government of andhra pradesh state audit … report 2007-08.pdfgovernment of andhra pradesh state...

GOVERNMENT OF ANDHRA PRADESH STATE AUDIT DEPARTMENT

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS,

MUNICIPALITIES, AGRICULTURAL MARKET COMMITTEES, ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2007‐08

DIRECTOR OF STATE AUDIT A.P., HYDERABAD.

GOVERNMENT OF ANDHRA PRADESH

STATE AUDIT DEPARTMENT

CONSOLIDATED AUDIT AND REVIEW

REPORT ON THE ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS,

MUNICIPALITIES, AGRICULTURAL MARKET COMMITTEES, ZILLA GRANDHALAYA SAMSTHAS



FOREWORD

The CONSOLIDATED AUDIT AND REVIEW REPORT for the year

2007-08 compiled in FOUR parts..

Part – I: PANCHAYAT RAJ INSTITUTIONS.

Part – II: MUNICIPALITIES,

Part -- III AGRICULTURAL MARKET COMMITTEES Part -- IV ZILLA GRANDHALAYA SAMSTHAS

All parts are designed independently and comprehensively. Each part contains

Section I and Section II .

Section- I of Part I deals with introduction of the Panchayat Raj Institutions

and a few Selected Audit Objections. The Audit Objections are categorised into 19

Standardised Categories. Section II deals with Accounting Statements which are

prepared with reference to the Audited Accounts.

. Section- I of Part II deals with introduction of the Municipalities and a few

Selected Audit Objections. Section II deals with Accounting Statements which are

prepared with reference to the Audited Accounts.

Section- I of Part III deals with introduction of the Agriculture Marking

Committees and a few Selected Audit Objections. Section II deals with Accounting

Statements which are prepared with reference to the Audited Accounts.

Section- I of Part IV deals with introduction of the Zilla Grandhalaya

Samasthas and a few Selected Audit Objections. Section II deals with Accounting

Statements which are prepared with reference to the Audited Accounts.

CONTENTS

Sl. No. PARTICULARS PAGE No.

I Abbreviations

II Part I Panchayat Raj Institutions -- Section I 1-114

Panchayat Raj Institutions -- Section II 115-160

III Part II Municipal Councils- Section I 1-28

Municipal Councils- Section II 29-42

IV Part III Agriculture Market Committees—Section I 1-36

Agriculture Market Committees—Section II 37-45

V Part IV Zilla Grandhalaya Samasthas – Section - I 1-19

Zilla Grandhalaya Samasthas – Section - II 20-28

ABBREVIATIONS USED

A.C.D.F Assembly Constituency Development Fund

A.P.R.B Andhra Pradesh Rural Board

ARWS (N.T.S.P) Accelerated Rural Water Supply (Non tribal sub plan)

C.C. Part Bill Contract Certificate part bill

C.D.R Community Development Resource

Cum Cubic Meter

D.E.O District Educational Officer

E.A.S Employment Assurance Scheme

E.E Executive Engineer

F.S.D Further Security Deposit

FDR (Roads) Flood Damage Relief

I.D.S.M.T Integrated Development of Small and Medium Towns

I.L.C.S Individual Low Cost Sanitation

J.G.S.Y Jawahar Grameena Samrudhi Yojana

J.R.Y Jawahar Rojgar Yojana

L.C.S Low Cost Sanitation

L.T.C Leave Travel Concession

M.B Measurement Book

M.H.P Maintenance of Hand Pumps

M.I Minor Irrigation

M.N.P Minimum Needs Programme

M.N.P (N.T.S.P) Minimum Needs Programme (Non tribal sub plan)

M.P.D.O Mandal Parishad Development Officer

M.P.L.A.D Member of Parliament Local Area Development

M.N.P. Minimum Needs Programme

N.S.D.P National Slum Development Programme

NABARD National Bank for Agriculture & Rural Development

O.B.B Operation Black Board

O.N.G.C Oil & Natural Gas Commission

P.H. Workers Public Health Workers

P.R & RD Panchayat Raj & Rural Development

P.S. Charges Petty Supervision Charges

P.W.S Protected Water Supply

R.D Rural Development

R.D.P Rural Development Programme

R.I.D.F Rural Infrastructure Development Fund

R.R.M Rural Road Maintenance

R.S.P Rural Sanction Programme

R.S.P (Plan) Rural Shifting Programme

RWS/ARWS Rural Water Supply/Accelerated Rural Water Supply

S.Cs Scheduled Castes

S.F.C State Finance Corporation

S.J.S.R.Y Swarna Jayanthy Shahari Rojgar Yojana

S.M.P Sub-Merian Project

S.P.P Special Promotion Post

S.Ts Scheduled Tribes Spl.

R.R.M.S Special Rural Road Maintenance Scheme

T & P Charges Tools and Plant Charges

T.A Traveling Allowance

T.F.C Tenth Finance Commission

T.T.A Transfer Traveling Allowance

V.L.T Vacant Land Tax

Vr. Voucher

Z.P Zilla Parishad

PART - I



CONSOLIDATED AUDIT AND REVIEW REPORT ON THE

ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS



PART - 1

SECTION - I

Sl. No. DESCRIPTION PAGE

No.

I Preface iv

II Overview v & vi

III Introduction 1-13

IV A few Selected Audit Paras – Category wise 14-114

SECTION - II

STATEMENT No.

DESCRIPTION OF STATEMENT FOR THE YEAR 2007-08 OF

PANCHAYAT RAJ INSTITUTIONS PAGE

No.

1 Statement showing the Status of Audit (Institution wise).

115

1 Status of Audit of ZPs (District wise) 116

2 Status of Audit of MPs (District wise) 117

3 Status of Audit of GPs (District wise) 118

2 Consolidated Statement of Receipts & Payments of Zilla Parishads for the year 2007-08 119

1. Consolidated Fund Wise Statement of Receipts & Payments of Zilla Parishads for the year 2007-08. 120

2. Consolidated Fund Wise Statement of Receipts & Payments of Zilla Parishads for the year 2007-08. 121

3 Consolidated Statement of Receipts & Payments of Mandal Parishads for the year 2007-08 122

1.Consolidated Fund Wise Statement of Receipts & Payments of Mandal Parishads for the year 2007-08. 123

2.Consolidated Fund Wise Statement of Receipts & Payments of Mandal Parishads for the year 2007-08. 124

CONTENTS

i

4 Statement of Consolidated Receipts and Payments of Gram Panchayats for the year 2007-08. 125

1. Statement of Consolidated Receipts of Gram

Panchayats for the year 2007-08. (Receipts Heads).

126

2. Statement of Consolidated Payments of

Gram Panchayats for the year 2007-08. (Payments Heads).

127

5 Consolidated Statement of Grants Sanctioned to Zilla Parishads for the year 2007-08 and Payments. 128

1. Consolidated Statement of Grants Sanctioned

to Zilla Parishads for the year 2007-08 and Payments.

129



130



131

6 Consolidated Statement of Grants Sanctioned to Mandal Parishads for the year 2007-08 and Payments.

132


to Mandal Parishads for the year 2007-08 and Payments.

133



134



135

7 Statement of District wise Consolidated Receipts and Payments of Government Grants released to Gram Panchayats for the year 2007-08.

136

1. Statement of Consolidated Grant Wise Receipts and Payments of Gram Panchayats for the year 2007-08.

137

8 Dist. Wise Audit Objections raised in Panchayat Raj institutions for the year 2007-08. 138

ii

9 No. of Audit Objections raised (category wise) and Amount involved in respect of Panchayat Raj Institutions.

139

1. Variation in Account figures. 140

2. Excess utilization of Grants / Funds. 141

3. Diversion of Grants / Funds. 142

4. Non-utilisation of Grants before the lapsable date. 143

5. Mis-utilisation of Grants / Funds. 144

6 (1). Non-Utilization of Earmarked funds in ZPs 145

6 (2). Non-Utilization of Earmarked funds in MPs 146

6. Non-collection of dues. 147

7. Advances Pending Adjustment. 148

8. Violation of Rules. 149

9 (10). No. of Audit Objections on Non-remittance of deductions / recoveries from work bills / pay bills / contingent bills etc., and amount involved in respect of PRIs.

150

11. Non-production of records. 151

12. Misappropriations. 152

13. Excess Payments. 153

14. Wasteful Expenditure. 154

15. Instances of cases of unaccounted cash / stores. 155

16. Pendency of Utilisation Certificates. 156

17. Surcharge Certificates Recovery pending. 157

18. Others. 158

19. DDs / Cheques received but not realised within time. 159

10 No. of outstanding Audit objections as on 31-03-2008 in PRIs. 160

iii

PREFACE

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 Panchayat Raj Institutions (PRIs), 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 2007-08 and also the arrears were audited by the Director of State Audit during the year 2008-09 is submitted.

iv

OVER VIEW

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 1094 1 1095 3. Gram Panchayats 20723 151 20874 Total: 21839 152 21991

AUDITED AMOUNTS: The total Receipts and Payments of all the PRIs in the State for the year 2007-

08 were Rs. 1550.40 Crores and Rs. 1316.07 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

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

v

17. Surcharge Certificates Recovery Pending.

18. Others

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

A total number of 435387 audit objections involving an amount of Rs. 871.41

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 9 to 9 (19) appended to the report.

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. It could be observed that the No. of audit objections pending settlement by the end of financial year 2008-09 is 15, 23,354 involving an amount of Rs.7, 275.39 Crores. The audit paras selected for inclusion in the Annual CARR give a glimpse of financial administration in the PRIs. For institution wise details respective audit reports are to be referred.

vi

SECTION - I

1

ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS FOR THE

YEAR 2007-08

SECTION - I

INTRODUCTION

1.1 Under the A.P. State Audit Act, 1989 the Director is made in charge of the audit of the funds of Panchayat Raj 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 Panchayat Raj Institutions and Audit Reports consisting of defects noticed in 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 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 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., Zilla Parishads, Mandal Parishads and Gram Panchayats.

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 to periodically check up the funds with Treasury or Bank.

c) Whether 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 any executive instructions issued by the Government.

d) Whether funds were utilized only for the permitted purposes prescribed under the Act / Rules.

2

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.

f) Whether vouchers for the expenditure incurred were maintained.

g) Whether grants received from different sources were properly accounted for and utilised for the purposes for which they were meant.

2.2 The Department also conducts propriety audit of the expenditure incurred.

STATUS OF AUDIT

3. The audit of the following Panchayat Raj Institutions upto the year 2007-08 was conducted in the year.

Panchayat Raj Institutions No. of Years audited

i) Zilla Parishads : 22

4ii) Mandal Parishads : 1095

iii) Gram Panchayats : 20874

21991

RECEIPTS AND PAYMENTS (2007-08)

4.1 The Receipts and Payments are inclusive of the various grants received from Central and State Governments during the year 2007-08 by the Panchayat Raj Institutions. The details of gross Receipts including grants and Payments are shown in the Statements No. 2 to 4 with reference to Zilla Parishads, Mandal Parishads and Gram Panchayats respectively. The various Grants received by Panchayat Raj Institutions are exclusively detailed in Statement Nos. from 5 to 7.

4.2 The audit Pendency position of Panchayat Raj Institutions for the year 2007-08 is furnished in the appended Statements as detailed below:

Institution wise Statement – 1

Zilla Parishad Statement – 1 (1)

Mandal Parishad Statement – 1 (2)

Gram Panchayat Statement – 1 (3)

4.3 The aggregate Receipts & Payments of Panchayat Raj Institutions in the State during the year are Rs.1,55,040.22 lakhs and Rs.1,31,606.96 lakhs respectively.These figures are present in pie diagram (Chart – 1 and 2).

3

Chart - 1

RECIEPTS OF PANCHAYAT RAJ INSTITUTIONS FOR THE YEAR 2007-2008

50%

26%

24%

ZILLA PARISHADSMANDAL PARISHADSGRAM PANCHAYATS

Chart - 2

PAYMENTS OF PANCHAYAT RAJ INSTITUTIONS FOR THE YEAR 2007-2008

49%

23%

28%

ZILLA PARISHADSMANDAL PARISHADSGRAM PANCHAYATS

Chart - 3

4

TREND OF RECEIPTS

231584.43

39732.33

85242.14

155040.22

82022.74 75964.25

Zilla Parishads Mandal Parishads Gram Panchayats

2006-07 2007-08

4.4 The pattern of Receipts of Panchayat Raj Institutions for the years 2006-07 and 2007-08 exhibited in the above bar chart (chart – 3)

Chart -4

TREND OF PAYMENTS

133216.38

44031.44

76727.17

131606.96

60567.52

76055.68

Zilla Parishads Mandal Parishads Gram Panchayats

2006-07 2007-08

4.5 The pattern of Payments of Panchayat Raj Institutions for the years 2006-07 and 2007-08 exhibited in the above bar chart (chart – 4)

5

4.6 The Receipts and Payments particulars of various accounts under Zilla Parishad Funds are appended in the Statements enclosed.

Name of the Statement No. of the Statement Receipts and Payments of Funds (District wise) Statement – 2 (1) Receipts and Payments Head wise Statement – 2 (2) Receipts and Payments Head wise Statement – 2 (3) Receipts and Payments Head wise Statement – 2 (4)

4.7 The Fund Wise Receipts & Payments of Zilla Parishads in the State for the year 2007-08 are exhibited in the bar charts. (Chart – 5)

Chart – 5

RECIEPTS & PAYMENTS OF ZILLA PARISHADS FOR 2007-08 (FUND WISE)

4625

1.07

1201

1.42

540.

3

0

7901

.51

6426

.64

8504

.2

3572

3.82

3042

4.68

5168

.66

366.

48

47.8

6

4167

5.74

1132

1.52

1431

.1

316.

87

1008

5.25

5232

.22

9206

.46

2427

6.91

2297

2.23

4452

.16

372

264.

5

GE

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1 2 3 4 5 6 7 8 9 10 11 12

RECEIPTS PAYMENTS

4.8 The Receipts and Payments particulars of various funds which are the constituents of Mandal Parishad Funds with reference to Statement are given below:

6

Name of the Sub Fund No. of the Statement

Receipts and Payments - District wise Statement – 3 (1)

Receipts and Payments Fund Wise Statement – 3 (2)

Receipts and Payments Fund Wise Statement – 3 (3)

4.9 The Fund Wise Receipts & Payments of Mandal Parishads in the State for the year 2007-08 are exhibited in the bar charts. (Chart – 6)

Chart – 6

RECIEPTS & PAYMENTS OF MANDAL PARISHADS FOR 2007-08 (FUND WISE)

2818

4.72

4007

.55

1050

3.91

30.8

71.5

142.

49

2614

8.54

5085

.4

897.

17

458.

82

16.0

4

6475

.81

1946

6.39

3991

.9

3826

.57

223.

67

911.

67

286.

27

1952

4.54

5639

.47

636.

55

478.

37

17.5

2

6564

.8

GE

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ND

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1 2 3 4 5 6 7 8 9 10 11 12

RECIEPTS PAYMENTS

7

Name of the Fund % of Receipts % Payments

General Fund 34.36 32.14

Education Fund 4.89 6.59

Social Welfare Account 12.81 4.67

Minor Irrigation 0.04 0.37

Roads and Bridges 0.09 1.51

Rural Water Supply 0.17 0.47

Other Programmes 31.88 32.24

Sampoorna Grameena Rojgar Yojana 6.20 9.31

Deposits 1.08 1.05

Advances 0.56 0.79

Loans 0.02 0.02

Pension Fund 7.90 10.84

Total: 100 100 4.10 The General Fund occupied lion share in Panchayat Raj Institutions Funds at

34.36 %, the Minor Irrigation fund and Loan Funds are insignificant. The Deposits fund share in receipts only 1.08 % as against 1.05 % share in payments. This shows that Deposits Fund skewed negatively. It is eating deposit funds.

4.11 The Receipts and Payments particulars of Gram Panchayats with reference to Statement are given below:

Name of the Sub Fund No. of the Statement

Receipts and Payments - District wise Statement – 4 (1)

Receipts – Source wise Statement – 4 (2)

Payments – Head wise Statement – 4 (3)

4.12 The Department has conducted the audit of the Receipts amounting to Rs.1,55,040.22 lakhs and Payments of Rs.1,31,606.96 lakhs as detailed in the Statements No. 2 to 4.

8

GRANTS POSITION

5.1 Panchayat Raj Institutions 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 Panchayat Raj Institutions have received the grants as detailed below during the year 2007-08.

5.2 The grants Received by Zilla Parishad have been enumerated below.

Z.P. Receipts % M.P

Receipts % G.P Receipts %

Grants 90849.07 58.60 40522.42 49.40 31705.28 41.74

Non Grants 64190.93 41.40 41500.32 57.51 44258.97 58.26

Total: 155040.22 100 82022.74 100 75964.25 100

5.3 The Grants constitutes 58.60% of Receipts in respect of Zilla Parishads, 49.40% in respect of Mandal Parishads and 41.74% in respect of Gram Panchayats.

Name of the Statement No. of the Statement

Consolidated Statement of Receipts & Payments District Wise (Grants)

Statement – 5 (1)

Consolidated Statement of Receipts & Payments Head Wise (Grants)

Statement – 5 (2)


Statement – 5 (3)


Statement – 5 (4)

9

5.4 The Grant Wise Receipts & Payments of Zilla Parishads for the year 2007-08 are exhibited in the bar charts. (Chart – 7)

Chart – 7

RECIEPTS & PAYMENTS OF ZILLA PARISHADS FOR 2007-08 (GRANT WISE)

4674

.19

9759

.7

110.

73

1271

6.74 1424

7.09

2430

.25

4759

.2

98.6

8

93.8

5

17.9

6

0 81.5

4

121.

95

1432

9.52

263.

58

4704

.12

9953

.5

68.7

3

385.

45

1203

2.29

4158

.3

1020

5.61

570.

34

1278

3.46

8886

.84

2836

.4

5789

.24

178.

6

71.9

8

60.1

5

1.26

0 186.

7

1310

1.48

255.

59

2552

.34

5655

.33

153.

5

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92

5429

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

RECIEPTS PAYMENTS

5.5 The grants received by Mandal Parishads in the state have been enumerated below.

Name of the Grant No. of the Statement Statement showing the Consolidated Receipts and Payments of Grants in Mandal Paraishads

Statement – 6 (1)

Statement showing the Consolidated Receipts and Payments of Head Wise Grants in Mandal Paraishads

Statement – 6 (2)


Statement – 6 (3)


Statement – 6 (4)

10

5.6 The Grant Wise Receipts & Payments of Mandal Parishads for the year 2007-08 are exhibited in the bar charts. (Chart – 8).

Chart – 8

RECIEPTS & PAYMENTS OF MANDAL PARISHADS FOR 2007-08 (GRANT WISE)

1641

7.44

2434

.39 53

75.3

779.

57

1057

.8

191.

06

605.

12

263.

69

142.

25

18.4

8

3.71

0 94.9

7

33.8

7 1654

.17

660.

91

1078

9.7

1435

0.92

2725

.59 58

10.9

1

798.

14

545.

41

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

RECIEPTS PAYMENTS

5.7 The grants received by Gram Panchayats in the State are enumerated below.

Name of the Grant No. of the Statement

Statement of District Wise Consolidated Receipts and Payments of Gram Panchayats

Statement – 7(1)

Statements of Consolidated Grant Wise Receipts & Payments of Gram Panchayts

Statement – 7 (2)

11

5.8 The Grant Wise Receipts & Payments of Gram Panchayats in the State for the year 2007-08 are exhibited in the bar charts. (Chart – 9)

Chart – 9

RECIPTS & PAYMENTS OF GRAM PANCHAYATS FOR 2007-08 (GRANT WISE)

4949

.89

6024

.63

8558

.91

6498

.13

5673

.7272

95.0

1

7763

.52

1034

6.33

5431

.37

3885

.43

SALA RY GRANT SGRY XI/XII FINANCECOMMISSION

STATE FINANCECOMMISSION

OTHER GRANTS

1 2 3 4 5

RECIEPTS PAYMENTS

AUDIT OBJECTIONS 6.1 During the course of audit of these Panchayat Raj Institutions for the year 2007-

08, 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.

6.2 A total number of 451132 audit objections involving an amount of Rs.88680.87 lakhs were raised in the audit of the Panchayat Raj Institutions 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. 9.

12

6.4 CATEGORISATION OF AUDIT OBJECTIONS:

The Audit Objections are classified into 19 Categories as detailed below and shown in the Appended Statement No. – 9.

All objections Panchayat Raj Institutions wise Statement – 9

Variation in Account Figures Statement – 9 (1)

Excess Utilisation of Grants Statement – 9 (2)

Diversion of Grants / Funds Statement – 9 (3)

Non-Utilisation of Grants before lapsable date Statement – 9 (4)

Mis-Utilisation of Grants / Funds Statement – 9 (5)

Non-Utilisation of Earmarked Funds of ZPs Statement – 9 (6) (1)

Non-Utilisation of Earmarked Funds of MPs Statement – 9 (6) (2)

Non-collection of dues Statement – 9 (7)

Advances pending adjustment Statement – 9 (8)

Violation of Rules Statement – 9 (9)

Non-remittance of Deductions / Recoveries from vouchers / Pay Bills / Contingent Bills

Statement – 9 (10)

Non-production of Records Statement – 9 (11)

Mis-appropriations Statement – 9 (12)

Excess payments Statement – 9 (13)

Wasteful Expenditure Statement – 9 (14)

Instances of cases of unaccounted cash / stores Statement – 9 (15)

Pendency of Utilisation Certificates Statement – 9 (16)

Surcharge Certificates - Recovery pending Statement – 9 (17)

Others Statement – 9 (18)

DDs / Cheques received but not realised Statemet – 9 (19)

6.5 A total number of 1523354Audit Objections are pending settlement in all Zilla Parishads, Mandal Parishads and Gram Panchyats as on 31-03-2006 involving an amount of Rs. 727538.81 Lakhs showing Outstanding Audit Objections with Institution – wise break-up is Annexed vide Statement No. 10.

6.6 The objections – Number and amount involved – were categorised and their category has been analyzed 26% of Amount involved and also 28% of Number involved pertains to the Non production of Records. The next slot goes to Violation of Rules which constitutes 25%. These two together state that records are not properly kept by Panchayat Raj Institutions. 10% of amount objected is on account of Other objections or non accounting for involving Rs. 11 Crores. This constitutes 2% of Expenditure. 8% of objections on account of Non collection of Dues for an amount of Rs. 27 Crores constitute 5% of Payments.

13

STATEMENT SHOWING INCIDENCE OF OBJECTIONS (2007-08)

Sl. No. Name of the Category No. of

Paras % Amount Rs. in Lakhs

%

1 Non Production of Records 82510 18.742 37650.72 41.09

2 Advances pending adjustment 18343 4.1666 14276.06 15.58

3 Violation of Rules 89570 20.346 7638.62 8.336

4 Pendency of Utilisation Certificates 5833 1.325 6193.65 6.759

5 Non-utilisation of Earmarked Funds 7317 1.6621 5950.03 6.493

6 Non-collection of dues 38751 8.8023 4332.11 4.727

7 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc

37905 8.6102 3659.91 3.994

8 Instances of cases of unaccounted for cash / stores 509 0.4441 2352.8 2.567

9 Variation in Account Figures 6607 1.5008 1892.3 2.065

10 Others 114607 26.033 1627.41 1.776

11 Excess Utilisation of Grants / Funds 7773 1.7656 1326.91 1.448

12 Non-utilisation of grants before the lapsable date 16049 3.6456 1318.26 1.439

13 Mis-utilisation of Grants / Funds 1252 0.2844 1118.08 1.22

14 Diversion of Grants / Funds 2222 0.5047 1085.95 1.185

15 Excess Payments 3402 0.7728 513.65 0.561

16 Misappropriations 1360 0.3089 423.81 0.462

17 Wasteful Expenditure 3039 0.6903 254.91 0.278

18 Surcharge Certificates recovery pending 3178 0.72 22.41 0.024

19 D.D./Cheques received but not realized with in time. 8 0.0018 1.03 0.001

Total: 440235 100 91638.62 100

14

AUDIT – PARAS

Gist of some of the selected audit objections raised during the year 2007-08 under report is enumerated below:

1 VARIATION IN ACCOUNT FIGURES

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 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 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 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 ARs in various local bodies are detailed below:

A Consolidated Statement No. 9 (1) of Variation in account figures is

appended to the Report from which it could be seen that Non-reconciliation of Rs. 1892.30 was pointed out in 6607 audit paras.

A few of such cases are detailed below. 1.1.1. ZP, NALGONDA - DIFFERENCE BETWEEN CASH BOOK AND

TREASURY PASS BOOK BALANCES – NEEDS RECTIFICATION There was a variation of Rs.6866049/- between the Cash Book and Treasury Pass Book. No effort was made to reconcile the difference.

(Para No. 6 of the AR on the accounts of ZP. ,Nalgonda ) 1.1.2. ZP, VISAKHAPATNAM - VARIATION IN CLOSING BALANCES OF

CASH BOOK AND PASS BOOK It was noticed during the audit that there was variation of Rs.58,27,596-82

in the closing balances of cash book and pass book. The details are given below. Closing balance as per Cash Book Rs.12,22,07,778-39 Closing balance as per Pass Book Rs. 11,63,80,181-57 Difference Rs. 58,27,596-82

Further the closing balance as per Annual Account i.e.Rs.28,21,12,291/- is also not in agreement with the closing balance of either the cash book or the Treasury pass book in respect of General Funds. (Para No.3 of the AR on the accounts of ZP General Funds, Visakhapatnam )

15

1.1.3. ZILLA PARISHAD, KAKINADA, EAST GODAVARI DISTRICT - VARIATION BETWEEN OPENING BALANCES OF ANNUAL ACCOUNT AND CASH BOOK

As verified from the annual account for the year 2007-08 the opening

balance in respect of PF account is Rs.102,66,30,390.98. But as per cash book the opening balance was Rs.104,08,70,556.98 for the year 2007-08. The difference of Rs.1,42,40,166/- would need to be reconciled.

(Para No. 9 (1) of the AR on the accounts of ZP General Funds, East Godavari District)

1.1.4. ZILLA PARISHAD, KAKINADA, EAST GODAVARI DISTRICT -

AMOUNT DEBITED FROM THE BANK ACCOUNT BUT NOT RECORDED IN CASH BOOK

As verified from the annual account of EE PR (RWS), Kakinada for the year 2007-08, it was noticed that an amount of Rs.1,49,414/- was debited in the bank account No. 62007068096 of State Bank of Hyderabad, ZP, Kakinada on 15-03-2008. But the same was not recorded in the cashbook. The reasons for debiting the said amount from 12th Finance Commission Grant were not explained during the audit.

(Para No. 8 of the A.R.on theA/cs of EE PR (RWS) Kakinada, Z.P.,East Godavari)

1.1.5. ZILLA PARISHAD, SRIKAKULAM - CASH BOOK BALANCE AND BANK PASS BOOK BALANCE NOT TALLIED

The closing balance in the SGRY cash book as on 31-03-2008 was Rs.1,27,75,194 and was in agreement with the consolidated closing balance in the accounts for March, 2008 and was in agreement with the balances in the Bank Pass book after allowing for the uncashed cheques at the close of the year. There was a difference of Rs.12,995 between the cash book balance and the bank Pass Book balance as on 31.03.2008 as detailed hereunder in Rs.

Closing balance as per Cash Book as on 31-03-2008 12775194 Add: Un cashed cheques:- Cheque No. 272016 Dt: 07-03-2008 24000 Cheque No. 028129 Dt: 14-03-2008 3630 Cheque No. 272019 Dt: 24-03-2008 12000 Cheque No. 028130 Dt: 28-03-2008 211933 Cheque No. 028131 Dt: 31-03-2008 68860 Cheque No. 028132 Dt: 31-03-2008 196362 Cheque No. 028133 Dt: 31-03-2008 59000 Cheque No. 028134 Dt: 31-03-2008 8801

Cheque No. 028135 Dt: 31-03-2008 10800

16

Cheque No. 028136 Dt: 31-03-2008 50000

Cheque No. 028137 Dt: 31-03-2008 195644

Cheque No. 028138 Dt: 31-03-2008 72000

Cheque No. 028139 Dt: 31-03-2008 19500

TOTAL 932530 932530

Grand Total 13707724

Less: Amount taken to cash book but not adjusted in the Pass Book

(Amount refunded by MPDO Jalamuru) 279896

TOTAL 13427828

Difference to be reconciled 12995

Closing Balance as per Pass Book as on 31-03-2008 13414833

(Para No. 3 of AR on the accounts of SGRY, ZP, Srikakulam District)

1.1.6. ZILLA PARISHAD, SRIKAKULAM - DIFFERENCE BETWEEN CASH BOOK AND TREASURY PASS BOOK BALANCES

There was a difference of Rs.39,34,947.77 between the Cash Book and the

Treasury Pass Book as on 31.03.2008 which has to be reconciled immediately.

Reconciliation Closing Balance as per Cash Book as on 31-03-2008 100871550.95 Add: Un-cashed Cheque 3526287 Total 104397837.95 Add: Un-cashed Cheques 5158895.40 Total 109556733.35 Add Previous difference 3934947.77 Total 113491681.12 Less: Amount debited in the Pass Book but not taken into the Cash Book

2369661 Cheque No. 715568 Dt: 30-07-2007 88793 Cheque No. 716407 Dt: 15-10-2007 18500

Cheque No. 716420 Dt: 27-10-2007 2262368 Total 2369661

Closing Balance as per Pass Book 111122020.12

(Para No. 3 of the AR on the accounts of General Funds, ZP, Srikakulam District) 1.1.7. ZILLA PARISHAD, SRIKAKULAM - AMOUNTS DEBITED FROM

TREASURY PASS BOOK BUT NOT RECORDED IN CASH BOOK

It was noticed that the following amounts were debited in the Treasury Pass book on the dates noted against each. But the details of the expenditure voucher No. and Cheque No. etc., were not recorded in cash book which is irregular.

17

Date of Debit in the Pass Book Amount Rs. Ch. No. 715568 Dt: 30-07-2007 88793 Ch. No. 716407 Dt: 15-10-2007 18500 Cheque No. 716420 Dt: 27-10-2007 2262368 2369661 (Para No. 38 of the AR on the accounts of General Funds, ZP, Srikakulam District)

1.2.1. MP, JIYYAMMAVALASA,VIZIANAGARAM DISTRICT- VARIATION

IN SJRY ACCOUNTS BALANCES– SHORT SHOWN - UNACCOUNTED AMOUNT – NEEDS RECTIFICATION - Rs.66, 233/-

As verified from the annual account of the MP for the year 2006-07 the closing balance of the SJRY grant as on 31-03-2007 was Rs.5,53,552/-, but the same was not carried forward as opening balance to the 2007-08 annual account. On verification of the Cash book Pass books (S.B.I. & S.V.G.B.) and note file of the SJRY grant dt.19-09-08 and the following defects were noticed.

1. The Cash book has not been reconciled from years together and no closing balances are arrived at even at the end of the financial year.

2. As against the balance of Rs.5,53,552/- as shown in the annual account of

2006-07, an amount of Rs.4,87,319/- only was available in the Banks as verified from the pass books resulting in a shortage of Rs.66,233/-, which was unaccounted for.

The balances as shown in the pass books of the SJRY grant were as follows:

a) S.B.I. Kurupam (A/c No.1163583254): Rs.4,59,525/-

b) S.V.G.B. Jiyyammavalasa (A/c.No.130): Rs. 27,794/- ------------- Total: Rs.4,87,319/- Balance as per annual account: Rs.5,53,552/- ------------- Difference amount which was unaccounted: Rs.66,233/- -----------

The cash book needs to be reconciled with the pass books every year before producing them to the audit. (Para No.17 of the AR on the accounts General Funds of MP, Jiyyammavalasa, Vizianagaram District)

1.2.2. MP, RAJEMPETA, KADAPA DISTRICT - DIFFERENCE BETWEEN CASH BOOK AND ANNUAL ACCOUNT – IMPROPER EXHIBITION OF ACCOUNTS

There was a difference between closing balances of annual account and

cash book of all funds as shown below. The accounts would need to be reconciled.

18

(Para No.1 of the A.R. on the A/cs of General Fund, Rajempet M.P., Kadapa District)

1.2.3. MP, DORNAKAL, WARANGAL DISTRICT - VARIATION IN ACCOUNTS – SHORT TOTALS IN TREASURY PASS BOOK – NEEDS RECTIFICATION Rs.10120/-

It was noticed that the closing balance as per cash book of Elementary

Education Fund was Rs.11626 as on 31-03-2006 where as it was shown in Treasury pass book as Rs.1506. There is a difference of Rs.10120 between the cash book and pass book. The discrepancy was existing for the last five years which needs immediate rectification. (Para No.1 of the A.R. on the A/c Elementary Education Funds of M. P. Dornakal, Warangal District )

1.2.4. MP, HAYAT NAGAR, HYDERABAD, RANGA REDDY DISTRICT -

VARIATION BETWEEN CASH BOOK AND PASS BOOK SINCE 2006-07 NOT YET RECTIFIED - Rs.10,99,417/-

It was noticed to audit that there was a variation between Cash Book and

Pass Book of General Funds during the year under report as follows:

No effort was made to reconcile the difference.

(Para No.1 of the AR on the A/c of MP, Ranga Reddy District ) 1.2.5. MP, KEESARA, HYDERABAD, RANGA REDDY DISTRICT -

VARIATION BETWEEN CASH BOOK AND PASS BOOK SINCE 2006-07 NOT YET RECTIFIED RS.1099417/-

It was observed that closing balance as per annual account of previous year 2006-07 i.e., as on the 31-03-2007 was Rs.1746696/- which was not in agreement with the closing balance of Treasury Pass Book. The difference of Rs.186142/- needs reconciliation.

(Para No.1 of the AR on the accounts of MP, Keerasa, Ranga Reddy District)

Closing balance as per cash book as on 31-03-2008 Rs.1947393.49

Closing balance as per annual account as on 31-03-2008 Rs.1974835.99

Discrepancy (-)27258

C.B. of Cash Book 15442443 Add: Uncashed Cheques 31500 15473943 C.B. of Pass Book 16573360 Difference Rs. 1099417 Excess balance available with STO

Closing Balance of annual account as on 31.03.2007 Rs.1746696/- (-) Elementary Education Fund Rs.1514064/- Rs.232632/- Closing Balance of Pass Book Rs.46490/-

Difference Rs.186142/-

19

1.3.1. GP, ATTILI, WEST GODAVARI DISTRICT - DIFFERENCE BETWEEN TOTAL RECEIPTS INCLUDING OPENING BALANCE AND TOTAL CHARGES INCLUDING CLOSING BALANCE

On verification of Treasury Pass Book for the year 2007-08 of GPh,

Attili, it was noticed that the total Receipts including Opening balance was Rs.4227288.73 and Charges including Closing Balance was Rs.41,86,229.73. Thus a sum of Rs. 41,059/- was found as difference between Receipts and Charges Account. ( Para No. 1 of the AR on the accounts of GP, Attili , West Godavari District )

1.3.2. GP, NAGIREDDIPALLI, KADAPA DISTRICT - SFC GRANT -

DIFFERENCE BETWEEN CLOSING BALANCES OF CASH BOOK AND PASS BOOK

The Closing Balance of SFC Grant was not in agreement with Closing Balance of Receipts and Charges statement submitted by the GPh as shown below.

Closing balance of the Cash Book Rs.1,44,696 Closing balance of the Pass Book Rs.1,32,453

Difference Rs. 12,243 The difference needs reconciliation . ( Para 1 of the AR on the accounts of GP, Nagireddipalli, Kadapa District )

1.3.3. GP, RAVICHERLA KRISHNA DISTRICT - SFC FUNDS – WRONG

AMOUNT TAKEN AS OPENING BALANCE

The closing balance of S.F.C. Funds as on 31-3-2006 as per Cash Book of Ravicherla GPh for the year 2006-07 was Rs.12,075-00, but Rs.10,075-00 was taken as opening balance as on 1-4-07 . The variation of Rs.2,000-00 between the closing balance and opening balance would need to be rectified. ( Para No. 19 of the AR on the accounts of GP, Ravicherla, Krishna District )

1.3.4. GP, GOPAVARAM , KRISHNA DISTRICT - DIFFERENCE BETWEEN CLOSING BALANCE AND OPENING BALANCE

The opening balance in the Receipts and charages statement as on 1-4-07 was shown as Rs.39,470/-. But as per the AR the closing balance in the Receipts and Charges for the Year 2006-07 was Rs.58,921/-. Thus there is a difference of Rs.19,451/- between the closing balance and opening balance. Early action would need to be taken to reconcile the figures and fact intimated to audit. ( Para No. 16 of the AR on the accounts of GP, Gopavaram, Krishna District )

1.3.5. GP, ALLURU, KRISHNA DISTRICT - DIFFERENCE BETWEEN CLOSING BALANCE AND OPENING BALANCE

The closing balance as per the AR on Genral funds as on 31.3.2007 was Rs.44,247/-. But the Opening Balance in the Cash Book as on 1.4.2007 was shown as Rs.31,443/-. Thus there was a variation to the tune of Rs.12,804/-. The reasons for variation were not explained in audit.

( Para No. 7 of the AR on the accounts of GP, Alluru, Krishna District )

20

1.3.6. GP, GUNTALA, ANANTHAPURAM DISTRICT - VARIATION IN CLOSING BALANCES OF CASH BOOK AND TREASURY PASS BOOK

The closing balance between the Treasury Pass Book and Cash Book as on

31.3.2008 are not in agreement with each other as shown below. Particulars Amount

in Rs. Closing Balance of Cash Book as on 31.3.2008 6,058.78 Closing Balance of Treasury Pass Book as on 31.3.2008 7,650.78

Difference 1,592

( Para No. 2 of AR on the accounts of GP, Guntala, Ananthapuram District ) 1.3.7. GP, DONDAPUDI, VISAKHAPATNAM DISTRICT - VARIATION IN

CLOSING BALANCES OF CASH BOOK AND TREASURY PASS BOOK

It was noticed that the Closing Balance as per the Cash Book for the year

2007-08 of General Funds was not in agreement with the Closing balance of the Treasury Pass Book as on 31.3.2008.

Particulars Amount in Rs.

Closing Balance of Treasury Pass Book as on 31.3.2008 1,44,788.85 Closing Balance of Cash Book as on 31.3.2008 1,31,671

Difference 7,107.85

( Para No. 3 of AR on the accounts of GP, Dondapudi, East Godavari District ) 1.3.8. GP, GADDAPOTHARAM, MEDAK DISTRICT - AMOUNT NOT

DEBITED FROM PASS BOOK

An amount of Rs.44,807/- was drawn through cheque No.435882, dt.6.7.2007 and spent towards Wages and other contingencies, but the said amount has not been debited in the Pass book leading to excess balance in the pass book. The Executive Authority has to take the matter to the notice of the Sub-Treasurty Officer, Naraspur for rectification of the error.

( Para No. 1 of AR on the accounts of GP, Gaddapotharam Medak District )

1.3.9. GP, BOLLARAM, MEDAK DISTRICT - AMOUNT OVERDRAWN WITHOUT SUFFICIENT BALANCE IN THE ACCOUNT – NEEDS IMMEDIATE RECTIFICATION

An amount of Rs. 14,95,070/- was overdrawn without the actual balance in

the pass book. Neither the Executive Authority nor the Treasury Authority did watch the balance before encashment of the cheques. It is a glaring lapse on the part of the Treasury authorities in allowing the over drawls by the Executive Authority. A letter No.970/DA/SRD-08-09 dated 21.11.2008 while marking a

21

copy to STO, Narasapur, was addressed to the Deputy Director, District Treasury, Medak District at Sangareddy to look in to the matter and to send the true extract of the ledger account of the GP Bollaram for the year 2007-08. But no reply was furnished till the date of this report.

( Para No. 1 of AR on the accounts of GP, Bollaram, Medak District )

2. EXCESS UTILISATION OF GRANTS

The state Government releases grant-in-aid to PRIs to meet expenditure on

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

Rupees 1326.91 lakhs has been spent in excess in all PRIs in 7,773 instances Statement No.9(2). A few such instances are given hereunder.

2.1. 1 EXCESS UTILIZATION OF GRANTS- EXPENDITURE IN EXCESS OF

GRANT RECEIVED- IRREGULAR

During the course of audit it was noticed that the expenditure was incurred in excess of the grants received from the Government on the following heads. A few such instances are shown under:

Sl. No.

Name of the ZP

Name of the Grant Rs.

Expenditure incurred

Rs.

Excess Expenditure incurred

Rs.

Para No. of AR

1 2 4 5 6 7

1. Kadapa

TA & Contingent 214804 60704

6 TA to ZP Staff 386874 313674

Honorarium to ZPTC

27000 27000

2. Srikakulam

T.A. 198675 143475 8 Contingent 561987 561987

Pensions 1741367 1741367 2.2.1 MPs- EXCESS UTILIZATION OF GRANTS- EXPENDITURE ON T.A.,

STATIONARY,HONORARIUM ETC., IN EXCESS OF GRANT RECEIVED- IRREGULAR

It was noticed during the audit that excess expenditure was incurred over

the grant received for heads like T.A., Stationary, Honorarium etc. in anticipation of receipt of further grant.

As per the Govt. instructions issued in G.O. Ms. No. 704 PR & RD Dept.

dt.5-11-95 no item of expenditure shall be sanctioned by the MP Development Officer unless it is covered in budget and prior sanction of the competent authority

22

(approval of general body of the MP ) for amount excess drawn more than the receipt of the grant up to the extent of percentage prescribed in G.O. Ms. No.447 PR&RD dept. dt.16-10-98 of the general revenue of the MP has to be obtained.

The excess expenditure incurred without receipt of the grant would need to

be got reimbursed and credited to MP funds and credited challans produced for audit.

A few such cases are shown below which are exceeding Rupees 50000/-:

Sl. No.

Name of the MP & District

Name of the Grant

Grant Received

Rs.

Expenditur incurred

Rs.

Excess Expenditur

incurred Rs.

Para No.

1. Karapa, East Godavari District

TA & Contingent 12755 65483 52728 7

2.

Kondapuram, Nellore District

TA to Staff 2000 29000 27000

4

Contingencies 2000 14851 12851 Postage & Telephone 1000 18229 17229

Stationary 1040 24513 23473 TA & DA to non

officials 96730 38250 54480

3.

Kavali, Nellore District

TA to Staff 4400 22928 18528

4

Contingencies 4400 95362 90962 Postage & Telephone 2200 42021 39821

Stationary 2290 3604 1314 TA & DA to non

officials 31317 20600 10717

4.

Gudur, Nellore District

Contingent 21346 223850 202504 2

5.

Vidavalur, Nellore District

TA to Staff 5210 25500 20290

4

Contingencies 4000 30269 26269 Postage 2000 3000 1000

MPP Honorarium 6400 13500 7100 Stationary 2080 8483 6403

Pump Mechanic wage - 22940 22940

TFC Grant 69770 119547 49777 Postage 2000 2386 386

2.3.1. GRAMA PANCHAYATS - EXCESS UTILIZATION OF GRANTS -

EXPENDITURE ON SALARIES OF THE GRAMA PANCHAYAT STAFF IN EXCESS OF GRANT RECEIVED- IRREGULAR

It was noticed during the audit that expenditure towards salaries of staff of

some Grama Panchayats was in excess of the grant received for the same purpose. The excess amount was drawn from the General Funds of the Grama Panchayat which is irregular.

A few such cases are shown below which are exceeding Rupees 20000/-:

23

Sl. No.

Name of the Grama Panchayat &

District

Grant Received

Rs.

Expenditure incurred

Rs.

Excess Expenditure

incurred Rs.

Para No.

1. Yadida, East Godavari District

546891 621594 74703 1

2. Sangam, Nellore District 24,594 121905 97311 2

3. Podalakur, Nellore District 92106 155491 63385 2

4. Viswanatharaopeta, Nellore District 83052 208199 125147 1

5. Bayyaram,Khammam District 239400 580933 341533 2

3. DIVERSION OF GRANTS

The PRIs viz., ZPs, MPs 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. These bodies also earn income by taking up some remunerative enterprises. In case of GPs, they 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.

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 ‘Excess Utilisation of Grants’.

A Consolidated Statement No. 9 (3) of Diversion of Funds and Grants

Excess Utilisation of Grants/Funds is appended to the Report from which it could be seen that an amount of Rs. 1085 lakhs was pointed out in 2222 audit paras

However, such cases were pointed out under the caption 'Excess Utilisation of Grants'.

24

ZILLA PARISHADS

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 ZP 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 ZP, its Standing Committee and TA to the Chairman and Vice Chairman of ZP and any item of expenditure directed 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.

As per the orders issued by Government in G.O.Ms.No. 446 of PR & RD (Progs. III) Department dated 29-10-1998, the general funds of the ZP shall be earmarked and spent as indicated below:

For upgradation, maintenance and restoration of the existing assets including

Minor Irrigation sources 35% For the Welfare of

a)S.Cs 15% b) STs 6% c) Women Development & Child Welfare 15%

For drinking water in emergencies 9% For office management, office equipment, establishment

Expenditure 16%

For unforeseen contingencies such as activities of Public Welfare, Contributions to Sports Festival, Cultural Programmes etc. 4%

It was further ordered that for expenditure, which falls out side the

purview of the above categories and ceiling prescribed, prior permission of government was needed.

An amount involving of 1085.95 lakhs has been diverted in 2222 instances – (Statement No.9 (3).

A few of such cases where diversion of Funds/Grants was pointed out in the relevant ARs are reported hereunder.

3.1. 1. ZP, GUNTUR - DIVERSION OF AMOUNT – FROM EDUCATION

CONTINGENCIES - TO ACDP WORKS– IRREGULAR – NEEDS REIMBURSEMENT Rs. 1,16,250/-

An amount of Rs. 1,16,250 /- was paid in the Vr No: 12/ 6-9-2007, M.B

No: 846 A/ 03-04 to the ACDP work of improvements to the “Shadhikhana” in Pandurangapeta of Tenali from 2 % Education contingencies amount during the

25

year under report. Immediate action would need to be taken to transfer the amount from ACDP grant to education contingencies. (Para No.5.3 of AR on the accounts of ZP EE PR funds, Tenali, Guntur district)

3.1.2. ZP, MAHABOOBNAGAR - PRINTING OF PRAJAPATHAM PROGRAMME

FLEX BANNERS FROM ZP GENERALFUNDS- IRREGULAR Rs. 17,280/-

It was noticed in audit that, an amount of Rs. 17,280-00 was drawn and

incurred vide vr No: 165 Dt: 21-6-07 towards printing of 64 flex Banners for the purpose of Prajaptham programme held at Mandals.

But there is no provision to incur such expenditure.The CEO, Z.P placed

orders with M/s Himalaya digital colour printers Chikkadapally, Hyderabad contrary to Govt., orders.

(Para 5 of AR on the accounts of ZP General Funds, Mahaboobnagar District)

3.2. MANDAL PARISHADS

Under Rule 35 of the Rules issued in G.O.Ms.No. 704 of PR & dated 5-11-1994 specifying the purposes to which the MP Fund might be applied, a MP shall not without the previous sanction of government divert even temporarily any of the following earmarked funds for purposes other than those for which they are collected or allotted.

i) Funds collected for the opening and maintenance of Elementary schools. ii) Special State grants sanctioned for specific purposes of Agriculture,

Animal Husbandry, Fishers, Health and Rural Sanitation. iii) Receipts derived from the sale of capital assets.

iv) Income from endowments and trusts.

v) Deposits including GPF

vi) Funds relating to institutions and schemes transferred to the MP by

government or Heads of Department of the government.

vii) Funds relating to the programmes entrusted by other departments.

viii) Grants from All India bodies and institutions for the specified purposes of development of Cottage and Village industries Khaki, Silk, Coir, Handicrafts and the like.

ix) Funds allotted to scheduled Castes House sites or other programmes

intended for amelioration of Scheduled Castes & Tribes.

26

Further government ordered in their G.O.Ms.No. 447 of PR & RD (Progs. III) Department dated 29-10-1998, that the general funds of MPs should be earmarked and spent as indicated below:

1. For upgradation, maintenance and restoration of the existing assets including Minor Irrigation sources :35% 2. For the Welfare of a) Scheduled Castes :15% b) Scheduled Tribes : 6% c) Women Development & Child Welfare :15% 3. For drinking water in emergencies : 9%

4. For office management, office equipment, establishment Expenditure :16%

5. For unforeseen contingencies such as activities of Public Welfare, Contributions to Sports Festival, Cultural Programmes etc. : 4% Government further ordered that expenditure which falls outside the purview of the above categories and ceiling prescribed needs prior permission of the Government.

3.2.1. MP, MANDAMARRI, ADILABAD DISTRICT - UNSPENT ALANCESOF

GRANTS TRANSFERRED TO MISCELLANEOUS ACCOUNT IRREGULAR - Rs. 122309/-

On verification of the records during the course of audit the unspent

balances in the following heads of accounts were transferred to miscellaneous account maintained by the MP which is irregular.

Early action would needs to be taken to reimburse the same to the

concerned heads under intimation to audit. ( Para No. 10 of the AR on the accounts of MP, Mandamarri, Adilabad District)

Sl. No Head of account Vr.No& dt

Amount transferred to Miscellaneous A/C No.

5996 SSGB RS.

Date of Adjust ment

1 Neeru Meeru 1/10-5-07 23841/- 15-5-07 2 15% E.M.F.F. 2 P 1/10-5-07 3382/- 15-5-07 3 Nodal Officer 1/11-5-07 674/- 15-5-07 4 MPLAD (A/c 5947

SSGB) 1/10-5-07 29336/- 15-5-07

5 MPLAD (A/c No.6626 SSGB)

1/10-5-07 65076/- 15-5-07

Total 122309/-

27

3.2.2. MP, ACHAMPET ,MAHABOOBNAGAR DISTRICT - AMOUNT DRAWN FROM M.P. FUNDS AND EXPENDITURE INCURRED TOWARDS INDIRAMME SAMBARALU ETC., - NEEDS RE-IMBURSEMENT RS. 72,538-00

An amount of Rs. 72538-00 was drawn on the following vouchers and expenditure was incurred towards Jeep Hire charges ,meetings pertaining to Indiramma programmes. Incurring of expenditure towards Indiramma programmes from MP General Funds is irregular. Few example here given below.

Sl. No Vr No & Date Details Amount Rs.

1 81/2-5-07

Hire charges paid ( 2 ) Jeeps engaged on 14-4-2007 in Achmpet Mandal surrounding ( 3 ) Villages Prajaptham Programme in connection with Indiramma program Phase I & II

2,700-00

2 187/ 10-9-07 Tent House charges for conducting of Indiramma program on 30-8-07 3,520-00

3

194/ 1-10-07

212/ 11-10-07

2500 Rice Packets @ Rs.8/- each Indiramma meeting “ Indiramma Sambaralu” held on 29-9-07 Xerox and Documentation charges of Indiramma programme

20,000-00

3,562-00 4 224/ 2-11-07 Mike set charges 640-00

5 227/ 8-11-07 Amount paid to supply company and Royl sounds Achampet towards Indiramme Sambaralu held in Market Yard on 29-9-07

18,000-00

(Para No. 11 of the AR on the accounts of MP, Achampeta, Mahaboobnagar Dist)

3.2.3. MP,BALKNOOR,MAHABOOBNAGARDISRICT-DIVERSION OF FUNDS

– EXPENDITURE ON ITEMS OTHER THAN PERMISSIBLE - NEEDS REIMBURSEMENT RS. 48,510/-

During the course of audit it was noticed that an amount of Rs. 48,510-00 was spent on items other than permissible as per the guidelines issued vide Govt. Orders No: 447 PR & RD Department Dt: 29-10-2-1998 and standing instructions issued by Government from time to time as detailed below.

Sl. No.

Vr No & Date Details Amount Rs.

1. 2/ 28-4-07 DTP Job work for Indiramma 1500-00 2. 9/28-4-07 Indiramma Committee Training to

Sarpanches 4000-00

3. 18/18-6-07 Indiramma phase – II ( 6 ) villages Housing list & xerox

3600-00

4. 80/ 13-2-08 BRGF Indiramma Phase – II Photos bills & lists

4800-00

5. 78/ 13-2-08 BRGF Indiramma Phase – II Photos bills & Lists

4450-00

6. 86/ 29-2-08 Housing bill paid to MPDO for the period from 10/07 to 2/08

50000-00

7. 93/ 26-3-08 Indiramma Phase – II Village Housing 5160-00

8. 55/ 6-12-08 Idiramma Sambaralu 20,000-00 48,510-00

(Para No. 10 of the AR on the accounts of MP, Balanoor,Mahaboobnagar District)

28

3.2.4. DIVERSION OF SGRY FUNDS: IRREGULAR - It was observed in audit that in many of the MPs, the SGRY Funds were

utilized for other than permitted purposes. A few of such instances are mentioned below.

Sl. No

Name of MP & District

Name of Fund

Para No. In

A.R.

Purpose for which diverted Vr.No Amount

1 Done, Adilabad District SGRY II 6 Indiramma

Sambaralu 10/25-9-

2007 3,750

2 Wankidi, Adilabad District SGRY II 23 MPTC Training

doves 3/12-2-08 15,000

3 Mandamarri, Adilabad District SGRY I 9

Election Expenditure GP/MPTC

1/1-12-07 2/1-1-08

12,000 8,000

4 Bhainsa, Adilabad District SGRY II 4

Jeep Hire Charges/ stationary Borewell Material

11/3-08 12/3-08 13/3-08

16,000 3,500 7,200

3.2.5. DIVERSION OF EARMARKED FUNDS PAYMENT OF JEEP HIRE CHARGES AND

OTHER CHARGES

It was observed in audit that in many of the MPs, the ear marked Funds were utilized for other than permitted purposes. A few of such instances are mentioned below.

Sl.No

Name of MP/District

Diverted From which

fund

Para No.

Vr.No Amount Rs. Purpose

1 Kalamadugu, Adilabad District

Drought / ISL Fund 7 2/3/2008

3/3/2008

5200 2,600 7,800

Jeap Hc & DTP

2 Kalamadugu, Adilabad District MP Lads 5 1-4-07 18,180 Jeap Hc &

DTP

3 Indravelli ,Adilabad District SFC 16

1/6-2007 9/3-2008 10/3-2008

9,000 13,000 13,000

Jeap Hc & DTP

4 Thallada, Khammmam District

ISL 2 1/17-5-07

10,300 Indirmma Adarsala

Trg. Cleanses.

5 Kamavarapu, Kota, West Godavari District

SGRY 128 - 25,950 Draght

works

3.3. GPs

As per Section 75 of the Andhra Pradesh Panchayat Raj Act, “the purposes to which the GP fund may be applied include all objects expressly declared obligatory or discretionary by the Act or any Rules made there under and the fund shall be applicable thereto the village to such rules or special orders as the government may prescribe or issue and shall, subject as aforesaid be applicable to

29

such purposes outside the village, if the expenditure is authorized by this Act or specifically sanctioned by the Commissioner, Panchayat Raj. Under Section 45 of the Andhra Pradesh Panchayat Raj Act, it shall be the duty of a GP within the limits of it funds to make reasonable provisions for carrying out the requirements of the village in respect of the following matters, namely

1. The construction, repair and maintenance of all buildings vested in the GP

and of all public roads in the village (other than the roads vested in the MP and ZP and the roads classified by the government as National and State Highways and of all bridges, culverts, road dams and cause ways on such roads.

2. The lighting of public roads and public places.

3. The construction of drains and their maintenance and the disposal of

drainage water and sullage.

4. The cleaning of streets, removal of rubbish heaps, jungle growth and prickly pear, the filling of the disused wells, sanitary ponds, pools, ditches, pits or hollows and other improvements to the sanitary condition of the village.

5. The provision of public latrines and arrangements to clean latrines whether

public or private.

6. The opening and maintenance of cremation and burial grounds and the disposal of unclaimed dead bodies of human beings or of animals.

7. Preventive and remedial measures connected with any epidemic or with

malaria etc.

Further as per Section 46 of the Act, a GP may also make such provision as it thinks fit for carrying out the requirements of the village in respect of the following matters, namely,

1. The planting and preservation of grooves and trees on the sides of roads and other places.

2. The promotion and development of Pre-Primary Education, Elementary

Education. Social and Health Education, Cottage Industries and Trade.

Thus the GP fund can be utilised for the obligatory as well as optional functions. Expenditure not falling within these functions will be extraordinary and can be met only with the sanction of Commissioner, Panchayat Raj. But it was observed in audit that GPs’ funds are spent for purposes other than those mentioned above. A few of such cases are reported hereunder:-

30

3.3.1. GPs :HUSUNABAD, KARIMNAGAR DISTRICT - DIVERSION OF SGRY SCHEME FUNDS TO GENERAL FUNDS

An amount of Rs. 80,457-00 was drawn and transferred to GP General

Funds vide Challan No: 671/18/2007 even after the expiry of the SGRY Scheme and utilized for the year 2007-08. The remaining amount of Rs. 15,000-00 was drawn and utilized for the construction of the side drains in 5th ward vide MB No: 1527/BK/2005, Page No: 38.

The diversion of SGRY Funds for other than permissible purposes is highly irregular.

(Para No. 2 of the AR on the accounts of Grama Panchayat, Husunabad, Karimnagar District)

3.3.2. GP, TIRUMALAGIRI, NALGONDA DISTRICT- EXCESS AMOUNT

DRAWN FOR THE SALARIES THAN THE SALARY GRANT RELEASED – NOT REIMBURSED TO THE GENERAL FUNDS Rs. 1,29,931-00

An amount of Rs. 2,67,931-00 was drawn and paid to the regular scale post salaries according to the cash book. But an amount of Rs. 1,38,000-00 only was released as salary grant by the Government . As such the amount of Rs. 1,29,931-00 was diverted from the General Fund amount which is not in order. (Para No.6 of AR on the accounts of G.P.,Tirumalagiri, Nalgonda District)

3.3.3. GP, KRISHNAPURAM, KURNOOL DISTRICT - SGRY FUNDS OF GP DIVERTED TO GENERAL FUNDS

An amount of Rs. 21,000 was drawn in Vr. No 301961/ 3013198 from

SGRY of Funds to General Funds to meet the expenditure in the MP which is irregular . (Para 4 of AR on the accounts of GP, Krishnapuram,Kurnool District )

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

Government release special grants to the PRIs for implementing specific

schemes. These grants are to be utilised for the purposes for which they are meant for following the guidelines issued / norms prescribed and such utilisation 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, upto 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

31

can be utilised on or before 30 tth September of 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. 9 (4) of Non-utilisation of Funds before

Lapsable Date is appended to the Report from which it could be seen that an amount of Rs. 1318.26 lakhs was pointed out in 16049 audit paras

A few of such cases pointed out in the ARs of the local bodies are detailed hereunder.

4.1. ZP, MAHABOOBNAGAR - GRANTS AMOUNT LAPSED DUE TO NON-UTILISATION.

Government in their orders issued in G.O.Ms.No.666 P.R. (Acts) Dept., dt.13.6.1978 extended the period of utilisation 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 end of next Financial year.

There are certain grants for which this facility has not been extended any they are lapsed at the close of the Financial year. Taking into consideration of these orders it was noticed that the following amount were made to lapse without making full use and accomplishing the benefits expected.

Sl.No. Purpose of the Grant

Authority releasing

Amount released

Amount lapsed

1 15% S.C. EMF 2/3rd Amount CEO, ZP 5075414 2774669

2 15% W & CW ZPGF 7613121 792207 The amount so lapsed was also not refunded back to the Government

account which is against the provisions regulating the grant-in-aid as required in para 5 of G.O.Ms.No.666 P.R. (Accts.I) Dept., dt.13.8.1978 and as per Articles 211-A(3) of A.P. Financial code vol-I. (Para no.6 of AR,ZP, Mahaboobnagar for the year 2007-08)

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 utilisation 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.

32

A Consolidated Statement No. 9 (5) of Mis-utilisation of Grants/ Funds is appended to the Report from which it could be seen that an amount of Rs. 1118.08 lakhs was pointed out in 1252 audit paras

A few of such cases are mentnioned hereunder .

ZPs, MPs and GPs are in receipt of Grants-in-Aid from the Government for specified purposes to be spent within a prescribed time and they furnish Utilization Certificates for the grants so utilized.

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.

Many cases of Mis-Utilisation of funds / grants were noticed in audit and a

few of them are mentioned below.

5.2.1 EXPENDITURE INCURRED FOR PURPOSES OTHER THAN ENVISAGED IN THE GOVERNMENT ORDERS

Government in G.O.Ms.No. 704 PR & RD Deptt, dt. 5-11-1994 have

prescribed purposes for which the MP Fund shall be spent. However, contrary to the instructions issued expenditure was incurred in many MPs for purposes other than those envisaged in the said G.O. The expenditure thus incurred in violation of the instructions contained in the said G.O. was deemed to be mis-utilized.

The following are some of the instances of mis-utilization of funds,

noticed during the audit scrutinuy of MPs for the year 2007-08.

S.

No. Name of the

MP District Purpose for which expenditure was

incurred

Amount

Para No.

1 Nirmal Adilabad Conducting volley ball tournament 19920/- 6

2 Kuntala Adilabad

Printing and other expenditure relating to Indiramma Programme, Training to non officials

31755/- 2

3 Chintakani Khammam Ward members training programme 16720/- 3.1

33

4 Paloncha Khammam Education Advance to ineligible persons 3000/- 3

5 Anakapalli Visakhapatnam

Pay and allowances of MP staff paid from General Funds instead of Treasury

10378/- 6

Early action may be taken to make good the mis-utilized funds from the

person or persons responsible by initiating appropriate action.

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.

1. For S.C.s : 15% 2. For S.T.s : 6% 3. 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 utilised for the benefit of the S.C.s, S.T.s and Women and Children respectively. The balance of 2/3rd funds shall be utilised by the ZPs / MPs 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 ZPs / MPs. 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.

A Consolidated Statement No. 9 (6) of Non-utilisation of Earnmarked Funds is appended to the Report from which it could be seen that an amount of Rs. 1453.54 lakhs was pointed out in 2512 audit paras

The defects relating to Non-Utilisation of Earmarking Marking Funds were pointed in the relevant ARs a few which are shown below.

34

6.1.1 ZPs - EARMARKED FUNDS – NON-UTILISATION – NON-TRANSFER OF EARMARKED FUNDS

Though there are clear instructions issued by Government for transfer of

1/3rd amount of earmarked funds and the unspent balances of remaining 2/3rd of earmarked funds to the respective Schedule Castes, Schedule Tribes and Women and Child Welfare Corporations respectively vide G.O.Ms.No.446 & 447, P.R.&R.D. (Programme.III) Department, dated: 29-10-1998 and G.O.Ms.No.38 Women Development and Child Welfare Department, dated : 29-05-1998 read with G.O.Ms.No. 704 of P.R. & R.D. Department, dated: 05-11-1994, the following amounts remained unutilized and untransferred from the funds earmarked for the welfare of SCs, S.Ts. and Woman & Children from the General Funds at the rate of 15%, 6% and 15% respectively.

1/3rd of Earmarked Funds

S.No.

Name of the ZP

Category of

earmarked funds for

Total amount

earmarked

1/3rd share to be

transferred

Amount transferred

Balance to be

transferred

Rs. Rs. Rs. Rs.

1 Mahaboob Nagar

SCs 76,13,121 25,37,707 0 25,37,707 STs 30,45,249 10,15,083 0 10,15,083

2 Medak W&CW 89,52,000 29,84,000 0 29,84,000 3 Nalgonda SCs 71,22,802 23,74,267 20,47,900 3,26,367 4 Khammam STs 19,40,687 6,46,896 0 6,46,896

Total Rs. 4,12,05,859 1,37,35,286 62,25,233 75,10,053


S.No.

Name of the ZP

Category of

earmarked funds for

Total amount

earmarked

2/3rd earmarked to

be spent

Amount incurred

Balance to be

transferred Rs. Rs. Rs. Rs.

1 Mahaboob Nagar

SCs 76,13,121 50,75,414 0 50,75,414 STs 30,45,249 20,30,166 0 20,30,166

2 Medak SCs 89,52,000 59,68,000 0 59,68,000 STs 35,80,000 23,86,667 0 23,86,667

W&CW 89,52,000 59,68,000 0 59,68,000 3 Nalgonda SCs 71,22,802 47,48,535 16,98,740 30,,49,795 4 Khammam STs 19,40,687 12,93,791 4,00,000 8,93,791

Total Rs. 4,12,05,859 2,74,70,573 20,98,740 2,53,71,833

Thus an amount of Rs.75,10,053 towards 1/3rd share and Rs.2,53,71,833

towards unspent amount of 2/3rd share of earmarked funds was not transferred in 2007-08 to the respective corporations.

6.2.1 MPS - EARMARKED FUNDS – NON-UTILISATION – NON-TRANSFER

OF EARMARKED FUNDS.

The following amounts earmarked for the welfare activities of the SCs, STs & Women and Children from the general funds of the MPs for the year 2007-08 as laid down under Rule.3 & 4 of the Rules framed under “purposes for which funds shall be applied” issued in G.O.Ms.No.446 P.R. & R.D. (progs.III)

35

Department, dated: 29-10-98 read with G.O.Ms.No.579 PR & RD Department, dated: 16-04-2002 under the A.P. P.R. Act 1964 were left unutilized and the purpose for which these funds were earmarked was defeated.


S.No.

Name of the MP / District

Category of

earmarked funds for

Total amount earmark

ed

1/3rd share to

be transferr

ed

Amount

transferred

Balance to be

transferred

Rs. Rs. Rs. Rs.

1 Manidakudurur, East Godavari SCs 231204 77068 39420 37648

2 Rajanaram, East Godavari SCs 1062930 354310 0 354310

3 Peddapadu, West Godavari

SCs 242696 80899 72899 8000 STs 97078 32359 29124 3235

4 Dondaturu, West Godavari

SCs 245719 81906 0 81906 STs 98288 32763 0 32763

5 B.V.Peta, Prakasam

SCs 90183 30061 0 30061 STs 36073 12024 0 12024


S.No.

Name of the MP / District

Category of

earmarked funds

for

Total amount earmarke

d

2/3rd earmarked to be spent

Amount

incurred

Balance to be

transferred

Rs. Rs. Rs. Rs.

1 Manidakudurur, East Godavari SCs 231204 154136 0 154136

2 Rajanaram, East Godavari SCs 1062930 708620 0 708620

3 Penumata, West Godavari STs. 47158 31439 0 31439

4 Peddapadu, West Godavari

SCs 242696 161797 0 161797 STs 97078 64719 0 64719

5 Penrimurthy, West Godavari SCs 117896 78597 0 78597

The executive authority of MPs has neither made over 1/3rd of the

earmarked funds to the respective corporations nor utilized, the 2/3rd of the earmarked funds during the year 2007-08 nor made overall the balances to the respective finance corporations at the end of the year, defeating the purpose for which they have been intended to.

36

7. NON-COLLECTION OF DUES

On verification of Revenue Collections in Panchayat Raj institutions, Municipal Councils and Agricultural Market Committees 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 inspite 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. A case study of the amounts outstanding / time barred dues and dues which are likely to become time barred during the year 2006-07 in Panchayat Raj bodies and others is given below.

A Consolidated Statement No. 9 (7) showing audit audit objections on Non- collection of dues is appended to the Report from which it could be seen that an amount of Rs. 4332.11 lakhs was pointed out in 38751 audit paras

7.1.1 NON-COLLECTION / SHORT COLLECTION OF TAXES AND NON-TAXES IN PANCHAYAT RAJ INSTITUTIONS

In spite of huge official machinery and elaborate procedures, the collections of taxes, non-taxes, rentals, leases etc., from the revenue yielding properties of various institutions is not as desired. Huge amounts remained uncollected at the end of the financial year and the Executive Authorities allowed them to fall into arrears making the collection of the same much more difficult in the days to come. Timely collection of the dues as per the codal provisions is the responsibility of the Executive Authorities vested with the powers of collection and the same would reduce the dependence of the local body institutions on the grants released by the government and make them self reliant. The executive authorities failed to tap the independent resources fully. The following were a few instances where the amounts due were not realized in time.

7.1.2 ZILLA PARSIHADS - NON-COLLECTION/SHORT COLLECTION OF REVENUE – Rs.125.69 (LAKHS)

An aggregate amount of Rs.125.69 Lakhs was pending realization from the tenants/lessees towards rents, leases and other miscellaneous dues on the properties of ZPs as detailed below. The Executive Authorities did not take 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 needed to be taken to realize the outstanding amount from the revenue yielding properties of ZP.

37

Rs. In Lakhs

Sl.

No Name of the ZP and District Details of Revenue Para

No. Amount due

1 Z.P,Medak User charges 8 106.96

2 Z.P,Vijayanagaram Shopping complex- Rents 12 6.80

3 Z.P,Karimnagar Shopping complex- Rents 6(ii) 8.03

4 Z.P,Karimnagar Quarters Rent 6(i) 3.11

5 Z.P,Guntur Quarters Rent - 0.79

Total: 125.69 7.2.1 MPS - NON-COLLECTION/SHORT COLLECTION OF REVENUE –

Rs.4.39 (LAKHS)

During the course of audit, it was observed that, an aggregate amount of Rs.4.39 Lakhs of dues towards Shop rents, Quarter rents etc., was not collected and the same was allowed to fall into arrears. Action would need to be taken immediately to realize the dues from the concerned.

Rs. In Lakhs

Sl. No

Name of the Mandal Praishad

and District Details of Revenue Para

No. Amount due

1 Medchal M.P., Ranga Reddy Dt., Quarters Rents 3 0.32

2 Ibrahimpatnam M.P., Ranga Reddy Dt., Quarters Rents 13 2.96

3 Metpally M.P., Karim Nagar Dt.,

Shops/Quarters- Rents 5 0.75

4 Paderu M.P., Visakhapatnam Dt., Shop- Rents 12 0.36

Total: 4.39 7.3.1. GPs - NON-COLLECTION/SHORT COLLECTION OF TAXES AND

NON-TAXES –ALLOWED TO BECOME BARRED BY TIME – Rs.37.91 (LAKHS) :

On verification of Revenue Collections in Grampanchayats, huge amounts

remained uncollected for long periods and allowed to become barred by limitation of time. Appropriate action under Section 254 of A.P. Panchayat Raj Act, 1994 was not taken by the Executive Authorities before the dues became barred by limitation of time, as the same were not collected within three years from the date of demand, under Section 135 of A.P. Panchayat Raj Act, 1994. These dues cannot be recovered legally any more and constitute a permanent loss to these institutions.

38

The following were a few instances where the amounts due became time barred constituting permanent loss aggregating to Rs.37.91 Lakhs to the institutions.A few such examples were given below.

Rs., in Lakhs Sl. No

Name of the G.Ps., & District Details of Revenue Para

No. Amount due

01 Atmakur G.P., S.P.S. Nellore Dist

House Tax / Tap Fees / Road margin

encroachment fees 4 8.53

02 Giddaluru G.P., Ongole Dist. House Tax/Tap Fees 2 4.84

03 Kolimuru G.P., E.G. Dist House Tax / Water Tax / Tap Fees 2 2.72

04 Rajakonda G.P., Srikakulam Dist. House Tax 16 5.35

05 Jaggayapeta G.P., Krishna Dist.

House Tax / Water Tax / Advt. Tax / Shop

Rents 17 16.47

7.3.2 OUT STANDING DUES - NON-COLLECTION / SHORT COLLECTION

OF TAXES AND NON-TAXES – Rs.8.1 (LAKHS)

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

Rs. 8.1 Lakhs of dues towards Shop rents, auction amounts, leases of markets, usufruct etc., was not collected and the same was allowed to fall into arrears. Action would need to be taken immediately to realize the dues from the concerned. Few such examples were given below.

Rs. in Lakhs

Sl.

No Name of the G.Ps &

District Details of Revenue Para No.

Amount Due

01 Komaragiripatnam G.P., East Godavari Dist.

Non-Collection of Fish Auctions / Coconut

auctions / Market auctions 6 1.12

02 Mulugu G.P., Warangal G.P.,

Auction amounts Short Collection 2 (1) 0.40

03 Moparru G.P., Guntur Dist.

Auction amounts Short Collection 4 (a) 0.93

04 K.K.Addepally G.P., Mahaboobnagar Dist

Non-Collection of Tai Bazar / Animals Market

auction amounts 7 3.65

05 Jagireddigudem G.P., Khammam Dist.

Non-Collection of Cattle market 17 2.00

39

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 of misuse of advances to avoid refund of unspent amounts. Several objections were 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.

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.

A Consolidated Statement No. 9 (8) showing audit objections on

Advances Pending is appended to the Report from which it could be seen that an amount of Rs. 14276.06 lakhs was pointed out in 18343 audit paras

The following advances are pending with institution wise as detailed

below for the year 2006-07. ZPS

Sl. No. Name of the Institution Purpose of

Advance

Amount outstanding

(Rs.)

Para No.

1 Z.P. Ananthapoor Advanced towards TOT programme 28,000 7(2)

2 ZP. Guntur Advance Pending 63,927 6

3 ZP. Khammam Advances 1,905,959 10

4 ZP Kadapa TA Advances 5,000 44

5 ZP Kakinada Advance Pending 180,000

MPS


Advance

Amount outstanding

(Rs.)

Para No.

1 M.P. Jannaram Dist. Adilabad

Amount paid towards Advance 6,000 8

2 M.P. K.V. Palli Dist. Chittur

Advance paid to works 55,000 4

3 M.P.Nallapzolu Dist. Eluru -do- 55,432 14

4 MP. Veldurthi,Dist. Chittur Adv. Pending 10,000 0

5 MP. Vinukonda,Dist. Guntur HBA Advance 27,000 25

40

GRAMPANCHAYATS


Advance

Amount outstanding

(Rs.)

Para No.

1 G.P.IstapuramDist.Ananthpur

Advances paid for execution of works 84,000 20

2 G.P. Naspur,Dist.Adilabad Sanction of FA 18,000 20

3 G.P. Kandresha,Dist.Chittur TFC Funds 44,000 7

4 G.P. Pattipadu,Dist.Guntur ZGRY Funds 90,400 19

5 G.P. Annawarauulanka SGRY Funds 62,050 6

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 Panchayat Raj bodies 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 misunderstood or misinterpreted. Such irregular expenditure incurred was objected in the relevant ARs

A Consolidated Statement No. 9 (9) showing audit audit objections on Violatioin of Rules is appended to the Report from which it could be seen that an amount of Rs. 7638.62 lakhs was pointed out in 89570 audit paras

Some of such cases are mentioned hereunder.

9.1. ZPs 9.1.1.WORKS–AMOUNT PAID TOWARDS REPAIRS OF SUPERINTENDENT

OF POLICE BUNGALOW, KAKINADA– IRREGULAR – NEEDS REIMBURSEMENT- Rs.3,60,000/-

In voucher No.454/1-08, an amount of Rs.360000/- was drawn and paid to

Superintendent of Police, Kakinada vide Progs.R.C.No.A3/4954/2007 dated:2-1-2008 of the Chief Executive Officer, ZP, Kakinada towards making urgent repairs to Superintendent of Police Bungalow at Kakinada under 35% ZP General fund. As per section 196 of PR Act.1994, incurring of such expenditure from, ZP General funds is irregular as the Superindent of Police residence will not come under the purview of Panchayat Raj assets. The said amount needs to be reimbursed at once and credited to ZP General funds. (Para No.12(5) on the accounts of General Fund, Z.P. Kakinada,E.G. Dist. for the year 2007-08)

41

9.1.2. 12TH FINANCE COMMISSION GRANTS– DEPOSITED IN OTHER BANK – NOT TAKEN INTO CASH BOOK – IRREGULAR.

In Voucher No.129/6-2007 an amount of Rs.2,00,00,000/- was drawn from

the 12th Finance Commission Grant and invested as FDR in short term deposit at Andhra Bank, Ashoknagar, Kakinada on 30-06-2007 Vide Progs.RC.No.A8/913/206 dated:29-6-2007 of the Chief Executive Officer, ZP, Kakinada and the FDR was matured on 29-09-2007 and an amount of Rs.4,25,000/- was received towards interest on maturity of the FDR. But as per section 197 of Andhra Pradesh Panchayat Raj Act.1994, all moneys received by the ZP shall be lodged in treasury not in other banks. Hence the investment of Grants in other bank is irregular and violative of Government rules. Further as verified from the cash book the transactions relating to the encashment of FDR, accrual of interest and distribution of the amount were not taken into cash book which is highly irregular.

(Para No.12(11) on he accounts of General Fund of Zill Parishad, Kakinada , E.G.Dist for the year 2007-08)

9.1.3. WORKS – EXECUTION OF WORKS WHICH ARE NOT IN

FUNCTIONAL JURISDICTION – IRREGULAR. Rs. 1048722/-

As per the Government Orders issued in G.O.Ms.No.446 PR&RD dt:29-10-98, 35% of General Funds shall be utilized for up gradation and restoration of existing assets and not for the creation of new assets and the funds shall not be utilized for the works which do not fall within the functional jurisdiction of the ZP. But it was observed during the audit that the following works which do not fall within the functional jurisdiction of the institutions have been sanctioned and executed.

Sl. No. Vr.No&Dt Name of the work Name of the

Contractor Amount

Rs. M.B.No.

1 27/6-07 Construction of Bus shelter at Rejintal B.Rangareddy 197600 311BM

2 40/7-07 Construction of compound wall to Grave yard at Narayanakhed

M.A.Muqeet 335701 583BM

3 48/7-07

Construction of Gorrekapula Development centre at Jogipet

K.R.Mallaish, President , Shivalinga Sheep Coop Society

155450 631AM

4 93/11-07

Balance work of Reading Room at Bardipur MP Jharasangam.

G.Laxma Reddy 150000 393BM

5 98/12-07

Construction of side drains from srinivas House to Gouse House at Sangareddy

Jhonson R/o Sangareddy 209971 1945 AM

42

A Perusal of the above works reveals that these works fall in the functional jurisdiction of either GP or Municipality. The Municipality Sangareddy/GP Narayanakhed does have sufficient funds to meet such expenditure. The exigencies which warranted taking up of the works by the ZP, Medak are not known. Incurring expenditure for such works is irregular.

(Para no.6 of the AR on the accounts of EE (PR) Division Sangareddy, Medak District for the year 2007-08)

9.1.4. SAND AUCTION - AMOUNT RECEIVED IN ZP – NOT DISTRIBUTED

AMONG THE GRAM PANCHAYAS AND MPS – Rs.61,46,031/-

An amount of Rs.2,30,80,459/- was received towards seigniorage fees and cess through sand auctions conducted by the Mines & Geology Department in the district. According to G.O.Ms.No.255 PR dept. dt:2/8/2001, the above amount shall be apportioned @ 25% to GPs, 25% to ZP and 50% to MPs concerned by the ZP. But, in contravention of the rules the due shares were not allocated to the Grampanchayats and MPs which resulted in loosing the amounts and depriving the developmental activities to that extent as shown below.

Amount in Rs.

To be apportioned to

Amount to be allocated.

Amount allocated

Balance to be allocated

GPs 57,70,115 37,21,438 20,48,677

MPs 1,15,40,229 74,42,875 40,97,354

Keeping the amounts with ZP without distribution among Grampanchayats

and MPs is irregular and violation of Government Institutions. (Para No.18 of the A. R. on the General Fund a/ct of Z.P., Khammam for 2007-08)

9.1.5. SGRY - CONTINGENCIES – EXPENDITURE INCURRED OVER AND

ABOVE THE ADMISSIBILITY - Rs.179108/- An amount of Rs.4,87,00,000/- was adjusted to ZP, Srikakulam under

S.G.R.Y scheme and as per S.G.R.Y guidelines No.4-6, the ZP can use upto 2% of the Funds for contingencies for strengthening, monitoring and coordination.

But, contrary to the above instructions an amount of Rs.11,53,108/- was incurred instead of Rs 9,74,000 under 2% contingencies which is over and above the provision allowed under SGRY guidelines by Rs 1,79,108 which is irregular.

(Para No.7 of the A.R. on the accounts of Z.P. Srikakulam for the year 2007-08).

43

9.1.6. PURCHASE OF SYNTHATIC CARPET IRREGULAR THOUGH THERE IS BAN IRREGULAR - Rs.51,126/-

An amount of Rs.51,126/- was drawn and incurred towards purchase of a

synthetic carpet for the use of ZP though there is a ban imposed in the interest of health on purchase of such carpets vide G.O.Rt.No.1387, Fin&Plg (R.E) Dept. dt:27-6-1997 which is irregular and violation of the Government instructions.

(Para No.15 of the AR on the accounts of Z.P. Mabhabubnagar for the year 2007-08)

9.2. MPMPMPMPSSSS 9.2.1. PUBLICATIONS – ADVERTISEMENTS NOT ROUTED THROUGH

DISTRICT PUBLIC RELATION OFFICER(DPRO) - IRREGULAR

As per the Government orders issued vide G.O. Ms.No.572 TGA (CPR) Dept. dt.10-08-1999 ,G.O. Ms.No.679 PR & RD dt.10-02-1999 and G.O. Ms.No.37 I & PR Dept. dt.28-1-1994, all the advertisements by the departments should be made through the District Public Relations Officer and the bills shall be released only on certification by them. Further the Government have issued instructions vide Govt. Memo No. 5263/Pts IV/ A1/ 2005-06 Dt.15-4-2005 of PR & RD Dept. imposing ban on paper advertisements for two years.

But in the following MPs the said instructions were not followed by the Executive Authorities and issued advertisements for publication of Birth Day Greetings and the developmental activities of the MPs etc indiscriminately and paid the advertisement charges which is irregular. In some instances even the paper clippings were also not pointed out to audit.

S.

No.

Name of the

Mandal District Amount spent

Rs

Para

No.

1 Lingapalem West Godavari 20921 13

2 Beluguppa Ananthapur 5940 8(1)

3 Veeraballi Kadapa 15428 9

4 Ramapuram Kadapa 10000 10 9.2.2. EXPENDITURE ON INDIRAMMA PADHAKAM AND PRAJAPADHAM

PROGRAMMES – EXPENDITURE MET FROM GENERAL FUNDS – NOT GOT REIMBURSSED – NEEDS EARLY ACTION.

Huge amounts were incurred from General Funds towards conducting the

Indiramma phase-II, Prajapadham programmes in the following MPs as detailed below without obtaining any sanction orders, resolutions of General Body etc., which is irregular and as such the said expenditure needs to be got reimbursed from the concerned departments.

44

S.No. Name of the Mandal District Amount

spent Rs Para No.

1 S.Rayavaram Anathapur 10000 17 2 Ramachandrapuram East Godavari 25780 11(4) 3 Odela Karimnagar 24700 5 4 Dharmapuri Karimnagar 17300 5 5 Polavaram W.G.Dist 57605 20

9.2.3. PURCHASES- PURCHASE OF FURNITURE DURING BAN PERIOD-

IRREGULAR

Government vide Circular Memo.No.5494-A/B1/TFR-I/2006 Dt:21-3-06 of Finance (TFR-I/Department) have extended the ban on purchase of furniture for a further period of one year.

But in violation of the said instructions certain MPs have purchased furniture which is irregular. A few of them are shown below:

Sl.No Name of the MP District

Amount spent Rs

Para No.

1 Amudalavalasa Srikakulam 30000 15 2 Seetanagaram Vizianagarm 7041 12 3 Pithapuram East Godavari 10180 12(2) 4 Vemsoor Khammam 30000 11 5 Balmoor Mahabubnagar 30000 15

9.2.4. CELL PHONE BILLS – EXPENDITURE INCURRED MORE THAN THE

ADMISSIBILITY– IRREGULAR.

As per Memo.No.11136/CPR&RE/J3.2003 of Commissioner of Panchayat Raj, A.P.Hyderabad read with Circular No.741/IT&C/2003 Dated: 13-11-2003 of Principal Secretary to Govt. in IT & C Department, the MP Development Officers were permitted to incur expenditure of Rs.750/- per month towards Cell Phone charges upto September.2007 and later Rs.625/- per month from October,2007 vide GO.Ms.No.291 I.T.&C Dept. dated: 27-9-2007.It was also instructed that excess if any beyond the limit has to be borne by the individuals. But in violation of the said instructions many of the MPDOs incurred expenditure more than the admissibility and a few of them are shown below:

Sl.No Name of the MP District Amount spent

Rs Para No.

1 Valluru Kadapa 11471 6.3 2 Palasa Srikakulam 6077 10 3 Bheemgal Nizambad 4136 5

45

9.2.5. APPOINTMENT OF THE INDIVIDUALS ON CONTRACT BASIS WITH OUT SANCTION ORDERS – IRREGULAR.

Individuals were taken on contract basis for various purposes in certain MPs and wages were paid to them without obtaining any sanction orders of the competent authorities required under G.O.Ms.No.146 Fin & Plg. Dept., dt: 31-03-1994 which is irregular. A few of such cases are shown below. Sl. No Name of the MP. District Amount

Rs Para No.

1 Kurthuvennu Krishna 57935 14 2 Sompeta Srikakulam 56735 23 3 Damarcharla Nalgonda 30000 9 4 Mallial Karimnagar 20000 5(1) 5 Doulathabad Mahabubnagar 34673 11

9.2.6. DEPOSITS- RELEASE OF EMD TO CONTRACTORS BEFORE

COMPLETION OF THE DEFECT LIABILITY PERIOD- IRREGULAR. Rs.49979/-

According to the orders issued in G.O.Ms.No. 94 I & CAD ( PW)Dept.,

Dt. 1.7.2003, Earnest Money Deposit should be released to the contractors after the defective liability period of 2 year for original works and maintenance works is over. But in the following MPs the EMD was refunded without observing the defective Liability period which is irregular and recoverable.

Sl. No Name of the MP District Amount

Rs Para No.

1 Khammam® Khammam 19500 06 2 Jinnaram Medak 6250 10 3 Yadiki Ananthapur 10000 7(a)

9.2.7. SFC GRANTS – PURCHASE OF AIR CONDITION MACHINE &

REFRIGERATOR FROM THE SFC FUNDS – IRREGULAR –Rs.54800/-

An amount of Rs. 54800/- was incurred as expenditure from the SFC funds during the year 2007-08 as detailed below.

Vr.No.41/4-6-07 Cost of Air Condition Machine Rs.45500 Cost of Godrej Refrigerator Rs. 9300 Total: Rs.54800

Further the purchase was also made without inviting tenders / Quotation

etc., Purchase of A.C and refrigerator from SFC funds is against the guidelines issued for utilization of SFC funds and as such is highly irregular.

(Para no.11(14) of M. P., Ramachandrapuram, E.G.Dist for the year 2007-08)

46

9.2.8. ENTERTAINMENT TAX ADJUSTED TO MP FUNDS – NOT RE-ALLOCATED TO GRAMPANCHAYATS Rs.44006/-

As per the provisions of A.P. Entertainment tax Act, 1939 read with

G.O.Ms.No.826 Revenue Department, dt:17-08-1989 the amount collected as Entertainment Tax has to be distributed among the Grampanchayats and the mode of distribution among Grampanchayats was prescribed in G.O.Ms.No.264 PR&RD Department, dt:13.02.1990. Though the instructions are clear an amount of Rs. 44006 though adjusted to General Funds of MPs was not allocated among Grampanchayats which is irregular.

(Para no.5 of MP Aswaraopet, Kahammam District for the year 2007-08)

9.2.9. ESTABLISHMENT–SRIMAKANASUBRAHMANYAM

PROMOTEDJUNIOR ASSISTANT WITHOUT POSSESSING REQUIRED QUALIFICATION – IRREGULAR – NEEDS REVISION AND REVISED FIXATION.

As per the orders issued in G.O.Ms.No.517 Genl.Admn (Ser-B) Dept

dt:29-10-1987 a person can be appointed to the post of Jr.Asst prior to 29-1-1987 with the qualification of S.S.C and after 29-1-1987 with the intermediate. Apart from the above as per Govt.Memo.No.4639/Ser-B/A2/05-1 GAD (Ser-B) Dept.dt:11-01-2005 it was clarified that “those who have passed S.S.C prior to 29-10-1987 are eligible for promotion to the post of Jr.Assistant”. In Chilakuru, MP Sri M.Subrahmanyam who was appointed as attender with 7th class qualification on 1-4-1981 has passed his SSC in September,1989 and he was subsequently promoted to the post of Junior Assistant on 17-08-1998 with the SSC qualification only without possessing the required intermediate qualification which is highly irregular.

( Para no.11 of the A. R. of the M. P. Chillakuru, Nellore Dist. for the year 2007-08) 9.3. GPS 9.3.1. WORKS - PAYMENTS MADE WITHOUT RECORDING IN M.BOOK,

SCRUTINY BY TECHNICAL AUTHORITY AND CHECK MEASUREMENT BY THE COMPETENT AUTHORITY – IRREGULAR

Payments for work bills have to be made only after check measurement

being done by the DEE as per the instructions issued in G.O.Ms No. 387 PR & RD (Pts) Dept. Dt. 17-9-1998 for the works costing more than Rs.5,000/- and by the Executive Engineer for the works costing more than Rs.1,00,000/-.

During the course of audit it was noticed that in several cases payments

were made without conducting any check measurements by the competent authorities and without scrutiny by the technical authorities which is irregular. The Executive Authorities should have taken all necessary precautions before making payments to avoid irregularities.

S. No.

Name of the GP District Amount paid

Rs. Para No.

1 Vellulla Karimnagar 34652 4(vi)

47

9.3.2. SGRY SCHEME FUND – UN SPENT BALANCES AS ON 31-03-2007 NOT SURRENDERRED- IRREGULAR.

As per the instructions issued vide D.O.Lr.No.V-24011/34/2001/ M.F.F.W.P/ N.R.E.G.A, dt: 02-08-2007 of Rural Development Dept., Govt. of India N.R.E.G.A Scheme was introduced w.e.f 1-4-2007 in place of S.G.R.Y scheme and the closing balance of the SGRY scheme as on 31-03-2007 needs to be refunded to the concerned head of account. But as verified from the Cash Books and connected files of some of the following Grampanchayts, the same was kept in banks and spent with the combination of other funds for execution of works even after the lapse of the scheme in violation of the said instructions which is irregular .

S. No.

Name of the GP District

Unspent Balance Rs.

Para No.

1 Jammikunta Karimnagar 2281 4 2 Kothapally Karimnagar 40000 5 3 Puppal Karimnagar 28244 7 4 Chimakurthi Ongole 31412 28 5 Karavadi Ongole 131986 18

9.3.3. TAXES COLLECTED –AMOUNTS NOT DEPOSITED – EXPENDITURE

INCURRED DIRECTLY–IRREGULAR – Rs. 583141/-

As per the orders of Government issued vide G.O. Ms. No. 496 PR & RD Dept., Dt.11-06-1996 the collections made by GP should be remitted in Sub-Treasury concerned through challans and then draw the amounts through Cheques for incurring expenditure. Contrary to the said instructions the Executive Authority resorted for incurring of expenditure directly which is highly irregular and construed as misuse of powers and it should be curbed. Some of such instances are indicated below. S. No.

Name of the Grampanchayat District Amount

Rs Para

No. 1 Nidadavole West Godavari 47750 8 2 Pedaogirala Krishna 86158 4 3 Mallial Karimnagar 15400 7(2)

9.3.4. PANCHAYAT FUNDS – EXPENDITURE INCURRED FOR OTHER

PURPOSES - IRREGULAR

As per Sec. 75 of A.P.P.R.Act 1994, the funds of the Grampanchayat shall be applied for the purposes expressively provided in the Act and not for any other purposes without the permission of the competent authority.

But in the following Grampanchayats expenditure was incurred for other purposes like car rents, cell phone bills, telephone bills of D.P.O & D.L.P.O’s etc., in some of the Grampanchayats as detailed below without the permission of the

48

Commissioner of Panchayatraj, A.P.,Hyderabad which is contrary to the said provisions which is irregular.

S. No.

Name of the G.P. District Amount spent

Rs Para No.

1 Bibipet Nizambad 2545 4 2 S.Rayavaram Visakhapatnam 13000 15 3 Mellachervu Khammam 13000 5(d) 4 Pedapadu West Godavari 9000 13 5 Giddaluru Ongole 39362 6

9.3.5. EXCESS CASH ON HAND - IRREGULAR

As per the instructions issued in G.O Memo No.2610/Pts-IV/63-21 Dt.8.2.65 of PR & RD Dept., the cash on hand at the end of the financial year should not exceed Rs.50/-.

Contrary to the above instructions, huge amounts were kept as cash on

hand in the following GramPanchayats and for years together in some instances which would give scope for temporary misappropriation of public funds.. Gross negligence on the part of the executive authority is the cause for occurrence of such irregularities which need to be rectified immediately and curbed in future.

S.

No.

Name of the

GP District

Amount kept as cash on hand Rs

Name of the Grant /

Fund

Para

No.

1 Uppalanka East Godavari 6703 12th Finance 11

2 Kottada Krishna 45169 12th Finance 11

3 S.Rayavaram Visakhapatnam 1183 Genl.Fund 19

4 Thandur Adhilabad 8940 Genl.Fund 15

5 Lakshmipuram Khammam 18808 Genl.Fund 05 9.3.6. PUBLICATIONS – ADVERTISEMENTS NOT ROUTED THROUGH

THE DIST.PUBLIC RELATIONS OFFICER –PAYMENTS MADE- IRREGULAR

As per the Government orders issued vide G.O. Ms.No.679 PR & RD

dt.10-02-1999 and G.O. Ms.No.37 I & PR Dept. dt.28-1-1994, all the advertisements by the departments should be made through the District Public Relation Officers and the bills shall be released only on certification by them. Further the Government have issued instructions vide Govt. Memo No. 5263/Pts IV/ A1/ 2005-06 Dt.15-4-2005 of PR & RD Dept. imposing ban on paper advertisements for two years.

49

But, the said instructions were not followed by the Executive Authorities and issued advertisements for publication of Birth Day Greetings and the developmental activities of the Grampanchyats etc indiscriminately and paid the advertisement charges in violation of the Govt. Instructions without even routing through the District Public Relation Officers as shown below which is irregular. Non adherence to the Government instructions resulted in occurrence of such irregularities which should be curbed in the interest of utilizing public money.

S.

No.

Name of the

GP District Amount

spent Rs Para

No.

1 Kotananduru East Godavari 19207

2 Ameenpur Medak 15000 13

3 Chirunomula Khammam 17600 5

4 Kondangal Mahabubanagar 21204 10

5 Gollavanitippa West Godavari 10304 9 9.3.7. PURCHASES – EXEPENDITURE INCURRED ON ELECTRICAL ITEMS

AND SANITARY MATERIAL BEYOND THE PRESCRIBED LIMIT OF 15% - IRREGULAR

As per the instructions issued in Government Cir.Memo.No.40183/Pts-

IV/2002-03 dt.31-07-03 of PR & RD Department Grampanchayats shall not incur expenditure of more than 15% of the net receipt of general funds on purchase of electrical goods, bleaching powder and other sanitary material.

But during the course of audit it was observed that the expenditure

incurred on purchase of electrical goods and sanitary items exceeded the above limit in various Grampanchayats and a few of such cases are shown below.

Sl.

No Name of the G.P. District

Net income Rs

Expenditure on Electrical/ Sanitary

items Rs. Para No.

Eligible Spent Excess

1 Doddigunta E.G. 130565 19584 73807 54223 10

2 P.Ramavaram E.G. 111952 16792 51015 34223 9

3 Ardhaveedu Ongole 193862 58158 66300 8142 4

4 Ramadasukandriga Nellore 325011 48752 90880 42128 9

5 Oduru Nellore 57227 8584 25750 17166 7

50

9.3.8. INDIVIDUALS TAKEN ON CONTRACT BASIS WITH OUT SANCTION ORDERS – EXPENDITURE INCURRED FOR WAGES - IRREGULAR.

The following Grampanchayats have taken individuals on contract basis as

sweepers, operators etc and wages were paid to them without obtaining any orders required under G.O.Ms. No. 146, F & P Dept., dt: 31-3-1994 for taking individuals on contract basis which is irregular. Sl. No Name of the G.P. District Amount Rs Para No.

1 Kodad Nalgonda 2957071 18 2 Chinnacheruvu Nellore 41300 5(a) 3 Naidupeta Chittoor 51950 9 4 Bayyaram Khammam 109142 4 5 Appapuram Guntur 95400 4

9.3.9. PAYMENT OF LAW CHARGES WITHOUT THE SANCTION OF DIST.COLLECTOR – IRREGULAR.

As per rule 6 of rules issued in G.O.Ms.No.158 Plg. and L.A dt;29-1-1962 and G.O.Ms.No.189 PR&RD Dept., dt: 6-6-2000, prior permission of the District Collector is required for making payment towards law charges to the advocates. But, in contravention of the said rules, amounts were paid without taking prior permission of District Collector in various Grampanchayats which is irregular and a few are shown below. As such ratification of Dist. Collector be obtained and produced for audit.

Sl. No Name of the G.P. District Amount

Rs Para No.

1 Choppadandi Karimnagar 14000 5(viii) 2 Huzurabad Karimnagar 13000 5 3 Sangam Nellore 3000 6

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.

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

Work Bills 1. Income Tax

2. Sales Tax

3. Seigniorage Fees

51

Pay Bills 1. Income Tax 2. Profession Tax 3. A.P.G.L.I. Premium / Loan recoveries 4. G.P.F. (Government Employees) 5. G.I.S Premium.

These defects noticed were pointed out in the ARs.

A Consolidated Statement No. 9 (10) showing audit audit objections on Non –remittance of Deductioins/Recoveries from vouchers /Pay Bills/Contingent Bills is appended to the Report from which it could be seen that an amount of Rs. 3659.91 lakhs was pointed out in 37869 audit paras

Some of them are as under. 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 ARs. A few of such cases are mentioned below. Name of the Institution

Amount Collected

Amount Remitted

Balance to be Remitted

ZP 1991369 1465941 525428 MP 40161 0 40161 GP 90134 0 90134 (Amount in Rupees)

Sl. No.

Name of the Institution & District

Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZPs 1 EE(RWS) Tenali, ZP,

Guntur 48194 0 48194

2 EEPR Hyderabad, ZP, Rangareddy

1280407 1232138 48269 6

3 Secondary Education Fund, ZP, Nalgonda

104815 0 104815 10(3)

4 General Funds, ZP, Srikakulam,

547179 233803 313376 46

5 EEPR Asifabad, ZP, Adilabad

10774 0 10774 6

52

MPs 1 MPP Nuzivedu, Krishna 16243 0 16243 4 2 MPP Chilmatur, Anantapur 11184 0 11184 10(b) 3 MPP Mydukur, Kadapa 22 0 22 23 4 MPP Kowthalam, Kurnool 12082 0 12082 13 5 MPP Nizamsagar, Nizamabad 630 0 630 5

GPs 1 GP Kurimadapalli, Krishna 41882 0 41882 5 2 GP Kodad, Nalgonda 2350 0 2350 19 3 GP Prgathinagar, Ranga Reddy 24959 0 24959 13 4 GP Ameenpur, Medak 5015 0 5015 15 5 GP Nandageri, Kurnool 15928 0 15928 6(2)

SEIGNIORAGE FEES 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 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 were recovered from the work bills towards Seiginorage Fees, the same was either not remitted or partly remitted only to State Funds till the close of audit. Such inaction was pointed out in the relevant ARs. Some of such instances are listed below.

Name of the Institution

Amount Collected

Amount Remitted


ZP 2505832 1862551 643281 MP 375178 0 375178 GP 83029 0 83029

(Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted


Para No.

ZP 1 EE (RWS), ZP, Tenali 29205 0 29205 2 EEPR, Hyderabad, ZP,

Ranga Reddy 1341642 1335312 6330 6

3 General Fund, ZP, Srikakulam

1010815 527239 483576 46

4 EEPR, ZP, Palakonda 663 0 663 13 5 EEPR, ZP, Amalapuram 123507 0 123507 10(i)

53

(Amount in Rupees) MP

1 MPP Baireddipalli, Chittoor 14949 0 14949 6(i) 2 MPP Kodumuru, Kurnool 1045 0 1045 11 3 MPP Nellore 2931 0 2931 20 4 MPP Bhogapuram,

Vizainagaram 314 0 314 19

5 MPP Gunturu 355939 0 355939 8

(Amount in Rupees) GPs 1 GP Anantavaram, Gunturu 9524 0 9524 12 2 GP Parvathipuram, Krishna 47700 0 47700 8 3 GP Nagireddipalli, Kadapa 1791 0 1791 2 4 GP Padugupadu, Nellore 21700 0 21700 18 5 GP Gonegandla, Kurnool 2314 0 2314 3 83029 0 83029

SALES TAX 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 to state funds.

It was observed that Sales Tax deducted as 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 ARs.

A few of such cases are mentioned below.

Name of the

Institution

Amount

Collected

Amount

Remitted

Balance to be

Remitted

ZP 964859 435481 529378

MP 1036 0 1036

GP 101780 0 101780

54

(Amount in Rupees) Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 EE (RWS) ZP, Tenali 77356 0 77356 2 General Fund, ZP,

Srikakulam 711179 405932 305247 46

3 EEPR, ZP, Palakonda 1734 0 1734 13 4 EE (RWS), ZP, Palasa 46718 29549 17169 11 5 EEPR, ZP, Amalapuram 127872 0 127872 10(1) Total: 964859 435481 529378

(Amount in Rupees)

MP 1 MPP Nuziveedu, Krishna 44089 0 44089 4 2 MPP Bireddipalli, Chittoor 4320 0 4320 6(1) 3 MPP Anantapur,

Anantapur 5200 0 5200 4

4 MPP Chilmatur, West Godavari

19885 0 19885 10(b)

5 MPP Mydukuru, Kadapa 1036 0 1036 23

(Amount in Rupees) GPs

1 GP Kurunadali, Krishna 46431 0 46431 5 2 GP Padugupadu, Nellore 21791 0 21791 18 3 GP Kodada, Nalgonda 18078 0 18078 19 4 GP Koyyetipadu, West Godavari 4194 0 4194 8 5 GP Chelluru, Karimnagar 11286 0 11286 9

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 ARs. Some such instances are listed below. (Amount in Rupees) Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 Secondary Education

Fund, ZP, Nalgonda 25230 0 25230 10(3)

Total: 25230 0 25230

55

MPs 1 MPP Mudhole,

Adilabad 720 0 720 21

2 MPP Bogole, Nellore 740 0 740 12 Total: 1460 0 1460

GPs

1 GP Karlapalem, Guntur 885 0 885 6(d) 2 GP Makthal,

Mahabubnagar 14420 0 14420 15

3 GP Kodangal, Mahabubnagar

1760 0 1760 13

4 GP Podalakuru, Nellore 0 0 0 13 5 GP Kothavelaga 5100 0 5100 21 Total: 22165 0 22165

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. Concerned Drawing and Disbursing Officer has to recover Group Insurance Premia 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. Some such cases are shown in below.

(Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted Para No.

ZP 1 Secondary Education,

ZP, Nalgonda 20820 0 20820 10(3)

Total: 20820 0 20820 MP

1 MPP Kota SPSR, Nellore 180 0 180 13 2 MPP Bogole, Nellore 180 0 180 12 3 MPP Mudhole, Adilabad 135 0 135 21 4 MPP Baldi, Nellore 75 0 75 9 5 MPP Bogole, Nellore 5232 0 5232 12 Total: 5802 0 5802

56

GPs 1 GP Nallamothuvaripalem,

Gunturu 910 0 910 6(3)

2 GP Yajali, Gunturu 695 0 695 6(a) 3 GP Achampet,


Total: 1605 0 1605

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 G.P.F Account. It was noticed in audit that the G.P.F amount though 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 ARs concerned. Some such cases are shown below.



Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 Secondary Education, ZP,

Nalgonda 104193 0 104193 10(3)

Total: 104193 0 104193 MP 1 MPP Mudhole, Adilabad 400 0 400 21 2 MPP Baldi, Nellore 2500 0 2500 9 Total: 2900 0 2900

GPs 1 GP Nagaram, East

Godavari 994 0 994 13

Total: 994 0 994

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 for the other employees Rs.20/- have to be collected 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 AR concerned.

57

Some of such instances are listed below. (Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 Secondary Education, ZP,

Nalgonda 24218 0 24218 10(3)

Total: 24218 0 24218 MP

1 MPP Ramagudem, Karimnagar

260 0 260 17

2 MPP Sultanabad, Karimnagar

420 0 420 12(1)

Total: 680 0 680 GPs

1 GP Kodad, Nalgonda 780 0 780 20 2 GP Ibrahimpatnam,

Karimnagar 240 0 240 7(3)

3 GP Kothavelaga, Vizainagaram

820 0 820 20(a)

Total: 1840 0 1840

SAINK WELFARE FUND NOT EFFECTED OR REMITTED

According to the orders issued in G.O.Ms.No.6021, Dept. dt.11-12-1992 and G.O.Ms.No.299, Dept. dt.18-12-2007 Flag Day contribution has to be recovered from the salary bills of the staff as follows for Gazetted 50/- & Non-Gazetted 20/-.

The amount so deducted / recovered from the salary bills would need to be

remitted through Demand Draft to the Director Sainik Welfare, Nampally, Hyderabad.

But it was noticed in audit that Sainik Welfare Fund was deducted or

remitted to the state funds in certain cases as shown in below. (Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted


Para No.

MP 1 MPP Sultanabad,

Karimnagar 420 0 420 12

Total: 420 0 420 GPs

1 GP Kothavelaga, Vizainagaram

630 0 630 19

Total: 630 0 630

58

QUALITY CONTROL CHARGES AND OTHERS DEDUCTED FROM WORK BILLS / PAY BILLS BUT NOT REMITTED

Quality control Charges CMRF/NAC and other recoveries effected from

work bills were not remitted to concerned head of account till the close of audit. Such inaction of the Executive Authority were pointed out in the relevant ARs. Name of the Institution

Amount Collected

Amount Remitted


ZP 218206 0 218206 MP 16058 3260 12798 GP 7259 0 7259 Q.C Charges (Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 EE (RWS), ZP, Tenali 9263 0 9263 2 General Funds, ZP,

Srikakulam 58132 0 58132 46

3 ZP, Srikakulam 124326 0 124326 13 4 EEPR, ZP, Amalapuram,

East Godavari 26485 0 26485 10(i)

MP

1 MPP Vemuru, Guntur 520 0 520 11 2 MPP Gudur, Nellore D 2786 0 2786 13 3 MPP Rajempet, Kadapa 4163 0 4163 6 4 MPP Venkatapuram,

Khammam 1237 0 1237 9

5 MPP Amalapuram, East Godavari

7352 3260 4092 17

GPs 1 GP Lingala, Krishna 686 0 686 16 2 GP Kodada, Nalgonda 1315 0 1315 19 3 GP Kota, East Godavari 170 0 170 13 4 GP Polamerajgunta, Nellore 779 0 779 16 5 GP Nandagiri, Kurnool 4309 0 4309 6

CMRF / NAC Charges

Name of the Institution

Amount Collected

Amount Remitted


ZP 106625 26905 79720 MP 56117 0 56117 GP 129418 0 129418

59

(Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

ZP 1 EE (RWS), ZP, Tenali 5393 0 5393 2 General Funds, ZP,

Srikakulam 92374 26905 65469 46

3 EEPR, ZP, Palakonda 110 0 110 13 4 EEPR, ZP, Adilabad 1201 0 1201 6 5 EEPR, ZP, Amalapuram,

East Godavari 7547 0 7547 10

Total: 106625 26905 79720 (Amount in Rupees)

MP 1 MPP Bommanaral, Anantapur 76 0 76 1(c) 2 MPP Gunturu, Gunturu 5339 0 5339 9 3 MPP Medichal, Rangareddy 48593 0 48593 8 4 MPP Makthal, Mahabubnagar 1983 0 1983 14 5 MPP Denduluru, W.G 126 0 126 9(a)&(b)

(Amount in Rupees) GPs 1 GP Pragathinagar, Rangareddy 43132 0 43132 15 2 GP Angalakuduru,

Tenali,Guntur 456 0 456 6(d)

3 GP Ameenpur, Medak 81387 0 81387 20 & 21 4 GP Koilakuntla, Kurnool 3067 0 3067 11 5 GP Vatluru, W.G. 1376 0 1376 13

LIBRARY CESS COLLECTED BUT NOT REMITTED TO Z.G.S

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 a surcharge on the 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.

Name of the Institutions

Amount Collected

Amount Remitted


ZP MP GP 273646 30342 243304

60

Some such instances are listed below. (Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

GPs 1 GP Achampet,

Mahabubnagar 88922 20000 68922 6

2 GP Chinthalachervu, Kadapa

484 0 484 9

3 GP Kowthalam, Kurnool 12599 10342 2257 8 4 GP Damaramadugu,

Nellore 13779 0 13779 11

5 GP Podali, Ongole 157862 0 157862 14

11. NON-PRODUCTION OF RECORDS

The Panchayath 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. To fulfill all the desires and needs the total revenue baseneeds 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 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 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 Mbook, 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 ARs 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.

61

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 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.

A Consolidated Statement No. 9 (11) 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. 37 650.72 was pointed out in 82510 audit paras

A few of the paras raised in ARs for the year 2006-07 are categorized accordingly and tabulated as shown below.

11.1.1. ZP- EXECUTION OF WORKS – CONNECTED ESTIMATES, MEASUREMENT BOOKS ETC.,- NOT PRODUCED- EXPENDITURE HELD UNDER OBJECION - Rs. 3183130/-.

An aggregate amount of Rs. 3183130/- as detailed below was spent during

the year 2007-08 towards execution of works in various wings, under different schemes by the ZPs, but the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The expenditure incurred could not be admitted in audit as the correctness of the same could not be verified due to non-production of the connected records and the same is held under objection. The Executive Authorities concerned would need to take immediate action to produce connected records to audit for verification immediately.

Sl. No

Name of the ZP & Dist.,

Particulars of the records not produced

Amount involved

Rs.

Para No. of AR

1 E.E.R.W.S, Palasa, Srikakulam

Estimates, M.Books, Agreements and files

865229 10

2 E.E.P.R, R.W.S., Kakinada E.G.

Estimates, M.Books, 577219 11(5)

3 E.E.P.R., Tenali, Guntur (Dt)

Recoveries made and remittance challans

160744 -

4 E.E.P.R, Dharmvaram, Ananthapuram

Estimates, M.Books, Agreements and files

1456273 4(4)

5 E.E.P.R, Adilabad M.Books and files 123665 7

62

11.1.2. PAID VOUCHERS,UTILISATION CERTIFICATEES NOT PRODUCED- IRREGULAR- RS.16032350

During audit scrutiny paid vouchers and utilisation certificates etc., in

support of the expenditure incurred of Rs.16032350 as detailed below were not produced to audit for verification. As such the correctness of the expenditure incurred could not be verified in audit and the same is held under objection. The executive authority would need to produce the paid vouchers to audit immediately.

Sl. No



Amount involved

Rs.

Para No.

1 ZP General Funds, Kadapa

Paid vouchers , UCs and connected records

9692000 26

2 ZP General Funds, Nalgonda

Expr. Particulars and UCs

6332000 13(1)

3 Sec. Edn. Fund, Rangareddy

Paid vouchers , UCs and stock registers

8350 6

Total: 16032350 11.1.3. SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT PRODUCED-

IRREGULAR RS. 102500/-

During the audit scrutiny for the year 2007-08, it was noticed that expenditure of an aggregate amount of RS. 102500/- was incurred as detailed below. But the connected service Registers, files, registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

Sl. No



Amount involved

Rs.

Para No.

1 Sec. Edn. Funds Srikakulam

Stock Register of stationery not produced

1149629 23

2 ZP General Funds, Guntur

Stock Register of stationery not produced

1282015 9(1)

3 006 Loan Funds, Ongole

Ledger along with file not produced

- 3(1)

4 ZP General Funds , Kadapa

Suit Register not produced 76750 8

5 E.E.P.R Dharmavaram

Deposit Register and files not produced

25750 4(5)

63

11.2. MPS 11.2.1. EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS ETC.,- NOT PRODUCED- EXPENDITURE HELD UNDER OBJECION - Rs. 2639794/-

An aggregate amount of Rs.2639794/- as detailed below was spent during

the year 2007-08 towards execution of works by the MPs, but the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The expenditure incurred could not be admitted in audit as the correctness of the same could not be verified due to non-production of the connected records and the same is held under objection. The Executive Authorities concerned would need to take immediate action to produce connected records to audit for verification immediately.

11.2.2. PAID VOUCHERS NOT PRODUCED- IRREGULAR- RS. 618387/-.

During audit scrutiny paid vouchers in support of the expenditure incurred of Rs.618387/- as detailed below were not produced to audit for verification. As such the correctness of the expenditure incurred could not be verified in audit and the same is held under objection. The executive authority would need to produce the paid vouchers to audit immediately.

Sl. No

Name of the MPs & Dist.,

Particulars of records not produced

Amount involved Rs.

Para No.

1 Kaviti , Srikakulam Estimates, M.Books, Agreements

186646 16

2 Mentada, Vizanagaram Estimates, M.Books and files

1602749 18

3 Araku valley, Visakhapatnam

M.Books and files 473485 15

4 Pedapudi, Kakinada E.G. Estimates and M.Books 100000 14 5 Lingapalem, W.G. Estimates and M.Books 276914 24

Sl. No



Amount involved

Rs.

Para No. of AR

1 G.Sigadam, Srikakulam

Vouchers relating to CC charges paid and staff TA bills

18286 19

2 Uppalaguptam, Kakinada

Vouchers relating to Contingencies and files

194511 12(1)

3 Pedavegi, W.G. Vouchers relating to Contingencies and stock registers

45900 22

4 Kankipadu, Krishna

Vouchers relating to honorarium etc.,

124298 10

5 Dagadarthi, S.P.S.R Nellore

Vouchers and records relating to the execution of works

235392 20

64

11.2.3. SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT PRODUCED:

During the audit scrutiny for the year 2007-08 it was noticed that

expenditure of an aggregate amount of Rs.612797/- was incurred as detailed below. But the connected service Registers, files, registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

Sl. No



Amount Rs.

Para No.

1 Nirgatam, Srikakulam

Stock register 47770 18

2 Ravikhmatam, Visakhapatnam

Deviation statement of excess payment

14387 11

3 Konnalagudam, W.G. Bills and Stock register of 10 HP Pump set

30000 9

4 Kankipadu, Krishna Bank account pass book 462790 20 5 Vemuru, Guntur File relating to iron and wood

auction 57850 7

11.3. GRAMPANCHAYATS 11.3.1. EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS ETC.,- NOT PRODUCED- EXPENDITURE HELD UNDER OBJECION - Rs. 827910/-.

An aggregate amount of Rs. 827910/- detailed below was spent during the

year 2007-08 towards execution of works by the Grampanchayats, but the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The expenditure incurred could not be admitted in audit as the correctness of the same could not be verified due to non-production of the connected records and the same is held under objection. The Executive Authorities concerned would need to take immediate action to produce connected records to audit for verification immediately.

,

Sl. No

Name of the GPs & Dist.,


Amount involved

Rs.

Para No.

1 Sri kurmam, Srikakulam

Estimates, Agreements, M.Books of works execution

30880 27

2 Bandapalli, East Godavari

M.Books, Estimates, Agreements and Vouchers

69024 5

3 Adamilli, W.Godavari

Admn. Sanction, Tech. Sanction, Muster roll and Vouchers

108880 13

4 Poranki, Krishna M.Books, Estimates and Vouchers 567916 15 5 Gottipadu,

Guntur Vouchers, Bills, Paid receipts and stock registers

51210 13

65

11.3.2. PAID VOUCHERS,UTILISATION PARTICULARS NOT PRODUCED- IRREGULAR- RS. 1102669/-.

During audit scrutiny paid vouchers and utilisation certificates etc., in

support of the expenditure incurred of Rs.1102669/- as detailed below were not produced to audit for verification. As such the correctness of the expenditure incurred could not be verified in audit and the same is held under objection. The executive authority would need to produce the paid vouchers to audit immediately.

Sl. No



Amount involved

Rs.

Para No.

1 Raghavapuram, W.Godavari

Vouchers, Bills and Registers relating to Water supply and sanitation

109189 7

2 Ravulapadu, E.Godavari

Vouchers, Stock registers and utilization relating to electrical lamps and spare parts

104879 6(9)

3 Kavuru, Guntur Vouchers and purchasing bills 88564 8(3) 4 Podili,

Prakasam Vouchers, Sub.Vouchers and stock registers relating to Ele. And Ph. goods

776377 15

5 Somasanigunta, Nellore

Paid vouchers, receipts and stock registers relating to Ele. Goods

23660 10

11.3.3 SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT

PRODUCED: During the audit scrutiny for the year 2007-08 it was noticed that

expenditure of an aggregate amount of Rs.423384/- was incurred as detailed below. But the connected service Registers, files, registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

Sl. No



Amount Rs.

Para No.

1 Srikurmam, Srikakulam

Register of bore wells 167902 8

2 Raghavapuram, W.Godavari

Stock Register relating to Ele. Goods

115090 9

3 Kaikulur, Krishna Legal Charges Khatha register

24200 20

4 Vellampalli, Nellore

Cash book and Pass book relating to SGRY

0 15

5 Nannuru, Kurnool Building plan approval register, Applications Challans and Misc. forms

116192 17

66

12. MIS-APPROPRIATIONS :

Cases of misappropriation of money noticed in audit were pointed out in the ARs concerned.

A consolidated statement of audit objections on misappropriations noticed in audit is annexed vide statement No 9 (12) . A total number of 1360 cases involving an amount of Rs. 423.81 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.

12.1.1.AMOUNTS INVESTED AS FDRs - DEPOSITED IN SB ACCOUNTS INDISCRIMINATELY - INTEREST ACCRUED ON FDRs/ DEPOSITS DRAWN THROUGH SELF CHEQUES-NOT ACCOUNTED FOR- MAJOR OTHER SERIOUS FINANCIAL IRREGULARITIES - MISAPPROPRIATION OF AMOUNTS- Rs. 53,05,847/-

As per section 197 of Andhra Pradesh Panchayat Raj Act, 1994, all the moneys received by the ZP shall be lodged and operated from the Govt.Treasury duly following all the provisions under management of public funds. Instead of doing that the amounts relating to sand auction and other amounts in the General funds were drawn and invested conveniently in the form of FDRs in various other banks and after sometime those FDRs were withdrawn, kept in S.B accounts and the principal amount was either remitted back to the General Fund or utilized directly for different purposes but the interest amounts accrued in lakhs on the investments and deposits in S.B.accounts were withdrawn through self cheques without accounting for anywhere and as such misappropriated to a tune of Rs 53,05,847- 00 by the Chief Executive Officer, ZP, Kakinada as detailed below. The whole issue occurred as result of gross mismanagement of public funds and glaring financial indiscipline and scant respect for the cannons of financial propriety as all the provisions prescribed on maintenance of public .Funds under section 197 of APPR Act-1994 all other Codes were blatantly violated.

1) An amount of Rs. 4,00,00,000-00 was drawn from General Funds during the year 2006-07 and deposited in Corporation Bank, Thimmapuram, Kakinada as FDR. The FDR was encashed and credited in to SB A/C No.01/010608 on 5.1.2007 and out of the said amount, an amount of Rs. 1,90,00,000-00 was paid to executing agencies for the works under TFC grant on 29-3-2007 and the remaining amount of Rs.2,10,00,000-00 was refunded to General Funds on 25-4-2007. A total amount of Rs. 5,94,478-00 which was accrued as interest on the above amounts was drawn on self cheques without accounting for and misappropriated.

2) An amount of Rs. 5,00,000-00 was deposited in FDR in Andhra Bank, Main Branch, Kakinada on 16.7.2007 for which an amount of Rs.9,42,979-00 was credited towards interest for the period from 7.6.07 to 27.9.07 in Corporation Bank, Thimmapuram. Further an amount of Rs. 7,87,500 for the period from

67

8.10.07 to 29.7.08 and Rs. 2,62,500-00 for the period from 28.5.08 to 29.8.08 aggregating to Rs.19,92,979-00 which was accrued as interest was not accounted for and drawn by self cheques and misappropriated. The details of cheques in which the amounts were drawn could not be verified as the relevant bank pass books were not made available for audit. 3) Out of the amounts received towards sand auction for the year 2007-08, an amount of Rs.5,00,00,000-00 was set apart for purchase of furniture for ZP High Schools and the said amount was deposited in Andhra Bank Main Branch, Kakinada in the shape of FDRs and the same were cancelled and the amount was deposited in SB Account for which an amount of Rs. 6,92,328-00 was received as interest. Further an amount of Rs.3,00,00,000-00 was deposited in FDR in Andhra Bank Jagganaikpur, Kakinada and later cancelled and deposited in SB Account No. 42283 of Andhra Bank Main Branch, Kakinada for which an amount of Rs.4,92,717-00 was accrued as interest. Out of the total interest accrued for Rs. 11,85,045-00, a cheque for an amount of Rs. 11,00,000-00 was shown as issued vide cheque No.42733 Dt.26.3.08 to M/s SSS Enterprises, Vijayawada by the Chief Executive Officer, ZP Kakinada. The details of payment such as payees acknowledgement, vouchers etc were not furnished to audit which tantamounts to misappropriation in the given circumstances. Further the above principal amounts of Rs 5,00,00,000 and Rs 3,00,00,000 and balance of interest of Rs. 85,045 were conveniently put into different branches of various banks and the accrued interest of Rs 3,73,973-00 was drawn through self cheque by the Chief Exeuctive Officer ZP, Kakinada s and misappropriated as the same was not accounted for anywhere.

4) An amount of Rs.3,00,00,000-00 was also deposited in Corporation bank Thimmapuram on 23.11.2007 straight away from sand auction funds which is irregular as such funds are invariably to be parked in Z.P.General Fund account. An amount of Rs.5,60,959-00 which was given credit towards interest on the above and other amounts already there in the account was drawn by the Chief Exeuctive Officer, ZP, Kakinada by way of self cheque and misappropriated as it was not accounted for into General Funds or any other funds.

5) An amount of Rs. 3,00,00,000-00 which was invested as FDR in Corporation Bank Thimmapuram was cancelled on 29.10.08 and the said amount was again deposited in ING Vysya Bank, Bhanugudi Junction, Kakinada and an amount Rs.3,92,671-00 was accrued as interest from Corporation Bank Thimmapuram. This was also drawn by the Chief Exeuctive Officer ZP, Kakinada by way of self cheque without accounting for anywhere and as such misappropriated.

6) An amount of Rs.2,00,00,000-00 was deposited as FDR in ING Vysya bank Temple Street, Kakinada for which an amount of Rs.4,40,000-00 was accrued as interest. This was transferred and credited into SB Account No.330010081006 of the same bank instead of accounting for into General Fund account and later this amount was also drawn by the Chief Exeuctive Officer ZP, Kakinada through self cheque nos. 380128 and 380131 for Rs.4,20,000-00 and Rs.20,000-00 respectively and misappropriated.

68

Thus, as detailed above an amount to a tune of Rs. 53,05,847-was noticed misappropriated to the extent of records produced to audit .

The Chief Executive Officer, ZP, Kakinada is in the habit of indiscriminate drawal of public funds, investing them conveniently in various banks, later withdrawing them and depositing in S.B.accounts and later drawing the accrued interest amounts through self cheques straight away from banks without accounting for them into the General Fund account or any other account in fact and misappropriation of the same which needs immediate investigation and appropriate action for recovery of the said amount and disciplinary action on all the concerned.

( Para No.15 of the AR on the General Fund account of the Z.P., Kakinada, E.G. Dist for 2007-08 ).

12.1.2.ELECTRICAL CHARGES COLLECTED - NOT REMITTED TO Z.P.

GENERAL FUND-MISAPPROPRIATED Rs.5,792/ -

As verified form the register of rental charges and other charges received it was noticed that an amount of Rs. 5,792/- was collected towards electrical consumption charges from the occupants of BRK Bhavan, but the said amount was neither remitted nor accounted for to the ZP funds which is construed as misappropriated. (Para No. 25 of the AR on the General Fund account of ZP, Khammam for the year 2007-08)

12.2.1 MPs-SFC GRANTS CREDITED IN TO SGRY ACCOUNT - AMOUNT

DRAWN WITHOUT ANY PURPOSE - MISAPPROPRATION OF FUNDS Rs, 6,00000/-

During the course of verification of SGRY cash book of Mandal Parishad

in audit, it was noticed that an amount of Rs.6,00,000/- pertaining to SFC funds was credited to SGRY account and the same was drawn towards payment of SFC works through the following cheques without indicating the names of the works in the Cash book. Drawl of amount without any purpose is construed as misappropriation of funds and immediate action is required for recovery of the said amount.

1. Cheque No.338780, Dt. 12-6-2007 Rs. 540000-00. 2. Cheque No.634106, Dt.29-8-2007 Rs. 60000-00

---------------------- Total : Rs. 600000-00 -----------------------

(Para No. 18 of the SFC Funds of AR of Narnoor, M.P, Adilabad District) Similarly an amount of Rs. 99640/- was drawn from SFC funds without

indicating the purpose of drawal in the Cash Book which is construed as misappropriation of funds. (Para 10 of the AR on the accounts of MP, Yadiki, Anantapur District)

Likewise an amount of Rs. 25,000 was drawn on self cheque No. 400714 dt: 18-3-2008 without any details of expenditure which is construed as misappropriation of funds. (Para 3 of .A.R. on the A/c of W & CF funds of Kalikiri M.P, Chittoor Dist. for 2007-08.)

69

12.2.2. DRAWAL OF AMOUNT WITHOUT ANY PURPOSE AND VOUCHER- MISAPPROPRATION- Rs.31865/-

An amount of Rs.31865/- was shown as drawn on self cheque vide

voucher No. 2 Dated 5-03-2008 without indicating any purpose therefor. Drawal of amounts on Self Cheque without proper voucher/purpose is construed as misappropriation of funds which needs to be recovered immediately.

(Para 19 of Elementary Education Fund of A.Rof Lokeswaram M.P, Adilabad District.)

12.2.3. AMOUNT DRAWN ON SELF CHEQUE – NOT ACCOUNTED FOR – MISAPPRORIATION Rs. 40000/-

An amount of Rs. 40000/- was drawn from Sub- Treasury, Nellore on Self Cheque No. D0677369, dt: 14-5-2007 but the same was neither entered in the Cash Book nor any details for the purpose for which the amount was drawn was not pointed out to audit. Drawal of amount without any purpose and accounting is construed as misappropriation of funds which needs to be recovered. (Para 15 of A R on the A/c of Kondapuram, M. P., Nellore District for 2007-08).

12.2.4. EAR MARKING OF GENERAL FUNDS- 15% TRANSFERRED TO WOMEN &

CHILD WELFARE ACCOUNT – NOT ADJUSTED TO W & CW FUNDS SO FAR – MISAPPROPRIATION – RS. 27,229/-

In Voucher No.82/1.9.2007 an amount of Rs. 27,229/- was drawn on self cheque No.943391-1.9.2007 towards transfer to Women and child Welfare account under ear marking of 15% of General Funds, but the said amount was not adjusted to Women and Child Welfare account of MP. The Connected credit entry in ST pass book and cash book of Women and Child Welfare Funds was also not pointed out to audit. Drawl of amount through self cheque without accounting for is construed as misappropriated and as such is recoverable. (Para 20 of A.R. on theA/c of W & C Welfare Fund of A.S.Peta, M.p, Nellore District).

12.2.5. SHOPPING COMPLEX RENTS COLLECTED – BUT NOT REMITTED –

MISAPPROPRIATION - Rs. 24,909/-

An amount of Rs. 21850-00 was collected towards shop rents through various receipts but the same was neither accounted for nor remitted to General Funds which confirms misappropriation of the said amount. (Para no. 14 of A Rt on the G FA/c Bheemgal, M P, Nizamabad District for 2007-08)

12.2.6. AMOUNTS DRAWN – WITHOUT ANY DETAILS OF EXPENDITURE FROM SGRY FUNDS (30%) – MISAPPROPRIATION Rs. 2,65,389/-

During the course of audit , it was noticed that an amount of Rs. 2,65,389/-

was drawn from Bank Account No. INS 186 of Sri Vishakha Grameena Bank, Mentada through various cheques without indicating any purpose of drawal from SGRY (30%) in the cash Book. Drawl of amounts without any purpose is nothing but misuse of drawing powers and as such is construed as misappropriated and recoverable.

(Para 22 of A R on theA/c of SGRY fund of Mentada, M P, Vizianagaramt for 2007-08).

70

12.3.1 GPs-COLLECTION OF TAXES - AMOUNT NOT FULLY REMITTED -MISAPPROPRIATED – Rs.77536/-

On verification of the Irsalnama of Laxettipet GP for the year 2007-08, it

was noticed that House tax amounts collected through various receipts were not fully credited in the Treasury Bank as shown below by Sri Ashok, L.D.C.

Amount in Rs.

Receipt No.s of taxes collected

(as per Irsalnama)

Total Tax amount

collected

Total credited to

bank

Credited vide Challan No & date

Un credited

Tax amount

513 to 600 & 901 to 904

119695 42159 151/10.4.2007 (total challan value Rs. 7373479 )

77536

Non remittance of the collected tax amount of Rs. 77,536 in the instant

case is a clear case of misappropriation and as such it is recoverable. (Para No. 20 of the AR on the accounts of Luxettipet, GPt, Adilabad).

12.3.2 Taxes Collected in GPs but not remitted to the GP Funds:

The following GPs mentioned in the table have collected house tax, water tax, fee etc., but not remitted to the GP Funds which is construed as mis appropriated.

SI No

Name of the Institution Amount Collected

Para No

1 Kondamallepally, G.P, Nalgonda District 69209/- 11 2 of Rapur G.P., Nellore Distric 112546/- 13 3 S.N Padu G P, Prakasam District 188251 20

12.3.3. AMOUNT DRAWN FROM PANCHAYAT FUNDS WITHOUT ANY DETAILS– MISAPPROPRIATION OF FUNDS –Rs.14000/-

During the course of audit it was noticed that an amount of Rs.14,000/-

was drawn vide Cheque.No.664174, Dt: 10.03.2008 from Grampanchayat Funds without any details being recorded in the Cash Book Drawal of amounts, without any purpose is a clear case of misappropriation of amounts and as such is recoverable. (Para No. 7 of the AR on the A/c of Mallam G P of East Godavari District for 2007-08)

Likewise an amount of Rs. 36,728-00 was drawn through ch.No. 664209,

dt: 20-6-2007 without indicating any purpose being recorded in the cash book nor maintaining any vouchers in this regard which is construed as misappropriation of the amounts drawn. (Para No. 9 of AR on the accounts of Virava GP, Pitahapuram Mandal, East Godavari District)

71

Likewise an amount of Rs. 33,096-00 was drawn from TFC Funds through

ch.no. 664214 dt: 16-11-2007 without indicating the details of expenditure to be met and as such the drawl without any purpose is construed as misappropriation of amounts.

(Para No. 11 of the A R on the TFCA/c of Virava G. P, East Godavari for 2007-2008)

12.3.4.FUNDS DRAWN WITHOUT ANY PURPOSE - MISAPPROPRIATION –

Rs.12000/-

An amount of Rs. 27000/- was drawn from T.F.C funds vide Ch.No. 863480/03.03.2008 by Sri K.Rama Rao, Sarpanch and out of which an amount of Rs.15000/- was paid for the work of laying of pipe line which was recorded vide MB.No.123/B/00-01 but the remaining amount of Rs.12000/- was kept with him without any purpose and as such it is deemed that the amount was drawn beyond the requirement. Drawl of Funds without any purpose or non remittance of such amounts drawn is construed as misappropriation of funds and as such is recoverable.

(Para No. 2 of the AR on the TFC accounts of Singireddipalli GP, Pinapaka, MP of East Godavari District for 2007-08)

12.3.5.EXPENDITURE NOT ACCOUNTED FOR–MISAPPROPRIATION OF

FUNDS-Rs.52618/-

An amount of Rs. 52618/- was drawn from T.F.C funds vide Cheque Nos. 609545/27.04.2007 & 609546/8.10.2007 by the Surpanch Sri Tejevath Sriramulu without recording any details of expenditure in the cash book and also no vouchers or M.Bs were shown to audit for incurring such expenditure. Hence the drawl of amounts without any purpose and keeping with him is construed as misappropriation of funds and as such is recoverable. (Para No. 9 of the AR on TFC accounts of Bhagapuram GP, Mudigonda MP ,Khammam district for 2007-08)

12.3.6. RECEIPTS – COLLECTION OF TAX AMOUNTS NOT TAKEN INTO CASH BOOK – MISAPPROPRIATION : Rs.67,125/-

On verification of receipt books relating to the Bill collectors it was

observed that the amounts collected towards House Tax, Water Tax and Miscellaneous receipts to a tune of Rs.67,125/- through various receipts were not remitted into Treasury Bank as detailed below and also not taken into cash Book which is a clear case of misappropriation of funds and as such are recoverable.

72

Sl. No.

Receipt Book No.

Type of the Receipt

Collected by Amount Rs.

1 2 3 4 5 1. 268 to 286 House Tax 9813 2. 4/350 to 371 -do- 9829 3. 25/2437 to 2492 -do- G. Naga 22156 4. 19/1810 to 1803 -do- Narasimhulu, J.A. 902 5. 2/159 to 180 -do- Bhaskar, B.C. 8577 6. 13/1258 to 1260 Misc. Receipts Achyuta Reddi,

Attender 4500

7. 16/1578 to 1580 -do- Narasimhulu, J.A. 3014 8. 24/2301 to 2400 Water Tax Venkata Giri 2990 9. 4/301 to 325 -do- Tippa Reddy 2739 10. 5/401 to 450 -do- Venkataiah 2605 67125 (Para No. 17 of AR on the accounts of Makthal GP, Mahaboobnagar for 2007-2008).

12.3.7.SGRY FUNDS- CASH BALANCE NEITHER UTILISED NOR

REMITTED- Rs 94500/-

An amount of Rs. 94500/- was drawn through Ch. No. 631215/04-06 and kept on hand without any purpose and the same was not remitted even in the subsequent year i.e. 2007-08. Though the defect was pointed out at para 35 0f the AR for 2006-07 no action was taken for its remittance and as such it is clear that the amount was drawn without any purpose and it is construed as misappropriated. (Para No. 22 of the AR on the accounts of SGRY funds of Gaddapotharam GP, Jinnaram MP, Medak District for 2007-08)

12.3.8.AMOUNTS WITHDRAWN – UNACCOUNTED FOR -

MISAPPROPRIATED Rs 31741/-

An amount of Rs. 8741/- was drawn from STO Yellareddy,Nizamabad and Rs. 23,000 from Vysya Bank, Gandhari through self cheques but the same were not accounted for in cash book which is construed as amount drawn without any purpose and such is misappropriated. (Para No. 18 of the AR on the accounts of Gandhari GP, Nizamabad District for 2007-2008)

12.3.9. HUGE AMOUNTS KEPT AS CASH ON HAND – NOT REMITTED –

MISAPPROPRIATED – RS. 4,89,410/- An amount of Rs. 4,89,410/- was shown as cash on hand on 23-11-2007

i.e. on the same day on which Sri B.H. Viswanathraju, Secretary of the GP was suspended but the same was not remitted to GP funds nor accounted for, which is construed as misappropriated. (Para No. 9 of the AR on the accounts of Veeravasaram GP, West Godavari District for 2007-2008)

73

Likewise an amount of Rs. 1,17,254 was drawn from EFC, TFC and

SGRY funds and kept as cash on hand for the last 2 years without any utilization or remittance which is construed as misappropriated. (Para No. 9 of the AR on the accounts of Madhavaram GP, Krishna District for 2007-2008)

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.

A Consolidated Statement No. 9 (13) 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. 513.65 lakhs was pointed out in 3402 audit paras

13.1.1. Z.P ( GENERAL FUND ), KAKINADA, EAST GODAVARI DISTRICT -

CONSUMPTION OF PETROL/DIESEL OVER AND ABOVE THE CEILING FIXED TO THE CHAIRMAN, ZP, KAKINADA RS.1,21,503.

The Government in GO.Ms.No.371, P.R & R.D (Progs.III) Dept.,

Dated:2.8.2007 read with Govt.Memo.No.582/Progs.IV/A2/96-1, Dt:4.1.1996 of P.R & R.D Dept., instructed to impose 20% cut on petrol/Diesel limiting the maximum ceiling per Government vehicle per month on the consumption of petrol or diesel is fixed 400 litres per month to Chairman, ZP with effect from 2.8.2007.

As verified from the log book maintained by the Chairman, ZP, Kakinada in respect of the car No.AP09TR-1048/AP BA 3456, it is noticed that the consumption of petrol or diesel was exceeded in following months.

SI. NO Month

Total consumption

litres

Excess over 250/400 litres

Rate per litre Excess amount

1 3/2007 611.5 361.50 33.92 5501 2 4/2007 520 270 33.92 6909 3 5/2007 940 690 33.92 11974 4 6/2007 520 270 33.97 10565 5 7/2007 528 278 33.97 6976 6 8/2007 649 249 33.87 16368 7 10/2007 509 109 33.87 25524 8 11/2007 669 269 33.94 14389 9 12/2007 626 226 33.94 8787 10 1/2008 587 187 33.94 10833 11 2/2008 508 108 33.94 3677

TOTAL 1,21,503 (Para No. 15 (14) of AR on the accounts of ZP(General Fund), Kakinada, East Godavari District for the year 2007-08 ).

74

13.1.2. Z.P (GENERAL FUND), NALGONDA - CONSUMPTION OF PETROL/DIESEL OVER AND ABOVE THE CEILING FIXED TO THE CHAIRMAN, ZP, NALGONDA RS. 85760

Sl. No

Month Total

consumption litres

Excess over 250/400 litres

Rate per litre

Excess amount

1 3/2007 468 218 34.30 7477 2 4/2007 579.28 329.28 34.30 11294 3 5/2007 528 278 34.30 9535 4 6/2007 413 163 34.30 5591 5 7/2007 427 177 34.30 6071 6 8/2007 365 125 34.30 4288 7 09/2007 644 394 34.30 13514 8 10/2007 386 136 34.30 4665 9 11/2007 465 215 34.30 7375 10 12/2007 392 142 34.30 4871 11 01/2008 401 151 34.30 5179 12 02/2008 422 172 34.30 5900

TOTAL 85760 ( Para No. 14 of AR on the accounts of ZP(General Fund), Nalgonda for the year 2007-08 ).

13.1.3 ZP(GF), KAKINADA, EAST GODAVARI DISTRICT - CONSUMPTION

OF PETROL/DIESEL OVER AND ABOVE THE CEILING FIXED TO THE CHIEF EXECUTIVE OFFICER, ZP, KAKINADA RS.24,888

The Government in GO.Ms.No.602, P.R & R.D (Progs.III) Dept.,

Dated:4.10.1990 read with Govt.Memo.No.9558/Progs.IV/91-1, Dt:25.2.1991 of P.R & R.D Dept., instructed to impose 20% cut on petrol/Diesel limiting the maximum ceiling per Government vehicle per month on the consumption of petrol or diesel is fixed 160 litres per month.

As verified from the log book maintained by the Chief Executive Officer,

ZP, Kakinada in respect of the car No. AP5AM-3699, it is noticed that the consumption of petrol or diesel was exceeded in following months as detailed below.

SI. NO Month Total consumption

liters Excess over 160

liters Rate per liters

Excess amount

1 3/2007 279 109 33.92 3697 2 4/2007 270 110 33.92 3731 3 6/2007 250 90 33.87 3048 4 7/2007 180 20 33.87 677 5 8/2007 198 38 33.87 1287 6 10/2007 170 10 33.87 331 7 12/2007 262 102 33.94 3462 8 1/2008 325 165 33.94 5600 9 2/2008 250 90 33.94 3055

TOTAL 24,888 ( Para No. 15 (15) of AR on the accounts of ZP(General Fund), Kakinada, East Godavari District for the year 2007-08 ).

75

13.1.4. Z.P, (GENERAL FUNDS), KHAMMAM DISTRICT - CONSUMPTION OF PETROL/DIESEL OVER AND ABOVE THE CEILING FIXED BY THE CHIEF EXECUTIVE OFFICER, ZP, KHAMMAM RS.11,224

Sl. No Month Vr.No & Date Amou

nt

Total fuel Excess drawn

Rate litre Rs

Excess paid RS. Drawn Limit

1 4/07 80/15.7.07 9855 250 200 50 36.80 1840 2 5/07 164/13.7.07 8005 225 200 25 36.80 920 3 6/07 217/08.08.07 8780 210 200 10 36.80 368 4 7/07 252/31.8.07 7610 200 200 10 36.80 368 5 8/07 352/05.11.07 8495 200 200 30 36.80 1104 6 01/08 628/27.03.08 14680 200 200 180 36.80 6624

TOTAL 1285 1200 305 36.80 11224

( Para No. 28 of AR on the accounts of Z.P (General Funds), Khammam District for the year 2007-08 ).

13.1.5. Z.P ( GENERAL FUND ), NALGONDA - CONSUMPTION OF

PETROL/DIESEL OVER AND ABOVE THE CEILING FIXED TO THE CHIEF EXECUTIVE OFFICER, ZP, NALGONDA

SI.NO Month

Total consumption

litres

Excess over 160 litres Rate per litre Excess

amount

1 3/2007 202 42 34.30 1441 2 4/2007 401.78 241.78 34.30 8293 3 5/2007 279 119 34.30 4082 4 6/2007 317 157 34.30 5385 5 7/2007 235 75 34.30 2573 6 8/2007 266 106 34.30 3636 7 09/2007 339 179 34.30 6140 8 10/2007 285 125 34.30 4288 9 11/2007 240 80 34.30 2744 10 12/2007 189 29 34.30 995 11 01/2008 251 91 34.30 3121 12 02/2008 230 70 34.30 2401

TOTAL 45097

( Para No. 14 of AR on the accounts of ZP(General Fund), Nalgonda for the year 2007-08 ).

13.1.6. E.E, PANCHAYAT RAJ (RWS), KAKINADA, EAST GODAVARI

DISTRICT - WORKS – PAYMENT MADE WITHOUT DEDUCTING THE 1% OF LABOUR CESS – RS.13,495.

As verified from the M.Book and Vouchers, the following works were

executed by the Deputy Executive Engineer, Panchayat Raj (RWS) Peddapuram under 9% ZP ( General Fund ). As verified from the memo of payments, the payment was made without deducting the 1% of labour cess from the total value

76

of work done. According the GO.MS.No.41 LET & F department dt:30.4.07, the labour cess has to be recovered @ 1% from the total values of work done for welfare of construction workers. Hence, an amount of Rs.13,495 excess amount paid.

SI. No.

Vr. No & date Name of the work

Total value of work done

1% of labour cess to be deducted

1 8/26.7.07 Improvements to PWS scheme at Jagapathinagaram of Kirlamupudi Est:5 lakhs

500000 5000

2 9/26.7.07 Improvements to PWS scheme at Mukkolu of Kirlampudi M, Est:5 lakhs.

500000 5000

3 11/28.10.07 Extension of pipeline at P,Konthamuru. Est:3.50 lakhs 349514 3495

TOTAL 13,495

( Para No. 12(5) of AR on the accounts of E.E PR (RWS), Kakinada, East Godawari District for the year 2007-08 ).

13.1.7. EEPR, ANANTAPUR, ANANTAPUR DISTRICT -WORKS-

“MAINTANANCE OF R/F KATHIMANUPALLI TO RAMANNA GUDISELU – REACH –II OF YADIKI MANDAL – EXCESS PAYMENT DUE TO WRONG CALCULATIONS – RS.6258.

Vr.No: 28/27.11.07, MB.No.153/2002, Estimate cost Rs.2.50 Name of the contractors. Sri S. Venkata Ranga Reddy, UDC President.

a) In page no.8 and 9 of the M.Book, the total no of contents of the item “ C.C. (1:4:8) using 40MM HBT metal including cost and conveyance of all materials and labour charges etc., completed” is calculated as 13.66 and 4.68 but the actual calculation is 13.30 and 3.12 as follows.

Contents as per M.Book 13.66x2002.90 =27359.61 4.68x2002.90 = 9373.57 = 36,733.18 Actual / Correct total 13.30 x 2002.90 = 26638.57 3.12 x 2002.90 = 6249.05 32,887.62 Difference = 36733.18 – 32887.62 = 3845.56.

b) In p.no.10 of the M.Book the total no of contents of the item “ C.C. (1:3:6) using 1/3rd 20MM HBG metal and 2/3rd of 40MM HBT metal including cost and conveyance of all materials and labour charges etc., completed” and the total contents taken as 40.51 instead of 39.72.

77

Contents as per M.Book : 40.51 x 3053.87 = 123712.27 Actual / Correct total : 39.72 x 3053.87 = 121299.72 Excess = 123712.27 – 121299.72 = 2412.55 Therefore Excess of ( a + b ) = 3845.56 + 2412.55 = 6258.11 or 6258 ( Para No.7(3) of AR on the accounts of EE PR, (SFC Funds) Anantapur, Anantapur District for the year 2007-08 ).

13.1.8. ZP, KADAPA.DISTRICT

As verified form the Pension payment order of Smt A.Venkatamma PPO No.19 – MP it is noticed that commuted value of Rs:2778-00 w.e.f 4-10-1996 @ Rs:236-00 PM. Instead of deducting the commuted value from pension the full pension was paid to her from 02/07 to till audit.

Period : 2/07 to 1/09 Rs:236 PM X 24 = 5664-00 An amount of Rs:5664-00 was paid excess.

(Para No.46, ARs on the Accounts of ZP, Kadapa District, for the year 2007-08 )

13.1.9. Z.P. KAKINADA, EAST GODAWARI DISTRICT - EXCESS PENSION

PAID TO Smt B.Lakshmi W/o Late B.Appala Swamy Deceased Sweeper Rs.72,852-00

As per voucher No.198/7.07, Smt. B.Lakshmi W/o late B.Appala Swamy,

Deceased sweeper, was sanctioned for life time arrears of pension plus relief for 27 Months for the period from 1/4/2005 to 30/6/2007 vide Progs. R.C No.P1/1532/2008 dt 12/7/2007 of the chief Executive Officer, ZP, Kakinada. But while preparing the bill it was erroneously claimed for 48 months instead of 27 months and paid excess payment to a tune of Rs.72852-00 as worked out below.

Sl No Period

To be drawn Already drawn Excess

Pay DA Total Pay DA Total

1 1-4-05 to 30-6-05

3065 231 (7.536)

3296X3 =9888

3065 231 (7.536) 3296X6 =19776

2 1-7-05 to 31-12-05

3065 346 (11.304)

3411X6 =20466

3065 346(11.304) 3411X6 =20466

3 1-1-06 to 31-12-06

3065 433 (14.13)

3498X18 =62964

3065 433(14.13) 3498X36 =125928

TOTAL Rs.93,318

Rs.1,66,170 Rs.72,852

166170-00 – 93318-00 = 72852-00

(Para No.15(9) of AR on the Accounts of GF, ZP, Kakinada District for the year 2007-08 )

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13.1.10.Z.P.-KAKINADA, EAST GODAWARI DISTRICT - EXCESS PENSION PAID TO Smt R.Lakshmi W/o Late Nagaraju, Deceased Sweeper Rs.10,452-00

As verified from the voucher No.196/7.07 it is noticed that Smt.

R.Lakshmi W/o Late R.Naga Raju, Sweeper is sanctioned for life time arrears of pension plus relief for 3 months for the period from 1/4/2005 to 30/6/2005 vide Progs. Rc.No. P1/1523/2008 dt.10/7/2007 of the Chief Executive Officer, ZP, Kakinada. But while preparing the bill as per the said order it was erroneously claimed for 6 months instead of 3 months and paid excess payment to a tune of Rs.10,452-00 as worked out here under. Hence the excess payment thus made would need to recovered from the person or persons responsible and made good to General Funds.

Sl No Period

To be drawn Already drawn Excess

Pay DA Total Pay DA Total 1 1-4-05 to

30-6-05 3240 244 3484x3

=10452 3240 244 3484x6

=20,904 10,452

13.1.11.Z. P. - SRIKAKULAM DISTRICT - Double Payment of Pensions to Certain

Pensioners of Non-Provincilised staff from ZP General Funds Rs.11,540.

An Amount of Rs.11450 was drawn and double payment made towards pension as detailed below. The pensions for the months of 9/2007 to 11/2007 have been drawn and paid to the following pensioners for the first time.

Sl No

Name of the pensioner

9/07 Vr No.Dt

267/29-9

10/07 Vr No.Dt

346//5-11

11/07 Vr No.Dt

423/5-12 Total

1 Sri N.Kannu 3064 3242 3242 9548 2 Smt B.Neelamma 0 2629 0 2629

Total 3064 5871 3242 12177

Again the following amounts were drawn and paid to the said pensioners for the said period as noted against each which is highly irregular.

Vr No. Dt Name of the Pensioner

Period for which pension Drawn Amount

519/5-1-2008 Sri N.Kannu 9/07 to 16-11-07 8569-00 619/21-1-

2008 Smt B.Neelamma 10-2007 2971-00

1 to 4-11-07 (Previously not deawn)

(316-00) Total 11,540-00

( Para No.20 of AR on the Accounts of ZP (General Funds), Srikakulam District for the year 2007-08)

79

13.1.12.ZP, KAKINADA , EAST GODAWARI DISTRICT - HOUSE RENT ALLOWANCES-SHORT RECOVERY FROM Sri G.Nagesh Babu, Chief Executive Officer who occupied ZP Quarters consequential loss to ZP Funds Rs.38087/-

Sri G.Nagesh Babu, Chief Executive Officer, ZP, East Godavari District,

Kakinada has remitted an amount of Rs.4000/- p.m to ZP funds through challans towards for the ZP quarters rent. But as per G.O.Ms.No.239 F&P (FW.PC-II) Department dated:26-9-2005, all Government servants who have been provided with quarters are not entitled for HRA, besides recovery of 10% emoluments towards the rent. Consequent on the short remittance of rent, the ZP has sustained loss of Rs.38087-00 as detailed below.

Month & Year

Emoluments Pay+DA+CCA

Total Amount of rent to be paid to ZP

Amount remitted to ZP

Short remittance

3/2007 24900+4691+80=29671 6967 4000 2967 4/2007 24900+4691+80=29671 6967 4000 2967 5/2007 24900+4691+80=29671 6967 4000 2967 6/2007 25600+4823+80=30503 7050 4000 3050 7/2007 25600+6270+80=31950 7195 4000 3195 8/2007 25600+6270+80=31950 7195 4000 3195 9/2007 25600+6270+80=31950 7195 4000 3195 10/2007 25600+6270+80=31950 7195 4000 3195 11/2007 25600+7717+80 7339 4000 3339 12/2007 25600+7717+80 7339 4000 3339 1/2008 25600+7717+80 7339 4000 3339 2/2008 25600+7717+80 7339 4000 3339

Total 38087

(Para No.15(8), ARs on the Accounts of Zilla Parishat, KAKINADA District for the year 2007-08 )

13.1.13.Z.P.-SRIKAKULAM, SECONDARY EDUCATION FUND - Automatic Advancement Scheme – Appointment OF Sri K.V.Ramana Murthy, Record Assistant, Z.P.H.School, BODDAM TO Special Grade post in the cadre of Record Assistant – Irregular – Excess payment Rs:23,963-00

Sri K.V.Ramana Murthy Record Assistant, ZP High School, Boddam

was appointed as attender on 10-12-1979 and promoted as Record Assistant on 6-10-1990.

As per G.O.Ms.No.45 Fin & Plg (FWPC-II) Department 15-2-1993 read

with G.O.(P) No.241 Fin (PC-I) Department dated 28-9-2005 he was awarded SAPP-I Scale basing on the total service in the category of Attender and Record Assistant with effect from 10-12-1995. But he was sanctioned special grade scale in the cadre of Record Assistant with effect from 06-10-1998 vide proceeding Rc.No.5620/2000/C3 dated 5-8-2000 of the chief Executive Officer, ZP, srikakulam and his pay was fixed @Rs:4070/- basing on the pay @Rs:3950/- w.e.f 6-10-1998 in the Record Assistant cadre, for which he is not eligible.

80

Therefore the pay of the individual has to be revised as detailed below and consequential excess payment amounting to Rs:23963-00 as worked out below would need to be recovered from the above individual.

Pay Fixed and Drawn Pay Admissible

Date Pay Date Pay

06-10-1998 3950 06-10-1998 3950

06-10-1998 (Spl Gr.RA) 4070

01-12-98 4190 01-12-98 4070 01-12-99 4310 01-12-99 4190 01-12-00 4430 01-12-00 4310 01-12-01 4550 01-12-01 4430 01-12-02 4700 01-12-02 4550 01-12-03 4850 01-12-03 4700 01-12-04 5000/7385 01-12-04 4850/7200 01-12-05 7570 01-12-05 7385 01-12-06 7770 01-12-06 7570 01-12-07 7970 01-12-07 7770 01-12-07 8170 01-12-07 7970

(Para No.10, ARs on the Accounting of Zilla Parishat, Srikakulam District for the year 2007-08)

13.1.14.Z.P. GENERAL FUND, SRIKAKULAM, SRIKAKULAM DISTRICT -

Automatic Advancement Scheme – Appointment of Sri B.Venakata Rao, Record Assistant, Z.P.H.School, Srikakulam to special grade post in the cadre of Record Assistant – Excess payment Rs:12199-00

Sri B.Venakata Rao, Record Assistant, ZP High School,Srikakulam, he

was appointed as attender on 13-3-1984 and promoted as Record Assistant on 21-2-1997.

As per G.O.Ms.No.45 Fin & Plg (FWPC-II) Department 15-2-1993 read

with G.O.(P) No.241 Fin (PC-I) Department dated 28-9-2005 he was sanctioned SAPP-I Scale based on the total service in the category of Attender and Record Assistant with effect from 20-9-2000. But he was sanctioned special grade scale in the cadre of Record Assistant with effect from 21-2-2005 vide proceeding Rc.No.4593/C3/2007/C3 dated 21-11-2007 of the chief Executive Officer, ZP, srikakulam and his pay was fixed @Rs:7385/- basing on the pay @Rs:7200/- w.e.f 21-2-2005 in the SAPP-I scale (combined service) for which he is not correct.

Therefore the pay of the individual has to be revised as detailed below and consequential excess payment amounting to Rs:12199-00 as worked out below would need to be recovered from the above individual.

81

Period Pay Drawn Pay Admissible Differen

ce per month

Total Excess payment Pay DA HRA Total PAY DA HRA Total

21-2-05 to

28-2-05

2110 159 263.75 2532.8 2057 155 257 2469.1 63.619 63.6191

3-05 to 6-05

7385 557 923.125 8864.7 7200 542.6 900 8642.6 222.07 888.266

7-05 to 8-05

7385 835 923.125 9142.9 7200 813.9 900 8913.9 229.04 458.075

9-05 to 12-05

7570 856 946.25 9372 7385 834.8 923 9142.9 229.04 916.15

1-06 to6-06

7570 1070 946.25 9585.9 7385 1044 923 9351.6 234.27 1405.59

7-06 to 8-06

7570 1426 946.25 9942.4 7385 1391 923 9699.5 242.98 485.958

9-06 to 12-06

7770 1464 971.25 10205 7570 1426 946 9942.4 262.68 1050.72

1-07 to 6-07

7770 1903 971.25 10644 7570 1854 946 10370 273.98 1643.9

7-07 to 8-07

7770 2342 971.25 11083 7570 2282 946 10798 285.29 570.576

9-07 to 12-07

7970 2402 996.25 11369 7770 2342 971 11083 285.29 1141.15

1-08 to 6-08

7970 2853 996.25 11819 7770 2781 971 11523 296.59 1779.55

7-08 to 8-08

7970 3378 996.25 12345 7770 3294 971 12035 309.78 619.56

9-08 to 12-08

8170 3463 1021.25 12655 7970 3378 996 12345 309.78 1239.12

TOTAL 12198.6 (Para No.16, ARs on the Accounting of Zilla Parishat, Srikakulam District for the year 2007-08 )

13.1.15.ZP, GENERAL FUNDS, NIZAMABAD DISTRICT- VIP VISIT

EXPENDITURE MORE THAN CEILING FIXED BY GOVERNMENT --- RS.36,000.

As per GO.Ms.No.229/PRUD, Dt:17.6.1997, an amount not exceeding

Rs.1000 may incur towards visit of VIPs. In the voucher no.38/07, dt:2.6.2007 an amount of Rs.37000 was paid to

District youth services, Nizamabad, through cheque No.771824, dt:2.6.2007.

Expenditure incurred for VIP visit 37000

Admissible expenditure 1000 Excess paid 36000

(Para no. 14 of AR on the accounts of ZP(GF), Nizamabad District for the year 2007-08)

82

13.2.1 MPS

As per the orders issued in GO.Ms.No.1599 PR Dept., Dt:4.11.03, the MP Development Officers are permitted to engage hired vehicles for 10 days in a month and hired charges per day fixed @ Rs.433/- including fuel charges Driver batta etc.,

But the hired vehicle was engaged for more than the fixed days (10) and

expenditure incurred in gross violation of rules prescribed by the Government as shown below.

SI.No

Name of the Mandal

Name of the District

Para No

Actual Amount paid

Amount Eligible

Excess amount

1 Kundurg Mahaboobnagar 7 80778 51960 28818 2 Wankidi Adilabad 14 73888 51960 22650 3 Sadam Chittor 7 63650 51960 11690 4 Muddanur Kadapa 26 56290 51960 4330 5 Vijayanagaram Vijayanagaram 12 11320 8660 2660 Total 285926 216500 70148

13.2.2. EXCESS PAYMENT – TELEPHONE BILL

As per GO.Ms.No.583 GAP (OP.2) Dept DT: 26.10.1988, telephone bill at Mandal level should not exceed Rs.1000 per month. If the limit crossed the excess payment of the telephone bill. It to be taken to the notice of the MP general body meeting, that shall be approved by the committee and send it to the Government for ratification.

Telephone register shall be maintained in the prescribed form. All the calls

shall be recorded in the register. All the private calls shall be charged and recovered from the persons responsible and credited to the MP funds.

MADDIPURAM MP, ONGOLE DISTRICT.

SI. No

Name of the Mandal Name of the

District

Para No

Actual Amount paid

Amount Eligible

Excess amount

1 Maddipuram Ongole 11 26035 10000 16035

2 Vajrakauru Anantapur 11 23131 12000 11131

3 Gooty Anantapur 11 16696 8000 8696

4 Tekkali Srikakulam 9 25234 12000 13234

5 Vajrapukotturu Srikakulam 10 16612 12000 4612

Total Rs. 53708

83

13.2.3. PAMIDI MP, ANANTAPUR DISTRICT - WORKS – EXCESS PAYMENT – RS.14282/-

Name of the work : Improvements to the road from Katrimala to G.A.

Kottala. Name of the contractor : Sri K.P. Ranga Reddy, S/o Golla Reddy, Dimmagudi. Voucher No & Amount : 57/17.5.07 Rs.60000

355.09 cum of gravel was collected vide P.No.44 of the M.Book and out

of that, 306 cum contents of gravel was only used for spreading vide P.No.48 of the M.Book and 48.98 cum contents of gravel was left in the work unutilized. Hence, the payment made towards excess collected gravel of 48.98 cum contents has to be recovered at double the rate.

Excess collected gravel Rate per cum Excess amount

48.98 cum 145.80 per cum x 2 Rs.14,282 (Para No.7(3) of AR on the accounts of Pamidi MP, Anantapur Dist for the year 2007-08 )

13.2.4. V.Kothapalli -MP –– East Godawari District

In the following vouchers an amount of Rs.102865/- was drawn and paid to Mandal Engineering Officer towards the execution of a work as shown under, but according to the measurements of the work recorded in the M.Book No.900 A/01-02, the value of the work executed was for Rs.69611/-. After deduction of seinerage charges of Rs.1746/- the net amount payable to the MEO is Rs.67865/-. But an amount of Rs.102865/- was paid. Therefore, Rs.35000/- excess payment was made. Hence the same would need to be recovered from the MEO or from the persons responsible.

VRNo. Date Particulars of the work Amount

Paid To be paid

Excess Rs.

105/13-09-07 CC Road at Kondavaram Advance to AE 35000 - -

141/13-11-07 -do- 30000 - - 232/12-03-08 -d0- 37865 67865 35000

Total 1,02,865 67,865 35,000 (Para No.8 of AR on the accounts of V.Kothapalli, East Godawari Dist for the year 2007-08)

13.2.5. MP – Mylavaram – Kadapa District

During the course of audit on the accounts of General Funds of Myalvaram

MP for the year 2007-2008, it was noticed that the work of providing CC Road in Pedda Komerla was excecuted from the MP funds. The value of work done is Rs.200000-00 and recoveries effected Rs.21223-00 and an amount of Rs.178777-00 is to be paid. But the MP paid Rs.188777-00 instead of Rs.178777-00 in excess of Rs.10,000/- to the contractor namely C.Rajeswari, Supriya Self Help Group, Peddakomerla. Excess payment of Rs. 10,000/- would need to be recovered from the persons responsible.

84

VRNo. Date

Particulars of the work

Amount Rs.

Recoveries Rs.

Amount to be paid

Amount paid Rs.

Excess Rs.

161/D194053, 29-09-2007

Providing CC Road in

Peddakomerla 2,00,000 21,223 1,78,777 1,88,777 10000

(Para No.26 of AR on the accounts of Mylavaram MP, Kadapa Dist for the year 2007-08 )

13.2.6. BOBBILI MP, VIJAYANAGARAM DISTRICT - INADMISSIBLE

PAYMENT OF CENTERING CHARGES DUE TO AVOIDING IN THE ESTIMATES – EXCESS PAYMENT – RS.9316.

An amount of Rs.9316 was incurred towards centering charges as the same

was provided in the estimates which is inadmissible for the construction of C.C. Drain walls etc as the same are being included While preparation of data sheet the Centering Charges and there by the rate for item of work was escalated.

SI No Name of the work Vr.No.

& date

Rate of CC allowed in Estimate

Rs.

Executed quantity

Total excess

payment

1

Construction of cc drain at Kota Veedhi E. Ragarayapuram

MB.No.3080-A (CCF & F)Estt. Cost 40000/-

160 143 9.45 1351

2

Construction of pipe culvert at School road in

G.T.Valasa C.C.S&F MB.NO.3082-A CCS&F

124 &141 143 6.34 606.62

or 907

3 -- 126 143 0.58 83

4 F/O CC road in Gollaveedhi of

Mettavalasa village 2 143 14.06 2011

5

G&M of CC road C.N.S Temple from R&B road

to steps of Temple at penta.

183 143 10.86 1553

6 C.C.Drain in Chakali Stret at Chinatada village 161 143 10.53 1506

7 F of C.C.Drain in ST

colony at Karada village 2490-40(20,172)

179 143 13.32 1905

TOTAL 9,316 ( Para No.22 of AR on the accounts of Bobbili MP, Vizianagaram District for the year 2007-08

85

13.2.7. GARUGUBILLI – MP, VIJAYANAGARAM DISTRICT - PAYMENT MADE FOR MORE THAN THE WORK RECORDED IN M.BOOK – RS.7495

Voucher No. :20/28.3.2008 MB.No : 1522/A S.S.A. Grant Departmental Execution : Ch. Ravi, MEO.,

As verified the M.Book No.1522/A in respect of the work construction of

MPUP School, Uddavolu, it was noticed that payment made for more than the work recorded as detailed under.

Item of work Actual Execution

Payment made for

Excess quantity

Rate per Rs.

Excess Amount

1. Rcc 1:2:4 using 20 mm HBU with 75 mm thick page.No.67 of MB Varanda over window

11.65 Rm 16.85 Rm 5.2 Rm 128.80 370

2. Brock work 1:6 page No. 63& 68 11.75 12.19 44 1566.3

0 689

3. Steel Page No.58, 62, 64 & 69.

1572.97 Kgs

1978.45 Ltd1750

177.03 Kgs 34.66 6136

Total 7495 ( Para NO. 20 of AR on the accounts of Garugubill MP, Vijayanagaram District for the year 2007-08 ).

13.2.8.VAT – PURCHASE OF MATERIALS

As per chief Engineer, RWS, Hyderabad Memo No.JE1/45119/PC187/89, Dt:28.12.1987 the APGST/VAT claimed in the bill shall be separated and deducted by the department and paid to concerned CTO through crossed cheque/D.D.

But the following cases executive officers was not followed the instruction

and paid the excess amount without deducting the VAT charges.

SI.No

Name of the Mandal

Name of the Dist

Name of the work

Para No

Actual Work done

VAT not

deducted

1 Mudugu Mahaboob

Nagar District

GI Pipes and spare parts

works 17 154725 5950

2 Mancherial Adilabad District

Purchase of bore well spare

parts. 9 62426 2401

3 Thallada khammam District

Purchase of spare parts

08 113335 4533

86

4 Pyapally Kurnool District

Providing CC road and

Compound wall 19 865007 34597

5 K.Kotapadu Vishakapatnam District

Execution of pipe line at

Chowluwada 19968 798

6 G.K.VEEDHI

Vishakaptnam District

Construction of CC Drain and

Culvert 12 919757 36790

7 Amarthalur Guntur District

Formation of Metling road 5(a) 59651 1551

13.2.9. EXCESS PAYMENT – WORK BILLS – NON-DEDUCTION OF I.T

Government in GO.Ms.No.159 Transport road & building (R.III) Dept

dated 3.10.2004 have issued orders for the recovery of Chief Minister Relief fund @0.15% and 0.10% from the Gross Value of the works executed and remit to the Chief Minister Relief fund and NAC respectively. The I.T @2.24% was also not recovered from the work bills as worked out below .

SI.No.

Name of the Mandal

Name of the Dist

Name of the work

Para No

Actual Work done

VAT not deducted

1 Garladinne

Anantapur District

Improvement to road andRepairs

to MP.Ele. School building

10 629534

15803

2 C.Belalgal Kurnool District

Providing compound wall Extension of

open pipe will

13 559506 13924

3 Parvathipuram

Vijayanaragam

District

Repairs and Construction of

CC road 8 201322 5014

4 Vadamalpet Chittor District

Construction and Maintenance 7 128236 2873

13.2.10.RUDRAVARAM MP, KURNOOL DISTRICT - WORKS – VAT, NAC &

CMRF NOT RECVERED RS.6,940

The following amounts were not recovered from the work bills towards VAT, NAC & CMRF as shown below. Consequently paid excess amount Rs.6940/-.

87

SI. No. Name of the work

Total value of

work

VAT @ 4%

NAC @0.10%

CMRF @

0.15% Total

1

Completion of incomplete MPUP School at Chinnakambadur (MB.NO.8223-A/P.36 to 41)

36710 1468 37 55 1560

2

Metalling the road from M. Thirupalu house to Society Building in S.C Colony at Rudravaram(mb.No.8226 -A/P.19)

3248 1297 32 49 1378

3

Construction of toilet box to MP Building at Rudravaram (MB.No.8210-a/p.11)

94169 3767 94 141 4002

TOTAL 6532 163 245 6940 ( Para No. 13 of AR on the accounts of Rudravaram MP, Kurnool District for the year 2007-08).

13.2.11.DUGGIRALA MP, GUNTUR DISTRICT - WORKS – RICE ISSUED –

DEDUCTED RICE COMPONENT FROM THE FIRST PART BILL – AGAIN AMOUNT PAID IN 2ND & PART BILL – EXCESS PAYMENT – RS.32,000.

Name of the work: Providing CC to internal roads in Tummapudi (village) MB.No. 921 (B)/05-06. Admn. Sanction: Prog. Roc.No.30/05 A, Dt:8.12.05 of MP Development Officer, MP, Duggirala. Tech.Sanction: SDR.NO. 402/05-06, DT:6.02.06 of Deputy Executive Engineer P.R, DUGGIRALA. Voucher No.1/4.07 à Rs.64,234

12/5.07 à Rs.32,000

On verification of M.Book, it was observed that , at Page No.7 of M.Book, the cost of Rice issued + the work was calculated as Rs.32,000 {4000KGs x Rs.8} and the same amount of Rs.32,000 was deducted in the 1st & part bill of the work, as detailed below. @ Page No.13 of M.Book Total value of work done: Rs.1, 04,085 Add Q.C Rs, 520

Rs.1, 04, 605

88

DEDUCTIONS Q.C : 520 VAT : 4163 Seigniorage : 3688 Cost of Rice : 32000 Rs. 40,371 1, 04, 605 (-) 40, 371 ------------------- Net Rs. 64, 234 ------------------- The same was paid in voucher no.1/4.07 for Rs.64,234

At page no.14 to 15, the IInd and part bill was recorded and arrived total

value of work done as 1, 04, 085 (same as 1st part bill) and at page no.16 the memo of payment was recorded as detailed below.

Total value of work done: 1, 04,605 Deduct: net paid amount in 1st x part bill Through vr.No.1/4.07 64,234 (ii) Q.C 520 (III) VAT 4,163 (iv) Seigniorage 3,688 ---------------------- 72,605 ----------------------- Net amount paid through Vr.No.13/5.07 Rs. 32,000 ( Para No.6 of AR on the accounts of Duggirala MP, Guntur District for the year 2007-08 ).

13.2.12.MENTADA, MP - VIZIANAGARAM DISTRICT - WORKS –

SEIGNIORATE CHARGES NOT RECOVERED RESULTED IN EXCESS PAYMENT - Rs: 29,212/-

The Seignorage charges were provided in the data and also in estimate, on

the items of earth work, gravel, sand and Metal @Rs.20/- ,Rs.36/- and Rs.45/- respectively per cubic meter for the works carried out. The Seignorage Charges provided would need to be recovered from the work bills and need to be remitted to Assistant Director of Mines, Vizianagaram District. while making payments, the Seignorage charges were not recovered, resulted in excess payment.

89

Sl No

Name of the work

Vr. No.& Date

Estt Value Rs.in Lakhs

M.Book No

Execution of Earth work in CMs

SCs per CM

Excess paid due to non

recovery of SCs`

1 Grawaling the Road from

29/8-6-2007

1-00 3569A 1089.12 20/- 21782 2 Con of CC

retaining wall 70/22-

10-0.60 3569A 24.26 20/- 485

3 Con of CC Drain in Golla

75/12-11-

0.60 3566A 29.14 20/- 583 4 Con of DW well

Plat Farm in 76/12-

11-0.15 3566A 6.57 20/- 131

5 Con of Ratcha Banda near

78/20-11-

0.30 3569A 6.75 20/- 135 6 Con of CC Ist

and Final bill 79/20-

11-1.20 7A 143.18 20/- 2864

7 Con of CC drain from

81/22-11-

0.60 1423A 33.46 20/- 669 8 Con of CC drain

near Neelati 82/22-

11-0.60 1423A 30.58 20/- 612

9 Con of CC drain near Neelati

85/05-12-

0.30 3566A 7.67 20/- 153 10 Con of CC

Drain from 86/17-12-07

0.60 3565A 37.35 20/- 747 11 Con of CC drain

from S.Krishna 87/17-

12-0.60 3564A 3 20/- 60

12 Con of CC drain from Sivalayam

105/22-1-2008

0.60 2128A 18.74 20/- 375 13 Laying of CC

road from 110/25-2-2008

0.50 3561A 30.79 20/- 616 TOTAL: 29212

( Para No.19 of AR on the Accounts of Mentada, MP, Vijayanagaram District for the Year 2007-08 )

13.2.13.MP –Chillakuru, Nellore District -PAY AND ALLOWANCE – FAMILY PLANING INCENTIVE INCREMENTS DRAWN AFTER 01-07-1998 – Rs. 18,945

As per clarification issued in Govt.Me mo.No.1943/32/A1/PC-1/2006, Dt:03.03.2006, the employees are not eligible for sanction of family planning incentive increment on or after 01.07.1998. The family planning incentive increment was sanction to the following employees in violation of Government rules in Chillakur MP.

SI.

No Name of the employee Rate of

F.P I/C Date of sanction Excess paid

1 Sri kalluri Amose Babu,

Superintendent

75 1.08.98 75X115 Months= 8625

2 Sri C.Vijayakrishna Vardhan,Junior Assistant

120 01-02-2001 120x86

Months=10320

TOTAL 18,945

( Para No.15(i) of AR on the accounts of MP Chillakur, SPSR Nellore District for the year 2007–08 )

90

13.3 GPs: 13.3.1 DHARMARAJUGUDEM GP, LINGAPALEM MP, W.G DISTRICT -

WORKS – EXCESS PAYMENT – CONSTRUCTION OF SIDE DRAIN AT WEST HARIJANAWADA – RS.37186

Estimate cost : 80000 MB.No : 170/A/2006-07/GP/SGRY, Page No.96 Voucher no & date : 1/18.6.2007 Rs.31125

On verification of construction of side drain at west Harijanawada, excess payment was noticed as shown below.

Total value of work done Rs.78608 Deductions Seigniorage (-) Rs.3144 Amount to be paid Rs. 75564 Paid on last year 06-07 Rs. 44500 Rs. 31064 Rice cost Rs. 34125 Vr.No. 1/18.6.07 Rs. 34125 Rs. 68250 Excess payment Rs. =68250 – 31064 = 37186

An amount of Rs. 34125 for rice for the year 2006-07 was adjusted towards rice portion in the work but they again paid an amount of Rs. 34125 for the year 2007-08. (Para No.14 of AR on the accounts of Dharmarajugudem GP, Lingapalem MP, West Godawari District for the year 2007-08 )

13.3.2. GILLELLAGUDEM GP, POLAVARAM MP, W.G. DISTRICT - WORKS –

EXCESS PAYMENT – CONSTRUCTION OF GRAVEL ROAD AT KUNKALA VILLAGE – RS.25644

Estimate cost : 1,50,000 MB.No : 179/GPJ/ Page No.61

On verification of construction of Gravel Road at Kunkala Village, excess payment was noticed from records as shown below. Total value of work done Rs.1,29,966 Deductions Seigniorage Rs. 19,405 TOT Rs. 5,199 Rice Rs. 37,040 Total (-) Rs. 61,644 Amount to be paid Rs. 68,322 Paid on last year 06-07 Rs. 27,000 Balance Rs. 41,322 Amount paid in 2007-08 Rs. 66,966 Excess payment Rs = 25,644 Excess amount paid would need to be recovered from the persons responsible. (Para No.5 of AR on the accounts of Gillelagudem GP, Polavaram Mandal, West Godawari District for the year 2007-08 )

91

13.3.3. ALLAGADDA GP(N), KURNOOL DISTRICT-- REPAIRS – EXCESS PAYMENT Rs.5525=00

Repairs was made to tractor engine (AP21U3016) and to spare parts for

Rs.33,475/- as per Voucher No.195/29-09-07. But an amount of Rs. 39000 was paid through cheque no.776464, Dt:29.9.07 to Gayathri Tractor Spares, Allagadda. Hence, excess amount is Rs. 5525/-.

SI.No

Name of the GP Name of the work Para

No Net amount

Eligible Amount

paid Excess paid

1 Allagadda Tractor Engine Repair Charges 24 33475 39000 5525

13.3.4. GADDAPOTHARAM GP, JINNARAM MP, MEDAK DISTRICT - WORKS

– EXCESS PAYMENT MADE TO THE CONTRACTORS OVER AND ABOVE THE VALUE OF WORK DONE – RS.196692

Ch. No & date

Name of the work

Name of

agency

Gross value of work done

Seigni- orage VAT I

T NET MB .No

Pg No

435893/

17.8.07

Laying of CC road in

front of VIRCO

Chemicals

N. Pratap Reddy

193699 23940 -- -- 169758 103/B/04 20

--do--

Construction of RCC

NP3 900MM culvert at north lab.

--do-- 182825 4024 7313 -- 171488 40/B 5

Total 341246

But paid -- -- -- -- -- 441246 -- --

Excess -- -- -- -- -- 100000 -- --

b.

Ch. No &

date

Name of the work

Name of

agency

Gross value of

work done

Seigni-

orage VAT IT NET MB.

No

Page

No.

435898/ 29.9.07

Supply and delivery of 900 mm RCC pipes

N. Pratap Reddy

70453 2819 -- 73271 40/B 5

--do--

Metalling of road from CC road to Mythri Lab

--do-- 84765 7302 3391 -- 74072 43/B 8

Total 147343 But paid -- -- -- -- -- 215000 -- Excess -- -- -- -- -- 68458 --

92

c.

Ch. No & date

Name of the work

Name of agency


VAT IT NET MB.No

Page No.

667158/ 12.12.07

Construction of kitchen shed a Alinagar

K.Srinivas 49848 -- -- 49848 1369/A 85

--do-- Construction of kitchen shed at Kishtaipalli

K. srinivas 40003 -- -- 40003 1369/A 87

Total 89851 But paid -- -- -- -- 100000 -- -- Excess -- -- -- -- 10149 -- --

d. Ch. No &

date Name of the

work Name of agency NET MB.No Page

No. 435883/ 6.07.07

Laying of CC roads

N. Pratap Reddy

132354 1310/B/GP /2005

19

--do-- --do-- --do-- 14405 1309/B/GP/ 2005

28

--do-- --do-- --do-- 15218 104/B 71 --do-- --do-- --do-- 16417 1316/B 19 --do-- --do-- --do-- 3391 104/B Total 181915 But paid -- 200000 -- -- Excess -- 18085 -- --

• All parts payments are shown in the “D” A+B+C+D= Rs. 196692 ( Para NO. 15 of AR on the accounts of Gaddapotharam GP, Jinnaram MP, Medak District for the year 2007-08 )

13.3.5. BOLLARAM GP, JINNARAM MP, MEDAK DISTRICT - WORKS –

EXCESS PAYMENT MADE TO THE CONTRACTORS OVER AND ABOVE THE VALUE OF WORK DONE – RS.169631

a.

Ch. No & date

Name of the work

Name of

agency


Seigni-

orage VAT IT NET MB

.No Pg No.

547301/

23.4.07

Laying of CC road

N. Pratap Reddy

500000 8706 20000 10557 460737 344/B 8

547301/

23.4.07

Laying of CC road

N. Pratap Reddy

500000 8877 20000 10553 460570 344/B 9

547301/

23.4.07

Laying of CC road

N. Pratap Reddy

500000 4756 10850 5727 249925 344/B 10

Payable -- -- -- -- -- 1171252 -- -- But paid -- -- -- -- -- 1205500 -- -- Excess -- -- -- -- -- 34268 -- --

Check measured on 1.10.2007, but the payment was made on 23.04.07 which shows the advance payment.

93

b. Ch. No & date

Name of the work

Name of agency


Seigni orage

IT NET MB .No

Page No.

547317/ 13.6.07

Laying, formation and widening of gravel road from Judikunta to Mallampet

N. Pratap Reddy

131355 28699 2299 100357 347/B

10

But paid -- -- -- -- 170000 -- --

Excess -- -- -- -- 69643 -- -- Check measured on 28.8.2007, but the payment was made on 33.06.07 which shows the advance payment.

c.

Ch. No & date

Name of the work

Name of agency


VAT IT NET MB .No

Pg No.

667414/ 13.2.08

Construc tion of under ground drainage

N. Pratap Reddy

80498 3220 1731 75547 652/06 4

--do-- --do-- --do-- 75000 3007 1613 70380 637/06 8

--do-- --do-- --do-- 63834 2553 1372 59909 645/06 10

--do-- --do-- --do-- 41433 1657 891 38885 645/06 12

--do-- --do-- --do-- 68734 2749 1478 64507 645/06 11

TOTAL 309228 But paid Rs. 374948 which is excess of Rs.65720. ( Para NO. 17 of AR on the accounts of Bollaram GP, Jinnaram MP, Medak District for the year 2007-08 ).

13.3.6. WORK BILLS – VAT NOT DEDUCTED

Under section 22(4) of A.P Act 2005, deduction towards VAT at the rate of 4% shall be made from the gross amount payable to the contractor from the work bill and the same shall be remitted to the commercial tax department by way of DD/Cheque with in seven days of collection of the amount along with the abstract of the collection details and also as per GO.Ms.No.11 FIN(W&P) Dept Dt:29.7.2005, orders have been issued to recover at 4% from work bills and remitted to the concerned head of account. But the executive authorities have fail to follow the instructions and consequently paid the excess amount.

94

a) Achampet (N) G.P, Mahaboobnagar District TFC Grant –Vat not deducted Rs.1400/

SI.

No Cheque No.

Name of the firm Particulars

Total Amount paid

VAT included in bill but not deduct.

1 581108/17.7.08

M/s V,R, Anjaiah,

Secundrabad.

Bleaching powder 20 Bags 8000 308

581108/17.7.08

M/s V,R, Anjaiah,

Secundrabad.

Bleaching powder 10 Bags 2400 92

581108/17.7.08

Industrial equipment

centre, secundrabad.

Wheel carts 5( Five ) Numbers @ 1000 9000 1000

Total 1400 (Para No.29 of AR on the accounts of Achnampet (N) G.P, Mahaboobnagar District ( TFC Grant) for the year 2007-08 )

b) Achampet (N) G.P, Mahaboobnagar District General Funds.

SI .No

Cheque No. Name of the firm Particulars

Total Amou

nt paid

VAT included in bill but not

deduct.

1 220/25.2.08

M/s V,R, Anjaiah, Secundrabad.

Bleaching powder 10 Bags

@ 3500 3650 140

Hindustan Metal

Industries, Hyderabad.

CI Sluice value 6 number @

1800 2150 1350

2 3/25.4.07 Hindustan Metal

Industries, Hyderabad.

1) Sluice value 80 MM, 3

Number @ 1500 2) value 150

MM, 3 Number @ 1500

8437 937

3 4/ .11.07 M/s V,R, Anjaiah, Secundrabad.

Bleaching powder 20 Bags

@ 360.50 7500 290

TOTAL 2717 (Para No.26 of AR on the accounts of Achnampet (N) G.P, Mahaboobnagar District (General Fund) for the year 2007-08)

95

c) Madugul, Mahaboobnagar District.

SI.No

Cheque No. Name of the firm Particulars

Total Amount paid

VAT included in bill but not

deduct 1 37/24.6.09 M/sSai Engineering

company, Mahaboobnagar.


70030 2693

2 80/5.11.07 M/sSai Engineering company, Mahaboobnagar.


84695 3257

TOTAL 5950

(Para No. 17 of AR on the accounts of Mudugu, Mahaboobnagar Dist for the year 2007-08)

PURCHASE BILLS – IT, VAT d) AMARAPURAM GP (N), ANANTAPUR DISTRICT. SI. NO

Vr.No & Date Particulars VAT

@4% IT Tax @2.24% Total

1 77/28.7.07

Purchase of electrical materials(PWS) from Sri Vijaya Electricals of Rs.1,00,000/-

4000 2240 6240

2 78/28.7.07

Purchase of electrical materials(PWS) from Sri Vijaya Electricals of Rs.1,00,000/-

4000 2240 6240

3 2007-08

Vr.No.77

Purchase of electrical materials(PWS) from Sri Vijaya Electricals of Rs.2,05,015/- 100000/105025

4200 2352 6552

4 2007-08 Vr.No.78

Purchase of electrical materials(PWS) from Sri Vijaya Electricals of Rs.2,04,690/- 100000/105025

4187 2345 6532

TOTAL 16387 9177 25,564 ( Para No.10 of AR on the accounts of Amarapuram GP (N) MP, Anantapur District for the year 2007-08 ).

13.3.7. YERRABOLEM GP, GUNTUR DISTRICT- WORKS – I.T, VAT, NAC

& CMRF NOT RECVERED FROM THE WORK BILLS RS.13,372

a. Name of the work : Providing earth work formats at various plats in Yerrabolem.

MB.No:2410A/03-04 P.V Estimate: 75000 Vr.No. & date: 1/17.4.07 for Rs.42,942 Admn.sanction: 31/3, dt:16.10.06 of GP.

96

Tech sanction: SDRNo. ---/06-07 dt:1.11.06 of Deputy E.E.P.R, Mangalagiri. Total value of work done: 62,820 Deduction= 19,878 Net paid=62820 – 19878 = 42,942 SEI =19878 TOT 4% = 2513 NAC at 0.10% & CMRF at 0.15% = 157 I.T @ 2.26% = 1420 ----------------------------------------------------- Net total paid = 38,852 ----------------------------------------------------- Excess payment = 42942 – 38852 = Rs.4090

SI. NO

Name of the work

Total value of work

M.Book No.

VAT @ 4%

NAC @0.10% & CMRF @ 0.15%

IT @ 2.24% Total

1. Providing earth work formats at various plats in Yerrabolem.

62820 2410A/ 03-04 P.V

2513 157 1420 4090

b. Name of the work : Repairs and painting of panchayat office building

at Yerrabolem. MB.No:2410A/03-04 P.22 Estimate: 50000 Vr.No. & date: 44/21.07.07 for Rs.46,585 Admn.sanction: 196(2), dt:3.07.06 of GP. Tech sanction:. ---/20.6.07 of Deputy E.E.P.R, Mangalagiri. Total value of work done: 47,914 Deduction=(Seignorage) 1329 Net paid =46,585 Total value of work done: 47,914 Deduction Seigniorage = 1329 TOT 4% = 1917 NAC at 0.25% = 120 I.T @ 2.20% = 1083 ----------------------------------------------------- Net total paid = 43,465 ----------------------------------------------------- Excess payment = 46585 – 43465 = Rs.3120

c. Name of the work : Providing gravel patch repairs in various places in yerrabolem.

MB.No:2410A/03-04 Page no.98 & 99

97

Estimate: 1,00,000 Vr.No. & date: 4/24.05.07 for Rs.85,993 Admn.sanction: 31/3, dt:16.10.06 of GP. Tech sanction: SDR No. ---/1.11.06 of Deputy E.E.P.R, Mangalagiri. Total value of work done: 94,640 Deduction=(Seignorage) 8647 Net paid =85,993 Total value of work done: 94,640 Deduction Seigniorage = 8647 TOT 4% = 3786 NAC at 0.25% = 237 I.T @ 2.26% = 2139 ----------------------------------------------------- Net total paid = 79,831 ----------------------------------------------------- Excess payment = 85993 – 79831 = Rs.616200 Grand Total = 4090+3120+6162= Rs.13,372

(Para No.9 of AR on the accounts of Yerrabolem GP, Guntoor District for the year 2007-08 ) 13.3.8. S.RAYAVARAM GP(N), VISHAKHAPATNAM DISTRICT - SGRY

WORKS – DOUBLE DRAWL OF AMOUNT – RS.7343.

An amount of Rs.7343 paid to the Sarpanch, Balance Payment Cheque No.844743/30.8.2007.

Balance of payment towards the works was paid Sarpanch as detailed

below. 30.8.2007

1. Construction of CC road from main road to Tumpala Nukaraju house at S. Rayavaram. Balance Payment Rs.757. 2. Construction of CC road at Gavarapet near Sri S. Srinivasa Rao house @ S. Rayavaram. Balance payment Rs.6586 Total : 757 + 6586 = Rs. 7343

13.2.2008

Further, an amount of Rs. 7343 paid to second time as Balance

payment in Cheque No.844944/13.02.2008. Consequently paid excess amount of Rs. 7343.

( Para No.8 of AR on the accounts of S. Rayavaram GP(N), Vishakapatnam District for the year 2007-08 )

98

13.3.9. GADDAPOTHARAM - GRAMA PANCHAYAT, MEDAK DISTRICT - WORKS SEIGNIORAGE CHARGES NOT WORKED OUT AND NOT RECOVERED – Rs:21845/-

Ch No. & Date Amount Paid

435879/25-.5-07 & 435885/11-07-07 & 435886/11-07-07 & 435884/6-07-07 1041547

Name of the work Qty of the work (Cum)

Rate of SC Total MB No. Page

No. Laying CC road from PWD road to Alinagar

Bit – 1 61.11 57.96 3541 1316/GP/05 4

Laying CC road from PWD Road to

Alinagar Bit – II 61.50 57.96 3564 1316/GP/05 5


Alinagar Bit – III

64.48 57.96 3737 1316/GP/05 11


Alinagar Bit – IV 64.05 57.96 3712 1316/GP/05 12


Alinagar Bit – V 63.67 57.96 3690 1316/GP/05 13


Alinagar Bit – VI 62.14 57.96 3601 1316/GP/05 28

Total 21845

( Para No.16 of AR on the Accounts of Gaddapotharam Grama Panchayat, Medak District for the Year 2007-08 )

13.3.10.KONDAMALLEPALLI G.P.– NALGONDA DISTRICT - DOUBLE

DRAWAL –Rs.18,000/- - NEEDS RECOVERY

1. Vr.No.42 Dt.07-06-2007 Cheque No.472041 Dt.07-06-2007 Rs.18,000/- 2. Vr.No.145 Dt.15-08-2008 Cheque No.676190 Dt.15-08-2008 Rs.18,000/-

The District Collector (PTs) Nalgonda vide his procgs.No.1049/05-

B(Pts)/2007 Dt.19-01-2007 have issued orders for payment of hire charges of Divsional Panchayats Officer, Miryalaguda for the 2007-2008, from the GP Funds of Kondamallepally for Rs.18,000/-.

99

But the said amount of Rs.18,000/- was paid twice to the Divisional Panchayats Officer, vide Cheque No.472041 Dt.07-06-2007 for Rs.18,000/- and through another cheque No.676190 Dt.15-08-2008 for Rs.18,000/- which resulted in double payment.

Hence an amount of Rs.18,000/- paid in excess shall be recovered from the

persons responsible and credited to GP funds under intimation to audit.

(Para No.12 of AR on the Accounts Kondamallepalli G.P.– Nalgonda District of for the year 2007-08 )

13.3.11.BALAPUR G.P.– RANGA REDDY DISTRICT - EXCESS RATES ALLOWED AS AGAINST THE AGREEMENT RATES – INADMISSIBLE – NEEDS RECOVERY – RS.13274/-

The construction of CC road from G.Ramulu House to B.Yadiah house at Balpur has takenup with an estimate cost of Rs.2 lakhs, the same work was entrusted to Sri I.B.Sampath Kumar, Contractor, accordingly he has executed work and the measurements recorded in MB No.1272/AH/05-06, page No.14-18 as follows.

S.No Description Quantity Rates as

per MB Rates as per agreement

Excess rate allowed

Excess payment

1 C.C. 1:5:10 (40mm)

24.07 cum 2074.55 1972.60 101-95 2454

2 C.C.1:2:4 42.45 cum 3232.55 2977.60 254.90 10820

13274

As per the agreement conditions and APDSS specifications, the rates so accepted by the contractor shall not be deviated at any cost. Therefore, the excess payment made due to higher rates allowed as against the agreement rates could not be admitted in audit, the same may be made to GP funds from the person or persons responsible under intimation to audit.

14. WASTEFUL EXPENDITURE

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 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 Panchayat Raj bodies for the year 2006-07 were expenditures that were avoidable, extraordinary and lacked proper planning.

100

Consolidated Statement of Wasteful Expenditure incurred is annexed in

Statement No. 9 (14) to the Report showing 3039 paras involving an amount of Rs.254.91 lakhs

14.1.1 .ZILLAPARISHAD – NIZAMABAD - PUBLICATION OF

DEVELOPMENTAL ACTIVITIES ETC., IN DAILY NEWS PAPERS EXTRAORDINARY AND WASTEFUL EXPENDITURE.

Government have reviewed the policy of decentralization and orders were

issued in G.O.Ms.No.37 GA (I&PR) Dept. Dt.22-1-94 to issue public advertisements on implementation of public policies only by Commissioner I & PR or District Collector in the districts. Further in GM. No.5263/Pts-IV/A/05 Dated 16-4-2005 of PR dept. Government decided to impose a ban on release of advertisements by all the GPs for a period of two years except on official advertisements such as tender notices, auctions and leases. Government issued instructions to all the departments in GM.No.96929/I&PR/A1/2003-1 Dated 12-9-2003 to issue suitable instructions to all HODs to release advertisements of press publicity through the medium of I & PR dept alone and the payments to be made after obtaining certification of the bills by the I &PR dept.

S.

No.

Name of the

ZP

Name of the

District Particulars of Expenditure

Amount spent

Rs.

Para

No. of the A.R

1 Nizamabad Nizamabad Expenditure on publication of Greetings

13000 18

TOTAL 13000

14.1.2. ZILLAPARISHAD – KURNOOL - GENERAL FUNDS 2007-08 –

PAYMENT MADE TO AVS RAO, CHARTERED ACCOUNTANT – TOWARDS PREPARATION OF IT RETURNS FOR 33 MEMBERS OF ZP STAFF – UNAUTHORISED EXPENDITURE Rs. 8427/-

As seen from Vr.No.371/7.2.08 Rs.8427 of ZP General Funds for the year

2007-08, it was noticed that the payment made towards AVS Rao, Co Chartered Accountants, Kurnool towards preparation of IT returns for 33 members of ZP staff is unauthorised expenditure.

It seems that preparation of IT Returns of 33 members of ZP staff is

purely personal. Hence the said expenditure cannot be admitted in the audit and shall be made good from the staff concerned.

(Para No. 23 of the AR on the accounts of ZP, Kurnool General Funds)

101

14.1.3 ZILLAPARISHAD – NIZAMABAD - EXPENDITURE INCURRED FOR LUNCH AND TEA EXTRAORDINARY ITEM OF EXPENDITURE Rs. 15,000/-

During the verification of voucher no 307 dt.15-12-2007 drawn Rs.15000

and paid to Sri Ch.Rama Krishna owner of Vandana Mess, Nizamabad towards supply of lunch and tea for MPP's meeting held on 15.12.2007 through Progs No.B1/787/07 Dt.12.2007 of CEO, ZP, Nizamabad.

According to G.O.Ms.No.490 PR &RD Dt.18.12.1996 read with

G.O.Ms.No.229 PR&RD Dt.17.6.1997 the expenditure for tea is not to exceed for Rs.250. Hence the excess expenditure is not admissible in audit.

(Para No. 19 of the AR ZP, Nizamabad on the accounts of General Funds)

14.1.4.ZILLAPARISHAD – VIZIANAGARAM - CONSTRUCTION OF

ADDITIONAL ACCOMODATION TO ZPHS BUILDING AT PIPPALABHADRA – WORK NOT COMPLETED – WASTEFUL EXPENDITURE - RS.93655

An amount of Rs.93655 was drawn and paid to Sri V.Sudhakar, AEE, PR

Sub-Division, Kurupam towards 1st and Final Bill for the work of “Construction of Additional accommodation to ZPH School, Pippalabhadra against administrative sanction for Rs.260000

The technical sanction was accorded for the following items vide estimate.

1. Foundations 2. Columns 3. Plinth beam 4. Beams 5. Sun shades 6. Roof slab 7. Flooring and paintings

Though both the administrative and technical sanction was given for the

items of work specified above, only the following items of work were carried out.

1. Foundations 2. Columns 3. Plinth beam 4. Beams 5. Sun shades 6. Brick masonry -1.34 M3 against estimate quantity of 22.85cm

Without execution of roof slab, flooring etc., the work was closed and the

final bill was paid. Thereby, the very purpose of construction of building is defeated and could not be put in to use.

102

Therefore, the payment is irregular and wasteful. Hence, necessary steps may be taken for the recovery of wasteful expenditure from the person responsible and credit pointed out.

(Para No. 09 of the AR on the accounts of ZP, Vizinagaram SGRY Funds)

14.1.5. ZILLAPARISHAD – VIZIANAGARAM - ZPPF ONLINE PROJECT –

WASTEFUL EXPENDITURE – PROJECT NOT YET ATTAINED 100% UTILITY - RS.129000

An amount of Rs.129000 was spent on making ZPPF online to enable the

employees to know the PF balances on line @ www.zpvzm.com, though this project was taken up and the amount was spent during the financial year 2005-06, till date this project has not attained complete utility. Even two years after payment has been made to the agency which has provided the software, technical support and database conversion the employees could not access their ZP accounts online for which the project was actually intended for. Hence the whole amount spent on the project has become waste without any fruitful results.

(Para No.35 of the AR on the accounts of ZP, Vizinagaram General Funds)

14.2 MPS - PUBLICATION OF DEVELOPMENTAL ACTIVITIES ETC., IN

DAILY NEWS PAPERS EXTRAORDINARY AND WASTEFUL EXPENDITURE.


issued in Go. Ms. No 37 GA (I&PR) Dept. Dt.22-1-94 to issue public advertisements on implementation of public policies only by Commissioner I & PR or District Collector in the districts. Further in GM. No.5263/Pts-IV/A/05 Dated 16-4-2005 of PR dept. Government decided to impose a ban on release of advertisements by all the GPs for a period of two years except on official advertisements such as tender notices, auctions and leases. Government issued instructions to all the departments in GM.No.96929/I&PR/A1/2003-1 Dated 12-9-2003 to issue suitable instructions to all HODs to release advertisements of press publicity through the medium of I & PR dept alone and the payments to be made after obtaining certification of the bills by the I &PR dept.

Contrary to the instructions of the Government in the above orders

expenditure was incurred for publishing Birthday greetings, New year greetings, welcome greetings etc., which was not at all permissible. In case of authorized advertisements the expenditure was incurred without the certification by the I & PR dept. resulting in non observance of the policy of rotation among big, small and medium newspapers and without regard to the circulation and reach in disseminating information of policies of the Government. The expenditure incurred on publishing the developmental activities and greetings etc., constitute wasteful expenditure and the same was noticed in the following institutions as detailed.

http://www.zpvzm.com/

103

14.2.1.MPS

Sl. No.

Name of the MP


Particulars of Expenditure

Amount spent Rs.

Para No.

1 Kalikiri Chittoor Expenditure on

publication of Welcome greetings/Banners

12840 11

2 Qutubullepuram R.R. DISTRICT -do- 127200 15

3 Pithapuram Kakinada -do- 15000 15(1)

4 Ravukpalem West Godavari -do- 76757 13

5 Korukonda Rajahmundary -do- 27149 15

TOTAL 258946 14.2.2. MP – KHAMMAM (RURAL) - CONSTRUCTION OF ANGANVADI

BUILDING AT THANAGAMPAD VILLAGE – WORK ABANDONED – WASTEFULL EXPENDITURE RS.89,870/-

Vr. No. 03/25.5.2007 Estimates Rs.1.80 Lakhs Name of the Contractor: Sri P.Srinivasa Rao M.B.No. 630/A/2003-04

Administrative Sanction was accorded for construction of Anganwadi Building at Thangampad Village vide progs. Rc. No. A1/01/04, Dated: 26/4/2006 of the MP Development Officer, Khammam (R). The technical sanction was accorded by the Dy. E.E.P.R. Khammam vide Progs. Rc. No. D3/2005, Dated: 19/5/2006. The work was entrusted to Sri P.Srinivasa Rao, Contractor on tender system. As per the agreement No. Eng/11/06, Dated: 6/4/2007 entered by the contractor, the completion period of the work is Six months.

The work has been completed up to lentil level and recorded in the M.B.

No. 630/A/03-04 at page No. from 1 to 17. An amount of Rs. 89870 has been paid to the contractor. No. further work has been taken up until now. No action is initiated against the contractor for non-completion of work.

Thus, the work was abandoned after spending an amount of Rs.89870.

Hence, the purpose for which the building is proposed to construct will not be served and the expenditure incurred is mere waste.

Therefore, action would need to be taken to complete the construction of

the building otherwise the amount of Rs.89870-00 would need to be made good to the mandal funds from the person or persons responsible.

(Para No.16 of the AR on the accounts of Khammam (R), Khammam)

104

14.3.1. GPS -PUBLICATION OF DEVELOPMENTAL ACTIVITIES ETC., IN DAILY NEWS PAPERS EXTRAORDINARY AND WASTEFUL EXPENDITURE. Rs. 1,62,513/-


issued in Go. Ms. No 37 GA (I&PR) Dept. Dt.22-1-94 to issue public advertisements on implementation of public policies only by Commissioner I & PR or District Collector in the districts. Further in GM. No.5263/Pts-IV/A/05 Dated 16-4-2005 of PR dept. Government decided to impose a ban on release of advertisements by all the GPs for a period of two years except on official advertisements such as tender notices, auctions and leases. Government issued instructions to all the departments in GM.No.96929/I&PR/A1/2003-1 Dated 12-9-2003 to issue suitable instructions to all HODs to release advertisements of press publicity through the medium of I & PR dept alone and the payments to be made after obtaining certification of the bills by the I &PR dept.

Contrary to the instructions of the Government in the above orders of the

Government expenditure was incurred for publishing Birthday greetings, New year greetings, welcome greetings etc., which was not at all permissible. In the case of authorized advertisements the expenditure was incurred without the certification by the I & PR dept. resulting in non observance of the policy of rotation among big, small and medium newspapers and without regard to the circulation and reach in disseminating information of policies of the Government. The expenditure incurred on publishing the developmental activities and greetings etc., constitute wasteful expenditure and the same was noticed in the following institutions as detailed.

GPS

Sl. No.

Name of the GP

Name of the District Particulars of Expenditure

Amount

Spent. Rs.

Para No.

1 Bachupalli Ranga Reddy

Expenditure on publication of Developmental

Activities in various newspapers

74074 16

2 Yeerashattam Srikakulam Expenditure on publication

of Developmental Activities

15552 39

3 Srikurmam Srikakulam Expenditure on publication

of Developmental Activities

4846 26

4 Kapavaram Rajahmundary Do 6000 8

5 Pakkonda Srikakulam

Expenditure on publication of Developmental

Activities in various newspapers

62041 37

105

14.3.2. GP – BACHUPALLI – RANGA REDDY DISTRICT - PAYMENT OF TENT CHARGES – ABNORMAL EXPENDITURE – OBJECTED – RS.1,26,357/-

During the audit on the accounts of GP, Bachupally for the year 2007-08, it was noticed the an amount of Rs.1,26,357/- was paid to Srinivasa Tent House towards tent charges which is huge and abnormal. The approval of GP for the said expenditure was not obtained. The GP is having community hall for arrangement meetings etc., the necessity of arrangement of tents for several occasions could not be explained to audit.

S. No. Cheque No. Date Amount

1 650732 7.11.2007 49960 2 703357 2.1.2008 30429 3 703371 22.1.08 45968

TOTAL 126357

In view of the above, the said expenditure could not be admitted in audit and held under objection.

(Para No.10(C) of the AR on the accounts of Bachupally, R.R.District ) 14.3.3. GP – JAMMIKUNTA, KARIMNAGAR DISTRICT - EXPENDITURE

INCURRED TOWARDS FAIRS AND – FESTIVALS EXTRAORDINARY AND AVOIDABLE EXPENDITURE – AMOUNT OBJECTED – RS.74365

An amount of Rs.74365 was incurred towards fairs and festivals i.e. Dasara, Ramzan and Christmas from the GP funds though the Government vide GO.Rt.No.1717/PR&RD (Pts-II) Department Dt.10.12.1977 have issued instructions to incur expenditure annually for an amount of Rs.10000 only on fairs and festivals. Inspite of specific instructions incurring of expenditure in excess of the ceiling and to a tune of Rs.74365 deviating from the procedure is extraordinary and wasteful as shown below.

Other festivals - Rs.74365

(Dasara + Ramzan + Christmas)

It is also observed that the total amount was included for all festivals. There is no record for the expenditure for each festival and no record for the items purchased during the festivals.

(Para No.14 of the AR on the accounts ofJammikunta, Karimnagar ) 14.3.4. GP – KOTHAPETA, PRAKASAM DISTRICT - COMPUTER ROOM

INAUGURATION – WASTEFUL EXPENDITURE – -RS.15865

During the financial year under audit, an amount of Rs.21115 was spent for computer room inauguration. On verification of details of the expenditure, it was felt that for Computer room inauguration, spending that much amount is waste. Out of the total amount of Rs.21,115 only an amount of Rs.5250 was fruitful, remaining amount of Rs.15865 was wasteful..

106

Vr.No. Particulars Total

Necessary amount

Necessary amount

36/8.6.07 Mike supply 550 0

37/8.6.07 Sign boards 0 6300

38/8.6.07 Chairs, Carpets 4700 0

39/8.6.07 Flower wags (Rent) 0 2500

40/8.6.07 DTP, Photo shop 0 1300

41/8.6.07 Photos, Videos 0 4500

102/22.8.07 Photos frames of computer room 0 1265

TOTAL 5250 15865

This kind of expenditure should be avoided in future.

(Para No.29 of the AR on the accounts of Kothapeta, Ongole)

15. INSTANCES OF CASES UNACCOUNTED FOR

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 No. 9 (15) to the Report showing 509 paras involving an amount of Rs.2352.80 lakhs

Some of such cases pointed out in the audit are furnioshed hereunder. 15.2.1. MPP BEEBINAGAR, 2007-08, NALGONDA DIST - AMOUNT RECEIVED

UNDER VARIOUS HEADS NOT ACCOUNTED FOR TO CASH BOK – IRREGULAR – NEEDS TO BE TAKEN.

On verification of the cash book it is observed that the salary grant of the

sarpanches an other misc. receipts of grants like Prajapadam, Indiramma sabhas have not been to cash book to verify the receipts and their expenditure particulars which is irregular and violation of Govt. instructions and the amounts so received have been paid directly to sarpach, who have not taken to their cash book and adjusted to pass books of Grampanchayats. Due to which there is every possibility of excess (double) drawal of the salaries by Sarpanches also from the G.P fund.

Therefore, action would need to be taken to these all the receipts in cash

book in future and avoid confusion or double/irregular expenditure.

(Para No. 46 of Z.P. General fund for the year 2007-08, Khammam district)

107

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 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) 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 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 releasingb authorities. Such cases are reported in the ARs of ZP / MP / GPs shown in the statement appended herewith.

A Consolidated Statement No. 9 (16) showing audit objections on Pendency of Utilisation Certificates is appended to the Report from which it could be seen that an amount of Rs. 6193.65 lakhs was pointed out in 5833 audit paras

ZP :

Sl.No. District No. of Utilization Certificates pending

Amount in Lakhs Rs.

1 Khammam 21 43.69 2 Adilabad 05 154.19 3 Visakhapatnam 09 63.70 4 Nalgonda 09 1633.54 5 Srikakulam 06 45.03 TOTAL 50 1940.15

MP :


Amount in Lakhs Rs.

1 Adilabad 06 1.10 2 Khammam 04 0.43 3 Karimnagar 19 1.97 4 Visakhapatnam 02 0.24 5 Vizianagaram 04 3.82 Total 35 7.56

108

GPS :


Amount in Lakhs Rs.

1 Nellore 20 25.64 2 Ananthapur 04 22.30 3 Krishna 02 0.13 TOTAL 26 48.07

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, 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.

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 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 3178 such cases involving an amount of Rs. 22.41 lakhs

is appended as Statment No. 9(17) to this report.

S.No. Name of the District No. of Paras No. of

S.Cs. Amount involved

1 Prakasam 2 18 1,00,194

18. OTHERS A Consolidated Statement No. 9 (18) showing audit objections on others

is appended to the Report from which it could be seen that an amount of Rs. 1627.41 lakhs was pointed out in 114607 audit paras

109

18.1.1. BOOSTER SCHEME PAYMENTS – NOT REIMBURSED FROM GOVERNMENT – NEEDS EARLY ACTION

During the course of audit, it is observed that an amount of Rs. 2,66,624-

00 has been drawn and paid to legal heirs of the deceased P.R. Employees of ZP, Khammam towards G.P.F. booster scheme from G.P.F. account. But the proposals for reimbursement of such payment are not submitted to Government so far. Therefore, the ZP authorities would have to take immediate steps for reimbursement of booster scheme payments from Government under intimation to audit.

(Para No. 45 of Z.P. General fund for the year 2007-08 Khammam district)

18.1.2. SHORT RECEIPT OF PER-CAPITA GRANT OF RS. 23,57,308-00- NEEDS

ACTION:

Under sec. 172(2) ofAndhra Pradesh Panchayat Raj, Act the Government shall give Rs. 4/- per capita grant to ZP on the basis of the proceeding census of the rural population in the district.

As per the 2001 census, the rural population of District is Rs. 25,78,927-

00. Hence, the Z.P. should receive per –capita grant of Rs. 1,03,15,708-00 every year. During the scrutiny of the records and annual accounts it was ever observed that an amount of Rs. 79,58,400-00 was received towards per-capita grant from Government with a short fall of Rs. 23,57,308-00.

The matter is brought to the notice of higher authorities for necessary action.

(Para no. 10 of E.E.P.R. Penukonda for the year 2007-08, Anantapur District)

18.1.3. Cashbook not written upto March 31st 2008. – certain receipts in the bank

scroll not taken to cashbook- monthly abstracts of receipts, payments alongwith OB, CB and reconciliation statements not recorded – defective maintenance.

As verified from the cashbook, it was observed that the cashbook was

written up to 16-11-2007 only without recording monthly abstracts of receipts, charges alongwith opening balance, closing balance and reconciliation statements. The cash book for the remaining period in the financial year i.e. up to 31st March 2008 was not written up and closing balance as on 31-3-2008 was not arrived with the attestation of the E.E. P.R. Pendukonda. However, the bank scroll for the entire year [A/c No. 1133049397 of SBI] was produced to audit and as per the above bank scroll the following amounts would need to be taken to the receipts side of the cashbook and monthly updation needs to be done together with reconciliation. The executive authority could not explain the reasons for hap hazardous maintenance of the records. This shows negligence and irresponsibility of the Authorities concerned.

110

Sl .No. Date of receipt Amount -

- Rs. Details as per bank scroll

1 16.7.07 47094 Un classified 2 13.12.07 12196 Bank interest

3 17.4.07 605420 Transfer of balance in SBI Old A.C No. 1133064790 to this A/C

4 13.6.07 18807 Transfer of balance from Andhra bank, Penukonda

5 27.6.07 46056 Transfer of balance from ADCC bank, Penukonda

6 30.6.07 1134 Bank interest

The cashbook for the entire year needs to be updated and produced for verification. However, the audit was closed based on the bank scroll produced and the balance in the scroll as on 31-3-2008 was adopted as closing balance in the receipts and charges statement.

(Para of the AR of Z.P. Nalgoda General Fund for the year 2007-08 )

18.1.4. FERRIES - AUCTION OF FERRIES MADE BY ZP TO MAJOR FERRIES

- ADIVIDEVULAPALLY FERRY AUCTION NOT MADE - LOSS TO ZP - Rs.15,000/- + 4,500/- = 19,500/-

As per the records of ZP, there are (14) Nos. Ferries in Nalgonda Dist. out

of which (4) Nos. are major and (10) Nos. are Minor, Major Ferries are to be auctioned at ZP, Nalgonda and others at M.Ps., Neredcherla 1 Mellacheru 1 Damercherla.

Out of (4) Nos., (3) Nos. except Adividevulapally were auctioned on 26-3-

2008 and the bid amount of Rs.475500/- remitted in full. The Adividevulapally Ferry auction was postponed to 12.06.08 for non-bidding to the level of upset price of Rs.15000/-. The details of the auction held either on 12-6-08 or at later date were not available in file. Hence it is clear, that due to non-taking of necessary action, the same was not auctioned and thus caused loss to ZP.

Further, out of total bid amount of Rs. 8900/- in resepect of (2) Nos. of

Ferries at Neredcherla (M) an amount of Rs.4400/- was alone leaving balance of Rs.4500/-. Thus an amount of Rs 4500/- has yet be received / recovered from the bidders. Action would need be taken to recover the same from the bidders and credited to ZP funds

DETAILS:

S.No Balance Bid Amount

Amount remitted Balance

1 Telu Krishna, S/o. Pullaiah, Mahankaliguda Rs. 7500/- 3000/- 4500/-

2 Bathula Srinivasa Reddy, Ravipad RS.1400/- 1400/- --

111

In spite of auction of remaining (8) No of Ferries, no amount was realized and remitted. The reasons for non collection and non-realisation the bid amounts were not forthcoming to Audit.

Further the Demand Register of Ferry rents was not maintained and

produced to audit for verification. (Para of the AR of Z.P. Nalgoda for the year 2007-08 ) 18.1.5 SEINORAGE CHARGES - SEINORAGE FEE ALLOCATED TO MANDALS NOT RECEIVED BY MANDALS Rs.81,283/- OBJECTED.

As per cash book of General Fund of ZP for the year 2007-08 and also as

per the vouchers, an amount of Rs.81283/- were allocated to the mandals towards Seinorage Fee as detailed below and is stated to have sent the Mandal mentioned below. Sl. No.

Name of the Mandal

Progs.No. in which the amount allocated

Amount Rs.

1 M.P., Valigonda ZP .Proc.No.A3/4577 /07 /ZPP, dt.6-10-07 1 st Quarter 2007-08. 30013/-

2 M.P., Mothkur ZP.Proc.No.A3/4577/07/ZPP, dt.23-4-07 1 st & 2nd Quarters 2006-07 13200/-

3 M.P., Kattangur ZP .Proc.No.A3/4577 /07 /ZPP, dt. 7 -12-07 2nd Quarter 2007-08 26356/-

4 M.P., Deverkonda ZP .Proc.No.A3/4577 /07 /ZPP, dt. 7 -12-07 2nd Quarter 2007-08

11714/- 81,283/-

On verification of the Annual Accounts of the above Mandals, it is

observed that the above said amounts were not received and accounted for by the MandaI Parishad authorities. It is a clear loss to the Mandals. It seems that either the cheques or DD were sent to the concerned MPs or the treasury authorities did not adjust the said amounts.

Immediate action would need to be taken to trace the lapse and see that the

funds are adjusted to the concerned institutions.

18.1.6 ZP Loan fund, Srikakulam - H.B.A. Loan sanctioned- Recovery of Loan and Interest amount Pending recovery from the employees of ZP Srikakulam - Recovery not effected Employees - Needs early action Rs.41,39,513-00.

As verified from the Statement showing the details of sanction and recovery of the HBA furnished by the Chief Executive Officer, ZP, Srikakulam vide Letter Rc.No.5242/2008/P7 dated 5-11-2008 it is noticed that the a total amount of Rs.69,37,500 was sanctioned to 132 members of provincilised Non-Teaching staff of ZillaParishad, Srikakulam, out of which an amount of Rs.25,68,775-00 was pending recovery under Principal and Rs.15, 70, 738-00 towards Interest as on 31-3-2008 from the individuals who are in service (other than Retired, Deceased and Recovery not effected employees)

Therefore early action would need to be taken to effect the recovery of

principal amount along with Interest and penal Interest on belated payments if applicable as per the procedure laid down under H.B.A. Rules.

(ZP, Srikakulam Report for the year 2007-08)

112

MPs: 18.2.1. EARMARKED FUNDS- REMITTANCE OF 1/3RD OF EARMARKED

FUNDS TO CONCERNED HEAD OF ACCOUNTS – PARTICULARS PRODUCED TO AUDIT WAS NOT RELIABLE – NEEDS RECOVERY – RS. 17,717-00.

During the course of audit on the accounts of MP, Pagidyala, it was

noticed that an amount of Rs. 17,717-00 was drawn from the General funds and a sum of Rs. 12,655-00 was remitted to E.D. S.C. Corporation, Kurnool, and an other sum of Rs. 5,062-00 was remitted to ED, S.T. Corporation, Kurnool through Demand Draft. In support of remittances, counter foils of application of D.D’s of SBI, Nandikotkur were produced to audit. As verified from the counterfoil [copy of Xerox enclosed], no signature of the cashier for receipt of money was bserved on the counter foil, and the particulars on the counter foil were over written on the Banker Seal which was already stamped on the counterfoil. The detail in the counter foil are not supporting the proper remittance.

Apart from the above, the payees’ acknowledgements in token of receipt

of DD’s were also not produced to audit. The same would need to be obtained for verification.

In view of the above, the remittance of the above amount could not be

ensured in Audit. The matter needs to be investigated to ascertain the facts.

Hence, the expenditure incurred for the above purpose was held under objection.

(Para No. 11 of MP, Pagidyala - Kurnool District for the year 2007-08)

18.2.2. Funds released under various schemes kept in bank accounts – Balances in

inactive accounts – needs remittance to Government accounts:

During the course of audit, it was observed that various unspent scheme funds were kept in bank accounts, even after completion of the schemes without remitting to the Grant releasing Authority by M.P.D.O. Vuyyuru, Consequently balance amount are lying in Bank under inoperative accounts in respect of completed schemes / programmes. According to the Cir. Memo. No. 2872-B/254/A3/W&M/2007, dated: 01-09-2007 of Government of A.P, Finance (W&M) Dept, Executive Authority concerned has to close all such inoperative accounts at the head quarters and field level immediately to avoid possibility of misappropriation.

Hence, the funds shall invariably be transferred to the concerned

institutions for direct adjustments to P.D. Accounts through Bank / Treasury by way of Book adjustment as per the instructions issued vide memo. No. 13183/CPR & RE/H2/2008, dated: 22-10-2008 of Commissioner of Panchayat Raj and Rural Employment.

113

Sl.No. Name of the scheme Closing balance as on 31-3-2008 - Rs.

1 S.S.A. 589 2 A.,K 335 3 F.A.P. 38906 4 -- 173712 5 Janma Bhoomi 1050736 6 Praja Padham 29002 7 Training 2766 8 Critical Gap 21544

(AR of MP Vuyyuru, Krishna for the year 2007-08 ) 18.2.3. MPS - DEPOSITING OF MONEY RECEIVED IN THE BANKS INSTEAD

OF LODGING IN GOVERNMENT TREASURY-IRREGULAR:

According to sub sections 2 of section 171 A.P.P.R.Act.1994 all moneys received by the M.P. shall be lodged in the nearest Government treasury. Government in P.R. Department have issued instructions from time to time to deposit the receipts of P.R. institutions in the treasury / Sub-treasuries only and not in the banks. The Government in P.R. Department through Memo.No.93763/ Accts.III/88-I, dt.13.11.88 have instructed the M.P.D.Os of M.Ps and the D.D.Os of Z.Ps to instructed that the statutory provisions are strictly followed with regard to lodging of the funds.

But during the audit it was noticed that the money received by M.Ps for

implementation of scheme such as C.I. wells for S.Cs Dhobigat, Janmabhoomi fund, walkf board, I.S.L, weaker section housing schemes etc. were deposited in the banks in violation of the statutory provisions and also against the orders of the Government Orders.

The amount received for the various schemes deposited in the banks in

violation of the statutory provisions and Government Orders would need to be immediately with drawn and lodged in the Government treasury and brought to the accounts to M.P.funds and also kept open for the audit herein after.

(Para No. 17 of MP Pagidyala , Kurnool District for the year 2007-08)

18.2.4. Works-rice utilized more than the labour component of the work-genuineness of the utilization is doubtful - Rs.29459

In Vr No.59/6-07, an expenditure of Rs.147865/- was incurred for providing pipe line to PWS scheme at C. Belegal. The payment was made in cash for Rs.l04264/- and rice of Rs.37509/- (46.87x8000). But as verified from the work bill it was noticed that the labour component of the work was Rs.8050/- only i.e excavations of earth for providing of pipe line. The remaining part of the work relates to technical persons and purchase of materials.

114

As such it was not explained in audit that how the rice was utilized to tune of Rs.37509/- (46.87x800) when the actual labour component

. of the work was only Rs.8050/-. Hence the genuineness of the utilization

of rice could not be established with reference to the execution of the work. The matter needs investigations and if any loss is noticed, it should be made good to the funds of the institution.

(Paragraph No.16 C.BELEGAL MandaI Parishad. Kurnool District for the year 2007-08) 19. DEMAND DRAFTS / CHEQUES / 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.

A Consolidated Statement No. 9 (19) showing audit objections on D.D

Cheques received but not realized with in time is appended to the Report from which it could be seen that an amount of Rs. 1.03 lakhs was pointed out in 32 audit paras

Some such cases pointed out in ARs classified according to their nature are

illustrated here under : 19.1 MPs :

Sl. No.

Name of the Institution Particulars of expenditure Amount of

D.D./Cheque

Para No. of AR

1 Lokeshwaram, Adilabad

Indiramma Phase-II – Demand Draft No. 354243 dt. 13-6-2007

7,000 12

2 Qutubullahpur, Ranga Reddy

Demand Drafts received but not realized within time

1,650 16

3 Saroornagar, Ranga Reddy

Demand Drafts received but not realized within time

14,792 18

TOTAL 23,442 HYDERABAD DIRECTOR DATE STATE AUDIT, A.P., HYDERABAD.

SECTION - II

ACCOUNTING STATEMENTS OF ZILLA PARISHADS, MANDAL PARISHADS AND GRAM PANCHAYATS

STATEMENT No. 1

CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT

Sl. No.

NAME OF THE INSTITUTION

DEMAND AS ON

1-4-2008

AUDITS COMPLETED

AS ON 31-3-09

BALANCE AS ON

31-03-2009

ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT

1 ZILLA PARISHADS 2 22 0 22 2 0

2 MANDAL PARISHADS 3 1094 1 1094 2 0

3 GRAM PANCHAYATS 9171 21118 151 20721 9020 397

115

STATEMENT No. 1 (1)STATEMENT SHOWING STATUS OF AUDIT OF ZILLA

PARISHADS AS O 1-3-2009

SL No.

NAME OF THE DISTRICT

DEMAND AS ON 1-4-2008

AUDITS COMPLETED AS

ON 31-3-09

BALANCE AS ON 31-03-2009


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

116

STATEMENT No. 1 (2)STATEMENT SHOWING STATUS OF AUDIT OF MANDAL

PARISHADS AS ON 31-3-2009

SL No.



AUDITS COMPLETED AS

ON 31-3-09



1 Adilabad 0 52 0 52 0 0

2 Ananthapur 0 63 0 63 0 0

3 Chittoor 0 62 0 62 0 0


5 Guntur 0 57 0 57 0 0

6 Kadapa 0 50 0 50 0 0

7 Karimnagar 0 57 0 57 0 0

8 Khammam 0 46 0 46 0 0

9 Krishna 0 49 0 49 0 0

10 Kurnool 0 53 0 53 0 0


12 Medak 0 46 0 46 0 0

13 Nalgonda 0 59 0 59 0 0

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 33 0 0

18 Srikakulam 0 38 0 38 0 0



21 Warangal 1 50 1 50 0 0


TOTAL: 3 1094 1 1094 2 0

117

STATEMENT No. 1 (3)STATEMENT SHOWING STATUS OF AUDIT OF GRAM

PANCHAYATS AS ON 31-3-2009

SL No.



AUDITS COMPLETED AS

ON 31-3-09



1 Adilabad 36 256 22 253 14 3

2 Ananthapur 5848 1001 11 1001 5837 0

3 Chittoor 87 1301 8 1299 79 2

4 East Godavari 43 1012 0 1010 43 2

5 Guntur 0 1022 0 1022 0 0

6 Kadapa 167 804 6 797 161 7

7 Karimnagar 119 1194 13 1191 106 3

8 Khammam 430 770 0 770 430 0

9 Krishna 1 973 0 973 1 0

10 Kurnool 3 898 0 889 3 9

11 Mahaboobnagar 2336 1348 43 1325 2293 23

12 Medak 52 1059 18 768 34 291

13 Nalgonda 0 1178 0 1167 0 11

14 Nellore 0 961 0 961 0 0

15 Nizamabad 0 718 0 716 0 2

16 Prakasam 1 1043 1 1043 0 0

17 Ranga Reddy 32 705 23 669 9 36

18 Srikakulam 0 1101 0 1100 0 1


20 Vizianagaram 2 928 2 928 0 0

21 Warangal 0 1014 0 1013 0 1

22 West Godavari 14 888 4 882 10 6

TOTAL: 9171 21118 151 20721 9020 397

118

STATEMENT 2

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF ZILLA PARISHADS FOR THE YEAR 2007-08

Rs. In lakhs

SL No. NAME OF THE DISTRICT Receipts Payments

1 Adilabad 3625.18 3162.12

2 Ananthapur 4528.67 4354.29

3 Chittoor 7908.03 5857.64

4 East Godavari 6074.95 6929.95

5 Guntur 5304.06 5078.16

6 Kadapa 6991.97 4864.54

7 Karimnagar 7319.94 6072.43

8 Khammam 14004.14 10220.04

9 Krishna 17585.39 12191.70

10 Kurnool 0.00 0.00

11 Mahaboobnagar 593.68 638.54

12 Medak 17369.70 16404.40

13 Nalgonda 9970.47 6031.03

14 Nellore 1994.52 1984.08

15 Nizamabad 3037.89 2977.10

16 Prakasam 2385.20 2173.45

17 Ranga Reddy 2405.34 4079.53

18 Srikakulam 6076.76 7828.07

19 Visakhapatnam 3163.51 2797.24

20 Vizianagaram 3162.07 2796.67

21 Warangal 12990.99 10250.60

22 West Godavari 10447.54 9683.16

TOTAL: 146940.00 126374.74

119

STATEMENT 2 (1) 1CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF ZILLA PARISHADS

FOR THE YEAR 2007-08.

Rs. In lakhsSL No.


General fund Education fund Social Welfare Minor Irrigation Roads & Bridges Rural Water Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 507.12 210.33 406.06 357.44 7.90 7.90 0.00 0.00 0.00 0.00 0.00 0.002 Ananthapur 3969.03 3777.21 554.48 564.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.003 Chittoor 329.74 299.68 875.28 445.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 East Godavari 3186.21 4386.93 463.51 479.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.005 Guntur 2630.73 2172.05 553.64 533.19 0.00 0.00 0.00 0.00 0.00 1245.57 633.84 0.006 Kadapa 0.00 0.00 560.74 564.49 0.00 0.00 0.00 0.00 3555.94 900.20 1784.22 3101.067 Karimnagar 1902.07 857.31 897.28 961.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Khammam 656.98 378.99 461.48 462.93 0.00 0.00 0.00 0.00 3976.41 4030.53 1282.41 943.079 Krishna 4658.00 4839.00 724.18 672.29 62.73 178.55 0.00 0.00 0.00 0.00 1607.48 1460.6410 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0011 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0012 Medak 3294.50 3112.75 625.96 592.93 0.00 0.00 0.00 0.00 18.14 25.15 3830.09 3701.6913 Nalgonda 3655.26 3405.85 1224.06 1039.68 170.95 98.78 0.00 0.00 0.00 0.00 0.00 0.0014 Nellore 1362.23 1301.81 523.06 607.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0015 Nizamabad 129.63 102.60 451.00 401.55 1.00 86.96 0.00 0.00 0.00 0.00 0.00 0.0016 Prakasam 331.69 130.03 783.84 807.65 152.60 152.60 0.00 0.00 112.16 360.24 0.00 0.0017 Ranga Reddy 2114.94 1044.33 0.00 0.00 0.00 779.22 0.00 0.00 0.00 0.00 0.00 0.0018 Srikakulam 1634.14 1465.03 589.00 567.00 35.54 0.00 0.00 0.86 238.86 2775.17 0.00 0.0019 Visakhapatnam 1799.34 1525.58 254.42 232.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0020 Vizianagaram 2526.95 2192.59 475.56 444.63 109.38 31.44 0.00 0.00 0.00 0.00 0.00 0.0021 Warangal 3028.09 3028.09 711.13 687.09 0.00 0.00 0.00 284.74 0.00 748.39 0.00 0.0022 West Godavari 8534.42 7445.58 876.74 899.89 0.20 95.65 0.00 31.27 0.00 0.00 0.00 0.00

TOTAL: 46251.07 41675.74 12011.42 11321.52 540.30 1431.10 0.00 316.87 7901.51 10085.25 8504.20 9206.46

Page 120

STATEMENT 2 (1) 2CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF ZILLA PARISHADS


Rs. In lakhsSL No.

NAME OF THE

SGRY Deposits Advances Loans Pension Rund Total Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 2389.00 2389.00 307.39 195.45 1.96 2.00 0.00 0.00 5.75 0.00 3625.18 3162.122 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 5.16 12.79 0.00 0.00 4528.67 4354.293 Chittoor 0.00 0.00 6650.18 5064.11 52.83 48.74 0.00 0.00 0.00 0.00 7908.03 5857.644 East Godavari 1262.43 1270.38 600.50 50.81 547.27 697.72 15.03 44.30 0.00 0.00 6074.95 6929.955 Guntur 1048.22 205.87 885.41 718.67 0.00 0.00 186.06 202.81 0.00 0.00 5304.06 5078.166 Kadapa 1083.92 292.00 0.00 0.00 7.15 0.00 0.00 0.00 0.00 6.79 6991.97 4864.547 Karimnagar 2511.83 2559.11 2008.76 1694.42 0.00 0.00 0.00 0.00 0.00 0.00 7319.94 6072.438 Khammam 5296.56 2613.06 2323.30 1776.28 0.00 0.00 6.92 15.18 0.08 0.00 14004.14 10220.049 Krishna 2563.13 1516.34 7860.39 3228.54 0.00 0.00 78.19 65.83 31.29 230.51 17585.39 12191.70

10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0011 Mahaboobnagar 593.68 638.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 593.68 638.5412 Medak 7296.19 7491.44 0.00 0.00 2304.82 1480.44 0.00 0.00 0.00 0.00 17369.70 16404.4013 Nalgonda 2874.28 167.66 2030.08 1304.85 3.79 4.74 8.65 7.64 3.40 1.83 9970.47 6031.0314 Nellore 0.00 0.00 104.34 74.66 0.00 0.00 4.89 0.00 0.00 0.00 1994.52 1984.0815 Nizamabad 0.00 0.00 2419.95 2349.00 31.03 15.99 5.28 21.00 0.00 0.00 3037.89 2977.1016 Prakasam 981.17 715.77 10.04 3.30 0.00 0.00 10.94 0.00 2.76 3.86 2385.20 2173.4517 Ranga Reddy 2.40 38.79 269.09 2214.71 2.33 2.48 16.58 0.00 0.00 0.00 2405.34 4079.5318 Srikakulam 629.59 690.66 2943.38 2307.52 2.30 2.06 3.78 2.36 0.17 17.41 6076.76 7828.0719 Visakhapatnam 1070.26 1024.19 0.89 0.00 32.22 15.03 6.38 0.09 0.00 0.00 3163.51 2797.2420 Vizianagaram 27.05 73.67 23.13 54.34 0.00 0.00 0.00 0.00 0.00 0.00 3162.07 2796.6721 Warangal 5072.83 1382.81 1983.54 1935.53 2182.96 2182.96 11.45 0.00 0.99 0.99 12990.99 10250.6022 West Godavari 1021.28 1207.62 4.31 0.04 0.00 0.00 7.17 0.00 3.42 3.11 10447.54 9683.16

TOTAL: 35723.82 24276.91 30424.68 22972.23 5168.66 4452.16 366.48 372.00 47.86 264.50 146940.00 126374.74

Page 121

SL No.

NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 Adilabad 1020.06 1142.20

2 Ananthapur 702.02 648.47

3 Chittoor 4767.97 4752.23

4 East Godavari 11198.31 2785.60

5 Guntur 5425.63 4923.38

6 Kadapa 668.95 606.59

7 Karimnagar 1488.36 1674.94

8 Khammam 15358.79 10265.06

9 Krishna 4740.88 4510.67

10 Kurnool 574.32 731.56


12 Medak 1358.37 1102.01

13 Nalgonda 4063.19 3357.05

14 Nellore 1026.02 912.83

15 Nizamabad 10628.96 4877.12

16 Prakasam 1490.95 1386.39

17 Ranga Reddy 3429.99 3477.29

18 Srikakulam 2967.57 2693.05


20 Vizianagaram 1779.97 1738.08

21 Warangal 5240.25 5111.49

22 West Godavari 1425.64 1486.78

TOTAL: 82023.76 60567.72

STATEMENT No. 3

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2007-08

Rs. In lakhs

122

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 140.77 225.27 0.00 0.00 31.52 18.81 0.00 0.00 0.00 0.00 3.98 5.28 655.32 639.492 Ananthapur 452.75 367.85 40.29 41.63 7.28 5.86 0.00 0.00 0.00 44.95 0.00 10.77 184.79 107.963 Chittoor 1066.41 924.40 3605.10 3605.27 62.01 51.99 0.00 7.20 0.00 95.18 2.14 43.86 0.02 2.284 East Godavari 1689.71 1624.93 0.00 0.00 8362.00 71.98 0.95 0.37 0.75 20.95 50.51 23.68 25.84 17.435 Guntur 2647.31 2112.08 18.00 19.25 574.39 631.64 0.00 0.00 0.27 162.71 0.27 27.99 631.42 409.066 Kadapa 536.13 432.38 0.00 0.00 45.09 35.69 0.00 0.00 0.00 0.00 0.00 0.00 57.50 49.017 Karimnagar 1003.62 1036.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 86.31 0.00 14.49 477.83 434.738 Khammam 929.73 600.84 0.00 0.00 81.76 60.17 0.00 0.00 0.00 0.00 0.00 1.08 14232.92 9381.109 Krishna 1685.09 1175.05 132.80 133.95 10.10 6.55 0.00 81.09 14.47 36.94 0.00 0.00 640.28 525.2210 Kurnool 369.37 337.30 0.00 0.00 19.17 9.69 0.00 0.00 0.00 0.00 0.00 0.00 26.68 45.0311 Mahaboobnagar 863.13 684.74 11.92 11.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.97 4.0512 Medak 1073.91 1030.59 16.01 16.71 1.42 0.00 0.00 0.00 0.00 9.35 0.00 5.93 223.59 22.6313 Nalgonda 715.14 647.82 0.00 0.00 26.13 9.95 0.80 0.34 0.00 0.00 16.58 14.17 3166.54 2513.8614 Nellore 719.37 587.61 3.62 7.74 32.84 29.20 0.00 0.00 0.00 0.00 6.48 8.22 26.88 22.0615 Nizamabad 6892.40 1055.29 0.00 0.00 257.80 846.17 1.51 3.44 0.00 0.12 3.65 2.21 2453.71 1963.8516 Prakasam 928.14 727.40 0.00 0.00 95.49 89.83 0.00 0.00 0.00 229.95 9.70 30.02 318.53 183.6117 Ranga Reddy 2264.51 2223.43 0.00 0.00 272.85 352.50 10.14 28.11 0.00 25.73 0.00 17.05 0.00 155.0118 Srikakulam 1048.00 859.00 0.00 0.00 428.42 429.66 0.00 0.00 0.00 0.39 0.00 1.54 137.46 35.8619 Visakhapatnam 775.15 674.12 124.32 106.53 0.00 0.00 0.00 2.64 0.26 0.24 0.00 0.00 0.00 0.0020 Vizianagaram 516.30 416.78 0.00 0.00 112.15 92.04 0.00 74.48 0.00 59.36 6.19 3.55 69.15 68.9321 Warangal 906.35 743.43 0.00 0.00 83.49 84.84 17.40 26.00 55.41 137.53 44.01 76.43 2789.02 2920.9522 West Godavari 961.43 979.43 55.48 49.70 0.00 0.00 0.00 0.00 0.34 1.96 0.00 0.00 25.09 22.42

TOTAL: 28184.72 19466.39 4007.54 3991.90 10503.91 2826.57 30.80 223.67 71.50 911.67 143.51 286.27 26148.54 19524.54

General fund Education fund

STATEMENT No. 3 (1)CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MANDAL PARISHADS


Social Welfare Fund Minor Irrigation Roads & Bridges

Rs. In lakhs

RWS&ARWS Other ProgrammesSL No.


Page 123

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments


TOTAL: 5085.40 5639.47 897.17 636.55 458.82 478.37 16.04 17.52 6475.81 6564.80 82023.76 60567.72

SGRY DepositsSL No.


CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2007-08.

STATEMENT No. 3 (2)

Rs. In lakhs

Advances Loans Pension Rund Total

Page 124

STATEMENT No. 4

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM PANCHAYATS FOR THE YEAR 2007-08

Rs. In lakhsSl. No.


1 Adilabad 480.20 630.99

2 Ananthapur 1984.09 1977.41

3 Chittoor 1989.54 1956.68

4 East Godavari 6538.13 6259.60

5 Guntur 5096.36 4918.48

6 Kadapa 1696.82 1319.27

7 Karimnagar 3676.16 4358.24

8 Khammam 2472.23 2595.53

9 Krishna 9171.05 7974.99

10 Kurnool 2051.63 2980.30


12 Medak 2337.25 2140.45

13 Nalgonda 3103.41 3361.76

14 Nellore 2954.33 2884.91

15 Nizamabad 3124.44 2662.13

16 Prakasam 3973.72 3745.84

17 Ranga Reddy 4643.11 4180.28

18 Srikakulam 2186.37 2404.18


20 Vizianagaram 2554.04 2630.61

21 Warangal 3265.93 3382.49

22 West Godavari 6721.36 6759.20

TOTAL: 75964.25 76055.68

125

STATEMENT No. 4 (1)STATEMENT OF CONSOLIDATED RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR 2007-08

(RECEIPT HEADS)In Lakhs

Sl. No.


TAX RESOURCES

NON-TAX RESOURCES

OTHER RECEIPTS

GOVERNMENT GRANTS ADVANCES DEPOSITS SALARY

GRANTS TOTAL

1 Adilabad 135.11 72.51 102.97 139.23 0.00 0.94 29.44 480.202 Ananthapur 253.20 354.18 451.58 710.08 25.25 30.98 158.82 1984.093 Chittoor 339.03 209.95 515.00 714.52 4.26 102.62 104.16 1989.544 East Godavari 1331.77 1629.48 1111.23 1936.05 11.26 96.53 421.81 6538.135 Guntur 1255.27 932.84 2482.83 93.62 0.60 36.06 295.14 5096.366 Kadapa 187.31 439.02 414.39 595.97 0.21 13.95 45.97 1696.827 Karimnagar 577.04 648.41 492.78 1702.29 0.05 28.28 227.31 3676.168 Khammam 414.80 319.89 220.71 1418.87 1.72 51.09 45.15 2472.239 Krishna 2850.55 961.04 2158.17 2786.63 5.82 101.15 307.69 9171.05

10 Kurnool 223.46 362.02 319.76 883.03 81.95 34.38 147.03 2051.6311 Mahaboobnagar 311.42 878.85 229.97 882.20 -30.26 9.62 109.65 2391.4512 Medak 671.49 1206.03 33.36 377.48 0.00 0.00 48.89 2337.2513 Nalgonda 432.69 863.35 615.40 918.68 0.00 0.00 273.29 3103.4114 Nellore 376.16 904.86 350.59 1198.29 5.63 31.88 86.92 2954.3315 Nizamabad 1224.34 656.63 356.29 611.65 0.00 0.45 275.08 3124.4416 Prakasam 837.06 517.55 534.28 1855.38 28.53 32.51 168.41 3973.7217 Ranga Reddy 211.14 814.54 2984.57 537.92 0.00 1.71 93.23 4643.1118 Srikakulam 158.83 326.09 522.21 858.12 149.45 52.91 118.76 2186.3719 Visakhapatnam 368.60 703.48 394.41 1815.43 36.60 97.24 136.87 3552.6320 Vizianagaram 66.42 217.17 564.16 1611.92 59.65 0.41 34.31 2554.0421 Warangal 999.95 415.90 446.85 1177.49 0.00 0.00 225.74 3265.9322 West Godavari 1356.30 1073.61 1441.60 2448.25 2.37 98.97 300.26 6721.36

TOTAL: 14581.94 14507.40 16743.11 25273.10 383.09 821.68 3653.93 75964.25

126

STATEMENT No. 4 (2)STATEMENT OF CONSOLIDATED EXPENDITURE OF GRAM PANCHAYATS FOR THE YEAR 2007-08

(PAYMENT HEADS)In Lakhs

Sl. No.

NAME OF THE DISTRICT SALARIES

OTHER ADMINISTRATIVE

EXPENDITURE

MAINTENANCE EXPENDITURE WORKS ADVANCES DEPOSITS OTHERS TOTAL


10 Kurnool 150.05 323.89 1358.90 1077.96 35.65 27.40 6.45 2980.3011 Mahaboobnagar 261.40 310.25 782.90 1343.24 0.50 0.23 121.93 2820.4512 Medak 144.41 197.95 539.92 1229.79 4.83 23.55 0.00 2140.4513 Nalgonda 447.93 574.66 945.79 1393.38 0.00 0.00 0.00 3361.7614 Nellore 247.25 326.36 753.56 1476.36 4.15 22.27 54.96 2884.9115 Nizamabad 446.34 552.20 1179.63 483.08 0.88 0.00 0.00 2662.1316 Prakasam 508.87 553.38 915.09 1624.26 117.73 23.60 2.91 3745.8417 Ranga Reddy 168.87 264.19 1378.56 2368.36 0.00 0.30 0.00 4180.2818 Srikakulam 222.97 208.46 520.54 1071.99 354.17 26.05 0.00 2404.1819 Visakhapatnam 227.98 1204.75 592.69 1645.25 426.76 14.46 0.00 4111.8920 Vizianagaram 82.40 1384.28 406.51 694.73 62.19 0.50 0.00 2630.6121 Warangal 388.75 419.80 1153.84 1420.10 0.00 0.00 0.00 3382.4922 West Godavari 526.94 1605.38 1390.87 3181.32 2.08 52.61 0.00 6759.20

TOTAL: 7466.81 12555.47 20889.71 33073.05 1108.27 397.88 564.49 76055.68

127

SL No. NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 Adilabad 3243.50 3045.29

2 Ananthapur 1208.94 1269.20

3 Chittoor 867.44 279.47

4 East Godavari 955.31 1468.15

5 Guntur 4000.59 3383.09

6 Kadapa 1475.33 352.17

7 Karimnagar 4936.30 4000.09

8 Khammam 9887.68 7390.18

9 Krishna 8064.02 5844.37

10 Kurnool 0.00 0.00

11 Mahaboobnagar 11592.63 7936.87

12 Medak 12137.99 12541.80

13 Nalgonda 4185.19 1418.63

14 Nellore 1994.52 1878.41

15 Nizamabad 1932.96 1950.31

16 Prakasam 1596.11 1712.42

17 Ranga Reddy 6587.79 6117.19

18 Srikakulam 2684.01 2263.62


20 Vizianagaram 3287.41 3051.07

21 Warangal 7061.77 4171.23

22 West Godavari 2033.03 1934.07

TOTAL: 90849.07 73077.99

STATEMENT No. 5

CONSOLIDATED STATEMENT OF GRANTS SANCTIONED TO ZILLA PARISHADS FOR THE YEAR 2007-08 RECEIPST AND PAYMENTS

Rs. In lakhs

128


1 Adilabad 0.00 0.00 294.20 271.95 5.75 9.00 2389.00 2389.00 200.00 34.93 79.08 49.41 16.81 45.602 Ananthapur 0.00 0.00 508.76 527.79 0.00 0.00 0.00 18.42 564.34 564.34 134.97 140.14 0.00 0.003 Chittoor 422.04 35.02 0.00 0.00 0.00 0.00 0.00 0.00 237.61 58.72 127.00 104.94 0.00 0.004 East Godavari 0.00 0.00 46.51 479.81 60.48 136.60 0.00 0.00 375.91 379.42 185.50 242.86 0.00 0.005 Guntur 0.00 0.00 196.68 1221.72 4.93 158.11 269.64 205.87 307.06 309.73 0.00 0.00 0.00 1245.566 Kadapa 0.00 0.00 113.59 113.59 0.00 0.00 0.00 0.00 915.49 200.00 390.68 0.00 0.00 0.007 Karimnagar 0.00 0.00 1937.30 961.59 0.70 0.10 179.83 227.11 255.72 255.72 121.72 121.72 0.00 0.008 Khammam 0.00 0.00 419.30 448.83 0.00 0.00 0.00 59.94 990.26 671.33 146.55 135.43 65.83 65.849 Krishna 0.00 0.00 774.08 774.08 31.29 230.52 1692.35 998.00 882.93 232.30 165.96 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 0.0011 Mahaboobnagar 0.00 0.00 103.95 103.95 0.00 0.00 2750.00 2750.00 1451.23 1146.59 0.00 0.00 766.32 981.9112 Medak 0.00 0.00 980.80 980.80 0.00 0.00 0.00 0.00 1190.73 1190.73 56.09 56.09 1725.14 1242.0213 Nalgonda 1224.06 1039.68 0.00 0.00 3.40 1.83 68.91 114.32 241.56 0.00 128.81 83.34 0.00 0.0014 Nellore 0.00 0.00 523.06 607.61 0.00 0.00 255.82 255.82 240.54 240.54 98.84 98.84 0.00 0.0015 Nizamabad 0.00 55.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.35 30.55 1863.00 1863.0016 Prakasam 0.00 0.00 783.84 807.65 2.77 3.86 308.83 309.54 406.23 498.99 93.57 90.81 0.00 0.0017 Ranga Reddy 0.00 0.00 503.25 447.38 0.00 0.00 3159.78 3757.25 665.27 507.70 81.47 1397.50 0.00 0.0018 Srikakulam 0.00 0.00 589.00 567.37 0.17 17.41 223.18 223.18 356.17 401.21 115.73 59.54 157.00 181.9219 Visakhapatnam 0.00 0.00 0.00 0.00 0.00 0.00 709.81 709.81 250.57 250.57 109.88 63.81 0.00 0.0020 Vizianagaram 0.00 0.00 475.56 444.63 0.25 11.92 27.05 73.67 1701.00 1701.00 79.49 18.28 0.00 0.0021 Warangal 3028.09 3028.09 711.13 687.08 0.99 0.99 109.94 118.93 2768.39 0.90 113.46 7.74 0.00 0.0022 West Godavari 0.00 0.00 798.69 759.78 0.00 0.00 572.60 572.60 246.08 242.12 132.10 135.40 165.10 163.39

TOTAL: 4674.19 4158.30 9759.70 10205.61 110.73 570.34 12716.74 12783.46 14247.09 8886.84 2430.25 2836.40 4759.20 5789.24

Pension grant SGRY Central fin State finSL No.


Teaching grant Non-teaching grant

STATEMENT- 5 (1)CONSOLIDATED STATEMENT OF GRANT WISE RECEIPTS & PAYMENTS OF ZILLA PARISHADS

FOR THE YEAR 2007-08Rs. In lakhs

RRM/SRRM

Page 129



TOTAL: 98.68 178.60 93.85 71.98 17.96 60.15 0.00 1.26 81.54 0.00 121.95 186.70 14329.52 13101.48

Rs. In lakhs

RWS/ARWSMinor irrigation Natural calamities Building grant

STATEMENT- 5 (2)CONSOLIDATED STATEMENT OF GRANT WISE RECEIPTS & PAYMENTS OF ZILLA PARISHADS

FOR THE YEAR 2007-08

SL No.


Honorarium-chair person

TA-DA-non officials TA-DA-Staff

Page 130



TOTAL: 263.58 255.59 4704.12 2552.34 9953.50 5655.33 68.73 153.50 385.45 200.92 12032.29 5429.95 90849.07 73077.99

Contingencies HSs Other grants TotalElection grant Constituency-MP-

MLA NABARD Office contingencies

CONSOLIDATED STATEMENT OF GRANT WISE RECEIPTS & PAYMENTS OF ZILLA PARISHADS FOR THE YEAR 2007-08

STATEMENT- 5 (3)

Rs. In lakhs

SL No.


Page 131

STATEMENT No. 6

CONSOLIDATED STATEMENT OF GRANTS SANCTIONED TO MANDAL PARISHADS FOR THE YEAR 2007-08 AND EXPENDITURE

INCURRED

Rs. In lakhs

Sl No. Name Of The District Receipts Payment

1 Adilabad 1230.81 1419.07

2 Ananthapur 400.23 402.70

3 Chittoor 9297.73 6911.46

4 East Godavari 2958.87 2845.81

5 Guntur 3353.86 3400.55

6 Kadapa 105.65 167.55

7 Karimnagar 863.82 990.75

8 Khammam 873.28 809.87

9 Krishna 1396.27 1455.12

10 Kurnool 309.41 298.03


12 Medak 162.30 91.31

13 Nalgonda 5060.96 5098.08

14 Nellore 415.37 493.59

15 Nizamabad 264.59 257.56

16 Prakasam 526.38 582.57

17 Ranga Reddy 785.73 759.02

18 Srikakulam 2347.49 2184.41


20 Vizianagaram 4207.28 4958.75

21 Warangal 2127.85 2249.72

22 West Godavari 1115.13 1241.72

TOTAL: 40522.42 39377.93

132

STATEMENT No. 6 (1)Statement showing the Head wise Receipts and Payments of Grants in Mandal Paraishads for the year 2007-08

Rs. In lakhs

Sl No.

Name Of The District

Teaching Non-teaching SGRY Central Finance State Finance

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments

1 Adilabad 2.58 2.51 89.13 141.20 109.72 211.28 52.92 82.74 66.34 40.562 Ananthapur 20.82 17.38 15.51 13.45 44.93 120.43 11.95 16.14 51.63 16.073 Chittoor 5131.23 2772.29 458.59 437.19 1338.70 1330.23 43.24 25.13 61.80 40.354 East Godavari 1742.48 2050.72 228.54 231.10 206.08 124.23 18.75 14.64 139.76 48.295 Guntur 1038.28 1036.75 142.79 136.05 401.90 410.72 65.62 34.37 0.00 0.006 Kadapa 1.16 0.00 0.00 0.00 9.35 68.42 10.30 9.42 41.72 34.427 Karimnagar 34.51 52.65 146.35 160.05 6.97 57.15 36.54 23.46 48.38 27.118 Khammam 48.84 81.76 64.58 86.33 57.99 170.00 65.82 72.75 36.30 7.559 Krishna 0.00 0.00 59.61 58.02 731.95 712.01 30.20 42.11 57.79 45.69

10 Kurnool 0.00 0.00 6.53 11.03 138.50 173.18 18.48 16.18 42.64 15.0711 Mahaboobnagar 0.00 0.00 70.23 70.02 0.00 0.00 6.39 6.69 7.51 5.7212 Medak 1.84 1.84 21.88 22.72 5.47 10.86 11.02 15.92 17.58 14.1213 Nalgonda 4571.93 4534.10 315.83 315.84 23.79 84.40 52.22 66.42 42.47 20.9414 Nellore 0.00 0.00 82.12 84.62 174.15 235.33 36.56 42.61 47.52 30.8615 Nizamabad 0.00 0.00 31.92 31.50 2.22 8.49 57.59 55.50 45.26 25.5116 Prakasam 0.00 0.00 0.76 0.82 62.95 93.67 46.80 51.36 71.24 38.8817 Ranga Reddy 27.90 4.12 210.12 285.41 15.58 8.12 79.17 66.92 49.19 15.3818 Srikakulam 305.03 304.91 11.03 2.20 250.09 323.98 28.90 17.44 76.59 25.1319 Visakhapatnam 985.39 986.12 116.53 116.53 874.66 875.74 29.48 22.45 0.00 0.0020 Vizianagaram 2505.45 2505.77 9.50 9.49 303.60 264.63 20.95 22.76 53.21 23.6621 Warangal 0.00 0.00 287.72 447.92 247.73 31.14 52.45 87.77 56.72 50.6122 West Godavari 0.00 0.00 65.12 64.10 368.96 496.90 4.22 5.36 44.15 19.49

TOTAL: 16417.44 14350.92 2434.39 2725.59 5375.29 5810.91 779.57 798.14 1057.80 545.41

Page 133


Rs. In lakhs

Sl No. Name Of The District

Rural road maintenance

Honorarium to Presidents TA-Dato non-officials TA-DA to officers& Staff Minor irrigation Natural clamity

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments



TOTAL: 191.06 553.35 605.12 426.45 263.69 271.34 142.25 263.28 18.48 42.97 3.71 3.21

Page 134


Rs. In lakhs

Sl No.

Name Of the District

Building grant RWS/ARWS Election grant Assembly MP,MLA NABARD Other grants Total


1 Adilabad 0.00 0.00 0.00 0.00 0.00 0.00 700.19 700.30 0.00 0.00 168.27 199.26 1230.81 1419.072 Ananthapur 0.00 0.00 0.00 0.00 2.53 0.50 0.00 0.00 0.00 0.00 186.30 160.40 400.23 402.703 Chittoor 0.00 0.00 0.00 12.83 0.00 0.00 1.99 0.00 0.00 0.00 2180.91 2186.78 9297.73 6911.464 East Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 531.45 257.03 2958.87 2845.815 Guntur 0.00 0.74 1.54 2.05 0.10 1.45 8.66 8.50 0.00 0.00 1666.60 1720.59 3353.86 3400.556 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.16 21.69 105.65 167.557 Karimnagar 0.00 0.00 0.00 0.00 0.00 0.00 489.47 492.37 0.00 0.00 29.88 110.03 863.82 990.758 Khammam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 547.84 345.47 873.28 809.879 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 413.41 476.51 1396.27 1455.12


TOTAL: 0.00 15.09 94.97 169.11 33.87 18.68 1654.17 1611.07 660.91 944.12 10789.70 10828.29 40522.42 39377.93

Page 135

STATEMENT No. 7

STATEMENT OF DISTRICT WISE CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM PANCHAYATS UNDER CONSOLIDATE

FIGURES GRANT FOR THE YEAR 2007-08Rs. In lakhs


1 Adilabad 210.10 248.47

2 Ananthapur 676.67 815.98

3 Chittoor 1054.20 1133.63

4 East Godavari 2423.69 2881.18

5 Guntur 2064.53 2306.09

6 Kadapa 1024.70 854.58

7 Karimnagar 2352.22 2189.94

8 Khammam 989.52 1178.58

9 Krishna 2916.16 4222.48

10 Kurnool 1269.46 1168.22


12 Medak 427.61 383.48

13 Nalgonda 1665.34 2010.89

14 Nellore 1445.59 1697.05

15 Nizamabad 1314.64 886.88

16 Prakasam 2082.05 2210.43

17 Ranga Reddy 425.70 557.16

18 Srikakulam 1112.14 1393.62


20 Vizianagaram 1374.41 1084.37

21 Warangal 1248.28 1440.92

22 West Godavari 2748.51 3216.12

TOTAL: 31705.28 34721.66

136

STATEMENT No. 7 (1)STATEMENT OF CONSOLIDATED GRANT WISE RECEIPTS & PAYMENT OF GRAM PANCHAYATS

FOR THE YEAR 2007-08Rs. In lakhs

Sl No.


Salary Grant JRY/SGRY X/XI finance State Finance Other grant TotalReceipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments



TOTAL: 4949.89 7295.01 6024.63 7763.52 8558.91 10346.33 6498.13 5431.37 5673.72 3885.43 31705.28 34721.66

137

STATEMENT No. 8

STATEMENT SHOWING AUDIT OBJECTIONS RAISED DURING THE YEAR 2007-08

Sl. No.


No. OF OBJECTIONS

AMOUNT Rs. In lakhs.

1 ZILLA PARISHADS 176 200.00

2 MANDAL PARISHADS 493 104.86

3 GRAM PANCHAYATS 15416 491.28

TOTAL:- 16085 796.14

138

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Variation in Account Figures 41 1024.98 371 243.88 6195 623.44 6607 1892.302 Excess Utilisation of Grants / Funds 26 68.64 926 733.05 6821 525.22 7773 1326.913 Diversion of Grants / Funds 73 253.37 1127 429.62 1022 402.96 2222 1085.954 Non-utilisation of grants before the lapsable date 31 472.57 284 236.03 15734 609.66 16049 1318.265 Mis-utilisation of Grants / Funds 18 200.24 162 118.73 1072 799.11 1252 1118.086 Non-utilisation of Earmarked Funds 3385 3099.47 3932 2850.56 0 0 7317 5950.037 Non-collection of dues 75 209.58 425 132.04 38251 3990.49 38751 4332.118 Advances pending adjsutemnt 185 4490.64 1034 441.55 17124 9343.87 18343 14276.069 Violation of Rules 406 2722.92 3474 750.79 85690 4164.91 89570 7638.62

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 332 315.3 2383 777.34 35190 2567.27 37905 3659.91

11 Non Production of Records 1453 18805.44 5707 12251.03 75350 6594.25 82510 37650.7212 Misappropriations 16 24.66 195 50.0542 1149 349.1 1360 423.8113 Excess Payments 873 207.99 1130 132.77 1399 172.89 3402 513.6514 Wasteful Expenditure 57 44.54 500 38.48 2482 171.89 3039 254.91

15 Instances of cases of unaccounted for cash / stores 117 2259.71 32 9.01 360 84.08 509 2352.80

16 Pendency of Utilisation Certificates 94 327.97 1363 5838.95 4376 26.73 5833 6193.6517 Surcharge Certificates recovery pending 6 3.93 262 5.84 2910 12.64 3178 22.4118 Others 429 606.01 7190 468.39 106988 553.01 114607 1627.4119 D.D/Cheques received but not realized with in time 0 0.00 3 0.32 5 0.71 8 1.03

Total: 7617 35137.96 30497 25508.11 402113 30991.52 440235 91638.62

STATEMENT No. 9 STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED


ZILLA PARISHADS

MANDAL PARISHADS

GRAM PANCHAYATS

Rs. In lakhs

TOTALSl. No. NAME OF THE CATEGORY

139

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 1 0.00 1 0.00 2 0.002 Ananthapur 0 0.00 6 2.52 467 7.13 473 9.653 Chittoor 0 0.00 56 36.41 19.94 323.05 75.94 359.464 East Godavari 9 1.49 15 0.37 20 1.00 44 2.865 Guntur 5 0.33 3 0.00 57 1.51 65 1.846 Kadapa 2 0.00 13 0.00 943 0.70 958 0.707 Karimnagar 2 0.00 6 0.06 8 0.09 16 0.158 Khammam 1 0.00 2 2.98 165 47.56 168 50.549 Krishna 1 0.00 14 1.15 19 3.75 34 4.9010 Kurnool 2 0.20 37 14.29 1588 157.15 1627 171.6411 Mahaboobnagar 0 0.00 2 0.52 14 1.05 16 1.5712 Medak 0 0.00 7 0.00 45 0.07 52 0.0713 Nalgonda 2 68.66 8 0.00 160 2.36 170 71.0214 Nellore 2 0.00 18 0.00 26 0.00 46 0.0015 Nizamabad 0 0.00 25 33.88 138 14.83 163 48.7116 Prakasam 5 0.00 31 0.00 125 0.97 161 0.9717 Ranga Reddy 0 0.00 13 12.67 274 2.18 287 14.8518 Srikakulam 1 0.00 49 113.04 292 8.51 342 121.5519 Visakhapatnam 0 0.00 19 0.81 667 15.84 686 16.6520 Vizianagaram 6 954.30 3 0.67 492 6.59 501 961.5621 Warangal 2 0.00 37 24.51 314 27.92 353 52.4322 West Godavari 1 0.00 6 0.00 361 1.18 368 1.18

TOTAL: 41 1024.98 371 243.88 6195.94 623.44 6607.9 1892.30

MANDAL PARISHADS GRAM PANCHAYATS

STATEMENT No. 9 (1)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON VARIATION IN ACCOUNT FIGURES AND AMOUNT

INVOLVED FOR THE YEAR 2007-08Rs. In lakhs

TOTALSl. No. NAME OF THE

DISTRICTZILLA PARISHADS

140

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 3 2.03 62 11.97 9 0.81 74 14.812 Ananthapur 2 0.00 126 17.91 682 5.40 810 23.313 Chittoor 0 0.00 44 0.47 22 3.29 66 3.764 East Godavari 0 0.00 24 5.90 871 66.20 895 72.105 Guntur 4 3.07 54 7.25 467 32.95 525 43.276 Kadapa 1 4.01 86 4.33 571 15.69 658 24.037 Karimnagar 1 0.18 29 10.91 140 4.84 170 15.938 Khammam 3 0.21 4 0.45 84 3.63 91 4.299 Krishna 1 0.00 70 303.78 19 1.58 90 305.36

10 Kurnool 1 0.00 97 27.87 587 126.34 685 154.2111 Mahaboobnagar 0 0.00 45 7.32 23 3.69 68 11.0112 Medak 2 1.90 9 0.93 74 2.62 85 5.4513 Nalgonda 0 0.00 35 35.23 84 3.21 119 38.4414 Nellore 0 0.00 47 5.03 129 4.42 176 9.4515 Nizamabad 0 0.00 35 72.59 1885 225.31 1920 297.9016 Prakasam 0 0.00 3 0.23 102 3.15 105 3.3817 Ranga Reddy 1 0.00 19 208.01 65 1.90 85 209.9118 Srikakulam 2 23.70 23 0.01 242 3.86 267 27.5719 Visakhapatnam 0 0.00 62 3.68 85 2.61 147 6.2920 Vizianagaram 4 33.54 17 2.61 6 0.00 27 36.1521 Warangal 0 0.00 20 3.38 31 1.60 51 4.9822 West Godavari 1 0.00 15 3.19 643 12.12 659 15.31

TOTAL: 26 68.64 926 733.05 6821 525.22 7773 1326.91

STATEMENT No. 9 (2)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS UTILISATION OF GRANTS / FUNDS AND

AMOUNT INVOLVED FOR THE YEAR 2007-08

TOTAL

Rs. In lakhs

Sl. No. NAME OF THE DISTRICT

ZILLA PARISHADS MANDAL PARISHADS

GRAM PANCHAYATS

141



TOTAL: 73 253.37 1127 429.62 1022 402.96 2222 1085.95

STATEMENT No. 9 (3)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON DIVERSION OF GRANTS / FUNDS AND AMOUNT

INVOLVED FOR THE YEAR 2007-08

TOTAL

Rs. In lakhs



GRAM PANCHAYATS

142



TOTAL: 31 472.57 284 236.03 15734 609.66 16049 1318.26

STATEMENT No. 9 (4)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-UTILISATION OF GRANTS BEFORE THE

LAPSABLE DATE AND AMOUNT INVOLVED FOR THE YEAR 2007-08

TOTAL

Rs. In lakhs



GRAM PANCHAYATS

143



TOTAL: 18 200.24 162 118.73 1072 799.11 1252 1118.08

STATEMENT No. 9 (5)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS - UTILISATION OF GRANTS / FUNDS AND

AMOUNT INVOLVED FOR THE YEAR 2007-08

TOTAL

Rs. In lakhs



GRAM PANCHAYATS

144

Receipts Payments Receipts Payments Receipts Payments Receipts Payments



Total 1383.08 1443.85 573.43 785.84 1429.06 869.78 3385.57 3099.47

STATEMENT No. 9 (6) (1)

STATEMENT SHOWING DETAILS OF AMOUNT EARMARKED FOR WELFRE OF SCHEDULED CASTES IN ZILLA PARISHADS DURING THE YEAR 2007-08

(15% FOR SCHEDULED

CASTES)

(6% SCHEDULED TRIBES) Total

(15% FOR WOMEN DEVELOPMENT

AND CHILD WELFARE)

Rs. In lakhs

Name of theDistrict

SL No.

145

Rs. In lakhs

Receipts Payments Receipts Payments Receipts Payments Receipts Payments



Total 1529.42 1133.36 768.08 478.10 1635.03 1239.10 3932.53 2850.56

STATEMENT No.9 (6) (2)

Total

STATEMENT SHOWING DETAILS OF AMOUNT EARMARKED FOR WELFARE OF SCHEDULED CASTES IN MANDAL PARISHADS DURING THE YEAR 2007-08

cludes both 15% Scheduled Castes and 6% S

(15% FOR SCHEDULED

CASTES)

(6% SCHEDULED TRIBES)

(15% FOR WOMEN DEVELOPMENT AND

CHILD WELFARE)Name of theDistrict

SL No.

146



TOTAL: 75 209.58 425 132.04 38251 3990.49 38751 4332.11

STATEMENT No. 9 (7)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-COLLECTION OF DUES AND AMOUNT INVOLVED FOR THE YEAR 2007-08


DISTRICTZILLA PARISHADS MANDAL

PARISHADS GRAM PANCHAYATS

147



TOTAL: 185 4490.64 1034 441.55 17124 9343.87 18343 14276.06

STATEMENT No. 9 (8)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON ADVANCES PENDING ADJUSTMENT AND AMOUNT INVOLVED FOR THE YEAR 2007-08



PARISHADSGRAM

PANCHAYATS

148



TOTAL: 406 2722.92 3474 750.79 85690 4164.91 89570 7638.62

STATEMENT No. 9 (9)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON VIOLATION OF RULES AND AMOUNT INVOLVED FOR THE YEAR 2007-08



PARISHADSGRAM

PANCHAYATS

149

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 2 0.60 36 8.55 26 3.75 64 12.902 Ananthapur 0 0.00 172 15.99 1208 10.63 1380 26.623 Chittoor 0 0.00 31 4.40 898 43.59 929 47.994 East Godavari 17 27.40 95 33.34 2822 130.03 2934 190.775 Guntur 6 33.84 103 17.99 2004 234.56 2113 286.396 Kadapa 0 0.00 79 21.38 910 28.62 989 50.007 Karimnagar 1 0.00 205 18.35 434 11.73 640 30.088 Khammam 15 28.40 110 10.17 1053 67.35 1178 105.929 Krishna 1 2.70 293 107.42 2785 172.65 3079 282.7710 Kurnool 179 76.00 387 112.29 6190 680.78 6756 869.0711 Mahaboobnagar 2 0.03 118 20.69 103 14.54 223 35.2612 Medak 21 2.37 76 32.54 341 104.39 438 139.3013 Nalgonda 3 1.06 49 11.80 236 22.47 288 35.3314 Nellore 10 14.60 112 13.60 1254 64.64 1376 92.8415 Nizamabad 0 0.00 40 9.34 617 34.72 657 44.0616 Prakasam 23 16.64 63 34.69 1605 101.52 1691 152.8517 Ranga Reddy 4 1.81 70 179.69 376 325.62 450 507.1218 Srikakulam 13 91.60 56 30.16 1861 91.42 1930 213.1819 Visakhapatnam 5 15.01 74 55.48 5131 110.79 5210 181.2820 Vizianagaram 0 0.00 0 0.00 0 0.00 0 0.0021 Warangal 30 3.24 161 16.46 759 40.73 950 60.4322 West Godavari 0 0.00 53 23.01 4577 272.74 4630 295.75

TOTAL: 332 315.30 2383 777.34 35190 2567.27 37905 3659.91

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-REMITTANCE OF DEDUCTION RECOVERIES FROM WORK BILLS / PAY BILLS / CONTINGENT BILLS ETC., AND AMOUNT INVOLVED FOR THE YEAR 2007-08

STATEMENT No. 9 (10)


DISTRICTZILLA PARISHADS MANDAL PARISHADS GRAM

PANCHAYATS

Rs. In lakhs

150



TOTAL: 1453 18805.44 5707 12251.03 75350 6594.25 82510 37650.72


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-PRODUCTION OF RECORDS AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

151



TOTAL: 16 24.66 195 50.05 1149 349.10 1360 423.81


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS-APPROPRIATIONS AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

152



TOTAL: 873 207.99 1130 132.77 1399 172.89 3402 513.65


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS PAYMENTS AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

153



TOTAL: 57 44.54 500 38.48 2482 171.89 3039 254.91


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON WASTEFUL EXPENDITURE AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

154



TOTAL: 117 2259.71 32 9.01 360 84.08 509 2352.80


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON INSTANCES OF CASES OF UNACCOUNTED FOR CASH / STORES AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

155


10 Kurnool 10 40.00 329 5758.84 22 4.67 361 5803.5111 Mahaboobnagar 1 1.20 68 0.00 22 91 1.2012 Medak 0 0.00 16 0.00 58 0.00 74 0.0013 Nalgonda 2 0.00 15 0.00 3 0.00 20 0.0014 Nellore 9 0.00 58 0.30 880 0.00 947 0.3015 Nizamabad 0 0.00 9 3.62 0 0.00 9 3.6216 Prakasam 9 0.00 30 0.81 340 5.00 379 5.8117 Ranga Reddy 1 0.00 12 0.00 16 1.61 29 1.6118 Srikakulam 8 0.00 33 0.00 96 0.11 137 0.1119 Visakhapatnam 0 0.00 30 2.00 2 0.00 32 2.0020 Vizianagaram 15 0.00 186 49.09 770 6.02 971 55.1121 Warangal 9 0.00 46 5.84 8 0.77 63 6.6122 West Godavari 0 0.00 43 0.00 0 0.00 43 0.00

TOTAL: 94 327.97 1363 5838.95 4376 26.73 5833 6193.65


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON PENDENCY OF UTILISATION CERTIFICATES AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

156



TOTAL: 6 3.93 262 5.84 2910 12.64 3178 22.41


STATEMENT SHOWING NUMBER O ON SURCHARGE CERTIFICATES RECOVERY PENDING AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADSGRAM

PANCHAYATS

157



TOTAL: 429 606.01 7190 468.39 106988 553.01 114607 1627.41


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON OTHERS AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



PARISHADS GRAM PANCHAYATS

158



TOTAL: 0 0.00 3 0.32 5 0.71 8 1.03


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON D.D / CHEQUES RECEIVED BUT NOT REALIZED WITH IN TIME AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs



GRAM PANCHAYATS TOTAL

159

STATEMENT No. 10

STATEMENT SHOWING THE AUDIT OBJECTIONS (CUMULATIVE) AS ON 31-03-2008

Rs. In lakhs.Sl. No.


No. OF OBJECTIONS AMOUNT

1 ZILLA PARISHADS 53142 262813.23

2 MANDAL PARISHADS 306278 87461.91

3 GRAM PANCHAYATS 1163934 377263.67

TOTAL:- 1523354 727538.81

160

PART - II



PART – II CONSOLIDATED AUDIT AND REVIEW REPORT ON THE

ACCOUNTS OF MUNICIPALITIES FOR THE YEAR 2007‐08


CONTENTS

PART – II

SECTION – I

Sl. No. DESCRIPTION PAGE No.

I Preface ii II Overview iii III Introduction 1-6 IV A few Selected Audit Paras – Category wise 7-28

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2007-08 OF MUNICIPALITIES

PAGE No.

1 Status of Audit of Municipalities (District wise). 29 2. (1) Receipts and Payments of Municipalities (District wise). 30 2 (1) Receipts and Payments of Municipalities (Fund wise). 31 2 (2) Receipts and Payments of Municipalities (Fund wise). 32

3 (1) Government Grants released to Municipalities and Payments made. (District wise) 33

2 (1) Consolidated Statement of Grants Receipts & Payments Fund Wise in Municipalities for the year 2007-08 34




4 (1) Audit Objections raised in Municipalities (District wise) for the year 2007-08. 38

(2) Audit Objections raised (category wise) and Amount involved in respect of Municipalities. 39

3 (1) Statement showing the Dist and category wise Audit Objections 40



i

PREFACE

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 Municipalities, 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 Municipalities 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 Municipalities are being approved by the Dist. Audit

Officers (DAO) and Surcharge Certificates are being issued by the Regional Deputy Directors (RDD).

Institution wise audit reports containing various audit objections are issued to the

Executive Authorities of the concerned Municipalities 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 2007-08 and also the arrears were audited by the Director of State Audit during the year 2008-09 is submitted.

ii

OVER VIEW . During the year under report, the Director could audit some of the arrears also apart

from current audits of Municipal Councils as shown below:

Current Audit Arrear Audit Total 26 54 80

AUDITED AMOUNTS:

The total Receipts and Expenditure of all the Municipalities put together for the year 2007-08 were Rs. 342.81 Crores and Rs. 310.84 Crores respectively. AUDIT OBJECTIONS: Various irregularities noticed in audit are broadly classified into 19 categories as detailed below:

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-Utilisation of Ear-marked funds 7. Non-collection of dues 8. Advances Pending Adjustment 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 Utilization Certificates 17. Surcharge Certificates- Recovery Pending. 18. Others 19. DDs / Cheques etc., received but not realised within time A total number of 5308 audit objections involving an amount of Rs.167.10 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 (3) appended to the report.

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 Assistant Audit Officer, District Audit officer and Regional Deputy Director are authorised to attend the settlement of audit objections. The audit report contains the details about number of audit objections pending settlement at the close of the audit. The audit paras selected for inclusion in the Consolidated Audit and Review Report give a glimpse of financial administration in the Municipalities. For details Municipal Council wise, audit reports are to be referred.

iii

SECTION - I

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF MUNICIPALITIES FOR THE YEAR 2007-08

SECTION - I

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 2007-08 is 120.

1.2 The Department has got Zonal Offices at 6 places 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 a 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.

1.4 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

2.1 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.

1

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 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 COUNCILS. 3.1 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.

3.2 The Receipts and Payments are inclusive of the various Grants received from Central and State Governments during the year 2007-08 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 2007-08 are exhibited below in the Pie chart.

PIE CHART OF MCS RECIEPTS 2007-2008

66%4%

5%

7%

3%

9%

2%

3%

1%1 General Account

2 Lighting Account

3 Education Account

4 W ater Supply&Drainage Account5 Town PlanningFund Account6 Deposits Account

7 Advances Account

8 Pension Fundaccount9 Provident FundAccount

The Fund Wise Payments of Municipal Councils for the year 2007-08 are exhibited below in the Pie chart.

2

PIE CHART OF MCS PAYMENTS 2007-2008

62%

5%

6%

7%

1%

11%

3%

4%

1% 1 General Account

2 Lighting Account

3 Education Account

4 W ater Supply&DrainageAccount

5 Town Planning FundAccount

6 Deposits Account

7 Advances Account

8 Pension Fund Account

9 Provident Fund Account

STATUS OF AUDIT

4.1 80 years of Audit of Municipal Councils up to the year 2007-08 was conducted in the year

as mentioned below.

Current Audit Arrear Audit Total

26 54 80

4.2 The Department has conducted the audit of the receipts amounting to Rs. 34281.67 lakhs

and Payments of Rs.31084.47 lakhs as detailed in the Statements No.2 with Local Authority wise break up.

4.2.1 The Fund Wise Receipts & Payment of Municipal Councils for the year 2007-08 are

exhibited below in the bar charts.

3

RECIEPTS AND PAYMENTS FOR 2007-2008(FUND WISE)15

146.

19

1022

.51

1175

.43

1674

.84

619.

54

2068

.36

466.

31

640.

24

179.

78

1376

6.63

1199

.4

1408

.89

1553

.72

224.

15 2468

.67

566.

96

808.

66

111.

05

Gen

eral

Acc

ount

Ligh

ting

Acc

ount

Edu

catio

nA

ccou

ntW

ater

Sup

ply&

Dra

inag

eA

ccou

nt T

own

Pla

nnin

gFu

nd A

ccou

nt

Dep

osits

Acc

ount

Adv

ance

sA

ccou

nt

Pen

sion

Fun

dA

ccou

nt

Pro

vide

nt F

und

Acc

ount

1 2 3 4 5 6 7 8 9

RECIEPTS PAYMENTS

AUDIT OBJECTIONS

5.1 During the course of audit of these Municipalities for the year 2007-08 various defects noticed were already pointed out in the relevant Audit Reports 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.

5.2 A total number of 5038 audit objections involving an amount of Rs. 16710.04 lakhs were raised in the audit of the Municipalities during the year under report.

4

5.3 A Consolidated Statement showing the number of objections raised, amount involved with category wise break-up is annexed vide Statement No.4.

5.4 CATEGORISATION OF AUDIT OBJECTIONS The various audit objections are classified into 19 categories as detailed below.

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-Utilisation of Earmarked Funds 7. Non-collection of dues 8. Advances Pending Adjustment 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 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 4 (1) to 4 (3)].

5.6 The objections raised have been analyzed here under and observed that the Non

production of records has accounted for 71.59 % of objections followed by Non- collection of dues 10.50%%

5.7. Gist of some of the selected audit objections pertaining to the year under report is

enumerated below:

5

The objections - Number and amount involved - were categorized and their category has been analyzed. 71.59% of amount objected pertains to the Non production of records, followed by Non-collection of dues which constitutes 10.50%. These two together state that records are not properly kept by Municipalities. 0.83% of amount objected is on account of mis-appropriation.

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2007-08

Rs. In lakhs. Sl. No. Name of the Category No. Amount %

1 Non Production of Records 2215 11963.1 71.59

2 Non-collection of dues 288 1754.66 10.50

3 Violation of Rules 799 1030.02 6.16

4 Others 667 517.49 3.10

5 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 308 558.53 3.34

6 Advances Pending Adjustment 138 234.08 1.40

7 Non-utilization of Earmarked funds 33 138.44 0.83

8 Mis-appropriations 72 120.35 0.72

9 Diversion of Grants / Funds 47 141.3 0.85

10 Surcharge-Certificates – Recovery pending 1 71.77 0.43

11 Wasteful Expenditure 40 61.65 0.37

12 Excess Payments 283 47.83 0.29

13 Excess Utilization of Grants / Funds 24 19.43 0.12

14 Non-utilization of Grants before the lapsable date 23 15.85 0.09

15 Variation in Account Figures 57 25.57 0.15

16 Mis-utilisation of Grants / Funds 12 5.14 0.03

17 Instances of cases of unaccounted for Cash / Stores 8 2.68 0.02

18 D.D. Cheques received but not realized with in time 2 2.17 0.01

19 Pendency of Utilization Certificates 21 0 0.00

Total: 5038 16710 100.00

6

AUDIT PARAS

1. Variation in Account Figures

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 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 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 addition or subtraction is being done in the Reconciliation by the D.DO to arrive at the balance actually available in the S.T. Pass Book. Wrong Totaling of Credits and debits either by D.D.O of 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 ect.,

A Consolidated Statement No. 4 (3) 1 of Variation in account figures is appended to the Report from which it could be seen that Non-reconciliation of Rs. 25.57 lakhs was pointed out in 57 audit paras.

2. Excess Utilisation of Grants

Municipalities are in receipt of grant in aid from the Government for certain

specified purposes to be spent within a prescribed time and they furnish Utilization Certificate for the grants utilized.

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

certain municipalities incurred expenditure in excess of the grants in aid received. The Fact of incurring of such excess expenditure in plied 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.

24 such cases of expenditure involved an amount of Rs. 19.43 lakhs over and above the grant in aid received are detailed in Statement No. 4 (3) 1.

7

3. DIVERSION OF GRANTS

Rule 39 of the 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 might 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 conductive to the safety, health, education and convenience of inhabitants or to the amenities of the municipality and incidental to the administration and the fund should be applicable thereto within the municipality. However the expenditure outside the Municipality is to be authorized either by the Act or specially sanctioned by government.

As per the orders issued by the Government in G.O.Ms. No. 1886, Municipal Administration dated 22-11-1965, the Municipal Councils 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.

But it was observed in audit that diversion of funds/grants was frequently made in most of the Municipalities without the sanction of the government. A few of such diversions reported in the Audit Reports are cited hereunder.

A Statement of such 47 cases involving an amount of Rs. 141.30 lakhs noticed

is appended to the Report in Statement No. 4 (3) 1.

3.1 JAGGAIAHPETA MUNICIPALITY, KRISHNA DISTRICT - DIVERSION OF RAJIVNAGARA BATA FUNDS FOR IRREGULAR – RS.4,24,724/-

An amount of Rs.4,24,724/- was diverted from the funds of Rajiv Nagar bata funds purposes other than those specified in the guidelines.

(Para 14 of Audit Report on the accounts of Jaggaiahpeta Municipality, Krishna district)

8

3.2. Narasaraopet Municipality, Guntur District - Diversion of Non-plan grant – for payment of salaries and other purposes – Rs.5,20,647/-

An amount of Rs.5,20,647/- was diverted from non-plan grant and was utilized

for payment of salaries to the municipal staff and for purposes other than specified as shown under which is not in order.

Sl.

No

Particulars Vr No: & Date Expenditure

incurred

1. Medical reimbursement bill of Sri

Narayana Rao, Ex-Commissioner

298/ 21-9-06 36,000

2. Work shops staff salary for the month of

6/2006

13/23-8-06 8286

3. - do – 7/2006 23/ - do - 8286

4. do 6/2006 10/ 23-8-06 7882

5. do - 7/2006 14/ - do - 7882

6. Bills collection staff salary 6/2006 9/ - do - 22288

7. - do – 7/2006 16 / - do - 22288

8. - do – Bore well operator 6/206 11/ - do - 80853

9. Ph Workers salaries for more 6/06 2/23-8-06 246509

Total 5,20,647

(Para 16 of Audit Report on the accounts of Narasaraopet Municipality, Guntur District)

4. NON-UTILISATION OF GRANTS BEFORE

LAPSABLE DATE

Government release special grants to the Local bodies 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.

9

It is noticed in audit that in spite of allowing reasonable time for utilizing the grant, certain municipalities 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 few of such cases pointed out in the Audit Reports of the local bodies are detailed hereunder. A Statement of 23 such cases involving an amount of Rs. 15.85 lakhs noticed is appended to the Report as Statement No. 4 (3) 1.

5. MIS-UTILISATION 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.

12 cases of Mis-utilisation of funds / grants involving Rs. 5.14 lakhs pointed out

in the relevant audit reports are detailed in Statement No. 4 (3) 1 appended to this report A few of them are mentioned below.

5.1 PAYMENT OF PAY AND ALLOWANCES OF SRI Y. NARASIMHULU, DY.E.E. FROM MUNICIPAL FUNDS INSTEAD OF FROM TREASURY – NEEDS REIMBURSEMENT : Rs.1,81,467/-.

In vr. No. 1190, dt. 10.1.08, an amount of Rs.1,81,467/- was drawn from Municipal General funds and paid to Sri Y. Narasimhulu, Deputy Executive Engineer, Anakapalli, towards pay and allowances for the period from 7.6.06 to 6.6.07. Pay and allowances of Deputy Executive Engineer have to be met from consolidated funds of the State/Treasury under 010 salaries head. But, instead of drawing from treasury, the pay and allowances Dy. E.E., were paid from Municipal Genl. Funds, which is irregular and caused misutilisation of General Funds. Early action may be taken for the reimbursement of Rs.1,81,467/- and credited to General funds.

10

6. NON-UTILISATION OF EAR MARKED FUNDS

Governments have earmarked funds of Agriculture Market Committee 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 Woman & Children respectively. The balance of 2/3rd funds shall be utilized by these Committees for the benefit of Scheduled castes / Scheduled Tribes / Women & Children in the Agriculture Market Committee areas. 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 as per the orders of Government have to be 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 for the benefit of these sections by these Committees 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 (3) 1 of Non-utilisation of Earmarked Funds is appended to the Report from which it could be seen that 33 objections were pointed out involving Rs. 138.44.lakhs


On verification of Revenue collections in various Municipal Councils, it was observed that huge amounts were found 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 before the dues became barred by limitation of time in spite of various statutory provisions existing like distraint, prosecution or filing of suits. Dependence of Municipal councils on Government grants gets lowered if timely and appropriate action is taken by the Executive Authorities for collection of these dues. In most of the Municipal councils the details of year wise outstanding dues were not prepared and produced to audit, because of which it was not possible to ascertain in audit as to what extent the amounts became time barred during the year by limitation of time within the meaning of provisions under section 365(1) of A.P. Municipalities Act, 1965.

11

Sub –Section (1) of section 374 of A.P. Municipal Act, 1965 places the liability for loss on the officers of the Municipality if the loss is a direct consequence of their neglect. In most of the cases, the taxes and non-taxes became time barred as no action was taken before expiration of the period allowed for such recoveries and as such caused permanent loss to the municipal funds. No action seemed to have been taken against the officers for such neglect of duties in many of the Municipal Councils.

The demand for the Taxes and Non-taxes to be collected would be fixed at the beginning of the year and will be collected in a time bound manner. Effective steps should have been taken for their realization as these collections contribute to the total self reliance of the Municipal Councils. Though the executive authority was to take appropriate steps to collect the revenues by enforcing the powers vested under section 56 of the Andhra Pradesh Municipalities Act 1965, they have failed to take action in the following cases where the taxes/fee etc. were left uncollected at the end of year.

A sum of Rs 1754.66 Lakhs was found to be left uncollected by the Municipal

Authorities towards various Taxes and Non-taxes etc. raised in 288 audit paras as detailed in the statement 4(3) 1 annexed to this report.

7 .1 MUNICIPAL COUNCILS - NON-COLLECTION/SHORT COLLECTION OF

TAXES AND NON-TAXES – Rs.66.23 (LAKHS):

A sum of Rs.66.23 Lakhs has been left un-collected by the Municipal Authorities towards various Taxes and other Non-taxes as detailed in the statement furnished below. The Taxes and Non-Taxes to be collected would be fixed as per the demand at the beginning of the year and in this regard various guidelines were issued in the Act & Rules for the collection of taxes. As the collection of taxes and the dues contribute to the total self reliance of the Municipalities, the executive authorities should take appropriate steps to collect the revenues by enforcing the powers vested in them under Section 56 of the Andhra Pradesh Municipalities Act 1965. The following were the few cases of Revenue left uncollected at the end of financial year 2007-08.

Rs. In Lakhs

Sl. No

Name of the Municipality & District Details of Revenue Para

No. Amount

due 1 Bheemavaram, West Godavari Dt., Water charges 13 41.39

2 Bheemavaram, West Godavari Dt.,

Taxes and Fees (time barred) 9 4.40

3 Bhongir, Nalgonda Dt. Rents 8 10.314 Siricilla, Karimnagar Dt., IDSMT – Shop rents 13 1.095 Peddapuram, East Godavari Dt., D&O Trades 4(d) 0.05

6 Siddipeta, Medak Dt., Auction of Thaibazar and Slaughter house 19 8.99

Total: 66.23

12


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 of 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 statement of such cases noticed is appended to the Report Statement No. 4(3) 2 showing 138 objections amounting to Rs. 234.08 lakhs.

8.1 The following advances are pending with institution wise as detailed below

for the year 2007-08

MUNCIPAL COUNCIL


Advance

Amount outstanding

(Rs.)

Para No.

1 MC. Bhemavaram, Eluru Advances pending 15,000 20

2 MC. Sirsilla, Karimnagar Ele. Fund 10,000 11

3 MC. Naryanpet, Mahaboobnagar Adv. Pending 32,000 17

4 MC. Bhone, Karnool Adv. 10,000 1(I)


It was noticed in audit that in some cases the Rules, Government instructions for incurring the expenditure from the funds of Municipalities were violated either due to negligence or ignorance. Certain times, the funds of the Municipalities were utilized for purposes other than the permitted ones under the relevant Act / Rules. It was also noticed that in few cases Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected in the relevant audit reports. 799 audit objections involving an amount of Rs. 1030.02 lakhs were raised in the relevant Audit Reports as shown in Statement No. 4 (3) 2 annexed to the Report.

13

A few of them are as under 9.1 HOUSE BUILDING ADVANCE -SANCTIONED TO THE STAFF –

PROCEDURAL GUIDELINES NOT FOLLOWED- VIOLATION OF RULES- Rs.1834000/-

As verified from the Advances registers and files it was observed that a total sum

of Rs.18,34,000/- was drawn and paid to the staff of municipal council Siricilla towards House Building Advance for construction of New House / House repair / purchase of House etc. during the year under audit.

The loans were sanctioned without observing any rules such as releasing through

installments, mortgage of the asset, not obtaining Utilisation Certificates etc which is irregular. ( Para No.6 of the Audit Report on the accounts of Municipal Council Siricilla,

arimnagar District for the year 2007-08 ) K

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.


These defects noticed were pointed out in the Audit Reports. In Statement No. 4(3) 2 , 308 audit paras involving an amount of Rs. 588.52 were shown

Some of them are as under. Work Bills

1. Income Tax 2. Sales Tax 3. Seigniorage Fees

14

Pay Bills

1. Profession Tax 2. G.P.F. 3.G.I.S Premium.

These defects noticed were pointed out in the Audit Reports. Some of them are as

under.

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) 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. A few of such cases are mentioned below.

Sl. No.

Municipal Council Amount

Deducted

Amount remitted

Balance Para No.

1 MC Done, Kurnool 12621 0 12621 3

2 MC Jagayyapeta, Krishna 189928 117275 72653 84

3 MC Vinukonda, Gunturu 399429 141398 258031 37

4 MC Koratla, Karimnagar 675180 0 675180 8(i)

5 MC Peddapuram, East Godavari 17829 0 17829 7(a)

6 MC Yemmiganuru, Kurnool 7691 0 7691 10

Total: 1302678 258673 1044005

15

10.2 SEIGNIORAGE FEES 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 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 were recovered from the work bills towards Seiginorage Fees, the same was either not remitted or partly remitted only to State Funds till the close of audit. Such inaction was pointed out in the relevant audit reports. Some of such instances are listed below.

(Amount in Rupees)

Sl. No.

Municipal Councils Amount recovered

Amount remitted

Balance Para No.

1 MC Korutla, Karimnagar 781449 0 781449 8(3)

2 MC Dhoni, Kurnool 14290 0 14290 3

3 MC Jaggayapeta, Krishna 300055 0 300055 84


Total: 1269405 55089 1214316

10.3 SALES TAX 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 deducted as 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. A few of such cases are mentioned below.

16



Amount remitted

Balance Para No.

1 MC Dhoni, Kurnool 23494 0 23494 3

2 MC Jagayyapeta, Krishna 221297 63698 157599 84 3 MC Vinukonda, Gunturu 368718 232465 136253 37 4 MC Peddapuram, East Godavari 3542 0 3542 7(a)

5 MC Koratla, Karimnagar 1422215 0 1422215 8(2) 6 MC Yemiganuru, Kurnool 33976 0 33976 10 Total: 2073242 296163 1777079

10.4 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 G.P.F Account. It was noticed in audit that the G.P.F amount though 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.


Municipal Council Amount recovered

Amount remitted

Balance Para No.

1 MC Yemmiganooru, Kurnool 303001 0 303001 13


Total: 660520 0 660520

10.5 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 for the other employees Rs.20/- have to be collected 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.

17



Amount remitted

Balance Para No.

1 MC Naranpet, Mahabubnagar 1280 0 1280 27


Total: 2480 0 2480

10.6 QUALITY CONTROL CHARGES AND OTHERS DEDUCTED FROM WORK

BILLS / PAY BILLS BUT NOT REMITTED

Quality control Charges CMRF/NAC and other recoveries effected from work

bills were not remitted to concerned head of account till the close of audit. Such inaction of the Executive Authority were pointed out in the relevant audit reports.

Q.C Charges (Amount in Rupees)

Sl. No.


Amount remitted

Balance Para No.

1 MC Bhongir, Nalgonda 1992 0 1992 10(a)

2 MC Rajam, Srikakulam 10000 0 10000 20

Total 11992 0 11992

CMRF / NAC Charges

(Amount in Rupees)

Sl. No.


Amount remitted

Balance Para No.

1 MC Sirilla, Karimnagar 8634 0 8634 14

2 MC Jaggayyapet, Krishna 10265 0 10265 85

3 MC Dhoni, Karimnagar 1407 0 1407 3



6 MC Yemiganuru, Kurnool 837 0 837 10

Total: 59949 12458 47491

18

10.7 LIBRARY CESS COLLECTED BUT NOT REMITTED TO Z.G.S

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 as a surcharge on the 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 audit reports.

Some such instances are listed below.



Amount remitted

Balance Para No.

1 MC Narayanpet, Mahabubnagar 250094 0 250094 28

2 MC Bhimavaram, W.G. 13460175 0 13460175 41

3 MC Vinukonda, Kurnool 737594 0 737594 37

Total: 14447863 0 14447863


The Municipal Councils have to maintain effective financial management skills and accountability practices.


Such as important function on the part of the Drawing and disbursing officers of all the Municipal Councils 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 guidelines and instructions, the DDOs of Municipal Councils 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

19

been drawn from the individual Audit Reports 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.

A Consolidated Statement No. 4 (3) 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. 11963.08 lakhs was pointed out in 2215 audit paras

11.1. EXECUTION OF WORKS – CONNECTED ESTIMATES, MEASUREMENT

BOOKS –Etc., - NOT PRODUCED- EXPENDITURE HELD UNDER OBJECION - Rs. 29081768

An aggregate amount of Rs.29081768/- as detailed below was spent during the year 2008-09 towards execution of works by the Municipal Councils, but the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The expenditure incurred could not be admitted in audit as the correctness of the same could not be verified due to non-production of the connected records and the same is held under objection. The Executive Authorities concerned would need to take immediate action to produce connected records to audit for verification immediately.

Sl. No

Name of the Municipal council &

Dist.,


Amount involved

Rs.

Para No.

1 Ankapalli, Vishakapatnam

Valuation register for compensation for Road widening

1051135 78

2 Peddapuram, E.G.Dist.

M.Books, Estimates and files

5328631 8(5)

3 Bhimavaram, W.Godhavari

Records of AP USP Scheme 21574315 50

4 Dhone, Kurnool Work bills, Vouchers, Estimates, M.Books connected files and challans

650720 4(1)

5 Dhone, Kurnool Estimates, M.Books 371927 4(6)

6 Yemmiganur, Kurnool

Paid Vouchers, Estimates and M.Books

105040 19

Total: 29081768

20

11.2 SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT PRODUCED:

During the audit scrutiny for the year 2007-08 it was noticed that expenditure of an aggregate amount of Rs. 22,28,987/- was incurred as detailed below. But the connected service Registers ,files, registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

Sl. No.

Name of the Municipal council & Dist.,


Amount Rs.

Para No.

1 Dhone, Kurnool Suit Registers 67864 4.18

2 Yammaganur, Kurnool File relating to payment of contract labour

1809819 17

3 Siricilla, Karimnagar Service Registers 227882 8

4 Korutla, Karimnagar Service Registers 123422 9(2)

Total: 2228987

11.3 AMOUNTS REMITTED – CHALLANS NOT PRODUCED

During the audit scrutiny of the Municipal Council Siricilla for the year 2007-08 it was noticed that an amount of Rs.54,764/- was drawn and remitted to different heads i.e GPF, GIS & Bank Loans etc., . But the challans and remittance slips for the said remittances were not produced to audit for verification.

(Para no.7 of the A.R for the year 2007-08 of Municipal Council, Siricilla, Adilabad District)

12. MISAPPROPRIATIONS

Cases of Misappropriation of moneys noticed in audit were pointed out in the Audit Reports.

A consolidated statement of Mis-appropriations noticed in audit is annexed vide Statement No. 4 (3) 2. A total number of 72 cases involving an amount of Rs.120.35 lakhs were pointed out in the relevant Audit Reports.

21

13. EXCESS PAYMENTS

It was observed that in several cases excess payments were made due to a) Incorrect Calculation b) Excess totaling in bills c) Admission of inadmissible claims d) Lack of knowledge of Government Instructions.

Consolidated statement of Excess payments Statement No. 4 (3) 2 is appended to the Report. The excess payments pointed out in 283 Audit paras were involving an amount of Rs.47.83 lakhs.

A few cases of Excess Payments are mentioned below.

13.1 MUNICIPAL COUNCIL, ANAKAPALLI, VISAKAPATNAM DISTRICT - DEATH RELIEF TO THE PENSIONERS - PAID Rs.5000/- INSTEAD OF RS.2000/- VIOLATION OF GOVERNMENT ORDERS EXCESS PAYMENT RS.18000/-

As per G.O.(p) No.250 Fin (pen-I) department Dt.4-10-2005, relief amount in

case of death of pensioner who are in receipt of service pension was raised from Rs.2000/- to Rs.5000/- w.e.f the date of issue of orders i.e from 4-10-2005. As per Memo No.18906/387/A2/Pen-I/2006 Dated.15-7-2006 of Fin (Pen-I) Department, orders are applicable only to the Government pensioners and are not applicable to the Non-Government pensioners such as pensioners of aided Institutions, local bodies, and corporation etc.

Later the death relief sanctioned in G.O.(P) No.250Fin(Pen-I) Department Dt.4-10-2005, be extended to all the categories of non Government service pensioners whose service pension is being charged to 2071 pension of other retirement benefits through the G.O.Ms No.238 Fin(Pen-I) Department Dated 16-8-2008. These orders shall apply in case of death of non Government service pensioners on or after the date of issue of these orders i.e. from 16-8-2008 only.

Contrary to the Government Orders, the commissioner, Municipal council,

Anakapalli, has accorded sanction for Rs.5000/- in stead of Rs.2000/- in the following cases towards death relief cases of pensioners in receipt of service pension which resulted excess payment of Rs.3000/- on each case.

Therefore excess payment of Rs.18000/- (@3000X6 cases) towards death relief to

the pensioners in receipt of service pension. Further, if any payments made after 1-4-2008 onwards @5000/- towards death

relief would need to be worked out, excess payments to be recovered from the concerned.

(para No.29 of Audit Report on the Accounts of Anakapalli Municipal Council, Visakapatnam District for the year 2007-08 )

22

13.2 EXCESS PAYMENT – CELL PHONE BILL

As per orders issued in GO.Ms.No.291 (IT& C) Dept dt: 27.9.2007, the permission for incurring the expenditure for the cell phone was reduced from Rs.750 to 625 per month.

SI.

No Name of the

Municipal CouncilName of the

District Para No

Actual Amount paid Rs.

Amount Eligible

Rs.

Excess amount

Rs.

1 Chilakaluripeta Guntur 40 89244 46250 42994

2 Anakapalli Visakapatnam 33 144579 94818 49761

3 Yemmiganur Kurnool 25 13663 5000 8663

Total 247486 146068 101418


The cannons of financial propriety envisaged in Andhra Pradesh Financial Code are sacrosanct for all Government Authorities entrusted with authorising 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 expenditures that were avoidable, extraordinary and lacked proper planning.

Consolidated statement of Wasteful Expenditure incurred is annexed to the Report

Statement No. 4 (3) 2 from which it could be seen that an amount Rs.61.65 pointed out as Wasteful Expenditure. Some such 40 cases pointed out in Audit Reports classified according to the type of their wastage are illustrated here under.

23

14.1 PUBLICATION OF DEVELOPMENTAL ACTIVITIES ETC., IN DAILY NEWS PAPERS EXTRAORDINARY AND WASTEFUL EXPENDITURE.

Government have reviewed the policy of decentralization and orders were issued

in Go. Ms. No 37 GA (I&PR) Dept. Dt.22-1-94 to issue public advertisements on implementation of public policies only by Commissioner I & PR or District Collector in the districts. Further in GM. No.5263/Pts-IV/A/05 Dated 16-4-2005 of PR dept. Government issued instructions to all the departments in GM.No.96929/I&PR/A1/2003-1 Dated 12-9-2003 to issue suitable instructions to all HODs to release advertisements of press publicity through the medium of I & PR dept alone and the payments to be made after obtaining certification of the bills by the I &PR dept.

Contrary to the instructions of the Government in the above orders of the

Government expenditure was incurred for publishing Festival greetings, New year greetings, welcome greetings etc., which was not at all permissible. In the case of authorized advertisements the expenditure was incurred without the certification by the I & PR dept. resulting in non observance of the policy of rotation among big, small and medium newspapers and without regard to the circulation and reach in disseminating information of policies of the Government. The expenditure incurred on publishing the developmental activities and greetings etc., constitute wasteful expenditure and the same was noticed in the following institutions as detailed.

MUNICIPAL COUNCILS

Sl. No.

Name of the Municipal

Council District Purpose of

Expenditure

Amount Spent.

Rs.

Para No.

1 Bhongir Nalgonda Publication of developmental activities

54342 12(a)

2 Anankapalli Vishakapatnam -do- 24898 32

3 Korutla Karimanagar Publication of welcome greetings 385738 -

TOTAL 464978 3

24

14.2 MUNICIPAL COUNCIL, BHONGIR - PAYMENT OF CAR HIRE CHARGES ENGAGED BY STAFF FOR MISCELLANEOUS WORK – IRREGULAR AND AVOIDABLE EXPENDITURE – Rs.30,750/-

During the year 2007-08 an amount of Rs.30,750/- was drawn through the vouchers noted below towards car hire charges for miscellaneous Office work or other by the staff members instead of going by eligible conveyance which is burdensome to the Municipality.

[

In view of the above reasons the amount thus drawn Rs.30,750/- is held under objection, as it is an avoidable and unnecessary expenditure. Statement showing payments of car hire charges

S. No. Vr.No & Date Name of the Payee Amount

Rs. Purpose

1 322/8.10.07 R.Naga Raju 4800 Office work 2 4/10.4.07 K.Ramulu 3500 Office meeting 3 69/3.5.07 P.Satish 1350 Meeting at Nalgonda 4 85/9.5.07 P.Satish 1350 -do-

5 255/13.7.07 J.Balagoud 1750 RDMA meeting at Warangal

6 904/30.1.08 Laxmi Ganesh Traders 1000 Office work

7 903/30.1.08 -do- 1000 -do-

8 315/25.7.07 Md.Akbar Pasha 1000 Court cases at Hyderabad

9 314/25.7.07 -do- 1000 Secretariat, Hyderabad 10 259/13.7.07 D.Yadagiri 1000 Prajapatham 11 258/13.7.07 Md.Mannan 1000 -do- 12 205/19.6.07 P.Satish 1000 DMA meeting at Hyd 13 201/19.6.07 -do- 1000 -do-

14 466/24.1.08 Laxmi Ganesh Traders 1000 610 G.O

15 469/24.1.08 -do- 1000 DRDA meeting at Nalgonda

16 122/16.5.07 P.Satish 1000 Office work

17 63/3.5.07 -do- 1000 -do-

18 749/27.12.07 Laxmi Ganesh Traders 1000 -do-

25

19 750/27.12.07 -do- 1000 -do-

20 752/27.12.07 -do- 1000 CRP Ladies training

21 753/27.12.07 -do- 1000 -do-

22 353/10.8.07 R.Naga Raju 1000 RDMA meeting at Hyd

23 355/10.8.07 -do- 1000 -do- TOTAL 30750

(Para No. 12 of the Audit Report of Municipal Council, Bhongir)

15. INSTANCES OF CASES UN-ACCOUNTED CASH / STORES

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 Statement No. 4 (3) 3 is appended to the Report from which it can be noticed that 8 Paras pointing out to Rs. 2.68 Lakhs were raised during the year.


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) 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 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. Such cases are reported in the Audit Reports of Municipal Councils is shown in the statement appended herewith.

In audit for the year 2007-08 it was pointed that 21 UCs were pending as

shown in the Annexure 4 (3) 3 appended to this report.

26


In accordance with the provision of the State Audit Act, 1989 and Rules issued there under, the audit of local authorities i.e., Zilla Parishads, Mandal Parishads, Gram Panchayats, 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 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.

After issue of Surcharge Certificate, the course of the action available to the Surchargee is either to remit the surcharged amount within 60 days after the date of service on him of the surcharge certificate or to appeal to Government against the Surcharge Certificate.

If the surcharge does not appeal against the Surcharge Certificate issued

and also fails to remit the surcharged amount, copies of all surcharge certificates on which no actions 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 arrears of land revenue.

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. Consolidated statement of cases of Surcharge Certificates Recovery pending in Statement No. 4(3) 3 is appended to the report from which it can be noticed that 1 Surcharge Certificate involving an amount of Rs. 71.77 lakhs is pending recovery.

18. OTHERS

Other objections which were not fallen in the above categories are incorporated under this category. Such objections numbering 667 were raised for an amount of Rs.517.49 lakhs as detailed in Statement No. 4(3) 3.

27

19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES ETC., 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 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. 2.17 lakhs were pointed out

in the audit for the year 2007-08 is appended as Annexure 4 (3) 3.

HYDERABAD DIRECTOR DATE STATE AUDIT,

A.P., HYDERABAD.

28

SECTION - II

ACCOUNT STATEMENTS OF MUNICIPALITIES

T

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF MUNICIPALITIES FOR THE YEAR 2007-08

Sl.No



AUDIT COMPLETED AS

ON 31-3-2009


ARREARS CURRENT ARREARS CURREN ARREARS CURRENT

1 Adilabad 0 7 0 7 0 0

2 Ananthapur 38 7 7 0 31 7

3 Chittoor 5 7 1 2 4 5


5 Guntur 0 11 0 4 0 7

6 Kadapa 39 6 1 0 38 6

7 Karimnagar 2 5 2 3 0 2

8 Khammam 1 7 1 6 0 1

9 Krishna 12 5 4 0 8 5

10 Kurnool 29 4 0 4 29 0


12 Medak 5 5 3 5 2 0

13 Nalgonda 9 4 0 4 9 0

14 Nellore 31 3 2 0 29 3

15 Nizamabad 0 3 0 3 0 0

16 Prakasam 0 4 0 3 0 1

17 Ranga Reddy 0 2 0 2 0 0

18 Srikakulam 0 5 0 5 0 0



21 Warangal 1 1 0 0 1 1


TOTAL: 201 110 26 54 175 56

29

SL No.

NAME OF THE DISTRICT RECEIPTS EXPENDITURE

1 Adilabad 1797.78 1662.49

2 Ananthapur 2869.91 1932.78

3 Chittoor 2609.19 2224.13

4 East Godavari 3182.43 2699.22

5 Guntur 2534.34 1792.42

6 Kadapa 113.54 120.47

7 Karimnagar 650.81 580.92

8 Khammam 1529.88 1262.92

9 Krishna 0.00 0.00

10 Kurnool 2998.67 2904.47


12 Medak 1976.91 1463.46

13 Nalgonda 1712.03 1913.06

14 Nellore 0.00 0.00

15 Nizamabad 0.00 0.00

16 Prakasam 2738.85 3000.06

17 Ranga Reddy 0.00 0.00

18 Srikakulam 2759.22 2639.47


20 Vizianagaram 2588.25 2431.45

21 Warangal 0.00 0.00

22 West Godavari 1719.94 1775.89

TOTAL: 34281.67 31084.47

STATEMENT No. 2 (1)

STATEMENT OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF DISTRICT WISE MUNICIPALITIES FOR THE YEAR 2007-08

Rs. In lakhs

30

Rs. In lakhs




TOTAL: 21921.82 18517.39 1305.89 1627.52 3068.18 3097.05 2991.43 2350.41 818.52 320.33

General fund Lighting fund Water supply & Drainage fundSl

No.NAME OF THE

DISTRICT

STATEMENT 2 (2) 1 CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND EXPENDITURE OF MUNICIPALITIES


Education fund Town Planning

Page 31

Rs. In lakhs




TOTAL: 2438.04 2930.92 605.95 855.15 876.19 1089.76 255.65 295.94 34281.67 31084.47

STATEMENT 2 (2) 2 CONSOLIDATED STATEMENT OFFUND WISE RECEIPTS AND EXPENDITURE OF MUNICIPALITIES


Grand TotalProvident fundDeposit fund Advances fund Pension fundSL No.

NAME OF THE

DISTRICT

Page 32


1 Adilabad 910.78 1120.85

2 Ananthapur 365.57 350.29

3 Chittoor 585.72 596.37


5 Guntur 263.74 261.55

6 Kadapa 138.66 105.32

7 Karimnagar 218.27 210.06

8 Khammam 630.63 706.25

9 Krishna 0.00 0.00

10 Kurnool 2955.63 2822.69


12 Medak 365.44 319.35

13 Nalgonda 506.22 594.53

14 Nellore 0.00 0.00

15 Nizamabad 0.00 0.00

16 Prakasam 382.61 304.28

17 Ranga Reddy 0.00 0.00

18 Srikakulam 1295.76 2034.61


20 Vizianagaram 1399.14 1332.87

21 Warangal 0.00 0.00

22 West Godavari 525.13 429.70

TOTAL: 12885.46 13707.24

STATEMENT No. 3 (1)

CONSOLIDATED STATEMENT OF GOVERNMENT GRANTS SANCTIONED AND EXPENDITURE INCURRED FOR THE YEAR 2007-08

Rs. In lakhs

33

Rs. In lakhs

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments1 Adilabad 0.00 0.00 88.57 4.61 0.00 0.00 71.73 48.12 0.00 0.00 118.37 25.44 110.75 454.032 Ananthapur 236.14 239.68 8.98 15.07 14.47 0.00 3.33 50.96 0.00 0.00 0.00 0.00 35.76 0.003 Chittoor 371.97 343.05 70.54 54.81 0.00 23.85 2.89 33.83 0.00 0.00 0.00 0.00 114.78 117.504 East Godavari 483.10 504.58 52.29 105.49 60.90 51.80 155.34 89.82 0.00 0.00 0.51 3.90 5.72 57.935 Guntur 28.57 29.41 22.24 24.18 0.00 0.00 43.85 53.90 1.95 0.00 0.00 0.00 7.04 0.726 Kadapa 0.00 0.00 13.91 2.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32.35 43.897 Karimnagar 0.00 0.00 15.06 7.96 5.01 0.19 32.43 11.18 0.00 0.00 0.00 0.00 18.70 16.528 Khammam 0.00 0.00 65.45 47.84 8.10 12.86 0.00 0.00 0.00 0.00 0.00 0.00 11.71 42.779 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


TOTAL: 3963.16 3745.92 661.48 496.96 89.30 104.87 699.02 536.10 191.63 198.57 118.95 32.61 680.57 1442.09

SJSRY GrantSl No.


Teaching grantEnvironments improvement

grant

Integrated development of

small towns grantWomen welfare Slum improvement Drought relief

flood relief grant

CONSOLIDATED STATEMENT OF GRANTS RECEIPTS & PAYMENTS FUND WISE IN MUNICIPATIES FOR THE YEAR 2007-08 STATEMENT 3(2) 1

Page 34

Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments1 Adilabad 0.00 0.00 0.00 1.31 0.00 0.00 0.00 0.00 26.95 16.96 197.20 196.812 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.62 32.58 0.00 0.003 Chittoor 0.41 0.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 East Godavari 25.82 64.77 0.00 0.00 0.00 0.00 0.00 0.00 10.76 16.55 0.00 0.005 Guntur 0.35 1.57 0.00 0.00 0.00 0.00 0.00 0.00 1.99 3.26 33.98 25.706 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.007 Karimnagar 0.07 0.00 145.66 146.06 0.00 0.00 0.00 0.00 0.11 0.50 0.00 0.008 Khammam 0.23 0.00 0.02 0.00 0.00 0.00 0.33 0.33 0.41 0.00 0.01 0.009 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0010 Kurnool 0.14 0.14 0.10 0.00 0.00 0.00 0.00 0.00 36.32 44.32 2.28 23.9911 Mahaboobnagar 0.24 0.04 0.00 0.00 279.51 392.59 157.16 152.00 29.67 29.67 0.05 3.3412 Medak 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22.05 26.89 0.00 0.0013 Nalgonda 0.00 0.00 40.04 31.39 0.00 0.00 0.00 0.00 5.23 2.67 112.26 196.1814 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0015 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0016 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0017 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0018 Srikakulam 0.75 1.00 0.00 0.00 0.09 0.00 0.00 0.00 32.10 20.46 134.95 317.2119 Visakhapatnam 5.49 0.57 0.00 0.00 2.85 6.28 0.00 0.00 0.02 0.09 0.00 0.0020 Vizianagaram 1.16 27.84 0.00 45.97 0.00 0.00 0.00 0.00 29.10 29.10 382.10 204.7121 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0022 West Godavari 16.53 8.43 0.00 0.00 0.00 0.00 0.00 0.00 2.26 2.21 0.00 0.00

TOTAL: 51.24 105.14 185.82 224.73 282.45 398.87 157.49 152.33 222.59 225.26 862.83 967.94

Low cost sanitation Master Plan grantSl

No.Name Of The

District

Urban poverty alleviation grant

Shelter upgradation from housing

corporation grant

Assembly parliament constituency

development grant

Urban services poor grant

CONSOLIDATED STATEMENT OF GRANTS RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR 2007-08 STATEMENT 3(2) 2

Page 35



TOTAL: 327.05 450.02 125.63 182.63 186.70 243.60 123.80 108.03 866.22 775.61 451.95 497.29 12.93 22.07

NSDP grant Parks & Play grounds grant C.M Special grant Special component

(SC) grant

Rs. In lakhsCONSOLIDATED STATEMENT OF GRANTS RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR 2007-08

STATEMENT 3(2) 3

Sl No.


Tribal sub plan (ST) grant

Development ofSatelite town

grant

Decentralisation grant

Page 36



TOTAL: 49.74 30.00 1698.84 1770.21 0.97 3.08 870.27 954.16 0.00 0.00 4.83 39.15 12885.46 13707.24

E-seva centres grant

Old age pension grant Grand Total Balika Sumrudhi

Yojana grantUrban service project grant

Eco conservation grant

Mega city project grant

Rs. In lakhsCONSOLIDATED STATEMENT OF GRANTS RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR 2007-08

STATEMENT 3(2) 4

Sl No.


Page 37

STATEMENT 4(1)

STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2007-08

Rs. In lakhs.Sl. No.

NAME OF THE DISTRICT No. AMOUNT

1 Adilabad 101 459.03

2 Ananthapur 416 682.02

3 Chittoor 224 2515.96

4 East Godavari 521 890.04

5 Guntur 169 186.36

6 Kadapa 42 61.75

7 Karimnagar 102 68.53

8 Khammam 185 497.59

9 Krishna 0 0.00

10 Kurnool 1138 6013.66

11 Mahaboobnagar 154 294.45

12 Medak 184 1272.66

13 Nalgonda 153 633.23

14 Nellore 0 0.00

15 Nizamabad 0 0.00

16 Prakasam 541 1433.92

17 Ranga Reddy 0 0.00

18 Srikakulam 563 933.66

19 Visakhapatnam 127 325.74

20 Vizianagaram 277 266.05

21 Warangal 0 0.00

22 West Godavari 141 175.39

TOTAL 5038 16710.04

38

Sl. No. NAME OF THE CATEGORY No. AMOUNT

1 Variation in Account Figures 57 25.57

2 Excess Utilisation of Grants / Funds 24 19.43

3 Diversion of Grants / Funds 47 141.30

4 Non-utilisation of grants before the lapsable date 23 15.85

5 Mis-utilisation of Grants / Funds 12 5.14

6 Non- utilisation of Earmarked Funds 33 138.44

7 Non-collection of dues 288 1754.66

8 Advances pending adjsutemnt 138 234.08

9 Violation of Rules 799 1030.02

10 Non-remittance deductions made from Work bills / Pay bills / Contingent Bills etc. 308 558.5293

11 Non Production of Records 2215 11963.08

12 Mis-appropriations 72 120.35

13 Excess Payments 283 47.83

14 Wasteful Expenditure 40 61.65

15 Instances of cases of unaccounted for cash / stores 8 2.68

16 Pendency of Utilisation Certificates 21 0.00

17 Surcharges Certificates- Recovery Pending 1 71.77

18 Others 667 517.49

19 D.D. Cheques received but not realised with in time 2 2.17

Total: 5038 16710.04

STATEMENT No. 4 (2)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs.

39

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 0.002 Ananthapur 6 0.00 4 0.00 3 0.09 1 0.00 0 0.00 2 0.003 Chittoor 3 0.09 0 0.00 0 0.00 0 0.00 0 0.00 0 0.004 East Godavari 6 11.22 4 1.56 11 27.88 2 0.00 0 0.00 0 0.005 Guntur 1 0.00 1 0.00 0 0.00 0 0.00 0 0.00 0 0.006 Kadapa 4 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.007 Karimnagar 0 0.00 0 0.00 0 0.00 1 0.00 1 0.07 2 0.008 Khammam 2 2.52 1 0.00 2 2.10 7 1.49 0 0.00 4 0.009 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 4 7.76 0 0.00 6 0.00 2 0.00 6 1.76 2 0.0011 Mahaboobnagar 0 0.00 5 17.87 0 0.00 0 0.00 0 0.00 5 2.4812 Medak 3 3.18 2 0.00 4 27.83 0 0.00 0 0.00 1 54.8013 Nalgonda 1 0.00 0 0.00 4 32.76 2 0.00 2 1.50 0 0.0014 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0015 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0016 Prakasam 4 0.00 4 0.00 11 31.76 0 0.00 0 0.00 3 0.0017 Ranga Reddy 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0018 Srikakulam 7 0.68 0 0.00 4 7.75 6 14.28 0 0.00 0 0.0019 Visakhapatnam 1 0.00 0 0.00 1 11.13 1 0.00 1 1.81 11 81.1620 Vizianagaram 6 0.00 1 0.00 0 0.00 1 0.08 1 0.00 2 0.0021 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0022 West Godavari 9 0.12 2 0.00 1 0.00 0 0.00 1 0.00 0 0.00

TOTAL 57 25.57 24 19.43 47 141.296 23 15.85 12 5.14 33 138.44

NON-UTILISATION OF

EARMARKED FUNDS

Rs. In lakhs.

Sl. No.


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

STATEMENT 4(3) 1STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2007-08 4 (3)

Page 40

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 4 5.75 4 2.79 24 40.84 7 43.72 35 185.65 2 1.562 Ananthapur 34 99.24 6 2.62 60 2.47 11 12.24 238 550.41 3 0.383 Chittoor 12 842.62 17 30.74 17 19.96 20 44.64 113 1575.43 0 0.004 East Godavari 22 15.49 14 12.46 111 28.94 36 26.32 201 751.23 9 4.585 Guntur 6 0.15 1 0.00 16 3.16 14 11.69 93 170.35 0 0.006 Kadapa 1 0.03 1 0.12 6 0.42 1 0.50 27 60.68 0 0.007 Karimnagar 3 1.16 3 0.23 38 20.85 11 36.08 27 4.87 5 0.478 Khammam 18 135.42 8 8.50 20 29.13 33 50.75 43 255.60 3 0.389 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0010 Kurnool 89 22.28 26 87.58 62 160.66 42 38.29 637 5341.26 18 26.8611 Mahaboobnagar 5 2.39 26 49.60 8 5.09 5 2.53 67 173.88 6 2.9012 Medak 6 64.89 3 4.11 52 466.00 15 39.95 49 560.19 14 34.1313 Nalgonda 16 190.06 5 1.47 37 140.09 28 37.06 32 207.37 2 0.8814 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0015 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0016 Prakasam 19 5.27 8 20.15 124 46.51 33 42.46 237 1198.44 5 46.8017 Ranga Reddy 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0018 Srikakulam 18 325.35 6 1.65 111 0.69 17 73.58 205 488.71 0 0.0019 Visakhapatnam 5 1.24 1 3.12 12 0.98 14 68.13 56 156.14 0 0.0020 Vizianagaram 16 2.57 8 8.91 46 33.66 19 19.45 122 191.84 5 1.4121 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0022 West Godavari 14 40.75 1 0.03 55 30.57 2 11.14 33 91.03 0 0.00

TOTAL 288 1754.66 138 234.08 799 1030.02 308 558.5293 2215 11963.08 72 120.35

Rs. In lakhs.

ADVANCES PENDING

ADJUSTMENT

VIOLATION OF RULES

NON REMITTANCE OF DEDUCTION FROM WORK BILLS/PAY

BILLS/CONTINGENT BILLS ETC.

NON-PRODUCTION OF RECORDS

MIS-APPROPRIATIONS

NON-COLLECTION OF DUESSl.

No.NAME OF THE

DISTRICT

STATEMENT 4(3) 2STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2007-08 4 (4)

Page 41

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Adilabad 2 2.28 0 0.00 0 0.00 0 0.00 0 0.00 22 176.44 0 0.00 101 459.032 Ananthapur 6 0.47 2 0.12 0 0.00 2 0.00 0 0.00 38 13.98 0 0.00 416 682.023 Chittoor 24 1.80 7 0.68 0 0.00 2 0.00 0 0.00 9 0.00 0 0.00 224 2515.964 East Godavari 35 4.60 4 1.43 0 0.00 0 0.00 0 0.00 66 4.33 0 0.00 521 890.045 Guntur 17 1.01 0 0.00 0 0.00 0 0.00 0 0.00 20 0.00 0 0.00 169 186.366 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 0.00 0 0.00 42 61.757 Karimnagar 0 0.00 1 3.85 0 0.00 0 0.00 0 0.00 10 0.95 0 0.00 102 68.538 Khammam 9 1.03 2 6.41 0 0.00 4 0.00 0 0.00 27 2.09 2 2.17 185 497.599 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 99 7.98 1 0.03 5 0.04 1 0.00 1 71.77 137 247.39 0 0.00 1138 6013.6611 Mahaboobnag 13 1.27 1 0.09 0 0.00 0 0.00 0 0.00 13 36.35 0 0.00 154 294.4512 Medak 21 13.21 1 3.54 0 0.00 1 0.00 0 0.00 12 0.83 0 0.00 184 1272.6613 Nalgonda 4 5.76 4 5.76 1 2.38 1 0.00 0 0.00 14 8.14 0 0.00 153 633.2314 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0015 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0016 Prakasam 17 0.42 5 33.22 0 0.00 4 0.00 0 0.00 67 8.89 0 0.00 541 1433.9217 Ranga Reddy 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0018 Srikakulam 4 1.66 4 3.12 0 0.00 3 0.00 0 0.00 178 16.19 0 0.00 563 933.6619 Visakhapatnam 10 1.78 1 0.25 0 0.00 1 0.00 0 0.00 12 0.00 0 0.00 127 325.7420 Vizianagaram 20 4.24 6 1.88 2 0.26 1 0.00 0 0.00 21 1.75 0 0.00 277 266.0521 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0022 West Godavar 2 0.32 1 1.27 0 0.00 1 0.00 0 0.00 19 0.16 0 0.00 141 175.39

TOTAL 283 47.83 40 61.65 8 2.68 21 0 1 71.77 667 517.49 2 2.17 5038 16710.04

Total

STATEMENT 4(3) 3STATEMENT SHOWING THE CATEGORY WISE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2007-08 4 (5)

Rs. In lakhs.

OTHERS

CHEQUES RECEIVED BUT NOT

REALISED WITH IN TIME

SURCHARGES CERTIFICATES - RECOVERY

PENDING

WASTEFUL EXPENDITUR

E

INSTANCES OF CASES OF

UNACCOUNTED FOR CASH /

STORES

PENDENCY OF

UTILISATION CERTIFICATES

EXCESS PAYMENTSSl.

No.

NAME OF THE

DISTRICT

Page 42

PART - III



CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF

AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2007‐08


CONTENTS

PART – III

SECTION - I


No.

I Preface ii

II Overview iii

III Introduction 1-6

IV A few Selected Audit Paras – Category wise 7-36

SECTION - II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2007-08 OF

AGRICULTURAL MARKET COMMITTEES

PAGE No.

1. Status of Audit of AMC (District wise). 37

2. 1. Receipts and Payments of AMC (District wise). 38

2. Receipts and Payments of AMC with break up (Receipts Heads).

39

3. Receipts and Payments of AMC with break up (Payments Heads).

40

3. 1. Audit Objections raised in AMC for the year 2007-08(Dist. wise)

41

2. Consolidated Category Wise Audit Objections 42

3.1. Consolidated Dist and Category Wise Audit Objections

43


44


45

i

PREFACE 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 Agriculture Market Committees, which he was doing earlier also as per Government orders.

The Director, State Audit conducts post audit of all AMCs 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 Agricultural Market Committees are being approved by the

Dist. Audit Officers (DAO) and Surcharge Certificates are being issued by the Regional Deputy Directors (RDD).

Institution wise audit reports containing various audit objections are issued to the

Executive Authorities of the concerned AMCs 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 2007-08 and also the arrears were audited by the Director of State Audit during the year 2008-09 is submitted.

ii

OVER VIEW During the year under report, the Director could audit the Current audit of 310+1 arrears Agricultural Market Committees out of 310+3 arrear audit of Agricultural Market Committees. AUDITED AMOUNTS:

The total Receipts and Payments of all the Agricultural Market Committees put together for the year 2007-08 were Rs.440.03 Crores and Rs. 376.53 Crores respectively.

AUDIT OBJECTIONS: Various irregularities noticed in audit are broadly classified into 19 categories as detailed below:

1. Variation in Account Figures 2. Excess utilisation of Grants / Funds 3. Diversion of Grants / Funds 4. Non-Utilization of grants before lapsable date. 5. Mis-utilisation of Grants / Funds 6. Non-utilisation of Ear-marked funds. 7. Non-collection of dues 8. Advances Pending Adjustment 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. D.D./Cheques /Bankers cheques etc., received but not realized within

the time.

A total number of 7667 audit objections involving an amount of Rs. 143.14 Crores were raised during the year. The category wise and Agricultural Market Committee wise number of audit objections during the year are shown in Statements from 3 (1) to 3 (3) appended to the report.

On receipt of replies to the defects pointed out in the earlier reports supported by relevant records / documents, the audit objections were settled wherever replies were satisfactory. The Assistant Audit Officer, District Audit officer and Regional Deputy Director are authorized to attend the settlement of audit objections. The audit report contains the details about number of audit objections pending settlement at the close of the audit. It could be observed that t the No. of audit objections pending settlement by the end of financial year 2008-09 is 33556 involving an amount of Rs. 674.26 Crores. The audit paras selected for inclusion in the Consolidated Audit and Review Report give a glimpse of financial administration in the Agricultural Market Committees. For details, individual audit reports are to be referred.

iii

SECTION - I

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF AGRICULTURAL MARKET

COMMITTEES FOR THE YEAR 2007-08

SECTION – I

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 Agricultural Market Committees in the State of Andhra Pradesh. The Number of Agricultural Market Committees in the State are 310 for the year 2007-08.

1.2 The Department has got offices in all the districts, the District Audit Officer, State

Audit being the head at the district level. 1.3 The Department conducts post audit of the Agricultural Market Committees and

Audit Reports consisting of defects noticed in audit are issued to the Secretary of the Agricultural Market Committee 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

2.1 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 Agricultural Market Committees.

Whether the Market, License fees and other amounts like leases / rents collected etc., by the Agricultural Market Committees were properly accounted for with full details in the books of accounts of the Agricultural Market Committee concerned. Whether adequate care is taken in periodical checking up of the funds with Treasury or Bank.

1

Whether expenditure incurred is provided for in the Budget of the Agricultural Market Committee 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. 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 Agricultural Market Committee. Whether vouchers for the expenditure incurred were maintained.


STATUS OF AUDIT

3.1 The current audit of 310 Agricultural Market Committees out of 310 Agricultural Market Committees for the year 2007-08 was conducted in the year leaving no balance of current audit of Agricultural Market Committees.

3.2 The Department has conducted the audit of the receipts amounting to

Rs. 44003.51 lakhs and payments of Rs. 37652.61 lakhs as detailed in the Statements No. 2 (2) to 2 (3) with Agricultural Market Committee wise break up.

3.3 The Pie chart of propositional Percentages of Receipts and Payments of

Agricultural Market Committees during the year 2007-08 is placed below.

2

PIE CHART OF RECIEPTS OF AMCS FOR 2007-08

66%

0%

0%

1%

0%

0%

6%

3%

7%

4%

13%

MARKET FEES

LICENSE FEES

LATE FEE

PROPERTY RENTALFEES

INTEREST ONINVESTMENT

AUCTIONS

INCOME FROMMISCELLANEOUSSOURCESDEPOSITS

LOAN

ADVANCES

GRANT IN AID

3

PIE CHART PAYMENTS OF AMCS FOR 2007-08

17%

15%

0%

0%12%

1%15%

3%

10%

4%

3%

20%

1 SALARIES

2 OTHER ADMNEXPENDITURE

3 LAW CHARGES

4 ACQISITION OFPROPERTIES

5 DEVELOPMENTWORKS

6 FURNITURE ANDVEHICLES ETC

7 10% CONTRIBUTIONTO CENTRALMARKETING FUND8 REPAYMENT OFLOANS

9 OTHERS

10 ADVANCES

11 DEPOSITS

12 OTHERS

TREND OF RECEIPTS AND PAYMENTS OF AMCs

The receipts and payments of Agricultural Market Committees over 2006-07 and 2007-08 is as follows.

4

TREND OF RECIEPTS AND PAYMENTS OF AMCS

3931834479

44004

37652.62

RECIEPTS PAYMENTS

2006-072007-08

AUDIT OBJECTIONS

4.1 During the course of audit of these Agricultural Market Committees for the year 2007-08 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 7667 audit objections involving an amount of Rs.14314.33

lakhs were raised in the audit of the Agricultural Market Committees during the year under report.

4.3 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)]

4.4 Gist of some of the selected audit objections pertaining to the year under report is enumerated below:

5


Rs. In lakhs.

Sl. No. Name of the Category No. of

Paras Amount %

1 Violation of Rules 1477 3455.29 24.25

2 Non-collection of dues 1038 3233.02 22.69

3 Non Production of Records 2159 3016.61 21.17

4 Advances pending adjustment 456 1894.32 13.22

5 Others 919 876.90 6.15

6 Excess Utilization of Grants / Funds 192 657.51 4.61

7 Non-remittance of deduction recoveries from

work bills/pay bills/contingent bills, etc., 640 475.76

3.34

8 Diversion of Grants / Funds 78 258.42 1.81

9 Variation in Account Figures 140 142.55 1.0

10 Excess Payments 292 120.35 0.84

11 Mis-utilization of Grants / Funds 75 60.11 0.42

12 Mis-appropriations 90 35.43 0.25

13 Wasteful Expenditure 29 13.97 0.10

14 Instances of cases of unaccounted for cash

/stores 14 6.00

0.04

15 Pendency of Utilization Certificates 9 3.13 0.02

16 Surcharge Certificates-Recovery pending 55 64.84 0.00

17 D.D/Cheques received but not realized within

time 1 0.12

0.00

18 Non-Utilization of grant before lapsable date 2 0.00 0.00

19 Non-Utilization of Earmarked Funds 1 0.00 0.00

Total: 7667 14314.33 100

Major part of objections is on Violation of rules constitutes 24.25% followed by Non collection of dues which constituted 22.69%. Non Collection of dues is also significant at 22.69% of objections which means Agricultural Market Committee administration is not vigilant enough in collecting dues.

6

AUDIT PARAS

1. VARIATION IN ACCOUNT FIGURES

It was observed in audit that there are certain variations between the Account Figures of treasury and cash book like pending 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 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. 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 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. 3 (3) 1 of Variation in account figures is appended to the Report from which it could be seen that variation in account figures of Rs.142.55was pointed out in 140 audit paras.

1.1. AGRICULTURAL MARKETING COMMITTEE, ALAIR,

NALGONDA DISTRICT - VARIATION IN ACCOUNTS – NEEDS RECONCILIATION AND RECTIFICATION – Rs.86,750/-

On verification of S.T.O. pass book it was observed that the closing balance as on

31-07-2007 was Rs.25,89,210-00 but the Opening Balance was taken as Rs.25,02,460-00 as on 01-08-2007 . The difference amount of Rs.86,750-00 would need to be reconciled. (Para No. 4 (a) of the Audit Report on the accounts of Agricultural Marketing Committee, Alair , Nalgonda District)

1.2. AGRICULTURAL MARKETING COMMITTEE, VALIGONDA,

NALGONDA DISTRICT - VARIATION IN BALANCES OF CASH BOOK AND TREASURY PASSBOOK

As verified from Cash Book and Pass Book, an amount of Rs.28,473/- was

found as difference between cash book and STO Pass Book. As per cash book the balance was Rs.47,705-00 and as per the pass book it was Rs.19,232-00. The variation would need to be rectified. (Para No. 4 (a) of the Audit Report on the accounts of Agricultural Marketing Committee, Veligonda, Nalgonda District)

7

1.3 AGRICULTURAL MARKETING COMMITTEE , VEMULAWADA, KARIMNAGAR DISTRICT - DIFFERENCE IN THE PASS BOOK AND CASH BOOK BALANCE

On verification of Cash Book and Pass Book it was noticed that there was a

difference of Rs.2,99,307-00 between the balances of Treasury Pass Book and Cash book.

Rs. Closing Balance as per Treasury Pass Book 85,96,356

Closing Balance as per Cash Book 82,97,049 2,99,307

(Para No .5 of the Audit Report on the accounts of Agricultural Marketing Committee, Vemulawada , Karimnagar District)


The state Government releases grant-in-aid to Local Bodies to meet expenditure

on contingency items like T.A., stationery, honorarium to elected representatives etc. It was noticed during the audit that the executive authorities of Local Bodies and institutions 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 is appended to the Report from which it could be seen that an amount of Rs.657.51 was pointed out in 192 audit paras.

2.1. AGRICULTURAL MARKET COMMITTEE - HINDUPURAM,

ANANTHAPUR DISTRICT - PROVIDENT FUND – AMOUNT TRANSFERRED FROM THE EMPLOYEES PROVIDENT FUND ACCOUNT BY THE INCOME TAX AUTHORITIES – 1, 65,000-00 An amount of 1,65,000-00 was transferred from the employees provident fund

account by the income tax authorities without notice of the Agricultural Market Committee authorities towards Income Tax Payable by the Market Committee which is irregular.As the amount lodged in the account was the savings made by the employees which need to be invested in commercial bank for temporary and part –final with drawals whenever requisitioned by the employees as per the rules in force. . Early action would need to be taken to get the amount returned to employees provident fund account. (Para No. 6 of A. r on the a/cs of A. M. C., Hindupuram, Anantapur District)

8

3. DIVERSION OF GRANTS /FUNDS.

The Agricultural Market Committees are provided with funds by way of Grants or prescribed share in taxes or fees collected by the Agricultural Market Committees. The specific grant has to be utilized for the specific purpose for which the grant 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. 3 (3) 1 of Diversion of grants/funds of dues is

appended to the Report for Rs.258.42 was pointed out in 78 audit paras.

4. NON-UITLIZATION OF GRANTS BEFORE THE LAPSABLE DATE

Government released special grants to the Agricultural Market Committees for

implementing specific schemes. These grants are to be utilized for the purposes for which they are ment for, otherwise, the grants will lapse to the government, unless the lapsable date of any particular grant is extended by Government or Grant releasing authority.

A Consolidated Statement No. 3(3) 1 of Non-Utilisation of Grants before the

lapsable date is appended to the Report in which 2 objections were raised.

5. MIS-UTILIZATION OF GRANTS/FUNDS.

Many cases of Mis-Utilization of grants/funds were noticed in audit. A Consolidated Statement No. 3 (3) 1 of Mis-Utilisation of Grants / Funds is

appended to the Report for Rs.60.11 was pointed out in 75 audit paras.

6. NON-UTILIZATION OF EARMARKED FUNDS

It is observed in audit that in may 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 AMC. The unspent balances were also not remitted to the respective corporation in many cases.

A Consolidated Statement No. 3 (3) 1 of Non-Utilisation of Earmarked Funds is

appended in which to 1 Audit Para raised.

9

7. NON-COLLECTION / SHORT COLLECTION OF DUES

The main source of income of Agricultural Market Committee up to 90% is mainly derived from the Market fee only. The remaining receipts are from the license fees, interest on short term loans and fixed deposits, leases, rents on godowns etc. In the case of following Agricultural Market Committees, an amount of 168.46 Lakhs was due to be collected towards Market fees, leases, Rents etc., at the end of the year as detailed below. The Executive Authorities have failed to realize the said dues and allowed them to fall into arrea 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 fees and other fees levied under Sub-Section (i) of Section 12 of Andhra Pradesh (Agricultural Produce) Markets Act 1966 may have to be recovered in the same manner as arrears of land revenue.

A Consolidated Statement No. 3 (3) 1 of Non-Collection of dues is appended to

the Report for Rs.3233.02 was pointed out in 1038. audit paras. A few of such cases are detailed below. 7.1 Non-Collection / Short Collection of Revenue – 168.46 lakhs

( Rs.In Lakhs) Sl. No. Name of the A.M.C & District

Details of Revenue not collected/short

collected Para No.

Amount Due

01 Nellore, Nellore Dist Rents 9 69.10

02 Vijayawada, Krishna Dist Market fee 7 7.14

03 Bheemavaram, W.G. Dist Market fee 6 36.25

04 Medak, Medak Dist Shop and Godown Rents 13 26.77

05 Anakapalli, Visakhapatnam Dist Shop and Godown Rents 9 29.20

Total 168.46 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 of misuse of advances to avoid refund of unspent amounts. Several objections were raised on such outstanding

10

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. 3(3) 2 of Advance Pending Adjustment is

appended to the Report for Rs.1894.32 was pointed out in 456 audit paras. A few such cases shown below.

8.1

Sl. No.

Name of the A.M.C. and District Purpose of Advance

Amount outstanding

(Rs.)

Para No.

1 Dharmawaram Ananthapoor

Pay Advance not got adjusted 1,500 6(a)

2 Manchiryala, Adilabad. Advances paid to repair 1,500 12

3 Thirupathi Chittoor. Tour Adv. 46,350 9

4 Proddatur, Kadapa

Transfer of AMC funds to other AMCs 1,200,000 03

5 Boath, Adilabad

Amount paid to Sarangapur AMC under loan basis needs reimbursed 2,500,000-00 03

8.2 AGRICULTURAL MARKET COMMITTEE, PRODDUTUR, KADAPA DISTRICT -

TRANSFER OF AMC FUNDS TO OTHER AMCs – NEEDS REIMBURSEMENT 12,00,000-00

An amount of 12,00,000/- was drawn and transferred to other Market

Committees as shown below without sanction of the Government which needs reimbursement.

S.No Vr No & Date Particulars Amount

(Rs.) 1. 29/ 10-5-2007 Tramnsferred to AMC , Rayachoty 5,00,0002. 65/ 8-6-2007 Transferred to AMC, Kamalapuram 5,00,0003. 200/ 17-9-2007 Transferred to AMC, Sidhout 2,00,000 Total: 12,00,000

(Para No. 3 of Audit report on the accounts of Agricultural Market Committee, Proddatur, Kadapa district)

11

8.3 AGRICULTURAL MARKET COMMITTEE, BOATH, ADILABAD DISTRICT - AMOUNT PAID TO A.M.C. SARANGAPUR UNDER LOAN BASIS – NEEDS REIMBURSED - 2500000/-

An amount of 2500000/-(Rupees Twenty five Lakhs only) was drawn and paid to A.M.C Sarangapur on loan.

As per proceedings JDM(W) Adb 353 Dt. 13-09-2007 of Joint Director of

Marketing, Warangal Loan of 2500000/- was sanctioned from AMC Funds of Boath for Development of Cotton Market yard under T.M.C works at Sarangapur A.M.C

(Para No. 3 of Audit report on the accounts of Agricultural Market Committee, Boath,,Adilabad District)


It was noticed in audit of the Agricultural Market Committees that in some cases the Rules, Government instructions for incurring the expenditure from the funds of the Agricultural Market Committees were violated either due to negligence or ignorance. Certain times, the funds of the Agricultural Market Committees were utilised for purposes other than the permitted ones under the Act / Rules. It was also noticed that in 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 on category of Violation of Rules is

appended to the Report for Rs.3455.29 was pointed out in 1477 audit paras. 9.1 PURCHASE –PURCHASE OF FURNITURE DURING BAN PERIOD -

IRREGULAR Government vide Circular Memo.No.5494-A/B1/TFR-I/2006 Dt:21-3-06 of

Finance (TFR-I/Department) have extended the ban on purchase of furniture for a further period of one year. During the course of audit it was observed that Agricultural Market Committees have purchased furniture deviating from the above instructions which is irregular.

Sl. No

Name of the A.M.C District Amount spent

Rs. Para No.

1 Vijayawada Krishana 118000 28 2 Kdadapa Kadapa 306431 22 3 Kurupam Vijayanagaram 15050 8

12

9.2 PAYMENT OF HOUSE BUILDING ADVANCE TO Smt. KUSUMA BAI NOT ELIGIBLE -NEEDS RECOVERY- 3,00,000/-

As per G.O.Ms.No.311Fin &Plg (F.W. A&L) Dept. Dt.6-11-1996 the individuals who have completed 8 years of regular service are eligible for the sanction of House Building Advance.But, contrary to the said instructions, an amount of 300000/- was drawn in voucher No.251, dated 29-3-2008 and paid to Smt Kusuma bai towards HBA for purchase of a House though she has not completed 8 years of required service which is irregular. (Para No.11 of A.R. on the accounts of AMC, Bhainsa, Adilabad Dist for 2007-08) 9.3 WORKS – EXECUTION OF WORKS – DEVIATION OF THE PLAN

ESTIMATES & AGREEMENT – NOT APPROVED – PAYMENT MADE – IRREGULAR - 315000/-

Name of the Work : Laying of cc Flooring in front of old Godown No.2 at Market Yard, Noonepalli, Nandyal Estimate amount : 300000/- Work Slip Amount : 315000/- Name of the Contractor : D. Nageswara Rao M. Book No. : 6/NDL/2007-08 Agreement No. : 6/NDL/2007-08,dt.13-4-2007 During the year under audit an amount of 315000/- was drawn on voucher No.

416, dated 31-3-2008 and paid to the contractor towards first and final payment of the above work.

As verified the sanctioned estimate as well as the agreement concluded on the

above work the items of the work to be executed were as follows: 1) Earth Work 2) Cement Concrete (1:5:10) 3) Laying VCC (1:2:4) As verified from the bill with reference to the detailed measurements recorded

from Page No.1 to 37 of M. Book, it was observed that the items of work executed were plastering to ceiling of various rooms like Bedroom, Dining Hall, Kitchen, Pooja room and Bath room etc., Brick masonry, dismantling of damaged Kadapa slab flooring, C.C. (1:5:10), Laying of flooring with double polished Kadapa slab flooring, repairs to doors, windows and ventilators, white washing, Painting with snowcem, Painting with synthetic enamel paint, supply and fixing of PVC Pipes, electrical and sanitary fittings etc.. Thus it is clear that the above items of work executed were to renovate an old building which might not to be the old godown Nos.2. The Dy. Executive Engineer should not have check measured the items of work and the Secretary made such payment in respect of works done in deviation of the plan unless approved by the Commissioner and Director of Marketing A.P.

13

The administrative authority would need to investigate in to the circumstances that prompted in executing an entirely different work from what was entrusted and agreed up on and as to how the executive authority allowed such deviation and made payment in violation of the Departmental Codes as well as the Fundamental aspects relating to execution of works. (Para No. 21 on the acconts of AMC, Nandyala, Kurnool Dist for the year 2007-08

9.4 COLLECTION OF MARKET FEES - DELAY IN REMITTANCE TO

TREASURY – IRREGULAR As verified from the Receipts ledger, Cash Book and remittance challans, it was

observed that market fees collected on different dates was remitted into Treasury with a delay of more than one month or more which is contrary to the provisions laid down under Article 2,7 to 11 of A.P, Financial Code Vol-I and as such irregular.

(Para No.8 of A.R. on the a/cs of A. M. C., Kanigiri, Prakasam Dist for 2007-08)

9.5 ESTABLISHMENT-PAYMENT OF SALARY FOR THE SUSPENSION PERIOD BY TREATING AS COMMUTTED LEAVE – IRREGULAR 65,247/-

The Special Grade Secretary A.M.C. Kothagudem vide his proceeding

No.KGM/B2/2005-06, dt. Nil regularized the suspension period of 179 days of Sri K. Venkaiah, J.M.S. as detailed below:

1. 03-04-07 to 16-06-07 for 75 days (HPL Commuted to Full pay) 2. 17-6-2007 to 21-08-07 66 days E.L. 3 22-08-07 to 28-09-07 38 days E.O.L ----------- 179 days ----------- As per rule 15-B of A.P. Leave rules, 1933 the half pay leave can be commuted to

full pay on Medical Grounds only. But contrary to the above rules the suspension period was treated as commuted leave which is irregular. Further the 66 days of earned leave was also sanctioned when he has no earned leave at his credit on the day of suspension. As such the sanction of E.L. for 66 days without credit and regularizing the suspension period as E.L. is irregular and the Secretary A.MC, Kothagudem ignored the above rules and mis-used his powers, which resulted in loss to AMC funds. The entire leave period needs to be recasted and the amounts paid recovered. (Para No. 8 of the Audit Report on the accounts of A.MC Kothagudem, Khammam District for the year 2007-08)

14

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.

A Consolidated Statement No. 3 (3) 2 of Non-remittance of deductions /

recoveries from vouchers / pay bills / contingent bills are appended to the Report for Rs.475.76 was pointed out in 640 audit paras.


Work Bills

1. Income Tax 2. Sales Tax 3. Seigniorage Fees

Pay Bills 1. Profession Tax 2 G.P.F. (Government Employees) 3 G.I.S Premium. 4 Contribution to Pension Scheme 5 Sainik Welfare fund

Some of them are as under. 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) 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. A few of such cases are mentioned below.

15

(Amount in Rupees)

Sl.

No.

Name of the AMC & District

Amount Collected

Amount Remitted


Para No.

1 Voligonda, Nalgonda 607982 0 607982 8

2 Rajam, Srikakulam 7749 0 7749 19

3 Devarakonda, Nalgonda 4300 0 4300 8

4 Kavali, Nellore 24651 0 24651 17

5 Adilabad, Adilabad 52927 13935 38992 20

10.2 SEIGNIORAGE FEES 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 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 were recovered from the work bills towards Seiginorage Fees, the same was either not remitted or partly remitted only to State Funds till the close of audit. Such inaction was pointed out in the relevant audit reports. Some of such instances are listed below.

(Amount in Rupees)

Sl.

No.

Agricultural Market

Committes

District Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

1 Tiruvuru Krishna 95688 0 95688 18

2 Rajempet Kadapa 507 374 133 10

3 Narayanapet Mahabubnagar 3766 0 3766 25

4 Nizamabad Nizamabad 201173 79485 121688 12

5 Anakapalli Visakhapatnam 2058 0 2058 3

16

10.3 SALES TAX 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 deducted as 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. A few of such cases are mentioned below.

Sl.

No.

Agricultural Market

Committes


Amount Remitted


Para No.

1 Voligonda Nalgonda 1068321 0 1068321 8

2 Rajam Srikakulam 8656 0 8656 19

3 Tiruvuru, Krishna 85823 0 85823 17

4 Narayanapeta Mahabubnagar 5331 0 5331 26

5 Kalvakurthyr Mahabubnaga 18000 15567 2433 18

10.4 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.


17


Name of the AMC


Amount Remitted

Balance to be

Remitted

Para No.

1 Ibrahimpatnam Rangareddy 11815 0 11815 16 2 Kamalapuram, Kadapa 1660 0 1660 8(2) 3 Devarakonda, Nalgonda 0 0 0 4 Wyra Khammam 1885 0 1885 12 5 Pothugal, Karimnagar 0 0 0 2(7)

10.5 A.P. 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 50/- from the first salary of the employees for the other employees 20/- have to be collected 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.

(Amount in Rupees)

Sl. No.


Amount Collected

Amount Remitted


Para No.

Agricultural Market Committees 1 Gooty, Anantapur 140 0 140 6 2 Nagarkurnool, Mahabubnagar 200 0 200 14 3 Devarakonda, Nalgonda 170 0 170 6(b) 4 Kovvuru, Nellore 360 0 360 15 5 Nellore,Nellore 410 0 410 10

10.6 CMRF / NAC Charges


Name of the AMC & District

Amount Collected

Amount Remitted

Balance to be

Remitted

Para No.

1 AMC Siddipet, Medak District 821 0 821 18 2 AMC Narayanpet, Mahabubnagar 417 0 417 24 3 AMC Kalwakurthy,


4 AMC Wanaparthy, Mahabubnagar

1162 0 1162 19

5 AMC Anakapalli,Visakapatnam 3246 0 3246 5

18


The Agricultural Market Committees have to maintain effective financial

management skills and accountability practices.


Such as important function on the part of the Drawing and disbursing officers of

all the Agriculture Market Committees 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 guidelines and instructions, the DDOs of Agriculture Market Committees 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 register. The paras on non production of records have been drawn from the individual ARs 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.

A Consolidated Statement No. 3 (3) 2 of Non-production of records is appended to the Report for Rs.3016.61 pointed out in 2159 audit paras.

11.1 EXECUTION OF WORKS – CONNECTED ESTIMATES,

MEASUREMENT BOOKS –Etc., - NOT PRODUCED- EXPENDITURE HELD UNDER OBJECION - 2057304/-

An aggregate amount of 2057304/- as detailed below was spent during the year

2007-08 towards execution of works by the AMCs, but the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The expenditure incurred could not be admitted in audit as the correctness of the same could not be verified due to non-production of the connected records and the same is held under objection. The Executive Authorities concerned would need to take immediate action to produce connected records to audit for verification immediately.

19

Sl. No.

Name of the AMC & Dist.,


Amount involved

Para No.

1 Attili, W.G M.books 656336 11(3) 2 Kavali, Nellore Estimates,M.Books and Tender files 1010741 21 3 Pathikonda,

Kurnool M.book, Estimates and Files 35000 20

4 Alagadda, Kurnool

Estimates, Agreements, M.books and connected records

59847 18

5 Rayachoty, Kadapa

M.books and Files 295380 10

11.2 PAID VOUCHERS NOT PRODUCED- IRREGULAR- 281322

During audit scrutiny paid vouchers in support of the expenditure incurred of 281322 as detailed below were not produced to audit for verification. As such the correctness of the expenditure incurred could not be verified in audit and the same is held under objection. The executive authority would need to produce the paid vouchers to audit immediately.

Sl. No.



Amount involved

Para No.

1 Kamalapuram, Kadapa

Paid vouchers relating to Contingencies and sitting fee of members

9242 9.2

2 Kadapa, Kadapa

Contingent bill and Vouchers relating to LTC

149060 34

3 Choppadandi, Karimnagar

Paid Vouchers relating to purchase of Cement Bricks

123020 12

11.3 SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT

PRODUCED:

During the audit scrutiny for the year 2007-08 it was noticed that expenditure of an aggregate amount of Rs.2842123/- was incurred as detailed below. But the connected service Registers, files, registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

20

Sl. No

Name of the AMC& Dist.,


Amount Rs.

Para No.

1 Tenali, Guntur Suit Register 48000 8(f)

2 Udayagiri, Nellore Income Tax deducted in Treasury pass book file

293680 12

3 Kovuru, Nellore Income Tax deducted in Treasury pass book details and file .

2000000 21

4 Nellore, Nellore Garbage cleaning charges connected file

333540 14

5 Kurnool, Kurnool Fixation of godown Rent & lease of shop rooms file

166903 6.1

11.4. AMOUNT REMITTED – CHALLANS NOT PRODUCED During the year 2007-08 an amount of Rs 143149 was drawn and remitted to different heads i.e Sales Tax , Seniorage Charges, Income Tax and NAC etc., . But the challans for the said remittances were not produced to audit for verification. A few such cases are mentioned below.

Sl. No



Amount involved

Rs.

Para No.

1 Choppadandi, Karimnagar

Challans for the payment of IT, POT, NAC and Seigniorage Charges

63149 15

2 Devarakonda, Mahabubnagar

Stamp duty paid Challan 80000 21

Total: 143149

12. MIS-APPROPRIATIONS

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.3 (3) 2. A total no. of 90 cases involving an amount of Rs.35.43 lakhs were pointed out in the relevant audit reports.

To illustrate the various types of modus operandi, a few of the cases pointed out are reproduced below.

21

12.1 MARKET FEE COLLECTED – NOT REMITTED – MISAPPROPRIATED – Rs.15,625/- On verification of the receipts it was observed that an amount of Rs.15,625/- was

collected towards Market fee but the same was not remitted to the funds of the Market Committee. Non remittance of collected amount is a clear case of misappropriation and it needs immediate recovery. (Para no. 24 of the Audit Report on the accounts of AMC, Kalavakunta, Mahaboobnagar District for 2007-2008) 12.2 AMOUNTS DRAWN WITHOUT ANY PURPOSE – MISAPPROPRIATED

– Rs.44615/-

During the Course of audit it was noticed that an amount of Rs.44615/- was drawn without indicating the purpose for which it was drawn. Drawl of amounts without any purpose is construed as Misappropriated.

(Para No. 27 of the Audit Report on the accounts of AMC, Ongole for 2007-2008) 12.3 AMC FUNDS - AMOUNT DRAWN BEYOND REQUIREMENT- NOT

ACCOUNTED FOR –NOR REMITTED BACK - MISAPPROPRIATION. Rs.74340/- During the course of audit it was noticed that amounts were drawn more than

what is required in various self cheques as detailed below. The amounts drawn beyond the required purpose were neither accounted for nor remitted back to AMC funds which indicates that the amounts were willfully drawn without any purpose and as such construed as misappropriated.

Sl. No.

Cheque No./ Date

Amount drawn

Expenditure booked Excess drawn & kept idle

1 690887/1.5.07 274327 274027 3002 795868/1.11.07 368514 336884 316303 734272/3.9.07 437870 431065 68054 796741/7.1.08 226136 195686 304505 858264/1.2.08 104098 98943 5155 Total: 74340

(Para No. 28 of the Audit Report on the accounts of AMC Ongole for 2007-2008)

22

13. EXCESS PAYMENTS

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 for Rs.120.35 was pointed out in 292 audit paras. 13.1 AMC, KADAPA, KADAPA DISTRICT - PENSION CONTIRBUTION –

DOUBLE DRAWL – NEEDS INVESTIGATION 2,46,887

An aggregate amount of 246887 was drawn towards payments of pension contribution for the period 3/06 to 9/06 in cheque no.532831, dt:10.5.07. As verified from records, it was noticed that the same amount was already drawn in the following cheques noted against each and the DD’s which was drawn for the payment of pension contribution for the months noted was not dispatched to Director Marketing, A.P., Hyderabad and kept with the clerk concern. This shows the clear negligence towards official duties and misappropriation of AMC funds and negligence of Executive Authority. This matter may be enquired in detail and recover the excess amount drawn from person or persons responsible.

S.No Month Cheque No.& Date Amount DD No. & Date

1 3/06 166989/1.4.06 36932 887994/17.4.06 2 4/06 166995/1.5.06 31467 924267/22.5.06 3 5/06 324161/6.6.06 33249 894846/9.6.06 4 6/06 324172/14.7.06 34574 909991/15.7.06 5 7/06 324187/31.8.06 38499 930124/1.8.06 6 8/06 324196/12.9.06 36037 692808/16.9.06 7 9/06 325758/16.10.06 36129 705765/18.10.06

TOTAL 246887 13.2 NARAYANAPET - MARKET COMMITTEE, MAHABOOB NAGAR

DISTRICT - PAY AND ALLOWANCE – FAMILY PLANING INCENTIVE INCREMENTS DRAWN

As per clarification issued in Govt.Memo.No.1943/32/A1/PC-1/2006,

Dt:03.03.2006, the employees are not eligible for sanction of family planning incentive increment on or after 01.07.1998. The family planning incentive increment of 60/- was sanctioned to Sri G. Pattabhi, Watchman from 1-8-1999 to 31-5-2008 amounting to 6,360/- in W. Godavari District and to Sri M. Anthony amounting to 7,800/- in Krishna district for the period from 5/2000 to 7/2008 in violation of Government rules. (Para No.(10) of Audit Report on the Accounts of Agricultural Marketing Committee Aki, West Godavari District for the year 2007-08 and para No.(18) of Audit Report on the Accounts of Agricultural Marketing Committee Vijayawada, Krishna District for the year 2007-08 )

23

13.3 A.M.C MADHIRA - PAYMENT OF DEARNESS RELIEF TO THE FAMILY PENSIONERS WHO HELD THE BENEFIT OF COMPASSIONATE APPOINTEMENT INADMISSIBLE- 31,992/- The following individuals who are in receipt of family pension and availed the

benefit of compassionate appointment were allowed to drawn dearness relief on their family pension. As per the orders issued in G.O.Ms.No.123 F&P, Dt.01-09-2009 payment of dearness relief on the family pension who availed the benefit of compassionate appointment is discontinued. Hence. Payment of dearness relief to the individuals is irregular. The excess payment thus made amounting to 31,992/- as detailed below.

Sl No

Name of Designation

Family Pension

Dearness Relief Paid Period Total Amount

to be recovered 145 04/05 to 06/05 435218 07/05 to 12/05 1308272 01/06 to 06/06 1635263 07/06 to 12/06 2178471 01/07 to 06/07 2825580 07/07 to 12/07 3480689 01/08 to 05/08 4134

1 Smt. S.Seethar, J.M.S 1925

Total: 15,996145 04/05 to 06/05 435218 07/05 to 12/05 1308272 01/06 to 06/06 1635263 07/06 to 12/06 2178471 01/07 to 06/07 2826580 07/07 to 12/07 3480689 01/08 to 05/08 4134

Total 15996

2 Ch.Samrajam,Attender 1925

Total 31,992 13.4 AMC WYRA - EXCESS PAYMENT OF CONSOLDATED PENSION-

13380/- Sri.V.Ramana Naidu, Supervisior (Retd) was paid pension from A.M.C funds,

wyra, subject to reimbursement from C&D.M, Hyderabad. The pensioner was sanctioned, difference of commutation of pension vide progs No. D.Ds SP3-4472/2007, Dt.18-06-07 as per Government Orders issued in the G.O.(P) No.108 Fin(PeN-I) Department, dt 03-05-2006 as he was retired on 31-12-1998 A.N. It is also pointed out in audit that the reduced consolidated pension shall be fixed at 4602/- P.M. payable from 01-08-2006, but the A.M.C authorities are paying reduced pension @5271/- P.M. to the pensioner. The excess amount paid towards reduced pension w.e.f. 01-08-06 has been calculated as follows.

24

From 01-08-2006 to 31-03-2008 20 MonthsX669/ P.M.=13380/- (Para No.15 of Audit report on the Accounts of Agricultural Marketing Committee, WYRA dt for the year 2007-08) 13.5 AMC – PARVATHIPURAM - VIZAYANAGARAM DISTRICT - P.H.C .

ALLOWANCE PAID TO Sri P.SUBBARAO, WATCHMAN-EXCESS PAID – 2618/- As per the G.O.Ms.No.197 (Fin&Pln) Dt:6-7-2006, physically handicapped

allowance shall be sanctioned @ 10% of the Basic pay subject to a ceiling of 650/-p.m. But. Sri P.Subba Rao, Watchman is being paid @ maximum rate i.e., 650/- instead of 10% of the Basic pay as detailed below.

Sl No

Name of the AMC


Month Pay

Eligible for

P.H.C Allowed

10%

Already paid

Excess paid

Remarks

1 6-7-2006 to 31-7-2006

5075 426 546 120 --

2 8/2006 5075 507 650 143 -- 3 9/2006 5075 507 650 143 -- 4 10/2006 to

6/2007 (9 Months)

5200 520 650 1170 (130X9)

5 7/2007 to 10/2007 (4 Months)

5335 533 650 468 (117X4)

6

Parvathipuram Vijayanagaram

11/2007 to 3/2008 (5 Months)

5335 533 650 585

(117X5)

Total 2629

The same would need to be recovered from him and credited to AMC Funds. (Para No.27 of Audit Report on the Accounts of Agricultural Market Committee, Vijayanagaram District for the year 2007-08 ) 13.6 A M C - ANAKAPALLI, VISAKAPATNAM DISTRICT - ERRONEOUS

FIXATION OF PAY OF SRI A. RAMA KRISHNA UNDER FR. 22B W.E.F. 01-09-2006 ON PROMOTIN –– RESULTED EXCESS PAYMENT OF 12013/- - NEEDS REVISION OF PAY AND PENSIONARY BENEFITS

The pay of Sri A. Rama Krishna, formerly watchman, was fixed in RSP 2005

w.e.f.1-7-2003 with M.B. from 1-4-2005 in terms of G.O. (P) No.213 finance Dt.27-8-05 and annual grade increments were released from time to time as follows.

25

Date Amount (Rs.)

1-7-2003 ( RSP 2005) 6505/-

1-9-2003 ( inc) 6675/-

1-9-2004 (inc) 6845/-1-9-2005 (inc) 7015/-

His pay was erroneously fixed @ 7570/- in the post of J.M.S w.e.f 1-9-2006 under

FR 22B straight away consequent on promotion vide progs. RC No.218/06 Dt.31-8-06 of secretary AMC Narsipatnam. He retired from service on superannuation on 31-8-2007. He also sanctioned notional increment w.e.f.1-9-2007 interms of G.O.MS No.235 Finance Dt.27-10-1998 raising pay from 7570/- 7770/- for the purpose of pensionary benefits. Baring on the above pay, pensionary benefits was sanctioned vide D.D’s No.P2/8594/2007 Dt.27-10-07 (PPO No.2157) of Commissioner of Director, of Agriculture Marketing, Hyderabad as follows.

S.P: 7770x30x5/66=3591/- DERG: 7770x1/4x61=118493/- Comm.: 3591X40%=1436X12X10.46=180247/- NFP: 2331/- (7770X30%)

Due to erroneous fixation of pay in the present post of JMS w.e.f 1-9-2006, and

national increment w.e.f 1-9-2007 and penssionary benefits. The excess payment worked out below the close of audit amounting Rs.12013/-. PAY

Pay erroneously fixed Admissibility of pay Excess pay

1-9-06 7570/- 7385/-1-9-07 7770/- 7570

185X12M = 2220/-

Notional increment interms of ( G.O.235/ Dt.27-10-1998)

Excess DA

9/09 to 12/09 740X18.84% = 139/-1/07 to 6/07 1110X24.492% = 272/-7/07 to 8/07 370X30.144% = 112/-

26

Excess HRA :- 2220X10% =222

Pension & Pensionary benefits erroneously fixed

Admissibility of pension of pensionary benefits

Excess Fixed

S.P 3591/- 3499/- 92/-DCRG 118493/- 115443/- 3091/-Com 180247/- 175728/- 4519/-

Excess Payment of Pension 9/07 to 8/08 = @ 92X12M = 1104/- DR 9/07 to 12/07 = 368X30.144% = 111 1/08 to 8/08 = 736X35.796% = 263

-------------------- 374 -------------------- ABSTRACT

Excess pay Excess Pensionary Benefits Total Pay- 2220 DA – 523 HRA 222

---------- 2965 -----------

Pension - 1104 DR - 374 DCRG – 3051 Com - - 4519 ----------- 9048 -------------

12013/-

(Para No.33 of Audit Report on the Accounts of Anakapalli AMC, Visakapatnam District for the year 2007-08 ) 13.7 AMC – PARVATHIPURAM, VIJAYANAGARAM DISTRICT - SMT

T.V.JAGANNADHAMMA, TYPIST-PROMOTION REJECTED PERMANENTLY-AWARDING OF SPP-I IS IRREGULAR- EXCESS PAYMENT: 24648/- + DA

In the service Register Vol-IV page-13 of Smt T.V Jagannadhamma, Retire

Typist she herself informed in writing that she rejected promotion permanently. But she was sanctioned SPP-I scale in the cadre of Typist. As per Government Memo No7/375/PRC-1/88 F&P Dt.26-10-1988 when a person relinquishes his right permanently for promotion the employee shall not be eligible for benefit of Automatic advancement scheme. She is not eligible for SPP-I scale and regularization of pay and excess payment shall be recovered. (Para No.15 of A. R. on the A/cs of Parvathipuram , AMC, Vijayanagaram Dict. for the year 2007-08 )

27

13.8 BOBBILI AMC, VIJAYANAGARAM DISTRICT - SPP-II (24 YEARS) –

ALLOWED TO Smt P.MANGAMANI J.M.S WITHOUT PASSING REQUISITE QUALIFICATION (SECOND LEVEL PROMOTION POST ) CONTRARY TO GOVERNMENT INSTRUCTIONS IRREGULAR EXCESS PAYMENT: Rs:8954/- At page No.41 of Service Register Vol.3 of Smt P.Mangamani, Mastry/J.M.S., 24

Years SPP-II scale was allowed, vide Porgs No.21/a/07 dt.30-1-2007 of chairman, A.M.C Bobbili, without passing of requisite Qualification for getting second level promotion post.According to Circular Memo.No.661/12/Pc.II/2006, Dt.1-3-06 read with G.O.P.No.241F PC.II Dept Dt.28-9-05 read with Go.P.No.213 F&P (FWPC-1)Dept. Dt.27-8-05, those who have completed 24 years on or after 1-7-03 shall be eligible for SPP-II subject to the conditions that they are fully qualified to the second level promotion post. (Para No.17 of Audit Report on the Accounts of Bobbili, AMC, Vijayanagaram District for the year 2007-08 ) 13.9 AGRICULTURAL MARKETING COMMITTEE, GUNTUR DISTRICT -

SRI P.VENKATRAMAIAH, ATTENDER – ENCASHMENT OF EARNED LEAVE – EXCESS PAYMENT DUE TO INCORRECT CALCULATIONS IN EARNED LEAVE. ACCOUNT- 4975/- An amount of Rs.60363/- was paid to Sri P.Venakataramaiah, Attender towards

the encashment of earned leave for 182 days.The Employee is having 61 days of E.L. as on 30-6-1996 and on credit of 15 days of advance credit on 1-7-1996, E.L balance calculated to 91 days instead of 76 days, which caused excess credit of 15 days. The excess payment of encashment of E.L., made due to excess credit of 15 days of E.L., amounting to 4975 ( 60363/182X15) (Para No.32, Audit Reports on the Accounts of Agricultural Marketing Committee, Guntur District for the year 2007-08 )


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

28

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. 3 (3) 3 of Wasteful expenditure is appended to the

Report for Rs.13.97 was pointed out in 29 audit paras. 14.1 PUBLICATION OF DEVELOPMENTAL ACTIVITIES ETC., IN DAILY

NEWS PAPERS EXTRAORDINARY AND WASTEFUL EXPENDITURE

Government have reviewed the policy of decentralization and orders were issued in G.O. Ms. No 37 GA (I&PR) Dept. Dt.22-1-94 to issue public advertisements on implementation of public policies only by Commissioner I & PR or District Collector in the districts. Further in GM. No.5263/Pts-IV/A/05 Dated 16-4-2005 of PR dept. Government issued instructions to all the departments in GM.No.96929/I&PR/A1/2003-1 Dated 12-9-2003 to issue suitable instructions to all HODs to release advertisements of press publicity through the medium of I & PR dept alone and the payments to be made after obtaining certification of the bills by the I &PR dept.

Contrary to the instructions of the Government in the above orders of the Government expenditure was incurred for publishing Festival greetings, New year greetings, welcome greetings etc., which was not at all permissible. In the case of authorized advertisements the expenditure was incurred without the certification by the I & PR dept. resulting in non observance of the policy of rotation among big, small and medium newspapers and without regard to the circulation and reach in disseminating information of policies of the Government. The expenditure incurred on publishing the developmental activities and greetings etc., constitute wasteful expenditure and the same was noticed in the following institutions as detailed. AGRICULTURAL MARKET COMMITTEES

Sl. No

Name of the Agricultural

Market Committee

District Purpose of Expenditure

Amount Spent.

Rs.

Para No.

1 Tadepalligdem West Godavari Expenditure on publication of Developmental activities 39054 27

2 Nagarkurnool Mahabubnagar Expenditure on publication of Invitations, Welcome Greetings etc.,

20604 22

3 Vakadu Nellore Expenditure on publication of Developmental activities 29256 10

TOTAL 88914 3

29

14.2 AGRICULTURAL MARKET COMMITTEE – SUNKET – E.G. DIST. - TELEPHONE CHARGES – EXTRAORDINARY EXPENDITURE –AVOIDABLE

During the course of voucher audit, it was noticed that, this institution has two telephone connections with No's 2328444 & 232833 with a monthly rent of 899 and 360 respectively. The purpose for which two connections were taken with a high plan-899 along with an ordinary connection was not explained in audit. For the Plan-899 connection (i.e.2328444) the rental amount is 50% of the total bills amounts 1798 per two months. The committee is paying 1079 as rent per month for the two connections in addition to the call charges which is extraordinary. Further the committee has also PBX system for telephone. The necessity for the two phone connections was not explained in audit for the staff of one supervisor, one attender and one Secretary in the Office along with committee chairmen. In view of the above, action would need to be taken to surrender the phone connection with high rental value @ 899PM to reduce the expenditure on telephone charges.

( Para No.15 of the Audit Report on the accounts of AMC, Sunket, Kakinada District)

14.3 AGRICULTURAL MARKET COMMITTEE – BOBBILI - COMPUTER

CHARGES PAID TO JYOTHI COMPUTERS – THOUGH AMC, KURUPAM HAVING COMPUTER – WASTEFUL EXPENDITURE –

During the course of audit, it is noticed that an amount of 18,000 was drawn and paid to Jyothi computers works for 3/07 to 2/08 1500PM even though the AMC, Bobbili is having a Computer. The very purpose of incurring the expenditure on payment of Computer Charges was not explained in audit. Further no specific authority is also not furnished for verification in audit. The details are as showed hereunder.

Vr.No. & Date Month Amount Remarks

67/5.7.07 4/07 to 6/07 4500

318/1.08 12/07 1500

384/2.08 1/08 1500

420/3.08 2/08 1500

243/10.07 10/07 1500

198/9.07 9/07 1500

177/8.07 8/07 3000

97/7.07 7/07 1500

278/11.07 11/07 1500

Paid to Jyothi Computers

TOTAL 18000

30

Early action would need to be taken to recover the same from the person or persons responsible and the same may made good to the funds.

(Extract of Para No.34 of the Audit Report on the accounts of AMC, Bobbili) 14.4 AGRICULTURAL MARKET COMMITTEE – ALUR – KURNOOL DIST.

- GODOWNS AND SHEDS IN MARKET YARD, ALUR WITHOUT TRADE OPERATIONS – HUGE EXPENDITURE INCURRED – ON CONSTRUCTION OF GODOWNS AND SHEDS WASTEFUL

During the course of audit, and as verified from the receipts and charges statements for last three years it was observed that no trade operations were taken place in the Market Yard even though there had been spacious godowns and sheds built in the Market yard. Though income on Market fee has been improving every year crossing 30 Lakhs no proper action was initiated to maintain trade operations for the crop yields pertaining to farmers belongings to the surrounding Mandals including Alur. Hence the farmers have been transporting their crop yields to faraway market yards which caused much inconvenience to the farme As such even the huge expenditure spent in construction of the spacious godowns and sheds is wasteful. As such suitable action would need to be initiated to execute trade operations in Market yard so as to improve the financial position of the committee as well as to mitigate the needs of the farmers of surrounding areas.

( Para No.7.1 of the Audit Report on the accounts of AMC, Alur Kurnool District ) 14.5 AGRICULTURAL MARKET COMMITTEE – VIJAYAWADA -

PURCHASE OF GRADING LAB EQUIPMENT NOT IN USAGE /FUNCTIONING – NEEDS EARLY ACTION – Rs. 43,532/-

During the year 2007-08 grading lab equipment was purchased for an amount of 43532 on Vr.No.336 Dt.26.3.2008 from M/s Anil Scientific Company, Vijayawada.But, the said equipment has not been installed and not in use in the Market Yard. It seems that the purpose of purchase of equipment was defeated .

Suitable steps may be taken for usage of the equipment.

(Extract of Para No.23 of the Audit Report on the accounts of AMC, Vijayawada)

14.6 AGRICULTURAL MARKET COMMITTEE – BADWEL – KADAPA DIST. - WASTEFUL EXPENDITURE - INTEREST PAID ON CMF LOAN – Rs.1,62,790/-

As verified from Vr.No.119/15.10.07 it was noticed that an amount of Rs.1,62,790/- was drawn and paid to the Commissioner and Director of Marketing, Government of A..P, Hyderabad towards interest on belated payment of interest of Rs.4,56,944/- @ 12.5% P.A.

As per G.O.Ms.No.151 AMC (market-II) Department A/C-I(2) 2/2002 Dt.27.6.2000 an amount of 20Lakhs was sanctioned to Badevel AMC towards 1st

31

installment from CMF for developmental works in Market Yard. The amount was drawn and credited to General Funds of Badvel AMC on 2.12.2000 vide Ch.No.35 and kept idle in the General funds up to 20.9.2002 and refunded to Commissioner, Marketing, Hyderabad.

An amount of 456944 was imposed as interest on the loan amount which was kept idle in General Funds (vide Memo No.A(4) 1615/2004 Dt.8.10.2004 of the Commissioner & Director of Marketing, A.P, Hyderabad.

The payment of interest was delayed up to 5.8.2005 after obtaining budget provision and necessary sanctions, the interest amount of 456944 was paid to the concerned. Further an amount of 162790 was incurred by the AMC, Badvel towards interest on loan which was unwanted.

(Extract of Para No.14 of the Audit Report on the accounts of AMC, Badvel, Kadapa)

15. INSTANCES OF CASES OF UNACCOUNTED CASH /

STORES

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. 3 (3) 3 is appended to the report from which it can be noticed that 14 paras involving Rs.6 lakhs were reported.

15.1 A.M.C. NELAKONDAPALLY , KHAMMAM DISTRICT FOR THE YEAR

2007-08 - ADVANCE RECOVERABLE REGISTER NOT MAINTAINED PROPERLY NEEDS TO BE MAINTAINED PROPERLY: During the course of audit on the accounts of A.M.C. Nelakondapally for the

year 2007-08, on verification of the advance recoverable register the following irregularities were noticed. 1. Instead of recording the recovery of interest bearing loans/advances i.e., house building advance, marriage advance and motor cycle advance installment wise with the installment number , simply installment wise amount as recovered from the pay bills is being recorded in the register. But the installment number is not being noted in the register which is not correct. 2. After sanction of the loan, initially the principal amount has to be recovered followed by interest on the basis of diminishing value method, which was not done.

32

3.As per Govt., orders in issued in GO Ms. No.27 Fin &Plg, dt.07.02.96 the details as to sanction of loan the number of installments in which the principal and of interest of the loan should be distinctively recorded in the service register of the individual. But the same was not done which is irregular. 4. The recovery particulars of loan regarding the principal and interest also not recorded in the service registers of the individuals. 5. The terms and conditions in the Government Order No.131 Fm & Plg, dt.19.08.99 was not observed by the Drawing Officers, which is also irregular.

Owing to the above irregularities it may lead to improper recovery of the loans from the loanees and consequential loss to the institution. In spite of raising the matter in Half margin letter issued to the secretary A.M.C. Nalakondapally no prompt response could be received.


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 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) Deptt., dt. 10-4-2002, the Government have among others prescribed the pre-condition under Para 12 of G.O. for further drawl 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. Such cases are reported in the Audit Reports of Agricultural Market Committees is shown in the statement appended herewith.

A Consolidated Statement No. 3 (3) 3 of Pendency of Utilization Certificates is

appended to the Report for Rs.3.13 was pointed out in 9 audit paras. AGRICULTURAL MARKET COMMITTEES:

Sl.No. District No. of Utilization

Certificates pending

Amount in Lakhs

1 Adilabad 02 0.80

33


In accordance with the provision of the State Audit Act, 1989 and Rules issued there under, the audit of local authorities i.e., Zilla Parishads, Mandal Parishads, Gram Panchayats, 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 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 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 Consolidated Statement No. 3 (3) 3 Issue of Surcharge Certificates is appended to the Report for Rs. 64.84 lakhs was pointed out in 55 audit paras.

18. OTHERS

Other objections which were not fallen in the above categories are incorporated under this category. Such objections numbering 919 were raised for an amount of Rs.876.90 lakhs as detailed in Statement No. 3 (3) 3.

18.1 INCOME TAX PAID – NEEDS REFUND – Rs.48,83,731/-.

As per the orders of the C & DAT, Hyderabad No. 286-2007/Supple/I.T., dated: 7-1-2008 an amount of Rs.48,83,731-00 was paid towards Income tax to Income tax department.

34

But, as the transactions of the Agricultural Market committee are absolutely service oriented and render no profit or loss to the Committee funds, the payment of Income tax is not correct. The payment and getting the refund of the same, amounts to unnecessary efforts and waste of time. Even if the Committee was insisted upon for payment of tax, it should have furnished the returns to the Income tax Department. As it was not done, the Committee was led to the obligation to pay such a huge amount to the Income Tax Department unnecessarily.

Hence, the amount needs to be got refunded to the funds.

(Para No. 10(b) of A. Market Committee, Kothapeta for 2007-08, E.Godavari District) 18.2 INCOME TAX – PAID FROM MARKET COMMITTEE FUNDS – NEEDS

ACTION FOR REFUND

In voucher No. 373/7.7.2008 an amount of 42,07,943-00 was drawn and paid to the Income Tax Department towards Income Tax of the Income Derived to Agricultural Market Committee through various sources i.e., Market fee, Licence fee etc., in the years 2004-05 and 2005-06. As the transaction dealt with by the Market Committee are absolutely service oriented and do not involve any profit and loss to the market committee, it is not liable to pay the tax. Had the market committee submitted its income tax returns with in the time to the Income tax department, the compulsion for the payment of tax would not have raised. But as seen from the records it is evident that no returns no were submitted to Income Tax department. Therefore the tax payment is redundant and immediate action needs to be initiated to get the refund of the tax paid. (Extract of Para No.7 (2) of Agriculture Market Committee Prathipadu for 2007-08) 18.3 AMC: MUMMIDIVARAM for 2007-08 EAST GODAVARI DISTRICT -

INCOME TAX PAID - NEEDS REFUND

An amount of Rs. 28,31,545/- was drawn in voucher no. 202/28-12-08 and paid to income tax department as 1/3 part of income tax due from the market committee. As the market committee does not involve in any profit oriented business and conducts its Transactions with the service notice, the institution should not have been obliged to pay income tax. The above expenditure could have been avoided if it has submitted its returns with accounts properly.

Due to its failure in submission of returns to the income tax department, the committee was made liable to pay to the income tax. Immediate action needs to be taken for refund tax paid.

35

19. DEMAND DRAFTS / CHEQUES / 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.

A Consolidated Statement No. 3 (3) 3 of Non-realization of Cheques in time is

appended to the Report for Rs.0.12 lakhs was pointed out in 1 audit para.

HYDERABAD DIRECTOR DATE STATE AUDIT,

A.P., HYDERABAD.

36

SECTION - II

ACCOUNTING STATEMENTS OF AGIRCULTURE MARKET COMMITTEES

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2007-08

Sl.No.


AUDIT COMPLETED AS

ON 31-3-2007




1 Adilabad 0 16 0 16 0 0

2 Ananthapur 0 13 0 13 0 0

3 Chittoor 0 15 0 15 0 0


5 Guntur 0 18 0 18 0 0

6 Kadapa 2 12 1 12 1 0

7 Karimnagar 0 20 0 20 0 0

8 Khammam 0 13 0 13 0 0

9 Krishna 0 17 0 17 0 0

10 Kurnool 0 12 0 12 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


TOTAL: 3 310 1 310 2 0

37

Sl. No.

NAME OF THE DISTRICT RECEIPT PAYMENT

1 Adilabad 1462.99 1206.86

2 Ananthapur 908.29 750.82

3 Chittoor 637.91 539.45

4 East Godavari 2631.18 1934.85

5 Guntur 6241.97 7626.60

6 Kadapa 744.92 625.14

7 Karimnagar 1745.04 980.59

8 Khammam 1673.91 1305.08

9 Krishna 3148.39 2040.28

10 Kurnool 1528.17 1314.99


12 Medak 574.69 536.03

13 Nalgonda 2315.63 1742.59

14 Nellore 1054.72 864.41

15 Nizamabad 1412.00 1451.11

16 Prakasam 6875.34 6630.16

17 Ranga Reddy 1956.24 1505.06

18 Srikakulam 897.93 701.22


20 Vizianagaram 553.03 422.33

21 Warangal 2079.11 1419.21

22 West Godavari 3318.67 2123.75

TOTAL: 44003.51 37652.62

STATEMENT No. 2 (1)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMNETS OF AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2007-08

Rs. In lakhs

38

Sl. No.


MARKET FEES

LICENSE FEES

LATE FEE

PROPERTY

RENTAL FEES

INTEREST ON

INVESTMENT

AUCTIONS

INCOME FROM MISCELLANEOUS

SOURCESDEPOSITS LOAN ADVANC

ES GRANT IN

AID TOTAL


TOTAL: 28614.80 132.89 26.72 517.59 147.90 51.82 2738.90 1137.06 3027.91 1912.39 5695.53 44003.51

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2007-08

(RECEIPT HEADS)

39

Sl. No.


SALARIES

OTHER ADMN.

EXPENDITURE

LAW CHARGE

S

ACQUISITION OF PROPER

TIES

DEVELOPMENT

WORKS

FURNITURE AND

VEHICLES ETC.,

10% CONTRIBU

TION TO CMF

REPAYMENT OF LOANS

OTHERS ADVANCES DEPOSITS OTHERS TOTAL

1 Adilabad 239.89 149.64 1.57 0.69 410.33 1.56 131.27 25.12 14.13 22.80 23.27 186.59 1206.862 Ananthapur 208.06 108.69 1.51 0.00 163.31 4.40 62.16 42.53 126.75 7.48 6.68 19.25 750.823 Chittoor 194.06 191.68 0.46 0.00 30.24 0.35 47.85 10.68 2.52 17.30 0.00 44.31 539.454 East Godavari 401.83 190.08 83.71 5.00 57.30 22.85 204.21 0.12 354.25 311.75 7.87 295.88 1934.855 Guntur 704.11 1039.84 3.67 14.89 868.16 44.19 3182.38 68.96 407.89 182.68 19.40 1090.43 7626.606 Kadapa 235.96 125.37 1.42 0.00 81.95 7.13 45.41 10.39 27.96 29.78 1.39 58.38 625.147 Karimnagar 25.73 377.66 2.29 30.28 250.58 34.91 142.93 25.02 12.78 68.37 4.99 5.05 980.598 Khammam 279.58 449.15 0.87 30.06 178.29 4.10 126.35 48.77 50.07 96.70 24.20 16.94 1305.089 Krishna 446.38 250.05 0.45 0.00 231.20 18.66 192.22 274.81 75.88 89.02 22.49 439.12 2040.28

10 Kurnool 301.91 127.38 1.41 0.00 145.59 6.15 98.51 33.07 3.17 46.77 26.88 524.15 1314.9911 Mahaboobnagar 290.27 164.03 1.14 11.53 432.56 3.80 106.36 134.47 41.21 84.28 4.41 197.18 1471.2412 Medak 148.09 110.96 1.05 0.25 135.26 6.35 53.33 19.01 34.62 15.62 2.87 8.62 536.0313 Nalgonda 463.23 313.36 4.27 14.06 308.32 3.36 156.90 62.17 4.87 170.40 11.00 230.65 1742.5914 Nellore 146.08 194.08 2.2 0 86.42 3.6 68.28 52.57 289.2 7.18 14.8 0.00 864.4115 Nizamabad 254.55 285.99 1.51 0.00 248.30 1.66 108.15 175.95 139.38 201.36 27.87 6.39 1451.1116 Prakasam 367.38 120.19 3.28 0.00 73.70 3.70 101.25 53.98 1416.66 31.31 892.51 3566.20 6630.1617 Ranga Reddy 430.96 377.29 2.53 0.00 270.96 10.92 151.75 93.00 17.96 29.22 6.27 114.20 1505.0618 Srikakulam 206.17 79.81 2.92 19.55 45.03 3.06 55.46 19.37 113.79 31.71 4.28 120.07 701.2219 Visakhapatnam 110.56 20.62 0.83 1.61 19.38 2.62 51.13 3.25 147.18 29.35 4.12 70.20 460.8520 Vizianagaram 132.90 53.26 1.07 0.00 22.16 3.50 40.63 3.25 75.68 38.63 7.32 43.93 422.3321 Warangal 306.91 425.50 3.93 0.00 308.68 4.11 182.62 27.26 32.94 44.25 10.40 72.61 1419.2122 West Godavari 411.76 602.25 4.27 11.04 107.80 10.72 250.24 99.21 324.48 79.88 7.79 214.31 2123.75

TOTAL: 6306.37 5756.88 126.36 138.96 4475.52 201.70 5559.39 1282.96 3713.37 1635.84 1130.81 7324.46 37652.62

STATEMENT No. 2 (3)STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2007-08

(PAYMENT HEADS)

40

Sl. No.

NAME OF THE DISTRICT No. AMOUNT

1 Adilabad 285 261.78


3 Chittoor 158 141.19


5 Guntur 234 280.93

6 Kadapa 266 225.88

7 Karimnagar 299 137.52

8 Khammam 152 331.02

9 Krishna 207 340.51

10 Kurnool 2728 7070.71


12 Medak 117 104.85

13 Nalgonda 292 373.46

14 Nellore 136 110.95

15 Nizamabad 517 1645.22

16 Prakasam 190 175.28





21 Warangal 270 470.36


TOTAL 7667 14314.33

STATEMENT SHOWING THE CONSOLIDATED DISTRICT WISE AUDIT OBJECTIONS

Rs. In lakhs.

STATEMENT - 3 (1)

41




3 Diversion of Grants / Funds 78 258.42

4 Non-utilisation of Grant before lapsable dates 2 0.00

5 Mis-utilisation of Grants / Funds 75 60.11

6 Non-Utilisation of Earmarked Funds 1 0.00


8 Advances pending adjsutemnt 456 1894.32


10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 640.00 475.76







17 Surcharges Certificates Recovery Pending 55 64.84

18 Others 919 876.90

19 D.D/Cheques Received but not realized with in time 1 0.12

Total: 7667 14314.33

STATEMENT No. 3 (2)


Rs. In lakhs.

42

Rs. In lakhs

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 10 7.57 5 27.48 0 0.00 0 0.00 0 0.00 1 0.002 Ananthapur 8 0.04 9 33.99 5 3.36 0 0.00 0 0.00 0 0.00 17 16.083 Chittoor 3 0.00 5 6.52 6 28.51 0 0.00 0 0.00 0 0.00 16 20.474 East Godavari 0 0.00 10 8.12 2 11.12 0 0.00 0 0.00 0 0.00 43 143.255 Guntur 1 0.00 7 16.93 2 14.25 0 0.00 0 0.00 0 0.00 33 33.996 Kadapa 3 0.00 3 11.97 1 12.00 1 0.00 0 0.00 0 0.00 17 22.417 Karimnagar 4 0.00 6 12.89 4 4.24 0 0.00 0 0.00 0 0.00 9 15.578 Khammam 1 0.00 1 2.72 0 0.00 0 0.00 0 0.00 0 0.00 11 67.439 Krishna 7 0.96 4 7.11 1 4.81 0 0.00 0 0.00 0 0.00 41 97.99

10 Kurnool 23 7.63 43 194.02 5 80.24 0 0.00 22 24.52 0 0.00 431 1500.7111 Mahaboobnagar 6 12.22 7 0.00 6 8.60 0 0.00 0 0.00 0 0.00 30 3.1412 Medak 7 0.00 16 8.72 4 8.18 0 0.00 1 1.37 0 0.00 13 32.6013 Nalgonda 23 0.12 17 0.00 0 0.00 0 0.00 3 0.28 0 0.00 77 103.5414 Nellore 1 2.15 3 0.76 2 0.00 0 0.00 0 0.00 1 0.00 17 12.7015 Nizamabad 33 60.27 14 25.87 28 50.88 1 0.00 48 33.10 0 0.00 118 614.3016 Prakasam 7 0.00 15 70.27 1 0.00 0 0.00 0 0.00 0 0.00 12 9.4817 Ranga Reddy 1 30.06 4 0.08 6 4.75 0 0.00 0 0.00 0 0.00 19 222.8118 Srikakulam 0 0.00 3 8.83 0 0.00 0 0.00 0 0.00 0 0.00 21 40.1819 Visakhapatnam 2 0.00 4 0.15 0 0.00 0 0.00 0 0.00 0 0.00 26 66.3520 Vizianagaram 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 34 89.5421 Warangal 8 3.84 8 123 0 0.00 0 0.00 1 0.84 0 0.00 7 26.3622 West Godavari 2 25.26 3 117.79 0 0.00 0 0.00 0 0.00 0 0.00 45 94.12

TOTAL 140 142.55 192 657.51 78 258.42 2 0 75 60.11 1 0 1038 3233.02

DIVERSION OF GRANTS /

FUNDS

NON- UTILIZATION OF GRANTS BEFORE THE LAPSABLE D

MIS - UTILISATION OF GRANTS / FUNDS

NON-COLLECTION OF DUES

STATEMENT. 3 (3) 1STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONS


NON- UTILIZATION OF

EARMARKED FUND

EXCESS UTILISATION OF GRANTS /

FUNDS


Sl. No.

Page 43

Rs. In lakhs

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 13 1.38 81 26.73 14.00 44.20 45 93.40 13 4.42 6 10.312 Ananthapur 14 9.57 58 6.52 17.00 4.12 62 52.50 1 0.01 4 0.993 Chittoor 10 6.80 37 4.71 5.00 0.20 44 73.87 0 0.00 6 0.114 East Godavari 22 138.49 65 6.24 9.00 0.66 69 260.74 2 0.04 4 1.495 Guntur 14 143.89 46 5.17 27.00 22.68 67 34.54 1 0.00 0 0.006 Kadapa 17 15.66 50 46.41 13.00 3.15 69 87.16 3 10.16 8 15.557 Karimnagar 3 8.91 169 8.19 9.00 9.45 59 24.05 2 0.13 0 0.008 Khammam 7 125.65 33 19.09 49.00 18.84 22 15.29 1 0.00 3 0.489 Krishna 26 108.67 23 29.25 29.00 34.12 35 44.85 2 0.00 4 1.51

10 Kurnool 147 929.72 278 2446.57 174.00 215.51 1192 1502.80 34 11.10 165 30.4611 Mahaboobnagar 3 2.03 49 9.97 43.00 14.27 46 9.70 6 0.52 18 43.7912 Medak 0 0.00 19 8.39 28.00 9.21 18 34.94 1 0.02 0 0.0013 Nalgonda 20 116.89 45 56.16 22.00 1.78 40 64.53 1 0.05 2 0.4314 Nellore 6 28.76 48 22.33 7.00 14.60 42 28.41 0 0.00 3 0.9515 Nizamabad 62 186.86 86 427.60 70.00 37.66 20 172.84 1 6.74 12 0.1316 Prakasam 7 0.00 76 4.64 10.00 2.37 28 47.66 2 1.19 4 0.1017 Ranga Reddy 6 1.75 38 48.91 35.00 14.76 21 130.84 8 0.18 10 4.0918 Srikakulam 15 22.06 80 27.69 18.00 21.22 73 36.38 0 0.00 3 0.6319 Visakhapatnam 11 2.96 42 48.93 7.00 1.27 39 31.99 0 0.64 6 0.4320 Vizianagaram 19 13.41 57 5.31 18.00 4.13 74 109.93 4 0.05 10 1.2921 Warangal 4 5.36 66 165.01 22.00 1.00 55 97.13 8 0.18 23 7.5522 West Godavari 30 25.50 31 31.47 14.00 0.56 39 63.06 0 0.00 1 0.06

TOTAL 456 1894.32 1477 3455.29 640 475.7558 2159 3016.61 90 35.429 292 120.35

VIOLATION OF RULES

NON-REMITTANCE OF DEDUCTIONS/RECPVERIES FROM

WORK BILLS/PAYBILLS/CONTINGENT

BILLS

NON-PRODUCTION OF

RECORDS

MIS-APPROPRIATIONS

ADVANCES PENDING

ADJUSTMENT

STATEMENT 3 (3) 2

EXCESS PAYMENTS

STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS

Sl. No.


Page 44

Rs. In lakhs

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 97 46.29 0 0.00 285 2622 Ananthapur 2 0.20 0 0.00 0 0.00 2 0.34 31 0.66 1 0.12 231 1293 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 26 0.00 0 0.00 158 1414 East Godavari 0 0.00 0 0.00 0 0.00 0 0.00 39 3.61 0 0.00 265 5745 Guntur 0 0.00 0 0.00 0 0.00 0 0.00 36 9.48 0 0.00 234 2816 Kadapa 1 0.30 1 0.00 1 0.60 5 0.00 73 0.51 0 0.00 266 2267 Karimnagar 1 0.34 1 0.75 0 0.00 0 0.00 32 53.00 0 0.00 299 1388 Khammam 1 8.35 0 0.00 0 0.00 0 0.00 23 73.17 0 0.00 152 3319 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 35 11.24 0 0.00 207 341

10 Kurnool 7 1.26 10 5.08 3 0.00 0 0.00 194 121.09 0 0.00 2728 707111 Mahaboobnagar 3 0.27 0 0.00 1 1.20 0 0.00 32 119.63 0 0.00 250 22512 Medak 0 0.00 0 0.00 0 0.00 0 0.00 10 1.42 0 0.00 117 10513 Nalgonda 2 0.25 0 0.00 0 0.00 0 0.00 40 29.43 0 0.00 292 37314 Nellore 1 0.29 0 0.00 0 0.00 0 0.00 5 0.00 0 0.00 136 11115 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 24 28.97 0 0.00 517 164516 Prakasam 0 0.00 0 0.00 3 1.33 0 0.00 25 38.24 0 0.00 190 17517 Ranga Reddy 0 0.94 0 0.00 0 0.00 0 0.00 40 266.08 0 0.00 188 72518 Srikakulam 0 0.00 0 0.00 0 0.00 0 0.00 55 22.30 0 0.00 268 17919 Visakhapatnam 3 0.00 1 0.00 0 0.00 0 0.00 15 0.00 0 0.00 156 15320 Vizianagaram 4 0.19 0 0.00 0 0.00 0 0.00 21 12.20 0 0.00 241 23621 Warangal 1 0.14 1 0.17 0 0.00 0 0.00 66 39.58 0 0.00 270 47022 West Godavari 3 1.45 0 0.00 1 0.00 48 64.50 0 0.00 0 0.00 217 424

TOTAL 29 13.982 14 6 9 3.126 55 64.84 919 876.895 1 0.12 7667 14314.33

Total

SURCHARGE CERTIFICATES

RECOVERY PENDING

STATEMENT 3 (3) 3STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS

Sl. No.


D.D/CHEQUES RECEIVED BUT NOT REALIZED WITH IN TIME

OTHERS WASTEFUL EXPENDITURE

INSTANCES OF CASES OF

UNACCOUNTED FOR CASH / STORES

PENDENCY OF UTILISATION

CERTIFICATES

Page 45

PART - IV



CONSOLIDATED AUDIT AND REVIEW REPORT ON THE

ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR

THE YEAR 2007-08


CONTENTS

PART – IV

SECTION - I


No. I Preface ii II Overview iii III Introduction 1-5 IV A few Selected Audit Paras – Category wise 6-19

SECTION - II

STATEMENT

No.

DESCRIPTION OF STATEMENTS FOR THE

YEAR 2006-07 OF

ZILLA GRANDHALAYA SAMSTHAS (ZGS)

PAGE

No.

1. Status of Audit of ZGS (District wise). 20

2. 1. Receipts and Payments of ZGS (District wise). 21

2. Receipts and Payments of ZGS with break up

(Receipts Heads). 22

3. Receipts and Payments of ZGS with break up

(Payments Heads). 23

3. 1. Consolidated Audit Objections raised (Dist wise)

in ZGS for the year 2007-08. 24

2. Consolidated Audit Objections raised (Category

wise) in ZGS for the year 2007-08. 25

3(1) Consolidated Audit Objections raised Dist and

Category wise in ZGS for the year 2007-08. 26





i

PREFACE

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 Zilla Grandhalaya Samsthas, 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 Zilla Grandhalaya Samsthas 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 Zilla Grandhalaya Samsthas are being approved by the Dist. Audit Officers (DAO) and Surcharge Certificates are being issued by the Regional Deputy Directors (RDD).

Institution wise audit reports containing various audit objections are issued to the Executive Authorities of the concerned ZGS for follow up action i.e., rectification of defects pointed out in the audit reports and to submit approved replies to the Audit Report after approval by the General Body.

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 2007-08 and also the arrears were audited by the Director of State Audit during the year 2008-09 is submitted.

ii

OVER VIEW During the year under report, the Director completed the Audit of all the 23

Zilla Grandhalaya Samsthas including City Grandhalaya Samstha. AUDITED AMOUNTS:

The total Receipts and Payments of all the local authorities put together for the year 2007-08 were Rs. 72.10 Crores and Rs.61.75 Crores respectively. AUDIT OBJECTIONS:

Various irregularities noticed in audit are broadly classified into 19 categories as detailed below:

1. Variation in Account Figures 2. Excess Utilisation of Grants / Funds 3. Diversion of Funds / Grants 4. Non-utilistion of Grants before lapsable date 5. Mis-utilisation of Grants / Funds 6. Non- utilization of Ear-marked funds 7. Non-collection of dues 8. Advances Pending Adjustment 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. D.D/Cheques received but not realied within time

A total number of 358 audit objections involving an amount of Rs.22.93 Crores were raised during the year. The category wise and Zilla Grandhalaya Samstha wise number of audit objections raised during the year are shown in Statements from 3 (1) to 3 (3) appended to the report.

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 Assistant Audit Officer, District Audit officer and Regional Deputy Director are authorised to attend the settlement of audit objections. The audit report contains the details about number of audit objections pending settlement at the close of the audit.

The audit paras selected for inclusion in the Consolidated Audit and Review

Report give a glimpse of financial administration in the Zilla Grandhalaya Samsthas. For details, individual audit reports are to be referred.

iii

SECTION - I

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2007-08

SECTION – I

INTRODUCTION 1.1 Under the State Audit Act, 1989 the Director 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.

1.2 The Department has got offices in all the districts, the District Audit Officer, State Audit being the head at the district level.

1.3 The Department conducts post audit of the Local authorities and Audit Reports consisting of defects noticed in audit are issued to the Secretary of the Zilla Grandhalaya Samstha 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 2.1 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 Zilla Grandhalaya Samsthas.

Whether library Cess collected by the Zilla Grandhalaya Samasthas was properly accounted for with full details in the books of accounts of the Zilla Grandhalaya Samstha 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 Zilla Grandhalaya Samstha 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 for Zilla Grandhalaya Samstha under the A.P. Public Libraries Act 1960 / Rules.

1

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.

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 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.,

3.2 The receipts and Payments are inclusive of the grants received from Government during the year 2007-08 by the Zilla Grandhalaya Samsthas. The various Grants received by Zilla Grandhalaya Samsthas are detailed in Statement No. from 3.

3.3 The Pie chart of propositional Percentages of Receipts and Payments of Zilla Grandhalaya Samsthas during the year 2007-08 is placed below.

PIE CHART OF ZGS RECIEPTS FOR 2007-08

28%

36%

25%

0%

0%

0%

0%

3%

6% 2%

1 LIBRARY CESS

2 SALARY GRANT

3 PENSION GRANT

4 CONTINGENTGRANT5 SALE OF OLDNEWS PAPERS6 MEMBERSHIPDEPOSITS7 SECURITYDEPOSITS8 OTHER DEPOSITS

9 OTHER RECIEPTS

10 ADVANCESRECOVERABLE

2

3.4 The bulk of receipts came from other receipts (37%) followed by Library cess (32%)

PIE CHART OF PAYMENTS OF ZGS FOR 2007-08

6%

42%

21%3%

1%

0%

0%

2%

6%

1%

8%

0%

10%

1 COST OF BOOKS&PDLS

2 SALARIES

3 PENSIONS

4 EXPENDITUREFROM CONTINGENT

5 T.A&L.T.C

6 MEMBERSHIPDEPOSITS

7 SECURITYDEPOSITSREFUNDED8 OTHER DEPOSITSREFUNDED

9 OTHERADMN.EXPENDITURE

3.5 The bulk payments are for other deposits refunded (25%) followed by others (13%). The Development expenditure is only 2% on cost of books purchases.

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 Salary 2213.43 2273.66 60.23 2 Pension 1641.01 1205.58 - 3 Contingent 112.30 92.63 - 4 Others 301.08 235.35 -

3.7 This shows the Zilla Grandhalaya Samsthas in the State are eating away Revenue and Capital funds on Establishment and Administration in preference to Development Expenditure. The State Administration of Libraries may have to find out ways and means to self suffiency in generation of internal resources and reduce external commitments

3

STATUS OF AUDIT

4.1 The audit of all the Zilla Grandhalaya Samsthas / City Grandhalaya Samsthas up to the year 2007-08 was conducted in the year.

4.2 The Department has conducted the audit of the receipts amounting to Rs. 7210.89 lakhs and expenditure of Rs. 6175.84 lakhs 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 2007-08 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.

Bulk of objections is raised on Non-remittance of Deductions / Recoveries from vouchers / Pay Bills / Contingent Bills and this constitutes 56.45%. This is followed by Non collection of dues.

5.1 A total number of 358 audit objections involving an amount of Rs.2293.02 lakhs were raised in the audit of the Zilla Grandhalaya Samsthas during the year under report.

5.2 A Consolidated Statement showing the number of objections raised, amount involved with Zilla Grandhalaya Samstha wise break-up is annexed vide Statement No.3

5.3 CATEGORISATION OF AUDIT OBJECTIONS The various audit objections are classified into 19 categories as detailed below.

1. Variation in Account Figures 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 7. Non-collection of dues 8. Advances Pending Adjustment 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

4

16. Pendency of Utilization Certificates 17. Surcharge certificates-Recovery pending 18. Others 19. D.D/Cheques received but not realized within time

5.4 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)

5.5 Gist of some of the selected audit objections pertaining to the year under report is enumerated below:

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED

(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2007-08

Rs. In lakhs. Sl. No. Name of the Category No. Amount %

1 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 9 1294.46

56.45 2 Non-collection of dues 14 250.93 10.94 3 Violation of Rules 92 232.09 10.12 4 Non Production of Records 56 207.50 9.05 5 Excess Utilization of Grants / Funds 29 176.37 7.69 6 Diversion of Grants / Funds 10 61.13 2.67 7 Pendency of Utilization Certificates 12 22.66 0.99 8 Others 58 21.55 0.94

9 Non-utilization of Grants before the lapsable date 5 18.64

0.81 10 Excess Payments 46 3.52 0.15 11 Mis-appropriations 9 2.34 0.10 12 Advances Pending Adjustment 9 1.29 0.06

13 Instances of cases of unaccounted for Cash / Stores 1 0.29

0.01 14 Wasteful Expenditure 1 0.25 0.01 15 Variation in Account Figures 7 0.00 0.00 16 Surcharge-Certificates – Recovery pending 0 0.00 0.00 17 Mis-utilisation of Grants / Funds 0 0.00 0.00

18 Non-utilization of Earmarked funds 0 0.00 0.00

19 D.D. Cheques received but not realized with in time 0 0.00 0.00

Total: 358 2293.02 100

5

AUDIT PARAS

1. VARIATION IN ACCOUNT FIGURES

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 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 by 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 addition or subtraction is being done in the Reconciliation by the D.DO to arrive at the balance actually available in the S.T. Pass Book. Wrong Totaling of Credits and debits either by D.D.O of 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. 3 (3) 1 of Variation in account figures is appended to the Report from which it could be seen that Non-reconciliation was pointed out in 7 audit paras.


During the course of audit of Zilla Grandhalaya Samasthas in the state for

the year 2007-08, it is noticed that excess expenditure incurred than the Budget provision. Such expenditure needs to be regulated. The state Government releases grant-in-aid to Local Bodies to meet expenditure on contingency items like T.A., stationary, honorarium to elected representatives etc. It was noticed during the audit that the executive authorities of Local Bodies and institutions 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 Utilization of Grants/Funds is

appended to the Report from which it could be seen that an amount of Rs. 176.37 lakhs was pointed out in 29 audit paras

3. DIVERSION OF THE FUNDS Zilla Grandhalaya Samasthas are empowered to levy and collect Library fee. All

the monies received by the Zilla Grandhalaya Samasthas form part of their general funds and they can be utilized for the purposes prescribed under the Act / Rules. It was noticed in audit that in certain Zilla Grandhalaya Samasthas funds were utilized for other than the permitted purposes. However, specific grants received should be utilized for the purpose

6

for which the grant is released. It is observed that Zilla Grandhalaya Samastha funds were diverted in some cases for payment of pension without the sanction of Government.

A statement of 10 audit objections involving Rs. 61.13 lakhs is annexed to this

Report. Such cases noticed is appended to the Report in Statement No. 3 (3) 1.

3.1 GRANDHALAYA SAMSTHAS - CITY GRANDALAYA SAMSTHA, HYDERABAD - DIVERSION OF THE FUNDS – IRREGULAR

As pointed out in audit report for the year 2006-07, an amount of Rs. 80,

00,700/- was transferred to the pension fund from library cess fund which needs reimbursement An amount of Rs. 100, 00,000/- was transferred to general fund from library cess fund during the year which needs reimbursement. An amount of Rs.32,00,000/- was transferred to the pension fund account from the library funds during the year which needs reimbursement

(Para No. 7 of A. report on the accounts of City Grandhalaya samstha, Hyderabad)

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

Government release special grants to the Zilla Grandhalaya Samasthas for implementing specific schemes. These grants are to be utilised 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 Funds before Lapsable Date is appended to the Report from which it could be seen that an amount of Rs. 18.64 lakhs was pointed out in 5 audit paras

5. MIS-UTILISATION OF GRANT / FUNDS NIL

6. NON-UTILISATION OF EARMARKED FUNDS

NIL

7


On verification of revenue collections in Zilla Grandhalaya Samasthas, huge amounts have been noticed to be pending realization for long periods and allowed to become barred by limitation of time. No appropriate action seemed 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.

Consolidated Statement showing details of Non-Collection of Dues is Annexed to the Report vide Statement No. 3 (3) 2 from which it can be seen that 14 Audit Objections involving an amount of Rs. 250.93 lakhs were raised in the Audit Reports for the year.


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 and 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.

During the audit for the year 2007-08, 9 audit objections covering an amount

of Rs. 1.29 lakhs raised are shown in Statement No.3 (3) 2 annexed to this report.


It was noticed in audit of the Zilla Grandhalaya Samasthas that in some cases the Rules, Government instructions for incurring the expenditure from the funds of the Zilla Grandhalaya Samasthas were violated either due to negligence or ignorance. Certain times, the funds of the Zilla Grandhalaya Samasthas were utilised for purposes other than the permitted ones under the Act / Rules. It was also noticed that in few cases Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected in the relevant audit reports.

92 audit objections involving an amount of Rs. 232.09 lakhs were raised in the relevant Audit Reports as shown in Statement No. 3 (3) 2 annexed to the Report.

8

9.1 LIBRARY CESS – NOT REMITTED BY MUNICIPAL COUNCILS – IRREGUALR.

As per the instructions issued under Section 18 of Andhra Pradesh public

Libraries Act, 1960 and GO.Ms.No.391/Education dt.23.10.1994 all Local bodies have to remit 8 paise from out of every rupee of property Tax collected towards library cess. But no municipal council in the District has remitted its share of Library cess during the year 2007-08 which is highly irregular. Govt vide GO.Ms.No.409, Education, dt.8-11-94 have specially constituted a committee headed by the Joint Collector to review the collection of library cess. But no such action has been taken is this regard for remittance of the said cess by the Municipalities.

(Para No.16 on the accounts of Z.G.S. Ongole for the year 2007-08). 9.2 OLD NEWS PAPERS AND MAGAZINES NOT DISPOSED OFF - SALE

PROCEEDSNOT REALISED.

During the course of audit, it is noticed that an amount of Rs.5,41,403/- was drawn and paid towards the cost of purchase of news Papers and periodicals for the use of Branch libraries in the district during the year.The period of retention of news papers is one year i.e 1st January to 31st December, after which the accumulation would need to be disposed off through public auction not later than 30th June every year.In spite of above, the old news papers were not disposed and sale proceeds not realized to the Library funds which is irregular.

( Para No.9 of The A.R. On The A/c Of Z.G. S., Adilabad For 2007-08.)

9.3 EARNED LEAVE CREDITED WITHOUT DEDUCTING 1/10th OF THE E.O.L.

PERIOD – IRREGULAR

On verification of Pay bills and Service registers of the Zilla Grandhalaya Samstha, Eluru it was noticed that Smt. T.Jhansi Rani, Librarian, Branch Library (W) Eluru and Sri S.Satyanarayana, Record Asst, Branch Library, Gollalakoduru were sanctioned E O L for 149 and 49 days respectively and when the Earned leave was credited to their account, it was credited without deducting 1/10th of the E O L period resulting in excess credit of earned leave credited to each individuals which is irregular and needs to be revised and the payments made are to be recovered.

( Para No.11 on the accounts of Z.G.S. Eluru, West Godavari Dis. for the year 2007-08)

9

9.4 DRAWL OF DEARNESS RELIEF ON FAMILY PENSION AND ALLOWANCE ON PAY BY COMPOSIONATE APPOINTEES- IRREGUALR – Rs.1,04,411/-

Smt. S.Nageswaramma, Smt Ch.Sujatha and Sri L.Prabhakar were drawing

family pension and they were also appointed as librarians on compassionate grounds and on verification of pay bills and pension vouchers it was noticed that these employees were claiming both dearness allowance on basic pay of salary and dearness relief on the basic Family pension which is irregular and contrary to the instructions issued vide G.O.Ms.No.125 F & P ( F.N. – Pen – 1) Dept. dated 1-9-2000 where the pensioner cannot enjoy two dearness relief simultaneously. The amount drawn irregularly to the extent of Rs 104411/- needs to be recovered.

( Para no.6 on the accounts of Z.G.S., Nellore for the year 2007-08)

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. The deductions normally made from work bills / pay bills that are to be remitted to Government account are

These defects noticed were pointed out in the Audit Reports. 9 such cases noticed involving an amount of Rs. 1294.46 lakhs are shown in Statement No. 3 (3) 2. Some of them are as shown below.

10.1 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.




Amount Collected

Amount Remitted


Para No.

Zilla Grandhalaya Samastha 1 ZGS, Srikakulam 1660 0 1660 15 Total: 1660 0 1660

10

10.2 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. Concerned Drawing and Disbursing Officer 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.

One such case is shown below.



Amount Collected

Amount Remitted


Para No.

Zilla Grandhalaya Samastha 1 ZGS, Adilabad 300 0 300 11 Total: 300 0 300


The Zilla Grandhalaya Samasthas have to maintain effective financial management skills and accountability practices.

A Consolidated Statement No.3 (3) 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 207.50 lakhs was pointed out in 56 audit paras

11.1 PAID VOUCHERS NOT PRODUCED- IRREGULAR- RS.1255541/-

During audit scrutiny on the accounts of Zilla Grangdhalaya Samsthas, Eluru, West Godavari District the paid vouchers in support of the expenditure incurred of Rs.1255541 towards contingencies and the sub vouchers for the expenditure incurred were not produced to audit for verification. As such the correctness of the expenditure incurred could not be verified in audit and the same is held under objection. The executive authority would need to produce the paid vouchers along with the sub vouchers to audit immediately.

(Para no. 14 of the A.R for the year 2007-08 of ZGS Elur, W.Godavari Dist.)

11

11.2 SERVICE REGISTERS/ RECORDS / REGISTERS / FILES NOT PRODUCED:

During the audit scrutiny for the year 2007-08 it was noticed that expenditure of an aggregate amount of Rs. 2029669/- was incurred as detailed below. But the connected service Registers,files registers etc., were not produced for verification in audit. In the absence of the same the correctness of the expenditure incurred could not be certified in audit and as such the same is held under objection. The executive authority would need to produce the connected records to audit immediately.

Sl. No.

Name of the Z.G.S & Dist.,


Amount Rs.

Para No. of Audit Report

Cash book, Stock Register, Acquaintance

27206

17

Tender files, Vouchers, Stock Register

1876955 18

1

Eluru, W.G.

Service Registers 125508 19 2 Khamammam Demand Register 0 13 Total: 2029669

12. MISAPPROPRIATIONS

Cases of misappropriation of money noticed in audit were pointed out in the audit reports concerned.

A consolidated statement of misappropriations noticed in audit is annexed vide statement No.3 (3) 2. A total no. of 9 cases involving an amount of Rs.2.34 lakhs were pointed out in the relevant audit reports.

13. EXCESS PAYMENTS

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 statement showing 46 audit objections involving an amount of Rs.3.52 lakhs is appended in Statement No. 3 (3) 2. A few cases of excess Payments are mentioned below.

12

13.1 ZILLA GRANDHALAYA SAMSTAS, GUNTUR - FAMILY PLANNING INCENTIVE INCREMENT – SANCTIONED – IRREGULAR – EXCESS AMOUNT NEEDS RECOVERY

As per clarification issued in Govt. Memo.No.1943/32/A1/PC-1/2006, Dt:03.03.2006, the employees are not eligible for sanction of family planning incentive increment on or after 01.07.1998. The family planning incentive increment was sanctioned to the following employees in violation of Government rules need to be recovered from the employees concerned.

Sl No

Name of the Employee Rate of F.P.I/C

Date of Sanction

Excess payment

1 Sri S.Venkata,Attender B.L.Chilakaluripeta

60 11-12-1998 to 31-3-2008

60X111=6660

2 Sri R.Srinivasa Rao, Attender, B.L.Santhagudipadu

60 1-10-1998 to 31-3-08

60X114=6840

Total: 13500 (para No.(11) of Audit Report on the Accounts of Zilla Grandhalaya Samstas Guntur

District for the year 2007-08 ) 13.2. Z.G.S. GUNTUR - PENSION – ENHANCED FAMILY PENSION – NOT

REDUCED AFTER ATTAINING THE AGE OF 65 YEARS OF PENSIONER – EXCESS PAYMENT – Rs. 35439.00

In the progs Rc.No.24-C/99, Dt.13-7-2000, the chairman, Zilla Grandhalaya

Samstha, Guntur, sanctioned revised pensionary benefits as detailed below.

1. Superannuation pension Rs. 2575/- w.e.f. 1-6-99

2. Retirement Gratuity Rs. 84975/-

3. Enhanced Family pension Rs. 2575/- for first 7 years from the day following the date of death of the pensioner or till 6-5-2004 whichever is earlier and normal family pension @ Rs.1545/- thereafter.

Sri P.Subbaiah, Retired Attender died on 17-4-2002, the family pension

paid from 18-4-2002. The date of birth of the pensioner is 7-5-1939,she is eligible for enhanced family pension @Rs.2575/- p.m. upto 6-5-2004 (i.e. till he attains 65 years of age ) and thereafter, Normal Family pension @ Rs.1545/- p.m. with effect from 7-5-2004 onwards.The family pension was paid @ Rs. 2575/- p.m. from 6-5-2004 to 31-3-2006. The revised family pension of the family pensioners to be fixed @Rs.3767/- w.e.f 1-7-2003 in Revised scale of pay, 2005 and she is also eligible for reduced family pension in Revised Scale of pay in 2005 @ Rs. 2261 with effect from 7-5-04.She was already paid family pension @ Rs.2575/-(plus) + Dearness relief (old scale) from 1-4-2005 to 31-8-2006 instead of Rs. 2261 + Dearness relief (new scale). She was in receipt of family pension in old scale @ Rs.2575/- + Dearness relief instead of Rs. 1545 + DR from 7-5-

13

2004 to 31-3-2005. Hence the excess payment of Rs.35439/- as worked out below would need to be recovered from the persons responsible.

To be Drawn Already Drawn Month Pensio DA Tota Pensio DA Total

Difference

Month (D/M) Total

7-5-04 to 1545 492 2037 2575 821 3396 1359 25/31 10966/ 1545 493 2038 2575 821 3396 1359 1M 13597/04 to 1545 531 2076 2575 885 3460 1384 6M 83041/05 to 2/05 1545 569 2114 2575 948 3523 1409 2M 28183/05 1545 569 2245 2575 948 3742 1497 1M 14974/05 to 6/05 2261 170 2431 2575 648 3742 1311 3M 39337/05 to 2261 256 2517 2575 948 3742 1225 6M 73501/06 to 6/06 2261 319 2580 2575 948 3742 1162 6M 69727/06 to 8/06 2261 426 2687 2575 948 3742 1055 2M 2110

Total: 3543

(Para No.12 of Audit Report on the Accounts of Zilla Grandhalaya Samstas, Guntur District for the year 2007-08 )

13.3 ZILLA GRANDHALAYA SAMSTA, NELLORE DISTRICT - CITY

COMPENSATORY ALLOWANCE – EXCESS RATE CLAIMED – NEEDS RECOVERY – Rs: 5800-00

As per GO (P) No.215 Finance (PC-1) dept dated 30-8-2005 city compensatory

allowance was sanctioned to the Nellore city as detailed below.

Sl.No Pay range Amount of C.C.A

1

Below Rs:4825/- 50/-

2

Rs:4825 to Rs:7769 60/-

3

Rs:7770 to Rs: 10564 70/-

4

Rs: 10565 and above 80/-

. But contrary to the instructions, the Z.G.S staff working in the Nellore city was

drawing higher rates of CCA from 1-8-05 to till the date. Consequently the excess amount of Rs:5800/- paid to the staff.

(Para No.21 of Audit Report on the Accounts of Zilla Grandhalaya Samsta, Nellore District for the year 2007-08 )

14

13.4 ZILLA GRANDHAYALA SAMSTAS, GUNTUR DISTRICT - Sri K.NARAYANA RAO, RETIRED LIBRARIAN - ENCASHMENT OF EARNED LEAVE - EXCESS PAYMENT DUE TO INCORRECT EARNED LEAVE ACCOUNT - Rs.9225/-

In Vr.No.562/5-9-2007, an amount of Rs.197278 was paid to Sri K.Narayana

Rao, retired Librarian, towards encashment of earned leave for 278 days. The individual was retired from service on the A.N. of 31-8-2007. The employee was having 260 days of Earned Leave as on 30-6-2007. 18 days of Earned Leave was credited for the period from 1-7-07 to 31-8-07, instead of 5 days, thus excess credit of 13 days amounting to Rs.9225/- paid in excess.

Encashment of E.L., paid for 278 days Rs.197278 Excess payment made for 13 days = Rs. 197278X13/278 = Rs. 9225

Similarly, in W. Godavari district Sri Ch. V.V. Satyanarayana, Sr. Asst and Sri

Bh. Satyanarayana Raju, Librarian was given EL credit of 275 days instead of 260 each. Thus it resulted in an excess payment of Rs. 10,765/- and 7,988/- respectively.

(para No.10, Audit Reports on the Accounts of Zilla Grandhalaya Samstas, Guntur District for the year 2007-08 ) (para No.22, Audit Reports on the Accounts of Zilla Grandhalaya Samstas, Kakina West Godavari District for the year 2007-08 )


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 ZGS 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 expenditures that were avoidable, extraordinary and lacked proper planning. Consolidated statement of Wasteful Expenditure incurred is annexed to the Report in Statement No. 3 (3) 2 from which it could be seen that an amount Rs 0.25 lakhs pointed out in 1 audit paras pointed out as Wasteful Expenditure..

15

14.1 ZILLA GRANDHALAYA SAMASTHAS - EXPENDITURE INCURRED FOR DECORATION OF CHAIRMEN CHAMBER – PROVISION OF THE COMPETENT AUTHORITY – NOT POINTED OUT – WASTEFUL EXPENDITURE - RS.25000.00.

In the following vouchers an amount of Rs.25000.00 was drawn and incurred towards decoration charges of chamber of Chairmen District Library, Mahabubnagar But the permission of the competent authority was not obtained to incur such expenditure. Further the necessity and provision was not pointed out in audit, the expenditure is wasteful and cannot be admitted in audit, and needs to be recovered from the person or persons responsible.

Vr.No. & Date Amount Rs. Details of expenditure

5149/8.11.07 5000

4428/7.2.08 2000

4431/23. .08 18000

TOTAL 25000

Particulars of bill is not clear

(Para No.8 of the Audit Report of ZGS, Mahabubnagar)

15. INSTANCES OF CASES OF UN- ACCOUNTED CASH/STORES

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. 3 (3) 3 is appended to the report from which it can be noticed that an amount of Rs 0.29 lakhs was pointed in 1 para was reported.


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 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 was not furnished to audit for certification and 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

16

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 No. 3 (3) 3 is appended to the report from which it can be noticed that 12 paras involving Rs.22.66 lakhs were reported. Such cases are reported in the Audit Reports of Zilla Grandhalaya Samsthas is shown in the statement appended herewith.

ZILLA GRANDHALAYA SAMSTHAS :


Amount in Lakhs Rs.

1 Khammam 02 9.402 Eluru 10 229.44 TOTAL 12 238.84

(para no. 68 of A.r. on the a/cs of Zilla Grandhalaya Samstha for 07-08.[W.G. District])

17 SURCHARGE CERTIFICATES RECOVERY PENDING

NIL

18. OTHERS

Other objections which were not fallen in the above categories are incorporated under this category. Such objections numbering 58 were raised for an amount of Rs.21.55 lakhs as detailed in Statement No. 3 (3) 3.

18.1 LIBRARY CESS COLLECTIONS NOT PROPERLY WATCHED AND OTIIER

DEFECTS:

A sum of Rs. 4,08,47.197=00 pending realization towards Library Cess from various Local Bodies i.e., Gram Panchayats, Municipalities by the end of 31-3-07. The information of the Library Cess collections made and remittance by each Local Body was not pointed out. According to Rule 18 of Andhra Pradesh, Public Libraries Rules the Library Cess shall be collected promptly by the Local Authorities mentioned in Sub-Section (2) of Section 20 of Andhra Pradesh, Public Libraries Act 1960 and the collection so made in a particular year be remitted in full by the said Local Authority to the Treasury AccountConcerned within a month from the date of collection as amended in G.O.:Ms.No.391, Education dated 28-10-1994. Library Cess ledger has not been maintained by the Zilla Grandhalaya Samstha. The Connected challans were not produced to audit for verification in support of the postings made in pass book & cash book.

17

As there is no proper maintenance of Library Cess demand duly arriving at the total collections with reference to the annual account, the purpose of maintenance of the register is defeated. Effective steps would need to be taken to realize the Library Cess pending since 1984-85 by addressing the Head of Departments concerned as required under Rule 18(2) of the rules and to improve the Financial Position. A statement showing the Demand Collection and balance was not prepared and produced to audit for verification.

In respect of the Municipal Councils all the Commissioners in the District are being reminded by the Secretary, Zilla Grandhalaya Samstha requesting to remit the cess collections. Effective steps would need to be taken to realize the Library Cess amount from the Municipalities besides the Library Cess due from Gram Panchayats and pointed out to audit.

Sl. No.

Name of the Institution Library cess due as on 31.3.08

Collection for the year 2007-08

Rs.

Balance

1 Eluru Municipality 2 Palakole Municipality 3 T. Plligudem Municipality 4 Nidadavole Municipality Register

not produced

5 Narsapuram Municipality 6 Bhimavaram Municipality 7 Kovvuru Municipality 8 Grampanchayats

14027516

Could not be arrived due to non-availability of demand

The library cess due for the year 2007-2008 was not prepared and demand not arrived by the Z.G.S authorities. Necessary action would need to be taken to obtain library cess dues for the year 2007-2008 from local authorities and fix the demand and collect accordingly.

(PARA NO.13 OF THE A.R. ON THE A/CS OF Z.G.S., ADILABAD FOR 2007-08)

18.2 CONTRIBUTION TOWARDS RAJARAM MOHAR ROY LIBRARY FUND - SENT TO DIRECTOR OF PUBLIC LIBRARIES ANDHRA PRADESH HYDERABAD FOR RELEASING MACHING GRANT FOR THE YEAR 2007-08 WITHOUT ANY PROPOSAL - Rs.2,00,000-00

Vr.No.1252/8/2007, Rs..2, 00,000-00 an amount of Rs.2,00,000-00 was drawn

and sent through Demand Draft in favour of Drawing and Disbursing Officer, A.P.Grandhalayala Parishad, Hyderabad towards the contribution to Raja Ram Mohan Roy Library to receive Matching grant for the year 2007-08.

18

During the course of the audit, it is noticed that, the Director of Public Libraries, Andhra Pradesh, Hyderabad has instructed the Secretary of Zilla Grandhalaya Samastha to send amount for contributing to the RRRL.F, along with proposals for matching grant which would be equal to the amount of contribution from the RRRL.F., Kolkatta vide Lr.No.33-E2/2007-01, dated 19-7-2007. But the Secretary, Zilla Grandhalaya Samastha, Adilabad has contributed the amount without sending any proposal for the requirement of R.R.RL.F. Grant the RRRL.F. Kolkatta. Without proposals for release of matching grant with details of the work or the project to be taken up with the funds, the Contribution remitted was rendered purposeless. Hence the entire amount is objected in Audit.

(PARA NO.13 OF THE A.R. ON THE A/CS OF Z.G.S., ADILABAD FOR 2007-08)

19. DEMAND DRAFTS/CHEQUES RFECEIVED BUT NOT REALISED WITHIN THE TIME

NIL

HYDERABAD DIRECTOR DATED: STATE AUDIT

A.P., HYDERABAD.

19

SECTION - II

ACCOUNTING STATEMENTS OF ZILLA GRANDHALAYA SAMSTHAS

STATEMENT No. 1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2007-08

Sl.No.



AUDIT COMPLETED AS ON 31-03-2007


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

20

STATEMENT No. 2 (1)STATEMENT OF CONSOLIDATED RECEIPTS AND

PAYMENTS DIST. WISE OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2007-08

Rs. In lakhs

Sl No.


1 Adilabad 196.56 162.28

2 Ananthapur 215.31 185.79

3 Chittoor 271.67 268.17


5 Guntur 433.22 425.18

6 Kadapa 228.78 218.64

7 Karimnagar 286.14 233.18

8 Khammam 173.07 177.18

9 Krishna 564.38 411.00

10 Kurnool 261.44 191.38


12 Medak 190.85 139.58

13 Nalgonda 164.96 141.96

14 Nellore 296.73 217.57

15 Nizamabad 246.78 158.89

16 Prakasam 214.50 237.38

17 Ranga Reddy 1482.91 1284.09

18 Srikakulam 165.06 158.29


20 Vizianagaram 117.45 120.28

21 Warangal 311.08 215.27

22 West Godavari 364.94 308.43

TOTAL: 7210.89 6175.84

21

STATEMENT No. 2 (2) STATEMENT OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2007-08(RECEIPT HEADS)

Rs. In lakhs

Sl. No.


LIBRARY CESS

SALARY GRANT

PENSION GRANT

CONTINGENT GRANT

SALE OF OLD NEWS

PAPERS

MEMBERSHIP

DEPOSITS

SECURITY DEPOSITS

OTHER DEPOSITS

OTHER RECEIPTS

ADVANCES RECOVERA

BLETOTAL

1 Adilabad 39.81 71.24 52.95 0.00 0.16 0.33 0.00 0.00 28.68 3.39 196.562 Ananthapur 52.26 90.94 63.37 0.00 0.48 0.48 0.00 0.00 7.07 0.71 215.313 Chittoor 72.43 83.88 40.32 0.00 0.70 0.35 0.04 0.00 73.09 0.86 271.674 East Godavari 120.29 140.61 198.31 0.00 1.11 1.22 0.00 0.12 0.63 2.54 464.835 Guntur 131.03 158.63 134.41 0.00 0.13 1.54 0.00 0.00 7.48 0.00 433.226 Kadapa 12.05 95.35 113.71 6.23 0.29 0.63 0.00 0.00 0.49 0.03 228.787 Karimnagar 129.15 81.92 45.06 2.00 0.32 1.05 0.30 0.00 13.40 12.94 286.148 Khammam 28.49 95.03 39.39 0.00 0.46 0.69 0.00 0.66 1.17 7.18 173.079 Krishna 156.09 188.25 196.92 0.00 0.02 1.05 2.60 0.00 16.64 2.81 564.38

10 Kurnool 13.12 115.87 102.71 0.00 0.67 0.29 0.01 0.00 28.77 0.00 261.4411 Mahaboobnagar 44.18 165.20 32.89 0.49 0.60 0.00 0.00 0.00 2.20 13.61 259.1712 Medak 11.58 78.90 38.08 0.00 0.65 0.77 0.05 56.38 3.07 1.37 190.8513 Nalgonda 64.77 84.00 13.70 0.00 0.03 0.00 0.00 0.91 1.29 0.26 164.9614 Nellore 47.21 135.78 80.50 3.64 0.71 0.00 0.07 0.52 0.31 27.99 296.7315 Nizamabad 75.03 100.00 53.22 0.00 0.35 0.85 0.04 14.04 5.13 -1.88 246.7816 Prakasam 52.58 63.12 62.92 0.00 0.03 0.00 0.01 0.29 34.81 0.74 214.5017 Ranga Reddy 552.93 405.83 203.61 0.00 4.00 1.91 0.73 104.96 201.07 7.87 1482.9118 Srikakulam 22.82 60.52 52.06 0.00 0.71 0.45 15.06 11.24 2.20 0.00 165.0619 Visakhapatnam 80.20 101.76 80.64 0.54 4.12 1.73 2.05 0.55 1.67 27.80 301.0620 Vizianagaram 13.53 47.76 38.80 0.00 0.91 0.25 0.00 0.03 15.47 0.70 117.4521 Warangal 167.62 71.45 57.14 0.00 0.00 0.00 0.00 11.49 3.38 0.00 311.0822 West Godavari 140.28 116.44 94.20 8.00 0.71 0.73 0.10 0.57 2.01 1.90 364.94

TOTAL: 2027.45 2552.48 1794.91 20.90 17.16 14.32 21.06 201.76 450.03 110.82 7210.89

22

STATEMENT No. 2 (3)STATEMENT OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2007-08(PAYMENT HEADS)

Rs. In lakhs

Sl. No.


COST OF BOOKS &

PDLSSALARIES PENSIONS

EXPENDITURE FROM

CONTINGENT

TA & LTC

MEMBER-SHIP

DEPOSITS

SECURITY DEPOSITS

REFUNDED

OTHER DEPOSITS

REFUNDED

OTHER ADMN.

EXPENDITURE

ADVANCES RECOVERAB

LE

COST OF BUILDINGS

INVESTMENTS OTHERS TOTAL


TOTAL: 387.91 2540.66 1283.35 185.59 45.94 2.35 1.49 117.90 368.15 86.08 510.16 8.72 637.54 6175.84

23

STATEMENT 3 (1)

STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED (DIST. WISE) FOR THE YEAR 2007-08

Rs. In lakhs.Sl. No. NAME OF THE DISTRICT No. AMOUNT

1 Adilabad 11 25.08


3 Chittoor 5 70.15


5 Guntur 13 38.66

6 Kadapa 16 7.71

7 Karimnagar 4 0.43

8 Khammam 16 23.31

9 Krishna 16 1299.02

10 Kurnool 0 0.00


12 Medak 4 58.29

13 Nalgonda 11 8.50

14 Nellore 27 5.35

15 Nizamabad 27 307.90

16 Prakasam 21 0.60





21 Warangal 13 40.59


TOTAL 358 2293.02

24

STATEMENT No. 3 (2)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED IN

RESPECT OF ZILLA GRANDHALAYA SAMSTHA FOR THE YEAR 2007-08

Rs. In lakhs.




3 Deversion of Grants/ Funds 10 61.13

4 Non-utilisation of Grants before lapsable dates 5 18.64

5 Misutilisation of Grants/ Funds 0 0.00

6 Non utilisation of Earmarked Funds 0 0.00


8 Advances Pending Adjsutemnt 9 1.29


10 Non Remittance of deductions recoveries from work bills /Pay bills / contingent bills etc.

9 1294.46







17 Surcharges certificates recovery pending 0 0.00

18 Others 58 21.55

19 D.D/Cheques Received but not realized with in time 0 0.00

Total: 358 2293.02

25

STATEMENT 3 (3) 1

STATEMENT SHOWING THE DIST AND CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2007-08

Sl. No.



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. AMOUNT1 Adilabad 0 0.00 1 15.65 0 0.00 0 0.00 0 0.00 1 0.002 Ananthapur 0 0.00 2 0.00 0 0.00 0 0.00 0 0.00 0 0.003 Chittoor 0 0.00 2 70.15 0 0.00 0 0.00 0 0.00 0 0.004 East Godavari 0 0.00 2 0.00 0 0.00 0 0.00 1 0.00 1 0.005 Guntur 0 0.00 2 0.00 0 0.00 0 0.00 0 0.00 0 0.006 Kadapa 0 0.00 0 0.00 1 0.00 0 0.00 0 0.00 1 0.207 Karimnagar 1 0.00 0 0.00 0 0.00 0 0.00 1 0.42 0 0.008 Khammam 0 0.00 2 13.88 0 0.00 1 0.00 0 0.00 1 0.009 Krishna 0 0.00 0 0.00 0 0.00 1 0.00 2 1.14 0 0.0010 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0011 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0012 Medak 0 0.00 0 0.00 2 54.36 0 0.00 0 0.00 0 0.0013 Nalgonda 0 0.00 0 0.00 1 4.53 0 0.00 2 0.00 0 0.0014 Nellore 2 0.00 1 0.00 0 0.00 0 0.00 0 0.00 0 0.0015 Nizamabad 0 0.00 4 28.47 0 0.00 0 0.00 2 248.92 0 0.0016 Prakasam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0017 Ranga Reddy 3 0.00 3 31.14 3 2.24 1 0.96 2 0.00 0 0.0018 Srikakulam 0 0.00 1 0.00 0 0.00 1 0.00 1 0.00 1 1.0619 Visakhapatnam 0 0.00 4 0.89 3 0.00 1 17.68 3 0.45 1 0.0020 Vizianagaram 0 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.0021 Warangal 1 0.00 1 3.07 0 0.00 0 0.00 0 0.00 1 0.0322 West Godavari 0 0.00 3 13.12 0 0.00 0 0.00 0 0.00 1 0.00

TOTAL 7 0.00 29 176.37 10 61.13 5 18.64 14 250.93 9 1.29

Page 26

STATEMENT 3 (3) 2

STATEMENT SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2007-08

Sl. No.


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 AMOUNT1 Adilabad 3 0.00 2 0.10 1 0.00 0 0.00 0 0.00 0 0.002 Ananthapur 6 0.00 1 0.01 3 0.00 1 0.04 0 0.00 0 0.003 Chittoor 1 0.00 0 0.00 1 0.00 0 0.00 0 0.00 0 0.004 East Godavari 7 0.08 0 0.00 9 9.63 2 0.00 4 1.41 0 0.005 Guntur 4 0.00 0 0.00 1 38.00 0 0.00 5 0.66 0 0.006 Kadapa 6 0.00 0 0.00 1 7.00 0 0.00 1 0.04 0 0.007 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 1 0.01 0 0.008 Khammam 2 0.01 0 0.00 3 0.00 0 0.00 4 0.02 0 0.009 Krishna 5 3.85 1 1294.03 1 0.00 0 0.00 0 0.00 0 0.00

10 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0011 Mahaboobnagar 1 1.56 0 0.00 0 0.00 1 0.00 1 0.06 1 0.2512 Medak 0 0.00 0 0.00 0 0.00 1 0.15 0 0.00 0 0.0013 Nalgonda 3 0.91 0 0.00 3 3.06 0 0.00 0 0.00 0 0.0014 Nellore 8 1.22 0 0.00 6 3.92 0 0.00 4 0.21 0 0.0015 Nizamabad 7 19.87 0 0.00 3 1.03 0 0.00 2 0.13 0 0.0016 Prakasam 12 0.10 0 0.00 2 0.02 0 0.00 5 0.48 0 0.0017 Ranga Reddy 10 158.31 2 0.03 3 50.08 2 2.08 4 0.20 0 0.0018 Srikakulam 4 0.42 3 0.29 4 3.00 0 0.00 3 0.01 0 0.0019 Visakhapatnam 1 0.00 0 0.00 3 4.73 0 0.00 3 0.08 0 0.0020 Vizianagaram 4 8.37 0 0.00 1 2.26 0 0.00 4 0.15 0 0.0021 Warangal 4 37.37 0 0.00 1 0.00 2 0.07 3 0.05 0 0.0022 West Godavari 4 0.02 0 0.00 10 84.77 0 0.00 2 0.01 0 0.00

TOTAL 92 232.09 9 1294.46 56 207.50 9 2.34 46 3.52 1 0.25

Page 27

STATEMENT 3 (3) 3

STATEMENT SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2007-08

Sl. No.


INSTANCES OF CASES

UNACCOUNTED FOR CASH/STORES

PENDENCY OF UTILISATION

CERTIFICATES

SURCHARGE CERTIFICATE

RECOVERY PENDINGOTHERS TOTAL

NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT1 Adilabad 0 0.00 0 0.00 0 0.00 3 9.33 11 25.082 Ananthapur 0 0.00 0 0.00 0 0.00 6 0.00 19 0.053 Chittoor 0 0.00 1 0.00 0 0.00 0 0.00 5 70.154 East Godavari 0 0.00 0 0.00 0 0.00 1 0.00 27 11.125 Guntur 0 0.00 1 0.00 0 0.00 0 0.00 13 38.666 Kadapa 1 0.29 0 0.00 0 0.00 5 0.18 16 7.717 Karimnagar 0 0.00 0 0.00 0 0.00 1 0.00 4 0.438 Khammam 0 0.00 1 9.40 0 0.00 2 0.00 16 23.319 Krishna 0 0.00 2 0.00 0 0.00 4 0.00 16 1299.0210 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0011 Mahaboobnagar 0 0.00 0 0.00 0 0.00 5 0.01 9 1.8812 Medak 0 0.00 1 3.78 0 0.00 0 0.00 4 58.2913 Nalgonda 0 0.00 0 0.00 0 0.00 2 0.00 11 8.5014 Nellore 0 0.00 1 0.00 0 0.00 5 0.00 27 5.3515 Nizamabad 0 0.00 2 9.48 0 0.00 7 0.00 27 307.9016 Prakasam 0 0.00 0 0.00 0 0.00 2 0.00 21 0.6017 Ranga Reddy 0 0.00 0 0.00 0 0.00 5 8.94 38 253.9818 Srikakulam 0 0.00 1 0.00 0 0.00 5 0.03 24 4.8119 Visakhapatnam 0 0.00 0 0.00 0 0.00 3 3.06 22 26.8920 Vizianagaram 0 0.00 1 0.00 0 0.00 2 0.00 14 10.7821 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 13 40.5922 West Godavari 0 0.00 1 0.00 0 0.00 0 0.00 21 97.92

TOTAL 1 0.29 12 22.66 0 0.00 58 21.55 358 2293.02

Page 28

© DIRECTOR OF STATE AUDIT

A.P. HYDERABAD 2011

PUBLISHED BY THE DIRECTOR OF STATE AUDIT, A.P HYDERABAD AND PRINTED AT OM SAI GRAPHICS, NARAYANAGUDA, HYDERABAD .

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