Review of Audit Reports under SSA

(a) The audit Reports under SSA for the year 2010-11 submitted by State Implementation Society of each State have been reviewed in the Ministry. Discrepencies / deficiencies / irregularities noticed in the Audited Accounts / Audit Report and certain observations of concern made by the Auditors have been brought to the notice of the State Project Directors for taking remedial action. Some State Societies have sent their responses to the above letters but others are yet to respond.

(b) The World Bank have also reviewed these audit reports and identified the following common key issues which continue to recur in a large number of States year after year.

i.Non production of records for audit.

ii.Weaknesses in accounting and record keeping.

iii.Inadequate monitoring of UCs and advances.

iv.Audit of VECs and lack of trained accounts staff.

The above common findings may have the following impact on the programme:

Observation ImpactTransfer of funds from one level to another is treated as expenditure

No monitoring of end utilization of funds, expenditure reported is much higher than actual

Internal controls: irregular bank reconciliations, details of advance not maintained

Lower assurance on accuracy of financial information; higher risk of misappropriation of funds

Internal controls: non maintenance of required books of account, weak recording / monitoring of civil works

Inadequate financial information, weak monitoring resulting in sub-optimal outputs

State-wise key issues as identified by the Bank in the Audit Reports for the year 2010-11 are being brought to the notice of Finance Controllers. They are requested to kindly look into these issues, address the same to ensure that the same do not recur in the current and subsequent years so that the SSA funds are used for the purposes intended with economy and efficiency.

Sarva Shiksha AbhiyanReview of Audit Report for 2010-11

Bihar contd…/-

Chattisgarh Contd…/-

Chattisgarh Contd…/-

Chattisgarh Contd…/-

Uttar Pradesh Contd…/-