1
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND REVIEW
REPORT ON THE ACCOUNTS OF
PANCHAYAT RAJ INSTITUTIONS,
MUNICIPAL CORPORATIONS,
MUNICIPALITIES,
AGRICULTURAL MARKET COMMITTEES
AND ZILLA GRANDHALAYA SAMSTHAS
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
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GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND REVIEW
REPORT ON THE ACCOUNTS OF
PANCHAYAT RAJ INSTITUTIONS,
MUNICIPAL CORPORATIONS,
MUNICIPALITIES,
AGRICULTURAL MARKET COMMITTEES
AND ZILLA GRANDHALAYA SAMSTHAS
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
4
5
The CONSOLIDATED AUDIT AND REVIEW REPORT for the year 2008-09
compiled in FIVE parts.
Part - I: PANCHAYAT RAJ INSTITUTIONS.
Part - II MUNICIPAL CORPORATIONS.
Part - III: MUNICIPALITIES.
Part – IV AGRICULTURAL MARKET COMMITTEES.
Part - V ZILLA GRANDHALAYA SAMSTHAS.
All parts are designed independently and comprehensively.
Part I deals with the Panchayat Raj Institutions and a few Selected Audit
Objections.. The connected statements are appended.
. Part II deals with the Municipal Corporations and a few Selected Audit
Objections. The connected statements are appended.
Part III deals with the Municipalities and a few Selected Audit Objections.
The connected statements are appended.
Part IV deals with the Agriculture Marking Committees and a few Selected
Audit Objections. The connected statements are appended.
Part V deals with the Zilla Grandhalaya Samasthas and a few Selected Audit
Objections. The connected statements are appended.
FOREWORD
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The State Audit Act, 1989 passed by the Legislature of Andhra Pradesh has
empowered the Director of State Audit to conduct the audit of accounts of Local
Bodies, which he was doing earlier also as per Government orders.
The Director, State Audit conducts post audit of all Local Bodies in the
subsequent financial year. The Director, State Audit (DSA) conducts the audit of
these Panchayat Raj Institutions through the District Audit Offices headed by the
District Audit Officer (DAO). The District Audit Officer is the District Administrative
Head of the Department. The Office of the AAO is known as Unit Office.
There are six Regional Offices in the State in each of the six zones headed by
Regional Deputy Director (RDD).
The Audit Reports of notified Gram Panchayats and Mandal Parisads are
approved by the DAO. The Audit Reports of non-notified Gram Panchayats are
approved by the Assistant Audit Officer. The Audit Reports of Zilla Parishads are
approved by the Regional Deputy Director, State Audit of the Zone concerned.
Institution wise audit reports containing various audit objections are issued to
the Executive Authorities of the concerned Local bodies for follow up action i.e.,
rectification of defects pointed out in the audit reports and to submit a approved
replies to the Audit Report after approval by the General Body of the authority
concerned.
Under the State Audit Act, the Director is vested with the power of
disallowing any item of the expenditure incurred contrary to the law and surcharge the
same on the person incurring or authorizing the incurring of such expenditure.
Under Section 11 of State Audit Act, 1989, the Director, State Audit is
required to submit annually a Consolidated Audit and Review Report on the accounts
of the Local Bodies to the Government for laying of such report on the table of the
Legislative Assembly/ Legislative Council.
The Annual Consolidated Audit and Review Report (Annual CARR) of PRIs
namely Zilla Parishads, Mandal Parishads, Gram Panchayats and also that of
Municipal Corporations, Municipalities, Agricultural Market Committees and Zilla
Grandhalaya Samasthas whose accounts for the year 2008-09 and also the arrears
were audited by the Director of State Audit during the year 2009-10 is submitted.
PREFACE
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During the year under the report the Director could audit some of the
arrears also a part from current as shown below:
Sl.
No. Name of the Institution
Current
Audit
Arrear
Audit Total
1. Zilla Parishads 22 0 22
2. Mandal Parishads 1090 0 1090
3. Gram Panchayats 20311 361 20672
4. Municipal Corporations 7 0 7
5 Municipal Councils 50 38 88
6. Agricultural Market Committees 311 0 311
7. Zilla Grandhalaya Samstas 23 0 23
Total: 21814 399 22213
AUDITED AMOUNTS:
The total Receipts and Payments of all the above institutions in the State for
the year 2008-09 were Rs. 6398.07 Crores and Rs. 6459.47 Crores respectively.
AUDIT OBJECTIONS:
Various irregularities noticed in the course of audit are being reported to
Executive Authorities under 19 categories as detailed below for easier facilitation in
taking follow up action:
1. Variation in Account Figures
2. Excess Utilisation of Grants
3. Diversion of Grants / Funds
4. Non-utilistion of Grants before lapsable date
5. Mis-utilisation of Grants / Funds
6. Non-utilistion of Earmarked Funds
7. Non-collection of dues
8. Advances Pending Adjustment
OVER VIEW
10
9. Violation of Rules
10. Non-remittance of Deductions / Recoveries from vouchers / Pay Bills
/ Contingent Bills
11. Non Production of records
12. Mis-appropriations
13. Excess payments
14. Wasteful Expenditure
15. Instances of cases of unaccounted cash / stores
16. Pendency of Utilisation Certificates
17. Surcharge Certificates Recovery Pending.
18. Others
19. DDs/Cheques received, but not realised within time.
A total number of 338135 audit objections involving an amount of Rs.1281.52
Crores were raised during the year. The category wise and institution wise number of
audit objections raised during the year are shown in Statements from 4(1) to 4(4)
appended respective institutional reports.
On receipt of replies to the defects pointed out in the earlier reports supported
by relevant records / documents, the audit objections were settled wherever the replies
were satisfactory. The DAOs and RDDs are authorized to attend the settlement of
audit objections. The Audit Reports contain the details of number of audit objections
pending settlement at the close of the audit.
The audit paras selected for inclusion in the Annual CARR give a
glimpse of financial administration in the Local Authorities. For institution wise
details respective audit reports are to be referred.
11
l. No. PARTICULARS PAGE No.
I Part I Panchayat Raj Institutions - Zilla Parishads 17-87
Panchayat Raj Institutions - Mandal Parishads 89-135
Panchayat Raj Institutions - Gram Panchayats 137-180
II Part II Municipal Corporations 185-246
III Part III Municipal Councils 250-328
IV Part IV Agriculture Market Committees 333-375
V Part V Zilla Grandhalaya Samasthas 381-410
CONTENTS
SS
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PART-I
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND
REVIEW REPORT ON THE
ACCOUNTS OF
PANCHAYAT RAJ INSTITUTIONS
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
14
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STATEMENT No.
DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF PRIs., FOR THE YEAR 2008-09
PAGE No.
I Introductions and a few selected audit objections of Zilla Parishads –
category wise 17-71
1 Consolidated Statement showing the Status of Audit of ZP 73 (1). Status of Audit of Zilla Parishads as on 31-3-2010 74
2 Statement of Consolidated Receipts & Payments of Zilla Parisahds for the year 2008-09
75
2(a). Statement of Consolidated fund wise Receipts of Zilla Parishads for the year 2008-09.
76
2.(b). Statement of Consolidated fund wise payments of Zilla Parishads for the year 2008-09.
77
3 Statement of Consolidated Grant released to Zilla Parishads and Expenditure incurred from the grants for the year 2008-09
78
3.(A) (1)&(2) Consolidated Statement of Grant (Receipts ) released to the Zilla Parishads for the year 2008-09
79-80
3(B)(1)&(2). Consolidated Statement of Payments made from the Grants by Zilla Parishads for the year 2008-09.
81-82
4 4 Statement showing Audit objections for the year 2008-09
(Dist Wise) 83
4. (1) Statement showing Audit objections raised (Category wise)
and amount involved for the year 2008-09. 84
4 (3)(1) to (3) Statement showing the number of audit objections
for the year 2008-09 (Dist-Categoty-Institution wise)
Grampanchayats.
85-87
II Introductions and a few selected audit objections of Mandal Parishads –
category wise 89-118
1 Consolidated Statement showing the Status of Audit of Mandal Parishads for the year 2008-09.
119
(1). Statement showing Status of Audit of Mandal Parishads as on 31-3-2010
120
2 Statement of Consolidated Receipts. 121
2(a). Statement of Consolidated fund wise Receipts of Mandal Parishads for the year 2008-09.
122
2.(b). Statement of Consolidated fund wise payments of Gram Panchayats for the year 2008-09.
123
3 Statement of Consolidated Receipts and Payments (Grants) of Mandal Parishads for the year 2008-09
125
3.(a)(1) to 3(a)(2) Consolidated Statement of Grants (receipts) to Mandal Parishads nts for the year 2008-09
126-127
3 (b)(1) to 3(b)(2). Consolidated Statement of Grants (payments) of Mandal Parishads for the year 2008-09.
128-129
4
4 Statement showing the number of Audit objections in Mandal
Parishads the year 2008-09(District Wise Consolidated
Figures)
130
4 CAT Statement showing the number of audit objections raised 131
CONTENTS
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(category wise) and amount involved in Mandal Parishads for
the year 2008-09.
4(1) to 4(4) Statement showing the Dist Wise and categoty wise
audit objections raised during the year 2008-09. 132-135
III Introductions and a few selected audit objections of Gram panchayats –
category wise 137-165
1 Consolidated Statement showing the Status of Audit. 167
(1). Status of Audit of Gram Panchayats as on 31-3-2010 168
2 Statement of Consolidated Receipts & Payments of Gram Panchayats for the year 2008-09
169
2(1). Statement of Consolidated Receipts of Gram panchayats for the year 2008-09 (Receipts Heads)
171
2.(2). Statement of Consolidated Expenditure of Gram Panchayats for the year 2008-09 (payments Heads).
172
3 Statement of Consolidated Grant wise Receipts and Payments Gram Panchayats for the year 2008-09
173
3.(1) Statement of Consolidated Grant Receipts of Government Grants for the year 2008-09
174
3(2). Statement of Consolidated Grant Payments of Gram Panchayats for the year 2008-09.
175
4 Statement showing the Number of Audit objections the year
2008-09 176
4 (a) Statement showing Audit objections raised (Category wise)
and amount involved for the year 2008-09. 177
4(1) to 4(3) Statement showing the number of audit objections
for the year 2008-09 (Dist-Categoty-Institution wise)
Grampanchayats.
178-180
17
ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON
THE ACCOUNTS OF ZILLA PARISHADs FOR THE YEAR 2008-09
INTRODUCTION
1.1 Under the A.P. State Audit Act, 1989 the Director of State Audit, Andhra
Pradesh is made in charge of the audit of the funds of the Panchayat Raj
Institutions as specified in the Schedule prescribed in the said Act.
1.2 The Department has got its offices located in all the Districts of Andhra
Pradesh where in the District Audit Officer; State Audit is the head at the
District Level.
1.3 The Department conducts post audit of the Panchayat Raj Institutions and
Audit Reports consisting of defects noticed in the audit are issued to the Chief
Executive Officer of the institutions concerned who has to take action for
rectifying the defects pointed out in the Audit Report.
1.4 Under the State Audit Act, the Director of State Audit, Andhra Pradesh is
vested with the power of disallowing any item of the expenditure incurred
contrary to the law and surcharge the same on the person incurring or
authorizing the incurring of such expenditure and may charge against any
person responsible there for, the amount of any deficiency, loss or unprofitable
out lay occasioned by the negligence or misconduct of that person or of any
such sum which ought to have been accounted for but is not brought into
account by that person and shall, in every such case, certify the amount due
from such person.
SCOPE OF AUDIT
2.1 The State Audit Department has been statutorily entrusted with the authority
to verify the following aspects during the course of post audit of the Panchayat
Raj Institutions, viz., Zilla Parishads.
a) Whether the taxes, fees etc., collected by the Panchayat Raj Institutions
were properly accounted for with full details in the books of accounts
of the body concerned.
b) Whether adequate care is taken up periodically to check up the funds
with the Treasury or Bank.
c) Whether the expenditure incurred was provided for in the Budget of
the Panchayat Raj Institutions concerned and duly sanctioned by the
competent authority under the Act / Rules or by any Executive
Instructions by the Government.
d) Whether the funds were utilized only for the permitted purposes
prescribed under the Act / Rules.
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e) Whether the procedure prescribed by the Government in incurring the
expenditure / payments made is properly followed and accounted for
with due classification in the books of accounts of the Panchayat Raj
Body.
f) Whether the required vouchers for the expenditure incurred were
maintained.
g) Whether grants received from the different sources were properly
accounted for and utilized for the purposes for which they were meant.
h) The Department also conducts propriety audit of the expenditure
incurred.
ZP Fund:
The ZP fund constitute different own and Grant Funds. The pattern of post audit of all
the constituents of ZP Fund is not uniform, though Annual Accounts of ZP contains
all such constituents. The position is submitted below.
# Constituent of ZP Fund Remarks on post audit
1 General Fund Post Audit is being conducted by the Director
of State Audit and the consolidated Report is
being placed on the table of Legislative
Assembly / Council. Salaries are being paid
through Treasuries under Grant of 010. Post
audit is not being reflected in the ZP Audit
Report.
2 Loan fund -Do-
3 Women & Child welfare fund -Do-
4 BRGF Grant -Do-
5 Central Finance Commission
Grants
-Do-
6 State Finance Commission Grants -Do-
7 Education Fund Only contingencies are being audited by the
State Audit Dept. Salaries are being paid
through Treasuries under Grant of 010. Post
audit is not being reflected in the ZP Audit
Report.
8 003 Engg Funds Being paid by the PAO. Post Audit is not being
reflected in ZP Audit Report.
9 MP LADs Audited by Charted Accountants
10 PMGSY Audited by Charted Accountants
11 RWS Being paid by the PAO. Post Audit is not being
reflected in ZP Audit Report.
12 NABARD Audited by Charted Accountants
13 Indiramma No post audit.
14 Minimum Needs Programme Being paid by the PAO. Post Audit is not being
reflected in ZP Audit Report.
15 Mahatma Gandhi NREGS Separate project organization. No Financial
audit.
16 APSDRF Separate audit by State Audit Dept.
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As per G.O.Ms.No. 60 Fin & plg. (FW.BG) Department, dated 30-03-2001,
the audit of the Engineering Funds of PRIs., were entrusted to the Pre-Audit officers,
works, of the respective districts WEF 30-03-2001. The Account General in letter
Sr.DAG/LBAA 2010-11/80, dated 25-10-2010, has clarified that the Establishment
and works vouchers of PR division are pre-audited by the PAO and the vouchers are
transmitted to the O/o the Accountant General for post audit and the LBAA is
regularly conducting the post audit of the above vouchers. Even though the audit of
the Engineering Bills are not being audited by this department from 2002-03 onwards
all the funds and grants received by the institution and expenditure made are
incorporated in the receipts and expenditure of the Zilla Parishads.
An internal audit wing is to be established under the control of CPR&RE, A.P.
Hyderabad to ensure functioning of internal accounting of checks and balances on
financial transactions. GAAP (Generally Accepted Accounting Practices) stipulate
existence of internal audit of major institutions.
As per standard instructions interest accrued on the Grant Funds should be
treated as add on grants and have to be used for the purpose for which grant is
released. These Grant Funds are merged into General Funds and the interest accrued
is not being apportioned to the respective Grants. It may be stated that the Prl.
Secretary to the Govt, PR Dept has agreed for the apportionment of interest accrued to
various Grants but orders have not been issued so far.
The items of income and expenditure for which the audit was not conducted
by this department is not included in the receipts and payments statement ie.,
statement (2 )and in the grant statement i.e. statement (3). The income and
expenditure shown is the audited figure only.
STATUS OF AUDIT
3. The audit of the following Panchayat Raj Institutions up to the year 2008-09
was conducted in the year.
Panchayat Raj Institutions No. of Years audited
i) Zilla Parishads : 22
RECEIPTS AND PAYMENTS (2008-09)
4.1 The Receipts and Payments are inclusive of the various grants received from
Central and State Governments during the year 2008-09 by the Zilla Parishads.
The details of gross Receipts including grants and Payments are shown in the
Statements No. 2(1) to 2(2) with reference to the Zilla Parishads, respectively.
The various Grants received by the Zilla Parishads are exclusively detailed in
Statement Nos. from 3 (1) to 3(2).
4.2.1 The aggregate Receipts & Payments of Zilla Parishads in the State during
the year are Rs.129179.59 lakhs and Rs.117784.20 lakhs respectively. These
figures are present in pie diagram (Chart – 1 and 2).
20
Chart – 1
45.58%
14.53%
1.39%
4.67%
24.02%
5.31%
0.16%
4.30%
0.02%
GENERAL FUND 45.58%
EDUCATION FUND 14.53%
SGRY 1.39%
OTHER PROGRAMES 4.67%
DEPOSITS 74.02%
ADVANCES 5.31%
LOANS 0.16%
BRGF 4.30%
PENSION FUND 0.02%
Name of the Fund Receipts % of
Receipts
General Fund 58875.47 45.58
Education Fund 18769.79 14.53
SGRY 1799.56 1.39
Other Programmes 6038.97 4.67
Deposits 31034.67 24.02
Advances 6864.10 5.31
Loans 211.97 0.16
BRGF 5560.85 4.30
Pension Fund 24.22 0.02
Total: 129179.59 99.98
21
Chart –2
PIE CHART PAYMENTS OF ZILLA PARISHADS FOR 2008-09
15.64%
1.68%
0.03%4.07%
36.34%
0.15%
17.41%
5.78%
18.90%
1 GENERAL FUND 36.34%
2 EDUCATION FUND 17.41%
3 OTHER PROGRAMES 15.64%
4 SGRY 1.68%
5 DEPOSITS 18.90%
6 ADVANCES 5.78%
7 LOANS 0.15%
8 BRGF 4.07%
9 PENSION FUND 0.03%
Name of the Fund Payments % of
Payments
General Fund 42805.34 36.34
Education Fund 20506.17 17.41
SGRY 18422.40 15.64
Other Programmes 1978.38 1.68
Deposits 22266.43 18.90
Advances 6802.63 5.78
Loans 173.47 0.15
BRGF 4792.19 4.07
Pension Fund 37.18 0.03
Total: 117784.20 100
22
4.3 . The pattern of Receipts Payments (Fund wise) of the Zilla Parishads for the year
2008-09 exhibited in the bar chart (chart – 3)
Chart - 3
RECIEPTS & PAYMENTS OF ZILLA PARISHADS
FOR 2008-09 (FUND WISE)
58
87
5.4
7
18
76
9.7
9
17
99
.56
60
38
.97
31
03
4.6
7
68
64
.10
21
1.9
7
55
60
.85
24
.22
42
80
5.3
4
20
50
6.1
7
18
42
2.4
19
78
.38
22
26
6.4
3
68
02
.63
17
3.4
7
47
92
.19
37
.18
GE
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FU
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1 2 3 4 5 6 7 8 9
RECIEPTS PAYMENTS
4.4. The pattern of Receipts Payments (Grant wise) of Zilla Parishads for the year
2008- 09 exhibited in the bar chart (chart – 4)
23
Chart-4
4.5 The General Fund occupied lion share in Zilla Parishads Fund at 27.10 %,
Loan Fund is insignificant. The Deposits fund share in receipts are 11.80 % as against
9.74 % share in payments
4.6 The Department has conducted the audit of the Receipts amounting to
Rs.129179.59 lakhs and Payments of Rs.117784.20 lakhs as detailed in the
StatementsNo.2(1)to2(2).
RECIEPTS & PAYMENTS OF ZILLA PARISHADS
FOR 2008-09 (GRANT WISE)
8664.8
4
17456.1
5
96.3
0 1949.7
2
28399.1
7
2276.3
5
77.3
4
40.8
5
31.4
5
1239.0
5
45.8
3
411.8
9
149.3
6
10.9
2
5560.8
5
18143.5
7
4711.2
1
18452.7
7
589.6
8
1856.1
5
13412.8
8
1266.8
1
93.2
9
46.5
4
79.5
7
1347.8
8
9.5 455.7
9
218.3
7.0
3
4792.1
9
19494.8
6
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
RECIEPTS PAYMENTS
24
4.7 The trend of the receipts and payments for the last 5 years is shown below.
Sl.
No. Year Receipts Payments
ratio or
receipts and
payment
Increase
in
receipts
Increase
in
payments
%
Receipts
YtY
%
Payments
YtY
1 2004-05 148524 147205 100:81
2 2005-06 121519 123714 100:108 27005 22.22 23491 18.99
3 2006.07 231584 133216 100:90 -110065 -47.53 -9502 -7.13
4 2007-08 146940 126375 100:100 84644 57.60 6841 5.41
5 2008-09 129180 117784 100:79 17760 13.75 8591 7.29
839712 716994
The above table indicates the fluctuation in increasing receipts and payments
i.e., ill economic condition of the institutions. In the year 2008-09 the
expenditure is higher than the receipts.
GRANTS POSITION
5.1 The Zilla Parishads are provided grants by the State / Central Governments to
implement the schemes entrusted to them and also for over all development of
the area under their jurisdiction. The Zilla Parishads have received the grants
as detailed below during the year 2008-09.
5.2 The grants Received by the Zilla Parishads have been enumerated below.
Z.P. Receipts %
Grants 84553.64 65.45
Non Grants 44625.95 34.55
Total: 129179.59 100
5.3 The Grants constitutes 65.45% of Receipts in respect of Zilla Parishads.
AUDIT OBJECTIONS
6.1 During the course of audit of these Zilla Parishads for the year 2008-09, the
defects noticed were already pointed out in the relevant Audit Reports, as
“Audit Objections” which were forwarded to the Chief Executive Authorities
concerned for further action at their end as per the procedure laid down under
the A.P. State Audit Act,1989.
6.2 A total number of 5617 audit objections involving an amount of Rs.38601.28
lakhs were raised in the audit of the Zilla Parishads during the year under
report.
6.3 A Consolidated Statement showing the number of objections raised, amount
involved with institution-wise break-up is annexed vide Statement No.4.
25
STATEMENT SHOWING INCIDENCE OF OBJECTIONS IN ZILLA
PARISHADS (2008-09)
Sl.
No. Name of the Category
No. of
Paras %
Amount
in Lakhs %
(1) (2) (3) (4) (5) (6)
1
Non remittance of deduction
recoveries from the work bills / pay
bills / contingent bills etc
1667 29.68 5464.19 14.16
2 Non Production of Records 1367 24.34 16284.98 42.19
3 Excess Payments 735 13.09 174.91 0.45
4 Violation of Rules 443 7.89 4498 17.32
5 Others ., 383 6.82 335.27 0.87
6 Advances pending adjustment 230 4.09 983.74 2.55
7 Non-collection of dues 161 2.87 305.97 0.79
8 Diversion of Grants / Funds 155 2.76 952 1.62
9 Instances of cases of unaccounted for
cash / stores 116 2.07 2235.75 5.79
10 Pendency of Utilisation Certificates 115 2.05 4327.49 11.21
11 Non-utilisation of Earmarked Funds 69 1.23 583.28 1.51
12 Variation in Account Figures 64 1.14 74.26 0.19
13 Non-utilisation of grants before the
lapsable date 37 0.66 198.63 0.51
14 Excess Utilisation of Grants / Funds 26 0.46 152.36 0.39
15 Wasteful Expenditure 23 0.41 6.44 0.02
16 Mis-utilisation of Grants / Funds 10 0.18 47.48 0.12
17 Misappropriations 12 0.21 117.41 0.30
18 Surcharge Certificates recovery
pending 4 0.07 0.00 0.00
19 D.D./Cheques received, but not
realized with in time. 0 0 0.00 0
Total: 5617 100 38601.28 100
6.6 The objections 5617, in Number and the amount involved Rs.38601.28 lakhs
were categorized and their category has been analyzed 29.68% No.of paras involved
and also 14.16% of amount involved pertains to the Non remittance of deduction
recoveries from the work bills / pay bills / contingent bills etc. The next slot goes to
Non Production of Records 24.34% which constitutes 42.19%. These two together
state that records are not properly kept by Zilla Parishads.
26
AUDIT-PARAS
Gist of some of the selected audit objections raised during the year 2008-09
under report is enumerated below:
1.VARIATION IN ACCOUNT FIGURES
According to the instructions contained in Government Memo No.
4657/Accts.I/70-I PR Department dated. 16-12-1970, Government Memos No.
1360/Accts.VII/71-1 of PR Department dated. 01.09.1971 and Government
Memo.No.1986/Accts.VI/71-3 of PR Department dated. 02.11.1977 reconciliation of
cashbook balances with the Treasury balances has to be done promptly and regularly
every month.
It was observed in audit that there are certain variations between the Account
Figures of Treasury and Cash Book like Opening Balance in the cash book of the
current year not tallying with the Closing Balance of the Cash Book of the previous
year. Balance of the Treasury Pass Book as per Cash Book are not tallying with the
actual Closing Balance in the Treasury Pass Book as on 31st March. This is happening
due to none crediting of Receipts in to the Treasury Pass Book by the Treasury
Authorities. Receipts credited in the cash book by remittance through Chalans are not
credited in the Treasury Pass Book by the Treasury Authorities. Debiting the cheques
issued by one D.D.O. to another D.D.O. by Treasury authorities. With out explaining
the differences of addition or subtraction are being done in the reconciliation by the
DDO to arrive at the balance actually available in the S. T. Pass Book. In the absence
of reconciliation, it is not possible to know the missing credits if any and wrong debits
and it is likely that mis-appropriations if any are concealed. It is, therefore, necessary
that this work be attended to on time.
Reconciliation between the cash
balance and Treasury pass book balance has not been done in respect of the
Zilla Parishads noted in Statement No. 4 (3) (1) resulting in Non-reconciliation of
amounts aggregating to Rs. 74.26 lakhs in 64 objections.
1.1. VARIATIONS IN ACCOUNTS FIGURES BETWEEN THE ANNUAL
ACCOUNT AND THE PASS BOOKS/CASH BOOKS.
During the course of the audit of Vizianagaram Zilla Parishad for the year
2008-09, it was noticed that there were some variations in account figures as detailed
below.( Para. 7 of the AR)
27
Amount in Rs.
Annual accounts should reflect the financial transaction done by a particular
institution in a year. But as seen above variations in both receipts and charges with
references to pass book all financial transactions were not taken into account which is
irregular.
1.2. VARIATION IN ACCOUNTS FIGURES NEED ECONCILIATION
There is a difference between closing balance of Treasury Pass Book and
Closing balance of Cash Book in treasury column as detailed below. The differences
are to be reconciled and correct balances should be arrived.
# Name of the District
Closing
balance of
S.T.O.
Closing balance
of Cash.Book
Differen
ce
Pa
ra.
No.
1 Z.P.General funds of
Medak Dist.
178234552 178214196 20356 4
2 Z.P.Secondary
Education Fund of
Nalgonda
37224826 27943101 192393 2/1
1.3. PROVIDENT FUND - VARIATION IN ACCOUNTS WITH TREASURY
PASS BOOK - NEEDS EARLY ACTION Rs.84,60,937.
On verification of the receipts and charges from Treasury Pass Book of Z.P.
Srikakulam, it is observed that the figures adopted were wrongly noted and certified
by the Treasury Authorities in the Memo of Payment as detailed below. (Para 1)
1. General Funds
Receipts in the Annual Account 7221042
Receipts in the Pass Book 183751340
Charges in the Annual Account 4663877
Charges in the Pass Book 170668176
2 Sand Cess
Receipts in the Annual Account 10595226
Receipts as per R & C Statement 14260299
3 15% EMF allocation for W & CW Funds
Receipts in the Annual Account 4320391
Receipts in the Cash Book 4080391
4 9% RWS allocation
Receipts in the Annual Account 2486811
Receipts in the Cash Book 2448235
5 Agriculture (Water Sheds)
Expenditure in the Annual Account 1179600
Expenditure in the Cash Book 997500
28
# Month Actual Receipt as
per cash book
Treasury
Reconciliation
figures
Difference
1 7/2008 1,79,45,446 1,79,52,946 (-) 7,500
2 12/2008 2,57,32,046 2,51,82,826 5,49,220
3 1/2009 1,96,43,520 1,95,06,205 1,37,315
4 2/2009 2,16,02,246 1,93,81,488 22,20,758
5 3/2009 1,84,82,856 1,79,29,212 5,53,644
Total 34,60,937
2. EXCESS UTILISATION OF GRANTS/FUNDS
The State Government releases grant-in-aid to Zilla Parishads to meet the
expenditure on developmental works and contingency items like T.A., stationary,
honorarium to the elected representatives etc. It was noticed during the audit that the
Executive Authorities of the Zilla Parishdas were incurring expenditure in excess of
the grant received from the Government either in anticipation of the release of further
grant or withdrawing the excess amount from the General Funds of the institution
without any valid orders.
All such cases of excess expenditure over and above the Grant-in-aid received
are detailed in Statement No. 4(3) (1) to the Report from which it could be seen that a
total amount of Rs. 152.36 lakhs in 26 paras.
3. DIVERSION OF GRANTS
The Zilla Parishads are provided with funds by the State/Central Governments
either by way of grants or by a prescribed share in the Cess, Taxes or Fees collected
by the State Government. All the monies received by the Zilla Parishads from part of
their general funds and they can be utilized for the purposes prescribed under the
relevant Act/Rules.
Incurring of expenditure for purposes other than the prescribed ones without
specific sanction of the Government is not permissible and it amounts to diversion of
funds. In case of specific grants, the grants should be utilized only for the specific
purpose for which the grant is released and no diversion is permissible without the
permission of such grant releasing authority. But it was noticed in audit that
notwithstanding such instructions, diversion of specific grants and earmarked funds is
taking place. It was also observed in audit that expenditure was incurred under certain
grant heads even in the absence of receipt of any grant during the year by diverting
other grants. However, such cases were pointed out under the caption ‘Diversion of
Grants’.
As per Sub Section 3 of Section 198 of the Andhra Pradesh Panchayat Raj
Act, 1994 read with G.O.Ms.No. 446 of PR & RD (Progs. III) Department, dated
29-10-1998, the funds of the Zilla Parishad shall be utilized for payment of pay and
allowances of its officers and other employees, allowances to be paid to the special
invitees and members of Zilla Parishad, its Standing Committee and TA to the
Chairman and Vice Chairman of Zilla Parishad and any item of expenditure directed
29
by the Government for carrying out the purposes of Andhra Pradesh Panchayat Raj
Act 1994 and such other expenses as may be necessary for such purposes.
The Grants – in – Aid are given for utilizing the amounts on specific
objections/purposes. They cannot be diverted to any other purpose vide Rule - 32 of
the Rules prescribing the purposes for which Zilla parishad Fund shall be applied
issued vide G.O. Ms. No. 229 of Panchayat Raj, Rural Development and Relief
(Accts.I) Department dated. 17.06.1997.
Diversion of Grants/ Funds to a tune of Rs. 624.94 lakhs in 155 paras were
diverted to other purposes as detailed in the Statement No.4 (3) (1) appended to this
report.
3.1 ADVANCES – ZPTC ELECTIONS – EXPENDITURE INCURRED – NOT
REIMBURSED TO Z P GENERAL FUNDS – Rs. 1,37,949.
It was noticed during the audit of ZP Medak, at Sanga Reddy, for the year
2008-09 an amount of Rs. 10,77,649 was drawn as an advance from Zilla Parishads
General Fund for conducting elections to Z..P.T.C.s of Achanta, Peravali and
Denduluru in Medak District. Out of the above, an amount of Rs. 9,39,700 only was
adjusted to the Zilla Parishad General Fund till the closure of the audit leaving a
balance of Rs.1,37,949 (Para No.62)
3.2. DIVERSION OF FUNDS - Z.P. GENERAL FUNDS DIVERTED TO SGRY WORKS –
TO BE TRANSFERRED.
During the course of audit of ZP Guntur, for the year 2008-09 it was noticed
that, an amount of Rs.1,43,89,859 as detailed below was drawn and distributed to the
Engineering divisions from the Z.P. General Funds towards payment of SGRY 20%
work which were completed and payment were not made due to non-availability of
SGRY Funds. The authority under which the said expenditure incurred from Z,.P.
General Funds was not produced to audit.
Vr No Date Progs SA No & Date Executive Authority Amount
496/ 10-08 Rc No:2182/P6/28-8-08 EE PR Narasaraopeta 2500000
498/ 10-08 Rc No: 2182/ P6/28-8-08 EE PR Tenali 2500000
499/ 10-08 Rc No:2182/P6/28-8-08 EE PR Guntur 2500000
617/ 12-08 Rc No: 2182/P6/4-12-08 EE PR Narasaraopeta 86428
838/ 3-09 Rc No: 2182/ P6/21-02-08 EE PR Tenali 1441442
839/ 3-09 Rc No:2182/P6/21-02-08 EE PR Narasaraopeta 3372000
840/ 3-09 Rc No:2182/P6/21-02-08 EE PR, Guntur 1989989
Total 1,43,89,859
( Para No. 3(1) of AR of Z.P. General Fund, Guntur District 2008-09 )
30
4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE:
Government release special grants to the Zilla Parishads for implementing
specific schemes. These grants are to be utilized for the purposes for which they are
meant for, following the guidelines issued/ norms prescribed and such utilization
should be within the time prescribed. Otherwise, the grants will lapse to government,
unless Government extends the lapsable date of any particular grant or grant releasing
authority
Government issued orders in G.O. Ms. No 666 (Accts-I) Department dated
13-6-1978 extending the period of Utilization of non-salary grants, particularly
Panchayat Raj Grants, up to a maximum period of 18 months instead of end of the
financial year to allow reasonable time to utilize the grant released. According to the
above orders, grants released in the first year of a financial year can be utilized on or
before 30 th September. The Local Bodies did not utilize the grants released within
the lapsable date and thereby huge amounts were left unutilized. The grant
sanctioning authorities were also not approached for extending the utilization period.
Thus the schemes for which the grants released were not implemented effectively and
totally. The unspent balances were also not refunded to the grant releasing authorities.
As per the instructions issued in D.O.No V-
24011/34/2001/NEFWP/NREGA/C2/dt.2-8-07 of the Minister of Rural Development,
Govermnment of India, the unspent balances are to be remitted to the State funds
before the lapsable time. During the course of audit it was noticed that in many of the
Zill Parishads the unspent balances were kept aside neither utilizing them in time nor
remitting the same to the concerned funds.
An amount aggregating to Rs.198.63 lakhs was not utilized by the Zilla
Parishads in the state pointed out in 37 objections as detailed in the Statement No. 4
(3) (1) appended to this report is lying with the Zilla Parishads un-utilized. Non-
Utilization of allocated amount for the Welfare of weaker sections is brought to the
notice of the Government.
4.1. XII FINANCE COMMISSION GRANT – NON UTILIZATION OF FUNDS UNDER
SANITATION –NEEDS UTILIZED
As verified from the connected file of Z.P. Ongole, it was noticed that XII
Finance Commission Grant were released by Commissioner of Panchayat Raj and
Rural Employment, Hyderabad, for maintenance of CPWS and Sanitation works to
Zilla Parishads. But, in Zilla Parishad, Ongole has utilized the amount only for
maintenance of CPW Scheme. But the sanitation grant was not spent and allowed to
be accumulated year by year. Due to non-utilization of sanitation grant, an amount of
Rs.7,98,00,000 was kept idle as detailed below with the Zilla Parishad, Ongole. The
Commissioner , Panchayat Raj and Rural Employment in Memo.No
575/CPR&RE/Accts.II(1)/09, dt:24.2.2009 has also issued guidelines and thereby
instructed the CEOs., to spend sanitation amount to improve sanitation in villages till
they qualified for Nirmal Puraskar. But, no expenditure was incurred till the closure
of the audit for improvement of sanitation facilities in GPs, due to which the
purpose of grant released by Government was defeated and intended beneficiaries
31
were deprived of the benefit. Further allowing the grant to be accumulated year by
year without proper reason i.e. locking up of capital and serves no purpose.
Rs. In Crores.
# Year Install
ment
Amount
received
Amount
utilized
Available
balane
1 07-08 I&IInd 4.00 0.02 3.98
2 08-09 I&IInd 4.00 Nil 4.00
Total 4.00 0.02 7.98
( Para No.2(3) of Audit Report of Z. P.Prakasham District for 2008-09 ) 4.2. ADJUSTED TO Z.P.GENERAL FUNDS - BUT NOT UTILISED.
The Government have issued orders in G.O.Ms. No: 666 PR (Accounts. I)
Department dt: 13-6-1978 extending the period of utilization of the grants up to a
maximum period of 18 months. Grants released in the first half year of the financial
year can be utilized up to the end of the September of the next financial year.
Violating the above rules the grant kept unutilized even after 18 months would need
to be taken to utilize for the purpose for which the grant is release. Otherwise the very
purpose of the grant will be kept in vain.
Few examples of such instances are given in the table.
# Name of the
District Nature of the grant
Amount of the
grant
Para
No.
1 Vishakapatnam Opening of libraries 12,100 6
2 Vishakapatnam Best G.P. Award 17,300 6
3 Nellore Opening of libraries 12,100 6
4 Nellore Best G.P. Award 17,300 6
5 Prakasam Opening of libraries 12,100 2/1
5 Prakasam Best G.P. Award 17,300 2/1
5. MIS-UTILIZATION OF GRANTS :
The Grants meant for specific purposes or earmarked funds shall not be
utilized for any other purpose. Any contingent expenses connected with utilization of
grant, shall be met from the provision of General Fund to the extent permitted. Instead
of the above, the authorities are utilized the specific grants and earmarked funds for
contingent expenditure. This is a mere misapplication of funds and is not a prudent
accounting practice.
During the course of audit, several instances have come to the notice of the
audit that some Zilla Parishads are incurred expenditure in excess of the Grant-in-Aid
received and over and above the budgetary provision. The fact of incurring such
excess expenditure further implies that such expenditure was met from the unspent
balances of some other grants. Necessary steps are called for to curb this sort of
financial indiscipline at the earliest so as to ensure proper utilization of these grants
for which they have been released for. The excess expenditure incurred, wherever
possible, should be got reimbursed from the grant sanctioning authorities duly
explaining the circumstances under which excess expenditure over and above the
grant sanctioned became inevitable.
32
The objectives of expenditure incidental to administration of Zilla Parishads
have been specified in Rule 6 of the rules prescribed the purposes for which the Zilla
Parishad fund shall be applied as amended in G.O. Ms. No. 704, Panchayat Raj, Rural
Development and Relief (Mandal-I) Department dated. 05.11.1994. No expenditure
can be incurred for any other purposes than the specified one.
Contrary to the Government orders the expenditure was incurred on purposes
not authorized under the A.P.P.R Act and Rules framed there under resulting in Mis-
Utilisation of funds to a tune of Rs. 47.48 lakhs 10 objections as detailed in the
Statement No. 4(3) ( 1 ) appended to this Report.
A few cases of Mis-Utilization of funds / grants were noticed in audit and a
few of them are mentioned below. 5.1. POL CHARGES- ADVANCES PAID FOR POL-ADJUSTMENT NOT WATCHED-
LEADING TO MISUTILISATION OF GRANTS-NEEDS IMMEDIATE ADJUSTMENT AND
ACTION AGAINST THE CONCERNED. Rs.50,000.
It is observed in audit that an amount of Rs.50,000 was paid as an advance to
A.A.Brothers, Balaji Junction, Vizianagaram for supply of POL to the Zilla Parishad
official vehicles vide Vr.No.374, dt.29-1-09.But the adjustment of this advance was
not watched and ensured till the close of the financial year. The section incharge is
responsible for watching the adjustment of this advance has failed in doing so.
Moreover, number of times payments to the same dealer were made for supplying the
POL after this advance was made, but no care was taken to adjust the advance paid to
the dealer. In spite of the advance available with the dealer, the Zilla Parishad,
Vizianagaram has continued paying for the actual usage without deducting the
advance. This unfrudent sanction of the contingent advances and non-watching
adjustment as expenditure is highly irregular and amounts to mis-utilisation of the
funds.
Hence necessary action may be initiated against the persons responsible for
their negligence besides ensuring the advance adjusted to the Z.P funds immediately.
( Para No.11 of Audit Report of Z. P., Vizayanagaram District for 2008-09)
6.NON-UTILISATION OF EARMARKED FUNDS
Government vide their orders issued in G.O. Ms. No.450 & 451 P.R. & R.D.
(Programme-IV) Department, dated 9-4-2001 and G.O. Ms. No.38 Women
Development and Child Welfare Department, dated 29-5-98 read with G.O. Ms.
No.704 of P.R. & R.D. Department, dated 5-11-1994 under subsection (1) of section
171 of the Andhra Pradesh Panchayat Raj Act, 1994, every Zilla Parishad shall
allocate in every year the following percentage of its general funds to be spent on the
schemes benefiting the weaker sections.
1. For S.C.s : 15%
2. For S.T.s : 6%
3. For Women & Child Welfare : 15%
33
Further 1/3 of such earmarked funds shall be made over at the beginning of the year to
the A.P. Scheduled Castes Co-operative Finance Corporation / A.P. Scheduled Tribes
Co-operative Finance Corporation / A.P. Women Co-operative Finance Corporation
as the case may be utilize for the benefit of the S.C.s, S.T.s and Women and
Children respectively. The balance of 2/3rd
funds shall be utilized by the Z.Ps / M.Ps
for the benefit of S.C.s, S.T.s, Women & Children in the Z.P, M.P areas. Unspent
balance out of the 2/3rd
funds at the end of the financial year, if any, shall be made
over to the respective corporations.
It is observed in audit that in many cases the funds to be earmarked as per the
orders of the Government were worked out and provided for in their respective budget
estimates. But funds were neither made over to the respective corporations at the
beginning of the year nor fully utilized by the Z.Ps. The unspent balances at the end of
the year were also not remitted to the respective corporations in many cases. Such
inaction had defeated the very purpose of earmarking of funds.
An amount aggregating to Rs .583.28 lakhs pointed out in 69 paras as
detailed in the Statement No. 4 (3) (1) appended to this report is lying with the Zilla
Parishads un-utilized. During the year 08-09 it was noticed that position of utilization
of earmarked funds and transferred to the respective agencies is as follows.
Rs.in Lakhs
#
Nature
of
earmark
% Total
allocation
Total
utilized/transferred % Balance
1 S.C 15 1374.32 1368.34 99.56 5.98
2. W&CW 15 2210.61 1066.23 48.23 1144.38
7. NON-COLLECTION OF DUES
On verification of the revenue collections in Zilla Parishads, it was observed
that huge amounts were left pending realization for longer periods and some of them
were even allowed to become barred by limitation of time. No appropriate action
seemed to have been initiated by the concerned Executive Authorities for realization
of taxes and fees etc., due before they became barred by limitation of time in spite of
various statutory provisions existing for their recovery by way of certain procedures
like distraint, prosecution or filing of suits. Dependence on Government grants gets
lowered if these outstanding dues are realized in time which ultimately increases their
self sustainability. In fact some of these dues cannot be recovered legally now and
constitute a permanent loss to the institutions which needs to be curbed. A case study
of the amounts outstanding/ time barred dues and dues which are likely to become
time barred during the year 2008-09 is given below.
According to the instructions issued in G.O. Ms. No. 99 Panchayat Raj &
Rural Development (Mandals-I) Department dated. 13.02.1990, the Zilla Parishad
Development Officer of a Zilla Parishad shall scrutinize personally from time to time
the records and registers relating to the revenue due to the Zilla Parishad, obtain from
the subordinates or other officers of all items of uncollected arrears of revenue and
take timely action for their realization.
34
A consolidated Statement 4 (3) (1) showing audit objections on Non-
collecation of dues is appended to the Report from which it could be seen that an
amount of Rs.305.97 lakhs was pointed out in 161 paras .
7.1. ZILLA PARISHADS – NON COLLECTION/SHORT COLLECTION OF REVENUE – RS.
29.58 (LAKHS)
An aggregate amount of Rs.29.58 lakhs was pending realization from the
tenants/lessees towards rents, leases on the properties of Zilla Parishads as detailed
below. The Executive Authorities did not take any appropriate action for their
realization within the time fixed, which resulted in, the revenue receipts falling into
arrears and chances of collection becoming more difficult. Appropriate action is needs
to be taken to realize the outstanding amount form the revenue yielding properties of
Zilla Parishads.
Rs. In lakhs
# Name of the ZP and
District Details of Revenue
Para
No.
Amount
due
1 ZP, Kadapa Shopping Complex Rents 5 21.52
2 ZP, Karimnagar Shopping Complex, Rents 6(ii) 3.85
3 ZP, Visakhapatnam Barma stalls Rents 4(4) 2.31
4 ZP, Visakhapatnam Quarters Rent 4(2) 0.68
5 ZP, Guntur Shopping Complex – Amount
Pending from Lessee
4(1) 1.22
Total: 29.58
7.2. SHOPPING COMPLEX - KOTHAVALASA SHOPPING COMPLEX - NON
COLLECTION OF DUES - LONG PENDENCY - NEEDS TIMELY WATCHING AND
PROPER ACTION. Rs.7,44,802.
As verified from the Miscellaneous Demand Register for the year 2008-09, the
following amounts were overdue and pending collection as on 31-03-09.
Old Shopping Complex.
Name of Defaulter
Sarvasri
Pending as on
31309 Rs.
1. K.Veerraju 14400
2. K.Appa Rao 40535
3. G.V.Ramana 38600
4.P.Rama Rao 31630
5. V.Kondala Rao 33120
6. K.Satyanarayana 31225
7. K.Satyanarayana 33080
8. K.A.V.S.Prasad 5680
9. K.Chalamaji Rao
22740
10. V.Venkataramana 36200
11. K.Janardana Rao 26100
12.T.Narasimha murthy 6550
35
B. New Shopping Complex:
The existing Godowns were dismantled and new shopping complex was
constructed. All shops were auctioned and allotted to the highest bidders for 2 years.
As per the DCB 2008-09, the dues staggered to a tune of Rs.1,53,770 as follows:-
Shop No. Name of tenant Dues as on 31.3.09 Rs.
04 K.Veerraju 10x1000=10,000
05 T.Nukaraju 18x1400=25,200
09 P.Varahala Rao 10x2000=20,000
10 G.Nagaratnam 3x2200=6,600
11 N.Rama Rao 8x1000=8,000
13 K.Pydachari 7x2200=15400
14 K.Nukaraju 23x2350=54050
26 Y.V.Y.S.Jaganmohan 22x660=14520
Total: 1,53,770
If this practice is continued, the Zilla Parishad shall loose its income. This
would need to be curtailed through filing cases in the Court for recovering the
amount with interest.
.( Para No.13 of Audit Report of Z. P., Vizainagaram District for 2008-09 )
7.3. AUCTIONS - HEAVY ARREARS PENDING REALISATION - EARLY ACTION
NEED TO BE TAKEN. RS. 2,40,000.
As seen from the register of auctions relating to the weekly sandy of
Kothavalasa, it is observed that the auctioned amount is not fully realised as detailed
below.
# Year Name of the Bidder Auctioned
amount Collected Due
01 2006-07
Sri M.Swaminaidu
S/O.Late Ammatalli
Veerabhadrapuram(V),
Kothavalasa(M)
4,80,000 4,20,000 60,000
02 2008-09
Sri B.Appa Rao,
S/o.Late Appalanaidu,
Tummikapalli(V),
Kothavalasa(M)
5,21,000 3,41,000 1,80,000
Total 10,01,000 7,61,000 2,40,000
13. T.V.Ramana 7010
14. M.Sarayya Setty 16162
15. Y.Yerri naidu 21770
16. P.Demudu 56136
17. B.Ammanna babu 170095
TOTAL: 591032
36
If the lessee has not paid the entire leased amount the Executive Authority
should have taken the action by forfeiting the EMD & FSD etc., further the E.A.
should have not allowed the lessee to lift the sand without paying the entire bid
amount as per tender conditions. The Executive Authorities have not taken any steps
to collect the amount from the above bidders. The Bidder at Sl. No. 1 Sri M.Swami
Naidu has not paid the amount since 2006-07.
( Para No.14 of Audit Report of Z. P.Vizainagaram District for 2008-09 )
7.4. QUARTERS - ZP STAFF QUARTERS - RENT NOT COLLECTED - NEEDS
REALISATION Rs. 67,566.
As verified from the DCB register for the year 2008-09 it is noticed that the
rent fixed by the ZP for quarters owned by the Zilla Parishad was not recovered from
the occupants of the quarters from pay bills and remitted to the General Funds as
detailed hereunder. In Vishkapatnam district such practice is not being adopted
resulting an amount of Rs.61,845 loss caused to the ZP Funds. The DDO has to
recover the rents from the occupants from their salary bills in the succeeding months.
# Name of the
employee O.B Demand Total Collection Balance
1. SattiBabu (PR) ,SA - 22,884 22,884 17163 5721
2. M. Sanyasi Rao 12,470 - 12,470 - 12,470
3. KBVBSR.Murthy
JA
4644 27864 32508 25542 6966
4. RV. Nagaraju, RS 18707 12444 31151 11407 19744
5. VA. Suryanarayana 12,957 - 12,957 - 12,957
6. P.P. Kiran Kumar - 5560 5560 2224 3336
7. P. Ramu - 12,770 12,770 6398 6372
Total 48,778 58,638 1,07,416 45,571 61,845
( Para No.8 of A. R on the accounts of Z. P.,Vishakapatnam District )
7.5. LEASES - SHOPPING COMPLEX - ARREARS OF RENTS - NEEDS
COLLECTION Rs. 5,71,554
Huge arrears of rents in respect of Zilla Parishads Shopping Complex are still
pending realization from the tenants as noted below.
# Name of the Tenant Shop No Amount
1 Sri M. Someswara Rao 1 3,000
2 Smt K. Devi 1 5,024
3 Sri S.M. Hayath 2 10,170
4 Sri P. Venkata Rao 2 2,50,702
5 Sri GSK Prasad - 2,54,005
6 Sri B. Rama Krishna 5 994
7 Sri G. Kesava Rao - 47,659
Total 5,71,554
( Para No.9 of Audit Report of Z. P.Vishakapatnam District for 2008-09 )
37
8.ADVANCES PENDING ADJUSTMENT
It was observed during the course of audit that temporary advances paid for
specific purpose were outstanding for a long time though they should have been got
adjusted through detailed bills and vouchers as soon as possible as per Article 99 of
the A.P. Financial Code. Non-settlement of advances leads to misuse of funds to
avoid refund of unspent amounts. Several objections were raised on such outstanding
advances in the relevant Audit Reports pointing out above the failure of the Executive
Authorities in taking necessary action to get these advances adjusted.
It was also observed that huge amounts of personal advances are also
outstanding for a long time due to the inaction on the part of the Drawing Officers.
The objections are relating to advances pending adjustment from the Staff towards
T.A., pay Festival Advances L.T.C. Marriage Advance, Motor Cycle Advance and
advances for purchase of Materials, goods and services. The Personal advances have
to be recovered in the pay and T.A. Bills and advances for purchase of materials,
goods and services have to be adjusted soon after the purpose is over. Non-
recovery/Non-adjustment of advances for years together is a serious lapse and the
officers who have not recovered the amounts have to be held responsible for their
failure to recover the advances. There is need to review the progress in the recovery
of the advances in the monthly meetings at the Zilla Parishad Development Officers
and to ensure that the outstanding advances are recovered expeditiously.
An aggregate amount of Rs.983.74 lakhs in 230 paras are raised under the
category of Advances Pending adjustment during the year as detailed in the
Statement No.4 (3) (2) appended to this report.
8.1. WORKS - DEPARTMENTAL EXECUTION - ADVANCES PAID TO MANDAL
ENGINEERING OFFICER - PENDING ADJUSTMENT - Rs.1,00,000.
Vide Voucher No.32/18-11-2008, an amount of Rs.1,00,000 was drawn and
paid to Sri U.Y.Ratnam, Mandal Engineering Officer, Mandal Parishad, Makkuva.as
Advance for Construction of Cause way across Gomukhi river at Dabbagedda
departmentally. Even at the end of the financial year neither these advances were
adjusted nor refunded to the ZP funds by the said MPDO. It is also observed that no
Advance Recoverable Register is maintained for the year 2008-09 to check the
correctness of the balances of the previous years. The executive authority has to
ensure its remittance along with interest.
( Para No.13 of Audit Report on the accounts of Z. P.Vizianagaram- District )
8.2.ADVANCES - FESTIVAL AND EDUCATION AND OTHER ADVANCES
NOT ADJUSTED -ADVANCES RECOVERABLE REGISTER NOT
PRODUCED - NEEDS ACTION Rs. 2,42,150.
An amount of Rs. 84,507 was drawn and paid to the staff towards Festival,
Education Advances and other purpose as detailed hereunder . But the same were not
got adjusted to the General Funds at the end of the Financial year. The details of the
recoveries could not be verified as the Advance Recoverable Register was not
produced to audit. Further, since the salaries of the staff is being paid from 010, the
payment of advances to staff from the General funds is irregular.
38
Vr No Name of the employee Particulars of
advance Amount
16/ 4-08 Sri Ch. Venkata rao,
MPDO, K,Kotapadu
Advance for medical 25,000
17/4-08 Smt R.M. Glads, MPDO,
Bheemunipatnam
Advance for medical 25,000
94/ 6-08 N.V.R.Ch. Murthy, Supdt Education advance 3,000
S. Appala raju, SA ,, 3,000
K.N. Narayana Rao, SA ,, 3,000
D. Krishna , SA ,, 3,000
K. Venkata Rao 2,100
P. Sunitha, SA ,, 3,000
Details not recorded in
Advance Register
,, 72,900
124/ 7-08 A. Subrahmanyam , O.S ,, 3,000
A. Srinivasa Rao ,, 3,000
409/ 12-08 Festival advance to staff 89,000
654/2-09 MGM Rao Supdt ZP 7150
Total 2,42,150
( Para No.11 of Audit Report of Z. P.Vishakapatnam District for 2008-09 )
9. VIOLATION OF RULES
It was noticed in the audit that in some cases the Rules / Government
instructions for incurring the expenditure from the funds of the Zilla Parishasds were
violated either due to negligence or ignorance. In certain cases, the funds of the ZPs
were utilized for the purposes other than the permitted ones under the Act / Rules. It
was also noticed that in a few cases, Government instructions were misunderstood or
misinterpreted. Such irregular expenditure incurred was objected in the relevant Audit
Reports.
443 No. of audit objections involving an amount of Rs.6684.19 Lakhs were
raised in the relevant Audit Reports as shown in Statement No.4(2)annexed to the
Report.
Some of such cases are mentioned hereunder
9.1 CONSUMPTION OF PETROL /DIESEL FOR ZP VEHICLES OVER AND
ABOVE THE CEILING – IRREGULAR – RS. 2,20,806-00
Government has fixed consumption of petrol / diesel for all the vehicles of the
officers below the cadre of Secretary vide G.O.Ms.No. 529 GA(OP-II) Dept, dated
13-9-1990, G.O.Ms.No. 148 F & P (FW-Admn-I), Dept, dated 21-10-2000 and in
G.O.Ms.No. 602 PR & RD (Porgs.III), Dept, dated 4-10-2009 read with Govt. Memo.
No. 9558/Progs/91-1, dated 25-2-1991 PR & RD Dept, orders were issued limiting
the maximum ceiling limit per month at 250 liters and 160 liters for the Z.P. Chair
Person and CEO, Z.P respectively. But as verified from the bills relating to the
consumption of fuel of the Vehicles of Z.P, Kadapa for the year under audit, it was
noticed that as much as 10,474.20 liters of fuel was consumed when the limit was
3,360 liters resulting in excess consumption by 7114.20 liters, worth Rs. 2,20,806-00
in contravention of the ceiling fixed in the above G.Os which is highly irregular and
the amount needs to be recovered from the persons responsible.
(Para No.6 of the AR on the General Fund of Z.P.,Kadapa for 2008-2009)
39
9.2 PURCHASE OF STATIONERY WITHOUT CALLING TENDERS –
IRREGULAR- RS 1,61,929/-
An aggregate amount of Rs.1,68,344/- was drawn and paid towards purchase
of stationery by the Zilla Parishad Kadapa. As per G.O.Ms.No.583/GA (OP-III)
Dept, dt:26-10-1998, stationery has to be purchased by Zilla Parishad by estimating
the requirement for the entire year by calling tenders. But, in the instant case the
stationery was purchased in piece meal without calling any tenders resulting in
foregoing the purchase at a competitive price which is highly irregular and serious
violation of rules.
(Para No.6.1 of A.R. on the a/cs of G. F. of Z.P., Kadapa for 2008-2009)
9.3. NON DISTRIBUTION OF THE SAND AUCTION AMOUNT AMONG THE
GRAM PANCHAYATS AND MANDAL PARISHADS - IRREGULAR-.
Rs.1,05,28,255.
During the course of the audit, it was observed that an amount of
Rs.3,21,34,774 was received by the Z.P. towards Seigniorage fees and leases through
the sand auctions conducted by the Mines & Geology Department in the District. As
per the instructions issued in G.O.Ms.No.255, PR dept. dt:2/8/2001, the above
amount shall be apportioned @ 25% to Gram Panchayats, 25% to Zilla Parishad and
50% to Mandal Parishads concerned by the Zilla parishad. But, in contravention of
the said rules, lakhs of rupees were lying with the Z.P as shown below without
distributing to the Mandal Parishads and Grampanchayats for the years 2007-08 and
2008-2009 which resulted in loosing of their legitimate share by the said institutions
and thereby depriving them to take up developmental activities to that extent which is
highly irregular.
Amount in Rs
Amount to be
distributed to
Balance
amount
pending
distribution
as on
1.04.2008
Amount to be
distributed
during
2008-09
Amount
distributed
during
2008-09
Balance
amount to be
distributed as
on 31.03.2009
Grampanchayats
(25%) 20,48,677 80,33,693 65,72,952 35,09,418
Mandal Parishads
(50%) 40,97,354 1,60,67,388 1,31,45,905 70,18,837
Total: 61,16,031 2,41,01,081 1,97,18,857 1,05,28,255
(Para No.16 of the A R on the accounts of the ZP, Khammam for the year 2008-09)
9.4. UTILISATION OF S.F.C FUNDS ON INADMISSIBLE WORKS Rs.20,20,450.
As per the guidelines of the State Finance Commission Grants, works
involving capital nature viz. construction of MPP/ZPP Buildings providing toilets and
drinking water facilities in MPP/ZPP Schools and alteration to old MPP/ZPP Schools
are admissible to be taken up.
40
But, it was observed that the SFC funds were utilized on road works and
construction of Gram Panchayat Buildings, Mandal Resource Buildings against the
guidelines of SFC grant. As such, the expenditure incurred for Rs 20,20,450 is held
under objection.
( Para No.64 of the A.R. on the a/cs of G. F. of the Z.P.,W.G. Dist. for 2008-09)
9.5 NON- COLLECTION OF USER CHARGES ON WATER SUPPLY-IRREGULAR
As per Para No.4 of Annexure.III to G.O.Ms.No.33 Panchayat Raj & Rural
Development (Pts.III) Dept, dated:3-2-2006 the Panchayat Raj Institutions should set
in mechanism for recovery of at least 50% of the recurring cost on O &M of Water
Supply in the form of user charges. As per Para No.15 of
Prog.sNo.10669/CPR&RE/J1/2005, dated:8-2-2006 of the Commissioner of
Panchayat Raj and Rural Employment, Hyderabad, a statement should be furnished
by D.P.O / C.E.O. Zilla Parishad in respect of user charges collected every month by
the 10th
of the Next month to the Commissioner, P.R & R.E. But, it is noticed that no
amount was collected during the year 2008-09 towards user charges and the entire
expenditure was met from the RWS funds which is not permissible.
( Para No.2(3) of A.R. on the a/cs of E.E (RWS), Podili, Z.P. Ongole for 2008-2009)
9.6. PERSONAL DEPOSIT ACCOUNT - TRANSFER OF AMOUNT FROM ONE
BANK TO THE OTHER - FINANCIAL PRINCIPLES PRESCRIBED BY
GOVERNMENT NOT OBSERVED BY THE EXECUTIVE AUTHORITY -
As seen from the Cash book and Personal Deposit Accounts relating to
Backward Regions Grant Fund(BRGF) it could be seen that the Executive Authority
drawn the funds from the Personal Deposit Accounts and transferred the amounts
from one bank to the other without the orders of the Grants Sanctioning Authority. It
is clear that the Executive Authority did not observe the instructions issued by Govt.
vide Go.Ms.No.3 F&P (W&M) Dept. dated: 22-04-2000 in the operation of funds and
possibility of funds without being utilized for the purpose for which it was sanctioned.
The C.E.O. Zilla Paris had not aware of that under section 197 of APPR
Act.1994 all the money received by Z.P shall be lodged in the Govt. Treasury only.
Keeping the Z.P funds in Commercial Banks out side the Treasury is violation of
statutory provision and may leads to misappropriation of funds.
Bank A/c.No Name of Bank Balance Amount
312022092520 Syndicate Bank Anantapur 3,47,59,286
30358599682 SBI(ADB) Agril.Anantapur 50856285
62094791422 SBH Anantapur 6886000
10781 APGB Kanaganapalli 50,00000
042210100001130 Andhra Bank Pamidi 50,00000
01310100005109 Andhra Bank Anantapur 20933000
3042984153 Central Bank Anantapur 17289000
Total: 4,07,23,571
( Para No.31 of Audit Report of Z. P,Anantapur District for 2008-09 )
41
9.7.. CONTINGENCIES – HUGE PURCHASES OF CROCKERY ITEMS –
VIOLATION OF RULES- Rs. 46,140.
During the year an amount of Rs.46,140 was incurred towards purchase of
crockery items for the use in Office. According to the Articles of Financial Code read
with G.O.Ms.No.148, Fin Department Dt.21.10.2000, the Chief Executive Officer,
Zilla Parishad, Vizinagaram was vested with the Powers for Purchase of crockery
items worth of Rs.1,000 Per Annum only. But, in violation of Articles of Financial
Code and orders of Government, huge amount was incurred as usual every year for
purchase of crockery. Government reiterated the instructions vide Para 4 of the
G.O.Ms.No.271 PR&RD Department Dt.10.6.2006, that any extraordinary item of
expenditure shall be incurred with the prior sanction of the Government only.
(Para No.44 of the A.R of G.F, Zilla Parishad, Vizianagaram for 2008-09)
9.8. EXPENDITURE INCURRED WITHOUT BUDGET AND MORE THAN THE
PROVISION IN THE REVISED BUDGET ESTIMATES 08-09 - IRREGULAR -
NEEDS RATIFICATION OF THE GOVERNMENT.
The Revised Budget Estimates 08-09 was got approved by the Government
through G.O.Ms.No.388, PR & RD (Accounts-IV) Dept.dt.17-12-2009.
Though, it was clearly instructed time and again by the Government while
approving Budget Estimates / Revised Budget Estimates of Zilla Parishad to adhere to
the budgetary provisions, as usual, the instructions of the Government were simply
set- a- side, by the CEO of ZP, Srikakulam and expenditure incurred on the following
items more than the allocations in RBE for 08-09 and also in r/o certain items, where
no provision in the BE/RBE.
Item of Expenditure RBE 08-09
Rs.
Expenditure
incurred Rs.
Excess
expenditure Rs.
Purchase of A.C. Machine 0 59000 59000
POL Charges 400000 511758 111758
TA to staff 200000 252525 52525
Vehicle repairs 150000 182120 32120
Printing & Binding 100000 171323 171323
(Para No.4 of the A.R.of Zilla Parishad of Srikakulam for the year 2008-09)
10.NON-REMITTANCE OF THE DEDUCTIONS / RECOVERIES
FROM THE VOUCHERS / PAY BILLS / CONTINGENT BILLS
It was noticed during the audit that various deductions / recoveries affected
from the work bills / pay bills were not remitted to the Government or a part of them
only were remitted in spite of statutory obligation to remit the same to Government
account with in a prescribed time under the relevant statutory provisions which also
include penalty as well as prosecution for non adherence.
The deductions normally made from work bills / pay bills that are to be
remitted to Government account are
42
Work Bills
1. Sales Tax
2. Seigniorage Fees
Pay Bills
1. Income Tax
2. Profession Tax
3. Loan recoveries
The above nature of objections raised during the year under report are 1667
involving an amount of Rs.5464.19 Lakhs which are shown in Statement No. 4(2)
appended to the report.
Some of them are detailed here under
10.1 SALES TAX /VAT DEDUCTED BUT NOT REMITTED OR PARTLY
REMITTED Under A.P.G.S.T Act 1957 as amended from time to time and as per
G.O.Ms.No.556 Revenue (CI-II) Department, Dated 07-08-2000 read with
Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax @
2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for exclusive
civil contracts for laying or repairing of roads and contracts for canal digging lining
and repairing and @ 4% of turnover for all categories of other contracts not falling in
the above mentioned category has to be recovered from the work bills and remitted to
state funds within a week from the date of recovery failing which the Drawing Officer
has to pay personally 24% penal interest besides remitting the amount to state funds.
It was observed that Sales Tax/ VAT deducted at source from the work bills
was not remitted /Partly remitted to the state funds till the close of audit. Such
irregularities noticed were pointed out in the relevant audit reports of the following
institutions. A few of such cases are mentioned below.
Amount in Rs
# Name of the Institution &
District
Amount
Collected
Amount
Remitted
Balance to
be Remitted
Para
No.
1 E.E.(RWS), Palasa,
Srikakulam District
39,968 22,025 17,943 11
2 E.E.(RWS), Palasa,
Srikakulam District
17,767 0 17,767 11(B)
3 E.E.,P.R, Tekkali,
Srikakulam District
13,779 0 13,779 12
4 E.E.(RWS), Medak District 2,04,752 0 2,04,752 10
Total: 2,76,266 22,025 2,54,241
43
10.2. SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED /PARTLY
REMITTED IRREGULAR Rs. 9,075. As per G.O.MS.No.331, Industries and Commerce (M.I) Department, Dated
21-06-2000, Seigniorage Fees or Dead Rent which ever is higher shall be recovered
from the work bills on all Minor Minerals dispatched or consumed from the land at
the rates specified in the Schedule-I and Schedule-II annexed to the said G.O as the
case may be and to be credited to the consolidated fund of State Government through
the concerned Assistant Director of Mines & Geology of the District. However, it
was observed that though the amounts were recovered from the work bills towards
Seiginorage Fees, the same were either not remitted or partly remitted to State Funds
till the close of audit. Such inaction was pointed out in the relevant audit reports of
the following institutions. Few of such instances are listed below.
# Name of the Institute &
District
Amount
Collected
Amount
Remitted
Balance
to be
Remitted
Para
No.
1 E.E., (RWS) Palasa,
Srikakulam District
23,690 15,597 8,093 11
2 E.E., (RWS) Medak Dist 982 0 982 10
Total: 24,672 15,597 9,075
10.3 NON REMITTANCE OF THE PROFESSION TAX DEDUCTED FROM THE
PAY BILLS.
Profession Tax deducted from the Pay Bills was not remitted to the concerned
Head of Account till the close of the audit. Such inaction of the concerned Executive
Authority was pointed out in the relevant Audit Reports.
Some such instances are listed below.
Amount in Rs
#
Name of the
Institution & District
Amount
Collected
Amount
Remitted
Balance to be
Remitted
Para
No.
1 Secondary Education
Fund, Nellore
19,020 00 19,020 10
2 SecondaryEducation
Fund,Nalgonda
1,775 00 1,775 8
Total: 20,795 0 20,795
NAC Charges
Amount in Rs:
#
Name of the Institution
&
District
Amount
Collected
Amount
Remitted
Balance to
be Remitted
Para
No.
1 E.E.(RWS), Palasa,
Srikakulam District
3,543 1,542 2,001 11
2 E.E.(RWS), Medak,
Medak District
12,935 0 12,935 10
Total: 16,478 1,542 14,936
44
10.4. NON REMITTANCE OF THE H.B.A DEDUCTED FROM PAY BILLS:
In ZP Karimnagar a sum of Rs. 4,05,000 was recovered from the pay bills of
the staff towards House Building Advance recovery. But, as verified from the relevant
record the above amount was not remitted to the concerned Head of Account till the
close of the audit
10.5. NON REMITTANCE OF THE DEDUCTED LABOUR CESS FROM THE
WORK BILLS:
In EE (RWS), Sangareddy, Medak ZP it was noticed that a sum of Rs.45,471
recovered towards Labour cess in work bills. But, the same is not remitted to the
head of account concerned till the close of audit.
11. NON-PRODUCTION OF RECORDS
The Zilla Parishads have to provide certain basic civic infrastructure and
services like Road, Drain, Street lights, Water Supply, Conservancy and solid waste
management. They also perform certain regulatory functions. They also prepare plans
for economic development and social justice. To fulfill all the desires and needs the
total revenue base needs to be enhanced every year. With the rise in demand for
services, the functionaries need to have effective financial management skills and
accountability practices.
All these functions would be reflected on the record when they were
accounted for as per the provisions contained in AP Account Code which comprises
the comptroller and Auditor General (C&AG) rules together with the local rulings
relating to Local variation in accounts procedure. These initial accounts are to be kept
ready and should produce to Audit for verification. Then only the transparency in
incurring of public money and their utility to the General Public can be reasonably
judged.
Such an important function on the part of the Drawing and Disbursing Officers
in the maintenance and production of records to audit are not properly being
maintained. Thereby, the main access to clear the doubt of transparency in public
expenditure have not been availed. In spite of all these guidelines and instructions, the
DDOs of all local and urban bodies have failed to maintain the records and to produce
the same to Audit when ever the local teams visited their institutions. Under the
category of non – production of records to the Audit, the major part is in works and
the related records such as M.book, estimate file, tenders etc. The others are non
production of vouchers along with the related files and registers. The paras on non
production of records have been drawn from the individual A.Rs of the concerned
institution and their details are furnished here under. Further it is a surprise to note
that the heads of the institutions could not explain why the records could not be
maintained in the office and can be produced when ever they are being demanded by
the Audit Parties and other agencies during their local visits.
45
The financial health of an institution depends up on the quality of the records
that are being maintained to show the accountability of the financial transactions that
occur in the institution. Though, the provisions under Rule, 6 of A.P.State Audit
Rules, 2000 are clear that the onus for production of records to audit lies with the
Executive Authority of the institution, in the following cases the said rule is not
complied with as they have failed to furnish various records to audit as a result of
such inaccessibility to the records several audit objections were pointed out in various
ARs of the concerned institutions. Records like M. Books, connected files, vouchers
in which crores of rupees transacted in many institutions form the major chunk of
audit objections under the category of non production of the records. Transactions
relating to the purchase of various contingent articles, goods etc., were not accounted
for in stock registers and produced to audit. Remittances made to the different
departments etc for which neither the acknowledgements nor any evidence produced
in audit also form part under this category. However, several half-margin letters
issued for production of the required record, the Executive Authorities did not comply
with and resulted in inaccessibility to the records and raising of paras to that extent.
1367 No of objections involving a sum of Rs.16284.98 lakhs were raised
under this category during the year under report. The same is incorporate in
Statement No.4(2) appended to the report.
A few examples raised in the A.Rs for the year 2008-09 are as shown below.
11.1. EXECUTION OF WORKS – CONNECTED MEASUREMENT BOOKS –
ESTIMATES ETC., - NOT PRODUCED.
During the course of audit for the year 2008-09 it was noticed that various
works were executed under various schemes. But, the connected estimates M-Books
and connected files were not produced for audit for verification. Due to which the
correctness of the payment made could not be verified in audit. Few such instance
cases are given below
# Name of the Zilla Parishad & Dist., Amount involved
Rs. Para No
1 Srikakulam, Srikakulam 4,34,30,250 10
2 Guntur, Guntur 17,84,190 6 of GF
3. Chittoor, Chittoor 2,69,171 6 of GF
4. Vijayanagaram, Vijayanagaram 82,40,511 33 of GF
5 Visakhapatnam, Visakhapatnam 9,39,976 30 of EF
11.2. NON PRODUCTION OF THE PAID VOUCHERS:
Audit came across several cases where amounts were drawn from the funds of
the Zilla Parishad, but the connected paid vouchers /sub vouchers /files were not
produced to the audit for verification. Such irregularities noticed were pointed out in
the relevant Audit Reports. A few of such cases are given below.
# Name of the Zilla Parishad & Dist., Amount involved
Rs. Para No
1 General Funds,Anathapur, 78,22,000 5(4)
2 General Funds, Kurnool 18,56,622 21
46
11.3NON PRODUCTION OF THE CONNECTED RECORDS / REGISTERS / FILES
During the course of the audit and scrutiny of the records for the year 2008-09,
it was noticed that the following records were not produced for audit, to certify the
correctness of the expenditure incurred.
# Name of the
Zilla Parishad Particulars
Amount
Rs. Para No.
1 Karimnagar,
Out going recoveries – Paid Receipts
not Produced
1,16,18,849 6(v)
2 Guntur, Remittances Challans and
Acknowledgements not Produced
3,23,592 523
3 Kadapa, Suit Register and Files not produced 1,65,000 7
4 Karimnagar,
Purchase of New Xerox Machines to
Z.P- Connected file not Produced
1,23,703 4(5)
5 Nalgonda, Purchase files and Stock Register 2,05,680 17 of GF
11.4 NON PRODUCTION OF THE PAYEES ACKNOWLEDGEMENT:
During the course of the Audit on the accounts of the following Zilla Parishad
Institutions, the Payees Acknowledgments were not produced for verification. Hence,
it is not ensure that the amounts were received by the organizations or not. Thereby
there is every chance for misappropriation of funds.
# Name of the Zilla Parishad & Dist.,
Amount
involved
Rs.
Para No.
1 Sangareddy, Medak District 2,00,63,368 21
2 Nalgonda, Nalgonda District 16,29,415 23
3 Karimnagar, Karimnagar 1,37,250 21
11.5. SAND AUCTION-AMOUNT DISTRIBUTED TO MPP/GP-CONNECTED
FILES NOT PRODUCED:
On verification of the cash book for the year 2008-09, it was noticed that a sum
of Rs.1,90,86,353 has been adjusted under sand auction and out of which an aggregate
amount of Rs.40,16,187 has been released to the M.P.P/G.P.But, the demand and
connected auction files showing the total amount to be adjusted and the balances if
any were not put forth.
The released amount of Rs.40,16,187 has been drawn through self checks and
distributed to the M.P.P/G.P through demand drafts. The practice of the drawing the
amount through the self checks and the adjustment to the M.P.P/G.P through D.D-s is
against the financial rules, the connected counter foils and payees acknowledgement
from the individuals were not produced to the for verification.
( Para No.25 of Audit Report of Z. P., Srikakulam District for 2008-09 )
47
12. MIS-APPROPRIATIONS
The following types of Mis-appropriations were noticed during the course of
audit.
1. Un-disbursed Pay and Allowances not refunded.
2. Short disbursed the amounts drawn
3. Excess drawls not refunded.
4. Deductions made from the pay bills to be remitted towards Group Insurance
Scheme, Life Insurance polices, General provident Fund etc., not remitted to
concerned heads.
5. Mis-appropriations by wrong totals.
6. Amount drawn without vouchers
A consolidated statement of audit objections on misappropriations noticed in
the audit is annexed vide statement No 4(2) . A total number of 12 cases involving an
amount of Rs.117.41 lakhs were pointed out in the relevant Audit Reports.
12.1 SGRY- DEPOSITING SURPLUS SGRY FUNDS IN THE PERSONAL
ACCOUNT OF CEO-ZP- MISAPPROPRIATION OF SGRY FUNDS - NEEDS
RECOVERY Rs. 13,37,389.
As per Govt instructions Vide DON V- 24011/ 34/2001- IV FF WP/ NREGS
DT; 2-8-2007 The Funds released under SGRY should be utilized on or before 31-3-
2009 and the funds if any kept un-utilized should be remitted to the NREGP Funds.
Accordingly on verification of the records pertaining to the Mandal Parishad,
Rambilli, it was noticed in audit that an amount of Rs. 13,39,645 was remitted by
MPDO M.P., Rambilli through cheque No: 477129 Dt: 31-3-2009 to the SGRY Funds
of Z.P. While verifying the records of SGRY for the year 2008-09 it was observed
that the unspent amount of Rs. 13,39,645 which was stated to have been remitted
was not accounted for the funds of SGRY till the closure of the Audit. When the
above matter was brought to the notice of the Zilla Parishad Authorities it was replied
that the details in respect of above amount of Rs.13,39,645 were not available .
But on verification of inquiry file and on verification of contents noted in
Cheque No: 746326 Dt: 9-4-2009 in which amount was remitted to SGRY Funds , it
is noticed that the above unspent amount of Rs.13,39,645 from MPDO, MP, Rambilli
was deposited in Andhra Bank, Waltair by opening new account No:
063310100004456 instead of crediting the same to the SGRY Funds at ZPP. The
unspent amount of Rs. 13,39,645 was not credited so far till closure of audit. In
Contrary to the instructions issued under SGRY and contrary to the Financial Rules
the unspent amount of Rs. 13,39,645 deposited in Personal Account and withdrawn
on self cheques and in the names mentioned in the table resulting into
misappropriation of funds to a tune of Rs. 13,39,645 as shown below.
48
Date of drawal Cheque No Amount Remarks
9-4-09 746327 15000 Self
15-4-09 746328 50000 Self
17-4-09 746326 100000 Leela Krsihan
21-4-09 746329 1042376 ,,
24-4-09 746330 30000 Self
25-4-09 746331 100000 K. Bala Krishna
27-4-09 B.C 22
TOTAL: 1337389
As no expenditure was booked under SGRY duly enclosing vouchers with
Voucher Numbers for the above amounts, it is construed in audit that the entire
amount of Rs. 13,37,389 was misappropriated. Early and effective action would
need to be taken to recover the amount from the persons responsible.
( Para No.46 of Audit Report of Z. P, Vishakapatnam District for 2008-09 )
12.2 PARISHAD EDUCATION FUND-AMOUNT DRAWN THROUGH SELF
CHEQUE - TRANSACTION NOT ENTERED IN CASH BOOK - CHEQUE AMOUNT
CREDITED IN GENERAL FUND ACCOUNT OF ZILLA PARISHAD DETAILS OF
PAYMENTS NOT PRODUCED - AMOUNT MISAPPROPRIATED - NEEDS
RECOVERY AND ACTION. Rs. 29,93,325.
As verified from the Cheque Book of Educational Contingent Grant, it was
noticed that an amount of Rs.29,93,325 was drawn from Treasury through self cheque
No. 826291 Dt: 3-3-09. This cheque amount was not encased from Educational
Contingent Fund Treasury Pass Book. As verified from the Cash Book of the
Educational Contingent grant, there are no entries recorded in respect of self cheque
drawn through cheque No.829621/Dt.3-09 for Rs.29,93,325. The connected records
were not produced for verification in audit. Hence, it is constructed that the amount
was misappropriated. Necessary disciplinary action also would need to be taken
against on the persons responsible besides recovering the same.
( Para No. 10 of A.R. of Parishad Edn fund Z. P,EG, District for 2008-09 )
12.3. SFC GRANT RECEIVED - CHEQUE ISSUED BY C.E.O ZP, ONGOLE BUT
NOT ACCOUNTED FOR IN PASS BOOK OF EE PR PARCHUR- MIS
APPROPRIATION OF Rs. 1,00,000.
As verified from the Grants Appropriation Register along with the Cash Book,
an amount of Rs.1,00,000 was released to EE,PR Parchur, by the C.E.O., Zilla
Parishad, Ongole through Cheque No.0051116, dated 1-1-2009 vide Procgs
No.P3/1755/08,dt.30-12-08. As verified from the Bank Statement, the said amount
was not taken into Account of EE., PR, Parchur. But, as verified from the Cash
Book of the C.E.O., Zilla Parishad, General Fund, Ongole the said amount was
encashed in the month of 1/2009. As the amount was not taken in to the Bank
Account or Cash Book of EE PR Pachur, hence it is construed that the amount was
misappropriated.
( Para No. 36 of Audit Report of Z. P,Prakasam District for 2008-09 )
49
12.4. PROVIDENT FUND - MISAPPROPRIATION OF AMOUNTS FROM ZILLA
PARISHAD PROVIDENT FUND - RS.46,16,000.
As verified from the Abstract Registers, Ledgers, Nominal Registers,
Schedules, Cash Book, Pass Book-.etc... of provident fund in Zilla Parishad, for the
year 2008-09, the following defects were noticed.
(1). Opening balance and Closing Balance amounts shown in respective
individual accounts were not countersigned by the competent authority.
(2) . Opening Balance, Closing Balance and interest columns were not being
forward and reconciled correctly from time to time.
(3). In certain cases, names of the individuals were not being noted in the
Ledger Register. Only P.F Account Numbers of the respective individual
were only noted.
(4) . It was observed that necessary postings relating to monthly subscriptions of
P.F deductions from the salary bills of the individuals were not being
posted in ledger register for last 5 years.
(5). In some cases, it was noticed that postings were made in the Abstract
Register, but the same was not in accordance with the P.F. ledger.
(6) Provident Fund part final withdrawals and temporary advances were
sanctioned without updating individual accounts in ledger.
Such irregular maintenance of records lead to the loss to a tune of Rs.46.16 lakhs
as detailed below.:
(i) Applications manipulated.
During the verification of Records it was noticed that some of P.F subscribers
applied for part final withdrawals (Statement enclosed). But as verified from the
applications of the individuals and nominal register, the names of respective Provident
Fund account holders in the applications did not match with the Provident Fund
account numbers in the nominal register. Hence it is construed that the names of the
Provident Fund account holders were altered and amount drawn through benami
names instead of original names.
(ii) Fake entries made in the Abstract Register.
In spite of suitable audit objections already being raised in para No: 50 of
Zilla Parishad General Fund of 2007-2008, no action has been taken for rectification
of the defects as pointed out there in on the maintenance of Zilla Parishad Provident
Fund Ledger. Further, during the period under audit, it was observed that the same
irregularity was being continued. Applications of provident fund holders and their
respective account numbers the balance amounts available etc- were being
manipulated. ( Statement enclosed).
50
(iii) Creation of Fake schedules.
Provident Fund amounts deducted from the pay bills of Individual concerned
towards P.F. subscription/ adjustment of D.A arrears etc-to be credited basing on the
schedules furnished by the D.D.O.s duly countersigned by the S.T.O concerned.
Instead of that, it was observed that the amounts deducted from the subscriber and
name of the subscriber in the Provident Fund Schedules and the Schedules of the Sub
Treasury Office did not agree each other and the same were manipulated as detailed
below.
Month
& Year
Name of the
employee as
per nominal
Register
Name of the
employee as
per Fake
Schedule
Information as per Fake Schedules
Z.P P.F
Number
S.T.O
Employee
code
Amount
(Rs.)
1 2 3 4 5 6
5/2008 Kallakuri
Ammi Raju
K.Chandra
Shekhara
Rao
2116 0415631 5000
11/2007 Kallakuri
Ammi Raju
K.Chandra
Shekhara
Rao
2116 0415631 5000
(iv) Defects in maintenance of Provident Fund Ledger & Subsidiary Registers:-
As verified from the records, the following defects were noticed in
maintenance of P.F ledgers subsidiary registers as shown below.
The Abstract and Ledger Registers were not brought up to date and duly
counter signed by the competent authority concerned from time to time.
The opening balance, closing balance, subscriptions, adjustments of D.A
arrears were taken in ledger register as per manipulated applications (i.e. fake
applications).
It was observed from the registers (i.e. ledger and abstract registers) relating to
previous years and manipulated applications that the individuals who were sanctioned
part final withdrawals were already retired or expired. It is prima facie the amounts
tampered which is quite irregular as per Treasury and Financial Code.
In other some cases, it was observed that some of pages from the ledger which
might have shown that P.F. accounts were being closed were intentionally removed
from register. But the valid reasons if any were not pointed out in audit in verification.
(v) Cheques were not issued in a proper way.
Cheques of P.F. part final withdrawals were to be dispatched from dispatch
section. But, it was told in audit that the cheques were handed over to the applicants in
person. But, in that case, the acknowledgements in token of receiving the cheques
were not produced to audit.
(v) Utilization Certificates are not taken from Competent Authority:-
It was observed that the utilization certificates issued by the Head Master/
Mandal Education Officer stating the utilization of the part final withdrawals
concerned were not furnished to audit for verification.
(vii) Tampering of records - withdrawal of part final amounts:-
51
In the light of the above an aggregate amount of Rs.55,76,000 as detailed in
the statement was mis-appropriated by way of tampering the records, such as names
of Provident Fund account holder and their Provident Fund Account Numbers.
Mostly, the amount drawn as Part-Final withdrawals by the Provident Fund holders
was Mis-appropriated. Further, the issue of Cheques to the Provident Fund holders
were also not made in a proper way i.e. through dispatcah section. Instead of doing
that the cheques were issued by hand.The payees acknowledgements were also not
pointed out in audit.
Therefore in the light of the above it is construed that the competent
authority, supervising authority and Drawing and Disbursing Officer concerned have
grossly violated the due procedures causing loss to a tune of Rs.46,16,000 by way of
Mis-appropriation. Therefore a detailed investigation needs to be taken besides
making recovery of the amount of Rs.46,16,000 from the person/persons responsible
under R.R Act and furnished the information to audit for verification.
( Para No.46 of A. R of Z. P, West Godavari District for 2008-09 )
12.5. XII F.C GRANT-FDRs UNDER XII F.C. GRANT TRANSFERRED AND
DEPOSITED INTO OTHER BANK AT KAKINDA-TRANSACTIONS NOT TAKEN
INTO CASH BOOK-INTEREST NOT CREDITED-MISAPPROPRIATION OF
FUNDS- Rs. 8, 30,386.
During the course of audit for the year 2008-09, it was noticed that a sum of
Rs. 4,14,00,000 was deposited in various banks. Out of which a sum of
Rs.2,54,00,000 was reinvested along with the interest. The remaining balance of
Rs.1,60,00,000 was not drawn and reinvested along with the interest of Rs.5,25,594
even after maturity date.
Further, the concerned Bank Pass Book in which the above FDRs were
deposited along with the amount of Rs. 2,50,00,000 drawn on 17-3-09 from Sub-
treasury was also not made available for audit. This is evident that the Executive
Authority has deposited the funds under XII FC in the bank other than the VSP Dist
with malafide intension and to maintain the Pass books un-authorizidely which
resulting violation of rules and misappropriation through interest accrued by Deposits.
As verified from the above pass book and other records it was noticed in audit
that only a sum of Rs 5,25,597 towards interest which was due on 18-03-09 on FDRs
transferred to Kakinada was only remitted to the XIIFC. Funds and the remaining
amounts which were drawn through self cheques were not remitted to XIIFC funds.
As the amount drawn on self cheques was duly transferred to some other bank it is
noticed in audit that the entire amount was thus misappropriated and caused loss to
the funds as noted below
# Names of Bank & FDR No.
Fax
value
Amount Deposited in Andhra
Bank with interest
1 S.B.H. Alamarada
TDR No. 000106/31-5-08
20-00 1. BC.No. 166048/18-3-09 - 700000
2. BC.No. 166049/18-3-09 - 700000
3. BC.No. 166050/18-3-09 - 662126
2062126
52
2 Punjab & Sind Bank 20-00 BC. No. 006445/19-3-09 - 2098408
3 ING Vysya Bank, VSP, TDR
No.752091028860 Dt: 6-9-08
25-00 - 19-3-09 2628835-62
4 SBI, Ukkunagaram
TDR.No.216414/6-10-08
40-00 1.BC.No.605601/18-3-09 - 4083153
2.BC.No. 605602/28-3-09 - 7172
3. BC.No. 605595/18-3-09 - 3076
4090401
5 BOB, Dabagardens
0529005/6-20-08
20-50 BC.No.559987/19-3-09 - 2050180/-
6
APGUB.
Muralinagar
144703/20-11-08
20-00 1.145871/18-3-09 - 950000
2.145872/18-3-09 - 950000
3.145873/18-3-09 - 126290
4.145874/18-3-09 - 5621
2031911
7 Andhra Bank Dabagardens,
TDR. No. 84003/20-6-2008
15-00 18-3-09 1563733
160-00
Principle 16000000
Interest 525594
Total 16525594
Amount drawn from Treasury
& deposited in Bank
25000000
Total deposit in Andhra Bank
Kakinada
41525594
Interest occurred on A/c No: 034710100001459 not remitted to 11th
Finance Fund
Thus, an amount of Rs. 8,30,386 was misappropriated . Further the details of
interest accrued on the amount of Rs.2,65,00,000 deposited was also not made
available for audit.
Date Amount
20-3-2009 333026
31-3-2009 128835
15-4-2009 73733
5-5-2009 98302
5-5-2009 88176
5-5-2009 7484
5-5-2009 2640
7-5-2009 5945
7-5-2009 66695
7-5-2009 683
7-5-2009 21197
16-5-2009 16542
3-8-09 385
2-6-09 500000
Total 1355083
Amount transferred to 11 th finance Fund A/c No:
4456
83525597
Amount of interest 830386
53
The matter would need to be investigated and the interest accrued on deposits
may be arrived and recovered the same from the persons responsible .
( Para No.52 of Audit Report of Z. P.Vishakapatnam District for 2008-09)
12.6. CONTINGENCIES-HUGE AMOUNTS INCURRED FOR XEROX INSPITE OF
PURCHASE OF NEW XEROX MACHINE-MISUTILISATION OF FUNDS
:Rs.40,000.
During the year 2008-09 nearly an amount of Rs.40,000 was spent towards
Xerox at different times and the amounts were drawn both exclusively and as part of
the contingency bill every month. This huge expenditure on Xerox was incurred
inspite of availability of a new Xerox machine in the Zilla Parishad . Even the sub
vouchers produced for the Xerox did not contain any details like No. of copies made
and price charged for each copy etc.,
Hence it is suggested to use the in-house Xerox machine to the extent possible
and cut down on the expenditure on Xerox from the outside.
( Para No.10 of Audit Report of Z. P.Vizayanagaram District for 2008-09 )
13. EXCESS PAYMENTS
Excess payments under the following categories were pointed out in the Audit
Reports of the respective Zilla Parishads in the State.
1. Excess payment due to erroneous pay fixations.
2. Irregular sanction of leaves
3. Excess payment of Travelling allowances.
4. Excess and irregular payment of leave travel concession.
5. Excess payment of house rent allowances.
6. Excess payments of surrender leave salary.
7. Excess payment in works.
The inadmissible excess payments made are recoverable from the persons
responsible.
735 No of objections involving a sum of Rs.174.91 lakhs were noticed under
this category during the year under report. The same was incorporated in Statement
No.4(2) appended to this report.
13.1. GENERAL FUND A/c 2008-09- VEHILE FUEL CHARGES -INCURRED
MORE THAN THE LIMITATION BY CEO/ Dy.CEO - IRREGULAR - NEEDS
RECOVERY Rs. 1,15,704.
In G.O.Ms. No: 602 PR & RD ( Progs -III) Deptt Dt: 4-10-90 R/w Govt
Memo No: 9558/ Prog-IV/ 91-1 Dt: 25-2-1991 PR & RD, there are certain ceiling
for usage of fuel for the vehicles used by the Government Officials. During course of
audit of expenditure of Zilla Parishad General Fund A/c of ZP Visakhapatnam, for the
year 2008-09, it is noticed that the fuel consumed charges used more than the limits
prescribed for Vehicle provided by the Government to the officials as detailed below.
54
Vr No &
Date Vehicle Month
Lts
actually
Used
Amoun
t paid
Lts
to be
used
Amount
admissib
le
Excess
paid
25/30-4-
08
AP 31 6822
AP 31 A 8388
AP 11 C8279
3/08 320 17,830 160 8,898 8,932
63/5-08 ,, 4/08 306 17,009 160 8,898 8,111
89/5-08 ,, 5/08 420 23,365 160 8,898 14,467
145/7-08 ,, 6/08 332 16,199 160 8,898 7,301
180/8-08 ,, 7/08 529 27,046 160 8,898 18,148
275/ 10-08 ,, 8/08 477 26,144 160 8,898 17,246
353/10-08 ,, 9/08 357 20,450 160 8,898 11,552
381/11-08 ,, 10/08 370 19,609 160 8,898 10,711
407/ 12-08 ,, 11/08 186 10,850 160 8,898 1,952
656/ 1-09 ,, 12/08 261 12,929 160 8,898 4,031
594/2-09 ,, 1/09 336 18,694 160 8,898 9,787
639/ 3-09 ,, 2/09 299 12,364 160 8,898 3,466
Total 1,15,704
The excess amount paid towards POL should be recovered from the persons
responsible unless excess expenditure be ratified by the Government.
( Para No.13 of Audit Report of Z. P.Vishakapatnam District for 2008-09)
13.2. CONTINGENCIES-WATER CHARGES PAID TO GVMC FROM THE
GENERAL FUNDS - IRRGULAR - NEEDS RECOVERY Rs. 41,556.
An amount of Rs. 41,556 was drawn and paid to the GVMC towards water
charges of Z.P. Quarters as detailed below. But as per sub rule 2 of FR 45-IV the
water charges have to be born by the staff who occupied the quarters. Hence
necessary action may be taken to recover the water charges from the staff and made
good to the Zilla Parishad, General Funds.
Vr No: Details of expenditure Amount
24/4-08 1/08 to 3/08 10,398
143/ 7-08 4/08 to 6/08 10,389
543/1-09 7/08 to 9/08 10,389
661/ 3-09 10/08 to 12/08 10,389
41,556
( Para No.50 of Audit Report of Z. P.Vishakapatnam District for 2008-09)
14. WASTEFUL EXPENDITURE
The canons of financial propriety envisaged in the Andhra Pradesh Financial
Code are sacrosanct for all Government Authorities entrusted with authorizing or
incurring of expenditure from public funds. They are expected under Articles 3 to
exercise the same diligence and care in expending public money under their control as
persons of ordinary prudence would exercise in respect of their own money.
Government have issued instructions through various orders and also incorporated in
the statutes of Local Bodies the various items on which public money can be
expended and the principles to be adhered to while expending on such items. Yet, it
was noticed in audit that the funds of Zilla Parishads were several times incurred
55
without adhering to the laid down principles leading to the wasteful expenditure of
public money. All the cases of such wasteful expenditure observed in the audit of
Zilla Parishads for the year 2008-09 were expenditures that were avoidable,
extraordinary and lacked proper planning.
The purposes for which the Zilla Parishad Fund may be applied include all
objects expressly declared obligatory or discretionary by the relevant laws or rules
made there under and in general everything incidental to administration. Contrary to
rules and instructions, an amount aggregating to Rs. 6.44akhs in number of paras 23
was spent during the year on wasteful item. The wasteful expenditure noticed during
the course of the audit of the Zilla Parishads is in the following orders:-
1. Purchase of Maps and Charts not commenced by the Government/Director of
School Education, A.P. Hyderabad.
2. Huge expenditure on inaugural functions of the offices.
3. Publication charges of achievements made in news papers.
A few of such cases pointed out in the Audit Reports classified according to the
type of their wastage are illustrated here under
14.1 PURCHASE OF OPERATING SYSTEM (WINDOWS VISTA BUSINESS VERSION)
WASTEFUL EXPENDITURE –-Rs. 1,41,939.
During the course of audit it was noticed that a sum of Rs.1,41,939 was spent
from ISL funds for purchase of 14 units of operating systems VISTA Business
Version from M/s Silicon Business Solutions Pvt., Limited, Hyderabad. In the above
expenditure the following irregularities were find out the ISL funds are meant for
constructions of community latrines in rural areas not for other purpose.
1. when the Window XP is available purchase of Windows vista is wasteful
expenditure, as the VISTA is a failure operating system and not useful for the regular
office work.
2. While purchasing the Software/Hardware for the use of computers technical
guidance from the authorities of APTS/NIC/GDS is required. But the same was not
obtained in this regard. As the Operating System purchased without technical advice
from the concerned authorities and the same is not used for its purpose.
3. The connected stock register relating to the details pertaining to installation of
Windows VISTA Operating System is not produced for audit for verification of the
correctness of the stock available in stores.
Therefore, it is construed that the entire amount spent for the above purpose is
wasteful and need to be recovered from the persons responsible... (Para No.26 of the
A.R of Zilla Parishad, Khammam Disrict for 2008-09)
14.2. ADVERTISEMENT PUBLISHED ON THE OCCASION OF SAKSHI DAILY PAPER
OPENING DAY BY HONORABLE CHAIR PERSON – WASTEFUL EXPENDITURE.
Rs..25,920.
During the course of audit it was noticed a sum of Rs. 25,920 was drawn and
paid in voucher No.456/12/08 to Sakhsi Telugu Daily News paper towards the
payment for advertisement charges for publishing the congratulatory message to
56
Sakshi by the Honorable Chair Person by way of self Cheque. The advertisement
should be related tenders, leases auctions and notices regarding to the staff of the
Office (if the information was not possible to send personally) were admissible vide
G.O.Ms.No.704/PR Dt.5.11.1994. Hence, the above expenditure is a wasteful and
needs to be recovered from the person responsible and made good to the ZP funds, as
the said advertisement is no way re;ated tp tje activies of ZP.
(Para No.9.1 of the A.R of G. F, Zilla Parishad, Kadapa for 2008-09)
15. INSTANCES OF CASES UNACCOUNTED FOR
Under Section 197 of Andhra Pradesh Panchayat Raj Act, 1994 all moneys
received by the Zilla Parishad shall be properly accounted for and lodged in the
nearest Government Treasury in the personal deposit account of the Zilla Parishad.
Further the Zilla Parishad Chief Executive Officer shall arrange for the proper
maintenance of stock accounts as well as collection of revenue and cause verification
at the end of every half year as required in G.O.Ms.No.559, Panchayat Raj, Rural
Development and Relief (Accounts-I) Department dt.5.9.1994 owing to failure to
check periodically as prescribed, an amount aggregating to Rs. 2235.75 Lakhs
remained unaccounted for which 116 objections raised as detailed in the Statement
No.4 (3) appended to this report.
16. PENDENCY OF UTILIZATION CERTIFICATES
According toArt 211-A (2) of the Andhra Pradesh Financial Code Volume-I,
read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, it is the responsibility of
the Grant Receiving Authority to send the Utilization Certificates in the proforma
prescribed duly certified by the District Audit Officer, State Audit Department. But
heavy No. of Utilization Certificates were not furnished to audit for certification and
transmission to the Grant ReleasingAuthorities concerned.
In G.O.Ms.No. 507, Fin (TFR) Deptt., dt. 10-4-2002, the Government have
among others prescribed the pre-condition under para 12 of G.O. for further drawal of
Funds from April, 2002 onwards by the Local Bodies / Public Sector Enterprises,
Autonomous Bodies and other Grant-in-Aid institutions as follows.
“Utilization Certificates certified by the Statutory Auditor, that the funds
previously released have been fully and properly used for the purpose for which they
have been sanctioned” be furnished.
A aforesaid Government orders are not being observed by the Executive
Authorities resulted in heavy pendency of Utilization Certificates to be furnished to
the Grant Releasing Authorities. Such cases are reported in the ARs of ZP s shown in
the statement appended herewith.
As per instructions issued in Article-211-A (a) of the A.P. Financial Code,
Volume I, it is the responsibility of the grant receiving authority to send the
Utilization Certificate’s in the proforma prescribed, duly getting them certified by the
concerned District Audit Officers. But it was found during the course of audit that a
large No. of Utilization Certificate’s were pending receipt, an amount aggregating to
57
Rs.4327.49 Lakhs for which 115 paras raised on Pendency of utilization
certificates as detailed in Statement No.4(3). Proper utilization of the grant could
not be certified in audit. Even there is a chance for deviation of the works and also
chance for fraud. Due to non-furnishing of the UCs, the further grant would not be
received.
16.1. U.CS - NON - SUBMISSION OF UTILIZATION CERTIFICATES BY
THE EXECUTIVE AUTHORITY TO CHIEF EXECUTIVE OFFICER, ZILLA
PARISHAD ELURU.
According to Article 211(A) of A.P. Financial Code Volume -I, it is the
responsibility of the grant receiving authority to send the utilization certificates to the
grant releasing authority duly certified by the District Audit Officer, State Audit. The
utilization certificates in respect of grants as detailed below have not been furnished
to audit for verification and onward transmission to Government through the Chief
Executive Officer, State Audit, Zilla Parishad, Eluru.
# Name of the Grant Total Amount(Rs.)
1 T.F.C Grant 2,00,00,000
2 S.F.C Grant 1,27,08,097
3 35% General Funds 4,08,08,456
4 9% D.W Funds 57,13,224
5 15% SC Funds 71,48,721
6 6% ST Funds 12,16,875
7 15% W.W Funds 81,70,340
(Para No. 63 of Audit Report of Zilla Parishad, Eluru W.G.Dist. for 2008-09)
16.2. ZP, KADAPA- ADVANCE-SANCTION OF MARRIAGE ADVANCE UTILIZATION
CERTIFICATE NOT PRODUCED-AMOUNT NOT DEPOSITED IN LUMP SUM.
During the course of audit of ZP Kadapa for the year 2008-09, it was noticed
that on the following vouchers an aggregate amount of Rs.21,33,000 was drawn and
paid to the employees towards Marriage Advance for the year 2008-09 as given below
as per rule 15-D of the Provident Fund Rules.
As prescribed in Rule 15-D of Provident Fund Rules, the subscriber shall
furnish a Utilization Certificate to the Sanctioning Authority within the period of one
month from the date of Marriage failing which the entire amount shall be recovered
and deposited into the fund in a lump sum. But, in the following cases the connected
Utilization Certificates were not produced and amount was not remitted either, which
is against the rules.
Statement showing the sanction of Marriage Advances Ucs not produced in
Kadapa District.
58
# Vr.No.&
Date
Name of the Employee &
Designation Sarva
Sri/Smt
PF No. Purpose of sanction Amount
(Rs.)
1 95/18.04.08 K.Jaganatha Reddy, HM 8690 Marriage Advance to
his daughter 400000
2 153/05.08 T.C.Reddemma 9942 Marriage Advance to
his daughter 150000
3 179/5-08 P.Nageswar Reddy, SGT 8475 Marriage Advance to
his daughter 50000
4 653/7-08 K.Venkatarami Reddy, HM 10970 Marriage Advance to
his daughter 55000
5 688/7-08 Y.Sarda Devi, SGT 11519 Marriage Advance to
his daughter 35000
6 858/8-08 V.Ramakrishna Reddy,
SGT 11811
Marriage Advance to
his daughter 52000
7 888/8-08 B.Ramanuja Naidu, SA 8420 Marriage Advance to
his daughter 95000
8 943//8-08 J.Kalavathamma, SA 9487 Marriage Advance to
his daughter 150000
9 949/9-08 N.Viswanatha Reddy, HM 10688 Marriage Advance to
his daughter 40000
10 1164/108 A.Badri Narayana,SA 9614 Marriage Advance to
his daughter 72000
11 1493/11-08 K.Narayana,SA 10618 Marriage Advance to
his daughter 95000
12 1497/11-08 P.Changalrayadu,SGT 12579 Marriage Advance to
his daughter 40000
13 1547/12-08 A.Ramasubbaiah,SGT 13009 Marriage Advance to
his daughter 120000
14 1765/12-08 CV.Subba Reddy, HM 8464 Marriage Advance to
his daughter 400000
15 1908/2-09 N.Venkataramana,O.S. 11153 Marriage Advance to
his daughter 129000
16 1936/2-09 S.Abbdual Razak,HM 8917 Marriage Advance to
his daughter 100000
17 2032/3-09 U.Kondaiah,SA 11136 Marriage Advance to
his daughter 150000
Total 2133000
16.3. DEPARTMENTS – UTILIZATION CERTIFICATES NOT PRODUCED KADAPA
DISTRICT -- GENERAL FUNDS- AMOUNT RELEASED TO VARIOUS
INSTITUTIONS/DEPARTMENTS.
During the course of audit an amount of Rs.8,20,72,528 was drawn from the
Zilla Parishad, General Funds and released to the various departments as detailed
below. But the Utilization Certificates were not produced for audit. Hence action
should be taken to obtain the Utilization Certificates and produce to audit for
verification.
#
Vr.No.&
Date Purpose and to whom released Amount
1 110/6-08 EE RWS Rajampet towards operation and
maintenance of CPWS Schemes
1334500
2 110/6-08 EE RWS Pulivendala towards operation and
maintenance of CPWS Schemes
3500000
3 112/6-08 Assistant Director, Agriculture (SC) Badvel 177750
4 112/6-08 Assistant Director, Agriculture (SC) LR Palli 177750
59
5 112/6-08 Assistant Director, Agriculture (SC)
Rayachoty
177750
6 113/6-08 Assistant Director, Agriculture (SC) Kadapa 177750
7 266/9-08 Member of Secretary DWSC Kadapa (TFC )
for sanitation
20000000
8 267/9-08 EE PR Kadapa for Repairs to A.C.Guest
House in ZP
500000
9 331/10-08 EE RWS Rajampet for maintenance of CPWS 1490500
10 331/10-08 EE RWS Pulivendala for maintenance of
CPWS
5045000
11 332/10-08 EE RWS Kadapa for maintenance of CPWS 238038
12 366/11-08 Pay and accounts officer telugu ganga project
Kadapa for Construction of new meeting hall
ZP Kadapa
5000000
13 440/12-08 EE PR Kadapa for Repairs to A.C.Guest
House in ZP
130000
14 492/1-09 Commissioner, AMR, APARD, Hyderabad 200000
15 513/2-09 EE RWS Kadapa for maintenance of CPWS 587490
16 514/2-09 EE RWS Rajampt for maintenance of CPWS 1997000
17 514/2-09 EE RWS Pulivendala for maintenance of
CPWS
2250000
18 606/3-09 Assistant Director, Agriculture (SC) Badvel 246250
19 606/3-09 Assistant Director, Agriculture (SC) LR Palli 246250
20 606/3-09 Assistant Director, Agriculture (SC)
Rayachoty
246250
21 608/3-09 Assistant Director, Agriculture (SC) Kadapa 246250
22 614/3-09 SC RWS Kadapa for sanitation 39800000
Total 83768528
16.4 ZP, KHAMMAM-ZILLA PARISHAD GENERAL FUNDS -9% DRINKING WATER
FUNDS RELEASED TO EXECUTIVE AGENCIES-UTILISATION PARTICULARS
WANTING Rs. 26,44,416
During the course of audit of the General Fund of the Zilla Parishad,
Khammam, it is noticed that the chief Executive Officer, ZP, Khammam have
released 9% drinking water funds to the Executive Engineers of RWS Project
Divisions, Khammam and Kothagudem as detailed below and paid through the PAO,
Khammam, subject to submission of Utilization Certificates. The Executive Agencies
have not furnished the Utilization Certificates till the close of audit. The Zilla
Parishad authorities have not taken any action for obtaining the Utilization
Certificated from the concerned.
In the absence of the Utilization Certificates the correctness of the expenditure
incurred by the Executive Agencies could not be verified in audit. The same would
need to be obtained and produced to audit for verification to admit the expenditure.
60
# Vr.No. & Date Amount Name of the Executive Agency
1 36/06.05.08 46126 E.E.R.W.S.Khammam
2 111/19.06.08 59977 E.E.R.W.S.Khammam
3 420/05.11.08 99908 E.E.R.W.S.Khammam
4 340/29.09.08 60000 E.E.R.W.S.Khammam
5 424/13.11.08 210000 E.E.R.W.S.Kothagudem
6 421/08.11.08 200000 E.E.R.W.S.Khammam
7 476/10.12.08 34080 E.E.R.W.S.Khammam
8 505/26.12.08 30000 E.E.R.W.S.Khammam
9 552/22.01.09 500000 E.E.R.W.S.Kothagudem
10 581/30.01.08 49529 E.E.R.W.S.Khammam
11 629/26.02.09 199468 E.E.R.W.S.Khammam
12 693/31.03.09 89244 E.E.R.W.S.Khammam
13 692/31.03.09 196366 E.E.R.W.S.Khammam
14 694/31.03.09 29718 E.E.R.W.S.Khammam
15 695/31.03.09 120000 E.E.R.W.S.Khammam
16 652/20.03.09 720000 P.A.O.Khammam
Total 2644416
16.5 ZILLA PARISHAD –SEIGNIORAGE GRANT PAID TO VARIOUS AGENCIES –
UTILISATION PARTICULARS NOT FURNISHED Rs.35,25,000.
During the course of audit of the General Funds of ZP, Khammam, it is
noticed that the Chief Executive Officer, Z.P., Khammam have distributed
seigniorage grant to various agencies as shown below during the year, subject to
submission of utilization certificates. The Executive Agencies have not furnished the
Utilization Certificates required till the close of audit. The ZP authorities have not
taken any action for obtaining the same.
# Vr.No. & Date Amount Name of the Executive
Agency
1 82/13.06.08 400000 E.E.P.R.Khammam
2 112/19.06.08 200000 E.E.P.R.Khammam
3 166/05.07.08 200000 E.E.P.R.Khammam
4 215/05.08.08 200000 E.E.P.R.Kothagudem
5 298/24.09.08 200000 E.E.P.R.Khammam
6 305/25.09.08 950000 E.E.P.R.Khammam
7 308/25.09.08 200000 E.E.P.R.Khammam
8 361/17.10.08 200000 E.E.P.R.Khammam
9 419/5.11.08 300000 E.E.P.R.Khammam
10 653/20.03.09 500000 PAO,.Khammam
11 655/20.03.09 175000 E.E.P.R.Khammam
Total 3525000
16.6. ZILLA PARISHAD GENERAL FUND-6% S.T. EARMARKED FUNDS
CONTRIBUTION AND ALLOCATION MADE TO VARIOUS AGENCIES- UTILISATION
PARTICULARS NOT FURNISHED Rs. 21,50,000.
During the course of audit of the General Funds of the ZP, Khammam, it is
noticed that the Chief Executive Officer, ZP, Khammam has contributed and
61
allocated 6% S.T.funds to the various agencies as shown below during the year,
subject to submission of Utilization Certificates. The Executive Agencies have not
furnished the utilization certificates till the close of audit. The ZP authorities have not
taken any action in this regard.
But the executive agencies have not submitted the utilization certificates to ZP
authorities. In absence of the same the correctness of the expenditure incurred by the
executive agencies could not be verified. The same would need to be obtained and
produced to audit for verification to admit the expenditure.
# Vr.No. & Date Amount Name of the Executive Agency
1 48/17.05.08 300000 E.E.P.R. Kothagudem
2 189/29.07.08 400000 E.E.P.R. Kothagudem
3 219/11.08.08 300000 E.E.P.R. Bhadrachalam
4 380/23.10.08 200000 E.E.P.R. Kothagudem
5 533/12.01.09 200000 E.E.P.R. Khammam
6 610/24.02.09 200000 E.E.P.R. Kothagudem
7 649/20.03.09 550000 P.A.O. Khammam
Total 2150000
16.7. KHAMMAM-CONTINGENT GRANTS – UTILISATION CERTIFICATE NOT
FURNISHED –NEEDS ACTION .
In continuation of para No.10 of the Audit Report for the year 2007-08 and on
verification of the Annual Accounts of the Parishad Education Fund for the year
2008-09, the contingencies grant released by the District Educational Officer,
Khammam, the expenditure booked and balances left over for each year is as detailed
below.
Year Opening
Balance
Grants
Releases Total Expenditure Balance
1991-92 - 619520 619520 328334 291186
1992-93 291186 1014188 1332374 354653 977721
1993-94 977721 - 977721 649068 328653
1994-95 328653 - 328653 - 328653
1995-96 217903 - 328653 110750 217903
1996-97 (-)47747 - 217903 265650 (-)47747
1997-98 45432 189000 141253 95901 45432
1998-99 1043885 1386000 1431352 387467 1043885
1999-00 (-)56153 - 1043885 1110038 (-)56153
2000-01 (-)280318 - (-)56153 245165 (-)280318
2001-02 1001182 1305000 1024682 23500 1001182
2002-03 917552 598885 1600067 682515 917552
2003-04 627032 199551 1117103 490071 627032
2004-05 1822021 1791705 2418737 596716 1822021
2005-06 1399511 200134 2022155 622644 1399511
2007-07 4734641 4199698 5599209 864568 4734641
2007-08 4734641 3799181 8533822 1410109 7123713
2008-09 7123713 - 71,23,713 2,64,145 68,59,568
62
As on 31.03.09, the outstanding balances of contingencies grant is
Rs.68,59,568. The Grant Appropriation Register is not being properly maintained.
Necessary action would need to be taken to maintain the Grants Appropriation
Register with an opening balance of grant Rs.71,23,713 as on 01.04.08. Immediate
action would to be taken to furnish the year wise Utilization Certificates for the year
1991-92 to 2008-09 to the District Audit Officer, State Audit, Khammam for counter
signature and onward transmission to the Grant Releasing Authority.
16.8. NELLORE - GRANTS ADJUSTED TO Z.P.P. AND DISTRIBUTED TO
MANDAL PARISHAD, GRAM PANCHAYATS etc., -UTILISATION CERFICIATES
NOT OBTAINED - NEEDS EARLY ACTION.
`The following Grants were adjusted to the Zilla Parishad,Nellore under
general funds during the year under audit and inturn distributed among the all
Mandal Parishads in the District. But, the Utilization Certificates for the amounts
sanctioned were not obtained and produced to audit for verification
.
The details of releases under each head were as detailed below.
# Nature of Grant Amount No.of U.C.s
1 Best Gram Panchayat award 17,300 1
2 Opening libraries in S.C. Localities 12,100 1
3 Contingencies and TA to MPPs 2,78,000 1
4 Honorarium to MPTC members 26,45,600 1
5 Honorarium & TA to Non- official of
M.P.P.
3,59,200 1
( Para No.38 of Audit Report of Z. P ,Nellore District for 2008-09 )
16.9. CONTINGENT AMOUNT PAID TO HEAD MASTERS OF THE Z.P. HIGH
SCHOOLS IN THE DISTRICT - UTILISATION CERTIFICATES NOT
FURNISHED:-
As verified from the cash book along with the connected file, an amount of
Rs.42,90,000 was permitted to be distributed to the High Schools of the Zilla
Parishad, in Prakasam District basing on the number of students available in the
schools vide Progs.Rc.No.E1/1418/2004 Dt.29-7-2008 of the Chief Executive Officer,
Zilla Parishad, Ongole. No Utilization Certificates in the prescribed Proforma and
certified by the District Audit Officer, State Audit, Ongole as required were obtained
from the concerned Head Masters of the High Schools so far to certify the correctness
of the expenditure incurred.
( Para No.6/2 of Audit Report of Z. P ,Prakasham District for 2008-09 )
16.10. UTILIZATION CERTIFICATES NOT PRODUCED -- GENERAL FUNDS-
AMOUNT RELEASED TO VARIOUS PURPOSES TO OTHER EXECUTIVE
AGENCIES.
According to Article 211-A(2) of the A.P. Financial Code Vol -I, it is the
responsibility of Grant Receiving Authority to furnish the U.C.s in the prescribed
proforma and certified by the District Audit Officer, State Audit. The following
Grants were adjusted to the Zilla Parishad under General Funds during the year
under audit and distributed among all the Mandal Parishads in the District. But the
Utilization Certificates for the amounts sanctioned were not obtained and produced to
audit for verification.
63
The Executive Authority has not taken any steps to recover the unspent
amount if any from the agencies concerned. Hence, action would need to be taken to
obtain the Utilization Certificates duly recovering the unspent amount from the
concerned.
# Vr.No.&
Date
Name of the Grants
Transferred
Name of the Executive
Agency
Amount
Rs.
Para
No
1 29/02.06.08 General Fund,
Karimnagar
District. Sports Council,
Karimnagar
65000 24
2 95/15.02.08 1/3rd
share of 6% ST
EMF of General Fund,
Karimnagar
Member Secretary, A.P.,
Co-opertative Finance
Corporation, Karimnagar
510592 25
3 94/15.07.08 1/3rd
share of 15% SC
EMF of General Fund,
Karimnagar
Executive Director,
S.C.Corp.,, Co-op.,Sociaty
Ltd, Karimnagar
1276481 26
4 Progs.No.B1/B
6/278/09
dt.21.2.09
6% ST EMF Grant EEPR., Peddapalli,
Karimnagar
120000 27
5 69/23.06.09 9% of General Fund EEPR(RWS),Manthani,
Karimnagar
25000 29
6 342/10.11.08 9% of General Fund EEPR(RWS),Manthani,
Karimnagar
39000 29
7 267/14.01.08 9% of General Fund EEPR(RWS) Manthani,
Karimnagar
115000 29
8 4/09.04.08 9% of General Fund EEPR(RWS) Karimnagar 148814 30
9 266/14.10.08 9% of General Fund EEPR(RWS),
Karimnagar
50000 30
10 362/12.08 9% of General Fund EEPR(RWS) Karimnagar 83182 30
11 340/10.11.08 9% of General Fund EEPR(RWS), Karimnagar 75000 30
12 68/11.6.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 903247 31
13 105/22.7.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 470000 31
14 107/22.7.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 248800 31
15 230/17.9.08
Seignerage Charges of
ZP., KMR
EEPR.KMR 833148 31
16 261/14.10.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 409910 31
17 297/23.10.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 1230309 31
18 356/ .12.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 165000 31
19 334/ .11.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 897396 31
20 355/ .12.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 108632 31
21 386/16.12.08 Seignerage Charges of
ZP., KMR
EEPR.KMR 209537 31
22 411/7.1.09 Seignerage Charges of
ZP., KMR
EEPR.KMR 290407 31
23 445/30.1.09 Seignerage Charges of
ZP., KMR
EEPR.KMR 408210 31
24 499/27.2.09 Seignerage Charges of
ZP., KMR
EEPR.KMR 525924 31
25 500/27.2.09 Seignerage Charges of
ZP., KMR
EEPR.KMR 52727 31
26 87/4.7.08 Seignerage Charges of
ZP., KM
EEPR(RWS), KMR 140000 32
64
27 106/22.7.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 380000 32
28 201/21.8.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 721906 32
29 235/17.9.08
Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 260000 32
30 300/23.10.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 532953 32
31 339/ .11.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 140000 32
32 360/ .12.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 347000 32
33 361/ .12.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 60000 32
34 379/ .12.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 278293 32
35 387/16.12.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 620000 32
36 399/ .12.08 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 314282 32
37 417/ .1.09 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 222768 32
38 435/ .1.09 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 60000 32
39 448/31.1.09 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 140000 32
40 475/11.2.09 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 194468 32
41 498/2.2.09 Seignerage Charges of
ZP., KMR
EEPR(RWS), KMR 152925 32
42 108/22.7.08 Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
1118000 33
43 204/21.8.08 Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
210000 33
44 236/17.9.08 Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
405000 33
45 301/23.10.08
Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
280000 33
46 341/.11.08 Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
410000 33
47 476/12 .2.09 Seignerage Charges of
ZP., KMR
EEPR(RWS) ,Manthani,
Karimnagar
60000 33
48 489/02.09 15% W&CW
Fund, KMR
EEPR., Peddapally 80000 44
49 489/02.09 General Fund of ZP,
KMR
DM&HO.,KMR 300000 45
50 106/22.07.08 Gneral Fund of ZP, KMR EEPR (RWS), KMR 50000 47
51 442/29.01.99 TFC Grant, KMR SEPR(RWS), KMR 2000000
0
48
52 272/17.10.08 TFC Grant, KMR EEPR(RWS),KMR 7495500 49
53 430/01.09 TFC Grant, KMR EEPR(RWS), KMR 7495500 49
54 185/07-08 Seigniorage fee MP
share,Kadapa
MP Galiveedu,Kadapa 3680214 32
55 192/08-08 SFC MP Share Kadapa MP Kalsapade, Kadapa 570000 32
56 492/1-09 General fund of Kadapa Commr.,
AMR,APARD,Hyd
200000 30
57 267/9-08 General fund of Kadapa EEPR Kadapa for AC
repairs in ZP Guest house
500000 30
65
17. SURCHARGE CERTIFICATES RECOVERY PENDING
In accordance with the provision of the State Audit Act, 1989 and Rules issued
thereunder, the audit of local authorities i.e., ZPs, and schemes as entrusted by the
Government is being conducted and various defects noticed during the audit also
pointed out in the relevant ARs every year. In the case of serious irregularities,
Special Letters are also issued to the Chief Executive Authorities concerned to make
the loss good to the funds of the institutions concerned.
Pursuant to the special letters, surcharge action as per Sec. 10 of the State
Audit Act, 1989 is initiated for recovery of the amounts involved in the clear cases of
loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular
payments. The amount surcharged have to be recovered from the concerned treating
them as Revenue Recoverable under Revenue Recovery Act , 1864 and as per sub-
rule 5 of rule 9 of A.P. State Audit Rules issued in G.O.Ms.No. 130, Finance &
Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the
cases mentioned in the statement appended herewith.
As per Section 10 of the A.P. State Audit Act, 1989 and Sub- rule 1 (b) of
Rule 9 of A.P. State Audit Rules 2000, issued in G.O. Ms. No. 130 Finance &
Planning, Dated: 08-09-2000, the Director of State Audit is empowered for initiating
surcharge proceedings against the persons responsible for causing loss to the funds of
various local authorities. Accordingly the Director of State Audit is issuing Surcharge
Certificates.
After issue of Surcharge Certificate, the course of action available to the
person surcharged is either to remit the surcharged amount with in 60 days after the
date of service on him of the Surcharge Certificate or to appeal to Government against
such surcharge certificate.
If the person Surcharged does not appeal against the Surcharge Certificate
issued and also fails to remit the surcharged amount copies of all Surcharge
Certificates on which no action has been taken for recovery shall be communicated to
the District Collector concerned, by the surcharge issuing authority, to initiate action
for recovery as if they were the arrears of land revenue. The District Collector shall
send the particulars of the said recovery to the said surcharge issuing authority. But
during the course of audit it was noticed that no such action has been taken on SCs
issued by the State Audit Department thereby the very purpose of the surcharge action
is deprived of. Action would need to be taken in recovering the surcharged amounts
from the surchargee who were not reacted within the time as per rules. The inaction of
the revenue department in this regard become lenient in making proper expenditure
and encourages them for misappropriation and fraudulent expenditure.
It is observed in audit for the year 2008-09 that recovery of the Surcharged in
number of paras 04 is pending as at the close of the audit detailed in Statement No.
4(3) to this report.
66
17.1 SURCHARGE CERTIFICATES ISSUED-PENDING RECOVERY Rs.46,556.
The following Surcharge Certificates were issued to the following Executive
Engineer as detailed here under. Action would need to be taken to recover the same
from the persons responsible and to remit the same to the concerned funds as per
rules.
# Year of
AR
Para
No.
Name and Designation of
the Surchargee
Amount
Surcharg
ed
SC No.& Date
1 2 3 4 5 6
1 1993-94 18 Sri C.Venkatapathi, EE 3,050 385/1/01-02,
dt.27-2-2002
2 1993-94 17 Sri C.Venkatapathi, EE 2,468 385/1/01-02,
dt.27-2-2002
3 1993-94 19 Sri M.Nagi reddy,EE 1,924 25568/1317/M/02-1
dt.18.03.03
4 1993-94 32 Sri M.Nagi reddy,EE 1,745 25568/1317/M/02-1
dt.18.03.03
5 1993-94 43 Sri M.Nagi reddy,EE 4,423 25568/1317/M/02-1
dt.18.03.03
6 1996-97 20 SriG.Murali Manohar,EE 4,261 23853/243/M1/03-01
dt.13.04.04
7 1996-97 24 SriG.Murali Manohar,EE 2,568 23853/243/M1/03-01
dt.13.04.04
8 1998-99 23
(a)(b)
Sri.M.Abdul Kareem,EE 7,483 28082/242/M1/03-
01,dt.2-12-04
9 1999-
2000
17 Sri.M.Abdul Kareem,EE 4,484 1216/10/M1/04-1
dt.4.12.04
10 20 Sri.M.Abdul Kareem,EE 1,682 1216/10/M1/04-1
dt.4.12.04
11 27(a) Sri.M.Abdul Kareem,EE 7,191 1216/10/M1/04-1
dt.4.12.04
12 31 Sri.M.Abdul Kareem,EE 5,277 1216/10/M1/04-1
dt.4.12.04
Total 46,556
18. OTHERS
There are other irregularities pointed out in audit which do not come under the
above 17 categories. A few examples are narrated in brief.
A Consolidated Statement No. 4 (3) showing audit objections on others is
appended to the Report from which it could be seen that an amount of Rs. 335.27
lakhs was pointed out in 383 Audit Paras .
18.1. H.B.A LOAN LEDGER ACCOUNTS OF THE PROVINCIALISED NON
TEACHING STAFF OF Z.P. SRIKAKULAM NOT MAINTAINED
PROPERLY –NEEDS EARLY ACTION:
As verified from the Loan Ledger of Loan funds of Zilla Parishad, Srikakulam
for theyear 2008-09 during the course of the Audit, it is noticed that an amount of Rs.
67
55,84,500 was already sanctioned to the provincialised non teaching staff of Zilla
Parishad, Srikakulam towards HBA for construction of House /Purchase of Ready
Built House/ for repairs of the house / purchase of House site as the case may be but
the installments of the advances recovered from the loanees were not properly entered
in the ledger by making necessary postings and arriving the outstaying balance at the
end of the financial year. Precisely the defects noticed at the time of Audit are:
Total loan amount sanctioned was not clearly shown in the ledger.
Individual wise installments were not fixed
In Majority of the cases principal and interest amounts were not distinctively
indicated.
The Closure of the account in the cases of the total recovery i.e. Principal and
interest was not certified.
In case of the Retired/Deceased employees, the date of retirement /Death was not
mentioned.
Yearly recoveries were not totaled and balance left over was not shown
Even if in such cases where the monthly recoveries are recorded, the
particulars of the challans in which the amounts were remitted to the loan fund were
not noticed.
Therefore action would need to be taken to update the ledger accounts of the
said loanees and produced to audit for verification.
(Para No.22 of Loan fund, ZP Srikakulam District for the year 2008-09).
18.2 16% CONTINGENCIES-REFRESHMENT CHARGES SEEMS TO BE HIGH-
NEEDS ACTION TO REDUCE IT. (RS. 3,00,413+ Rs.27,34,055).
During the course of audit, it was noticed that an amount of Rs.3,00,413 was
incurred towards refreshment charges during the year 2008-09 as detailed here under
and the expenditure seems to be high and needs action to reduce it.
As verified from the Annual Account Statement, an amount of Rs.27,34,055
was incurred to wards refreshment charges. But head wise details were not produced
to Audit for verification as required.
(Para No.46 of Loan fund, ZP Srikakulam District for the year 2008-09).
18.3. RECEIPTS OF STATUTORY INCOME NOT WATCHED - INCOME LOST -
NEEDS EARLY ACTION FOR REALIZATION.
It is the responsibility of the Charges Receiving Authority to watch the
demand and receipt of statutory income guaranteed in the Acts and Rules .
68
The following are the details of statutory income not realized.
# Statutory
Income Periods for which yet to be received
Amount
Realised
1 Rs. 4 Grant IV quarter 4322200
2 Surcharge on
Stamp duty
A register would need to be maintained or
watch the adjustment of stamp duty from the
Registrar of Stamps & Registration Department
12527723
3 Seigniorage fee
grant
Vide G.O.Ms.No. No, 335 PR & RD Dt. 6-8-
1996 the Mandal share was 37.5 % out of the
total receipts towards Seigniorage Charges
collected. Action would need to be taken for
ultimate adjustment of Seigniorage share by
addressing the Director of Mines /
Commissioner Panchayat Raj under Sub head
20 assistance to the Mandal Parishads for
apportioning Seigniorage fee collection (
37.5%) this is to be adjusted quarterly through
Commissioner, Panchayat Raj
7704700
4 PS Charges
The works executed under different Charges by
the Grampanchayats in Mandal are being
supervised by Mandal Engineering officer.
Hence the PS Charges recovered form the bills
would need to be adjusted to Mandal Parishad
General Funds
5 Profession Tax
38 % profession tax realised in the Mandal area
should be adjusted to Mandal Parishad general
Funds vide G. O. Ms. No. 544 Revenue CT -II
Dept Dt. 12-7-99 read with letter Rc. No.
191/99-B Dt. 26-11-99 . This has to be
adjusted through commissioner, Panchayat Rah
at the end of every quarter vide G. O. Rt. No.
565 PR & RD Dt. 31-3-1999.
-
6 Markets
For the ZP markets, the mandal share was 37.5
% of total l income. For the Mandal , Markets
the share was 50 % but this was not ealized
during the year Vide ( G.O. Ms. No. 628 PR &
RD Dt. 23-9-1995.
-
7 Entertainment
Tax
40 % total tax collected has to be realised and
adjusted to funds. But this was not done. -
The details of the assigned revenues received from time to time shall be
recorded in the Miscellaneous Demand Register and the DCB shall be maintained by
addressing the authorities of the collection department concerned as below.
(Para No.47.of Loan fund of ZP Srikakulam District for the year 2008-09).
69
18.4. AMOUNT TRANSFERRED TO N.E.D.C.A.P. SRIKAKULAM - AUTHORTY
WANTING NEEDS ACTION - Rs.20,80,000.
On verification of the cash book, it was observed that an aggregate amount of
Rs.20,80,000 was drawn and paid to NEDCAP as detailed under 15% allotment
towards Women & Child welfare during the year 2008-09.
However, the authority under which the said amount transferred to the
NEDCAP was not put forth by the Chief Executive Officer, Zilla Parishad Srikakulam
without which the expenditure cannot be admitted in audit . Therefore, action may be
initiated to produce the authority along with the connected U.Cs and other record for
verification of audit.
# Rc.No./date Amount transferred to
NEDCAP
1 2208/08/B5/20-9-08 20,00,000
2 2208/07/B5/15-12-08 80,000
TOTAL: 20,80,000
(Para No.48.of Loan fund of ZP Srikakulam District for the year 2008-09).
18.5. 12TH
FIANANCE CHARGES SCOPE -IRREGULARITY NOTICED -ACTION
CALLED FOR ACCOUNT NO. 11152337371 SBI, SRIKAKULAM.
On verification of the 12th
Finance Account it was observed that the following
irregularities were taken into as against the rules prescribed in the G.O.Ms.No.33 PR
& RD Dept. Dt. 3-2-06 and progs. No.10669 CPR/RE/2005,Dt. 8-8-06.
1. The closing balance was not reconciled with the Bank Pass Book.
2. The interest accrued was not noted in the cash book as required.
3. The total Charges shall be distributed proportionately based on the
number of hand Pumps available at Zilla Parishad level.
4. Amount shall be allocated to the Gram Panchayats as per the census of
the 2001.
5. An aggregated amount of Rs.4,87,08,007 has been incurred to
maintain the following schemes 6. P.W.S.Schemes 7. Staff salaries
8. Restoration of defunct PWS Schemes
9. Repairs to P.W.S Schemes
10. Purchase of Spare parts
11. Indiramma sanitary latrines, Adharsha houses for 2007-08
12. Power consumption charges
13. Paid to abetment charges
However, the head wise expenditure particulars were notfurnished for
verification and the connected vouchers, M.Books,Stock files were not produced to
audit for verification . Therefore, the matter may be investigated and action taken in
this regard.
70
ABSTRACT
Opening Balance : 60,68,169
Receipt : 5,76,50,162
Total: 6,37,18,331
Expenditure 4,87,07,938
Closing balance 1,50,10,393
(Para No.50.of Loan fund of ZP Srikakulam District for the year 2008-09).
18.6. MISCELLANEIOUS DEMAND REGISTER - NOT MAINTAINED PROPERLY.
The MDR in respect of all miscellaneous items like rents on ZP Lands and
buildings , sites , other recoveries of revenue etc., were not entered separately and
recoveries were also not watched properly. All the misc., revenues, i.e., all items
such as revenue yielding properties should be taken to the MDR, and their
realization watch irregularly. In the absence of the fixation of demand, it could not
be verified whether the entire amounts due to Zilla Parishad, Visakhapatnam have
been realized promptly or not. Any loss sustained due to non proper maintenance of
register would need to be made good by the persons responsible. The abstract arrived
at for surcharge on stamp duty was not attested by the Chief Executive officer, Zilla
parishad, For other items no abstract was prepared. The demands for other dues were
not recorded and recoveries watched..
b. Register of Properties.
The register of properties in which the Zilla Parishad Building & Lands on
which rents and lease amounts to be derived and entered was not produced to verify
whether all the properties on which such income is due to Zilla Parishad was realized
in full after fixing up of rents and obtaining lease deeds etc., Early action would need
to be taken to produce the register of properties along with miscellaneous Demand
Register. In the absence of the year wise details, it could not be verified whether the
amount due to be barred by limitation or not.
(Para No.59 of Loan fund, ZP Srikakulam District for the year 2008-09.
18.7. APPROVED CONSOLIDATED ACTION PLAN NOT PRODUCED.
As per Para No: 14 of the Progs No: 10669/CPR& RE/J1/ 2005, Dt: 8-2-06
of the Commissioner of Panchayat Raj and Rural Employment , Hyderabad, a
consolidated Action Plan for the District shall be prepared by the District Panchayat
Officer in respect of Gram Panchayats and by the Chief Executive Officer, Zilla
Parishad in respect of the Zilla Parishad and shall be submitted to the Government
and also to the Commissioner PR & RE before 18-2-2006. But, the consolidated
approved Action Plan if any prepared was not produced to the audit. The same may
be produced to audit at an early time
(Para No.60.of Loan fund, ZP Srikakulam District for the year 2008-09).
71
18.8. PROVIDENT FUND-REGISTER OF LIFE ASSURANCE POLICIES-NOT
MAINTAINED NEEDS ACTION .
The register of Life Insurance Policies was not written up and produced for
verification during the course of audit. Non submission of the register of life
Insurance Policy, details of policies, no. of Policies such as the name of the policy,
date of maturity of the policy, and amount of policy, amount of premium, date of
receipt of the policy, date of assignment and date of acknowledgment of the policy
after registration of assignment in the books of the company etc., could not be verified
in audit. Early action would need to be taken to produce the above register for
verification in audit.
(Para No.61of Loan fund, ZP., Srikakulam District for the year 2008-09).
19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES RECEIVED BUT NOT
REALIZED WITHIN TIME :
NIL
DATE 25.02.2012
HYDERABAD DIRECTOR
STATE AUDIT,
A.P., HYDERABAD.
72
73
\
STATEMENT No. 1
STATEMENT SHOWING THE STATUS OF ZP AUDIT
SL.
No.
NAME OF
THE
INSTITUTION
DEMAND AS ON
1-4-2009
AUDITS
COMPLETED AS
ON 31-3-2010
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 ZILLA
PARISHADS 2 22 0 22 2 0
74
STATEMENT No. 1 (1)
STATEMENT SHOWING STATUS OF AUDIT OF ZILLA
PARISHADS AS ON 31-3-2010
SL
No.
NAME OF
THE
DISTRICT
DEMAND AS ON
1-4-2009
AUDITS
COMPLETED AS
ON 31-3-10
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 Adilabad
0 1 0 1 0 0
2 Ananthapur
0 1 0 1 0 0
3 Chittoor
0 1 0 1 0 0
4 East Godavari
2 1 0 1 2 0
5 Guntur
0 1 0 1 0 0
6 Kadapa
0 1 0 1 0 0
7 Karimnagar
0 1 0 1 0 0
8 Khammam
0 1 0 1 0 0
9 Krishna
0 1 0 1 0 0
10 Kurnool
0 1 0 1 0 0
11 Mahaboobnagar
0 1 0 1 0 0
12 Medak
0 1 0 1 0 0
13 Nalgonda
0 1 0 1 0 0
14 Nellore
0 1 0 1 0 0
15 Nizamabad
0 1 0 1 0 0
16 Prakasam
0 1 0 1 0 0
17 Ranga Reddy
0 1 0 1 0 0
18 Srikakulam
0 1 0 1 0 0
19 Visakhapatnam
0 1 0 1 0 0
20 Vizianagaram
0 1 0 1 0 0
21 Warangal
0 1 0 1 0 0
22 West Godavari
0 1 0 1 0 0
TOTAL: 2 22 0 22 2 0
75
S TATEMENT No. 2
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF
ZILLA PARISHADS FOR THE YEAR 2008-09 Rs. In lakhs
Sl.
No. NAME OF THE DISTRICT Receipts Payments
1 ADILABAD 2797.86 2690.64
2 ANANTHAPUR 7109.56 4949.02
3 CHITTOOR 3000.49 3830.32
4 EAST GODAVARI 9704.13 9045.33
5 GUNTUR 16706.05 7740.59
6 KADAPA 5907.63 12850.89
7 KARIMNAGAR 4274.05 6789.16
8 KHAMMAM 7645.88 7210.22
9 KRISHNA 3938.98 3846.54
10 KURNOOL 899.99 1959.43
11 MAHABOOBNAGAR 3912.32 3953.87
12 MEDAK 375.04 229.89
13 NALGONDA 5663.37 5262.44
14 NELLORE 3903.11 3139.96
15 NIZAMABAD 1095.65 998.73
16 PRAKASAM 3436.99 3178.18
17 RANGA REDDY 10113.70 3959.10
18 SRIKAKULAM 1933.19 2351.26
19 VISAKHAPATNAM 1841.61 1600.32
20 VIZIANAGARAM 2635.27 2482.21
21 WARANGAL 23201.75 22745.75
22 WEST GODAVARI 9082.97 6970.35
TOTAL: 129179.59 117784.20
76
STATEMENT No. 2 (a)
STATEMENT OF CONSOLIDATED FUND WISE RECEIPTS OF ZILLA PARISHADS FOR THE YEAR 2008-09 Rs. In lakhs
SL
No.
NAME OF THE
DISTRICT
General
fund
Education
fund SGRY
Other
Programmes Deposits Advances Loans BRGF
Pension
Fund Total
1 ADILABAD 272.36 338.92 1201.19 423.10 181.46 2.59 0.00 375.37 2.87 2797.86
2 ANANTHAPUR 4910.88 596.98 2.73 34.76 1178.87 1.93 4.69 378.71 0.00 7109.56
3 CHITTOOR 2091.30 146.16 0.00 0.00 241.11 68.05 0.94 452.93 0.00 3000.49
4 EAST GODAVARI 6309.55 770.68 0.00 0.00 2612.85 0.00 11.05 0.00 0.00 9704.13
5 GUNTUR 6262.99 676.47 142.68 0.00 9508.55 0.00 115.36 0.00 0.00 16706.05
6 KADAPA 2781.04 661.35 178.91 1382.68 0.00 94.53 5.70 785.18 18.24 5907.63
7 KARIMNAGAR 2777.63 846.57 14.51 0.00 1.28 64.64 9.33 560.09 0.00 4274.05
8 KHAMMAM 1624.89 525.65 0.00 1838.69 3161.25 0.00 13.72 481.60 0.08 7645.88
9 KRISHNA 3161.71 773.52 3.75 0.00 0.00 0.00 0.00 0.00 0.00 3938.98
10 KURNOOL 217.29 0.00 7.74 391.87 268.70 14.04 0.00 0.00 0.35 899.99
11 MAHABOOBNAGAR 2522.98 960.35 0.00 35.80 0.00 4.95 0.00 388.24 0.00 3912.32
12 MEDAK 1.68 67.96 0.00 0.00 0.00 0.00 10.00 295.40 0.00 375.04
13 NALGONDA 2487.56 941.52 38.72 31.76 1741.44 0.06 8.93 413.38 0.00 5663.37
14 NELLORE 3044.24 792.80 0.00 0.00 2.47 63.60 0.00 0.00 0.00 3903.11
15 NIZAMABAD 877.01 0.00 0.00 0.00 0.00 0.00 0.00 218.64 0.00 1095.65
16 PRAKASAM 640.78 890.51 0.00 1885.00 9.87 0.31 9.89 0.00 0.63 3436.99
17 RANGA REDDY 5547.06 518.76 0.00 0.00 3649.79 1.84 8.07 388.18 0.00 10113.70
18 SRIKAKULAM 908.69 561.30 15.89 0.00 444.25 2.15 0.91 0.00 0.00 1933.19
19 VISAKHAPATNAM 1362.42 292.16 143.44 15.31 0.59 24.20 3.49 0.00 0.00 1841.61
20 VIZIANAGARAM 1837.51 469.37 50.00 0.00 33.23 0.00 0.00 245.16 0.00 2635.27
21 WARANGAL 3747.00 7026.96 0.00 0.00 5423.35 6426.47 0.00 577.97 0.00 23201.75
22 WEST GODAVARI 5488.89 911.80 0.00 0.00 2575.60 94.74 9.89 0.00 2.05 9082.97
TOTAL: 58875.47 18769.79 1799.56 6038.97 31034.67 6864.10 211.97 5560.85 24.22 129179.59
77
STATEMENT 2(b)
STATEMENT OF CONSOLIDAED FUND WISE PAYMENTS OF ZILLA PARISHADSS FOR THE YEAR 2008-09
Rs.in lakhs
SL
No.
NAME OF THE
DISTRICT
General
fund
Education
fund
Other
Programmes SGRY Deposits Advances Loans BRGF
Pension
Rund Total
1 ADILABAD 150.82 352.58 423.10 1201.19 184.71 5.06 0.00 373.18 0.00 2690.64
2 ANANTHAPUR 2962.23 692.71 10.14 1.84 1042.91 4.18 1.60 233.41 0.00 4949.02
3 CHITTOOR 1360.18 1714.66 0.00 0.00 355.89 64.29 0.94 334.36 0.00 3830.32
4 EAST GODAVARI 6346.71 568.01 1.68 0.00 2128.93 0.00 0.00 0.00 0.00 9045.33
5 GUNTUR 2023.09 682.29 0.00 141.51 4781.79 0.00 111.91 0.00 0.00 7740.59
6 KADAPA 1128.62 1180.60 9835.62 56.98 0.00 11.20 0.00 629.98 7.89 12850.89
7 KARIMNAGAR 2448.82 862.67 2866.42 0.00 0.00 63.63 4.06 543.56 0.00 6789.16
8 KHAMMAM 1114.81 466.24 3396.69 0.00 1950.46 0.00 18.76 263.26 0.00 7210.22
9 KRISHNA 2891.31 825.00 0.00 130.23 0.00 0.00 0.00 0.00 0.00 3846.54
10 KURNOOL 215.84 0.00 545.29 36.48 1150.26 11.56 0.00 0.00 0.00 1959.43
11 MAHABOOBNAGAR 2482.76 929.72 1.94 0.00 0.00 0.00 0.00 539.45 0.00 3953.87
12 MEDAK 9.76 19.26 0.00 0.00 0.00 0.00 0.00 200.87 0.00 229.89
13 NALGONDA 2396.73 846.74 127.49 59.83 1405.30 2.10 6.55 413.00 4.70 5262.44
14 NELLORE 2174.37 870.47 0.00 0.00 26.92 68.20 0.00 0.00 0.00 3139.96
15 NIZAMABAD 781.25 0.00 0.00 0.00 0.00 0.00 0.00 217.48 0.00 998.73
16 PRAKASAM 1065.09 906.16 1197.38 0.00 9.32 0.00 0.23 0.00 0.00 3178.18
17 RANGA REDDY 2194.17 528.93 0.00 0.00 842.71 2.44 10.82 380.03 0.00 3959.10
18 SRIKAKULAM 1366.80 579.52 0.00 0.00 360.29 22.68 0.45 0.00 21.52 2351.26
19 VISAKHAPATNAM 957.77 282.94 16.65 313.11 0.00 29.85 0.00 0.00 0.00 1600.32
20 VIZIANAGARAM 1706.68 511.59 0.00 35.76 3.11 0.00 0.00 225.07 0.00 2482.21
21 WARANGAL 3747.00 6701.14 0.00 1.45 5413.00 6426.47 18.15 438.54 0.00 22745.75
22 WEST GODAVARI 3280.53 984.95 0.00 0.00 2610.83 90.97 0.00 0.00 3.07 6970.35
TOTAL: 42805.34 20506.17 18422.40 1978.38 22266.43 6802.63 173.47 4792.19 37.18 117784.20
78
STATEMENT No. 3
CONSOLIDATED STATEMENT OF GRANTS RELEASED TO ZILLA
PARISHADS AND EXPENDITURE INCURRED FROM GRANTS FOR THE
YEAR 2008-09
Rs. In lakhs
SL No. NAME OF THE
DISTRICT RECEIPTS PAYMENTS
1 ADILABAD 2338.40 2338.48
2 ANANTHAPUR 4559.31 1994.69
3 CHITTOOR 2001.07 2908.66
4 EAST GODAVARI 2394.23 2239.01
5 GUNTUR 3266.89 1648.04
6 KADAPA 2166.47 2064.69
7 KARIMNAGAR 1435.13 1425.35
8 KHAMMAM 11473.96 9090.74
9 KRISHNA 2686.74 2087.61
10 KURNOOL 6666.83 5587.31
11 MAHABOOBNAGAR 1590.05 1496.92
12 MEDAK 419.59 314.05
13 NALGONDA 2273.61 1786.01
14 NELLORE 3902.68 3139.96
15 NIZAMABAD 233.75 1113.70
16 PRAKASAM 2768.51 2866.61
17 RANGA REDDY 9586.92 3331.17
18 SRIKAKULAM 3189.48 5187.14
19 VISAKHAPATNAM 1289.13 844.24
20 VIZIANAGARAM 2153.54 2606.62
21 WARANGAL 15465.09 10406.51
22 WEST GODAVARI 2692.26 2356.91
TOTAL: 84553.64 66834.42
79
STATEMENT 3(A)(1)
CONSOLIDATED STATEMENT OF GRANTS (RECEIPTS) RELEASEDTO ZILLA PARISHADS FOR THE YEAR 2008-09 (In Lakhs)
SL
No.
NAME OF THE
DISTRICT Teaching
grant
Non-teaching
grant
Pension
grant SGRY Central fin State fin
Honorarium-
chair person
TA-DA-non
officials
1 ADILABAD 0.00 314.19 2.87 1201.19 0.00 32.99 0.00 8.40
2 ANANTHAPUR 0.00 536.41 1.83 0.00 2667.46 963.47 10.30 0.00
3 CHITTOOR 0.00 146.16 0.00 0.00 1300.02 52.98 37.67 10.90
4 EAST GODAVARI 770.70 197.42 0.00 0.00 1209.95 67.61 0.00 0.80
5 GUNTUR 0.00 655.91 0.00 0.00 2610.45 0.00 0.00 0.00
6 KADAPA 0.00 636.26 0.00 0.00 745.03 0.00 0.00 0.00
7 KARIMNAGAR 0.00 846.57 14.51 0.00 0.00 0.00 0.00 9.33
8 KHAMMAM 0.00 528.64 0.00 0.00 1423.82 78.10 7.45 0.00
9 KRISHNA 0.00 756.06 15.33 0.00 1763.61 147.25 0.00 0.00
10 KURNOOL 0.00 762.70 0.35 7.74 2385.37 468.57 8.71 0.00
11 MAHABOOBNAGAR 0.00 960.35 0.00 0.00 0.00 92.19 0.00 3.87
12 MEDAK 67.96 0.00 0.00 0.00 15.04 41.00 0.00 0.00
13 NALGONDA 941.52 0.00 0.00 38.72 846.05 31.76 0.00 0.00
14 NELLORE 0.00 792.80 0.00 0.00 796.13 37.36 0.00 0.00
15 NIZAMABAD 3.25 2.23 0.00 1.74 0.00 0.00 1.21 0.75
16 PRAKASAM 0.00 890.51 0.00 0.00 1023.30 46.78 0.00 0.00
17 RANGA REDDY 6412.04 0.00 0.00 0.00 1884.47 29.55 0.00 0.00
18 SRIKAKULAM 0.00 495.99 0.00 0.00 285.14 55.66 0.00 5.86
19 VISAKHAPATNAM 0.00 292.16 11.01 143.44 800.27 41.53 0.00 0.00
20 VIZIANAGARAM 469.37 0.00 50.00 556.89 33.16 0.00 0.00 0.00
21 WARANGAL 0.00 7026.96 0.40 0.00 7844.00 0.00 0.00 0.38
22 WEST GODAVARI 0.00 1614.83 0.00 0.00 765.90 89.55 12.00 0.56
TOTAL: 8664.84 17456.15 96.30 1949.72 28399.17 2276.35 77.34 40.85
80
STATEMENT 3(A)(2)
CONSOLIDATED STATEMENT OF GRANTS (RECEIPTS) RELEASED TO ZILLA PARISHADS FOR THE YEAR 2008-09 (Rs.In Lakhs)
Sl.
No.
NAME OF THE
DISTRICT TA-DA-
Staff
Natural
calamities
Building
grant
Election
grant
Office
contingencies
Contingencies
HSs
Backward
Regions Charges
Fund
Other grants Total
1 ADILABAD 0.25 0.00 0.00 400.00 3.14 0.00 375.37 0.00 2338.40
2 ANANTHAPUR 0.24 0.00 0.00 0.00 0.00 0.89 378.71 0.00 4559.31
3 CHITTOOR 0.41 0.00 0.00 0.00 0.00 0.00 452.93 0.00 2001.07
4 EAST GODAVARI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 147.75 2394.23
5 GUNTUR 0.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3266.89
6 KADAPA 0.00 0.00 0.00 0.00 0.00 0.00 785.18 0.00 2166.47
7 KARIMNAGAR 0.23 0.00 0.00 4.40 0.00 0.00 560.09 0.00 1435.13
8 KHAMMAM 0.69 0.00 0.00 0.29 0.00 0.00 481.60 8953.37 11473.96
9 KRISHNA 4.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2686.74
10 KURNOOL 0.17 391.87 43.58 3.00 0.00 0.00 0.00 2594.77 6666.83
11 MAHABOOBNAGAR 0.28 0.00 0.00 1.92 143.20 0.00 388.24 0.00 1590.05
12 MEDAK 0.19 0.00 0.00 0.00 0.00 0.00 295.40 0.00 419.59
13 NALGONDA 0.28 0.00 0.00 1.90 0.00 0.00 413.38 0.00 2273.61
14 NELLORE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2276.39 3902.68
15 NIZAMABAD 1.75 0.00 2.25 0.00 0.24 0.00 218.64 1.69 233.75
16 PRAKASAM 0.43 778.01 0.00 0.00 0.00 0.00 0.00 29.48 2768.51
17 RANGA REDDY 0.23 0.00 0.00 0.00 0.00 10.03 388.18 862.42 9586.92
18 SRIKAKULAM 2.78 69.17 0.00 0.00 2.78 0.00 0.00 2272.10 3189.48
19 VISAKHAPATNAM 0.34 0.00 0.00 0.38 0.00 0.00 0.00 0.00 1289.13
20 VIZIANAGARAM 0.00 0.00 0.00 0.00 0.00 0.00 245.16 798.96 2153.54
21 WARANGAL 15.38 0.00 0.00 0.00 0.00 0.00 577.97 0.00 15465.09
22 WEST GODAVARI 2.78 0.00 0.00 0.00 0.00 0.00 0.00 206.64 2692.26
TOTAL: 31.45 1239.05 45.83 411.89 149.36 10.92 5560.85 18143.57 84553.64
81
STATEMENT No. 3(B)(1)
CONSOLIDATED STATEMENT OF PAYMENT MADE FROM GRANTS BY ZILLA PARISHADS FOR THE YEAR 2008-09
(In Lakhs)
SL
No. NAME OF THE DISTRICT
Teaching
grant
Non-teaching
grant
Pension
grant SGRY Central fin State fin
Honorarium-
chair person
TA-DA-
non
officials
1 ADILABAD 0.00 336.63 0.00 1201.19 0.00 23.01 0.00 0.50
2 ANANTHAPUR 0.00 546.11 56.09 1.84 1109.55 37.91 1.18 0.00
3 CHITTOOR 0.00 1714.66 0.00 0.00 746.52 33.11 37.67 10.90
4 EAST GODAVARI 568.01 197.42 0.00 0.00 1209.95 95.70 8.97 9.21
5 GUNTUR 0.00 608.68 167.73 0.36 824.51 0.00 2.09 2.11
6 KADAPA 0.00 606.45 0.00 0.00 764.42 61.70 0.00 0.05
7 KARIMNAGAR 0.00 862.67 0.00 0.00 0.00 0.00 0.00 9.33
8 KHAMMAM 0.00 466.24 0.00 0.00 878.66 76.84 7.45 0.00
9 KRISHNA 0.00 756.06 240.98 112.10 868.47 103.41 0.25 0.00
10 KURNOOL 0.00 546.45 0.00 36.48 1038.52 119.66 8.93 0.00
11 MAHABOOBNAGAR 0.00 929.72 0.00 0.00 0.00 0.00 0.00 0.00
12 MEDAK 19.26 8.00 0.00 0.00 15.04 70.00 0.27 0.25
13 NALGONDA 846.74 0.00 4.70 59.83 319.77 127.49 9.43 0.00
14 NELLORE 0.00 870.47 0.00 0.00 395.77 37.36 0.27 0.00
15 NIZAMABAD 850.34 2.14 0.00 1.50 0.00 0.00 4.18 0.75
16 PRAKASAM 0.00 906.17 0.00 0.00 1023.30 174.00 0.00 0.00
17 RANGA REDDY 1915.27 0.00 0.00 0.00 84.01 41.00 0.38 0.00
18 SRIKAKULAM 0.00 495.99 21.52 0.00 285.14 93.45 0.00 8.88
19 VISAKHAPATNAM 0.00 282.94 62.50 313.11 146.56 10.65 0.22 0.00
20 VIZIANAGARAM 511.59 0.00 35.76 128.28 98.51 0.00 0.00 0.00
21 WARANGAL 0.00 6701.14 0.40 1.45 3249.60 0.00 0.00 0.00
22 WEST GODAVARI 0.00 1614.83 0.00 0.00 354.58 161.52 12.00 4.56
TOTAL: 4711.21 18452.77 589.68 1856.15 13412.88 1266.81 93.29 46.54
82
STATEMENT No. 3(B)(2)
CONSOLIDATED STATEMENT OF PAYMENT MADE FROM GRANTS BY ZILLA PARISHADS FOR THE YEAR 2008-09
(In Lakhs)
S.No NAME OF THE DISTRICT TA-DA-
Staff
Natural
calamities
Building
grant
Election
grant
Office
contingencies
Contingencies
HSs
Backward
Regions Charges
Fund
Other grants Total
1 ADILABAD 0.83 0.00 0.00 400.00 3.14 0.00 373.18 0.00 2338.48
2 ANANTHAPUR 1.34 0.00 0.00 0.00 0.24 7.03 233.41 0.00 1994.69
3 CHITTOOR 0.41 0.00 0.00 0.00 31.03 0.00 334.36 0.00 2908.66
4 EAST GODAVARI 0.00 0.00 0.00 0.00 0.00 0.00 0.00 149.75 2239.01
5 GUNTUR 2.52 0.00 0.00 40.04 0.00 0.00 0.00 0.00 1648.04
6 KADAPA 2.09 0.00 0.00 0.00 0.00 0.00 629.98 0.00 2064.69
7 KARIMNAGAR 0.23 0.00 0.00 9.56 0.00 0.00 543.56 0.00 1425.35
8 KHAMMAM 2.68 0.00 0.00 0.00 0.00 0.00 263.26 7395.61 9090.74
9 KRISHNA 4.01 0.00 0.00 0.00 0.00 0.00 0.00 2.33 2087.61
10 KURNOOL 1.28 545.29 7.26 2.00 18.01 0.00 0.00 3263.43 5587.31
11 MAHABOOBNAGAR 0.00 0.00 0.00 1.92 25.83 0.00 539.45 0.00 1496.92
12 MEDAK 0.36 0.00 0.00 0.00 0.00 0.00 200.87 0.00 314.05
13 NALGONDA 2.88 0.00 0.00 2.17 0.00 0.00 413.00 0.00 1786.01
14 NELLORE 1.43 0.00 0.00 0.00 0.00 0.00 0.00 1834.66 3139.96
15 NIZAMABAD 30.84 0.00 2.24 0.00 0.24 0.00 217.48 3.99 1113.70
16 PRAKASAM 4.70 758.44 0.00 0.00 0.00 0.00 0.00 0.00 2866.61
17 RANGA REDDY 1.50 0.00 0.00 0.00 73.98 0.00 380.03 835.00 3331.17
18 SRIKAKULAM 2.31 44.15 0.00 0.00 39.67 0.00 0.00 4196.03 5187.14
19 VISAKHAPATNAM 2.00 0.00 0.00 0.10 26.16 0.00 0.00 0.00 844.24
20 VIZIANAGARAM 0.00 0.00 0.00 0.00 0.00 0.00 225.07 1607.42 2606.62
21 WARANGAL 15.38 0.00 0.00 0.00 0.00 0.00 438.54 0.00 10406.51
22 WEST GODAVARI 2.78 0.00 0.00 0.00 0.00 0.00 0.00 206.64 2356.91
TOTAL: 79.57 1347.88 9.50 455.79 218.30 7.03 4792.19 19494.86 66834.42
83
STATEMENT No.4 (1) STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE
YEAR
2008-09 (DISTRICT WISE)
Rs. In lakhs
Sl. No. NAME OF THE DISTRICT ZILLA PARISHADS
No. AMOUNT
1 Adilabad 72 161.87
2 Ananthapur 119 264.89
3 Chittoor 65 35.58
4 East Godavari 184 4158.77
5 Guntur 103 228.44
6 Kadapa 59 161.70
7 Karimnagar 51 836.66
8 Khammam 91 707.75
9 Krishna 112 7076.49
10 Kurnool 2126 12162.00
11 Mahaboobnagar 23 128.54
12 Medak 77 904.79
13 Nalgonda 28 44.03
14 Nellore 80 44.54
15 Nizamabad 1640 5599.92
16 Prakasam 139 18.31
17 Ranga Reddy 52 2178.69
18 Srikakulam 165 1296.49
19 Visakhapatnam 119 1165.49
20 Vizianagaram 93 425.68
21 Warangal 98 466.86
22 West Godavari 121 533.79
TOTAL: 5617 38601.28
84
STATEMENT No.4 (2) STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No. NAME OF THE CATEGORY
ZILLA PARISHADS
No. AMOUNT
1 Variation in Account Figures 64 74.26
2 Excess Utilisation of Grants / Funds 26 152.36
3 Diversion of Grants / Funds 155 624.94
4 Non-utilisation of grants before the lapsable date 37 198.63
5 Mis-utilisation of Grants / Funds 10 47.48
6 Non-utilisation of Earmarked Funds 69 583.28
7 Non-collection of dues 161 305.97
8 Advances pending adjsutemnt 230 983.74
9 Violation of Rules 443 6684.19
10 Non remittance of deduction recoveries from work bills
/ pay bills / contingent bills etc., 1667 5464.19
11 Non Production of Records 1367 16284.98
12 Misappropriations 12 117.41
13 Excess Payments 735 174.91
14 Wasteful Expenditure 23 6.44
15 Instances of cases of unaccounted for cash / stores 116 2235.75
16 Pendency of Utilisation Certificates 115 4327.49
17 Surcharge Certificates recovery pending 4 0.00
18 Others 383 335.27
19 D.D/Cheques received but not realized with in time 0 0.00
Total: 5617 38601.28
- 85 -
STATEMENT NO.4 (3)(1)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09
(District and Category wise ) Zilla Parishad
S.No Name of the
District
Variation in
Account figures(1)
Excess Utilisation
of Grants (02)
Diversion of
Grants(03)
Non-utilisation of
Grants(4)
Mis-Utilisation
of Grants(05)
Non-utilisation of
Earmarked funds(6)
Non-Collection of
Dues (07)
No Amt No Amt No Amt No Amt No Amt No Amt No Amt
1 Adilabad 1 12.06 2 1.39 1 0.00 0 0.00 0 0.00 1 0.00 1 0.46
2 Ananthapur 2 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 0 0.00
3 Chittoor 1 0.00 0 0.00 4 3.21 0 0.00 0 0.00 0 0.00 5 0.21
4 East Godavari 6 2.50 0 0.00 5 46.48 0 0.00 0 0.00 4 72.53 6 16.25
5 Guntur 5 0.14 3 1.98 2 143.90 1 0.00 0 0.00 0 0.00 9 21.42
6 Kadapa 2 0.00 4 37.35 4 1.15 0 0.00 0 0.00 2 54.99 1 21.52
7 Karimnagar 0 0.00 1 0.95 1 0.10 1 0.00 0 0.00 0 0.00 2 9.09
8 Khammam 1 0.20 0 0.00 0 0.00 0 0.00 0 0.00 3 25.11 0 0.00
9 Krishna 8 0.95 0 0.00 2 3.56 0 0.00 0 0.27 4 324.00 60 3.75
10 Kurnool 3 0.00 1 0.00 22 105.00 0 0.00 1 1.00 0 0.00 10 68.00
11 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 3 44.38 0 0.00 1 0.00
12 Medak 4 0.00 0 0.00 1 12.16 0 0.00 0 0.00 1 61.52 0 0.00
13 Nalgonda 1 0.00 0 0.00 1 0.00 0 0.00 0 0.00 1 0.00 1 0.00
14 Nellore 0 0.00 0 0.00 3 0.00 1 0.00 0 0.00 0 0.00 0 0.00
15 Nizamabad 9 46.72 0 0.00 90 52.56 11 25.76 4 1.33 48 45.13 22 25.28
16 Prakasam 4 5.00 0 0.00 5 0.00 5 0.00 0 0.00 0 0.00 2 0.30
17 Ranga Reddy 0 0.00 1 0.00 3 0.00 0 0.00 0 0.00 1 0.00 2 24.39
18 Srikakulam 2 0.13 1 0.00 0 0.00 7 172.58 0 0.00 0 0.00 0 0.00
19 Visakhapatnam 2 0.00 4 109.54 0 0.00 1 0.29 0 0.00 0 0.00 7 13.85
20 Vizianagaram 2 0.00 2 0.00 3 2.50 3 0.00 2 0.50 1 0.00 2 9.85
21 Warangal 1 0.00 4 1.15 5 52.94 0 0.00 0 0.00 2 0.00 4 1.43
22 West Godavari 10 6.56 2 0.00 3 201.38 7 0.00 0 0.00 0 0.00 26 90.17
TOTAL: 64 74.26 26 152.36 155 624.94 37 198.63 10 47.48 69 583.28 161 305.97
- 86 -
STATEMENT NO.4 (3)(2)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09
(District and Category wise) Zilla Parishad
Name of the
District
Advances Pending
Adjustment (08)
Violation of Rules
(09)
Non-Remittance of
Deductions (10)
Non-Production of
Records(11)
Missappropriation
and Fraud(12)
Excess
Payment(13)
Wasteful
Expenditure(14)
No Amt No Amt No Amt No Amt No Amt No Amt No Amt
Adilabad 1 0.50 5 16.27 5 0.97 24 120.95 0 0.00 3 0.36 0 0.00
Ananthapur 5 1.31 32 13.35 7 3.22 38 246.98 2 0.00 10 0.04 0 0.00
Chittoor 4 9.92 18 2.77 8 0.37 15 19.10 0 0.00 0 0.00 0 0.00
East Godavari 10 331.73 26 1759.10 9 20.41 61 1800.06 3 57.21 15 50.49 3 0.26
Guntur 6 1.03 10 0.00 8 0.25 29 59.46 0 0.00 7 0.26 0 0.00
Kadapa 0 0.00 18 4.93 0 0.00 11 31.39 0 0.00 5 9.88 3 0.49
Karimnagar 4 140.59 5 6.48 3 4.05 5 6.14 0 0.00 1 0.24 0 0.00
Khammam 3 33.74 16 144.45 16 29.27 6 22.52 0 0.00 4 0.34 0 0.00
Krishna 0 0.00 12 1599.06 0 0.00 25 1975.18 0 0.00 0 0.00 0 0.00
Kurnool 99 145.00 52 65.00 179 76.00 917 9316.00 2 0.00 637 103.00 2 0.00
Mahaboobnagar 2 8.32 5 10.15 0 0.00 2 61.51 0 0.00 5 2.52 0 0.00
Medak 0 0.00 22 11.74 21 122.81 17 695.43 0 0.00 6 0.67 1 0.13
Nalgonda 2 1.01 9 9.45 0 0.00 6 22.86 0 0.00 0 0.00 2 0.70
Nellore 5 23.56 22 18.00 3 0.19 12 0.20 0 0.00 5 0.05 3 2.54
Nizamabad 62 129.62 22 14.93 1346 5044.01 0 0.00 0 0.00 0 0.00 0 0.00
Prakasam 1 0.31 31 1.08 19 11.14 28 0.11 0 0.00 5 0.37 0 0.00
Ranga Reddy 4 19.11 5 1999.33 4 19.56 13 111.51 0 0.00 9 3.33 0 0.00
Srikakulam 3 12.18 34 55.01 7 10.13 78 1025.64 0 0.00 0 0.00 0 0.00
Visakhapatnam 5 6.11 39 839.00 3 21.03 18 110.01 1 10.23 9 2.16 2 0.00
Vizianagaram 3 1.02 26 59.63 15 91.16 12 259.40 0 0.00 11 1.17 4 0.46
Warangal 7 94.93 11 1.94 12 9.05 29 304.90 1 0.17 1 0.04 1 0.17
West Godavari 4 23.75 23 52.52 2 0.57 21 95.63 3 49.80 2 0.00 2 1.69
TOTAL: 230 983.74 443 6684.19 1667 5464.19 1367 16284.98 12 117.41 735 174.91 23 6.44
- 87 -
STATEMENT NO.4 (3)(3)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09
( District and Category wise ) Zilla Parishad
Name of the
District
Instance of cases
un account for
(15)
Pending of U.Cs
(16)
Surcharge
certificate
Recovery Pending
Others (18)
D.D/Cheques/B.C,
etc,received but not
realised with in time (26)
Total
No Amt No Amt No Amt No Amt No Amt No Amt
Adilabad 0 0.00 2 0.00 0 0.00 26 8.91 0 0.00 72 161.87
Ananthapur 0 0.00 4 0.00 1 0.00 16 0.00 0 0.00 119 264.89
Chittoor 0 0.00 2 0.00 0 0.00 8 0.00 0 0.00 65 35.58
East Godavari 1 1.75 7 0.00 0 0.00 28 0.00 0 0.00 184 4158.77
Guntur 0 0.00 8 0.00 0 0.00 15 0.00 0 0.00 103 228.44
Kadapa 0 0.00 3 0.00 0 0.00 6 0.00 0 0.00 59 161.70
Karimnagar 0 0.00 27 669.02 0 0.00 1 0.00 0 0.00 51 836.66
Khammam 0 0.00 12 386.38 0 0.00 30 65.74 0 0.00 91 707.75
Krishna 0 0.00 1 3169.72 0 0.00 0 0.00 0 0.00 112 7076.49
Kurnool 113 2234.00 13 40.00 0 0.00 75 9.00 0 0.00 2126 12162.00
Mahaboobnagar 1 0.00 0 0.00 1 0.00 3 1.66 0 0.00 23 128.54
Medak 0 0.00 0 0.00 0 0.00 4 0.33 0 0.00 77 904.79
Nalgonda 0 0.00 0 0.00 0 0.00 5 10.01 0 0.00 28 44.03
Nellore 0 0.00 7 0.00 0 0.00 19 0.00 0 0.00 80 44.54
Nizamabad 0 0.00 0 0.00 0 0.00 26 214.58 0 0.00 1640 5599.92
Prakasam 0 0.00 10 0.00 0 0.00 29 0.00 0 0.00 139 18.31
Ranga Reddy 0 0.00 1 0.00 0 0.00 9 1.46 0 0.00 52 2178.69
Srikakulam 0 0.00 4 0.00 0 0.00 29 20.82 0 0.00 165 1296.49
Visakhapatnam 0 0.00 3 50.65 0 0.00 25 2.62 0 0.00 119 1165.49
Vizianagaram 0 0.00 1 0.00 1 0.00 5 0.00 0 0.00 93 425.68
Warangal 0 0.00 1 0.00 1 0.00 18 0.14 0 0.00 98 466.86
West Godavari 1 0.00 9 11.72 0 0.00 6 0.00 0 0.00 121 533.79
TOTAL: 116 2235.75 115 4327.49 4 0.00 383 335.27 0 0.00 5617 38601.28
- 88 -
- 89 -
ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON
THE ACCOUNTS OF MANDAL PARISHADS FOR THE YEAR
2008-09
INTRODUCTION
1.5 Under the A.P. State Audit Act, 1989 the Director is made in charge of the audit
of the funds of Mandal Parishads as specified in the Schedule prescribed in the
said Act.
1.6 The Department has got its offices in all the districts of Andhra Pradesh where in
the District Audit Officer; State Audit is the head at the district level.
1.7 The Department conducts post audit of the Mandal Parishads and Audit Reports
consisting of defects noticed in audit are issued to the Mandal Development
Officers of the Mandals concerned who has to take action for rectifying the
defects pointed out in the Audit Report.
1.8 Under the State Audit Act, the Director is vested with the power of disallowing
any item of the expenditure incurred contrary to the law and surcharge the same
on the person incurring or authorizing the incurring of such expenditure and may
charge against any person responsible there for, the amount of any deficiency,
loss or unprofitable out lay occasioned by the negligence or misconduct of that
person or of any such sum which ought to have been accounted for but is not
brought into account by that person and shall, in every such case, certify the
amount due from such person.
SCOPE OF AUDIT
2.2 The State Audit Department being one of the limbs of the Government has been
statutorily entrusted with the authority to verify the following aspects during the
course of post audit of the Panchayat Raj Institutions, viz., Mandal Parishads.
i) Whether the grants received by the Mandal Parishads were properly
accounted for with full details in the books of accounts of the Mandals
concerned.
j) Whether adequate care is taken to periodically check up the funds with
Treasury or Bank.
k) Whether expenditure incurred was provided for in the Budget of the
Mandal Parishads concerned and duly sanctioned by the competent
authority under the PRI Act / Rules or any executive instructions issued by
the Government.
l) Whether funds were utilized only for the permitted purposes prescribed
under the Act / Rules.
- 90 -
m) Whether the procedure prescribed by Government in incurring the
expenditure / payments made is properly followed and accounted for with
due classification in the books of accounts of the Mandal Parishad.
n) Whether vouchers for the expenditure incurred were maintained.
o) Whether grants received from different sources were utilized for the
purposes for which they were meant.
2.3 During the year under report, the Department has also conducted audit of the
accounts of the scheme “Sampoorna Grameena Rojgar Yojana”.
STATUS OF AUDIT
3.1 Out of total demand of 1097 current and arrear 2, 1090 years current Mandal
Parishads were audited by this department which has shown in Statement -I.
3.2 The Department has conducted the audit of the receipts amounting to Rs. 51706.90
lakhs and payments of Rs. 52730.90 lakhs as detailed in the Statements No. 2 (a) to
2 (b) with District wise break up.
3.3 The Pie chart of propositional Percentages of Receipts and Payments of Mandal
Parishads during the year 2008-09 is placed below.
- 91 -
CHART-1
Name of the Fund Receipts
(Rs. In Lakhs) % of Receipts
General Fund 24432.33 47.25
Education Fund 2410.91 4.66
Social Welfare Fund 2758.81 5.34
Minor Irrigation 44.03 0.09
Roads and Bridges 124.97 0.24
Rural Water Supply 590.66 1.14
Other Programmes 18911.09 36.57
Sampoorna Grameena Rojgar Yojana 911.82 1.76
Deposits 959.18 1.86
Advances 563.10 1.09
Total: 51706.90 100
PIE CHART OF MP RECEIPTS 2008-09
47.25%
4.66%
5.34%
0.09%
0.24%
1.14%
36.57%
1.76%
1.86%
1.09%
0.00%
1 GENERAL FUND 47.25%
2 EDUCATION FUND 4.66%
3 SOCIAL WELFARE 5.34%
4 MINOR IRRIGATION 0.09%
5 ROADS & BRIDGES 0.24%
6 RWS & ARWS 1.14%
7 OTHER PROGRAMES 36.57%
8 SGRY 1.76%
9 DEPOSITS 1.86%
10 ADVANCES 1.09%
- 92 -
Chart - II
CHART-2
Name of the Fund Payments
(Rs. In Lakhs) % of Payments
General Fund 24428.96 46.33
Education Fund 2234.17 4.24
Social Welfare Fund 3209.76 6.09
Minor Irrigation 209.80 0.40
Roads and Bridges 1502.60 2.85
Rural Water Supply 806.04 1.53
Other Programmes 17643.39 33.46
Sampoorna Grameena Rojgar Yojana 1470.19 2.79
Deposits 556.70 1.06
Advances 669.29 1.27
Total: 52730.90 100
3.4 The Fund Wise Receipts & Payments of Mandal Parishads in the State for the year
2008-09 are exhibited in the bar charts. (Chart –3)
PIE CHART PAYMENTS (Funds) OF MANDAL PARISHADS
FOR 2008-09
46.33%
0.40%
2.85%
1.53%
33.46%
2.79%
1.06%
1.27%
6.09% 4.24%
1 GENERAL FUND 46.30%
2 EDUCATION FUND 4.24%
3 SOCIAL WELFARE 6.09`%
4 MINOR IRRIGATION 0.40%
5 ROADS & BRIDGES 2.85%
6 RWS & ARWS 1.53%
7 OTHER PROGRAMES 33.46%
8 SGRY 2.79%
9 DEPOSITS 1.06%
10 ADVANCES 1.27%
- 93 -
Chart –3
RECIEPTS & PAYMENTS OF MANDAL
PARISHADS FOR 2008-09 (FUND WISE)
24
43
2.3
3
24
10
.91
27
58
.81
44
.03
12
4.9
7
59
0.6
6
18
91
1.0
9
91
1.8
2
95
9.1
8
56
3.1
0
24
42
8.9
6
22
34
.17
32
09
.76
20
9.8
0
15
02
.60
80
6.0
4
17
64
3.3
9
14
70
.19
55
6.7
0
66
9.2
9
GE
NE
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L
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UC
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FU
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1 2 3 4 5 6 7 8 9 10
RECIEPTS PAYMENTS
3.5 The General Fund occupied main share in Mandal Parishads Funds at 47.25% as
against 46.33 % in payments, the Minor Irrigation fund and RWS are
insignificant. The Deposits fund share in receipts only 1.09 % as against 1.06 %
share in payments.
3.6 The Receipts and Payments particulars of Mandal Parishads with reference to
Statement are given below:
Name of the Statement No. of the Statement
Consolidated Statement of Receipts & Payments
District Wise (Funds) Statement – 2
Consolidated Statement of Receipts Head Wise
(Funds) Statement – 2(a)
Consolidated Statement of Payments Head Wise
(Funds)
Statement – 2(b)
- 94 -
3.7.The Department has conducted the audit of the Receipts amounting to Rs. 51706.90
lakhs and payments of Rs. 52730.90 lakhs as detailed in the Statement No. 2(a) &
2(b)
GRANTS POSITION
4.1 Mandal Parishads are provided grants by the State / Central Governments to
implement the schemes entrusted to them and also for over all development of the
area under their jurisdiction. The Mandal Parishads have received the grants as
detailed below during the year 2008-09.
Name of the Statement No. of the Statement
Consolidated Statement of Receipts & Payments District Wise (Grants) Statement – 3
Consolidated Statement of Receipts Head Wise (Grants) Statement – 3(a) 1&3(a)2
Consolidated Statement of Payments Head Wise (Grants)
Statement – 3(b) 1&3(b)2
The grants & Non grants received by Mandal Parishads have been shown below.
Mandal Parishads Receipts %
Grants 55589.61 51.81
Funds 51,706.90 48.19
Total: 1,07,296.51 100
4.3 The Receipt of Grants & Non-grants constitutes 51.81% & 48.19 % respectively.
Head wise received by Mandal Parishads are shown in the Statement No.3
4.4 The Payments from grants & Non grants by Mandal Parishads have been shown
below.
Mandal Parishads Payments %
Grants 55162.68 51.13
Funds 52,730.90 48.87
Total: 1,07,893.58 100
4.5 The Payments of Grants & funds constitutes 51.13% and 48.87 % respectively.
Head wise payments of Mandal Parishads are shown in the Statement No.3.
4.6 The Grants wise Receipts & Payments of Mandal Parishads for the year 2008-09 are exhibited in the bar charts. (Chart –4)
- 95 -
Chart -4
RECIEPTS & PAYMENTS OF MANDAL
PARISHADS FOR 2008-09 (GRANT WISE)
16372.0
1
3778.7
1
1446.8
2
3387.5
6
675.6
3
323.0
8
880.8
8
231.3
4
212.8
6
319.7
3
1084.2
3
14.4
9
227.0
9
3.5
3 2288.8
8
51.3
1
18675.5
7
17667.8
3
3122.5
5
1419.2
7
2672.5
1
774.6
9
382.2
6
1387.5
3
337.9
3
373.0
4
306.4
9
1103.4
6
210.5
0
372.7
1
7.5
2 1888.0
5
36.6
6
18018.8
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S
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
RECIEPTS PAYMENTS
Receipts Payments Ratio of
R&P
% Receipts
Y to Y
% Payments
Y to Y
2004-05 139237 137785 100:99
2005-06 74152 71821 100:97 -46.74 -91.85
2006-07 39732 44031 100:111 -46.42 -63.12
2007-08 82024 60568 100:74 106.44 27.30
2008-09 51707 52731 100:101 -36.96 -14.86
386904 366970
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The Drastic change in 2005-06 is due to taking away of salaries of teachers of
PRIs to the treasuries. The change of receipts and payments is so erratic and doesn’t
have any form. The receipts and payments ratio is good in 2004-05, 2005-06 and is not
good in other years that is to say that the efficiency in spending of funds is decreased.
AUDIT OBJECTIONS
5.1 During the course of audit the Mandal Parishads for the year 2008-09, the defects
noticed were already pointed out in the relevant Audit Reports, as “Audit
Objections” which were forwarded to the Chief Executive Authorities concerned
for further action at their end as per the procedure laid down under the A.P. State
Audit Act.
5.2 A total number of 21739 audit objections involving an amount of Rs.5832.26
lakhs were raised in the audit of the Mandal Parishads during the year under
report.
5.3 A Consolidated Statement showing the number of objections raised, amount
involved with institution-wise break-up is annexed vide Statement No. 4.
5.4 CATEGORISATION OF AUDIT OBJECTIONS:
The Audit Objections are classified into 19 Categories as detailed below and
shown in the Appended Statement No. – 4.
All objections category wise Statement – 4
All objections District wise Statement – 4 CAT
Variation in Account Figures Statement – 4 (1)
Excess Utilization of Grants Statement – 4 (1)
Diversion of Grants / Funds Statement – 4 (1)
Non-Utilization of Grants before lapsable date Statement – 4 (1)
Mis-Utilisation of Grants / Funds Statement – 4 (1)
Non-Utilization of Earmarked Funds of MPs Statement – 4 (2)
Non-collection of dues Statement – 4 (2)
Advances pending adjustment Statement – 4 (2)
Violation of Rules Statement – 4 (2)
Non-remittance of Deductions / Recoveries from vouchers /
Pay Bills / Contingent Bills
Statement – 4 (2)
Non-production of Records Statement – 4 (3)
Mis-appropriations Statement – 4 (3)
Excess payments Statement – 4 (3)
Wasteful Expenditure Statement – 4 (3)
Instances of cases of unaccounted cash / stores Statement – 4 (4)
Pendency of Utilization Certificates Statement – 4 (4)
Surcharge Certificates - Recovery pending Statement – 4 (4)
Others Statement – 4 (4)
D.D./Cheques received but not realized with in time Statement – 4 (4)
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STATEMENT SHOWING INCIDENCE OF OBJECTIONS (2008-09)
# Name of the Category No. of
Paras %
Amount
Rs. in
Lakhs
%
(1) (2) (3) (4) (5) (6)
1 Others 5211 23.97 439.16 7.53
2 Violation of Rules 3774 17.36 485.30 8.32
3 Non Production of Records 3316 15.25 1514.01 25.96
4 Non remittance of deduction recoveries from
work bills / pay bills / contingent bills etc
2036 9.37 1418.13 24.32
5 Non-utilization of Earmarked Funds 1470 6.76 710.94 12.19
6 Pendency of Utilization Certificates 1464 6.73 39.27 0.67
7 Excess Utilization of Grants / Funds 870 4.00 240.95 4.13
8 Non-utilization of grants before the lapsable date 696 3.20 68.83 1.18
9 Diversion of Grants / Funds 681 3.13 229.45 3.93
10 Non-collection of dues 669 3.08 114.56 1.96
11 Advances pending adjustment 626 2.88 285.95 4.90
12 Excess Payments 458 2.11 144.28 2.47
13 Variation in Account Figures 227 1.04 26.74 0.46
14 Mis-utilisation of Grants / Funds 118 0.54 37.89 0.65
15 Wasteful Expenditure 69 0.32 71.36 1.22
16 Misappropriations 32 0.15 4.49 0.08
17 Instances of cases of unaccounted for cash /
stores
14 0.06 0.04 0.00
18 Surcharge Certificates recovery pending 7 0.03 0.35 0.01
19 D.D./Cheques received but not realized with in
time
1 0.00 0.56 0.01
Total: 21739 100 5832.26
100
5.5 The objections – Number and amount involved – were categorized and
their category has been analyzed 23.97% of Amount involved and also 7.53%
pertains to Others and Number involved 17.36% of amount involved 8.32%
pertains to the Violation of rules etc.,. The next slot goes to Non production of
records 15.25% of amount in 25.96% of no. of objections involved.
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AUDIT – PARAS
Gist of some of the selected audit objections raised during the year 2008-09 under
report is enumerated below:
1. VARIATION IN ACCOUNT FIGURES
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 cashbook by remittance
through Challans are not credited in the Treasury passbook by the Treasury authorities.
Debiting the Cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.
Without explaining the differences, addition or subtraction is being done in the
Reconciliation by the DDO to arrive at the balance actually available in the S. T. Pass
book. Wrong Totaling of Credits and Debits either by D.D.O. or Treasury. Revision in the
Plus or Minus Memo in the S. T. pass book during the subsequent financial year by the
Treasury Authorities with retrospective effect. Consolidated Closing Balance of all Cash
Books not tallying with consolidated closing balance of Annual Account of the
Institutions etc., A few instances of Variation in Account figures, noticed in the Audit
Reports in Mandal Parishads are detailed below:
During the course of audit, it was noticed that as per G.O.Ms.No.12 F&P Dept.,
dated.14-1-2000, Mandal Parishad funds shall be reconciled with Treasury Pass Books.
But in some of the Mandal Parishad in the state have not been reconciled with Treasury
Authorities caused variation between the Cash Book & Treasury Pass Books.
Further, it was also noticed that the Annual accounts was prepared without
rectifying the Opening Balances & Closing Balances of the last years. The difference in
Cash Book, Pass Book & Annual Accounts may be reconciled and rectified the defects to
avoid every scope from all sorts of financial irregularities/misappropriations. Necessary
instructions may be issued to all the Mandal Parishads to reconcile the Cash Book figures
with Treasury Authorities to avoid differences. Out of total No of objections, raised
1.06% of objections and 41.01% of amount involved came under this category. This
category occupies 15th
place in amount and 13th
place in No of objections.
A Consolidated Statement – 4 (1) of Variation in account figures is appended to
the Report from which it could be seen that Non-reconciliation of Rs. 26.74 Lakhs was
pointed out in 227 audit paras.
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2. EXCESS UTILISATION OF GRANTS
The State Government releases grant-in-aid to the Mandal Parishads to meet the
expenditure on developmental works and contingency items like T.A., stationary,
honorarium to the elected representatives etc. It was noticed during the audit that the
Executive Authorities of the Mandal Parishads were incurring expenditure in excess of
the grant received from the Government either in anticipation of the release of further
grant or withdrawing the excess amount from the General Funds of the institution without
any valid orders.
During the course of Annual Audit on the accounts of Mandal Parishads for the
year 2008-09, it was noticed that in certain Mandal Parishads excess utilization made
than the grants received which is against the rules for Ex:- in Vajrakarur Mandal
Parishad of Anathapur District a sum of Rs.63,000 was released under Honorarium to the
Non-officials, but a sum of Rs:1,26,000 was drawn and paid to the above purpose which
is double to the grant actually released. The above irregularity was incorporated in Para
No.50 of the Audit Report. In the same way it was pointed out in Para No. 1 of Audit
Report of Kakinada Mandal Parishad of East Godavari District that a sum of Rs:1,76,823
was released under TA, Contingencies & Honorarium to the Non-officials, but a sum of
Rs:3,83,856was utilized in the same year for the said purpose. By observing the same it
is clear that the excess expenditure than the grant released might be met from the other
allocation. Necessary instructions may be issued to the Executive Authorities not to
reoccur the same in the future. The excess utilization of grant occupies 2.88% in total
No. of objections and 1.58% in total amount involved. The overall picture of the grants is
shown in chart-4 of the report and it shows that the payments are higher than the grant
received for each function in teaching grant, SFC Grant, Honorarium to chair persons ,
TA/DA to non –officials and staff Building grant, Rural water supply, Elections grant.
In case of funds the payments are more than the funds received. Minor Irrigation, Roads
and Bridges, Rural Water Supply and SGRY.
A Consolidated Statement – 4 (1) of Excess Utilisation of grant is appended to
the Report from which it could be seen Rs. 240.95 Lakhs was pointed out in 870 audit
paras.
3. DIVERSION OF GRANTS
The Mandal Parishads are provided with funds by the State/Central Governments
either by way of grants or a prescribed share in the Cess, Taxes or Fees collected by the
State Government. All the monies received by the Mandal Parishads from part of their
general funds and they can be utilized for the purposes prescribed under the relevant
Act/Rules. However, specific grants received should be utilized for the purpose for which
the grant is released.
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Incurring of expenditure for purposes other than the prescribed ones without
specific sanction of the government is not permissible and amounts to diversion of funds.
In case of specific grants, the grants should be utilized only for the specific purpose for
which the grant is released and no diversion is permissible without the permission of
grant releasing authority. But it was noticed in audit that notwithstanding such
instructions, diversion of specific grants and earmarked funds is taking place. It was also
observed in audit that expenditure was incurred under certain grant heads even in the
absence of receipt of any grant during the year by diverting other grants.
But during the course of audit for the year 2008-09, it was observed that
diversions were took place even though specific orders were issued for spending the
amounts for the purpose for which it was granted vide G.O.Ms.No. 446 PR & RD(Progs-
II) Dept Dt.29-10-1998
For ex:- in Mutharam M.P. of Karimnagar District a sum of Rs.25,000 was
utilized for payment of electricity charges of MPDO office from the TFC funds which
was granted for Protective Water Supply and Sanitation. Which was incorporated in
Para No.1 of the said Audit Report for the year 2008-09. In Gangavaram Mandal
Parishad of East Godavari District a sum of Rs:53,571 was drawn from the SFC funds
and paid towards purchase of tables, chairs, computer printer, battery & fan (Para No.23).
In Ramakuppam Mandal Parishad of Chittoor District a sum of Rs.43,000 was drawn
from SGRY funds and paid towards contingent expenditure. The position of the No of
objections raised during the year is 9th
and 6th
place in amount involved.
A Consolidated Statement – 4 (1)of Diversion of Funds and Grants Excess
Utilization of Grants/Funds is appended to the Report from which it could be seen that
an amount of Rs. 229.45 lakhs was pointed out in 681 audit paras
4. NON-UTILISATION OF GRANTS BEFORE LAPSABLETIME:
Government releases special grants to the PRIs for implementing specific
schemes. These grants are to be utilized for the purposes for which they are meant for
following the guidelines issued / norms prescribed and such utilization should be within
the date prescribed, otherwise, the grants would lapse to government, unless the lapsable
date of any particular grant is extended by government or grant releasing authority.
Government issued orders in G.O. Ms. No 666 (Accts-I) Department dated 13-6-
1978 extending the period of Utilization of non-salary grants, particularly Panchayat Raj
Grants, up to a maximum period of 18 months instead of end of the financial year to
allow reasonable time to utilize the grant released. According to the above orders, grants
released in the first year of a financial year can be utilized on or before 30th September of
succeeding year. The local bodies did not utilize the grants released within the lapsable
date and thereby huge amounts were left unutilized. The grant sanctioning authorities
were also not approached for extending the utilization period. Thus, the schemes for
which the grants released were not implemented effectively and totally. The unspent
balances were also not refunded to the grant releasing authorities.
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A Consolidated Statement – 4 (1)of Non-utilization of Funds before Lapsable
Date is appended to the Report from which it could be seen that an amount of Rs. 68.83
lakhs was pointed out in 696 audit paras
5. MIS-UTILIZATION OF GRANTS:
Grants meant for specific purposes or earmarked funds shall not be utilized for
any other purpose. Any contingent expenses connected with utilization of grant, shall be
met from the provision of General Fund to the extent permitted. In stead, the authorities
have used specific grants and earmarked funds for contingent expenditure. This is
misapplication of funds and is not a prudent accounting practice.
A Consolidated Statement – 4 (1) of Mis-utilization of Grants/ Funds is
appended to the Report from which it could be seen that an amount of Rs.37.89 lakhs
was pointed out in 118 audit paras.
6. NON-UTILISATION OF EARMARKED FUNDS
Government vide their orders issued in G.O. Ms. No.450 & 451 P.R. & R.D.
(Programme-IV) Department, dated 9-4-2001 and G.O. Ms. No.38 Women Development
and Child Welfare Department, dated 29-5-98 read with G.O. Ms. No.704 of P.R. & R.D.
Department, dated 5-11-1994 issued instructions that every ZP and MP shall earmark
funds out of their General Funds and utilize the same on the schemes benefiting the S.C.s,
S.T.s and for Women and Child Welfare at the following rates.
4. For S.C.s : 15%
5. For S.T.s : 6%
6. For Women & Child Welfare : 15%
Further 1/3 of such earmarked funds shall be made over at the beginning of the
year to the A.P. Scheduled Castes Co-operative Finance Corporation / A.P. Scheduled
Tribes Co-operative Finance Corporation / A.P. Women Co-operative Finance
Corporation as the case may be to utilize for the benefit of the S.C.s, S.T.s and Women
and Children respectively. The balance of 2/3rd
funds shall be utilized by the Mandal
Parishads for the benefit of S.C.s, S.T.s, Women & Children in the ZP, MP areas.
Unspent balance out of the 2/3rd
funds at the end of the financial year, if any, shall be
made over to the respective corporations.
It is observed in audit that in many cases the funds to be earmarked as per the
orders of Government were worked out and provided for in their respective budget
estimates. But, funds were neither made over to the respective corporations at the
beginning of the year nor fully utilized by the Mandal Parishads. The unspent balances at
the end of the year were also not remitted to the respective corporations in many cases.
Such inaction had defeated the very purpose of earmarking of funds.
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During the course of audit of M.P. Palakonda of Srikakulam District for the year
2008-09, it was noticed that a sum of Rs:1,97,952 is available for implementation of
various activities benefiting the S.Ts., in Mandal area in addition to the above a sum of
Rs.1,52,000 was allocated during the year 2008-09. But, no single work is proposed and
completed from the above funds, due to which the purpose of earmarking funds for the
development of S.Ts., is defeated. It is further noticed that the unspent balance was also
not remitted to the respective Corporation/Agencies during the end of the financial year
2008-09 as per said G.Os.
In M.P. Guntur, out of total accumulated balance of Women and Child welfare
fund of Rs:4,80,538, a sum of Rs:3,47,226 was utilized during the year 2008-09. But the
unspent balance of Rs:1,33,357 is not remitted to the Women welfare Corporation as per
rules. Action would need to be taken to transfer the unspent balances to the respective
Corporations at the close of every financial year.
During the year a sum of Rs. 4574.75 lakhs was earmarked under S.C., S.T., and
Child and Women Welfare at the rate of 15%,6% and 15% respectively as detailed in the
table . Out of which a sum of Rs. 2965.13 lakhs only utilized and transferred to the
respective funds. The balance of Rs.1609.62 lakhs was neither utilized nor transferred to
the respective corporations. The percentage of utilization/transferred and balance to be
utilized/ transferred is shown in the table along with their percentage of achievements.
Rs. Lakhs
#
Name
of the
Fund
% of funds
earmarked for
each category
Amount
earmarked
Amount Utilized +
transferred to the
concerned agencies
% of
utility and
transferred
Amount
Leftover
1 S.C 15 2084.51 1303.99 63 780.52
2 S.T 6 691.12 570.36 83 120.76
3 W&CW 15 1799.12 1090.78 61 708.34
4574.75 2965.13 1609.62
As analyzed from the above table it is clear that, out of total allocation only
64.82% of total earmarked was utilized and transferred to the connected agencies and
35.18% of the earmarked amount was kept without proper utilization/transfer.
It is also noticed that a total sum of Rs.6925.25 Lakhs is available as OB at the
beginning of the year. The O.Bs., available in the MPs., reflects the inaction of the
executive authorities in utilizing/ transferring the funds in time as per rules. Thus the
intended welfare is defeated in every case.
A Consolidated Statement – 4 (2) of Non-utilization of Earmarked Funds is
appended to the Report from which it could be seen that an amount of Rs. 710.94 lakhs
was pointed out in 1470 audit paras .
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7. NON-COLLECTION OF DUES
On verification of Revenue Collections in Mandal Parishads (source of revenue to
Mandal Parishad), it was observed that huge amounts were left pending realization for
longer periods and allowed to become barred by limitation of time in certain cases. No
appropriate action seemed to have been initiated by the executive authorities for
realization of taxes and fee etc due before they became barred by limitation of time in
spite of various statutory provisions existing for their recovery such as through distrait,
prosecution or filing of suits. Dependence on Government grants gets lowered if timely
and appropriate action is taken by the executive authorities for collection of these
outstanding dues which ultimately increases their self sustainability. In fact some of these
dues cannot be recovered legally now and constitute a permanent loss to the institutions
which needs to be curbed. A case study of the amounts outstanding / time barred dues
and dues which are likely to become time barred during the year 2008-09 in Panchayat
Raj bodies and others is given below.
During the course of audit of Mandal Parishads for the year 2008-09 it was
noticed that a sum of Rs.2,03,000 is pending realization towards shops rents in M.P.
Dhone of Kurnool District . In M.P Ravi kamathur and Golgonda of Visakhapatnam
District an aggregate amount of Rs.1,44,000 was pending realization towards shopping
complex rents and Market kist. In Srikalahasthi MP of Chittoor District a sum of
Rs.51,000 are pending realization towards shopping complex rents.
It is further noticed that in Narsipatnam MP of Visakhapatnam District , daily
market was leased out to Sri P.Arjuna, for Rs.11,03,500 and entered in to an agreement
to pay 1/3 of bid amount on the date of agreement and the remaining amount in 9
installments to be paid on 5th
of every month. But it was noticed that a sum of
Rs.6,72,000 was paid by the above bidder leaving a balance of Rs.4,31,500. In the same
way Sri K.Venkata Ramana Reddy has leased out Vemulapudi Daily Market for
Rs.2,38,500 with the above conditions. But it was noticed in the audit, only a sum of
Rs.1,01,780 was paid to the MP funds leaving a balance Rs.1,36,720. The above markets
are run y the Mandal Parishads only. It is not known how the Executive Authorities are
allowed the tenants/bidders to continue without paying such rents/kists etc. it is also
noticed that the above agreements were not registered, due to which there is no chance
for taking legal action on the such defaulters. If the Executive Authorities had taken the
action on the very next day of the due date, the above question of pending realization
could not have arose. Necessary instructions may be issued to the Executive Authorities
by making them responsible for such non-collections, so that the revenue of the Mandal
Parishads will be raised and financial position of the institution will be improved.
A Consolidated Statement – 4 (2) showing audit objections on Non- collection of
dues is appended to the Report from which it could be seen that an amount of Rs.114.57
lakhs was pointed out in 669 audit paras
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8. ADVANCES PENDING ADJUSTMENT
It was observed during the course of audit that temporary advances paid for
specific purpose were outstanding for a long time though they should have been got
adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the
A.P. Financial Code. Non-settlement of advances leads to misuse of advances to avoid
refund of unspent amounts. Several objections were raised on such outstanding advances
in the relevant Audit Reports pointing out failure of the executive authorities to take
necessary action to get these advances adjusted.It was also observed that huge amounts of
personal advances were outstanding for a long time due to the inaction of the drawing
officers.
During the course of audit it was observed that House Building Loan, Marriage
Advance, Vehicle Advance etc., given to the staff. But the D.D.Os are not recovered the
same though they can recover easily from salaries. Due to which a huge financial loss
caused to the M.P. Funds. Action would need to be taken to recover the same from the
loanee along with the penal interest. In M.P. Khammam it was observed that a sum of
Rs.2,72,501 is left uncollected towards H.B.A during the year 2008-09. The advances
pending adjustment cause due to not showing the pending advances in the LPCs., of the
employees when every they were transferring from one institution to another, and non-
maintaining the advances recovery registers and for want of proper checking. The
Administrative Authorities has to take action in issuing of LPCs., forwarding of the pay
bills for payment, and before sanctioning the fresh advances to staff. They should ensure
the dues from the staff in the above instances.
In some instances advances were given to the Engineering Staff for execution of
certain works. But the same were neither adjusted nor recovered till the closure of audit.
The EA has not taken any action to recover the same which leads to temporary
misappropriation of funds due to irresponsible of the Executive Authorities.
The receipts of the advances are 0.74% in total receipts and the payments are
0.97% in total payments of the year. The figure shows the week repayments by the
loanees compare to the payments made towards advances.
A Consolidated Statement – 4 (2) showing audit audit objections on Advances
Pending is appended to the Report from which it could be seen that an amount of Rs.
285.95 lakhs was pointed out in 626 audit paras.
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 have violated either
due to negligence or ignorance. In certain cases, the funds of the Panchayat Raj bodies
were utilized for purposes other than the permitted ones under the Act / Rules.
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In GM No.96929/I&PR/A1/2003-1 dated 12-09-2003Government have
instructed all the Head of the Departments to release advertisements of press publicity
through I&PR Department alone and the payments to be made after obtaining
certification of the bill by the I&PR Department. During the course of annual audit on the
accounts of Mandal Parishads it was noticed that huge expenditure were incurred
following violating the above orders. Such inadmissible expenditure was pointed out in
the Audit Reports of the respective MPs. For example a sum of Rs.15,000 in Veeraballi
MP of Kadapa District and Rs.6,494 in MP Rompicharla of Chittoor District were
noticed as inadmissible payments made by violating the rules towards advertisement
charges during the year under report.
In many instances huge amounts were paid to the officers of various levels of
M.P. towards Cell Phone charges in excess of the ceiling fixed in
Memo.11136/CP&DE/01.09.2003 read with Cir.No.741/IT&C/2003 of IT&C Dept.,
dt.13.11.03 and G.O.Ms.No.291 IT&C Dept dt.27.09.2007. In some cases irregular
appointments were made against to act 2 of 1994 and instructions issued in
Memo.44742/A1/412/A1/FC111/97 dt.04.11.1997.
During the course of audit of MP Ibrahimpatnam of Ranga Reddy District for the
year 2008-09, it was noticed that a sum of Rs.12,134/- was drawn towards refreshment
charges for General Body meeting held on 08-08-08. Out of which an amount of
Rs.6.650 was paid towards purchase of 9 calculators & 25 Lifco dictionaries. The above
expenditure is held under objection as it is unauthorized utilization of funds for whicyh
they were drawn. Such violations attract surcharge action.
A Consolidated Statement – 4 (2) showing audit objections on Violation of
Rules is appended to the Report from which it could be seen that an amount of Rs.
485.30 lakhs was pointed out in 3774 audit paras
10.NON-REMITTANCE OF DEDUCTIONS / RECOVERIES FROM
VOUCHERS / PAY BILLS / CONTINGENT BILLS
It was noticed during audit that various deductions / recoveries effected from the
work bills / pay bills were not remitted to Government. And in some cases a part of
them only were remitted in spite of statutory obligation to remit the same to Government
account with in a prescribed time under the relevant statutory provisions which also
include penalty as well as prosecution for non adherence. The deductions like IT ,
seigniorage charges and PT normally made from work bills / pay bills that are to be
remitted to Government account.
Under Section 200 of IT Act 1961. Read with Rule 30(1)(b) the authority which
deducts the IT from work bills or from Pay Bills shall remit the same to the Income tax
Department within first week of the next month of such deduction. In case of failure the
D.D.O will be held responsible for payment of such deduction under Sec.201(1), along
with Penal Interest @15% P.A.under Sec.201(1)(a). In many cases the income tax was
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not recovered , some cases recovered income tax was not remitted to IT Department and
in some cases recovered tax was remitted partly. As per G.O.Ms.No. Rev(CT-II) Dept.,
dt.07.08.2000 read with Government Mem.No.4638/CT-II (I) Dept., dt.02.01.2003, the
ST/VAT has to be deducted @ 2% of turnover exclusive civil contract for laying or
repairing of roads digging lining and repairing of canals. @ 4% of turnover for other
contracts work bills. The recovered amount has to be remitted to the state funds within a
week from the date of recovery. If failed the D.D.O has to Pay 24% Penal Interest besides
the recovered ST/VAT to the state funds. But during the course of audit it was observed
that the recovered amount were not remitted Partly remitted to the state funds. It was
noticed during the year that a sum of Rs. 403.78 lakhs of recoveries made from the work
bills was not remitted to the concerned Head of account. During the year 12 types of
remittances not remitted/non-deductions made were noticed and the same were
incorporated in the statement.
As per G.O.Ms.No.331 Industries and Commerce (M.I) Dept., dt.21.06.2000
Seignorage fee shall be recovered from the work bills on all minor mineral dispatch/
consumption from the land, and the same has to be credited to the consolidated fund of
State Government through the AD of Mines & Geology of the respective district. As as
verified from the objections raised during the year it was noticed that an amount of
Rs.169.04 lakhs of Seigniorage fee collected not remitted to the State Funds, and a sum
of Rs.213.93 lakhs was not deducted from the work bills.
It is further noticed that the deductions made towards PT from the pay bills of
employees has not remitted to the concerned funds. In the above all cases the drawing
officer has to be held responsible for the omissions. Action would need to be taken on the
D.D.Os departmentally based on the observations made in the Audit Reports concerned
to avoid such inactions in future and to rectify the omissions already done.
A Consolidated Statement – 4 (2) showing audit objections on Non –remittance
of Deductions/Recoveries from vouchers /Pay Bills/Contingent Bills is appended to the
Report from which it could be seen that an amount of Rs. 1418.13 lakhs was pointed out
in 2036 audit paras
10.1. INCOME TAX RECOVERIES NOT REMITTED / PARTLY REMITTED
Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b) the
authority which deducts the Income Tax from work bills or from pay bills shall remit the
same to the Income Tax Department within the first week of the next month of such
deduction. In case of failure to remit the Tax, the Drawing and Disbursing Officer will
be held responsible under section 201 (1). And for payment of interest at 15% per annum
under section 201 (1)(a) from the time of such default till the payment of such tax and
prone to levying of penalty. Under section 221 up to the amount of tax not remitted plus
prosecution under section 276 B for a period ranging from three months to seven years
with fine. Though the statutory provisions are clear, it was observed during the year
under audit that the Income Tax deducted at source from the work bills was not remitted
to the Central Government Account till the close of audit. Such irregularities noticed
were pointed out in the relevant audit reports of various institutions shown below.
- 107 -
INCOME TAX DEDUCTED BUT NOT REMITTED
Amount in Rs.
# Name of the MP and District Amount
recovered
under IT
Amount
remitted
Amount
to be
remitted
Para
No. of
the AR
1 K. Gangavaram ,East Dodavari 227173 0 227173 20
2 Pedavegi ,West Dodavari 44897 0 44897 12
3 Chodavaram ,Visakapatnam 22636 0 22636 5
4 Veeraghattam ,Srikakulam 17304 0 17304 25
5 Unguturu, Krishna 19635 0 19635 14
6 Railway Koduru, Kadapa 33214 0 33214 12
7 Achampet, Mahaboobnagar 33980 0 33980 19
8 Velgatoor ,Karimnagar 123752 0 123752 6
9 Peddemul, Rangareddy 17570 0 17570 7(a)
10 Guntur, Guntur 235055 216790 18265 12
11 Narsapur ,Medak 10631 0 10631 14
569057
10.2 SALES TAX DEDUCTED BUT NOT REMITTED TO THE STATE FUNDS.
The sales tax has to be recovered Under A.P.G.S.T Act 1957 as amended from
time to time and as per G.O.Ms.No.556 Revenue (CI-II) Department Dated 07-08-2000
read with Government Memo.No.4638/CT-II(I) Department Dated 02-01-2003. The
above Tax @ 2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for
exclusive civil contracts for laying or repairing of roads. Contracts for canal digging
lining and repairing and @ 4% of turnover for all categories of other contracts not falling
in the above mentioned category has to be recovered from the work bills. And the same
has to be remitted to state funds within a week from the date of recovery. If failed the
Drawing Officer has to pay personally 24% penal interest besides remitting the amount to
state funds.
It was observed that Sales Tax/ VAT deducted at source from the work bills was
not remitted to the state funds till the close of audit.
- 108 -
A few of such cases are mentioned below.
Amount in Rs
# Name of the MP and District Amount of Vat deducted but
not remitted
Para No. of the
AR
1 Buchiyapeta Visakhapatnam 20956 5
2 K. Gangavaram East Godavari 458570 20
3 DenduluruWest Godavari 22577 12(B)
4 Bhemunipatnam
Visakhapatnam
297700 5
5 Kanchili Srikakulam 25021 13
6 Unguturu Krishna 21174 14
7 Tanguturu Prakasam 28850 7
8 Indukurupeta Nellore 34350 13
9 Railway Kodur Kadapa 33214 12
10 Dhone Kurnool 27839 11
11 Balanagar Mahaboobnagar 112070 13
12 Mallial Karimnagar 27571 3(c )
13 Narsimhulapeta Warangal 2240 12
14 Ibrahimpatnam Rangareddy 184315 19
15 Guntur Guntur 492164 12
16 Shivampeta Medak 25067 10
Total: 1813678
10.3 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED.
As per G.O.MS.No.331 Industries and Commerce (M.I) Department Dated 21-06-
2000 Seignior age Fees or Dead Rent which ever is higher shall be recovered from the
work bills on all Minor Minerals dispatched or consumed from the land. The rates of
deductions are specified in Schedule-I and Schedule-II annexed to the said G.O as the
case may be and to be credited to the consolidated fund of State Government through the
concerned Assistant Director of Mines & Geology of the District. However it was
observed that though the amounts were recovered from the work bills towards Seignior
age Fees the same were either not remitted or partly remitted to State Funds till the close
of audit. Such inaction was pointed out in the relevant audit reports of the following
institutions. Some of such instances are listed below.
- 109 -
SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED
# Name of the MP and District Amount deducted but not
remitted Para No. of the AR
1 Atreyapuram East Godavari 164692 11(1)
2 K. Gangavaram East Godavari 134052 20
3 Pedavegi West Godavari 230373 14
4 Chodavaram Visakhapatnam 334644 5
5 Burja Srikakulam 21549 30
6 Kanchili Srikakulam 15041 13
7 Unguturu Krishna 30983 14
8 Chimakurthi Prakasam 1124889 8
9 Tanguturu Prakasam 145218 8
10 Indukuripeta Nellore 75620 13
11 Nandalur Kadapa 127073 10
12 Dhone Kurnool 29486 11
13 Balanagar Mahaboobnagar 83738 13
14 Veligatoor Karimnagar 179269 6
15 Ibrahimpatnam Rangareddy 133897 19
16 Guntur Guntur 358759 12
17 Narasapur Medak 39569 14
3228852
NAC Charges
Amount in Rs
# Name of the MP&
District
Amount Deducted but not
remitted `Para No.
1 K. Gangavaram East Godavari 25631 20
2 Bhimunipatnam Visakhapatnam 2067 5
3 Ibrahimpatnam Srikakulam 14431 13
4 Indukuripeta Nellore 2687 13
5 Mydukur Kadapa 2000 4
6 Balanagar Mahaboobnagar 7451 13
7 Velgatoor Karimnagar 11505 6
8 Medchal Rangareddy 28467 17
94239
- 110 -
10.4. LOBOUR CESS DEDUCTED FROM WORK BILLS BUT NOT REMITTED
Lobour Cess recoveries made from work bills were not remitted to concerned
head of account till the close of audit. Such in action of the Executive Authority was
pointed out in the relevant audit reports. some instances are shown below.
Amount in Rs.
# Name of the MP&
District
Amount
deducted but not
remitted
Para No.
1 S.RajavaramViskhapatnam 4902 6(5)
2 GiddaluruPrakasham 2426 6
3 Nandaluru Kadapa 2500 4
11. NON-PRODUCTION OF RECORDS
The Panchayat Raj Bodies provide certain basic civic infrastructure and services
like Road Drain Street lights water Supply Conservancy and solid waste management.
They also perform certain regulatory functions. They also prepare plans for economic
development and social justice. With the rise in demand for services the functionaries
need to have effective financial management skills and accountability practices.
All these functions would be reflected on the record when they were accounted
for as per the provisions contained in AP Account code which comprises the comptroller
and Auditor General (C&AG) rules together with the local rulings relating to Local
variation in accounts procedure. These initial accounts are to be kept ready and should
have to be produced to Audit for verification. Then only the transparency in incurring of
public money and their utility to the General Public can be reasonably judged.
Such as important function on the part of the Drawing and disbursing officers of
all the Local Bodies in the maintenance and production of records to audit are not
properly being maintained. Thereby the main access to clear the doubt of transparency in
public expenditure have not been availed. In spite of all these guidelines and instructions
the DDOs of all local bodies have failed to maintain the records and to produce the same
to Audit when ever the local teams visited their institutions. Further it is surprise to note
that the heads of the institutions could not explain why the records could not be
maintained in the office and can be produced when ever they are being demanded by the
audit parties and other agencies during their local visits.
The financial health of an institution depends up on the quality of the records that
are being maintained to show the accountability of the financial transactions that occur in
the institution. Records like M. Books connected files vouchers in which crores of
rupees transacted in many institutions form major chunk of audit objections under the
category of non production of records. Transactions relating to purchase of various
- 111 -
contingent articles goods etc. were not accounted for in stock registers and produced to
audit. Remittances made to different departments etc for which neither the
acknowledgements nor any evidence produced in audit also form part under this
category. Though several half margin letters issued for production of the required record
the executive authorities did not comply with which resulted in inaccessibility to the
records and raising of paras to that extent.
Due to non production of M-Books & Estimate etc. the correctness of the
payments made could not be certified . Non production of layout register there is a
chance for disposal of layouts. The Major portion of non-production goes to M-Books
and second slat goes to non-production of Vouchers. The main records to check the
correctness of the expenditure are M-Books and Vouchers. Without verifying the above
two records the major portion of the audit is in doubt. And there is every chance for
fraud and misappropriation of funds. As stated in Rules 5 and 6 of the State Audit Rules
framed under State Audit Act 1989 the CEO is responsible for preparing and production
of Annual Accounts and produce records for audit. The failure of the CEOs. in
discharging the above function defeated the very purpose of audit and thereby there is
chances for fraud and misappropriation of the funds of the institution.
A Consolidated Statement – 4 (3) showing audit objections on Non-production
of Records is appended to the Report from which it could be seen that an amount of Rs.
1514.01 Lakhs was pointed out in 3316 audit paras
12. MIS-APPROPRIATIONS :
During the course of audit under report it was noticed that 107 misappropriation
suspected cases were noticed. The above category occupies 0.29% in number and 0.12%
in amount involved among the total audit objections. Necessary surcharge action will be
taken by this department as per the procedure laid in Rules 9 of the State Audit Rules
framed under State Audit Act 1989 on all fit cases. If surcharged amount is not paid by
the surcharhee within 60 days the same will be recovered under Revenue Recovery Act. .
During audit it was observed that a sum of Rs.14,869 was drawn by the MPDO
Venkatapuram, Khammam district vide cheque No.00329/06.02.2009 but the purpose of
drawal is not recorded in the Cash Book and the same was also not remitted to the
Mandal Parishad Funds till 31.03.2009.
In MP Thandur of Ranga Reddy District a sum of Rs.9,21,450 was paid to Sri
G.Krishna Reddy Contractor through Cheque.No. 000995/26.03.2009 but the relevant
adjustment particulars were not furnished to audit. The matter was brought to the notice
of the MPDO Vide. HM Lr.No.7/Spl/2009-10 dt.23.02.2010 he has neither replied nor
remitted the said amount to Mandal Parishads Funds. In the same M.P. a sum of
Rs.87,350 was drawn and paid to the Contractor (Details not noted)
Vide.Cheque.No.000977/05.03.2009. No details for the above amount was furnished
even after brought to the notice of the MPDO through Special letter.
- 112 -
An amount of Rs.8,400 was drawn towards payment of sitting fees to MPTCs for
the General body meetings of the Ibrahimpatnam M.P., of Ranga Reddy District, for the
ear 2008-09. But, on verification of the Acquittance Register it was observed that an
amount of Rs.4,450 only was disbursed to the MPTCs/ Sarpanches, till the close of audit
and the balance amount of Rs.3,950 was neither accounted for nor remitted back to
Mandal Parishad funds which is construed as misappropriated.
In Thandur Mandal Parishad of Ranga Reddy District for the year 2008-09, it was
observed that a sum of Rs.2,23,296 was drawn in three different cheques on 8-4-2004 and
12-4-2008. The details for which purpose the advance was drawn is not recorded in the
cash-book. Drawl of amounts without indicating the purpose is inadmissible and
construes clear case of misappropriation of funds.
In all above cases, action would need to be taken for immediate recovery of the
same along with penal interest besides disciplinary action under CCA Rules as per
G.O.Ms.No.25 GA (Ser.C) dt.03.02.2009.
A consolidated statement of audit objections on misappropriations noticed in
audit is annexed vide Statement – 4 (3) . A total number of 32 cases involving an
amount of Rs. 4.49 lakhs were pointed out in the relevant ARs.
13. EXCESS PAYMENTS
It was observed in audit that in several cases excess payments were made due to
either.
(a) Incorrect calculations or
(b) Excess totaling in Bills or
(c) Admission of inadmissible claims or
(d) Lack of knowledge of Government instructions.
During the course of audit M.P.Zaheerabad of Ranga Reddy District for theyear
2008-09, it was noticed that a sum of Rs.6053.00 was excess paid in the work
“Construction of side Drain” as detailed below.
#
Name of the
work Vr.No.&Dt
MB No.&
Page
Number
Descriptio
n
Rate
allowed
Rate as
per
estimate
Exc
ess
Quantit
y
Diff.Amo
unt.
1 Const.of Side
drain
M.B.No.30
0/BM
P.g.No.39
Collection
of Gravel 141.76 114.76 27 224.18 6,053.00
During the course of audit of M.P.Paderu of Vishakapatnam District, it was
noticed Sri.G.V.Chittiraju MPDO has occupied the Government Quarters. But as verified
from the Pay Bills it is noticed that the HRA & AHRA admissible to him was not
deducted from the pay bills and paid in full which lead to excess payment. Therefore the
HRA & AHRA paid to the above MPDO from 4/2007 to 3/2009 is worked out to
Rs.38813 and held under objection as excess payment.
- 113 -
In Saluru MP of Vizayanagaram District it was noticed that a sum of Rs.23,227
was excess paid uin construction of culvert at Gedipallivalasa as detailed below.
Cost paid Rs. 3,838.13 per RMT
Cost of RCC pipes as per estimation Rs. 2,909.04 per RMT
Excess paid Rs.
929.09x25RMT=23,227
A Consolidated Statement – 4 (3) of showing audit objections on Excess
payments is appended to the Report from which it could be seen that an amount of Rs.
144.29 lakhs was pointed out in 458 audit paras.
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 to act under Articles 3 of Financial
Code (Vol.I) to exercise the same diligence and care in expending public money under
their control as persons of ordinary prudence would exercise in respect of their own
money. Government have issued instructions through various orders and also
incorporated in the statutes of local bodies the various items on which public money can
be expended and the principles to be adhered to while expending on such items. Yet it
was noticed in audit that the funds of Panchayat Raj bodies were several times incurred
without adhering to the laid down principle leading to wasteful expenditure of public
money. All the cases of such wasteful expenditure observed in the audit of Panchayat
Raj bodies for the year 2008-09 were expenditures that were avoidable extraordinary and
lacked proper planning.
14.1. ADVERTISEMENT PUBLISHED ON DEVELOPMENT ACTIVITIES
WASTEFUL EXPENDITURE – NEEDS ACTION Rs.14,000.
An amount of Rs.15000 was drawn on the following vouchers from the General
Funds towards advertisement charges in Vaartha, Telugu daily news paper to publish the
congratulatory message to the newly elected MPs, MLAs & MPTCs in the Mandal
Parishad Jurisdiction.
As there is no provision in the A.P. Panchayat Raj Act to incur such expenditure,
the same is rregular and wasteful expenditure as it is neither incidentalto administration
nor beneficial to the public in the Mandal Parishad area.
Vr.No.&Date Particulars Amount Rs.
37/23-5-09 Congratulatory message in
Vaartha
14,000
88/4-9-08 Advt.Charges 1,000.
Total 15,000
- 114 -
A Consolidated Statement – 4 (3 of showing audit objections on Wasteful
Expenditure is appended to the Report from which it could be seen that an amount of
Rs. 71.36 lakhs was objected in 69 audit paras
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 – 4 (3 to the Report showing 14 paras involving an amount of Rs.0.04 lakhs.
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) Department 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 ZP / MP /
GPs shown in the statement appended herewith.
According to Article 211-A(2) of the Financial Code Vol. it is responsibility of
the grant releasing authority to send an UC in the prescribed proforma duly certified by
the DAO of State Audit Department of concerned District. But during the course of audit
it was noticed that the utilization certificates as per rules ahs not submitted to the
concerned. Due to which the very purpose of the releasing of grant will not serve. And
proper utilization of the grant it could not be certified in audit. Thus there is a chance for
deviation of the works and also chance for fraud. Due to non-furnishing of the UCs. the
further grant would not be received. Some of the examples are read here in Peddemul
MP of Rangareddy District it was noticed that a sum of Rs.1,95,000 was released under
TFC grants Rs.2, 10, 375 & Rs.10,50,000 under ACDP and a sum of Rs.82994 was
released under SFC Grant to Eluru MP of West Godavari District. But the Utilization
- 115 -
Certificates were not furnished to audit to check the correctness of the utilization.
Necessary instructions may be given to the Grant Receiving authorities in this regard to
have control on the grants and their proper utilization and in remitting of the unutilized
balances.
A Consolidated Statement – 4 (4) showing audit objections on Pendency of
Utilization Certificates is appended to the Report from which it could be seen that an
amount of Rs.39.27 lakhs was pointed out in 1464 audit paras.
17. SURCHARGE CERTIFICATES RECOVERY PENDING
In accordance with the provision of the State Audit Act 1989 and Rules issued
there under the audit of schemes as entrusted by the Government is being conducted and
various defects noticed during the audit also pointed out in the relevant Audit Reports
every year. In the case of serious irregularities Special Letters are also issued to Chief
Executive Authorities concerned to make the loss good to the funds of the institutions
concerned.
Pursuant to the special letters surcharge action as per Sec. 10 of the State Audit
Act 1989 is initiated for recovery of the amounts involved in clear cases of the loss mis-
utilization mis-appropriations wasteful expenditure excess and irregular payments. The
amount surcharged have to be recovered treating them as Revenue Recoverable under
Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State Audit Rules issued in
G.O.Ms.No. 130 Finance & Planning (FW.Admn.II) Department dated 8-9-2000.
As stated in Rule 9(5) every person aggrieved by any disallowance surcharge may
within 60 days after the date of service on him can file an appeal before the government
who shall pass such orders as it deems fit/to make an application to the concerned
Principal Civil Court of their jurisdiction to set aside such allowance. Under sub rule (8)
of the said rules the surcharged amount shall be paid by the person in the nearest
Treasury or in the office of the Local Authority. In case of neither remittance nor make
an appeal such sum shall be recoverable as if it were arrear of Land Revenue. But during
the course of audit it was noticed that no such action has been taken on SCs. issued by the
State Audit Department thereby the very purpose of the surcharge action is deprived of.
Action would need to be taken in recovering the surcharged amounts from the
surchargees who were not reacted within the time as per rules.
A Consolidated Statement – 4 (4) showing audit objections on Surcharge
certificates recovery pending is appended to the Report from which it could be seen that
an amount of Rs.0.35 lakhs was pointed out in 7 audit paras.
- 116 -
18. OTHERS
There are other irregularities pointed out in audit which do not come under the
above 17 categories. A few examples are narrated in brief. In MP Polaki of Srikakulam
District it was noticed that 53 acres of the Cashew gardens were leased out at the
following rates which shows fluctuations in leased amounts. The reasons for such
fluctuations is not known to the audit.
Year Leased for Rs.
2005-06 1,39,000/-
2006-07 90,000/-
2007-08 3,11,000/-
2008-09 1,80,000/-
It was also noticed that a sum of 3,03,400 was left uncollected towards leased
amount for the period from 1994-95 to 2002-03. If the lessee has not paid the entire
leased amount the Executive Authority should have taken the action by forfeiting the
EMD&FSD etc. Further the EA should have not allowed the lessee to harvest the crop
without paying the entire bid amount as per tender conditions.
In MP Kanchili of Srikakulam District it was noticed that a sum of Rs.2,02,892
was deducted by the treasury authorities under narration lapsable as on 31-03-2009.
under G.O.Ms.No 43 Fin (W&M) Dept. Dated 22-4-000 the unspent balances under
schemes alone are lapsable. The amount lapsable are related to earmarked fund for
W&CW which has to utilize within 18 months. The lapse is caused due to lapse of
proper check by the Executive Authority and due to which the developmental activities
are held up. .
As per G.O.Ms.172 PR&RD dated 23-02-2005 the Annual Account has to be
maintained in New Accounting system but in most of the Mandal Parishads it was
noticed that the accounts and other subsidiary Registers are not maintained in the
proformas prescribed in the above Government Orders. Necessary and strict instructions
would need to be given to the Executive Authorities concerned to migrate into the New
Accounting system.
Government have reviewed the present systems and felt the need for
strengthening the Asset Management at various levels. The controls over land and
buildings stocks stores and other assets require strengthening to prevent any misuse.
There is every need to have relevant and reliable information about assets. It is therefore
essential to develop and maintain inventory of all assets to ensure that they are brought
into the books. The key requirements to ensure that assets are retained in the proper
custody and used as per the following norms prescribed.
a) Physical controls: All assets are kept under proper watch and ward to safeguard them
against theft pilferage damage and risk posed by the weather.
- 117 -
b) Asset Registers: The asset registers must be maintained as per the formats stated in
G.O.Ms No. 667 Finance (TFR.II) Dept dated 11.10.2004 for the every year ending with
31st December. The custodians for the assets are required to maintain Asset Registers for
all assets with up to date entries to know the actual ownership and prevent illegal
occupation/utilization.
c) Physical Verification: There are three forms of physical verification required - first
regular attestation of the accuracy of the records; secondly verification by the Head of
Office at least once a year and thirdly authentication by the Superior Officer during the
periodic inspections.
d) Disposal of Assets: All the offices are required to maintain a register of
unserviceable assets and dispose of the unserviceable assets as per provisions of A.P.
Financial Code Volume I and Departmental Codes and Manuals.
In G.O.Ms.No.667 Finance (TFR II) Department dated 11-10-2004 Government
have prescribed the following registers keeping in view the generality of the assets in
different categories like buildings roads etc.
1. Register of lands
2. Register of Buildings
3. Register of roads
4. Register of trees
5. Register of vehicles
6. Register of plant Machinery and Equipment
7. Register of Computer Hardware
8. General stock Register
9. Register of Furniture & Fixtures including Air Conditioners
10. Register of unserviceable articles
But the above registers were not maintained and produced to audit for
verification. Early action may be taken for the maintenance of the above registers and
produced to audit.
A Consolidated Statement – 4 (4) showing audit objections on others is
appended to the Report from which it could be seen that an amount of Rs. 439.16 lakhs
was pointed out in 5211 audit paras .
19. DEMAND DRAFTS / BANKERS CHEQUES ETC. RECEIVED
BUT NOT REALIZED WITHIN TIME :
Demand Drafts and cheques received for payment of money due to the Panchayat
Raj Bodies are to be entered in a register of Demand Drafts and Cheques received and
should be sent to the Banks for realization immediately. In the following cases Demand
Drafts received were not presented to the banks for payment till the close of audit.
- 118 -
19.1 GRANTS RELEASED FROM C.E.O. Z.P. KHAMMAM – NOT
IN TREASURY PASS BOOK – NEEDS EARLY ACTION Rs.55676.
As verified from the General fund cash book and Treasury pass book of MPP.
Chintoor the following amounts released by the Chief Executive Officer Zilla Parishad
Khammam towards SFC 1st quarter grant for the year 2008-09 of Rs.40,533 and seignior
age grant 2nd
quarter for the year 2008-09 for Rs.15,143 were not adjusted in the General
fund account of MPP Chintoor The same is recorded by the CEO in the records of the
MP during the time of inspection. Even then the same was not taken into the account of
MP.
Amount in Rs.
Sl.
No. Purpose of Grant Amount to be adjusted
01 SFC 1st Quarter for 2008-09 40,533
02 Seigniorage Grant of IInd quarter for the
year 2008-09.
15,143
Total: Rs.55,676
A Consolidated Statement – 4 (4) showing audit objections on D.D
Cheques but not realized with in time is appended to the Report from which it could be
seen that an amount of Rs. 0.56 lakhs was pointed out in 1 audit para .
DATE:31-12-2011 HYDERABAD DIRECTOR
STATE AUDIT
A.P., HYDERABAD
- 119 -
STATEMENT No. 1
CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT
#
NAME OF
THE
INSTITUTION
DEMAND AS ON
1-4-2009
AUDITS
COMPLETED AS
ON 31-3-2010
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 MANDAL
PARISHADS 2 1097 0 1090 2 7
- 120 -
STATEMENT No. 1 (1)
STATEMENT SHOWING STATUS OF AUDIT OF MANDAL PARISHADS
AS ON 31-3-2010
#
NAME OF
THE
DISTRICT
DEMAND AS ON
1-4-2009
AUDITS
COMPLETED AS
ON 31-3-10
BALANCE AS
ON 31-
03-2010
ARREARS CURRENT ARREARS CURRENT ARREAR
S CURRENT
1 Adilabad 0 52 0 52 0 0
2 Ananthapur 1 63 0 63 1 0
3 Chittoor 0 65 0 65 0 0
4 East Godavari 0 58 0 58 0 0
5 Guntur 0 57 0 57 0 0
6 Kadapa 0 50 0 49 0 1
7 Karimnagar 0 57 0 55 0 2
8 Khammam 1 46 0 46 1 0
9 Krishna 0 49 0 49 0 0
10 Kurnool 0 53 0 53 0 0
11 Mahaboobnaga
r 0 64 0 64 0 0
12 Medak 0 46 0 46 0 0
13 Nalgonda 0 59 0 56 0 3
14 Nellore 0 46 0 46 0 0
15 Nizamabad 0 36 0 36 0 0
16 Prakasam 0 56 0 56 0 0
17 Ranga Reddy 0 33 0 32 0 1
18 Srikakulam 0 38 0 38 0 0
19 Visakhapatnam 0 39 0 39 0 0
20 Vizianagaram 0 34 0 34 0 0
21 Warangal 0 50 0 50 0 0
22 West Godavari 0 46 0 46 0 0
Total 2 1097 0 1090 2 7
- 121 -
STATEMENT No. 2
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS (Funds)
OF MANDAL PARISHADS FOR THE YEAR 2008-09
Rs.in Lakhs
# NAME OF THE
DISTRICT RECEIPTS PAYMENTS
1 Adilabad 1254.29 1262.86
2 Ananthapur 1109.93 2254.66
3 Chittoor 4148.14 4080.66
4 East Godavari 6507.17 6581.21
5 Guntur 3697.95 3822.40
6 Kadapa 642.48 662.90
7 Karimnagar 3170.70 3300.31
8 Khammam 4249.77 3212.74
9 Krishna 2046.45 2406.87
10 Kurnool 502.98 593.59
11 Mahaboobnagar 1856.68 1369.01
12 Medak 1892.42 1564.57
13 Nalgonda 6057.33 5583.25
14 Nellore 974.30 1143.18
15 Nizamabad 387.66 478.47
16 Prakasam 1490.95 1386.39
17 Ranga Reddy 3864.33 4667.63
18 Srikakulam 610.51 923.08
19 Visakhapatnam 1122.43 1132.00
20 Vizianagaram 1437.07 1682.81
21 Warangal 2025.47 2108.47
22 West Godavari 2657.88 2513.84
TOTAL: 51706.90 52730.90
122
STATEMENT No. 2(a)
STATEMENT OF CONSOLIDATED fund wise RECEIPTS OF MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
# NAME OF THE
DISTRICT
General
fund
Educati
on fund
Social
Welfar
e Fund
M.I
Roads
&
Bridges
Rural
Water
Supply
Other
Program
mes
SGRY Depos
its
Advanc
es Total
1 Adilabad 254.35 0.00 42.91 0.00 0.00 6.44 685.40 142.99 96.93 25.27 1254.29
2 Ananthapur 594.76 0.00 16.81 0.00 0.00 0.00 476.90 11.06 4.74 5.68 1109.93
3 Chittoor 702.88 2113.04 0.00 0.00 2.83 0.00 1287.21 0.00 38.06 4.12 4148.14
4 East Godavari 3459.90 0.00 952.21 0.00 1.18 0.02 1966.63 0.00 28.20 99.03 6507.17
5 Guntur 2521.78 208.90 653.21 0.00 0.00 0.00 197.96 12.95 62.34 40.81 3697.95
6 Kadapa 559.91 0.00 0.00 0.00 0.00 0.00 82.57 0.00 0.00 0.00 642.48
7 Karimnagar 1055.98 88.97 0.00 0.00 0.00 1.19 1750.04 33.55 188.48 52.49 3170.70
8 Khammam 1142.52 0.00 83.74 0.00 0.00 0.00 3016.01 0.00 7.50 0.00 4249.77
9 Krishna 1407.30 0.00 85.73 10.09 22.99 35.58 156.59 313.54 13.06 1.57 2046.45
10 Kurnool 305.99 0.00 93.84 0.00 0.00 0.00 5.83 92.91 3.35 1.06 502.98
11 Mahaboobnagar 966.13 0.00 0.00 0.00 0.00 0.00 879.00 0.00 11.11 0.45 1856.68
12 Medak 1537.19 0.00 15.01 15.20 0.00 0.00 245.95 31.50 30.78 16.79 1892.42
13 Nalgonda 1547.46 0.00 23.97 0.00 0.00 26.62 4363.77 0.00 24.30 71.21 6057.33
14 Nellore 692.26 0.00 105.15 0.00 0.00 0.00 95.11 0.00 0.00 81.78 974.30
15 Nizamabad 289.29 0.00 0.00 0.00 0.00 0.00 93.48 0.00 2.11 2.78 387.66
16 Prakasam 928.14 0.00 95.49 0.00 0.00 9.70 318.53 62.95 54.36 21.78 1490.95
17 Ranga Reddy 3190.73 0.00 276.53 0.00 0.00 1.21 52.07 0.00 332.89 10.90 3864.33
18 Srikakulam 504.59 0.00 0.00 0.00 0.00 0.00 98.83 0.00 4.92 2.17 610.51
19 Visakhapatnam 769.58 0.00 18.43 0.00 40.44 0.00 12.57 206.76 20.12 54.53 1122.43
20 Vizianagaram 447.55 0.00 193.61 0.00 0.00 20.02 748.94 3.62 10.18 13.16 1437.07
21 Warangal 180.32 0.00 69.72 18.74 57.53 45.95 1630.95 0.00 0.00 22.26 2025.47
22 West Godavari 1373.73 0.00 32.45 0.00 0.00 443.93 746.76 0.00 25.75 35.26 2657.88
TOTAL: 24432.33 2410.91 2758.81 44.03 124.97 590.66 18911.09 911.82 959.18 563.10 51706.90
123
STATEMENT No. 2(b)
STATEMENT OF CONSOLIDATED FUND WISE PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
#
NAME OF
THE
DISTRICT
General
fund
Educatio
n fund
Social
Welfar
e Fund
M. I R &B RWS&
ARWS Others SGRY
Deposit
s
Advanc
es Total
1 Adilabad 273.87 0.00 6.01 0.00 0.00 12.34 682.55 175.90 73.75 38.44 1262.86
2 Ananthapur 476.52 0.00 92.21 0.00 51.66 9.03 1586.34 22.77 4.72 11.41 2254.66
3 Chittoor 677.47 1972.12 0.36 159.44 28.39 5.46 1194.95 0.00 36.96 5.51 4080.66
4 East Godavari 3135.70 0.00 955.00 0.51 517.90 17.85 1827.07 0.00 26.18 101.00 6581.21
5 Guntur 2543.23 224.52 656.13 0.00 34.24 10.94 237.31 18.00 25.58 72.45 3822.40
6 Kadapa 587.98 0.00 0.00 0.00 0.00 0.00 74.92 0.00 0.00 0.00 662.90
7 Karimnagar 1249.54 37.53 0.00 0.00 180.30 80.61 1590.25 8.48 110.92 42.68 3300.31
8 Khammam 980.52 0.00 62.20 0.00 0.00 0.00 2170.02 0.00 0.00 0.00 3212.74
9 Krishna 1456.26 0.00 147.17 8.17 44.26 49.36 304.89 384.97 10.00 1.79 2406.87
10 Kurnool 341.22 0.00 148.65 0.00 0.00 0.00 7.68 95.23 0.41 0.40 593.59
11 Mahaboobnagar 579.71 0.00 0.00 0.00 5.24 0.00 779.30 0.00 4.76 0.00 1369.01
12 Medak 1490.19 0.00 13.21 0.00 0.00 5.91 22.37 22.00 0.00 10.89 1564.57
13 Nalgonda 1531.90 0.00 26.18 0.00 0.00 15.97 3432.70 474.47 17.64 84.39 5583.25
14 Nellore 881.62 0.00 72.87 0.00 0.06 55.99 61.02 0.00 0.00 71.62 1143.18
15 Nizamabad 345.57 0.00 0.00 0.00 0.00 0.00 129.22 0.00 1.57 2.11 478.47
16 Prakasam 727.40 0.00 89.83 0.00 229.95 30.02 183.61 93.67 13.90 18.01 1386.39
17 Ranga Reddy 3860.04 0.00 435.85 8.64 113.12 5.92 39.77 0.00 191.83 12.46 4667.63
18 Srikakulam 802.23 0.00 0.00 0.00 0.00 0.00 113.28 0.00 4.75 2.82 923.08
19 Visakhapatnam 654.87 0.00 31.36 0.00 207.92 0.00 15.67 157.01 7.46 57.71 1132.00
20 Vizianagaram 501.22 0.00 364.95 0.00 0.00 37.71 741.79 17.69 4.98 14.49 1682.81
21 Warangal 147.52 0.00 69.08 33.04 82.53 70.30 1673.39 0.00 0.00 32.61 2108.47
22 West Godavari 1184.38 0.00 38.71 0.00 7.03 398.64 775.29 0.00 21.29 88.50 2513.84
TOTAL: 24428.96 2234.17 3209.76 209.80 1502.60 806.04 17643.39 1470.19 556.70 669.29 52730.90
124
125
STATEMENT No. 3
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS
(Funds) OF MANDAL PARISHADS FOR THE YEAR 2008-09
Rs.in Lakhs
Sl.No. Name Of The
District Receipts Payment
1 Adilabad 2030.28 2274.13
2 Ananthapur 4920.32 3329.64
3 Chittoor 6719.36 6276.02
4 East Godavari 5505.02 5582.32
5 Guntur 2718.32 2697.24
6 Kadapa 801.85 680.89
7 Karimnagar 3270.49 3012.67
8 Khammam 2314.19 3655.95
9 Krishna 1452.25 1541.16
10 Kurnool 313.62 267.30
11 Mahaboobnagar 836.36 856.95
12 Medak 1089.69 940.60
13 Nalgonda 4675.98 5345.52
14 Nellore 190.02 196.44
15 Nizamabad 1489.52 1518.74
16 Prakasam 582.08 376.46
17 Ranga Reddy 3006.18 3399.81
18 Srikakulam 3090.96 3321.13
19 Visakhapatnam 3800.64 3551.59
20 Vizianagaram 1999.36 1866.14
21 Warangal 2181.63 2120.75
22 West Godavari 2601.49 2351.23
TOTAL: 55589.61 55162.68
126
STATEMENT No. 3 (a)1
CONSOLIDATED STATEMENT OF GRANTS (Receipts) TO MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No.
Name Of The
District Teaching
Non-
teaching SGRY
Central
Finance
State
Finance RRM
Honorarium
to
Presidents
TA-Dato
non-
officials
TA-DA to
officers&
Staff
1 Adilabad 0.00 20.58 136.99 174.26 20.55 0.00 7.45 4.31 1.88
2 Ananthapur 0.00 1206.61 480.72 1822.53 85.55 1.74 38.24 15.17 5.43
3 Chittoor 5032.60 380.82 380.99 61.01 54.52 0.00 21.94 13.56 3.82
4 East Godavari 3665.41 290.69 0.00 53.77 33.15 117.02 13.25 6.28 13.60
5 Guntur 1132.02 176.61 1.73 60.20 0.00 0.00 7.22 10.28 2.98
6 Kadapa 0.00 0.00 0.00 18.72 20.38 0.00 37.72 1.32 45.05
7 Karimnagar 68.03 286.63 12.30 72.04 39.61 0.19 19.00 8.91 2.28
8 Khammam 1111.98 120.52 0.84 100.90 15.34 2.43 13.53 2.64 0.84
9 Krishna 25.67 34.33 213.20 37.89 34.20 6.39 26.68 10.22 3.25
10 Kurnool 0.02 0.00 86.23 65.57 39.72 0.00 17.77 1.45 3.47
11 Mahaboobnagar 0.00 43.48 2.50 19.57 19.02 0.00 4.53 2.31 4.14
12 Medak 210.00 202.20 31.50 12.09 20.29 99.01 31.80 12.00 12.10
13 Nalgonda 3802.04 120.66 0.00 100.59 43.89 0.00 13.51 16.75 2.41
14 Nellore 0.00 1.14 0.00 93.76 27.78 0.53 17.19 10.65 0.72
15 Nizamabad 0.00 44.25 0.00 49.50 29.56 26.55 88.50 10.30 19.98
16 Prakasam 0.00 0.00 0.53 136.72 28.60 6.71 32.54 6.42 3.53
17 Ranga Reddy 0.00 253.51 0.87 52.72 24.96 0.00 411.12 20.66 3.95
18 Srikakulam 0.20 48.44 12.34 33.12 23.13 0.00 21.03 6.24 1.02
19 Visakhapatnam 934.80 104.61 48.94 243.45 26.48 0.00 21.04 2.87 8.76
20 Vizianagaram 0.00 0.00 0.00 63.86 19.04 0.00 2.52 7.06 1.10
21 Warangal 3.12 197.52 0.00 11.58 35.87 62.51 17.55 0.95 0.95
22 West Godavari 386.12 246.11 37.14 103.71 33.99 0.00 16.75 42.99 71.60
TOTAL: 16372.01 3778.71 1446.82 3387.56 675.63 323.08 880.88 213.34 212.86
127
STATEMENT No. 3 (a)2
CONSOLIDATED STATEMENT OF GRANTS (Receipts) TO MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No.
Name Of The
District
Minor
irrigation
Natural
clamity
Building
grant
RWS/
ARWS
Election
grant
Assembly
MP,MLA Nabard BRGF
Other
grants Total
1 Adilabad 0.00 0.00 0.00 0.00 0.00 542.03 0.00 436.09 686.14 2030.28
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 789.79 474.53 4920.32
3 Chittoor 0.00 0.00 0.00 0.00 0.00 63.58 0.00 684.16 22.36 6719.36
4 East Godavari 206.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1105.45 5505.02
5 Guntur 0.21 0.00 1.99 0.00 0.00 0.00 0.00 0.00 1325.08 2718.32
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 434.60 244.06 801.85
7 Karimnagar 0.00 0.00 0.00 2.87 0.21 767.44 0.00 425.54 1565.44 3270.49
8 Khammam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 722.40 222.77 2314.19
9 Krishna 0.00 0.00 0.00 19.76 0.00 140.86 0.00 0.00 899.80 1452.25
10 Kurnool 0.98 0.00 0.00 0.00 3.02 0.00 0.00 0.00 95.39 313.62
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 1.10 0.00 585.00 154.71 836.36
12 Medak 0.00 0.00 0.00 0.00 0.00 0.00 0.00 443.10 15.60 1089.69
13 Nalgonda 112.14 0.00 0.00 0.00 0.00 0.00 0.00 460.00 3.99 4675.98
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38.25 190.02
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 328.00 892.88 1489.52
16 Prakasam 0.00 0.00 0.00 0.00 0.00 1.00 0.00 0.00 366.03 582.08
17 Ranga Reddy 0.00 0.00 0.00 1.21 0.30 79.14 0.00 582.25 1575.49 3006.18
18 Srikakulam 0.00 0.00 0.00 0.00 0.00 123.64 0.00 0.00 2821.80 3090.96
19 Visakhapatnam 0.00 1084.23 0.00 0.00 0.00 0.00 0.00 0.00 1325.46 3800.64
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 37.94 0.00 367.76 1500.09 1999.36
21 Warangal 0.00 0.00 0.00 67.71 0.00 488.85 51.31 433.88 809.83 2181.63
22 West Godavari 0.00 0.00 12.50 135.54 0.00 43.30 0.00 0.00 1471.74 2601.49
TOTAL: 319.73 1084.23 14.49 227.09 3.53 2288.88 51.31 6692.57 17616.89 55589.61
128
STATEMENT No. 3(b)1
CONSOLIDATED STATEMENT OF GRANTS(Payments) TO MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No.
Name Of The
District Teaching
Non-
teaching SGRY
Central
Finance
State
Finance
Rural road
maintenance
Honorarium
to Presidents
TA-Dato
non-
officials
TA-DA to
officers&
Staff
1 Adilabad 0.00 39.05 173.38 159.93 27.47 0.00 14.18 9.98 6.69
2 Ananthapur 0.00 580.83 132.07 1471.69 205.77 48.27 34.03 9.88 9.56
3 Chittoor 5027.62 275.47 7.38 42.52 43.28 0.00 22.78 19.09 8.32
4 East Godavari 3618.27 270.63 0.00 26.63 31.21 41.73 17.78 10.77 93.60
5 Guntur 1132.02 169.85 1.59 22.50 0.00 0.00 8.22 32.80 10.48
6 Kadapa 0.00 0.00 0.00 11.97 12.81 0.00 37.48 0.29 24.37
7 Karimnagar 71.07 285.04 15.24 39.81 26.65 0.00 19.47 12.15 3.11
8 Khammam 2278.13 166.76 10.68 90.31 23.76 2.00 36.52 4.03 2.68
9 Krishna 25.67 32.62 243.77 29.37 38.11 10.65 38.56 12.40 9.48
10 Kurnool 0.80 0.00 94.10 47.30 30.10 0.00 32.90 2.20 16.60
11 Mahaboobnagar 0.00 12.63 3.83 22.74 14.24 0.00 8.01 3.08 7.07
12 Medak 210.00 202.20 22.00 14.21 19.50 68.90 45.90 18.80 13.90
13 Nalgonda 4060.29 118.06 470.59 84.51 38.96 0.00 19.83 35.34 10.09
14 Nellore 0.00 1.14 0.00 71.46 30.82 0.00 14.77 23.62 7.04
15 Nizamabad 0.00 45.75 0.00 47.19 27.55 25.70 85.91 10.12 20.28
16 Prakasam 0.00 0.00 0.00 161.11 73.38 26.46 36.63 7.65 16.77
17 Ranga Reddy 0.00 280.28 4.51 33.28 16.44 113.12 801.12 30.06 3.65
18 Srikakulam 0.20 48.44 24.32 20.63 19.01 0.00 42.33 10.72 9.11
19 Visakhapatnam 936.07 113.35 156.68 80.84 11.42 0.00 31.15 13.93 17.27
20 Vizianagaram 0.00 0.00 3.11 72.51 18.50 0.00 2.77 9.95 2.71
21 Warangal 3.12 239.38 0.00 34.19 38.83 33.50 16.56 1.89 2.68
22 West Godavari 304.57 241.07 56.03 87.81 26.88 11.93 20.62 59.18 77.58
TOTAL: 17667.83 3122.55 1419.27 2672.51 774.69 382.26 1387.53 337.93 373.04
129
STATEMENT No. 3 (b) 2
CONSOLIDATED STATEMENT OF GRANTS (Payments) TO MANDAL PARISHADS FOR THE YEAR 2008-09
Rs. In lakhs
# Name Of The
District
Minor
irrigation
Natural
clamity
Building
grant RWS/ARWS
Election
grant
Assembly
MP,MLA NABARD
Back Ward
Regions
Grant
Other
grants Total
1 Adilabad 0.00 0.00 0.00 0.00 0.00 567.10 0.00 376.57 899.78 2274.13
2 Ananthapur 0.97 0.00 0.00 6.33 0.14 0.00 0.00 333.95 496.15 3329.64
3 Chittoor 0.00 0.00 173.66 40.45 0.00 18.50 0.00 554.05 42.90 6276.02
4 East Godavari 224.11 0.00 0.00 5.88 0.00 0.00 0.00 0.00 1241.71 5582.32
5 Guntur 3.12 0.00 2.56 0.00 0.00 0.00 0.00 0.00 1314.10 2697.24
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 414.96 179.01 680.89
7 Karimnagar 0.00 0.00 9.59 79.11 0.27 340.42 0.00 597.18 1513.56 3012.67
8 Khammam 0.00 0.00 0.00 0.00 0.00 20.24 0.00 722.40 298.44 3655.95
9 Krishna 0.00 0.00 0.00 19.76 0.20 234.42 0.00 0.00 846.15 1541.16
10 Kurnool 0.00 0.00 0.00 0.00 5.50 0.00 0.00 0.00 37.80 267.30
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 1.10 0.00 631.85 152.40 856.95
12 Medak 8.28 0.00 0.00 0.00 0.00 0.00 0.00 301.31 15.60 940.60
13 Nalgonda 43.80 0.00 0.00 0.00 0.00 0.00 0.00 446.00 18.05 5345.52
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 47.59 196.44
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 328.00 928.24 1518.74
16 Prakasam 26.21 0.00 0.00 10.69 0.00 0.93 0.00 0.00 16.63 376.46
17 Ranga Reddy 0.00 0.00 0.00 4.97 0.60 51.29 0.00 518.20 1542.29 3399.81
18 Srikakulam 0.00 0.00 0.00 0.00 0.00 112.46 0.00 0.00 3033.91 3321.13
19 Visakhapatnam 0.00 1103.46 0.00 0.00 0.81 0.00 0.00 0.00 1086.61 3551.59
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 37.70 0.00 360.46 1358.43 1866.14
21 Warangal 0.00 0.00 13.46 68.46 0.00 498.32 36.66 328.84 804.86 2120.75
22 West Godavari 0.00 0.00 11.23 137.06 0.00 5.57 0.00 0.00 1311.70 2351.23
TOTAL: 306.49 1103.46 210.50 372.71 7.52 1888.05 36.66 5913.77 17185.90 55162.68
130
STATEMENT No.4
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS IN
MANDAL PARISHADS FOR THE YEAR 2008-09 (DISTRICT WISE
CONSOLIDATED FIGURES)
Rs. In lakhs
Sl. No. NAME OF THE DISTRICT MANDAL PARISHADS
No. AMOUNT
1 Adilabad 664 230.50
2 Ananthapur 1713 193.02
3 Chittoor 445 126.91
4 East Godavari 1345 288.93
5 Guntur 845 269.01
6 Kadapa 1043 179.16
7 Karimnagar 645 134.83
8 Khammam 4114 207.39
9 Krishna 885 253.36
10 Kurnool 853 240.62
11 Mahaboobnagar 735 204.14
12 Medak 510 119.01
13 Nalgonda 462 421.55
14 Nellore 981 123.05
15 Nizamabad 358 1016.85
16 Prakasam 864 124.09
17 Ranga Reddy 455 442.63
18 Srikakulam 1264 104.56
19 Visakhapatnam 729 250.25
20 Vizianagaram 1192 415.51
21 Warangal 915 379.86
22 West Godavari 722 107.02
TOTAL: 21739 5832.26
131
STATEMENT No. 4
STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY
WISE) AND AMOUNT INVOLVED IN MANDAL PARISHADS FOR THE YEAR 2008-09
( CATEGORY WISE CONSOLIDATION)
Rs. In lakhs
Sl.
No. NAME OF THE CATEGORY
MANDAL PARISHADS
No. AMOUNT
1 Variation in Account Figures 227 26.74
2 Excess Utilisation of Grants / Funds 870 240.95
3 Diversion of Grants / Funds 681 229.45
4 Non-utilisation of grants before the lapsable date 696 68.83
5 Mis-utilisation of Grants / Funds 118 37.89
6 Non-utilisation of Earmarked Funds 1470 710.94
7 Non-collection of dues 669 114.57
8 Advances pending adjsutemnt 626 285.95
9 Violation of Rules 3774 485.30
10 Non remittance of deduction recoveries from work
bills / pay bills / contingent bills etc., 2036 1418.13
11 Non Production of Records 3316 1514.01
12 Misappropriations 32 4.49
13 Excess Payments 458 144.29
14 Wasteful Expenditure 69 71.36
15 Instances of cases of unaccounted for cash / stores 14 0.04
16 Pendency of Utilisation Certificates 1464 39.27
17 Surcharge Certificates recovery pending 7 0.35
18 Others 5211 439.16
19 D.D/Cheques received but not realized with in
time 1 0.56
Total: 21739 5832.26
132
STATEMENT 4 (1)
STATEMENT SHOWING DISTRICT WISE AND CATEGORY WISE AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
RS.IN LAKHS
Sl.
No.
NAME OF THE
DISTRICT
VARIATION IN
ACCOUNT FIGURES
EXCESS UTILISATION OF
GRANTS / FUNDS
DIVERSION OF GRANTS /
FUNDS
NON-UTILISATION OF
GRANTS BEFORE THE
LAPSABLE DATE A
MIS - UTILISATION
OF GRANTS / FUNDS
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 2 0.00 71 27.00 22 8.93 21 7.75 11 2.81
2 Ananthapur 10 2.93 119 9.87 50 5.39 11 1.47 0 0.00
3 Chittoor 23 2.97 35 37.32 9 4.03 2 0.80 2 0.80
4 East Godavari 3 0.19 24 6.29 79 28.04 12 0.00 2 0.00
5 Guntur 10 0.00 40 5.09 16 5.24 0 0.00 6 3.58
6 Kadapa 10 0.00 79 2.28 14 0.61 13 0.00 1 0.50
7 Karimnagar 12 0.43 20 9.22 23 5.14 3 0.61 0 0.00
8 Khammam 4 0.12 136 8.41 38 8.20 368 8.64 76 13.45
9 Krishna 1 2.39 16 0.85 19 2.07 15 3.70 0 4.80
10 Kurnool 9 5.05 17 4.89 14 4.79 5 0.00 1 0.16
11 Mahaboobnagar 6 0.02 57 3.68 46 7.95 0 0.00 2 1.55
12 Medak 8 0.00 8 0.95 29 16.01 5 0.00 0 0.00
13 Nalgonda 19 1.27 36 23.57 32 49.80 9 23.19 10 4.55
14 Nellore 11 0.00 43 5.43 65 5.30 13 0.00 0 0.00
15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
16 Prakasam 59 0.00 3 0.00 57 14.33 6 0.00 0 0.00
17 Ranga Reddy 6 1.16 22 39.33 33 7.11 2 0.00 0 0.00
18 Srikakulam 0 0.00 18 7.44 24 8.82 146 10.47 0 0.00
19 Visakhapatnam 6 0.11 57 10.91 37 17.02 0 0.00 3 0.00
20 Vizianagaram 5 0.00 7 1.07 5 0.20 9 2.78 1 1.29
21 Warangal 14 0.84 57 37.36 33 18.53 42 9.42 3 4.41
22 West Godavari 9 9.26 5 0.00 36 11.94 14 0.00 0 0.00
TOTAL: 227 26.74 870 240.95 681 229.45 696 68.83 118 37.89
133
STATEMENT 4 (2)
STATEMENT SHOWING DISTRICT WISE AND CATEGORY WISE AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
RS.IN LAKHS
Sl.
No.
NAME OF THE
DISTRICT
NON-UTILISATION OF
EARMARKED FUNDS
NON-COLLECTION
OF DUES
ADVANCES PENDING
ADJUSTMENT VIOLATION OF RULES
NON RENITTANCE OF
DEDUCTION
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 38 17.28 9 0.76 38 22.23 98 46.50 33 11.55
2 Ananthapur 213 19.20 7 1.71 55 17.09 285 34.04 189 21.00
3 Chittoor 28 18.59 2 0.69 10 7.66 96 27.5 33 9.58
4 East Godavari 79 61.03 11 4.06 89 32.42 298 12.85 94 36.23
5 Guntur 61 3.44 35 0.20 24 27.49 77 8.09 78 38.16
6 Kadapa 103 35.55 1 0.00 6 0.70 208 8.84 96 25.05
7 Karimnagar 56 3.01 5 0.56 16 7.15 128 12.69 127 24.18
8 Khammam 60 10.93 358 52.37 16 3.99 1058 32.22 261 15.04
9 Krishna 100 25.86 4 5.26 2 0.52 286 42.25 156 32.67
10 Kurnool 188 70.74 40 8.35 45 25.90 27 1.45 50 15.38
11 Mahaboobnagar 46 87.17 51 12.72 11 6.85 51 9.62 82 30.54
12 Medak 26 29.26 8 0.19 28 10.96 59 8.10 89 34.10
13 Nalgonda 53 46.49 6 0.30 26 11.94 62 40.41 60 12.61
14 Nellore 58 5.67 35 0.00 36 11.15 135 24.76 96 9.84
15 Nizamabad 0 0.00 2 0.10 3 0.20 1 0.30 40 814.51
16 Prakasam 114 10.27 6 0.00 26 7.89 48 13.82 111 42.69
17 Ranga Reddy 32 179.52 10 4.01 12 7.97 84 12.40 72 105.27
18 Srikakulam 0 0.00 2 11.61 21 11.13 334 23.24 70 13.61
19 Visakhapatnam 46 0.00 32 8.30 34 32.68 129 8.77 50 63.25
20 Vizianagaram 44 0.00 10 3.38 43 12.14 101 4.21 66 33.70
21 Warangal 78 70.53 20 0.00 20 14.83 95 108.32 96 11.71
22 West Godavari 47 16.40 15 0.00 65 13.06 114 4.92 87 17.45
TOTAL: 1470 710.94 669 114.57 626 285.95 3774 485.30 2036 1418.13
134
STATEMENT 4 (3)
STATEMENT SHOWING DISTRICT WISE AND CATEGORY WISE AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
RS.IN LAKHS
Sl.
No.
NAME OF THE
DISTRICT
NON-PRODUCTION
OF RECORDS
MIS
APPROPRIATION
EXCESS
PAYMENTS
WASTEFUL
EXPENDITURE
INSTANCE CASES OF
UNACCOUNTED FOR
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 166 78.24 2 0.30 11 1.31 3 0.10 0 0.00
2 Ananthapur 232 72.30 5 0.70 79 3.09 3 0.25 0 0.00
3 Chittoor 71 13.00 1 0.13 14 1.52 6 0.62 0 0.00
4 East Godavari 230 66.80 0 0.00 21 1.02 20 4.07 0 0.00
5 Guntur 193 164.47 0 0.00 26 1.04 2 0.01 0 0.00
6 Kadapa 237 92.50 0 0.00 10 0.41 3 0.52 1 0.00
7 Karimnagar 97 65.25 1 0.40 5 0.42 8 0.79 2 0.00
8 Khammam 487 33.33 2 0.22 9 0.38 1 0.05 0 0.00
9 Krishna 130 124.47 0 0.00 0 0.00 0 0.00 0 0.00
10 Kurnool 98 38.81 1 0.30 44 1.70 0 0.00 0 0.00
11 Mahaboobnagar 95 26.09 1 0.00 36 2.94 4 0.37 1 0.04
12 Medak 65 16.49 6 0.91 7 0.12 2 1.90 0 0.00
13 Nalgonda 55 31.00 1 0.15 3 115.02 2 59.57 1 0.00
14 Nellore 183 56.22 0 0.00 25 2.23 2 0.03 1 0.00
15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
16 Prakasam 52 28.34 1 0.10 14 0.84 2 0.20 0 0.00
17 Ranga Reddy 40 68.13 6 0.74 31 4.83 2 0.83 0 0.00
18 Srikakulam 355 13.61 2 0.10 12 0.29 0 0.00 0 0.00
19 Visakhapatnam 150 104.87 0 0.00 26 2.07 1 0.95 1 0.00
20 Vizianagaram 137 352.20 2 0.14 34 2.57 6 0.66 7 0.00
21 Warangal 98 38.81 1 0.30 44 1.70 0 0.00 0 0.00
22 West Godavari 145 29.09 0 0.00 7 0.79 2 0.44 0 0.00
TOTAL: 3316 1514.01 32 4.49 458 144.29 69 71.36 14 0.04
135
STATEMENT 4 (4)
STATEMENT SHOWING DISTRICT WISE AND CATEGORY WISE AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
RS.IN LAKHS
Sl.
No.
NAME OF THE
DISTRICT
PENDENCY U.CS S.C. RECOVERY
PENDING OTHERS
DD/CHEQUES RECEIVED
BUT NOT REALISED TOTAL
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 53 0.00 0 0.00 86 5.74 0 0.00 664 230.50
2 Ananthapur 90 0.17 0 0.00 365 3.81 0 0.00 1713 193.02
3 Chittoor 9 0.00 0 0.00 104 1.70 0 0.00 445 126.91
4 East Godavari 42 29.01 1 0.00 340 6.92 0 0.00 1345 288.93
5 Guntur 41 0.00 3 0.00 233 12.22 0 0.00 845 269.01
6 Kadapa 68 0.00 1 0.35 192 11.85 0 0.00 1043 179.16
7 Karimnagar 29 3.17 0 0.00 113 1.81 0 0.00 645 134.83
8 Khammam 34 3.15 0 0.00 1205 16.33 1 0.56 4114 207.39
9 Krishna 19 0.00 0 0.00 137 8.52 0 0.00 885 253.36
10 Kurnool 81 0.59 0 0.00 233 62.51 0 0.00 853 240.62
11 Mahaboobnagar 32 0.00 0 0.00 214 14.60 0 0.00 735 204.14
12 Medak 20 0.00 0 0.00 150 0.02 0 0.00 510 119.01
13 Nalgonda 5 0.00 0 0.00 82 1.68 0 0.00 462 421.55
14 Nellore 61 0.00 0 0.00 217 2.42 0 0.00 981 123.05
15 Nizamabad 0 0.00 0 0.00 312 201.74 0 0.00 358 1016.85
16 Prakasam 48 0.58 2 0.00 315 5.03 0 0.00 864 124.09
17 Ranga Reddy 24 2.01 0 0.00 79 9.32 0 0.00 455 442.63
18 Srikakulam 38 0.00 0 0.00 242 4.24 0 0.00 1264 104.56
19 Visakhapatnam 30 0.00 0 0.00 127 1.32 0 0.00 729 250.25
20 Vizianagaram 623 0.00 0 0.00 92 1.19 0 0.00 1192 415.51
21 Warangal 81 0.59 0 0.00 233 62.51 0 0.00 915 379.86
22 West Godavari 36 0.00 0 0.00 140 3.67 0 0.00 722 107.02
TOTAL 1464 39.27 7 0.35 5211 439.16 1 0.56 21739 5832.26
136
137
ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON
THE ACCOUNTS OF GRAM PANCHAYATS FOR THE YEAR
2008-09
INTRODUCTION
1.1 Under the A.P. State Audit Act, 1989 the Director is made in charge of the
audit of the funds of Gram Panchayat Institutions as specified in the Schedule
prescribed in the said Act.
1.2 The Department has got its offices in all the districts of Andhra Pradesh where
in the District Audit Officer; State Audit is the head at the district level.
1.3 The Department conducts post audit of the Gram Panchayat Institutions and
Audit Reports consisting of defects noticed in audit are issued to the Executive
Officer/Sarpanch of the Gram Panchayat concerned who has to take action for
rectifying the defects pointed out in the Audit Report.
1.4 Under the State Audit Act, 1989, the Director is vested with the power of
disallowing any item of the expenditure incurred contrary to the law and surcharge the
same on the person incurring or authorizing the incurring of such expenditure and
may charge against any person responsible there for, the amount of any deficiency,
loss or unprofitable out lay occasioned by the negligence or misconduct of that person
or of any such sum which ought to have been accounted for but is not brought into
account by that person and shall, in every such case, certify the amount due from
such person.
SCOPE OF AUDIT
2 The State Audit Department has been statutorily entrusted with the authority
to verify the following aspects during the course of post audit of the Gram
Panchayats.
a) Whether the taxes, fees etc., collected by the Gram Panchayats were
properly accounted for with full details in the books of accounts of the
body concerned.
b) Whether adequate care is taken to periodically check up the funds with
Treasury or Bank.
c) Whether expenditure incurred was provided for in the Budget of the
Gram Panchayat Institutions concerned and duly sanctioned by the
competent authority under the Act / Rules or any executive instructions
issued by the Government.
d) Whether funds were utilized only for the permitted purposes prescribed
under the Act / Rules.
e) Whether the procedure prescribed by Government in incurring the
expenditure / payments made is properly followed and accounted for
with due classification in the books of accounts of the Panchayat Raj
body.
138
f) Whether vouchers for the expenditure incurred were maintained.
g) Whether grants received from different sources were properly
accounted for and utilized for the purposes for which they were meant.
STATUS OF AUDIT
3. 1 During the audit year 2008-09, 20311 current years of audit and 361
arrear audits of Gram Panchayats were audited by this department. No. of GPs.,
audited District wise is shown in Statement No. 1
3.2 The pending audit position of Gram Panchayats for the year 2008-09 is also
furnished in the appended Statement 1.
RECEIPTS AND PAYMENTS (2008-09)
4.1 The Receipts and Payments are inclusive of the various grants received from
Central and State Governments during the year 2008-09 by the Gram Panchayats. The
details of gross Receipts including grants and Payments are shown in the Statement
No. 2. The various Grants received by the Gram Panchayats are exclusively detailed
in Statement No.3
4.2 The aggregate Receipts & Payments of the Gram Panchayats in the State
during the year 2008-09 are Rs. 119397.52 lakhs and Rs.94878.02 lakhs
respectively.
A comparative Bar diagram showing consolidated income and expenditure
for the years 2007-08 and 2008-09 are show in the given chart –I.
Chart – 1
(Rs in lakhs)
Bar diagram showing the receipts and
payments of the GPs., during the
years 2007-08&2008-08
receipts ,
75964
receipts ,
119397
payments ,
76056
payments ,
94878
0
20000
40000
6000080000
100000
120000
140000
2007-08 2008-09
4.3 The details of the various source of receipts of the Gram Panchayat is detailed
in the Appended in Statement 2(1) appended to the report and also shown below
through pie chart II.
139
Rs. In Lakhs
Chart –2
pie chart showing the receipts of GP
for the year 2008-09
13927.66, 12%
23177.04, 19%
27500.50, 23%
38597.45, 32%
791.13, 1%
737.03, 1%
11329.50, 9%
3337.21, 3%
TAX RESOURCES
11.66%
NON-TAX
RESOURCES 19.41%
OTHER
RECEIPTS23.03%
GOVERNMENT
GRANTS 32.33%
ADVANCES 0.66%
DEPOSITS 0.62%
BRGF9.49%
SALARY GRANTS
2.80%
4.4. The details of the expenditure made by the Gram Panchayat under various
heads is detailed Appended in Statement No. 2(2) and also shown below through
pie chart III.
S.No. Name of the income source Amount received
1. Tax resources 13927.66
2. Non-tax resources 23177.04
3. Other receipts 27500.50
4. Government grants 38597.45
5. Advances 791.13
6. Deposits 737.03
7. Salary grants 3337.21
8. BRGF 11329.50
Total 119397.52
140
Chart –3
PIE chart of Payments of GP for
2008-09
9004.02, 9%
12284.02, 13%
20439.11, 22%40679.22, 42%
1646.17, 2%
576.63, 1%
9700.93, 10%
547.91, 1%
SALARIES 10%
OTHER
ADMINISTRATIVE
EXPENDITURE 13%MAINTENANCE
EXPENDITURE 22%
WORKS 42%
ADVANCES 2%
DEPOSITS 1%
BRGF 3%
OTHERS1%
4.5 The Department has conducted the audit of the Receipts amounting to Rs.
119397.52 Lakhs and Payments of Rs. 94878.02 Lakhs as shown in the Statement
No. 2 .
4.6 The trend of the receipts and payments for the last 5 years is shown below.
S.
No
.
Year Receipts
in Lakhs
Payments
in Lakhs
Ratio of
receipts
and
payments
Increase
in
receipts
Increase
in
payment
s
% of
change in
Receipts
YtY
% of change
in Payments
YtY
1 2004-05 81597 66349 100:81
2 2005-06 123654 133995 100:108 42057 67646 34.01 50.48
3 2006.07 85242 76727 100:90 -38412 -57268 -45.06 -74.64
4 2007-08 75964 76056 100:100 -9278 -671 -12.21 -0.88
5 2008-09 119397 94878 100:79 -43434 -18822 -36.38 -19.84
Total 485854 448005
S.No. Mode of expenditure Amount involved
1. Salaries 9004.02
2. Other administrative expenditure 12284.02
3. Maintenance expenditure 20439.11
4. Works 40679.22
5. Advances 1646.17
6. Deposits 576.63
7. BRGF 9700.93
8. Others 547.91
Total 94878.02
141
The above table indicates decreasing trend in receipts and also decreasing trend in
expenditure. The economic condition of GPs is deteriorating instead of improving. In
the years 2005-06 & 2007-08 the expenditure is higher than the receipts.
GRANTS POSITION
5.1 Gram Panchayat are provided grants by the State / Central Governments to
implement the schemes entrusted to them and also for over all development of the
area under their jurisdiction. The Gram Panchayats have received the grants as
detailed in the Statement No.3
5.2 The Grant Wise Receipts & Payments of Gram Panchayats in the State
for the year 2008-09 are exhibited in the bar charts, Chart – IV & Chart-V
Chart IV
Amount in lakhs
Bar diagram showing the trend of
Grants and non-grants of GPs., for the
year 2008-09
55170.31
64227.21
45262.249615.82
0
10000
20000
30000
40000
50000
60000
70000
receipts 55170.31 64227.21
payments 45262.2 49615.82
grants non grants
Name of the Statement No. of the Statement
Consolidated Statement of Receipts & Payments District
Wise & Head wise (Grants)
Statement – 3
Consolidated Statement of Receipts Head Wise (Grants) Statement – 3(1)
Consolidated Statement of Payments Head Wise (Grants) Statement – 3(2)
142
Chart -V
AUDIT OBJECTIONS
6.1 During the course of audit Gram Panchayats for the year 2008-09, the defects
noticed were already pointed out in the relevant Audit Reports, as “Audit Objections”
which were forwarded to the Chief Executive Authorities concerned for further action
at their end as per the procedure laid down under the A.P. State Audit Act 1989.
6.2 A total number of 3,01,291 audit objections involving an amount of Rs.
15639.27 lakhs were raised in the audit of the Gram Panchayats during the year
under report.
6.3 A Consolidated Statement showing the number of objections raised, amount
involved with institution-wise break-up is annexed vide Statement No. 4
6.4 CATEGORISATION OF AUDIT OBJECTIONS:
The Audit Objections are classified into 19 Categories as detailed below and
shown in the Appended Statement No. –4
Consolidated statement of audit objections district wise Statement –4
Statement showing category wise consolidated objections Statement – 4 CAT
Variation in Account Figures Statement -4(1)
Excess Utilisation of Grants Statement – 4(1)
Diversion of Grants / Funds Statement – 4(1)
Non-Utilisation of Grants before lapsable date Statement – 4(1)
Mis-Utilisation of Grants / Funds Statement – 4(1)
Non-Utilisation of Earmarked Funds Statement – 4(1)
143
Non-collection of dues Statement – 4(1)
Advances pending adjustment Statement – 4(2)
Violation of Rules Statement – 4(2)
Non-remittance of Deductions / Recoveries from
vouchers / Pay Bills / Contingent Bills
Statement –4(2)
Non-production of Records Statement – 4(2)
Mis-appropriations Statement – 4(2)
Excess payments Statement – 4(2)
Wasteful Expenditure Statement –4(2)
Instances of cases of unaccounted cash / stores Statement – 4(3)
Pendency of Utilisation Certificates Statement – 4(3)
Surcharge Certificates - Recovery pending Statement – 4(3)
Others Statement – 4(3)
DDs / Cheques received but not realised Statement – 4(3)
6.5 The objections raised during the year 2008-09 and amount involved there on
were categorized and their category has been analyzed 37.67%of objections involved
pertains to the others category . The next slot goes to violation of rules and Non-
production of records at 21.10% and 13.33% respectively. The details are shown in
Statement No.4 .
Name of the categeory no of
objections %
Amount
involved %
Others 113400 37.67 990.77 6.34
Violation of Rules 63538 21.10 3190.70 20.40
Non Production of Records 40118 13.33 3501.50 22.39
Non remittance of deduction
recoveries from work bills / pay
bills / contingent bills etc.,
28373 9.42 3002.43 19.20
Non-collection of dues 18962 6.30 1799.89 11.51
Non-utilisation of grants before
the lapsable date 12766 4.24 176.68 1.13
Advances pending adjsutemnt 6484 2.15 1863.55 11.92
Excess Utilisation of Grants /
Funds 5757 1.91 248.77 1.59
Pendency of Utilisation
Certificates 5084 1.69 13.54 0.09
Variation in Account Figures 3549 1.18 132.21 0.85
144
Diversion of Grants / Funds 1031 0.34 283.30 1.81
Surcharge Certificates recovery
pending 686 0.23 153.77 0.98
Excess Payments 565 0.19 90.18 0.58
Misappropriations 288 0.10 78.27 0.50
Wasteful Expenditure 267 0.09 51.87 0.33
Instances of cases of
unaccounted for cash / stores 100 0.03 28.55 0.18
Mis-utilisation of Grants / Funds 91 0.03 33.29 0.21
D.D/Cheques received but not
realized with in time 0 0.00 0.00 0.00
Non-utilisation of Earmarked
Funds 0 0.00 0.00 0.00
Total: 301059 100.00 15639.27 100.00
145
AUDIT – PARAS
Gist of some of the selected audit objections raised during the year 2008-09 under
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 cashbook like opening Balance in the cash book of the current
year not tallying with the Closing Balance of the cash book of previous year. Balance
of the Treasury Pass Book as per cash book not tallying with the actual Closing
Balance in the Treasury Pass Book as on 31st March. Non crediting of Receipts in to
the Treasury Pass Book by the Treasury Authorities. Receipts credited in the
cashbook by remittance through Chalans are not credited in the Treasury pass book by
the Treasury authorities. Debiting the cheques issued by one D.D.O. to another
D.D.O. by Treasury authorities. With out explaining the differences addition or
subtraction is being done in the Reconciliation by the DDO to arrive at the balance
actually available in the S. T. Pass book. Wrong Totaling of Credits and debits either
by D.D.O. or by Treasury. Revision in the Plus or Minus Memo in the S. T. pass book
during the subsequent financial year by the Treasury authorities with retrospective
effect. Consolidated Closing Balance of all cashbooks not tallying with consolidated
closing balance of annual account of the institutions etc.
A Consolidated STATEMENT NO.4 (1) of Variation in account figures is appended
to the Report from which it could be seen that Non-reconciliation of Rs. 132.21 was
pointed out in 3549 audit paras.
This category occupies 9th
place in No of objections raised during the year. The
percentage of amount involved under this category is 1.18%. Some of the instance
cases are shown below for example.
A few of such cases are detailed below.
S.
No.
Name of the GP
and District
Nature of variation Differe
nce Rs.
Para
No
1. Bandapalli, East
Godavari.
Closing balances
As per cash book Rs.60,416
As per passbook Rs.43,014
17,402 13
2. Bhurgampahad,
Khammam
Closing balances
As per cash book Rs.1,01,114
As per passbook Rs.1,03,807
2,693 1
3. Peeramchervu,
Ranga Reddy
Maintained (–) balance due to non-
reconciliation of accounts at the close
of the year.
4,715 1
4. Kamalapuram,
Kadapa
Cash book
CB on 31-3-08 Rs.1,72,416
OB on 1-4-08 Rs.1,04,355
Pass book
CB on 31-3-08 Rs.1,17,064
OB on 1-4-08 Rs. 77,092
68,061
79,972
3
146
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., Stationery, honorarium to
elected representatives etc. It was noticed during the audit that the executive
authorities of PRIs were incurring expenditure in excess of the grant received from
the Government either in anticipation of the release of further grant or withdrawing
the excess amount from the General Funds of the institution.
During the course of audit of Karivetinagaram GP of Chittoor District for the
year 2008-09 it was noticed that a sum of Rs.8617-00 was received towards
Contingent expenditure during the year under report. As against the said grant, a sum
of Rs.61674-00 was drawn and spent towards contingencies. Thus an amount of Rs.
53057-00 was drawn in excess more than the receipt of the grant as noted here under.
Contingencies - 35,841-00
Postage - 1,500-00
Stationery - 3,467-00
Telephone - 5,062-00
Current Charges - 15,804-00
Total Rs: 61,674 -00
This category occupies 8th
position in No of objections and 1.91% in amount
involved. Rupees 248.77 lakhs has been spent in excess in all G.Ps, in 5757 instances
is appended in Statement No.4(1).
3. DIVERSION OF GRANTS
The Gram Panchayats are provided with funds by the State/Central Governments
either by way of grants or a prescribed share in the Cess, Taxes or Fees collected by
the State Government.. GPs, are vested with the power of levying certain taxes and
fees like House Tax, Tax on agricultural land for a specific purpose, Fees for lease of
porambokes or community lands under their control etc. Such taxes/fees constitute
one of the main source of income to them apart from grants-in-aid provided by the
Central/State Governments.
All the monies received by the local bodies form part of their general funds and they
can be utilized for the purposes prescribed under the relevant Act/Rules. However,
specific grants received should be utilized for the purpose for which the grant is
released.
Incurring of expenditure for purposes other than the prescribed ones without specific
sanction of the government is not permissible. In case of specific grants, the grants
should be utilized only for the specific purpose for which the grant is released and no
diversion is permissible without the permission of such grant releasing authority. But
it was noticed in audit that notwithstanding such instructions, diversion of specific
grants and earmarked funds is taking place. It was also observed in audit that
expenditure was incurred under certain grant heads even in the absence of receipt of
147
any grant during the year by diverting other grants. However, such cases were pointed
out under the caption ‘Diversion of Grants”.
Such few cases are shown in the table.
S.No. Name of the Gram
panchayat&District
Details of the Diversion Amount
involved
Rs.
Para
No
1. Kirikera, Anantapur General Funds to TFC works 68,386 3
2. Pentavelli,
Mahaboobnagar
EFC funds to SJRY works 25,000 17
3. Mudivarthi, Nellore SFC funds to ISL
beneficiaries
7,375 35
4 Surareddypalem,
Ongole
SFC fund diverted to TFC
funds
27,916 33
5 Bandarupalli, Nellore TFC funds diverted to SGRY
works
30,000 15
A Consolidated Statement No. 4(1) of Diversion of Funds and Grants /Funds is
appended to the Report from which it could be seen that an amount of Rs. 283.30
lakhs was pointed out in 1031 audit paras.
4. NON-UTILISATION OF GRANTS BEFORE
LAPSABLE DATE
Government release special grants to the PRIs for implementing
specific schemes. These grants are to be utilized for the purposes for which
they are meant for following the guidelines issued / norms prescribed and such
utilization should be within the date prescribed, otherwise, the grants will
lapse to government, unless the lapsable date of any particular grant is
extended by government or grant releasing authority.
Government issued orders in G.O. Ms. No 666 (Accts-I) Department
dated 13-6-1978 extending the period of Utilization of non-salary grants,
particularly Panchayat Raj Grants, up to a maximum period of 18 months
instead of end of the financial year to allow reasonable time to utilize the grant
released. According to the above orders, grants released in the first year of a
financial year can be utilized on or before 30th
September. The local bodies
did not utilize the grants released within the lapsable date and thereby huge
amounts were left unutilized. The grant sanctioning authorities were also not
approached for extending the utilization period. Thus the schemes for which
the grants released were not implemented effectively and totally. The unspent
balances were also not refunded to the grant releasing authorities.
As per the instructions issued in D.O.No.V-24011/34/2001 /NFFWP/
NREGA/ C2/Dt.2-8-07 of the Minister of Rural Development, Government of
India, the unspent balances are to be remitted to the State funds before the
lapsable time. During the course of audit it was noticed that in many of the
148
Gram Panchayats the unspent balances were kept aside neither utilizing them
in time nor remitting the same to the concerned funds.
For example in Tekkali Gram Panchayat of Srikakulam District a sum
of Rs. 5,43,739/- under SGRY Scheme was kept unspent without transferring
to NREGS funds. The same observation was made in JRY Funds of
Ramalingapuram GP of Prakasam District during the year 2008-09.
The category occupies 18th
place in Number of objections and 0.03% in
amount involved.
A Consolidated Statement No.4(1)of Non-utilization of Funds before
Lapsable Date is appended to the Report from which it could be seen that an
amount of Rs. 176.68 lakhs was pointed out in 12766 audit paras.
5. MIS-UTILIZATION OF GRANTS/FUNDS
Grants meant for specific purposes or earmarked funds shall not be
utilized for any other purpose. Any contingent expenses connected with
utilization of grant, shall be met from the provision of General Fund to the
extent permitted. In stead, the authorities have used specific grants and
earmarked funds for contingent expenditure. This is misapplication of funds
and is not a prudent accounting practice.
During the course of audit, several instances have come to the
notice of audit that some Panchayat Raj bodies incurred expenditure in excess
of the Grant-in-Aid received and over and above the budgetary provision. The
fact of incurring such excess expenditure further implies that such expenditure
was met from the unspent balances of some other grants. Necessary steps are
called for to curb this sort of financial indiscipline at the earliest so as to
ensure proper utilization of these grants for which they have been released for.
The excess expenditure incurred, wherever possible, should be got reimbursed
from the grant sanctioning authorities duly explaining the circumstances under
which excess expenditure over and above the grant sanctioned became
inevitable. Early action may be taken to make good the mis-utilized funds
from the person or persons responsible by initiating appropriate action.
As instructed in G.O.Rt.No.279 Fin. Dept., dated 30-01-2006 &
G.O.Ms.No.33 PR&RD, dated 3-2-2006, the 12th
Finance Funds has to be
utilized only for water Supply and Sanitation works only. Violating the above
instructions in Nagaram Gram Panchayat of Khamma District a sum of
Rs.21,000/- was spent towards constructions of culvert. Due to which the very
purpose of the funds released was defeated.
A Consolidated Statement No. 4 (1) of Mis-utilisation of Grants/
Funds is appended to the Report from which it could be seen that an amount
of Rs. 33.29 lakhs was pointed out in 91 audit paras.
149
6. NON-UTILISATION OF EARMARKED FUNDS
Not Relevant
7. NON-COLLECTION OF DUES
On verification of Revenue Collections in the Gram Panchayats it was
observed that huge amounts were left pending realization for longer periods and
allowed to become barred by limitation of time in certain cases. No appropriate action
seems to have been initiated by the Executive Authorities for realization of taxes and
fee etc. due before they became barred by limitation of time in spite of various
statutory provisions existing for their recovery such as through distraint, prosecution
or filing of suits. Dependence on Government grants gets lowered if timely and
appropriate action is taken by the executive authorities for collection of these
outstanding dues which ultimately increases their self sustainability. Infact some of
these dues cannot be recovered legally now and constitute a permanent loss to the
institutions which needs to be curbed.
case study of the amounts outstanding / time barred dues and dues, which are likely
to become time barred during the year 2008-09 in Gram Panchayats is given below.
Such few examples are shown in the given table
Sl.
No
Name of the Gram
Panchayat and
District
Nature of dues Amount
inRs.
Para
No.
1 Hiramandalam.
Srikakulam
House-tax not collected from the
Govt. Buildings
73960 2
2 Kilagada,
Visakhapatnam
Non-collection of House-tax 9297 4
3 Tekkali, Srikakulam Non-collection of House-tax for the
years from 05-06 to 07-08
119930 4
4. Abbedoddi,
Anantapur
Non- collection of House tax for the
year 2005-06
4469 1
5 Pileru, Chittoor Non- collection of House tax for the
year 2005-06
13188 2
6 Pullampeta, Kadapa Non- collection of House tax for the
year 2006-07&2007-08
120480 14
7 Dondapadu,Krishna Non- collection of House tax for the
year 2005-
122158 2
8 Nandigama, Krishna Non- collection of House tax and
Tap-Fee for the year 2005-06
657819 1
Total 1121301
If the Executive Authorities of Gram Panchayat has taken appropriate legal
action for collection of the above dues by following the rules framed in the act, the
loss would not have arise.
150
A Consolidated Statement No. 4(1) showing audit objections on Non-
collection of dues is appended to the Report from which it could be seen that an
amount of Rs. 1799.89 lakhs was pointed out in 18962 audit paras.
7.1 Non Levy of Advertisement Tax in Gram Panchayat Areas.
Sec.63 of AP PR Act,1994 envisages that every GP shall levy Advertisement
Tax on the exhibits in the area of GP after taking the required sanction from the ZP
concerned. Thus Advertisement Tax has been treated as a mandatory tax by the Act.
But the said tax is not levied and collected in any of the Gram Panchayat right from
1994 till date. No correspondence was made by the Gram Panchayats with ZP
concerned to levy Advertisement Tax in the State. This revenue source has potential
to yield Rs. 35.00 Crores a year. The HOD i.e CPR & RD may take steps to tap this
revenue source.
8. ADVNACES PENDING ADJUSTMENT
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 are raised on such outstanding
advances in the relevant ARs pointing out failure of the executive authorities to take
necessary action to get these advances adjusted.
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.
Few such examples are given below.
In Kumbidisingi GP., Visakhapatnam District a sum of Rs.1,04,000/- was
paid towards execution of works under SGRY Scheme. In Vanugupalli GP of
Visakhapatnam District a sum of Rs.1,02,000/- was drawn towards execution of
works under TFC funds, the same were not adjusted till the close of audit. In Panduru
GP of Srikakulam District, it was observed that a sum of Rs.12,156/- is pending
adjustment towards personal advance since long back. The DDOs., are responsible to
watch the recovery of the same within the time prescribed.
A Consolidated Statement No.4(2) showing audit objections on Advances
Pending is appended to the Report from which it could be seen that an amount of Rs.
1863.55 lakhs was pointed out in 6484 audit paras.
9.VIOLATION OF RULES
It was noticed in audit that in some cases the Rules / Government instructions
for incurring the expenditure from the funds of the Panchayat Raj bodies were
violated either due to negligence or ignorance. In certain cases, the funds of the Gram
panchayats were utilized for purposes other than the permitted ones under the Act /
Rules. It was also noticed that in a few cases.Government instructions were
151
misunderstood or misinterpreted. Such irregular expenditure incurred was objected in
the relevant ARs
A Consolidated Statement No. 4(2) showing audit objections on Violation of Rules
is appended to the Report from which it could be seen that an amount of Rs. 3190.70
lakhs was pointed out in 63538 audit paras
The defects relating to violation of Rules were pointed in the relevant ARs. A few
such cases are shown below.
a).The Government have issued instructions to all local bodies to submit the
Annual Accounts for the year 2008-09 in New proforma prescribed and
communicated vide G.O.Ms.No.172 dated, 16-5-05. But, during the course of annual
audit of Gram panchayats for the year 2008-09 it was noticed that action was not
taken to prepare and furnish the annual account as stated in the above Government
Orders.
b). As prescribed in Govt. Memo No. 40183/Pts.4/2002-03 PR&RD
Department, dated 31-7-03, the amount spent on purchase of electrical goods should
not exceed 15% of total income of the Gram Panchayat in that particular year. But
during the course of audit of Gram Panchayats for the year 2008-09 it was noticed
that in the following instances the amount spent on Electrical goods during the year
has exceed the limit prescribed in the rules. Hence, the amount spent more than the
ceiling is held under objection.
Sl.
No.
Name of the
Gram
Panchayat
and District
Amount spent
on purchase of
Electrical
goods.
Rs.
Amount
admissible
as per
rules
Rs.
Excess
amount
spent
Rs.
Para
No.
1. Vanjari,
Visakhapatnam
44500 5915 38585 11
2 Chennampalli,
Anatapur
31165 13166 17999 7
3 Govindapalli,
Anantapur
54036 9088 44948 7
4 Pullampeta,
kadapa
109748 30000 79748 8
c).In Dundigal Gram Panchayat of Ranga Reddy District during the year
under report, an amount of Rs. 9,57,731-00 was drawn and paid towards
wages of contingent staff engaged for purpose of water supply, street lighting,
sanitation etc., as shown below. However, the continuation orders of the Dist
Collector under section 36(1) of APPR Act 1994 was not obtained and
produced to audit. In the absence of the same, the expenditure thus incurred
cannot be admitted in audit and held under objection.
152
Sl.no.
Category No. of employees
1. Watermen 8
2. Electricians 2
3. Plumber 1
4. Kamatis 12
5. Sweepers 15
6 Bill collectors 2
Total 40
d). In Narepalli Gram Panchayat of Ranga Reddy District it was noticed that, a
sum of Rs.47,316/- was drawn and paid towards motor rewinding charges for the
period from 4/2008 to 12/2008. But, the expenditure was not certified by the AE RWS
as per rules. Due to which the correctness of the requirement could not be certified. It
is further noticed that the removed copper wire cost was also not deducted from the
payment.
e). Expenditure incurred on advertisement charges – Irregular- Needs recovery.
As per G.O.Ms..No.60497/Progs IV/A1/95, PR&RD, Department dated 14-8-
96, government has imposed ban on the expenditure on advertisement charges. But,
the competent authority has incurred huge amounts for advertisement on
developmental activities of the Gram panchayat during the year 2008-09. Some of
such cases are narrated in the given table as an example.
S.No. Nme of the GP District Amount spent on
advertisement charges
Para
No.
1. Palakonda, Srikakulam 46866 80
2. Parimpudi, West Godavari 30532 10
3 Samandepalli, Anantapur 24018 11
4 Pakala, Chittoor 12000 6
5 Kanigiri, Ongole 52044 33
6 Inturu, Guntur 16632 10
7 Kosigi, Mhaboobnagar 99644 38
8 Kompalli, Ranga Reddy 141094 15
Total 422830
153
10. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES
FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS
It was noticed during audit that various deductions / recoveries effected from the work
bills / pay bills were either not remitted to Government or a part of them only were
remitted in spite of statutory obligation to remit the same to Government account with
in a prescribed time under the relevant statutory provisions which also include penalty
as well as prosecution for non adherence.
The deductions normally made from work bills / pay bills that are to be
remitted to Government account are
Work Bills
1. Seigniorage Charges
Others
1. Library cess
2. User charges
A Consolidated Statement No. 4(2) showing audit objections on Non –
remittance of Deductions/Recoveries from vouchers /Pay Bills/Contingent Bills is
appended to the Report from which it could be seen that an amount of Rs. 3002.43
lakhs was pointed out in 28373 audit paras
a). As per G.O.MS.No.331, Industries and Commerce (M.I) Department,
Dated 21-06-2000 Seigniorage charges or dead rent which ever is higher shall be
recovered from the work bills on all Minor Minerals dispatched or consumed from the
land at the rates specified in Schedule-I and Schedule-II annexed to the said G.O as
the case may be and to be credited to the consolidated fund of State Government
through the concerned Assistant Director of Mines & Geology of the District.
However, it was observed that though the amounts are recovered from the work bills
towards Seigniorage Charges, but not remitted to head of account concerned.
For example a sum of Rs. 1,22,337/- in Isnapur GP of Medak District,
Rs.2,26,089/- in Nandigama GP of Krishna District, Rs.13,962/- in Dasari GP of
Prakasam District and Rs. 9,992/- in LB Patnam GP of Visakhapatnam District was
recovered towards seigniorage charges and not remitted till the close of audit.
b). Under Section 20 of the A.P Libraries Act 1960 levy of Library Cess by the GPs,
Municipalities is obligatory and to be collected as part of House Tax / Property Tax
at the rate of 8 paise per every rupee. This should be collected along with the House
Tax and remitted to the Treasury to the credit of the Z.G.S at the end of every month.
During the year under audit, it was observed that though amounts towards Library
Cess were collected along with House Tax / Property Tax the same were not remitted
to Z.G.S funds till the close of audit. Such inaction was pointed out in the relevant
ARs.
In the following G.Ps., the library cess collected but not remitted to the
ZGS.
154
S.No. Name of the Gram
panchayat and District Amount
Collected
Amount
Remitted
Balance
to be
Remitted
Para
No.
1 Vattinagulapally, Ranga
Reddy
14762 Nil 14762 4(a)
2 Dundigal, Ranga reddy 96033 Nil 96033 13
3 T.Sundupalli, Kadapa 32159 Nil 32159 14
4 Gudipadu, Kadapa 1466 Nil 1466 9
5 Dondapadu, Krishna 12494 Nil 12494 5
156914
c). In GOMs.No. 97 PR &RD, Dept, dated: 14-3-2002, Government have issued
rules relating to Levy of special tax / user charges according to which GP may levy
user charges annually for providing street lighting and drinking water supply. The
charges shall be worked out in the manner that cost of the operation and maintenance
of the above said amenities be distributed among all the house holds which are
utilizing the services. Further while issuing guidelines on utilization of the funds
under 12th
finance commission in the G.O.Ms.No. 33 PR & RD[ PTS.III] dated:
3.02.2006 laid condition that the PR IS should set a Mechanism for recover of at
lease 50% of the recurring costs on O & M of water supply in the term of user
charges.
In Vedurthy GP of Medak District, it was noticed that the GP has incurred the
expenditure for providing the amenities. But user charges in aforesaid manner have
not been levied and collected resulting a short fall of income to an extent of Rs.
67,321/-
Recurring expenditure of water supply maintenance = Rs. 1,10,892/-
Deduct collection made in the form of water charges = Rs. 43,571/-
Short fall = Rs. 67,321/-
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 base needs to be enhanced every year. With the rise in demand for
services, the functionaries need to have effective financial management skills and
accountability practices.
All these functions would be reflected on the record when they were
accounted for as per the provisions contained in AP Account code, which comprises
the comptroller and Auditor General (C&AG) rules together with the local rulings
relating to Local variation in accounts procedure. These initial accounts are to be kept
ready and should have to be produced to Audit for verification. Then only the
transparency in incurring of public money and their utility to the General Public can
be reasonably judged.
155
Such an important function on the part of the Drawing and disbursing officers of all
the Local Bodies and Urban Bodies in the maintenance and production of records to
audit are not properly being maintained. Thereby the main access to clear the doubt of
transparency in public expenditure have not been availed. In spite of all these
guidelines and instructions the DDOs of all local and urban bodies have failed to
maintain the records and to produce the same to Audit when ever the local teams
visited their institutions. Under the category of non – production of records to Audit,
the major part is in works and the related records such as M.book, estimate file,
tenders etc. The others are non production of vouchers along with the related files and
registers. The paras on non production of records have been drawn from the
individual A.Rs of the concerned institution and their details are furnished here
under. Further it is surprise to note that the heads of the institutions could not explain
why the records could not be maintained in the office and can be produced when ever
they are being demanded by the audit parties and other agencies during their local
visits.
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
A.Rs of the concerned institutions. Records like M. Books, connected files, vouchers
in which crores of rupees transacted in many institutions form major chunk of audit
objections under the category of non production of records. Transactions relating to
purchase of various contingent articles, goods etc., were not accounted for in stock
registers and produced to audit. Remittances made to different departments etc for
which neither the acknowledgements nor any evidence produced in audit also form
part under this category. Though several half margin letters issued for production of
the required record, the executive authorities did not comply with which resulted in
inaccessibility to the records and raising of paras to that extent.
This nature of objections stood in 2nd
position in No of objections and occupies
15.59% in amount involved.
A Consolidated Statement No.4(2) of showing audit objections on Non-
production of Records is appended to the Report from which it could be seen that an
amount of Rs. 3501.50 was pointed out in 40118 audit paras
A few of the paras raised in ARs for the year 2008-09 are categorized
accordingly and tabulated as shown below.
11.1. EXECUTION OF WORKS – CONNECTED ESTIMATES,
MEASUREMENT BOOKS ETC.,- NOT PRODUCED- EXPENDITURE HELD
UNDER OBJECION.
Various works were executed by the Gram Panchayat under various schemes
during the year 2008-09 but the connected estimates, measurement books, agreement
files etc., were not produced to audit for verification. As the correctness of the same
could not be verified due to non-production of the connected records the amount is
held under objection. The Executive Authorities concerned would need to take
immediate action to produce connected records to audit for verification immediately.
156
,
Sl.
No
Name of the GPs
& Dist.,
Particulars of records not
produced
Amount
involved
Rs.
Para
No.
1 Kalvakurthy,
Mahaboobnagar
Estimates, Agreements, M.Books 396571 59
2 Govindampalli,
Anantapur
Estimates, Agreements, M.Books 171000 11
3 Pullapeta, Kadapa Estimates, Agreements, M.Books 179620 13
4 Hiramandalam,
Srikakulam
Estimates, Agreements, M.Books 238666 50
5 Jammikunta,
Karimnagar
Estimates, Agreements, M.Books 483208 10
6 Govindapalli,
Anantapur
Estimates, Agreements, M.Books 186800 11&12
7 Dudigal, Ranga
Reddy
Estimates, Agreements, M.Books 773174 17
8 Nandigama,
Krishna
Non-production of Vouchers and
Stock-registers
290284 2 of
TFC
Funds.
11.2 Non-maintenance and non-production of records for audit for verification. As mentioned in section 268 of APPR ACT 1994, and as per G.O.Ms.No.
119 PR & RD dept., dt: 18-5-2007, the following registers have to be maintained and
produced for audit for verification. During the course of annual audit on the accounts
of the Gram Panchayats for the year 2008-09 it was noticed that the following
Registers were not maintained and produced for audit for verification in Bollaram GP
of Ranga Reddy District.
1. Cash Book
2. Register of Money value forms. 3. House tax demand register. 4. Water tap connections demand register. 5. Auction Register. 6. Register of dues. 7. Receipt books of Bill collections and outstanding biil register. 8. Buillding applications register. 9. Layout fee register. 10. Meeting minutes register. 11. Licence fee demand Register. 12. Kolagharam and fish auction register. 13. Regiaster of Library Cess remittance Register. 14. Register of Advnaces and Deposits.
157
15. Register of Suits. 16. Register of Grants
17. Stock Register 19. Miscllaneous Demand Register. 20. T&P Register 21. Register of Income sources. 22. Porumbok Register.
23. Register of usfructs.
12. MIS-APPROPRIATIONS :
Cases of misappropriation of money noticed in audit were
pointed out in the A.Rs concerned.
A consolidated statement of audit objections on misappropriations
noticed in audit is annexed vide statement No. 4(2) . A total number of 288
cases involving an amount of Rs. 78.27 lakhs were pointed out in the relevant
ARs.
To illustrate the various types of modus operandi, a few of the cases
pointed out are reproduced below.
12.1 GPs - COLLECTION OF TAXES - AMOUNT NOT FULLY
REMITTED -MISAPPROPRIATED – Rs. 1,28,748/-
On verification of Cash-Book of Ravikamatam GP, Visakhapatnam District
for the year 2008-09, it was noticed that a sum of Rs.1,28,748/- was kept as
cash on hand without remitting the same to the account of the Gram Panchayat
till the close of audit as detailed below which can be treated as
Misappropriated.
OB in Treasury pass-book as on 1-4-08 Rs.1,14,414-95
Amount collected from 1-4-08 to 31-3-09 Rs.2,19,065-50
Total balance has to be shown in Treasury pass-book Rs.3,33,480-45
Actual balance as per Treasury pass book as on 1-4-09 Rs.1,70,352-00
Amount remitted as on 21-4-09 Rs. 34,380-00
Amount to be remitted in to the Treasury Rs.1,28,748-45
12.2 . In Dondapadu Gram Panchayat of Gudivada mandal Krishna
District, it was noticed that a sum of Rs.14,000/- was drawn through Cheque
No. 936108 . but, the same was not recorded in the cashbook and the no
evident record of incurring any expenditure was produced for audit for
verification. It is construed that the above amount was misappropriated by the
cheque drawl authority.
158
12.3 . In Turimellam GP of Prakasam District it was noticed that a sum of
Rs.38.011/- was misappropriated as detailed below from the house tax collected.
House Tax collected during the year Rs.2,63,326.72
Amount remitted to the concerned account Rs.2,25,315.72
Short remitted Rs. 38,011-00
12.4. In Kanakamamidi GP of Ranga Reddy District, it was observed that a sum of
Rs.18,260/- was collected towards taxes and fees etc. But , as verified from the
concerned Treasury pass book it was noticed that the same was not remitted.
12.5 In Chitkulu Gram Panchayat of Medak District it was noticed that a sum of
Rs.24,182/- was misappropriated showing wrong challan No. in which a sum of
Rs.24,182/- was remitted by then PS during the month of 6/2008. The details of the
collections remittance and misappropriation made as detailed below.
House tax collected Rs.1,41.034/
House tax remitted Rs. 91,305/-
Balance to be remitted Rs. 49,729/-
Cash on hand Rs. 25,547/-
Shown as remittance in challan No.9930/2-1-09 Rs. 24,182/-
( the said amount was remitted by the then Panchayat Secretary during the month of
6/2008 in the same challan No.)
12.6 BALANCE AT THE END OF 10.12.08 NOT BROUGHT FORWARD AND NOT
ADOPTED AS OPENING BALANCE FOR NEXT MONTH - LOSS -NEEDS
RECOVERY -Rs. 20,196/-
Prior to assumption of the charge of the post of Panchayat Secretary, Kallakal
on 24.12.08 by Sri M. Mohan Reddy, the post held by Sri B.Vijayudu now working as
PS GP Makthal, Makthal Mandal, Mahabubnagar District. The Cash balance of Rs.
20,196/- was available in the cash book prior to 24.12.08. On the plea that Sri B.
Vijayudu did not hand over the cash, the cash balance was not adopted as opening
balance by Sri M. Mohan Reddy for further period. As such, the amount of Rs.
20196/- remains unremitted to GP fund and it is not shown in the Cash book which
tantamount to misappropriation and loss to the institution.
Para 9 of kallakal Gram panchayat of Medak District.
12.7 During the course of audit of Bollaram G.P., Medak District for the year 2008-
09 it was noticed that a sum of Rs.10,63,270/- was remitted to the treasury through
challans by the industries located in the Panchayat area towards property tax .
Although the said amount was paid directly by the industries the Executive Officer
Sri G. Muralidhar has recorded in the cash book and irsalnama register as the said
amount was collected from the owners of the village. And the acknowledgement
towards the said payment has not given to the industries owners. Thus a sum of
Rs.10,63,270/- was misappropriated.
(Para No. 10 of Bollaram GP of Medak District)
159
12.8 In Kandulapadu Gram Panchayat of B.Konduru Mandal, Krishna District it was
noticed that a sum of Rs.68,019/- was misappropriated as detailed below.
As verified from the balances bills to be collected, the bills for Rs.18,799/- towards
house tax and for Rs.49,040/- towards water user charges to audit. Therefore it is
construed that the said amount of Rs.68,109/- was collected but not remitted , hence
misappropriated.
12.9 COLLECTION OF TAXES NOT REMITTED TO THE GP FUNDS-
AMOUNT HELD UNDER OBJECTION RS.5,27,282-00
On verification of receipt books, Irsalnama registers and cash book, it is
noticed that an amount of Rs.5,27,282-00 as detailed below was collected towards
various taxes by Sri.Khaza Mahamood Ali, Ex- Executive Officer, GP
Ibrahimpatanam. In the absence of remittance particulars the same could not be
verified by audit as to whether the amount collected was remitted to GP funds. Hence
an amount of Rs.5,27,282-00 is held under objection and needs investigation to
prevent loss to GP funds.
S.
No
.
Name of the
employee
Total amt.
collected
Book
No.
Rc. No. Total amt.
remitted
1
Sri.Khaza Mohamood
Ali, Ex-Executive
Officer, GP
Ibrahimpatnam
51,945-00
13
1201 to 1300 NIL
2 -do- 1,77,646-00 14 1301 to 1400 NIL
3 -do- 91,646-00 16 1501 to 1600 NIL
4 -do- 29,555-00 18 1701 to 1738 NIL
5 -do- 37,930-00 18 1739 to 1755 NIL
6 -do- 1,38,561-00 10 901 to 1000 NIL
Total 5,27,282-00
(Para No.10 of Ibrahimpatnam GP of Ranga Reddy District for the year 2008-09)
12.10 In Kallata GP of Srikakulam District a sum of Rs.43,000/- was misappropriated
during the
year 2008-09 as detailed below.
S.No. Amount drawn as
per counter foil Rs.
Amount drawn as
per Treasury Pass
Book
Rs.
Excess drawl
Rs.
Para No of
the AR
1. 3000 30000 27000 Para 4 of the
TFC Funds
2. 5000 21000 16000 Para 11 of
the General
Funds.
Total 8000 51000 43000
160
12.11 Payment of Bonus of one month salary to the staff of the GP – Irregular –
Needs recovery Rs.31,240/-
During the verification of the pay bills of the staff of the Vittanagulapally Gram
Panchayat, Ranga Reddy District for the year 2008-09 it was noticed that a sum of
Rs.31,240/- was drawn and paid to the staff as bonus through Voucher No.121/18-8-
2008. Bonus is not an admissible item of expenditure. Thus, the payment was treated
as excess payment and the same would need to be recovered immediately.
(Para No. 8(a) of the AR of Vittanagulapally GP., Ranga Reddy District for 08-09.
13. EXCESS PAYMENTS
It was observed in audit that in several cases excess payments were made due
to either.
(e) Incorrect calculations or
(f) Excess totaling in Bills or
(g) Admission of inadmissible claims or
(h) Lack of knowledge of Government instructions.
A Consolidated Statement No. 4 (2) of showing audit objections on Non-
production of Records is appended to the Report from which it could be seen that an
amount of Rs.90.18 lakhs was pointed out in 565 audit paras
Afew such instance cases are given below for example.
13.1. During the course of audit of Gram panchayats in Visakhapatnam district it
was noticed that the following excess payments were made in execution of various
works.
S.
No.
Name of the
GP
Details of the
work executed
Description of the payment made Excess
paid (Rs.)
1. Sanivaram
para 7 of the
AR
Formation of
road from PR
Road to Kotla
guruvu
Estimation value Rs.1,60,000
Value of work done Rs.1,55,606
Less SC Rs. 9,911
Net value of work Rs 1,45,695
Advance on 24-3-08 Rs.1,75,000
Excess paid Rs. 29,305
29305
2 Thumangula ,
para 8 0f the
AR
Constructionof
open well at
Borangangula
Estimation value Rs.1,30,000
Value of work done Rs.1,02,030
Less SC Rs. 3,120
Net value of work Rs 98,910
Total paid as per CB Rs.1,15,500
Excess paid Rs. 16,590
16590
3 Construction of
Rachabanda at
Gasaigonda
Estimation value Rs. 25,000
Value of work done Rs. 22,013
Less SC Rs. 541
Net value of work Rs 21,472
Total paid as per CB Rs. 29,464
Excess paid Rs. 7,992
7992
Total excess paid 53887
161
13.2. During the course of audit of Isnapur Gram panchayat of Medak District it was
noticed that a sum of Rs. 9,558/- was excess paid in execution of work of Extension
of pipe line from Hnaumandas House to Ualla Balaiah House. Amount paid to Sri.
Purushottam Reddy , Contractor vide cheque Nop.672165 dated 15-09-2008 through
Voucher No.81/15-09-2008.
M.Book No. 2192/AM/PR/07.
Total value of work done Rs.93,917/-
Deduct VAT&IT Rs. 4,779/-
Net to be paid Rs.89,138/-
Actually paid Rs.98,696/-
Excess paid Rs. 9,558/-
The excess payment was done due to adding the VAT&IT instead of deducting
the amount vide M-Book No. 130/AH/05-06
13.3 During the course of audit of Dundigal GP of Ranga Reddy District it was
noticed that an excess amount of Rs.19,696/- was drawn and paid to P. Ramaraju
Contractor, in Construction of School Building due to allowing of excess rate than
the approved as follows.
S.No. Nature of
work
done
Approved
Rate
Rs.
Allowed
Rate
Rs
Excess
allowed
Rs.
Quantity of
work
Total
excess paid
Rs.
1. Supply and
filling of
sand
306.50 1127.50 821.00 23.99Cum 23.99x821=
19,696/-
The above amount was paid through Cheque No.820269&820275, dated 12-8-2008.
14. WASTEFUL EXPENDITURE
The canon of financial propriety envisage in Andhra Pradesh financial code
are sacrosanct for all Government Authorities entrusted with authorizing or incurring
of expenditure from public funds. They are expected under Articles 3 to exercise the
same diligence and care in expending public money under their control as persons of
ordinary prudence would exercise in respect of their own money. Government have
issued instructions through various orders and also incorporated in the statutes of local
bodies the various items on which public money can be expended and the principles
to be adhered to while expending on such items. Yet, it was noticed in audit that the
funds of Panchayat Raj bodies were several times incurred without adhering to the
laid down principle leading to wasteful expenditure of public money. All the cases of
such wasteful expenditure observed in the audit of the Gram Panchayats for the year
2008-09 were expenditures that were avoidable, extraordinary and lacked proper
planning.
Consolidated Statement of Wasteful Expenditure incurred is annexed in
Statement No.4(2) to the Report showing 267paras involving an amount of
Rs.51.87lakhs. Such few cases are mentioned below
162
14.2 PURCHASE OF MATERIAL EXCESS THAN THE REQUIREMENT –
KEPT UN-USED WASTEFUL EXPENDITURE – NEEDS RECOVERY.
During the course of Annual Audit of the accounts of Gram Panchayats for the
year 2008-09, it was noticed that in some of the Gram panchayats material was
purchased more than the requirement in some of the Gram Panchayats material
purchased and kept in stores without utilization. The purchases are made without
requirement hence the expenditure incurred is wasteful
A few such cases are shown in the table.
S.No. Name of the GP
and District
Nature of
waste
No. of
pipes
purchased
No of
pipes
required
No.
of
pipes
kept
un-
used
Amount
involved
Para
No.
1. Vattinagulapally,
Ranga Reddy
Purchase of
pipes for
Manjeera
pipeline
works more
than the
requirement
200 163 37 1,34,798 8(b)
2. Kosigi,
Mahaboobnagar
Purchase of
submersible
pump sets
and spares
Material purchased and kept
un-used in the store.
1,38,346 42
3 Kodangal
Mahaboobnagar
Purchase of
submersible
pump sets
and spares
Material purchased and kept
un-used in the store.
3,65,679 28
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. The cash on hand unless it is accounted for resulting loss to the GP
concerned. The amount would need to be made good.
Consolidated Statement of Instances of cases unaccounted for is
annexed in Statement No. 4(3) to the Report showing 100 paras involving an amount
of Rs.28.55 lakhs.
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
163
duly certified by the District Audit Officer, State Audit Department. But heavy No.
of Utilization Certificates were not furnished to audit for certification and
transmission to the grant releasing authorities concerned.
In G.O.Ms.No. 507 Fin (TFR) Deptt., dt. 10-4-2002, the Government have
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 Gram
Panchayats shown in the statement appended herewith.
A Consolidated Statement No.4(3) showing audit objections on Pendency
of Utilisation Certificates is appended to the Report from which it could be seen
that an amount of Rs.13.54 Lakhs was pointed out in 5084 audit paras.
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 such 686 cases involving an amount of Rs. 153.77 lakhs is
appended as Statement No. 4(3) to this report.
164
Some of the instance cases are incorporated in the given table.
S.No. Name of the GP/District S.C.No./date Details of the
Surchargee
Amount
involved.
1 Uppalapadu
GP,Prakasam
13/1-9-08 Jakkula
Chiasubbaraidu Ex-
Sarpanch for 2002-03
31173
2 Ramayapalem, Prakasam 22/1-9-08 L.Subbu Reddy, Ex-
Sarpanch for 2002-
03
19857
3 Vempara, Prakasam 38/8-9-08 Madala
Ananthalakshmi Ex-
Sarpanch
39500
4 Laveru, Srikakulam 441/28-2-09 P.Sriramulunaidu,Ex-
Sarpanch
31215
5 Vanagavasala,
Srikakulam
432/29-11-
08
PVA Naidu,
Sarpanch
28700
6. 433/29-11-
08
R.Chinnarao Ex-
Sarpanch
38800
7 Penta, Srikakulam 184/27-10-
09
Dhanalakshmi 25087
8 183/27-10-
09
18700
9 Kapparam , Srikakulam 376/28-2-09 Y.Pedddiraju, Ex-
Sarpanch
12000
10 147/30-9-09 35400
11 148/30-9-09 3700
12 Peddapeta,Srikakulam 337/8-11-08 K.Vedavathi,
Sarpanch
55000
13 Cheedivalasa,
Srikakulam
346/31-1-09 B.Rama Devi
Sarpanch
24500
14 SSValasa, Srikakulam 229/30-12-
08
Neelaveni, Sarpanch 26106
15 230/30-12-
08
33896
16 Peddaram,Srikakulam 361/29-11-
08
S.Bhaskar Rao Ex-
Sarpanch
20800
17 362/29-11-
08
25530
18 363/29-11-
08
163850
18. OTHERS
A Consolidated Statement No. 4(3) showing audit objections on others is
appended to the Report from which it could be seen that an amount of Rs. 990.77
lakhs was pointed out in 1,13,400 audit paras.
165
18.1. In the following cases the cash on hand was not remitted to the funds of the
Gram panchayat till the close of the financial year .
Sl.
No. Name of the GP & District
Amount kept in
hand without
remitting
1. Korisapadu, Prakasam 17680.14
2 Rajubangarupalem, Prakasam 20000.00
3 Pallepalem, Prakasam 20000.00
4 Isnapur, Medak 284754.00
18.2. THE INSPECTION NOTES OF THE DLPO/EO (PR&RD) ARE NOT
PRODUCED FOR AUDIT
As per power entrusted in Section 44 of PR ACT 1994, as per G.O.Ms.No.
70 PR & RD Dept., dt: 29-2-2000 and G.O.Ms.No 362 PR & RD Dept., dt: 3-12-
2001 the Dl.PO and the Extension Officer of (PR&RD) has not inspected the Gram
Panchayats. The administrative inspections strengthen the Gram Panchayat
Administration. The absence of conducting of inspections may result in slackness in
Gram Panchayat Administration. The mechanism of administrative inspections needs
to be strengthen
19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES
RECEIVED BUT NOT REALIZED WITHIN TIME :
-NIL-
DATE: 29.02.2012 HYDERABAD DIRECTOR
STATE AUDIT
A.P., HYDERABAD
166
167
STATEMENT No. 1
CONSOLIDATED STATEMENT SHOWING THE STATUS OF
AUDIT
NAME OF THE
INSTITUTION
DEMAND
AS ON 1-4-2009
AUDITS COMPLETED
AS ON 31-3-2010
BALANCE
AS ON 31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
GRAM
PANCHAYATS 6903 20578 361 20311 6542 267
168
STATEMENT No. 1 (1)
STATEMENT SHOWING STATUS OF AUDIT OF GRAM PANCHAYATS AS ON 31-3-2010
SL
No.
NAME OF THE
DISTRICT
DEMAND AS ON
1-4-2009
AUDITS COMPLETED
AS ON 31-3-10
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 Adilabad 6 130 0 129 6 1
2 Ananthapur 5837 1001 0 996 5837 5
3 Chittoor 42 1147 1 1144 41 3
4 East Godavari 45 1012 2 1012 43 0
5 Guntur 0 1022 0 1022 0 0
6 Kadapa 168 804 3 797 165 7
7 Karimnagar 65 1194 1 1181 64 13
8 Khammam 305 770 0 770 305 0
9 Krishna 1 973 0 969 1 4
10 Kurnool 12 898 0 889 12 9
11 Mahaboobnagar 35 1088 5 1064 30 24
12 Medak 325 1059 325 1010 0 49
13 Nalgonda 0 1178 0 1106 0 72
14 Nellore 0 961 0 961 0 0
15 Nizamabad 0 718 0 716 0 2
16 Prakasam 1 1043 0 1040 1 3
17 Ranga Reddy 45 705 23 638 22 67
18 Srikakulam 0 1101 0 1101 0 0
19 Visakhapatnam 0 944 0 944 0 0
20 Vizianagaram 0 928 0 926 0 2
21 Warangal 1 1014 1 1013 0 1
22 West Godavari 15 888 0 883 15 5
TOTAL: 6903 20578 361 20311 6542 267
169
STATEMENT No. 2
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM
PANCHAYATS FOR THE YEAR 2008-09
Rs. In lakhs
SL
No. NAME OF THE DISTRICT RECEIPTS PAYMENTS
1 ADILABAD 1109.82 930.93
2 ANANTHAPUR 4360.56 3383.36
3 CHITTOOR 4348.72 3291.26
4 EAST GODAVARI 7443.78 6622.39
5 GUNTUR 5704.93 4541.98
6 KADAPA 3800.71 2945.29
7 KARIMNAGAR 6920.61 5347.42
8 KHAMMAM 4438.85 3490.39
9 KRISHNA 6670.46 5970.32
10 KURNOOL 3054.96 2370.43
11 MAHABOOBNAGAR 4742.98 4341.71
12 MEDAK 3045.61 2818.23
13 NALGONDA 14959.90 3447.21
14 NELLORE 3858.90 2787.96
15 NIZAMABAD 3651.33 1915.20
16 PRAKASAM 4623.74 4202.93
17 RANGA REDDY 11696.75 14055.40
18 SRIKAKULAM 2927.04 2402.27
19 VISAKHAPATNAM 3982.04 3861.11
20 VIZIANAGARAM 5135.69 4525.48
21 WARANGAL 6122.48 5563.41
22 WEST GODAVARI 6797.66 6063.34
TOTAL: 119397.52 94878.02
B
170
STATEMENT No.2(1)
STATEMENT OF CONSOLIDATED RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR 2008-09(RECEIPT HEADS)
Rs. In Lakhs
Sl.
No.
NAME OF THE
DISTRICT
TAX
RESOURCES
NON-TAX
RESOURCES
OTHER
RECEIPTS
GOVERNMEN
T GRANTS ADVANCES DEPOSITS BRGF
SALARY
GRANTS TOTAL
1 ADILABAD 57.61 11.59 25.57 65.10 0.00 2.13 891.00 56.82 1109.82
2 ANANTHAPUR 257.87 580.99 852.49 1406.40 42.55 33.98 1086.00 100.28 4360.56
3 CHITTOOR 298.33 997.01 326.88 1691.61 7.17 37.04 960.00 30.68 4348.72
4 EAST GODAVARI 1570.27 953.92 2515.03 1898.27 17.38 117.43 0.00 371.48 7443.78
5 GUNTUR 1463.78 789.68 1481.16 1754.58 3.72 28.36 0.00 183.65 5704.93
6 KADAPA 214.80 434.56 1479.43 773.03 0.11 12.28 857.50 29.00 3800.71
7 KARIMNAGAR 790.04 882.73 1593.61 2448.03 0.72 12.31 852.50 340.67 6920.61
8 KHAMMAM 380.03 600.34 549.26 1799.46 45.09 53.14 931.50 80.03 4438.85
9 KRISHNA 1519.65 1812.02 1348.04 1657.69 1.64 58.50 0.00 272.92 6670.46
10 KURNOOL 226.26 308.27 798.69 1382.37 220.29 17.47 0.00 101.61 3054.96
11 MAHABOOBNAGAR 228.74 1908.74 328.25 1106.53 1.89 10.02 1046.50 112.31 4742.98
12 MEDAK 700.52 1137.29 30.63 385.69 0.00 0.00 738.50 52.98 3045.61
13 NALGONDA 157.89 3350.08 2880.00 7454.48 0.00 0.00 899.00 218.45 14959.90
14 NELLORE 441.16 774.84 1171.17 1301.74 25.01 47.78 0.00 97.20 3858.90
15 NIZAMABAD 542.43 1254.54 453.95 718.77 0.00 2.64 679.00 0.00 3651.33
16 PRAKASAM 808.37 722.75 661.74 2204.65 26.94 21.56 0.00 177.73 4623.74
17 RANGA REDDY 1013.85 2353.05 6662.99 848.38 0.00 0.00 812.00 6.48 11696.75
18 SRIKAKULAM 150.94 465.85 1296.68 828.49 97.38 21.35 0.00 66.35 2927.04
19 VISAKHAPATNAM 211.58 1516.27 290.78 1667.20 128.28 72.81 0.00 95.12 3982.04
20 VIZIANAGARAM 143.08 817.43 943.30 2207.30 170.01 93.82 708.50 52.25 5135.69
21 WARANGAL 1415.07 325.41 531.56 2475.92 0.00 18.35 867.50 488.67 6122.48
22 WEST GODAVARI 1335.39 1179.68 1279.29 2521.76 2.95 76.07 0.00 402.52 6797.66
TOTAL: 13927.66 23177.04 27500.50 38597.45 791.13 737.03 11329.50 3337.21 119397.52
171
STATEMENT No. 2 (2)
STATEMENT OF CONSOLIDATED EXPENDITURE OF GRAM PANCHAYATS FOR THE YEAR 2008-09(PAYMENT HEADS)
Rs. In Lakhs
Sl.
No.
NAME OF THE
DISTRICT SALARIES
OTHER
ADMINISTRATIVE
EXPENDITURE
MAINTENANCE
EXPENDITURE WORKS ADVANCES DEPOSITS BRGF OTHERS TOTAL
1 ADILABAD 64.55 56.30 54.03 54.50 0.18 0.00 701.37 0.00 930.93
2 ANANTHAPUR 171.48 203.74 1077.85 1122.94 83.81 15.44 708.10 0.00 3383.36
3 CHITTOOR 167.11 352.92 627.26 1062.98 187.46 29.17 781.62 82.74 3291.26
4 EAST GODAVARI 948.99 1357.59 2065.57 1986.62 42.81 180.79 0.00 40.02 6622.39
5 GUNTUR 518.77 1302.72 934.40 1750.87 29.99 4.13 0.00 1.10 4541.98
6 KADAPA 70.80 133.53 726.86 888.67 9.08 6.70 1109.65 0.00 2945.29
7 KARIMNAGAR 940.42 393.92 1135.28 2170.97 7.87 4.03 694.93 0.00 5347.42
8 KHAMMAM 277.72 213.68 889.13 1398.20 9.28 3.92 698.46 0.00 3490.39
9 KRISHNA 581.99 1285.90 1602.79 2444.59 10.32 44.73 0.00 0.00 5970.32
10 KURNOOL 88.10 265.90 329.55 1288.46 293.90 104.52 0.00 0.00 2370.43
11 MAHABOOBNAGAR 262.16 604.21 550.50 1650.41 1.63 4.01 1255.52 13.27 4341.71
12 MEDAK 150.42 180.99 600.92 1261.66 5.29 25.20 593.75 0.00 2818.23
13 NALGONDA 270.25 48.22 818.93 1599.41 0.00 0.00 710.40 0.00 3447.21
14 NELLORE 193.05 327.17 947.53 1287.27 3.80 29.14 0.00 0.00 2787.96
15 NIZAMABAD 127.60 226.52 387.58 630.05 0.25 0.00 543.20 0.00 1915.20
16 PRAKASAM 514.14 648.53 1036.07 1847.45 131.94 16.08 0.00 8.72 4202.93
17 RANGA REDDY 836.86 1967.96 2491.84 8021.79 4.16 36.54 696.25 0.00 14055.40
18 SRIKAKULAM 189.73 348.47 677.99 858.73 317.66 9.69 0.00 0.00 2402.27
19 VISAKHAPATNAM 1091.71 419.44 823.57 1307.82 205.34 13.23 0.00 0.00 3861.11
20 VIZIANAGARAM 187.83 574.34 509.69 2391.22 299.55 13.51 549.33 0.00 4525.48
21 WARANGAL 740.06 390.08 704.97 2667.16 0.01 0.72 658.35 402.06 5563.41
22 WEST GODAVARI 610.27 981.89 1446.81 2987.45 1.84 35.08 0.00 0.00 6063.34
TOTAL: 9004.02 12284.02 20439.11 40679.22 1646.17 576.63 9700.93 547.91 94878.02
172
STATEMENT No.3
STATEMENT OF CONSOLIDATED GRANT WISE RECEIPTS & PAYMENT OF GRAM PANCHAYATS
FOR THE YEAR 2008-09
Sl
No.
Name Of The
District
Salary Grant JRY/SGRY XI finance State Finance BRGF Other grant Total
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 56.82 53.22 0.60 0.61 41.24 36.65 6.51 5.29 891.00 701.37 898.86 704.38 1004.03 800.15
2 Ananthapur 160.69 163.91 0.71 9.61 920.13 588.86 159.99 131.22 1086.00 708.10 1323.30 716.58 2564.82 1610.18
3 Chittoor 829.88 792.46 0.02 0.27 875.76 771.43 151.26 174.55 960.00 781.62 566.04 1168.35 3382.96 2907.06
4 East Godavari 521.91 723.98 4.06 7.54 1353.71 981.49 248.26 292.64 0.00 0.00 179.53 172.40 2307.47 2178.05
5 Guntur 42.33 29.61 0.48 1.66 73.01 49.60 15.92 24.49 0.00 0.00 0.00 0.00 131.74 105.36
6 Kadapa 28.43 0.00 0.00 0.00 491.46 431.66 121.57 138.02 857.50 1109.65 1259.54 1308.63 1901.00 1878.31
7 Karimnagar 409.36 962.48 0.29 2.28 6092.56 4849.95 1375.22 1426.79 852.50 694.93 1971.96 2177.25 9849.39 9418.75
8 Khammam 39.14 106.80 139.07 92.91 737.63 581.79 190.00 197.48 931.50 698.46 0.00 0.00 1105.84 1677.44
9 Krishna 275.52 518.67 259.01 347.34 954.36 679.65 183.84 224.39 0.00 0.00 90.00 0.00 1762.73 1770.05
10 Kurnool 106.01 183.50 81.58 149.16 865.68 659.21 170.75 244.06 0.00 0.00 684.98 421.94 1909.00 1657.87
11 Mahaboobnagar 113.17 256.61 0.67 5.55 1089.18 908.46 102.98 175.52 1046.50 1255.52 1156.86 1387.60 2462.86 2733.74
12 Medak 52.98 150.42 8.34 30.30 46.02 60.96 150.29 170.20 738.50 593.75 768.55 774.74 1026.18 1186.62
13 Nalgonda 218.45 271.17 0.01 25.43 6396.72 874.92 976.68 184.10 899.00 710.40 1421.08 1372.63 9012.94 2728.25
14 Nellore 97.21 191.11 5.10 52.74 796.05 405.49 185.46 196.80 0.00 0.00 310.76 150.93 1394.58 997.07
15 Nizamabad 0.00 0.00 2.38 9.49 611.06 394.82 72.36 77.81 679.00 543.20 679.00 543.20 1364.81 1025.33
16 Prakasam 177.97 514.05 1.36 21.18 797.42 570.42 144.20 183.99 0.00 0.00 1290.12 982.32 2411.07 2271.96
17 Ranga Reddy 6.48 938.13 0.66 12.37 589.58 414.02 99.99 86.11 812.00 696.25 812.00 696.25 1508.71 2146.88
18 Srikakulam 66.35 189.30 32.84 54.11 653.59 497.69 224.13 256.58 0.00 0.00 220.00 75.96 1196.91 1073.64
19 Visakhapatnam 70.56 106.77 273.75 396.37 1004.08 533.22 143.25 68.15 0.00 0.00 12.94 0.00 1504.58 1104.51
20 Vizianagaram 71.01 118.09 172.11 136.95 570.10 428.64 144.00 169.30 708.50 549.33 1529.15 701.42 2486.38 1554.41
21 Warangal 50.39 108.08 0.00 0.64 810.17 660.63 229.97 168.21 867.50 658.35 867.50 658.35 1958.03 1595.91
22 West Godavari 402.52 610.27 131.50 312.07 1303.57 964.85 317.43 414.45 0.00 0.00 769.26 539.02 2924.28 2840.66
TOTAL: 3797.19 6988.63 1114.54 1668.59 27073.09 16344.42 5414.06 5010.15 11329.50 9700.93 16811.43 14551.95 55170.31 45262.20
173
STATEMENT No. 3(1)
STATEMENT OF CONSOLIDATED grant receipts OF GRAM PANCHAYATS FOR THE YEAR 2008-09
Sl
No.
Name Of The
District
Salary
Grant JRY/SGRY
X/XI
finance
State
Finance
BACK WARD
REGIONS GRANT
FUND Other grant Total
1 Adilabad 56.82 0.60 41.24 6.51 891.00 7.86 1004.03
2 Ananthapur 160.69 0.71 920.13 159.99 1086.00 237.30 2564.82
3 Chittoor 829.88 0.02 875.76 151.26 960.00 566.04 3382.96
4 East Godavari 521.91 4.06 1353.71 248.26 0.00 179.53 2307.47
5 Guntur 42.33 0.48 73.01 15.92 0.00 0.00 131.74
6 Kadapa 28.43 0.00 491.46 121.57 857.50 402.04 1901.00
7 Karimnagar 409.36 0.29 6092.56 1375.22 852.50 1119.46 9849.39
8 Khammam 39.14 139.07 737.63 190.00 0.00 0.00 1105.84
9 Krishna 275.52 259.01 954.36 183.84 0.00 90.00 1762.73
10 Kurnool 106.01 81.58 865.68 170.75 0.00 684.98 1909.00
11 Mahaboobnagar 113.17 0.67 1089.18 102.98 1046.50 110.36 2462.86
12 Medak 52.98 8.34 46.02 150.29 738.50 30.05 1026.18
13 Nalgonda 218.45 0.01 6396.72 976.68 899.00 522.08 9012.94
14 Nellore 97.21 5.10 796.05 185.46 0.00 310.76 1394.58
15 Nizamabad 0.00 2.38 611.06 72.36 679.00 0.00 1364.81
16 Prakasam 177.97 1.36 797.42 144.20 0.00 1290.12 2411.07
17 Ranga Reddy 6.48 0.66 589.58 99.99 812.00 0.00 1508.71
18 Srikakulam 66.35 32.84 653.59 224.13 0.00 220.00 1196.91
19 Visakhapatnam 70.56 273.75 1004.08 143.25 0.00 12.94 1504.58
20 Vizianagaram 71.01 172.11 570.10 144.00 708.50 820.65 2486.38
21 Warangal 50.39 0.00 810.17 229.97 867.50 0.00 1958.03
22 West Godavari 402.52 131.50 1303.57 317.43 0.00 769.26 2924.28
TOTAL: 3797.19 1114.54 27073.09 5414.06 10398.00 7373.43 55170.31
174
STATEMENT No. 3(2)
STATEMENT OF CONSOLIDATED grant payment OF GRAM PANCHAYATS FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No. Name Of The District Salary Grant JRY/SGRY X/XI finance State Finance
BACK WARD
REGIONS
GRANT FUND Other grant Total
1 Adilabad 53.22 0.61 36.65 5.29 701.37 3.01 800.15
2 Ananthapur 163.91 9.61 588.86 131.22 708.10 8.48 1610.18
3 Chittoor 792.46 0.27 771.43 174.55 781.62 386.73 2907.06
4 East Godavari 723.98 7.54 981.49 292.64 0.00 172.40 2178.05
5 Guntur 29.61 1.66 49.60 24.49 0.00 0.00 105.36
6 Kadapa 0.00 0.00 431.66 138.02 1109.65 198.98 1878.31
7 Karimnagar 962.48 2.28 4849.95 1426.79 694.93 1482.32 9418.75
8 Khammam 106.80 92.91 581.79 197.48 698.46 0.00 1677.44
9 Krishna 518.67 347.34 679.65 224.39 0.00 0.00 1770.05
10 Kurnool 183.50 149.16 659.21 244.06 0.00 421.94 1657.87
11 Mahaboobnagar 256.61 5.55 908.46 175.52 1255.52 132.08 2733.74
12 Medak 150.42 30.30 60.96 170.20 593.75 180.99 1186.62
13 Nalgonda 271.17 25.43 874.92 184.10 710.40 662.23 2728.25
14 Nellore 191.11 52.74 405.49 196.80 0.00 150.93 997.07
15 Nizamabad 0.00 9.49 394.82 77.81 543.20 0.00 1025.33
16 Prakasam 514.05 21.18 570.42 183.99 0.00 982.32 2271.96
17 Ranga Reddy 938.13 12.37 414.02 86.11 696.25 0.00 2146.88
18 Srikakulam 189.30 54.11 497.69 256.58 0.00 75.96 1073.64
19 Visakhapatnam 106.77 396.37 533.22 68.15 0.00 0.00 1104.51
20 Vizianagaram 118.09 136.95 428.64 169.30 549.33 152.09 1554.41
21 Warangal 108.08 0.64 660.63 168.21 658.35 0.00 1595.91
22 West Godavari 610.27 312.07 964.85 414.45 0.00 539.02 2840.66
TOTAL: 6988.63 1668.59 16344.42 5010.15 9700.93 5549.48 45262.20
175
STATEMENT NO.4
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS
FOR THE YEAR 2008-09 Rs. In lakhs
Sl. No. NAME OF THE
DISTRICT
GRAM PANCHAYATS
No. AMOUNT
1 Adilabad 277 51.67
2 Ananthapur 28667 437.54
3 Chittoor 4272 271.04
4 East Godavari 4013 139.71
5 Guntur 17903 788.03
6 Kadapa 11781 198.08
7 Karimnagar 10473 260.00
8 Khammam 4679 688.03
9 Krishna 17219 590.82
10 Kurnool 18044 655.09
11 Mahaboobnagar 14991 994.82
12 Medak 6343 549.25
13 Nalgonda 12130 615.46
14 Nellore 22364 933.25
15 Nizamabad 10433 1515.34
16 Prakasam 20529 961.40
17 Ranga Reddy 9513 1519.17
18 Srikakulam 29279 1062.10
19 Visakhapatnam 22038 1692.60
20 Vizianagaram 10145 670.11
21 Warangal 9049 439.25
22 West Godavari 16917 606.51
TOTAL: 301059 15639.27
176
STATEMENT No. 4 (a)
STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No. NAME OF THE CATEGORY
GRAM PANCHAYATS
No. AMOUNT
1 Variation in Account Figures 3549 132.21
2 Excess Utilisation of Grants / Funds 5757 248.77
3 Diversion of Grants / Funds 1031 283.30
4 Non-utilisation of grants before the lapsable
date 12766 176.68
5 Mis-utilisation of Grants / Funds 91 33.29
6 Non-utilisation of Earmarked Funds 0 0.00
7 Non-collection of dues 18962 1799.89
8 Advances pending adjsutemnt 6484 1863.55
9 Violation of Rules 63538 3190.70
10 Non remittance of deduction recoveries from
work bills / pay bills / contingent bills etc., 28373 3002.43
11 Non Production of Records 40118 3501.50
12 Misappropriations 288 78.27
13 Excess Payments 565 90.18
14 Wasteful Expenditure 267 51.87
15 Instances of cases of unaccounted for cash /
stores 100 28.55
16 Pendency of Utilisation Certificates 5084 13.54
17 Surcharge Certificates recovery pending 686 153.77
18 Others 113400 990.77
19 D.D/Cheques received but not realized with in
time 0 0.00
Total: 301059 15639.27
177
STATEMENT NO.4(1)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09
( DISTRICT - CATEGORY - INSTITUTION WISE ) GRAM PANCHAYATS Amount in Lakhs
Sl.No Name of the District
Variation in
Account figures(1)
Excess Utilisation of
Grants (02)
Diversion of
Grants(03)
Non-utilisation of
Grants(4)
Mis-
Utilisation of
Grants(05)
Non-
utilisation of
Earmarked
funds(6)
Non-Collection of
Dues (07)
No Amt No Amt No Amt No Amt No Amt No Amt No Amt
1 Adilabad 12 0.00 4 0.05 1 0.32 14 0.00 0 0.00 0 0.00 7 0.22
2 Ananthapur 394 4.66 525 1.73 19 2.04 1774 5.87 7 0.29 0 0.00 1861 45.42
3 Chittoor 38 0.06 2 0.00 0 0.00 0 0.00 0 0.00 0 0.00 531 40.64
4 East Godavari 12 0.67 216 13.89 11 0.61 75 5.30 3 4.45 0 0.00 264 45.48
5 Guntur 167 0.57 745 33.46 14 5.85 627 10.19 5 0.51 0 0.00 1129 207.54
6 Kadapa 381 5.35 564 6.89 4 0.33 727 3.31 4 0.33 0 0.00 714 11.16
7 Karimnagar 122 1.99 225 8.13 5 0.66 743 16.26 1 0.09 0 0.00 832 2.08
8 Khammam 2 0.09 180 23.66 27 2.90 276 10.11 23 6.30 0 0.00 487 168.50
9 Krishna 93 4.15 423 8.68 46 2.99 576 4.99 3 1.44 0 0.00 997 193.09
10 Kurnool 254 10.13 386 63.55 29 3.84 310 1.52 10 5.91 0 0.00 1207 46.36
11 Mahaboobnagar 9 0.05 5 1.49 4 0.92 887 6.06 1 0.45 0 0.00 905 16.91
12 Medak 50 0.10 80 3.16 10 6.29 150 30.16 0 0.00 0 0.00 500 12.21
13 Nalgonda 192 4.04 30 3.00 2 0.38 553 25.66 5 2.47 0 0.00 627 27.70
14 Nellore 53 0.21 191 8.34 577 0.77 706 2.26 0 0.00 0 0.00 1650 292.12
15 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
16 Prakasam 228 0.89 169 2.83 203 7.01 1316 0.28 0 0.00 0 0.00 1185 223.77
17 Ranga Reddy 126 52.65 68 5.71 1 0.01 312 2.94 8 7.20 0 0.00 529 1.52
18 Srikakulam 268 5.69 368 7.76 23 1.47 1395 13.04 1 0.28 0 0.00 1953 115.57
19 Visakhapatnam 870 33.19 486 13.70 11 241.00 1165 18.35 0 0.00 0 0.00 1583 87.33
20 Vizianagaram 210 7.12 258 2.88 20 1.08 206 2.95 0 0.00 0 0.00 824 124.53
21 Warangal 13 0.00 208 19.14 11 1.43 412 15.50 4 1.03 0 0.00 453 0.72
22 West Godavari 55 0.60 624 20.72 13 3.40 542 1.94 16 2.54 0 0.00 724 137.02
TOTAL: 3549 132.21 5757 248.77 1031 283.30 12766 176.68 91 33.29 0 0.00 18962 1799.89
178
STATEMENT NO.4(2)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09
( District - Category - Institution wise ) Grampanchayati
Amount in Lakhs.
Sl.
No
Name of the
District
Advances
Pending
Adjustment (08)
Violation of Rules
(09)
Non-Remittance of
Deductions (10)
Non-Production of
Records (11)
Missappropri
ation and
Fraud
(12)
Excess
Payment
(13)
Wasteful
Expenditure
(14)
No Amt No Amt No Amt No Amt No Amt No Amt No Amt
1 Adilabad 5 10.02 72 21.49 14 3.45 43 16.05 3 0.01 2 0.06 0 0.00
2 Ananthapur 808 90.98 6212 89.09 1853 45.45 2310 122.52 11 1.86 70 7.23 19 2.61
3 Chittoor 160 79.01 893 24.61 546 74.16 434 44.86 2 0.04 7 6.69 2 0.33
4 East Godavari 36 12.54 539 12.29 291 17.34 356 16.83 2 0.69 9 1.44 31 2.78
5 Guntur 127 46.86 2740 54.69 2240 175.55 3124 217.76 6 2.43 125 16.93 20 3.75
6 Kadapa 163 54.90 2144 19.60 703 42.14 1673 48.75 5 1.29 3 0.05 8 0.25
7 Karimnagar 17 18.21 1596 35.94 770 30.10 2187 138.76 19 1.47 0 0.00 1 0.07
8 Khammam 25 8.14 1528 215.37 508 64.14 315 17.72 3 0.56 13 1.33 1 0.05
9 Krishna 76 16.90 3345 64.78 2108 161.53 2047 109.98 9 2.42 26 3.18 1 0.02
10 Kurnool 737 300.62 3545 77.44 1467 55.36 1400 55.36 12 3.49 16 0.59 16 1.13
11 Mahaboobnagar 265 90.27 4907 364.70 108 19.16 3595 369.71 45 31.17 68 28.60 18 8.91
12 Medak 250 39.20 1410 198.28 379 94.23 1150 120.21 6 0.50 9 1.21 3 1.01
13 Nalgonda 14 1.96 4979 453.36 148 15.86 1403 56.27 89 3.47 0 0.00 11 0.73
14 Nellore 52 7.33 4984 185.66 930 58.28 2994 364.25 0 0.00 44 3.29 6 1.97
15 Nizamabad 1 0.26 1 0.47 5465 902.93 0 0.00 0 0.00 0 0.00 0 0.00
16 Prakasam 550 230.26 4050 78.03 2407 121.91 4708 269.74 3 0.57 17 0.75 21 3.61
17 Ranga Reddy 32 14.08 2734 558.47 615 410.03 1476 409.85 15 10.97 61 11.27 18 16.99
18 Srikakulam 1928 373.85 5891 256.71 1363 38.02 4609 237.87 3 0.26 5 0.06 16 0.84
19 Visakhapatnam 650 250.44 5077 155.56 1258 399.98 1526 477.40 5 1.49 28 2.67 26 1.59
20 Vizianagaram 550 201.53 2007 112.55 1435 71.85 1674 142.11 0 0.00 11 0.04 30 1.62
21 Warangal 17 8.10 2554 129.46 673 31.97 1366 108.56 25 7.76 21 2.21 1 0.00
22 West Godavari 21 8.09 2330 82.16 3092 168.99 1728 156.94 25 7.83 30 2.58 18 3.61
TOTAL: 6484 1863.55 63538 3190.70 28373 3002.43 40118 3501.50 288 78.27 565 90.18 267 51.87
179
STATEMENT NO.4(3)
STATEMENT SHOWING THE NUMBER OF AUDIT OBJECTIONS FOR THE YEAR 2008-09 ( District - Category - Institution wise ) Grampanchayati
Amount in Lakhs.
Sl.
No
Name of the
District
Instance of cases
un account for
(15)
Pending of U.Cs
(16)
Surcharge
certificate Recovery
Pending
Others (18)
D.D/Cheques/B.C,
etc,received but not
realised with in time
(26)
Total
No Amt No Amt No Amt No Amt No Amt No Amt
1 Adilabad 0 0.00 9 0.00 0 0.00 91 0.00 0 0.00 277 51.67
2 Ananthapur 23 0.63 911 0.04 0 0.00 11870 17.13 0 0.00 28667 437.54
3 Chittoor 2 0.43 152 0.00 0 0.00 1503 0.21 0 0.00 4272 271.04
4 East Godavari 0 0.00 837 2.42 0 0.00 1331 2.98 0 0.00 4013 139.71
5 Guntur 2 0.00 135 0.00 0 0.00 6697 11.94 0 0.00 17903 788.03
6 Kadapa 1 0.00 662 0.00 0 0.00 4025 3.73 0 0.00 11781 198.08
7 Karimnagar 1 0.01 449 0.00 0 0.00 3505 6.23 0 0.00 10473 260.00
8 Khammam 0 0.00 24 3.26 534 144.53 733 21.37 0 0.00 4679 688.03
9 Krishna 3 5.91 112 0.00 2 0.00 7352 10.76 0 0.00 17219 590.82
10 Kurnool 0 0.00 65 0.16 0 0.00 8590 29.63 0 0.00 18044 655.09
11 Mahaboobnagar 5 2.57 2 0.00 0 0.00 4167 53.85 0 0.00 14991 994.82
12 Medak 16 0.60 40 0.00 0 0.00 2290 42.09 0 0.00 6343 549.25
13 Nalgonda 1 4.98 8 0.00 0 0.00 4068 15.58 0 0.00 12130 615.46
14 Nellore 15 4.32 943 0.00 0 0.00 9219 4.45 0 0.00 22364 933.25
15 Nizamabad 0 0.00 0 0.00 0 0.00 4966 611.68 0 0.00 10433 1515.34
16 Prakasam 31 9.10 389 3.34 28 6.04 5224 3.27 0 0.00 20529 961.40
17 Ranga Reddy 0 0.00 44 0.00 1 0.00 3473 17.48 0 0.00 9513 1519.17
18 Srikakulam 0 0.00 121 0.05 121 3.20 11214 7.43 0 0.00 29279 1062.10
19 Visakhapatnam 0 0.00 1 0.00 0 0.00 9352 9.90 0 0.00 22038 1692.60
20 Vizianagaram 0 0.00 4 0.00 0 0.00 2916 1.86 0 0.00 10145 670.11
21 Warangal 0 0.00 19 4.27 0 0.00 3272 109.10 0 0.00 9049 439.25
22 West Godavari 0 0.00 157 0.00 0 0.00 7542 10.09 0 0.00 16917 606.51
TOTAL: 100 28.55 5084 13.54 686 153.77 113400 990.77 0 0.00 301059 15639.27
180
181
PART-II
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND
REVIEW REPORT ON THE
ACCOUNTS OF
MUNICIPAL CORPORATIONS FOR
THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
182
183
CONTENTS
STATEMENT No.
DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF MUNICIPAL CORPORATIONS
FOR THE YEAR 2008-09
PAGE No.
1 Introductions and a few selected audit objections of Municipal
corporations category wise 185-235
1 Consolidated Statement showing the Status of Audit of Municipla Corporations
237
2 2(1)1 to 2 (1) 3 Statement of Consolidated Receipts & Payments of Zilla Parisahds for the year 2008-09
238-240
2 (2) Statement of Consolidated Receipts & Payments of GHMC for the year 2008-09.
241-242
3
3. Consolidated Statement showing Number of Audit objections
raised (Category wise) and amount involved for the year 2008-
09.(Municipal Corporations)
243
3(1) 1 to 3(1) 3 Statement showing the number of audit
objections raised during the year 2008-09. 244-246
184
CONSOLIDATED AUDIT AND REVIEW REPORT ON THE
ACCOUNTS OF MUNICIPAL CORPORATIONS FOR THE YEAR
2008-09
INTRODUCTION
2.1 Under the State Audit Act, 1989 the Director of State Audit, A.P., Hyderabad
is made in charge of the audit of the funds of local authorities and other
authorities specified in the Schedule prescribed in the said Act. By virtue of
this legal position the Director of State Audit, A.P., Hyderabad is the Auditor
for the accounts of the Municipal Corporations constituted in the State of
Andhra Pradesh this excludes Municipal Corporations. The Number of
Municipal Corporations for the year 2008-09 is 15.
1.2 The Department has got 6 (six) Zonal Offices and District Offices in all the
Districts. The Regional Deputy Directors head the Zonal Offices, and the
District Audit Officer, State Audit heads the District Offices.
1.3 The Department conducts post audit of the Municipal Corporations Audit
Reports consisting of defects noticed in audit is issued to the Commissioners
of the Municipal Corporation concerned who has to take action for rectifying
the defects pointed out in the Audit Report.
1.4 Under the State Audit Act, the Director is vested with the power of
disallowing every item of the expenditure incurred contrary to the law and
surcharge the same on the person incurring or authorizing the incurring of
such expenditure and may charge against any person responsible there for, the
amount of any deficiency, loss or unprofitable out lay occasioned by the
negligence or misconduct of that person or of any such sum which ought to
have been accounted for but is not brought into account by that person and
shall, in every such case, certify the amount due from such person.
SCOPE OF AUDIT
2.4 The State Audit Department verifies the following aspects during the course of
post audit of the Municipal Corporations.
Whether the amounts collected like taxes, fees etc., by the Municipal
Corporations were properly accounted for with full details in the books of
accounts of the Municipal Corporation concerned.
Whether adequate care has been taken in periodical checking up of the funds
with Treasury or Bank.
Whether expenditure incurred is provided for in the Budget of the Municipal
Corporation and duly sanctioned by the competent authority under the relevant
rules and executive instructions issued by the Government.
Whether funds are utilized only for the permitted purposes prescribed under
the Hyderabad Municipal Corporations Act 1955 Rules.
185
Whether the procedure prescribed by Government in incurring the
expenditure/payments made is properly followed and accounted for with due
classification in the books of accounts of the Municipal Corporation.
Whether vouchers for the expenditure incurred were maintained.
Whether grants received from different sources were properly accounted for
and utilized for the purposes for which they were meant.
GRANTS RECEIVED DURING THE YEAR BY THE MUNICIPAL
CORPORATIONS.
3.1 The Municipal Corporations are provided grants by the State / Central
Governments to implement the schemes entrusted to them and also for over all
development of the area under their jurisdiction.
3.2 The Receipts and Payments are inclusive of the various Grants received from
Central and State Governments during the year 2008-09 by the Municipal
Corporations. The fund wise detailed of 7 Municipal Corporations are detailed
in Statement No.2.
The Fund Wise Receipts of Municipal Corporations excluding GHMC
for the year 2008-09 are exhibited below in the Pie chart for 6 Municipal
Corporations leaving the GHMC as GHMC annual accounts are prepared in
Double Entry Accrual Based Accounting System and others are in Single
Entry Cash Based System.
186
PIE chart of Receipts of MC for 2008-09
35%
1%
2%
16%
8%
2%
12%
1%
2%
6%
2%
0%
2%
11%
1. General Account
35%
2. Lighting A/c 1%
3. Ele. Education A/c
2%
4. W.S & Drainage A/c
16%
5. Town Planning A/c
8%
6. Special Funds 2%
7. Deposits & Adv. 12%
8. Welfare Schemes
1%
9. City Engineering 2%
10.City Project 6%
11. UCD Project 2%
12. Parks Leisure &
Cemetries 0%
13. Public Health
(Utility) 2%
14. Sanitation Fund
11%
The Fund Wise Payments of Municipal Corporations excluding
GHMC for the year 2008-09 are exhibited below in the Pie chart.
187
PIE Chart of Payment of MC for 2008-09
16%
3%
2%
23%
1%
1%10%1%
8%
20%
3%
0%
5%7%
1. General Account 16%
2. Lighting A/c 3%
3. Ele. Education A/c
2%
4. W.S & Drainage A/c
23%
5. Town Planning A/c
1%
6. Special Funds 1%
7. Deposits & Adv. 10%
8. Welfare Schemes 1%
9. City Engineering 8%
10.City Project 20%
11. UCD Project 3%
12. Parks Leisure &
Cemetries 0%
13. Public Health (Utility)
5%
14. Sanitation Fund 7%
STATUS OF AUDIT
4.1 7 years of Audit of Municipal Corporations up to the year 2008-09 was
conducted up to 31.12.2011.
4.2 The Department has conducted the audit of the receipts amounting to Rs.
265726.88 lakhs and Payments of Rs.311457.55 lakhs as detailed in the
Statements No.2 with Corporation wise break up.
188
4.2.1 The Fund Wise Receipts & Payment of Municipal Corporations excluding
GHMC for the year 2008-09 are exhibited below in the bar charts.
BAR Chart of R & P of MC for 2008-09
39363.12
649.95
2500.36
18379.05
8575.30
1695.45
13393.02
828.97
1786.02
6244.92
1929.84
0.25
1689.58
12485.73
18351.72
3675.93
2309.41
27674.24
622.20
801.86
11361.52
785.84
8901.16
23880.12
3022.36
176.55
6064.79
7754.05
1. General Account
2. Lighting A/c
3. Ele. Education A/c
4. W.S & Drainage A/c
5. Town Planning A/c
6. Special Funds
7. Deposits & Adv.
8. Welfare Schemes
9. City Engineering
10.City Project
11. UCD Project
12. Parks Leisure &
Cemetries
13. Public Health (Utility)
14. Sanitation Fund
Receipts
Payments
AUDIT OBJECTIONS
5.1 During the course of audit of these Municipal Corporations for the year 2008-
09 various defects noticed were already pointed out in the relevant Audit
Reports which were forwarded to the Municipal Commissioners concerned for
further action at their end as per the procedure laid down under the A.P. State
Audit Act.
5.2 A total number of 857 audit objections involving an amount of Rs.44449.49
lakhs were raised in the audit of the Municipal Corporations during the year
under report.
189
5.3 A Consolidated Statement showing the number of objections raised, amount
involved with category wise break-up is annexed vide Statement No.3.
5.4 CATEGORISATION OF AUDIT OBJECTIONS
The various audit objections are classified into 19 categories as detailed
below.
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 3 (1) to 3 (3)].
5.6 The objections raised have been here under and observed that the Non
collection of dues has accounted for 43% of objections followed by Violation
of Rules 24%.
5.7 Gist of some of the selected audit objections pertaining to the year under
report is enumerated below:
190
STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2008-09
Rs. In lakhs.
Sl.
No. NAME OF THE CATEGORY No. % AMOUNT %
1 Non-collection of dues 70 8 19215.51 43
2 Violation of Rules 189 22 10870.49 24
3 Non Production of Records 250 29 8332.38 19
4 D.D. Cheques received but not realised
with in time 2 0 3673.64 8
5 Excess Utilisation of Grants / Funds 8 1 1151.82 3
6
Non-remittance of the Deductions /
Recoveries from the Vouchers / Pay
Bills Contingent Bills 47 5 683.95 2
7 Advances pending adjustment 23 3 233.19 1
8 Variation in Account Figures 17 2 99.23 0
9 Excess Payments 74 9 74.01 0
10 Others 126 15 53.05 0
11 Non-utilisation of grants before the
lapsable date 3 0 35.70 0
12 Diversion of Grants / Funds 6 1 20.40 0
13 Mis-appropriations 19 2 2.50 0
14 Wasteful Expenditure 5 1 2.06 0
15 Mis-utilisation of Grants / Funds 2 0 1.33 0
16 Pendency of Utilisation Certificates 3 0 0.24 0
17 Surcharges Certificates- Recovery
Pending 0 0 0.00 0
18 Instances of cases of unaccounted for
cash / stores 8 1 0.00 0
19 Non- utilisation of Earmarked Funds 5 1 0.00 0
Total: 857 100 44449.49 100
The objections - Number and amount involved - were categorized and their
category has been analyzed. 43% of amount objected pertains to the Non collection of
dues, followed by Violation of Rules which constitutes 24%.
191
AUDIT PARAS
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 the previous
year, Balance of the Treasury Pass Book as per Cash Book is not tallying with the
actual Closing Balance in the Treasury Pass Book as on 31st March. This is
happening due to Non-crediting of Receipts into the Treasury Pass Book by the
Treasury Authorities. Receipts credited in the cash book by remittance through
Challans are not credited in the Treasury Pass Book by the Treasury Authorities.
Debiting the cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.
Without explaining the differences, addition or subtraction are being done in the
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. Further, Consolidated
Closing Balance of all cash books are not tallying with consolidated closing balance
of annual account of the institutions etc., A few instances of Variation in Account
figures noticed in the Audit Reports in various Local Bodies are detailed below:
A Consolidated Statement No. 3 (1) of Variation in account figures is
appended to the Report from which it could be seen that 17 audit paras involving an
amount of Rs. 99.23 lakhs were pointed out.
1.1 MC, WARANGAL - VARIATION BETWEEN ANNUAL ACCOUNTS
STATEMENT OF TOTAL RECEIPTS AND D.C.B NOT TALLIED:
During the course of audit on verification of receipt in accordance with the
Annual Account & D.C.B and receipt & payment statement abnormal variation
noticed as follows:
Sl.
No. Name of the Receipt head
Amount as
per A.A/c
Amount as per
R & P
Statement
Collection amount
of D.C.B
Statement
1 Property Tax 1917.15 1931.88 1912.74
2 Tax on Advt. 72.48 28.88 28.88
3 D&O Trader Licence Fee 32.18 10.21 10.21
4 Betterment Charges 88.96 88.94 90.50
5 Water Charges 77.96 0 0
6 Market fee 6.43 3.47 3.47
7 Rent on Shops 26.85 28.52 28.13
8 Mutation Fee 4.45 5.08 5.11
Total 2226.46 2096.98 2079.04
The Executive authority
would need to rectify / reconcile the above variations and furnished to audit.
(Para No. 1 (7) of MC, Warangal AR for 2008-09)
192
1.2) MC, KAKINADA - PROPERTY TAX – COMPONENT FIGURES NOT
TALLIED WITH DCB FIGURES NEEDS RECTIFICATION.
On verification of DCB statement of Municipal Corporation for the
year 2008-09, the Property Tax receipts were not tallied with the annual account
figures as detailed here under.
As per DCB
statement
As per annual
account
Difference
1. General 53437843 54145194 707354
2. Water 21375138 21224406 150732
3. Drainage 6679731 6632626 47105
4. Scavenging 13893839 13795865 97974
5. Lighting 26718922 26530509 188413
6. Education 26757204 26568519 188685
7. Library Cess 4884218 4849776 34442
Total 1414705
The reason for the difference of Rs.14,14,705.00 at the end of the year
2008-09 was not explained in audit. Therefore action would need to be taken to
rectify the differences at an early date and loss if any sustained would need to be
recovered and remitted to Municipal Corporation funds.
(Para No. 2 of MC, Kakinada AR for 2008-09)
1.3) MC, TIRUPATI - REVENUE – PROPERTY TAX – DIFFERENCE IN
DEMAND SUPPLIED BY ONLINE AND MANUAL THROUGH REGISTERS-
REASONS NOT EXPLAINED FOR DIFFERENCE OF RS.20,75,919-
As could be seen from the D C B of property Tax obtained from Property
tax Registers and demand generated in “ON LINE” difference of property tax as
shown below is noticed
Rs
DCB generated from ON LINE;
1st Half year : 8, 37, 41,665/-
2nd
Half year : 8, 48, 11,438/-
Total : 16, 85, 53,103/-
DCB of property Tax obtained from registers: 16, 64, 77,184/-
Difference 20, 75,919/-
Reasons for such huge difference are not explained in audit which needs to
be reconciled.
(Para No.5 of MC, Tirupati AR for 2008-09)
193
1.4) MC, KAKINADA - HUGE ARREARS OF TAXES / NON TAXES
PENDING -COLLECTIONS MADE MANUALLY EVEN AFTER THE
CONSTRUCTION OF E-SEVA CENTRES.
In terms of AP Municipalities (collection of taxes) Rules 1965 read with
corresponding provisions of HMC Rules, municipal Corporation / Municipalities
empowered to collect taxes / non taxes such a property tax, adv tax, water charges,
encashment fee, market fee, rent of shops etc and their prompt collection enables the
municipal corporation to implement various developmental activities in the Municipal
area. A scrutiny of the demand collection, balance statement appended to the annual
account at the end of the year 2008-09 revealed pendency of huge arrears as detailed
below.
Sl.
No. Nature of Taxes/Non taxes
As per DCB amount
pending collection upto
the end of 31.3.09 Rs.
1 Property Tax 118136605.09
2 Encrochment Fee 2773900
3 Water Charges 67329059
4 Market Fee 2844295
5 Shops rents 1344651
6 Fishary Rents 23000
7 Ferry 32500
8 Advances 169045
9 D&O trades 3830338
10 Advertisement Tax 4975711
The DCB statement was not revealing year wise arrear position. It was also
observed that the preparation of arrear demand register was dispended with after
computerization of collection of property tax. In terms of Rule 4 of AP Municipality
rules 1965 read with corresponding HMC Act & Rules the balances outstanding and
the lists except miscellaneous demand register which shall be maintained in such a
form as may be laid down by Govt from time to time.
(Para No.5 of MC, Kakinada AR for 2008-09)
2. EXCESS UTILISATION OF GRANTS
The State Government releases grant-in-aid to meet the expenditure on
developmental works and contingency items. It was noticed during the audit that the
Executive Authorities of the MCs were incurring expenditure in excess of the grant
received from the Government either in anticipation of the release of further grant or
meeting the excess amount from the General Funds of the institution without any
valid orders.
A Consolidated Statement No. 3 (1) is appended to the Report from which it
could be seen that an amount of Rs.1151.82 lakhs was pointed out in 8 audit paras.
194
3. DIVERSION OF GRANTS
Municipal Corporations are
empowered to levy and collect different taxes like Property Tax, Advertisement Tax,
Vacant Land Tax etc., and collect water charges for supply of water to the households
and industrial/commercial units. The Municipal Corporations are authorized to collect
Building License fee for permitting the Traders to carry on business in the Municipal
area. Certain Municipal Corporations also raise income from their properties by
leasing them out. All the monies received by the Municipal Corporations form part of
their general funds and they can be utilised for the purposes prescribed under the
Act/Rules. Rule 39 of Rules framed relating to Taxation and Finance in Schedule II
under Section 130 of the Andhra Pradesh Municipal Corporations Act, 1965
prescribed the purposes to which the Municipal Fund should be applied. According to
the said rule, these include all objects expressly declared obligatory or discretionary
by law or rules and in general everything necessary for or conducive to the safety,
health, education and convenience of inhabitants or to the amenities of the Municipal
Corporation and incidental to the administration and the fund should be applicable
thereto within the Municipal Corporation. But there are many instances where the
grants/funds are applied for a different purpose rather than the intended one.
As per the orders issued by the Government in G.O Ms. No. 1886, Municipal
Administration, dt.22.11.1965, the Municipal Corporations should not divert the
following earmarked funds even temporarily for other purposes without the previous
sanction of Government.
1. Water and Drainage Tax Funds
2. Deposits including Provident Funds
3. Lighting Tax Fund
4. Loan Funds
5. Special Government Grants
6. Elementary Education Fund
7. Capital Receipts from sale of capital assets and
8. Endowments.
Consolidated Statement showing details of Diversion of Grants is
annexed to the report vide Statement No. 3 (1) from which it can be seen that 6 no. of
audit paras involving an amount of Rs.20.40 lakhs were raised in the audit reports for
the year and a few of them are narrated below.
4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE
Government releases special grants to the local bodies for implementing
specific schemes. These grants are to be utilized for the purposes for which they are
meant duly following the guidelines issued / norms prescribed and such utilization
should be within the date prescribed. Otherwise, the grants will lapse to the
Government, unless the lapsable date of any particular grant is extended by the
Government or grant releasing authority.
195
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, up to a maximum
period of 18 months instead of end of the financial year to allow reasonable time to
utilize the grant released. According to the above orders, grants released in the first
year of a financial year can be utilized on or before 30th
September of succeeding
year. The Local Bodies did not utilize the grants released within the lapsable date and
thereby huge amounts were left unutilized. The grant sanctioning authorities were also
not approached for extending the utilization period. Thus the schemes for which the
grants released were not implemented effectively and totally. The unspent balances
were also not refunded to the grant releasing authorities.
A Consolidated Statement No. 3 (1) of Non-utilization of Grants/ Funds before
Lapsable Date is appended to the Report from which it could be seen that an amount
of Rs. 35.69 lakhs was pointed out in 3 audit paras.
5. MIS-UTILISATION OF GRANTS
Municipal Corporations are in receipt of Grant-in-aid from the Government
for certain specified purposes to be spent within the prescribed time limits and they
furnish utilization certificates for the grants utilized.
During the Course of audit, several instances have come to the notice of audit
that certain Municipal Corporations incurred expenditure in excess of the Grant–in-
aid received.
The fact of incurring such excess expenditure further implies that such
expenditure was met from the unspent balances of some other grants. Necessary steps
are called for to curb this sort of financial indiscipline at the earliest. The excess
expenditure incurred, wherever possible, should be got reimbursed from the grant
sanctioning authorities explaining the circumstances under which the excess
expenditure over and above the grant sanctioned became inevitable.
2 audit paras of Mis-utilisation of funds / grants involving Rs. 1.33 lakhs
pointed out in the relevant audit reports are detailed in Statement No. 3 (1) appended
to this report.
6. NON-UTILISATION OF EARMARKED FUNDS
-Nil-
7. NON-COLLECTION OF DUES
On verification of Revenue collections in Municipal Corporations, huge amounts have
been noticed pending realization for long periods and allowed to become barred by
limitation of time. No appropriate action seems to have been initiated by the executive
authorities before the dues became barred by limitation of time, in spite of various
statutory provisions existing for their recovery such as through distraint, prosecution
or filing of suits.
196
A Consolidated Statement No. 3 (1) of Non-collection of dues is appended to
the Report from which it could be seen that 70 audit paras were pointed out involving
Rs.19215.51 lakhs.
7.1 GUNTUR MUNICIPAL CORPORATION - TOWN PLANNING
SECTION – NON-COLLECTION OF VACANT LAND TAX FROM THE
VACANT LAND OWNERS/BEFORE CONSTRUCTION OF BUILDING OF
BUILDERS – IRREGULAR - NEEDS RECOVERY - Rs.2,01,353/-
As verified from the building applications and vacant land files it was noticed
that the vacant land tax at the rate of 1% per annum or 0.5% per half year on vacant
site value as per registered title deeds was not collected from the vacant site owners
for the years from 2000-01/1 to 2008-09/2. But as per Preamble No.59/698 dated 23-
10-02 of Municipal Corporation, Guntur along with A.P. Hyderabad Municipal
Corporation Act 212 (2) vacant land tax at the rate of 1% per annum has to be
collected from the vacant site owners. Due to the non-collection of vacant land tax in
the following cases loss of an amount of Rs.2,01,353.00 was caused to the Municipal
funds. Hence, immediate action would need to be taken to collect the above amount
of Rs.2,01,353.00 and credit to Municipal funds.
Sl.
No
Building
application
No.
Name of the
Building
owner &
Address
Period
Vacant land tax
To be
collecte
d
Already
collecte
d
Balance
Rs. Rs. Rs.
1 2 3 4 5 6 7
1
BAC
56/08/G1,
dt.
M. Sambasiva
Reddy 2nd
line
Chaitanyapuri,
Koritepadu,
Guntur
Smt. B.
Hymavathi –
site owner
1-4-2000 to 31-
3-2002
1-4-2002 to 30-
9-2003
1-10-2003 to
30-9-2004
1-10-2004 to
30-9-2005
1-10-2005 to
30-9-2006
1-10-2006 to
31-3-2008
1-4-2008 to 30-
9-2008
Total
2480
2325
1925
2118
3982
5176
5198
5198
2480
2325
1925
2118
3982
5176
NIL
18006
-do- B.
Sampurnamm
a – site owner
1-4-2000 to 31-
3-2002
1-4-2002 to 30-
9-2003
1-10-2003 to
30-9-2004
1-10-2004 to
2480
2325
1925
2118
2480
2325
1925
2118
197
30-9-2005
1-10-2005 to
30-9-2006
1-10-2006 to
31-3-2008
1-4-2008 to 30-
9-2008
Total
3982
5176
5173
5173
3982
5176
NIL
18006
-do- B.
Annapurnamm
a – site owner
1-4-2000 to 31-
3-2002
1-4-2002 to 30-
9-2003
1-10-2003 to
30-9-2004
1-10-2004 to
30-9-2005
1-10-2005 to
30-9-2006
1-10-2006 to
31-3-2008
1-4-2008 to 30-
9-2008
Total
2480
2325
1925
2118
3982
5176
5148
5148
2480
2325
1925
2118
3982
5176
NIL
18006
2 691/08-G2,
dt.
Y. Ankamma
Chowdary s/o
Y. Ramaiah
nearest
D.No.1-2-
66/2, Besides
JKC College,
Guntur
2000-01/1
2000-01/2
2001-02/1
2001-02/2
2002-03/1
2002-03/2
2003-04/1
2003-04/2
2004-05/1
2004-05/2
2005-06/1
2005-06/2
2006-07/1
2006-07/2
2007-08/1
2007-08/2
2008-09/1
Total
1412
1412
1412
1412
1765
1765
1765
1941
1941
2135
2135
4013
4013
5216
5216
5216
7800
5216
5216
5216
7800
1412
1412
1412
1412
1765
1765
1765
1941
1941
2135
2135
4013
4013
NIL
NIL
NIL
NIL
27121
3
BA
800/08/G2,
dt.21-11-
08
P.L.V.
Subrahmanya
Kumar 3rd
line
Brundavan
Guardens,
Guntur
2000-01/1
2000-01/2
2001-02/1
2001-02/2
2002-03/1
2002-03/2
2003-04/1
2003-04/2
2004-05/1
774
774
774
774
968
968
968
1065
1065
774
774
774
774
968
968
968
1065
1065
198
* 60%
Discount
allowed for
the year 2007-
08/2
2004-05/2
2005-06/1
2005-06/2
2006-07/1
2006-07/2
2007-08/1
2007-08/2
2008-09/1
2008-09/2
Total
1172
1172
2203
2203
2864
2864
2864
2864
2864
*1146
2864
2864
1172
1172
2203
2203
2864
2864
NIL
NIL
NIL
20608
4
BA
945/08/G2,
dt.21-2-09
Borra Baghya
Latha w/o B.
Venkateswara
Reddy
D.No.2-2-
38/A,
Stambalagaruv
u, Guntur
2000-01/1
2000-01/2
2001-02/1
2001-02/2
2002-03/1
2002-03/2
2003-04/1
2003-04/2
2004-05/1
2004-05/2
2005-06/1
2005-06/2
2006-07/1
2006-07/2
2007-08/1
2007-08/2
2008-09/1
Total
983
983
983
983
1229
1229
1229
1352
1352
1487
1487
2796
2796
3635
3635
3635
3635
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
983
983
983
983
1229
1229
1229
1352
1352
1487
1487
2796
2796
3635
3635
3635
3635
33429
5
BA
925/08/G2,
dt.
Sri K.
Ramachandra
Murthy
D.No.3-20-6,
Near
Recruitment
Office,
Pattabhipuram
, Guntur
2000-01/1
2000-01/2
2001-02/1
2001-02/2
2002-03/1
2002-03/2
2003-04/1
2003-04/2
2004-05/1
2004-05/2
2005-06/1
2005-06/2
2006-07/1
2006-07/2
2007-08/1
2007-08/2
2008-09/1
Total
1326
1326
1326
1326
1657
1657
1657
1823
1823
2005
2005
3769
3769
4900
4900
4900
4900
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
1326
1326
1326
1326
1657
1657
1657
1823
1823
2005
2005
3769
3769
4900
4900
4900
4900
45069
6
BA
863/08/G2,
dt.8-12-08
R. Venkata
subbaiah
D.No.1-36-61,
2000-01/1
2000-01/2
2001-02/1
560
560
560
NIL
NIL
NIL
560
560
560
199
4th
line
Naibrahmana
Colony,
Maruthi
Nagar, Guntur
2001-02/2
2002-03/1
2002-03/2
2003-04/1
2003-04/2
2004-05/1
2004-05/2
2005-06/1
2005-06/2
2006-07/1
2006-07/2
2007-08/1
2007-08/2
2008-09/1
2008-09/2
Total
560
700
700
700
770
770
847
847
1592
1592
2070
2070
2070
2070
2070
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
560
700
700
700
770
770
847
847
1592
1592
2070
2070
2070
2070
2070
21108
Total 201353
(Para No.6 of MC, Guntur AR for 2008-09)
7.2 MC, GUNTUR - MARKETS AND SHOPPING COMPLEXES – HEAVY
ARREARS OF RENTS PENDING REALISATION – NEEDS ACTION:
Rs.1,67,75,875/-
As verified from the Demand, Collection and Balance statements for the year
2008-09, it was noticed that an amount of Rs.1,67,75,875/- was still to be realized
from markets and shopping complexes as on 31-3-2009 as detailed below. Early
action may be taken for the realization of dues along with penal interest. Loss, if any,
caused in this regard may be made good from the person or persons responsible.
Sl.
No. Details of properties
Arrears up to
2007-08
Rs.
Current
2008-09
Rs.
Total
Rs.
1 Markets 6851217 2879054 9730271
2 Complexes 2419236 4626368 7045604
Total 9270453 7505422 16775875
(Para No.12 of Guntur AR for 2008-09)
7.3 GVMC, VISAKHAPATNAM - MARKET NOT LEASED OUT -
DEPARTMENT COLLECTION MADE - IRREGULAR - NEEDS EARLY
ACTION. RS. 23,36,440/-
As verified from the D.C.B of markets, shops and other properties owned by
the Corporation, it is noticed that certain markets were not leased out in auction, but
departmental collections were made. The register of assets owned by the Corporation
was not furnished to Audit, to enable to verify whether all the properties of the
Corporation were leased out are not. Notification for the leases in the open auction
200
has to be issued in the month of February and the process is to be closed before 31st
March, duly finalizing the bids and to obtain registered agreements from the bidders
at their cost. No reasons or any explanations were given for Department Collections
of the Market Lease-s etc.
The lease amounts have to be recovered from lessees as per the agreement
conditions, further the lease has to be terminated if there is a default in payment of the
bid amount and the bidder has to forfeit the initial deposit and EMD. The balance
lease should be further auctioned duly following the procedure. But, no action was
taken on defaulting bidders in time and Contractor has allowed the bid amounts to fall
in arrears. The loss in this regard would need to be recovered from person or persons
responsible and made good to GVMC Funds.
Markets are leased out on yearly basis. The licensee (Lessee) has to pay the
entire lease amount of the year in advance. But in some cases, it is observed that some
of the licensees have not paid the lease amount of 2007-08 even during 2008-09. Such
cases are listed below:
ARREARS OF MARKET LEASES FOR THE YEAR 2008-09
Sl.
No. Name of Markets
Demand
Amount
Rs
Collection
Amount
Rs.
Net Due
Amount
Rs.
1
Permission to Sell Ice
Cream on Push Carts
(25B-215-001)
10,668/- 7112/- 3,556/-
2 Maintenance of Canteen
in Mudasarlova Park 12,768/- 6,384/- 6,384/-
Total 9,940
Zone VI Arear DCB of Markets
1 Daily Market,
Pendurthyi 150000 140000 10000
Zone V Arrears of Markets
1 K V V Satya Satish 2201000 50000 1701000
2 K Srinu 751000 15000 601000
2952000 65000 2301000
Zone V, Fish Tanks
S.No. Name of the Bidder Demand Collection Balance
1 D Ramana 10000 4500 5500
Zone V, Usufruct of Trees
S.No. Name of the Bidder Demand Collection Balance
1 D Janakamma 12000 2000 10000
Total Non Collection Of Miscellaneous Income From Market Leases
Amounts to Rs.23,36,440/-
(Para No.11 of GVMC, Visakhapatnam AR for 2008-09)
201
7.4) MC, TIRUPATI - REVENUE – PROPERTY TAX COLLECTION - HUGE
PENDENCY IN CURRENT YEAR - RS. 10, 70, 90,513/-
As seen from the DCB statement for the year 2008-09 a total demand,
collection and balance of property tax is as follows. And percentage of collection of
property taxes 36% only.
Demand Collection Balance to be collected
16,64,77,184 5,93,86,671 10,70,90,513
It is observed that property tax is collected only 36% and leaving a balance of
Rs. 10, 70, 90,513/- which is 64%.
The executive authority is requested to take effective steps for collection of
property tax for taking up of developmental activities in corporation areas
(Para No.6 of MC, Tirupati AR for 2008-09)
7.6) MC, KAKINADA - ADVERTISEMENT TAX – PENDING FROM 1999-
2000 TO 2008-09 – HUGE AMOUNT NOT COLLECTED – NEEDS ACTION.
On verification of Advertisement Tax records, it was noticed that huge amounts were
pending from 1999-2000 to 2008-09 as detailed below.
Year Demand Collection
Balance
Amount in
Rs.
1999-2000 56218 478 55740
2000-01 264624 15776 248848
2001-02 299620 0 299620
2002-03 351070 7440 343630
2003-04 314197 7100 307097
2004-05 518345 18560 499785
2005-06 688336 83960 604376
2006-07 1146125 729386 416739
2007-08 416739 35150 381589
2008-09 7724881 2749170 4975711
11780155 3647020 8133135
Effective steps would need to be taken to recover the Advertisement Tax.
(Para No.10 of Kakinada AR for 2008-09)
202
8. ADVANCE PENDING ADJUSTMENT
It was observed during the course of audit that temporary advances paid for
specific purpose were outstanding for a long time though they should have been got
adjusted through detailed bills and vouchers as soon as possible as per Article 99 of
the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to
avoid refund of unspent amounts. Several objections were raised on such outstanding
advances in the relevant Audit Reports pointing out above the failure of the Executive
Authorities in taking necessary action to get these advances adjusted.
It was also observed that huge amounts of personal advances are also
outstanding for a long time due to the inaction on the part of the Drawing Officers.
A Consolidated Statement No.3 (2) showing the audit objections on Advances
Pending is appended to the Report from which it could be seen that an amount of
Rs.233.18 lakhs was pointed out in the 23 audit paras.
8.1) MC, TIRUPATI - ADVANCES – VARIOUS ADVANCES DRAWN BY
DR. K.M.MITHRA, M.H.O. – MUNICIPAL CORPORATION – TIRUPATI –
NOT GOT ADJUSTED – NEEDS ACTION Rs.6,50,000/-
As seen from the advances recoverable register, it is noticed that the
following advance amount drawn and paid to Dr. K.M.Mithra, M.H.O. Municipal
Corporation, Tirupati. But the same was not got adjusted till the close of audit. The
individual was relieved on transfer but the advance pending was still due from the
individual.
The executive authority is hereby taken proper action for realizing huge
advance pending amount from the individual and credited to corporation genera
funds.
Sl.
No
Vr.No & Date Nature of advance Advance
sanctioned
Rs.
Remarks
1 867 / 11.08 Repairs of P.H. vehicles 100000 Not got
adjusted
2 `` Purchase of workshop
shed materials
100000 ``
3 Roc.No,6161/09/C1
Dt: 8-10-09
Advance drawn 250000 ``
4 911/11-09 Vehicle repair charges 200000 ``
5 1092/1-09 Towards arrangements of
pulse polio programme
50000 ``
Total Advance pending 7,00,000-
(Para No.89 of MC, Tirupati AR for 2008-09)
203
9. VIOLATION OF RULES
It was noticed in the audit that in some cases the Rules / Government
instructions for incurring the expenditure from the funds of the MCs were violated
either due to negligence or ignorance. In certain cases, the funds of the MCs were
utilized for the purposes other than the permitted ones under the Act / Rules. It was
also noticed that in a few cases, Government instructions were misunderstood or
misinterpreted. Such irregular expenditure incurred was objected to in the relevant
Audit Reports.
A Consolidated Statement No.3 (2) showing the audit objections on Violation of
Rules is appended to the Report from which it could be seen that an amount of
Rs.10870.48 lakhs was pointed out in 189 Audit Paras.
9.1) GHMC – CIRCLE VIII, ABIDS – ENGINEERING SECTION -
SRI.D.YADAIAH S/O SRI. MAISAIAH, APPOINTED AS KAMATI,
PROMOTED AS BILL COLLECTOR AND LOWER DIVISION CLERK
WITHOUT QUALIFICATION AND THE INDIVIDUAL PROMOTED
WITHOUT OBSERVING THE MINIMUM SERVICE IN PARTICULAR
CATEGORY- IRREGULAR-NEED TO BE REGULARIZED.
On verification of service register of Sri.D.Yadaiah, LDC working in Engg.
Section of GHMC Circle No.VIII, Abids. The following were observed.
The individual was appointed as Kamati wef.01-07-1992 and his pay fixed at
minimum Rs.1375-00 in the scale of Rs.1375-2375. Subsequently the following
promotions were effected.
I) Promoted as Bill Collector wef.31-8-2000. AN. Pay fixed as on 01-09-
2000 @ Rs.3210-00 in the scale of Rs.2750-5150.
II) Promoted as lower division clerk wef.05-05-2001 FN. Pay fixed as on
05-05-2001 @ Rs.3290-00 in scale of Rs.3290-6550 , under FR
22(a)(ii) and next increment allowed on 01-09-2001 under FR31
In this case it was noticed that the individual has passed only S.S.C., vide Roll
No.0658454, held in march-1994,as per entry made in S.R. page No.1.
As per Govt. Orders issued in G.O.Ms.No.591GAD(Services),dated 01-10-
1984, the basic qualification for J.A(LDC)/TYPIST/STENO. are intermediate pass.
But without possessing requisite basic qualification the individual was promoted as
LDC, which irregular and contrary to Govt. rule.
And as per rule 9 of last grade service rules issued in G.O.Ms.No.564
GA(Ser.B) Dept.,Dt.24-10-1992 and read with the ad-hoc rule issued under state and
subordinate service rules issued in G.O.Ms.No.627 GA(Ser.A)Dept.,Dt.21-12-1983,
No person shall be eligible for appointment by transfer or promotion unless he has put
in not less than three years of service in the category from which appointment by
204
transfer or by promotion as made. In the instance cases this rule has not been observed
and the individual has been promoted/appointed by transfer in short- duration.
The services of above person need to be regulated as per rules and if any
excess payment made to the individual need to be worked out and recovered from the
person or person’s responsible, under intimation to audit.
(Para No.9 of Engg. Section, GHMC AR for 2008-09)
9.2 GHMC, MALKAJGIRI - WATER SUPPLY – COLLECTION OF WATER
TAX – NOT SELF SUPPORTED HEAVY ARREARS – OTHER DEFECTS
During the year under audit an amount of Rs.4,84,12,864-00 was
drawn & paid towards supply of Manjeera water to Malkajgiri Circle area, public
through water tankers as detailed in the Annexures.
Where as the water tax collected by GHMC during the year 2008-09 is
Rs.210.89 Lakhs as per DCB statements which clearly shows that the water charges
paid is more than 100% excess and not self supported. If the water supply staff
salaries also included excess goes to 200%.
Coersive steps would need to be taken to minimize the expenditure, besides
raising the collection, and become self supportive.
Further in respect of water charges paid for mobile tankers, connected tender
files, trip sheets etc., were not furnished to audit for verification. Action may be taken
to furnish the same at an early.
Manjeera water supply charges paid to HMWSSB by Malkajgiri
Sl.
No. Vr.No. & Dt.
Amount
(Rs.) Period
1 8000 13671/30.5.08 4486348 w.s.charges for 3/08
2 8000 13682/ ,, 4494498 ,, 4/08
3 8000 19612/19.6.08 4572129 ,, 05/08
4 8000 31641/30.7.08 4421714 ,,06/08
5 8000 35122/12.8.08 4223261 ,,07/08
6 8000 47969/24.9.08 4449592 ,,08/08
7 8000 53323/16.10.08 4605691 ,,09/08
8 8000 63214/19.11.08 4753099 ,,10/08
9 8000 71527/15.12.08 4423998 ,,11/08
Total 40430330
205
Addl. consumption charges Rs.34000000/- upto 7/07 to 11/08 @ 2000000-00.
Supply of majeera water through mobile tankers
1 8000
50542/4.10.08 328123 19739 308123 G.Nagesh
8602/01000
20047, MB
No.17/08-
09
Youthamn
agar
Reswork
2 8000
48453/25.9.08 344993 20756 324237 do@114/- do 2880
3 8000 16042/9.6.08 339060 17008 322052 do@114/ 2976
4 8000 80255/7.1.09 339060 20399 318661 do@114/ 2976
5 8000
71347/15.12.08 328123 19739 308123
do@114/ 2976
6 8000
59210/7.11.08 339060 20399 318661
do@114/ 2880
7 8000
50482/25.9.08 300779 18096 282683
do@114/ 2976
8 8000
48461/25.9.08 310806 18700 292106
R.Upender
reddy
167/07-08,
A/c.964125
100330106
2640
9 8000 16026/9.6.08 310681 15600 295081 do 2728
10 8001
03030/20.3.09 280727 16888 263839
do 2728
11 8001 03017/,, 306248 18423 287825 do 2464
12 800092257/16.2.09 310805 18700 292105 do 2688
13 8000 80243/7.1.09 310805 18700 292105 do 2728
14 8000
73159/15.12.08 300779 18096 282683
do 2728
15 8000
59209/7.11.08 310806 18700 292106
do 2640
16 8000
35097/12.8.08 310805 18701 292104
do 2728
17 8000 25686/8.7.08 300779 15089 285690 do 2728
18 8000
10102/16.5.08 300659 15095 285564
do 2728
19 8000
35091/12.8.08 332617 20009 312608 Y.Naresh
M.B.No.45/
05-06 2640
20 8000 25693/8.7.08 328123 16458 311665 ,, 2640
21 8000
10112/16.5.08 328123 16459 311664 ,, 2968
22 800092254/16.2.09 326869 19665 307204 2880
23 8000
04315/25.4.08 347002 27007 319995 2880
24 8000 04319/,, 326701 25426 301275 2869
25 8000 04316/,, 320001 24911 295090 2784
7982534
(Para No. 29 of GHMC, Malkajgiri Circle AR for 2008-09)
9.3 KAPRA - BUILDING PERMISSION FEE-LESS COLLECTED-BY
ADOPTING LESS RATES-LOSS CAUSED-NEEDS RECOVERY-Rs.81619.00
As per the Resolution No, 94 dated 30.06.2008 of GHMC, The Town
Planning Charges and building permission fees were enhanced w.e.f. 01-07-2008.
In respect of Building permission fee the following charges need to be collected.
206
Residential Building.
1. Up to 200 Sq.Metres of plot area Rs.10/- per
Sq.Metres on built up area
2. 200 Sq.Metres to 500 Sq.meatres of plot area Rs.50/- per Sq.Mt
built up area
2. 501 Sq.Mt to 750 Sq.Mts of plot area Rs.70/- per Sq.Mt on
built up area.
But in the following cases, the less rates were adopted which caused
loss to the tune of Rs.81, 619-00.
Immediate action would need to be taken to recover the less collection
and credited to GHMC funds.
Sl.
No
Permit No & Date Name of the
owner
Plot area in
Sq.Meters
Plinth area
in Sq.Meters
Fee to be
collected
Collected Difference
1 BA/G1/78/08-09
Dt.15.09.2008
Kokila Jhonson 200.64 188.46 188.46x50/-
=9423/-
1890 7533
2. BA/G1/210/08-09
Dt.11.02.2009
D.Kanthi Reddy 223.21 173.12 173.12x50/-
=8656/-
1732 6924
3 BA/G1/216/08-09
Dt.17.02.2009
K.Jagan Mohan
Reddy 229.93 124 124x50/-
=6200/-
1240 4960
4 BA/G1/77/08-09
Dt.20.09.2008
M.Srinivas Prasad 219.82 189.16 189.16x50/-
=9458/-
1892 7566
5 BA/G1/111/08-09
Dt.15.10.2008
G.Venkateswer
Rao 250 84.99 84.99x50/-
=4250/-
840 3410
6 BA/G1/42/08-09
Dt.03.07.2008
D.Chandra Shekar 200.66 99.80 99.80x50/-
=4990/-
998 3792
7 BA/G1/142/08-09
Dt.16.12.2008
P.Satya Narayana
Raju 330. 82 82x50/-
=4100/-
820 3280
8 BA/G1/180/08-09
Dt.30.12.2008
Thakur devi Singh 250.83 121 121x50/-
=6050/-
1210 4840
9 BA/G//161/08-09
Dt.08.12.2008
G.Shashamani 223.24 185.30 185.30x50/-
=9300/-
1860 7440
10 BA/G2/114/08-09
Dt.18.02.2009
K.Malahar Rao 247.16 164 164x50/-
=8200/-
1640 6560
11 BA/G2/123/08-09
Dt.07.03.2009
Y.Nirmala 292. 200 200x50/-
=10000/-
2000 8000
12 BA/G2/133/08-09
Dt.20.03.2009
P.Neeraja 226.50 82.36 82.36x50/-
=4150/-
830 3320
13 BA/G1/117/08-09
Dt.08.10.2008
K.Swarna 240.14 112 112x50/-
=5600/-
1120 4480
14 BA/G1/119/08-09
Dt.13.10.2008
AVS.Pavankumar 834.05 316.74 316.74x50/-
=25360/-
15850 9510
TOTAL
81619
(Para No.5 of GHMC, Kapra Circle AR for 2008-09)
207
9.4 KAPRA - COLLECTION OF PROPERTY TAX-NO CARBON
IMPRESSION WERE FOUND ON THE REVERSE OF THE DUPLICATE
RECEIPTS-NEEDS ACTION.
During the course of audit on verification of the receipt books towards
collection of property tax no carbon impression were found on the reverse of the
duplicate receipts.
The matter was brought to the notice of the valuation Officer vide Half
Margin Lr.No.14/2009-10 dt.18.02.2010 and requested to provide an explanation, but
no reply was received in this matter.
Without a reverse impression of the content of the original receipt on
the duplicate receipt, there is a every possibility of writing different amounts in the
original and duplicate receipts.
(Para No.9 of GHMC, Kapra Circle AR for 2008-09)
9.7 GVMC, VISAKHAPATNAM - LEASES - LEASE OF CERTAIN
MARKETS, PARKING PLACES, PARKS & OTHER MISCELLANEOUS
PLACES - NOT LEASED OUT - IRREGULAR -NEEDS ACTION
As verified from the DCB statement furnished relating to the various Zones , it is
noticed that the following properties of GVMC which were leased out during the year
2007-08 and amount collected, Some of them were not leased out during the year
2008-09. But, no reasons were given for not leasing out the following properties.
Hence, early action would need to be taken on the person responsible for not leasing
out the properties in the year 2008-09 besides recovery of loss caused to GVMC.
Statement of Shop Rooms Vacant
Shop No. Name of the Complex Remarks
23A-208-001 Shivaji Park MS Complex Vacant
23A-208-002 Shivaji Park MS Complex Vacant
23A-208-004 Shivaji Park MS Complex Vacant
23A-208-005 Shivaji Park MS Complex Vacant
25A-214-003 Seethammadhara MS
Complex
Vacant
25A-214-009 Seethammadhara MS
Complex
Vacant
25A-214-05A Seethammadhara MS
Complex
Vacant
3 Mulagada Shopping Complex Vacant
4 Mulagada Shopping Complex Vacant
5 Prakash Nagar Vacant
6 Prakash Nagar Vacant
1 Trinadhapuram Vacant
2 Trinadhapuram Vacant
3 Trinadhapuram Vacant
208
4 Trinadhapuram Vacant
1 Mindi Shops MP lads Vacant
3 Mindi Shops MP lads Vacant
4 Mindi Shops MP lads Vacant
1 Srinivasa Shopping Complex
Pendury
Vacant
Statement of Markets Rooms Vacant
Sl.
No.
Name of the Market Remarks
1 Jagga Rao Bridge Market Not Leased
2 Sivaji Park Gate Entrance Not Leased
3 Sivaji Park Parking Not Leased
4 Nehru Bazar Shops Not Leased
5 Mudasarlova Park Parking Not Leased
(Para No. 31 GVMC, Visakhapatnam AR for 2008-09)
9.8) MC, TIRUPATI - REVENUE-LESS COLLECTION OF ROOM RENTS
NEAR LEELA MAHAL SHOPPING COMPLEX THAN FIXED BY
MUNICIPAL CORPORATION - IRREGULAR-NEEDS COLLECTION -
Rs.68,760-
Municipal Corporation, Tirupati vide Lr.Roc no: 3339/08/A1 dt:07-06-2008
and dt:05-07-2008 have leased out shops 22 in number to different people to carryout
their business at a rent of Rs.700- per month per shop 1 to 21 and at a rent of Rs.800-
per month shop no:22 near Leela Mahal Shopping Complex.
Again in Lr.Roc No: 5446/04/A1 dt.30.08.08 have leased out shop no:7 (o.c)
at Rs.1650- per month and shops in I floor 1 to 6 at Rs.880- per month near E-seva
Complex.
But, as verified in MDR, rents on shops are collected as shown below:
Shop No Rent Fixed Per
month
Rs.
Rent
Collected
Rs.
Less
Collection
Rs.
Total Less
Collection
Rs.
1 to 21 700 500 200 50400
22 800 600 200 2400
Near Leela Mahal
Shopping Complex 7 (O.C)
6150 800 850 10200
e-Seva Complex (1 to 6) 880 800 80 5760
Total 68760
The reason for short collection of rents to a tune of Rs.68, 760- was not
explained in audit. The Executive Authority is required to make good the amount
from the person(s) responsible and intimate to audit.
(Para No.7 of MC, Tirupati AR for 2008-09)
209
9.10) MC, TIRUPATI - P.H.SECTION –SUPPLY OF P.H.ARTICLES –
CONNECTED STOCK REGISTER AND ITS UTILIZATION NOT POINTED
OUT NEEDS ACTION RS 23,97,072-00
In the following vouchers an amount of Rs 23,97,072-00was drawn and paid
to various firms towards supply of P.H.Articles for maintenance of P.H.wing of
Municipal Corporation Tirupati. The Connected stock register in which the supply of
P.H. Articles recorded not produced to audit to verify the correctness of the stock
received from firms’. The utilization of P.H. Articles also not pointed out to audit.
Though the half margin letter was addressed to the executive authority Concerned for
production of afore said records, the executive authority has not produced the record.
Sl.
No. Voucher No & date Details Amount
1 399/07/2008 Amount drawn and paid to NCCF of India
to wards supply of Lime Powder
440200
2 505/07/2008 Supply of Conservancy articles( amount
paid to NCCF of India tpt)
48150
3 506/07/2008 Supply of Plastic buckets ( amount paid to
NCCF of India tpt)
46750
4 508/07/2008 Supply of Coconut brooms( amount paid to
NCCF of India tpt)
247500
5 507/07/2008 Supply of Bleaching powder (amount paid
to NCCF of India Tpt)
54000
6 509/07//2008 Supply of malathin 165000
7 398/07/2008 Supply of By-Tex 312000
8 1029/12/2008 Supply of Uniform Cloth and Coconut Oils 613986
9 1031/12/2008 Supply of Malathin 82500
10 1250/01/2009 Supply of By-Tex 78000
11 63/03/2009(TTD Loan) Supply of Eprens 116000
12 64/03/2009(TTD Loan) Supply of Chappels to P H.Workers 92986
Total 2397072
(Para No. 38 of MC, Tirupati AR for 2008-09)
9.11) MC, KAKINADA - OIL BILLS – PURCHASE OF OIL TO VEHICLES –
LOG BOOKS NOT – PRODUCED – DETAILS OF THE VEHICLES
ENGAGED NOT KNOWN – VEHICLE NUMBER NOT ENTERED IN THE
BILL – IRREGULAR Rs.2,34,711.00
During the course of audit, it was noticed that, huge expenditure was
incurred towards oil bills as detailed below. But the vehicle no. for which the oil was
taken was not entered in the bills issued by the oil agency. Further no. of vehicles and
type of the vehicle engaged by the Municipal authorities during the year under audit
was also not furnished to audit. The log book was not maintained and produced to
audit. Some tractors and cars were engaged on contract hire basis for which oil
expenses have to be borne by the contractors themselves but not by the corporation.
Due to non availability of the above information, it was not known whether the
expenditure on oil was properly incurred or not. Therefore the entire amount is held
under objection. Action would need to taken to produce all the above records to
210
audit. The loss if any sustained would need to be made good from the person
responsible and credited to municipal funds under intimation to audit.
Sl.
No
Vr. No & Dt Name of the contractor Amount
1 107/4.08 S. Ananda Rao 12642
2 114/4.08 K. Kasinath 12739
3 119/4.08 G. Eswara Rao 12740
4 115/4.08 K. Kondala Rao 11760
5 306/6.08 K. Kasinath 32415
6 142/4.08 S.R.T Agency 69820
7 783/11.08 G. Bheemeswara Rao 49245
8 871/11.08 K. Kondala Rao 16600
9 1182/3.09 G. Bheemeswara Rao 16750
234711
(Para No.29 of Kakinada AR for 2008-09)
9.12 GHMC MALKAJGIRI - AUCTION OF TAI BAZAR FOR 2008-09 –
CERTAIN IRREGULARITIES NOTICED.
File No.A1/809/08, dt.1.4.08
On verification of the Auction file of Tai Bazar for the year 2008-09, it
was observed that it was auctioned on 17.3.08 and on 28.3.08 with an EMD of
Rs.1.00 Lakh and knocked down in favour of the highest bidder Sri.M.Vijaya Kumar
for Rs.4.00 Lakhs. As per the Tender conditions, immediately after knocking out the
bid, 50% amount should be paid in (24) hours, and remaining 50% be paid in (5)
installments excluding EMD, and if not paid by 31.8.08, a fine has to be imposed
besides forfeiting the EMD. For (5) installments of 50% bid amount, advance post
dated cheques have to be obtained and enter into agreement.
The bidder paid the 50% of the total bid along with (including) EMD
immediately instead of excluding EMD and (3) post dated cheques furnished for 4/08,
5/08 and 7/08. The post dated cheques were bounced and the 50% bid amount not
collected within the specified date of 31.8. 2008. No action was taken to collect the
auction amount and no notices were also served for collection from 4/08 to 1/09. For
belated payment, no penalty was imposed and collected which is highly irregular.
Immediate action may be taken to fix penality and recover the same from him.
(Para No.2 of GHMC, Malkajgiri AR for 2008-09)
211
9.13 GHMC, RAJENDRA NAGAR CIRCLE - LAYING OF CC ROAD
FROM 7 TEMPLES TO 2-1-94 AT UPPARPALLY UNAUTHORISED,
CONTRARY TO RULES
Administrative sanction was given for laying
road from 7 temples to 2-1-94 as per plan in the work file. But, as verified from the
M.Book the road was laid at 2-2-36/1 to 2-2-36/2 and at 2-2-30. There is no H.No. 2-
2-36/1 to 2-2-36/2 mentioned in the administrative sanction. As such work was done
at the place other than the place approved by Competent Authority which is highly
irregular and violation of rules.
(Para No.21 of GHMC, Rajendra Nagar Circle AR for 2008-09)
10. NON-REMITTANCE OF THE DEDUCTIONS /
RECOVERIES FROM THE VOUCHERS / PAY BILLS /
CONTINGENT BILLS
It was noticed during the audit that various deductions / recoveries affected
from the work bills / pay bills were not remitted to the Government or a part of them
only were remitted in spite of statutory obligation to remit the same to Government
account within a prescribed time under the relevant statutory provisions which also
include penalty as well as prosecution for non adherence.
The deductions normally made from the work bills / pay bills that are to be
remitted to Government account are hereunder.
Work Blls
3. Income Tax
4. Sales Tax/VAT
5. Seigniorage Charges
Pay Bills
4. Profession Tax
5. G.P.F. (Government Employees)
6. G.I.S Premium.
7. Contribution to Pension Scheme
8. Sainik Welfare fund
The defects noticed were pointed out in the respective Audit Reports. Some of
them are as under.
A Consolidated Statement No.3 (2) showing the audit objections on Non
remittance of Deductions/Recoveries made from the vouchers /Pay Bills/Contingent
Bills is appended to the Report from which it could be seen that an amount of
Rs.683.94 lakhs was pointed out in 47 Audit Paras.
212
10.1 GUNTUR - LIBRARY CESS NOT REMITTED TO ZILLA
GRANDHALAYA SAMSTHA, GUNTUR : Rs.1,42,39,324-81 AND
Rs.89,84,008/- IN KURNOOL.
i) During 2008-09, an amount of Rs.19,22,30,885 was collected
towards property tax (current + arrear). As per the Annual Account
(G1.Deposits – 021301), an amount of Rs.46,65,940 only was shown
as Library Cess collections. The library cess collected along with
property tax amounting to Rs.1,42,39,324.81 (Rs.19,22,30,885 x
8/108) i.e. eight paise per every Rupee was not remitted to Zilla
Grandhalaya Samstha, Guntur. Early action may be taken for the
remittance of Rs.1,42,39,324.81 to Zilla Grandhalaya Samstha,
Guntur.
ii) An amount of Rs.89,84,008/- was collected towards Library Cess by
the Kurnool Municipal Corporation but no amount was remitted to
Zilla Grandhalaya Samstha, Kurnool. Library Cess collected would
need to be remitted immediately ZGS under intimate to Audit. The
Library Cess collected may be kept in inoperative account and
transferred to ZGS in monthly intervals.
(Para No.43 of MC, Guntur AR for 2008-09)
10.2) MC, TIRUPATI - WORKS – EXECUTION OF WORKS RECOVERIES
MADE FROM THE WORK BILLS NOT REMITTED TO THE CONCERNED
HEAD OF ACCOUNTS NEEDS ACTION - Rs. 8,53,304/-
As per G.O.Ms.No: 217 Industries & Commerce (M-I) Dept., Dt: 29-9-2004,
G.O.Ms.No: 11 Finance ( W & P) F – 8 department dt: 29-7-2005 and G.O.Ms.No:
159 R & B (R-3) Dept., Dt: 30-10-2004 the deduction towards Seigniorage fee, VAT
& I.T. etc., respectively were made to Rs. 8,53,304/- from the work bills pertaining to
works executed during the year as detailed below. But the same were not remitted to
the concerned head of accounts. The same would need to be remitted to the respective
heads of accounts and remittance challans produced to audit.
Name of the
scheme I.T. VAT S.F. NAC CMRF
Service
Tax Total
T.T.D.Loan
Scheme
190029 295272 123057 7625 11432 0 627415
Road Cutting
charges
0 0 51546 3771 5657 0 60974
S.S.A.Funds 0 55824 11153 7312 11522 0 85811
Street Foods 0 0 0 0 0 79104 79104
Total 853304
(Para No.47 of MC, Tirupati AR for 2008-09)
213
10.3) MC, KAKINADA - WORKS – INCOME TAX, SALES TAX,
SEIGNORAGE CHARGES AND NAC ETC DEDUCTED FROM THE WORK
BILLS – BUT NOT REMITTED TO CONCERNED HEAD OF ACCOUNT
Rs.19,14,579.
The following works were executed by the MC, Kakinada for the year 2008-
09 under grant works and the income tax, sales tax, seignorage charges and NAC etc
were deducted from the work bills. But the same were not remitted to the concerned
head of account. Early action would need to be taken to get the amounts remitted to
concerned department under proper head of account.
Sl.
No Name of the grant
Amount deducted towards.
IT Rs. VAT Rs. SC Rs. NAC
Rs.
CMRF
Rs.
1 Rajiv Nagar Bata 463578 827994 413472 26560 31049
2 IKP 29941 44000 16677 1292 1938
3 Water works 10183 14665 32 462 691
4 NSDP 8870 15850 7335 396 594
Total 511572 902509 437576 28710 34272
(Para No.35 of MC, Kakinada AR for 2008-09)
11. NON-PRODUCTION OF RECORDS
The Urban Local 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 needs, the total revenue
base needs to be enhanced every year. With the raise in demand for services, the
functionaries need to have effective financial management skills and accountability
practices.
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 be produced to Audit for verification. Then only the transparency in
incurring of public money and their utility to the General Public can be reasonably
judged.
Such an important function on the part of the Drawing and Disbursing Officers
of all the Local Bodies and Urban Bodies in the maintenance and production of
records to audit are not properly being discharged. Thereby, the main access to clear
the doubt of transparency in public expenditure has not been availed. In spite of all
these guidelines and instructions, the DDOs of all local and urban bodies have failed
to maintain the records and to produce the same to Audit when ever the local teams
visited their institutions. Under the category of non – production of records to the
214
Audit, the major part is in works and the related records such as M.book, estimate file,
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 a surprise to note that the heads of the institutions could not explain why
the records could not be maintained in the office and produced when ever they are
being demanded by the Audit Parties and other agencies during their local visits.
The financial health of an institution depends up on the quality of the records
that are being maintained to show the accountability of the financial transactions that
occur in the institution. Though the provisions under Rule 6 of A.P. State Audit Rules,
2000 are clear that the onus for production of records to audit lies with the Executive
Authority of the institution, in the following cases the said rule is not complied with
as they have failed to furnish various records to audit. As a result of such
inaccessibility to the records, several audit objections were pointed out in various ARs
of the concerned institutions. Records like M. Books, connected files, vouchers in
which crores of rupees transacted in many institutions form the major chunk of audit
objections under the category of non production of the records. Transactions relating
to the purchase of various contingent articles, goods etc., were not accounted for in
stock registers and produced to audit. Remittances made to the different departments
etc for which neither the acknowledgements nor any evidence produced in audit also
form part under this category. Though several half margin letters were issued for
production of the required records, the Executive Authorities did not comply with and
resulted in inaccessibility of the records and raising of paras to that extent.
A Consolidated Statement No.3 (2) of showing the audit
objections on Non-production of records is appended to the report from which it
could be seen that an amount of Rs.8332.37 lakhs was pointed out in 250 Audit
Paras.
11.1 GHMC, ALWAL - CASH RECEIPT BOOKS – (MISC.) NOT
PRODUCED.
As could be verified from the money value form register maintained in
the GHMC circle it was noticed that the following cash receipt book issued to the
Bill-Collector staff as noted against each for collection, but the receipt books were not
produced to Audit for verification in spite of several times reminded . It is a serious
lapse, and suspicious that there is any mis-appropriation.
In absence of receipt
books amount remitted to chitta could not be verified action would need to be taken to
produce the receipt books.
Sl.No. Name of the bill collector S/S Book No.
1 P.Krishna Chary, PH Worker 816
(Para No.12 of GHMC, Alwal Circle AR for 2008-09)
215
11.2 MC, GUNTUR - WORKS EXECUTION OF WORKS CONNECTED
PAID VOUCHERS ESTIMATES AND M.BOOKS-NOT PRODUCED
EXPENDITURE INCURRED RS.7,10,06,399 HELD UNDER OBJECTION:
During the course of audit, the paid vouchers, estimates and connected
measurement books pertaining to works executed as detailed below were not made
available for verification in audit to certify the genuineness of the expenditure
incurred.
The connected measurement books as prescribed in the
paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code
volume-I would need to be produced for verification in audit to certify the
genuineness of the expenditure incurred in the absence of the connected measurement
books as prescribed above, detailed designs and estimates as prescribed vide Para
No.173 of A.P. PWD Code and completion report as specified vide Article 181 of
A.P. Financial Code Vol.I and Para 216 to 218 of A.P. P.W.D code, the genuineness
of the expenditure incurred and payment made could not be certified and admitted in
audit. Hence, the same would need to be produced for verification in audit. The
voucher wise details are mentioned in the original para furnished to the
Commissioner, Municipal Corporation, Guntur.
(Para No.51 of MC, Guntur AR for 2008-09)
11.3 GUNTUR MUNICIPAL CORPORATION – TOWN PLANNING
SECTION – NON-PRODUCTION OF B.P.S APPLICATIONS ALONG WITH
REGISTER – NEEDS EARLY ACTION FOR PRODUCTION:
During the course of audit, it was noticed that an amount of
Rs.6,53,56,722/- was collected towards building penalization scheme during the year
under report. But the connected building penalization scheme applications along with
the Register were not produced to audit. Due to non-production of the building
penalization scheme applications along with the register, it could not be verified
whether the B.P.S. amount was correctly calculated and collected. Hence immediate
action would need to be taken to produce the building penalization scheme
applications along with register to audit for verification. Loss, if any, caused in this
regard would need to be taken to collect and credited to Municipal Funds and produce
challans to audit.
(Para No.63 of MC, Guntur AR for 2008-09)
11.4 MC, GUNTUR - PUBLIC HEALTH SECTION - MAINTENANCE OF
VEHICLES - LOG BOOKS NOT PRODUCED-EXPENDITURE INCURRED.
Rs.79,13,021/-
The following are the important registers to be checked in audit of bills
relating to maintenance of vehicles in public health section.
1.Log Books 2)Registers showing the repairs, replacements etc., 3)Register showing
the cost of petrol, Oil etc., 4) Register of inventory or equipment 5) Hire charges
216
payment register 6) Register of old parts collected after replacement 7) Register of
accidents.
1) Log Book: During the course of audit due to non-production of these books, it
could not be verified in audit whether the following procedure was followed.
1) That all the entries in the relevant columns in the Log Books were made.
2) That the entries in log books were noted by the officer who used the vehicle in
his own hand writing the mileage at the start and at the completion of their
trips after verifying kilometers.
3) That sufficient particulars were recorded regarding movement and purpose to
indicate the journeys were on official business.
4) That the log book in respect of each vehicle was closed at the end of the month
and a summary prepared in the log book showing details of duty and non-duty
journey performed during the month in the prescribed proforma.
5) That the quantity of petrol diesel oil purchased has been entered in the log
book of the respective vehicle.
6) That the hire charges collected as per hire charges payment register have been
entered in the concerned log books.
7) That the log book was scrutinised personally by the authority concerned once
in a month and his signature appended there in.
8) That the log books was written in the prescribed proforma with full details
(Para No.64 of MC, Guntur AR for 2008-09)
A) REGISTER SHOWING THE REPAIRS, REPLACEMENTS, SPARE
PARTS ETC
Due to non-production of these registers, it could not be verified in audit whether
the following prescribed procedure was followed.
a) That the voucher No. and date and nature of repairs etc. together with amount were
noted in the appropriate columns of the register.
b) That in the case of replacement etc. the old parts were disposed off in public
auction noted and the sale proceeds credited to municipal funds
c) That in case of purchase of spare parts, the rules relating to the invitation and
disposal of tenders have been observed.
B) REGISTER SHOWING THE COST OF PETROL, OIL, ETC.,
Due to non-production of this register, it could not verified in audit whether the
following prescribed procedure was followed or not.
a) That the details of expenditure incurred towards cost of petrol etc. have been
entered with reference to the voucher No. and date and the amount covered for the
same.
b) That the consumption of the petrol, oil etc. date wise has been entered therein.
c) That in respect of the contingent bills for the supply of petrol/diesel oil, the
following certificates have been recorded by the authority concerned on the bills.
Certified that quantities purchased have been entered in the log book of the
respective vehicle.
217
Certified that necessary recoveries under rules have been made from the
parties concerned using the vehicles for non-duty journeys and the amounts credited
to the institution.
d) That the mileage run by the vehicle during a particular period as per log book was
in accordance with the issues of petrol and oil shown in this register.
e) That the propulsion charges or cost of fuel etc., received if any from the persons
who used the vehicle on non-duty have been entered in this register and a receipt to
that effect has been issued to the parties.
f) That the register was periodically checked by the concerned authority and a
certificate to that effect has been recorded.
C) REGISTERS OF INVENTORY OF EQUIPMENT
Due to non-production of this register, it could not be verified in audit whether
the following prescribed procedure was followed or not.
a) That the nature of equipment purchased has been entered in this register together
with the date of purchase and price etc, as per voucher.
b) That the inventory of equipment has been checked by the concerned authority
every month and a certificate to that effect has been recorded there in.
c) That the loss if any, arising out of negligence or fault of any person has been
recovered and credited to the funds.
An amount of Rs.79,13,021-00 was incurred towards Petrol/Diesel oils during
the year as detailed below since the connected aforesaid records and registers were
not produced, the genuineness of the expenditure incurred could not be admitted in
audit.
11.5 WARANGAL - HUGE AMOUNTS WERE PAID TOWARDS
SANITATION- NON PRODUCTION OF FILES RELATED AMOUNT HELD
UNDER OBJECTION RS.6,33,55,036-00
On verification of Annual Account of Municipal Corporation Warangal for the
year 2008-09, it is noticed that huge amounts were paid towards sanitation. But the
related records and files were not furnished to audit.
The amounts were paid as follows as per Annual Account.
a. Private Sanitation Rs.5,94,77,335-00
b. Special Sanitary Arrangements Rs. 38,07,611-00
c. Sanitation Rs. 70,090-00
-----------------------------
Total: Rs.6,33,55,036-00
-----------------------------
The record relating above amounts were not furnished to audit till the close of
audit. In the absence of the above records the correctness of the amounts paid is not
certified in audit. Hence, the amount is held under objection.
(Para No. 11(10) of MC, Warangal AR for 2008-09)
218
11.6 MC, KAKINADA - WORKS – EXPENDITURE INCURRED ON
VARIOUS WORKS CONNECTED, ESTIMATION, M. BOOKS AND FILES
NOT FURNISHED Rs.2,10,54,021 + Rs.47,47,615/-
During the course of audit for the year 2008-09 a few of the connected records
relating to general fund works were furnished for audit after issuing half margines
repeatedly.
Most of the estimates, M. Books as shown below audit despite of issuing as
many half margin letters which is irregular. In the absence of the same the
expenditure incurred on them in held under objection.
Sl.
No. Vr. No & dt Contents
Amount
(Rs.)
1 2/2.4.08 Collection and supply of the materials for the
work arrangements of furniture in UPADI,
APUSP scheme in Municipal ELe school in
Ramarao pet 36th
ward.
292351
2 5/4.4.08 Maintenance of BT Road in AE in section with
Hot
159302
3 6/4.4.08 Repairs to CC drain 203517
4 8/4.4.08 Formation of gravel road to revenue colony in
continue to saibaba temple street in Sanjay
nagar.
82601
5 9/4.4.08 Improvement of Nookalamma temple
street from cenema road to II with police
station.
120287
6 9/4.4.08 Laying of CC roads to heavy street near boar
wells in Kotha Kakinada, 7th
division.
267694
7 14/4.4.08 Urgent repairs to bloyars and roofens of market
shet in 21st division.
83236
8 16/4.4.08 Urgent repairs to colaps of the east side
compound wall of Vijya buried ground.
73988
9 18/4.4.08 Construction of pedestral and 1st land for Hon,
ble Ex-minister P. Padmanabha statue at
Kalpana centre.
80528
10 72/9.4.08 Providing gravel road for Rajiv Gruha Kalpa
colony in Sanjay nagar R.K.
364395
11 78/10.4.08 Laying of CC road to L shape road to
Bhashyam public school vide in
santhinagar of 7th
division.
392296
12 79/10.4.08 Formation of BT road in from of along
building in municipal corporation provi
311996
13 82/11.4.08 Providing heavy dust and gravel formation to
ayodhyanagar Rd No.2 in 9th
division.
207092
14 138/24.4.08 Construction of RCC culvert in 25th
division. 113670
15 139/24.4.08 Urgent repairs to pragati college road from
godarigunta road to DSP office road junction.
82354
219
16 420/27.6.08 Repairs to school at ladies club. 4385
17 412/27.6.08 Labour charges for material supply of
construction drain to north side nookalamma
temple.
5845
18 397/25.6.08 Construction of culvert existing drain to
extand gate to municipal corporation grills high
school indiranagar 5th division.
19078
19 284/2.6.08 Collection supply of materials for the work
laying of cc road at public
Road in Rajendra nagar of 4th
ward
173938
20 285/2.6.08 Labour charges for the work laying of CC road
at public litren south side at Rajendra nagar 44th
ward.
79435
21 286/2.6.08 Construction of cc drain to cross roads in
srinagar, 5th division.
86129
22 287/2.6.08 Laying of CC road in Iitulavasteet in 31st
division.
261855
23 1210/19.3.09 Laying of CC road and CC drain from
D.No.59-17-9 to 59-5-28.
71168
24 1200/16.3.09 Balance work completed in community hall at
Mallaya agraharam in 43rd
division.
49244
25 1201/16.3.09 Laying of CC road and construction of CC
drain in 17th
division
439973
26 1202/16.3.09 Urgent repairs to pragathi college road from
DSP office road junction to
82169
27 1207/19.3.09 Formation of 9th
division. 71106
28 1208/19.3.09 Construction of CC drain on south vide of
23rd
division.
83504
29 1209/19.3.09 Construction of CC drains on north side of
chikkulavari street from D.No.53.5.16 to
53.5.19 23rd
division.
87646
30 1211/19.3.09 Construction of CC drains in south side of
street from Ramalayam to yanam road 23rd
division.
86611
31 1212/20.3.09 Laying of CC roads and construction f CC
drain water drain on west side of 2nd
D.No.59.20.81
432030
32 1213/3.07 Construction of memorial at Yellavari yulu
amarao road reading room in G. Nagar in 43rd
division.
280282
33 1214/3.07 Construction of veturnery hospital building in
kunukulavari street of 21st division.
350501
34 1215/3.07 Laying of CC roads and construction of CC
drain and RCC culverts in ramana street in 18th
division.
418253
35 1233/26.3.09 Construction of CC cuver drains with RCC
culvert of Ashok nagar 49th
division.
82542
220
36 1236/30.3.09 Construction of CC drain and culvert at
Raghunaidu street west side from Rajari street s
29th
division.
39905
37 1237/30.3.09 Provident benefits to newly construction G+2 84564
38 661/4.9.08 Cost for enjoying SHP motor to PVP AE 4036
39 825/17.11.08 Urgent repairs to drain at Venki konda vari
street in 3rd
division.
32332
40 860/26.11.08 Improvements to Jawahar street from
Achutaramayya street towards surya rao peta.
635875
41 1147/3.3.09 Providing CC surface road and construction of
Cc drain in 30th
division.
528422
42 1159/3.3.09 Repairs to providing of CC road to in 38th
division.
2.27.709
43 110/3.3.09 Providing position walls and to new office
in municipal office.
110640
44 1167/3.3.09 Improvements to nookalamma street from
Jawahar street to up to for 42 division.
500000
45 1168/3.3.09 Laying of CC road from D.No.47.1.8/11 to
D.No.47 from medical public health 14h
division.
499808
46 1169/3.3.09 Construction of CC drain and RCC culvert in
Venkateswara Nagar of 12th
division.
274220
47 784/17.11.08 Providing painting to traffic 82154
48 785/17.11.08 Providing paint 51504
49 786/17.11.08 Construction of CC drain on north side of 1st
cross road in Sri rama sar 3rd
division.
47724
50 787/17.11.08 Laying of CC road to Bhashyam public school
north side 1st at santhinagar 7
th division.
89264
51 788/17.11.08 Providing sub grade for widening portion to
Nookalamma temple from prakasam steet.
497718
52 789/17.11.08 Formation of part ways into CC inter locking
tiles in Raja tank.
840259
53 790/17.11.08 Maintenance of B.T roads in JN poor hot line
process
223260
54 791/17.11.08 Construction of RCC slabs culvert and
construction of CC drains raising to old drains
in 26th
division.
56978
55 792/17.11.08 Laying of CC payment and construction of
CC drains in Kohtapeta market 36th
division.
740677
56 793/17.11.08 Construction of Parapet wall along the bund
on water side goat club from Ashram public
school
246959
57 794/17.11.08 Construction of compound wall to goat club
east side from prakruti chikitalaya 1st division.
246959
58 795/17.11.08 Construction of RCC retining wall and boating
sittings in back club.
325537
59 796/17.11.08 Repairs and maintenance to RCC slab culvert
and CC drainin 31st division.
154641
221
60 797/17.11.08 Laying of CC road from existence CC road
towards was as pullaari street in 43rd
division.
372677
61 798/17.11.08 Foration of gravel road along WFCCL road in
2nd
division.
169852
62 799/17.11.08 Construction of drains and culvert to Bhangarai
Naidu street from maintain
326879
63 880/17.11.08 Construction of sulabha toilets in
Jagannaikpur
307888
64 801/17.11.08 Repairs and maintenance to 34th
division 118814
65 802/17.11.08 Maintenance of maternity centre 2 roos
buildings at Rechelpeta.
225071
66 803/17.11.08 Fabrication and eventrus of goat club main
gate.
89281
67 804/17.11.08 Collection and supply of the materials for the
work to LB nagar main road from pithapuram
road in 44th
road
339555
68 805/17.11.08 Labour for the work urgent repairs to LB nagar
main road to MES road in at 44th
ward.
151388
69 806/17.11.08 Construciton of CC drains and RCC culvert in
Bhanuvari street near padmanabhanagar SN pur
in 24th
division.
453553
70 807/17.11.08 Laying of CC road surface and construction of
CC drains in sa 44th
division.
155930
71 808/17.11.08 Providing water bund jagannadha road in
ALlamraju nagar on 7th
division.
121504
72 809/17.11.08 Laying of CC roads to 1st road in Sivareddy
nagar in JNpuram at 22nd
division.
255323
73 810/17.11.08 COnstructionof track payments around the goat
club.
78390
74 878/17.11.08 Providing CC surface and construction of CC
drains in Ankannavari street in 30th
division.
200000
75 1018/21.1.08 Widening MC Louthern High school from
Santhi Bhavan junction upto Bulusu
Sambasivamurthy it in and opp
225851
76 1013/12.11.08 Construcitonof drainage facility in Kakinada
municipal corporation office.
231293
77 1002/9.11.08 Laying 100 MM thick surface to Jyothivani
sandal construction of 22 mm CC drain
modality it in 29th
division.
87819
78 1004/9.11.08 Construciton of compound wall to municipal
corporation elementary school south side at
ramarao peta in 41st division.
81594
79 995/2.1.09 Improvements of Burrial ground at Yallavari
cheruvu.
424086
80 946/2.1.09 Laying of CC roads CC drain storm water drain
on west side 1st road from B.No.59-20-6/3 in
2nd
division.
301605
81 947/2.1.09 Laying of CC road and construction of culvert
at vari street in 23rd
division.
323211
222
82 948/2.1.09 Laying 100 MM thick CC road from towards
east RU Jayaraju street in Innivasa nagar 50th
division
86905
83 950/2.1.09 Maintanance of toilets
Community toilets 32 division.
81891
84 951/2.1.09 Laying of 10 mm CC surface to street and
veeravani and construction of culverts in 39
division.
392715
85 953/2.1.09 Providing ornaments MC snill wall at sramika
pushakana wear temple.
364888
86 957/2.11.09 Wideling with foot path to pathnudu steet from
50 buildings in to venkatnagar in 3rd
division.
172367
87 958/2.11.09 Wideling with foot path to pathnudu steet from
50 buildings in to venkatnagar road in to MES
road in 3rd
division.
241013
88 959/2.11.09 Formationof gravel road along drain from
sivalayam temple to towards north in 42nd
division.
100190
89 960/2.11.09 Construciton of CC draina t RCC cross culvert
at industrial estate lalbahadur nagar
129860
90 961/2.11.09 Providing side bey one path work to municipal
college ones hostel north side road 4th
division.
51042
91 962/2.11.09 Formation of metal road from existing BT road
to totwards to went plant in
84129
92 963/2.11.09 Formation of sub megried low laying roads in
path and demmulapeta roads in 11th
division.
81935
93 964/2.11.09 Construciton of community hall at dairy form
centre SC area.
306448
94 965/2.11.09 Providing quantial roads at gandhinagar,
Bhanuvari street south cross road 24th
division.
85001
95 966/2.11.09 Proding roads to kuntha dulipete and
Bhanuvari street northside 3rd
division.
85544
96 967/2.11.09 Construciton of CC storm water drain along
MES road from ashok nagar.
88417
97 968/2.11.09 Construcitonof culvert at prasanthi college road
by the side of satya public school.
85114
98 969/2.11.09 Laying at CC road to culvert from
janmabhoomi park west side road in vallabhai
patel in 5th
division.
440588
99 970/2.11.09 Formation of metal road and construction of
CC drain in durgayya thota in 39 division.
231689
100 971/2.11.09 Construction of community toilets at Nagaraju
pet community hall in JN pur 26th
division.
360375
(A) Total Rs. 21054021
101 Vr. No Month / Year Amount Rs.
102 952 1/09 302067
103 83 21/08 51070
104 74 ” 354800
105 1 ” 200000
223
106 131 ” 114384
107 132 ” 124722
108 133 ” 122744
109 134 ” 118879
110 135 ” 111687
111 294 ” 22971
112 319 ” 293635
113 321 ” 55695
114 322 6/08 47725
115 323 ” 46725
116 396 ” 51000
117 630 9/08 112091
118 631 9/08 113305
119 632 ” 112586
120 633 ” 110249
121 634 ” 109439
122 672 ” 109889
123 673 ” 108091
124 674 ” 107192
125 675 ” 111238
126 775 11/08 61925
127 872 ” 224773
128 873 ” 218920
129 875 ” 155000
130 876 ” 145000
131 949 ” 78887
132 956 1/09 112988
133 955 ” 115472
134 1003 ” 298999
135 1170 3/09 98157
136 1198 ” 83160
137 1199 ” 142150
(B) Total Rs. 4747615
(Para No.54 & 55 of MC, Kakinada AR for 2008-09)
11.7 MC, KURNOOL - VACANT LAND TAX – DEMAND REGISTER AND
CONNECTED FILES NOT PRODUCED
During the course of audit on the accounts of VLT – on verification challan registers
for 2008-09, an amount of Rs.23,20,384/- was collected under Vacant Land Tax and
the same was adjusted in chitta.
As per Hyderabad Municipal Corporation Act 1955, Vacant Land Tax
has to be collected at the rate of 0.5% on the registration value of the Land from the
date of layout or in the absence of layout from the year 1994-95 to the date of
construction of building. But, the vacant land tax registers and connected files
and documents were not produced to audit for verification inspite of half margin
letters issued.
224
In the absence of the above said files, Registers and documents, the
correctness of the amount of Rs.23,20,384/- collected during 2008-09 cannot be
certified in Audit. Hence action would need to be taken to produce the above said
records to audit for verification.
(Para No.48 of MC, Kurnool AR for 2008-09)
11.9 KURNOOL - PUBLIC HEALTH PURCHASE OF SANITATION ITEMS
FOR USAGE OF PUBLIC HEALTH SECTION CONNECTED SANCTIONED
PROCEEDINGS STOCK REGISTER QUOTATIONS NOT PRODUCED TO
AUDIT Rs.3,44,441/-.
During the course of audit as verified from the cash book an Amount of
Rs.3,44,441/- was drawn through vouchers which were noted against each (Details
mentioned in original para) in selected months and paid to various agencies for
purchase of sanitation it material.
But the connected quotation file sanctioned proceedings and stock and
issue register were not produced to audit.
In the absence of the same, the correctness of the payment made and
utilization, balance of material could not be verified in audit.
Hence the amount was held under objection. Action would need to be taken to
produce the same to audit for verification.
(Para No. 58 of MC, Kurnool AR for 2008-09)
12. MIS-APPROPRIATIONS
A consolidated statement of audit objections on misappropriations noticed in
the audit is annexed vide statement No.3 (2). A total number of 19 cases involving an
amount of Rs.2.50 lakhs were pointed out in the relevant ARs.
Cases of misappropriations of money noticed in audit were pointed out in the
Audit Reports concerned. A few of such cases are reproduced below.
12.1 GVMC, VISKHAPATNAM - RECEIPTS - MISAPPROPRIATION OF
CERTAIN RECEIPTS PAID BY THE TAX PAYERS IN SAUKARYAM
SECTION - NEEDS ENQUIRY AND APPROPRIATE CRIMINAL ACTION
ON THE PERSONS RESPONSIBLE - RS. 3,30,45,264/-.
As verified from the verification Report furnished by the Dist Audit Officer,
State Audit, Visakhapatnam, it was noticed that the collections received in the
Sowkaryam centre were not fully remitted into the Bank account. The operator who
was in-charge of the collection counter has manipulated the account figures generated
in the Bank Scroll duly entering into the computer server by manipulating the
computer software and changing the figures has misappropriated an amount of Rs.
3,30,45,264/-.
225
The details that could be analyzed from the computer back-up data for the
period from 2003-2004 to 2010-2011 are as detailed here under. The data for the
period from 2000-2001 to 2002-2003 could not verified and analyzed as the
information was not properly stored. The year wise, Head Wise and User ID wise
differences between accounts figures and Revenue figures are arrived and elucidated
in the statements enclosed for the period from 2003-04 to 20011-12. The total amount
tentatively arrived, that was found to be misappropriated was Rs.3,30,45,264/-
Statement Showing Year Wise And Head Wise Differences
Property Tax Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012 1039478 87586 951892
2010-2011 15086149 1319244 13766905
2009-2010 7243791 827966 6415825
2008-2009 261429 107055 154374
2007-2008 3122768 2140351 982417
2006-2007 6393031 3390288 3002743
2005-2006 165575 82585 82990
2004-2005 4573775 3961287 612488
2003-2004 115371 99572 15799
Total 38001367 12015934 25985433
Vacant Land Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012 141286 22786 118500
2010-2011 1712909 344631 1368278
2009-2010 863481 119169 744312
2008-2009 39998 10698 29300
Total 2757674 497284 2260390
Bulk Semi Bulk Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012 143549 17234 126315
2010-2011 2127032 168125 1958907
2009-2010 355817 64716 291101
Total 2626398 250075 2376323
Shop lease rent Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012 29834 5566 24268
2010-2011 1005225 165227 839998
2009-2010 507670 139002 368668
Total 1542729 309795 1232934
TAP Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012
2010-2011 3060 1440 1620
2009-2010
226
2008-2009 43400 31536 11864
Total 46460 32976 13484
D&O Trade Transactions
Year Revenue Amount Accounts Amount Difference Amount
2011-2012 42140 10140 32000
2010-2011 1146880 127180 1019700
2009-2010 156190 31190 125000
Total 1345210 168510 1176700
ABSTRACT
Taxes Revenue Amount Accounts Amount Difference Amount
Property Taxes 38001367 12015934 25985433
Vacant Land
Transcations 2757674 497284 2260390
Bulk Semi Bulk
Transactions 2626398 250075 2376323
Shop lease rent
Transactions 1542729 309795 1232934
TAP Transactions 46460 32976 13484
D&O Trade
Transactions 1345210 168510 1176700
Grand Total 46319838 13274574 33045264
In some cases, as detailed in the Statements enclosed in respect of Bulk Water
supply, the original values i.e pre-modified values could not be retrieved from the
data. The collection figures could not be compared due to the deletion of actual
demand values from the system. The difference amount of Rs.3,30,45,264/- can be
construed as embezzled by the staff who were involved in the process of collection
and remittance of the taxes to the bank. Effective steps may be taken not to ensure
that such security lapses in the software being used by GVMC are plugged
immediately and to ensure that there are no security lapses in the software being used,
which will enable people in committing such frauds.
The computer soft ware and other applications are now in operation in GVMC
for various purposes Viz property Tax, Water Tax, D&O Trades, Building license fee
and other receipts were developed long back. The said applications through which all
the operations were carried out was not equipped with adequate security features. The
system figures have never been reconciled and cross checked with other data available
by the revenue authorities. Despite computerisation, there is a need for continuous
reconciliation of collection figures with bank pass book and with that of revenue
figures on a daily basis. But the revenue authorities have not made any effort to verify
the amounts collected under different heads. The revenue authorities have totally
depended on the computer data and in the absence of periodical reconciliation and
blind & total reliance put on the data given by the person handling sensitive areas
might have paved the way for embezzlement of GVMC funds as there were no
adequate cross checks or proper internal controls.
227
The account section is supposed to verify the correctness of the accounts
figures with that of revenue figures and reconcile with bank statements and then only
finalize the annual account. But the account section has not cross checked the
collection figures with revenue data available in the system. The amount reflected in
the computer data has been taken as correct and it is taken into account and shown as
receipts under different heads. The lack of coordination of various sections has given
wide scope to perpetuate such fraud and gone un-noticed for such long periods of
time.
In Saukaryam centre, the concerned in-charge has never made any effort to verify the
bank scroll with the individual figures with office copy of receipts generated in the
system which was issued to the tax payer. The in-charge has simply verified total
figure in bank scroll pay in slip amount to be remitted into bank account in the centre
premises itself. Had they verified the said receipts with bank scroll, the manipulation
of the bank scroll figures would have been detected earlier and the loss caused to the
corporation funds would have been averted. Thus there was a gross negligence of duty
by the in-charge of Saukaryam centre. It is incomprehensible as to why the
supervisory officials have been indifferent in discharging their minimum supervisory
checks. It is Sine-quo-non to bring such serious matter to the notice of the authorities-
concerned including Commissioner. The responsibility for this loss caused to the
funds of GVMC lies with the section authorities, besides the persons directly involved
in the defalcation/fraud.
Further it is also informed that the verification of the said collection amounts
and revenue figures are not exhaustive, but still inclusive as the verification was
limited to the extent of data that was available. Hence a detailed inquiry may be
ordered to arrive at the exact loss caused to the Municipal Corporation.
Hence, the matter is brought to the notice of the Government as per Article
294 of A.P Financial Code Volume I and as per G.O.Ms. No. 25 Finance Department
(services Dt: 3-2-2004). As per the instructions of the Government in the above G.O
the Commissioner is requested to lodge a police compliant against the responsible
persons for the loss caused to the Municipal Corporation. Effective steps need to be
taken to recover the loss caused to the Municipal Corporation. To avoid further
recurrence of this kind the following measures are to be taken to plug the leakage of
various revenues receivable by the Corporation.
1. To rectify the defects in the software which rendered the
defalcation/emblazement of cash possible
2. To ensure information security of collection mechanism and the
software by getting information systems audit done periodically.
3. To recover the embezzled amounts of Rs.3,30,45,264/- from the
responsible persons by following due process and
4. To take administrative action against the persons who indulged in
defalcation/embezzlement in collection of cash and its remittance in the bank.
(Para Number : 68 of GVMC, Visakhapatnam AR for 2008-09)
228
13. EXCESS PAYMENTS
It was observed in audit that in several cases, excess payments were made due
to either.
(i) Incorrect calculations or
(j) Excess totaling in Bills or
(k) Admission of inadmissible claims or
(l) Lack of knowledge of Government instructions.
A Consolidated Statement No.3 (2) of showing audit objections on Excess
paynebts is appended to the Report from which it could be seen that an amount of Rs.
74 lakhs was pointed out in 74 Audit Paras.
13.2 MC, GUNTUR - ENGINEERING SECTION ESTABLISHMENT – SRI
KSHATRI BABU, NON P.H. WORKER – SANCTION OF EXTRA
ORDINARY LEAVE – PERIODICAL INCREMENTS AND S.A.P.P. I NOT
POSTPONED – NEEDS REVISION AND RECOVERY :
As per page 19 of service register volume I of Sri K. Babu, Non P.H., worker
was sanctioned extra ordinary leave for 117 days i.e., from 1-8-02 to 25-11-02. But,
the periodical increments and the appointment to S.A.P.P. I post were not postponed
to the extent of E.O.L., period. The periodical increments sanctioned and
appointment to S.A.P.P. I post may be revised as follows.
Pay Admitted Pay admissible
1-5-02 3650/2650-4850 1-5-02 3650/2650-4850
1-5-03 3750
117 days of E.O.L.)
1-8-03 3750 (after postponing 1-5-04
3850
1-8-04 3850
1-5-05 3950 1-8-05 3950
R.S.P., 2005 R.S.P., 2005
1-7-03 5605/3950-8815 1-7-03 5470/3950-8815
1-5-04 5750 1-8-03 5605
1-5-05 5895 1-8-04 5750
1-5-06 6040 1-8-05 5895
1-5-07 6195 1-8-06 6040
1-5-08 6350 1-8-07 6195
1-8-08 6350
S.A.P.P. I S.A.P.P. I (after postponing EOL)
3-5-08 6505/4050-9050 27-8-08 6505/4050-9050
1-5-09 6675 1-8-09 6675
The excess payment made to the individual may be worked out and recovered
from the responsible persons.
(Para No.90 of Engg. Section, MC, Guntur AR for 2008-09)
229
14. WASTEFUL EXPENDITURE
The canons of financial propriety envisaged in the Andhra Pradesh Financial
Code are sacrosanct for all Government Authorities entrusted with authorizing or
incurring of expenditure from public funds. They are expected under Articles 3 to
exercise the same diligence and care in expending public money under their control as
persons of ordinary prudence would exercise in respect of their own money.
Government have issued instructions through various orders and also incorporated in
the statutes of Local Bodies the various items on which public money can be
expended and the principles to be adhered to while expending on such items. Yet, it
was noticed in audit that the funds of Municipal Corporations were several times
incurred without adhering to the laid down principles leading to the wasteful
expenditure of public money. All the cases of such wasteful expenditure observed in
the audit of Municipal Corporations for the year 2008-09 were expenditures that were
avoidable, extraordinary and lacked proper planning.
A Consolidated Statement No.3 (3) of showing audit objections on Wasteful
Expenditure is appended to the Report from which it could be seen that an amount of
Rs.2.06 lakhs was pointed out in 5 Audit Paras.
15. INSTANCES OF CASES UNACCOUNTED FOR
CASH/STORES
Several instances of Cash / Stores unaccounted for were noticed, a consolidated
statement of cases of unaccounted for cash / stores a Consolidated Statement of
Instances of cases unaccounted for is annexed in the Statement No.3 (3) in which 8
paras were raised.
16. PENDENCY OF UTILIZATION CERTIFICATES
According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I
read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, it is the responsibility of
the Grant Receiving Authority to send the Utilization Certificates in the proforma
prescribed duly certified by the District Audit Officer, State Audit Department. But
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, Government have
among others prescribed the pre-condition under para 12 of G.O. for further drawal of
Funds from April, 2002 onwards by the Local Bodies / Public Sector Enterprises,
Autonomous Bodies and other Grant-in-Aid institutions.
“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.”
230
As the aforesaid Government orders are not being observed by the Executive
Authorities resulted in heavy Pendency of Utilization Certificates to be furnished to
the Grant Releasing Authorities. Such cases are reported in the ARs of Municipal
Corporations shown in the statement appended herewith.
A Consolidated Statement of cases of Pendency of Utilization Certificates is
appended in Statement No.3 (3) to the Report from which it could be seen that an
amount of Rs.0.23 lakhs was pointed out in 3 audit paras.
16.1 GVMC, VISAKHAPATNAM - NON SUBMISSION OF UTILISATION
CERTIFICATES
The utilization certificates in respect of the following Grants released during
the year 2008-2009 have not been furnished to audit for verification and transmission
to the authorities concerned according to Article - 211 - A @ of the A.P. Financial
Code Vol - I, it is the responsibility of the Grant receiving authorities to send the
utilization certificate in the Proforma prescribed duly setting the same certified by
the District Audit Officer, State Audit. But the utilization certificates have not been
furnished even after completion of the audit.
Name of the
Grant
UCs due to be
submitted
UCs submitted Balance of UCs to be
submitted
No Amount No Amount No Amount
NOAP 1 170316125 - - 1 170316125
Sec. Education 1 41058389 - - 1 41058389
Ele. Education 1 48492850 - - 1 48492850
M.P. Lads 1 5075000 - 1 5075000
ACDP 1 550000 - - 1 550000
APUSP 1 4850000 - - 1 4850000
JNNURM 1 623071140 - - 1 623071140
MEPMA 1 22526017 - - 1 22526017
Solid Waste
Management
1 155123000 - - 1 155123000
JNNURM(
water supply)
1 613339997 - - 1 613339997
(Para No. 89 of GVMC, Visakhapatnam AR for 2008-09)
16.2 KURNOOL - NON – SUB MISSION OF UTILIZATION CERTIFICATES
According to article 22 (A) of the Andhra Pradesh financial code volu.
I it is the responsibility of the grants recovering authority to furnish utilization
certificates to the grants releasing authority . The utilization certificates would need
to be furnished to the District Audit Officer, State Audit, Kurnool in the proforma
prescribed for counter signature. But the utilization certificates for no accounts were
furnished to audit for verification of the authority concerned.
231
Name of the Scheme Grant Expenditure
Tugabdra Puskaralu 44994636 40786128
STSRG 642706 979798
NOAP 40335763 43133650
DFID 0 1635819
ILCS 1654996 3990832
CC Roads & Drans 9356287 8710137
TFC 15365143.61 19285210
TOTAL 112349531.61 118521574
(Para No. 89 of MC, Kurnool AR for 2008-09)
17. SURCHARGE CERTIFICATES RECOVERY PENDING
-Nil-
18. OTHERS
A Consolidated Statement No.3 (3) showing audit objections on others is
appended to the Report from which it could be seen that an amount of Rs.53.04 lakhs
was pointed out in 126 Audit Paras .
18.1 GHMC CIRCLE-IV SARDAR MAHAL TAX SECTION - PROPERTY
TAX COLLECTION NOT ACCOUNTED IN THE BOOKS OF ACCOUNTS-
NEEDS ADJUSTEMENT –Rs.107967/-
On verification the following amounts collected by the bill collectors through
cash and cheques are entered in the list of collection of Taxes But the following
amounts collected for the year 2008-09 through receipts books shown against each are
not entered in the list provided by the authorities concerned.
Sl
No.
Name of the B. C.
Code Book No. Receipt No.
Amount
(Rs.)
1 112 1661 1 3677
2 121 4150 42 1440
3 108 4151 11to 18 &
24,25
23276
4 136 4155 19 2031
5 011 1529 75 1050
6 116 88 1 to 7 7995
7 1522 85 578
8 1549 20 3360
9 108 4151 87 61830
10 5436 1 2730
Total 107967
232
In the absence of the above information the correctness of the amounts
collected by the bill Collector could not be verified.
Therefore immediate action would need to be taken to get adjustment
into GHMC books of accounts under intimation to Audit.
18.2 GHMC, ALWAL - REGISTER OF IMMOVABLE PROPERTY NOT
MAINTAINED.
a)The Register of immovable property, register of roads etc., was not
maintained and produced during the audit for verification whether the roads on which
the expenditure as incurred were actually belonged to the Municipal or not.
b)The register of land and building was also not produced to audit to verify the
details of land acquisition and in case of donation if any, the related title deeds are not
made available.
In the absence of the above, it could not be verified in the audit whether the
expenditure incurred is admissible or not. The consequential loss if any will have to
be made good by affecting recoveries from the person responsible.
(Para No.14 (b) of GHMC, Alwal Circle AR for 2008-09)
18.3 LB NAGAR - BUILDING PERMISSION FEE – BETTERMENT
CHARGES AND DEVELOPMENT CHARGES ON BUILT UP AREA NOT
COLLECTED – LOSS CAUSED TO THE INSTITUTION – NEEDS
RECOVERFY – Rs.1,72,475/-
During the course of audit on Building Permit Files, it was noticed that the
following cases, the G.H.M.C. authorities failed to collect the Betterment Charges and
Development Charges which resulted loss to the institution as detailed below:
Sl.
No
.;
Name of the
individual
Permit No. & Dt. Betterment
Charges
Development
Charges for
Plinth Area
Developme
nt Charges
for Open
Area
TOTAL
1 G. Rangamannar G3/DA/37/2008
Dt.10.09.2008
270
S.Mx100 =
27,000
270 S.Mx100 =
27,000
74 S.M. x
75 = 5550
59550
2 G. Sreenivas G3/BA/38/20085
dt.10.09.2008
270
S.Mx100 =
27,000
270 S.Mx100 =
27,000
74 S.M. x
75 = 5550
59550
3 M. Prapulla Bhai G3/BA/41/2008
dt.15.09.2008
238
S.Mx100 =
23,800
238 S.Mx100 =
23,800
77 S.M. x
75 = 5775
53375
TOTAL 172475
Immediate action needs to be taken to collect the less collected amount
from the concerned person or persons and remitted to the G.H.MC. funds under
intimation to audit.
(Para No. 38 of GHMC, LB Nagar Circle AR for 2008-09)
233
18.4 MC, GUNTUR - WORKS – M. BOOKS – RECORDING & CHECK
MEASUREMENT – INCONSISTENT:
Name of the work: “providing gravel road in A.T. Agraharam 10th
line north side
cross road in Division 28”
Estimate: Rs.95,000/-
M.B. No.91/05-06
Technical sanction No.1498/2005-06 of M.E., Municipal Corporation
Vr.No.550/5-08 – final payment Rs.27,599/-
As seen from the M. Book from page No.1 to 8, the collection and supply of
gravel was recorded by the engineer on 18-3-2006. At page No.1, the D.E.E. check
measured the quantity of collection recorded from page No.1 to 8 on 18-3-2006.
From page No.9 to 11 of M. Book the spreading of gravel was recorded by the
engineer on 16-3-2006 as the date of measurement of spreading was 16-3-2006. The
same was check measured by the DEE on 17-3-2006. (vide at page No.9 the record of
check measurement from page No.9 to 11 was recorded by the DEE himself)
As such, it is clear that the spreading was recorded and check
measured before collection of gravel which was impossible. Loss caused if any due to
the above lapse would need to be worked out and recovered form the persons
responsible.
(Para No.117 of MC, Guntur AR for 2008-09)
18.5 MC, KURNOOL - VERIFICATION PROPERTY TAX REMITTANCE –
PARTLY VISIBLE OF THE ENTRIES IN THE REMITTEE CHALLANS DUE
TO FLOODS.
On verification of the PT remittance challan with reference to
cash book and Treasury Passbook it was noticed that amounts mentioned in the
challans, date of remitted and signature of the person who was remitted the amount
and seal affixed by the Bank authorities and signature of the Bank authority and
figures mentioned of the Bank authorities were all are not clearly visible for
verification of the correctness of the amounts remitted during the year 2008-09 due to
floods in Kurnool in 2nd
& 3rd
October 2009.
In the absence of the above if any loss caused due to non visible of the
amount mentioned in the challan would need to be made good from the person or
persons responsible.
(Para No.53 of MC, Kurnool AR for 2008-09)
19. DDS / CHEQUES RECEIVED BUT NOT REALIZED
WITHIN TIME
Demand Drafts and Cheques received in payment of money due to the
Municipalities are to be entered in a Register of Demand Drafts and Cheques
Received and should be sent to the Banks for realization immediately. In the
fallowing cases Demand Drafts received were kept in the files and some of the
234
Demand Drafts were sent to the issuing Banks for revalidation as they had
become state due to their non presentation within their validity period, But
some of them are not received back duly revalidated by the Banks concerned
till the close of Audit.
A statement showing such 2 instances involving Rs.3673.64 lakhs
were pointed out in the audit for the year 2008-09 is appended as Statement
No. 3 (3).
DATE: 12-03-2012
HYDERABAD DIRECTOR
STATE AUDIT
A.P., HYDERABAD.
235
236
STATEMENT No. 1
STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT
OF MUNICIPAL CORPORATIONS FOR THE YEAR 2008-09
Sl.
No.
NAME OF
THE
DISTRICT
DEMAND AS ON
01-04-2009
AUDIT
COMPLETED AS
ON 31-12-2011
BALANCE AS ON
31-12-2011
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 Visakhapatnam 18 1 0 1 18 0
2 Kakinada 0 1 0 1 0 0
3 Rajamundry 2 1 0 2 1
4 Eluru 2 1 0 2 1
5 Vijayawada 2 1 0 2 1
6 Guntur 0 1 0 1 0 0
7 Nellore 1 1 0 1 1
8 Tirupati 0 1 0 1 0 0
9 Anantapur 2 1 0 2 1
10 Kadapa 1 1 0 1 1
11 Kurnool 4 1 0 1 4 0
12 Warangal 0 1 0 1 0 0
13 Karimnagar 0 1 0 0 1
14 Nizamabad 2 1 0 2 1
15 GHMC 18 1 0 1 18 0
TOTAL: 52 15 0 7 52 8
237
STATEMENT No.2 (1) 1
CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS
FOR THE YEAR 2008-09
Rs.in lakhs
Sl.
No.
Name of the
Mpl. Corpn.
General Account Lighting A/c Ele. Education A/c W.S & Drainage A/c Town Planning A/c
Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment
1 Tirupati 2165.45 2842.27 252.60 249.61 455.82 253.74 48.37529 471.68 1.85784 28.13
2 Kakinada 3933.94 3243.63 265.38 235.32 547.29 313.79 685.1577 710.22 243.925 114.62
3 Guntur 5099.67 4123.39 130.53 471.88 0.00 19.07 692.5542 1242.64 1493.62 94.70
4 Kurnool 2201.29
1854.32 0.00
195.57 601.73
581.81 308.98
319.97 93.54
33.53
5 GHMC Head wise detailes mentioned in Statement No.2 (2)
6 GVMC 22014.44 2870.95 0.30 1983.34 895.51 1141.00 15859.28 24261.54 6428.15 276.89
7 Warangal 3948.32 3417.15 1.15 540.22 0.00 0.00 784.7033 668.20 314.211 74.33
TOTAL: 39363.12 18351.72 649.95 3675.93 2500.36 2309.41 18379.05 27674.24 8575.30 622.20
238
STATEMENT No.2 (1) 2
CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS
FOR THE YEAR 2008-09
Rs.in lakhs
Sl.
No.
Name of
the Mpl.
Corpn.
Special Funds Deposits & Adv. Welfare Schemes City Engineering City Project UCD Project
Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment Receipts Payment
1 Tirupati 0 0.00 526.7343 618.16 0 0.00 0 0.00 0 0.00 0 0.00
2 Kakinada 0 0.00 0 3136.47 0 0.00 0 0.00 0 0.00 0 0.00
3 Guntur 1695.45 801.86 216.0772 1015.47 828.972 785.84 0 0.00 0 0.00 0 0.00
4 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 GHMC Head wise detailes mentioned in Statement No. 2 (2)
6 GVMC 0 0.00 11806.01 5984.63 0 0.00 1786.019 8901.16 6244.92 23880.12 1929.84 3022.36
7 Warangal 0 0.00 844.202 606.80 0 0.00 0 0.00 0 0.00 0 0.00
TOTAL: 1695.45 801.86 13393.02 11361.52 828.97 785.84 1786.02 8901.16 6244.92 23880.12 1929.84 3022.36
239
STATEMENT No.2 (1) 3
CONSOLIDATED CATEGORY WISE RECEIPTS & PAYMENTS OF MUNICIPAL CORPORATIONS FOR THE
YEAR 2008-09
Rs.in lakhs
Sl.
No.
Name of
the Mpl.
Corpn.
Parks Leisure & Cemetries Public Health (Utility) Sanitation Fund Total
Receipts Payment Receipts Payment Receipts Payment Receipts Payment
1 Tirupati 0 0.00 0 0.00 0 0.00 3450.84 4463.58
2 Kakinada 0 0.00 0 0.00 12485.726 7754.05 18161.43 15508.10
3 Guntur 0 0.00 0 0.00 0 0.00 10156.88 8554.85
4 Kurnool 0.00
0.00 0.00
0.00 0.00
0.00 3205.54 2985.20
5 GHMC Head wise details mentioned in Statement No. 2 (2)
156205.31 196075.79
6 GVMC 0.25416 176.55 1689.585 6064.79 0 0.00 68654.30 78563.33
7 Warangal 0 0.00 0 0.00 0 0.00 5892.59 5306.71
TOTAL: 0.25 176.55 1689.58 6064.79 12485.73 7754.05 265726.88 311457.55
240
STATEMENT No. 2 (2)
GREATER HYDERABAD MUNICIPAL CORPORATION
(Rupees in Lakhs)
REVENUE INCOME BY
ACCCOUNT
REVENUE EXPENDITURE BY
ACCCOUNT
A B C D E F
2008-09 2008-09
1 Tax Revenues 36954.72 1 Establishment Expenses 23303.10
2 Assigned Revenues 17528.11 2 Administrative Expenses 2203.05
3
Rental Income from
Municipal Properties 801.65 3
Operations and
Maintenance 61937.33
4 Fees and User Charges 74395.45 4 Interest & Finance Charges 2236.88
5 Sales & Hire Charges 1381.15 5 Programme Expenses 1885.30
6 Revenue Grants 234.57
7 Income From Investments 5310.87
8 Interets Earned 0.00
9 Other Income 2602.06
Grand Total: 1,39,208.58 Grand Total: 91,565.66
241
STATEMENT No. 2 (2)
GREATER HYDERABAD MUNICIPAL CORPORATION (Rupees in Lakhs)
CAPITAL RECEIPTS BY
ACCCOUNT
CAPITAL EXPENDITURE BY
ACCCOUNT
A B C D E F
2008-09 2008-09
1
Revenue Transfers for Capital
Works 0.00 1
Bridges Fly-overs & Sub-
Ways 1849.60
2 Plan Grants and Contributions 16996.73 2 Buildings 2135.31
3 Borrowings 0.00 3 Furniture & Fixtures 143.66
4 Housing 14962.64
5 Land & Land Improvements 12031.72
6 Machinery & Wquipment 675.90
7 Muliti- Modal Transport 0.31
8 Other Works 11.96
9 Roads & Pavements 47301.37
10 Storm Water Drainage 12227.58
11 Street Lighting 8573.01
12 Vehicles 867.84
13 Water Supply & Sewerage 3729.23
Grand Total: 16996.73 Grand Total: 104510.13
242
STATEMENT No. 3
CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT
OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED
FOR THE YEAR 2008-09 (MUNICIPAL CORPORATION)
Rs. In lakhs.
Sl.
No. NAME OF THE CATEGORY No. AMOUNT
1 Variation in Account Figures 17 99.23
2 Excess Utilisation of Grants / Funds 8 1151.82
3 Diversion of Grants / Funds 6 20.40
4 Non-utilisation of grants before the lapsable date 3 35.70
5 Mis-utilisation of Grants / Funds 2 1.33
6 Non- utilisation of Earmarked Funds 5 0.00
7 Non-collection of dues 70 19215.51
8 Advances pending adjsutemnt 23 233.19
9 Violation of Rules 189 10870.49
10 Non-remittance of the Deductions / Recoveries
from the Vouchers / Pay Bills Contingent Bills 47 683.95
11 Non Production of Records 250 8332.38
12 Mis-appropriations 19 2.50
13 Excess Payments 74 74.01
14 Wasteful Expenditure 5 2.06
15 Instances of cases of unaccounted for cash /
stores 8 0.00
16 Pendency of Utilisation Certificates 3 0.24
17 Surcharges Certificates- Recovery Pending 0 0.00
18 Others 126 53.05
19 D.D. Cheques received but not realised with in
time 2 3673.64
Total: 857 44449.49
243
STATEMENT 3 (1)
STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
Rs. In lakhs.
Sl.
No.
NAME OF
THE
DISTRICT
VARIATION IN
ACCOUNT
FIGURES
EXCESS
UTILISATION OF
GRAMTES/FUNDS
DIVERSION OF
GRANTS/FUNDS
NON-
UTILISATION
OF GRANTS
BEFORE THE
LASPSABLE
DATE
MIS-
UTILISATION
OF
GRANTS/FUNDS
NON-
UTILISATION
OF
EARMARKED
FUNDS
NON-
COLLECTION OF
DUES
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Tirupati
0 0 0 0 0 0 0 0 0 0 0 0 13 1181.48
2 Kakinada
1 3.08 2 0 0 0 0 0 0 0 0 0 0 0.00
3 Guntur
0 0.00 2 0 0 0 0 0 0 0 1 0 14 262.98
4 Kurnool
1 0.00 0 0 1 6.00 0 0 0 0 0 0 12 142.83
5 GHMC
5 0.00 1 0 0 0.00 0 0 1 0 3 0 9 17430.70
6 GVMC
3 0.00 1 0 2 0.00 2 0 0 0 0 0 17 81.51
7 Warangal
7 96.15 2 1151.8233 3 14.40 1 35.70 1 1.33 1 0 5 116.02
Total 17 99.23 8 1151.82 6 20.40 3 35.70 2 1.33 5 0 70 19215.51
244
STATEMENT 3 (2)
STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
Rs. In lakhs.
Sl.
No.
NAME OF THE
DISTRICT
ADVANCES
PENDING
ADJUSTMENT
VIOLATION OF
RULES
NON REMITTANCE
OF DEDUCTION
FROM WORK
BILLS/PAY
BILLS/CONTINGENT
BILLS ETC.
NON-PRODUCTION
OF RECORDS
MIS-
APPROPRIATIONS
EXCESS
PAYMENTS
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Tirupati
1 0.00 30 69.15 1 8.53 17 10.88 10 0.97 11 0.95
2 Kakinada
13 0.80 17 10.40 12 24.59 32 454.29 4 0.07 0 0.00
3 Guntur
1 161.91 22 3.52 3 176.96 39 1954.77 0 0.00 21 8.10
4 Kurnool
0 0.00 17 40.68 1 89.84 70 881.47 1 0.00 0 0.00
5 GHMC
5 2.92 80 10698.35 21 252.30 68 4246.97 3 1.46 28 4.93
6 GVMC
2 39.87 18 0.00 3 0.00 11 0.00 1 0.00 3 59.45
7 Warangal
1 27.68 5 48.38 6 131.73 13 784.00 0 0.00 11 0.58
Total 23 233.19 189 10870.49 47 683.95 250 8332.38 19 2.50 74 74.01
245
STATEMENT 3 (3)
STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
Rs. In lakhs.
Sl.
No.
NAME OF THE
DISTRICT
WASTEFUL
EXPENDITURE
INSTANCES
OF CASES OF
UNACCOUNTED
FOR CASH /
STORES
PENDENCY
OF
UTILISATION
CERTIFICATES
SURCHARGES
CERTIFICATES
- RECOVERY
PENDING
OTHERS
D.D. /
CHEQUES
RECEIVED BUT
NOT REALISED
WITH IN TIME
Total
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Tirupati
1 0.08 5 0 0 0 0 0 0 0.00 0 0.00 89 1272.03
2 Kakinada
0 0.00 0 0 0 0 0 0 0 0.00 0 0.00 81 493.23
3 Guntur
3 1.20 2 0 1 0 0 0 25 27.67 0 0.00 134 2597.12
4 Kurnool
0 0.00 0 0 1 0 0 0 12 0.69 0 0.00 116 1161.52
5 GHMC
1 0.79 1 0 0 0 0 0 53 18.30 2 3673.64 281 36330.34
6 GVMC
0 0.00 0 0 1 0.24 0 0 17 6.39 0 0.00 81 187.45
7 Warangal
0 0.00 0 0 0 0 0 0 19 0.00 0 0 75 2407.80
Total 5 2.06 8 0 3 0.24 0 0 126 53.05 2 3673.64 857 44449.49
246
PART-III
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND
REVIEW REPORT ON THE
ACCOUNTS OF
MUNICIPAL ITIES
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
247
248
CONTENTS
STATEMENT No.
DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF MUNICIPALITIES FOR THE
YEAR 2008-09
PAGE No.
1 Introductions and a few selected audit objections of Municipalities
category wise 250-310
1 Statement showing Dist wise Status of Audit of Municipalities for the year 2008-09
311
2 1 & 2 . Consolidated Statement of fund wise Receipts & Payments of Municipalities for the year 2008-09
312-314
3 3 to 3 (3) 2 Consolidated Statement of Grants Receipts and Payments Fund wise in Municipalities for the year 2008-09
315-323
4. 4 to 4 (2) 3 Statement showing the consolidated audit objections
raised during the year 2008-09 324-328
249
CONSOLIDATED AUDIT AND REVIEW REPORT ON THE
ACCOUNTS OF MUNICIPALITIES FOR THE YEAR 2008-09
INTRODUCTION
1.1 Under the State Audit Act, 1989 the Director of State Audit, A.P., Hyderabad
is made in charge of the audit of the funds of local authorities and other
authorities specified in the Schedule prescribed in the said Act. By virtue of
this legal position the Director of State Audit, A.P., Hyderabad is the Auditor
for the accounts of the Municipalities constituted in the State of Andhra
Pradesh this excludes Municipal Corporations. The Number of Municipalities
for the year 2008-09 is 104.
1.2 The Department has got 6 (six) Zonal Offices and District Offices in all the
Districts. The Regional Deputy Directors head the Zonal Offices, and the
District Audit Officer, State Audit heads the District Offices.
1.3 The Department conducts post audit of the Municipalities Audit Reports
consisting of defects noticed in audit are issued to the Commissioners of the
Municipality concerned who has to take action for rectifying the defects
pointed out in the Audit Report.
1.5 Under the State Audit Act, the Director is vested with the power of
disallowing every item of the expenditure incurred contrary to the law and
surcharge the same on the person incurring or authorizing the incurring of
such expenditure and may charge against any person responsible there for, the
amount of any deficiency, loss or unprofitable out lay occasioned by the
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 2.5 The State Audit Department being one of the limbs of the Government of
Andhra Pradesh verifies the following aspects during the course of post audit
of the Municipalities.
Whether the amounts collected like taxes, fees etc., by the Municipal Councils
were properly accounted for with full details in the books of accounts of the
Municipality concerned.
Whether adequate care has been taken in periodical checking up of the funds
with Treasury or Bank.
Whether expenditure incurred is provided for in the Budget of the Municipal
Council and duly sanctioned by the competent authority under the relevant
rules and executive instructions issued by the Government.
Whether funds are utilized only for the permitted purposes prescribed under
the A.P. Municipalities Act 1965 Act / Rules.
Whether the procedure prescribed by Government in incurring the
expenditure/payments made is properly followed and accounted for with due
classification in the books of accounts of the Municipality.
Whether 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.
2.6 The Department also conducts propriety audit of the expenditure incurred.
250
GRANTS RECEIVED DURING THE YEAR BY THE MUNICIPAL
COUNCILS.
3.3 The Municipal Councils are provided grants by the State / Central
Governments to implement the schemes entrusted to them and also for over all
development of the area under their jurisdiction.
3.4 The Receipts and Payments are inclusive of the various Grants received from
Central and State Governments during the year 2008-09 by the Municipal
Councils. The various Grants received by Municipal Councils are detailed in
Statement No.3.
The Fund Wise Receipts of Municipal Councils for the year 2008-09
are exhibited below in the Pie chart.
PIE CHART OF MCs RECEIPTS FOR 2008-09
53%
4%5%
15%
3%
9%
1%
6% 4%
1. General fund 53%
2. Lighting fund 4%
3. Education fund 5%
4. Water supply & Drainage
fund 15%
5. Town Planning 3%
6. Deposit fund 9%
7. Advances fund 1%
8. Pension fund 6%
9. Provident fund 4%
The Fund Wise Payments of Municipal Councils for the year
2008-09 are exhibited below in the Pie chart.
251
PIE CHART OF MCs PAYMENTS FOR 2008-09
55%
4%
5%
16%
1%
9%
1%
6%3%
1. General fund 55%
2. Lighting fund 4%
3. Education fund 5%
4. Water supply & Drainage
fund 16%
5. Town Planning 1%
6. Deposit fund 9%
7. Advances fund 1%
8. Pension fund 6%
9. Provident fund 3%
STATUS OF AUDIT
4.2 88 years of Audit of Municipal Councils up to the year 2008-09 was conducted
in the year as mentioned below.
Arrear Audit Current Audit Total
38 50 88
4.3 The Department has conducted the audit of the receipts amounting to Rs.
24527.67 lakhs and Payments of Rs. 21340.23 lakhs as detailed in the
Statements No.2 with Dist wise break up.
4.3.1 The Fund Wise Receipts & Payment of Municipal Councils for the year 2008-
09 are exhibited below in the bar charts.
252
BAR CHART OF RECEIPTS & PAYMENTS FOR
2008-09 (FUND WISE)
12852.69
1101.42
1310.95
3596.70
694.58
2257.57
321.04
1487.35
905.37
11435.54
937.96
1144.98
3500.41
235.85
1853.98
275.79
1289.94
665.78
1. General fund
2. Lighting fund
3. Education fund
4. Water supply &
Drainage fund
5. Town Planning
6. Deposit fund
7. Advances fund
8. Pension fund
9. Provident fund
RECIEPTS PAYMENTS
AUDIT OBJECTIONS
5.8 During the course of audit of these Municipalities for the year 2008-09 various
defects noticed were already pointed out in the relevant Audit Reports which
were forwarded to the Municipal Commissioners concerned for further action
at their end as per the procedure laid down under the A.P. State Audit Act.
5.9 A total number of 3796 audit objections involving an amount of Rs.10400.69
lakhs were raised in the audit of the Municipalities during the year under
report.
5.10 A Consolidated Statement showing the number of objections raised, amount
involved with category wise break-up is annexed vide Statement No.4.
253
5.11 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
5.12 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)].
5.13 The objections raised have been here under and observed that the Non
production of records has accounted for 36% of objections followed by
Violation of Rules 28%.
5.14 Gist of some of the selected audit objections pertaining to the year under
report is enumerated below:
254
STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2008-09
Rs. In lakhs.
Sl.
No. Name of the category No. % Amount %
1 Non Production of Records 1148 30 3793.26 36
2 Violation of Rules 738 19 2959.84 28
3 Non-remittance of the deductions /
Recoveries from Bills 371
10 597.09
6
4 Others 367 10 697.89 7
5 Non-collection of dues 228 6 1043.99 10
6 Surcharges Certificates- Recovery Pending 190 5 47.44 0
7 Excess Payments 154 4 62.22 1
8 Pendency of Utilisation Certificates 120 3 517.98 5
9 Advances pending adjsutemnt 100 3 222.50 2
10 Mis-appropriations 67 2 59.54 1
11 Non-utilisation of grants before the lapsable
date 65
2 38.33
0
12 Non- utilisation of Earmarked Funds 65 2 48.79 0
13 Variation in Account Figures 61 2 131.88 1
14 Diversion of Grants / Funds 36 1 119.94 1
15 Wasteful Expenditure 27 1 39.13 0
16 Excess Utilisation of Grants / Funds 24 1 7.89 0
17 Instances of cases of unaccounted for cash /
stores 22
1 3.13
0
18 Mis-utilisation of Grants / Funds 13 0 9.85 0
19 D.D. Cheques received but not realised with
in time 0
0 0.00
0
Total: 3796 100 10400.69 100
The objections - Number and amount involved - were categorized and their
category has been analyzed. 36% of amount objected pertains to the Non production
of records, followed by Violation of Rules which constitutes 28%. These two together
state that records are not properly kept by Municipalities.
255
AUDIT PARAS
Gist of some of the selected audit objections raised during the year 2008-09
under report is enumerated below:
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 the previous
year, Balance of the Treasury Pass Book as per Cash Book is not tallying with the
actual Closing Balance in the Treasury Pass Book as on 31st March. This is
happening due to Non-crediting of Receipts into the Treasury Pass Book by the
Treasury Authorities. Receipts credited in the cash book by remittance through
Challans are not credited in the Treasury Pass Book by the Treasury Authorities.
Debiting the cheques issued by one D.D.O. to another D.D.O. by Treasury authorities.
Without explaining the differences, addition or subtraction are being done in the
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. Further, Consolidated
Closing Balance of all cash books are not tallying with consolidated closing balance
of annual account of the institutions etc., A few instances of Variation in Account
figures noticed in the Audit Reports in various Local Bodies are detailed below:
A Consolidated Statement No. 4(2) 1 of Variation in account figures is
appended to the Report from which it could be seen that 61 audit paras involving an
amount of Rs. 131.88 lakhs were pointed out.
A few of such cases are detailed below.
1.1 MC GADWAL, MAHABOOBNAGAR - VARIATION IN ACCOUNT -
NEEDS ADJUSTMENT /RECOVERY - RS. 28,831/-
On Verification of the accounts, it is noticed that there is a difference of Rs.
19,926/- and Rs. 8,905/- between Cash Book and Pass Book in General Fund Account
and P.D Account respectively even after reconciliation as follows.
1) G.F.
Closing Balance Rs. 44,61,406-00
ADD:-
Un-cashed cheques Rs. (+) 04,00,564-00
---------------------
48,61,970-00
LESS:-
Closing Balance at S.T.O. (-) 48,42,044-00
--------------------
Difference 19,926-00
-------------------
256
2) P.D. A/C of NSDP
Closing Balance 12,57,023-00
Closing Balance at S.T.O. 10,12,950-00
Cash on Hand 2,52,978-00
-----------------
12,65,928-00
-----------------
Difference 8,905-00
-----------------
The aggregating difference of Rs.28,831/- may be reconciled at an early date
under intimation to audit.
(Para No. 19 of AR of MC Gadwal, Mahaboobnagar dist. For 2008-09)
1.2 MC CHIRALA, PRAKASAM - RECONCILIATION NOT DONE
BETWEEN CASH BOOK AND TREASURY PASS BOOK - OTHER
DEFECTS - NEEDS ACTION:
A) During the audit, it is noticed that reconciliation between cash and treasury
pass books, bank pass books was not done during the year 2008-09. The cash books
which were maintained in the municipality (all schemes and funds) were not closed
monthly and annually. The closing balance was also not arrived at monthly and
annually. Immediately the reconciliation between cash book and pass books (treasury
and bank pass books), monthly and annual abstracts would need to be arrived and the
fact intimated to audit.
B) The Treasury pass book was not certified by the Treasury authorities. The
Treasury receipts were not taken into cash book. In the absence of the
same, the correctness of the transactions noted in the S.T Pass Book could
not be certified in audit.
C) The relevant register of DD received was also not produced to audit. As
such the classification of the receipt could not be known in audit.
D) The challan-wise receipts were also not noted in posting register. As such,
the figures arrived at in the annual account could not be verified in audit.
The executive authority could not explain to audit as to how the figures
were arrived in the annual account. In the absence of the above
information the correctness of the annual account could not be verified
with reference to cash book and pass books in audit.
The misappropriation that may cause due to the non-reconciliation of Cash
Books with reference to Treasury Pass Book and non-maintenance of Posting
Registers, would need to be recovered from the person or persons responsible.
(Para No. 3 of AR of MC, Chirala, Prakasam dist. For 2008-09)
257
2. EXCESS UTILISATION OF GRANTS
The State Government releases grant-in-aid to meet the expenditure on
developmental works and contingency items like T.A., stationery, honorarium to the
elected representatives etc. It was noticed during the audit that the Executive
Authorities of the MCs were incurring expenditure in excess of the grant received
from the Government either in anticipation of the release of further grant or
withdrawing the excess amount from the General Funds of the institution without any
valid orders.
A Consolidated Statement No. 4(2) 1 is appended to the Report from which it
could be seen that an amount of Rs.7.89 lakhs was pointed out in 24 audit paras.
2.1 MC MARKAPUR, PRAKASAM - EXCESS UTILISATION OF FUNDS
EXPENDITURE INCURRED IN EXCESS OVER THE BUDGET
PROVISION:-
In respect of the following items, excess expenditure was incurred over the
budget provision. The excess expenditure would need to be recovered.
Sl.
No.
Head of Account Budget
Provision
(Rs.)
Actual
expenditure
(Rs.)
Excess
incurred
(Rs.)
% of excess
1 Jeep hire charges 250000 359459 109459 43.78%
2. Chalivendram 0 93119 93119 100%
3. Catches dogs&Pigs 50000 70000 20000 40%
4. Uniform and
Chapplas
133000 243323 110323 82.95%
433000 765901 332901 76.88%
(Para No. 2 of AR of MC Markapur, Prakasam dist. For 2008-09)
3. DIVERSION OF GRANTS
Municipalities are empowered to levy and collect different taxes like Property
Tax, Advertisement Tax, Vacant Land Tax etc., and collect water charges for supply
of water to the households and industrial/commercial units. The Municipalities are
authorized to collect Building License fee for permitting the Traders to carry on
business in the Municipal area. Certain Municipalities also raise income from their
properties by leasing them out. All the monies received by the Municipalities form
part of their general funds and they can be utilised for the purposes prescribed under
the Act/Rules. Rule 39 of Rules framed relating to Taxation and Finance in Schedule
II under Section 130 of the Andhra Pradesh Municipalities Act, 1965 prescribed the
purposes to which the Municipal Fund should be applied. According to the said rule,
these include all objects expressly declared obligatory or discretionary by law or rules
and in general everything necessary for or conducive to the safety, health, education
and convenience of inhabitants or to the amenities of the municipality and incidental
258
to the administration and the fund should be applicable thereto within the
municipality. But there are many instances where the grants/funds are applied for a
different purpose rather than the intended one.
As per the orders issued by the Government in G.O Ms. No. 1886, Municipal
Administration, dt. 22.11.1965, the Municipal Councils should not divert the
following earmarked funds even temporarily for other purposes without the previous
sanction of Government.
9. Water and Drainage Tax Funds
10. Deposits including Provident Funds
11. Lighting Tax Fund
12. Loan Funds
13. Special Government Grants
14. Elementary Education Fund
15. Capital Receipts from sale of capital assets and
16. Endowments.
Consolidated Statement showing details of Diversion of Grants is annexed to
the report vide Statement No. 4(2) 1 from which it can be seen that 36 no. of audit
objections involving an amount of Rs.119.94 lakhs were raised in the audit reports
for the year and a few of them are narrated below.
3.1 MC GADWAL - DIVERSION OF FUNDS - SCHEME FUND DIVERTED
TO GENERAL EXPENDITURE WITHOUT PRIOR PERMISSION
COMPETENT AUTHORITY - IRREGULAR - NEEDS RE- IMBURSEMENT
- Rs.1,45,57,969/-
During the year under audit, on verification of cash book, it was noticed that
the scheme funds as noted below were diverted for general expenditure without prior
permission of the competent authority which is irregular and contrary to scheme
instructions (guidelines).
According to scheme instructions, the Grants sanctioned for the specific
purpose should not be diverted to another purpose even temporarily without prior
permission of competent authority. Immediate action would need to be taken to
reimburse the amount so diverted at an early date.
DIVERSION OF DEVELOPMENTAL CHARGES TO MISCELLANEOUS
EXPENDITURE
Sl.
No.
Name of the
Scheme Vr.No. & Dt Particulars
Amount
(Rs.)
1 Dev. Charges (GO.
Ms. No. 158)
1/11-08-08 Purchase of engine oil &
mechanic labour charges.
7375
2 -do- 2/11-08-08 Purchase of 4-Q- PVC pipes. 7640
3 -do- 3/11-08-08 Purchase of 4 PVC pipes &
Spares.
29417
4 -do- 4/11-08-08 Purchase of 4-Q- PVC pipes. 9990
Total 54422
259
DIVERSION OF SCHEME FUNDS TO GENERAL EXP.
Sl.
No Scheme Vr.No. Particulars
Amount
(Rs.)
1 B.P.S. 1 to 23 Amount paid towards salaries, contract
labour wages & purchase of electric
materials.
4225244
2 C.C.F. 7 to 11 Amount paid towards salaries, contract
labour wages and CM’s programme
expenditure.
5002350
3 Flood Grant 1 to 3 Amount paid towards contract labour
wages, Office Exp. Chair person
honorarium, hire charges.
4084369
4 IDSMT 1 to 6 &
33 to 57
Amount paid for water supply, sanitation,
CM’s Programme, Diesel bills etc.,
1185584
Total 14497547
Grand Total 14551969
(Para No. 20 of AR of MC Gadwal, Mahaboobnagar dist. For 2008-09)
3.2 MC WANAPARTHY, MAHABOOBNAGAR - DIVERSION OF FUNDS
FROM LRS & BPS – NEEDS REIMBURSEMENT Rs. 2633229/-
As per Rule 14 of AP Regulation of Un-approved and Illegal Layout Rules,
2007 issued in G.O Ms. No. 902, Municipal Admn. & Urban Development (M), Dept,
dt. 31-12-2007, the amount collected by the competent authority under these rules
shall be kept and maintained under the control of the competent authority in a separate
account and utilized only for improvement of amenities in the area.
But, the Commissioner, Wanaparthy Municipality has diverted the amount
from LRS & BPS account and utilized for other than the purpose prescribed in the
aforesaid Govt. Orders as shown below.
Sl.
No. Vr. No & Date Details
Amount
(Rs.)
1 1/11-7-08 Transportation of water through Tankers 727980
2 2/11-7-08 -do- 14800
3 3/11-7-08 -do- 27420
4 4/11-7-08 -do- 33200
5 5/11-7-08 -do- 106600
6 6/22-7-08 -do- 88660
7 7/22-7-08 -do- 49000
8 8/18-9-08 Purchase of Electrical material for street
lights maintenance from Manikanta Eng.
Co. Wanaparthy
24312
260
9 9/18-9-08 -do- 38970
10 10/18-9-08 -do- 38820
11 11to 36/18-9-08 Car hire charges materials, Digital
photos misc. etc.,
49123
12 36/1 to 36/40/26-9-09 -do- 54985
13 37/29-9-08 Supply of contract labour for water
supply for 7/08
209988
14 38/29-9-08 Tri -cycle pullers wages for 7/08 10000
15 39/29-9-08 Payment of spl. sanitation 18720
16 40/29-9-08 Supply of contact labour for sanitation
for 7/08
251100
17 41/29-9-08 Pay bill of PH workers (31) Nos for 7/08 251276
18 42/29-9-08 Loan re-payment of staff APGVB for
7/08
25050
19 43/29-9-08 LIC of staff for 7/08 9805
20 43/1/29-9-08 Refund of EPF of staff 38350
21 44/12-1-09 Supply of water through tankers 565070
Total 2633229
Early action would need to be taken to reimburse the amount of Rs. 2633229/-
so diverted under intimation to audit.
(Para No. 18 of AR of MC Wanaparthy, Mahaboobnagar dist. For 2008-09)
3.3 MC VIKARABAD, RANGA REDDY - MUNICIPAL STAFF SALARIES -
PAID FROM RAIN WATER HARVESTING SCHEME – NEEDS
REIMBURSEMENT FROM MUNCIPAL FUNDS
An amount of Rs.10,39,250/- was drawn and paid to the municipal staff
salaries from Rain Water Harvesting scheme. The Commissioner and Director of
Municipal Admn has given permission that the staff salaries of Municipal council,
Vikarabad shall be incurred from RWH scheme with the condition to re-imburse the
said drawn amount in six months but, the Commissioner of municipality have failed
to reimburse the said amount from municipal funds to RWH A/c which needs
immediate adjustment so as to achieve the scheme’s objectives.
Sl.
No. Cheque No. Date
Amount
Drawn (Rs.)
1 240773 15-05-2008 1023735
2 240774 15-05-2008 15515
Total 1039250
(Para 31 of AR of MC Vikarabad, Ranga Reddy dist. For 2008-09)
261
3.4 MC, ZAHEERABAD - N.R.Y (TRAINING) GRANT – SPENT FOR
MAINTENANCE WORKS – HIGHLY IRREGULAR – Rs. 46466/-
On verification of the Cash Book relating to the NRY (training component)
(A/c No. 50193 of AB), it was noticed that the following expenditure was incurred by
the Municipal Commissioner for maintenance works.
V.No. 1/11.04.08 – Construction of drain and slab - Rs. 24527/-
V. No. 2/11.304.08- Collection and supply of gravel
to Ahmednagar Colony Ward No.19 - Rs. 21939/-
The advance was drawn in favour of the AE, MC, Zaheerabad. Diversion of
Training grant for maintenance works is irregular. Further, the administrative sanction
of the council was also not obtained for taking up the work. Pending approval of
council, the works were stated to have been executed and post-sanction was also not
obtained.
(Para 41 of MC Zaeerabad, Medak dist. For 2008-09)
3.5 MC ZAHEERABAD, MEDAK - SPECIAL GRANT – GRANT RELEASED
FOR THE DEVELOPMENTAL WORKS – DIVERTED FOR
MAINTENANCE WORKS – OBJECTED Rs.1666073/-
As seen from the Cash Book relating to the special grant (A/c No.
30480154354 – SBI Zaheerabad), it is noticed that out of balance amount of Rs.
21,31,000/- of the previous year, an amount of Rs. 1666073/- was incurred on the
following items.
# V.No./dt Nature of expenditure Amount
(Rs.) Remarks
1. 1-6/22.09.08 Salaries of the staff including
honorarium
284001 Self cheque
2. 7/22.09.08 Purchase of electrical material
for street lighting
149095 Master Electrical
ZHB
3. 8/22.09.08 -do- 123740 Venkateswara
Electricals ZHB
4 9/22.09.08 Private Sanitation 126055 Paid to Sri Saibaba
Labour Society for
the month of 7/08 &
8/08
5 10/22.09.08 -do- (24) laboureres 101088 R. Viswanath
6 11/23.09.08 -do- 99344 -do-
7 12/23.09.08 -do- 28 labourers 117936 Paid to Sri Sudhir for
the month of 7/08
8 12/23.09.08 -do- 28 labourers 113568 Paid to Sri Sudhir for
the month of 8/08
9 13&14/23.09.08 Labourers for Housing board
area
34980 R. Viswanath
10 15/23.09.08 Purchase of Tri-cycles 106548 R. Viswanath
11 17/23.09.08 Laboures of Mpl. Park 49608 R. Viswanath
262
12 19/23.09.08 Private sanitation 49920 R. Viswanath
13 37/10.10.08 Desilting with JCB 6300 R. Viswanath
14 38/10.10.08 Killing of dogs 3500 R. Viswanath
15 18/23.09.08 Outsourcing of computer
operator
12720 R. Viswanath
16 20/23.09.08 Hiring of vehicle for Office 22300 Shiva travels 4/08 to
9/08
17 21/23.09.08 Hiring of vehicle for
Commissioner
51000 7/08 to 9/08
18 22/23.09.08 Hiring of vehicle 34000 8/08 & 9/08
19 26/10.10.08 Purchase of chairs 4375 R. Viswanath
20 40/10.10.08 Purchase of Neel kamal chairs 9750 R. Viswanath
21 25/23.09.08 Water supply maintenance 68000 Sri Saibaba
Contractor
22 27/10.10.08 Purchase of white cement and
bleaching powder
13625 R.Viswanath
23 30/10.10.08 -do- 3250 R.Viswanath
24 36/10.10.08 -do- 1250 R.Viswanath
25 39/10.10.08 -do- 7625 R.Viswanath
26 43/10.10.08 -do- 3125 R.Viswanath
27 44/10.10.08 -do- 10500 R.Viswanath
28 45/10.10.08 -do- 1250 R.Viswanath
29 48/10.10.08 -do- 7000 R.Viswanath
30 32/10.10.08 Water supply booklets 2845 R.Viswanath
31 33/10.10.08 Printing of pamphlets 2000 R.Viswanath
32 35/10.10.08 Name plates and MC poles 1200 R.Viswanath
33 49/10.10.08 Painting of sign boards 5670 R.Viswanath
34 51/10.10.08 DTP Charges 1575 R.Viswanath
35 31/10.10.08 Gravelling Ward -3 8446 R.Viswanath
36 46/10.10.08 Digging of pits for plantation
along NH 9
11232 R.Viswanath
37 34/10.10.08 Water supply tanker 5952 -
38 28/10.10.08 Purchase of POL 1000 -
39 42/10.10.08 Purchase of POL 1310 -
40 47/10.10.08 Tent charges 2230 -
41 23/23.09.08 Mike announcement 3580 -
42 24/23.09.08 -do- 3580 -
Total 1666073
As stated above, most of the grant was spent for the purpose of maintenance
besides incurring maintenance expenditure from the General Fund. The reasons for
spending the fund on the maintenance alone instead of developmental works were not
explained to Audit.
In view of the above, the expenditure of Rs.16,66,073/- could not be admitted
in Audit.
(Para 44 of MC Zaheerabad, Medak dist. For 2008-09)
263
4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE
DATE
Government releases special grants to the local bodies for implementing
specific schemes. These grants are to be utilized for the purposes for which they are
meant duly following the guidelines issued / norms prescribed and such utilization
should be within the date prescribed. Otherwise, the grants will lapse to the
Government, unless the lapsable date of any particular grant is extended by the
Government or grant releasing authority.
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, up to a maximum
period of 18 months instead of end of the financial year to allow reasonable time to
utilize the grant released. According to the above orders, grants released in the first
year of a financial year can be utilized on or before 30th
September of succeeding
year. The Local Bodies did not utilize the grants released within the lapsable date and
thereby huge amounts were left unutilized. The grant sanctioning authorities were also
not approached for extending the utilization period. Thus the schemes for which the
grants released were not implemented effectively and totally. The unspent balances
were also not refunded to the grant releasing authorities.
A Consolidated Statement No. 4 (2) 1 of Non-utilization of Grants/ Funds
before Lapsable Date is appended to the Report from which it could be seen that an
amount of Rs. 38.33 lakhs was pointed out in 65 audit paras
A few of such cases pointed out in the Audit Reports of the Municipalities are
detailed hereunder.
4.1 MC RAJAM, SRIKAKULAM - BALANCES AVAILABLE IN IN-
OPERATIVE P.D.ACCOUNTS – NEITHER UTILISED NOR REMITTED TO
GRANT RELEASING AUTHORITY- NEEDS EARLY ACTION:
During the course of audit for the year 2008-09, it is observed that the
following P.D. Accounts were in operative since long time as detailed in the
annexure. But no action was taken to remit the balances left under various schemes to
state funds which is contrary to the provisions.
Sl.
No.
Name of the
Account/Fund OB Receipt Total Payments CB
1 PF 2824115 2824115 0 2824115
2 Uda Charges 209595 21240 230835 0 230835
3 BPS Scheme 50000 845172 895172 0 895172
4 NSDP 498266 50301 548567 0 548567
5 CDR 5845 0 5845 0 5845
6 UWET 169818 9220 179038 0 179038
7 EIUS 470956 27620 498576 0 498576
264
8 Community
Structure 63339 420 63759 0 63759
9 Dwcrua 480385 28823 509208 0 509208
10 Parka and play
grounds 103000 6180 109180 0 109180
11 4978319 103000 3637 106637 0 106637
4978319 992613 5970932 0 5970932
Therefore, immediate action may be taken to close the accounts by
remitting the balances with interest accrued as on the date to the grant releasing
authorities early and fact intimated to audit.
(Para No. 16 of AR of MC Rajam, Srikakulam for 2008-09)
5. MIS-UTILIZATION OF GRANTS
Municipal Councils are in receipt of Grant-in-aid from the Government for
certain specified purposes to be spent within the prescribed time limits and they
furnish utilization certificates for the grants utilized.
During the Course of audit, several instances have come to the notice of audit
that certain Municipal Councils incurred expenditure in excess of the Grant–in-aid
received.
The fact of incurring such excess expenditure further implies that such
expenditure was met from the unspent balances of some other grants. Necessary steps
are called for to curb this sort of financial indiscipline at the earliest. The excess
expenditure incurred, wherever possible, should be got reimbursed from the grant
sanctioning authorities explaining the circumstances under which the excess
expenditure over and above the grant sanctioned became inevitable.
13 cases of Mis-utilisation of funds / grants involving Rs. 9.85 lakhs pointed
out in the relevant audit reports are detailed in Statement No. 4 (2) 1 appended to this
report
A few of them are mentioned below.
6. NON-UTILISATION OF EARMARKED FUNDS
Governments have earmarked funds of Municipality out of their Funds and
utilize the same on the schemes benefiting the SCs, STs, and for Women and Child
Welfare at the following rates.
For Scheduled Castes: 15%
For Scheduled Tribes: 6%
For Women & Child Welfare: 15%
Further 1/3rd
of such earmarked funds shall be made over at the beginning of
the year to the A.P. Scheduled Castes Co-operative Finance Corporation / A.P.
Scheduled Tribes Co-operative Finance Corporation / A.P. Women Co-operative
Finance Corporation to be utilized for the benefit of the SCs, S.Ts and Women &
265
Children respectively. The balance of 2/3rd
funds shall be utilized by the
Municipalities for the benefit of Scheduled castes / Scheduled Tribes / Women &
Children in the respective municipal area. Unspent balance, if any out of the 2/3rd
funds at the end of the financial year, shall be made over to the respective
corporations.
It was observed in audit that in many cases the funds to be earmarked were not
worked out and provided for in their respective Budget Estimates. As such, funds
were neither made over to the respective corporations at the beginning of the year nor
utilized for the benefit of these sections by the municipalities in the State. The unspent
balances at the end of the year were also not remitted to the respective corporations in
many of the cases. Such inaction had defeated the very purpose of earmarking of
funds for the welfare of these sections.
A Consolidated Statement No. 4 (2) 1 of Non-utilisation of Earmarked Funds
is appended to the Report from which it could be seen that 65 objections were pointed
out involving Rs. 48.79.lakhs
6.1 MC, BHONGIR, NALGONDA - INDIRAMMA PENSION AMOUNTS -
UNDISBURSED AMOUNTS KEPT WITH MUNICIPAL ACCOUNTS -
VIOLATION OF INSTRUCTIONS - NEEDS IMMEDIATE REMITTANCE
As per the proceedings of the District Collector and Executive Chairman,
District Rural Development Agency, Nalgonda No.D/578/Reg.Pension/2007, Dated
23-03-2009, regarding pensions, all the Municipal Commissioners in the District were
instructed to submit acquittances along with Utilization Certificates for the amounts
disbursed and also to refund the unspent balances, if any through Demand Drafts by
8th
of every month in favour of the Project Director, DRDA, Nalgonda. But, contrary
to the instructions issued in the above said proceedings, the amounts mentioned below
were kept in different accounts of Municipal Council. By this the objectives of
pension scheme were found to be ignored and the very purpose of providing Pensions
to various Categories was not fulfilled. The amounts may be refunded as per the
guidelines issued in the above proceedings to make the scheme useful to other
beneficiaries.
STATEMENT OF UNDISBURSED PENSION AMOUNTS KEPT WITH
MUNICIPAL COUNCIL, BHONGIR DURING THE FINANCIAL YEAR 2008-
09
Name of the bank Account Number Pension Amount kept
(Rs.)
State Bank of Hyderabad 738802 19665
Andhra Bank 23787 6739
NDCC Bank 7013 14000
APGVB 44 15400
(Para No.4 of AR of MC Bhongir, Nalgonda dist. For 2008-09)
266
7. NON-COLLECTION OF DUES
On verification of Revenue collections in municipalities, huge amounts have
been noticed pending realization for long periods and allowed to become barred by
limitation of time. No appropriate action seems to have been initiated by the executive
authorities before the dues became barred by limitation of time, in spite of various
statutory provisions existing for their recovery such as through distraint, prosecution
or filing of suits.
A Consolidated Statement No. 4 (2) 2 of Non-collection of dues is appended to
the Report from which it could be seen that 228 objections were pointed out involving
Rs.1043.99 lakhs
7.1 MC ZAHEERABAD, MEDAK - DEMAND, COLLECTION AND
BALANCE OF TAX AND NON-TAX REVENUE – NON-CERTIFICATION
OF DEMAND – MAJOR LAPSES IN COLLECTION OF DUES – Rs.
1,11,28,000
During the course of Audit of Zaheerabad MC for the year 2008-09, it was
noticed that huge amounts of property Tax was not collected by the Municipal
authorities.
In spite of issue of 8 Half margin letters, neither the DCB statement showing
the demand, collection and balance of the Tax and Non-tax revenue of Municipality,
nor the demand registers were produced to the Audit for verification which is highly
irregular.
However, as per the inspection report of the RD, MA dated 2.09.2009, the
total property tax to be collected is Rs. 1,11,28,000/- . Collection of the property tax
which is the main source of the revenue of the Municipality is poor. Necessary steps
need to be taken for improvement of the collection of the property tax.
(Para No. 9 of AR of MC, Zaheerabad, Medak dist. For 2008-09)
7.2 MC ZAHEERABAD, MEDAK - WATER SUPPLY CONNECTIONS-
NON-COLLECTION OF WATER CHARGES - HUGE LOSS AND
OTHER IRREGURLARITIES - Rs. 3,12,480/-
As seen from the register of water supply connections, 651 connections were
given out to the consumers, but no demand is raised for all the new connections of the
year under report. Thus, a loss to the tune of Rs. 3,12,480/- ( 651 X 12 months X Rs.
40/- per month) was sustained due to the negligence of the executive authorities.
Further as on date of the close of the year 2008-09, 3331 water tap
connections were under service, but the receipts towards water charges is Rs.
8,82,000/-, which is meager compared to the no. of connections in use. The Executive
Authority awfully failed to collect the water charges and improve the revenue of the
institution.
267
The register of tap connections and files were not properly maintained
showing the date of receipt of the application, sanction of connections and date of
connection and inclusion in the demand etc.
To be corrected.
(Para No. 11 of AR of MC, Zaheerabad, Medak dist. For 2008-09)
7.3 MC, CHITTOOR - PROPERTY TAX - DEMAND COLLECTION AND
BALANCE OF PROPERTY TAX - HUGE AMOUNT OUT-STANDING
NEEDS ACTION - RS.29310078-00
During the course of audit, it is ascertained that the total demand under
property tax for the year 2008-09 was arrived as Rs.64383627-00 but Rs.35073549-
00 was collected during the year and Rs.29310078-00 was pending collection
Year Demand Collection Balance
2008-09 64383627 35073549 29310078
The total property tax demand arrived for 2008-09 was certified by the
commissioner. And the remaining amount of the property tax out standing is pending
collection amounting to Rs.29310078/-
Immediate action would need to be taken for property tax prompt collection.
(Para No.1 of AR of MC, Chittoor dist. For 2008-09)
7.4) MC, AMADALAVALASA, SRIKAKULAM - CURRENT DCB- DCB OF
TAXES AND NON-TAXES OF CURRENT YEAR - PENDING
COLLECTION - NEEDS EARLY ACTION:Rs.4294357.00
The demand fixed collections made and the balances left over at the
end of the year under report in respect of taxes and non-taxes are given below.
Sl.
No. Item of revenue Demand Collection
Written
off
Balance
1 Property tax 7303391 4097937 0 3205454
2 Water tax 808080 388080 0 420000
3 Shop Rooms Rents 306070 106991 0 199079
4 Market Lease 854052 833106 0 20946
5 IDSMT Room Rent 165600 165600 0 0
6 D&O Traders 109510 109510 0 0
7 HSC 808080 388500 0 419580
8 Advertisement Tax 8829 4673 0 4156
9 Encroachment Fees 158655 133520 0 25135
10 Slaughterhouse 7200 7200 0 0
11 Fish Ponds 35577 35570 0
7
TOTAL 10565044 6270687 0 4294357
268
Hence, action would need to be taken to collect the balances of taxes
and non-taxes by taking coercive steps under the act with personal interest etc., for
the delay in payment.
(Para No.15 of AR of MC Amadavalasa, Srikakulam dist. For 2008-09)
7.5 MC, AMADALAVALASA, SRIKAKULAM ARREAR DCB- HUGE
ARREARS OF TAXES AND NON-TAXES OF ARREAR - PENDING
COLLECTION - NEEDS EARLY ACTION.
The demand fixed collections made and the balances left over during the
year under report in respect of arrear taxes and non-taxes are given below.
SL.
No. Item of Revenue Demand Collection
Written
off Balance
1 Property tax 8634829 2161907 0 6472922
2 Water tax 505127 206800 0 298327
3 Shop Rooms Rents 227897 107730 0 120167
4 Market Lease 527492 0 0 527492
5 IDSMT Room Rent 99697 0 0 99697
6 HSC 505127 202950 0 302177
7 Advertisement Tax 8895 4789 0 4106
8 Encroachment Fees 101290 56040 0 45250
TOTAL 10610354 2740216 0 7870138
Hence, early action would need to be taken to collect the balances of taxes
and non-taxes by taking coercive steps under the act with personal interest etc., for the
delay in payment.
(Para No.16 of AR of MC Amadavalasa, Srikakulam dist. For 2008-09)
7.6 MC RAJAM, SRIKAKULAM - SHORT/UNDER UTILISATION OF
GRANTS-NEEDS UTILISATION:
During the course of audit for the year 2008-09, it is noticed that though
there were sufficient funds available with the institution in the following
accounts/schemes to take up development activities, execution of works etc., no
action was taken to utilization of grants fully which is irregular.
Sl.
No.
Name of the
Account/Fund
Total
amount
available
(Rs.)
Utilisation
(Rs.)
Balance available
as on 31.3.2009
(Rs.)
1 General Funds 10193361 6527013 3666348
2 General Funds 2824115 0 2824115
3 PF 230835 0 230835
4 Uda Charges 895172 0 895172
5 BPS Scheme 548567 0 548567
6 NSDP 5845 0 5845
269
7 CDR 179038 0 179038
8 UWET 498576 0 498576
9 Special Grant 106561 111889 106561
10 EIUS 63759 0 63759
11 12th Finance 2281490 181941 2099549
12 Community Structure 509208 0 509208
13 Infrastructure 169448 179615 169448
14 Pavalavaddi 1364510 1333494 31016
15 NOAP 8918595 8882600 35995
17 MEPMA 283927 282184 1743
18 Dwcrua 109180 0 109180
19 Special Grant New 3333000 3379200 3333000
20 Parka and play grounds 106637 0 106637
21 SGRY 100483 89647 10836
22 Water supply Donation 2548000 2516000 32000
23 Water Supply Estimation 385000 301320 83680
Total 35655307 23784903 15541108
Non utilization of grants may hampers the various developmental activities and
the very purpose of the scheme could not be served.
Hence, action may be taken to utilize the grants fully within the stipulated
period to avoid locking of funds.
(Para No. 17 of AR of MC Rajam, Srikakulam for 2008-09)
8. ADVANCES PENDING ADJUSTMENT
It was observed during the course of audit that temporary advances paid for
specific purpose were outstanding for a long time though they should have been got
adjusted through detailed bills and vouchers as soon as possible as per Article 99 of
the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to
avoid refund of unspent amounts. Several objections were raised on such outstanding
advances in the relevant Audit Reports pointing out above the failure of the Executive
Authorities in taking necessary action to get these advances adjusted.
It was also observed that huge amounts of personal advances are also
outstanding for a long time due to the inaction on the part of the Drawing Officers.
A Consolidated Statement No.4 (2) 2 showing the audit objections on
Advances Pending is appended to the Report from which it could be seen that an
amount of Rs. 222.50 lakhs was pointed out in the 100 audit paras.
8.1 MC, MADANAPALLI, CHITTOOR DISTRICT - ADVANCES PAID TO
MUNICIPAL ASSISTANT ENGINEERS - NOT GOT ADJUSTED -
IRREGULAR - RS. 1102500/-
As seen from the following vouchers, advances were drawn and paid to
Municipal Assistant Engineers for departmental execution of works. But the
270
adjustment particulars were not pointed out to audit for verification. The advances are
to be adjusted within 3 months or soon after the purpose are over.
The executive authority must insist on the adjustment particulars or recover
from the person or persons responsible.
Sl
No.
(I)
Vr. No & date Advances paid to A.E Amount
(Rs.)
1 461/7.08 K. Balasubramanyam, A.E., 300000
2 642/8.08 K. Balasubramanyam, A.E., 295000
3 758/10.08 K. Balasubramanyam, A.E., 7500
4 769/11.08 K. Balasubramanyam, A.E., 30000
5 813/11.08 K. Balasubramanyam, A.E., 25000
6 929/9.08 K. Balasubramanyam, A.E., 70000
7 1178/2.09 K. Balasubramanyam, A.E., 100000
8 1531/1.09 K. Balasubramanyam, A.E., 100000
9 1532/1.09 K. Balasubramanyam, A.E., 75000
10 1533/1.09 K. Balasubramanyam, A.E., 75000
Total 1077500
Sl
No.
(II)
Vr. No & date Advances paid to A.E Amount
Rs.
1 784/11-08 A. Subbarayudu, A.E., 20000
2 1534/1-09 A. Subbarayudu, A.E., 5000
3 955/12.08
M.B.No. 54/06-07
(p.38)
A. Subbarayudu, A.E., --
Total 25000
1. 1077500
2. 25000
Total 1102500
(Para No.3 of Audit Report of MC, Madanapalli, Chittoor District for 2008-09)
8.2 MC YELLENDU, KHAMMAM - M.C. GENERAL FUNDS - ADVANCES
NOT ADJUSTED - NEEDS EARLY ACTION - RS.2,13,000/-
As verified from the cash book and connected vouchers, an amount of
Rs.2,13,000/- was drawn and paid to the following individuals towards advances for
various purposes during the year 2008-09. But the said advances were not adjusted
271
till the end of the audit. Further the advance recoverable Register was also not
produced for verification in audit. Non-adjustment of advances for months together
leads to temporary misappropriation of funds.
Hence, immediate action would need to be taken to adjust the said advance
amounts from the concerned individuals and the fact reported to audit.
Sl.
No.
Name of the
individual &
designation
Vr. No./Date Amount
(Rs.) Purpose of Advance
Sarvasri
1 P. Ramanaiah.
Comm.(FAC) 140/25-08-2008 25000
Details of Advance not
stated in Cash Book
2 Md. Amjad Pasha,
Sanitory Jawan 143/02-09-2008 2000
Towards Sanitation
maintenance
3 R. Ramanna, AE. 253/11-09-2008 25000
Towards Gravel Road
formation at Kalimatha
Temple
4 Md. Amjad Pasha,
Sanitory Jawan 189/30-09-2008 4000
Sanitation materials for
Ramjan Festival
5 Ramanaiah.
Comm.(FAC) 196/20-10-2008 27000
Indiramma Sambaralu
distribution of pension
6 P. Ramanaiah.
Comm.(FAC) 197/21-10-2008 25000
Indiramma Sambaralu
distribution of housing
sanction orders
7 V. Eswaraiah, Fitter 243/10-11-2008 20000 Purchase of pipes of
leakage on pumping main
8 Md. Amjad Pasha,
Sanitory Jawan 248/21-11-2008 2000 Sanitation maintenance
9 K. Ravi, Jr.Asst. 249/29-11-2008 3000 Imprest cash
10 V. Eswaraiah, Fitter 297/23-12-2008 10000 Leakage materials
11 R. Ramanna, AE. 300/30-12-2008 12000 Maintenance of water
supply
12 K. Ravi, Jr.Asst. 384/16-01-2009 3000 Imprest cash
13 K. Ravi, Jr.Asst. 432/17-02-2009 5000 Imprest cash
14 Md. Maqbool, Fitter 482/17-02-2009 15000 Motor winding
15 K. Ravi, Jr.Asst. 483/05-03-2009 5000 Imprest cash
16 Md. Maqbool, Fitter 484/07-03-2009 20000 Water supply maintenance
17 Md. Maqbool, Fitter 511/20-03-2009 10000 Water supply maintenance
Total: Rs. 213000
(Para No. 3 of MC Yellendu, Khammam dist. For 2008-09)
8.3 MC, VIKARABAD, RANGAREDDY - ADVANCE PENDING
ADJUSTMENT – NEEDS TO BE ADJUSTED – Rs.4,07,500/-
As verified from the following vouchers during the audit period for the year
2008-09, it is noticed that, an amount of Rs. 407500/- was paid to the following
272
individuals towards advance for the purpose detailed below. The advance was not
adjusted till the date of completion of audit.
Hence an early action would need to be taken either to adjust the advance or to
recover the unadjusted amount from the person/s concerned and credited to Municipal
Funds under intimation to Audit.
Voucher No.
& Date
Purpose Name of the
Individual &
Designation
Amount
(Rs.)
03 & 01-07-2008 Maintenabce of water
supply scheme
T. Laxminarayana A.E 13000
04 & 05-07-2008 Purchase of Ferric alam do 10000
05 & 15-07-2008 do do 35000
09 & 11-08-2008 do K. Rajaiah D.E 33500
33 & 26-02-2009 Scheme consultation
Charges
K. Rajaiah D.E 150000
28 & 26-11-2008 Electrical material K. Rajaiah D.E 96000
11 & 13-08-2008 do T. Lingam W.S Staff 50000
Total 407500
(Para No. 25 of AR of MC, Vikarabad, Rangareddy dist. For 2008-09)
8.4 ADVANCES – ADJUSTEMENT PARTICULARS NOT PRODUCED –
NEEDS RECOVERY Rs. 115000/-
As seen from the General Fund Cash book of the MC Zaheerabad, the
following advances were made over for the purpose specified against each.
Sl.
No. V.No./dt
Amount
(Rs.) Purpose
Name of the
person
1 304/28.02.09 100000 Procurement of High
mast lights
Raja
Electrical
Sadashivapet
2 187/15.10.08 15000 Repairs to computer Laxmaiah
Computer
operator
The adjustment particulars of the advances were not produced to Audit.
Immediate action would need to be taken for recovery of the amount of Rs.1,15,000/-
from the person or persons responsible under intimation to Audit.
(Para No. 37 of AR of MC Zaheerabad, Medak dist. For 2008-09)
273
9. VIOLATION OF RULES
It was noticed in the audit that in some cases the Rules / Government
instructions for incurring the expenditure from the funds of the MCs were violated
either due to negligence or ignorance. In certain cases, the funds of the MCs were
utilized for the purposes other than the permitted ones under the Act / Rules. It was
also noticed that in a few cases, Government instructions were misunderstood or
misinterpreted. Such irregular expenditure incurred was objected to in the relevant
Audit Reports.
A Consolidated Statement No. 4(2) 2 showing the audit objections on
Violation of Rules is appended to the Report from which it could be seen that an
amount of Rs. 2959.84 lakhs was pointed out in 738 Audit Paras.
Some of such cases are mentioned hereunder.
9.1 MC WANAPARTHY, MAHABOOBNAGAR - PAYMENT OF WAGES TO
SANITATION WORKERS WITHOUT COUNCIL APPROVAL –
IRREGULAR - Rs. 1885992/- HELD UNDER OBJECTION.
During the year under audit, an amount of Rs.18,85,992/- shown in the
appended list was spent towards the wages to sanitation workers against the months
shown in the list. Out of the payment, the following defects were noticed during the
audit.
1. Attendance certificate of sanitation workers not produced.
2. Attestation of the Mpl. Engineer was not taken in NMR.
3. Resolution of the Municipal Council to engage the services of NMRs was
not furnished to audit.
In the absence of the council resolution, the payment cannot be admitted in
audit and is held under objection.
Sl.
No. Vr No. & Date Amount Details
1 255/10-12-08 243000
Payment towards engaging of six members of
contract labour, supply of workers for cleaning of
drain, roads, sweeping and of garbage with
tractors. From 1-8-08 to 31-8-08 (Municipal
council resolution not produced) B. Vijay Kumar,
Contractor.
2 256/10-12-08 8000 Engaging 10 Nos Tri-cycles workers for lifting of
garbage from door to doorfrom 1-8-08 to 26-8-08.
(15,16,19,20,21,22,23,24,2& 26)(attendance not
produced)
3 257/10-12-08 126090 Payment to Sri. B. Vijaya Kumar contractor
towards engaging of 31 members on contract
labour basis for cleaning of drains, roads and
lifting of garbage with tractor. From 1-8-08 to 31-
8-08 (Attendance certificates CR registers not
produced)
274
4 258/10-12-08 216987 Payment to B. Vijay Kumar contractor towards
supply of labour for maintenance of water supply
for the month of Aug-08. (CR not produced)
594077 (A)
5 303/4-3-09 249000 Payment made to Sri. B. Vijaya Kumar, contractor
towards engaging labour for maintenance of
sanitation drain, road sweeping and garbage lifting
with tractors (1-11-08 to 30-11-08) (the NMR was
not attested by the engineer) (61) members CR
also not produced)
6 304/29-3-09 18850 Payment made to B Vijaya Kumar contractor
towards computer operator / Sanitation workers.
7 305/25-3-09 209988 Payment made to Sri. B. Vijaya Kumar contractor
towards engaging water supply labour for
maintenance of water supply for the month of
11/08
8 46 No.s x30
135/day
186300 Mtnce. of water supply hand works 7 road
maintain of water supply
9 1x35/135/day 9000 Skilled workers W.f. works less qualification
10 2x3/244/day 24480 Work inspectors was ITI/IVC qualification
477838 (B)
11 306/25-3-09 8000 Payment of tri-cycle workers bill for 11/08
engaging of 10 Numbers try cycle work for lifting
of garbage for labour in the ward No.
15,16,19,20,21,22,23,24,25 & 26 8x1000= 8000
12 307/25-3-09 125550 Payment made to Sri. B. Vijaya Kumar contractor
towards contract labour charges for maintenance of
sanitation drain damaging road sweeping and
garbage filling with tractors and other sanitation
work from 1-11-08 to 30-11-08. (the NMR was not
attested by the Mpl. Engineer)
13 284/20-2-09 209988 B. Vijaya Kumar, contractor Wanaparthy towards
supply of water supply for the month of 10/08. Bill
not enclosed, NMR not attested )
14 285/26-2-09 8000 Tri cycle towards engaging of 8 members workers
for door to door collection for the month of 9/08
8x1000= 8000/- Attendance certificate not
enclosed.
15 286/20-2-09 8000 -do-
16 287/20-2-09 257100 Payment to Sri.B. Vijaya Kumar towards engaging
of 60 members contract for road sweeping drain
cleaning and lifting of garbage with tractor from 1-
10-08 to 31-10-08.
616638 (C)
18 288/20-2-09 129735 Payment towards engaging of 31 members labour
for cleaning drain. Road, sweeping, garbage lifting
275
with tractors and hiring of sanitation workers (1-
10-08 to 31-10-08) (NMR not attested and CR also
not enclosed)
19 289/20-2-09 48204 B. Vijaya Kumar, contractor Wanaparthy towards
supply of community organizer and wages taken
7/07 to 12/07 142xdays
20 210/20-2-09 19500 Sri B. Vijaya Kumar, Contractor towards supply of
computer operators on contract basis
197439 (D)
GRAND TOTAL
(A+B+C+D) 1885992
(Para No. 25 of AR of MC Wanaparthy, Mahaboobnagar dist. For 2008-09)
9.2 MC MIRYALAGUDA, NALGONDA - PURCHASE OF ELECTRICAL
GOODS AND WATER SUPPLY MATERIALS - GOODS RATES NOT
FINALISED BY THE COMMITTEE - PURCHASES NOT EFFECTED FROM
SSI UNITS.
An amount of Rs. 4,00,652/- was drawn and incurred for purchase of
Electrical and water supply materials during the year under audit. The purchases were
made in local market in piece meal to avoid the tender system.
Govt. through G.O.Ms.No.43 I & com (SSI) Dept., Dt. 20-07-1999 has
introduced a revised marketing assistance scheme duly constituting a purchase
committee and it was also ordered that the commissioner of Industries shall finalize
the rates in every year and purchases shall be made from the S.S.I. units only.
But the above orders of the Govt. were not adhered to and purchases made in
local market in piece meal ranging from Rs. 1930/- to Rs. 29,400/-, without approval
of committee.
This should be avoided in future and purchases shall be made in terms of the
above G.O.
WATER SUPPLY MATERIAL
Sl.
No. Vr.No. & Date Particulars
Amount
(Rs.)
1 657/28-01-09 Motor repairs Sri Sai baba Engineering
Electricals, Nalgonda
6140
2 264/20-01-09 Motor repairs 8518
3 662/28-01-09 Motor repairs 5555
4 659/28-01-09 Repairing of power bore 4895
5 660/28-01-09 Motor repairs 7480
6 661/28-01-09 Motor repairs 4720
7 658/28-01-09 Motor repairs 4845
8 35/16-04-08 Purchase of water supply material 2165
9 261/20-01-09 Purchase of water supply material 6325
10 64/26-12-08 -do- 3265
11 65/26-12-08 -do- 3285
12 42/26-12-08 -do- 3270
276
13 69/26-12-08 -do- 3335
14 66/26-12-08 -do- 3022
15 71/26-12-08 -do- 3146
16 49/26-12-08 -do- 3240
17 46/26-12-08 -do- 3420
18 1/04-04-2008 -do- 4390
19 242/- -do- 2860
20 244/- -do- 2800
21 262/20-01-09 -do- 4580
22 265/27-01-2009 -do- 6960
23 266/27-01-09 -do- 2780
24 343/12-09-08 -do- 2465
25 346/12-09-08 -do- 2920
26 348/12-09-08 -do- 3000
27 349/12-09-08 -do- 2735
28 406/01-10-08 -do- 3000
TOTAL:- 1,15,116
ELECTRICAL MATERIAL
Sl.
No. Vr. No. & Date Particulars
Amount
(Rs.)
1 122/30-05-08 Purchase of Electrical Material 29400
2 123/30-05-08 -do- 29340
3 124/30-05-08 -do- 27860
4 147/13-10-2008 -do- 2791
5 148/13-10-08 -do- 2790
6 149/13-10-08 -do- 2790
7 150/13-10-08 -do- 2800
8 151/13-10-08 -do- 2790
9 152/13-10-08 -do- 2880
10 153/13-10-08 -do- 2880
11 154/13-10-08 -do- 2995
12 155/13-10-08 -do- 2995
13 1563/13-10-08 -do- 2995
14 157/13-10-08 -do- 2995
15 158/13-10-08 -do- 2995
16 159/13-10-08 -do- 2995
17 160/13-10-08 -do- 2995
18 161/13-10-08 -do- 2.925
19 162/13-10-08 -do- 2850
20 163/13-10-08 -do- 2790
21 164/13-10-08 -do- 2790
22 165/13-10-08 -do- 2790
23 174/23-06-08 -do- 2980
24 175/23-06-08 -do- 3000
25 176/23-06-08 -do- 2980
26 177/23-06-08 -do- 2980
277
27 178/23-06-08 -do- 3000
28 179/23-06-08 -do- 2810
29 180/23-06-08 -do- 2980
30 181/23-06-08 -do- 4400
31 182/23-06-08 -do- 2980
32 183/23-06-08 -do- 3000
33 184/23-06-08 -do- 2980
34 185/23-06-08 -do- 3000
35 186/23-06-08 -do- 1930
36 187/23-06-08 -do- 2980
37 188/23-06-08 -do- 2980
38 189/23-06-08 -do- 2980
39 190/23-06-08 -do- 2980
40 437/13-10-08 -do- 2790
41 438/13-10-08 -do- 2995
42 439/13-10-08 -do- 2790
43 440/13-10-08 -do- 2925
44 441/13-10-08 -do- 2995
45 442/13-10-08 -do- 2995
46 443/13-10-08 -do- 2995
47 444/13-10-08 -do- 2995
48 445/13-10-08 -do- 2800
49 446/13-10-08 -do- 2995
50 447/13-10-08 -do- 2800
51 448/13-10-08 -do- 3000
52 449/13-10-08 -do- 2995
53 450/13-10-08 -do- 2995
54 451/13-10-08 -do- 2995
55 452/13-10-08 -do- 2800
56 453/13-10-08 -do- 2995
57 454/13-10-08 -do- 2800
58 455/13-10-08 -do- 2800
59 456/13-10-08 -do- 2790
60 457/13-10-08 -do- 2800
61 458/13-10-08 -do- 2800
62 459/13-10-08 -do- 2800
63 460/13-10-08 -do- 2995
64 461/13-10-08 -do- 2925
65 462/13-10-08 -do- 2995
66 463/13-10-08 -do- 2995
67 464/13-10-08 -do- 2790
68 465/13-10-08 -do- 2995
69 466/13-10-08 -do- 2995
70 467/13-10-08 -do- 2790
71 468/13-10-08 -do- 3000
TOTAL:- 2,85,536
(Para No. 12 of MC Miryalaguda, Nalgonda dist. For 2008-09)
278
9.3 WORKS EXECUTED - ENTRIES NOT RECORDED IN THE
MEASUREMENT BOOKS - RS.375641/-
As verified from the following vouchers during the Audit for the year 2008-09,
amount was drawn and paid towards different works as detailed below. The details of
work were not recorded in the M. Books not measured and not check measured.
Voucher no/date Particulars Paid to whom Amount
(Rs.)
13/20/6/08/ W.S Motor repairs M.A.L Motor winding Engg
works SRPT
17170
103/25-6-08/W.S Removal of Debris S.Badraiah Contractor 17170
241/8-10-08 G.F J.C.B.Hire charges Sahithi Soundarya earth
movers SRPT
11250
460/24-3-09/G.F ,, Hanuman Dozers works 16304
454/20-3-09/ G.F ,, Sahithi Soundarya earth
movers SRPT
40145
295/17-11-08/G.F ,, Sahithi Soundarya earth
movers SRPT
54195
247/20-10-08/G.F ,, Sahithi Soundarya earth
movers SRPT
28150
232/6-10-08 Removal of Debris S.Badraiah Contractor 27030
122/23-8-08/G.F ,, S.Badraiah Contractor 24930
128/8-9-08/G.F ,, S.Badraiah Contractor 22950
456/20-3-09 ,, S.Badraiah Contractor 24740
462/25-3-09 ,, Sri satya Narayana Stri seva
sangam
34450
457/20-3-09 ,, S.Badraiah Contractor 26180
482/31-3-2009 ,, Repairs of Municipal complex
toilets
13377
134/9-9-08 Collection of gravel
and spreading of
gravel
S.Badraiah Contractor 17600
Total 375641
(Para No. 10 of AR of MC Suryapet, Nalgonda dist. For 2008-09)
9.4 MC ZAHEERABAD, MEDAK - WORKS – WORKS EXECUTED BY THE
CONTRACTOR AND CHEQUE ISSUED IN FAVOUR OF MUNICIPAL
ENGINEER AND VICE – VERSA – HIGHLY IRREGULAR –RS.68,497/-
During the verification of certain work bills as shown below, it was noticed
from the connected note files that though the works were executed by the contractor -
Sri R.Viswanath, the cheques were issued in favour of the Municipal Engineer - Sri
Vasudeva Reddy and vice-versa in certain cases, which shows the collusion
persisting between the Engineers with the contractors in execution of public works
and misuse of public money. The reasons for issue of the cheques in such a manner
were not furnished to audit.
279
Cases wherein the works executed by Sri R.Viswanath, contractor and the
payment made to Sri Vasudeva Reddy,M.E are shown below.
Sl.
No. Vr.No & dt.
Amount (Rs.)
Name of the Work
1 205/3.11.08 8265 Construction of platform to power bore at
SC hostel IDSMT Colony.
2 270/3.11.08 7159 Construction of RCC Slab on existing drain
beside Reddy Hostel
3 211/3.11.08 7729 Construction of platform to public stand
post Ward.No.15
4 216/3.11.08 22921 Maintenance of septic tank beside Girls
School
Total: 46074
B) Cases wherein the works were executed by Sri Vasudeva Reddy M.E.
(Departmental execution) and the payment was made to Sri R.Viswanath, Contractor.
Sl.
No. Vr.No & dt.
Amount
(Rs.) Name of the Work
MB.
No.
1 242/26.11.08 16,823 Providing Gravel at Idgha ME/16/07
2 243/26.11.08 5600 -do- ME/16/08
Total: 22423
The above cases are only a few instances which were detected in the records
that were produced to Audit. The possibility of having many such cases cannot be
ruled out in the records which were not produced to Audit as number of M.Bs and
files were not produced in several cases in spite of the requests made through Half
Margin letters.
(Para No.49 of AR on the account of MC, Zaheerabad, Medak District for 2008-09)
9.5 MC ZAHEERABAD, MEDAK - WATER SUPPLY SCHEME –
WATER SUPPLY MAINTENANCE – NOT SELF SUSTAINING – NON
OBSERVANCE OF GOVERNMENT ORDERS.
Government in GO.Ms.No.44 MA Dept, dt: 19.01.1993, read with
GO.Ms.No.206 MA Dept, dt.17.05.1993 issued orders that the water supply
scheme should be maintained on no loss and no gain basis and it should be self
sustaining. Even the Eleventh and Twelfth Finance Commissions reiterated the
same and recommended for collection of user charges to meet the expenditure. But
in the instant case, the entire expenditure on water supply (O&M) was incurred by
the MC for Rs. 33,62,820/- whereas the receipt under the same head was Rs.
13,01,129/-, only. The Municipal council did not evince any interest in bridging
the gap by collecting user charges etc as a result the General funds were made to
suffer.
(Para No. 31 of A.R. on the accounts of MC, Zaheerabad, Medak District for 2008-
09)
280
9.6 MC MACHERLA, GUNTUR - INCURRING OF EXPENDITURE –ALL
PAYMENTS MADE IN CASH BY DRAWING THROUGH SELF CHEQUES –
HIGHLY IRREGULAR.
As verified from the cash book, vouchers etc, relating to expenditure, it was
noticed that the entire payments were made during 2008-09 (except payments made to
A.P.S.P.D.C.L) through cash by drawing the amounts through self cheques.
According to note 2 of Chapter 6 of Accounts Manual all the payments exceeding
Rs.200 shall have to be made by way of cheques only. But, the Commissioner,
Municipal Council, Macherla has made almost all the payments by way of cash,
which is against the Financial Code and as such is irregular.
(Para 13 of A.R. on the accounts of Municipal Council, Macherla, Guntur District
for 2008-2009)
9.7 MC ZAHEERABAD, MEDAK - COLLECTED AMOUNTS – ABNORMAL
DELAY IN REMITTANCE - TEMPORARY MISAPPROPRIATION
During the course of audit, it was noticed that the bill collectors have been
remitting the collected amount towards taxes and fees after lapse of considerable
period from the date of collection. The lapse has not been rectified in spite of
reporting in the previous Audit Reports. The collections shown below were made
before 31.03.09, but remitted with the delay ranging from one month to 6 months
which is highly irregular and amounts to the temporary misappropriation.
Sl.
No. Name of the B.C. I.R.No.
Amount
(Rs.) Date of Remittance
1 S. Anjaiah 55 7329 08/04/2009
2 Md.Gouri 60 20630 08/04/2009
3 K.srinivas 150 32911 08/04/2009
4 s.anjaiah 56 25206 08/04/2009
5 Md.Gouri 59 11769 08/04/2009
6 Md.Gouse 83 36586 08/04/2009
7 S.Anjaiah 57 61300 08/04/2009
8 Md.Gouri 61,62,63to87 158945 08/04/2009
9 K.Srinivas 152 to154 26023 13/04/2009
10 S.Anjaiah 6 20291 4/6/2009
11 Md.Gouri 1 9283 16/6/2009
12 S.Anjaiah 4 to6 32050 16/6/2009
13 Md.Gouse 1 to8 24828 18/6/2009
13 K.Srinivas 7&8 13863 23/6/2009
14 S.Anjaiah 8 11410 23/6/2009
15 Yadaiah 72to77 188165 24/6/2009
16 Yadaiah 81 to82 51166 2/7/2009
17 Yadaiah 83&84 43715 2/7/2009
18 Yadaiah 85 to88 83179 4/7/2009
19 Yadaiah 1 to 3 42901 4/7/2009
20 Yadaiah 4 to 6 76024 23/7/2009
281
21 Yadaiah 7 53390 23/7/2009
22 Yadaiah 8 23521 24/8/2009
23 Yadaiah 9 to 16 137472 2/9/2009
24 Yadaiah 17 to19 43838 6/10/2009
25 Yadaiah -- 20575 6/10/2009
Total 1256370
(Para No. 19 of A.R. of M. C. Zaheerabad, Medak Dist. for the year 2008-09)
9.8 MC PUNGANURU, CHITTOOR – WORKS – EXECUTION OF WORKS
IN MUNICIPAL AREA – CHECK MEASUREMENT NOT DONE BY
ENGINEERING AUTHORITY BEFORE MAKING PAYMENT – NEEDS
ACTION – Rs. 1256544/-
The following works were executed in Municipal area during the year under
report. But the measurements of said works were not check measured by the
engineering authority before making payment to contractors as per Art. 174 of APTC
Vol - I. As such the expenditure incurred is held under objection. Early action would
need to be taken to obtain the same from the engineering authority and produce to
audit for verification.
Vr no. & date Nature of works MB. No. Amount
407/12.08 Providing pvc pipe line in 19th
ward
12/07-08 18404
96/7.08 Construction of censers in 19th
ward
27/03-04 16000
398/12.08 Repairs of culvert & Rehabitation
of cc road
24/03-04 24437
79/7.08 Providing cc road 23/05-06 24458
84/7.08 Laying of cc road 9/07-08 24207
(002)283/8.08 Laying of cc broad 5/07-08 24228
399/12.08 Providing pipeline in 19th
ward 5/07-08 16442
11/5.08 Construction of cc drain 8/07-08 9811
291/8.08 Construction of cc drain 20/05-06 24265
81/7.08 Repairs of RR drain 20/05-06 17507
85/7.08 Laying of cc road 11/05-06 24105
14/5.08 Providing gravel for pips 11/05-06 17076
289/8.08 Construction of cc drain 3/05-06 23776
78/7.08 Rehabitation of cc road 3/05-06 23598
15/5.08 Laying of gravel road 3/05-06 16615
273.10.08 Providing pipe line 4/99-219 24310
87/07-08 Providing cc paten works 9/99-219 24158
13/5-08 Repairs to cc drain 9/99-219 17440
114/8-08 Construction of culvert 11/99-219 24363
284/8-08 Construction of culvert 17/99-219 22902
86/07-08 Providing cc road 13/03-04 24368
220/10-08 Formation of gravel road 06/03-04 21778
(002)292/8-08 Construction of RCC culvert 31/03-04 23247
115/8-08 Providing cc drain 31/03-04 24296
282
116/8-08 Laying of cc road 23/03-04 24231
20/6-08 Construction of cc drain 05/03-04 24143
402/12-08 Formation of gravel road 05/03-04 13643
403/12-08 Providing pipeline 05/03-04 6417
406/12-08 Providing pvc pipeline 05/03-04 16841
91/7-08 Providing cc paten works 05/03-04 24322
401/12-08 Construction of cc drain 05/03-04 24085
92/7-08 Providing cc road 05/03-04 24250
286/8-08 Rehabitation of cc road 05/03-04 23775
287/8-08 Providing cc road 05/03-04 24173
100/7-08 Construction of culverts cc drain 05/03-04 24226
88/7-08 Formation of gravel road 05/03-04 23686
12/5-08 Providing cc drain & road 05/03-04 22976
302/11-08 Construction of cc drain 05/03-04 24151
97/7-08 Construction of culvert 05/03-04 24388
19/6-08 Repairs of RR culvert 24/05-06 24125
89/7-08 Formation of gravel road 24/05-06 23708
301/11-08 Laying of cc road 24/05-06 18043
95/7-08 Providing cc road 7/03-04 24429
305/11-08 Providing pipeline 7/03-04 23111
77/7-08 Repairs of RCC culvert 22/03-04 24162
288/8-08 Construction of cc drain 22/03-04 24077
06/5-08 Repairs to drain 9/03-04 17000
83/7-08 Laying of cc road 9/03-04 23986
80/7-08 Providing RCC culvert 03/03-04 24134
272/10-08 Providing PVC pipeline 03/03-04 24043
08/5-08 Repairs to cc road 03/03-04 20000
303/11-08 Providing pipeline 13/03-04 24346
304/11-08 Providing pipeline 12/03-04 19125
300/11-08 Laying of gravel road 12/05-06 22171
42/4-08 Providing pipeline 15/07-08 23235
40/4-08 Extension of pipeline 12/07-08 17163
16/5-08 Providing cc road 27/03-04 18339
117/8-08 Laying of cc road 24/03-04 24249
Grand Total 1256544
(Para No. 3 AR of MC Punganuru, Chittoor dist. For 2008-09)
10. NON-REMITTANCE OF THE DEDUCTIONS / RECOVERIES FROM
THE VOUCHERS / PAY BILLS / CONTINGENT BILLS
It was noticed during the audit that various deductions / recoveries affected
from the work bills / pay bills were not remitted to the Government or a part of them
only were remitted in spite of statutory obligation to remit the same to Government
account within a prescribed time under the relevant statutory provisions which also
include penalty as well as prosecution for non adherence.
283
The deductions normally made from the work bills / pay bills that are to be
remitted to Government account are hereunder.
Work Blls
6. Income Tax
7. Sales Tax/VAT
8. Seigniorage Charges
Pay Bills
9. Profession Tax
10. G.P.F. (Government Employees)
11. G.I.S Premium.
12. Contribution to Pension Scheme
13. Sainik Welfare fund
The defects noticed were pointed out in the respective Audit Reports. Some of
them are as under.
A Consolidated Statement No. 4 (2) 2 showing the audit objections on Non
remittance of Deductions/Recoveries made from the vouchers /Pay Bills/Contingent
Bills is appended to the Report from which it could be seen that an amount of Rs.
597.09 lakhs was pointed out in 371 Audit Paras.
10.1 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED OR
PARTLY REMITTED
As per G.O.MS.No.331, Industries and Commerce (M.I) Department, Dated
21-06-2000, Seigniorage Fees or Dead Rent whichever is higher shall be recovered
from the work bills on all Minor Minerals dispatched or consumed from the land at
the rates specified in Schedule-I and Schedule-II annexed to the said G.O as the case
may be and to be credited to the consolidated fund of State Government through the
concerned Assistant Director of Mines & Geology of the District. However, it was
observed that though the amounts were recovered from the work bills towards
Seigniorage Fees, the same were either not remitted or partly remitted to State Funds
till the close of audit. Such inaction was pointed out in the relevant audit reports of
the AMCs. Some of such instances are listed below.
SEIGNIORAGE CHARGES COLLECTED BUT NOT REMITTED
Sl.
No.
Name of the MC & District Seigniorage Charges
collected but not remitted
Rs.
Para
No.
1 Rajam, Srikakulam 26730 60
2 Yellandu, Khammam 55919 10
3 Suryapet, Nalgonda 163960 17
4 Wanaparthy, Mahaboobnagar 47127 31
5 Miryalaguda, Nalgonda 234063 15
Total:
284
10.2 INCOME TAX RECOVERIES NOT REMITTED / PARTLY REMITTED
Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b), the
authority which deducts the Income Tax from work bills or from pay bills shall remit
the same to the Income Tax Department within the first week of the next month of
such deduction. In case of failure to remit the Tax, the Drawing and Disbursing
Officer will be held responsible under section 201 (1) for payment of interest at 15%
per annum, under section 201 (1)(a) from the time of such default till the payment of
such tax and prone to levying of penalty, under section 221 up to the amount of tax
not remitted plus prosecution under section 276 B for a period ranging from three
months to seven years with fine. Though the statutory provisions are clear, it was
observed during the year under audit that the Income Tax deducted at source from the
work bills was not remitted to the Central Government Account till the close of audit.
Such irregularities noticed were pointed out in the relevant audit reports. Some of
them are shown below.
INCOME TAX DEDUCTED BUT NOT REMITTED
Sl.
No.
Name of the MC & District I.T to be
remitted
Rs.
Para
No.
1 Siricilla, Karimnagar 57912.65 11
2 Yellandu, Khammam 102247 8
3 Amadalavalasa, Srikakulam 187040 55
4 Wanaparthy, Mahaboobnagar 47204 31
5 Miryalaguda, Nalgonda 176451 15
6 Rajam, Srikakulam 37847 60
Total: 608701.65
10.3 SALES TAX / VAT DEDUCTED BUT NOT REMITTED OR PARTLY
REMITTED
Under A.P.G.S.T Act 1957 as amended from time to time and as per
G.O.Ms.No.556 Revenue (CI-II) Department, Dated 07-08-2000 read with
Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax @
2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for exclusive
civil contracts for laying or repairing of roads and contracts for canal digging, lining
and repairing and @ 4% of turnover for all categories of other contracts not falling in
the above mentioned category has to be recovered from the work bills and remitted to
state funds within a week from the date of recovery failing which the Drawing Officer
has to pay personally 24% penal interest besides remitting the amount to state funds.
It was observed that Sales Tax/ VAT deducted at source from the work
bills was not remitted to the state funds till the close of audit. Such irregularities
noticed were pointed out in the relevant audit reports of the MCs. A few of such
cases are mentioned below.
285
VAT/ST DEDUCTED BUT NOT REMITTED
Sl.
No. Name of the MC & District
To be
remitted
Rs.
Para
No.
1 Yellandu, Khammam 164467 9
2 Vikarabad, Ranga Reddy 155336 25
3 Suryapet, Nalgonda 103803 16
5 Amadalavalasa, Srikakulam 214456 55
6 Siricilla, Karimnagar 107608.65 14
7 Miryalaguda, Nalgonda 243694 15
Total: 989364.65
10.4 NAC CHARGES DEDUCTED FROM WORK BILLS BUT NOT
REMITTED
NAC charges effected from work bills were not remitted to till the close of
audit. Such inaction of the Executive Authority was pointed out in the relevant audit
reports and some such instances are shown below.
NAC Charges
Sl.
No. Name of the MC & District
Deducted
but not
remitted
Rs.
Para
No.
1 Yellandu, Khammam 15034 11
2 Gadwal, Mahaboobnagar 23397 49
3 Wanaparthy, Mahaboobnagar 5345 31
4 Amudalavalasa, Srikakulam 20809 56
Total: 64585
10.5 LIBRARY CESS COLLECTED BUT NOT REMITTEE TO ZILLA
GRANDHALAYA SAMSTHAS
Under Section 20 of the A.P Libraries Act 1960, levy of Library Cess by the
Gram Panchayats, Municipalities is obligatory and to be collected at 8 paise per every
rupee of the property tax. This should be collected along with the House Tax and
remitted to the Treasury to the credit of the Z.G.S at the end of every month. During
the year under audit, it was observed that though amounts towards Library Cess were
collected along with House Tax / Property Tax the same were not remitted to Z.G.S
funds till the close of audit. Such inaction was pointed out in the relevant audit
reports.
286
Some such instances are listed below.
Sl.
No.
Name of the MC & District Collected but not
remitted to ZGS
Rs.
Para
No.
1 Manuguru, Khammam 235093 6
2 Yellandu, Khammam 794987 12
3 Tandur, Ranga Reddy 814682 19
4 Tuni, East Godavari 287466 2
Srikalahasti, Chittoor 1093928 3
5 Markapur, Prakasam 2786001 8(5)
6 Amudalavalasa, Srikakulam 449691 62
Chittoor, Chittoor 4400241 3
Total: 10862089
10.6. PROFESSION TAX DEDUCTED FROM PAY BILLS – BUT NOT
REMITTED
Profession Tax deducted from Pay Bills was not remitted to concerned Head
of Account fully in some cases till the close of audit. Such inaction of the Executive
Authority was pointed out in the relevant audit reports.
Some such instances are listed below.
Sl.
No. Name of the Municipal Council & District
Amount
Collected but
not remitted
Para
No.
1 Markapur, Prakasam 145140 9(1)
2 Bhongir, Nalgonda 800 11(b)
Total: 145940
10.7 DEDUCTIONS / RECOVERIES OF G.I.S PREMIA NOT REMITTED OR
PARTLY REMITTED
In Place of the Family Benefit Fund, the A.P State Employees Group
Insurance Scheme, 1984 was introduced with effect from 01-11-1984
Vide.G.O.Ms.No.293, Finance & Planning (F.W.Admn.II) Department, Dated 08-10-
1984. All those employees who were in service as on 01-11-1984 and who join
service on or after 01-11-1984 would compulsorily become members in this scheme.
Drawing and Disbursing Officer Concerned has to recover Group Insurance Premium
from the Pay Bills as per the rates fixed for the Groups classified and remit to state
funds immediately. But it was observed that in some cases the G.I.S Premium
deducted from Pay Bills was not remitted to State Funds till the close of audit.
287
Some such cases are shown below.
Sl.
No.
Name of the Municipal
Council & District
Amount
Collected
Amount
Remitted
Balance to
be
Remitted
Para
No.
1 Markapur, Prakasam 62163 33505 28658 9(1)
Total: 62163 33505 28658
10.8 G.P.F DEDUCTED BUT NOT REMITTED
As per rule 10(1) m of G.P.F Rules, 9% of the basic pay of an employee
(without insurance) or 4% of basic pay of an employee (with insurance) has to be
compulsorily recovered towards monthly subscriptions to his/her G.P.F Account. It
was noticed in audit that though the G.P.F amount was deducted from the Pay Bills
the same was not remitted to concerned head of account till the close of audit. Such
defects noticed were pointed out in the Audit Reports concerned.
Some such cases are shown below.
Sl.
No.
Name of the Municipal
Council & District
Amount
Collected
Amount
Remitted
Balance to
be Remitted
Para
No.
1 Markapur, Prakasam 422160 393160 29000 1
Total: 422160 393160 29000
10.9 AP EMPLOYEES WELFARE FUND – NOT REMITTED
As per G.O.Ms.No.68 Fin & Plg. Department, dt.24-04-1992 newly recruited
employees have to contribute a sum of Rs. 50/- from the first salary of the employees
and other employees Rs.20/- every year from the salary of March payable in April and
credited to the Employees Welfare Fund Account.
However it was observed that the said contribution is not being collected and
remitted or partially remitted in certain cases. Such defects noticed were pointed out
in the Audit Report concerned.
Some of such instances are listed below.
Sl.
No.
Name of the Municipal Council & District
Amount
Collected but
not remitted
Para
No.
1 Markapur, Prakasam 900 1
2 Bhongiri, Nalgonda 2420 11(a)
Total: 3320
288
11. NON-PRODUCTION OF RECORDS
The Urban Local 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 needs, the total revenue
base needs to be enhanced every year. With the raise in demand for services, the
functionaries need to have effective financial management skills and accountability
practices.
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 be produced to Audit for verification. Then only the transparency in
incurring of public money and their utility to the General Public can be reasonably
judged.
Such an important function on the part of the Drawing and Disbursing Officers
of all the Local Bodies and Urban Bodies in the maintenance and production of
records to audit are not properly being discharged. Thereby, the main access to clear
the doubt of transparency in public expenditure has not been availed. In spite of all
these guidelines and instructions, the DDOs of all local and urban bodies have failed
to maintain the records and to produce the same to Audit when ever the local teams
visited their institutions. Under the category of non – production of records to the
Audit, the major part is in works and the related records such as M.book, estimate file,
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 a surprise to note that the heads of the institutions could not explain why
the records could not be maintained in the office and produced when ever they are
being demanded by the Audit Parties and other agencies during their local visits.
The financial health of an institution depends up on the quality of the records
that are being maintained to show the accountability of the financial transactions that
occur in the institution. Though the provisions under Rule 6 of A.P.State Audit Rules,
2000 are clear that the onus for production of records to audit lies with the Executive
Authority of the institution, in the following cases the said rule is not complied with
as they have failed to furnish various records to audit. As a result of such
inaccessibility to the records, several audit objections were pointed out in various ARs
of the concerned institutions. Records like M. Books, connected files, vouchers in
which crores of rupees transacted in many institutions form the major chunk of audit
objections under the category of non production of the records. Transactions relating
to the purchase of various contingent articles, goods etc., were not accounted for in
stock registers and produced to audit. Remittances made to the different departments
etc for which neither the acknowledgements nor any evidence produced in audit also
form part under this category. Though several half margin letters were issued for
production of the required records, the Executive Authorities did not comply with and
resulted in inaccessibility of the records and raising of paras to that extent.
289
A Consolidated Statement No. 4 (2 2 of showing the audit objections on
Non-production of records is appended to the report from which it could be seen that
an amount of Rs. 3793.26 lakhs was pointed out in 1148 Audit Paras.
A few of the paras raised in the ARs for the year 2008-09 are as shown below.
11.1 EXECUTION OF WORKS – CONNECTED ESTIMATES,
MEASUREMENT BOOKS Etc., - NOT PRODUCED
Amounts were drawn in the vouchers detailed in the respective audit paras
and stated to have been spent on execution of works during the year. But the
sanctioned estimates, measurement books and agreement files were not produced to
audit for verification.
A few such cases are mentioned below.
Sl.
No.
Name of the
MC & Dist.,
Particulars of the records not
produced
Amount
involved
Rs.
Para No.
1 Miryalaguda,
Nalgonda
Measurement Books and files
not produced
4507322
20
2 Punganuru,
Chittoor
M .books and connected Files 1954157 4
3 Wanaparthy,
Mahaboobnagar
M. Books and connected files 5378754 35
4 Siricilla,
Karimnagar
M. Books and Estimates 1107161 21
5 Tuni, East
Godavari
M. Books and Estimates 931128 12
Chittoor,
Chittoor
M. Books, Estimates and
agreements
5996127 4
Amadalavalasa,
Srikakulam
M. Books, Estimates and
connected files
836285 73,74,75
& 78
Total
11.2 PAID VOUCHERS/CHALLANS NOT PRODUCED:
Audit came across several cases where amounts were drawn from the funds
of MCs, but, the connected paid vouchers/challans were not produced to audit for
verification. Such irregularities noticed were pointed out in the relevant Audit
Reports. A few such cases are given below.
Sl.
No
.
Name of the
AMC & Dist.,
Particulars of the records not
produced
Amount
involved
(Rs.)
Para
No.
1 Punganuru,
Chittoor
Providing of pipeline, construction of
CC drain etc. – connected vouchers
1238691 4
290
2 Punganuru,
Chittoor
CC charges paid to Electricity
Department – Sub-Vouchers and
Payee’s acknowledgement
1140000 4
3 Tuni, East
Godavari
Private sanitation, night sanitation etc.
– paid vouchers
1165967 19
4 Wanaparthy,
Mahaboobnagar
IHSDP Scheme funds – paid
vouchers/bills
300000 47
5 Gadwal,
Mahaboobnagar
Payments made towards preparation of
estimates and project reports for under
ground drainage under IHSDP scheme,
delivery of hand pumps etc.
10125198 78
6 Siricilla,
Karimnagar
Vouchers 4591577 17
Total 18561433
11.3 RECORDS / REGISTERS / FILES NOT PRODUCED:
During the audit for the year 2008-09, it was noticed that expenditure was
incurred for the stated purposes as shown in the respective audit paras. But, the
connected Registers, Records and Files were not produced for verification in audit. A
few of such cases are detailed below.
Sl.
No
Name of the MC& Dist., Particulars of the records
not produced
Amount
Rs.
Para
No.
1 Manuguru, Khammam Tractor Log book 175995 10
2 Suryapet, Nalgonda Tractor-wise Log Books 1086061 23
3 Mahaboobnagar,
Mahaboobnagar
Log books 579671 38
4 Wanaparthy,
Mahaboobnagar
Stock Register 2082904 41
5 Gadwal, Mahaboobnagar Building permission file and
related files
344201 50
Total 4268832
11.4 UTILISATION OF CELL PHONES OF MUNICIPAL STAFF -
SANCTION OF COMPETENT AUTHORITY NOT PRODUCED RS. 123537/-
HELD UNDER OBJECTION - NEEDS ACTION.
During the course of audit, it was noticed that an amount of Rs. 123537/- was
spent towards utilization of cell phones from chair person to contingent labour
monthly charges. But the list of employees that are eligible for this provision was not
produced to audit for verification.
In spite of General instructions issued by the Government on spending the
funds of local bodies read with article 3 of Andhra Pradesh financial code according
to which every government servant who incurs or authorizes the incurring of any
expenditure from public funds should see that it does not contravene the principals of
financial property and every government servant is expected to exercise the same
291
diligence and care in respect of any expenditure from public money under his / her
control as a person of ordinary prudence would exercise in respect of his own money.
Due to non-production of the said authority, the amount which was incurred /
spent for taking services of cell phones Rs. 123537 is held under objection in audit.
The cell phone charges paid to the ineligible employees may be recovered from them.
Otherwise, the entire amount may be recovered from the DDO.
Sl.
No. Monthly Year Vr. No. & Date
Utilisation No
of employees
non - officers
Amount
1 3/08 19/22.4.2008 1 to 18 13018
2 4/08 49/1.5.2008 1 to 18 5801
3 5/08 83/13.6.2008 1 to 18 10954
4 6/08 141/9.7.2008 1 to 18 11816
5 7/08 158/28.8.2008 1 to 18 11558
6 8/08 189/29.9.2008 1 to 17 21011
7 9/08 267/21.10.2008 1 to 16 11093
8 10/08 284/10.11.2008 1 to 16 10790
9 11/08 354/17.12.2008 1 to 15 10820
10 12/08 381/20.1.2009 1 to 16 10915
11 1/08 444/13.2.2009 1 to 8 5761
12 2/08 Bills not produced for audit
Total:- 123537
(Para No.18 of Audit Report of MC, Siricilla, Karimnagar District for 2008-09)
11.5 LOG BOOKS NOT PRODUCED RS. 914358
During the year under report the following vehicles Diesel / petrol
consumption records i.e. log books for the year 2008-09 were not produced In spite of
issue of half margin letter, the authorities concerned have not responded.
Due to non production of the log books the correctness of the Diesel / Petrol
consumption was not verified and entered expenditure incurred towards the Diesel /
Petrol was held under objection.
Sl.
No. Name of the Vehicle / Machine
Diesel / Petrol Consumed
worth Rs.
1 Flogging machine 244552.35
2 Autos (4) 106640.60
3 AP 15V 2951 65081.10
4 AP 15T 349 148774.90
5 Office Generator 26690.45
6 Tractor ( New ) 67015
7 AP 15 X 6559 155766
8 APR 7506 94552
9 APTV 936 5284
Total:- 914356.40
(Para No.20 of Audit Report of Municipalities, Siricilla, Karimnagar District for 2008-09)
292
11.6 RAJIV NAGARA BATA – GRANT ADJUSTED – RELEASE ORDERS
AND OTHER RECORDS NOT PRODUCED –OBJECTED –Rs. 86,55,677/-
I) On verification of the Cash book relating the Rajiv Nagara Bata Scheme, it
was noticed that an amount of Rs.5,70,200/- was received under Grant-in-aid and
unspent balance amounting to Rs. 99,84,380/- was carried forward to the current year.
An amount of Rs. 86,55,677/- was spent during the year under report. The correctness
of the expenditure could not be examined in audit due the reason set forth.
1. Grant release orders were not produced to know the purpose of the grant
for which the same was released.
2. The expenditure was incurred under following heads
Details of work Amount (Rs.)
a) Laying of CC roads 174045
(b) Construction of drains 176716
© Purchase of Bleaching powder 32, 381
(d) Installation of public taps 271582
(e) Rectification of water leakages 10710
(f) Purchase of PVC pipes 18980
(g) Purchase of tube lights 18620
(h) Electrical material and cables 298896
(i) PWS material 377165
(j) Gravelling 96395
(k) Mobilisation Advances 5844093
(l) Refund of EMD 661100
(m) Bank charges 2975
Total 8655677
The supporting records, viz, MBs, files, administrative sanction of the
competent authority etc., were not produced for verification in spite of request made
in the 8 Half Margin letters issued during the course of audit addressing the
Commissioner, MC Zaheerabad.
The Government have issued instructions to spend the grants for
developmental works in order to improve the urban infrastructure. Contrary to
Government Orders, the expenditure was made for maintenance works also as noted
above.
In absence of the records, the expenditure of Rs 8655677/- could not be
admitted in Audit and held under objection.
(Para No. 33 of A.R. of M. C. Zaheerabad, Medak District for the year 2008-09)
293
12. MIS-APPROPRIATIONS :
A consolidated statement of audit objections on misappropriations noticed in
the audit is annexed vide statement No 4 (2) 2. A total number of 67 cases involving
an amount of Rs.59.54 lakhs were pointed out in the relevant ARs.
Cases of misappropriations of money noticed in audit were pointed out in the
Audit Reports concerned. A few of such cases are reproduced below.
12.1 MC WANAPARTHY, MAHABOOBNAGAR - DRAWAL OF
HONORARIUM OF MEMBERS FROM MUNICIPAL GENERAL FUNDS -
SHORT DISBURSEMENT - NEITHER REMITTED TO MUNCIPAL FUNDS
NOR DISBURSED TO THE MEMBERS - MISAPPROPRIATION - NEEDS
RECOVERY RS. 41,200/-
In the following vouchers, a sum of Rs. 155000/- was drawn towards
honorarium of members from Municipal General Funds for disbursement.
But as seen from the acquittance Register of Honorarium to members, it is
noticed that a sum of Rs. 114600/- only disbursed to the members leaving a balance of
Rs. 41,200/-, which was neither disbursed to the members nor remitted to Municipal
General Funds as shown here under.
Sl.
No.
Vr. No &
Dt.
Fund
in
Which
drawn
Details
Amount
Drawn
(Rs.)
Amount
disbursed
(Rs.)
Balance
(Rs.)
1 87/11-5-2008 GF-I Honorarium to
Chair person, V.C.,
and Council
Members
39200 38200 1000
2 55/18-6-2008 GF-II -do- 5/2008 38200 0 38200
3 115/5-12-08 GF-II -do- 10/2008 39200 38200 1000
4 116/5-12-08 GF-II -do- 11/2008 39200 38200 1000
Total Rs. 155800 114600 41200
It is clear that the amount was misappropriated by way of short disbursement
of drawn amount.
Therefore, early action would need to be taken to recover the un-disbursed
amount of Rs.79400/- from the person or persons responsible and credited to
Municipal General Funds concerned under intimation.
(Para No. 53 of AR of MC Wanaparthy, Mahaboobnagar district for 2008-09)
294
12.2 MC SIRICILLA, KARIMNAGAR - PROPERTY TAX COLLECTED BY
SRI SYED AMJAD B.C. BUT NOT REMITTED TO MUNICIPAL FUNDS -
NEEDS RECOVERY RS. 19828.
During the course of audit it was noticed that a total sum of Rs. 19828 was
collected by Sri. Syed Amjad B.C. towards Property Tax and the same was entered in
Irsalnama register at P. No. - Nil - Dt:- 6.1.2009. But the said amount was not
remitted to the Municipal funds by the bill collector concerned and no action was
taken by the Municipal commissioner so far even after issue of half margin letter at
the time of audit and no reply was received to the half margin letters. Thus it is
construed that the amount was misappropriation by the said B.C.
Sl.
No.
Book No. RPT No. / Dt Amount
(Rs.)
1 220 21960/6.1.2009 720
- 961/ - 667
- 962/ - 667
- 963/ - 319
- 964/ - 417
- 965/ - 201
- 966/ - 2366
- 967/ - 598
- 968/ - 3570
- 969/ - 876
- 970/ - 502
- 971/ - 502
- 972/ - 819
- 973/ - 262
- 974/ - 150
- 975/ - 4859
- 976/ - 548
- 977/ - 1156
- 978/ - 629
Total:- 19828
Immediate action would need to be taken to recover the said amount from
Syed Amzad the B.C. and credit to municipal fund.
(Para No. 22 of AR of MC Siricilla, Karimnagar dist. For 2008-09)
12.3 MC WANAPARTHY, MAHABOOBNAGAR - AMOUNT COLLECTED
BUT NOT REMITTED TO MUNICIPAL FUNDS (CHITTA) -
MISAPPROPRIATION - Rs. 4, 51,370/-
During the course of audit, in the following Receipt numbers a sum of Rs.
451370/- was collected by the I/c bill collector R. Srinivasulu but the amount was not
remitted to Municipal funds till the close of audit.
Therefore, the amount of Rs. 451370/- may be recovered from the individual
with penal interest and remitted to the Municipal funds under intimation to audit.
295
COLLECTED BUT NOT REMITTED
R. SRINIVASULU.
Thus the collected amount was misappropriated by the said BC.
B.No. R.No. Date Amount
634 080063301 to 63325 23/11/09 44455
634 Irsalnama P.No.244 63326 to 63350 23250
634 63351 to 63375 11275
634 63376 to 63400 1-12-09 10360
635 080063401 to 425 1-12-09 17777
635 63426 to 63450 5/12/09 8275
635 63451 to63475 5/12/09 5200
635 63476 to 63500 9/12/09 7675
637 63601 to 63625 9/12/09 6600
637 63626 to 63650 10/12/09 9700
637 63651 to 63675 11/12/09 6900
637 63676 to 63700 11/12/09 9085
638 63701 to 63725 15/12/09 6400
638 63726 to 63750 15/12/09 9400
638 63751 to 63775 16/92/09 10200
638 63776 to 63800 17/12/09 9300
639 63801 to 63825 17/12/09 9425
639 63826 to 63850 18/12/09 10550
639 63851 to 63875 21/12/09 18600
639 63876 to 63900 22/12/09 9600
641 080064001 to 64025 2/1/10 11050
641 080064026 to 64050 2/1/10 5800
641 080064051 to 64075 7/1/10 13877
641 080064076 to 64100 7/1/10 6600
643 08006420 to 64225 8/1/10 6875
643 080064226 to 64250 11/1/10 7400
643 080064251 to 64275 11/1/10 5489
643 080064276 to 64300 12/1/10 8945
644 080064301 to 64325 16/1/10 11175
644 080064326 to 64350 18/1/10 6225
644 080064351 to 64375 18/1/10 7375
644 080064376 to 64400 19/1/10 7525
645 080064501 to 64525 22/1/10 8925
645 080064526 to 64550 23/1/010 9925
645 080064551 to 575 25/1/10 46055
645 080064576 to 64600 27/1/10 9500
646 680064401 to 64425 2/2/10 12225
646 080064426 to 64450 8/2/10 9177
646 080064451 to 64475 9/2/10 7825
646 080064476 to 64500 10/2/10 5375
Total 451370
(Para No. 55 of AR of MC Wanaparthy, Mahaboobnagar dist. For 2008-09)
296
12.4 MC SURYAPET, NALGONDA - AMOUNT COLLECTED TOWARDS
LICENCE FEE AND BIRTH AND DEATH CERTIFICATE FEE – SHORT
REMITTANCE - NEEDS RECOVERY Rs.10,990/-
On verification of the receipt Books, it was noticed that a sum of Rs.11,040/-
was collected towards licence fee and for issue of Births and Deaths Certificates. But
as verified from the Daily Cash Register only a sum of Rs.50/- was remitted to the
M.C. Funds instead of Rs.11,040/-. Thus a sum of Rs.10,990/- was misappropriate as
detailed in the Statement.
Receipt Book
No Receipt S.N
Amount
collected
Amount was
shown in the
D.C.R
Difference
484 48390/10-7-08 130 50 180
254 25394/24-3-09 50 0 50
25395/24-3-09 50 0 50
25396/24-3-09 50 0 50
25397/25-3-09 50 0 50
25398/25-3-09 50 0 50
25399/25-3-09 50 0 50
25400/25-3-09 50 0 50
41 4001 to 4100 5260 0 5260
61 6001 to 6100 5300 0 5300
Total 11040 50 10990
(Para No. 27 of AR of MC Suryapet, Nalgonda dist. For 2008-09)
12.5 M.C. YELLENDU, KHAMMAM - IRSALNAMA AMOUNTS NOT
BROUGHT TO CASH BOOK AND NOT REMITTED IN MUNICIPAL
GENERAL FUNDS - TEMPORARY MISAPPROPRIATION OF MUNICIPAL
FUNDS - NEEDS RECOVERY RS.60,215/-.
During the course of audit, it was noticed that a sum of Rs. 60,125/- was
collected by Smt. K. Rajeswari, JA and the same was stated to have been handed
over to Sri K.Ravi during the period from 09.09.2009 to 29.09.2009 as detailed
below. But, the same was not remitted to the MC funds, as such it is construed as
misappropriated.
Hence, the same would need to be recovered from the person or persons
responsible with penal interest and remitted to the M.C. funds under intimation to
audit.
Sl.
No.
Name of the
Collection staff
Date of
Collection
Irsal
Page
No.
Collection
Amount
(Rs.)
Whom taken
the amount in
office
01. Smt.K.Rajeswari,
Jr.Asst. 09-09-2009 15 2965 Sri K. Ravi
02. ,, 09-09-2009 19 1905 ,,
03. ,, 09-09-2009 21 11680 ,,
04. ,, 10-09-2009 25 2955 ,,
05. ,, 15-09-2009 27 1000 ,,
297
06. ,, 17-09-2009 31 3755 ,,
07. ,, 17-09-2009 35 5990 ,,
08. ,, 22-09-2009 43 10500 ,,
09. ,, 23-09-2009 51 8335 ,,
10. ,, 25-09-2009 53 1855 ,,
11. ,, 25-09-2009 57 5425 ,,
12. ,, 29-09-2009 61 3850 ,,
TOTAL: 60215
(Para No. 25 of MC Yellendu, Khammam dist. For 2008-09)
12.6 M.C. YELLENDU, KHAMMAM - WATER SUPPLY & GENERAL
FUNDS - COLLECTION AMOUNTS NOT REMITTED TO MUNICIPAL
FUNDS - NEEDS RECOVERY RS.32,900/-
During the course of audit, it is noticed that the following amounts were
collected by the Municipal staff and the same were handed over in the office on the
date noted against them. The said amounts were not remitted to Municipal funds of
M.C. Yellandu immediately after receipt of the same from collection staff and hence
treated to have been misappropriation.
Sl.
No.
Name of the
Fund
Date of
Collection
Cash Book
PageNo.
Collection
Amount
(Rs.)
Whom taken the
amount in office
01. Water Supply
Funds 19-12-2008 141 29350
Sri S. Lingaiah,
Manager
02. General Fund 20-01-2008 113 3550 Sri S. Lingaiah,
Manager
TOTAL: 32900
Hence immediate action would need to be taken to recovered from the person
or persons held responsible with penal interest. The said amount of Rs.32, 900/-
would need to be recovered from the concerned and remit the same to M.C. funds
immediately.
(Para No. 26 of MC Yellendu, Khammam dist. For 2008-09)
13. EXCESS PAYMENTS
It was observed in audit that in several cases, excess payments were made due
to either.
(m) Incorrect calculations or
(n) Excess totaling in Bills or
(o) Admission of inadmissible claims or
(p) Lack of knowledge of Government instructions.
298
A Consolidated Statement No. 4 (2) 3 of showing audit objections on Excess
paynebts is appended to the Report from which it could be seen that an amount of Rs.
62.22 lakhs was pointed out in 154 Audit Paras.
14. WASTEFUL EXPENDITURE
The canons of financial propriety envisaged in the Andhra Pradesh Financial
Code are sacrosanct for all Government Authorities entrusted with authorizing or
incurring of expenditure from public funds. They are expected under Articles 3 to
exercise the same diligence and care in expending public money under their control as
persons of ordinary prudence would exercise in respect of their own money.
Government have issued instructions through various orders and also incorporated in
the statutes of Local Bodies the various items on which public money can be
expended and the principles to be adhered to while expending on such items. Yet, it
was noticed in audit that the funds of Municipalities were several times incurred
without adhering to the laid down principles leading to the wasteful expenditure of
public money. All the cases of such wasteful expenditure observed in the audit of
Municipalities for the year 2008-09 were expenditures that were avoidable,
extraordinary and lacked proper planning.
A Consolidated Statement No. 4 (2) 3 of showing audit objections on
Wasteful Expenditure is appended to the Report from which it could be seen that an
amount of Rs. 39.13 lakhs was pointed out in 27 Audit Paras.
A few of such cases pointed out in the Audit Reports classified according to
the type of their wastage are illustrated here under.
14.1 MC SIRICILLA, KARIMNAGAR - PAYMENT OF ADVERTISEMENT
CHARGES ABNORMAL EXPENDITURE INCURRED – HELD UNDER
OBJECTION Rs. 195898/-
An amount of Rs. 195898/- was drawn and paid towards advertisement
charges in various news papers from municipal funds during the year under report.
The said amount was spent for publishing the development activities, congratulations
messages, Welcome messages on opening ceremonies & greetings on New Year or
other festivals as detailed below.
But the following irregularities were noticed in audit.
1) The authority and purpose of incurring of such expenditure on publication
was not submitted to the Audit.
2) Permission orders of the Government or higher authorities as the case may
be, were not obtained under section 130 of the A.P. municipal Act 1965 for payment
of charges towards Advertisements.
3) The expenditure of huge public money on Advertisements is not useful to
general public as it seems wasteful and un-authorized as per the Municipal Act.
299
Further it was not brought to the notice of the higher authorities in spite of
recurring nature of the objections raised on previous audit reports and the practice is
being continued.
Therefore the expenditure was held under objection and be recovered.
Annexure Vr. No. / Date Amount Purpose
152/21.8.2008 13000 Calandar publication charges
153/21.8.2008 12000 Welcomes on opening ceremonies of various
developmental programme
155/21.8.2008 17000 New year greeting by the council members
307/12.11.2008 10000 Welcome to opening ceremonies
347/17.12.2008 19380 Opening ceremony of various development
programme
348/1712.2008 12495 -- do --
351/17.12.2008 31595 Council wishes on 12th
anniversary
223/16.10.2008 15428 Development at activities
222/16.10.2008 40000 Calendar publication
224/16.10.2008 25000 Daily printing AP Ambedkar yuvajana sangham
Total:- 195898
(Para No. 25 of AR of MC Siricilla, Karimnagar dist. For 2008-09)
14.2 MC, GADWAL, MAHABOOBNAGAR - ADVERTISEMENT IN
NEWSPAPERS MAGAZINES CERTAIN DEFECTS NOTICED - WASTE FUL
EXPENDITURE RS. 64,000/-
An amount of Rs. 90,730/- was incurred towards advertisement charges in
daily news papers / Magazines from general fund as noticed below during the year
under report.
Sl.
No. Vr No / date Particulars
Amount
(Rs.)
1 281/ 23.06.07
Bill No
935963/30.11.2000.
281/23.06.07 Bill No-
974964 Dt 30.11.01.
Paper advertisement. Manager Ushodaya
Enterprises Ltd, Hyd.
Paper advertisement. Manager Ushodaya
Enterprises Ltd, Hyd.
15480
11250
2 431/29.02.08 Publication of CD of photographs Adv in
Siyasatha Daily
10000
3 432/29.02.08 Publication of CD of photographs Adv in
Esthaval Daily
10000
4 433/29.2.08 Publication of CD of photographs Adv in
Rehanuma Daily
10000
5 434/29.02.08 Publication of CD of photographs Adv in
Manifest Daily
10000
6 430/29.2.08 Advertisement charges paid SFI magazine. 12000
7 436/29.2.08 Paper add to Advt for -Dasara - Deepavali-
Shubakankshalu
12000
TOTAL 64000
300
In memo No 60497//A1/95 Dt 14.8.1996 the Govt of A.P has ordered on news
paper advertisements.
Further there is no provision to give advertisement on festival greetings and
annual greeting and development advertisements.
Hence the expenditure can not be admitted in Audit and needs recover from
the person(s) and credited municipal funds.
(Para No. 91 of AR of MC, Gadwal, Mahaboobnagar dist. For 2008-09)
14.3 MC ZAHEERABAD, MEDAK - ADVERTISEMENTS MADE IN
VARIOUS MAGAZINES / NEWS DAILIES NEEDS RECOVERY Rs.5,23,331/-
.
During the audit on the accounts of MC Zaheerabad for the year 2008-09, it was
noticed that abnormal expenditure was incurred for advertisements which were not so
useful and purposeful.
The Advertisements with captions “Congratulations to Hon’ble MLA/MPs
“Welcome address”, “Developmental Activities taken up under the Municipality”
were made in several news dailies and in some cases not popularly known magazines.
The expenditure is avoidable, unreasonable and abnormal.
Further the Government vide GO Ms.No.37 GA Dept. (I&PR) Dated 22-01-
1994 ordered that all the advertisements should be made through public relations
department and the Govt. vide Memo No. 669291/I&PR/A1/2003 of GAD Dated 12-
09-1993, issued orders not to admit the bills in case of violation of guidelines.
Contrary to the aforesaid orders, the advertisements were made directly without
consultation of I&PR Dept. The advertisement bills were not scrutinized at least by
the public relations department and technical opinion obtained about the rates of
advertisement. Hence the expenditure of Rs.5,23,331/- could not be admitted in audit
and needs recovery from the persons or persons responsible.
SI.
No.
VR.NO./DATE AMOUNT
(Rs.)
AGENCY DT.OF
PUBLICATION
1. 94/06-06-2008 62532 ANDHRA
JYOTHI
21-10-2007
2. 166/06-09-2008 4120 -DO- --
3. 181/06-10-2008 12000 CALANDER --
4. 189/21-10-2008 48600 PRJA SHAKTHI 29-09-2008
5. 218/05-11-2008 28660 DECCAN
RAHEEMA
28-02-2005
6. 247/28-11-2008 96040 EENADU 27-11-2008
7. 262/27-01-2009 29200 DECCAN
RAHEEMA
03-10-2008
8. 301/20-02-2009 32000 MUNSIF 02-10-2008
9. 157/14-08-2008 2191 VAARTHA 09-02-2008
301
10. 158/14-08-2008 4752 JAGURUTHI 05-07-2008
11. 265/02-02-2009 30294 SURYA 22-10-2007
12. 99/17-04-2008 46094 AMODA 20-03-2005
13. 21/18-04-2008 20000 SEEIA SATH 20-10-2007
14. 28/21-11-2008 25000 BALDIA
SAMACHAR
02-02-2008
15. 69/20-05-2008 15000 ANDRA JYOTHI 18-09-2007
16. 293/09-02-2009 25000 SOUVENEIR -- 17. 296/16-02-2009 16848 --- -- 18. 20/17-04-2008 25000 BALDIA
SAMACHAR --
Total 523331
(Para No. 27 of AR of MC Zaheerabad, Medak dist. For 2008-09)
14.4 MC PALAMANERU, CHITTOOR - WASTEFUL EXPENDITURE
PUBLICATIONS OF GREETING IN NEWS PAPER WASTEFUL
EXPENDITURE - NEEDS RATIFICATION OF GOVT RS : 129980
The following payments were made towards new year greeting and birthday
greeting to public leader through publication in news paper is there wasteful
expenditure . The expenditure needs to be got ratified from the Govt., order. The
payment need recovery from the persons responsible.
Sl.
No. Vr.No. & Month Particulars
Amount
(Rs.)
1 69/6-08 Dasara subhakanchalu Visalandhar Daily
news paper
12000
2 144/9-08 State Education , Govt., Minster of
R.Changa reddy welcome greeting
Visalandra News paper
15000
3 289/12-08 Ushodaya enter prises towards welcome
of Minister
19803
4 291/12-08 Vartha daily greeting new year 13277
5 293/12-08 Sakshi daily welcome to C.M 27200
6 295/12-08 Visalandra daily Paper welcome to C.M. 10000
7 296/12-08 Praja varthi daily welcome to C.M 5200
8 297/12-08 Prajavartha monthly Vijayadashmi,
Deepavatli subhakanchalau
12500
9 298/12-08 Prajaparshed monthly for publication
calendar 07-08
15000
Total 129980
(Para No.8 of AR of MC Palamaneru, Chittoor dist. For 2008-09)
302
15. INSTANCES OF CASH/STORES UNACCOUNTED FOR
Several instances of Cash / Stores unaccounted for were noticed, a
consolidated statement of cases of unaccounted for cash / stores statement No 9 (15)
is appended to the Report.
A Consolidated Statement of Instances of cases unaccounted for is annexed in
the Statement No. 4 (2) 3 to the Report showing 22 paras involving an amount of
Rs.3.13 lakhs
16. PENDENCY OF UTILIZATION CERTIFICATES
According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I
read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, it is the responsibility of
the Grant Receiving Authority to send the Utilization Certificates in the proforma
prescribed duly certified by the District Audit Officer, State Audit Department. But
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, Government have
among others prescribed the pre-condition under para 12 of G.O. for further drawal of
Funds from April, 2002 onwards by the Local Bodies / Public Sector Enterprises,
Autonomous Bodies and other Grant-in-Aid institutions.
“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.”
As the aforesaid Government orders are not being observed by the Executive
Authorities resulted in heavy Pendency of Utilization Certificates to be furnished to
the Grant Releasing Authorities. Such cases are reported in the ARs of Municipalities
shown in the statement appended herewith.
A Consolidated Statement of cases of Pendency of Utilization Certificates is
appended in Statement No. 4 (2) 3 to the Report from which it could be seen that an
amount of Rs. 517.98 lakhs was pointed out in 120 audit paras
16.1 MC, YELLENDU, KHAMMAM -NON-SUBMISSION OF UTILIZATION
CERTIFICATE
According to Article 211 A(a) of the A.P., Financial Code Volume-I, it is the
responsibility of the grant receiving authority to send the utilization certificates in the
proforma prescribed, duty getting the same certified by the Audit Officer, State Audit.
But the same were not furnished to audit for certification and for onward transmission
to the grant releasing authority.
303
Sl.
No.
Purpose of
Grant
UC due to
submission UC submitted
U/c pending
submission
No. Amount No. Amount No. Amount
1 T.S.P. grants 1 153589 - Nil - 1 153589
2 Building grant 1 2363717 - Nil - 1 2363717
3 NOAP 1 5455100 - Nil - 1 5455100
4 Midday meals 1 170538 - Nil - 1 170538
5 Dhobighat Fund 1 467334 - Nil - 1 467334
6 T.F.C. 1 1811983 - Nil - 1 1811983
7 Special Grant 1 830979 - Nil - 1 830979
8 Pavala Vaddi 1 404563 - Nil - 1 404563
9 Spl.Sanitation 1 60485 - Nil - 1 60485
Total 9 11718288 9 11718288
(Para No. 27 of AR of MC, Yellendu, Khammam dist. For 2008-09)
16.2 MC VIKARABAD, RANGA REDDY - NON-SUBMISSION OF THE
UTILISATION CERTIFICATES – PENDING.
According to Art.211 (A) 2 of the A.P. Financial Code Vol. I, it is the
responsibility of the grant receiving authority to send the utilization certificate in the
proforma prescribed duly getting the same certified by the Dist. Audit Officer, State
Audit.
In the following schemes the grant in aid was received and the expenditure
was incurred during the year. But the Utilization Certificates along with voucher wise
particulars were not furnished for countersignature by Audit department and
certification and transmission to the authorities concerned. The reasons for not
submitting the utilization certificate was not explained.
(Para No.33 of AR of MC, Vikarabad, Ranga Reddy dist. For 2008-09)
Sl.
No.
Sl No. in the
statement
Name of the scheme Expenditure
In Rs.
Bank name & Account
No.
1 4 NSDP 38180 AB 10363
2 7 SJSRY(Revolving
fund
67500 CB 9653
3 8 SJSRY(Subsidy) 278837 SBH 52128124867
4 16 APRURMSP 1387042 AB 61301100014995
5 19 Drought 525110 SBH 52128162439
6 20 Flood grant 83155 AB 61301100010604
7 22 MLA GRANT 825830 Sbh 5218162428
8 39 Solid waste
management
1508311 AB 15965
9 41 Office Building a/c II 233844 SBH 62024741837
10 44 DCP Funds 298585 SBH 62066154283
TOTAL 5246394
304
16.3 MC, AMADALAVALASA, SRIKAKULAM - NON-SUBMISSION OF
UTILISATION CERTIFICATES-NEEDS EARLY ACTION
The utilization certificates for the grants released during the year have not
been produced to audit for verification. The grants released and expenditure incurred
as detailed here under.
According to Article-211-A (2) of the A.P Financial Vol.I, it is the
responsibility of the grant receiving authority to send the utilization certificates in the
prescribed proforma duly getting the same, certified by the Dist. Audit Officer, State
Audit. But the utilization certificates for the following grants (Separate statement
enclosed) were not furnished to audit for counter signature and on ward transmission
to the grant releasing authority.
Further, the utilization certificates are also pending submission for the
previous years, as already pointed out. Hence action would need to be taken to
submit the U.Cs immediately.
Sl
No
Name of the
Grant/
Scheme
Grant
Amount
(Rs.)
Amount
Utilised
(Rs.)
Unspent
Including
Opening
Balance
1 S.J.S.R.Y.Infraustructure 131441 341 906028.42
2 Pavala Vaddi 229 6000 435.05
3 Self Employment 20205 62700 319394.71
4 DWCUA 13538 1064752 128486.62
5 T & C Revolving Fund 2938 0 86151.27
6 Community Structure 3115 0 91349.42
7 ACDP 4733 120000 78273.44
8 Solid Waste Management 1084571 1005465 162807.44
9 N.S.D.P 10884 356930 119088.07
10 Flood Damage Relief
Fund 97184 729379 2134914.36
11 Water Suplly Contribution 43887 56904 1253011.01
12 T.P. Development
Charges 25807 174813 765169.54
13 E.I.U.S. 526797 0 987954.62
14 Tribal Sub Plan 310548 137792 223639.23
15 Elections 57 0 1678.93
16 Rajiv Nagar Bata 234 0 6853.34
17 Office Building 6236945 3494249 3746547
18 Shop Room R. F( IDSMT) 10252 0 300625.22
19 ILCS Stage II 49669 0 1457378.37
20 IDSMT 254100 0 7451107.68
21 Adverse seasonal
Conditions 10382 0 304434.27
22 School Buildings 465872 0 518890.94
23 A.P.U.R.M.S.P 7368 0 64762.14
305
24 A.P.U.R.M.S.P 5088767 3227894 1981000
25 Park & Play Grounds 195214 378450 2301698.86
26 E-Seva Kendram 436 0 12764.66
27 B.S.Y. 403 40 11882
28 U.B.S.P 1797 0 52704
29 U.B.S.P 7817 0 229266
30 U.B.S.P 96 0 2817.90
31 Adverse seasonal
Conditions 490 0 14382
32 Old age pension 9835605 9679334 205995.50
33 N.F.B.S 3943 40 116553
34 Plan Grant 3370000 0 3370000
35 Janmabhoomi 15175 0 448741
36 Community Seva
Kendram 277 40 8147
37 Flood Damage works 8453 40 249940
38 D.C.P 7798 0 228635.87
39 Akshara Kranthi 1475 0 2137.75
40 NRY 510 0 14948
41 A.C.D.P 1081516 1399045 242594
42 Pavala vaddi 513947 560161 34257
43 MEPMA 70052 63641 6411
44 Urban Health Centre 528686 278058 250810
45 Building Penalisation
Scheme
281060 215 280845
46 Infraustructure 3603 0 105649.67
47 Pavala Vaddi Pathakam 191 40 5595
Total 30328067 22796323 31286756.3
Hence, action would need to be taken to submit the Utilization Certificates
for the counter signature of the District Audit Officer, State Audit, Srikakulam
immediately.
(Para No. 85 of AR of MC Amadalavalasa, Srikakulam dist. For 2008-09)
17. SURCHARGE CERTIFICATES RECOVERY PENDING
In accordance with the provision of the State Audit Act, 1989 and Rules issued
there under, the audit of local authorities and schemes as entrusted by the Government
is being conducted and various defects noticed during the audit also pointed out in the
relevant ARs every year. In the case of serious irregularities, Special Letters are also
issued to the Chief Executive Authorities concerned to make the loss good to the
funds of the institutions concerned.
Pursuant to the special letters, surcharge action as per Sec. 10 of the State
Audit Act, 1989 is initiated for recovery of the amounts involved in the clear cases of
loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular
payments. The amount surcharged have to be recovered from the concerned treating
them as Revenue Recoverable under Revenue Recovery Act , 1864 and as per sub-
306
rule 5 of rule 9 of A.P. State Audit Rules issued in G.O. Ms. No. 130, Finance &
Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the
cases mentioned in the statement appended herewith.
A statement of 190 such cases involving an amount of Rs. 47.44 lakhs is
appended as Statement No. 4(2) 3 to this report.
18. OTHERS
A Consolidated Statement No. 4 (2) 3 showing audit objections on others is
appended to the Report from which it could be seen that an amount of Rs. 697.89
lakhs was pointed out in 367 Audit Paras .
18.1 MC, VIZIANAGARAM –LIBRARY CESS NOT REMITTED
TO ZGS – NEEDS REMITTANCE TO ZGS FUNDS – Rs. 250000/-
During the course of audit, it is noticed that an amount of Rs.2,50,000/- was
drawn and paid from Library Cess Funds (A/c No.10576588604) towards expenditure
on surrender leave salaries of PH staff under 002 MC General Funds. Which is
irregular and violation of rules. The Library cess collected may be kept in inoperative
account and transferred to ZGS in monthly intervals.
Hence the same amount may be reimbursed from 002 Municipal General
Funds and remitted to the Secretary, Zilla Grandhalaya Samstha and Vizianagaram to
head of account concerned.
(Para No. 78 of AR of MC Vizianagaram, Vizianagaram dist. For 2008-09)
18.2. MC, ZAHEERABAD, MEDAK – ANALYSIS OF REVENUE RECEIPTS
WITH REFERENCE TO THE TARGETS FIXED IN THE BUDGET:
During year under report the actual in respect of revenue receipts fell short of
the budget estimates as shown below.
Rs. in lakhs
Sl.
No. Item of receipt
Budget
estimate Actuals Shortfall
Percentage
of short fall
1. Property tax 159.72 97.20 62.52 39.14
2. Advertisement tax 0.66 0.16 0.50 75.75
3 Vacant land tax 6.65 0 6.65 100
4. Surcharge on stamp duty 35.92 78.75 0 0
5. Entertainment tax 9.97 8.51 1.46 14.64
Other misc revenue:
1. Mutations 0.66 0.20 0.46 70
2. Sale of tender schedule
and other forms
0.31 0 0.31 100
307
3. Registration of birth and
deaths
0.60 0.018 0.58 97
4. Contractors registration fee 0.26 0 0.26 100
5. Warrant fee 0.12 0 0.12 100
6 Water charges 18.63
Remunerative Enterprises:
1. Land Rents 0.45 0 0.45 100
2. Market fee 3.32 2.45 0.87 26.20
3. Trade licence fee 1.46 0.20 1.26 86.30
4. Rents of buildings and
shops
11.97 0.37 11.6 97
On the whole, targets were not reached in many items of the revenue. But,
100% shortfalls are noticed in the respect of many items of non-tax revenue.
Necessary steps needs to be taken to improve the collections in respect of the sources
of non-tax revenue.
(Para No. 8 of A.R. of M. C. Zaheerabad, Medak District for the year 2008-09)
18.3 MC CHIRALA, PRAKASAM - DRAWAL OF AMOUNT FROM IHSDP
FUNDS THROUGH UN-KNOWN CHEQUES - EXPENDITURE DETAILS
NOT RECORDED IN CASH BOOK - VOUCHERS & CHEQUE BOOK NOT
PRODUCED – CHANCE FOR MISAPPROPRIATION - NEEDS
INVESTIGATION - RS. 5, 67,617/-
During the course of audit, while verifying the Cash Book with reference to
the Bank Statement of IHSDP Funds lodged in Andhra Bank, Wanaparthy bearing
A/c No. 063210011903823, it is noticed that a sum of Rs. 5,67,617/- was drawn
through cheques as noted below:-
1) Cheque No. 988891, Dated: 31.12.2008 Rs: 3,82,478/-
2) Cheque No. 988892, Dated: 01.01.2009 Rs: 1,85,139/-
---------------------
Rs. 5,67,617/-
---------------------
On verification of Cash Book, it is noticed that the details of expenditure were
not pointed out in cash book and the vouchers were also not produced in spite of
several reminders through Half Margin letters. Further, the above cheque numbers
were not tallied with the cheque series of IHSDP account. The cheque book of above
series was also not produced to audit, due to which to whom the cheques were issued
could not be verified in audit. In view of the above, it is presumed that another cheque
book might have been obtained from the bank and drawn the amount from IHSDP
funds without noting the details of expenditure in the cash book.
308
Therefore, the executive authority concerned would need to investigate the
matter and if any loss/fraud caused in this regard may be recovered from the person or
persons responsible and credited to IHSDP Funds under intimation to audit.
(Para No. 69 of AR of MC Chirala, Prakasam dist. For 2008-09)
18.4 MC TANDOOR, RANGA REDDY- ABNORMAL EXPENDITURE
TOWARDS PURCHASE OF DIESEL - CERTAIN DEFECTS NOTICED - Rs.
15, 73,977/-.
In the following vouchers an amount of Rs.15, 73,977/- was drawn and
paid towards diesel and petrol for office vehicles, tractor and generator purchased.
During the course of audit on verification of connected records the
following defects were noticed, as detailed below.
1. The log books were not maintained in a systematic manner and the same was
not attested by the concerned authority from time to time.
2. Trip sheets were not produced duly attested for verification.
3. The mileage of the tractors was very low. The mileage of 2km. P.L. is being
shown, which shows the stage of condemnation of the vehicles or repairing the
tracts.
4. There is no uniformity in consumption of diesel for Generator, mainly
according to the records produced by the executive authority; as such the
consumption is very high compared to previous years more than 2000 liter per
month.
The executive authorities did not initiate any economic steps in
consumption of diesel and petrol for both sanctioned generator and gave room for mis
- utilization of the municipal funds in the name of the diesel purchase.
Immediate action would need to be taken to initiate a detailed enquiry in
utilization of diesel by the departmental officers and fact needs to be brought to notice
of the audit department.
(Para No. 22 of AR of MC Tandoor, Ranga Reddy dist. For 2008-09)
18.5 MC MIRYALAGUDA, NALGONDA - PAYMENT OF DIESEL AND OIL
CHARGES TO THE OFFICE AND PRIVATE TRACTORS ENGAGED IN
THE SANITARY SECTION – DEFECTS IN AMOUNT HELD UNDER
OBJECTION Rs. 19, 30,372/-
During the year, an amount of Rs. 19,30,372/- has been spent on purchase of
Diesel and Oil to the office and private tractors engaged in the sanitary section. On
verification of the slip enclosed to the paid vouchers it was noticed that the quantities
of the diesel and oil mentioned in the slip are not tallied with log books of the office
tractors and the dates of slips are also at variance with the dates and quantities in the
log book. Further the vehicle registration numbers and names of owners the
private tractors were also not mentioned in the slips and vouchers. In absence of
which the amount of Rs. 19, 30,372/- is held under objection.
309
AMOUNT SPENT ON PURCHASE OF DIESEL AND OIL FOR SANITARY
SECTION TRACTOR (8) NO-S
Vr.No. & Date Particulars Amount
7/04/08 Purchase of Diesel for sanitary section 73761
690/9-2-08 -do- 94631
691/9-2-08 -do- 102222
693/12-08-09 -do- 119460
694/12-08-09 -do- 88434
260/11-08-08 -do- 183274
259/11-08-08 -do- 75227
196/08-07-08 -do- 77660
195/08-07-08 -do- 56932
145/17-06-08 -do- 14705
132/04-06-08 -do- 84350
547/11-11-08 -do- 2850
433/13-10-08 -do- 144859
90/15-05-08 -do- 63940
553/13-11-08 -do- 68093
554/13-11-08 -do- 35453
555/13-11-08 -do- 74736
260/09-01-09 -do- 57925
259/09-01-09 -do- 133958
268/27-01-09 -do- 1255
214/15-12-08 -do- 90282
215/15-12-08 -do- 150086
132/15-12-08 -do- 90940
131/02-09-08 -do- 83154
19/21-05-08 -do- 2185
TOTAL:- 1970372
(Para No. 27 of AR of MC Miryalaguda, Nalgonda dist. For 2008-09)
19. DDS / CHEQUES RECEIVED BUT NOT REALIZED WITHIN TIME
-NIL-
DATE: 01-03-2012
HYDERABAD DIRECTOR,
STATE AUDIT,
A.P., HYDERABAD.
310
STATEMENT No. 1
STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF
MUNICIPALITIES FOR THE YEAR (2008-09)
Sl.
No.
NAME OF THE
DISTRICT
DEMAND AS ON
01-04-2009
AUDIT
COMPLETED AS
ON 31-3-2010
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 Adilabad 0 6 0 6 0 0
2 Ananthapur 38 7 7 0 31 7
3 Chittoor 6 3 2 0 4 3
4 East godavari 0 7 0 4 0 3
5 Guntur 15 11 4 6 11 5
6 Kadapa 39 6 1 0 38 6
7 Karimnagar 0 4 0 2 0 2
8 Khammam 1 7 1 6 0 1
9 Krishna 13 5 1 0 12 5
10 Kurnool 32 4 0 0 32 4
11 Mahaboobnagar 7 3 0 3 7 0
12 Medak 2 5 0 5 2 0
13 Nalgonda 9 4 1 4 8 0
14 Nellore 34 3 0 0 34 3
15 Nizamabad 0 3 0 3 0 0
16 Prakasam 13 4 9 2 4 2
17 Ranga reddy 2 2 2 2 0 0
18 Srikakulam 0 5 0 5 0 0
19 Visakhapatnam 0 2 0 2 0 0
20 Vizianagaram 9 4 3 0 6 4
21 Warangal 0 2 0 0 0 2
22 West godavari 18 7 7 0 11 7
TOTAL: 238 104 38 50 200 54
311
STATEMENT No. 2
STATEMENT OF CONSOLIDATED (DIST WISE) RECEIPTS AND
EXPENDITURE OF MUNICIPALITIES FOR THE YEAR 2008-09
Rs. In lakhs
SL
No.
NAME OF THE
DISTRICT RECEIPTS EXPENDITURE
1 Adilabad 1537.40 1326.12
2 Ananthapur 0.00 0.00
3 Chittoor 0.00 0.00
4 East Godavari 2066.40 1862.55
5 Guntur 2606.54 2002.91
6 Kadapa 0.00 0.00
7 Karimnagar 1576.14 1419.87
8 Khammam 2784.30 2586.55
9 Krishna 0.00 0.00
10 Kurnool 0.00 0.00
11 Mahaboobnagar 457.86 553.59
12 Medak 1835.88 1373.97
13 Nalgonda 1290.29 728.36
14 Nellore 0.00 0.00
15 Nizamabad 3455.50 3639.97
16 Prakasam 2333.24 2221.69
17 Ranga Reddy 1177.63 962.00
18 Srikakulam 2502.15 2234.06
19 Visakhapatnam 904.34 428.59
20 Vizianagaram 0.00 0.00
21 Warangal 0.00 0.00
22 West Godavari 0.00 0.00
TOTAL: 24527.67 21340.23
Note: Zeroes in all the Statements indicate non availability of information
312
STATEMENT 2 (1) 1
CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MUNICIPALITIES
FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
NAME OF
THE
DISTRICT
General fund Lighting fund Education fund Water supply &
Drainage fund Town Planning
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 1358.00 1018.80 0.08 64.36 0.00 0.00 36.78 133.87 22.48 15.45
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 1041.33 953.18 62.64 56.19 463.72 471.92 188.57 94.40 32.55 21.58
5 Guntur 1586.61 1149.85 317.45 223.85 182.63 105.90 304.81 328.92 47.33 33.95
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 511.73 281.38 0.00 15.23 0.00 0.00 1030.55 1082.72 17.32 6.33
8 Khammam 1889.47 1751.70 7.95 25.44 0.00 0.00 160.72 225.09 147.81 49.23
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 301.54 301.54 0.00 0.00 0.00 0.00 101.79 104.11 25.54 8.31
12 Medak 1510.90 821.03 11.28 34.29 0.00 0.00 150.20 288.12 42.28 22.16
13 Nalgonda 66.59 108.74 0.00 79.58 0.00 139.78 199.37 186.01 140.97 19.61
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 284.95 1400.35 421.45 108.52 0.00 0.00 833.10 645.80 0.00 0.00
16 Prakasam 1710.85 1557.52 117.99 71.45 164.85 125.80 121.30 110.33 36.40 26.04
17 Ranga Reddy 652.83 596.90 0.00 33.07 0.00 0.00 101.10 88.53 58.80 6.96
18 Srikakulam 1472.92 1217.24 100.00 186.25 307.39 277.25 266.37 184.04 105.90 21.57
19 Visakhapatnam 464.97 277.31 62.58 39.73 192.36 24.33 102.04 28.47 17.20 4.66
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 12852.69 11435.54 1101.42 937.96 1310.95 1144.98 3596.70 3500.41 694.58 235.85
Note: In Krishna, Nellore and Warangal Districts audits for the year 2008-09 could not be conducted due to non production of Annual Accounts.
313
STATEMENT 2 (1) 2
CONSOLIDATED STATEMENT OF FUND WISE RECEIPTS AND PAYMENTS OF MUNICIPALITIES
FOR THE YEAR 2008-09
Rs. In lakhs
SL
No.
NAME OF
THE
DISTRICT
Deposit fund Advances fund Pension fund Provident fund Grand Total
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 94.29 76.13 25.77 17.51 0.00 0.00 0.00 0.00 1537.40 1326.12
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 67.91 81.20 0.00 0.00 13.69 13.85 195.99 170.23 2066.40 1862.55
5 Guntur 166.69 155.16 0.12 0.50 0.08 1.94 0.82 2.84 2606.54 2002.91
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 16.04 22.98 0.50 11.23 0.00 0.00 0.00 0.00 1576.14 1419.87
8 Khammam 95.80 54.48 0.13 1.32 482.42 479.29 0.00 0.00 2784.30 2586.55
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 25.89 136.18 3.10 3.45 0.00 0.00 0.00 0.00 457.86 553.59
12 Medak 40.20 130.26 0.81 3.22 80.21 74.89 0.00 0.00 1835.88 1373.97
13 Nalgonda 883.36 194.64 0.00 0.00 0.00 0.00 0.00 0.00 1290.29 728.36
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 499.80 387.50 249.90 193.70 833.10 645.80 333.20 258.30 3455.50 3639.97
16 Prakasam 181.85 330.55 0.00 0.00 0.00 0.00 0.00 0.00 2333.24 2221.69
17 Ranga Reddy 4.08 6.27 0.00 4.59 0.00 0.00 360.82 225.68 1177.63 962.00
18 Srikakulam 178.58 273.86 40.11 39.23 27.67 32.62 3.21 2.00 2502.15 2234.06
19 Visakhapatnam 3.08 4.77 0.60 1.04 50.18 41.55 11.33 6.73 904.34 428.59
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 2257.57 1853.98 321.04 275.79 1487.35 1289.94 905.37 665.78 24527.67 21340.23
Note: In Krishna, Nellore and Warangal Districts audits for the year 2008-09 could not be conducted due to non production of Annual Accounts.
314
STATEMENT No. 3
CONSOLIDATED STATEMENT OF GOVERNMENT GRANTS SANCTIONED
AND
EXPENDITURE INCURRED FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No. Name Of The District Receipts Payment
1 Adilabad 822.19 831.04
2 Ananthapur 0.00 0.00
3 Chittoor 0.00 0.00
4 East Godavari 577.01 654.55
5 Guntur 69.83 11.25
6 Kadapa 0.00 0.00
7 Karimnagar 95.74 88.56
8 Khammam 323.11 261.63
9 Krishna 0.00 0.00
10 Kurnool 0.00 0.00
11 Mahaboobnagar 193.95 266.05
12 Medak 432.16 349.23
13 Nalgonda 482.23 467.54
14 Nellore 0.00 0.00
15 Nizamabad 0.00 226.06
16 Prakasam 274.38 294.62
17 Ranga Reddy 354.81 230.20
18 Srikakulam 1244.99 1318.60
19 Visakhapatnam 643.31 690.23
20 Vizianagaram 0.00 0.00
21 Warangal 0.00 0.00
22 West Godavari 0.00 0.00
TOTAL: 5513.71 5689.56
315
STATEMENT 3(1) 1
CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
Name Of The
District Teaching grant SJSRY Grant
Environments
improvement
grant
Integrated
development of
small towns grant Women welfare
Slum
improvement
Drought relief
flood relief grant
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 0.00 0.00 1.69 1.08 6.67 8.96 43.10 54.84 0.00 0.00 0.27 2.31 12.83 16.33
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 416.01 443.29 16.10 18.81 0.75 5.27 8.08 37.58 0.00 0.00 0.00 0.00 0.00 0.00
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83 11.25
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 0.00 0.00 6.34 8.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Khammam 0.00 0.00 19.91 7.50 0.31 0.00 37.31 37.08 0.31 0.00 0.00 0.00 1.22 5.55
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 47.48 60.24 18.48 13.73 0.00 0.00 13.00 0.00 0.00 0.00 40.32 120.07 0.01 0.00
12 Medak 0.00 0.00 5.11 12.28 0.03 0.00 130.87 32.86 56.89 58.68 0.00 0.00 9.20 8.96
13 Nalgonda 0.00 0.00 37.59 28.12 0.00 0.00 22.33 0.00 0.00 0.00 0.00 0.00 10.61 17.17
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 71.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 180.95 176.72 5.50 14.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 4.93
17 Ranga Reddy 2.10 2.79 30.18 4.44 0.00 0.00 105.45 17.05 0.00 0.00 0.25 0.00 30.08 29.44
18 Srikakulam 583.28 608.96 5.68 2.68 21.20 7.26 24.08 17.13 0.52 113.07 0.11 3.57 8.60 26.04
19 Visakhapatnam 519.49 443.21 1.27 2.78 0.00 0.00 13.37 116.19 0.00 0.00 0.15 0.33 37.88 47.39
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 1749.31 1735.21 147.85 185.78 28.96 21.49 397.59 312.73 57.72 171.75 41.10 126.28 180.39 167.06
316
STATEMENT 3(1) 2
CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR
2008-09
Rs. In lakhs
Sl
No.
Name Of The
District Low cost sanitation Master Plan grant
Urban poverty
alleviation grant
Shelter upgradation
from housing
corporation grant
Assembly
constituency
development
grant
Urban services
poor grant
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 0.43 0.00 60.95 35.27 0.00 0.00 0.00 0.00 55.64 63.23 91.37 91.29
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 0.98 10.84 0.00 10.84 0.00 0.00 0.00 0.00 5.91 6.16 0.21 0.30
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Khammam 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 2.78 1.68 0.00 0.00
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 0.12 0.08 74.54 71.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12 Medak 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.50 29.39 0.00 0.00
13 Nalgonda 0.00 0.00 0.00 1.37 3.48 0.39 0.00 0.00 5.27 6.57 13.61 32.13
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 58.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
17 Ranga Reddy 0.15 0.00 25.00 24.43 0.00 0.00 0.00 0.00 14.88 21.66 0.00 0.00
18 Srikakulam 0.80 0.54 0.00 0.54 0.00 0.00 0.00 0.00 21.81 26.28 73.54 99.16
19 Visakhapatnam 0.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 3.10 11.46 160.51 202.51 3.48 0.39 0.00 0.00 137.81 154.97 178.73 222.88
317
STATEMENT 3(1) 3
CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR
2008-09
Rs. In lakhs
Sl
No.
Name Of The
District NSDP grant
Parks & Play
grounds grant
C.M Special
grant
Special
component
(SC) grant
Tribal sub plan
(ST) grant
Development
of Satelite town
grant
Decentralisation
grant
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 1.48 9.34 16.36 12.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 0.50 5.01 2.94 21.74 52.59 26.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 16.50 1.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Khammam 0.55 0.28 3.68 0.00 100.41 54.78 0.00 0.00 0.18 1.54 0.00 0.00 0.00 0.00
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12 Medak 0.22 35.49 0.92 4.18 0.11 0.00 1.25 2.01 0.00 0.00 0.00 0.00 0.00 0.00
13 Nalgonda 0.87 4.36 26.59 16.09 0.00 0.00 0.00 0.00 0.00 0.00 1.66 5.01 0.00 0.00
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.01 0.01 0.08 0.95
18 Srikakulam 6.20 8.03 9.83 9.36 116.15 88.31 1.14 0.00 3.11 1.38 0.00 0.00 0.09 0.00
19 Visakhapatnam 0.41 1.89 4.68 14.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 26.73 66.19 65.00 78.83 269.26 169.33 2.39 2.01 3.29 2.92 2.67 5.02 0.18 0.95
318
STATEMENT 3(1) 4
CONSOLIDATED STATEMENT OF GRANTS WISE RECEIPTS & PAYMENTS IN MUNICIPATIES FOR THE YEAR
2008-09
Rs. In lakhs
Sl
No.
Name Of The
District
E-seva centres
grant
Old age pension
grant
Balika Sumrudhi
Yojana grant
Urban service
project grant
Eco conservation
grant
Mega city project
grant Grand Total
Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments Receipts Payments
1 Adilabad 3.97 13.52 358.80 368.06 0.00 0.00 168.63 163.20 0.00 0.00 0.00 0.00 822.19 831.04
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 0.00 0.00 72.94 73.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 577.01 654.55
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83 11.25
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 0.00 7.21 72.90 71.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 95.74 88.56
8 Khammam 0.02 0.00 156.09 153.22 0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 323.11 261.63
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 193.95 266.05
12 Medak 0.09 0.00 195.87 165.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 432.16 349.23
13 Nalgonda 0.00 0.00 355.55 350.33 0.00 0.00 4.67 6.00 0.00 0.00 0.00 0.00 482.23 467.54
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 12.92 0.00 83.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 226.06
16 Prakasam 0.00 0.00 87.80 98.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 274.38 294.62
17 Ranga Reddy 0.02 0.05 127.82 108.39 0.00 0.00 17.87 21.94 0.00 0.00 0.00 0.00 354.81 230.20
18 Srikakulam 0.01 0.00 368.84 313.55 0.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00 1244.99 1318.60
19 Visakhapatnam 0.00 0.00 65.52 63.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 643.31 690.23
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 4.11 33.70 1862.13 1849.41 0.32 0.00 191.26 191.14 0.00 0.00 0.00 0.00 5513.71 5689.56
319
STATEMENT 3(2) 1
CONSOLIDATED STATEMENT OF RECEIPTS GRANTS WISE IN MUNICIPATIES FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
Name Of The
District
Teachin
g grant
SJSRY
Grant
Environ
ments
improve
ment
grant
Integrate
d
developm
ent of
small
towns
grant
Wome
n
welfare
Slum
impro
vemen
t
Drought
relief
flood
relief
grant
Low
cost
sanita
tion
Master
Plan
grant
Urban
poverty
alleviatio
n grant
Shelter
upgradation
from housing
corporation
grant
Assembly
constituency
development
grant
Urban
services
poor
grant
1 Adilabad 0.00 1.69 6.67 43.10 0.00 0.27 12.83 0.43 60.95 0.00 0.00 55.64 91.37
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 416.01 16.10 0.75 8.08 0.00 0.00 0.00 0.98 0.00 0.00 0.00 5.91 0.21
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 69.83 0.00 0.00 0.00 0.00 0.00 0.00
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 0.00 6.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Khammam 0.00 19.91 0.31 37.31 0.31 0.00 1.22 0.00 0.02 0.00 0.00 2.78 0.00
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 47.48 18.48 0.00 13.00 0.00 40.32 0.01 0.12 74.54 0.00 0.00 0.00 0.00
12 Medak 0.00 5.11 0.03 130.87 56.89 0.00 9.20 0.10 0.00 0.00 0.00 31.50 0.00
13 Nalgonda 0.00 37.59 0.00 22.33 0.00 0.00 10.61 0.00 0.00 3.48 0.00 5.27 13.61
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 180.95 5.50 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.00 0.00 0.00 0.00
17 Ranga Reddy 2.10 30.18 0.00 105.45 0.00 0.25 30.08 0.15 25.00 0.00 0.00 14.88 0.00
18 Srikakulam 583.28 5.68 21.20 24.08 0.52 0.11 8.60 0.80 0.00 0.00 0.00 21.81 73.54
19 Visakhapatnam 519.49 1.27 0.00 13.37 0.00 0.15 37.88 0.52 0.00 0.00 0.00 0.02 0.00
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 1749.31 147.85 28.96 397.59 57.72 41.10 180.39 3.10 160.51 3.48 0.00 137.81 178.7
3
320
STATEMENT 3(2) 2
CONSOLIDATED STATEMENT OF RECEIPTS GRANTS WISE IN MUNICIPATIES FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
Name Of The
District
NSD
P
grant
Parks
&
Play
groun
ds
grant
C.M
Special
grant
Special
compone
nt (SC)
grant
Tri
bal
sub
plan
(ST)
gra
nt
Develop
ment
ofSatelit
e town
grant
E-
seva
centr
es
gran
t
Old age
pension
grant
Balika
Sumrud
hi
Yojana
grant
Urban
service
project
grant
Eco
conser
vation
grant
Meg
a
city
proj
ect
gran
t
Grand
Total
1 Adilabad 1.48 16.36 0.00 0.00 0.00 0.00 3.97 358.80 0.00 168.63 0.00 0.00 822.19
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 0.50 2.94 52.59 0.00 0.00 0.00 0.00 72.94 0.00 0.00 0.00 0.00 577.01
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.83
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 16.50 0.00 0.00 0.00 0.00 0.00 0.00 72.90 0.00 0.00 0.00 0.00 95.74
8 Khammam 0.55 3.68 100.41 0.00 0.18 0.00 0.02 156.09 0.32 0.00 0.00 0.00 323.11
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 193.95
12 Medak 0.22 0.92 0.11 1.25 0.00 0.00 0.09 195.87 0.00 0.00 0.00 0.00 432.16
13 Nalgonda 0.87 26.59 0.00 0.00 0.00 1.66 0.00 355.55 0.00 4.67 0.00 0.00 482.23
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 87.80 0.00 0.00 0.00 0.00 274.38
17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 1.01 0.02 127.82 0.00 17.87 0.00 0.00 354.81
18 Srikakulam 6.20 9.83 116.15 1.14 3.11 0.00 0.01 368.84 0.00 0.09 0.00 0.00 1244.99
19 Visakhapatnam 0.41 4.68 0.00 0.00 0.00 0.00 0.00 65.52 0.00 0.00 0.00 0.00 643.31
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 26.73 65.00 269.26 2.39 3.29 2.67 4.11 1862.13 0.32 191.26 0.00 0.00 5513.71
321
STATEMENT 3(3) 1
CONSOLIDATED STATEMENT OF PAYMENTS GRANT WISE IN MUNICIPATIES FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
Name Of The
District
Teaching
grant
SJSRY
Grant
Environm
ents
improvem
ent grant
Integrated
developme
nt of small
towns
grant
Women
welfare
Slum
improvem
ent
Drought
relief flood
relief
grant
Low cost
sanitation
Master
Plan grant
Urban
poverty
alleviation
grant
Shelter
upgradatio
n from
housing
corporatio
n grant
Assembly
constituen
cy
developme
nt grant
Urban
services
poor grant
1 Adilabad 0.00 1.08 8.96 54.84 0.00 2.31 16.33 0.00 35.27 0.00 0.00 63.23 91.29
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 443.29 18.81 5.27 37.58 0.00 0.00 0.00 10.84 10.84 0.00 0.00 6.16 0.30
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 11.25 0.00 0.00 0.00 0.00 0.00 0.00
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 0.00 8.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Khammam 0.00 7.50 0.00 37.08 0.00 0.00 5.55 0.00 0.00 0.00 0.00 1.68 0.00
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 60.24 13.73 0.00 0.00 0.00 120.07 0.00 0.08 71.93 0.00 0.00 0.00 0.00
12 Medak 0.00 12.28 0.00 32.86 58.68 0.00 8.96 0.00 0.00 0.00 0.00 29.39 0.00
13 Nalgonda 0.00 28.12 0.00 0.00 0.00 0.00 17.17 0.00 1.37 0.39 0.00 6.57 32.13
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 71.05 0.00 0.00 0.00 0.00 0.00 0.00 58.13 0.00 0.00 0.00 0.00
16 Prakasam 176.72 14.75 0.00 0.00 0.00 0.00 4.93 0.00 0.00 0.00 0.00 0.00 0.00
17 Ranga Reddy 2.79 4.44 0.00 17.05 0.00 0.00 29.44 0.00 24.43 0.00 0.00 21.66 0.00
18 Srikakulam 608.96 2.68 7.26 17.13 113.07 3.57 26.04 0.54 0.54 0.00 0.00 26.28 99.16
19 Visakhapatnam 443.21 2.78 0.00 116.19 0.00 0.33 47.39 0.00 0.00 0.00 0.00 0.00 0.00
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West
Godavari
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 1735.21 185.78 21.49 312.73 171.75 126.28 167.06 11.46 202.51 0.39 0.00 154.97 222.88
322
STATEMENT 3(3) 2
CONSOLIDATED STATEMENT OF PAYMENTS GRANT WISE IN MUNICIPATIES FOR THE YEAR 2008-09
Rs. In lakhs
Sl
No.
Name Of The
District
NSDP
grant
Parks &
Play
grounds
grant
C.M
Special
grant
Special
compo
nent
(SC)
grant
Tribal
sub plan
(ST)
grant
Develop
ment
ofSateli
te town
grant
E-seva
centre
s
grant
Old age
pension
grant
Balika
Sumru
dhi
Yojana
grant
Urban
service
project
grant
Eco
conserv
ation
grant
Mega
city
project
grant
Grand
Total
1 Adilabad 9.34 12.57 0.00 0.00 0.00 0.00 13.52 368.06 0.00 163.20 0.00 0.00 831.04
2 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 Chittoor 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 East Godavari 5.01 21.74 26.24 0.00 0.00 0.00 0.00 73.74 0.00 0.00 0.00 0.00 654.55
5 Guntur 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11.25
6 Kadapa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Karimnagar 1.79 0.00 0.00 0.00 0.00 0.00 7.21 71.00 0.00 0.00 0.00 0.00 88.56
8 Khammam 0.28 0.00 54.78 0.00 1.54 0.00 0.00 153.22 0.00 0.00 0.00 0.00 261.63
9 Krishna 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Kurnool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 Mahaboobnagar 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 266.05
12 Medak 35.49 4.18 0.00 2.01 0.00 0.00 0.00 165.38 0.00 0.00 0.00 0.00 349.23
13 Nalgonda 4.36 16.09 0.00 0.00 0.00 5.01 0.00 350.33 0.00 6.00 0.00 0.00 467.54
14 Nellore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 12.92 83.97 0.00 0.00 0.00 0.00 226.06
16 Prakasam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 98.22 0.00 0.00 0.00 0.00 294.62
17 Ranga Reddy 0.00 0.00 0.00 0.00 0.00 0.01 0.05 108.39 0.00 21.94 0.00 0.00 230.20
18 Srikakulam 8.03 9.36 88.31 0.00 1.38 0.00 0.00 313.55 0.00 0.00 0.00 0.00 1318.60
19 Visakhapatnam 1.89 14.89 0.00 0.00 0.00 0.00 0.00 63.55 0.00 0.00 0.00 0.00 690.23
20 Vizianagaram 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
21 Warangal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22 West Godavari 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL: 66.19 78.83 169.33 2.01 2.92 5.02 33.70 1849.41 0.00 191.14 0.00 0.00 5689.56
323
STATEMENT No. 4
CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT
OBJECTIONS RAISED (DIST WISE) AND AMOUNT INVOLVED FOR THE
YEAR 2008-09 (MUNICIPALITIES)
Rs. In lakhs.
Sl.
No.
NAME OF THE DISTRICT No. AMOUNT
1 Adilabad 289 978.28
2 Ananthapur 0 0.00
3 Chittoor 0 0.00
4 East Godavari 376 403.63
5 Guntur 330 837.97
6 Kadapa 0 0.00
7 Karimnagar 111 131.30
8 Khammam 225 732.64
9 Krishna 0 0.00
10 Kurnool 0 0.00
11 Mahaboobnagar 147 571.64
12 Medak 206 1257.22
13 Nalgonda 205 737.36
14 Nellore 0 0.00
15 Nizamabad 720 3045.26
16 Prakasam 239 227.30
17 Ranga Reddy 96 223.17
18 Srikakulam 606 874.34
19 Visakhapatnam 246 380.58
20 Vizianagaram 0 0.00
21 Warangal 0 0.00
22 West Godavari 0 0.00
TOTAL 3796 10400.69
324
STATEMENT No. 4 (1)
CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS
RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
(MUNICIPALITIES)
Rs. In lakhs.
Sl. No. NAME OF THE CATEGORY No. AMOUNT
1 Variation in Account Figures 61 131.88
2 Excess Utilisation of Grants / Funds 24 7.89
3 Diversion of Grants / Funds 36 119.94
4 Non-utilisation of grants before the lapsable date 65 38.33
5 Mis-utilisation of Grants / Funds 13 9.85
6 Non- utilisation of Earmarked Funds 65 48.79
7 Non-collection of dues 228 1043.99
8 Advances pending adjsutemnt 100 222.50
9 Violation of Rules 738 2959.84
10 Non-remittance of the deductions / Recoveries
from Bills
371 597.09
11 Non Production of Records 1148 3793.26
12 Mis-appropriations 67 59.54
13 Excess Payments 154 62.22
14 Wasteful Expenditure 27 39.13
15 Instances of cases of unaccounted for cash / stores 22 3.13
16 Pendency of Utilisation Certificates 120 517.98
17 Surcharges Certificates- Recovery Pending 190 47.44
18 Others 367 697.89
19 D.D. Cheques received but not realised with in
time
0 0.00
Total: 3796 10400.69
325
STATEMENT 4(2) 1
STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09 Rs. In lakhs.
Sl.
No.
NAME OF THE
DISTRICT
VARIATION IN ACCOUNT
FIGURES
EXCESS
UTILISATION OF
GRAMTES/FUNDS
DIVERSION OF
GRANTS/FUNDS
NON-UTILISATION
OF GRANTS BEFORE
THE LASPSABLE
DATE
MIS-UTILISATION OF
GRANTS/FUNDS
NON-UTILISATION OF
EARMARKED FUNDS
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 0 0.00 2 0.00 4 29.53 0 0.00 0 0.00 1 0.00
2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0
3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0
4 East Godavari 2 5.78 2 0.00 2 14.39 0 0.00 1 0.00 0 0.00
5 Guntur 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0
7 Karimnagar 0 0.00 0 0.00 0 0.00 1 0.00 1 0.21 1 0.00
8 Khammam 2 0.00 0 0.00 3 29.15 6 0.00 0 0.00 2 0.00
9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0
11 Mahaboobnagar 2 0.00 1 0.00 4 0.96 0 0.00 5 9.64 2 0.00
12 Medak 3 4.20 2 0.00 5 30.87 0 0.00 0 0.00 2 25.89
13 Nalgonda 0 0.00 9 7.85 6 4.39 7 17.83 2 0.00 16 22.90
14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
15 Nizamabad 40 121.90 0 0.00 0 0.00 40 0.00 0 0.00 40 0.00
16 Prakasam 2 0.00 2 0.00 6 3.94 0 0.00 2 0.00 0 0.00
17 Ranga Reddy 5 0.00 2 0.00 2 0.25 0 0.00 1 0.00 1 0.00
18 Srikakulam 1 0.00 2 0.04 1 0.00 7 20.50 0 0.00 0 0.00
19 Visakhapatnam 4 0.00 2 0.00 3 6.46 4 0.00 1 0.00 0 0.00
20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0
21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0
22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 61 131.88 24 7.89 36 119.94 65 38.33 13 9.85 65 48.79
326
STATEMENT 4(2) 2
STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR 2008-09
Rs. In lakhs.
Sl.
No.
NAME OF THE
DISTRICT
NON-COLLECTION OF
DUES
ADVANCES PENDING
ADJUSTMENT VIOLATION OF RULES
NON REMITTANCE OF
DEDUCTION FROM
WORK BILLS/PAY
BILLS/CONTINGENT
BILLS ETC.
NON-PRODUCTION OF
RECORDS
MIS-
APPROPRIATIONS
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 7 23.43 10 10.22 96 112.41 36 38.79 71 640.61 4 5.29
2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0
3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0
4 East Godavari 24 7.91 12 10.08 84 144.93 24 18.40 170 194.96 3 0.59
5 Guntur 14 10.30 5 12.71 43 42.09 7 25.34 205 743.66 1 1.30
6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0
7 Karimnagar 8 3.09 1 0.10 34 22.56 12 14.02 28 77.26 7 1.25
8 Khammam 15 263.87 35 56.98 37 194.48 35 79.86 39 99.78 3 1.75
9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0
11 Mahaboobnagar 3 22.55 4 5.47 41 434.43 6 3.35 41 31.68 3 0.93
12 Medak 8 72.96 4 5.68 60 520.00 16 32.76 58 520.19 12 32.13
13 Nalgonda 1 80.05 3 1.42 53 433.54 18 17.27 27 140.64 3 0.89
14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
15 Nizamabad 90 274.00 0 0.00 60 960.27 154 130.00 110 689.81 20 12.80
16 Prakasam 10 0.74 5 5.70 55 11.05 19 33.68 104 151.92 0 0.00
17 Ranga Reddy 10 13.10 2 5.34 7 0.46 12 12.60 15 18.20 0 0.00
18 Srikakulam 23 225.00 7 91.14 125 75.18 18 121.88 218 271.24 9 2.05
19 Visakhapatnam 15 46.99 12 17.66 43 8.44 14 69.14 62 213.31 2 0.56
20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0
21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0
22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 228 1043.99 100 222.5 738 2959.84 371 597.09 1148 3793.26 67 59.54
327
STATEMENT 4(2) 3
STATEMENT SHOWING THE CATEGORY WISE CONSOLIDATED AUDIT OBJECTIONS RAISED DURING THE YEAR2008-09
Rs. In lakhs.
Sl.
No.
NAME OF THE
DISTRICT
EXCESS
PAYMENTS
WASTEFUL
EXPENDITURE
INSTANCES
OF CASES OF
UNACCOUNTED
FOR CASH /
STORES
PENDENCY
OF
UTILISATION
CERTIFICATES
SURCHARGES
CERTIFICATES -
RECOVERY
PENDING
OTHERS
D.D. / CHEQUES
RECEIVED BUT NOT
REALISED WITH IN
TIME
Total
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 5 5.80 7 6.14 0 0.00 1 0.00 0 0.00 45 106.06 0 0.00 289 978.28
2 Ananthapur 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00
3 Chittoor 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0
4 East Godavari 18 5.45 0 0.00 0 0.00 0 0.00 0 0.00 34 1.14 0 0.00 376 403.63
5 Guntur 8 0.71 3 1.81 0 0.00 3 0.00 0 0.00 41 0.05 0 0.00 330 837.97
6 Kadapa 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0
7 Karimnagar 5 0.79 4 7.51 0 0.00 0 0.00 0 0.00 9 4.51 0 0.00 111 131.30
8 Khammam 14 1.28 0 0.00 0 0.00 5 0.00 0 0.00 29 5.49 0 0.00 225 732.64
9 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 0.00 0 0.00
10 Kurnool 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00
11 Mahaboobnagar 10 1.42 0 0.00 1 0.01 0 0.00 0 0.00 24 61.20 0 0.00 147 571.64
12 Medak 15 8.98 1 2.64 0 0.00 2 0.00 0 0.00 18 0.92 0 0.00 206 1257.22
13 Nalgonda 10 2.53 2 4.93 1 3.12 1 0.00 1 0.00 45 0.00 0 0.00 205 737.36
14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
15 Nizamabad 13 1.00 0 0.00 17 0.00 96 363.48 0 0.00 40 492.00 0 0.00 720 3045.26
16 Prakasam 4 7.42 3 3.86 1 0.00 2 0.00 9 0.00 15 8.99 0 0.00 239 227.30
17 Ranga Reddy 3 0.87 1 2.01 1 0.00 3 154.50 6 0.00 25 15.84 0 0.00 96 223.17
18 Srikakulam 12 11.28 4 8.59 0 0.00 5 0.00 174 47.44 0 0.00 0 0.00 606 874.34
19 Visakhapatnam 37 14.69 2 1.64 1 0.00 2 0.00 0 0.00 42 1.69 0 0.00 246 380.58
20 Vizianagaram 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00
21 Warangal 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00
22 West Godavari 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 0 0.00
TOTAL 154 62.22 27 39.13 22 3.13 120 517.98 190 47.44 367 697.89 0 0 3796 10400.69
328
PART-IV
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND
REVIEW REPORT ON THE ACCOUNTS
OF
AGRICULTURAL MARKET
COMMITTEES
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
329
330
CONTENTS
STATEMENT No.
DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF AGRICULTURAL MARKET
COMMITTEES FOR THE YEAR 2008-09
PAGE No.
1 Introductions and a few selected audit objections of Agricultural Market
Committees category wise 333-365
1 Statement showing Dist wise Status of Audit of Agricultural Market Committees for the year 2008-09
367
2 (1) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09
368
(2) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09 (receipts)
369
(3) Statement of Consolidated Receipts & Payments of Agricultural Market Committees for the year 2008-09(Payments)
370
3 3(3)1to 3 Statement showing the consolidated category wise audit objections.
371-373
4 4.(1) Statement showing Number of Audit objections raised
(Category wise) and amount involved for the year 2008-09. 374
5 Consolidated statement showing the Status of audit objections of
(AMCs) 2008-09 375
331
332
CONSOLIDATED AUDIT AND REVIEW REPORT ON THE
ACCOUNTS OF AGRICULTURAL MARKET COMMITTEES FOR
THE YEAR 2008-09
INTRODUCTION
1.1 Under the State Audit Act, 1989 the Director of State Audit, A.P. Hyderabad is
made in charge of the audit of the funds of Local Authorities and other authorities
specified in the Schedule prescribed in the said Act. By virtue of this legal position, the
Director of State Audit, A.P., Hyderabad is the Auditor for the accounts of the AMCs in
the State of Andhra Pradesh. The Number of AMCs in the State is 311 for the year 2008-
09.
1.2 The Department has got offices in all the districts, the District Audit Officer; State
Audit is the head at the district level.
1.3 The Department conducts post audit of the AMCs and Audit Reports consisting of
defects noticed in audit are issued to the Secretary of the AMC concerned who has to take
action for rectifying the defects pointed out in the Audit Report.
1.4 Under the State Audit Act, the Director is vested with the power of disallowing
every item of the expenditure incurred contrary to the law and surcharge the same on the
person incurring or authorizing the incurring of such expenditure and may charge against
any person responsible there for, the amount of any deficiency, loss or unprofitable
outlay occasioned by the negligence or misconduct of that person or of any such sum
which ought to have been accounted for but is not brought into account by that person
and shall, in every such case, certify the amount due from such person.
SCOPE OF AUDIT
2.7 The State Audit Department being one of the limbs of the Government of
Andhra Pradesh verifies the following aspects during the course of post audit of the
AMCs.
Whether the Market fee, License fee and other amounts like leases / rents collected etc.,
by the AMCs were properly accounted for with full details in the books of accounts of the
AMC concerned.
Whether adequate care is taken in periodical checking up of the funds with Treasury or
Bank.
Whether expenditure incurred is provided for in the Budget of the AMC and duly
sanctioned by the competent authority under the relevant rules and executive instructions
issued by the Government.
Whether funds are utilized only for the permitted purposes prescribed under the A.P.
(Agricultural Produce and Live Stock) Markets Act / Rules.
333
Whether the procedure prescribed by Government in incurring the expenditure /payments
made is properly followed and accounted for with due classification in the books of
accounts of the AMC.
Whether vouchers for the expenditure incurred were maintained.
STATUS OF AUDIT
3.1 The current audit of 311 AMCs out of 311 AMCs for the year 2008-09 was
conducted in the year leaving no balance of current audit of AMCs.
3.2 The Department has conducted the audit of the receipts amounting to
Rs. 433.17 crores and payments of Rs. 412.90 crores as detailed in the Statements No.
2 with AMC-wise break up.
3.3 The Pie chart of propositional Percentages of Receipts and Payments of
AMCs during the year 2008-09 is placed below.
PIE CHART OF RECEIPTS OF AMCs FOR THE YEAR 2008-09
76.96%
0.61%
0.06%
1.79%
0.23%
0.96%
5.81%
2.43%
6.24%
15.45%
3.66%
1.25%
MARKET FEES 76.96%
LICENSE FEES 0.61%
LATE FEE 0.06%
PROPERTY RENTAL FEES 1.79%
INTEREST ON INVESTMENT 1.25%
AUCTIONS 0.23%
INCOME FROM MISCELLANEOUS
SOURCES 3.66%
DEPOSITS 0.96%
LOAN 5.81%
ADVANCES 2.43%
GRANT IN AID 6.24%
334
PIE CHART OF PAYMENTS OF AMCs
FOR THE YEAR 2008-09
SALARIES
20.48%
OTHER ADMN.
EXPENDITURE
21.94%
LAW CHARGES
0.18%
ACQUISITION OF
PROPERTIES
0.99%
DEVELOPMENT
WORKS 13.65%
FURNITURE AND
VEHICLES ETC.,
0.68%
10%
CONTRIBUTION
TO CENTRAL
MARKETING
FUND 7.48%
REPAYMENT OF
LOANS 5.34%
OTHERS 11.3%
ADVANCES
7.73%
DEPOSITS 0.75%
OTHERS 9.49%
SALARIES 20.48%
OTHER ADMN.
EXPENDITURE 21.94%
LAW CHARGES 0.18%
ACQUISITION OF
PROPERTIES 0.99%
DEVELOPMENT WORKS
13.65%
FURNITURE AND
VEHICLES ETC., 0.68%
10% CONTRIBUTION TO
CENTRAL MARKETING
FUND 7.48%
REPAYMENT OF LOANS
5.34%
OTHERS 11.3%
ADVANCES 7.73%
DEPOSITS 0.75%
OTHERS 9.49%
335
TREND OF RECEIPTS AND PAYMENTS OF AMCs
The receipts and payments of AMCs over 2007-08 and 2008-09 is as
follows.
34000
36000
38000
40000
42000
44000
46000
Receipts Payments
Series1
Series2
The trend of receipts during the last 5 years is mentioned below.
Year Market
fee
Rs. In
crores
Total
Receipts
Rs. In
crores
% of Market
fee out of
total receipts
(appx.)
% Increase
in Market
fee year to
year
% Increase
in Total
receipts
year to year
2004-05 193.22 282.57 68
2005-06 205.76 296.26 69 6 5
2006-07 278.70 393.18 71 35 33
2007-08 286.15 440.04 65 3 12
2008-09 333.35 433.17 77 16 -1.56
As seen from the above table, the raise in the Market fee
and Total receipts is erratic. During the year 2006-07, the increase in Market fee
and Total receipts is 35% and 33% respectively. During the year 2007-08, the
increase was reduced to 3% and 12% respectively. During the year 2008-09, the
trend is negative in the total receipts. Though Market fee and License fee are the
main sources of income for AMCs, steps may be taken to increase income from
other resources as well by increasing property rentals.
336
AUDIT OBJECTIONS
4.1 During the course of audit of these AMCs for the year 2008-09, various
defects noticed were already pointed out in the relevant Audit Reports
which were forwarded to the Secretaries concerned for further action at
their end as per the procedure laid down under the A.P. State Audit Act.
4.2 A total number of 4818 audit objections involving an amount of
Rs. 11599.39 lakhs were raised in the audit of the AMCs during the year
under report.
337
STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
Rs. In lakhs.
Sl.
No. Name of the Category
No. of
Paras
% of No.
of Paras Amount
% of
Objections
1 VARIATION IN ACCOUNT FIGURES 117 2.43 30.51 0.26
2
EXCESS UTILISATION OF GRANTS /
FUNDS 109 2.26 300.36 2.59
3 DIVERSION OF GRANTS / FUNDS 52 1.08 941.54 8.12
4
NON- UTILIZATION OF GRANTS
BEFORE THE LAPSABLE DATE 12 0.25 78.10 0.67
5
MIS - UTILISATION OF GRANTS /
FUNDS 11 0.23 2.43 0.02
6
NON- UTILIZATION OF EARMARKED
FUNDS 6 0.12 5.82 0.05
7 NON-COLLECTION OF DUES 457 9.49 1107.68 9.55
8 ADVANCES PENDING ADJUSTMENT 313 6.50 2647.79 22.83
9 VIOLATION OF RULES 1274 26.44 1230.87 10.61
10 NON-REMITTANCE OF DEDUCTIONS
381 7.91 289.88 2.50
11 NON-PRODUCTION OF RECORDS 946 19.63 2909.96 25.09
12 MIS-APPROPRIATIONS 50 1.04 22.96 0.20
13 EXCESS PAYMENTS 142 2.95 112.14 0.97
14 WASTEFUL EXPENDITURE 37 0.77 15.13 0.13
15
INSTANCES OF CASES OF
UNACCOUNTED FOR CASH / STORES 24 0.50 2.80 0.02
16
PENDENCY OF UTILISATION
CERTIFICATES 5 0.10 70.40 0.61
17
SURCHARGE CERTIFICATES
RECOVERY PENDING 6 0.12 11.07 0.10
18 OTHERS 875 18.16 1807.56 15.58
19
D.D/CHEQUES RECEIVED BUT NOT
REALIZED WITH IN TIME 1 0.02 12.38 0.11
Total
4818 100.00 11599.38 100.00
From the above table, it can be known that major part of amount of
objections is on Non-production of records followed by Advances pending
adjustment which constituted 25.09% and 22.83% respectively.
338
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:
339
AUDIT PARAS
1. VARIATION IN ACCOUNT FIGURES (CATEGORY 1)
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 as
per cash book not tallying with the actual Closing Balance in the Treasury Pass Book as
on 31st March. Non-crediting of Receipts into the Treasury Pass Book by the Treasury
Authorities. Receipts credited in the cash book by remittance through Challans are not
credited in the Treasury pass book by the Treasury authorities. Debiting the cheques
issued by one D.D.O. to another D.D.O. by Treasury authorities. Without explaining the
differences, addition or subtraction is being done in the reconciliation by the DDO to
arrive at the balance actually available in the S. T. Pass book. Wrong Totaling of Credits
and debits either by D.D.O. or Treasury. Revision in the Plus or Minus Memo in the S. T.
pass book during the subsequent financial year by the Treasury authorities with
retrospective effect. Consolidated Closing Balance of all cash books not tallying with
consolidated closing balance of annual account of the institutions etc.
A Consolidated Statement No. 4 (1) of Variation in account figures is appended
to the Report from which it could be seen that variation in account figures of Rs. 30.51
lakhs was pointed out in 117 audit paras.
A few instances of Variation in Account figures, noticed in the audit
reports in various local bodies are detailed below:
1.1.AMC, ADONI, KURNOOL DIST. – CLOSING BALANCE AS PER CASH
BOOK AND SUB TREASURY PASS BOOK NOT TALLIED – NEEDS
RECONCILIATION - Rs.42,36,153.34.
As verified from Cash Book and Sub Treasury Pass Books, it was
noticed that the closing balance of Treasury Pass Book as on 31-03-2009 was shown as
Rs.1,57,69,620 and the Closing Balance as per Cash Book as on 31-3-2009 shown as
Rs.1,15,33,466.66 resulting in difference of Rs.42,36,153.34 for which the reasons were
not explained by the Executive Authority concerned in audit. There are many mistakes in
totaling of debits/Credits in both the Cash Book and Pass Book. All the entries in both
the books need to be totaled and reconciled with each other along with the Cheques
issued up to 31.3.2009. The reconciliation was not done every month and the monthly
accounts were also not prepared and produced to audit.
Hence, action may be taken for rectification of the said difference under
intimation to audit.
(Para No. 1-2 of Audit Report on the accounts of A.M.C., Adoni, Kurnool District for
the year 2008-09)
340
1.2. AMC, BOWENPALLY, RANGA REDDY DISTRICT - DISCREPANCY
BETWEEN THE CASH BOOK BALANCE AND BANK PASS BOOK BALANCE
– NOT RECONCILED - Rs.48,95,118.33
During the course of audit, on verification of the Cash book, the Bank balance
was shown as Rs.3,70,54,055/- as on 31.03.2009, whereas the closing balance was shown
in Bank Pass Book as Rs. 4,19,49,173.33 as on 31.3.2009. The discrepancy between
Cash Book and Pass Book balances comes to Rs.48,95,118.33. The reason for the
variation was not explained in audit. Further, the reconciliation was not done from April,
2008 onwards.
The reconciliation would need to be done to rectify the above defect in
consultation with the Treasury authorities and produce to audit for verification.
(Para No. 1 of Audit Report on the accounts of A.M.C., Bowenpally, Rangareddy dist.
for the year 2008-09)
1.3. AMC :BOWENPALLY, RANGAREDDY DISTRICT – VERIFICATION OF
ANNUAL ACCOUNTS – TOTAL INCOME NOT AGGREGATING WITH
DAILY INCOME REGISTER – INCOME EXCESS ARRIVED AT - Rs.
14,34,236/-
On verification of the Annual Account for the year 2008-09, it is noticed that the
total income arrived was Rs. 5,08,59,946/- whereas the total income as verified from the
daily income Register was Rs. 4,94,25,710/-. The excess arrival of total income in
Annual Account for the year 2008-09 is Rs.14,34,236/-, which is not explained in audit.
Action would need to be taken to rectify the defects
and furnish the remarks to audit for verification.
(Para No. 2 of Audit report A.M.C., Bowenpally, Rangareddy dist. for the year 2008-09)
1.4. AMC : BOWENPALLY , RANGAREDDY DISTRICT – MARKET FEE
COLLECTION – DIRECTLY REMITTED IN BANK – NOT ACCCOUNTED
FOR IN MAIN CASH BOOK – NEEDS ACTION - Rs.14,34,245/-
On verification of the Daily Income Register, it is noticed that the
following collections were made towards Market Fee for the year 2008-09 through
cheques/DDs on 7.1.2009 and the same were noted in the Daily Income Register for
Rs.14,94,711/-, out of which only an amount of Rs. 60,466/-, i.e., Sl.No.10 was
accounted for in main cash book on 7.1.2009 and the balance amount of Rs.14,34,245/-
(1494711-60,466=14,34,245/-) was not taken into main cash book till close of audit. But
the same were directly remitted in bank account. This practice has to be discontinued in
341
future. The Executive authority is to take immediate action for accounting all the
collections in to main cash book, and the fact intimated to audit.
Sl.no. Name of the Agency & R.No. Amount
1 Food world-8777 4870
2 ITC -8778 44192
3 Reliance Fresh-8779 169472
4 Food World Group-8779 977088
5 Metro cash & carry-8781 109176
6 Khandewal-8782 7425
7 ,, - 8783 7425
8 ,, - 8784 9300
9 Metro cash & carry-8785 105297
10 M.F.(receipt) 60466
Total 1494711
(Para No. 5 of Audit Report of A.M.C., Bowenpally, Rangareddy dist. for the year 2008-
09)
1.5. AMC, KESAMUDRAM, WARANGAL DISTRICT – VARIATION IN
ACCOUNTS FIGURES – NEEDS RECONCILIATION - Rs.356727/-
As verified the reconciliation statement enclosed to the Annual Account of AMC
Kesamudram for the year 2008-09, it was observed that there are huge variations between
Cash Book, Treasury Pass Book and Bank Pass Book as detailed below. Therefore, the
same would need to be rectified and adjusted to AMC Funds.
342
Abstract
1. Difference between Cash Book and Pass Book in previous year Rs. 1,15,239/-
2. Difference between Cash Book and Pass Book in current year Rs. 2,41,488/-
Total Rs.3,56,727/-
(Para No. 1 of A.R. of A.M.C. Kesamudram, Warangal Dist. for the year 2008-09)
1.6.AMC, NALGONDA, NALGONDA DISTRICT - AMOUNT CREDITED IN
THE TREASURY PASS BOOK BUT NOT ACCOUNTED FOR IN CASH BOOK –
NEEDS RECONCILIATION AND ACCOUNT FOR – Rs.37,201/-
On verification, an amount of Rs.37, 201/- as per the challans noted below was
shown in the Treasury Pass Book as receipt, but the same was not accounted in the Cash
Book. Early action would need to be taken to reconcile the figures with the Treasury
Pass book and Cash Book and fact intimated to audit.
Sl. No. Challan No. Amount
1. 60912/31.3.2009 29000
2. 47288/19.2.2009 3066
3 222 / -- 2400
4. 250/ ---- 1500
5. 6400/30.5.2008 1235
Total 37,201 ( Para No. 1 of A.R. of A.M.C., Nalgonda for the year 2008-09, Nalgonda District )
Closing Balance of Cash Book as on 31.3.2009 6678576
Add:.Un Cashed Cheques 1.No0034/31.3.2009
2.No0035/31.3.2009
3.No0036/31.3.2009
105559
82611
66466
254636
Total Receipts 6933212
Add ; cheques not taken in to cash Book
1) 06.03.2007
2) 06.03.2007
3) 06.03.2007
40
50
8539
8629
6941841
Less: Difference between Cash Book and Treasury
Pass Book in previous year -
115239
Balance as per Treasury Pass Book 6826602
Bank Pass Book reconciliation as on 31.3.2009 as
per Cash Book Balance
2312740
Less: Difference between cash book and Bank Pass
Book
241488
Closing Balance as per Bank Pass Book as on
31.3.2009
2071252
343
1.7. AMC, ALAIR, NALGONDA DIST. – VARIATION IN ACCOUNTS –
NEEDS RECONCILIATION AND RECTIFICATION – Rs. 85,418/-
On verification of the ST Pass Book, it was
observed that the closing balance as on 31.3.2008 is Rs.25,54,271/- and the
Opening balance taken as Rs..26,39,689/- as on 1.4.2008. Thus, there is a
difference of Rs. 85,418/-. The reasons for the variation between the Closing
Balance and Opening Balance were not explained in the audit. The ST pass book
may be reconciled with the Cash Book and subsidiary registers and fact intimated
to audit. Further, the Sub Treasury Pass book was not attested by the STO as on
the close of audit. The same may be produced to audit duly got attested by the
STO.
( Para No. 2 of A.R. of A.M.C., Alair for the year 2008-09, Nalgonda
District )
2. DIVERSION OF GRANTS /FUNDS (CATEGORY 3)
The AMCs are provided with funds by way of Grants or prescribed
share in taxes or fee collected by the AMCs. The specific grant has to be utilized for
the specific purpose for which the grant is released. But, it is noticed in audit that
expenditure was incurred under certain grant heads even in the absence of receipt of
any grant during the year by diverting other grants.
A Consolidated Statement No. 4 (3) of Diversion of grants/funds is
appended to the Report for Rs. 836.98 lakhs were pointed out in 44 audit paras.
3. NON-COLLECTION / SHORT COLLECTION OF DUES
(CATEGORY 7)
The main source of income of AMCs up to 90% is mainly derived from
the Market fee only. The remaining receipts are from the license fee, interest on
short term loans and fixed deposits, leases, rents on godowns etc. Amount is due
to be collected towards Market fee, leases, Rents etc., at the end of the year. The
Executive Authorities have failed to realize the said dues and allowed them to fall
into arrears. Timely action if taken for their realization, bad and doubtful debts
can be avoided. All sums due to the Market committees by way of Market fee and
other fee levied under Sub-Section (i) of Section 12 of Andhra Pradesh
(Agricultural Produce & Livestock) Markets Act 1966 may have to be recovered
in the same manner as arrears of land revenue.
A Consolidated Statement No. 4 (7) of Non-Collection of dues is
appended to the Report for Rs. 1012.26 lakhs pointed out in 442 audit paras.
344
3.1.NON-COLLECTION/SHORT COLLECTION OF DUES :
During the course of audit, it was observed that dues viz. Market fee,
Leases, Rents, etc., were not collected properly in the AMCs to a tune of Rs.
1012.26 lakhs in the state during the year 2008-09. Action would need to be taken
immediately to realize the dues from the concerned. A few such examples are
given below.
Rs. In lakhs
Sl.
No.
Name of the AMCs
and District
Details of Revenue not
collected
Para
No.
Amount
due
(Appx.)
1 Jogipeta AMC
Medak Dist.
Shop rents due from the
traders
6 1.00
2 Eluru AMC,
W.G. Dist.
Pendency of market fee 3 8.63
3 Karimnangar AMC
Karimnagar Dist.
Rooms, Godown & Shop
rents
1 4.81
4 Kavali AMC,
SPSR Dist.
Market fee due from the
traders
4 3.20
5 Gooty AMC,
Ananthapuram Dist.
Godowns rent 1 1.37
6. Adoni AMC,
Kurnool Dist.
Market fee 5 16.92
7. Koilakuntla AMC,
Kurnool Dist.
Godown Rent 14 6.29
8. Narsampet AMC,
Warangal Dist.
Market fee 3 43.94
4.ADVANCES PENDING ADJUSTMENT (CATEGORY 8)
It was observed during the course of audit that temporary advances paid
for specific purpose were outstanding for a long time though they should have
been got adjusted through detailed bills and vouchers as soon as possible as per
Article 99 of the A.P. Financial Code. Non-settlement of advances leads to
misuse of advances to avoid refund of unspent amounts. Several objections were
raised on such outstanding advances in the relevant audit reports pointing out
failure of the executive authorities to take necessary action to get these advances
adjusted.
A Consolidated Statement No. 4 (8) of Advance Pending Adjustment
district-wise is appended to the Report. 307 Audit paras involving Rs. 2476.40
lakhs were pointed out during the year 2008-09. A few such cases are shown
below.
345
4.1 RYTHU BANDHU PATHAKAM – LOANS NOT RECOVERED FROM
LOANEES – NEEDS RECOVERY:
During the course of audit, it is noticed that farmers were sanctioned loans
under Rythu Bandhu Pathakam. As per the guidelines issued in G.O.Ms.No.601,
Agri. Co-op (Market -II), Dept., dated 1.12.1993, R.B.P. Loans shall be
sanctioned over the produce from the seasonal crops, which shall be recovered
within 90 days and up to another 90 days with interest with the permission of the
Director of Marketing. But, in some of the AMCs, it was noticed that the Stock
stored by the farmers in the Godowns is being allowed to be stored for more than
6 months and the R.B.P. Loans are not realized within the stipulated time. A few
of such cases are given below.
Sl.
No.
Name of the AMC & District Amount
outstanding
Rs.
Para No.
1. Nalgonda, Nalgonda Dist. 39,000/- 8
2. Gudiwada, Krishna Dist. 48,77,000/- 2
3. Proddutur, Kadapa Dist. 96,22,000/- 5
4.2 AMCS – ADVANCE PAID TO A.P MARKFED, HYDERABAD ON
INTEREST FREE BASIS – NOT REIMBURSED
In Rule 15 of A.P (Agrl. Produce & Livestock) Markets Act, 1966, the
purposes for which the market committee funds to be expended are prescribed. As
the AP MARKFED also deals with the welfare of farmers, Govt. is issuing orders
for sanction of advances from various AMCs to AP MARKFED for specific
purposes. Based on the Govt. orders and on orders from the Commissioner &
Director of Marketing, Hyderabad, the AMCs paid loans to the Managing
Director, AP MARKFED, Hyderabad for various purposes on interest free basis.
But, the said loans were not reimbursed by the Managing Director, AP
MARKFED, Hyderabad, due to which there is strain on the funds of AMCs. A
few of such cases are mentioned below.
Sl.
No
.
Name of the AMC & District Amount paid
to MARKFED
Rs.
Vr. No.
/Date
Para
No.
1. Eluru, West Godavari District 50,00,000/- 17/17.7.2008 6
2. Bowenpally, Ranga Reddy District 2,00,00,000/- - 19
3. Mummidivaram, East Godavari
District
1,00,00,000/- 568/7.7.08
274/28.3.09
18
4. Sulthanabad, Karimnagar 1,00,00,000/- 59/ 7 /2008
249 / 2008
7
5. Darsi, Ongole 1,60,00,000/- 65/15-7-08
17
Total 6,10,00,000/-
346
4.3 AMC, PARIGI, R.R.DIST. – SRI K. CHANDRASEKHAR,
SECRETARY, GRADE II – NON-ADJUSTMENT OF ADVANCE PAY
SHOWN IN LPC – RECOVERY TO BE MADE :
During the audit, on verification of Last Pay Certificate in respect of Sri
K. Chandrasekhar (issued on transfer from Agricultural Marketing Committee,
Nagarkurnool), it was noticed that an amount of Rs. 12,700/- was taken as Pay
Advance by the individual. But, on his reporting to duty on 1.7.2008 at
Agricultural Marketing Committee, Parigi, the said amount was not adjusted.
Hence, action may be taken to recover the said amount alongwith interest from
the individual and to credit the entire amount to the respective funds through
challan, under intimation to the audit.
(Para No. 14 of AR of AMC, Parigi, Ranga Reddy dist. for the year 2008-09)
4.4 AMCS - LOANS PAID TO OTHER AGRICULTURE
MARKET COMMITTEES - REPAYMENT –PENDING
As per Rule 14 (3) of A.P (Agrl. Produce & Livestock) Markets Act,
1966, loans may be granted to other AMCs out of surplus funds with the previous
sanction of the Commissioner and Director of Marketing upto such amount and
on such rates of interest as may be prescribed by the Government from time to
time. Accordingly, loans are being given by one AMC to another AMC @ 12.5%
interest. But, neither the loans nor the interest thereon are being recovered.
Certain such cases are shown below.
Sl.
No.
Name of the AMC &
District by which loan
was given
Name of the AMC & District
to which loan was given
Amount
Rs.
Para
No.
1. Tandur, R.R dist. Sardar Nagar, R.R Dist. 5,00,000/- 3
2. -do- Parigi, R.R Dist. 5,00,000/- 3
3. -do- Marpally, R.R Dist. 5,00,000/- 3
4. -do- Vikarabad, R.R Dist. 5,00,000/- 3
5. -do- Ibrahimpatnam, R.R Dist. 5,00,000/- 3
6. Sulthanabad,
Karimnagar district
Mallial, Karimnagar Dist. 20,00,000/- 8
7. Bowenpally, RR Dist. Marpally, R.R dist. 25,00,000/- 18
Total 70,00,000/-
Necessary steps should be taken to recover the principal alongwith
interest @ 12.5% from the respective AMCs.
347
5. VIOLATION OF RULES (Category 9)
It was noticed in audit of the AMCs that in some cases the Rules and
Government instructions for incurring the expenditure from the funds of the
AMCs were violated either due to negligence or ignorance. At times, the funds of
the AMCs were utilised for purposes other than the permitted ones under the Act /
Rules. It was also noticed that in a few cases Government instructions were
misunderstood or misinterpreted. Such irregular expenditure incurred was
objected in the relevant audit reports.
A Consolidated Statement No. 4 (9) on category of Violation of Rules is
appended to this Report. 1236 objections involving an amount of Rs. 1190.90
lakhs were pointed out.
5.1 LAYING OF CEMENT CONCRETE ROAD IN THE MARKET YARD
OF MYDUKUR – PAYMENT MADE WITHOUT CHECK-
MEASUREMENT – IRREGULAR
During the course of Audit, it was noticed that an amount of
Rs.6,29,465/- was drawn and paid to the contractor towards execution of laying
cement concrete road in the Market Yard in AMC, Mydukur, Kadapa district
without getting the Check measurement of the work recorded in the
M.Book.No.47/2008-2009 by the technical authority which is irregular.
(Para 6 of the AR on the accounts of AMC, Mydukur, Kadapa Dist for 2008-
2009)
5.2 REIMBURSEMENT OF MEDICAL EXPENDITURE – MEDICAL
BILLS NOT GOT SCRUTINIZED BY THE MEDICAL AND HEALTH
DEPARTMENT- IRREGULAR. RS.32,892/-
An amount of Rs.32,892/- was drawn and paid to Sri Nagendra Kumar,
Watchman, AMC, Mydukur towards reimbursement of medical expenditure
incurred for the treatment of his father. Though there are clear instructions of
Government issued vide GO.Ms.No.74 Medical and Family welfare (K1) Dept,
dt:15-3-2005 and GO.Ms.No.105 of Medical and Health dept, dt: 9-4-2007 that
the Medical bills should be got scrutinized from the Medical and Health
Department for reimbursement of expenditure, the same was not done in the
instant case and the payment was made as such without due scrutiny, which is
irregular.
(Para 5 of the AR on the accounts of AMC, Mydukur, Kadapa Dist. for 2008-
2009)
348
5.3 SALE OF BENGAL GRAM- COMMISSION ACCRUED-
EXPENDITURE INCURRED DIRECTLY FROM 2% COMMISSION
ON SALES– IRREGULAR
The AMC, Martur has received 18467 bags of Bengal Gram seed
worth Rs.78,48,475/- from various firms and sold to the farmers and an amount
of Rs.76,91,505/- was paid back to the firms by deducting Rs.1,56,970/-
towards 2% commission . Out of the above commission an amount of
Rs.1,44,275/- was credited to A.M.C funds and the remaining amount of
Rs.12,695/- was spent without crediting it into AMC funds towards contingent
expenditure & for engaging labour which is irregular as all the amounts due to
AMCs shall be first lodged in the account and expenditure shall be incurred from
the fund later but not directly.
(Para No. 10 of the AR on the accounts of A.M.C.Martur, Prakasam District for
2008-2009)
6. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES
FROM VOUCHERS / PAY BILLS / CONTINGENT
BILLS (Category 10)
It was noticed during audit that various deductions / recoveries effected
from the work bills / pay bills were either not remitted to Government or a part of
them only were remitted in spite of statutory obligation to remit the same to
Government account within a prescribed time under the relevant statutory
provisions which also include penalty as well as prosecution for non-adherence.
A Consolidated Statement No. 4 (10) of Non-remittance of deductions
/ recoveries from vouchers / pay bills / contingent bills are appended to the Report
for Rs. 277.18 lakhs was pointed out in 360 audit paras.
The deductions normally made from work bills / pay bills that are to be
remitted to Government account are
Work Bills
9. Income Tax
10. Sales Tax/VAT
11. Seigniorage Fee
Pay Bills
14. Profession Tax
2. G.P.F. (Government Employees)
349
3. G.I.S Premium.
4. Contribution to Pension Scheme
5. Sainik Welfare fund
These defects noticed were pointed out in the Audit Reports. Some of them are as
under.
6.1 INCOME TAX RECOVERIES NOT REMITTED / PARTLY
REMITTED
Under Section 200 of Income Tax Act 1961, read with Rule 30(1) (b), the
authority which deducts the Income Tax from work bills or from pay bills shall
remit the same to the Income Tax Department within the first week of the next
month of such deduction. In case of failure to remit the Tax, the Drawing and
Disbursing Officer will be held responsible under section 201 (1) for payment of
interest at 15% per annum, under section 201 (1)(a) from the time of such default
till the payment of such tax and prone to levying of penalty, under section 221 up
to the amount of tax not remitted plus prosecution under section 276 B for a
period ranging from three months to seven years with fine. Though the statutory
provisions are clear, it was observed during the year under audit that the Income
Tax deducted at source from the work bills was not remitted to the Central
Government Account till the close of audit. Such irregularities noticed were
pointed out in the relevant audit reports.
INCOME TAX DEDUCTED BUT NOT REMITTED
Sl. No. Name of the AMC & District I.T to be
remitted
Rs.
Para No.
1 Devarakadra, Mahaboobnagar 59016 19
2 Rajampeta, Kadapa 13440 6
3 Bhadrachalam, Khammam 26915 4
4 Dharmaram, Karimnagar 24518 4
5 Korutla, Karimnagar 4055 11
6 Tandur, Rangareddy 4580 7
7 Kovvur, West Godavari 50169 12
Total: 182693
6.2 SALES TAX / VAT DEDUCTED BUT NOT REMITTED OR PARTLY
REMITTED
Under A.P.G.S.T Act 1957 as amended from time to time and as per
G.O.Ms.No.556 Revenue (CI-II) Department, Dated 07-08-2000 read with
350
Government Memo.No.4638/CT-II(I) Department, Dated 02-01-2003, Sales Tax
@ 2% of turnover determined as per clause (ii) of Sub Rule 93 of Rule 6 for
exclusive civil contracts for laying or repairing of roads and contracts for canal
digging lining and repairing and @ 4% of turnover for all categories of other
contracts not falling in the above mentioned category has to be recovered from the
work bills and remitted to state funds within a week from the date of recovery
failing which the Drawing Officer has to pay personally 24% penal interest
besides remitting the amount to state funds.
It was observed that Sales Tax/ VAT deducted at source from the work
bills was not remitted to the state funds till the close of audit. Such irregularities
noticed were pointed out in the relevant audit reports of the AMCs. A few of
such cases are mentioned below.
VAT/TOT DEDUCTED BUT NOT REMITTED
Sl.
No.
Name of the AMC & District To be
remitted
Rs.
Para No.
1 Achampeta, Mahaboobnagar 23666 20
2 Devarakadra, Mahaboobnagar 73772 18
3 Rajampeta, Kadapa 24000 6
4 Kalluru, Khammam 43915 5
5 Dhrmaram, Karimnagar 42018 4
6 Ibrahimpatnam, Rangareddy 4414 25
7 Nidamanoor, Nalgonda 20375 4
Total: 232160
6.3 SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED OR
PARTLY REMITTED
As per G.O.MS.No.331, Industries and Commerce (M.I) Department,
Dated 21-06-2000, Seigniorage Fees or Dead Rent whichever is higher shall be
recovered from the work bills on all Minor Minerals despatched or consumed
from the land at the rates specified in Schedule-I and Schedule-II annexed to the
said G.O as the case may be and to be credited to the consolidated fund of State
Government through the concerned Assistant Director of Mines & Geology of the
District. However, it was observed that though the amounts were recovered from
the work bills towards Seigniorage Fees, the same were either not remitted or
partly remitted to State Funds till the close of audit. Such inaction was pointed
out in the relevant audit reports of the AMCs. Some of such instances are listed
below.
351
SEIGNIORAGE CHARGES COLLECTED BUT NOT REMITTED
Sl.
No.
Name of the AMC & District Seigniorage Fee
collected but not
remitted
Rs.
Para
No.
1 Nidamanoor, Nalgonda 12106 4
2 Devarakadra, Mahaboobnagar 110719 16
3 Rajampeta, Kadapa 10396 6
4 Dharmaram, Karimnagar 17003 4
5 Ibrahimpatnam, Rangareddy 5299 25
Total: 155523
6.4 NAC CHARGES DEDUCTED FROM WORK BILLS BUT NOT
REMITTED
NAC charges effected from work bills were not remitted till the close of
audit. Such inaction of the Executive Authority was pointed out in the relevant
audit reports and some such instances are shown below.
NAC Charges
Sl.
No.
Name of the AMC & District Deducted
but not
remitted
Rs.
Para No.
1 Devarakadra, Mahaboonnagar 6587 17
2 Narayanapeta, Mahaboonnagar 2022 17
3 Rajampeta, Kadapa 2750 6
4 Dharmaram, Karimnagar 9361 4
5 Narsingi, Rangareddy 1748 7
Total: 22468
7. NON-PRODUCTION OF RECORDS (Category 11)
The AMCs have to maintain 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. These initial
accounts are to be kept ready and should have to be produced to Audit for
verification. Then only the transparency in incurring of public money and their
utility to the General Public can be reasonably judged.
Such an important function on the part of the Drawing and disbursing
officers of all the AMCs in the maintenance and production of records to audit is
not properly being discharged. Thereby the main access to clear the doubt of
352
transparency in public expenditure has not been availed. In spite of all guidelines
and instructions, the DDOs of Agriculture Market Committees have failed to
maintain the records and to produce the same to Audit whenever the local teams
visited their institutions. Under the category of non – production of records to
Audit, the major part is in works and the related records such as M Book, estimate
file, tenders etc. The others are non-production of vouchers along with the related
files and register. The paras on non-production of records have been drawn from
the individual Audit Reports of the institutions concerned and their details are
furnished hereunder. Further it is surprising to note that the heads of the
institutions could not explain why the records could not be maintained in the
office and can be produced when ever they are being demanded by the audit
parties and other agencies during their local visits.
A Consolidated Statement No. 4 (11) of Non-production of records is
appended to the report for Rs. 2887.07 lakhs pointed out in 936 audit paras.
7.1 EXECUTION OF WORKS – CONNECTED ESTIMATES,
MEASUREMENT BOOKS Etc., - NOT PRODUCED
Amounts were drawn in the vouchers detailed in the respective audit
paras and stated to have been spent on execution of works during the year. But the
sanctioned estimates, measurement books and agreement files were not produced
to audit for verification.
A few such cases are mentioned below.
Sl.
No.
Name of the
AMC & Dist.,
Particulars of the records not
produced
Amount
involved
Rs.
Para
No.
1 Parchuru,
Prakasam
M.books, Estimates, Connected
files
1141771 10
2 Vemulawada,
Karimnagar
Construction of Compound wall at
sub-yard, Boyinpalli Measurement
Book not produced
150000 11
3 Amangal,
Mahabubnagar
M.book, Estimates and connected
Files
299632 17
4 Narayanapet,
Mahabubnagar
M. Books, Estimates and
connected files
935429 18
5 Devarakadra,
Mahabubnagar
M.books, Estimates and Connected
Files
2721334 22
Total 5248166
353
7.2 PAID VOUCHERS/CHALLANS NOT PRODUCED:
Audit came across several cases where amounts were drawn from the
funds of AMCs, but, the connected paid vouchers/challans were not produced to
audit for verification. Such irregularities noticed were pointed out in the relevant
Audit Reports. A few such cases are given below.
Sl.
No.
Name of the
AMC & Dist.,
Particulars of the records not
produced
Amount
involved
Rs.
Para
No.
1 Ponduru,
Srikakulam
Fertilizer Account – Connected
Records
400000 34
2 Musthabad,
Karimnagar
LTC (Home Town) claim –
Vouchers and Connected Records
5600 11
3 Ongole,
Prakasam
Arrears bill etc. 198855 21
Total 604455
7.3 RECORDS / REGISTERS / FILES NOT PRODUCED:
During the audit scrutiny for the year 2008-09, it was noticed that
expenditure was incurred for the stated purposes as shown in the respective audit
paras. But, the connected Registers, Records and Files were not produced for
verification and certification of audit. A few of such cases are detailed below.
Sl.
No
Name of the
AMC& Dist.,
Particulars of the records not
produced
Amount
Rs.
Para
No.
1 Ponduru,
Srikakulam
Seed Account – Connected Records
not produced
4064446 26
2 Guntakal,
Ananthapur
Market fee paid to other AMCs –
Receipts not enclosed to Monthly
returns
142055 5
Total 4206501
7.4. PAYEES’ ACKNOWLEDGEMENT NOT PRODUCED
During the course of Audit on the accounts of the following AMCs, the
Payees’ Acknowledgements were not produced for verification. As the payments
are made through Demand Drafts, in the absence of relevant payees’
acknowledgements, whether the amounts were credited to the respective accounts
could not be verified.
354
Sl.
No
Name of the AMC
& Dist.,
Particulars of the records
not produced
Amount
involved
Rs.
Para
No.
1 Ramachandrapuram,
East Godavari
Paid to M.D., AP State Co-
operative Markfed, Hyderabad
1496813 6
2 Sathupalli,
Khammam
Contribution of 10% Central
Market Fund
690822 7
3. Railwaykoduru,
Kadapa
Contribution of Central
Market Fund
454251 6
4. Mahabubabad,
Warangal
Payment of 10% Contribution 159212 13
5. Kesamudram,
Warangal
Payment of 10% Contribution 148280 11
Total: 2949378
7.5 AMOUNT REMITTED – CHALLANS NOT PRODUCED
During the year 2008-09, amount was drawn and remitted to different
heads i.e., Sales Tax, Seigniorage Charges, Income Tax and NAC etc. But, the
challans for the said remittances were not produced to audit for verification. One
such case is mentioned below.
Sl.
No.
Name of the AMC & Dist. Amount
involved
Rs.
Para No.
1. Ongole, Prakasam 66857 14
Total 66857
8. MIS-APPROPRIATIONS (Category 12)
Cases of misappropriation of money noticed in audit were pointed
out in the audit reports concerned. No. of misappropriations noticed in audit is
annexed vide statement No.4 (12). A total no. of 47 cases involving an amount
of Rs. 22.72 lakhs were pointed out in the relevant audit reports.
To illustrate the various types of modus operandi, a few of such cases
pointed out are reproduced below.
8.1 AMC, JAMMALAMADUGU, YSR KADAPA DISTRICT - AMOUNTS
COLLECTED – NOT REMITTED IN FULL – RECORDS TAMPERED –
MISAPPROPRIATION OF AMOUNT Rs. 103871/-
355
Out of the collections made by the Agricultural Marketing Committees,
some amount was remitted through challans but shown in Chitta, cash book and
pass book etc as if the entire amount collected was remitted by indulging in
tampering of the above records. For instance, out of the amount of Rs. 29681/-
collected, only Rs. 9681/- was remitted in the Treasury through challan No. 352,
dated 18-4-2008 and the figures in challan, cash book, pass book were tampered
by adding a numeric figure of 2 before 9681/- to show that as if the entire
collected amount of Rs. 29681/- was remitted. Thus the differential amount of Rs.
20000/- was construed as misappropriated.
Likewise, an amount of Rs. 83871/- was misappropriated by the staff of
AMC in other four cases which needs to be recovered besides taking stringent
disciplinary action against the persons responsible.
(Para 17 of AR on the accounts of AMC, Jammalamadugu, YSR Kadapa
district for 2008-09)
8.2 AMC BOWENPALLY, RANGA REDDY DISTRICT - EXCESS
DRAWAL OF AMOUNT THROUGH SELF-CHEQUE – BALANCE
AMOUNT NOT REMITTED – MISAPPROPRIATION OF FUNDS
Rs.23940/-
An amount of Rs. 28779/- was drawn through self cheque No. 1638,
dated 17-6-2008 for payment towards electricity charges & leave salary of the
employees etc. But on verification, the total amount payable works out to Rs.
4839/- only thus resulting in excess drawl of Rs. 23940/- for which there was no
record or any particulars of remittance of amounts back. Drawal of funds in
excess beyond the requirement and non remittance of such excess amount
tantamount to misappropriation of AMC funds which needs to be recovered
immediately besides taking severe disciplinary action against the person/persons
responsible.
(Para 39 of AR on the accounts of AMC, Bowenpally, Rangareddy District
for 2008-09)
8.3 AMC, GADDIANNARAM, RANGA REDDY DISTRICT - AMOUNTS
COLLECTED BUT NOT REMITTED TO AMC FUNDS –
MISAPPROPRIATED-Rs.7248/-
During the course of audit, it was observed that an amount of Rs. 7248/-
was collected from the commission agents/licensed traders but the same was not
remitted to AMC funds which is construed as misappropriated. Immediate action
need to be taken for recovering the same from the person responsible.
(Para 5 of AR on the accounts of AMC, Gaddiannaram, Rangareddy District
for 2008-09)
356
8.4 LICENCE FEE COLLECTED AMOUNT SHORT TAKEN IN DAY
BOOK – MISAPPROPRIATION – Rs.3170/-
During the course of verification of Miscellaneous receipt books with
reference to Daily collection Register, it was observed that an amount of Rs.
3170/- was not taken into daily collection books though shown in the receipt
books which is construed as deliberate and misappropriated.
(Para 14 of the AR on the accounts of AMC, Thorrur, Warangal District for
2008-09)
9. EXCESS PAYMENTS (Category 13)
It was observed that in several cases excess payments were made due to
incorrect Calculation, Excess totaling in bills, admission of inadmissible claims,
Lack of knowledge of Government Instructions.
A Consolidated Statement No. 4 (13) of objections is appended to the
Report for Rs. 111.83 lakhs pointed out in 135 audit paras.
9.1 AMC, NIZAMABAD – IRREGULAR PAYMENT OF DEARNESS
RELIEF ON PENSION TO FAMILY PENSIONER – NEEDS IMMEDIATE
RECOVERY - Rs.21,430/-
During the course of audit, while verifying the pension payment
vouchers, it was noticed that Family Pension is being paid to Sri Mallaiah,
Watchman of the AMC, Nizamabad on the death of his wife Smt. Mallamma
while in service on 14-01-2008. On detailed verification of payment of Family
Pension to Sri Mallaiah, Watchman, it was observed that he was being paid
Family Pension and D.R. and I.R. on the said Family Pension at appropriate rates
from time to time.
According to the orders issued in G.O.Ms. No.125, Finance and Planning
(FW.Pension.I) Department, dated 01-09-2000, a pensioner can not enjoy both
Dearness Relief and Dearness Allowance, one on his pension and the other on his
salary.
But, in this case, Sri Mallaiah, Watchman was being paid Dearness
Relief on Family Pension (on the death of his wife Smt. Mallamma while in
service) with effect from 15-01-2008 at appropriate rates and he is also being paid
Dearness Allowance on his own pay, which is highly irregular and contrary to the
above Government Orders.
The irregular payment of Dearness Relief was calculated up to 31-03-
2009 in the annexure enclosed and worked out at Rs.21,430/-.
357
Statement showing the particulars of Dearness Relief payments on Family
Pension to Sri Mallaiah, Watchman, Husband of Late Smt. Mallamma, Ex-
Watchman (From 15-01-2008 to 31-03-2009)
Voucher
No.
and Date
Voucher
Amount
Rs.
Family
Pension being
paid to Sri
Mallaiah,
Watchman
Rs.
Dearness
Relief
Paid
@ 35.796%
Rs.
Total Family
Pension
(Pay + DR on
Family
Pension)
Rs.
Period
090/-06-08 22,812/- 16,798/- 6,014/- 22,812/- 15-01-08 to
31-05-08
120/-06-08 2,33,859/- 3,693/- 1,322/- 5,015/- June, 2008
165/-07-08 2,31,269/- 3,693/- 1,322/- 5,015/- July, 2008
246/-09-08 2,24,724/- 3,693/- 1,322/- 5,015/- August, 2008
283/-09-08 2,38,730/- 3,693/- 1,322/- 5,015/- September,
2008
326/-10-08 2,59,258/- 3,693/- 1,322/-
IR 554
5,569/- October, 2008
457/-11-08
458/-11-08
459/-11-08
3,13,324/- 3,693/- DR @42.390%
DR 1566/-
15% IR 554/-
DR Arrears
976/-
6,789/- November,
2008 and DR
Arrears from
01-07-08 to
31-10-08
634/-01-09 2,71,069/- 3,693/- DR 1566/-
15% IR 554/-
5,813/- December,
2008
724/-02-09 2,84,183/- 3,693/- DR 1566/-
22% IR 813/-
6,072/- January, 2009
751/-02-09 2,82,003/- 3,693/- DR 1566/-
22% IR 813/-
6,072/- February, 2009
3,693/- DR 1566/-
22% IR 813/-
6,072/- March, 2009
TOTAL DR 21,430/-
IR 4,101/-
358
The Executive Authority is suggested to stop the payment of Dearness
Relief on Family Pension to Sri Mallaiah and recover Rs.21,430/- towards
inadmissible payment of Dearness Relief on Family Pension already made (as
worked out in the above annexure). He is further requested to calculate the
payment of Dearness Relief on Family Pension up to the date and recover the
same from Sri Mallaiah and made good the entire recovered amount to AMC
funds and fact intimated to audit.
(Para 15 of AR of AMC, Nizamabad for the year 2008-09)
10. WASTEFUL EXPENDITURE (Category 14)
The cannons of financial propriety envisaged in Andhra Pradesh
Financial Code are sacrosanct for all Government Authorities entrusted with
authorizing or incurring of expenditure from public funds. As per Article 3 of
A.P. Financial Code Vol.I every DDO is to exercise the same diligence and care
in expending public money under their control as persons of ordinary prudence
would exercise in respect of their own money. The responsibility of the
Government Officer, who is entrusted with duties of dealing with public money is
greater than his responsibility towards private money. Government have issued
instructions through various orders and also incorporated in the statutes of local
bodies the various items on which public money can be expended and the
principles to be adhered to while expending money on such items. Yet, it was
noticed in audit that the funds of local bodies were spent several times without
adhering to the established canons of financial propriety leading to wasteful
expenditure of public money. All the cases of such wasteful expenditure observed
in the audit for the year 2007-08 were avoidable, extraordinary and lacked proper
planning.
A Consolidated Statement No. 4 (14) of Wasteful expenditure is
appended to the Report for Rs. 15.13 lakhs was pointed out in 37 audit paras.
10.1 ADVERTISEMENT CHARGES PAID - WASTE FUL
EXPENDITURE-Rs. 61,111/-
During the course of audit, it is noticed that the following amounts were
drawn and paid towards advertisement Charges for various purposes as detailed
and noted against each. It is observed that the cash bill and acquittance were
produced but the expenditure incurred towards advertisement was not related to
the AMC activities. Hence, it is treated as wasteful expenditure.
Sl.
No.
Vr. No. & Date Particulars Amount
Rs.
1. 108/7-2008 Advertising Charges of
inauguration of Sakshi Daily
Newspaper
51,233/-
359
2. 85/7-2008 Adv. Charges of 12th
Anniversary Celebration of
Vaartha Daily Newspaper
9,878/-
Total 61,111/-
10.2 INADMISSIBLE ITEM OF EXPENDITURE – EXPENDITURE MET
FROM A.M.C FUNDS FOR THE PURPOSE OTHER THAN ADMISSIBLE
ITEMS – NEEDS RECOVERY - Rs.6767/-
The following items of the Expenditure were incurred from the AMC
funds during the year under report, which are not authorized item to be met from
the AMC Funds as per rules framed under.
Therefore the total Expenditure of Rs.6767/- would need to be recovered
from the person or persons responsible and remit to the AMC Fund under
intimation to audit.
Sl.No. Vr.No.&
Date
Particulars Amount
1 67/8-08
Advertisement charges towards DASERA
FESTIVAL in Vartha News Paper inner page
of Dist edition vide receipt No.2467030
3500/-
2 115/11-08 Advertisement charges towards DASERA
FESTIVAL
Sakshi 9-10-08 Rs.1080/-
And Jyoti 4-10-09 Rs.2187/-
Total Rs.3267/-
Voucher amount bills 8067/-
3267/-
Total 6767/-
(Para No.4 of AR of AMC Sarangapur, Adilabad District)
10.3 EXPENDITURE INCURRED ON HOME GUARDS –
ABNORMAL EXPENDITURE OF Rs. 5,09,175/- - HELD UNDER
OBJECTION:
During the course of audit, it is learnt that during the Hon’ble Chief
Minister’s visit on 7.12.2000, it was reported that thefts are occurring in the
AMC. As per the instructions, a Committee was constituted under the supervision
of District Collector and Superintendent of Police, Nizamabad and 10 other
officers on 10.12.2000 and during the committee meeting, a resolution was passed
and orders were issued. Accordingly, Home Guards were deputed for security.
Expenditure was incurred for purchasing investigation equipment and on salaries
of the Home Guards. This practice is still continuing. During the year 2008-09, an
amount of 5,09,175/- was incurred on 15 Home Guards. During the said year, 42
360
security guards were working and an amount of Rs. 19,84,653/- was incurred on
them. When such a huge expenditure is incurred on Security Guards, incurring
expenditure on the Home Guards also seems to be wasteful. Hence, it may be
reviewed as to whether engaging Home Guards is still necessary and decision
may be taken accordingly.
(Para No. 17 of AR of AMC, Nizamabad, Nizamabad district for the year 2008-
09)
11. INSTANCES OF CASES OF UNACCOUNTED CASH /
STORES (Category 15)
Several instances of cash/stores unaccounted for were noticed during the
course of audit and a few of such audit observations are furnished hereunder:
Consolidated statement of cases of unaccounted for cash/stores in
Statement No. 4 (15) is appended to the report from which it can be noticed that
24 paras involving Rs. 2.80 lakhs were reported.
11.1 AMC, CHINTAPALLI, VISAKAPATNAM DIST. - MARKET FEE
COLLECTED AT CHECK POST - NOT REMITTED TO A.M.C FUNDS -
FUNDS MISAPPROPRIATED - NEEDS EARLY ACTION Rs.7,747/-
During the course of Audit, it is noticed that a total sum of Rs.7,747/- was
collected through M.Rs at check post towards Market fee from various Business
persons as detailed below.
Receipt Book No. Receipt Nos. Amount
Collected
Rs.
3788 to 3792
76 7,747/-
But the said amount has not been remitted to Market Committee funds till
the close of audit. As per the Govt. instructions issued i.e. GO.Ms.No.195 (F&P)
(F.W.) TFR dt. 24-5-1989 as per TR 10(i) (ii) & SR (8cc) 10(a) (b) whatever the
amounts collected shall be remitted to institution funds at the earliest possible
time. But in this case, the instructions were not followed. Hence necessary steps
would need to be taken for recovery of the said amount from the person or
persons responsible and remitted to AMC Funds besides taking administrative
action against the individuals responsible.
(Para No.18 of AR of AMC, Chintapalli, Visakhapatnam district for the year
2008-09)
361
12. PENDENCY OF UTILIZATION CERTIFICATES (Category 16)
NIL
13. SURCHARGE CERTIFICATES RECOVERY PENDING (Category 17)
In accordance with the provision of the State Audit Act, 1989 and Rules issued
thereunder, the audit of local authorities i.e., Zilla Parishads, Mandal Parishads, Gram Panchayats, AMCs, Municipalities, Zilla Grandhalaya Samsthas and other institutions
and schemes as entrusted by the Government is being conducted and various defects
noticed during the audit also pointed out in the relevant Audit Reports every year. In the
case of serious irregularities, Special Letters are also issued to Chief Executive Authorities concerned to make the loss good to the funds of the institutions concerned.
Pursuant to the special letters, surcharge action as per Sec. 10 of the State Audit
Act, 1989 is initiated for recovery of the amounts involved in clear cases of the loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular payments. The
amounts surcharged have to be recovered treating them as Revenue Recoverable under
Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State Audit Rules issued in
G.O.Ms.No. 130, Finance & Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the cases mentioned in the statement.
Immediate action would need to be taken to recover the surcharged amount from
the surcharges and fact be intimated to audit.
A Consolidated Statement No. 4 (17) Issue of Surcharge Certificates is appended to
the Report for Rs. 11.07 lakhs was pointed out in 6 audit paras.
14. OTHERS (Category 18)
Other objections which were not fallen in the above categories are
incorporated under this category. Such objections numbering 875 were raised for an
amount of Rs. 1807.56 lakhs as detailed in Statement No. 4 (18).
14.1 A.M.C. MUMMIDIVARAM, EAST GODAVARI DISTRICT - GODOWNS
BELONGING TO A.M.C.s - UNUTILISED - LOSS OF REVENUE TO
COMMITTEE FUNDS BY WAY OF NON REALIZATION OF RENT - NEEDS
ACTION :
During the course of audit, the records revealed that the committee owned 6
Godowns - 5 at Mummidivaram and one at Katrenikona out of which one godown at
Mummidivaram was leased out to Civil Supplies Department with a monthly rent of Rs.
5000/- P.M. and the remaining 5 Godowns were kept vacant. The reasons for keeping the
godowns vacant were not forthcoming to Audit. However, the institution due to keeping
362
of godowns vacant, is put to loss of revenue to the tune of Rs. 3,00,000/- per annum ( if
they are leased out @ Rs. 5,000/- P.M.).
Further, the file relating to the Godown at Mummidivaram leased out to Civil
Supplies department was also not produced to verify the correctness of the demand of @
Rs. 5000/- P.M.
(Para No.17 of AR of AMC, Mummidivaram, East Godavari district for the year 2008-
09)
14.2 A.M.C. KOTHAPETA, EAST GODAVARI DISTRICT - FERTILISERS,
PESTICIDES AND SEEDS - ACCOUNTS NOT MAINTAINED PROPERLY -
CERTAIN DEFECTS:
In Resolution No. 9 dated 13.3.07 of the Market Committee, Kothapeta, East
Godavari District, it was proposed to take up the sale of fertilizers, pesticides and seeds to
Ryots on Co- Operative basis. The Director of Marketing, Hyderabad accorded sanction
for Rs. 4,72,810/- to withdraw and deposit in Scheduled Bank to transact the business.
A separate cash book was opened.
As verified from the subsidiary register maintained on the said cash book, the
following defects were found.
1. The survey report of the fields for the requirement of fertilizers, pesticides and seeds
etc were not obtained from the field staff and not produced to audit to verify the
correctness of the quantities purchased.
2. The list of approved registered firms and companies were not produced at the time
of the Audit to verify quality of the pesticides etc.
3. The terms and conditions for supply of the quantities made by the concerned firms
were not produced.
4. The register was not produced showing the particulars like (a) place of indent (b)
Amount deposited (c) Advance payment if any (d) Quantity and Quality of the
supplies (e) Actual Quantity and quality of supplies (f) Arrival of sale rate etc.
5. The list of Ryots in market committee area was not produced at the time of Audit to
verify the sales made accounting register of sales.
6. The loss if any sustained due to non sale of expired pesticides and fertilizers,
purchased stocks excess over the required quantity would need to be recovered from
the person or persons responsible.
14.3 A.M.C MARTUR, PRAKASAM DISTRICT - SALE OF BENGALGRAM
SEEDS TO FARMERS - STOCK REGISTER OF RECEIPT BOOKS NOT
MAINTAINED:
As verified from the stock register of Bengal Gram seed, 18467 bags were
received from the following firms during the year. The same were sold to the farmers by
the A.M.C. Martur. The receipt books were also received from the concerned firms for
sales purpose. The seed of Bengal Gram were sold through receipt books by A.M.C. It
was observed that the stock register of the receipt book which were received from the
concerned firms was not maintained and produced to audit. In the absence of the stock
363
register, the correctness of the collection amount could not be checked in audit. If any
loss caused in this regard, the same would need to be recovered from the person or
persons responsible.
Sl.No. Name of the firm No. of Bags
received
1 AP Seeds 8000
2. HAKA 5600
3. AP Mark Fed 4867
Total: 18467
(Para No.22 of AR of AMC, Martur, Prakasam district for the year 2008-09)
14.4 A.M.C BANTUMILLI, KRISHNA DISTRICT - MARKET FEE - ANNUAL
ASSESSMENTS NOT VERIFIED:
Under Bye-Law 4415 with the section 12(B) and 17(C) of Andhra Pradesh
(Agricultural produce & Live Stock ) Market Committee Act 1966, all the Traders who
are liable to pay Market Fee shall produce their accounts for Annual Assessments and the
difference of Market fee if any due to Committee has to be paid by them before
assessment every year.
But as seen from the Market fee Demand Register and their Records viz.,
Monthly Returns for the month of March, it is noticed that the Annual Assessments of
Traders for the periods noted below were not finalized by the
Secretary, Agriculture Market Committee, Bantumilli.
DETAILS OF ASSESSMENTS ANALIZED & PENDING DURING 2008-2009
Sl.
No. Year
Assessments
pending (OB)
Assessments
completed
during the
year
Balance
1 2004-2005 03 - 03
2 2005-2006 15 1 14
3 2006-2007 31 2 29
4 2007-2008 31 5 26
Total 80 8 72
Action would need to be taken to verify the Assessments relating to the traders
and to fix up market fee demand and short remittance of Market Fee would need to be
recovered from the traders and credited to the Committee funds.
(Para No.10 of AR of AMC, Bantumilli, Krishna District for the year 2008-09)
364
15. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES ETC., RECEIVED BUT NOT REALIZED WITHIN TIME (Category 19)
Demand Drafts and cheques received for payment of money due to the Institution are to be entered in a register of Demand Drafts and Cheques received and should be sent to the Banks for realization immediately. In the following cases, Demand Drafts received were not presented to the banks for payment till the close of audit.
A Consolidated Statement No. 4 (19) of Non-realization of Cheques in time is appended to the Report for Rs. 12.38 lakhs was pointed out in 1 audit para.
DATE 20-01-2012
HYDERABAD DIRECTOR,
STATE AUDIT,
A.P., HYDERABAD.
365
366
STATEMENT No. 1
STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF AMCS FOR THE YEAR 2008-
09
SL.
NO
NAME OF THE
DISTRICT
AUDIT PENDING AS
ON 1-04-2009
AUDITS
COMPLETED AS ON
31-03-2010
BALANCE AS ON
31-03-2010
ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT
1 Adilabad 0 16 0 16 0 0
2 Ananthapur 0 13 0 13 0 0
3 Chittoor 0 15 0 15 0 0
4 East godavari 1 19 0 19 1 0
5 Guntur 0 18 0 18 0 0
6 Kadapa 1 12 0 12 1 0
7 Karimnagar 0 20 0 20 0 0
8 Khammam 0 13 0 13 0 0
9 Krishna 0 18 0 18 0 0
10 Kurnool 0 12 0 12 0 0
11 Mahaboobnagar 0 17 0 17 0 0
12 Medak 0 11 0 11 0 0
13 Nalgonda 0 19 0 19 0 0
14 Nellore 0 11 0 11 0 0
15 Nizamabad 0 10 0 10 0 0
16 Prakasam 0 14 0 14 0 0
17 Ranga reddy 0 13 0 13 0 0
18 Srikakulam 0 13 0 13 0 0
19 Visakhapatnam 0 8 0 8 0 0
20 Vizianagaram 0 9 0 9 0 0
21 Warangal 0 12 0 12 0 0
22 West godavari 0 18 0 18 0 0
TOTAL: 2 311 0 311 2 0
367
STATEMENT No. 2 (1) STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS
FOR THE YEAR 2008-09
Rs. In lakhs
Sl.
No.
NAME OF THE
DISTRICT RECEIPT PAYMENT
1 Adilabad 1772.20 1562.22
2 Ananthapur 930.14 1046.59
3 Chittoor 823.84 1014.41
4 East Godavari 3155.93 3186.71
5 Guntur 6284.21 5709.97
6 Kadapa 898.41 950.35
7 Karimnagar 2296.26 1883.01
8 Khammam 2139.78 1782.78
9 Krishna 3168.27 3136.88
10 Kurnool 1719.78 1972.62
11 Mahaboobnagar 1652.73 1211.50
12 Medak 492.57 529.32
13 Nalgonda 2573.28 2044.55
14 Nellore 1169.65 1002.63
15 Nizamabad 1498.91 1411.02
16 Prakasam 1765.35 1888.74
17 Ranga Reddy 2246.26 2585.48
18 Srikakulam 1013.85 708.98
19 Visakhapatnam 594.68 546.92
20 Vizianagaram 624.26 539.81
21 Warangal 2725.78 2978.91
22 West Godavari 3770.68 3596.90
TOTAL: 43316.82 41290.29
368
STATEMENT No. 2 (2)
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS FOR THE YEAR 2008-09
(RECEIPT HEADS)
Sl.
No.
NAME OF
THE
DISTRICT MA
RK
ET
FE
ES
LIC
EN
SE
FE
ES
LA
TE
FE
E
PR
OP
E
RT
Y
RE
NT
A
L F
EE
S
INT
ER
ES
T O
N
INV
ES
TM
EN
T
AU
CT
I
ON
S
INC
OM
E F
RO
M
MIS
CE
L
LA
NE
O
US
SO
UR
C
ES
DE
PO
S
ITS
LO
AN
AD
VA
N
CE
S
GR
AN
T
IN A
ID
TOTAL
1 Adilabad 1449.33 17.57 0.02 113.01 0.16 0.02 1.19 7.84 58.05 66.40 58.61 1772.20
2 Ananthapur 641.20 4.36 0.14 24.67 3.45 1.68 2.10 20.79 59.68 61.54 110.52 930.14
3 Chittoor 642.94 5.61 9.57 21.23 3.92 1.15 60.88 25.84 13.26 8.57 30.87 823.84
4 East Godavari 2188.55 12.95 0.05 11.30 9.88 0.79 31.86 10.02 17.51 113.98 759.04 3155.93
5 Guntur 4892.23 57.21 2.48 35.87 13.85 69.95 352.35 62.67 392.49 56.69 348.42 6284.21
6 Kadapa 553.12 3.40 0.08 9.97 0.97 0.65 17.11 10.50 113.65 22.74 166.22 898.41
7 Karimnagar 2010.64 12.18 0.01 16.75 13.62 1.83 5.03 7.05 123.68 40.84 64.63 2296.26
8 Khammam 1621.76 7.20 0.27 22.09 2.00 1.13 4.65 25.58 105.66 101.71 247.73 2139.78
9 Krishna 2291.93 16.12 0.24 13.54 6.83 2.16 15.11 11.38 374.39 45.98 390.59 3168.27
10 Kurnool 1439.78 8.96 1.28 49.61 30.79 0.53 45.56 52.66 54.51 27.29 8.81 1719.78
11 Mahaboobnagar 1332.66 9.83 0.35 21.37 0.72 0.01 68.67 33.64 90.83 94.62 0.03 1652.73
12 Medak 440.53 6.20 0.03 16.20 0.54 0.28 0.01 1.52 19.78 5.40 2.08 492.57
13 Nalgonda 1752.29 4.24 0.89 17.49 8.15 0.87 229.51 17.94 391.22 74.77 75.91 2573.28
14 Nellore 926.46 6.89 0.28 51.67 5.96 0.01 24.04 37.77 53.63 13.81 49.13 1169.65
15 Nizamabad 1202.60 6.76 0.04 0.00 165.82 0.00 24.09 0.94 84.95 0.00 13.71 1498.91
16 Prakasam 1173.96 6.79 0.05 38.15 6.76 0.02 449.26 13.73 18.65 26.18 31.80 1765.35
17 Ranga Reddy 1538.72 22.80 7.44 268.04 253.49 1.41 13.63 5.98 89.79 10.11 34.85 2246.26
18 Srikakulam 898.69 7.09 0.73 2.87 1.91 0.07 15.12 12.20 8.61 28.17 38.39 1013.85
19 Visakhapatnam 482.79 11.51 0.25 6.30 2.75 0.74 6.36 5.90 2.80 27.80 47.48 594.68
20 Vizianagaram 504.72 5.91 0.02 6.90 0.12 2.16 61.96 15.73 0.02 13.60 13.13 624.26
21 Warangal 2385.98 13.21 0.04 18.71 3.44 10.71 2.90 14.82 125.86 149.80 0.31 2725.78
22 West Godavari 2964.10 16.93 1.19 11.06 4.69 2.11 155.60 22.75 317.70 63.17 211.38 3770.68
TOTAL: 33334.97 263.73 25.45 776.80 539.81 98.27 1586.99 417.25 2516.72 1053.17 2703.64 43316.82
369
STATEMENT No. 2 (3)
STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS FOR THE YEAR 2008-09
(PAYMENT HEADS)
Sl.
No
.
NAME OF
THE
DISTRICT S
AL
AR
IES
OT
HE
R
AD
MN
.
EX
PE
ND
ITU
RE
LA
W
CH
AR
GE
S
AC
QU
ISIT
I
ON
OF
PR
OP
ER
TIE
S
DE
VE
LO
PM
EN
T
WO
RK
S
FU
RN
ITU
RE
AN
D
VE
HIC
LE
S
ET
C.,
10%
CO
NT
RIB
U
TIO
N T
O
CE
NT
RA
L
MA
RK
ET
IN
G F
UN
D
RE
PA
YM
EN
T O
F L
OA
NS
OT
HE
RS
AD
VA
NC
ES
DE
PO
SIT
S
OTHER
S TOTAL
1 Adilabad 212.01 154.74 28.21 0.00 249.69 8.24 119.49 7.54 282.26 69.47 22.62 407.95 1562.22
2 Ananthapur 239.87 248.34 1.55 0.00 187.35 4.34 62.50 11.62 17.33 19.28 13.14 241.27 1046.59
3 Chittoor 289.04 46.72 0.48 0.00 128.04 23.99 73.30 18.53 88.88 187.42 8.45 149.56 1014.41
4 East Godavari
365.05 500.02 5.75 146.4
2 141.06 23.67 224.03 197.64 464.94 783.34 9.52 325.27 3186.71
5 Guntur
768.51 420.85 3.44 133.8
7 873.37 30.03 488.67 421.88 1481.49 376.25 24.31 687.30 5709.97
6 Kadapa 260.03 197.68 0.69 0.00 165.47 4.01 57.26 36.67 20.41 7.58 8.83 191.72 950.35
7 Karimnagar 315.32 626.93 0.89 0.00 266.72 16.60 200.49 85.28 2.02 34.88 5.11 328.77 1883.01
8 Khammam 303.50 863.54 4.20 0.00 79.97 0.00 54.32 1.00 279.42 154.84 40.04 1.95 1782.78
9 Krishna 445.86 1062.58 2.41 0.00 381.34 10.11 188.02 244.70 79.12 169.02 3.08 550.64 3136.88
10 Kurnool 353.72 325.09 0.98 0.00 505.64 7.52 156.46 22.07 423.88 161.98 15.28 0.00 1972.62
11 Mahaboobnagar 340.06 181.22 2.37 94.81 208.78 3.56 112.95 67.39 10.65 74.22 54.16 61.35 1211.50
12 Medak 124.49 58.69 0.62 0.60 118.13 14.40 66.71 0.96 41.74 85.81 1.29 15.88 529.32
13 Nalgonda 419.73 216.65 2.56 0.05 629.57 69.90 166.64 17.36 0.72 379.14 5.43 136.80 2044.55
14 Nellore 140.69 223.33 4.17 10 156.52 4.04 112.21 76.96 257.83 7.93 8.95 0.00 1002.63
15 Nizamabad 325.54 566.56 0.00 0.00 0.00 0.00 122.60 11.25 31.87 126.48 0.00 226.72 1411.02
16 Prakasam 299.84 538.55 2.95 2.97 203.98 15.36 115.05 399.95 165.71 103.22 13.32 27.84 1888.74
17 Ranga Reddy 700.29 623.96 3.28 0.00 372.93 8.37 141.65 5.20 339.75 29.79 32.18 328.08 2585.48
18 Srikakulam 205.21 47.74 2.05 0.93 29.29 1.08 72.53 215.45 74.40 49.69 10.61 0.00 708.98
19 Visakhapatnam 145.36 44.40 1.63 4.55 72.88 6.93 53.62 22.12 75.39 11.23 5.86 102.95 546.92
20 Vizianagaram 112.22 176.96 1.17 0.00 10.66 3.30 40.95 20.00 86.20 7.26 5.25 75.83 539.81
21 Warangal 349.11 1600.71 1.91 0.00 646.21 9.90 199.50 40.41 32.97 34.41 5.97 57.81 2978.91
22 West Godavari 1738.79 332.11 103.69 14.09 206.62 16.15 259.17 282.92 667.64 318.56 15.22 848.83 4803.79
TOTAL: 8454.24 9057.37 74.99 408.2
9 5634.22 281.50 3088.12 2206.89 4666.56 3191.80 308.62 3917.68 41290.29
370
STATEMENT. 3 (3) 1
STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONS
Rs. In lakhs
Sl.
No.
NAME OF THE
DISTRICT
VARIATION IN
ACCOUNT
FIGURES
EXCESS
UTILISATION
OF GRANTS /
FUNDS
DIVERSION OF
GRANTS /
FUNDS
NON-
UTILIZATION OF
GRANTS BEFORE
THE LAPSABLE D
MIS -
UTILISATION OF
GRANTS / FUNDS
NON-
UTILIZATION OF
EARMARKED
FUND
NON-COLLECTION
OF DUES
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 1 0.05 8 4.22 9 246.80 0 0.00 2 0.56 0 0.00 1 0.06
2 Ananthapur 6 0.00 8 1.83 4 3.76 0 0.00 0 0.00 0 0.00 30 17.10
3 Chittoor 1 0.00 7 36.82 1 1.36 0 0.00 1 0.00 0 0.00 16 9.09
4 East Godavari 2 5.47 9 31.97 2 35.20 0 0.00 0 0.00 0 0.00 40 47.70
5 Guntur 3 0.00 9 50.45 1 0.00 1 0.00 1 0.16 0 0.00 29 21.46
6 Kadapa 5 0.00 3 16.02 0 0.00 9 76.73 0 0.00 0 0.00 9 0.45
7 Karimnagar 6 0.34 1 0.69 3 2.37 0 0.00 0 0.00 0 0.00 7 12.03
8 Khammam 1 0.00 1 2.20 0 0.00 0 0.00 1 1.10 0 0.00 11 63.97
9 Krishna 3 0.02 3 1.28 0 0.00 0 0.00 0 0.00 0 0.00 37 234.95
10 Kurnool 0 0.00 2 0.60 2 26.08 1 1.37 3 0.01 4 0.44 9 7.62
11 Mahaboobnagar 8 2.28 4 3.34 4 3.89 0 0.00 1 0.00 1 5.20 48 2.97
12 Medak 7 4.93 9 100.27 2 2.25 1 0.00 0 0.00 0 0.00 10 24.22
13 Nalgonda 24 0.00 14 0.00 6 2.38 0 0.00 1 0.32 1 0.18 32 115.20
14 Nellore 3 0.00 4 4.44 3 5.24 0 0.00 0 0.00 0 0.00 19 90.34
15 Nizamabad 0 0.00 6 8.82 8 104.56 0 0.00 0 0.00 0 0.00 15 95.43
16 Prakasam 7 0.00 7 6.73 0 0.00 0 0.00 0 0.00 0 0.00 13 18.34
17 Ranga Reddy 17 5.98 4 2.44 4 7.60 0 0.00 0 0.00 0 0.00 24 29.26
18 Srikakulam 4 6.57 0 0.00 1 0.05 0 0.00 0 0.00 0 0.00 23 68.94
19 Visakhapatnam 6 0.09 3 0.00 0 0.00 0 0.00 0 0.00 0 0.00 20 95.87
20 Vizianagaram 4 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 20 59.86
21 Warangal 7 4.78 5 3.00 2 500.00 0 0.00 1 0.28 0 0.00 6 10.83
22 West Godavari 2 0.00 2 25.24 0 0.00 0 0.00 0 0.00 0 0.00 38 82.00
TOTAL 117 30.51 109 300.36 52 941.54 12 78.10 11 2.43 6 5.82 457 1107.69
371
STATEMENT 3 (3) 2
STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS
Rs. In lakhs
Sl.
No.
NAME OF THE
DISTRICT
ADVANCES PENDING
ADJUSTMENT
VIOLATION OF
RULES
NON-REMITTANCE OF
DEDUCTIONS/
RECOVERIES FROM
WORK
BILLS/PAYBILLS/CON
TINGENT BILLS
NON-
PRODUCTION OF
RECORDS
MIS-
APPROPRIATIONS
EXCESS
PAYMENTS
No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 6 75.10 56 73.58 13 130.44 34 207.98 4 0.15 7 0.77
2 Ananthapur 37 6.06 47 30.87 10 2.30 56 24.60 8 0.39 4 27.53
3 Chittoor 7 12.86 45 6.38 5 3.22 24 46.42 0 0.00 0 0.00
4 East Godavari 28 463.53 70 239.03 8 1.32 65 510.26 0 0.00 5 0.34
5 Guntur 18 212.21 79 91.77 19 9.47 90 1244.34 0 0.00 12 1.66
6 Kadapa 6 4.67 58 42.44 7 1.64 48 74.83 4 2.03 2 0.49
7 Karimnagar 53 10.99 110 8.36 21 5.70 69 27.61 1 0.14 9 0.20
8 Khammam 9 704.47 25 13.15 29 16.15 13 7.34 0 0.00 13 65.93
9 Krishna 30 58.29 40 36.01 30 9.14 28 29.04 0 0.00 4 1.20
10 Kurnool 10 36.46 40 49.30 5 7.86 47 52.44 0 0.00 2 0.22
11 Mahaboobnagar 5 2.76 65 22.07 50 8.52 64 62.24 6 6.47 26 4.60
12 Medak 3 0.00 37 37.15 25 3.87 20 7.34 1 1.26 6 1.32
13 Nalgonda 9 295.33 30 58.62 24 3.66 21 14.83 1 0.21 1 0.00
14 Nellore 8 134.78 55 17.96 4 0.33 25 6.83 0 0.00 3 0.07
15 Nizamabad 6 171.39 38 39.97 21 12.71 10 22.89 3 0.24 7 0.31
16 Prakasam 8 0.55 91 27.01 7 1.87 63 260.53 6 10.53 3 0.51
17 Ranga Reddy 10 230.34 43 35.54 29 21.23 35 44.84 10 1.01 6 0.19
18 Srikakulam 10 6.34 128 47.85 20 0.96 85 79.89 0 0.00 4 0.24
19 Visakhapatnam 12 102.78 60 6.99 2 0.00 41 23.82 0 0.00 10 1.69
20 Vizianagaram 13 11.89 59 88.18 13 26.84 37 27.54 2 0.47 3 0.06
21 Warangal 2 1.33 62 139.87 34 17.65 44 89.58 4 0.06 13 4.68
22 West Godavari 23 105.66 36 118.77 5 5.01 27 44.76 0 0.00 2 0.13
TOTAL 313 2647.79 1274 1230.87 381 289.89 946 2909.96 50 22.96 142 112.14
372
STATEMENT 3 (3) 3 STATEMENT SHOWING THE CONSOLIDATED CATEGORY WISE AUDIT OBJECTIONS Rs. In lakhs
Sl.
No.
NAME OF THE
DISTRICT
WASTEFUL
EXPENDITURE
INSTANCES
OF CASES OF
UNACCOUNT
ED FOR CASH
/ STORES
PENDENCY
OF
UTILISATIO
N
CERTIFICA
TES
SURCHARG
E
CERTIFICA
TES
RECOVERY
PENDING
OTHERS
D.D/CHEQUES
RECEIVED BUT
NOT REALIZED
WITH IN TIME
Total
No. AMOUNT No. AMOU
NT No.
AMOU
NT No.
AMOU
NT No. AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 1 7.86 0 0.00 1 0.40 0 0.00 52 417.43 0 0.00 195 1165.40
2 Ananthapur 2 1.03 0 0.00 0 0.00 1 0.34 31 0.00 0 0.00 244 115.81
3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 25 0.00 0 0.00 132 116.15
4 East Godavari 1 0.00 0 0.00 0 0.00 0 0.00 32 128.84 0 0.00 262 1463.66
5 Guntur 3 0.73 6 0.06 1 0.00 0 0.00 33 0.00 0 0.00 305 1632.31
6 Kadapa 1 0.30 0 0.00 0 0.00 0 0.00 19 2.08 0 0.00 171 221.68
7 Karimnagar 3 0.57 0 0.00 2 40.00 0 0.00 46 121.45 0 0.00 331 230.45
8 Khammam 0 0.00 13 2.50 0 0.00 0 0.00 17 83.78 0 0.00 133 960.59
9 Krishna 1 0.04 0 0.00 1 30.00 0 0.00 37 24.71 0 0.00 214 424.68
10 Kurnool 2 0.20 0 0.00 0 0.00 0 0.00 31 4.59 0 0.00 158 187.19
11 Mahaboobnagar 3 1.56 0 0.00 0 0.00 0 0.00 63 55.43 0 0.00 348 181.33
12 Medak 1 0.01 2 0.06 0 0.00 0 0.00 0 0.00 0 0.00 124 182.67
13 Nalgonda 2 0.49 0 0.00 0 0.00 0 0.00 51 44.06 0 0.00 217 535.28
14 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 0.00 124 259.99
15 Nizamabad 0 0.00 0 0.00 0 0.00 1 5.09 54 0.69 0 0.00 169 462.10
16 Prakasam 1 0.55 0 0.00 0 0.00 0 0.00 23 14.04 0 0.00 229 340.66
17 Ranga Reddy 0 0.00 1 0.10 0 0.00 2 0.07 47 376.99 1 12.38 233 767.97
18 Srikakulam 2 0.12 0 0.00 0 0.00 0 0.00 171 254.11 0 0.00 448 465.07
19 Visakhapatnam 2 0.14 2 0.08 0 0.00 0 0.00 16 229.57 0 0.00 174 461.03
20 Vizianagaram 2 0.39 0 0.00 0 0.00 0 0.00 21 10.63 0 0.00 174 225.87
21 Warangal 10 1.15 0 0.00 0 0.00 2 5.57 57 14.26 0 0.00 249 793.04
22 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 49 24.90 0 0.00 184 406.47
TOTAL 37 15.13 24 2.80 5 70.40 6 11.07 875 1807.56 1 12.38 4818 11599.39
373
STATEMENT No. 4 STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY
WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
Rs.
In lakhs.
Sl.
No. NAME OF THE CATEGORY No. AMOUNT
1 Variation in Account Figures 117 30.51
2 Excess Utilisation of Grants / Funds 109 300.36
3 Diversion of Grants / Funds 52 941.54
4 Non-utilisation of Grant before lapsable dates 12 78.10
5 Mis-utilisation of Grants / Funds 11 2.43
6 Non-Utilisation of Earmarked Funds 6 5.82
7 Non-collection of dues 457 1107.68
8 Advances pending adjsutemnt 313 2647.79
9 Violation of Rules 1274 1230.87
10 CONSOLIDATION FIGURES 381 289.88
11 Non Production of Records 946 2909.96
12 Mis-appropriations 50 22.96
13 Excess Payments 142 112.14
14 Wasteful Expenditure 37 15.13
15 Instances of cases of unaccounted for cash / stores 24 2.80
16 Pendency of Utilisation Certificates 5 70.40
17 Surcharges Certificates Recovery Pending 6 11.07
18 Others 875 1807.56
19 D.D/Cheques Received but not realized within time 1 12.38
Total: 4818 11599.38
374
STATEMENT No. 5
CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT
OBJECTIONS (A.M.C)2008-09
Sl
No. Name of the district
Closing Balance as on 31.3.10
No.of
Paras
Amount (Rs. in
Lakhs)
1 Adilabad 1580 8674.48
2 Ananthapur 3716 2569.07
3 Chittoor 492 376.69
4 East Godavari 740 6272.51
5 Guntur 2409 10474.99
6 Kadapa 4734 2675.22
7 Karimnagar 331 230.45
8 Khammam 661 2730.61
9 Krishna 1027 2377.44
10 Kurnool 2772 6943.10
11 Mahaboobnagar 1510 2035.37
12 Medak 245 349.10
13 Nalgonda 823 1877.75
14 Nellore 1249 2727.88
15 Nizamabad 596 2580.97
16 Prakasam 2150 1500.47
17 Ranga Reddy 837 1829.98
18 Srikakulam 664 869.07
19 Visakhapatnam 727 1472.46
20 Vizianagaram 359 633.99
21 Warangal 2121 4499.30
22 West Godavari 1315 5373.20
TOTAL: 31058 69074.11
375
376
PART-V
GOVERNMENT OF ANDHRA PRADESH
STATE AUDIT DEPARTMENT
CONSOLIDATED AUDIT AND
REVIEW REPORT
ON THE ACCOUNTS OF
ZILLA GRANDHALAYA SAMSTHAS
FOR THE YEAR 2008-09
DIRECTOR OF STATE AUDIT
A.P., HYDERABAD.
377
378
CONTENTS
STATEMENT No.
DESCRIPTION OF STATEMENTS OF CONSOLIDATED STAE AUDIT AND REVIEW REPOERT OF ZILLA GRANDHALAYA
SAMSTHAS FOR THE YEAR 2008-09
PAGE No.
1 Introductions and a few selected audit objections of Zilla Grandhalaya
Samsthas category wise 381-402
1 Statement showing Dist wise Status of Audit of Zilla Grandhalaya Samsthas for the year 2008-09
403
2 (1) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09
404
(2) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09 ( (receipts)
405
(3) Statement of Consolidated Receipts & Expenditure of Zilla Grandhalaya Samsthas for the year 2008-09 (Payments)
406
3 3(3)1to 3 Statement showing the consolidated category wise audit objections.
407-409
4 4. Statement showing Number of Audit objections raised
(Category wise) and amount involved for the year 2008-09. 410
379
380
CONSOLIDATED AUDIT AND REVIEW REPORT ON THE
ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR THE
YEAR 2008-09
INTRODUCTION
1.1 The Director of the State Audit is the Statutory Auditor for the Local
Authorities including Zilla Grandhalaya Samsthas under section 3(1) of the
AP State Audit Act, 1989. The Department has got offices at all the district
head quarters headed by the District Audit Officer. The District Audit Officer
causes conducting of post audit of ZGS of the district in the month of June
every financial year and approves and issues Audit Report to the Secretary of
the ZGS of district concerned. These Audit Reports contain
(a) every payment which is contrary to law
(b) the amount of any deficiency, waste or loss which has been caused by the
gross negligence or misconduct of any person in the performance of his
duties.
(c) the amount of any sum received which ought to have been accounted but
is not brought into account by any person; and
(d) any material impropriety or irregularity which the auditor may observe in
the expenditure or in the recovery of money due.
1.2 The Audit is conducted by an Audit Party headed by the Assistant Audit
Officer. The District Audit Officer scrutinizes the Draft Audit Report along
with Annual Accounts submitted by the Assistant Audit Officer and approves
the Audit Report. The Audit Report will be issued to the Secretary, ZGS of the
District concerned with a request to furnish replies to each para of the Report
after getting due approval of the District Grandhalaya Committee within 60
days from the receipt of the Audit Report. The DAO scrutinizes the approved
replies furnished and settles the objections. In case the approved replies are
not acceptable, the DAO issues Further Remarks to the Secretary, ZGS on
what action required to be taken. The Secretary, ZGS should furnish the
replies to Further Remarks. In case the replies furnished to Further Remarks
are satisfactory, the DAO drops the objections. If replies are not satisfactory,
the DAO initiates Surcharge Action and submits Draft Surcharge Certificate to
the Regional Deputy Director for approval and issue against the Secretary
fixing the responsibility for the loss so sustained by the ZGS with a direction
to make good the loss with in 60 days. The amount so surcharged should be
recoverable from the Surchargee even resorting to Revenue Recovery Act till
the amount surcharged is recovered in full. In case the Surchargee has any
grievance, he may appeal to the Secretary, Finance, GOAP or file a suit in
civil court.
The Director/ his Subordinate Officers are vested with the powers of
disallowing every amount/item of the expenditure incurred contrary to the law
381
and surcharge the same on the person incurring or authorizing the incurring of
such expenditure and may charge against any person responsible therefore, the
amount of any deficiency, loss or unprofitable outlay occasioned by the
negligence or misconduct of that person or of any such sum which ought to
have been accounted for but not brought into account by the person and shall,
in every such case, certify the amount due from such person.
SCOPE OF AUDIT
2.1 The Scope of the Post Audit of ZGS encompasses the following items:
(i) Whether Library Cess (a) levied by all the Gram Panchayats in
the State on House Tax and all the ULBs in the State on
Property Tax @ 8%, (b) collected by all the Gram Panchayats
and ULBs and (c) whether the collected library Cess has been
properly adjusted to funds of Zilla Grandhalaya Samsthas
concerned.
(ii) Whether adequate care is taken in periodical checking up of the
funds with Treasury or Bank.
(iii) Whether expenditure incurred is provided for in the Budget of
the Zilla Grandhalaya Samstha and duly sanctioned by the
competent authority under the relevant rules and executive
instructions issued by the Government.
(iv) Whether funds are utilized only for the permitted purposes
prescribed for Zilla Grandhalaya Samstha under the A.P. Public
Libraries Act, 1960 / Rules.
(v) Whether the procedure prescribed by Government in incurring
the expenditure / payments made is properly followed and
accounted for with due classification in the books of accounts
of the Zilla Grandhalaya Samstha.
(vi) Whether vouchers for the expenditure incurred were
maintained.
(vii) Whether prescribed Registers have been maintained
(viii) Whether the Annual Accounts prepared with reference to the
Actual Transactions of the ZGS and express true and fair value of the
ZGS.
382
GRANTS RECEIVED DURING THE YEAR BY THE LOCAL
AUTHORITIES.
3.1 The Zilla Grandhalaya Samsthas are provided grants by the State
Government towards Salaries, Pensions, Contingent Expenditure and other
Grants for books, furniture etc.,The receipts and payments are inclusive of
the grants received from Government during the year 2008-09 by Zilla
Grandhalaya Samsthas.
3.2 The Pie chart of proportional Percentages of Receipts and Payments of
Zilla Grandhalaya Samsthas during the year 2008-09 is placed below.
3.3 The bulk of receipts came from Salary grant (46%) followed by Library
cess (34%) which shows that Grandalaya Samsthas are dependent on
Government grants instead of raising of its main resource.
Library Cess: This department has observed that Grampanchayats and Municipalities
have to remit Library cess to a tune of Rs.209.80 lakhs and Rs. 97.00 lakhs
respectively to Zilla Grandhalaya Samsthas. But no action was taken by the Zilla
Grandhalaya Samsthas to get the amounts remitted by the said institutions.
ZGS RECEIPTS 2008-09
34%
46%
7%
1%
0%
12% 1 LIBRARY CESS - 34%
2 SALARY
GRANT -46%
3 PENSION
GRANT -7%
4 CONTINGENT GRANT-1%
5 SALE OF OLD NEWS PAPERS-0%
6 OTHER
RECEIPTS-12%
383
3.5 The bulk of payments are for salaries (42%) followed by pensions (19%). The
Development expenditure is only 10% on cost of books and periodicals.
3.6 The receipts and payments of previous years in respect of ZGS is as detailed
below.
Rs. In Lakhs
# Year Receipts
%
Change
Y to Y
Library
Cess
%
Change
Y to Y
Payments
%
Change
Y to Y
1 2005-06 9989.88 3218.56 12340.49
2 2006-07 8129.48 -19 4955.36 54 5337.70 -57
3 2007-08 7210.89 -11 2027.45 -59 6175.84 16
4 2008-09 5951.34 -17 1905.80 -6 6468.83 5
Total 31281.59 12107.17 30322.86
ZGS PAYMENTS 2008-09
10%
42%
19%
3%
1%
7%
10%
0%
8%
1 COST OF
BOOKS & PDLS-10%
2 SALARIES-42%
3 PENSIONS-19%
4 EXPENDITURE
FROM
CONTINGENT 3%
5 TA & LTC-1%
6 OTHER ADMN.
EXPENDITURE-7%
7 COST OF
BUILDINGS-10%
8 INVESTMENTS-0%
9 OTHERS-8%
384
The receipts are falling very steeply as much as by -19%, -11% and -17%. The
trend of receipt is negative and erratic. It may be stated in this regard that there is
general tendency in increase of House Tax in Gram Panchayats and Property Tax in
ULBs either due to new assessments or rectification of un-assessed and under
assessed. Against this back drop the receipt of library cess is falling significantly and
the trend is negative. This is against the general tendency of increase in receipts.
There is pertinent need to go for in depth study and take remedial measures to revert
the negative trend and make it in commensurate with the HT and PT.
As against negative trend of receipts and library cess the expenditure is
increased. As a result, there is no financial prudence and discipline.
3.6 The expenditure against grants is exceeding the grant amount many times as
detailed below.
Sl.
No.
Name of the
Grant
Amount of Grant
received in lakhs
Expenditure
against the grant
in lakhs
Excess
utilization
1 Pension 385.44 1194.77 809.33
2 Contingent 29.19 182.28 153.09 414.63 1377.05 962.42
STATUS OF AUDIT
4.1 The audit of all the Zilla Grandhalaya Samsthas / City Grandhalaya Samsthas
up to the year 2008-09 was conducted in the year.
4.2 The Department has conducted the audit of the receipts amounting to Rs.
59.51 Crores and expenditure of Rs. 64.68 Crores as detailed in the
Statements No. 2 (1) to 2 (3) with Zilla Grandhalaya Samstha wise break up.
AUDIT OBJECTIONS
5.1 During the course of audit of these Zilla Grandhalaya Samsthas for the year
2008-09 various defects noticed were already pointed out in the relevant Audit
Reports which were forwarded to the Secretaries concerned for further action
at their end as per the procedure laid down under the A.P. State Audit Act.
5.1 A Consolidated Statement showing the number of objections raised, amount
involved with Zilla Grandhalaya Samstha wise break-up is annexed vide
Statement No.3
385
5.2 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
16. Pendency of Utilization Certificates
17. Surcharge certificates-Recovery pending
18. Others
19. D.D/Cheques received but not realized within time
5.3 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)
5.4 Gist of some of the selected audit objections pertaining to the year under
report is enumerated below:
STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED
(CATEGORY WISE)
AND AMOUNT INVOLVED FOR THE YEAR 2008-09.
(Rs in Lakhs)
Sl. No.
NAME OF THE
CATEGORY
No of
objections % Amount %
1
Excess Utilization of
Grants / Funds 13 5 318.58 20
2
Non-utilization of
Grants before the
lapsable date 1 0 7.34 0
3 Non-collection of dues 5 2 347.32 21
386
4
Advances Pending
Adjustment 12 5 12.83 1
5 Violation of Rules 76 31 135.2 8
6
Non remittance of
deductions 8 3 2.64 0
7
Non Production of
Records 65 26 446.93 27
8
Mis-appropriation of
Funds/Grants 1 0 0.02 0
9 Excess Payments 38 15 5.5 0
10
Pendency of
Utilization Certificates 7 3 290.71 18
11 Others 23 9 64.8 4
Total: 249 100 1631.9 100
The Dominant Category of Objections in ZGS is Non production of Records
which constituted 27% followed by Non- Collection of Dues at 21% in terms of
value. Where as Excess Utilisation of Grants/Funds and Pendency in submission
of Utilisation Certificates which constitute 20 % and 18% respectively.
The administrative expenditure in proportion with total expenditure of ZGS is
analyzed. As seen form the table, it can be observed that, the expenditure on
administrative contingencies is vastly varying from one district to the another district
from 1 % in Adilabad and West Godavari districts , 22% in Nalgonda district. The
range of variation is too high to rely. Obviously there must have been mis-
classification among these districts otherwise such variation is un-acceptable. An in-
depth study is required as to why there is such a large variation among the districts
and the Director of Public Libraries is requested to standardize the practice to get
uniform practices throughout state.
STATEMENT SHOWING THE COMPARISON BETWEEN OTHER
ADMNISTRATIVE EXPENDITURE WITH TOTAL EXPENDITURE
S.No. Name of the District
OTHER ADMN.
EXPENDITURE
TOTAL
EXPENDITURE % of total
1 Adilabad 2.03 187.34 1.08
2 Ananthapur 23.82 230.56 10.33
3 Chittoor 20.18 384.78 5.00
4 East Godavari 33.23 391.72 8.48
387
5 Guntur 7.99 344.21 2.32
6 Kadapa 8.42 218.57 3.85
7 Karimnagar 0.00 237.63 0.00
8 Khammam 23.10 224.56 10.29
9 Krishna 0.00 448.96 0.00
10 Kurnool 0.00 210.38 0.00
11 Mahaboobnagar 40.00 246.51 16.23
12 Medak 17.31 151.68 11.41
13 Nalgonda 44.61 202.09 22.07
14 Nellore 15.36 296.80 5.18
15 Nizamabad 0.00 0.00
16 Prakasam 15.95 266.88 5.98
17 Ranga Reddy 74.34 1277.43 5.82
18 Srikakulam 15.81 173.21 9.13
19 Visakhapatnam 5.76 337.00 1.71
20 Vizianagaram 0.00 127.56 0.00
21 Warangal 35.25 196.63 17.93
22 West Godavari 1.74 314.33 0.55
TOTAL: 384.90 6084.05
As seen form the table, it can be observed that, the expenditure on daily
newspapers is vastly varying from one district to another district from 1 % in Krishna
district, 27% in Nalgonda district. The range of variation is too high to rely. An in-
depth study is required as to why there is such a large variation among the districts
and the Director of Public Libraries is requested to standardize the practice to get
uniform practices throughout state.
Sl.
No. Name of the District
SALE OF OLD
NEWS PAPERS
COST OF BOOKS
& PDLS
% of
realisation
1 Adilabad 0.05 6.18 1.00
2 Ananthapur 0.92 11.80 8.00
3 Chittoor 0.74 44.03 2.00
4 East Godavari 1.85 13.23 14.00
5 Guntur 2.13 16.05 13.00
6 Kadapa 1.01 24.96 4.00
7 Karimnagar 0.20 61.80 0.00
388
8 Khammam 0.42 44.09 1.00
9 Krishna 2.65 17.26 15.00
10 Kurnool 0.62 13.78 4.00
11 Mahaboobnagar 0.58 8.90 7.00
12 Medak 0.72 5.36 13.00
13 Nalgonda 2.10 7.73 27.00
14 Nellore 0.46 53.91 1.00
15 Nizamabad 0.00 0.00
16 Prakasam 0.91 24.30 4.00
17 Ranga Reddy 1.72 135.12 1.00
18 Srikakulam 0.07 27.19 0.00
19 Visakhapatnam 0.00 43.31 0.00
20 Vizianagaram 0.00 10.44 0.00
21 Warangal 0.00 8.70 0.00
22 West Godavari 0.03 15.33 0.00
TOTAL: 17.18 593.47
As seen form the table, it can be observed that, the receipt on library cess to the
total receipts is vastly varying from one district to the another district from 20 % in
Nellore district, 50% in Warangal district. The state average being 32 %. The standard
deviation is very much is skewed to rely on the data. The range of variation is too
high to rely. Obviously, there must have been mis-classification among these districts.
Otherwise, such variation is un-acceptable. An in- depth study is required as to why
there is such a large variation among the districts and the Director of Public Libraries
is requested to standardize the practice to get uniform practices throughout state.
389
(amount in Lakhs)
Sl.No. Name of the District LIBRARY
CESS TOTAL
% of library cess to total receipts
1 Adilabad 41.82 187.3 22
2 Ananthapur 65.49 191.9 34
3 Chittoor 150.99 373.8 40
4 East Godavari 153.31 389.15 39
5 Guntur 100.58 339.81 30
6 Kadapa 63.47 206.8 31
7 Karimnagar 72.17 228.89 32
8 Khammam 70.65 215.89 33
9 Krishna 99.55 375.61 27
10 Kurnool 41.87 86.48 48
11 Mahaboobnagar 49.62 225.92 22
12 Medak 42.45 189.86 22
13 Nalgonda 73.51 260.32 28
14 Nellore 56.4 283.81 20
15 Nizamabad 0 0 0
16 Prakasam 66.47 172.38 39
17 Ranga Reddy 365.86 1110.44 33
18 Srikakulam 33.97 165.21 21
19 Visakhapatnam 150.72 350.48 43
20 Vizianagaram 27.37 126.55 22
21 Warangal 132.64 266.7 50
22 West Godavari 46.89 204.04 23
TOTAL: 1905.80 5951.34 32
390
AUDIT PARAS
1. EXCESS UTILISATION OF GRANTS (Code – 2)
During the course of audit of Zilla Grandhalaya Samsthas in the state for the
year 2008-09, it is noticed that excess expenditure is incurred than the Budget
provision. Such expenditure needs to be regulated. It was noticed during the audit
that the executive authorities of Zilla Grandhalaya Samsthas were incurring
expenditure in excess of the grant received from the Government either in
anticipation of the release of further grant or withdrawing the excess amount from the
General Funds of the institution.
A consolidated Statement No. 3 (3) 1 of Excess Utilisation of Grants/ Funds is
appended to the report. It could be seen that an amount of Rs. 412 Lakhs was pointed
out in 14 paras
1.1 Zilla Grandhalaya Samsthas- EXCESS EXPENDITURE INCURRED – ABOVE
THE GRANT RELEASED - NEEDS REIMBURSEMENT - Rs. 22013790
On verification of records maintained by the Zilla Grandhalaya Samstha, it is noticed
that expenditure was incurred as detailed below over and above the actual grant released for
the year 2008-09, which is held under objection and needs reimbursement from the higher
authorities.
The details of Excess Uitilisation of Grants are shown below.
Sl
No
Name
of the
ZGS
Head of
item
Grant
Released/
Budget
provided
(Amount
in Rs.)
Expendit
ure
(Amoun
t in Rs.)
Excess
(Amount
in Rs.)
Action to be taken Para
No.
1
Kakinada
Remunera
tion to
part
time
librarians
900000 1143641 243641
The ratification
orders for the
amount incurred in
excess over budget
would need to be
produced to audit.
2
Telephone 30000 39505 9505
Total 930000 1183146 253146
391
2. NON-UTILISATION OF GRANTS BEFORE LAPSABLE
DATE (Code – 4)
Government releases special grants to the Zilla Grandhalaya Samsthas for
implementing specific schemes. These grants are to be utilized for the purposes
for which they are meant for following the guidelines issued / norms prescribed
and such utilization should be within the date prescribed, otherwise, the grants
will lapse to government, unless the lapsable date of any particular grant is
extended by government or grant releasing authority. The grant sanctioning
authorities were not approached for extending the utilization period. Thus the
schemes for which the grants released were not implemented effectively and
totally. The unspent balances were also not refunded to the grant releasing
authorities.
A consolidated Statement No. 3 (3) 1 of Non-Utilisation of Grants before
lapsable date is appended to the report. It could be seen that an amount of Rs.
7.34Lakhs was pointed out in 1 para.
2.1 VISAKHAPATNAM ZILLA GRANDHALAYA SAMSTHA - GRANTS -
UN-UTILISED - NEEDS ACTION FOR UTILISATION - Rs. 734422 /-
During the course of audit on the accounts of Zilla Grandhalaya Samstha,
Visakhapatnam for 2008-09, it is observed that the following grants have not been
utilized and left unspent at the close of the year.
Immediate action would need to be taken to utilize the amounts for the
purpose for which it was granted and utilization particulars be intimated to audit.
Name of
the grant
O.B 2008-09
received
grant
Total Utilisa
tion
Balance as
on
31-3-2009
CERU 241878 183500 425378 337696 87682
SCP 427586 105960
35000 568546 446748 121798
TSP 859899 212000
75000
114689
9 824826
322073
11th
Finance
Commn.
2386000 - - 151356 87244
SCP grant
(books on
demand) - 52500 - - 52500
TSP Grant (
Books on
Demand ) - 63125 - - 63125
734422
(Para no. 2 of ZGS Visakhapatnam for the year 2008-09)
392
3. NON-COLLECTION OF DUES (Code no. 7)
On verification of revenue collections in Zilla Grandhalaya Samsthas, huge
amounts have been noticed to be pending realization from Municipal Councils,
Municipal Corporations and Gram Panchayats for long periods and allowed to
become barred by limitation of time. No appropriate action seems to have been
initiated by the executive authorities before the dues become barred by limitation of
time, in spite of various statutory provisions for their recovery.
A consolidated Statement No. 3 (3) 1 of Non collection of dues is appended to
the report. It could be seen that an amount of Rs. 347.32 Lakhs was pointed out in 5
paras.
3.1 EAST GODAVARI ZILLA GRANDHALAYA SAMSTHA
As seen from the library cess collection register, it is noticed that huge amounts
are pending realization as detailed hereunder from the Municipal Corporations,
Municipal Councils and Gram Panchayats. No correspondence has been made to
collect the amount from them. Effective action would need to be taken to collect the
balance due from the Institutions.
Sl. No. Name of the Municipal Corporation/Council Due
Rs.
1 Rajahmundry Municipal Corporation 7800362
2 Kakinada 5233500
3 Amalapuram Municipality 1099000
4 Ramachandrapuram Municipality 440000
5 Samalkota Municipality 851000
6 Peddapuram Municipality 539530
7 Tuni Municipality 38158
8 Mandapeta Municipality 726000
9 Pithapuram Municipality 303000
10 Gram Panchayats 18448605
TOTAL 35479155
(Para no. 5 of ZGS Kakinada for the year 2008-09)
4. ADVANCES PENDING ADJUSTMENT (Code -8)
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.
393
A consolidated Statement No. 3 (3) 1 of Advances Pending Adjustment is
appended to the report. It could be seen that an amount of Rs. 12.80 Lakhs was
pointed out in 12 paras.
5. VIOLATION OF RULES(Code No. 9)
It was noticed in audit of the Zilla Grandhalaya Samsthas that in some cases
the Rules and Government instructions for incurring the expenditure from the funds of
the Zilla Grandhalaya Samsthas were violated either due to negligence or ignorance.
Certain times, the funds of the Zilla Grandhalaya Samsthas were utilised for purposes
other than the permitted ones under the Act / Rules. It was also noticed that in a few
cases Government instructions were misunderstood or misinterpreted. Such irregular
expenditure incurred was objected in the relevant audit reports.
A consolidated Statement No. 3 (3) 2 of Violation of Rules is appended
to the report. It could be seen that an amount of Rs. 135.2 Lakhs was pointed out in
76 paras.
5.1 Khammam Zilla Grandhalaya Samstha
During the audit it is noticed that, the executive authority of Z.G.S.,
Khammam has made some purchases towards the below mentioned items during the
year 2008-09. In such purchases, the executive authority has paid the VAT charges
directly to the firm.
As per the guidelines, if any work (or) purchases is undertaken by the
executive authority of such institution, deductions, if any from the work bills or bills
of such work or purchases and the same should be paid to the concerned department
through Challan or demand Draft from the funds from which it has been deducted.
But, in this case, the executive authority has not followed these instructions. Even the
paid statements to the government by the firm such as D.Ds or if any are also not
produced before the audit. In absence of the above, it could not be ascertained
whether the amount was remitted to the government originally or not.
Therefore, action should be taken to get adjusted the amount from the above
said firm or even to observe whether the amount which is paid directly to the firm has
been remitted to the head of account concerned by the firm or not under intimation to
audit.
PARTICULARS
Sl.
No. Purchased Item Total amount VAT Amount Amount paid to
1 Furniture & fittings 1125211 125211
2 Generators 168750 18750 HACA, Hyderabad
3 Air conditioners 450000 50000
4 Computers& others 1051916 51916
245877
(Para no. 10 of ZGS Khammam for the year 2008-09)
394
6. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES
FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS
(Code No. 10)
It was noticed during audit that various deductions / recoveries effected from the
work bills / pay bills were either not remitted to Government or a part of them only
were remitted in spite of statutory obligation to remit the same to Government
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. VAT
Pay Bills
1. Profession Tax
2. G.I.S Premium
3. Contribution to Pension Scheme
4. Sainik Welfare Fund
A consolidated Statement No. 3 (3) 2 of Non Remittance Deductions/
Recoveries from vouchers pay bills/ contingent bills is appended to the report. It could
be seen that an amount of Rs. 2.64 Lakhs was pointed out in 8 paras.
7. NON-PRODUCTION OF RECORDS (Code No. 11)
7. NON-PRODUCTION OF RECORDS MEASUREMENT BOOKS/
VOUCHERS/ OTHER CONNECTED RECORDS Rs. 3375000
The Zilla Grandhalaya Samsthas have to maintain effective financial
management skills and accountability practices.
A consolidated Statement No. 3 (3) 2 of Non Production of Records is
appended to the report. It could be seen that an amount of Rs. 446.93 Lakhs was
pointed out in 65 paras.
8. Mis-appropriation of Funds/Grants (Code No.-12)
Cases of Mis-appropriation of money noticed in audit were pointed in the
audit report concerned.
395
A consolidated statement of Misappropriations noticed in audit is annexed
wide statement no. 3(3).
8.1. CITY GRANDHALAYA SAMSTHA HYDERABAD - OTHER THAN CGS
TELEPHONE BILLS EXPENDITURE MET FROM CGS FUND -
INADMISSIBLE - NEEDS RECOVERY FOR RS.2413-00
During the year an amount of Rs.2413-00 was drawn and paid towards
Telephone charges. On verification, it is noticed that, the Telephone numbers
mentioned on voucher do not belong to City Grandhalaya Samstha (CGS),
Hyderabad. When the telephone and mobile are not pertaining to CGS, how the
claim was preferred and admitted from CGS funds is not known. Therefore, the
expenditure is treated as unauthorized and inadmissible. The same may be
recovered from the person or persons responsible and made good to CGS funds.
Voucher No/Date Purpose Amount Cheque No./Date
579/02.09 Tata Mobile
9848023485
1088-00 683953/12.12.09
600/02.09 Tata Mobile
637719848
1325-00 683974/25-2-09
(Para no. 2 of CGS Hyderabad for the year 2008-09)
09. EXCESS PAYMENTS (Code 13)
It was observed that in several cases excess payments were made due
to incorrect calculation, excess totaling in bills, admission of inadmissible claims,
Lack of knowledge of Government Instructions.
A consolidated Statement No. 3 (3) 2 of Excess Payments is appended
to the report. It could be seen that an amount of Rs. 5.50 Lakhs was pointed out in 38
paras. A few cases of excess Payments are mentioned below.
396
9.1 Vizianagaram Zilla Grandhalaya Samstha- Remittances of excess amounts of G.P.F, L.I.C and others Rs.40,345
As seen form the cash book, it is noticed that during the period of April-2008 to March-
2009 payments were made to different heads of accounts over and above the actual
recovery. The excess payment made to the Head of account concerned over and above
the recovered amount would need to be recovered from the person responsible and
remitted to Zilla Grandhalaya Samstha funds, under intimation to audit.
(Para no. 3 of ZGS Vizayanagaram for the year 2008-09)
9.2 Establishment - Branch Library - Parvathipuram Sri D.Suresh Kumar,
Attender - Subsistence allowance - full DA paid instead of proportionate to
the pay - consequential excess payment Rs.7,260/-.
On verification of vouchers with reference to the pay bill register of the branch
library, for the year 2008-09, it is noticed that an amount of Rs.7,260/- was drawn in
excess than admissible and paid to Sri D.Sureshkumar, attender towards subsistence
allowance for the period that he was under suspension from 18/2/08 to 23/11/08 as
detailed under. Along with subsistence allowance full DA was paid instead of DA
proportionate to the pay as per FR 53(i)(ii)(a) Hence the DA drawn in full is
irregular and excess payment made in consequence of the above erroneous
calculation need to be recovered from the individual or from the person responsible
for the payment.
Sl
No Head of Account
Amount
recovered (Rs.)
Amount
remitted
(Rs)
Excess Remitted
(Rs)
1 G.P.F. 494432 530746 36314
2 L.I.C. 233812 235811 1999
3 Syndicate Bank
recoveries
437230 439163 1933
TOTAL 1165474 1205720 40246
397
Month Pay
18/2/08 to 28/2/08 858
3/08 2185
4/08 2185
5/08 2185
6/08 2185
7/08 2185
8/08 1260
(18 days)
19/8/08 to 31/8/08 916
9/08 2185
10/08 2185
Vr 474
1/1/09 (1/11/08 to 23-11-08) 1675
DA Drawn
@
30.796%
605
1564
1564
1564
1564
1564
900
655
1564
1564
13108
1420
DA admissible Excess
307 298
782 782
782 782
782 782
782 782
782 782
450 450
327 328
782 782
782 782
6558 6550
710 710
7260
(Para no. 10 of ZGS Vizayanagaram for the year 2008-09)
9.3 .EARNED LEAVE-ENCASHMENT OF EARNED LEAVE-EXCESS
EARNED LEAVE ENCASHED-NEEDS RECOVERY - Rs 3357
During the course of audit, it is noticed that the Encashment of Earned Leave
for 278 days was sanctioned to Sri R.CH.Veerabhadra Swamy, who retired on
superannuation on 30-06-08 Vide prg.No.12/A/2008, Dt.17-07-2008 of the Secretary,
Zilla Grandhalaya Samstha, Viziangaram. The excess credited 8 days as on 01-10-
2005 vide G.O.Ms.No.232 Finance (FRI) Dt.16-09-2005 over the advance credit
already given on 01-07-05 was not deducted from the earned leave account of the
individual. The objection was also communicated vide para No.18 of Zilla
Grandhalaya Samstha audit report for the year 2007-2008.
Hence, the excess of 8 days of Encashment Earned leave as worked below
needs to be recovered from the individual and remit the same to ZGS funds.
398
Pay :: 8600-00, P.P::50; D.A;;3078; HRA::860; TOTAL::Rs.12,588
Encashment earned leave Paid for 278 days Rs.12588/30 x 278=Rs.1,16,649
(Vr No.219/2-8-08)
Encashment earned leave eligible for 270 days Rs.12588/30 x 270=Rs.1,13,292
Encashment earned leave excess Paid for 8 days Rs.12588/30 x 8=Rs.357
OR
Rs.1,16,692-
Rs.1,13,292=Rs.3,357
(Para no. 13 of ZGS Vizayanagaram for the year 2008-09)
9.4 Nellore Zilla Grandhalaya Samastha - PAYMENT OF
DEARNESS RELIFE TO FAMILY PENSIONERS WHO AVAILED THE
BENEFIT OF COMPASSIONATE APPOINTMENT IRREGULAR - NEEDS
RECOVERY Rs. 19,876
In continuation of para No. 6 of the A.R. 2007-08 ,the DR paid on
pension to those who availed compassionate appointment for the period from
03/08 to 08/08 as detailed below is to be recovered from the person/persons
responsible.
Sl.No Particulars Periods/Months D.R.
Paid
Total
1 S.Nageswaramma
Attender
B.L.Mulapeta
3/08
4/08 to 8/08 @ 716/-
603
3580
4183
2 L.Prabahakar
Attender B.L.Buch
3/08
4/08 to 8/08 @1620/-
1365
8100
9465
3 Ch. Sujatha Attender
B.L. gudur
3/08
4/08 to 8/08 @ 1066/-
898
5330
6228
19876
Action would need to be taken to recover the amount of Rs.19,876
along with, arrears (paid earlier) from the person/persons responsible under
intimation to audit.
(Para no. 30 of ZGS Nellore for the year 2008-09)
399
10. PENDENCY OF UTILIZATION CERTIFICATES (Code No. 16)
According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I,
read with Govt. Memo. No. 46825/Accts/75, dt. 6-1-1996, It is the responsibility of
the Grant receiving authority to send the utilization certificates in the proforma prescribed duly certified by the District Audit Officer, State Audit Department. But
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) Dept, dt. 10-4-2002, the Government have among others prescribed the pre-condition under para 12 of G.O. for further drawal of Funds from April, 2002
onwards by the local bodies / Public Sector enterprises, Autonomous bodies and other
Grant-in-Aid institution. “Utilization Certificates certified by the Statutory Auditor,
that the funds previously released have been fully and properly used for the purpose for which they have been sanctioned.” But the aforesaid Government orders are not
being observed by Executive Authorities which resulted in heavy pendency of
utilization certificates to be furnished to the grant releasing authorities.
Consolidated statement of cases of Pendency of U.Cs in Statement 3 (3) 3 is appended to the report from which it can be noticed that 7 paras involving Rs.290.71
lakhs were reported. Such cases are reported in the Audit Reports of Zilla
Grandhalaya Samsthas is shown in the statement appended.
10.1Nizamabad Zilla Grandhalaya Samstha - Pendency of Utilisation
Certificate :
Non-Submission of Utilisation Certificates towards construction of Branch Library
Buildings : According to Article 211(a) of APFC Vol.I, it is the responsibility of the grant
receiving authority to send the Utilisation Certificates in the proforma prescribed duly
getting the certificate by the District Audit Officer, State Audit, Nizamabad.
On Verification of the grants received register, it is noticed that the following
grants were released from the Zilla Grandhalaya Samstha, Nizamabad to the different
Executive Engineers towards the construction of Branch Library buildings during the
subsequent year. But the following No. of Utilisation Certificates were not furnished
to audit.
Sl.
No
.
Purpose of grant Grant released through procgs.
No. and adjustment no.
U/C to be
submitted Subm
itted
Balance to be
submitted
No. of
U.C-s Amount
No. of
U.C-s Amount
1 2 3 4 5 6 7 8
1 Advance Salary
Grant
19-C2/2008 Dt.18-4-08,12-6-
08,16-5-08,12-6-08,29-10-
08,29-10-08, 17-6-08, 01-01-
09, 03-02-09
1 1383600
0
- 1 13539000
2 SCP Grant 36-C3/2007, dt.18-12-2008 1 17500 - 1 17500
3 Remuneration to
Outsourcing
122-C3/2008, dt.30-12-2008 1 523998 - 1 523998
4 CERU Grant 54-C3/2008, dt.03-07-08, 93-
C3/2007, dt.26-05-2008, 26-
05-2008, 26-05-2006
1 258500 - 1 258500
5 E-Grandhalaya 36-C3/2007, dt.18-12-2008 1 27500 - 1 27500
6 SCP On
Demand
36-C3/2007, dt.18-12-2008 1 52500 - 1 52500
Total 1471599
8
14715998
(Para no. 16 of ZGS Nizamabad for the year 2008-09)
400
10.2 Prakasham Zilla Grandhalaya Samstha - Grant released by the Zilla
Grandhalaya Samstha to the various executive agencies towards construction of
Library buildings – Completion certificates not obtained
During the year 2008-09 an amount of Rs. 33,00,000 has been paid to various
executive agencies towards constructing Library buildings as shown below, However
connected completion certificates were not obtained from these agencies and
produced to Audit.
Vr. NO. & Month Name of the executive Agency Amount
paid
737 dt 2.1.09 E.E.PR Markapur. 2,50,000
844 dt 12.2.09 --do-- 5,00,000
738 dt 2.1.09 E.E.PR Parchur. 2,00,000
843 dt 12.2.09 --do-- 6,00,000
845 dt 12.2.09 E.E.PR Ongole. 17,50,000
Total: 33,00,000
(Para no. 15 of ZGS Ongole for the year 2008-09)
10.2 VIZIANAGARAM ZILLA GRANDHALAYA SAMSTHA -
UTILISATION CERTIFICATE – NOT FURNISHED - NEEDS ACTION:
Though it is the responsibility of the grants receiving authority to send the
utilization certificates in the prescribed proforma as intimated in Article 211(a)(2)
of Andhra Pradesh Financial Code Vol.I, no action was taken to prepare and
furnished the utilization certificates.
Sl. No. Grant Amount Received
1 Salary Grant 68,25,000
2 Pension Grant 1,59,000
3 S.C.P.Grant 1,84,000
4 T.S.P.Grant 1,19,125
5 C.E.R.U.Grant 1,83,500
6 -e- Grandhalaya Software 8,50,000
(Para no. 6 of ZGS Vizayanagaram for the year 2008-09)
401
11. OTHERS (Code No 18)
Other objections which were not fallen in the above categories are
incorporated under this category. Such objections numbering 23 were raised for an
amount of Rs.64.82 as detailed in Statement
A consolidated Statement No. 3 (3) of Others is appended to the report.
It could be seen that an amount of Rs. 64.82 Lakhs was pointed out in 23 paras.
DATE 20-12-2011
HYDERABAD DIRECTOR,
STATE AUDIT,
A.P., HYDERABAD.
402
403
STATEMENT No. 1
STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF
ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2008-09
Sl.No. NAME OF THE
DISTRICT
DEMAND AS
ON 31-3-2008
AUDIT
COMPLETED AS
ON 31-03-2009
BALANCE AS ON
31-03-2009
CURRENT CURRENT CURRENT
1 Adilabad 1 1 0
2 Ananthapur 1 1 0
3 Chittoor 1 1 0
4 East Godavari 1 1 0
5 Guntur 1 1 0
6 Kadapa 1 1 0
7 Karimnagar 1 1 0
8 Khammam 1 1 0
9 Krishna 1 1 0
10 Kurnool 1 1 0
11 Mahaboobnagar 1 1 0
12 Medak 1 1 0
13 Nalgonda 1 1 0
14 Nellore 1 1 0
15 Nizamabad 1 1 0
16 Prakasam 1 1 0
17 Ranga Reddy 2 2 0
18 Srikakulam 1 1 0
19 Visakhapatnam 1 1 0
20 Vizianagaram 1 1 0
21 Warangal 1 1 0
22 West Godavari 1 1 0
TOTAL: 23 23 0
404
STATEMENT No. 2 (1)
STATEMENT OF CONSOLIDATED RECEIPTS AND
EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS
FOR THE YEAR 2008-09
Rs. In lakhs
SL
No.
NAME OF THE
DISTRICT RECEIPTS PAYMENTS
1 Adilabad 187.30 187.34
2 Ananthapur 191.91 230.60
3 Chittoor 373.80 384.78
4 East Godavari 389.15 391.72
5 Guntur 339.81 344.21
6 Kadapa 206.80 218.57
7 Karimnagar 228.89 237.63
8 Khammam 215.89 224.56
9 Krishna 375.61 448.96
10 Kurnool 86.48 210.38
11 Mahaboobnagar 225.92 246.51
12 Medak 189.86 151.68
13 Nalgonda 260.32 202.09
14 Nellore 283.81 296.80
15 Nizamabad 0.00 0.00
16 Prakasam 172.38 266.88
17 Ranga Reddy 1110.44 1277.43
18 Srikakulam 165.21 173.21
19 Visakhapatnam 350.48 337.00
20 Vizianagaram 126.55 127.56
21 Warangal 266.70 196.63
22 West Godavari 204.04 314.33
TOTAL: 5951.35 6468.87
405
STATEMNET 2 (2)
Sl.
No.
NAME OF THE
DISTRICT
LIBRAR
Y CESS
SALARY
GRANT
PEN
SIO
N
GRA
NT
CONTI
NGEN
T
GRAN
T
SALE OF
OLD
NEWS
PAPERS
MEM
BERS
HIP
DEPO
SITS
SECURIT
Y
DEPOSIT
S
OTHE
R
DEPO
SITS
OTHE
R
RECE
IPTS
ADVAN
CES
RECOV
ERABLE
1 Adilabad 41.82 81.19 35.33 0.00 0.05 0.27 0.00 0.19 25.70 2.75
2 Ananthapur 65.49 102.06 3.42 0.00 0.92 0.66 0.00 0.00 19.35 0.00
3 Chittoor 150.99 148.71 3.57 0.00 0.74 0.89 0.00 37.55 30.66 0.69
4 East Godavari 153.31 148.20 51.02 0.00 1.85 1.36 0.11 0.00 31.84 1.46
5 Guntur 100.58 134.32 78.04 0.00 2.13 1.26 3.83 0.12 19.53 0.00
6 Kadapa 63.47 95.82 3.28 0.00 1.01 0.51 0.00 11.34 31.19 0.18
7 Karimnagar 72.17 129.54 2.10 4.46 0.20 0.80 0.00 0.00 18.69 0.93
8 Khammam 70.65 116.75 0.00 0.00 0.42 0.73 0.00 2.50 22.76 2.08
9 Krishna 99.55 211.05 10.60 0.00 2.65 1.40 0.00 4.60 45.76 0.00
10 Kurnool 41.87 1.50 0.00 13.92 0.62 0.50 0.00 0.00 1.15 26.92
11 Mahaboobnagar 49.62 122.74 0.00 0.27 0.58 0.45 0.00 0.00 38.38 13.88
12 Medak 42.45 83.20 33.88 10.00 0.72 0.56 0.05 17.25 0.21 1.54
13 Nalgonda 73.51 118.60 11.74 0.00 2.10 0.00 0.00 0.92 52.37 1.08
14 Nellore 56.40 183.92 3.05 0.00 0.46 0.43 0.00 18.29 21.26 0.00
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 66.47 94.72 2.13 0.00 0.91 0.70 0.00 0.82 5.99 0.64
17 Ranga Reddy 365.86 374.98 124.60 0.00 1.72 2.75 0.00 73.78 158.87 7.88
18 Srikakulam 33.97 77.52 1.92 0.00 0.07 0.53 0.00 16.38 34.63 0.19
19 Visakhapatnam 150.72 141.08 0.00 0.00 0.00 0.79 0.18 0.00 56.06 1.65
20 Vizianagaram 27.37 68.25 1.59 0.00 0.00 0.26 0.00 13.55 15.53 0.00
21 Warangal 132.64 98.76 15.00 0.00 0.00 0.00 0.00 0.00 20.00 0.30
22 West Godavari 46.89 132.51 4.17 0.54 0.03 1.40 0.00 0.00 17.17 1.33
TOTAL: 1905.80 2665.42 385.44 29.19 17.18 16.25 4.17 197.29 667.10 63.50
406
STATEMENT No. 2 (3)
STATEMENT 2(3) OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2008-09
(PAYMENT HEADS)
Rs. In lakhs
Sl.
No.
NAME OF THE
DISTRICT
COST OF
BOOKS &
PDLS
SALARIES PENSIONS
EXPENDITU
RE FROM
CONTINGEN
T
TA &
LTC
MEMBER
-SHIP
DEPOSIT
S
SECURITY
DEPOSITS
REFUNDED
OTHER
DEPOSITS
REFUNDED
OTHER
ADMN.
EXPENDIT
URE
ADVANC
ES
RECOVE
RABLE
COST OF
BUILDINGS
INVEST
MENTS OTHERS
1 Adilabad 6.18 97.46 35.33 0.00 3.40 0.02 0.00 0.00 2.03 0.70 1.52 0.00 40.70
2 Ananthapur 11.80 92.64 54.11 0.00 2.74 0.02 0.00 0.00 23.82 0.00 1.93 9.43 34.07
3 Chittoor 44.03 128.55 61.58 45.07 1.02 0.40 0.00 0.00 20.18 0.69 38.00 0.00 45.25
4 East Godavari 13.23 160.12 133.10 12.50 3.56 0.13 0.21 0.00 49.27 2.65 16.70 0.00 0.25
5 Guntur 16.05 186.96 88.14 20.77 3.61 0.09 0.20 0.20 7.99 0.00 18.36 0.00 1.84
6 Kadapa 24.96 92.08 50.66 3.90 2.19 0.04 0.00 9.52 8.42 0.00 25.92 0.00 0.88
7 Karimnagar 61.80 84.45 31.97 3.89 2.12 0.00 0.00 0.05 0.00 0.28 27.30 0.00 25.77
8 Khammam 44.09 105.34 0.00 0.00 1.20 0.04 0.00 1.75 23.10 4.08 28.35 0.00 16.61
9 Krishna 17.26 175.46 100.92 0.00 3.51 0.09 0.00 2.61 0.00 116.46 32.65 0.00 0.00
10 Kurnool 13.78 89.04 58.67 44.29 0.92 0.00 0.00 0.00 0.00 1.47 0.00 0.00 2.21
11 Mahaboobnagar 8.90 116.05 30.27 4.62 1.42 0.00 0.00 22.00 40.00 23.25 0.00 0.00 0.00
12 Medak 5.36 85.94 22.92 10.12 1.68 0.02 0.00 0.00 17.31 0.00 1.33 7.00 0.00
13 Nalgonda 7.73 117.16 27.75 0.36 0.90 0.07 0.00 0.00 44.61 0.96 0.54 0.00 2.01
14 Nellore 53.91 132.86 52.95 0.00 1.31 0.06 0.00 22.05 15.36 0.92 12.91 0.00 4.47
15 Nizamabad 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
16 Prakasam 24.30 117.67 32.28 1.34 0.86 0.00 0.00 0.05 15.95 33.60 9.31 0.00 31.52
17 Ranga Reddy 135.12 332.72 179.89 2.97 2.29 0.07 0.00 47.22 74.34 7.20 299.80 0.00 195.81
18 Srikakulam 27.19 76.98 27.19 6.84 2.73 0.01 0.00 0.00 15.81 0.40 9.39 0.00 6.67
19 Visakhapatnam 43.31 135.88 84.44 12.49 3.10 0.00 0.00 0.03 5.76 2.70 3.98 0.00 45.30
20 Vizianagaram 10.44 68.56 18.81 10.34 6.26 0.00 0.00 13.15 0.00 0.00 0.00 0.00
21 Warangal 8.70 76.52 27.90 1.52 1.16 0.03 0.00 0.00 35.25 3.81 11.10 0.00 30.64
22 West Godavari 15.33 125.96 75.89 1.26 3.20 0.23 0.00 0.00 1.74 0.94 64.51 0.00 25.27
TOTAL: 593.47 2598.40 1194.77 182.28 49.18 1.33 0.41 118.63 400.94 200.11 603.60 16.43 509.27
407
STATEMENT 3(1) STATEMENT 3(3)1 SHOWING THE DIST AND CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YEAR 2008-09 ( Amount in Lakhs)
Sl.
No.
NAME OF THE
DISTRICT
VARIATION IN
ACCOUNT FIGURES
EXCES UITLISATION
OF GRANTS /FUNDS
DIVERSION OF
GRANTS/FUNDS
NON-UTILISATION
OF GRANTS
BEFORE THE
LAPSEABLE DATE
NON-
COLLECTION
OF DUES
ADVANCES
PENDING
ADJUSTMENT
No. AMOUNT No. AMOUNT No AMOUNT NO AMOUNT No. AMOUNT No. AMOUNT
1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 6.77
2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
4 CGS, Hyderabad 0 0.00 1 115.47 0 0.00 0 0.00 0 0.00 0 0.00
5 East Godavari 0 0.00 1 2.53 0 0.00 0 0.00 1 314.79 1 2.63
6 Guntur 0 0.00 2 61.39 0 0.00 0 0.00 1 32.05 0 0.00
7 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.20
8 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 1 0.27 0 0.00
9 Khammam 0 0.00 1 0.71 0 0.00 0 0.00 0 0.00 0 0.00
10 Krishna 0 0.00 3 91.16 0 0.00 0 0.00 0 0.00 0 0.00
11 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.25
12 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
13 Medak 0 0.00 1 0.41 0 0.00 0 0.00 0 0.00 0 0.00
14 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
15 Nellore 0 0.00 1 1.17 0 0.00 0 0.00 0 0.00 0 0.00
16 Nizamabad 0 0.00 1 10.80 0 0.00 0 0.00 0 0.00 1 1.45
17 Prakasam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
18 Ranga Reddy 0 0.00 1 33.87 0 0.00 0 0.00 0 0.00 0 0.00
19 Srikakulam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 1.26
20 Visakhapatnam 0 0.00 0 0.00 0 0.00 1 7.34 2 0.21 2 0.17
21 Vizianagaram 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.02
22 Warangal 0 0.00 1 1.07 0 0.00 0 0.00 0 0.00 0 0.00
23 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 0.05
TOTAL 0 0.00 13 318.58 0 0.00 1 7.34 5 347.32 12 12.80
408
STATEMENT 3 (2)
STATEMENT 3(3)2 SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2008-09
( Amount in Lakhs)
Sl. No. NAME OF THE
DISTRICT
VIOLATION OF RULES
NON REMITTENCE
OF DEDUCTIONS/
RECOVERIES
NON PRODUCTION OF
RECORDS
MIS
APPROPRIATION EXCESS PAYMENTS
WASTE FUL
EXPENDITURE
No AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT
1 Adilabad 0 0.00 0 0.00 2 1.50 0 0.00 0 0.00 0 0.00
2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 1 0.01 0 0.00
3 Chittoor 4 1.98 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
4 CGS, Hyderabad 6 86.46 3 0.53 3 120.39 1 0.02 0 0.00 0 0.00
5 East Godavari 2 0.13 0 0.00 7 21.38 0 0.00 2 0.01 0 0.00
6 Guntur 0 0.00 0 0.00 5 12.25 0 0.00 2 0.02 0 0.00
7 Kadapa 0 0.00 0 0.00 3 20.00 0 0.00 1 0.88 0 0.00
8 Karimnagar 0 0.00 1 0.00 0 0.00 0 0.00 1 0.00 0 0.00
9 Khammam 11 16.27 1 0.00 9 0.83 0 0.00 0 0.00 0 0.00
10 Krishna 8 0.58 0 0.00 2 33.65 0 0.00 2 0.08 0 0.00
11 Kurnool 0 0.00 0 0.00 4 0.05 0 0.00 0 0.00 0 0.00
12 Mahaboobnagar 1 8.59 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
13 Medak 0 0.00 0 0.00 0 0.00 0 0.00 1 0.15 0 0.00
14 Nalgonda 2 0.92 0 0.00 2 13.54 0 0.00 0 0.00 0 0.00
15 Nellore 6 0.01 0 0.00 10 9.36 0 0.00 14 3.22 0 0.00
16 Nizamabad 0 0.00 0 0.00 4 4.22 0 0.00 1 0.12 0 0.00
17 Prakasam 7 0.08 0 0.00 0 0.00 0 0.00 2 0.26 0 0.00
18 Ranga Reddy 10 4.01 1 0.01 0 0.00 0 0.00 0 0.00 0 0.00
19 Srikakulam 12 0.70 2 2.10 4 70.00 0 0.00 0 0.00 0 0.00
20 Visakhapatnam 2 0.00 0 0.00 1 52.34 0 0.00 1 0.01 0 0.00
21 Vizianagaram 4 0.97 0 0.00 1 0.32 0 0.00 3 0.50 0 0.00
22 Warangal 1 14.50 0 0.00 1 14.50 0 0.00 3 0.07 0 0.00
23 West Godavari 0 0.00 0 0.00 7 72.60 0 0.00 4 0.18 0 0.00
Total 76 135.20 8 2.64 65 446.93 1 0.02 38 5.50 0 0.00
409
STATEMENT 3 (3)
STATEMENT 3(3)3 SHOWING THE CATEGORY WISE AUDIT OBJECTIOSN IN ZILLA GRANDHALAYA SAMSTHS FOR THE YER 2008-09
( Amount in Lakhs)
Sl.
No.
NAME OF THE
DISTRICT
INSTANCES OF CASES
UNACCOUNTED FOR
CASH/STORES
PENDENCY OF
UTILISATION
CERTIFICATES
SURCHARGE
CERTIFICATE
RECOVERY PENDING
OTHERS TOTAL
NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT
1 Adilabad 0 0.00 1 1.23 0 0.00 5 36.33 9 45.83
2 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 1 0.01
3 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 4 1.98
4 CGS, Hyderabad 0 0.00 0 0.00 0 0.00 0 0.00 14 322.87
5 East Godavari 0 0.00 0 0.00 0 0.00 0 0.00 14 341.47
6 Guntur 0 0.00 0 0.00 0 0.00 3 0.14 13 105.85
7 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 5 21.08
8 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 3 0.27
9 Khammam 0 0.00 0 0.00 0 0.00 0 0.00 22 17.81
10 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 15 125.47
11 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 5 0.30
12 Mahaboobnagar 0 0.00 0 0.00 0 0.00 7 0.16 8 8.75
13 Medak 0 0.00 2 4.00 0 0.00 3 0.00 7 4.56
14 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.00 4 14.46
15 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 31 13.76
16 Nizamabad 0 0.00 1 147.15 0 0.00 0 0.00 8 163.74
17 Prakasam 0 0.00 1 33.00 0 0.00 0 0.00 10 33.34
18 Ranga Reddy 0 0.00 0 0.00 0 0.00 0 0.00 12 37.89
19 Srikakulam 0 0.00 1 22.13 0 0.00 0 0.00 21 96.19
20 Visakhapatnam 0 0.00 0 0.00 0 0.00 1 1.66 10 61.73
21 Vizianagaram 0 0.00 1 83.20 0 0.00 0 0.00 10 85.01
22 Warangal 0 0.00 0 0.00 0 0.00 1 26.30 7 56.44
23 West Godavari 0 0.00 0 0.00 0 0.00 3 0.23 16 73.06
Total 0 0.00 7 290.71 0 0.00 23 64.82 249 1631.86
410
STATEMENT No. 4
STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED
(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2008-09
Sl. No. NAME OF THE CATEGORY
No of
objections
% Amount %
1
Excess Utilization of Grants /
Funds 13 5 318.58 20
2
Non-utilization of Grants before
the lapsable date 1 0 7.34 0
3 Non-collection of dues 5 2 347.32 21
4 Advances Pending Adjustment 12 5 12.83 1
5 Violation of Rules 76 31 135.2 8
6 Non remittance of deductions 8 3 2.64 0
7 Non Production of Records 65 26 446.93 27
8
Mis-appropriation of
Funds/Grants 1 0 0.02 0
9 Excess Payments 38 15 5.5 0
10
Pendency of Utilization
Certificates 7 3 290.71 18
11 Others 23 9 64.8 4
Total: 249 100 1631.9 100