GIST OF OBSERVATIONS OF

IPAI (PHASE I) AND PHASE (II) IN RESPECT OF

SOME OF THE STATES

NAGALAND (PHASE I)

Not holding of the required meetings; Non-Preparation of Annual Accounts on time and

also non-submission thereof to the MHRD Non-maintenance of the requisite registers like Fixed

Assets Registers, Register of works, Register of Receipt and Payments released, Stock Register etc.

Para 12(v) The quantum of funds spilled over and treated as lapsed to the tune of Rs.3293.25 lakh and Rs.1789.34 lakh against the years respectively, would also serve as indicators that the implementing agencies were not well equipped to absorb the funds so released.

Delay in flow of funds from State to Districts; Holding of huge cash balances with the concerned

officials; Release of huge amounts in Cash and not through

cheque; Not obtaining the approvals of the EC before

submitting the Annual accounts to the MHRD; Incurring of excess expenditure than budgeted in the

AWP&B for the year; Lapse in maintaining the books of accounts and bank

reconciliation statement; Issuance of Bearer Cheque resulting into

embezzlement, although amount recovered in the next two years.

REMARKS - NAGALAND

No Confirmation, as required, received since 2010

WEST BENGAL (PHASE I)

Non-conduct of the meetings of the General Council and also that of the Executive Committee, at regular intervals;

Not-Obtaining the UCs from the spending authorities in the prescribed timings

Release of funds to Bankura on account of Maintenance Grant, salary of teachers and book grant . Since spill over under these heads is not allowed for the next year, the amounts need to be recovered from the user agencies.

Para 7.3 Non-production of records of GLRC, Bankura Sadar relating to cost involved in 19 training programmes and workshops.

Para 9.2.1 Failure of cost effective technology: The State was advised to fix responsibility on erring officials;

Para 9.2.3 and 9.2.4 An investigation should have been instituted to find out whether similar type of incidence also occurred in other districts where CLRC buildings and NSB had been constructed under CET and the possible lapse, irregularity and fixation of responsibility therefor;

Para 9.2.5 In Bankura district, it was observed that the roofs of newly constructed school buildings under CET at Haparria, Bhangalbandh and Kalaiberia Primary Schools had been badly damaged;

Non-production of record by SPO for selection of Chartered Accountants firms to prepare the annual accounts;

Deed of Land (Para 13.24)

REMARKS - WEST BENGAL

Confirmation that these are being held on regular basis, as required, is still awaited since 2007.

• No further details have been given by the State since 2007;

•  The State should reply to the particular issue raised in the observation which has not been done in this case;

JAMMU & KASHMIR (PHASE I)

Para 4.2 Single signatory accounts opened in J&K Bank for SSA, PEGEL and KGBV. It is in contravention of para 89.1 of FM&P.

Para 4.5 Large amounts given to staff as advances. These advances/imprest used for making payments of rent, cost of fax machine, dues of BSNL and not through account payee cheques.

Para 4.7 (‘c) No action taken on the report of Internal Auditor for 2005-06 and 2006-07 which brought out serious irregularities.

4.8 (a) Details of expenditure incurred out of pre-project funds (2002-03) not available.

4.8(b) Pre-project activities funds were given to DC of Srinagar, Badgaon, Anantnag, Kupwara, Pulwara, Baramulla, Leh etc. No expenditure details available.

Para 4.8(‘c) DSE, Srinagar purchased a building for girls at Qull Magam. Procedure followed not on record. A vehicle was purchased, but there is no sanction on record.

Para 4.9 (d) In Chandanpur, individual entries of credit not traceable. No reconciliation of figures prepared.

REMARKS - JAMMU & KASHMIR:

Final action taken report on the matter is still awaited though at least 10 reminders have been sent.

The amount of such outstanding advances is yet to be intimated by the State. Also, compliance to the instructions of releasing payments through account payee cheques still to be received.

Final action taken report on the matters pointed out by the Internal Auditors for the indicated years still awaited from the State. (Contd…)

i) What is the total amount received by the State under this activity;

ii) Give District wise release of the amount;

iii) What is the balance, if any, lying with the districts? Please confirm if the expenditure incurred by the districts has been properly accounted for.

NO CONFIRMATION HAS BEEN RECEIVED SO FAR.

Final action / outcome in the matter is still awaited;

Statement stated to have been attached with the letter No.Edu/SPD/SSA/536/6853-55/12 dated 12.4.2014 not received and requested, yet to be received.

Daman and Diu 

• Para 2.3.1 Not holding the meetings of the General Body as prescribed during the years 2004-05, 2005-06 and 2006-07. No meeting of the EC was held during 2005-06.

• Para 2.3.2Similarly, no meetings were held at the VEC level also.

• Para 2.4.2 Non-sanction of the positions of Finance and Accounts personnel and maging the work of accounts by the Teachers.

• Non-formation of Core teams for planning

Para 3.3 and 3.4, Non-utilisation of funds under Teacher Training, Teacher Grants and Innovative activities etc.

Para 4.4.3 Non-Release of funds to DPO, Daman, No separate Cash book and Accounts were being maintained.

Para 5.1 Not Providing Training to All Accounts and Audit staff at periodical intervals. Also, SPO had not earmarked separate staff for Internal Audit.

Para 6.2.1 No expenditure on Civil Works in Damam during 2004-05 and 2006-07 and only 26% expenditure during 2005-06.

Para 6.2.2 – Construction of four Addl. Rooms (CRC) by PWD rather than by School Managing Committee (SMC)/VEC/Gram Panchaya Committee, in violation of provisions contained in the FMP Manual

Para 6.2.3 – Construction of primary school at Somnath Village, a disputed site, and payment of advance to PWD, Daman

Para 7.1, 7.2, 7.3 Non-Maintenance of assets, Stock register etc. and also NON-CONDUCT OF INTERNAL AUDIT.

Para 10.2 Single Signatory Bank Account in State Bank of India by Asstt. Director of Education and also keeping HUGE CASH balancesPLUS SEVEN OTHER PARAS.

REMARKS - Daman and Diu

• NO REPLY SO FAR FROM THE STATE EVEN THOUGH REGULAR REMINDERS HAVE BEEN SENT SINCE BEGINNING.

CONCLUSIONS AND SUGGESTIONS(PHASE I)

The purpose of audit by the IPAI needs to be understood with positivity;

It is the primary responsibility of the State or the UT to settle the observations;

The States or the UTs have not taken these observations seriously or with positivity, as it clear from the above presentations/trends;

All the States or the Uts should endeavour for a pro-settlement of these audit matters by replying/taking remedial action well in time. The Ministry of HRD, on its part, has already issued a number of reminders in this regard.

Contd….

CONCLUSIONS ….CONTD.

The best option to settle the issue was to i) discuss the issue at length with the audit team, seek their advice and take corrective action immediately, show them and get the matter resolved;

Pay requisite attention to the issues still pending, from time to time and at regular intervals and resolve them, once for all.;

Discuss the matter with the concerned staff at MHRD, make the reply and take required action in time for settlement of the pending paras.

Contd….

CONCLUSIONS ….CONTD.

Stay in regular touch through communications with MHRD. Each communication would certainly bear something and that too positive.

Hats off to Chandigarh, the only UT amongst all the UTs/States, who has been following up vigorously for settlement of their pending paras by IPAI.

All the States and the UTs will now starting getting the communications faster than they would have expected.

GIST OF OBSERVATIONS MADE BY IPAI IN PLHASE II

DELHI Para 4.7 – Rs.1.44 lakh shown outstanding advances

by the State are yet to be settled. Paras 11.2 and 11.3 – UEEM should have recovered

the cost of books not supplied/short supplied by the DBTB. The PAB approved supply of Free Books and not work books. Further the exercise books supplied in subsequent financial years cannot be adjusted against the approved Budget of previus years. PABs approval for regularization of the expenditure is required.

REMARKS ON DELHI

NO REPLY BY THE STATE; Although the State replied in 2011 that action

is being taken and final reply will be sent in due course, yet even after expiry of almost three years, reply is still awaited

Odisha

Para 5.6 The cost of NT Books supplied to neighboring State amounting to Rs.10.63 lakh during 2007-08 has either to be borne by the State Govt or approval of PAB for its regularization is required.

REMARKS State has written a letter to the AS for

regularization of the matter pertaining to 2007-08 in 2011-12 which is not in order. This may be brought to the PAB for the coming year.

Daman and Diu

17 paras raised by IPAI Phase II were communicated in March, 2010.

REMARKS No reply has been received despite five

reminders, so far.

Mizoram

The entire report of IPAI was sent to the State in October, 2009 followed by at least 5-6 remi`nders.

REMARKS Not even one reply by the State to any of the

communications/observations of IPAI

Tamil Nadu

• The entire report of IPAI was sent to the State in October, 2009 followed by at least 5-6 reminders.

• REMARKS• Not even one reply by the State to any of the

communications/observations of IPAI.

Jammu & Kashmir

Para 2.4 As per certified accounts for the year 2005-06, an amount of Rs.1523.26 lakh was shown as remittance in transit in the Balance Sheet. The amount was adjusted in the balances for the year 2006-07 as misc. receipts as under without confirmation or adjustment in the concerned accounts.

Para 2.11 Non-settlement of advances paid to staff etc. Para 2.12 Payment of huge advances to

individuals/different functionaries

Jammu & Kashmir (contd.)

• Para 2.13 Non-rendering of Adjustment Accounts by various agencies.

• Para 2.14 – Delayed submission of utilization certificates;

• 4.1. 4.2 – The position of receipt of teacher grant in Kathua and Anantnag Districts and further release of these funds to Sub-District Units and the funds remaining undistributed/unutilized at the end of the year 2006-07 to 2008-09

Jammu & Kashmir (contd.)

Para 8.1 – The State Govt was already providing free textbooks to children of class 1 to 2 out of the funds

provided under District Plan. The textbooks for all categories from class 3 to 8 were being provided by debit to SSA funds.

Adjustment account in respect of these releases was neither rendered by the Directors of School Educations nor by ROSE,

Jammu & Kashmir (contd.)

8.3, 8.3.1 to 8.3.9 – Outstanding advances on account of supply of textbooks

9.1, 9.2, 9.2.1 to 9.2.7 – Non utilization of funds under teachers training and community training

Plus OTHER PARAS.

REMARKS ON JAMMU & KASHMIR

Para 2.4 Final comments from the State are awaited though more than two years have passed;

Para 2.11 The position of settlement of advances is still awaited even though five years have passed;

Para 2.12 tp 2.14 Although the state stated in 2011 that the issue has been sorted out, final adjustments of advances are still awaited.

In other paras, no reply has been received from the State.

CONCLUSION AND SUGGESTIONS – IPAI PHASE II

The State or the UT In a number of cases, as indicated above, have not even thought of replying to any of the communications sent by the MHRD, which is a matter of serious concern, as we are all working in a missionary mode.

If the States or the UTs remain silent on this sensitive issue, the very purpose of working in a missionary mode shall not be attained;

CONCLUSION AND SUGGESTIONS – IPAI PHASE II

The States/UTs have to act fast in settling these issues. This not only will set the record right, but also reduce the wastage on account of efforts both in terms of time and money, as these chapters would get closed and we shall be in a position to think something better;

Based on the above observations, can we jointly pledge a target before our learned Deputy Secretary by which we shall be settling all the IPAI observations?

From our side, I can assure you again that NOW ONWARDS, you would all get faster action than you can imagine!

ACKNOWLEDGEMENTS:

• I am grateful to my non-unit colleage, Ankit Singhal of TSG, who not only helped me in preparing this presentation, but also designed it as if it was sent to the BEAUTY PARLOUR and beautified in the manner you all witnessed it;

• I am also grateful to my colleague in my unit i.e. Ms Nisha, Ms Ashok (affectionately called ROMA), Ms Nidhi Chhabra, Ms. Sunita and Mr. Vishal Mathur who provided all the guidance for preparing this presentation. It was only because of their unending support, the presentation could be completed well before the time; (contd..)

ACKNOWLEDGEMENTS

• I am also grateful to my Sr. Colleagues, namely, Shri S.P. Reddy, Shri P.K. Rangarajan, Shri O.P. Aggarwal and Shri Manish Sharma for their valuable guidance and suggestions;

• I am also equally grateful to the participants from different States and Uts, who gave me this opportunity for presentation and also giving it a patient hearing and offering valuable suggestions;

ACKNOWLEDGEMENTS

• Last but not the least, I owe preparation and submitting this presentation before the participants to Shri Virender Singh, the Deputy Secretary, who not only laid the foundation on this preparation, but also nurtured and refined it besides giving critical, non-stop and valuable guidance.