11

Annexure ‘X’

2222

ProcurementProcurement• Prescribed level of procurement was not Prescribed level of procurement was not

followed.followed.• Method of Procurement of goods and Method of Procurement of goods and

services was not included in the services was not included in the procurement plan.procurement plan.

• Prescribed method of procurement was not Prescribed method of procurement was not followed and deviations reported in many followed and deviations reported in many cases. Single tender method was adopted cases. Single tender method was adopted instead of open tender method.instead of open tender method.

• Purchase orders were split up to avoid Purchase orders were split up to avoid procurement without tenders/quotations.procurement without tenders/quotations.

Key Findings on Procurement Emerging Key Findings on Procurement Emerging

from IPAI Review Reportsfrom IPAI Review Reports

3333

• Ignorance or disregard of prescribed procurement Ignorance or disregard of prescribed procurement procedures common in purchase of computers procedures common in purchase of computers and accessories including software and in and accessories including software and in printing of textbooks and workbooks.printing of textbooks and workbooks.

• Printing of teacher’s hand book was carried out Printing of teacher’s hand book was carried out without providing technical specification and on without providing technical specification and on single tender basis.single tender basis.

• Purchasing agencies were engaged without Purchasing agencies were engaged without entering into MOU prescribing terms & conditions entering into MOU prescribing terms & conditions like cost, delivery date, inspection, liability of the like cost, delivery date, inspection, liability of the seller during warranty period, liquidated damages seller during warranty period, liquidated damages for delay in delivery, rate of commission, payment for delay in delivery, rate of commission, payment terms etc. terms etc.

Contd./- Contd./-

4444

• Cost of goods purchased through Cost of goods purchased through purchasing agency was in excess of the purchasing agency was in excess of the market rate.market rate.

• Many computer systems are lying idle for Many computer systems are lying idle for want of space or power (including want of space or power (including purchase of defective inverters) or trained purchase of defective inverters) or trained staff staff

• UPS and inverters purchased were found UPS and inverters purchased were found defective in inspection and the firm has defective in inspection and the firm has not replaced the same and liquidated not replaced the same and liquidated damages not paid. damages not paid.

Contd./- Contd./-

5555

• Procured printers for schools without Procured printers for schools without ascertaining its utility. ascertaining its utility.

• Excess purchase of text books, furniture and Excess purchase of text books, furniture and cycles.cycles.

• Computer systems and printers bought out of Computer systems and printers bought out of SSA funds installed in State Government offices.SSA funds installed in State Government offices.

• Computers bought without inviting open tenders Computers bought without inviting open tenders and from suppliers not under DGS & D rate and from suppliers not under DGS & D rate contract, selected by Zilla Parishadcontract, selected by Zilla Parishad

• Purchase of computer books was made from Purchase of computer books was made from Central Consumer Cooperative Store without Central Consumer Cooperative Store without negotiating for discount. negotiating for discount.

Contd./- Contd./-

6666

• Little control over local purchases made at school Little control over local purchases made at school level, including civil work.level, including civil work.

• Quality of materials not ensured and purchased Quality of materials not ensured and purchased substandard materials.substandard materials.

• Large sets of Vernacular Encyclopedia (17 Large sets of Vernacular Encyclopedia (17 volumes in a set) bought with apparently little volumes in a set) bought with apparently little relevance to elementary education.relevance to elementary education.

• Penal provisions in contracts not enforced.Penal provisions in contracts not enforced.• No penal provisions included in the agreement for No penal provisions included in the agreement for

delayed or defective supplies.delayed or defective supplies.• Liquidated damages not levied for delayed Liquidated damages not levied for delayed

supplies.supplies.• Non-recovery of sales tax/VATNon-recovery of sales tax/VAT

Contd./- Contd./-

7777

• VAT paid besides price when contract price was VAT paid besides price when contract price was inclusive of VAT.inclusive of VAT.

• Procurement documents were not available for Procurement documents were not available for review.review.

• Procured goods in excess of the requirement and Procured goods in excess of the requirement and lying in stock.lying in stock.

• Engaged NGOs without following the selection Engaged NGOs without following the selection procedure.procedure.

• Part payment was made for part supply without Part payment was made for part supply without provision in the agreement to avoid lapse of provision in the agreement to avoid lapse of budget provision. budget provision.

• Repeat orders were issued without following the Repeat orders were issued without following the prescribed procedure.prescribed procedure.

Contd./- Contd./-

8888

• Uniform procedure for the purchase of science Uniform procedure for the purchase of science and mathematics kits was not followed.and mathematics kits was not followed.

• Injudicious purchases in the month of March to Injudicious purchases in the month of March to avoid lapse of budget provision.avoid lapse of budget provision.

• Purchase orders were placed without assessing Purchase orders were placed without assessing the actual requirement and the books are lying in the actual requirement and the books are lying in stock for more than 3 years.stock for more than 3 years.

• While submission of samples are mandatory While submission of samples are mandatory alongwith the bids, contract awarded to firm who alongwith the bids, contract awarded to firm who failed to submit samples.failed to submit samples.

• Goods were accepted and payments made Goods were accepted and payments made without inspection and certification.without inspection and certification.

Contd./- Contd./-

9999

• Financial control was not exercised in Financial control was not exercised in procurement.procurement.

• Security deposit was not obtained from the Security deposit was not obtained from the prospective bidders.prospective bidders.

• Substandard school bags were purchased and Substandard school bags were purchased and the expenditure was not entered in the financial the expenditure was not entered in the financial records.records.

• Non-availability of procurement documentsNon-availability of procurement documents

Contd./- Contd./-

10101010

• Procured goods in excess of the Procured goods in excess of the requirement and lying in stockrequirement and lying in stock

• Delay in distribution of text books Delay in distribution of text books • Feasibility of printing of text books Feasibility of printing of text books

through state government press not through state government press not ascertained before inviting tenders from ascertained before inviting tenders from private printersprivate printers

• Delay in construction of civil worksDelay in construction of civil works

Cont’d/-Cont’d/-

11111111

Key Findings Emerging Key Findings Emerging

from TSG Review of SSA, Maharashtrafrom TSG Review of SSA, Maharashtra

State Project OfficeState Project Office

Books of AccountsBooks of Accounts

• Not maintained the following:Not maintained the following:

- Journal- Journal

- Register for Journal/Magazines/News paper- Register for Journal/Magazines/News paper

- Register of grants of advances to mobilizing - Register of grants of advances to mobilizing agencies/NGOs/Voluntary Agenciesagencies/NGOs/Voluntary Agencies

- Register of works- Register of works

- Fixed Assets Register- Fixed Assets Register

• Not carried out annual physical verification of Not carried out annual physical verification of stock and assets.stock and assets.

12121212

Cash BookCash Book

• Maintained under double entry systemMaintained under double entry system

• Not fully complied with the provisions of Para 77 Not fully complied with the provisions of Para 77 of the Manual on FM&P:of the Manual on FM&P:

- Each entry not attested by DDO- Each entry not attested by DDO

- Overwriting not attested by DDO- Overwriting not attested by DDO

- No entry made on the days of no transaction- No entry made on the days of no transaction

- Delay in recording receipt entries- Delay in recording receipt entries

- Interest credited by the bank but not entered in - Interest credited by the bank but not entered in

cash bookcash book

• Non-SSA transactions like MDM Kitchen shed, Non-SSA transactions like MDM Kitchen shed, State incentives are included.State incentives are included.

Cont’d./- Cont’d./-

13131313

• Cheque Issue Register : Cheque Issue Register : - - Some of the entries not attested by the DDO.Some of the entries not attested by the DDO.

• Advance Register:Advance Register:- - Funds released to districts not enteredFunds released to districts not entered- - Advances of Rs.2.74 crore dating back from Advances of Rs.2.74 crore dating back from October 2004 outstanding for adjustment.October 2004 outstanding for adjustment.

• Register of Investment:Register of Investment:- - Last investment was made on 8-4-2005. Last investment was made on 8-4-2005. - - Some entries remain incompleteSome entries remain incomplete

• Register of remittance made into the bank:Register of remittance made into the bank:- - Delay in issue of DD - Cheque for Rs.10.67 lakh Delay in issue of DD - Cheque for Rs.10.67 lakh

was issued to Bank of was issued to Bank of India on 25-9-09 India on 25-9-09 for a for a DD in favour of a DD in favour of a Consultant and the DD was Consultant and the DD was

issued only on 6-issued only on 6- 10-09.10-09.

Contd./- Contd./-

14141414

• Postal AccountPostal Account

- Postal stamps in denominations of Rs.5/- only - Postal stamps in denominations of Rs.5/- only maintainedmaintained

-- In case the transactions are not in multiples In case the transactions are not in multiples of of Rs.5/-, proper accounting is not made.Rs.5/-, proper accounting is not made.

• Bank Reconciliation StatementBank Reconciliation Statement

- Prepared upto September 2009.- Prepared upto September 2009.

- Stale cheques dating back from 31-5-2007 are - Stale cheques dating back from 31-5-2007 are still included.still included.

Contd./- Contd./-

15151515

Internal AuditInternal Audit• Completed up to 2008-09 Completed up to 2008-09 • Engaged 23 CA firms on 1-9-09 for 2009-10Engaged 23 CA firms on 1-9-09 for 2009-10• TOR includes audit of VECs receiving more TOR includes audit of VECs receiving more

than Rs.1 lakh per year in a cycle of 3 yearsthan Rs.1 lakh per year in a cycle of 3 years• Reports being pursued with the districts for Reports being pursued with the districts for

taking follow up actiontaking follow up action• Objections maintained in the computer and not Objections maintained in the computer and not

in the Audit objection registerin the Audit objection register• Not submitted to SPD monthlyNot submitted to SPD monthly• Gist of observations submitted to ECGist of observations submitted to EC

Contd./- Contd./-

16161616

Statutory AuditStatutory Audit• 9 CA firms are engaged for 2008-09 9 CA firms are engaged for 2008-09 • Continuing since 2006-07 and now completed 3 Continuing since 2006-07 and now completed 3

yearsyears• The CA firms are not from C&AG’s empanelled listThe CA firms are not from C&AG’s empanelled list• TOR do not include audit of VECs receiving more TOR do not include audit of VECs receiving more

than Rs. 1 lakh per year in a cycle of 3 years as per than Rs. 1 lakh per year in a cycle of 3 years as per amendment dt 1amendment dt 1stst May 2007. May 2007.

• In the absence of provisions in the TOR, the auditors In the absence of provisions in the TOR, the auditors have not undertaken audit of VECs in 2008-09 audit.have not undertaken audit of VECs in 2008-09 audit.

• This year the last date for submission of audit report This year the last date for submission of audit report was 15-7-09, but nobody submitted it on due date.was 15-7-09, but nobody submitted it on due date.

• Audit reports of all districts except 2 districts in Audit reports of all districts except 2 districts in Pune region submitted to the lead auditor Pune region submitted to the lead auditor

Contd./- Contd./-

17171717

Statutory AuditStatutory Audit• The responsibilities of lead auditor The responsibilities of lead auditor

prescribed in MHRD’s letter dt. 26-4-07 not prescribed in MHRD’s letter dt. 26-4-07 not included in TOR.included in TOR.

• Objections maintained in the computer and Objections maintained in the computer and not in the Audit objection registernot in the Audit objection register

• Not submitted to SPD monthlyNot submitted to SPD monthly

• Gist of observations submitted to ECGist of observations submitted to EC

Contd./- Contd./-

18181818

Diversion of fundsDiversion of funds• A cheque for an advance of Rs.10 lakh was A cheque for an advance of Rs.10 lakh was

issued to Director of Education, Pune for issued to Director of Education, Pune for disbursement of pre-metric scholarhips to disbursement of pre-metric scholarhips to minority students on 24-10-08 and the same minority students on 24-10-08 and the same cheque returned and credited on 18-2-09. .cheque returned and credited on 18-2-09. .

• An advance of Rs.7 lakh was paid to 2 An advance of Rs.7 lakh was paid to 2 advocates to file the petition in connection advocates to file the petition in connection with 11with 11thth class admission in the High Court and class admission in the High Court and the same is still outstanding.the same is still outstanding.

• Rs. 10 lakh and Rs.30 lakh were diverted to Rs. 10 lakh and Rs.30 lakh were diverted to NPEGEL and KGBV accounts respectively on NPEGEL and KGBV accounts respectively on 22-09-0922-09-09

Contd./- Contd./-

19191919

Mis-appropriation of SSA fundsMis-appropriation of SSA funds• Remedial TeachingRemedial Teaching

- - Rs. 34.37 lakh was charged from the cash Rs. 34.37 lakh was charged from the cash book on 31-3-09 towards prize book on 31-3-09 towards prize

distribution to distribution to good schools. good schools. -- During 2008-09 no fund was allocated During 2008-09 no fund was allocated

under remedial teaching.under remedial teaching.- In the management cost Rs. 40 lakh was - In the management cost Rs. 40 lakh was approved to undertake external evaluation approved to undertake external evaluation of of remedial teaching and this was used for remedial teaching and this was used for prize distribution.prize distribution.- Even though the DDs were taken on 31-3-09 - Even though the DDs were taken on 31-3-09

the same are still lying un-disbursed and the same are still lying un-disbursed and the validity stand expired.the validity stand expired.

Contd./- Contd./-

20202020

Unspent balances of DPEP fundsUnspent balances of DPEP funds

• The State has already refunded the entire The State has already refunded the entire unspent balances of DPEP funds as per the unspent balances of DPEP funds as per the utilization certificate.utilization certificate.

• However, it was observed that Rs. 3,38,783/- and However, it was observed that Rs. 3,38,783/- and Rs.1,59,680/- under DPEP I and DPEP II Rs.1,59,680/- under DPEP I and DPEP II respectively were credited in the SSA cash book respectively were credited in the SSA cash book on 24-9-08 on account of interest paid by SBI, on 24-9-08 on account of interest paid by SBI, Backbay Reclamation Branch.Backbay Reclamation Branch.

• 85% of this interest needs to be refunded to GOI.85% of this interest needs to be refunded to GOI.

Contd./- Contd./-

21212121

Opening of bank accountsOpening of bank accounts

• The State has opened only one joint signatory savings The State has opened only one joint signatory savings bank account for each scheme as under:bank account for each scheme as under:SSA - Bank of IndiaSSA - Bank of IndiaNPEGEL - Union Bank of IndiaNPEGEL - Union Bank of India

KGBV - AXIS BankKGBV - AXIS Bank

Release of funds to districtsRelease of funds to districts

• Major portion of funds received from GOI and State are Major portion of funds received from GOI and State are released to districts within15 daysreleased to districts within15 days

Contd./- Contd./-

22222222

Mode of Transfer of FundsMode of Transfer of Funds

• By E-transfer from SPO to districtsBy E-transfer from SPO to districts• By Cheques from districts to blocksBy Cheques from districts to blocks (Some districts are using core banking facilities)(Some districts are using core banking facilities)• By cheques/core banking facilities/e-transfer from blocks By cheques/core banking facilities/e-transfer from blocks

to VECs/Clusters.to VECs/Clusters.

Backlog of State shareBacklog of State share

• The State has a backlog of 124.50 crore as on 30-6-09.The State has a backlog of 124.50 crore as on 30-6-09.• It was reported by the SIS that Rs.120.15 crore was It was reported by the SIS that Rs.120.15 crore was

released by the State on 24-7-09.released by the State on 24-7-09.• However, even after nearly 3 months of issuing the However, even after nearly 3 months of issuing the

sanction order, this amount was not credited to SSA sanction order, this amount was not credited to SSA account.account.

Contd./- Contd./-

23232323

Staff positionStaff position

Contd./- Contd./-

Office Office Sanctioned Sanctioned

postpostFilled Filled VacantVacant

SPOSPO 1111 1010 11

DPODPO 132132 112112 2020

BlocksBlocks 449449 306306 143143

TotalTotal 592592 428428 164164

24242424

• Training of accounts staffTraining of accounts staff

- Not provided any training during - Not provided any training during the the current year of 2009-10.current year of 2009-10.

• Annual ReportAnnual Report

- Submitted English version of the - Submitted English version of the Report for 2007-08.Report for 2007-08.

- Hindi version is under print. - Hindi version is under print.

Contd./- Contd./-

25252525

Contd./- Contd./- ProcurementProcurement• A separate procurement cell with 3 staff is A separate procurement cell with 3 staff is

available in SPO.available in SPO.• Prepared procurement plan for 2009-10 on Prepared procurement plan for 2009-10 on

20-7-09 and uploaded in the SSA web site.20-7-09 and uploaded in the SSA web site.• All procurements are covered under the All procurements are covered under the

procurement plan.procurement plan.• Not prepared the list of major contracts Not prepared the list of major contracts

above Rs.5 lakhabove Rs.5 lakh• Shared the procurement audit check list Shared the procurement audit check list

developed by MHRD with both internal and developed by MHRD with both internal and statutory auditors.statutory auditors.

• The State Govt.ceiling for open tender is The State Govt.ceiling for open tender is above Rs.50,000/- per contract and above Rs.50,000/- per contract and without quotation upto Rs. 1,000/- per without quotation upto Rs. 1,000/- per purchase.purchase.

26262626

Contd./- Contd./-

ProcurementProcurement• Items procured centrally.Items procured centrally.

- Computers and its accessories- Computers and its accessories- Maths kit, Science Kit and English - Maths kit, Science Kit and English Kit Kit under LEPunder LEP- Special equipment and aid and - Special equipment and aid and appliances for CWSNappliances for CWSN- Self Learning Cards and - Self Learning Cards and Teachers Teachers Hand BookHand Book

27272727

Contd./- Contd./-

ProcurementProcurement• Empanelled list of printers.Empanelled list of printers.

- After following the prescribed - After following the prescribed procedure procedure 7 printers were 7 printers were empanelled for 3 years empanelled for 3 years for for undertaking printing work.undertaking printing work.- Whenever any printing work is to - Whenever any printing work is to be be undertaken quotations are taken undertaken quotations are taken from from these printers onlythese printers only- This kind of empanelment is not - This kind of empanelment is not

permissible for value of permissible for value of contracts contracts covered under open covered under open tender method. tender method.

28282828

Contd./- Contd./- • Printing of self learning cards through Printing of self learning cards through

open tender for Class I to IVopen tender for Class I to IV- Exceeded financial ceiling prescribed.- Exceeded financial ceiling prescribed.- Not provided class-wise & subject-- Not provided class-wise & subject-wise wise scheduleschedule- Bid documents were not made - Bid documents were not made available available till the previous date for till the previous date for submission of submission of bids.bids.- Bids did not open promptly from the - Bids did not open promptly from the time of its last receipt (Delayed by 2 time of its last receipt (Delayed by 2 hrs)hrs)- Bid validity period of 1 year allowed - Bid validity period of 1 year allowed instead of the normal 90 daysinstead of the normal 90 days

29292929

Contd./- Contd./- • Procurement of English Language Kit Procurement of English Language Kit

and Maths Kits through open tenderand Maths Kits through open tender- - Exceeded financial ceiling prescribed.Exceeded financial ceiling prescribed.- - Not provided class-wise scheduleNot provided class-wise schedule- - Bids did not open promptly from the Bids did not open promptly from the time of time of its last receipt (Delayed by 3.30 its last receipt (Delayed by 3.30 hrs).hrs).- - Bid validity period of 1 year allowed Bid validity period of 1 year allowed

instead of the normal 90 days.instead of the normal 90 days.-- Approved outlay exceeded considerably Approved outlay exceeded considerably

in in both the casesboth the cases-- While placing orders for additional While placing orders for additional quantity, quantity, variable rates approved was variable rates approved was not not considered, considered, resulting in excess payment resulting in excess payment to suppliers.to suppliers.

30303030

Contd./- Contd./-

• Service Contract for third party Service Contract for third party evaluation of civil worksevaluation of civil works- Expression of Interest and Request - Expression of Interest and Request for for proposal were called for together proposal were called for together in in one advertisement.one advertisement.- Not followed the procedure of - Not followed the procedure of short short listing eligible firms first and listing eligible firms first and issuing issuing RPF to the short listed firms.RPF to the short listed firms.

31313131

Contd./- Contd./- • District Project Office, ThanaDistrict Project Office, Thana• Accounts keeping is satisfactory except the Accounts keeping is satisfactory except the

following:following:- Not maintained Journal and audit - Not maintained Journal and audit objection register. objection register. - Not carried out annual physical - Not carried out annual physical verification of stock and assetsverification of stock and assets- Advance of Rs.7.5 lakh dating back - Advance of Rs.7.5 lakh dating back from from 22-3-2005 is outstanding for 22-3-2005 is outstanding for adjustment.adjustment.-- Releases to sub-district level units are Releases to sub-district level units are treated as expenditure.treated as expenditure.

..

32323232

Contd./- Contd./- District Project Office, ThanaDistrict Project Office, Thana

• Bank reconciliation upto 30-9-09 but Bank reconciliation upto 30-9-09 but stale cheques from 21-7-08 are stale cheques from 21-7-08 are

included. included. • Procurement mainly under State Rate Procurement mainly under State Rate

contract, limited tender, single tender contract, limited tender, single tender and without quotation within the State and without quotation within the State ceiling of Rs.1,000/- per purchase.ceiling of Rs.1,000/- per purchase.

• Received all UCs from sub-district Received all UCs from sub-district level units up to 2008-09.level units up to 2008-09.

33333333

Contd./- Contd./- District Project Office, Mumbai SubrubDistrict Project Office, Mumbai Subrub

• Accounts keeping is satisfactory Accounts keeping is satisfactory except except the following:the following:- Not maintained Journal, Fixed - Not maintained Journal, Fixed Asset Asset Register. Register. - Not carried out annual physical - Not carried out annual physical verification of stock and assetsverification of stock and assets- Advances of Rs.328.83 lakh - Advances of Rs.328.83 lakh dating dating back from 30-1-06 are back from 30-1-06 are outstanding outstanding for adjustment.for adjustment.-- Releases to sub-district level Releases to sub-district level units are units are treated as expenditure.treated as expenditure.

34343434

Contd./- Contd./- District Project Office, Mumbai SubrubDistrict Project Office, Mumbai Subrub

• Bank reconciliation upto 30-9-09.Bank reconciliation upto 30-9-09.• No stale cheques included. No stale cheques included. • Procurement mainly under State Rate Procurement mainly under State Rate

contract, limited tender, single tender contract, limited tender, single tender and and without quotation within the State without quotation within the State ceiling of ceiling of Rs.1,000/- per purchase.Rs.1,000/- per purchase.

• Received all UCs from sub-district level Received all UCs from sub-district level units up to 2008-09.units up to 2008-09.

35353535

Contd./- Contd./- Block Resource CentreBlock Resource Centre

• One Accountant is available.One Accountant is available.• Cash Book on double entry systemCash Book on double entry system• Joint signatory savings bank Joint signatory savings bank

accounts accounts with one Bank.with one Bank.• Bank Reconciliation Statements Bank Reconciliation Statements

prepared regularly.prepared regularly.• Stale cheques are available in Stale cheques are available in

large large numbers.numbers.• Interest not refunded to DPOs.Interest not refunded to DPOs.

36363636

Contd./- Contd./- Block Resource CentreBlock Resource Centre

• Not maintained ledger, journal, Not maintained ledger, journal, fixed fixed asset registers.asset registers.

• Not carried out annual physical Not carried out annual physical verification of stock and assets.verification of stock and assets.

• Release to VECs are treated as Release to VECs are treated as expenditure.expenditure.

• UCs not linked properly.UCs not linked properly.• Procurements are mainly Procurements are mainly

through through quotations.quotations.

37373737

Contd./- Contd./- SchoolsSchools• VEC Manual is available.VEC Manual is available.• Cash book on single entry basis.Cash book on single entry basis.• UCs are submitted upto 2008-09.UCs are submitted upto 2008-09.• Interest not transferred to Interest not transferred to

blocks/DPO.blocks/DPO.• Fixed Asset Register not Fixed Asset Register not

maintained in maintained in any schools.any schools.• Annual physical verification of Annual physical verification of

stock stock and assets not carried out.and assets not carried out.• Procurement mainly on single Procurement mainly on single

tender tender method.method.• Display board is not available.Display board is not available.

3838