visakhapatnam 0.00 43.31 0.00

20 Vizianagaram 0.00 10.44 0.00

21 Warangal 0.00 8.70 0.00

22 West Godavari 0.03 15.33 0.00

TOTAL: 17.18 593.47

As seen form the table, it can be observed that, the receipt on library cess to the

total receipts is vastly varying from one district to the another district from 20 % in

Nellore district, 50% in Warangal district. The state average being 32 %. The standard

deviation is very much is skewed to rely on the data. The range of variation is too

high to rely. Obviously, there must have been mis-classification among these districts.

Otherwise, such variation is un-acceptable. An in- depth study is required as to why

there is such a large variation among the districts and the Director of Public Libraries

is requested to standardize the practice to get uniform practices throughout state.

389

(amount in Lakhs)

Sl.No. Name of the District LIBRARY

CESS TOTAL

% of library cess to total receipts

1 Adilabad 41.82 187.3 22

2 Ananthapur 65.49 191.9 34

3 Chittoor 150.99 373.8 40

4 East Godavari 153.31 389.15 39

5 Guntur 100.58 339.81 30

6 Kadapa 63.47 206.8 31

7 Karimnagar 72.17 228.89 32

8 Khammam 70.65 215.89 33

9 Krishna 99.55 375.61 27

10 Kurnool 41.87 86.48 48

11 Mahaboobnagar 49.62 225.92 22

12 Medak 42.45 189.86 22

13 Nalgonda 73.51 260.32 28

14 Nellore 56.4 283.81 20

15 Nizamabad 0 0 0

16 Prakasam 66.47 172.38 39

17 Ranga Reddy 365.86 1110.44 33

18 Srikakulam 33.97 165.21 21

19 Visakhapatnam 150.72 350.48 43

20 Vizianagaram 27.37 126.55 22

21 Warangal 132.64 266.7 50

22 West Godavari 46.89 204.04 23

TOTAL: 1905.80 5951.34 32

390

AUDIT PARAS

1. EXCESS UTILISATION OF GRANTS (Code – 2)

During the course of audit of Zilla Grandhalaya Samsthas in the state for the

year 2008-09, it is noticed that excess expenditure is incurred than the Budget

provision. Such expenditure needs to be regulated. It was noticed during the audit

that the executive authorities of Zilla Grandhalaya Samsthas were incurring

expenditure in excess of the grant received from the Government either in

anticipation of the release of further grant or withdrawing the excess amount from the

General Funds of the institution.

A consolidated Statement No. 3 (3) 1 of Excess Utilisation of Grants/ Funds is

appended to the report. It could be seen that an amount of Rs. 412 Lakhs was pointed

out in 14 paras

1.1 Zilla Grandhalaya Samsthas- EXCESS EXPENDITURE INCURRED – ABOVE

THE GRANT RELEASED - NEEDS REIMBURSEMENT - Rs. 22013790

On verification of records maintained by the Zilla Grandhalaya Samstha, it is noticed

that expenditure was incurred as detailed below over and above the actual grant released for

the year 2008-09, which is held under objection and needs reimbursement from the higher

authorities.

The details of Excess Uitilisation of Grants are shown below.

Sl

No

Name

of the

ZGS

Head of

item

Grant

Released/

Budget

provided

(Amount

in Rs.)

Expendit

ure

(Amoun

t in Rs.)

Excess

(Amount

in Rs.)

Action to be taken Para

No.

1

Kakinada

Remunera

tion to

part

time

librarians

900000 1143641 243641

The ratification

orders for the

amount incurred in

excess over budget

would need to be

produced to audit.

2

Telephone 30000 39505 9505

Total 930000 1183146 253146

STATEMENT%20No.%203%20%20(2008-09).xls

391

2. NON-UTILISATION OF GRANTS BEFORE LAPSABLE

DATE (Code – 4)

Government releases special grants to the Zilla Grandhalaya Samsthas for

implementing specific schemes. These grants are to be utilized for the purposes

for which they are meant for following the guidelines issued / norms prescribed

and such utilization should be within the date prescribed, otherwise, the grants

will lapse to government, unless the lapsable date of any particular grant is

extended by government or grant releasing authority. The grant sanctioning

authorities were not approached for extending the utilization period. Thus the

schemes for which the grants released were not implemented effectively and

totally. The unspent balances were also not refunded to the grant releasing

authorities.

A consolidated Statement No. 3 (3) 1 of Non-Utilisation of Grants before

lapsable date is appended to the report. It could be seen that an amount of Rs.

7.34Lakhs was pointed out in 1 para.

2.1 VISAKHAPATNAM ZILLA GRANDHALAYA SAMSTHA - GRANTS -

UN-UTILISED - NEEDS ACTION FOR UTILISATION - Rs. 734422 /-

During the course of audit on the accounts of Zilla Grandhalaya Samstha,

Visakhapatnam for 2008-09, it is observed that the following grants have not been

utilized and left unspent at the close of the year.

Immediate action would need to be taken to utilize the amounts for the

purpose for which it was granted and utilization particulars be intimated to audit.

Name of

the grant

O.B 2008-09

received

grant

Total Utilisa

tion

Balance as

on

31-3-2009

CERU 241878 183500 425378 337696 87682

SCP 427586 105960

35000 568546 446748 121798

TSP 859899 212000

75000

114689

9 824826

322073

11th

Finance

Commn.

2386000 - - 151356 87244

SCP grant

(books on

demand) - 52500 - - 52500

TSP Grant (

Books on

Demand ) - 63125 - - 63125

734422

(Para no. 2 of ZGS Visakhapatnam for the year 2008-09)

STATEMENT%20No.%203%20%20(2008-09).xls

392

3. NON-COLLECTION OF DUES (Code no. 7)

On verification of revenue collections in Zilla Grandhalaya Samsthas, huge

amounts have been noticed to be pending realization from Municipal Councils,

Municipal Corporations and Gram Panchayats for long periods and allowed to

become barred by limitation of time. No appropriate action seems to have been

initiated by the executive authorities before the dues become barred by limitation of

time, in spite of various statutory provisions for their recovery.

A consolidated Statement No. 3 (3) 1 of Non collection of dues is appended to

the report. It could be seen that an amount of Rs. 347.32 Lakhs was pointed out in 5

paras.

3.1 EAST GODAVARI ZILLA GRANDHALAYA SAMSTHA

As seen from the library cess collection register, it is noticed that huge amounts

are pending realization as detailed hereunder from the Municipal Corporations,

Municipal Councils and Gram Panchayats. No correspondence has been made to

collect the amount from them. Effective action would need to be taken to collect the

balance due from the Institutions.

Sl. No. Name of the Municipal Corporation/Council Due

Rs.

1 Rajahmundry Municipal Corporation 7800362

2 Kakinada 5233500

3 Amalapuram Municipality 1099000

4 Ramachandrapuram Municipality 440000

5 Samalkota Municipality 851000

6 Peddapuram Municipality 539530

7 Tuni Municipality 38158

8 Mandapeta Municipality 726000

9 Pithapuram Municipality 303000

10 Gram Panchayats 18448605

TOTAL 35479155

(Para no. 5 of ZGS Kakinada for the year 2008-09)

4. ADVANCES PENDING ADJUSTMENT (Code -8)



adjusted through detailed bills and vouchers as soon as possible. As per Article 99 of

the A.P. Financial Code, Non-settlement of advances leads to misuse of advances and


advances in the relevant audit reports pointing out failure of the executive authorities

to take necessary action to get these advances adjusted.

STATEMENT%20No.%203%20%20(2008-09).xls

393

A consolidated Statement No. 3 (3) 1 of Advances Pending Adjustment is

appended to the report. It could be seen that an amount of Rs. 12.80 Lakhs was

pointed out in 12 paras.

5. VIOLATION OF RULES(Code No. 9)

It was noticed in audit of the Zilla Grandhalaya Samsthas that in some cases

the Rules and Government instructions for incurring the expenditure from the funds of

the Zilla Grandhalaya Samsthas were violated either due to negligence or ignorance.

Certain times, the funds of the Zilla Grandhalaya Samsthas were utilised for purposes

other than the permitted ones under the Act / Rules. It was also noticed that in a few

cases Government instructions were misunderstood or misinterpreted. Such irregular

expenditure incurred was objected in the relevant audit reports.

A consolidated Statement No. 3 (3) 2 of Violation of Rules is appended

to the report. It could be seen that an amount of Rs. 135.2 Lakhs was pointed out in

76 paras.

5.1 Khammam Zilla Grandhalaya Samstha

During the audit it is noticed that, the executive authority of Z.G.S.,

Khammam has made some purchases towards the below mentioned items during the

year 2008-09. In such purchases, the executive authority has paid the VAT charges

directly to the firm.

As per the guidelines, if any work (or) purchases is undertaken by the

executive authority of such institution, deductions, if any from the work bills or bills

of such work or purchases and the same should be paid to the concerned department

through Challan or demand Draft from the funds from which it has been deducted.

But, in this case, the executive authority has not followed these instructions. Even the

paid statements to the government by the firm such as D.Ds or if any are also not

produced before the audit. In absence of the above, it could not be ascertained

whether the amount was remitted to the government originally or not.

Therefore, action should be taken to get adjusted the amount from the above

said firm or even to observe whether the amount which is paid directly to the firm has

been remitted to the head of account concerned by the firm or not under intimation to

audit.

PARTICULARS

Sl.

No. Purchased Item Total amount VAT Amount Amount paid to

1 Furniture & fittings 1125211 125211

2 Generators 168750 18750 HACA, Hyderabad

3 Air conditioners 450000 50000

4 Computers& others 1051916 51916

245877

(Para no. 10 of ZGS Khammam for the year 2008-09)

STATEMENT%20No.%203%20%20(2008-09).xls

STATEMENT%20No.%203%20%20(2008-09).xls

394


FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS

(Code No. 10)

It was noticed during audit that various deductions / recoveries effected from the

work bills / pay bills were either not remitted to Government or a part of them only

were remitted in spite of statutory obligation to remit the same to Government


include penalty as well as prosecution for non adherence. The deductions normally

made from work bills / pay bills that are to be remitted to Government account are

Work Bills

1. Income Tax

2. VAT

Pay Bills

1. Profession Tax

2. G.I.S Premium


4. Sainik Welfare Fund

A consolidated Statement No. 3 (3) 2 of Non Remittance Deductions/

Recoveries from vouchers pay bills/ contingent bills is appended to the report. It could

be seen that an amount of Rs. 2.64 Lakhs was pointed out in 8 paras.

7. NON-PRODUCTION OF RECORDS (Code No. 11)

7. NON-PRODUCTION OF RECORDS MEASUREMENT BOOKS/

VOUCHERS/ OTHER CONNECTED RECORDS Rs. 3375000

The Zilla Grandhalaya Samsthas have to maintain effective financial

management skills and accountability practices.

A consolidated Statement No. 3 (3) 2 of Non Production of Records is

appended to the report. It could be seen that an amount of Rs. 446.93 Lakhs was

pointed out in 65 paras.

8. Mis-appropriation of Funds/Grants (Code No.-12)

Cases of Mis-appropriation of money noticed in audit were pointed in the

audit report concerned.

STATEMENT%20No.%203%20%20(2008-09).xls

STATEMENT%20No.%203%20%20(2008-09).xls

395

A consolidated statement of Misappropriations noticed in audit is annexed

wide statement no. 3(3).

8.1. CITY GRANDHALAYA SAMSTHA HYDERABAD - OTHER THAN CGS

TELEPHONE BILLS EXPENDITURE MET FROM CGS FUND -

INADMISSIBLE - NEEDS RECOVERY FOR RS.2413-00

During the year an amount of Rs.2413-00 was drawn and paid towards

Telephone charges. On verification, it is noticed that, the Telephone numbers

mentioned on voucher do not belong to City Grandhalaya Samstha (CGS),

Hyderabad. When the telephone and mobile are not pertaining to CGS, how the

claim was preferred and admitted from CGS funds is not known. Therefore, the

expenditure is treated as unauthorized and inadmissible. The same may be

recovered from the person or persons responsible and made good to CGS funds.

Voucher No/Date Purpose Amount Cheque No./Date

579/02.09 Tata Mobile

9848023485

1088-00 683953/12.12.09

600/02.09 Tata Mobile

637719848

1325-00 683974/25-2-09

(Para no. 2 of CGS Hyderabad for the year 2008-09)

09. EXCESS PAYMENTS (Code 13)

It was observed that in several cases excess payments were made due

to incorrect calculation, excess totaling in bills, admission of inadmissible claims,

Lack of knowledge of Government Instructions.

A consolidated Statement No. 3 (3) 2 of Excess Payments is appended

to the report. It could be seen that an amount of Rs. 5.50 Lakhs was pointed out in 38

paras. A few cases of excess Payments are mentioned below.

STATEMENT%20No.%203%20%20(2008-09).xls

396

9.1 Vizianagaram Zilla Grandhalaya Samstha- Remittances of excess amounts of G.P.F, L.I.C and others Rs.40,345

As seen form the cash book, it is noticed that during the period of April-2008 to March-

2009 payments were made to different heads of accounts over and above the actual

recovery. The excess payment made to the Head of account concerned over and above

the recovered amount would need to be recovered from the person responsible and

remitted to Zilla Grandhalaya Samstha funds, under intimation to audit.

(Para no. 3 of ZGS Vizayanagaram for the year 2008-09)

9.2 Establishment - Branch Library - Parvathipuram Sri D.Suresh Kumar,

Attender - Subsistence allowance - full DA paid instead of proportionate to

the pay - consequential excess payment Rs.7,260/-.

On verification of vouchers with reference to the pay bill register of the branch

library, for the year 2008-09, it is noticed that an amount of Rs.7,260/- was drawn in

excess than admissible and paid to Sri D.Sureshkumar, attender towards subsistence

allowance for the period that he was under suspension from 18/2/08 to 23/11/08 as

detailed under. Along with subsistence allowance full DA was paid instead of DA

proportionate to the pay as per FR 53(i)(ii)(a) Hence the DA drawn in full is

irregular and excess payment made in consequence of the above erroneous

calculation need to be recovered from the individual or from the person responsible

for the payment.

Sl

No Head of Account

Amount

recovered (Rs.)

Amount

remitted

(Rs)

Excess Remitted

(Rs)

1 G.P.F. 494432 530746 36314

2 L.I.C. 233812 235811 1999

3 Syndicate Bank

recoveries

437230 439163 1933

TOTAL 1165474 1205720 40246

397

Month Pay

18/2/08 to 28/2/08 858

3/08 2185

4/08 2185

5/08 2185

6/08 2185

7/08 2185

8/08 1260

(18 days)

19/8/08 to 31/8/08 916

9/08 2185

10/08 2185

Vr 474

1/1/09 (1/11/08 to 23-11-08) 1675

DA Drawn

@

30.796%

605

1564

1564

1564

1564

1564

900

655

1564

1564

13108

1420

DA admissible Excess

307 298

782 782

782 782

782 782

782 782

782 782

450 450

327 328

782 782

782 782

6558 6550

710 710

7260


9.3 .EARNED LEAVE-ENCASHMENT OF EARNED LEAVE-EXCESS

EARNED LEAVE ENCASHED-NEEDS RECOVERY - Rs 3357

During the course of audit, it is noticed that the Encashment of Earned Leave

for 278 days was sanctioned to Sri R.CH.Veerabhadra Swamy, who retired on

superannuation on 30-06-08 Vide prg.No.12/A/2008, Dt.17-07-2008 of the Secretary,

Zilla Grandhalaya Samstha, Viziangaram. The excess credited 8 days as on 01-10-

2005 vide G.O.Ms.No.232 Finance (FRI) Dt.16-09-2005 over the advance credit

already given on 01-07-05 was not deducted from the earned leave account of the

individual. The objection was also communicated vide para No.18 of Zilla

Grandhalaya Samstha audit report for the year 2007-2008.

Hence, the excess of 8 days of Encashment Earned leave as worked below

needs to be recovered from the individual and remit the same to ZGS funds.

398

Pay :: 8600-00, P.P::50; D.A;;3078; HRA::860; TOTAL::Rs.12,588

Encashment earned leave Paid for 278 days Rs.12588/30 x 278=Rs.1,16,649

(Vr No.219/2-8-08)

Encashment earned leave eligible for 270 days Rs.12588/30 x 270=Rs.1,13,292

Encashment earned leave excess Paid for 8 days Rs.12588/30 x 8=Rs.357

OR

Rs.1,16,692-

Rs.1,13,292=Rs.3,357


9.4 Nellore Zilla Grandhalaya Samastha - PAYMENT OF

DEARNESS RELIFE TO FAMILY PENSIONERS WHO AVAILED THE

BENEFIT OF COMPASSIONATE APPOINTMENT IRREGULAR - NEEDS

RECOVERY Rs. 19,876

In continuation of para No. 6 of the A.R. 2007-08 ,the DR paid on

pension to those who availed compassionate appointment for the period from

03/08 to 08/08 as detailed below is to be recovered from the person/persons

responsible.

Sl.No Particulars Periods/Months D.R.

Paid

Total

1 S.Nageswaramma

Attender

B.L.Mulapeta

3/08

4/08 to 8/08 @ 716/-

603

3580

4183

2 L.Prabahakar

Attender B.L.Buch

3/08

4/08 to 8/08 @1620/-

1365

8100

9465

3 Ch. Sujatha Attender

B.L. gudur

3/08

4/08 to 8/08 @ 1066/-

898

5330

6228

19876

Action would need to be taken to recover the amount of Rs.19,876

along with, arrears (paid earlier) from the person/persons responsible under


(Para no. 30 of ZGS Nellore for the year 2008-09)

399

10. PENDENCY OF UTILIZATION CERTIFICATES (Code No. 16)

According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I,

read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, It is the responsibility of

the Grant receiving authority to send the utilization certificates in the proforma prescribed duly certified by the District Audit Officer, State Audit Department. But


transmission to the grant releasing authorities concerned. In G.O.Ms. No. 507 Fin

(TFR) Dept, dt. 10-4-2002, the Government have among others prescribed the pre-condition under para 12 of G.O. for further drawal of Funds from April, 2002

onwards by the local bodies / Public Sector enterprises, Autonomous bodies and other

Grant-in-Aid institution. “Utilization Certificates certified by the Statutory Auditor,

that the funds previously released have been fully and properly used for the purpose for which they have been sanctioned.” But the aforesaid Government orders are not

being observed by Executive Authorities which resulted in heavy pendency of

utilization certificates to be furnished to the grant releasing authorities.

Consolidated statement of cases of Pendency of U.Cs in Statement 3 (3) 3 is appended to the report from which it can be noticed that 7 paras involving Rs.290.71

lakhs were reported. Such cases are reported in the Audit Reports of Zilla

Grandhalaya Samsthas is shown in the statement appended.

10.1Nizamabad Zilla Grandhalaya Samstha - Pendency of Utilisation

Certificate :

Non-Submission of Utilisation Certificates towards construction of Branch Library

Buildings : According to Article 211(a) of APFC Vol.I, it is the responsibility of the grant

receiving authority to send the Utilisation Certificates in the proforma prescribed duly

getting the certificate by the District Audit Officer, State Audit, Nizamabad.

On Verification of the grants received register, it is noticed that the following

grants were released from the Zilla Grandhalaya Samstha, Nizamabad to the different

Executive Engineers towards the construction of Branch Library buildings during the

subsequent year. But the following No. of Utilisation Certificates were not furnished

to audit.

Sl.

No

.

Purpose of grant Grant released through procgs.

No. and adjustment no.

U/C to be

submitted Subm

itted

Balance to be

submitted

No. of

U.C-s Amount

No. of

U.C-s Amount

1 2 3 4 5 6 7 8

1 Advance Salary

Grant

19-C2/2008 Dt.18-4-08,12-6-

08,16-5-08,12-6-08,29-10-

08,29-10-08, 17-6-08, 01-01-

09, 03-02-09

1 1383600

0

- 1 13539000

2 SCP Grant 36-C3/2007, dt.18-12-2008 1 17500 - 1 17500

3 Remuneration to

Outsourcing

122-C3/2008, dt.30-12-2008 1 523998 - 1 523998

4 CERU Grant 54-C3/2008, dt.03-07-08, 93-

C3/2007, dt.26-05-2008, 26-

05-2008, 26-05-2006

1 258500 - 1 258500

5 E-Grandhalaya 36-C3/2007, dt.18-12-2008 1 27500 - 1 27500

6 SCP On

Demand

36-C3/2007, dt.18-12-2008 1 52500 - 1 52500

Total 1471599

8

14715998

(Para no. 16 of ZGS Nizamabad for the year 2008-09)

STATEMENT%20No.%203%20%20(2008-09).xls

400

10.2 Prakasham Zilla Grandhalaya Samstha - Grant released by the Zilla

Grandhalaya Samstha to the various executive agencies towards construction of

Library buildings – Completion certificates not obtained

During the year 2008-09 an amount of Rs. 33,00,000 has been paid to various

executive agencies towards constructing Library buildings as shown below, However

connected completion certificates were not obtained from these agencies and

produced to Audit.

Vr. NO. & Month Name of the executive Agency Amount

paid

737 dt 2.1.09 E.E.PR Markapur. 2,50,000

844 dt 12.2.09 --do-- 5,00,000

738 dt 2.1.09 E.E.PR Parchur. 2,00,000

843 dt 12.2.09 --do-- 6,00,000

845 dt 12.2.09 E.E.PR Ongole. 17,50,000

Total: 33,00,000

(Para no. 15 of ZGS Ongole for the year 2008-09)

10.2 VIZIANAGARAM ZILLA GRANDHALAYA SAMSTHA -

UTILISATION CERTIFICATE – NOT FURNISHED - NEEDS ACTION:

Though it is the responsibility of the grants receiving authority to send the

utilization certificates in the prescribed proforma as intimated in Article 211(a)(2)

of Andhra Pradesh Financial Code Vol.I, no action was taken to prepare and

furnished the utilization certificates.

Sl. No. Grant Amount Received

1 Salary Grant 68,25,000

2 Pension Grant 1,59,000

3 S.C.P.Grant 1,84,000

4 T.S.P.Grant 1,19,125

5 C.E.R.U.Grant 1,83,500

6 -e- Grandhalaya Software 8,50,000


401

11. OTHERS (Code No 18)

Other objections which were not fallen in the above categories are

incorporated under this category. Such objections numbering 23 were raised for an

amount of Rs.64.82 as detailed in Statement

A consolidated Statement No. 3 (3) of Others is appended to the report.

It could be seen that an amount of Rs. 64.82 Lakhs was pointed out in 23 paras.

DATE 20-12-2011

HYDERABAD DIRECTOR,

STATE AUDIT,

A.P., HYDERABAD.

STATEMENT%20No.%203%20%20(2008-09).xls

402

403

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF

ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2008-09

Sl.No. NAME OF THE

DISTRICT

DEMAND AS

ON 31-3-2008

AUDIT

COMPLETED AS

ON 31-03-2009

BALANCE AS ON

31-03-2009

CURRENT CURRENT CURRENT

1 Adilabad 1 1 0

2 Ananthapur 1 1 0

3 Chittoor 1 1 0

4 East Godavari 1 1 0

5 Guntur 1 1 0

6 Kadapa 1 1 0

7 Karimnagar 1 1 0

8 Khammam 1 1 0

9 Krishna 1 1 0

10 Kurnool 1 1 0

11 Mahaboobnagar 1 1 0

12 Medak 1 1 0

13 Nalgonda 1 1 0

14 Nellore 1 1 0

15 Nizamabad 1 1 0

16 Prakasam 1 1 0

17 Ranga Reddy 2 2 0

18 Srikakulam 1 1 0

19 Visakhapatnam 1 1 0

20 Vizianagaram 1 1 0

21 Warangal 1 1 0

22 West Godavari 1 1 0

TOTAL: 23 23 0

404

STATEMENT No. 2 (1)

STATEMENT OF CONSOLIDATED RECEIPTS AND

EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS


Rs. In lakhs

SL

No.

NAME OF THE


1 Adilabad 187.30 187.34

2 Ananthapur 191.91 230.60

3 Chittoor 373.80 384.78

4 East Godavari 389.15 391.72

5 Guntur 339.81 344.21

6 Kadapa 206.80 218.57

7 Karimnagar 228.89 237.63

8 Khammam 215.89 224.56

9 Krishna 375.61 448.96

10 Kurnool 86.48 210.38


12 Medak 189.86 151.68

13 Nalgonda 260.32 202.09

14 Nellore 283.81 296.80


16 Prakasam 172.38 266.88

17 Ranga Reddy 1110.44 1277.43

18 Srikakulam 165.21 173.21



21 Warangal 266.70 196.63


TOTAL: 5951.35 6468.87

405

STATEMNET 2 (2)

Sl.

No.

NAME OF THE

DISTRICT

LIBRAR

Y CESS

SALARY

GRANT

PEN

SIO

N

GRA

NT

CONTI

NGEN

T

GRAN

T

SALE OF

OLD

NEWS

PAPERS

MEM

BERS

HIP

DEPO

SITS

SECURIT

Y

DEPOSIT

S

OTHE

R

DEPO

SITS

OTHE

R

RECE

IPTS

ADVAN

CES

RECOV

ERABLE

1 Adilabad 41.82 81.19 35.33 0.00 0.05 0.27 0.00 0.19 25.70 2.75

2 Ananthapur 65.49 102.06 3.42 0.00 0.92 0.66 0.00 0.00 19.35 0.00

3 Chittoor 150.99 148.71 3.57 0.00 0.74 0.89 0.00 37.55 30.66 0.69

4 East Godavari 153.31 148.20 51.02 0.00 1.85 1.36 0.11 0.00 31.84 1.46

5 Guntur 100.58 134.32 78.04 0.00 2.13 1.26 3.83 0.12 19.53 0.00

6 Kadapa 63.47 95.82 3.28 0.00 1.01 0.51 0.00 11.34 31.19 0.18

7 Karimnagar 72.17 129.54 2.10 4.46 0.20 0.80 0.00 0.00 18.69 0.93

8 Khammam 70.65 116.75 0.00 0.00 0.42 0.73 0.00 2.50 22.76 2.08

9 Krishna 99.55 211.05 10.60 0.00 2.65 1.40 0.00 4.60 45.76 0.00

10 Kurnool 41.87 1.50 0.00 13.92 0.62 0.50 0.00 0.00 1.15 26.92

11 Mahaboobnagar 49.62 122.74 0.00 0.27 0.58 0.45 0.00 0.00 38.38 13.88

12 Medak 42.45 83.20 33.88 10.00 0.72 0.56 0.05 17.25 0.21 1.54

13 Nalgonda 73.51 118.60 11.74 0.00 2.10 0.00 0.00 0.92 52.37 1.08

14 Nellore 56.40 183.92 3.05 0.00 0.46 0.43 0.00 18.29 21.26 0.00

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 66.47 94.72 2.13 0.00 0.91 0.70 0.00 0.82 5.99 0.64

17 Ranga Reddy 365.86 374.98 124.60 0.00 1.72 2.75 0.00 73.78 158.87 7.88

18 Srikakulam 33.97 77.52 1.92 0.00 0.07 0.53 0.00 16.38 34.63 0.19

19 Visakhapatnam 150.72 141.08 0.00 0.00 0.00 0.79 0.18 0.00 56.06 1.65

20 Vizianagaram 27.37 68.25 1.59 0.00 0.00 0.26 0.00 13.55 15.53 0.00

21 Warangal 132.64 98.76 15.00 0.00 0.00 0.00 0.00 0.00 20.00 0.30

22 West Godavari 46.89 132.51 4.17 0.54 0.03 1.40 0.00 0.00 17.17 1.33

TOTAL: 1905.80 2665.42 385.44 29.19 17.18 16.25 4.17 197.29 667.10 63.50

406

STATEMENT No. 2 (3)

STATEMENT 2(3) OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2008-09

(PAYMENT HEADS)

Rs. In lakhs

Sl.

No.

NAME OF THE

DISTRICT

COST OF

BOOKS &

PDLS

SALARIES PENSIONS

EXPENDITU

RE FROM

CONTINGEN

T

TA &

LTC

MEMBER

-SHIP

DEPOSIT

S

SECURITY

DEPOSITS

REFUNDED

OTHER

DEPOSITS

REFUNDED

OTHER

ADMN.

EXPENDIT

URE

ADVANC

ES

RECOVE

RABLE

COST OF

BUILDINGS

INVEST

MENTS OTHERS

1 Adilabad 6.18 97.46 35.33 0.00 3.40 0.02 0.00 0.00 2.03 0.70 1.52 0.00 40.70

2 Ananthapur 11.80 92.64 54.11 0.00 2.74 0.02 0.00 0.00 23.82 0.00 1.93 9.43 34.07

3 Chittoor 44.03 128.55 61.58 45.07 1.02 0.40 0.00 0.00 20.18 0.69 38.00 0.00 45.25

4 East Godavari 13.23 160.12 133.10 12.50 3.56 0.13 0.21 0.00 49.27 2.65 16.70 0.00 0.25

5 Guntur 16.05 186.96 88.14 20.77 3.61 0.09 0.20 0.20 7.99 0.00 18.36 0.00 1.84

6 Kadapa 24.96 92.08 50.66 3.90 2.19 0.04 0.00 9.52 8.42 0.00 25.92 0.00 0.88

7 Karimnagar 61.80 84.45 31.97 3.89 2.12 0.00 0.00 0.05 0.00 0.28 27.30 0.00 25.77

8 Khammam 44.09 105.34 0.00 0.00 1.20 0.04 0.00 1.75 23.10 4.08 28.35 0.00 16.61

9 Krishna 17.26 175.46 100.92 0.00 3.51 0.09 0.00 2.61 0.00 116.46 32.65 0.00 0.00

10 Kurnool 13.78 89.04 58.67 44.29 0.92 0.00 0.00 0.00 0.00 1.47 0.00 0.00 2.21

11 Mahaboobnagar 8.90 116.05 30.27 4.62 1.42 0.00 0.00 22.00 40.00 23.25 0.00 0.00 0.00

12 Medak 5.36 85.94 22.92 10.12 1.68 0.02 0.00 0.00 17.31 0.00 1.33 7.00 0.00

13 Nalgonda 7.73 117.16 27.75 0.36 0.90 0.07 0.00 0.00 44.61 0.96 0.54 0.00 2.01

14 Nellore 53.91 132.86 52.95 0.00 1.31 0.06 0.00 22.05 15.36 0.92 12.91 0.00 4.47

15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

16 Prakasam 24.30 117.67 32.28 1.34 0.86 0.00 0.00 0.05 15.95 33.60 9.31 0.00 31.52

17 Ranga Reddy 135.12 332.72 179.89 2.97 2.29 0.07 0.00 47.22 74.34 7.20 299.80 0.00 195.81

18 Srikakulam 27.19 76.98 27.19 6.84 2.73 0.01 0.00 0.00 15.81 0.40 9.39 0.00 6.67

19 Visakhapatnam 43.31 135.88 84.44 12.49 3.10 0.00 0.00 0.03 5.76 2.70 3.98 0.00 45.30

20 Vizianagaram 10.44 68.56 18.81 10.34 6.26 0.00 0.00 13.15 0.00 0.00 0.00 0.00

21 Warangal 8.70 76.52 27.90 1.52 1.16 0.03 0.00 0.00 35.25 3.81 11.10 0.00 30.64

22 West Godavari 15.33 125.96 75.89 1.26 3.20 0.23 0.00 0.00 1.74 0.94 64.51 0.00 25.27

TOTAL: 593.47 2598.40 1194.77 182.28 49.18 1.33 0.41 118.63 400.94 200.11 603.60 16.43 509.27

407

STATEMENT 3(1) STATEMENT 3(3)1 SHOWING THE DIST AND CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YEAR 2008-09 ( Amount in Lakhs)

Sl.

No.

NAME OF THE

DISTRICT

VARIATION IN

ACCOUNT FIGURES

EXCES UITLISATION

OF GRANTS /FUNDS

DIVERSION OF

GRANTS/FUNDS

NON-UTILISATION

OF GRANTS

BEFORE THE

LAPSEABLE DATE

NON-

COLLECTION

OF DUES

ADVANCES

PENDING

ADJUSTMENT

No. AMOUNT No. AMOUNT No AMOUNT NO AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 6.77

2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

4 CGS, Hyderabad 0 0.00 1 115.47 0 0.00 0 0.00 0 0.00 0 0.00

5 East Godavari 0 0.00 1 2.53 0 0.00 0 0.00 1 314.79 1 2.63

6 Guntur 0 0.00 2 61.39 0 0.00 0 0.00 1 32.05 0 0.00

7 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.20

8 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 1 0.27 0 0.00

9 Khammam 0 0.00 1 0.71 0 0.00 0 0.00 0 0.00 0 0.00

10 Krishna 0 0.00 3 91.16 0 0.00 0 0.00 0 0.00 0 0.00

11 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.25

12 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

13 Medak 0 0.00 1 0.41 0 0.00 0 0.00 0 0.00 0 0.00

14 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

15 Nellore 0 0.00 1 1.17 0 0.00 0 0.00 0 0.00 0 0.00

16 Nizamabad 0 0.00 1 10.80 0 0.00 0 0.00 0 0.00 1 1.45

17 Prakasam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

18 Ranga Reddy 0 0.00 1 33.87 0 0.00 0 0.00 0 0.00 0 0.00

19 Srikakulam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 1.26

20 Visakhapatnam 0 0.00 0 0.00 0 0.00 1 7.34 2 0.21 2 0.17

21 Vizianagaram 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.02

22 Warangal 0 0.00 1 1.07 0 0.00 0 0.00 0 0.00 0 0.00

23 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 0.05

TOTAL 0 0.00 13 318.58 0 0.00 1 7.34 5 347.32 12 12.80

408

STATEMENT 3 (2)

STATEMENT 3(3)2 SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2008-09

( Amount in Lakhs)

Sl. No. NAME OF THE

DISTRICT

VIOLATION OF RULES

NON REMITTENCE

OF DEDUCTIONS/

RECOVERIES

NON PRODUCTION OF

RECORDS

MIS

APPROPRIATION EXCESS PAYMENTS

WASTE FUL

EXPENDITURE

No AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT

1 Adilabad 0 0.00 0 0.00 2 1.50 0 0.00 0 0.00 0 0.00

2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 1 0.01 0 0.00

3 Chittoor 4 1.98 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

4 CGS, Hyderabad 6 86.46 3 0.53 3 120.39 1 0.02 0 0.00 0 0.00

5 East Godavari 2 0.13 0 0.00 7 21.38 0 0.00 2 0.01 0 0.00

6 Guntur 0 0.00 0 0.00 5 12.25 0 0.00 2 0.02 0 0.00

7 Kadapa 0 0.00 0 0.00 3 20.00 0 0.00 1 0.88 0 0.00

8 Karimnagar 0 0.00 1 0.00 0 0.00 0 0.00 1 0.00 0 0.00

9 Khammam 11 16.27 1 0.00 9 0.83 0 0.00 0 0.00 0 0.00

10 Krishna 8 0.58 0 0.00 2 33.65 0 0.00 2 0.08 0 0.00

11 Kurnool 0 0.00 0 0.00 4 0.05 0 0.00 0 0.00 0 0.00

12 Mahaboobnagar 1 8.59 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

13 Medak 0 0.00 0 0.00 0 0.00 0 0.00 1 0.15 0 0.00

14 Nalgonda 2 0.92 0 0.00 2 13.54 0 0.00 0 0.00 0 0.00

15 Nellore 6 0.01 0 0.00 10 9.36 0 0.00 14 3.22 0 0.00

16 Nizamabad 0 0.00 0 0.00 4 4.22 0 0.00 1 0.12 0 0.00

17 Prakasam 7 0.08 0 0.00 0 0.00 0 0.00 2 0.26 0 0.00

18 Ranga Reddy 10 4.01 1 0.01 0 0.00 0 0.00 0 0.00 0 0.00

19 Srikakulam 12 0.70 2 2.10 4 70.00 0 0.00 0 0.00 0 0.00

20 Visakhapatnam 2 0.00 0 0.00 1 52.34 0 0.00 1 0.01 0 0.00

21 Vizianagaram 4 0.97 0 0.00 1 0.32 0 0.00 3 0.50 0 0.00

22 Warangal 1 14.50 0 0.00 1 14.50 0 0.00 3 0.07 0 0.00

23 West Godavari 0 0.00 0 0.00 7 72.60 0 0.00 4 0.18 0 0.00

Total 76 135.20 8 2.64 65 446.93 1 0.02 38 5.50 0 0.00

409

STATEMENT 3 (3)

STATEMENT 3(3)3 SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2008-09

( Amount in Lakhs)

Sl.

No.

NAME OF THE

DISTRICT

INSTANCES OF CASES

UNACCOUNTED FOR

CASH/STORES

PENDENCY OF

UTILISATION

CERTIFICATES

SURCHARGE

CERTIFICATE

RECOVERY PENDING

OTHERS TOTAL

NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT

1 Adilabad 0 0.00 1 1.23 0 0.00 5 36.33 9 45.83

2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 1 0.01

3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 4 1.98

4 CGS, Hyderabad 0 0.00 0 0.00 0 0.00 0 0.00 14 322.87

5 East Godavari 0 0.00 0 0.00 0 0.00 0 0.00 14 341.47

6 Guntur 0 0.00 0 0.00 0 0.00 3 0.14 13 105.85

7 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 5 21.08

8 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 3 0.27

9 Khammam 0 0.00 0 0.00 0 0.00 0 0.00 22 17.81

10 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 15 125.47

11 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 5 0.30

12 Mahaboobnagar 0 0.00 0 0.00 0 0.00 7 0.16 8 8.75

13 Medak 0 0.00 2 4.00 0 0.00 3 0.00 7 4.56

14 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.00 4 14.46

15 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 31 13.76

16 Nizamabad 0 0.00 1 147.15 0 0.00 0 0.00 8 163.74

17 Prakasam 0 0.00 1 33.00 0 0.00 0 0.00 10 33.34

18 Ranga Reddy 0 0.00 0 0.00 0 0.00 0 0.00 12 37.89

19 Srikakulam 0 0.00 1 22.13 0 0.00 0 0.00 21 96.19

20 Visakhapatnam 0 0.00 0 0.00 0 0.00 1 1.66 10 61.73

21 Vizianagaram 0 0.00 1 83.20 0 0.00 0 0.00 10 85.01

22 Warangal 0 0.00 0 0.00 0 0.00 1 26.30 7 56.44

23 West Godavari 0 0.00 0 0.00 0 0.00 3 0.23 16 73.06

Total 0 0.00 7 290.71 0 0.00 23 64.82 249 1631.86

410

STATEMENT No. 4

STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED


Sl. No. NAME OF THE CATEGORY

No of

objections

% Amount %

1

Excess Utilization of Grants /

Funds 13 5 318.58 20

2

Non-utilization of Grants before

the lapsable date 1 0 7.34 0


4 Advances Pending Adjustment 12 5 12.83 1


6 Non remittance of deductions 8 3 2.64 0


8

Mis-appropriation of

Funds/Grants 1 0 0.02 0


10

Pendency of Utilization

Certificates 7 3 290.71 18

11 Others 23 9 64.8 4

Total: 249 100 1631.9 100

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GOVERNMENT OF ANDHRA PRADESH CONSOLIDATED AUDIT … English Audit... · 2012-03-21 · state audit department consolidated audit and review report on the accounts of panchayat raj