GOVERNMENT OF ANDHRA PRADESH STATE AUDIT DEPARTMENT CONSOLIDATED … CARR for the... ·...

GOVERNMENT OF ANDHRA PRADESH STATE AUDIT DEPARTMENT

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF

PANCHAYAT RAJ INSTITUTIONS, MUNICIPALITIES,

AGRICULTURAL MARKET COMMITTEES AND ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2009-10

DIRECTOR OF STATE AUDIT A.P., HYDERABAD.

GOVERNMENT OF ANDHRA PRADESH

STATE AUDIT DEPARTMENT


PANCHAYAT RAJ INSTITUTIONS, MUNICIPALITIES,

AGRICULTURAL MARKET COMMITTEES AND ZILLA GRANDHALAYA SAMSTHAS



The CONSOLIDATED AUDIT AND REVIEW REPORT for the year 2009-10 complied in five parts. Part – I PANCHAYAT RAJ INSTITUTIONS Part – I I: MUNICIPAL CORPORATIONS. Part – III: MUNICIPAL COUNCILS. Part -IV: AGRICULTURAL MARKET COMMITTEES AND Part – V: ZILLA GRANDHALAYA SAMSTHAS. All parts are designed independently and comprehensively.

Part-I deals with the Panchayat Raj Institutions and contains a few selected audit

objections under each categeory and connected account statements.

Part-II deals with the Municipal Corporations and contains a few selected audit


Part-III deals with the Municipal Councils and contains a few selected audit


Part-IV deals with the Agricultural Market Committees and contains a few selected

audit objections under each categeory and connected account statements.

Part-V deals with the Zilla Grandhalaya Samsthas and contains a few selected audit


FOREWORD

The State Audit Act, 1989 passed by the Legislature of Andhra Pradesh has empowered the Director of State Audit to conduct the audit of accounts of Panchayat Raj Institutions (PRIs), which he was doing earlier also as per Government orders.

The Director, State Audit conducts post audit of all Local Bodies in the subsequent financial year. The Director, State Audit (DSA) conducts the audit of these Panchayat Raj Institutions through the District Audit Offices headed by the District Audit Officer (DAO). The District Audit Officer is the District Administrative Head of the Department. The Office of the AAO is known as Unit Office.

There are six Regional Offices in the State in each of the six zones headed by Regional Deputy Director (RDD).

The Audit Reports of notified Gram Panchayats and Mandal Parisads are approved by the DAO. The Audit Reports of non-notified Gram Panchayats are approved by the Assistant Audit Officer. The Audit Reports of Zilla Parishads are approved by the Regional Deputy Director, State Audit of the Zone concerned.

Institution wise audit reports containing various audit objections are issued to the Executive Authorities of the concerned Local bodies for follow up action i.e., rectification of defects pointed out in the audit reports and to submit a approved replies to the Audit Report after approval by the General Body of the authority concerned.

Under the State Audit Act, the Director is vested with the power of disallowing any item of the expenditure incurred contrary to the law and surcharge the same on the person incurring or authorizing the incurring of such expenditure.

Under Section 11 of State Audit Act, 1989, the Director, State Audit is required to submit annually a Consolidated Audit and Review Report on the accounts of the Local Bodies to the Government for laying of such report on the table of the Legislative Assembly/ Legislative Council.

The Annual Consolidated Audit and Review Report (Annual CARR) of PRIs namely Zilla Parishads, Mandal Parishads, Gram Panchayats and also that of Municipal Corporations, Municipalities, Agricultural Market Committees and Zilla Grandhalaya Samasthas whose accounts for the year 2009-10 were audited during the year 2010-11 and upto 31-12-2012 in respect of Urban Local Bodies and submitted.

PREFACE

During the year unde3r the report the Director could audit some of the arrears also apart from current as shown below.

Sl. No. Name of the Institution Current Audit

Arrear Audit Total

1 Zilla Parishads 21 0 21

2 Mandal Parishads 1095 9 1104

3 Gram Panchayats 21439 423 21862

4 Municipal Corporations 7 0 7

5 Municipal Councils 94 0 94

6 Agricultural Market committees

316 1 317

7 Zilla Grandhalaya Samstas

23 0 23

Total 22995 433 23428

AUDITED AMOUNTS: The total Receipts and Payments of all the above institutions in the State for the year 2009-10 were Rs. 6517.39 Crores and Rs. 6255.43 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 for initiating 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-utilization of Earmarked Funds 7. Non-collection of dues 8. Advances Pending Adjustment 9. Violation of Rules 10. Non-remittance of Deductions / Recoveries from vouchers / Pay Bills /

Contingent Bills 11. Non Production of records 12. Mis-appropriations 13. Excess payments 14. Wasteful Expenditure 15. Instances of cases of unaccounted cash / stores 16. Pendency of Utilisation Certificates

OVER VIEW

17. Surcharge Certificates Recovery Pending. 18. Others 19. DDs/Cheques received, but not realised within time.

A total number of 346205 audit objections involving an amount of Rs.1138.96

Crores were raised during the year. The category wise and institution wise number of audit objections raised during the year are shown in appended to the report. On receipt of replies to the defects pointed out in the earlier reports supported by relevant records / documents, the audit objections were settled wherever the replies were satisfactory. The DAOs and RDDs are authorized to attend the settlement of audit objections. The Audit Reports contain the details of number of audit objections pending settlement at the close of the audit. The audit paras selected for inclusion in the Annual CARR give a glimpse of financial administration in the PRIs. For institution wise details, respective audit reports are to be referred.

CONTENT

SL.NO PARTICULARS PAGE NO.

I Part - I Panchayat Raj Institutions 1-160

II Part-II Municipal Corporations 161-249

III Part-III Municipal Councils 250-328

IV Part-IV Agricultural Market Committees 329-361

V Part-V Zilla Grandhalaya Samasthas 362-398

PART - I



CONSOLIDATED AUDIT AND REVIEW REPORT ON THE

ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS,



SECTION - I

Sl. No. DESCRIPTION PAGE

No.

1 Introduction 1-13

2 A few Selected Audit Objections – Category wise 14-115

SECTION - II

STATEMENT No.

DESCRIPTION OF STATEMENT FOR THE YEAR 2009-10 OF

PANCHAYAT RAJ INSTITUTIONS PAGE

No.

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

116

1(1) Status of Audit of ZPs (District wise) 117

1(2) Status of Audit of MPs (District wise) 118

1(3) Status of Audit of GPs (District wise) 119

2 Consolidated Statement of Receipts & Payments of Zilla Parishads for the year 2009-10 120

2(1) Consolidated Fund Wise Statement of Receipts of Zilla Parishads for the year 2009-10. 121

2(2) Consolidated Fund Wise Statement of Payments of Zilla Parishads for the year 2009-10. 122

3 Consolidated Statement of Receipts & Payments of Mandal Parishads for the year 2009-10 123

3(1) Consolidated Fund Wise Statement of Receipts of Mandal Parishads for the year 2009-10. 124

3(2) .Consolidated Fund Wise Statement of Receipts & Payments of Mandal Parishads for the year 2009-10. 125

4 Consolidated Statement of Receipts and Payments of Gram Panchayats for the year 2009-10. 126

CONTENTS

4(1) Statement of Consolidated Receipts of Gram Panchayats for the year 2009-10. 127

4(2) Statement of Consolidated Payments of Gram Panchayats for the year 2009-10. 128

5 Consolidated Statement of Grants Receipts and Payments of Zilla Parishads for the year 2009--10 129

5(1) Consolidated Statement of Grants Receipts of Zilla Parishads for the year 2009-10 130

5(2) Consolidated Statement of Grants payments of Zilla Parishads for the year 2009-10 131

6 Consolidated Statement of Grants Receipts and payments to Mandal Parishads for the year 2009-10 132

6(1) Consolidated Statement of Grants Receipts of Mandal Parishads for the year 2009-10 133

6(2) Consolidated Statement of Grants Payments Mandal Parishads for the year 2009-10. 134

7 Consolidated Statement of Grants Receipts and payments to Gram Panchayats for the year 2009-10 135

7(1) Consolidated Statement of Grants Receipts of Gram Panchayats for the year 2009-10 136

7(2) Consolidated Statement of Grants Payments Gram Panchayats for the year 2009-10. 137

8 Consolidated audit objections raised in PRIs., for the year 2009-10 (Institution wise) 138

9 Consolidated audit objections raised in PRIs., for the year 2009-10 Category wise 139

9(Dist) Statement showing Number of audit objections raised in PRIs., (District wise ) and amount involved for the year 2009-10

140

9 (CAT) Statement showing number of audit objections raised in PRIs., (Category wise) and amount involved for the year 2009-10

141

9(1) Variation in Account figures. 142

9(2) Excess utilization of Grants / Funds. 143

9(3) Diversion of Grants / Funds. 144

9(4) Non-utilization of Grants before the lapsable date. 145

9(5) Mis-utilisation of Grants / Funds. 146

9(6) Non-Utilization of Earmarked funds 147

9(7) Non-collection of dues. 148

9(8) Advances Pending Adjustment. 149

9(9) Violation of Rules. 150

9(10) Non-remittance of deductions / recoveries from work bills / pay bills / contingent bills etc., and amount involved in respect of PRIs.

151

9(11) Non-production of records. 152

9(12) Misappropriations. 153

9(13) Excess Payments. 154

9(14) Wasteful Expenditure. 155

9(15) Instances of cases of unaccounted cash / stores. 156

9(16) Pendency of Utilisation Certificates. 157

9(17) Surcharge Certificates Recovery pending. 158

9(18) Others. 159

9(19) DDs / Cheques received but not realised within time. 160

SECTION - I

1

ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS FOR THE YEAR 2009-10

PART-A

INTRODUCTION

1.1 Under the A.P. State Audit Act, 1989 the Director is made in charge of the audit of the funds of Panchayat Raj Institutions as specified in the Schedule prescribed in the said Act. 1.2 The Department has got its offices in all the districts of Andhra Pradesh where in the District Audit Officer; State Audit is the head at the district level. 1.3. The Department conducts post audit of the Panchayat Raj Institutions and Audit Reports consisting of defects noticed in audit are issued to the Chief Executive Officer of the institutions concerned who has to take action for rectifying the defects pointed out in the Audit Report. 1.4. Under the State Audit Act, 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 2.1. The State Audit Department being one of the limbs of the Government has been statutorily entrusted with the authority to verify the following aspects during the course of post audit of the Panchayat Raj Institutions, viz., Zilla Parishads, Mandal Parishads and Gram Panchayats. a) Whether the taxes, fees etc., collected by the Panchayat Raj Institutions were properly accounted for with full details in the books of accounts of the body concerned. b) Whether adequate care is taken to periodically check up the funds with Treasury or Bank. c) Whether expenditure incurred was provided for in the Budget of the Panchayat Raj Institutions concerned and duly sanctioned by the competent authority under the Act / Rules or any executive instructions issued by the Government. d) Whether funds were utilized only for the permitted purposes prescribed under the Act / Rules. 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 bodies.

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f) Whether vouchers for the expenditure incurred were maintained. g) Whether grants received from different sources were properly accounted for and utilised for the purposes for which they were meant. h) The Department also conducts propriety audit of the expenditure incurred. 2.2. During the year under report, the Department has also conducted audit of the accounts of the scheme “BRGF”. The receipts & expenditure under BRGF Scheme are included in the Gram Panchayat Audit Reports.

STATUS OF AUDIT 3. The audit of the following Panchayat Raj Institutions for up to the year 2009-10 were conducted during the year 2010-11. Panchayat Raj Institutions No. of Years audited i) Zilla Parishads : 21 ii) Mandal Parishads : 1104 iii) Gram Panchayats : 21862 -------------------- 22987 -------------------- 4.1. The audit Pendency position of Panchayat Raj Institutions for the year 2009-10 is furnished in the appended Statements as detailed below:

Institution wise Statement – 1

Zilla Parishads Statement – 1(1) Mandal Parishads Statement – 1(2) Gram Panchayats Statement – 1(3)

RECEIPTS AND PAYMENTS (2009-10)

4.2. The Receipts and Payments are inclusive of the various grants received from Central and State Governments during the year 2009-10 by the Panchayat Raj Institutions. The details of gross Receipts including grants and Payments are shown in the Statements No. 2 to 4 with reference to Zilla Parishads, Mandal Parishads and Gram Panchayats respectively. The various Grants received by Panchayat Raj Institutions are exclusively detailed in Statement Nos. from 5 to 7. The aggregate Receipts & Payments of Panchayat Raj Institutions in the State during the year are Rs.3151.88 Crores and Rs.3268.27 Crores respectively. These figures are present in pie diagram (Chart – 1 and 2). 4.3 The total Receipts and payments of the 3 Panchayat Raj Institutions during the year 2009-10 are as follows and these figures are present in pie diagram (Chart – 1 and 2).

3

S.No. Name of the PRI Receipt in lakhs % Payments in lakhs

%

1 Zilla Parishads 150301.90 48 159664.28 49

2 Mandal Parishads 81618.35 26 74182.28 21

3 Gram Panchayats 83267.84 26 92980.36 28 4 Total 315188.09 100 326826.92

100

CHART I PANCHAYAT RAJ INSTITUTIONS RECEIPTS FOR THE YEAR 2009-10

CHART- 2 PANCHAYAT RAJ INSTITUTIONS PAYMENTS FOR THE YEAR 2009-10

4

CHART-3 SHOWING THE TREND OF RECEIPTS IN PANCHAYAT RAJ INSTITUTIONS DURING THE YEAR S 2008-09 &2009-10

4.4.The main reason for decline-in the receipts during the year 2009-10 in the Gram Panchayats is due to non-receipt of Salary grant as the salaries of the Gram Panchayats has been drawn under 010 i.e., through treasuries w.e.f. 1-4-2009.

CHART-4 SHOWING THE TREND OF PAYMENTS IN PANCHAYAT RAJ INSTITUTIONS DURING THE YEAR S 2008-09 &2009-10

4.5. The main reason for decline-in the payments during the year 2009-10 in the Gram Panchayats is due to non-receipt of Salary grant as the salaries of the PRIs., has been drawn under 010 i.e., through treasuries w.e.f. 1-4-2009.

5

ZILLA PARISHADS (FUNDS) 4.6. The Receipts and Payments particulars of various accounts under Zilla Parishad funds are appended in the Statements No.2 enclosed.

Name of the Statement of Zilla Parishad No. of the Statement Receipts and Payments of Funds (District wise) Statement -2 Receipts of Funds (District wise & Head wise) Statement -2 (1) Payments of Funds (District wise & Head wise) Statement -2 (2)

4.7. The Fund Wise Receipts & Payments of Zilla Parishads in the State for the year 2009-10 are exhibited in the bar chart.

CHART-5 SHOWING THE TREND OF RECEIPTS AND PAYMENTS IN ZILLA PARISHADS DURING THE YEAR2009-10

Name of the Fund Receipts in Lakhs

% of receipts

Payments in Lakhs

% of payments

General Fund 61724.19 41.07 60928.81 38.16 Education Fund 14495.91 9.64 14328.4 8.97 Social Welfare Fund 641.92 0.43 427.15 0.27 Minor Irrigation 300.00 0.20 107.78 0.07 R&B 12337.93 8.21 20370.84 12.76 RWS/ARW 21492.05 14.30 22761.22 14.26 SGRY 167.88 0.11 187.13 0.12 Other programes 22793.40 15.17 21310.19 13.35 Deposits 8026.59 5.34 8392.62 5.26 Advances 826.77 0.55 641.59 0.40 Loans 160.13 0.11 103.72 0.06 BRGF 5356.83 3.56 4807.81 3.01 Pension fund 1978.30 1.32 5297.02 3.32 Total 150301.90 100.00 159664.28 100.00

6

MANDAL PARISHADS (FUNDS) 4.8. The Receipts and Payments particulars of various accounts under Mandal Parishad funds are appended in the Statements No.2 enclosed.

Name of the Statement of Zilla Parishad No. of the Statement Receipts and Payments of Funds (District wise) Statement -3 Receipts of Funds (District wise & Head wise) Statement -3(1) Payments of Funds (District wise & Head wise) Statement -3 (2)

4.9. The Fund Wise Receipts & Payments of Mandal Parishads in the State for the year 2009-10 are exhibited in the bar chart.

CHART-6 SHOWING THE TREND OF RECEIPTS AND PAYMENTS IN MANDAL PARISHADS DURING THE YEAR2009-10

Nmae of the Fund

Receipts in Lakhs

% of receipts

Payments in Lakhs

% of payments

General Fund 20872.68 25.57 18681.43 25.18 Education Fund 6395.51 7.84 4891.47 6.59 Social Welfare Fund

7999.10 9.80

7984.43 10.76

Minor Irrigation 58.52 0.07 126.65 0.17 R&B 603.32 0.74 1031.51 1.39 RWS/ARW 234.70 0.29 307.36 0.41 Others 22662.40 27.77 19669.86 26.52 SGRY 568.56 0.70 604.80 0.82 Deposits 943.42 1.16 725.56 0.98 Advances 866.88 1.06 1025.26 1.38 Loans 12.76 0.02 6.85 0.01 BRGF 8548.42 10.47 7137.08 9.62 Pension fund 11852.10 14.52 11990.02 16.16 Total 81618.35 100.00 74182.28 100.00

7

GRAM PANCHAYATS (FUNDS) 4.10. The Receipts and Payments particulars of various accounts under Gram Panchayats funds are appended in the Statements No.2 enclosed.

Name of the Statement of Gram Panchayat No. of the Statement Receipts and Payments of Funds (District wise) Statement -4 Receipts of Funds (District wise & Head wise) Statement -4(1) Payments of Funds (District wise & Head wise) Statement -4 (2)

4.11. The Fund Wise Receipts & Payments of Gram panchayats in the State for the year 2009-10 are exhibited in Pie diagrams

CHART-7&8 SHOWING THE TREND OF RECEIPTS AND PAYMENTS IN GRAM PANCHAYATS DURING THE YEAR2009-10

8

Head of account Receipts in Lakhs

% of Receipts

Head of account

Payments in Lakhs

% of Payments

Tax Sources 14109.22 16.94 Salaries 6711.21 7.22 Non-taxsources

13267.46 15.93 Other Admn. Expenses 12858.40 13.83

Other receipts 14688.09 17.64

Maintenance Expenses 18870.58 20.30

Government grants 24240.08 29.11

Works 34918.58 37.55

Advances 883.91 1.06 Advances 1464.67 1.58 Deposits 1162.41 1.40 Deposits 5527.65 5.94 BRGF 14247.37 17.11 BRGF 11966.87 12.87 Salary Grant 669.32 0.80 Others 662.91 0.71 Total 83267.84 100.00 92980.86 100.00

GRANTS POSITION 5.1 Panchayat Raj Institutions are provided grants by the State / Central Governments to implement the schemes entrusted to them and also for over all development of the area under their jurisdiction. The Panchayat Raj Institutions have received the grants as detailed below during the year 2009-10. 5.2 The grants Received and payments made under grants by Panchayat Raj Institutions have been enumerated below. Rs. In Lakhs.

Grant head ZP MP GP Total

Receipts 82204.03 84788.98 41494.62 208487.63

Payments 82489.45 82148.85 40357.49 204995.79 5.3 The details of the grants received and payment made by the Panchayat Raj Institutions are incorporated in the given statements.

Name of the PRI Total grant received and Payments made

Head wise and Dist wise Grants received

Head wise and Dist wise Grants payments

Zilla Parishads Statement -5 Statement -5 (1) Statement -5 (2) Mandal Parishads Statement -6 Statement -6(1) Statement -6 (2) Gram panchayats Statement -7 Statement -7(1) Statement -7 (2)

5.4 The Grant Wise Receipts & Payments of Zilla Parishads for the year 2009-10 are exhibited in the bar charts. (Chart – 9)

9

Chart-9 Bar Diagram showing the Grant wise Receipts and Payment position in Zilla Parshads during the year 2009-10

Rs. In lakhs

Grant head Receipts % of receipts Payments % of payments

Teaching grant 2635.77 3.21 2819.23 3.42 Non-teaching grant 10581.33 12.87 10126.77 12.28 Pension grant 1989.80 2.42 1595.84 1.93 SGRY 2667.71 3.25 1801.08 2.18 State Finance 2106.68 2.56 1857.03 2.25 Honorarium 74.52 0.09 77.65 0.09 TA&DA ono-officials 1039.08 1.26 987.82 1.20 TA&DA Staff 20.10 0.02 47.24 0.06 NABARD 5158.32 6.28 2840.86 3.44 Office contingencies 163.30 0.20 320.53 0.39 BRGF 4870.02 5.92 5184.96 6.29 Other Grants 50897.40 61.92 54830.44 66.47 Total 82204.03 100.00 82489.45 100.00

10

5.5. The Grant Wise Receipts & Payments of Mandal Parishads for the year 2009-10 are exhibited in the bar charts. (Chart – 10)

Chart-10 Bar Diagram showing the Grant wise Receipts and Payment position in Mandal Parshads during the year 2009-10

Rs. In lakhs

Grant head Receipts % of receipts Payments

% of payments

Teaching grant 14974.38 17.66 13578.60 16.53

non-teaching grant 4034.97 4.76 3356.71 4.09

pension grant 8814.67 10.40 8629.08 10.50

SGRY 380.34 0.45 329.76 0.40

State Finance 27840.16 32.83 28190.80 34.32

Honorarium 340.99 0.40 360.43 0.44

TA&DA non-officials 4678.07 5.52 4649.56 5.66

TA&DA Staff 139.91 0.17 281.74 0.34

NABARD 3291.68 3.88 3647.71 4.44

Office contingencies 400.38 0.47 411.63 0.50

BRGF 8548.42 10.08 7115.75 8.66

Other Grants 11345.01 13.38 11597.09 14.12

Total 84788.98 100.00 82148.85 100.00

11

5.6. The Grant Wise Receipts & Payments of Gram Panchayats in the State for the year 2009-10 are exhibited in the bar charts. (Chart – 11)

Chart-11 Bar Diagram showing the Grant wise Receipts and Payment position in Gram panchayats during the year 2009-10

Grant head Receipts % of

receipts Payments % of payments

Salary Grant 2110.91 5.09 5048.88 12.51

JRY/SGRY 513.51 1.24 444.41 1.1

XI Finance Grant 17197.51 41.45 15071.19 37.34

State Finance 3404.35 8.2 3258.44 8.07

BRGF 14247.37 34.34 11966.87 29.65

Other Grant 4020.97 9.69 4567.7 11.32

Total 41494.62 100 40357.49 100

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AUDIT OBJECTIONS 6.1 During the course of audit of these Panchayat Raj Institutions for the year 2009-10, the defects noticed were already pointed out in the relevant Audit Reports, as “Audit Objections” which were forwarded to the Chief Executive Authorities concerned for further action at their end as per the procedure laid down under the A.P. State Audit Act. 6.2 A total number of 3,28,247audit objections involving an amount of Rs. 41,556.19 lakhs were raised in the audit of the Panchayat Raj Institutions during the year under report. 6.3 A Consolidated Statement showing the number of objections raised, amount involved thereon with institution-wise break-up is annexed vide Statement No. 9. 6.4 CATEGORISATION OF AUDIT OBJECTIONS: The Audit Objections are classified into 19 Categories as detailed below and shown in the appended Statement No. – 9.

All objections Panchayat Raj Institutions wise Statement – 9 Variation in Account Figures Statement – 9 (1) Excess Utilization of Grants Statement – 9 (2) Diversion of Grants / Funds Statement – 9 (3) Non-Utilization of Grants before lapsable date Statement – 9 (4) Mis-Utilization of Grants / Funds Statement – 9 (5) Non-Utilization of Earmarked Funds Statement – 9 (6) Non-collection of dues Statement – 9 (7) Advances pending adjustment Statement – 9 (8) Violation of Rules Statement – 9 (9) Non-remittance of Deductions / Recoveries from vouchers / Pay Bills / Contingent Bills

Statement – 9 (10)

Non-production of Records Statement – 9 (11) Mis-appropriations Statement – 9 (12) Excess payments Statement – 9 (13) Wasteful Expenditure Statement – 9 (14) Instances of cases of unaccounted cash / stores Statement – 9 (15) Pendency of Utilization Certificates Statement – 9 (16) Surcharge Certificates - Recovery pending Statement – 9 (17) Others Statement – 9 (18)

13

STATEMENT SHOWING INCIDENCE OF OBJECTIONS OF PRI INSTITUTIONS (2009-10)

Sl. No. NAME OF THE CATEGORY

No. of paras % Amount %

1 Others 117176 35.70 851.58 2.05

2 Violation of Rules 68649 20.91 5865.21 14.11

3 Non Production of Records 49433 15.06 10458.85 25.17

4

Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 27089 8.25 2779.29 6.69

5 Non-collection of dues 21325 6.50 2812.00 6.77

6 Non-utilisation of grants before the lapsable date 12574 3.83 1170.49 2.82

7 Excess Utilisation of Grants / Funds 7114 2.17 608.33 1.46

8 Pendency of Utilisation Certificates 6676 2.03 9288.79 22.35

9 Advances pending adjsutemnt 6482 1.97 2578.76 6.21

10 Variation in Account Figures 4224 1.29 833.38 2.01

11 Non-utilisation of Earmarked Funds 2131 0.65 1870.16 4.50

12 Excess Payments 1780 0.54 276.71 0.67

13 Diversion of Grants / Funds 1530 0.47 1332.19 3.21

14 Misappropriations 590 0.18 155.46 0.37 15 Mis-utilisation of Grants / Funds 498 0.15 518.85 1.25

16 Instances of cases of unaccounted for cash / stores 291 0.09 29.53 0.07

17 Wasteful Expenditure 271 0.08 72.54 0.17

18 Surcharge Certificates recovery pending 266 0.08 23.63 0.06

19 D.D/Cheques received but not realized with in time 148 0.05 30.45 0.07

Total: 328247 100 41556.19 100

The objections – Number and amount involved – were categorized and their category has been analyzed 35.70% of Number involved and also 2.05% of Amount involved pertains to the Others. The next slot goes to Violation of Rules, which constitutes 20.91%. These two together state that records are not properly kept by Panchayat Raj Institutions.

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AUDIT – PARAS

Gist of some of the selected audit objections in respect of PRIs., raised during the year 2009-10 under report is enumerated below:

1. VARIATION IN ACCOUNT FIGURES It was observed in audit that there are certain variations between the Account Figures of treasury and Cash Book like Opening Balance in the Cash Book of the current year not tallying with the Closing Balance of the Cash Book of previous year. Balance of the Treasury Pass Book as per Cash Book not tallying with the actual Closing Balance in the Treasury Pass Book as on 31st March. Non -crediting of Receipts in to the Treasury Pass Book by the Treasury Authorities. Receipts credited in the Cash Book by remittance through 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., needs reconciliation of closing balances of cash books with that of the Treasury pass books of the respective institutions. A Consolidated Statement – 9 (1) of Variation in account figures is appended to the Report from which it could be seen that Non-reconciliation of Rs. 833.38 Lakhs was pointed out in 4224 audit paras. 1.1.1. ZP KAREEMNAGAR - VARIATION IN ACCOUNTS - NEEDS TO BE RECTIFIED RS. 27,01,657-00 As seen from the consolidated Annual Accounts for the year 2009-10 of the ZP Kareemnagar, it is noticed that there is a difference in balances of cash book and pass book of the following accounts.

Sl. No.

Name of the fund

CB as per Cash Book as on

31.3.2010 Rs.

Un cashed

Rs.

CB as per Pass Book

Rs.

Difference Rs.

1 General Fund 238297150 555905 238847055 6000 2 SGRY 11483319 - 8811781 2671538 3 G.P.F account 813631868 - 813607749 24119 1063412337 555905 1061266585 2701657

Hence immediate action would need to be taken to rectify the above differences under intimation to audit.

(Para No. 3 of the General funds of ZP Kareemnagar for the year 2009-10)

15

1.1.2.ZP ELURU, WEST GODAVARI DISTRICT -.- DISCREPANCY BETWEEN THE M.D.R REGISTER AND ANNUAL ACCOUNT - NEEDS TO BE RECONCILED As verified from the annual account for the year 2009-10, it was noticed that the receipts under the head Fruit bearing trees were shown as Rs.5,04,447/- whereas in the M.D.R., the same was shown as Rs.3,36,708/-. Thus there is a difference of Rs.1,67,739/-. The variation may be reconciled early.

(Para No. 8 of ZP Eluru, West Godavari District for the year 2009-10)

1.1.3.ZP ANANTAPUR – SECONDARY EDUCATION FUND- VARIATION BETWEEN CASH BOOK AND TREASURY PASS BOOK NEEDS RECOCILIATION

Though a statement of reconciliation has been drawn between the figures in the cash book and treasury pass book every year, a huge variation has been noticed right from 2004-05 onwards as detailed below.

Closing Balance as per Cash Book Rs. 3,89,64,633.00 Closing Balance as per Treasury Pass Book Rs. 1,74,14,417.00 Difference Rs. 2,15,50,216.00 The above details show that the Zilla Parishad authorities have not evinced any interest in getting the variation reconciled. As a result the irregular or excess payment made, or any other fund to which the treasury authorities have been debiting could not be found. Para No. I of ZP Anantapur Secondary Education Fund for the year 2009-10 1.2.1 MPPs., FOR THE YEAR 2009-10 - DIFFERENCE BETWEEN THE CASH BOOK BALANCES AND TREASURY PASS BOOK NEEDS RECONCILLIATION . Rs. 295668 During the course of audit of the Mandal Praja Parishads mentioned in the table below for the year 2009-10, it was noticed that there is a discrepancy of Rs. 2,95,668/- between Cash Book and Pass Book as on 31-03-2010. The Closing Balance in the General Fund Cash Book as on 31.3.2010 is not agreement with the consolidated Closing Balance in the Annual Account on 31st March 2010 and with balance in the Treasury Pass Book even after adding the un-cashed cheques. The variation of Closing Balances between Cash Book and Pass Book would need to be reconciled.

S.No Name of the MPP/District

CB as per Treasury Pass Book

un-cashed cheques

CB as per Cash Book with s

Discrepancy Para No.

1 Narayanavanam, Chittoor

373105 - 285192 87913 1

2 Puttur, Chittoor 693988 533614 96465 63909 1 3 Uppalguptam,

East Godavari 1125900 - 1114908 10992 2

4 Pendlimarri, Kadapa

523245 390391 132854 1

2716238 533614 1886956 295668

16

1.2.2. MPP BOLLAPALLI OF GUNTUR DISTRICT - DISCREPANCY BETWEEN CASH BOOK AND S.T PASS BOOK NEEDS RECTIFICATION Rs. 63,936/- In continuation of the objection raised in para no. 6 (C) of the Audit Report for the year 2008-09, the discrepancy between Cash Book and S.T Pass Book for an amount of Rs 63,936/- was not got rectified till the close of audit. A detailed enquiry would need to be conducted by the Executive Authority in this regard and reconcile the figures so as to carry the correct figure in the succeeding year.

(Para No.4 of GF of MPP Bollapalli, Guntur District for the year 2009-10).

1.3.1. SB PATNAM GP VISAKHAPATNAM DISTRICT - VARIATION IN ACCOUNTS – DIFFERENCE OF BALANCE BETWEEN CASH AND TREASURY PASS BOOK - Rs. 7,905 /- The closing balance as per cash book for the year 2009-10 is Rs. 12,241.08 is not in agreement with the balance shown in the Treasury Pass Book as on 31-3-2010 as detailed below. Hence early action would need to be taken to reconcile the balances as per G.O Ms. No: 12 Fin (TFR-II) Dt: 13-1-2004. Closing Balance as per Cash Book Rs. 12,241.08 Closing Balance as per Treasury Pass Book Rs. 4,335.80 Difference Rs. 7,905.28 (Para 2 of S.B.Patnam GP, Visakhapatnam District for 2009-10) 1.3.2 VARIATION IN ACCOUNTS FIGURES – THE CLOSING BALANCE OF THE PREVIOUS YEAR IS NOT TALLYING WITH THE OPENING BALANCE OF THE CURRENT YEAR. As verified from the accounts of the Gram Panchayats for the year 2009-10, it was noticed that the Opening balances of the current year are not agreeing with the Closing balance of the previous years. Two examples of such cases are given in the table.

Sl. No.

Name of the GP., and district

Closing balances as on 31-3-

2009as per AR

Opening balance as on 1-4-2009 as per T.P.B

Discrepancy Para No. of

the AR 1 Rajabillaram,

Rnaga Reddy 276 1,27,677 1,27,401 1

2 Rangaram, Ranga Reddy

15,416 30,433 15,017 1

2. EXCESS UTILZATION OF GRANTS

The State Government releases Grant-in-aid to the Panchayat Raj Institutions 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 Panchayat Raj Institutions were incurring expenditure in excess of the grant received from the Government either in anticipation of the release of further grant or withdrawing the excess amount from the General Funds of the institution without any valid orders

.

17

During the course of Annual Audit on the accounts of Panchayat Raj Institutions for the year 2009-10, it was noticed that in certain Panchayat Raj Institutions, excess utilizations were made than the Grants received which is against the rules. As such it is clear that the excess expenditure than the Grant released might have been met from other funds. A Consolidated Statement – 9(2) of Excess Utilzation of grant is appended to the Report from which it could be seen that Rs.608.33 Lakhs was pointed out in 7114 audit paras. 2.1.1. ZILLA PARISHAD VIJAYANAGARAM - EXPENDITURE INCURRED WITHOUT BUDGET/ MORE THAN THE PROVISION IN REVISED ESTIMATES 2009-10 - IRREGULAR - NEEDS RATIFICATION FROM GOVERNMENT. The Revised Budget Estimates 2009-10 were got approved by Government through G.O.Ms.No.388 PR & RD (Accts-IV) Dept. dt. 25.8.2010. Though it was clearly instructed by the Government, while approving Budget Estimates / Revised Budget Estimates of Zilla Parishad to adhere to the budgetary provisions. The ZP has not followed the said instructions and expenditure was incurred on the following items more than the allocation in RBEs for 2009-10 and also incurred expenditure without any provision made in the BE/RBE.

Sl. No. Item of Expenditure RBE 09-10

Rs.

Actual Expenditure

incurred Rs.

Excess expenditure

incurred Rs.

1. Purchase of Generator 0 657500 657500 2. Purchase of Vehicle 800000 841265 41265 3. TA to staff 200000 326972 126972 4. Printing & Binding 100000 115791 15791 Total 1100000 1941528 841528

(Para No. 2 of General fund of Z.P.of Vizianagaram district for 2009-10)

2.1.2. ZPP KARIMNAGAR - EXCESS UTILZATION GRANT RS. 64,910/- The rules for the purpose for which Zilla Parishad funds shall be utilized are issued Vide G.O.Ms.No.229, PR & RD Dated.17.6.1997 and it was ordered therein that the grants released for specific purpose should not be diverted for other purpose. In Zilla Parishad Karimnagar, a sum of Rs.28,000/- was released towards Travelling Allowance but, as verified from the paid vouchers it was noticed that an amount of 92,910/- was drawn and paid towards the said purpose thus a sum of Rs.64,910/- has been utilized in excess over the grant released for the TA which is contrary to the rules. (Para No.4 of General Fund of ZP Karimnagar District for the year 2009-10) 2.1.3. ZPP KADAPA EXPENDITURE INCURRED IN EXCESS OF THE GRANT RECEIVED - NEEDS REIMBURSEMENT. Rs 2,68,543/- During the year under report the expenditure incurred in excess of the Grants received from the Government as detailed below on the Heads of Accounts. Action would need to be taken to reimburse the excess amount incurred over the Grant received to General Funds under intimation to audit.

18

Sl. No.

Particulars Grant received Rs.

Expenditure Incurred

Rs.

Excess to be reimbursed

Rs. 1 T A to ZP Staff 37000 148730 111730 2 Honorarium to CZP 0 27000 27000 3 Salaries to CZP Driver 0 129813 129813

Total 37000 305543 268543

(Para No.2 of General Fund of ZP of kadapa District for the year 2009-10) 2.2.1. MPP CHINNAGOTTIGALLU OF CHITTOOR DISTRICT- PENSION PAYMENT MADE FROM OUT OF THE UNSPENT BALANCE OF GENERAL FUNDS - NOT REIMBURSED: Rs.81,335/- During the course of audit of MPP Chinnagottigellu of Chittoor District for the year 2009-10, it was noticed that an amount of Rs..81,335.00 was spent from the General Funds towards payment of pension to the retired employees. But the same was not got reimbursed to Mandal Parishad, General Funds from the Zilla Parishad funds. Early action would need to be taken in this matter. (Para No.1 of the Chinnagottigellu MP of Chittoor District for the year 2009-10.) 2.2.2. MPP KALIKIRI OF CHITTOOR DISTRICT FOR THE YEAR 2009-10-PENSION PAYMENT MADE FROM THE UNSPENT BALANCE OF GENERAL FUNDS - NOT REIMBURSED: Rs.1, 16,528/- During the course of audit of GF of MPP Kalikiri of Chittoor District for the year 2009-10, it was noticed that an amount of Rs.1,16,528/- was spent from the General Funds towards pension to the retired employees. But the same was not got reimbursed to Mandal Parishad Funds from the Zilla Parishad funds. Early action would need to be taken in this matter. Due to this the very purpose of the General Revenue is defeated.

(Para No. 1 of the MP Kalikiri of Chottoor District for the year 2009-10.)

2.3.1 GRAMPANCHAYATS – EXPENDITURE INCURRED MORE THAN THE BUDGET ESTIMATES – IRREGULAR. During the course of audit of Gram Panchayat for the year 2009-10, it was noticed that the expenditure incurred more than the budget provisions as detailed in the table.

Sl. No.

Name of the GP/Distrxs

``ict

Details of the heads

Budget allotment Rs.

Actual expenditure

incurred Rs.

Excess expenditure

incurred Rs.

Para No. of the AR

1 Pedmangalaram, Ranga Reddy

Electrical material purchase

10326 290386 280060 1

2 Ganapavaram West Godavari Purchase of

PHC material 175000 279773 104773 14

3 Ingurthyn, Warangal

Payment of salaries

303877 463453 159576 1

Total 489203 1033612 544409

19

3. DIVERSION OF GRANTS The Panchayat Raj Institutions 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 PRIs., 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 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.

A Consolidated Statement – 9 (3) of Diversion of Funds and Grants is appended to the Report from which it could be seen that an amount of Rs. 1332.19 lakhs was pointed out in 1530 audit paras. 3.1.1. Z.P. KAKINADA FOR THE YEAR 2009-10- TFC GRANT DIVERTED TO HOUSING CORPORATION HYDERABAD - NEEDS REIMBUSEMENT Rs.2,00,00,000/- During the course of audit of General fund of Zilla Parishad, Kakinada for the year 2009-10, it was noticed that, in Vr.No.651/9.09 an amount of Rs.2,00,00,000/- was drawn from ZP TFC grant and paid to Managing Director, A.P. State Housing Corporation limited, Hyderabad for sanitation purpose towards IInd Installment vide progs.Rc.No.A8/553/09 Dt.11.9.2009 of Chief Executive Officer, Zilla Parishad, Kakinada. But the connected file and payees acknowledgements were not produced to audit for verification. The TFC grants were intended for construction of drains and community latrines and for their improvement in the particular ZP area only, and it could not be diverted to any purpose other than the intended. Therefore early action would need to be taken to get the amount of Rs.2,00,00,000/- reimbursed to the TFC Grant.

(Para No.5 of General fund of Z.P.of Kakinada district for the year 2009-10) 3.1.2. ZPP ELURU - DIVERSION OF T.F.C FUNDS FOR NIRMAL GRAMA PURASKAR Rs. 5,98,00,000/- During verification of utilization of T.F.C Grants of Zilla Parishad, Eluru, West Godavari district for the year 2009-10, it was observed that the following amounts were diverted, and utilized for construction of individual sanitary latrines for the houses sanctioned under Nirmal Grama Puraskar. As per TFC guidelines these grants for PRIs should be used to improve the service delivery by the Panchayats in respect of water supply and sanitation. Panchayats need to be encouraged to take over water supply assets created under the Swarajaldhara Programme and maintain them with the help of these grants.

20

Sl.No Voucher No & Date Released to Amount

Released (Rs.) 1 218/ 06/2009 S.E., R.W.S Circle, Eluru 30000000 2 581/ 11/2009 S.E., R.W.S Circle, Eluru 29800000 Total:- 59800000

By violating the above orders construction of individual latrines taken up by diverting TFC of grants hence held under objection. (Para No.65 of General fund of Z.P.of Eluru,East Godavari district for 2009-10) 3.1.3. ZP KURNOOL - DIVERSION OF FUNDS - 15% WOMEN AND CHILD WELFARE FUNDS – SPENT ON VIJAYA DEEPIKA STUDY MATERIAL TO 10th CLASS STUDENTS - AMOUNT PAID - Rs.2,83,608/- IRREGULAR During the course of audit of Zilla Parishad, Kunool for the year 2009-10, it was noticed that an amount of Rs.2,83,608/- was drawn and paid to Master Offset Printers, Kurnool towards supply of 12,000 No. Books @ Rs.46.50 Per Book of Vijay Deepika Study Material for 10th class students in the following vouchers as detailed below under 15% Women and Child Welfare funds.

Sl. No.

Bill No. & Date Paid to whom Purpose Amount

Paid

1 086/ 3.3.2010

Master Offset Printers,Kurnool

To Printers & Supply of Vijaya Duplicate to 10thclass students 12,000 X Rs.46.50 (Nos Books)

5,58,000

Now paid in Vr.No.435 Dt.22.3.2010 2,83,608 Balance to be paid 2,74,392

The amount was incurred from 15% Women & Child Welfare Fund instead of

General Funds. The stock registers relating to the said supplied Books are also not maintained and produced to audit for verification. The material was issued to the Mandal Education Officers as detailed above. The acquaintance of either MEO/ students was also not maintained and produced for audit.

(Para No.5 of General fund of Z.P.of Kurnool district for the year 2009-10)

3.1.4. ZP SRIKAKULAM – DIVERSION OF FUNDS FROM ONE HEAD TO ANOTHER -NEEDS REIMBURSEMENT: Rs.39,73,905/- During the course of audit of Zilla Parishad, Srikakulam district for the year 2009-10, it was noticed that the expenditure was made over and above the releases for the specific purposes. The excess expenditure than the releases are met from the other sources i.e., from out of unspent balances of other grants - in aid which were mixed up in the P.D. Account of Zilla Parishad leading to diversion which is irregular. The excess expenditure incurred over and above the releases is as follows.

21

S.No. Purpose of Grant Amount released

(Rs)

Expenditure incurred

(Rs.)

Excess expenditure incurred than the grant released

(Rs.) 1 T.A to staff 18700 366498 347798 2 Non-Officials

Honorarium 0 35375 35375

3 TA to Non- Officials 0 75971 75971 4 Pensions 0 2213583 2213583 5 SFC Receipts 4077600 5378778 1301178 TOTAL: 4096300 8070205 3973905

(Para No.5 of General fund of Z.P.of Srikakulam district for 2009-10) 3.2.1.MP KUBEER OF ADILABAD DISTRICT-EXPENDITURE FOR HIRE CHARGES OF JEEP MET FROM I.S.L FUNDS NEEDS RECOVERY OF RS.14,250/-. During the course of audit of MP. Kubeer of Adilabad District for the year 2009-10, it was noticed that an amount of Rs.14,250/- was drawn and paid towards the Hire Charges of Jeep from the ISL Fund through voucher No.1/11-2009. As there is no provision from the Government to incur such expenditure from the ISL Fund, the diversion of funds for other than the specified purpose is held under objection.

( Para No.3 of MP Kubeer of Adilabad District for the year 2009-10)

3.2.2. MP DAMMAPETA OF KHAMMAM DISTRICT - CONSTRUCTION OF SCHOOLS TOILETS PAYMENT MADE FROM GENERAL FUNDS - IRREGULAR - NEEDS TO BE REIMBURSED Rs.95,655/- During the course of audit of Dammapeta MPP of Khammam District for the year 2009-10, it is noticed that the Executive Authority of M.P.P.Dammapeta incurred an expenditure of Rs.95,655/- towards construction of school toilets from General Funds though the M.P. is having the school toilet funds of Rs.4,00,469/- in the bank. (Para No.3 of the MP Dammapeta of Khammam District for the year 2009-10) 3. 3.1. GRAM PANCHAYAT PILERU, CHITTOOR DISTRICT- PAYMENT OF PENSION FROM GP FUNDS - NEEDS REIMBURSEMENT FROM ZP PENSION FUNDS. Rs. 26,825/-. During the course of Audit of Pileru GP of Chittoor District for the year 2009-10, it is noticed that an amount of Rs.26,825 /- was drawn and paid to Smt. Pyari John towards family pension from the GP Funds. But the pensionery benefits of all panchayat Raj employees including Gram Panchayats has to be met from the ZP Pension Fund Account. Thus the payment made towards family pension would need to be reimbursed from the ZP Pension Fund Account.

22

Vr No & Dt Amount in Rs. 5/20-4-09 2006 27/5-5-09 2217 83/11-6-09 2217 103/4-7-09 2217 131/14-8-09 2217 193/16-11-09 6651 221/7-12-09 2325 236/12-2-10 2325 245/2-2-10 2325 255/5-3-10 2325

Total 26825

(Para No.3(2) of Pileru Gram Panchayat of Chittor district for the year 2009-10) 3.3.2. GRAM PANCHAYATS – DIVERSION OF GRANTS FOR OTHER THAN THE SPECIFIED PURPOSE- IRREGULAR. As laid in G.O.Ms.No. 279 Finance Dept., Dt.30-01-2006 & G.O.Ms.No.33 PR&RD Dept., Dt.03.02.2006, the 12th Finance Grant has to be utilized for water supply and sanitary works only. But during the course of audit of Gram Panchayats for the year 2009-10, it was noticed that the TFC grants were utilized other than specified purposes as detailed below.

S.No

Name of the GP and District

Vr.No. and date

Details of expenditure

Expenditure

incurred

Para No.

1 Kanakamamidi, Ranga Reddy Nil/19.1.09 Maintenance of

GP Building 74745 1

2 Sriramnagar Ranga Reddy

1082/29.3.10

PWS scheme purchase

21600 1

3 Sriramnagar Ranga Reddy

,, ,, 18350 1

4 Sriramnagar Ranga reddy

,, ,, 1550 1

5 Yenikepalli W.Godavari

Nil/20-8-2009

N.G.P. maintenance 40000 1

6 Yenikepalli W.Godavari

Nil/16-10-09

N.G.P. maintenance 13965 1

Total 170210

4. NON-UTILZATION 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 by following the guidelines issued / norms prescribed and such utilization should be within the date prescribed, otherwise, the grants would lapse to government, unless government extends the lapsable date of any particular grant or grant releasing authority.

23

Government issued in para No.2 (c) of G.O. Ms. No 43 F&P (W&M) Department dated 22-04-2000 the funds released under lapsable deposits during the particular Financial year shall lapse by 31st March of the next year i.e., all funds released on or before 31-03-2009, under the schemes sanctioned before 31-03-2009 and which remained unspent as on 31-03-2010 shall lapse on 31-03-2012. 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 are also not refunded to the grant releasing authorities.

A Consolidated Statement – 9(4)of Non-utilization of Funds before Lapsable Date is appended to the Report from which it could be seen that an amount of Rs.1170.49 lakhs was pointed out in 12574 audit paras 4.1.1 ZPP VIZAYANAGARAM - SFC GRANT NOT UTILIZED IN FULL - PURPOSE OF RELEASE OF GRANT BY GOVERNMENT NOT SERVED RS. 52,05,386/- The position of receipts and utilization of the grants during the year 2009-10 in ZP Vizayanagarm by 31.3.10 is as follows;

Details Amount Rs.

Opening Balance 3938945 Grant adjusted during the year 3315900 Total funds available 7254845 Expenditure during the year 09-10 2049459 Unspent balance as on 31. 3.10 5205386

The inaction of the Executive Authorities in utilizing the grant within the Financial year will deprive the very purpose of the grant released by the Government. Action would need to be taken for utilization of grants within the Financial year, for effective functioning of the schemes designed for the beneficiaries. (Para No.5 of General fund of ZP of Vijayanagaram district for the year 2009-10)

4.1.2. ZP SRIKAKULAM - S.G.R.Y. FUNDS - UNSPENT BALANCE NOT TRANSFERRED - NEEDS IMMEDIATE ACTION. During the course of audit, it is noticed that an amount of Rs.21,14,844-09 is available in the S.G.R.Y Account as on 31-3-2010. Government of India vide D.O.No.24011/34/2001 NFFDUP-NREGS dated 2-8-2007 instructed to transfer the unutilized SGRY funds to the NREGS as the SGRY scheme was winded up after 2006-07. But, the ZP has not transferred the balance amount to the NREG Scheme.

(Para No.2 of General Fund of ZP of Srikakulam district for the year 2009-10.)

4.1.3 ZPP ONGOLE - CONTINGENT GRANT RELEASED FOR 2009-10 - UN-UTILISED AMOUNT NOT REFUNDED TO GOVERNMENT - NEEDS ACTION-Rs.37,33,882/- The Director of School Education, A.P., Hyderabad had instructed the District Educational Officer, Ongole to make the payment of wages to part time contingent employees from the sanctioned budget and utilize the remaining amount for other admissible items (except for purchase of furniture) during the year under report.

24

As verified from the file, the Contingent Grant is released every year for the above

purpose and is to be utilized in the same year. But it is observed that an amount of Rs.29,97,682/- was relating to the year 2008-09 was available at the beginning of the Financial year 2009-10, Out of which an amount of Rs.27,69,000/- was released in the month of February, 2010 to the Head Masters. The remaining amount of Rs.2,28,682/- which is available in Secondary Education Fund as on 31-3-2010 would need to be remitted to the Head of account concerned at an early date . It was also observed that an amount of Rs.27,69,000/- was released to the Head Masters concerned in the month of February 2010. Out of which an amount of Rs.3,81,000/- was encashed at the end of March 2010. The remaining amount of Rs.23,88,000/- was not encashed due to non availability of funds. It is further noticed that the releases made during the year of Rs., 35,05,200/- is also neither utilized nor remitted to the head of account concerned. The same would need to be remitted to the concerned head early.

(Para No. 5 of General Fund of ZP Ongole district for the year 2009-10.)

4.1.4 ZP SRIKAKULAM – UNSPENT BALANCES NOT REMITTED TO THE GRANT RELEASING AUTHORITIES – Rs. 1402749.46 During the course of audit for the year 2009-10, on verification of Cash Books and Pass Books, it was noticed that an amount of Rs. 1402749.46 was kept with the institution as unspent balance as on 31-3-2010 under the following accounts.

S. No Name of the Grant Account No.& Bank Closing Balance

as per Cash Book

1. ITDA Grant 018610011004922 Andhra Bank, SKLM 0.00

2. MP LADS Grant INS-1000040310 AP GVB, SKLM 256874.00

3. TSC-SFC Grant 018610011004922 Andhra Bank, SKLM 225126.00

4. SFC(ZP) Project Grant

435702620 Indian Bank, SKLM 45750.46

5. Housing Grant 018610011005401 Andhra Bank, SKLM 143038.00

6. Housing Grant 018610011004922 Andhra Bank, SKLM 69431.00

7. DPEP/SSA Grant 018610011004922 Andhra Bank, SKLM 662530.00

TOTAL 1402749.46

Year of Grant Opening Balance

Rs.

Receipts Rs.

Total Rs.

Amount issued

Rs. Balance Rs.

Up to 2008-09 expenditure made during 09-10

2997682 0 2997682 2769000 228682

2009-10 228682 3505200 3733882 0 3733882

25

But the said amounts were not remitted to the grant releasing authorities concerned which is irregular in terms of Government Orders. Therefore, early action would need to be taken to remit the same to the grant releasing authorities concerned and the fact reported to Audit.

(Para No. 1 of ZP Srikakulam for the year 2009-10.) 4.1.5. ZP KARIMNAGAR - BALANCE KEPT IDLE UNDER SGRY SCHEME - NEEDS TO BE TRANSFERRED TO NREGS - RS. 1,14,83,319/-

During the course of audit, it is observed that Heavy balance of Rs. 1,14,83,319/- kept idle under SGRY scheme in ZP Karimnagar. According to proceedings No. 24011/46/2000/NFFWP/NREGA1 Ministry of RD Dt:- 20.3.2006, the entire balances under SGRY scheme on 31st March 2006 shall be transferred to the NREGS Account. But the Z.P Authorities have not transferred the amount despite the information given through the letter No. 53/A5/10.11 Dated. 7.9.2010 of Asst Audit Officer, State Audit ( Z.P) Karimnagar.

Therefore, immediate action would need to taken by the Z.P. Authorities in this regard to transfer the entire balance of SGRY funds along with Interest earned, to NREGS account.

(Para No. 8(1) of General fund of Z.P.of Karimnagar district for 2009-10) 4.2.1. MPP KANAGAPALLI OF ANANTAPUR DISTRICT - NON UTILIZATION OF GRANT WITHIN THE FINANCIAL YEAR. During the course of audit in SFC, TFC & ISLS Funds of Kanaganapalli MPP of Anantapur District for the year 2009-10, it was noticed that the grant was not utilized fully to achieve the main objective of the scheme till the end of the Financial year as shown below.

Name of the Grant O.B Grant received

during the year Total Expenditure Balance

T.F.C 94699 126000

220699 74300 146399

S.F.C 89810

39350

129160 22 129138

I.S.L 892565

28865 921430 22 921408

1077074 194215 1271289 74344 1196945 (Para No.4 of MP Kanaganapalli of Anantapur District for the year 2009-10)

4.2.2.MPP BALAJIPETA VIZAYANAGARAM DISTRICT –SFC GRANT NOT UTILIZED - PURPOSE OF RELEASE OF GRANT BY THE GOVERNMENT IS DEPRIVED Rs. 71,134/-

During the course of audit of Balajipeta MPP in Vijayanagaram District for the year 2009-10, it was noticed that an amount of Rs.71,134 /- was adjusted to the General funds towards the SFC grant to be utilized for asset creation in Mandal Parishad. It is noticed in audit that the Executive Authority has failed to utilize the funds even a part of the grant released by the Government. (Para No.22 of Balajipeta MPP in Vijayanagaram District for the year 2009-10)

26

4.3.1.GRAM PANCHAYATS - NON- UTILZATION OF SGRY GRANTS – GRANTS RELEASED WERE NEITHER UTILIZED NOR REMITTED TO THE GOVERNMENT ACCOUNT.

Govt., have issued instruction in D.O.No.24011/34/2001 NFFDUP-NREGS dated 2-8-2007, to transfer the unutilized SGRY funds to the NREGS as the SGRY scheme was winded up after 2006-07. During the course of audit of GPs for the year 2009-10, it was noticed that the unspent balance of SGRY Funds were not transferred to the NREGS even though the government have issued specific instructions. Some of such instance cases are given in the table below.

S.No. Name of the GP, District Unspent balances under SGRY

Para No.

1 Santajuturu Kurnool 47356 1 2 Kattubadipalem Krishna 10356 1 3 Peddadevalapuram, Kurnool 13625 1 4 Pathapatnam, Srikakulam 28673 10 Total 100010

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. Instead 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 – 9 (5) of Mis-utilization of Grants/ Funds is appended to the Report from which it could be seen that an amount of Rs. 518.85 lakhs was pointed out in 498 audit paras. 5.1.1. ZP SANGAREDDY AT MEDAK DISTRICT IRREGULAR SANCTION AND EXECUTION OF WORKS - WORKS WHICH ARE NOT IN THE FUNCTIONAL JURISDICTION – IRREGULAR Rs. 322166/- Vr.No.52/6.2.10 Rs. 1,00,000/- Vr.No.72/26.3.10 Rs. 2,22,166/- During the year an amount of Rs.322166/- drawn and incurred towards balance work of construction of compound wall to market yard at Kakunoorpally village of Kondpaka Mandal. Construction of Market yard and maintenance of market yard is not the duty of the Zilla Parishad and the said responsibility lies with department concerned. As per the 73rd amendment of the constitution, every institution has to maintain the assets as their own. The Zilla Parishad funds shall not be utilized for the works, which do not fall within the functional jurisdiction of the Zilla Parishad. No receipts from the Market yards were received by the ZP during the year under report.

27

It is further noticed that the details such as the original work executed by whom, the stage of work and payments made etc.,were not forthcoming to audit and the exigencies which warranted taking up the said works by the Zilla Parishad were not explained to audit. The executive authority should take steps to prevent the sanction of the irregular works and those especially, where duplication of the expenditure is likely to take place.

In view of above, an aggregate amount of Rs.3,22,166/- incurred during the year could not be admitted in audit and held under objection.

(Para No. 3 of the AR of ZP Sangareddy at Medak for the year 2009-10) 5.1.2. ZP KRISHNA - EXPENDITURE INCURRED FROM THE GENERAL FUNDS WITHOUT BUDGET PROVISION MIS UTILIZATION OF FUNDS - NEEDS ACTION-Rs.58,00,090/-

During the course of Audit on the accounts of General Funds of Zilla Parishad, Krishna for the year 2009-10, as verified from the paid vouchers it was noticed that, a total sum of Rs.58,00,090/- was incurred under various Heads of Account as detailed below. But, as verified from the budget there was no provision for the below expenditure in the approved budget.

Sl. No. Name of the Head Budget

provided Amount spent

1 Name plates making Nil 1140 2 Cost of DVD player Nil 34510 3 Cost of New cell phones Nil 34780 4 Refund of sand auction Nil 5677005 5 Roneo machine master rolls Nil 33480 6 Water cooler repairs Nil 6150 7 Xerox charges Nil 13025

TOTAL 5800090

(Para No. 5 of General fund of Z.P.of Krishna district for the year 2009-10)

5.3.1. GP ADDATIGALA EAST GODAVARI DISTRICT – MIS- UTILIZATION OF 12th FINANCE FUNDS.

As per G.O.MS. No 33 PR & RD Dt; 3-2-2006 G.O.Ms. No: 279 Fin Dt: 301-2006 and as per instructions of the Commissioner Panchayat Raj issued in Roc. No. 10669/CPR /RE/J1/2005 Dt: 8-2-2006, the funds allocated by 12th Finance Commission have to be utilized for maintenance of protected water supply schemes and augmentation of sanitation including construction of drains.

During the course of audit Addathegala G.P. East Godavari District for the year 2009-10 it was noticed that an amount of Rs.1,50,410/- was incurred violating the guide lines issued and amounts paid to the purchases other than the stipulated items shown hereunder. In the above circumstances, the expenditure thus incurred is a clear violation of guidelines under 12th Finance Grant.

28

Sl. No.

Vr No & Dt Details Amount of Rs.

1 1/21-4-09 Election Expenditure 5000 2 3/29-5-09 Advance to sarpanch 602 3 4/29-5-09 Purchase of Electrical Goods 9958 4 9/2-9-09 Purchase of Electrical Goods 29500 5 23/16-12-09 Purchase of Electrical Goods 20000 6 24/22-12-09 Election Expenditure 46000 7 30/30-3-2010 Purchase of Electrical Goods 26040 8 31/30-3-2010 Repairs to street lights 3900 9 32/30-3-2010 Books and Stationery 4955

10 33/30-3-2010 Books Xerox and Stationery 2845 11 37/30-3-2010 Books and Stationery 1610 Total 150410

(Para No. 9 of Addathegala (GP) of Addathegala (M) East Godavari District for 2009-10)

6. NON-UTILZATION 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%

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 and to utilized 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., and M.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 .1870.16 pointed out in 2131 paras as detailed in the Statement No. 9 (6) appended to this report is lying with the PRIs., un-utilized. During the year 2009-10 it was noticed that position of utilization of earmarked funds and transferred to the respective agencies is as follows.

29

Zilla Parishads The below table shows the status of utilization transfer and non-utilization in ZPs during the year 2009-10. The Coolum No.6 of the given table shows the percentage of utility under each fund. The total utility was 97.32% . Rs.in Lakhs

S.No Name of

the Fund

% Earmarked

for each category

Amount Earmarked

Amount Utilized +

Transferred

% of Utility + Transfer

Amount Leftover

1. W&CW 15 1236.47 1109.53 89.73 126.94 TOTAL 2967.11 2887.45 97.32 79.66

During the year 2009-10 in Mandal Parishads an amount of Rs.4378.19 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. 2335.48 lakhs was only utilized and transferred to the respective funds. The balance of Rs.2042.70 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.

Name of

the Fund

% Earmarked for each category

Amount Earmarked

Amount Utilized +

Transferred

% of Utility + Transfered

Amount Leftover

S.C 15 1612.12 1040.77 64.55% 571.36 S.T 6 1591.84 388.78 24.42% 1203.06 W&CW

15 1174.21 905.93

77.15% 268.28

TOTAL 4378.17 2335.48 53.34 2042.70

As analyzed from the above table it is clear that out of total allocation only 53.34% of total Earmarked amount was utilized and transferred to the connected Agencies and 46.64% of the Earmarked amount was kept without proper utilization/transfer.

It is also noticed that a total sum of Rs.1609.62 Lakhs is available as Opening

Balance at the beginning of the year. The Opening Balances 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.

7. NON-COLLECTION OF DUES

On verification of Revenue Collections in PRIs., (source of revenue to PRIs., ) 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

30

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 Consolidated Statement 9 (7) showing audit objections on Non- collection of dues is appended to the Report from which it could be seen that an amount of Rs.2812.00 lakhs was pointed out in 21325 audit paras. 7.1.1. ZP ELURU - SHORT COLLECTION OF LEASE AMOUNTS ON FERRIES – NEEDS ACTION FOR COLLECTION OF THE SAME - RS.14,89,565/- As verified from the Procgs.Lr.Roc.No:O2/6183/08 Dated: 25.02.2009 ,02/6185/08 Date;06/05/08 of Chief Executive Officer, West Godavari District, Eluru relating to auction ferry leases, it was observed that an aggregate amount of Rs.14,89,565.00 was short collected during the year under audit as detailed below.

Name of the Village/Man

dal

Lease holders

particulars

Assessment

Amount to be

collected towards

Z.P Share Under 37.5% (Rs.)

Demand taken as

per Demand Register

(Rs.)

Amount Collected (Rs.)

Amount Due

Remarks

Year (Rs.)

Madhavayapalem, Narasapuram

B.Madusudhana Rao

2009-10 2779162 1389581 1312500 1466662 37.5% of Z.P Share

Doddipatla, Elamanchili

M.Rudrayya 2009-10 252789 229886 229886 22903 37.5% of Z.P Share

Total: 3031951 1619467 1542386 1489565

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

Rs. 30,31,951.00 was fixed as 37.5% share of Zilla Parishad but instead of taking demand as Rs. 30,31,951.00, Rs. 16,19,467.00 was taken in the concerned demand register. Effective steps would need to be taken for collection of the due amount of Rs. 14,89,565.00 towards ferry leases from the lease holders and credited to the concerned head. (Para No. 39 of General fund of Z.P.of Eluru,West Godavari dist. for 2009-10) 7.1.2. ZP WARANGAL - DEMAND COLLECTION AND BALANCES OF QUARTERS RENTS UNDER THE CONTROL OF Z.P.P.; RENTS / LEASES - AMOUNT NEEDS TO BE COLLECTED Rs.97,948/-.

During the course of audit of Z.P.P. General Fund of Warangal District for the year 2009-10; as verified from the D.C.B. Statements furnished by the C.E.O. Z.P., Warangal in respect of Z.P. Quarter Rent and Rents of Shopping Complexes it was noticed that, the Rents demand for shopping complexes of Z.P, Warangal was Rs.3,44,124/-. Out of which s Rs.2,46,176/- only collected leaving a balance of Rs.97,948/-. Action would need to be taken to collect the rent from the defaulters and remitted to the Z.P. funds.

(Para No. 8 of General fund of ZP of Warangal district for the year 2009-10.)

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7.1.3. ZP KADAPA - NON-COLLECTION OF RENTS FROM VEMPALLI SHOPPING COMPLEX RS.10,78,160/- During the course of audit for the year 2009-10 it was noticed, that shops of Zilla Parishads were leased out to various persons with the following conditions.

1. Lessees should remit the deposit of advance rent for six months within 7 days from the date receipt of the order.

2. The Lessee should remit the monthly rent by 10th of every month in advance. For delay payments, a penalty of Rs 3% will have to be collected.

3. The lessee should submit the solvency certificate of Rs .50,000/- 4. If there are any arrears due to be recovered from the lessees, the CEO ZP has right to

seize the property of the lessees as per rules. 5. If rent for the period of two months is not paid, the CEO ZP has right to cancel the lease

and take over the shop immediately and is entitled to collect the arrears from the lessee. As verified from the DCB particulars of rent in respect of Vempalli shopping complex, of Kadapa district, for the year 2009-10, it was noticed that the total demand for the year including arrear demand was Rs.40,60,730/-, but only an amount of Rs 29,82,570/- was collected during the year leaving a Balance of Rs 10,78,160/-.Eventhough the CEO of the Zilla Parishad has sources to collect the lease amount down as laid down in the conditions, no action has been taken to collect the amount as per lease conditions.

(Para No. 9 of General fund of Z.P.of Kadapa district for the year 2009-10) 7.1.4. ZP PRAKASAM - INTEREST AMOUNT AND UNSPENT BALANCE NOT TRANSFERRED TO ZP,CEO, ONGOLE. AT THE TIME OF CLOSING OF DIVISION.-NEEDS EARLY ACTION.RS.1,99,194/-

As per G.O.M.S. No. 220 Panchayat Raj & Rural Development (Estt.I.2 ) Department dated 13-7-2009. The offices of EEPR Kandukur, Ongole, Parchuru were closed on 31-7-2009. The EEPR, Kandukur was merged in EEPRI, Ongole and EEPRI, Markapur. EEPR Ongole and Parchuru was merged in EE PRI Ongole.

The unspent balances including interest of the ZP grants of the closed divisions were transferred to merged division without prior intimation to CEO,ZP,Ongole and without remittance of interest to CEO,ZP,Ongole. The executive authority also did not evince much interest in corresponding with the Executive Engineers for remittance of interest amount to ZP funds. As such an aggregate amount of Rs.199194/- towards interest amount was kept with PRI Divisions. The amount relating to interest amount which was unremitted previously to CEO,ZP,Ongole along with following amount would need to be obtained from the EEPRI Ongole and Markapur early and remitted to ZP funds.

Sl. No.

Name of the Executive authority(erstwhile)

Fund

Interest amount to be remitted Rs.

1. EEPR Kandukuru GF 89436 2. SFC 11805 3. EEPR Ongole GF 40935 4. SFC 15541 5. EEPR Parchuru GF 31365 6. SFC 10112

Total 199194

(Para No. 4(3) of General fund of Z.P.of Prakasam district for 2009-10)

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7.1.5. ZP RANGA REDDY - OFFICE BUILDING - RENT DUE FROM THE VARIOUS OFFICES IN Z.P.OFFICE PREMISES NOT COLLECTED - LOSS TO ZP FUNDS- NEEDS IMMEDIATE ACTION - RS 7,21,307/- As verified from the DCB statement of Office Building rents for the year 2009-10 of ZP, Ranga Reddy district, it was noticed that an amount of Rs 7,26,307/- towards rent are still pending collection from the different offices in Z.P. premises . Immediate action would need to be taken to collect the due amount of Rs 7,26,307/- along with the penal interest worked out for the delay period. Despite of raising the objections, the said dues have not been collected so far.

Statement Showing the Rents Due from the Offices located in the premises of the Zilla Parishad Ranga Reddy as on 31.3.2010.

Sl. No. Name of the Office Rent due as on

31.3.2010 1 D.P.R.O 81402 2 JT.Director Agriculture 61343 3 Asst.J.Dir.Agri 132871 4 Dist.Women & C.Wel 201630 5 ZP Canteen 12000 6 Xerox Centre 14000 7 DPO 216436 8 AOPHC 1625

Total 721307 (Para No. 7 of General fund of Z.P.of Ranga Reddy district for 2009-10)

7.1.6. ZP MACHILIPATNAM –PROPERTIES SITUATED AT DIFFERENT PALCES IN THE DISTRICT – ENCROACHED FOR DIFFERENT PURPOSES- ENCROACHMENT FEE NOT COLLECTED FROM THE ENCROACHERS – LOSS TO THE GENERAL FUNDS – NEEDS COLLECTION.

During the course of Audit, it was noticed that, 721.56 acres of land was encroached by 3400 persons in the district and utilizing the land for different purposes. As seen from the available records, it was noticed that no encroachment fee has been collected from the encroachers. It was also noticed that 1045 acres of land was kept vacant without leasing to any body. Necessary action would need to be taken for levying and collection of the Encroachment fees from the occupiers. Due to non levying and non- collection of the encroachment fee, the loss if any caused to the Zilla Parishad funds would need to be worked out and recovered from the person or persons responsible.

Sl. No.

Name of the Mandal Parishad. Extent in acres. No.of persons occupied.

1 Vijayawada 20.30 77 2 Thotlavalluru 0.42 03 3 Mylavaram 1.68 03 4 Chandarlapadu 0.54 04 5 Veerullapadu 5.76 42

33

6 Vatsavai 2.36 01 7 Penuganchiprolu 12.87 18 8 Penamaluru 2.98 08 9 Nandigama 6.50 82

10 Kankipadu 13.12 23 11 Kanchikacherla 16.93 15 12 Jaggaiahpeta 5.10 27 13 Ibrahimpatnam 22.28 205 14 Unguturu 21.25 109 15 Pamidimukkala 35.55 211 16 Nuzvid 12.19 48 17 Musunuru 19.59 29 18 Gannavaram 11.79 71 19 Gampalagudem 1.71 05 20 Bapulapadu 6.89 06 21 Agiripalli 16.03 188 22 Pedaparupudi 15.07 40 23 Pamarru 36.11 188 24 Nandiwada 5.83 17 25 Mudinepalli 77.23 188 26 Mandavalli 71.43 216 27 Kalidindi 23.08 84 28 Kaikaluru 42.40 107 29 Gudlavalleru 50.47 69 30 Gudiwada 18.02 69 31 Pedana 40.18 314 32 Movva 34.77 91 33 Mopidevi 6.51 41 34 Machilipatnam 46.81 142 35 Kruthivenu 19.99 79 36 Koduru 38.04 71 37 Guduru 25.65 112 28 Ghantasala 196.10 189 29 Challapalli 25.25 0 30 Bantumilli 5.35 19 31 Avanigadda 30.87 185 32 Mudinepalli 73.81 Vacant 33 Nandiwada 5.83 Vacant 34 Pamarru 30.3 Vacant 35 Pedaparupudi 15.37 Vacant 36 Agiripalli 17.24 Vacant 37 Bapulapadu 6.89 Vacant 38 Gampalagudem 6.15 Vacant 39 Gannavaram 11.79 Vacant 40 Musunuru 19.60 Vacant 41 Nuzvid 19.12 Vacant 42 Pamidimukkala 30.03 Vacant 43 Unguturu 34.44 Vacant

34

44 Vissannapeta 15.54 Vacant 45 Vuyyuru 10.01 Vacant 46 Chandarlapadu 0.54 Vacant 47 Ibrahimpatnam 22.28 Vacant 48 Jaggaiahpeta 10.13 Vacant 49 Kanchikacherla 16.93 Vacant 50 Mandavalli 54.54 Vacant 51 Kalidindi 16.35 Vacant 52 Kaikaluru 40.06 Vacant 53 Kankipadu 12.86 Vacant 54 Mylavaram 1.68 Vacant 55 Nandigama 6.95 Vacant 56 Penamaluru 2.98 Vacant 57 Penuganchiprolu 12.85 Vacant 58 Vatsavai 2.36 Vacant 59 Veerullapadu 5.76 Vacant 60 Vijayawada 20.30 Vacant 61 Ghantasala 25.99 Vacant 62 Guduru 18.86 Vacant 63 Koduru 36.18 Vacant 64 Mopidevi 6.15 Vacant 65 Movva 26.64 Vacant 66 Machilipatnam Land located in Vacant

various villages 67 Pedana 26.50 Vacant 68 Gudiwada 17.45 Vacant 69 Gudlavalleru 41.10 Vacant

Total 1766.56

ABSTRACT

S.No No.of Acres encroached No.of persons

occupied No.of Acres kept vacant

1. 1045 3400 721.56

(Para No. of ZP, Krishna Dist for the year 2009-10) 7.1.7. Z.P.MACHILIPATNAM - SHORT COLLECTION OF DUES - PROPERTIES – LEASES – SHOP PAY COMPLEX LEASE AMOUNTS PENDING REALISATION AS ON 31.3.2010 – NEEDS EARLY ACTION: Rs. 259484/-

During the course of audit, it was observed that the following shops were leased out for the period 2009-2010 and lease amounts are pending realization from the lessees as on 30.3.2010 till to date of audit. Hence early action needs to be taken for realization of the same.

35

TABLE -01

Sl. No. Shop No. Name of the lessee Rent per

(Rs.) Pending as on

month 31.3.2010 1 2 Sri Y. Venkata Murali Krishna 1333/- 9331.002 3 -do- 2699/- 18893.003 4 Sri S. Siva Kumar 2791/- 2791.004 5 Smt. Y. Viraj Kumari 1333/- 1333.005 6 Smt. Y. Viraj Kumari 1333/- 2666.006 7 Smt. O. Venkata Suseela 1333/- 1333.007 8 Sri Abdul Majeed 1333/- 2666.008 9 Smt. M. Sumati 1333/- 2666.009 10 Sri Y. Venkateswara Rao 1333/- 9331.00

10 11 Sri U. Venkateswara Swamy 1333/- 1333.0011 13 Sri K. Lakshmi Narasimha 3416/- 3416.0012 14 Smt.M. Adi Lakshmi 1333/- 3999.0013 16 Sri G.V. Appa Rao 1867/- 3734.0014 17 Smt.D. Bujjamma 1333/- 2666.0015 18 Sri V. Veeraiah Gupta 3656/- 3656.0016 20 Smt.K. Satyavathi 3777/- 7554.0017 21 Sri B. Srinivasa Rao 2607/- 2607.0018 22 Smt. K. Vijaya Lakshmi 1333/- 1333.0019 23 Sri V. Ranga Rao 2489/- 4978.0020 24 Smt. K. Vijaya Lakshmi 1333/- 2666.0021 25 Sri Abdul Kareem 1333/- 2666.0022 26 Sri G.A. Muni 1333/- 11997.0023 27 Sri K. Leela Prasad 2133/- 21330.00

TOTAL 124945.00

TABLE 02 Sl. No. Shop No. Name of the lessee Rent per (Rs.) Pending as on

month 31.3.2010 1 1 Sri R. Raghavaiah 1238/- 6190.002 2 Sri P. Vijaya Kumar 1733/- 19848.003 3 Sri Ravi Murali Krishna 1500/- 21000.004 4 Sri K. Srinivasa Rao 1238/- 11928.005 5 Sri A. Srinivasa Rao 1238/- 9678.006 6 Sri A. Babu Rao 1238/- 3714.007 7 Smt.G. Lakshmi 1050/- 5250.008 8 Sri V. Subrahmanyam 1238.- 3714.009 9 Sri G. Venkateswara Rao 1238/- 7428.00

10 10 Sri K. Venkaateswara Rao 1238/- 11928.00 TOTAL 100678.00

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TABLE 03

Sl. No.

Shop No. Name of the lessee Rent per Pending as on

month 31.3.2010 1 1 Sri K. Rajendra Prasad Rs.1251/- 3753.002 2 Sri K. Chandra Sekhara Rao Rs.1249/- 1249.003 3 Smt.K. Radhika Rs.1004/- 3012.004 4 Sri B. Ranga Rao Rs.1233/- 4932.005 5 Sri P. Suri Babu Rs.1249/- 1249.006 8 Sri Md. Issac Rs.1249/- 1249.007 9 Sri K. Rama Rao Rs.1017/- 1017.00 TOTAL 16461.00

Sl. No.

Shop No. Name of the lessee Rent per Pending as on

month 31.3.2010 1 1 Rs.3300/- 6600.002 4 Rs.3600/- 10800.00 TOTAL 17400.00

(Para No. 17 of G.F of Z.P.of Machilipatnam, Krishna district for 2009-10)

7.1.8. ZP VIZAYANAGARAM - SAND CESS -NO INCOME DURING THE YEAR 2009-10 FROM THE SAND REACHES: During the course of audit for the year 2009-10, it is noticed that no Sand Cess was received by the Zilla Parishad from the Gram Panchayat Sand reaches in the District. An amount of Rs.1,42,60,299/- was received during the year 2008-09 from 12 Gram Panchayat Reaches. But, during the year 2009-10, no single pie was received from the Gram Panchayat Reaches and reasons for non –collection of the sand cess during the year was not explained to audit. Early action would need to be taken to collect the Sand Cess from the Gram Panchayat Reaches which is due to the Z.P., under intimation to the audit,

(Para No.13 of General fund of Z.P.of Vizianagaram district for 2009-10)

ABSTRACT No.of shops Total rent due

Table 1 -- 23 124945.00Table 2 -- 10 100678.00Table 3 -- 07 16461.00Table 4 -- 02 17400.00Total -- 42 259484.00

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7.2.1. MP NELAKONDUPALLI, KHAMMAM DISTRICT - NON-COLLECTION OF SHOPING COMPLEX RENT - LOSS TO THE MANDAL FUNDS - NEEDS TO BE COLLECTED Rs.48,650/-

On verification of DCB Statement of shopping complex rent in respect of MP Nelakondapalli of Khammam District for the year 2009-10, it is noticed that an amount of Rs.48,650/- is yet to be collected from shop numbers 1,2&3 during the year 2009-10 as detailed in the statement .

DCB STATEMENT OF SHOPPING COMPLEX OF MANDAL PRAJA PARISHAD NELAKONDAPALLY FOR THE YEAR 2009-10.

Sl. No.

Shop Number

Rent per

month Rs.

Period Arrear Demand Collection Balance

1 1 1400 4/09 to 3/2010 3500 16800 0 20300

2 2 1050 4/09 to 3/2010 3675 12600 0 16275

3 3 1050 4/09 to 3/2010 3650 12600 4200 12075

Total: 10825 42000 4200 48650

Hence action would need to be taken to collect the due amount of Rs.48,650/- immediately from the tenants and credit to the M P funds. (Para No.7 of MP Nelakondupalli of Khammam District for the year 2009-10). 7.3.1. GRAM PANCHAYATS – NON-LEVY OF ADVERTISEMENT TAX IN GRAM PANCHAYAT AREAS.

Section 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. In G.O.Ms.No.326 PR&RD (Pts-III) dated 3-9-1997 Government has fixed the rates of advertisement for different items. 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. The issue was incorporated in the CARR for the year 2008-09 but the action taken report in this regard is not known to audit till date. Therefore early action would need to be taken in this regard to strengthen the Gram Panchayats by imposing effective taxation methods 7.3.2. PEDDIPALLI GP OF KHAMMAM DISTRICT - NON-COLLECTION OF FERRY LEASES – NEEDS COLLECTIONS. RS. 45,000/-

As verified from the Auction Register, it was noticed that Ferry lease of Zetty Gudem to Singaram on Godavari for the year 2009-10 was confirmed to Sri. K. Govinda Raju of Peddapalli Village for Rs.1,55,000/-. Out of which an amount of Rs.1,10,000/-

38

was only paid by the lessee leaving a balance of Rs.45,000/-. If the bidder was not allowed to continue to operate the ferry without paying the monthly installments such loss might not caused. Action would need to be taken to collect the entire balance amount from the concerned and should not allow him to participate in the auctions in future without paying the dues of the previous years. (Para 3 of Peddipalli G.p. of Cherrla Mandal of Khammam for the year 2009-10) 7.3.4. HOUSE TAX DEMAND NOT FIXED IN GRAM PANCHAYATS ADDITIONS AND DELETION HAS NOT BEEN MADE DURING THE YEAR 2009-10.

According the G.O. No.98 dated 14-03-2002, the House Tax has to be increased by 5% for every year based on the rent fixed during the year 2000-01. But during the course of audit of Gram Panchayats for the 2009-10, it was noticed that most of the Gram Panchayats in the State have not increased the rate of tax as laid down. During the course of audits of Gram Panchayats for the year 2009-10 it was noticed that most of the Gram Panchayats have not fixed House Tax demand as per above said Government Orders. Action may be taken to implement the above orders strictly to increase the property of the Gram panchayats.

As verified from the Gram Panchayat Audit Reports for the year 2009-10, it is observed that Demand for the taxes were not fixed in most of the Gram Panchayats. As per G.O.Ms.No.30, PR & RD, dt.20-1-95 it is the duty of the Executive Authority to fix the demand duly making additions and deletion and certify the demand for the year. The EO & RDs concerned have also not evinced any effort in this matter though it is the primary responsibility of the officers. For example the District Audit Officer, State Audit ,Visakhapatnam has made a case study on preparation of House tax demand and percentage of House tax collected in notified and Non-notified Gram Panchats in Visakhapatnam District during the year 2009-10. The position of demand fixed and not fixed and percentage collection of house tax are shown in the given table.

MANDAL WISE DETAILS OF HOUSE TAX DEMAND FIXED

Sl. No. NAME OF THE MANDAL No.

of GPs Demand

fixed

Demand Not fixed

% of Demand

fixed 1 ANANTHAGIRI 24 0 24 0 2 CHINTAPALLI 17 0 17 0 3 DEVARAPALLI 27 0 27 0 4 DUMBRIGUDA 18 0 18 0 5 G. MADUGULA 17 0 17 0 6 HUKUMPETA 33 0 33 0 7 MUNCHINGIPUT 23 0 23 0 8 PEDABAYALU 23 0 23 0 9 PADERU 26 0 26 0 10 KOYYURU 33 0 33 0 11 PADMANABHAM 21 0 21 0 12 ANANDAPURAM 26 0 26 0 13 BHEEMUNIPATNAM 21 0 21 0

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14 KASIMKOTA 26 0 26 0 15 NATHAVARAM 27 0 27 0 16 BUTCHAYYAPETA 32 1 31 3 17 NAKKAPALLI 32 1 31 3 18 GOLUGONDA 24 1 23 4 19 KOTAURATLA 24 1 23 4 20 ROLUGUNTA 21 1 20 5 21 GUDEMKOTHAVEEDHI 16 1 15 6 22 K KOTAPADU 31 2 29 6 23 V MADUGULA 28 2 26 7 24 CHODAVARAM 32 2 30 7 25 RAVIKAMATHAM 24 2 22 8 26 YELAMANCHILI 24 2 22 8 27 CHEEDIKADA 23 2 21 9 28 ARAKU VALLEY 14 1 13 13 29 MUNAGAPAKA 20 5 15 25 30 NARSIPATNAM 12 4 8 33 31 PARAVADA 17 9 8 53 32 MAKAVARAPALEM 25 13 12 55 33 ANAKAPALLI 35 28 7 66 34 ATCHUTAPURAM 27 19 8 70 35 RAMBILLI 30 7 23 76 36 PENDURTHI 15 12 3 80 37 S RAYAVARAM 28 23 5 82 38 PAYAKARAOPET 24 21 3 88 39 SABBAVARAM 24 24 0 100

Total 944 184 760 19.69 As verified from above data, it is noticed that Demand was not fixed in 760 Gram Panchayats. Out of 944 which comes to 80.31%. Demand was not fixed even in single Gram Panchayat in 15 Mandals shown at Serial Nos. 1 to 15.

Further as verified from the Gram Panchayat Audit Reports for the year 2009-10, it is observed from the data in certain villages Decimal performance in Collection of House Tax in Visakhapatnam District.

MANDAL WISE DETAILS OF HOUSE TAX COLLECTION

Sl. No.

NAME OF THE MANDAL

No of Gram Panchayats Demand Collection % of

Collection 1 ANANTHAGIRI 24 33710 0 0 2 CHINTAPALLI 17 750066 0 0 3 DUMBRIGUDA 27 197219 0 0 4 G.MADUGULA 18 4068 0 0 5 HUKUMPETA 17 136219 0 0 6 KOYYURU 33 0 0 0 7 MAKAVARAPALEM 23 46284 0 0 8 MUNCHINGIPUT 23 253471 0 0 9 PADERU 26 179064 0 0

10 PEDABAYALU 33 74107 0 0 11 RAMBILLI 32 461330 0 0

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12 ROLUGUNTA 16 679121 47465 7 13 ATCHUTAPURAM 31 4653395 484987 10 14 KOTAURATLA 28 1247664 135566 11 15 PADMANABHAM 32 680239 10800 11 16 NATHAVARAM 24 509429 60797 12 17 YELAMANCHILI 23 4096139 504376 12 18 CHEEDIKADA 14 509772 72249 14 19 SABBAVARAM 27 5530133 766511 14 20 S RAYAVARAM 21 3179671 484253 15 21 GOLUGONDA 25 670073 132493 20 22 KASIMKOTA 32 3837539 851781 22 23 PARAVADA 24 1319804 311446 22 24 BUTCHAYYAPETA 20 962003 225190 23 25 ANAKAPALLI 30 9028374 2137764 24 26 ARAKU VALLEY 35 2263611 631609 28 27 RAVIKAMATHAM 15 1513340 427547 28 28 DEVARAPALLI 21 1026892 319214 31 29 PAYAKARAOPET 28 4721312 1520169 32 30 K KOTAPADU 24 1485839 484414 33 31 G.K. VEEDHI 24 814168 296351 36 32 V MADUGULA 12 2207126 838825 38 33 BHEEMUNIPATNAM 17 2194151 911850 42 34 MUNAGAPAKA 26 1552529 714818 46 35 CHODAVARAM 27 5210136 2595388 50 36 ANANDAPURAM 21 1310054 709457 54 37 NARSIPATNAM 26 6952708 3858004 55 38 NAKKAPALLI 24 943742 823163 87 39 PENDURTHI 24 1161862 1017034 88 TOTAL 944 72396364 21373521 30

From the above data, it is noticed that in 269 Gram panchayats i.e. 29% of the

total Gram Panchayats, the collection of House Tax is NIL. The collection is below 25 % in 360 Gram Panchayats i.e. 38%, the collection is 26% to 55 % in 275 Gram Panchayats i.e. 29 % the collection is above 80% only in 47 Gram Panchayats i.e. 0.5% .The overall collection in the District is 30 %. Hence the performance in collection of House Taxes is tardy in Visakhapatnam District.

MANDAL WISE DETAILS OF HOUSE TAX COLLECTION

Sl. No.

NAME OF THE MANDAL

No of GPs DEMAND COLLECTION

% COLLECT

ION 1 CHEEDIKADA 24 0 27295 * 2 BUTCHAYYAPETA 17 0 327850 * 3 K .KOTAPADU 27 - 67296 * 4 CHODAVARAM 18 0 939812 * 5 PENDURTHI 17 0 61473 * 6 ANANTHAGIRI 33 0 0 0 7 CHINTAPALLI 23 0 0 0 8 DUMBRIGUDA 23 0 0 0 9 G.MADUGULA 26 0 0 0 10 HUKUMPETA 33 0 0 0

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11 KOYYURU 32 0 0 0 12 MAKAVARAPALEM 16 0 0 0 13 MUNCHINGIPUT 31 0 0 0 14 PADERU 28 0 0 0 15 PEDABAYALU 32 0 0 0 16 RAMBILLI 24 0 0 0 17 BHEEMUNIPATNAM 23 0 0 0 18 NARSIPATNAM 14 2193822 678082 31 19 ATCHUTAPURAM 27 586860 299150 51 20 RAVIKAMATHAM 21 542685 401032 74 21 NAKKAPALLI 25 175749 145917 83 22 ANAKAPALLI 32 645221 555292 86 23 PAYAKARAOPET 24 927053 803173 87 24 YELAMANCHILI 20 1467083 1299337 89 25 GOLUGONDA 30 137920 131500 91 26 DEVARAPALLI 35 451020 409270 91 27 MUNAGAPAKA 15 328736 301546 92 29 S RAYAVARAM 21 940673 888626 94 29 SABBAVARAM 28 1431991 1429241 98 30 KOTAURATLA 24 17474 17474 100 31 PADMANABHAM 24 44000 44000 100 32 NATHAVARAM 12 4000 4000 100 33 ROLUGUNTA 17 16041 16041 100 34 ARAKU VALLEY 26 99971 99971 100 35 KASIMKOTA 27 124600 124600 100 36 PARAVADA 21 348012 348012 100 37 ANANDAPURAM 26 991489 991489 100 38 G.K. VEEDHI 24 21245 21245 100 39 V MADUGULA 24 36720 87745 100

From the above data, it is noticed that in 423 Gram Panchayats i.e. 45 % of the

total Gram Panchayats the collection of Non Taxes is NIL. Even the demand was not fixed in 423 Gram Panchayats which comes to 45 % of the total Gram Panchayats only in 350 Gram Panchayats i.e. 37. % have shown better performance in collection of Non Taxes.

DETAILS OF HOUSE TAX COLLECTION IN NOTIFIED GRAM PANCHAYATS

As analyzed from the above data, the collection of House Tax even in notified Gram Panchayats having sufficient collection staff, the performance is marginal in many Panchayats. It is specifically noticed that in Yelamanchili Gram Panchayats the percentage of collection is 3 though having 3 Bill Collectors and in 5 Gram Panchayat for Serial No: 1 to 5, the collection of House tax is almost NIL. In 16 Gram Panchayats the collection is below 25% of in 12 Gram Panchayats, only 4 Gram Panchayats have performed well in collection House Tax more than 80 % and there is no single notified Panchayats which collected 100 % House Tax .

It is observed that in all Gram Panchayats, the primary duty of fixing of demand for taxes and collection was totally derailed. The Panchayat Administration has failed to tap the independent source of Revenue to boost up the financial position of the Gram Panchayats. The self sufficiency of Gram Panchayats has taken backseat and totally depending on the Grants received from the Govt. and amounts adjusted by the Govt.

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towards assigned Revenue of Professional Tax, Per capita Grant, Surcharge and Stamp duty, Entertainment Tax etc. In many Gram panchayats No amount was collected towards Tax or Non Tax.

DETAILS OF NON-TAX COLLECTION IN NOTIFIED GRAM PANCHAYATS

As verified from the above data, in 10 notified Gram Panchayats, the Tax Collection is NIL. 7.3.5. GRAM PANCHAYATS - SHORT COLLECTION OF VARIOUS TAXES - DEMAND NOT FULFILLED- NEEDS EARLY ACTION .

As stated in G.O.No.97 dated 14-03-2002 of PR&RD Department, user charges has to be collected from the users for maintenance of the Street Lights Drainages and Drinking Water Supply to the village people as per the demand fixed in every year. During the course of audit of Gram Panchayats for the year 2009-10, it is noticed that the user charges has not been collected in most of the Gram Panchayats and some of the Gram Panchayats has not collected in full as per the demand. An example for such cases is given below. a). During the course of audit of Kurupam GP of Vizianagaram District for the year 2009-10, it is noticed that as verified from the Meter tap connection register there are 107 Nos. of Tap connections in Kurupam Gram Panchayat and demand fixed as Rs.58,850/- for the year 2009-10. Out of the demand an amount of Rs.14,100/- was shown as collection and Rs.44,750/- pending collection towards water tax. The Executive Authority should take necessary action for collection of pending tax as early as possible (Para No.13 of Kurupam GP Vizianagaram. District for the year 2009-10) b) TAXES - HOUSE TAX WATER TAX & LIBRARY CESS WERE NOT COLLECTED IN FULL - NEEDS EARLY ACTION. During the course of audit of Cheepuru Palli GP of Vijayanagaram District for the year 2009-10, it is noticed that a total amount of Rs.11,75,995-81 was kept uncollected towards House Tax, Water Tax and Library Cess during the year under audit as detailed below. Action would need to be taken to collect the above amounts immediately as per rules and made good to the GP funds.

Nature of Tax Demand Collection Written

off Balance Upto 2009-2010

House Tax 2018763.79 1097275.11 8265.00 913223.68 Water Tax 404961.10 220668.32 1732.00 182560.78

Library Cess 171183.13 89358.78 721.00 81103.35 Total 2594908.02 1407302.21 10718.00 1176887.81

Para No.6 of Cheepurupally GP of Vizianagaram. District for the year 2009-10 ).

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7.3.6. GRAM PANCHAYATS -TAXES- BARRED BY LIMITATION OF TIME NEEDS ACTION.

Under Sec. 135 of AP PR Manual, no prosecution shall be commenced in respect of any tax or other amount due to GP after the expiry of 3 years from the date on which distrait might first have been made. The Executive Authority have not taken any action laid in the rules before expiry of the three years period thereby, there is no chance to collect the said amount from the defaulters. During the course of audit of the GPs. for the year 2009-10, it was noticed that some of the Gram Panchayats have not collected various taxes like House tax, water tax etc. due to which they were barred by limitation of time as per rules. In some cases the amount was short collected which is loss to the Gram Panchayat. Some of such cases are incorporated in the table given below. For the details of the paras the Audit Reports issued to C.E.Os need to be referred.

Sl.No. Name of the Distraiact Name of the G.P

Amount barred by limitation of

time Para No.

1 Nellore Udayagiri 728188 5 2 Nellore Vinjanuru 900511 3 3 Nellore Bagolu 616759 2 4 Chittoor Peeleru 563756 4 5 Chittoor Gurramkonda 231006 4 6 Chittoor Kuppam 256873 7 7 Vizianagaram Kurupam 219911 12 8 Guntur Karampudi 42816 1 9 Prakasam Ulichi 166636 1

10 Prakasam Rajupalam 113958 2 Total 3840414

8. ADVANCES PENDING ADJUSTMENT

It was observed during the course of audit of PRIs for the year 2009-10, that the

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 inaction of the drawing officers.

The audit further noticed that House Building Loan, Marriage Advance, Vehicle Advance etc. given to the staff were not recovered by the Drawing & Disbursing Officers though they can recover these advances easily from salaries. Owing to this a huge financial loss is being caused to the Panchayat Raj Institution Funds. Action would need to be taken to recover the same from the loanee along with penal interest. 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 Executive Authority has not taken any action to recover the same which leads to temporary misappropriation of funds due to irresponsiblity of the Executive Authorities.

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A Consolidated Statement – 9 (8) showing audit objections on Advances Pending

is appended to the Report from which it could be seen that an amount of Rs.2578.76 lakhs was pointed out in 6482 audit paras. 8.1.1. ZP KURNOOL - ADVANCES PENDING ADJUSTMENT - PAID TO THE DMHO, KURNOOL - Rs.7,00,000./ As verified from the Vr.No.361 & 362 Dt.5.2.2010 of Zilla Parishad General Funds, Kurnool for the year 2009-10, it was noticed that an amount of Rs.7,00,000/- was paid to the DMHO, Kurnool as advance towards Special Medical Camp arrangements on occasion of Mahasivaratri Festival at Srisailam for the period from 5.2.2010 to 15.2.2010 vide Proceedings No.A1/327/10 Dt.4.2.2010 of the Chief Executive Officer, Zilla Parishad, Kurnool. But the advance was not got adjusted till the close of financial year. Early action would need to be taken to adjust the advance early.

Vr. No. & Date Particulars Amount paid Rs.

361/05.02.2010 Being the amount paid to the DPO,Kurnool as advance towards special sanitary arrangements on occasion of Mahasivaratri Festival at Srisailam

600000

362/5.2.2010

Being the amount paid to the DMHO, Kurnool as advance towards Special Medical Camp arrangements on occasion of Mahasivaratri Festival at Srisailam

100000

TOTAL 700000

(Para No.9 of General fund of Z.P.of Kurnool district for the year 2009-10) 8.1.2. ZP SRIKAKULAM - WORKS ADVANCES -PENDING ADJUSTMENT -NEEDS EARLY ACTION , Rs. 10,15,491/-

During the course of audit of Zilla Parishad, Srikakulam for the year 2009-10, it was noticed that an aggregate amount of Rs.16,00,000/- was drawn and paid to Sri B.Durga Prasad,AE,.PR,Srikakulam towards advance for execution of works. But the said amount was not shown as advance in the receipts and charges statement which is irregular classification of expenditure.

Out of Rs. 16,00,000/-, only an amount of Rs. 9,00,000/- was adjusted during the year towards execution of works leaving a balance of Rs.7,00,000/- relating to year 2009-10 and a balance of Rs. 3,15,491/- towards advance pending adjustment as on 1-4-2009. Therefore a total amount of Rs.10,15,491/- as detailed below is pending adjustment of advances from Sri B.Durga prasasd,AE.PR,Srikakulam at the close of the year. Opening Balance Rs. 3,15,491/- Advances drawn during the year Rs. 16,00,000/- Total : Rs. 19,15,491/- Advances adjusted during the year Rs. 9,00,000/ - Closing Balance as on 31-3-2010 Rs. 10,15,491/-

(Para No. of General fund of Z.P.of Srikakulam district for 2009-10)

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8.1.3. ZP VIJAYANAGARAM- ADVANCES - SANCTION OF ADVANCE TO ASSISTANT ENGINEERS FOR EXECUTION OF WORKS DEPARTMENTALLY UNDER 35% GENERAL FUNDS AND S.F.C. - PENDING ADJUSTMENT - NEEDS ADJUSTED: Rs.10,05,000/- During the course of audit, it was noticed that an amount of Rs.10,05,000/- was drawn and paid towards advances to the following A.E.E.s for execution of works under 35% Genenral funds and SFC as detailed below. Sl. No.

Name of the Work Estimated Cost In Laks

Name of the

Scheme

Name of the Asst Engineer

Advance In

Lakhs 1 Maintenance and Repairs to

Sub - Division, Cheepurupalli

3.00 SFC A.Srinivasa Kumar,A.E., Cheepurupalli

1.50

2 Maintenance and Repairs to Sub - Division, Nellimarla

2.00 SFC B.Nageswara Rao, M.E.O, Bhogapuram

1.50

3 Maintenance and Repairs to Sub - Division, Bhogapuram

1.00 SFC T.Ramana , A.E.E., PIU, Bhogapuram

0.50

4 Maintenance and Repairs to Executive Engineer (PRI) Division Vizinagaram

2.00 SFC D.Sivaram, A.E., PR, Vizianagaram

1.00

5 Maintenance and Repairs to Executive Engineer (PIU) Division Vizinagaram


1.00

6 Imp. To the Toilet Blocks in Z.P. Premises


1.00

7 Maintenance and Repairs to Executive Engineer (PR) in Z.P.P,Compound Vizinagaram

2.00 35% ZPGF

D.Sivaram, A.E., PR, Vizianagaram

1.00

8 Maintenance and Repairs to Audit Office and Dy.Chief Executive Office at Vizianagaram

2.00 35% ZPGF


1.00

9 Maintenance and Repairs to Meeting Hall in(PR) in Z.P.P Compound at Vizianagaram

2.00 35% ZPGF


1.00

10 Maintenance and Repairs to Chief Executive Officer-s Office at Vizianagaram

2.00 35% ZPGF


1.00

Total 20.00 Total 10.50

But, the above said advances are not adjusted till the close of audit. Early action would need to be taken for the adjustment. Otherwise, there is every chance for the misappropriation of the above amounts.

(Para No. 10 of General fund of Z.P.of Vizianagaram district for 2009-10)

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8.14. ZP MACHILIPATNAM - ADVANCE GIVEN TO D.P.O., MACHILIPATNAM ON REIMBURSEMENT BASIS - REIMBURSEMENT PARTICULARS - NOT MADE AVAILABLE - NEEDS ACTION - Rs.20,00,000/- Voucher No.812/10.2009, Rs.20,00,000/-

During the course of audit on the accounts of General funds of Z.P.P., Krishna for the year 2009-2010, it was noticed that an amount of Rs.20,00,000/- was drawn from the 12th Finance Commission Grant funds of Z.P.P. Krishna and paid to the District Panchayat Officer, Krishna on reimbursement basis during the year under audit. As verified from the proceedings Rc.No.1818/2009/P2, Dt.10.10.2009 of C.E.O.,Z.P., Machilipatnam, it is noticed that, an amount of Rs.20,00,000/- was sanctioned as advance on reimbursement basis from the 12th Finance Commission funds for the year 2008-09 which was kept balance under Sanitation and paid to District Panchayat Officer, Machilipatnam by way of cheque during the year under audit. But the details of adjustment of Rs.20,00,000/- from the District Panchayat Officer, Krishna, Machilipatnam which was sanctioned on reimbursement basis was not made available to audit.

Necessary action would need to be taken to obtain the amount sanctioned on reimbursement basis from the District Panchayat Officer, Krishna and remitted to the 12th Finance Commission Grant.

(Para No. 65 of G.F. of Z.P.of Machilipatnam, Krishna district for 2009-10)

8.1.5. ZP MAHABOOBNAGAR- HOUSE BUILDING ADVANCE PAID TO CERTAIN EMPLOYEES - PRINCIPAL & INTEREST NOT RECOVERED -NEEDS RECOVERY RS. 75,64,865/- During the course of audit, it is noticed that an amount of Rs.75,64,865/- paid/sanctioned to ZP employees towards House Building Advances. The said amount of Rs.75,64,865/- is pending recovery since 1992 and most of the employees have been transferred to various places and retired from service. Such amounts were neither included in L.P.C nor recovered so far, which is highly irregular and violation of rules, Moreover the Executive Authorities, Deputy Chief Executive Officer and Accounts Officer of Zilla Parishad, Mahabubnagar have not taken any steps to recover the outstanding advances/balances. Therefore, Immediate action would needs to be taken to recover the outstanding House Building Advance amount of Rs.75,64,865/- from the person or persons responsible along with the penal interest and credited to ZP funds.

(Para No. 33 of General fund of Z.P.of Mahabubnagar district for 2009-10)

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8.2.1. MPP CHENNUR OF ADILABAD DISTRICT- ADVANCES PENDING ADJUSTMENT - RS. 1,45,793/- During the course of audit of MP Chennur of Adilabad District for the year 2009-10, it is noticed that the following advances were drawn and paid for the purposes noted against each. The advances were not adjusted by the end of the financial year. Action would need to be taken to recover the outstanding advances and to remit to the M.P. Funds early.

Sl No. Vr.No & Date Purpose Amount

1 14-7-09 GF Towards purchase of Cost of Ele Motor 21990 2 3-12-09 GF Towards purchase of Cost of Ele Motor 23000 3 3-2-2010 ACDP To wards Spl rep to road 20000 4 17-7-09 MPLAD Details Wanting Sri B. Sammaiah Cont. 37400 5 6-6-09 MPLAD F/R Road Sri. Laxmanreddy Cont. 43403 TOTAL 1,45,793

(Para No.4 of the AP of MP Chennur of Adilabad District for the year 2009-10 )

8.3.1. ATAMKUR GP OF MAHABOOBNAGAR - 12TH FINANCE FUND GRANTS – ADVANCES PENDING ADJUSTMENT – NEEDS RECOVERY Rs.70,000/-

During the course of audit for the year 2009-10, it was noticed that a total sum of Rs. 70,000/- i.e.,Rs. 25,000/- through Cheque no. 844535, dated 24-4-2009, and a sum of Rs.45,000/- through Cheque no. 844543, dated 10-06-2009 has drawn and paid as an advance for execution of 12th Finance Commission works. But, as per the conditions of the said scheme, amounts under the scheme has to be drawn only after completion of the entire process like recording in the M-book and recording of the Check measurement. But, in the said case advances drawn were not adjusted till the close of audit. It was further noticed, that objections were raised in Para Nos., 38 & 39 during the year 2008-09 regarding pending adjustment of an amount of Rs.30,000/-. The same is not adjusted during this year also.The non-adjustments within the time limit leads to misappropriation of funds.

(Para No. 33 of Atmakur GP of Mahaboobnagar District for the year 2009-10.)

8.3.2.G.Ps IN VISAKHAPATNAM DISTRICT- ADVANCES NOT ADJUSTED -NEEDS EARLY ACTION.

According to G.O. Ms. No 535 P.R.E & R.D. Dept, Dt:- 12-11-1991, the advances should be adjusted within (15) days from the date of drawl of advance. But the said advances were not adjusted till the close of audit and pending against them. During the course of audit of Gram Panchayats for the year 2009-10, it was noticed that the advances drawn towards execution of works are not adjusted till the closure of the audit. Such cases noticed in GPs., of Visakhapatnam District are given in the following table.

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Vr No & Dt Name of the GP Details of works Advance

amount Para No

000061/24-8-09, Chodavaram,

Construction of Culvert 26000 16

30-1-09 Construction of C Drain 19986

24-9-09 Tanikella Extension of pipe line 55000 16

30-11-09 Narasanna peta Construction of CC Drain 10000 16

25-11-2009 Keerada

Construction of Well plat forms

12532 3

25-11-2009 Extension of pipe line 70000

22-6-2009 Ravikamatham Construction of Panchayat Building 20000 5

9-4-2009 Lothugedda

Construction of Ringwell 12400 3

11-11-2009 Construction of Ringwell 25750

Total 251668

9. VIOLATION OF RULES

It was noticed in audit that in some cases the Rules / Government instructions for

incurring the expenditure from the funds of the Panchayat Raj bodies were violated either due to negligence or ignorance. In certain cases, the funds of the Panchayat Raj bodies were utilized for purposes other than the permitted ones under the Act / Rules. In GM No.96929/I&PR/A1/2003-1 dated 12-09-2003, Government 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 Panchatat Raj Institutions, it was noticed that huge expenditure was incurred violating the above orders. Such inadmissible expenditure was pointed out in the Audit Reports.

A Consolidated Statement – 9 (9) showing audit objections on Violation of Rules is appended to the Report from which it could be seen that an amount of Rs. 5865.21 lakhs was pointed out in 68649 audit paras. 9.1.1. ZP VISAKHAPATNAM - REPAIRS TO VEHICLE - EXPENDITURE INCURRED MORE THAN THE LIMIT - NEEDS ACTION :Rs. 65,387 /- As verified from the Cash Book, it is noticed that the expenditure was incurred towards the repairs of Vehicles of Chairman and C.E.O of Z.P. as detailed here under. But as per Govt memo No: 12261 / Phase IV 180-12, Progs Dt: 31-3-1992, the expenditure on repairs to vehicles shall be incurred after issue of a certificate from the Govt Mechanical unit or the Transport Officer of the concerned before and after repairs of the vehicles. But the following payments were made without such certificate. Hence the expenditure thus incurred could not be admitted in audit and held under objection. Thus loss if any in this regard would need to be recovered from the person’s responsible and made good to General Funds.

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Vr No Details of expendirue Amount

327/ 9-09 Paid to M/s Manikanta Up Holesty works VSP towards the cost of seat covers & seat cushions & floor mats AP 31 AT 6076

10500

361/ 10-09 Paid to Automatic manufacturing, Ltd towards replacement of parts AP 31 C 8279

15020

784/ 2-2010 Paid to M/s SRMT Ltd., VSP towards cost of spares Repair AP 31 AT 6076

15464

192/ 7-09 Paid to M/s SRMT Ltd VSP towards spares to AP 31 AT 6076

7742

409 Paid to M/s SRMT Ltd VSP towards spare parts and Tata Safari AP 31 6076

16661

TOTAL 65387

(Para No. 18 of General fund of Z.P.of Vishakapatnam district for 2009-10) 9.1.2. Z.P. VIZANAYAGARAM AUCTION RELATED TO WEEKLY SHANDY - HEAVY AMOUNT PENDING DISTRIBUTION FROM Z.P., TO M.P.P., KOTHAVALASA, & GRAM PANCHAYAT, KOTHAVALASA - VIOLATION OF 73rd (1992) CONSTITUTIONAL AMENDEMENT: Rs.36,18,683/- As seen from the records, the auction related to Weekly Shandy, Kothavalasa Notified is done since 15 years i.e., from the operation of A.P.P.R.Act, 1994. As per the provision the auctioned amount shall be distributed among Z.P., M.P.P.& G.P., in the ratio of 25:37.5:37. 05 respectively vide G.O.Ms.No.628 PR & RD., dt.23-9-1995. Though the auction amount was collected periodically since 15 years, the same was not distributed to Mandal Parishad and Gram Panchayat. No record is being maintained regarding the distribution. Basing on the available information in the records produced, the following is the receipt for the last few years and shares to be distributed as per Act.

Year Amount collected by

Z.P.,

Shares to be distributed as per Act. Mandal Parishad Gram

Panchayat 2001-02 & 02-03 1050389 393895.88 393895.88 2003-04 839749 314905.88 314905.88 2004-05 481838 180689.25 180689.25 2005-06 448000 168000.00 168000.00 2006-07 467000 175125.00 175125.00 2007-08 501500 188062.50 188062.50 2008-09 521000 195375.00 195375.00 2009-10 574935 215600.63 215600.63 TOTAL 4884411 1831654.14 1831654.14

50

Suitable steps may be taken for proper maintenance of records, so as to arrive at the correct amounts to be distributed among the Z.P.,M.P.&G.Ps., and arrangements may be made for transfer of amounts at an early date. If this practice continues, the M.P., and G.P. will be starved of funds and they may proceed to the Court of law for the above amounts and the Z.P will be overburdened to pay the amount at once.

(Para No.12 of General fund of Z.P.of Vizianagaram district for 2009-10) 9.1.3. ZP- VIJAYANAGARM – DELAY IN EXECUTION OF WORK - AFTER GETTING TECHNICAL SANCTION - VIOLATION OF RULES. Vr.No.173/5/9/09 Rs.1,16,468/- Name of the work : Laying of CC road in SC colony of SSR Puram Estimate Value :: Rs.1.5 lakhs. M.B.No.3579/B During the year, the work -Laying of CC road in SC colony of SSR Puram was executed and the payment made in the above voucher to the executant Smt. K. Sai Ramanamma, President, Pragathi Mahila Podupu Sangam, SSR Puram. As verified from the connected registers, it was noticed that the administrative sanction was given on 25.5.2006 and the Technical sanction on 29.5.2006. The work was sanctioned under 15% SC Earmarked funds for the year 2005-06. But, the agreement was made and the work order was issued on 9.2.2009, which is against the rules. As verified from the working sheet, the rates were adopted from 2008-09 SSR and increased comparing with the Original estimate, which is against the norms and rules. According to para 102 of the A.P.P.W.D.Code as amended in the G.O.Ms.No.242, PWD, Dated: 11.2.1966, revised administrative approval is necessary if the expenditure incurred exceeds the amount of Technical sanction i.e., original Technical sanction. Further, according to para 136 of A.P.P.W.D.Code, the sanction to an estimate lapses on the last day of the year. As the Technical sanction was obtained in 5/06, it lapses on 31.3.2007.

(Para No.24 of General fund of Z.P.of Vizianagaram district for 2009-10) 9.1.4. Z.P PRAKASAM - SHEEP INSURANCE PROGRAMME - AMOUNT RELEASED TO JOINT DIRECTOR, (AH), ONGOLE -NOT FULLY TRANSFERRED TO NEW INDIA ASSURANCE COMPANY LIMITED, ONGOLE – VIOLATION OF THE GOVERNMENT ORDERS. An amount of Rs.14,00,000/- was released by Director of Animal Husbandry A.P.Hyderabad vide Roc.No.12913/AII/A3/2008, Dt 31-5-08 and the same was drawn and deposited to the P.D account of CEO, Z P, Ongole on 31-3-2009 by the JD AH, Ongole, as the Government had delegated the powers and functions of Animal Husbandry Department to ZPs (PRIs) in the State through G.O.Ms.No.106(AH) DD & F (AH.I), Dt.13-12-2007. The Joint Director, Animal Husbandry, Ongole has requested the CEO, ZP, Ongole to release Rs.14.00 lakhs in favour of the Divisional Manager, New India Assurance Company Limited, Ongole vide Letter Roc No.1575/C/2008, dated 22-10-

51

2009. Hence the said amount was drawn from P.D account of CEO, Z P, Ongole vide voucher No.447, dated 28-1-2010 and sent through Cheque.no.010014, dated 28-1-2010 to the Joint Director, Animal Husbandry, Ongole towards implementation of Sheep Insurance Programme vide Proceeding RC No.P2/1401/2009, dated 16-12-2009 of C E O Z P Parishad, Ongole. The Executive Authority did not obtain the utilization particulars from the Joint Director, Animal Husbandry, Ongole and inquiries revealed that out of the said Rs.14.00 lakhs, the Joint Director, Animal Husbandry, Ongole sent only Rs.5.00 lakhs to the Insurance Company and retained Rs.9.00 lakhs with him in the bank account consequently locked up Government funds with out any use. Hence the Executive Authority would need to ascertain the factual position and take appropriate action.

(Para No. 6(5) of General fund of Z.P.of Prakasam district for the year 2009-10) 9.1.5. ZILLA PARISHAD ONGOLE- NON CONDUCTING OF SAND AUCTION AFTER LAPSE OF LEASE PERIOD - HUGE AMOUNT FORGONE BY THE INSTITUTION - NEEDS ACTION. While inviting sealed tenders and applications for public auction to lease out the right of quarrying for sand in the following areas for the period up to 31-3-2010 (for two years up to 31-3-2009 & 31-3-2010), the sand auction was conducted during the year 2008-09. The said notification for calling sealed tenders was published in the following news papers. An amount of Rs. 2,15,09,499/- was realized for two years ending with 31-3-2010. Even though the lease period was lapsed by 31-3-2010, no auction was conducted in the following areas for the year 2010-11. As such huge amount was forgone to Zilla Parishad. As verified from the file no correspondence was done with Mines & Geology Department by Executive Authority in this regard. The reasons were not explained to audit as to why the applications are not invited before the end of lease period as per rules. The Executive Authority had not given priority for realization of amount in this regard. It was observed that the register which shows conducting of sand auctions was also not maintained in Zilla Parishad. The details of the sand auction conducted in the year 2008-09 is shown in the given table.

Sl. No.

Date of Auction

Name of the Area/Mandal

Amount Realized

from 7/2008 to 31-3-

2010

Date & Name of the News paper

1. 30-10-2008 Jillelamudi(Vi), Zarugumalli (V)

1950000 7-10-2008of Deccan Chronicle & Sakshi

2. 04-04-2008 Kothapatnam Mandal 4540000 3. 04-04-2008 Chirala Mandal 1600000 4. 04-04-2008 Vetapalem Mandal 3990000 5. 04-04-2008 Chinaganjam Mandal 7899999 6. 30-10-2008 Adi Andhra palem(HO)

AAtmakuru(V) Ulavapadu(M)

1529500 7-10-2008of Deccan Chronicle & Sakshi

2,15,09,499

(Para No. 5(9) of General fund of Z.P. of Prakasam district for 2009-10)

52

9.1.6. ZP PRAKASAM - SANCTION OF H.B.A. – NAMES OF SOME OF THE LOANEES NOT ENTERED IN THE POSTING REGISTER - IRREGULAR-Rs.6,17,450/- A) During the course of audit of General Fund of Zilla Parishad, Prakasham district for the year 2009-10, it was noticed that the Posting register of H.B.A. was prepared basing on the H.B.A. out standing register, the following 22 loanee names who are due to be retired were not entered in the posting register. As seen from the register, it was noticed that a sum of Rs.6,17,450/- was due from the 22 loanees.

Sl. No.

Name of the Individual

Designation and place of working

Principal Rs.

Interest Rs.

1 M. Gopala Krishnaiah MPDO Vetapalem (Retired)

- 858

2 U.J.Narasimha Rao SA Retired - 1734 3 G.Kaleb SA MP, Tripuranthakam 56006 - 4 P.Pardhasaradhi Supdt. MP, Inkollu 27555 - 5 P.S.R. Mohan rao MPDO, MP, J.Pangulur 3300 - 6 M.Veeraiah SA, PR D, Parchur 1500 10469 7 Sk.Lalshareef Driver - 8075 8 R.V.Rami Reddy MPDO, MP Chirala - 48287 9 D.Hari Prasada Reddy Supdt. ZP, Ongole - 3576

10 A.Kameswara Rao MPDO J.Pangulur - 917 11 K.Raja Rao EORD Chirala - 26703 12 M.Guravaiah Attender, PR S.D.

Addanki 15000 -

13 O. Bharathi RA ZPHS Martur - 21823 14 K. Prabhudas JA ZPHS, Divalaravur - 16832 15 E.Veera Raghavulu SA - 10908 16 S.Jayamma Attender EEPR Ongole - 37000 17 T.V.Subba Rao RA - 18 M. Chandra Reddy JA ZP Ongole - 14737 19 P. Anasuya SA MP Maddipadu - 38205 20 M.Prasada Rao SA MP VVPalem - 125488 21 M.Venkateswarlu Supdt. MP Ongole - 27245 22 K. Prakasa Rao EO (PR & RD) MP

Donakonda - 121232

Total Rs. 103361 514089

It was observed that no steps were taken to recover the amounts due, towards

H.B.A. from the loanees by the Executive Authorities even though the objection was raised in the previous year, Loss, if any caused would need to be recovered from the pensionary benefits of the employees concerned. B) As per G.O.Ms.No.401 Finance & Planning Dept., Dt.14-11-1990, recovery of the advances including interest due from the employee who died while in service could be written off provided that the death did not occur within a period of one year from the date of drawal of loan.

53

It was also observed that 6 loanee names were not entered in the posting registers who expired while in service. An amount of Rs.1,30,517/- was pending recovery towards H.B.A. to the institution. As per the above G.O. the balance of outstanding amount as on date of the death may be written off. But it was not explained in audit that whether the installment of loan was recovered from the loanees till the preceding month of death. If any loss caused to the ZP due to improper maintenance of registers would need to be recovered from the persons responsible and made good to the ZP funds immediately.

(Para No. 1(3) of General fund of Z.P.of Prakasam district for 2009-10)

9.1.7. ZP EAST GODAVARI - APPORTIONMENT OF FERRY AUCTION AMOUNTS MADE AT PRE REVISED RATES – VIOLATION OF RULES - NEEDS ACTION.

As verified from the records and connected files, it was observed that the apportionment of auction proceeds realized in the following ferry points located in East Godavari District during the period was made at pre - revised rates at percentages of 37.5%, 37.5% and 25% among ZPP, MPPs, GPs respectively instead of at a revised rate of 25%, 50% and 25% prescribed by Government in G.O.Ms.No.255 PR & RD department Dt.2.8.2001. Apportionment of auction proceeds in respect of ferry points at pre-revised rates has resulted in excess apportionment to ZPP and short apportionment to MPPs which is irregular and as such these Mandal Parishads have forgone their legitimate revenue due to short apportionment. Hence the authorities shall take necessary steps to revise the apportionment rates as per the ratio prescribed in Government orders and release the due shares as above.

1. Madhavaipalem Ferry in Sakhinetipalli Mandal 2. Kotipalli Ferry in K.Gangavaram Mandal 3. Devipatnam Ferry in Devipatnam Mandal

(Para No.11 of General fund of Z.P.of East Godavari district for 2009-10)

9.1.8. ZP EAST GODAVARI- ESTABLISHMENT - DISCIPLINARY PROCEEDINGS - PAYMENT OF SUBSISTANCE ALLOWANCE TO SRI K..CHATERJEE, JA (UNDER SUSPENSION) - IRREGULAR - NEEDS ACTION As verified from the pay bill vouchers, it was noticed that an amount of Rs.45,130/- was paid to Sri K.Chatargee, Junior Asst., for the period from 1.4.2009 to 31.3.2010 towards subsistence allowance while he was under suspension. The individual was dismissed from service w.e.f. 24.3.2009 as per the Progs.No.D4/4149/06 Dt.22.7.06 on misappropriation charges. The individual filed a writ petition in W.P.No.13902/2003 Dt.29.2.2005 in High Court and Honorable High Court directed the Chief Executive Officer to revoke the dismissal orders passed earlier as the said orders were passed unilaterally without giving reasonable opportunity to the accused. It was also directed to enquire into the matter afresh duly following the procedure stipulated and allowing opportunity to hear the contention of the accused.

54

Accordingly after a lapse of two years of the direction pronounced by the Honorable High Court, the Chief Executive Officer, Zilla Parishad, Kakinada has issued orders in U.O.Note RC.No.D4/1466/198 Dt.10.1.2007, appointing Dy.C.E.O as Enquiry Officer with an instruction to enquire in to the matter and submit fresh enquiry report duly considering the points raised in the writ petition. As per the instructions of Government in U.O.Note.19952/SEC/2006 GAD (Services- C) Dt. 27.4.2000, the disciplinary proceedings have to be completed with in three months as per the schedule for different events. But the same was not followed and acted upon to finalize the disciplinary proceedings. Due to non-finalization of disciplinary proceedings on misappropriation charges having prima-facie recorded evidence available, the individual was continuously allowed to be paid the subsistence allowance which is not recoverable if the final orders are issued conforming the earlier punishment. Further it was noticed, that the Enquiry Officer has submitted his report to the Disciplinary Authority concluding that the charges framed against are proved. Based on the enquiry report, it is open to the Disciplinary Authority to initiate final action on the Delinquent Officer. But it was addressed to the Commissioner of Panchayat Raj along with enquiry report for action. The Commissioner of the Panchayat Raj in Memo.No.20750/1-1/98 Dt.1.12.2008, directed the Chief Executive Officer, Zilla Parishad, Kakinada to conduct a fresh enquiry as earlier enquiry report is quite slipshod. The inaction of the administration in this regard gave scope to the charged officer to approach the Hon’ble A.P. Administrative Tribunal for seeking reposting orders and obtained orders for consideration of the case. Further the Commissioner of Panchayat Raj, A.P., Hyderabad has issued orders in Memo.No.3534/VIG-IV/A2/2004-09 Dt.22.12.2008 to conclude the disciplinary proceedings immediately. But till date, no action was taken to conclude the disciplinary proceedings but issued reposting orders to the individual who is facing grave misappropriation charges. Hence early action would need to be taken to finalize the disciplinary proceedings at the earliest. The loss, if any caused due to inaction established in future course would need to be recovered from the person or persons responsible.

(Para No. 11 of General fund of Z.P.of East Godavari district for 2009-10) 9.1.9. ZP KADAPA - PART FINAL WITHDRAWALS SANCTIONED - WITHOUT COMPLETION OF 20 YEARS OF SERVICE OR WITHIN TEN YEARS OF SERVICE BEFORE THE DATE OF HIS RETIREMENT IS IRREGULAR- Rs. 6, 10,000/-

During the course of audit for the year 2009-10, it was noticed that an aggregate amount of Rs 6,10,000/- was drawn and paid towards part final withdrawals to the employees. As per rule 15- A as amended in G.O.MS.No.33 Fin. & Plg(FW.Pen-I) Dept., Dt: 19-2-1981, Part final withdrawals may be sanctioned by Competent Authority to the subscriber at any time after completion of 20 years of service or within 10 years before the date of his retirement on superannuation. As verified from the PF advance part final withdrawals applications, it was noticed that, without observing the service/minimum service required PF withdrawals were

55

allowed which is irregular and violation of the PF rules. Hence, necessary action may be taken against the Drawing and Disbursing Officers concerned for misusing the drawing powers. ANNEXURE

Sl. No

Name of the employee

& Designation

Name of the Institution PF No. Vr. No.

Date Date of

appointment Amount

Rs.

1 P,Nagi Setty Driver RWS Sub Kadapa - 106/4.09 15-11-1990 10000

2 L.Chandramma Sweeper

Dy PR Sub Muddanuru 15020 62/4.09 1/1/2000 15000

3 S.Chennaiah SGT MPPS Bucham Palli 13305 1081/10.09 3/11/1989 31000 4 K.Pandu SGT MPPS Neelapuram 10614 303/5.09 27-10-89 55000

5 P.Narayana SGT MPUPS

Thummalapalli 12797 350/6.09 28-9-1989 31000

6 B. Radru Naic SGT MPPS Boyapalli 13874 24/4.09 7/11/1989 14000

7 Y.Hemalatha SGT MPP Adivikampalli 11292 48/4.09 25-10-1989 100000

8 D.Jayachandra SA ZPHS

Thimmasamudram 11779 636/7.09 21-9-1989 65000

9 P.Venkatasubbaiah SA ZPHS Settipalli 12512 774/8.09 20-9-1989 43000

10 R.Venkataramana SA ZPHS Masapeta 13176 1120/7.09 8/11/2009 36000

11 S.Jayaratham ZPHS Kottapalli 11792 589/7.09 21-9-1989 120000

12 M.Reddy Naic LFL HM MPPS Balijapalli 13956 262/5.09 21-9-1989 75000

13 P.Ramaiah WM RWS Sub Kadapa 14679 1141/10.09 18-4-1992 15000

Total 610000

(Para No. 21 of General fund of Z.P.of Kadapa for 2009-10) 9.1.10. ZP MACHILIPATNAM -PUBLICATIONS - ADVERTISEMENTS NOT ROUTED THROUGH DISTRICT P.R.O. - OTHER DEFECTS - VIOLATION OF RULES Rs.2,24,717/- During the course of audit, it is noticed that an amount of Rs.2,24,717/- was paid towards advertisement charges for publication of sand auction notices and advertisements of developmental programmes in the following vouchers.

Sl. No. Vr. No., and Date Amount 1 230/ -05-09 114640 2 843/ -10-09 13695 3 858/ -10-09 51382 4 995/ -12-09 45000

TOTAL 2,24,717

56

As per the Government orders issued vide G.O. Ms.No.572 TGA (CPR) Dept. dt.10-08-1999 ,G.O. Ms.No.679 PR & RD dt.10-02-1999 and G.O. Ms.No.37 I & PR Dept. dt.28-1-1994, all the advertisements by the departments should be made through the District Public Relation Officers and the bills shall be released only on certification by them. Contrary to the above rule position, it was observed that the Executive Authorities have issued advertisements / Notifications for publication of Sand Auction notices and the developmental activities of the Zilla Parishad and paid without certification of the District Publication Officer, which is against to the rules issued. Therefore, the above expenditure incurred could not be admitted in audit and held under objection.

(Para No. 28 of G.F. of Z.P.of Machilipatnam, Krishna district for 2009-10) 9.1.11. ZP KAKINADA, EAST GODAVARI DISTRICT - SAND AUCTION INTEREST AMOUNT MIS-APPROPRIATED BY THE THEN CHIEF EXECUTIVE OFFICER - PART OF THE MIS-APPROPRIATED AMOUNT REMITTED TO ZILLA PARISHAD GENERAL FUNDS - INTEREST AMOUNTS NOT APPORTIONED TO PANCHAYAT RAJ INSTITUTIONS AND POOLING UP OF INTEREST IN TO A SEPARATE SAVINGS BANK ACCOUNT - CONNECTED BANK PASS BOOK AND EXPENDITURE DETAILS NOT PRODUCED AND NOT ACCOUNTED FOR IN THE GENERAL FUND ACCOUNT - IRREGULAR - NEEDS INVESTIGATION. Rs. 62,63,647/- In spite of the objection raised at para No. 15 of the Zilla Parishad General Fund Audit Report for the year 2007-08, on misappropriation of the interest amounts accrued on the Sand Auction FDR-s up to a tune of Rs. 53,05,847/- the then Chief Executive Officer, Sri D. Nagesh Babu, has remitted a part amount of Rs.34,63,647/- to the Zilla Parishad General Funds through Challan No.14817 Dt.24.6.2009. As verified from the Cash book for the year 2009-10, In Vr. No. 243, Dt. 27-6-2009 an amount of Rs. 62,63,647/- including the misappropriated amount remitted by Sri D. Nagesh babu, Ex.C.E.O., was drawn from the Zilla Parishad General Fund as being the amounts were related to Sand Auction interest funds and deposited in the separate savings account in SBH, ZP branch, Kakinada in account No.6209993412 with an opening balance of Rs. 62,63,647/-. The balance available in that account in December, 2010 was Rs.26,18,263/-, but the details of expenditure incurred from the bank account to a tune of Rs.36,45,384/- were neither accounted for in the General Fund Cash book nor General Fund Annual Account for the year under report. The Cash Book and Pass Book though called for, the authorities have not produced the same to verification in audit. As per the statutory provision, the amounts realized from the sand auction proceeds would need to be apportioned among Zilla Parishad, Mandal Parishad and Gram Panchayats in the ratio of 25:50:25 respectively. Further the amounts relating to sand auction form part and parcel of ZP General Funds and they should be lodged in the Govt. Treasury. But the sand auction amounts received for apportionment to other PRIs were not properly apportioned on time and kept in FDRs with an intention to earn interest and to draw the accrued interest conveniently, which is highly irregular.

The said financial irregularities lead to misappropriation of funds occurred as a result of clear violation of statutory provisions and executive instructions in vogue. Hence a detailed investigation needs to be ordered immediately to verify whether all the Bank Accounts are accounted for in the Annual Account of Zilla Parishad General Funds since all the connected records were not made available to audit besides initiating disciplinary action on the person or persons responsible as per AP. CCA Rules, 1991 at the earliest.

(Para No. 18 of General fund of Z.P.of Kakinada district for the year 2009-10)

57

9.1.12. ZP MACHILIPATNAM-PURCHASE OF NEW VEHICLE - BAN IMPOSED BY THE GOVERNMENT - VIOLATION OF RULES - RATIFICATION ORDERS FROM THE GOVERNMENT - NOT PRODUCED - IRREGULAR NEEDS ACTION Rs.11,49,350/- During the course of audit of General funds of Zilla Parishad, Krishna, Machilipatnam for the year 2009-10, it was noticed that a total sum of Rs.11,40,350/- was drawn from the Z.P. General funds and paid towards purchase of New vehicle .

Sl. No.

Voucher No./date

Amount in Rs.

Details of purchases made

1 509/7.2009 800070 Cost of Car No. AP077 HT 0005 to Z.P. Chair person

2 525/ - 278080 Life tax and spare parts to New vehicle.

3 526/ - 5460 TR charges.

4 527/ - 31230 Spare parts

5 494/ - 13250 Car DVD

6 901/11.2009 21260 Car DVD

Total 1149350

. But in Govt.Memo.No.1320/659/A2/W & M) 2007 of Finance (W & M) Department, dated 11.12.2007, Government imposed ban on purchase of New vehicles by the Government Departments/Government affiliated organizations. It is not known whether the Z.P. obtained orders from Government for purchase of a New vehicle or not as the connected files were not produced to audit. Further, the Government vide G.O.Ms. 5 F & P Dept., Dt.4.1.1994 prescribed guidelines for hiring of vehicles instead of purchasing. Thus the reasons for purchasing a New vehicle instead of getting on hire basis, without the orders of Government is highly irregular and as such the entire expenditure incurred for Rs.11,49,350/- is held under objection.

(Para No. 44 of General fund of Z.P.of Machilipatnam,Krishna dist. for 2009-10)

9.2.1. ADVERTISEMENT PUBLISHED ON DEVELOPMENT ACTIVITIES WASTEFUL EXPENDITURE – NEEDS ACTION.

Expenditure is being incurred towards publicity charges in the media on developmental activities in some of the Mandals. As there is no provision in the A.P. Panchayat Raj Act to incur such expenditure the same is treated as irregular and wasteful expenditure as it is neither incidental to administration nor beneficial to the public in the Mandal Parishad area. 71 audit paras involving a total amount of Rs.18.79 lakhs were raised under Wasteful Expenditure in the Mandal Parishads in the State.

9.3.1. GRAM PANCHAYATS - ANNUAL ACCOUNTS NOT PREPARED IN NEW

58

FORMATES – IRREGULAR. The Government have issued instructions to all local bodies to submit the Annual Accounts for the year 2009-10 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 2009-10, it was noticed that action was not taken to prepare and furnish the Annual Account as stated in the above Government Orders. 9.3.2 GRAMPANCHAYATS FUNDS – D.L.P.OS OFFICE EXPENDITURE MEET FROM THE GP FUNDS – IRREGUALR – NEEDS RECOVERY-Rs.27,980/-

During the course of Audit for the year 2009-10, it is noticed that an amount of Rs 27,980/- was drawn and paid towards Cell phone and Electricity charges of D.L.P.Os Offices as detailed below. But, it is irregular to incurr expenditure from GP funds for the above purpose as per Section 75 (1) of A.P. P.R. Act 1994. Hence, the said amount may be recovered from the person or persons responsible and made good to GP Funds.

Name of the G.P & Dist.

Vr.No & Dt. Details Amount Para No.

Luxettipet, Adilabad 79/12-12-09 D.L.P.O, Cell Phone Charges 685 8 Luxettipet, Adilabad 80/20-12-09 D.L.P.O Kakinada Office

current chares 4395 8

Narsapur, Adilabad 28 / 25-6-09 Jeep Oil charges of D.L.P.O Paderu

14000 11

Atchampeta, E.G.dist.

126/12-09 Stationary (RocNo 1188/2009-A7/Dt: 5-12-09

5000 19

Atchampeta, E.G.dist 152/17-2-10 Telephone Roc No. 311/2009/A1 Dt: 19-1-10

3900 19

Total 27980

9.3.3. GRAM PANCHAYATS - MOTOR REPAIRS – PAYMENT MADE WITHOUT CERTIFICATION BY THE ENGINEERING AUTHORITY – IRREGULAR – NEEDS ACTION. RS. 1,80,673/-

During the course of audit for the year 2009-10 of Gram Panchayat, an amount of Rs. 1,80,673/- was incurred towards Motor repair charges as detailed below. But, the said repair works were not certified by the AERWS as the repair works exceeding Rs. 500/-should be certified by the AEPR in case of general repairs and by the AERWS in case of Water repair works. Hence, the expenditure thus incurred could not be admitted in audit and held under objection. The loss if any caused would need to be recovered from the person or persons responsible and made good to GP Funds

Name of GP,Dist. Vr.No.& Dt Details Bill No./Dt Amount Para No.

Mylavaram, Krishna 21/28-5-2009 - - 25430 25,43018 Mylavaram, Krishna 66/30-7-2009 - - 28610 18 Mylavaram, Krishna 83/7-9-2009 - - 5655 18 Mylavaram, Krishna 118/

19-11-2009 - - 36060 18

Mylavaram, Krishna 210/30-1-2009 - - 23130 18 Ankushapur, 8690690/ Om 222/ 10-4-09 5500

59

R.R.Dist. 15-7-2009 Venkateswara Electricals

14

Ankushapur, R.R.Dist.

- Do - - Do - 224/ 20-5-09 6000 14


- Do - - Do - 225/ 25-4-2009 2288 14


- Do - - Do - 223/24-6-2009 6400 14

Ankushapur, R.R.Dist.,

- Do - - Do - 294/ 3-4-09 5300 14


886520/ 15-11-2009

- Do - 218/ 20-9-09 6600 14

20Ankushapur, R.R.Dist.

- Do - - Do - 273/ 21-9-09 6540 14


886528/ 12-1-10

- Do 238/ 20-9-09 5450 14


- Do - - Do - 229/ 18-12-09 5500 14


- Do - - Do - 243/ 18-12-09 3010 14


- Do - - Do - 242/ 18-12-09 5850 14


- Do - -Do - 157/ 4-1-10 3350 14

Total 180673 9.3.4. GRAM PANCHAYATS RECEIPTS – AMOUNT COLLECTED THROUGH MISCELLANEOUS RECEIPTS - AMOUNTS INCURRED DIRECTLY FROM THE COLLECTIONS – IRREGULAR – RS. 2,54,104 /-

During the course of audit for the year 2009-10 of Gram Panchayats, it is noticed that the amounts collected through Miscellaneous receipts were brought to Cash Book and an amount of Rs. 2,54,104 /- was paid towards Electricity Consumption charges from out of the collection amounts without remitting the collections to Gram Panchayat Funds as per Sec 268( I) ((2) and rules issued in G.O.Ms. No .30 Panchayat Raj Dt: 20-1-1995 thereby violating the prescribed Government Rules.

Name of the GP,Dist. Details of expenditure Vr No & Dt Amount Para No.

Mylavaram,Krishna Electricity consumption charges

- 199742 19

Jagapathi nagaram, E.G.Dist Purchase of lime 64/ 23-3-10 19000 16 Jagapathi nagaram, E.G.Dist Purchase of Bleaching 65/ 23-3-10 30600 16 Jagapathi nagaram, E.G.Dist Purchase of Public

Health Material 66/23-3-10 5362 16

Total 254704

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9.3.5. PADERU GRAM PANCHAYAT OF VISAKHAPATNAM DISTRICT - UTILIZATION OF 12TH FINANCE COMMISSION FUNDS – EXPENDITURE INCURRED AGAINST GUIDELINES .

As per G.O.MS. No 33 PR & RD Dt; 3-2-2006 and as per instructions of the Commissioner Panchayat Raj issued in Rc No. 10669/CPR /RE/J1/2005 Dt: 8-2-, the funds allocated under 12th Finance Grant has to be utilized for maintenance of Protected Water Supply schemes and augmentation of sanitation including construction of drains. The funds should be utilized based on the Administrative and Technical sanction duly recording in the M-Books and submit to audit. In the above circumstances, the expenditure incurred as mentioned below is a clear violation of guidelines under 12th

Finance Commission Grant. Name of GP,Dist.

Voucher No & Dt Amount Gist of the para

Para No.

Paderu, Vishakapatnam

10/14-9-2009 100000 Purchase of Electrical goods from Sai Agencies, Payakaraopeta

2


11/31-12-2009 50000 Purchase of Electrical goods from Avatar Enterprises, Gopalapatnam

2


14/11-1-2010 15000 Publication charges for conveying new year and Sankranthi Greeting.

2


31/31-12-2009 50000 Purchase of Elecatrical goods from Avatar Enterprises, Gopalapatnam

2

Hukum Peta,Vishakapatnam

- 20000 Bills,files not produced 8

9.3.6. GRAM PANCHAYATS - EXPENDITURE ON SPECIAL ADVERTISEMENTS –VIOLATION OF RULES– AMOUNT HELD UNDER OBJECTION RS. 1,86,468 /- As prescribed in G.O.Memo.No.60497/Progs IV/95, PR&RD Department, dated 14-08-1996, Government has imposed ban on the advertisement charges. But the Competent Authority has incurred huge amounts towards advertisement charges to advertise developmental activities of the GPs. during the year 2009-10. As per Govt Cir Memo No: 929 I & PR Dt: 12-9-2003, incurring the expenditure towards advertisement charges directly without scrutiny by the I&PR is irregular. Hence, the expenditure could not be admitted in audit and held under objection. The loss would need to be recovered from the person or persons responsible. Such few cases are shown in the given table as an example. Sl. No.

Name of the G.P & District Vr.NO.& Dt Details of

Advertisement Amount

paid Para No.

1 Panasapadu East Godavari 61/ 10-7-09 Sri Jagathi Publications

10030 25

2 Panasapadu East Godavari 123/24-10-09 Muvvalu Telugu Daily News Paper

7000 25

3 Yendapalli, East Godawari 1/ 2-6-09 AGA Publication Ltd. 15000 10

61

Hyderabad 4 Yendapalli, East Godavari 2/5-12-09 Add for Tributes 3000 10 5 Ibraheem patnem, Krishna 000940/21-5-09 Prajasethi Sakthi 13000 9

6 Ibraheem patnem, Krishna 002875/15.11.2009 EEnadu 22000 9

7 Ibraheem patnem, Krishna 003312/11.01.2010 Andhraprabha 15300 9 8 Ibraheem patnem, Krishna 00318/18.01.2010 Pradhinidhi ,Telugu

vaarapatrika 15000 9

9 Ibraheem patnem, Krishna 004202/1902.2010 Vaartha 15000 9 10 Ibraheem patnem, Krishna 004209/23.02.2010 Prajaparishad colony 13838 9 11 Ibraheem patnem, Krishna 003310/26.12.2009 Prajasethi 12500 9 12 Ibraheem patnem, Krishna 824268/16.07.09 Prajasethi 227052 11000 14 13 Ibraheem patnem, Krishna 82/6.09.09 EEnadu227052 16800 14 14 Aditya Naga, Medahr 49740/ 2-11-2009 EEnadu227052 17000 14

Total 186468

9.3.7. GRAM PANCHAYATS - PURCHASE OF ELECTRICAL GOODS, BLEACHING POWDER AND OTHER SANITARY MATERIALS – EXCESS EXPENDITURE – IRREGULAR .

As per the orders issued in Cir.Memo.No.40183/Pts-IV/2002-03,Dt.31-7-2003 of PR & RD, not more than 15% of the General Revenue of the Gram Panchayat shall be utilized for purchase of electrical goods, bleaching powder and sanitation materials. But in deviation to the said orders, more than 15% of the general revenue of the G.Ps was spent for purchase of electrical goods and sanitation material during 2009-10 as shown below.

Name of the GP,Dist. Income of the GP

Permissible 15 %

amount

Amount spent on electrical

goods

Excess paid

Para.No.

Yenkapally,R.R.Dist. 371444 55717 288176 232459 6 R.B.Puram,Srikakulam 1506906 226036 345687 119651 25

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 within a prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non adherence. The deductions like IT Seignorage Charges and Profession Tax normally made from work bills / pay bills 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.m..under Sec.201(1)(a) of IT Act. In many cases the Income Tax was not recovered in 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.

62

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.

As per G.O.Ms.No.331 Industries and Commerce (M.I) Dept. dt.21.06.2000, Seigniorage 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. It is further noticed that the deductions made towards Profession Tax from the pay bills of employees were 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 occurred.

A Consolidated Statement – 9 (10) 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. 2779.29 lakhs was pointed out in 27089 audit paras.

10.1.1. ZP SRIKAKULAM - NON-REMITTANCE OF DEDUCTIONS FROM THE WORK BILLS - NEEDS EARLY REMITTANCE RS.11,99,099/-

An amount of Rs.31,73,222/- was recovered from the work bills towards Seigniorage Charge, Income Tax, VAT, N.A.C, C.M.Relief Fund and Quality Control etc., out of which only an amount of Rs.19,74,123,- was remitted to the concerned Departments leaving a balance of Rs.11,99,099/- at the closure of the Financial year as shown below.

Sl. No.

Details of Recovery Amount Deducted

(Rs.)

Amount Remitted

(Rs.)

Balance (Rs.)

1 Seigniorage Charge 918371 635914 282457 2 Income Tax 829711 569101 260610 3 V.A.T. 1048357 705409 342948 4 N.A.C. 93248 63699 29549 5 CMRF 15 0 15 6 Q.C 24546 0 24546 7 Labour cess 258974 0 258974

Total 3173222 1974123 1199099

Therefore, early action would need to be taken to remit the balances to the

concerned Heads of Account immediately.

(Para No.38 of General fund of Z.P.of Srikakulam district for the year 2009-10)

63

10.1.2. ZP VIZIANAGARAM- IRREGULARITIES IN LOAN RECOVERIES - LOSS TO Z.P.FUNDS: Rs. 47,581/- During the course of audit, it was noticed that the following employees have not paid their monthly installments for the advances taken by them. The details of the premium to be paid already paid and balance to be paid are shown in the given table.

Sl. No. Name of the Loanee Loan

Amount

Monthly EMI to be paid

Total to be

recovered Annually

Actually recovered

during the year

Balance to be

recovered

1 Sri.M.S.R.Ganesh, SA, PRSD, GPNM

250000 1302 15624 13020 2604

2 Sri.T.R.P.Patnaik, Typist, MP JM Valasa

90000 652 7824 6520 1304

3 T.G.K.Kumari, OS, PRSD,VZM

75000 550 6600 6050 550

4 P.VRamana Murthy, Supdt., EEPR VZM

135000 494 5928 0 05928

5 Sri L.V.Appa Rao,Supdt., MP S.Kota.

145000 651 7812 6510 1302

6 Sri V.Appala Raju, OS, Dy.EE RWS, Narasannapeta, SKLM Dist.

80000 400 4800 0 4800

7 Sri.R.AppalaNaidu, EO(PR&RD)MP SKota.

65000 400 4800 3000 1800

8 Sri R.V.Ramana Murthy, SA, Ramabhadrapuram

125000 651 7812 1953 5859

9 Sri I. Krishna, OS MP Bondapalli

60000 312 3744 3408 336

10 G.Parvathi,SA MP Seethanagaram.

150000 781 9372 7810 1562

11 K.V.S.Jagannadharaju, Supdt.,MP, Seethanagaram.

125000 651 7812 6510 1302

12 K.Appala Narsayya, OS, O/O Dy.EE.RWS VZM

100000 520 6240 5720 520

16 Sri.G.Srinivasa Rao, SA EE RWS, VZM

135000 1302 15624 10416 5208

17 Sri.S.ChinaSatyam, OS EERWS, VZM

67000 348 4176 2436 1740

18 Sri.M.A.N.Murthy, Typist, EERWS, VZM

95000 1270 15240 10160 5080

19 Smt. Ch.Subba Lakshmi, MPDO, PP REga

115000 1562 18744 14058 4686

26 Sri.P.V.Nagabhushanam, SA DWMA

30000 600 7200 4200 3000

Total To be Recovered 47581 Necessary steps must be initiated to effect the recovery of the EMI-s not paid as

scheduled by the loanees, along with the penal interest, for the defaulting period and has to be adjusted to the loan funds.

(Para No.4 of General fund of Z.P.of Vizianagaram district for the year 2009-10)

64

10.2.1. MANDAL PARISHADS - 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 respective audit reports of various Mandal Parishads. 10.2.2. MANDAL PARISHADS -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. 10.2.3. MANDAL PARISHADS - SEIGNIORAGE CHARGES DEDUCTED BUT NOT REMITTED.

As per G.O.MS.No.331 Industries and Commerce (M.I) Department, Dated 21-06-2000 Seigniorage Fees or Dead Rent which ever is higher shall be recovered from the work bills on all Minor Minerals dispatched or consumed from the land. 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 Seigniorage Fees the same was 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.

Sl. No. Name of the MP/District

Amount Recovered

Under Seigniorage

Amount Remitted

Amount to be Remitted

Para No.

1 Chevella Rangareddy 110213 -- 110213 5 2 Nalgonda Nalgonda 5955 -- 5955 6 3 Chundur Nalgonda 558 -- 558 7 4 V.Kothapalli,E.Godavari 14189 14189 17 5 Marripadu ,Nellore 33102 -- 33102 1718 6 Guduru Nellore 32081 - 32081 13

Total 196098 196098

65

10.2.4. MANDAL PARISHADS LABOUR CESS DEDUCTED FROM WORK BILLS BUT NOT REMITTED

Labour Cess recoveries made from work bills were not remitted to concerned head of account till the close of audit. Such inaction of the Executive Authority was pointed out in the relevant audit reports. some instances are shown below.

Sl. No.

Name of the MP/District

Amount deducted but not remitted Para No in AR

1. Inkudurupeta Nellore 1209 18 2. Nellore Rural 18419 10 3. Anakapalli Vizag 34682 7 (2)

Total 54310 10.3.1. GRAM PANCHAYATS - WORKS BILLS – DEDUCTIONS MADE FROM WORK BILLS TOWARDS SEIGNIORAGE CHARGES, I.T, VAT – NOT REMITTED TO GOVERNMENT FUNDS – RS. .2,99,666/-

As per G.O.Ms No. 217 Industries & Commerce (M-I) Dept., Dt: 29-9-2004 and value added tax and as per G.O.Ms. No. 11, Fin (W&P) F-8 Dept., dt: 29-7-2005 and Income Tax has to be deducted from the work bills and the same has to be remitted to the concerned heads. But, during the course of audit of GPs., during the year 2009-10 it was noticed that the amounts were paid to the contractors without deducting the said compulsory deductions from the work bills. Some of such examples are shown in the given table. Early action would need to be taken to collect and remit the same to the concerned heads immediately.

Nane of the GP/Dist. Particulars of Deductions

Amount Deducted but not

remitted

Amount Paid Balance. Para

No.

Koduru, Kadapa Income Tax 13496 -- 13496 13 Koduru, Kadapa seigniorage & Cess 20466 -- 20466 13 Koduru, Kadapa V.A.T 21214 -- 21214 13

Chevella,R.R.Dist. Income Tax 28143 -- 28143 6(2)

Chevella, R.R.Dist seigniorage & Cess 22810 -- 22810 6(2)

Chevella, R.R.Dist V.A.T 45436 -- 45436 6(2)

Chevella, R.R.Dist NAC 2628 -- 2628 6(2)

Chevella, R.R.Dist Q.C. 7819 -- 7819 6(2)

Chevella, R.R.Dist L.C 2733 -- 2733 6(2)

Peeleru, Chittoor Income Tax 39512 -- 39512 6(2)

Peeleru, Chittoor seigniorage & Cess 22577 -- 22577 6(2)

Peeleru, Chittoor V.A.T 66202 -- 66202 6(2)

Peeleru, Chittoor Q.C. 6630 6630 6(2)

Total 299666 299666

66

10.3.2. VINJAMURU (GP) NELLORE DIST- LIBRARY CESS – NOT REMITTED TO ZILLA GRANDHALAYA SAMSTHA- NEEDS ACTION RS. 76,034 /-

Library Cess at 8 ps on every 1 Rs collection of House Tax as per Sec 61 of APPR Act 1994 r/w Sec 20 of AP Public Libraries Act 1960 and as per G.O.Ms No: 15 Education Dt: 29-7-1975 and G.O.Ms. No: 391 Education Dt: 28-10-1994 has to be collected and the same has to be remitted to the Zilla Grandhalaya Samsthas. But, during the course of audit of Vinajamuru Gram Panchayat in Nellore District for the year 2009-10, it was noticed that an amount of Rs. 76,034 /- was collected towards Library Cess but the same was not remitted to the ZGS. Early action would need to be taken to refund the said amount to Zilla Grandhalaya Samstha.

(Para No: 11 of Vinjamuru (GP) of Nellore Dist. for the year 2009-10)

11. NON-PRODUCTION OF RECORDS The Panchayat Raj Bodies provide certain basic civic infrastructure and services

like Roads 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 an 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 is 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 bodies have failed to maintain the records and to produce the same to Audit whenever the local teams visited their institutions. 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 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 and 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 which resulted in inaccessibility to the records and raising of paras to that extent.

67

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 slot 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 chance for fraud and misappropriation of the funds of the institution.

A Consolidated Statement – 9 (11) showing audit objections on Non-production of Records is appended to the Report from which it could be seen that an amount of Rs. 10458.85 Lakhs was pointed out in 49433 audit paras.

11.1.1. ZP VIJAYANAGARAM- EXECUTION OF WORKS - CONNECTED M.BOOKS AND ESTIMATES NOT PRODUCED - IRREGULAR Rs.13,23,449/-

As verified from the vouchers, the following works were executed in Panchayat Raj Sub Division Rangampeta under Zilla Parishad General Funds during the year 2009-10. But the connected M.Books were not produced to audit for verification. In the absence of the same the correctness of the expenditure incurred could not be certified in audit. Hence the expenditure incurred in this regard as detailed below is held under objecton.

Sl. No.

Vr.No& Date

Name of the work Amount Rs.

1 223/6.09 Const. of Community hall in Rangampeta 67042 2 294/7.09 Compl.of incomplete community hall in

uppalaguptam 258097

3 340/7.09 Compl.of incomplete community hall in Rangampeta

52871

4 341/7.09 Compl.of incomplete community hall in Chanduru

147137

5 342/7.09 Compl.of incomplete community hall in Singampalli

68646

6 464/8.09 Const. of BC community hall in Nallamilli 140060 7 499/8.09 Const of cc road from M.Satyanarayana(H) 126621 8 653/9.09 CC road from Ramalayam to

Y.Padmanabham(H) 102204

9 654/9.09 CC road from Y.Padmanabham(H) to P.Venkata Rao(H)

87209

10 861/10.09 Gravelling the road from P.Nayakampalli 252616 11 1166/12.09 Const. of Community hall @ Nallamilli 20946 Total 1323449

(Para No. 5(3) of General fund of Z.P.of Vizianagaram district for 2009-10)

68

11.1.2. Z.P. SRIKAKULAM - EXECUTION OF WORKS - REPAIRS AND RENEWALS FOR O&M OF CPW SCHEME IN THE DISTRICT – CONNECTED STOCK REGISTERS- NOT PRODUCED & OLD SPARE PARTS/UNSERVICEABLE MATERIALS NOT DISPOSED THROUGH AUCTION - NEEDS ACTION RS.7,07,990/-

In the following vouchers an amount of Rs.7,07,990/- was drawn and paid towards execution of the work of repairs and renewals for operation and maintenance of CPW Schemes in the District as shown against each. But the connected stock registers and unserviceable article register were not produced to audit.

In the absence of the above registers the correctness of the receipt of the materials, issue of materials and balance available could not be verified. Further, whether the old articles which were replaced are brought to unserviceable article register or not could not be verified. Therefore, action would need to be taken to produce the above records for verification.

Sl. No. Vr. No & Date Particulars

Material cost Gross

Amount 1 6/ 6-4-2009 Repairs and Renewals under O&M of

CPWS Scheme to Gara and other habitations for 2008-09.

20607

2 10/ 6-4-2009 -do- 4387 3 11/6-4-2009 -do- 7415 4 12/6-4-2009 -do- 1533 5 13/ 6-4-2009 -do- 1264 6 14/ 6-4-2009 -do- 3321 7 15/ 6-4-2009 -do- 1533 8 16/ 6-4-2009 -do- 5129 9 17/ 6-4-2009 -do- 3112

10 18/ 6-4-2009 -do- 788 11 20/ 6-4-2009 -do- 65787 12 21/ 6-4-2009 53761 13 25/ 6-4-2009 -do- 66019 14 26/ 6-4-2009 -do- 90917 15 27/ 6-4-2009 Repairs and Renewals under O&M of

CPWS Scheme to Rajam - Saradhi and other habitations for 2008-09.

445

16 28/ 6-4-2009 -do- 2025 17 29/ 6-4-2009 -do- 9144 18 30/ 6-4-2009 -do- 4337 19 31/ 6-4-2009 -do- 9836 20 155/ 16-7-2009 Repairs and Renewals under O&M of

CPWS Scheme to Gara and other habitations for 2009-10

21870

21 157/ 16-7-2009 -do- 21925 22 160/ 16-7-2009 Repairs and Renewals under O&M of

CPWS Scheme to Gara and other habitations for 2009-10

6403

69

23 187/ 19-8-2009 -do- 10983 24 188/ 19-8-2009 -do- 199182 25 208/ 29-9-2009 -do- 25911 26 240/ 24-10-2009 -do- 44687 27 334/ 13-1-2010 -do- 47684 28 335/ 13-1-2010 -do- 12360 29 424/ 10-3-2010 Restoration of defunct PWS Scheme at

Cheruku Palli village of Nandigam Mandal

33868

Total 776233

(Para No. 50 of General fund of Z.P.of Srikakulam district for the year 2009-10)

11.1.3. ZP KADAPA - SALE PROCEEDS OF DISMANTLED MATERIALS OF DISMANTILED BUILDINGS TRANSFERED TO THE CEO, Z.P. KADAPA- BUT SALE PROCEEDS DEPOSITED IN THE BANK PASS BOOK OF DEPOSITS A/C INSTEAD OF ZP.GF A/C - AUCTION FILES NOT PRODUCED RS. 1,63,800/-

During the course of audit on the A/c of 35% Z.P. G.F. of EEPR, Kadapa for the year 2009-10, it was noticed that on the Voucher No. 6 dt.19-10-2009 , an amount of Rs.1,63,800/- was drawn and remitted to the CEO Z.P. Kadapa towards the Sale proceeds of dismantled materials of the following dismantled buildings. But the Sale proceeds credited in the Deposit a/c( bank pass books) instead of crediting in the ZP GF A/c. Further the related files of auction of dismantled materials was also not produced for audit. In the absence of the auction files, the correctness of the sale proceeds remitted and credited could not be verified in audit. Hence action would need to be taken to produce the auction files to audit for verification 1. Dismantling of Z.P.H. School building (girls), Yerraguntla - Rs. 73,200 2. Dismantling of Z.P.H. School building (urdu), Yerraguntla - Rs. 73,200 3. Old Chairman Bungalow - Rs. 17,600 Total 1,64,000

(Para No. 3 of General fund of Z.P.of Kadapa district for 2009-10) 11.1.4. ZP KADAPA- M.BOOKS, ESTIMATES, VOUCHERS AND CONNECTED FILES NOT PRODUCED. RS.25,79,126/-

During the course of audit of EE, RWS, Rajampet Division for the year 2009-2010, it was noticed that an aggregate amount of Rs.25,79,126/- was drawn and paid to the contractors for execution of various works during the year under report. But the M.Books, Estimates, and Connected files pertaining to the works executed under T.F.C, during the year as detailed below were not produced to audit. In the absence of the same the correctness of the expenditure incurred towards the works executed could not be verified in audit. Hence action would need to be taken to produce the same to audit for verification.

70

Sl. No

Vr.No & Date Name of the work M. B. No. Gross

1 02/18-4-09 Pvdg. B W with SP Set and pumping main @ Addepalle St Colony

212/B/06-07 57740

2 14/14-5-09 O&M of CPWS to K Madhavaram & Other Habs

248/A/06-07 208417

3 15/14-5-09 O&M of CPWSS to K Madhavaram & Other Habs

76/B/08-09 16281

4 17/16-5-09 O&M of CPWSS to Pondalur & Other Habs 145/B08-09 153092 5 18/16-5-09 O&M of CPWSS to Vontimitta & Other Habs 79/B/08-09 98580

6 29/05-6-09 mp to DW facilities to K Madhavaram and other habitations of Vontimitta and Sidhout (M)

7-A/03-04 663168

7 37/23-6-09 Pvdg. BW with SP Set at Thimmayapalem ST colony

159-b06-07& 463-a/99-00 106968

8 50/15-7-09 Providing Distribution to Kondamachupalli, K.Madhavaram Mukundashramam

246-A/06-07 132956

9 143/25-2-10 O&M of CPWS scheme to K.Madhavaram & other habs

247-A/06-07 112502

10 01/27-3-10 Providing DW Facility to the H'ble CM meeting near Isukapalli of Rajampet Mandal

65-A/03-04 36783

11 06/31-3-10 Aug. of MPWs Scheme at Kondlopalli of Rajampet mandal

343-B/06-07 42092

12 07/31-3-10 Extn. Of Pipe line at Utukur of Rajampet Mandal

218-A/06-07 68199

13 08/31-3-10 Pvd. BW witrh SP Set at K.Buduguntapalli Yadava Colony of Kodur Mandal

112-A/06-07 100000

14 09/31-3-10 Pvd. BW witrh SP Set at Samatha Nagar SC Colony of Kodur Mandal

112-A/06-07 99140

15 10/31-3-10 Aug. of PWS Scheme at Yamanur HW of Pullampet Mandal

193-A/06-07 48886

16 11/31-3-10 Aug. of MPWS Scheme at Peddapadu of Kodur Mandal

103-A/05-06 100000

17 12/31-3-10 Aug. of MPWS Scheme at Jr. Collecge of C.Orampadu of Obulavaripalli Mandal

214-B/08-09 100000

18 13/31-3-10 Aug. of MPWS Scheme at Payalavandlapalli of Obulavaripalli Mandal

261-B/07-08 100000

19 14/31-3-10 Extn. Of Pipe line from Kuchivaripalli of Rajampet Mandal

129-A/08-09 180439

20 15/31-3-10 Aug. of PWS Scheme to Appayarajupeta of Pullampet Mandal.

295-B/08-09 153883

TOTAL 2579126

(Para No. 28 of General fund of Z.P.of Kadapa district for the year 2009-10) 11.1.5. ZP ANANTAPUR - SFC RELEASES MADE TO THE OTHER INSTITUTION - UTILZATION CERTIFICATES AND PAYEES ACKNOWLEDGEMENTS NOT PRODUCED Rs;18,31,335/-

On verification for vouchers during the year under report it was noticed, that an amount of Rs.18,31,335/- was distributed to Engineering Divisions towards SFC grant (ZP Sector). But, the payees acknowledgements, expenditure particulars and Utilization Certificates in support of the payments made were not produced to Audit from the

71

Engineering Divisions, Darmavaram & Penukonda. Due to non-production of the same, the correctness of the distributions made could not be certified in audit.

Sl. No.

Vr.No/Date Particulars Amount (Rs.)

1 277/3.11.09 E.E,P.R.I,Division,Darmavaram 340000 2 292/20.11.09 E.E,P.R.I,Division,Darmavaram 170000 3 303/30.11.09 E.E,P.R.I,Division,Darmavaram 400000 4 394/4.2.10 E.E,P.R.I,Division,Darmavaram 173000 5. 358/19.1.10 E.E,P.R.I,Division,Penukonda 148335 6. 395/8.2.10 E.E,P.R.I,Division,Penukonda 600000

TOTAL 18,31,335

(Para No.21 of General fund of Z.P.of Ananthapur district for the year 2009-10) 11.1.6. ZP ANANTAPUR - EXPENDITURE INCURRED ON VARIOUS WORKS - CONNECTED M.BOOKS AND FILES NOT PRODUCED - NEEDS EARLY ACTION.Rs. 1,69,38,325/- A total sum of Rs.1,69,38,325/- was incurred from Z.P. General Funds towards execution of various works during the year 2009-10. But the connected M. Books and other relevant files were not available to audit for verification. In the absence of the above the expenditure already incurred could not be admitted in audit and is held under objection. Hence, immediate action would need to be taken for production of above records to admit the expenditure in audit.

(Para No. 2 of General fund of Z.P.of Ananthapur district for the year 2009-10) 11.1.7. ZP MAHABUBNAGAR - EXECUTION OF WORKS UNDER SFC -CONNECTED M.Bs., AND FILES NOT PRODUCED - EXPENDITURE HELD UNDER OBJECTION - RS. 43,70,147/- In the following vouchers an amount of Rs.43,70,147/- was drawn and paid to various agencies towards execution of works under S.F.C. funds during the year under report. But, the connected Measurement Books, files and records were not produced to audit for verification. In the absence of the above, the correctness of the expenditure incurred cannot be admitted in audit and held under objection .

Sl. No.

Name of the Executive Agency

Vr.No. Amount Purpose

1 P.R. Gadwal 28/3-4-08 404113 C/o. Compound wall to ZPHS Jallapur of M.P. Manopad

2 P.R. Nagarkurnool 63/11-5-08 127545 ZPHS building at Gangaram village works

3 P.R.Nagarkurnool 163/19-6-09 85000 Compound wall ZPHS Sirsawada vof M.P. Tadoor

4 P.R.Nagarkurnool 164/19-6-09 50000 Compound wall to ZPHS Indrakal vil M.P. Tadoor

5 P.R.Nagarkurnool 302/27-8-09 331850 Compound wall to ZPHS Manganoor of M.P. Bijinapally

6 P.R. Nagarkurnool 346/03-10-09 112546 Compound wall to ZPHS Desitikayal (V0 of M.P. Nagarkurnool

72

7 P.R. Nagarkurnool 347/03-10-09 197673 Compound to ZPHS veligonda M.P. Bijinapally

8 P.R. Mahabubnagar 439/11-11-09 500000 Compound wall to ZPHS Bomraspet M.P.

9 P.R. Nagarkurnool 400/06-11-09 163334 Compound wall to ZPHS Indrakal 10 P.R. Mahabubnagar 423/16-11-09 500000 Zilla Parishad Building 11 P.R. Mahabubnagar 427/18-11-09 500000 Zilla Parishad Building 12 P.R. Gadwal 472/17-12-09 62580 13 P.R. Mahabubangar 503/08-1-10 300000 Zilla Parishad Building 14 E.E. RWS

Nagarkurnool 505/8-1-10 100000 Toilets @ ZPHS Kalwakurthy

15 P.R. Mahabubnagar 531/01-02-10 110000 Special repairs to toilets to DPO office at ZP. Building

16 P.R. Mahabubnagar 543/06-02-10 40000 New guest house @ Zp Permisses 17 E.E.PR Nagarkurnool 548/11-2-10 100000 B/w of C/W to ZPHS Indrakal 18 E.E.PR Nagarkurnool 576/22-2-10 298556 School compound wall at kummera vil 19 E.E.PR Nagarkurnool 577/22-2-10 36950 Compound wall to ZPHS destitikayal

of M.P. Nagarkurnool 20 P.R. Nagarkurnool 587/11-3-10 50000 Extension pipelines & repairs at

Danwada 21 P.R. Mahabubnagar 596/06-3-10 300000 Renovation of Toilets at Zill Parishad

office Total 4370147

(Para No. 18 of General fund of Z.P.of Mahabubnagar district for the year 2009-10) 11.2.1. MPP KUNDURPI OF ANANTAPUR DISTRICT - PURCHASE OF HAND PUMPS - CONNECTED FILES M.BOOKS AND STOCK REGISTER NOT PRODUCED. RS. 2,25,682/-

During the course of audit of Kundurpi MPP of Anantapur District for the year 2009-10, it was noticed that an aggregate amount of Rs. 2,25,682/- was drawn in the following vouchers towards purchase of hand pumps and materials as detailed below under water supply scheme. But the relevant files M.Books, Stock Register and information relating to the purchase of hand pumps and materials for Rs 2,25,682/- were not produced to audit. In the absence of the above, the correctness of the expenditure made could not be certified in audit.

Vr.No. & Date Details of purchases Amount Rs. 39/20.5.09 Purchase of RWS spare parts from Sai deep

marketing Anantapur. 68677

105/4.11. - 65946 09117/1/10 Hand pump materials (M.Book produced) 91059 TOTAL 225682 (Para No. 18 of the AR of MPP Kundurpi of Anantapur District for 2009-10)

11.2.2. MPP SAMALKOTA OF EAST GODAVARI DISTRICT GENERAL FUND WORKS -- M.BOOKS AND ESTIMATES ETC. NOT PRODUCED. Rs. 277926/-

During the course of audit on the accounts of MPP Samalkota of East Godavari District for the year 2009-10, it was noticed that the following payments were made towards the Execution of works as detailed below. But the connected M.Books,

73

Estimates, Tenders files etc. were not produced to audit. The same would need to be produced to audit to certify the correctness of the expenditure made.

Vr.No./Dt Particulars Amount Rs.

157/11.09 Providing CC road V.K. Rayapuram 99282 2)155/11.09 Providing CC road B.C area Ramachandrapuram. 77468 102/9.09 Providing pipeline and Tax connection of

Madhavapatnam. 79176

Total 255926 (Para No.13 of the MP Samalkota of East Godavari District for the year 2009-10.)

11.3.1. GRAMPANCHAYATS - ESTIMATES, SANCTIONS M-BOOKS, VOUCHERS ETC., - NOT PRODUCED FOR AUDIT FOR VERIFICATION – RS. 812627/-. An amount of Rs.7,85.627/- was incurred towards the execution of various works in various Grampanchayats of Nellore & Khammam Districts. But, the connected estimates, administrative and Technical sanctions M-Books, NMRs, Vouchers etc,, were not produced to audit as per G.O.Ms. No. 589 PR & RD Dt: 29-9-89 and G.O.Ms. No. 195 PR & RD Dt 10-5-99. In the absence of the same the correctness of the expenditure could not be verified in audit. Name of the GP/Dist. Vr. No

Date Amount

Rs. Details Para

No. SarvayePalem,Nellore 8-4-2009 70000 Construction of plat forms for

two wells-Konetivaripalem in Manjerapedadinne G.P.

11

SarvayePalem,Nellore 17-6-2009

27000 Construction of pile near school at Matinavari palem

11


50000 Construction of pile near Rama Mandiram

11

SarvayePalem,Nellore 7-9-2009 34000 Construction of pile near sarvaya palem Grampanchayat

11


52000 Leveling of Road margins with gravel and uprooting of trees at both sides f road Sarvayapalem Majaram N.H. 5 to Alligunta Road

11

Mothugudem, Khammam

2/16-12-2009

32000 Constructions of side drains vide M.B.No.1736/B/94-95

12

Mothugudem, Khammam

5/10-12-2009

49924 Constructions of Additional rooms to GP office Vide M.B.No.24/A/98-99

12

Mothugudem, Khammam

6/29-3-2010

24965 Constructions of Additional rooms to GP office Vide M.B.No.24/A/98-99

12

Tanilella, Khammam 01/2-4-20024-3-

20099 96329 Extension of pipe line vide

MB.No.1294/A/95-96

20

74

Tanilella, Khammam 18/26-2-2010 89000 Extension of pipe line vide

MB.No.1294/A/95-96 20

Kondavanamala, Khammam

7/22-07-2009

287409

Construction of CC Drain from T. Yogeswarra Rao House to G. Ramulu House M.B.No.126/A/2005-06

7


8/22-07-2009

Construction of CC Road from B. Nageswara Rao House to R&B Road M.B.No.126/A/2005-06

7


9/22-07-2009

Construction of CC Road in SC Colony from A Bhaskar House to R&B Road M.B.No.138/B/2004-05

7

Total 812627 11.3.2. LUXTTIPET GP ADILABAD DISTRICT - NON PRODUCTION OF – STOCK REGISTER –RS. 99,739/-

As verified from the Cash book of Luxttipet G.P in Adilabad district for the year 2009-10, it is noticed that an amount of Rs. 99,739/- was drawn and paid towards purchase of various material as detailed here under. But the said materials were not entered into the stock Register as per sub section 2 (1) of Section 268 of AP PR Act 1994. Without verification of the stock, the correctness of the expenditure cannut be certified in audit.

(Para No: 9 of G.P. Luxttipet, Adilabad District for the year 2009-10)

11.3.3. MYLAVARAM GP OF KRISHNA DISTRICT - PURCHASE OF ELECTRICAL MATERIAL – STOCK REGISTER NOT PRODUCED RS. 33,854/-

As verified from the Cash Book for the year 2009-10 of Mailavaram Gram Panchayat, it was noticed that an amount of Rs.33,854/- was drawn and paid to Bharadwaj Marketing Agencies, Vijayawada towards Electrical Material vide voucher No. 60 Dt: 30-7-2009. But, the connected voucher along with Stock Register was not produced to audit. Further, no sanction order was passed by the Executive Authority based on the Panchayat resolution. Hence, the expenditure incurred could not be admitted in audit and is held under objection. The loss if any caused in this regard would need to be recovered from the person or persons responsible and made good to GP Funds. (Para No:26 of Mylavaram (GP) Mylavaram ( M) Krishna District for the year 2009-10)

S.No. Voucher No. Details Amount 1 5/ 22-4-09 Water Supply Material 8848 2 8/ ,, Electrical Material 500 3 9/5-06-09 Bleeching Powder 5400 4 18/7-7-09 Water Supply Material 23941 5 28/ ,, Electrical Material 19857 6 45/ 2-1-10 Borewell Material 124134 7 49/ 2-1-10 Stationary 2500 8 56/ 10-2-10 Taps and fountains 22309 9 59/ ,, Stationary 1521 10 77/ 11-3-10 Water Supply Material 2450

Total 211460

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11.3.4. MALLEPALLI GP OF EAST GODAVARI DISTRICT- EXPENDITURE INCURRED -VOUCHERS NOT PRODUCED Rs. 1,64,000 /-

As verified from the Cash book of Mallepally G.P. East Godavari district for the year 2009-10, it was noticed that an amount of Rs.1,64,000/- was drawn and paid towards purchase of various materials and other expenditure as detailed below . But the relevant Vouchers, Bills, Acquittances, and Stock Registers were not produced to audit as per Sub Sec 2(11) Under Sec 268 and as per G.O.Ms No: 496,Dt. 11-6-1996. Hence, the expenditure incurred could not be admitted in audit and held under objection. The loss if any in this regard would need to be recovered from the person or persons responsible and made good to GP Funds.

Vr No & Dt Details Amount Rs.

2/25-4-09 3 / ,, 4/25-10-09 5 / ,, 6/ ,, 7/ ,, 8/ ,, 9/ ,, 10/ ,, 16/ 12-1-10 12/ ,, 13/ ,, 14/ ,, 15/ ,,

Removal of Dogs Electricals goods... CC Charges Removal of Dogs Office Expenses Sweeper salary Pipeline repairs Purchase of lime, bleaching & phenyl Do - Operator Salary Sweeper salary Sweeper salary Switch Operator Salary

4000 40000 1560 5740 3275 9465

14000 5473

10537 12000 15000 17500 17500 8000

Total 164050 (Para No:15( 1) Mallepalli ( GP) Gandeypalli (M) East Godavari Dist. For 2009-10) 11.3.5.MOTHUGUDEM GP OF KHAMMAM DISTRICT - NON PRODUCTION OF RECORDS & VOUCHERS - IRREGULAR Rs. 77,338/-

As verified from the Cash book of Mothugudem G.P. Khammam district for the year 2009-10, it was noticed that an amount of Rs.77,338/- was drawn and paid towards purchase of various materials and other expenditure as detailed below. But the relevant Vouchers, Bills, Acquittances, and Stock Registers were not produced to audit as per Sub Sec 2(11) Under Sec 268 and as per G.O.Ms No: 496, Dt.11-6-1996. Hence, the expenditure incurred could not be admitted in audit and held under objection. The loss if any in this regard would need to be recovered from the person or persons responsible and made good to GP Funds.

Vr No & Dt Details Amount 878324/ 12-9-09 Electrical Material Sri Sai Enterprises 27450 878304/ 18-6-09 Electronics & Engineering , Venkata sai

Electronis 49888

Total 77338

(Para No: 4 Mothugudem G.P. Chinturu (M) Khammam District for 2009-10 )

76

12. MISAPPROPRIATIONS

A consolidated statement of audit objections on misappropriations noticed in audit is annexed vide Statement – 9 (12). A total number of 608 cases involving an amount of Rs.155.92 lakhs were pointed out in the relevant Audit Reports. 12.1.1 ZP RANGAREDDY - MISAPPROPRIATION OF FUNDS NEED TO BE RECOVERED - Rs. 17,898/- During the verification of Cash Book, Pass Book and other connected records of Zilla Parishad Ranga Reddy, it was noticed that the following Cheques were drawn from the bank without proper vouchers, bills etc. Further the same were not recorded in the Cash Book, which is highly irregular on the part of the Executive Authorities. Due to non-production of the evidential record for the amount drawn, it is construed that the amount was misappropriated and held under objection. Hence immediate action would need to be taken to recover an amount of Rs. 17,898/- along with Penal interest from the person or persons responsible and credited to concerned fund.

Sl. No.

Date of Drawal Amount Drawn

Rs.

Remarks

1 17-09-2009 3000 Details of expenditure not pointed out. 2 13-01-2010 14898 Details of expenditure not pointed out.

Total 17898 (Para No.6 of General fund of Z.P. Ranga Reddy district for the year 2009-10)

12.2.1. MP MANDAPETA OF EAST GODAVARI DISTRICT – MISAPPROPRIATION OF FUNDS RS.88,000+5,000=93,000/--

During course of audit of MP Mandapet of East Godavari District for the year 2009-10, it was observed that a sum of Rs.88,000/- was collected through Miscellaneous Receipt book by the MPDO Mandapet towards the sale of old material of MP Ele. School Building but the amount was neither brought into receipts side of the Cash Book nor entered in the Treasury Pass Book till the close of the audit. In view of the above the amount of Rs.88,000/- is treated as Misappropriation. Further in the same MP an amount of Rs.5000/- collected from the shop owners towards rent has not been accounted for by the MPDO., MP Mandapet. Therefore a total sum of Rs.93,000/- would need to be recovered from the persons responsible & to be credited to the MP funds 12.2.2. MP VEDURUKUPPAM OF ADILABAD DISTRICT -SALARY DRAWN FROM GENERAL FUND SHORT AMOUNT REIMBURSED TO GENERAL FUND MISAPPROPRIATION BY THE DRAWING OFFICER- NEED RECOVERY RS.13,971/-. An amount of Rs.60,226/- was drawn from the General funds of the MP in voucher NO. 52/03-06-09 towards the salary of staff working in the M.P. Vedurukuppam subject to reimbursement from the P.D. Account, as there is no balance in PD Account as on the date of drawl. The amount paid is as follows.

Sl. No. Name of the Employee Designation Amount

1 Sri. S.Khaleel Supdt., 13785 2 Sri. I.Vijay kumar Junior Asst. 10109 3 Sri. B.Kannaiah, Senior Asst., 13816 4 Sri. T.Govindaiah, Typist 8545 5 Sri. D.Bhaskar Attender 7716 6 Sri. K.Rajesh Attender 6255

60226

77

Subsequently, the said amount was drawn from the P.D account through Sub-Treasury, Puthuru vide Treasury Challan No.11313, dated 20-2-2010,and out of Rs. 60, 226/- only a sum of Rs.46,255/- was got remitted to the M.P. General fund leaving a balance of Rs.13,971/-. Hence, it is construed that the said amount was misappropriated. Action would need to be taken to collect the amount from the person or persons responsible and to remitt to the MP funds.

(Para No.8 of General Fund of MP Vedurukuppam, Adilabad Dist. for 2009-10) 12.2.3. MP, DANDEPALLY OF ADILABAD DISTRICT - DRAWAL OF AMOUNT WITHOUT ANY PURPOSE - MISUSE OF DRAWING POWERS - AMOUNT MISAPPROPRIATED - NEEDS RECOVERY - Rs. 20,000/- An amount of Rs. 20,000/- was drawn on Self Cheque vide Vr. No. 103/14-10-2008 from General Fund Account of Mandal Parishad during the year under report and noted as -ADVANCE- in Cash Book encashed vide Cheque No. 096451/4-10-2008. Neither the connected paid vouchers nor the purpose of advance drawn and payees acknowledgements were produced to audit for verification. In view of the above, Half Margin Lr. Nos.2/2009-2010, Dt. 10-8-2009 and 3/2009-2010, Dt. 11-8-2009 were issued to the Executive Authority of Mandal Parishad requesting to produce the details of expenditure along with the paid vouchers for verification to audit. Though the Half Margin Letters acknowledged on the same date but the reply has been pending till the close of audit. In view of the non-production of records and non-response to the Half Margin letters, it is construed that the said amount was misappropriated. Hence, action would need to taken to collect the said amount from the person or persons responsible and credited to the MP Funds early besides taking disciplinary action against the individual.

(Para No.10 of General Fund of MP Dandepally, Adilabad Dist. for 2009-10)

12.2.4. MP NAGARKURNOOL MAHABOOBNAGAR DISTRICT - AMOUNT DRAWN TOWARDS ELECTRICITY CHARGES - NOT REMITTED - MISAPPROPRIATION Rs. 7, 970/-

In the following vouchers a sum of Rs.7,970/- was drawn from the MP General Funds towards Electricity Consumption charges. But, neither the consumption demand nor the receipt of payment were produced to audit due to which it is construed that the amount was misappropriated

Sl.No Vr No /Date Foe which month Amount 1 17/04-05-09 Mar-09 2831 2 43/22-7-09 June-09 5139

Total 7970

(Para No.18 of General Fund of MP Nagarkurnool, Mahabubnagar Dist. for 2009-10) 12.2.5. MP BALANAGAR OF MAHABUBNAGAR DISTRICT - AMOUNT DRAWN- EXPENDITURE DETAILS NOT ENTERED IN TO THE CASHBOOK – CONNECTED VOUCHERS NOT PRODUCED FOR AUDIT MIS-APPROPRIATION-NEEDS RECOVERY-RS.71,995/- During the verification of S.T.O. Pass Book of General Fund, it was noticed that an amount Of Rs.71,995/- was drawn Vide Cheq.No.913 dated.9/12/2009. But the connected entry was not recorded into the Cash Book of General Fund. The details of the

78

expenditure made along with the paid vouchers and connected records not produced to audit for verification. In the absence of the same the amount drawn was construed as misappropriated and held under objection.

(Para No.28 of General Fund of MP Balanagar, Mahabubnagar Dist. for 2009-10)

12.3.1. IBRAHIMPATNAM GP OF RANGA REDDY DISTRICT - COLLECTION OF TAXES – SHORT ACCOUNTED FOR IN THE IRSALNAMA AND CASH BOOK – NEEDS RECOVERY RS. 256151/-

On verification of Receipt books, Irsalnama Register, Chitta registers and Cash book of Ibrahimpatnam G.P. in Ranga Reddy district for the year 2009-10, it was noticed that an amount of Rs.8,86,765/- was collected vide Irsalnama Register /Chitta as mentioned below. Out of which a sum of Rs.6,30,614/- only was remitted to the GP funds leaving balance of Rs.2,56,151/-. Therefore, it is construed that the un-remitted amount was misappropriated. The same would need to be recovered from the person or persons responsible and to be remitted to the GP funds early.

Sl. No.

Name of the employee/

Designation

Irsalnama Register Chitta

No/Date

Total amt.

collected (Rs.)

Total amount remitted

Balance to be

remitted (Rs)

1 Sri.Shivalingam, Bill Collector

93/09.12.2009 16104 15904 200

2 ,, 97/16.12.09 49098 39999 9099 3 ,, 100/22.12.09 5515 4614 901

4 Ashok, Bill Collector IR-18/15.10.2009 62662 62446 216

5 ,, 42/26.8.2009 193213 129284 63929 6 Y.Laxmaiah, NMR 10/13.5.2009 32909 25477 7432 7 ,, 11/17.5.2009 8000 0 8000 8 ,, 13/20.5.2009 35519 27384 8135 9 ,, 14/27.5.2004 21290 14420 6870

10 Y.Rambabu, NMR 12/18.5.09 32999 14280 18719 11 ,, 26/27.6.2009 21458 8073 13385 12 ,, 27/29.6.2009 6561 5480 1081 13 Mahender, BC 42/26.8.09 101013 100000 1013 14 Yellaiah, BC 111/27.1.10 31970 9670 22300 15 122/17.2.2010 20114 13554 6560 16 D.Ashok, BC 127/24.2.10 82571 72821 9750 17 Shivalingam, BC 128/3.3.10 11793 5853 5940 18 132/17.3.2010 38185 25795 12390 19 Mahender, BC 133/24.3.2010 36884 36053 831 20 137/31.3.2010 78907 19507 59400

Total 886765 630614 256151 (Para No:1 of Ibrahim Patnam(GP)Ibrahim (M) RangaReddy Dist for 2009-10)

12.3.2. LUXTTIPETA GP OF ADILABAD DISTRICT - COLLECTION OF AMOUNT – NOT ACCOUNTED FOR IN CASH BOOK - MISAPPROPRIATION OF FUNDS – NEEDS ACTION. RS. 28,458/-

During the course of Audit of Luxtti Peta of Adilabad District for the year 2009-10, it was noticed that an amount of Rs.1,26,800/- was collected as per the entries recorded in the Chitta vide receipt No.29452 to 29552. But an amount of Rs.98,342/- was

79

only taken into Cash Book and credited in the Bank, leaving a balance of Rs.28,458/-. Therefore, it is construed that an amount of Rs.28,458/- was misappropriated. Hence, the said amount would need to be recovered from the person or persons responsible and made good to GP funds besides taking disciplinary action as per G.O.Ms. No. 25 GAD Dt: 2-3-2004.

(Para No: 6 of G.P. Luxttipet, Adilabad District for the year 2009-10) 12.3.3. GRAM PANCHAYAT - NARASAPUR GP ADILABAD DISTRICT - MAINTENANCE OF OFFICE - EXCESS AMOUNT DRAWN – NOT ACCOUNTED FOR – MISAPPROPRIATIONS RS. 7,460/-

As verified from the Cash Book of Narsapur G.P. in Adilabad district for the year 2009-10, an amount of Rs.13,972/- was drawn vide voucher No.30 / 10-7-2009. But, the relevant vouchers and bills for Rs.6,512/- only were produced for verification. The details for the balance amount of Rs.7,460/- were not produced for audit for verification. Thus, the balance amount of Rs.7,460/- was construed as misappropriated. The said amount should be recovered from the person or persons responsible and made good to GP Funds.

(Para No: 11 of G.P. Narsapur, Adilabad District for the year 2009-10) 12.3.4. CHOWDEPALLI GP OF CHITTOOR DISTRICT - AMOUNTS DRAWN FROM GP FUNDS – NEITHER ACCOUNTED FOR IN CASH BOOK NOR PRODUCED RELEVANT RECORDS – AMOUNT MISAPPROPRIATED RS. 2,62,391/-

During the course of audit, it was noticed that an amount of Rs.2,62,391/- was drawn from the Gram Panchayat General Funds, 12th Finance and State Finance Commission Funds. But, the same were not recorded in the Cash Book and the Vouchers, M-Books and other relevant records were not produced to audit. Hence, it is construed that the amount was misappropriated. Necessary action would need to be taken to recover the said amount from the person or persons responsible and made good to GP Funds besides initiating disciplinary action against them.

Sl. No. Voucher No & Date Details Amount

1 31/20-5-09 Cheque No. 960018 77749 2 107/ 12-10-09 ,, 049752 ( TFC) 55030 3 155/ 26-3-2010 ,, 049760 ( TFC) 50000 4 156/ ,, ,, 049761 ( TFC) 27749 5 157/ 29-3-2010 ,, 049762 ( TFC) 46863 6 64/ 10-7-2009 ,, 96022 (GF) 5000 Total 262391 (Para No: 5 of Chowdepalli GP of Chittor District for the year 2009-10)

12.3.5. KALIGIRI GP OF NELLORE DISTRICT - HOUSE TAX COLLECTION – AMOUNT NOT REMITTED TO GP FUNDS – MISAPPROPRIATION RS. 19,845/-

As verified from the receipts issued to the Bill collector for the year 2009-10, it was noticed that an amount of Rs.19,845/- was collected. But the same amount was not recorded in daily Collection Register and not remitted to GP Funds. The same was brought to the notice of the Executive Authorities vide Half Margin Letter Dt: 21-9-2010

80

informing that the amount was misappropriated. Necessary action may be taken to recover the said amount from the person or persons responsible and made good to GP Funds besides initiating disciplinary action on the erring employees.

Receipt No & Date Details Amount 389/ 9-12-09 House Tax 179 390/ ,, House Tax 179

391/ ,, House Tax 151 392/ ,, House Tax 159 393/ ,, House Tax 393 394/ ,, House Tax 400 395/,, House Tax 229 396/, House Tax 160 397/ ,, House Tax 86 398/ ,, House Tax 73 399/ ,, House Tax 179 400/ ,, House Tax 302 376/ 8-112-09 House Tax 112 377/ ,, House Tax 256 378/ ,, House Tax 472 379/ ,, House Tax 284 380/ 9-12-09 House Tax 106 381 / ,, House Tax 94 382 / ,, House Tax 156 383 / ,, House Tax 395 384 / ,, House Tax 187 385 / ,, House Tax 678 386 / ,, House Tax 179 387 / ,, House Tax 106 388 / ,, House Tax 145 1863/ 1-2-10 House Tax 522 1864/ 2-2-10 House Tax 282 1865/ ,, House Tax 299 1866/ ,, House Tax 270 1867/ ,, House Tax 316 1868/ ,, House Tax 223 1864/ ,, House Tax 145 1870/. ,, House Tax 229 1871/ ,, House Tax 298 1872/ ,, House Tax 153 1873/ ,, House Tax 229 1874/ 3-2-10 House Tax 106 1875/ ,, House Tax 687 1876 / ,, House Tax 332 1877/ ,, House Tax 332 1878 / ,, House Tax 181 1879/ ,, House Tax 654 1880/ ,, House Tax 110 1881 / ,, House Tax 162 1882/ ,, House Tax 752 1883/ ,, House Tax 90 1884/ ,, House Tax 153

81

1885/ ,, House Tax 448 1886/ ,, House Tax 526 1887/ ,, House Tax 419 1888/ ,, House Tax 138 1889 / ,, House Tax 248 1890/4-2-10 House Tax 702 1891 / ,, House Tax 419 1892/ ,, House Tax 145 1893/ ,, House Tax 153 1894/ ,, House Tax 106 1895/ 4-2-10 House Tax 151 1896/ 4-2-10 House Tax 659 1897/ ,, House Tax 110 1898/ 4-2-10 House Tax 316 1899/ ,, House Tax 229 1900/ ,, House Tax 428 1850/ 1-2-10 House Tax 284 1851/ ,, House Tax 179 1852/ ,, House Tax 228 1853/ ,, House Tax 145 1854/ ,, House Tax 145 1855/ ,, House Tax 196 1856/ ,, House Tax 94 1857/ ,, House Tax 157 1858/ ,, House Tax 451 1859/ ,, House Tax 196 1860/ ,, House Tax 196 1861/ ,, House Tax 106 1862/ ,, House Tax 106 Total 19865

(Para No: 6 ( 3 ) of Kaligiri GP Nellore District for the year 2009-10) 12.3.6. B.KOTTAKOTA GP OF CHITTOOR DISTRICT - HOUSE TAX COLLECTION MADE BY SRI. R. NARASIMHULU, BILL COLLECTOR, NOT REMITTED TO GP FUNDS –NEEDS RECOVERY RS. 33,806/-

During the course of audit of B.Kottakota Gram panchayat of Chittoor district for the year 2009-10 it was noticed that an amount of Rs.33,806/- was collected by Sri. R. Narasimhulu, Bill Collector. But, the same was not remitted to the Gram panchayat funds till the closure of the audit. Necessary action would need to be taken to recover the said amount from Sri. R. Narasimhulu, Bill Collector and made good to GP Funds besides initiating disciplinary action against him.

(Para No: 4 of Major G.P. B.KothaKota of Chittoor District for the year 2009-10)

12.3.7. JAMMIGUNTA GP OF KARIMNAGAR DISTRICT - COLLECTION MADE – BUT NOT TAKEN TO IRSALNAMA AND CHITTA – NEEDS REMITTED TO GRAMPANCHAYAT FUNDS Rs. 72,404/-

During the course of audit of Jammigunta G.P. in Karimnagar district for the year 2009-10, it was observed that the Receipt book Nos. 63 & 88 bearing Sl. No.6201 to 6300 and 8701 to 8737 respectively issued to Jr. Assistant Mr. A.Krishna Murthy on 12.2.2009. But, the Receipt book was not returned back to Gram Panchayat, Jammikunta after the collection was made. Hence, it is construed that an amount of Rs.72,404/- collected

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towards the above receipt Numbers are misappropriated. Therefore, the said amount would need to be recovered from A.Krishnamurthy, Jr.Asst. of the G.P. and remitted to the GP funds. (Para No: 14 Jammigunta GP, Jammigunta (M) KarimNagar District for 2009-10 ) 12.3.8. CHEBROLU GP OF EAST GODAVARI DISTRICT - AMOUNT COLLECTED THROUGH MISCELLANEOUS RECEIPTS – NOT REMITTED TO GP FUNDS – MISAPPROPRIATION RS. 62,876/-

As verified from the Miscellaneous Receipt book of Chebrolu G.P.in East Godavari district for the year 2009-10, it was noticed that an amount of Rs.69,176/- was collected towards Tap contributions , lease amounts , building license fee etc.. but, not remitted to GP Funds. It is construed that the amounts were misappropriated and would need to be recovered from the person duly taking the disciplinary action as per G.O.Ms. No. 25 GAD., Dt; 2-3-2004.

MR No/ Dt Details of Collections Amount Collected

25-7-2009 Tatikayala Suryanarayana 2000 70-9-2009 Veeravalli Suryanarayana 2000 71-9-2009 Gantu Govindu 2000 72-9-2009 S. Veerraju 2000 73-9-2009 Pasupuleti Nukaraju 2000 74-9-2009 Goldugula Rambabu 2000 75-9-2009 Golusupati RamaRao 2000 76-9-2009 Vulavala Sattirraju 2000 77-9-2009 Vulavala Sreenu 2000 78-9-2009 Oruganti Bhadrarao 2000 79-9-2009 Denineeda Chittayya 2000 80-9-2009 Vulavakayala Satyanarayana 2000 81-9-2009 Palivela Apparao 2000 82-9-2009 Nammi Ramakrishna 2000 83-9-2009 Velugubanti Eesudasu 2000 84-9-2009 Komakula Ramalakshmi 2000 85-9-2009 Pedilam Gavaram Dora 2000 86-9-2009 Oruganti Bhadrarao 2000 87-9-2009 B. Suryanarayana 2000 88-9-2009 Garapati Ramakrishna 2000 89-9-2009 Oruganti Venkata Billa Rao 2000 90-9-2009 Gandikota Satyanarayana 2000 91-9-2009 Tamkella china Satyanarayana 2000 92-9-2009 E. Ananda Rao 2000 93-9-2009 Sidda Annavaram 2000 94-9-2009 Vulavakayala Eesudasu 2000 95-9-2009 Akula surebabu 2000 96-9-2009 Sukara Kodanda 2000

118-9-2009 Oruganti Suryanarayana 2000 97-9-2009 G. VenkataRamana Market lease amount 476

104-9-2009 Karri Naga Suryavathi Building license Fee 400 106-9-2009 Balajee Marriage Center 2000 107-9-2009 Oruganti - Tap contributions 2000

Total 62876/- (Para No: 18 Chebrolu (GP) of Gollaprolu ( M ) East Godavari Dist. for 2009-10)

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12.3.9. RAJUPALEM GP OF EAST GODAVARI DISTRICT - HOUSE TAX - LONG PENDING COLLECTION - BILLS AND ARREAR DEMAND REGISTER – NOT PRODUCED – NEEDS ACTION RS. 48,827 /-

As verified from the House Tax Bills for the year 2009-10 an amount of Rs. 48,827/- is pending collection towards House Tax for the years from 2006-07 to 2009-10 as detailed in the table below. But, the arrear bills were not produced to audit for verification along with arrear demand register. Hence it is construed that the amount was collected and misappropriated without remitting the same to the G.P. funds.

Year Total Assessments House Tax Due Collection Bills

Produced

Misappropriation

2009-10 121 32372 7749 13,159 11464 2008-09 63 30955 19503 7,527 3925 2007-08 37 29770 14025 4,600 11145 2006-07 - 28352 6059 - 22293

221 121449 47336 25286 48827

( Para No:17 Rajupalem GP Kirlam Pudi (M) East Godavari Dist. for 2009-10) 12.3.10. CHEBROLU GP OF EAST GODAVARI DISTRICT - AMOUNT COLLECTED TOWARDS TAP FEE AND HOUSE TAX– NOT REMITTED TO GP FUNDS – MISAPPROPRIATION RS. 36,688/-

As verified from the Bill Collection Register for the year 2009-10, it was noticed that an amount of Rs.36,688/- was collected towards Tap contributions and House Tax as detailed below. But the said amounts were not remitted to GP Funds. It is construed that the amounts were misappropriated. Therefore the same would need to be recovered from the person responsible immediately duly applying the procedure laid down in G.O.Ms. No. 25 GAD Dt; 2-3-2004.

Year House Tax BCR Rs.

Tap Fee BCR Rs.

Total Rs.

2003-04 1078 - 1078 2004-05 1769 - 1769 2005-06 2535 1800 4335 2006-07 4085 915 5000 2007-08 4441 4050 8491 2008-09 9175 4860 14035

1999-2000 to 2005 - 1980 1980 23083 13605 36688

(Para No: 16 of Chebrolu GP Golla Prolu (M) East Godavari Dist. For 2009-10)

12.3.11. GRAM PANCHAYATS -AMOUNTS DRAWN FROM GP FUNDS – NOT ACCOUNTED FOR IN CASH BOOK – RELEVANT RECORDS NOT PRODUCED – AMOUNT MISAPPROPRIATED RS. 2,52,145 /- During the course of audit, it was noticed that an amount of Rs. 2,52,145 /- was drawn from Gram Panchayat 12th finance Funds. But, the same was not recorded in the

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Cash book and Vouchers, M-Books and Other relevant records were not produced to audit for verification. Thus, it is construed that the amount was misappropriated. Hence, necessary action would need to be taken to recover the said amount from the person or persons responsible and made good to GP Funds besides initiating disciplinary action against them.

Name of the G.P/Dist. Cheque No. / Vr.No.& Dt. Amount shown in C.B.

Para No.

Vommangi/E.G.Dist. Ch.No.87631/29-3-2010 56000 18 Vommangi/E.G.Dist. 26/7-2009 4000 16 Vommangi/E.G.Dist. 50/30-3-2010 12600 Seetharampuram,E.G.Dist. Ch.No.99007/25-10-09 &

99008/13-3-10 51545 16

Vemulupadu,Nellore Ch.No.027526/22-5-09 2,000 9 Vemulupadu,Nellore Ch.No.027527/22-5-09 50,000 9 Vemulupadu,Nellore Ch.No.027528/26-5-09 40000 9 Vemulupadu,Nellore Ch.No.027529/21-8-09 23000 9 Vemulupadu,Nellore Ch.No.027530/12-1-09 13000 9 Total 252145

12.3.12. KEESARA GP OF RANGA REDDY DISTRICT – PURCHASE OF HIGHMAS LIGHTS – PAYMENT BILLS NOT PRODUCED FOR AUDIT – FUNDS MISAPPROPRIATED – AND OTHER IRREGULARITIES Rs.1,13,024/-

During the course of audit for the year 2009-10, it was noticed that a sum of Rs.1,13,024/- was drawn through Self Cheque No.000917, dated.30-06-2009 towards purchase of Highmas Lights. But the following formalities were not fulfilled in support of the purchases made as per rules.

1. The prior permission of the District collector has not been obtained. 2. Even though the EO,PRD has noted on Invoice No.318, dt. 20.02.2009, it is irregular bill

and excess of Rs.23,185/- the amount was paid. 3. Tenders were not called for the purchases 4. There is no evidential record for receipt of the material. 5. Gram panchayat have to pay through cheques for the suppliers of any item received by

the institution. But, in the present case payment was made through self cheque of the sarpanch which is highly irregular and against the rules framed in APPR ACT 1994.

6. The details of issue of the Highmas lights and the details of the utility were not shown to audit. As mentioned the purchase of the Highmas lights is treated as misappropriation and held under objection. Early action would need to be taken to recover the said amount from the persoin or persons responsible and made good to the GP funds early.

(Para No.14 of Keesara GP of Ranga Reddy District for the year 2009-10)

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13. EXCESS PAYMENTS

It was observed in audit that in several cases excess payments were made due to either. (a) Incorrect calculations or (b) Excess totaling in Bills or (c) Admission of inadmissible claims or (d) Lack of knowledge of Government instructions.

A consolidated statement of audit objections on Excess Payments noticed in audit is annexed vide Statement – 9 (13). A total number of 1780 cases involving an amount of Rs.276.71 lakhs were pointed out in the relevant Audit Reports.

13.1.1. ZP KAKINADA - MAINTENANCE OF VEHICLES - CONSUMPTION OF OIL UTILISED FOR VEHICLE NO. AP5BC-3456 OVER AND ABOVE THE CEILING FIXED – IRREGULAR-Rs.1,48,090/-

Government in G.O.Ms.No.602, PR & RD (Progs.III) Dept, Dated.4.10.1990 read with Govt.Memo.No9558/Progs.IV/91-1 dated.25.2.1991 of PR & RD Department instructed to impose 20% cut on petrol, limiting the maximum ceiling of Government vehicle per month on the consumption of petrol as 160 liters per month.

As verified from the log book maintained by the Chief Executive Officer, ZP, Kakinada in respect of the Car No.AP5BC 3456, it was noticed that the consumption of petrol has exceeded the limit fixed in the following months as detailed below.

Month Details of the consumption Rate per liter

Amount Involved for

the excess consumption

Rs.

Actual consumption

Ceiling Excess consumption

5/09 616 160 456 33.61 15326.16 6/09 582 160 422 33.61 14183.42 7/09 733 160 573 35.79 20507.67 8/09 618 160 458 35.79 16391.82 9/09 596 160 436 35.79 15604.44

10/09 562 160 402 35.79 14387.58 11/09 508 160 348 35.79 12454.92 12/09 508 160 348 35.83 12468.84 1/10 652 160 492 35.83 17628.36 2/10 415 160 255 35.83 9136.65

TOTAL 148089.86

The expenditure incurred on fuel over and above the ceiling fixed would need to be recovered from the person or persons responsible and made good to General funds of ZP Kakinada. (Para No.13 of General fund of Z.P.of East Godavari district for the year 2009-10)

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13.1.2. ZP SRIKAKULAM - VEHICLE INSURANCE CHARGES - DOUBLE PAYMENT MADE TOWARDS INSURANCE CHARGES - NEEDS RECOVERY.

In the following vouchers an amount of Rs.19,427/- was drawn and paid towards Insurance charges of the Vehicles of Zilla Parishad, Srikakulam for the periods noted against each. Sl. No.

Vr.No. & Date Progs. No. & Date

Vehicle No. Period for which Insured

Amount

1 484/ 27-10-2009 4529/2006/B2 Dt.27-10-2009

AP30F-3636 10-11-2009 to 9-11-2010

3684

2 513/ 7-11-2009 4529/2006/B2 dt. 6-11-09

AP30F-3636 10-11-2009 to 9-11-2010

15743

Total 19427

As verified from the above vouchers, it was noticed that the Insurance charges for the vehicle No.A.P.30F 3636 were drawn twice during the year for the same period which is irregular. But the connected Insurance Policies were not produced to audit for verification of the correctness of the above payments. Therefore, action would need to be taken to ascertain the correct payment of Insurance charges from the policies and recover the amount from the person or persons responsible and remitted to Z.P.General Funds.

(Para No. of General fund of Z.P.of Srikakulam district for the year 2009-10) 13.1.3. ZPP KADAPA - PAYMENT OF PF WITHDRAWAL AMOUNT IN EXCESS OF THE CREDIT - HIGHLY IRREGULAR RS.3,86,818/-. As could be seen from the connected ledgers, vouchers and other records, a sum of Rs.3,86,818/- was drawn and paid to the employees of ZP Kadapa., towards PF withdrawal amounts in excess of the credit, which is highly irregular. Under Article 300 of A P Financial Code Vol. I, the DDO is responsible for the excess payment as per G.O.M.S No. 293. Fin.Dept.Dt: 21-11-1981 as amended in G.O.M.S. No.14 Fin.Dept.Dt 18-1-1981 Sub-Rule (7) of Rule (13) and as per G.O. Ms.No.33 Finance (TFR.I) Department, dated 09-02-2006. Recovery should be effected in case of excess payment.

In the light of the above Government Order, early action would need to be taken to recover the excess payment made as per rules, besides taking disciplinary action against the persons responsible. (Para No. 42 of General fund of Z.P. of Kadapa for the year 2009-10) 13.1.4. ZP VIJAYANAGARAM - EXCESS PAYMENT DUE TO MAKING WRONG PASS ORDER IN WORK BILLS - NEEDS RECOVERY: Rs.32,160/- Vr.No.21/18-9-09 and 38/2-2010 M.B.No.2019-B and 2507-B Contractor: N.Banerjee On verification of the M.Book and Paid Voucher relating to “Formation of Gravel road from Koraput R & B road to Chandalingi”, it was noticed that an amount of

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Rs.32,155/- was excess paid to the Contractor due to short deduction of 1st and part bill from 2nd and final bill and short deduction of VAT as detailed below:

To be paid (Rs.)

Actually paid (Rs.)

Total value of work done is 19,72,969 19,72,969 Deduct VAT 1.2% 22,765 13,118 Net to be paid 19,50,204 19,59,851 Deduct 1st bill paid . 7,66,107 7,43,594 Deduct recoveries 1,42,069 1,42,069 Final amount 10,42,028 10,74,188 Excess paid . 32,160/-

Action would need to be taken to recover the excess payment of Rs.32,160/-from the persons responsible and made good to the ZP funds.

(Para No.8 of General fund of Z.P. of Vijayanagaram District for the year 2009-10)

13.1.5. ZP VIJAYANAGARAM - EXCESS AMOUNT PAID DUE TO PRICE VARIATION IN CEMENT AND STEEL:Rs. 5,42,643/- Name of the Work: Construction of Cause Way Across The Gomukhi River at Dabbagedda Estimated cost : Rs.145.00 lakhs. M.B.No : 2447A &2449A In the work - Construction of Causeway across Gomukhi river at Dabbagedda- it was observed from the connected records that it was administratively sanctioned under RSVY grant by the District Collector in January, 2008, which was later revised in December, 2009 to Rs.215.00 lakhs (RSVY Rs.200.00 lakhs plus matching from ACDP Rs.15.00 lakh) As per the conditions of the agreement the work has to be completed before 4-8-2009. The extension of time was granted by the C.E till 31-5-2010. And it was observed that:

1. The Bank guarantee and the Insurance Policy were not renewed in consonance with the extension of time, and making the payment without observing the validity of the Insurance Policy is irregular.

2. As per the conditions of the agreement, price adjustment shall be allowed for steel, cement, bitumenpol in terms of G.O.Ms.No.292, dt.28-7-2006 of PR & RD. But the price adjustment as mandated in the agreement was not effected as it was not favorable to the contractor, which omission has resulted in excess payment of Rs.9,82,138/- . The same has to be recovered from the concerned towards price variation between SSR rates and rates communicated by the Government based on sale price index towards Steel and Cement, as detailed below.

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CEMENT

Bill No.

Qtyin M.T-s

SSR Rates Rs.

Revised Rates due to Price variation

Rs.

Difference Rs.

Total amount paid in excess

Rs. 1st 119 4600 3900 700 83300 2nd 160 4600 3900 700 112000 3rd 127 4600 3900 700 88900 4th 25 4600 3900 700 17500 5th 110 4600 3900 700 17500 541 319200

STEEL Bill No.

Qtyin M.T-s

SSR Rates.

Revised Rates due to Price variation

Rs.

Difference Rs.

Total excess paid Rs.

2nd 34.05 40600 34500 6100 207705 5th 20.58 40600 34500 6100 15738 223443

Excess paid for cement : 319200 Excess paid for Steel : 223443 Total excess paid : 542643 The excess amount paid has to be recovered at least during the next/final bill from the contractor and fact intimated to audit, else it shall be recovered from the concerned individuals responsible for the excess payment.

(Para No.9 of General fund of Z.P. Vijayanagaram Dist.for the year 2009-10) 13.1.6. ZP SRIKAKULAM - PROVIDING M.P.W.S.SCHEME TO ZPP STAFF QUARTERS , SRIKAKULAM - ADOPTION OF HIGHER RATES FOR EXECTUION OF ITEM - VRCC(1:1/2:3) MIX USING 20MM SIZE HBG CHIPS -EXCESS PAYMENTS -NEEDS RECOVERY Rs.85,600/- Vr No. 856,Dt.15-3-2010, Gross Rs. 203843/-, Net Rs.2,01978/-. Departmental execution, Estimate: 5.00 Lakhs , M.B.No.9966/A.

In the above Voucher an amount of Rs.2,01,978/- was drawn towards CC First and part payment for execution of the work - PROVIDING M.P.W.S. SCHEME TO ZPP STAFF QUARTERS , SRIKAKULAM-. As verified from the M. Book No.9966/A and connected estimates, it was noticed that the higher rate was adopted for Execution of the item of V.R.C.C (1:1/2:3) MIX USING 20MM SIZE HBG CHIPS including cost and conveyance of all materials, Seinorage charges, all Labor charges, Centering and Machine mixing, Curing etc., complete for finished item of work was Rs.24,438-22 Per Cum instead of rate arrived for the said item for Rs.4438-22 Per Cum in the estimate resulted an excess payment of Rs.20,000/- Per Cum and a total amount of Rs. 85,600/- was paid for the total quantity executed for 4.28 cum without producing any authority for the adoption of the higher rate as shown below.

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Item of work Admissible as per estimate payment made Excess payme

nt Quantity Rate Amount Quantity Rate Amount

VRCC(1:1/2:3) MIX USING 20MM SIZE HBG CHIPS

4.28 cum 4438.22 18996 4.28 cum 24438.22 104596 85,600

Therefore action would need to be taken to recover the above excess payment of

Rs.85,600/- from the person or persons responsible and credited the same to Zilla Parishad General Fund immediately.

(Para No.34 of General fund of Z.P. of Srikakulam District for the year 2009-10) 13.1.9. ZP KAKINADA ESTABLISHMENT – SHORT RECOVERY OF HRA FROM SRI.B.BHAVANI DAS, CHIEF EXECUTIVE OFFICER WHO OCCUPIED ZP QUARTERS CONSEQUENTIAL LOSS TO ZP FUNDS-NEEDS RECOVERY-Rs.93,447/-

As verified from the pay bill of Sri B. Bhavani Das, Chief Executive Officer, Zilla Praja Parishad East Godavari District, Kakinada, it was noticed that an amount of Rs. 4,000/- pm was drawn by the officer under HRA and remitted to Zilla Parishad funds through challans towards the rent for the ZP Quarters occupied by the Officer. But, as per G.O.Ms.No. 239 F&P(FW.PC-II), Dept., Dated 26-9-2005, all Government Servants who have been provided with the quarters are not entitled for HRA besides recovery of 10% emoluments towards the rent. Consequent on the short remittance of rent, the ZP has sustained loss to a tune of Rs. 93,447/- as detailed below. Hence the loss thus sustained would need to be recovered from Sri B. Bhavani Das, Chief Executive Officer, Zilla Praja Parishad, East Godavari District, Kakinada and credited to ZP General Funds early.

(Para No.71 of General fund of Z.P. Kainada district for the year 2009-10)

Month & Year

Emoluments in Rs. Total amount of rent paid to ZP Rs.

PAY Rs.

PP Rs.

SP Rs.

DA Rs.

CCA Rs.

IR Rs.

Total Rs.

Apr-09 20300 100 110 10517 80 4466 35573 7557 May-09 20925 100 110 10841 80 4604 36660 7666 Jun-09 20925 100 110 10841 80 4604 36660 7666 Jul-09 20925 100 110 10841 80 4604 36660 7666

Aug-09 20925 100 110 10841 80 4604 36660 7666 Sep-09 20925 100 110 10841 80 4604 36660 7666 Oct-09 21550 100 110 11165 80 4741 37746 7775

Nov-09 21550 100 110 12992 80 4741 39573 7957 Dec-09 21550 100 110 12992 80 4741 39573 7957 Jan-10 21550 100 110 12992 80 4741 39573 7957 Feb-10 21550 100 110 12992 80 4741 39573 7957 Mar-10 21550 100 110 12992 80 4741 39573 7957

Total 93447

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13.2.1. MPP PARVATHIPURAM OF VIJAYANAGARAM DISTRICT - VARIATION BETWEEN PAYMENT RATE, AND PURCHASE PRICE OF CEMENT - RESULTED OVER PAYMENT - NEEDS RECOVERY.Rs.38,694/- During the Audit of BRGF 30% share for the year 2009-10 it was noticed that the works were executed Departmentally, it was noticed from the purchase bills of cement used on respective works, that there is variation of cement rate between the rate paid to the Departmental Officer and purchase Rate. Thereby resulted in excess Payment of Rs.38694/- as detailed under

Vr. No Date

Name of the Work

name of the supplier and Inv.No., date

Quantity

Kgs. to

each unit

Rate paid each Kg.. in

Rs.

Purchase rate Rs.

Total excess

paid Rs.

21/ 12.1.10 CC Road at Gopalapuram

Sai Padma Traders 171/11.1.10

22.49 Cum

350/ Cum

4 3.4 4723.00

22/ 12.1.10 CC Road at PedaBondapalli

Sri Sai enter Prises Bobbili 22/11.1.10

23.39 350 4 3.66 2783.41

25/ 29.1.10 CC Road at Kavitibhadra

Sri Sai enter Prises Bobbili 22/11.1.10

22.03 350 4 3.66 2621.57

20/7.12.09 CC Road in BC Colony of Pedabondapalli

Laxmi Modern Rice & Cement 20/18.1.10

13.69 129.6 4 3.4 1064.53

15.19 221.1 4 2015.10 29/19-12-09

CC Road at Bandaluppi


22.97 350 4 3.6 3215.80

10/14-10-09

CC Drain &Road at D. Mulaga


21.89 350 4 3.08 7048.58

11/14.10.09 CC Road & Drain at Bangarayya Colony of Narsipuram

Laxmi Modern Rice & Cement 32/

22.3 350 4 3.8 1561.00

12/7.11.09 CC Road at Devangula Veedhi of Narsipuram

Laxmi Modern Rice & Cement 10/

22.3 350 4 3.9 780.50

13/7.11.09 CC Road at Kykasa Street of Appanna DoraValasa of M.R.Nagaram.


22.3 350 4 3.8 1561.00

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14/7-11-09 CC Road at SangamValasa

S.V enter Prises 198/

22.2 350 4 3.8 1554.00

15/7-11-09 CC Road at Thalaburidi

Visweswary Fancy & General Stores Seethanagaram

22.19 350 4 3.9 776.65

17/7-11-09 CC Road in BC Colony of Putturu

Sri Vasavi Stores

20.89 350 4 3.6 2924.60

18/30-11-09

CC Road in SC Colony of Balagodaba

Laxmi Modern Rice & Cement

21.8 350 4 3.6 3052.00

19/30-11-09

CC Road from R&B Raod to BC Colony

Sai Rama 21.52 350 4 3.6 3012.80

Total 38694.54 (Para No. 24 of MPP Parvathipuram of Vijayanagaram District for 2009-10) 13.2.2. MP NAGARAM OF GUNTUR DISTRICT- ADVANCE DRAWN FOR EXECUTION OF WORK - BALANCE AMOUNT NOT REIMBURSED TO M.P.GENERAL FUNDS: Rs.14,753/-.

In Voucher No.95/08-09, an amount of Rs.85,000/-, advance was paid to Sri.K.Koteswara Rao, Edupalli towards execution of work, “Development of Internal Roads in S.T.Colony of Nagaram Gram Panchat”. As verified from page 31 of M.Book No.12A/2003.2004, it was noticed that the net value of the work done was Rs.70,247/-. The excess amount of Rs. 14,753/- paid to the contractor is not refunded. Early action would need to be taken to recover the excess amount from Sri.K.Koteswara Rao and credited to M.P.General Funds.

(Para No. 8 of MP Nagaram of Guntur District for the year 2009-10) 13.2.3. MP PULKAL OF MEDAK DISTRICT- BALANCE WORK OF C.C. ROAD, VENDIKOLE - EXCESS RATES ADMITTED - CAUSED EXCESS PAYMENT TO THE CONTRACTOR - NEEDS RECOVERY - Rs.17,536/- During the course of audit of the work bills, of CC Road at Vendikole, it was noticed that payment was made to Sri G. Ramulu, Contractor vide Vr.No.185/11.08.2009. The same was recorded in the M.B. No.140/BM/09 (P.No.8). On verification of the M.Book with reference to the connected file, it was noticed that the excess rates were admitted in the following items.

Sl. No. Name of the Item

Rate as per M.B.

per 10 Sq.M

Rate as Per

Estimate

Difference

Quantity

Sq.M

Total Excess

1 Flooring with shabad stone over a sand bed of 100 mm

4112.17 2056 2056.17 69

14188

2 RR Masionry in CM 1:6 prop. Using HG stone

2029.80 1716.25 313.55 9.32 2922

3 Collection of good gravel & stocking to the Dept. guage

263.72 243.15 20.57 20.70 426

TOTAL 17536

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Due to allowing of excess rates, an amount of Rs.17,536/- was excess paid to the

contractor. Immediate action would need to be taken to recover the same from the person or persons responsible and credited to the Mandal Parishad Funds.

(Para No.11 of MPP Pulakal of Medak District for the year 2009-10) 13.3.1. GAGGILAPUR GP OF RANGA REDDY DISTRICT-PAYMENT MADE WITH OUT DEDUCTING THE STATUTORY DEDUCTIONS-CONSEQUENTIAL EXCESS PAYMENT-NEEDS RECOVERY -Rs.12,225/-.

During the course of audit of Gaggillapur G.P. R.R.district for the year 2009-10, it was noticed that an amount Rs.77,707/- was paid to Sri P. Rama Raju Contractor towards formation of Gravel Road in Gagillapur Thanda as detailed below without deducting the statutory recoveries like VAT, Seigneorage, etc., Consequently an amount of Rs. 12,225 /- was excess paid to the contractor. Hence the excess payment made would need to be recovered from person or persons responsible and remitted the same to the Income tax and Mines & Geogology Departments, and Challans produced to Audit for verification.

Name of the work

Value of work

done Rs.

Deductions made Rs.

Net to be paid Rs.

Actually paid Rs.

Excess paid Rs.

M-Book No

Formation of Gravel Road in Gagillapur Thanda

77 77,707

VAT 1,072 SC 11,153 Total 12,225

65,482 77,707 12,225 58

(Para No:11 of Gaggillapur GP, Kutbulla Pur (M) R.R. Dist. for 2009-10)

13.3.2. VEERAPAKOLLU GP OF NELLORE DISTRICT -PAYMENT MADE BEYOND TOTAL VALUE OF WORK DONE- EXCESS PAYMENT – NEEDS RECOVERY Rs. 19,776/- During the course of audit of Veerapakollu G.P. Nellore district for the year 2009-10, it was noticed that excess payment was made in erecting of Motor to Bore under MPWS Scheme over and above the amount certified by the Engineering authority as detailed below.

Details of work Value of Estimate

M. Book No & Page

No

Total Value

Deduc tions

Certified by the Engine ering

Authority

Pay Ment made

Excess pay

ment

Errection of Motor to Bore to MPWS Scheme at

Veeranna kola ( V )

100000 4043_D P.No: 73 76224

-

76224 96000 19776

The same would need to be recovered from the person or persons responsible and made

good to the GP funds.

(Para No. 16 of Veerapakollu (GP) Kaligiri (M) of Nellore District for 2009-10)

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13.3.3. VARAKAVI GP OF NELLORE DISTRICT –PAYMENT MADE BEYOND TOTAL VALUE OF WORK DONE- EXCESS PAYMENT – NEEDS RECOVERY RS. 73,679 /-

During the course of audit of Varakavi GP of Nellore District for the year 2009-10, it was noticed that excess payments were made in execution of the works as detailed in the table.

Vr No & Dt Details of Work Amount Paid

Value of the work

done

Excess payment

M.B No & P.No

46/8-12-09 Construction of Gram Panchayat Office 3,60,000 2,86,417 73,583 294/22

48/14-12-09

Jungle clearance and leveling from Ananthapuram Main road to P.V. Subbaiah House

16,182 16,086 96 297/37

Total 3,76,182 3,02,503 73,679

The same would need to be recovered from mthe person and persons responsible and made good to the GP funds. (Para No. 11of Varakavi (GP) T.P.Guduru (M) Nellore District for 2009-10) 13.3.4.. PRATHIPADU GP WEST GODAVARI DISTRICT – EXCESS PAYMENT MADE FOR THE WORKS – NEEDS RECOVERY RS. 89,992/.

During the course of audit on the accounts of Prathipadu GP of West Godavari District for the year 2009-10 is was noticed that an excess payment was made in execution of work Construction of Steps to canal at various places as detailed below.

Value of work

done Rs.

Deductions made

Rs.

Net value of work

done

Details of the payments made Rs.

Excess payment made Rs.

M.B No & P.No

1,58,151 S.C. 768 1,57,383

Previous payment From TFC 50,000 Paid in 09-10 1,97,375 Total paid 2,47,375

89,992

Page No. 51 of M-Book No.

5A/GP/99-00

Hence the said excess payment of Rs. 89,992/- made in the above work would need to be recovered from person or persons responsible and made good to GP Funds.

(Para No. 19 of Prattipadu (GP) Pentapadu (M) West Godavari District for 2009-10) 13.3.5. TOOPRAN GP OF MEDAK DISTRICT - EXCESS DRAWAL OVER AND ABOVE THE FIRM BILLS - NEEDS RECOVERY Rs. 28,928/-

During the course of audit of G.P. Toopran in Medak district for the year 2009-10, it was noticed that a sum of Rs.28,928/- was drawn and paid to Om Shivam Traders, Bibinagar. The amount was drawn through self cheques and paid to the traders in excess

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to the actual bill amount as detailed below. Therefore, the excess payment would need to be recovered from the person or persons responsible and made good to the GP funds.

Sl. No.

V.No & dt Material purchased

Name of the

supplier

Amount paid

Bill amount

Excess paid

1. 73/20.04.09 Bleaching powder lime and DDT

OM Shiva traders Bibinagar

45032 40000 5032 2 146/18.07.09 Street lighting

goods 49864 33580 16284 3 147/18.07.09 -do- 60132 52520 7612 Total 155028 126100 28928

(Para No.15 of Toopran GP.Medak district for the year 2009-10)

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 Article 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 Institutions for the year 2009-10 were expenditures that were avoidable extraordinary and lacked proper planning. A Consolidated Statement–9(14) showing audit objections on Wasteful Expenditure is appended to the Report from which it could be seen that an amount of Rs.72.54 lakhs was pointed out in 271 audit paras. A few such paras are given below. 14.1.1 ZP RANGA REDDY -PR SUB-DIVISION MAHESHWARAM: WORK LEFT INCOMPLETE: EXPENDITURE INCURRED UNFRUITFUL: HELD UNDER OBJECTION: RS.1,73,835/-.

During the course of audit, it has been observed that in the case detailed below, the work has been left incomplete and the following defects have been noticed;

1) There is no proper assurance that the works would be completed within a stipulated time frame and the availability of matching grants for the completion of the works has also not been guaranteed.

2) The total expenditure needed for the completion of the balance works has not been worked out and the claims that these would be taken up by other grants have not been substantiated by any written assurance.

3) The Agreement Contract between the Contractor and EEPR Hyd is for the full completion of the work and not for part completion as has been done in the following cases .The structures have been left incomplete which is a clear violation of the Agreement Contract.

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4) There is a considerable lapse of time since the completion of the part structures (buildings) and there is no follow-up action taken to ensure the completion of the work.

There is a lot of ambiguity about these crucial issues relating to the completion of the works as a result of which expenditure incurred so far is deemed to be wasteful .Further there is a considerable lapse of time since the completion of the part structures (buildings) implying locking up of resources in incomplete constructions which do not serve any purpose and in the scenario that these incomplete structures are left as such the entire expenditure is wasteful and does not serve the purpose that it was intended for. There is no information given to audit regarding the completion of the works and work completion report if any along with connected files and recordings in M.B.s have to be produced to audit to prove the completion of work. Name of the work: Construction of Community Hall at Lemoor Village Kandukur Mandal . Administrative Sanction: CEO ZP RR Dist.Proc.No.B1/3507/2007 dated 30-11-07. Technical sanction: Vide SDR No.1/919/2007-08 dated 13-12-2007 Estimated Cost: Rs.2 Lakhs Under 35%ZPGF. Name of Contractor: G.Yadaiah VLC President on nomination basis. Date of completion of work: 15.082009 M.B.No.526/BH/07-08

Payment made vide Vr.No.190 chq.No.009085 dated 17.08.2009 for Rs.1,73,835/- and the gross value of work done is Rs.1,99,638/-. The construction has not taken off from the basement level as per the sanctioned estimate and no information about the completion of this building has been shown to audit leading to the conclusion that even after a lapse of almost a year and a half the construction is incomplete. Thus the expenditure is treated as wasteful.

(Para No. 4 of General fund of ZP of Ranga Reddy district for the year 2009-10) 14.1.2.ZP VISAKHAPATNAM - WASTEFUL EXPENDITURE - MAINTENANCE OF WIRELESS SETS - AMOUNT PAID BUT NOT INSTALLED - NEEDS EARLY ACTION Rs. 4,29,851/-

During the course of audit on the accounts of Zilla Parishad General Funds, Visakhapatnam for the year 2009-10, it was noticed that an amount of Rs.4,29,851/- Vide Vr No: 135 Dt: 6-09 in cheque No:723108, Dt:29-6-09 was paid to Link well electronics ( P ) Ltd., Opp: Amaravathi Hotel Dabagardens, Visakhapatanam for installation of 3 repeater stations and 42 wireless sets and for annual maintenance.

As verified the vouchers and connected files, spare parts were supplied by the above agency for Rs.3,08,351/-. But they were not installed the repeater stations and 42 wireless sets till to date. Due to non installation of repeater stations and wireless sets a total amount of Rs.3,08,351/- and annual maintenance charge for Rs.1,21,500/- aggregate of. Total Rs. 4,29,851/- is treated as wasteful expenditure. Hence necessary action would need to be taken to complete the installation of wireless sets and if any loss caused due to the above payment would need to be recovered from the person or persons responsible.

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14.1.3. ZP SRIKAKULAM - SSA GRANT- DRILLING OF BOREWELL AT ZP HIGH SCHOOL, G.SIGADAM- DRY BORE - WASTEFUL EXPENDITURE: Rs.18,212/-

During the course of audit for the year 2009-10, it was noticed that an amount of Rs.18212/- was drawn vide voucher No.16/.6.2009 and paid to Ravindranadh Bore well Drillers, Srikakulam towards drilling charges for -Drilling of bore well at ZP High School, G.Sigadam.-But as verified from the work file and M-Book No.1450/A, it is noticed that the bore was drilled up to a depth of 60 RMts and found that no yield of water resulting in the loss. The Geologist failed to give correct report which resulted in wasteful expenditure such expenditure shall be avoided in future. (Para No.7 of General fund of ZP of Srikakulam district for the year 2009-10) 14.1.4. ZPP NELLORE ZILLA PARISHAD GUEST HOUSE - NOT REMUNERATIVE- HUGE AMOUNT PAID TOWARDS C.C.CHARGES- WASTEFUL EXPENDITURE RS.80,620/-

An aggregate amount of Rs.80,620/- was drawn and paid towards the Electricity consumption charges of Zilla Parishad Guest House Nellore for the year 2009-10 as detailed below.

Month Amount 3/09 4218

Arrear 9997 4/09 6500 5/09 5350 6/09 10177 7/09 7572 8/09 6364 9/09 7466 10/09 6389 11/09 4267 12/09 1200 1/10 5331 2/10 5789

Total: 80620 An amount of Rs.21,375/- only was adjusted towards the rent of Z.P.Guest House for the year 2009-10. Reasons for heavy E.C.Charges without proper income is not explained. Immediate action would need to be taken to avoid the heavy C.C.Charges in future. Para No. 24 of General fund of ZP of Nellore district for the year 2009-10) 14.2.1.MP MANGANUR OF MAHABOOBNAGAR DISTRICT - RCC PIPES PURCHASED WORK NOT COMPLETED LEFT INCOMPLETE WASTEFUL EXPENDITURE - NEEDS ACTION FOR RECOVERY. Rs. 37,548/- An amount of Rs.37,548/- was drawn and paid to Sri. Sigurappa, Contractor towards purchase of S/D of RCC pipes 800 mm NP3 class 2.50 rent for the working of culvert from Hanuman Temple to BC colony and the same was recorded in MB No. B/696/04-05, Page. No.162, check measured date 23.5.2009 vide Ch. No. 6/3/91, Dt:-

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6.6.09. On verification of connected file and estimate, it was noticed that the Technical sanction was accorded in 5.2.2009 for above work. But the work was left incomplete till date of audit (one year 10 months). Purchases made without proper utilization leads to wasteful expenditure and held under objection. Therefore immediate action would need to be taken for recovering of Rs. 37548/- from the person responsible.

(Para 16 of MPP Manganur of Mahboobnagar District for the year 2009-10) 14.3.1. MYLAVARAM GP OF KRISHNA DISTRICT-PAYMENT MADE TOWARDS J.C.B. RENT FOR SILT CLEARANCE – WASTEFUL EXPENDITURE – ]NEEDS REGULATION – RS. 64,587/-.

As verified from the Cash Book for the year 2009-10 of Mailavaram Gramapanchayat, it was noticed that an amount of Rs.64,587/- was incurred towards rent for J.C.B for Silt clearance in various places of the village as detailed below. But, in the said Gram Panchayat, 50 individuals were engaged as sweepers on contract basis. Hence, it is not rational to engage J.C.B for Silt clearance in the village in addition to manpower already engaged. But the work was not approved by the Gram Panchayat as per the A.P.P.R Act 1994. Hence, the expenditure made is considered as wasteful. Necessary inquiry may be conducted and necessary action would need to be intiated against the persons responsible if any loss is noticed.

Sl. No.

Vocher No.& Date Details Amount

Paid 1 73/30-7-2009 Silt clearance at Chinna Cherulu 5400 2 85/7-9-2009 Silt Clearance at Pathanjuveedu Road

Canael 8875

3 130/19.11.2009 Silt Clearance in Various places of the village

9625

4 138/30.11.2009 Sanitation in Village 2625 5 146/9.12.2009 Silt clearance in various places of the

village 11425

6 180/12.01.2010 Silt clearance in various places of the village

16500

7 209/30-1-2010 Silt clearance in various places of the village

10137

Total 64587 (Para No. 33 of Mylavaram (GP) Mylavaram (M) Krishna District for 2009-10)

14.3.2. BOLLARAM GP OF MEDAK DISTRICT - EXCESS COLLECTION OF THE GRAVEL THAN THE QUANTITY SPREAD- WASTEFUL EXPENDITURE - NEEDS REOVERY Rs.43, 951/- a) Name of the work: Metalling of road at Beerappa basti In bollaram Name of the contractor: N. Pratap Reddy MB No.262/B/ Page.No.10 Esti.2.00L Value of work done Rs.189822

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As seen from the MB and the estimate, the work to be executed among others, was Metalling of road at Beerappa Basti in Bollaram Village for which following quantity of gravel collected 271.48 Cm and spreading of gravel was 1552.52. Sq.m

Item Quantity Rate Amount Gravel 271.48 Cm Rs194.50 Rs. 52800.00 Spreading 1552.52.00 Sq.m Rs. 55.52 Rs. 8557.49

But with reference to the area i.e. 1552.52 Sq. Mts and thickness of 100 mm with which the gravel was spread, the quantity required arrives to 155.25 cum. The reasons for excess collection of the earth and gravel as shown above and making payment to the same could not be made out. Gravel - 271.48 Cm - 155.25 Cum = 116.23 Cum X Rs 194.50 = Rs.22606.73/- b) Name of the work: Metalling of road at Beerappa basti in bollaram Name of the contractor: N. Pratap Reddy MB No.264/B/ Page.No.10 Esti.1.9L Value of work done Rs.179826/- As seen from the MB and the estimate, the work to be executed among others, was Metalling of road at Beerappa basti in bollaram village for which following quantity of gravel collected 257.21 Cm and spreading of gravel was 14.70. Sq.m

Item Quantity Rate Amount Gravel 257.21 Cm Rs194.50 Rs.50027.34 Spreading 1470.00 Sq.m Rs. 55.12 Rs. 8102.64

But with reference to the area i.e. 1470.00 Sq. Mts and thickness of 100 mm with which the gravel was spread, the quantity required arrives to 147.00 cum. The reasons for excess collection of the gravel as shown above and making payment to the same could not be made out. Gravel - 257.21 Cm - 147.00 Cum = 110.21 Cum X Rs 194.50 = Rs.21345.84 The amount of Rs.43,951/- (Rs.22606.73/- + Rs.21345.84) paid to the excess gravel than the required quantity could not be admitted in audit and needs recovery from the person or persons responsible.

(Para No.31 of Bollaram GP of Medak District for the year 2009-10) 15. INSTANCES OF CASES UNACCOUNTED FOR CASH / STORES

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 to the Report showing 529 paras involving an amount of Rs.29.51 lakhs.

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15.1.1. ZP KADAPA - SPARES AND REPAIRS TO VEHICLE - REPLACED PARTS NOT ACCOUNTED FOR - NEEDS ACTION .

An amount of Rs.1,40,572/- was incurred towards spares and repairs of vehicle of Chairman, Zilla Parishad, Kadapa, vehicle No. AP 04 L 7799 paid to Harsha Automotive PVT. LTD., Nellore. Though many parts were replaced, the replaced parts were not accounted for in the Register of Unserviceable Articles which could have been auctioned and some revenue could have been earned to the institution. Non pursuance by the concerned Authorities for return of the unserviceable parts resulted in loss to the Institution. An amount of Rs.1,10,773/- was incurred towards spare parts / repairs of vehicles by the Chief Executive Officer, Zilla Parishad, Kadapa, vehicle No.AP 04 D 9009 without recording the details of parts replaced in the connected registers resulting in un-accounting of the unserviceable parts. Non pursuance by the concerned authorities for return of the unserviceable parts resulted loss to the Institution, otherwise some revenue could have been earned by auctioning / selling those unserviceable parts as scrap.

(Para No.30 of General fund of ZP Kadapa district for the year 2009-10) 15.3.1. VENKANNAPALEM GP OF NELLORE DISTRICT - AMOUNTS COLLECTED NOT FULLY REMITTED TO GP FUNDS- IRREGULAR – NEEDS ACTION RS. 5,389 /-

As verified from the D.C.B. Register, an amount of Rs.1,91,557/- was shown as collections. But an amount of Rs.1,86,167/- was only brought to Cash Book leaving balance of Rs.5,389/-. Hence immediate action would need to be taken to remit the balance amount to GP Funds. The loss, if any in this regard would need to be recovered from person or persons responsible and made good to GP Funds.

( Para No: 14 Venkanna palem GP, T.P.Gundur (M) Nellore district for 2009-10) 15.3.2. GARBHAM GP OF VIJAYANAGARAM DISTRICT - NON MAINTENANCE OF REGISTER OF UNSERVICEABLE ARTICLES ALONG WITH NON CONDUCT OF AUCTION-LOSS TO GP FUNDS.

As per the GO.Ms.33 PR&RD dated 03.02.2006, the maintenance of bore wells shall be entrusted to the respective Mandal Parishads. The GP has incurred huge amount on purchasing the Bore materials from 12th Finance Grant, SFC and GF for maintenance of bores. While the old materials are replaced with the new materials, the old materials have to be taken in to stock and realize the amount duly auctioning the materials. But the procedure of maintenance of Stock Register of Unserviceable Articles and auctioning them were not followed by the GP authorities, and even no receipt was added to the GP from auction of Unserviceable article of Bores.

THE DETAILS OF PURCHASES DURING LAST THREE YEARS Year Fund name Amount

2007-08 GF 14220 12th 18519

2008-09 GF 3454 12th 20000

2009-10 GF 33220 SFC 10000 12th 25000 Total 124413

(Para No.14 of Garbham G.P. Vizianagaram District for the year 2009-10)

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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) Department, dt. 10-4-2002, Government 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.

A Consolidated Statement – 9(16) showing audit objections on Pendency of Utilization Certificates is appended to the Report from which it could be seen that an amount of Rs.9288.79 lakhs was pointed out in 6676 audit paras. 16.1.1. ZP MACHILIPATNAM - PAYMENTS MADE TO PAY AND ACCOUNTS OFFICER ON WORKS - WORKS EXECUTED BY THE EXECUTIVE ENGINEERS IN KRISHNA DISTRICT - UNSPENT BALANCES NOT RETURNED - UTILZATION CERTIFICATION NOT PRODUCED - IRREGUALR - NEEDS ACTION Rs 10,61,66,699/- During the course of audit on the accounts of General Funds of Zilla Parishad, Krishna for the year 2009-10, it is noticed that a total amount of Rs.10,61,66,699/- was drawn and paid to P.A.O. towards payments to be made towards the works executed by the Executive Engineers in Krishna District during the year under audit

Sl.No. Vr.No.&Date

Amount Details of payments made

1.107/2.5.09 1097814 Towards the payment of Z.P.Seignerage grant to EE,PR, Machilipatnam and Nuziveedu

2.108/2.5.09 246168 Towards the payment of Z.P.Seigniorage grant to EE/PR, Machilipatnam and Nuziveedu.

3.109/2.5.09 111632 --do-- 4.110/2.5.09 398425 --do-- 5.111/2.5.09 397880 --do-- 6.112/2.5.09 264999 --do-- 7.113/2.5.09 212471 --do-- 8.114/2.5.09 299917 --do-- 9.169/12.5309 297290 --do-- 10.170/12.5.09 1103345 --do-- 11.171/12.5.09 490372 --do-- 12.175/12.5.09 385000 --do--

101

13.176/12.5.09 299959 --do-- 14.177/12.5.09 247957 --do-- 15.178/12.5.09 235265 --do-- 16.179/12.5.09 223334 --do-- 17.180/12.5.09 198592 --do-- 18.181/12.5.09 595407 --do-- 19.183/12.5.09 299176 --do-- 20.184/12.5.09 300000 --do-- 21.185/12.5.09 297228 --do-- 22.186/12.5.09 198783 --do-- 23.187/12.5.09 120000 --do-- 24.191/19.5.09 248598 --do-- 25.205/22.5.09 88567 --do-- 26.206/22.5.09 298177 --do-- 27.207/22.5.09 203810 --do-- 28.208/22.5.09 49437 --do-- 29.209/22.5.09 349953 --do-- 30.210/22.5.09 494667 --do-- 31.211/22.5.09 145000 --do-- 32.212/22.5.09 296814 --do-- 33.213/22.5.09 1225790 --do-- 34.215/22.5.09 71700 --do-- 35.216/22.5.09 497962 --do-- 36.218/22.5.09 499847 --do-- 37.219/22.5.09 648805 --do-- 38.220/22.5.09 149600 --do-- 39.221/22.5.09 299055 --do-- 40.222/22.5.09 98250 --do-- 41.234/30.5.09 297628 --do-- 42.274/1.6.09 289132 --do-- 43.275/1.6.09 399432 --do-- 44.276/4.6.09 99413 --do-- 45.277/4.6.09 200000 --do-- 46.278/4.6.09 572133 --do-- 47.280/4.6.09 191122 --do-- 48.281/4.6.09 131890 --do-- 49.282/4.6.09 210515 --do-- 50.283/4.6.09 297503 --do-- 51.284/4.6.09 484741 --do-- 52.285/4.6.09 143777 --do-- 53.286/4.6.09 198998 --do-- 54.299/6.6.09 227850 --do-- 55.301/6.6.09 107471 --do--

102

56.304/6.6.09 395829 --do-- 57.305/6.6.09 49795 --do-- 58.315/10.6.09 99370 --do-- 59.316/10.6.09 174491 --do-- 60.317/10.6.09 199082 --do-- 61.320/15.6.09 296772 --do-- 62.324/17.6.09 204656 --do-- 63.325//17.6.09 249951 --do-- 64.326//17.6.09 494576 --do-- 65.327//17.6.09 247525 --do-- 66.328//17.6.09 35535 --do-- 67.330//17.6.09 298455 --do-- 68.334//20.6.09 695589 --do-- 69.335//20.6.09 187779 --do-- 70.336/20.6.09 368155 --do-- 71.337/20.6.09 99399 --do-- 72.341/22.6.09 199691 --do-- 73.343/23.6.09 89154 --do-- 74.348/28.6.09 152000 --do-- 75.349/28.6.09 621631 --do-- 76.350/28.6.09 281000 --do-- 77.392/2.7.09 898359 --do-- 78.394/2.7.09 97929 --do-- 79.395/2.7.09 48808 --do-- 80.410/3.7.09 68061 --do-- 81.411/3.7.09 101056 --do-- 82.491/8.7.09 205000 --do-- 83.492/8.7.09 85569 --do-- 84.493/8.7.09 85569 --do-- 85.502/10.7.09 85712 --do-- 86.503/10.7.09 695053 --do-- 87.504/10.7.09 247551 --do-- 88.505/10.7.09 16813 --do-- 89.508/14.7.09 447016 --do-- 90.510/14.7.09 240780 --do-- 91.514/15.7.09 17936 --do-- 92.515/15.7.09 295000 --do-- 93.517/15.7.09 837344 --do-- 94.518/15.7.09 496368 --do-- 95.523/16.7.09 200000 --do-- 96.533/23.7.09 497267 --do-- 97.534/23.7.09 180873 --do--

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98.535/23.7.09 22179 --do--

99.544/29.7.09 294442 --do-- 100.545/29.7.09 99641 --do-- 101.546/29.7.09 644400 --do-- 102.547/29.7.09 298376 --do-- 103.613/19.8.09 298400 --do-- 104.614/19.8.09 96900 --do-- 105.615/19.8.09 647637 --do-- 106.616/19.8.09 447787 --do-- 107.617/19.8.09 272338 --do-- 108.618/19.8.09 293113 --do-- 109.619/19.8.09 84513 --do-- 110.620/19.8.09 988899 --do-- 111.634/26.8.09 87226 --do-- 112.635/26.8.09 199583 --do-- 113.636/26.8.09 249542 --do-- 114.637/26.8.09 102645 --do-- 115.638/26.8.09 100000 --do-- 116.639/26.8.09 399946 --do-- 117.643/1.9.09 299541 --do-- 118.644/1.9.09 497783 --do-- 119.686/2.9.09 291317 --do-- 120.687/2.9.09 300000 --do-- 121.705/11.9.09 253738 --do-- 122.706/11.9.09 298232 --do-- 123.707/11.9.09 394011 --do-- 124.708/11.9.09 200000 --do-- 125.711/14.9.09 950000 --do-- 126.720/16.9.19 96712 --do-- 127.725/17.9.09 35707 --do-- 128.726/17.9.09 42183 --do-- 129.810/9.10.09 299364 --do-- 130.811/9.10.09 84438 --do-- 131.821/20.10.09 138629 --do-- 132.822/20.10.09 248185 --do-- 133.826/20.10.09 102000 --do-- 134.827/20.10.09 61000 --do-- 135.837/24.10.09 190235 --do-- 136.838/24.10.09 86485 --do-- 137.839/24.10.09 74722 --do-- 138.846/28.10.09 10000 --do-- 139.847/28.10.09 49825 --do--

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140.848/28.10.09 463213 --do-- 141.849/28.10.09 2667995 --do-- 142.850/28.10.09 7573344 --do-- 143.851/28.10.09 1942826 --do-- 144.853/30.10.09 495517 --do-- 144.913/16.11.09 31124 --do-- 145.914/16.11.09 125500 --do-- 146.915/16.11.09 50000 --do-- 147.916/16.11.09 741787 --do-- 148.922/23.11.09 299219 --do-- 149.923/23.11.09 200000 --do-- 150.924/23.11.09 149988 --do-- 151.925/23.11.09 494827 --do-- 152.926/23.11.09 2942840 --do-- 153.927/23.11.09 8869126 --do-- 154.940/30.11.09 49519 --do-- 155.985/2.12.09 892389 --do-- 156.986/2.12.069 140510 --do-- 157.991/13.12.09 100000 --do-- 1588.982/13.12.09 299999 --do-- 159.993/13.12.09 337173 --do-- 160.998/13.12.09 200000 --do-- 161.999/13.12.09 248476 --do-- 162.1003/12.12.09 697882 --do-- 163.1004/15.12.09 492869 --do-- 164.1005/15.12.09 175000 --do-- 165.1006/29.12.09 290100 --do-- 166.1024/29.12.09 13640 --do-- 167.1025/29.12.09 147573 --do-- 168.1028/31.12.09 2927567 Paid to—PAO 169.1135/22.1.10 91258 --do-- 170.1136/22.1.10 500000 --do-Guntur 171.1207/22.1.10 744500 --do-Vijayawada 172.1208/22.1.10 53699 --do-- 173.1232/2.3.10 167966 --do-- 174.1281/9.3.10 148392 --do-- 175.1282/9.3.10 70988 --do-- 176.1283/9.3.10 49634 --do-- 177.1284/9.3.10 497813 --do-- 178.1285/9.3.10 199978 --do-- 179.1288/9.3.10 266201 --do--

105

Thus, a total amount of Rs.10,61,66,699/- was paid to the Pay and Accounts Officer for payment of works executed by the Executive Engineer, but, the unspent balances, if any were not returned and Utilization Certificates were also not obtained and produced to audit for verification.

(Para No. 41 of General fund of Z.P.of Machilipatnam, Krishna dis. for 2009-10) 16.1.2. ZP ELURU OF WEST GODAVARI DISTRICT - 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.

Sl.No. Name of the Grant Total Amount (Rs.) 1 T.F.C Grant 122306000 2 S.F.C Grant 15173290 3 35% General Funds 41170385 4 9% D.W Funds 8284654 5 16.2 % SC Funds 8808271 6 6.6 % ST Funds 873960 7 15% W.W Funds 20836218

(Para No. 55 of General fund of Z.P.of Eluru,W.G. district for 2009-10)

16.1.3 ZP RANGA REDDY -AMOUNT RELEASED TO VARIOUS INSTITUTIONS UNDER VARIOUS SCHEMES – U.Cs NOT PRODUCED.

According to article 211 A(2) of the AP Financial code Vol-I and read with GO.Ms.No.43 Fin & Plg 22-7-2000, it is responsibility of the Grant Receiving Authority to send the Utilization Certificates in the proforma prescribed duly getting the same certified by the Dist Audit Officer, State Audit. An amount of Rs.66,10,97,952/- was released to various institutions under various schemes (noted below) during the year 2009-10.

1 SFC 4156922 2 TFC 130441000 3 35% GF Works 89800000 4 9% RWS Works 19745000 5 EMF 46000000 6 4% PCG 100817400 7 8% PCG 201634800 8 JD (Agri) 2035980 9 AD (Fisheries) 1081700

106

10 Animal Husbandry 2869450 11 Seig Charges (ZP) 29261900 12 Seig Charges (MP) 19988800 13 Solar Water Heater 100000 14 BC Welfare 105000 15 Maintenance of Works 13060000

TOTAL 661097952

The Utilization Certificates along with connected records were not produced to audit for verification. The early action would need to be taken to produce the U.Cs etc to audit.

(Para No. 11 of General fund of Z.P.of Ranga Reddy district for the year 2009-10) 16.1.4. Z.P. ADILABAD-AMOUNT TRANSFERRED TO THE EXECUTIVE DIRECTOR, S.C. CORPORATION, ADILABAD TOWARDS 15% EARMARKED FUND FOR THE WELFARE OF SCHEDULED CASTES FROM THE ZILLA PARISHAD GENERAL FUNDS - UTILIZATION CERTIFICATE NOT OBTAINED -RS. 7,55,865/- An amount of Rs.7,55,865/-was drawn and paid to the Executive Director, S.C. Corporation, Adilabad from the General Funds towards 15% Earmarked fund for the year 2008-09 for the utilization of welfare of Scheduled Castes during the year 2009-10 vide Vr. No. 155/8/2009. But, the Utilization Certificate was not obtained from the Executive Director, S.C. Corporation, Adilabad and produced for verification in audit. In the absence of the same the correctness of the utilization of funds could not be ascertained in audit. Hence immediate action would need to be taken to obtain the Utilization Certificates from the Executive Director, SC Corporation, Adilabad.

(Para No. 42 of General fund of Z.P.of Adilabad district for the year 2009-10) 16.3.1. ATMAKUR G P OF NELLORE DISTRICT - UTILZATION CERTIFICATES NOT FURNISHED-NEEDS ACTION. During the course of audit of Gram panchayats for the year 2009-10, it was noticed that the Utilization Certificate for the grant released during financial year 2009-10 were not prepared and furnished to the Grant Releasing Authority and to Audit. Hence necessary steps would need to be taken to produce the Utilization Certificates for counter signature of the Competent Authority.

Details of Utilzation Certificate

Sl . No.

Name of the District

Name of the Grant

Amount of Grant including

OB

Utilzation Balance Para No.

1 Atmakuru, Nellore TFC . 1754758 1492171 262577 38 2 Atmakuru, Nellore SFC ¹ 370879 298489 72390 38 3 Atmakuru, Nellore SFC ¹ 107965 93448 14517 22 4 Atmakuru, Nellore TFC . 22974 22974 - 22

(Para No. 22 Atmakuru (GP) Atmakuru (M) Nellore District for 2009-10)

107

17. SURCHARGE CERTIFICATES RECOVERY PENDING

In accordance with the provisions 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, misutilization, 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 not react within the time as per rules.

A Consolidated Statement – 9(17) showing audit objections on Surcharge certificates recovery pending is appended to the Report from which it could be seen that an amount of Rs.23.63 lakhs wanted out in 266 audit paras. 17.1.1. ZP VIJAYANAGARAM – SURCHARGE CERTIFICATES PENDING RECOVERY .

So far 12 S.Cs. were issued involving an amount of Rs. 2,03,198/- against the E xecutive Authorities of Zilla Parishad, Vizianagaram. The details are as follows: Surcharge Certificates issued and pending recovery as on 31.3.2010 Sl No SC.No/date To whom issued AR Para

No. Amount

Rs. Year Fund

1

25786/863/D2/01, dt.15-2-02 of Directorate, S.A (A.P) Hyderabad

Sri M.V.Rama Krishnaiah, Retd.,E.E.P.R.Vizianagaram

19 21,479 90-91

Engineering Funds, Vizianagaram

2

25786/863/D2/01, dt.15-2-02 of Directorate, S.A (A.P) ,Hyderabad

Sri M.V.Rama Krishnaiah, Retd.,E.E.P.R.Vizianagaram

20 50,400 90-91


3 25784/dt.6-2-02 of Sri M.V.Rama 42 12,179 90-91 Engineerin

108

Directorate, S.A (AP), Hyderabad

Krishnaiah, Retd.,E.E.P.R.Vizianagaram

g Funds, Vizianagaram

4 28376/1133, dt.19-2-02 of Directorate, S.A (AP),Hyderabad

Sri B.Anjaneya Varma, Retd.E.E.

30 4,492 94-95


5

32709/1339/M/2001,Dt.4-5-02 of Directorate, S.A(AP),Hyderabad

Sri V.Krishnam Raju, Retd.C.E.O,Z.P.,VZM

88 13,690 94-95 JRY Funds

6

2002/114/M/2002-1, dt.24-6-02 of Directorate, S.A (AP), Hyderabad

Sri K.B. Narasinga Rao, Executive Director, S.C.S.C Society, Vizianagaram .

33 1,421 96-97 JRY Funds

7

2002/114/2002-2,dt.24-6-02 of Directorate, S.A(AP),Hyderabad

Sri K.B. Narasinga Rao, Executive Director, S.C.S.C Society, Vizianagaram.

34 5,000 96-97 JRY Funds

8

28373/113/M/9/02-2001,Dt.18-9-02 of Directorate, S.A (AP), Hyderabad

Sri D.Srirama murthy, Ex. E.E.

13 21,180 95-96

Engineering Fund, Parvathipuram

9

20705/1110/M1/02, Dt.18-3-03 of Directorate, S.A (AP) Hyderabad

Sri Y.S.R.Mohan Rao, Executive Engineer

26 1,498 96-97

Engineering Fund, Vizianagaram

10

15054/121/M1/2003-1 Dt.28-8-03 of Directorate, S.A (AP), Hyderabad


8 49,960 97-98


11 15054/121/M1 Dt.28-8-03 of Directorate, S.A(AP),Hyderabad


19 8,400 98-99


12 1786/14/M1/04,Dt. 15-2-05 Directorate, SA(AP), Hyderabad

Sri.M.V.Rama krishnaiah, Retd. EEPR, Vizianagaram .

20 13,499 89-90


TOTAL 2,03,198 The Administrative Authority is requested to take suitable action for the recovery at an early date.

(Para No.45 of General fund of Z.P.of Vizianagaramdistrict for the year 2009-10) 17.3.1. GRAM PANCHAYATS – NON-RECOVERY OF SURCHAGE CERTIFICATE AMOUNT – NEEDS IMMEDIATE ACTION.

During the course of audit of Gram Pancyayats for the year 2009-10, it was noticed that the Surcharge Certificate amounts were not recovered from the Surchargees. Some of the instance cases are shown in the given table.

109

Sl. No.

Name of the institution and district Details of the surchargee Para

No. Amount involved

1 Boddilipeta GP Srikakulam Dist

Smt.G.Neelamma, Sarpanch

19 22980

2 Chitalapeta GP., Srikakulam District

Smt. N.Sarojanamma,Sarpanch

17 21609

3 Gajulakollivalasa GP., Srikakulam District.

Sri M.Kurma Rao Ex-Sarpanch

19 39794

18. OTHERS

There are other irregularities pointed out in audit which do not come under the

above 17 categories. The cases of improper asset management by the Executive Authorities is one such case that will fall under this category. Government have reviewed the present system 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. 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 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 against theft pilferage damage and risk posed by the weather. 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

110

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 – 9 (18) showing audit objections on Others is appended to the Report from which it could be seen that an amount of Rs.851.58 lakhs was pointed out in 117176 audit paras. 18.1.1. ZP RANGAREDDY - MISCELLANEOUS EXPENDITURE - CERTAIN DEFECTS - HELD UNDER OBJECTION RS. 53,952/-

An amount of Rs.53,952/- was drawn and paid as miscellaneous expenditure during the year 2009-10, but the following details are produced in support of the expenditure incurred.

1) The purpose of purchase of items not explained 2) Stock entry not produced 3) The authority for purchase of executive bag and cell phone piece etc not explained

In view of the alone defects Rs. 53952/- held under objection.

Sl No Vr No & Dt Particulars Amount

Rs. 1 150/06.08.2009 Dinner set, Ta set ete 725 2 275/20.10.2009 Tyres, Tubes to car 12000 3 278/22.10.2009 Cardless phone 9880 4 336/14.12.2009 Franking Machine 25000

5 449/24.02.2010 (Sub Vr 7) Executive Bag 1347 6 66/10.06.2009 Nokia Cell Phone 5000

TOTAL 53952 (Para No 14 of General fund of ZP Ranga Reddy district for the year 2009-10)

18.1.2. ZP KAREEMNAGAR NON- COMPLIANCE OF AUDIT OBSERVATIONS The replies to the Audit Reports for the year 1982-83 to 2008-09 together with the resolution of the standing committee for finance have not been sent to the commissioner, Panchayat Raj through the Director of State Audit as instructed in Government Memo. No. 546/Acct - III/62-2, P & LA Dept Dt:- 3.5.1962 read with Government Memo No. 442/Acct-IV/62-2, P & LA Department, Dt. 3.5.1963 The records do not reveal the compliance in the regard.Immediate action would need to be taken to furnish the replies to the pending Audit Objections and efforts made to settle the same.

Sl. No.

Particulars No of Objections

Amount Involved

1 No of objections pending at the beginning of the year 160 249574882 2 No of objections raised during the year 38 2387770 3 Total 198 251962652 4 No of objections settled during the year - -

Total 198 251962652 (Para No. 18 of General fund of Karimnagar district for the year the year 2009-10)

111

18.1.3. ZP KADAPA -VEMPALLI SHOPPING COMPLEX- SHOPS NOT LEASED OUT- LOSS TO THE INSTITUTION.

As verified the D.C.B Register of MPP Vempalli shopping complex, it was noticed that Shop No. 31 were not leased out during the year under report. Reasons for the same ware not explained by the Executive Authority. Connected files were not made available. In the absence of the same, vacancy position of the shops could not be verified in Audit. Hence action would need to be taken to lease out the shops immediately as per rules in force. Any loss sustained due to that would need to be recovered from the person or persons responsible and made good to the ZP funds.

(Para No.54 of General fund of Z.P. Kadapa district for the year 2009-10)

18.1.4. ZP KADAPA MAINTENANCE OF CASH BOOK - CERTAIN DEFECTS. As verified from the Cash Book for the year 2009-10, it was noticed that it was not maintained properly as detailed below. The Cash Book should be written up duly recording all transactions on that day both receipts and payment side. The adjustment shown in the establishment pay bill like Advances, Group Insurance subscriptions etc were not exhibited in the Cash Book on the both receipt and payment side of the Cash Book. The Challans for the amounts credited were not taken on the receipt side of the Cash Book with full details of remittance. The monthly closing balances for each month was not noted in the cash book promptly after close of the each month and the balances as per cash book with balances as per Bank /Treasury and the reconciliation statement not recorded under the signature of the concerned competent authority. Follow up action was not taken to settle the items shown in the reconciliation statement by ascertaining the details referring to the authorities concerned by the Executive Authority. Further the closing balance in the Cash Book at the end of each month were not reconciled with Treasury/Bank balances. Hence action would need to be taken to rectify the above defects immediately.

(Para No. 15 of General fund of Z.P. Kadpa district for the year 2009-10) 18.1.5. ZP VIJAYANAGARAM - IMPROPER MAINTENANCE OF RECORDS & REGISTERS - PENSION (NON-PROVINCIALISED EMPLOYEES) Register of P.P.Os (Non-Provincialised Pensioners) is not maintained and produced. Payments of pensions were not noted in Pensioners Register. Since 2001, not even single entry was recorded. Even sanction/release entries were not recorded properly and got singed by the authorities concerned. The improper maintenance of records resulted in so many inadmissible payment and subsequent recoveries, as and when noticed. If the records are not maintained properly., there may be a chance for irrecoverable losses also. Therefore suitable steps may be taken for proper maintenance of the records.

(Para No. 51 of General fund of Z.P. of Vizianagaram district for 2009-10)

112

18.1.6. ZP KAKINADA - PROVIDENT FUND - ABSTRACT REGISTER NOT MAINTAINED PROPERLY- ALL ENTRIES NOT POSTED AGAINST THE SUBSCRIBERS - NEEDS EARLY ACTION.

During the course of audit of Provident fund accounts, it was noticed that the Abstract Registers which are being maintained are without subscriber wise details such as opening balance, monthly subscriptions and other receipts, payments made and closing balance etc simply showing the payment made which is improper. The Abstract Registers have to be maintained in an order which were prescribed long back but presently those registers were not written up and as such they were made inoperative and the purpose of such abstract registers was totally defeated. The abstract registers have to be maintained in a proper order showing page wise, register wise totals and abstract of account of all subscribers be prepared and tallied with the account figures. In the absence of the same the receipts shown in the account is Rs.73,44,47,875/- & payments shown as Rs19,17,52,032/ could not be cross checked. There is every possibility of making excess receipt postings and short payment postings erroneously which ultimately result in causing loss to the fund. There is eminent danger of making excess and irregular final payments based on the erroneous figures arrived and such amounts cannot be recovered back once paid.

Hence necessary steps have to be taken to update these key registers on war footing basis to avoid any complications in future. The losses if any sustained in this regard would need to be recovered from the person or persons responsible. a) Z.P. Provident Fund Interest - Proposals for the year 2008-09 & 2009-10 were not sent to Govt. The proposals of Z.P. Provident Fund for the year 2008-09 & 2009-10 were not sent to the Govt. for reimbursement of interest. Every year the proposals have to be sent to Government duly with the Counter Signature of District Audit Officer, State Audit. Action would need to be taken to submit the Z.P. P.F. proposals to Government. b) The proposals for reimbursement of Booster Scheme payments from Government were not sent to Government.

The proposals for reimbursement of Booster Scheme payments made during the years 2007-08 to 2009-10 were not sent to the Government. Action would need to be taken to submit the proposals to Government.

(Para No 74 of General fund of Kakinada district for the year 2009-10)

18.2.1. MP TADIPATRI OF ANANTAPUR DISTRICT - ESTABLISHMENT AUDIT REGISTER NOT MAINTAINED

The Establishment Audit Register in respect of Non-Teaching/Teaching staff has not been maintained during the year under report. Due to non-maintenance of this important register, it could not be verified in audit whether the strength and seals fixed by the Competent Authority are correct. Early action would need to be taken to maintain Establishment Audit Register duly noting all the particulars required and produce the same for audit.

113

The Executive Authority is requested to bestow his personal attention to maintain

the said important register. The loss if any sustained by the institution due to non-maintenance of this important register, the same would need to be made good from the person of persons responsible and remitted the same to concerned funds under intimation to audit. 18.2.1. MP TADIPATRI - REGISTER OF MOVABLE AND IMMOVABLE PROPERTIES NOT MAINTAINED : (i) The register of immovable properties like Lands, Tanks, Roads, Site of Buildings, Fisheries etc., related to Mandal not maintained and valuation of the properties done by the Competent Valuation Authority and a record not maintained. The M.P.D.O. shall periodically but not less than once in a year examine the register. (ii) The Stock Register of Movable properties shall be maintained in respect of each kind of movable property except for the article for which separate stock registers (or) ledgers have been purchased. Early action would need to be taken to maintain the immovable and movable property registers duly recording particulars required and produced to audit.

(Para No. 20 of MP Tadiparti of Anantapur district for the year the year 2009-10) 18.2.3 MP MADANAPALLI OF CHITTOOR DISTRICT - MAINTENANCE OF DEPOSITS REGISTER - CERTAIN DEFECTS. The Register of Deposit was not maintained in the prescribed proforma. The following defects were noticed during the course of audit.

1. The details of outstanding balance of the deposits to be refunded by the end of the previous financial year were not brought forward.

2. The deposits received during the year were not posted in the register properly 3. The refunds of deposits made were also not posted and rounded of properly. 4. Monthly abstract as well as annual abstract of the receipts and refunds of the

Deposits were not appended in the register and not certified by the M.P.D.O. 5. Lapsed deposit if any were not adjusted to the general funds by making suitable

transfer entries. 6. The year wise split up of the deposits was not pointed out to audit.

While making refunds of the deposit, original receipt entry made in which the deposit

was received was not rounded off. In view of the above shortcoming in the maintenance of the deposits register loss if any occurred to the Mandal Parishad would need to be ascertained and recovered from the person responsible.

(Para No. 11 of the MP Madanapalli of Chittoor District for the year 2009-10)

114

18.2.4 MP RAMCHANDRAPURAM OF MEDAK DISTRICT - SPECIAL REPAIRS TO P.H.C. SUB-CENTRE, R.C. PURAM - NOT CONCERNED TO THE MANDAL ASSETS - WASTEFUL EXPENDITURE - NEEDS RECOVERY - Rs.97,561/-

During the course of audit on General Funds of Mandal Parishad, R.amachandrapuram on verification of the Cash Book, it was noticed that vide Vr.No.424/30.3.2010, an amount of Rs.97,561/- was drawn and paid to Sri S. Ram Prasad, Contractor R/o: Bandalguda towards Special Repairs to PHC Sub-Centre, Ramachandrapuram and recorded in the M.B. No.221/AM at P.No.39. But, the above expenditure could not admitted in audit, as the P.H.C. Sub-Centres are not an asset pertaining to the Mandal Parishad. The Mandal Parishad funds should be utilized for maintenance of the M.P. assets only. Therefore, action would need to be taken to recover the above amount from the concerned and credited to the MP Funds early.

(Para No. 18 of MPP Ramachandrapuram of Medak District for the year 2009-10) 18.3.1. PILERU GP OF CHITTOOR DISTRICT- CONTRACT EMPLOYEE - EXPENDITURE INCURRED ON CONTRACT EMPLOYEES - FIELD MEASUREMENT BOOK NOT MAINTAINED – IRREGULAR.

During the course of audit, it was noticed that an amount of Rs.15,13,940/- was incurred towards the salaries of Contract Employees engaged for sanitation and water supply maintenance . But as per G.O.Rt No: 551 PR & RD Dt: 27-3-98, it is stipulated to maintain Measurement Book and Log Books for entire quntum of work executed by the staff engaged on contract basis through tenders . But the said records were not maintained and certified by the concerned Secretary and Sanitary Inspector. In the absence of the same, the correctness of the work turned out by the contract staff could not be verified and correctness of the expenditure could not be certified in audit. (Para No:72 Pileru ( GP) Chittor District for the year the year 2009-10) 18.3.2. GRAMPANCHAYATS -AUCTIONS-BID CONFIRMED AT THE RATE LOWER THAN THE UPSET PRICE - IRREGULAR - NEEDS ACTION.

During the course of audit, it was noticed that Grass and Coconut trees auction were confirmed to the bidders at the rates lower than the upset price given by the Divisional Panchayat Officer, Peddapuram as detailed below. Hence necessary ratification orders may be obtained from the DLPO Peddapuram as per auction rules.Under APPR ACT 1994. The loss if any would need to be recovered from the person or persons responsible and made good to GP Funds.

Details Upset price fixed by the DLPO for CoConut Trees Rs. 20,000 /- Bid Confirmed Rs. 17,900/- Upset price fixed by the DLPO for Grass sales Rs. 21,670 /- Bid Conformed Rs. 12,215 /-

(Para No: 27 Pedabrahmadeva GP, Samarla Kota ( M) East Godavari for 2009-10)

115

18.3.2. BHOGALU GP OF NELLORE DISTRICT-ARREAR DEMAND REGISTER –IMPROPER MAINTENANCE OF ARREAR DEMAND REGISTER – NEEDS ACTION

During the course of audit, it is noticed that the arrear demand register was not properly maintained and entries made from 2005-06 only leaving the previous years. Further the figures shown in arrear demand register are varying with the figures shown in the previous Audit Reports as detailed below. Hence necessary steps may be taken to maintain the arrear demand register after due rectification of the differences.

Year House Tax As per previous Audit Report

2004-05 153871 294180-89 2005-06 186706 123142-00 2006-07 476290 227251-00 2007-08 488699 435952-14 2008-09 528901 466375-06 2002-03 29700 95280 2003-04 61440 117720 2004-05 72540 130620 2005-06 90180 48780

( Para No:18 Bhogalu ( GP) Bhogalu ( M ) Nellore District for the year 2009-10) 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.

A Consolidated Statement – 9 (19) 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. 30.45 lakhs was pointed out in 148 audit para.

Director of State Audit AP Hyderabad. PLACE; Hyderabad. Dated .01-03-2013

ACCOUNT STATEMENTS OF MUNICIPAL CORPORATIONS

SECTION - II

ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT

1 ZILLA PARISHADS 0 22 0 21 0 1

2 MANDAL PARISHADS 12 1097 9 1095 3 2

3 GRAM PANCHAYATS 3564 21808 423 21439 3141 369

TOTAL 3576 22927 432 22555 3144 372

STATEMENT No. 1

CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT OF ZPs, MPs & GPs FOR THE YEAR 2009-10

DEMAND AS ON 1-4-2010

AUDITS COMPLETED AS ON 31-3-11

BALANCE AS ON 31-03-2011SL.

No.NAME OF THE INSTITUTION

116


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 0 1 0 1 0 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 0 0 1

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: 0 22 0 21 0 1

Nizamabad audit not completeed due to non producation of records by the Executive authority.

STATEMENT No. 1 (1)STATEMENT SHOWING STATUS OF AUDIT OF ZILLA

PARISHADS FOR THE YEAR 2009-10


AUDITS COMPLETED AS

ON 31-3-11

BALANCE AS ON 31-03-

2011SL No.

NAME OF THE DISTRICT

117


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 1 50 1 50 0 0

7 Karimnagar 2 57 2 57 0 0

8 Khammam 1 46 1 46 0 0

9 Krishna 0 49 0 49 0 0

10 Kurnool 0 53 0 53 0 0

11 Mahaboobnagar 3 64 1 64 2 0

12 Medak 0 46 0 46 0 0

13 Nalgonda 3 59 3 59 0 0

14 Nellore 0 46 0 46 0 0

15 Nizamabad 0 36 0 34 0 2

16 Prakasam 0 56 0 56 0 0

17 Ranga Reddy 1 33 1 33 0 0

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: 12 1097 9 1095 3 2

* Nizamabad audit not completed due to non production of records by the Executive authority.

STATEMENT No. 1 (2)STATEMENT SHOWING STATUS OF AUDIT OF MANDAL

PARISHADS FOR THE YEAR 2009-10

SL No.

NAME OF THE

DISTRICT


AUDITS COMPLETED AS

ON 31-3-11

BALANCE AS ON 31-03-2011

118


1 Adilabad 174 866 0 858 174 82 Ananthapur 5 1001 0 991 5 103 Chittoor 72 1380 5 1380 67 04 East Godavari 0 1012 0 1011 0 15 Guntur 0 1022 0 1022 0 06 Kadapa 171 804 8 801 163 37 Karimnagar 64 1194 8 1188 56 68 Khammam 305 770 0 770 305 09 Krishna 30 973 1 969 29 410 Kurnool 18 898 1 881 17 1711 Mahaboobnagar 2311 1349 33 1274 2278 7512 Medak 325 1059 325 1015 0 4413 Nalgonda 0 1178 0 1106 0 7214 Nellore 0 961 0 961 0 015 Nizamabad 2 718 2 709 0 916 Prakasam 0 1043 0 1043 0 017 Ranga Reddy 65 705 35 596 30 10918 Srikakulam 0 1101 0 1101 0 019 Visakhapatnam 0 944 0 944 0 020 Vizianagaram 2 928 2 923 0 521 Warangal 0 1014 0 1014 0 022 West Godavari 20 888 3 882 17 6

TOTAL: 3564 21808 423 21439 3141 369

STATEMENT No. 1 (3)STATEMENT SHOWING STATUS OF AUDIT OF GRAM

PANCHAYATS FOR THE YEAR 2009-10

SL No.

NAME OF THE

DISTRICT


AUDITS COMPLETED AS

ON 31-3-11


119

Sl. No. NAME OF THE DISTRICT Receipts Payments

1 Adilabad 5126.03 5248.80

2 Ananthapur 6783.14 7063.39

3 Chittoor 9111.72 9135.33

4 East Godavari 3802.53 3745.20

5 Guntur 4928.37 3549.40

6 Kadapa 6286.00 6079.79

7 Karimnagar 9449.96 9633.30

8 Khammam 1824.82 5440.21

9 Krishna 9207.20 9032.80

10 Kurnool 14068.79 12128.64

11 Mahaboobnagar 5021.09 7419.05

12 Medak 1357.05 1443.72

13 Nalgonda 21343.81 18477.67

14 Nellore 2640.54 1551.88

15 Nizamabad 0.00 0.00

16 Prakasam 5786.95 4538.59

17 Ranga Reddy 3110.39 5940.13

18 Srikakulam 4642.25 9946.75

19 Visakhapatnam 1041.39 902.77

20 Vizianagaram 6957.09 6434.37

21 Warangal 14916.16 20313.76

22 West Godavari 12896.62 11638.73

TOTAL 150301.90 159664.28

STATEMENT NO. 2STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF

ZILLA PARISHADS FOR THE YEAR 2009-10

(Rs in Lakhs)

120

SL No.


General fund

Education fund

Social Wlfare

Minor Irrigatio

n

Roads & Bridges

RWS/ ARW SGRY

Other Programm

esDeposits Advanc

es Loans BRGF Pension Fund Total

1 Adilabad 139.80 391.45 13.33 0.00 0.00 0.00 0.00 3845.06 294.38 2.43 0.60 436.36 2.62 5126.032 Ananthapur 5589.68 682.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.96 506.97 0.00 6783.143 Chittoor 7809.65 635.36 0.00 0.00 0.00 0.00 0.00 0.00 145.94 27.91 21.03 471.83 0.00 9111.724 East Godavari 2803.72 965.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19.02 0.00 14.20 3802.535 Guntur 2859.18 738.98 266.06 0.00 0.00 0.00 9.42 0.00 996.77 0.00 57.96 0.00 0.00 4928.376 Kadapa 4750.06 759.54 0.00 0.00 0.00 0.00 0.00 354.16 0.00 14.31 4.97 402.96 0.00 6286.007 Karimnagar 5013.75 946.27 0.00 0.00 0.00 0.00 40.87 3014.68 0.00 0.00 8.14 426.25 0.00 9449.968 Khammam 566.40 647.26 2.98 0.00 0.00 0.00 0.00 135.41 14.09 5.46 3.35 449.87 0.00 1824.829 Krishna 3452.68 1149.18 116.02 0.00 0.00 4281.98 74.99 78.90 0.00 28.47 8.52 0.00 16.46 9207.20

10 Kurnool 205.36 0.00 84.30 0.00 3917.87 1540.87 7.74 8029.56 268.70 14.04 0.00 0.00 0.35 14068.7911 Mahaboobnagar 525.06 1089.88 0.00 0.00 0.00 0.00 0.00 2831.78 0.00 3.64 3.77 566.96 0.00 5021.0912 Medak 957.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 399.99 0.00 1357.0513 Nalgonda 6562.44 1138.53 0.00 0.00 0.00 10859.50 0.00 68.31 2218.86 0.00 9.36 486.81 0.00 21343.8114 Nellore 0.00 722.52 159.23 0.00 0.00 0.00 0.00 1758.79 0.00 0.00 0.00 0.00 0.00 2640.5415 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 0.0016 Prakasam 1008.88 935.31 0.00 0.00 0.00 992.44 0.00 24.36 2809.99 0.00 5.82 0.00 10.15 5786.9517 Ranga Reddy 1449.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1198.77 1.28 5.71 454.84 0.00 3110.3918 Srikakulam 2920.68 685.94 0.00 300.00 480.93 194.50 0.00 0.00 41.87 15.30 3.03 0.00 0.00 4642.2519 Visakhapatnam 676.46 290.89 0.00 0.00 0.00 0.00 34.86 20.02 0.00 14.27 4.89 0.00 0.00 1041.3920 Vizianagaram 3117.69 641.55 0.00 0.00 0.00 1896.13 0.00 945.82 36.38 0.00 0.00 319.52 0.00 6957.0921 Warangal 593.39 903.38 0.00 0.00 7939.13 1726.63 0.00 722.42 0.00 662.22 0.00 434.47 1934.52 14916.1622 West Godavari 10722.46 1171.75 0.00 0.00 0.00 0.00 0.00 964.13 0.84 37.44 0.00 0.00 0.00 12896.62

TOTAL: 61724.19 14495.91 641.92 300.00 12337.93 21492.05 167.88 22793.40 8026.59 826.77 160.13 5356.83 1978.30 150301.90

STATEMENT No. 2 (1)STATEMENT OF CONSOLIDATED FUND WISE RECEIPTS OF ZILLA PARISHADS FOR THE YEAR 2009-10

Rs. In lakhs

Page 121

SL No.


General fund

Education fund

Social Wlfare

Minor Irrigation A/c

Roads & Bridges

A/c

RWS/ARW SGRY

Other Program

mesDeposits Advanc

es Loans BRGF Pension Rund Total

1 Adilabad 416.39 371.33 0.00 0.00 0.00 0.00 0.00 3848.54 219.63 2.50 0.59 380.94 8.88 5248.802 Ananthapur 5794.15 689.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.59 579.48 0.00 7063.393 Chittoor 7896.26 656.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16.67 10.25 463.38 92.34 9135.334 East Godavari 2805.62 550.44 0.00 0.00 0.00 0.00 0.00 0.00 7.39 107.34 0.00 0.00 274.41 3745.205 Guntur 1980.54 750.52 0.00 0.00 161.89 31.96 13.72 0.00 570.43 0.00 40.34 0.00 0.00 3549.406 Kadapa 4789.32 762.38 0.00 0.00 0.00 0.00 0.00 217.89 0.00 8.75 0.00 301.45 0.00 6079.797 Karimnagar 4446.79 1083.37 0.00 0.00 0.00 0.00 0.00 3766.30 0.00 0.00 13.04 323.80 0.00 9633.308 Khammam 468.22 751.65 2.65 0.00 2230.23 1423.70 0.00 172.94 15.55 6.27 0.00 369.00 0.00 5440.219 Krishna 2705.91 1135.70 218.36 0.00 0.00 4469.91 26.62 143.11 0.00 46.67 0.00 0.00 286.52 9032.80

10 Kurnool 215.84 0.00 57.12 0.00 772.05 1629.85 36.48 8255.48 1150.26 11.56 0.00 0.00 0.00 12128.6411 Mahaboobnagar 4310.19 1049.38 0.00 0.00 0.00 0.00 0.00 1623.94 0.00 0.00 3.77 431.77 0.00 7419.0512 Medak 971.57 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 472.15 0.00 1443.7213 Nalgonda 6434.59 1251.40 0.00 0.00 0.00 9226.05 0.00 121.98 1152.00 0.00 5.05 286.60 0.00 18477.6714 Nellore 0.00 748.29 149.02 0.00 0.00 0.00 0.00 654.57 0.00 0.00 0.00 0.00 0.00 1551.8815 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 0.0016 Prakasam 1185.37 942.68 0.00 0.00 0.00 830.28 0.00 30.15 1545.76 0.00 0.00 0.00 4.35 4538.5917 Ranga Reddy 1714.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3654.18 0.96 5.32 565.43 0.00 5940.1318 Srikakulam 2286.18 664.15 0.00 0.00 6483.68 461.05 0.00 0.00 29.55 0.00 0.00 0.00 22.14 9946.7519 Visakhapatnam 491.12 300.07 0.00 0.00 0.00 0.00 65.11 13.96 0.00 7.74 24.77 0.00 0.00 902.7720 Vizianagaram 2733.26 603.78 0.00 0.00 0.00 1662.49 45.20 1122.34 29.52 0.00 0.00 237.78 0.00 6434.3721 Warangal 192.35 864.63 0.00 107.78 10722.99 3025.93 0.00 0.00 0.00 395.67 0.00 396.03 4608.38 20313.7622 West Godavari 9090.90 1153.03 0.00 0.00 0.00 0.00 0.00 1338.99 18.35 37.46 0.00 0.00 0.00 11638.73

TOTAL: 60928.81 14328.40 427.15 107.78 20370.84 22761.22 187.13 21310.19 8392.62 641.59 103.72 4807.81 5297.02 159664.28

STATEMENT 2(2)STATEMENT OF CONSOLIDAED fund wise PAYMENTS OF ZILLA PARISHADSS FOR THE YEAR 2009-10

Rs.in lakhs

Page 122

1 Adilabad 3507.38 2976.97

2 Anantapur 1920.28 1653.23

3 Chittor 11518.44 10366.04

4 East Godavari 5867.64 5690.98

5 Guntur 4409.97 4170.61

6 Kadapa 1072.33 1038.60

7 Karimnagar 2568.04 2113.88

8 Khammam 9944.29 6636.31

9 Krishna 2033.39 2076.51

10 Kurnool 507.56 598.17

11 Mahanagar 1899.78 1639.64

12 Medak 2305.75 2125.81

13 Nalgonda 2060.78 1909.64

14 Nellore 850.51 877.29

15 Nizambad 2630.73 2388.96

16 Prakasam 971.67 757.87

17 Rangareddy 3223.47 4176.15

18 Srikakulam 2186.42 2142.27

19 Vijayanagaram 3872.49 3134.11

20 Visahapatnam 730.59 720.75

21 Warangal 15285.22 14808.52

22 West Godavari 2251.61 2179.98

Total 81618.35 74182.28

STATEMENT NO (3)STATEMENT OF CONSOLIDATED RECIEPTS AND PAYMENTS (Funds)

OF MANDAL PARISHADS FOR THE YEAR 2009-10 (Rs.in Lakhs)Sl. No. Name of the District RECIEPTS PAYMENTS

Page 123

# Name of the District

General fund

Education fund

Social welfare

MI R&B RWS&ARWS

Others SGRY Deposits

Advances

Loans BRGF Pension fund

Total

1 Adilabad 357.04 0.00 54.81 12.63 587.02 39.30 1681.03 7.41 34.80 8.65 0.35 654.53 69.81 3507.382 Anantapur 848.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 310.00 1.60 0.00 760.46 0.00 1920.283 Chittor 496.13 6273.42 190.98 0.50 0.00 15.43 3491.84 312.03 27.84 2.47 0.06 707.74 0.00 11518.444 East Godavari 1372.60 0.00 4327.20 0.00 0.00 0.04 98.51 0.00 7.77 61.52 0.00 0.00 0.00 5867.645 Guntur 2864.35 2.15 836.49 9.39 0.60 2.46 100.51 0.00 17.52 20.47 6.33 0.00 549.70 4409.976 Kadapa 398.73 0.00 0.00 0.00 0.00 0.00 54.94 0.00 8.90 5.33 0.00 604.43 0.00 1072.337 Karimnagar 1690.47 0.00 0.00 0.00 0.00 0.00 225.90 12.29 0.00 0.00 0.00 639.38 0.00 2568.048 Khammam 662.60 119.94 42.38 0.00 0.00 0.00 8443.61 0.95 0.00 0.00 0.00 674.81 0.00 9944.299 Krishna 1522.05 0.00 17.00 0.00 0.00 0.00 4.71 1.01 0.41 1.27 0.00 0.00 486.94 2033.39

10 Kurnool 305.99 0.00 93.84 0.00 0.00 0.00 5.83 92.91 3.35 1.06 0.00 0.00 4.58 507.5611 Mahaboobnagar 943.16 0.00 0.00 0.00 0.00 0.00 11.10 0.00 19.63 4.27 0.00 850.44 71.18 1899.7812 Medak 1403.28 0.00 13.98 2.52 0.00 0.00 235.35 3.02 29.82 15.47 2.04 599.99 0.28 2305.7513 Nalgonda 908.27 0.00 26.91 0.00 0.00 25.82 300.79 0.00 34.51 34.26 0.00 730.22 0.00 2060.7814 Nellore 628.20 0.00 38.16 0.00 0.00 0.00 91.88 0.00 34.28 0.00 0.00 0.00 57.99 850.5115 Nizambad 260.58 0.00 0.64 0.00 0.00 20.95 654.07 15.68 3.72 1.65 0.00 513.16 1160.28 2630.7316 Praksam 783.85 0.00 46.33 0.00 0.00 38.00 65.38 0.00 27.33 10.78 0.00 0.00 0.00 971.6717 Rangareddy 814.81 0.00 1041.01 0.00 0.00 2.16 146.96 0.72 283.82 3.34 0.00 682.25 248.40 3223.4718 Srikakulam 574.77 0.00 0.00 0.00 0.00 0.00 93.35 10.00 9.88 3.93 0.00 0.00 1494.49 2186.4219 Vijayanagaram 533.96 0.00 977.77 0.00 0.00 9.15 74.80 0.00 5.35 4.15 0.00 479.28 1788.03 3872.4920 Visahapatnam 571.98 0.00 73.51 4.02 14.03 16.10 3.19 14.06 12.28 21.42 0.00 0.00 0.00 730.5921 Warangal 1467.00 0.00 0.00 0.00 0.00 23.95 6788.43 53.65 52.95 636.78 0.00 651.71 5610.76 15285.2222 West Godavari 1464.64 0.00 218.09 29.46 1.67 41.34 90.22 44.83 19.26 28.46 3.98 0.00 309.66 2251.61

Total 20872.68 6395.51 7999.10 58.52 603.32 234.70 22662.40 568.56 943.42 866.88 12.76 8548.42 11852.10 81618.35

STATEMENT No 3(1)STATEMENT OF CONSOLIDATEDRECIEPTS AND RECEIPTS FUND WISE OF MANDAL PARISHADS FOR THE YEAR 2009-10

(Rs.in Lakhs)

Page 124

# Name of the District

General fund

Education fund

Social welfare

fundMI R&B

RWS&ARWS

Others SGRY Deposits

Advances

Loans BRGF Pension

fund Total

1 Adilabad 389.34 0.00 14.58 3.43 537.31 29.86 1320.96 18.13 36.21 6.15 0.00 551.32 69.68 2976.972 Anantapur 540.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 284.54 1.49 0.00 826.82 0.00 1653.233 Chittor 387.09 4865.82 198.69 6.61 99.65 57.05 3603.89 223.97 24.59 2.47 0.52 697.34 198.35 10366.044 East Godavari 1061.53 0.00 4277.39 0.00 132.76 4.98 143.11 0.00 6.08 65.13 0.00 0.00 0.00 5690.985 Guntur 2634.82 2.18 829.02 4.46 105.82 12.09 91.30 0.00 1.23 7.82 2.56 0.00 479.31 4170.616 Kadapa 459.88 0.00 0.00 0.00 23.93 0.00 43.86 0.00 2.00 2.58 0.00 506.35 0.00 1038.607 Karimnagar 1253.76 0.00 0.00 0.00 0.00 0.00 374.44 0.00 0.00 0.00 0.00 485.68 0.00 2113.888 Khammam 208.41 23.47 0.00 0.00 0.00 0.00 5964.29 0.00 0.00 0.00 0.00 440.14 0.00 6636.319 Krishna 1540.77 0.00 16.09 3.41 16.89 0.78 1.35 9.18 0.88 0.26 0.00 0.00 486.90 2076.51

10 Kurnool 341.22 0.00 148.65 0.00 0.00 0.00 7.68 95.23 0.41 0.40 0.00 0.00 4.58 598.1711 Mahaboobnagar 867.44 0.00 0.00 0.00 0.00 0.00 7.42 0.00 22.34 8.65 0.00 663.95 69.84 1639.6412 Medak 1482.92 0.00 12.91 0.00 0.00 5.84 21.00 2.10 0.00 10.36 3.02 587.30 0.36 2125.8113 Nalgonda 879.25 0.00 14.02 0.00 0.00 11.08 447.37 0.00 13.27 18.35 0.00 526.30 0.00 1909.6414 Nellore 642.73 0.00 44.40 0.00 0.00 11.19 86.75 0.00 39.03 0.00 0.00 0.00 53.19 877.2915 Nizambad 241.14 0.00 1.31 0.00 0.00 2.30 640.40 12.34 4.26 2.32 0.00 323.96 1160.93 2388.9616 Praksam 550.65 0.00 26.94 87.71 0.00 61.57 17.66 0.00 10.66 2.68 0.00 0.00 0.00 757.8717 Rangareddy 1103.45 0.00 1601.14 0.00 5.58 30.04 132.49 0.70 194.58 294.35 0.00 565.43 248.39 4176.1518 Srikakulam 512.52 0.00 0.00 0.00 17.19 0.00 68.74 12.32 10.00 6.17 0.00 21.33 1494.00 2142.2719 Vijayanagaram 423.00 0.00 526.55 0.00 0.00 4.68 43.37 0.00 4.64 5.45 0.00 332.89 1793.53 3134.1120 Visahapatnam 420.52 0.00 84.04 0.00 4.19 10.14 5.27 151.60 9.44 35.55 0.00 0.00 0.00 720.7521 Warangal 1324.65 0.00 0.00 0.00 45.31 10.56 6575.50 47.46 40.08 536.23 0.00 608.27 5620.46 14808.5222 West Godavari 1415.96 0.00 188.70 21.03 42.88 55.20 73.01 31.77 21.33 18.85 0.75 0.00 310.50 2179.98

Total 18681.43 4891.47 7984.43 126.65 1031.51 307.36 19669.86 604.80 725.56 1025.26 6.85 7137.08 11990.02 74182.28

STATEMENT OF CONSOLIDATED PAYMENTS AND PAYMENTS (FUNDS) OF MANDAL PARISHADS FOR THE YEAR 2009-10 STATEMENT No 3 (2)

Page 125

Sl No NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 Adilabad 1537.85 1222.10

2 Ananthapur 3278.37 3251.10

3 Chittoor 4261.03 4483.08

4 East Godavari 6030.38 10820.42

5 Guntur 2982.20 3153.97

6 Kadapa 2659.01 2711.99

7 Karimnagar 4873.99 4895.24

8 Khammam 3114.62 3141.65

9 Krishna 6087.00 5779.87

10 Kurnool 2498.19 3072.66


12 Medak 3153.55 3076.31

13 Nalgonda 3326.76 3394.23

14 Nellore 2704.61 3596.05

15 Nizamabad 3068.93 3480.24

16 Prakasam 2920.37 3223.20

17 Ranga Reddy 8267.03 10211.97

18 Srikakulam 2076.67 2358.53


20 Vizianagaram 3000.38 3464.62

21 Warangal 5042.55 4608.01

22 West Godavari 6239.70 6579.88

TOTAL 83267.84 92980.86

STATEMENT - 4STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM

PANCHAYATS FOR THE YEAR 2009-10

Page 126

Sl No Name of the district Tax Resources Non Tax

Resources Other Receipts Government Grants Advances Deposits BRGF Salary Grant Total

1 Adilabad 188.52 42.65 43.98 168.81 2.80 0.00 1090.89 0.20 1537.852 Ananthapur 252.74 419.07 137.73 977.64 4.37 34.64 1267.43 184.75 3278.373 Chittoor 494.522 612.24 236.97 1589.10 8.95 91.10 1179.57 48.58 4261.034 East Godavari 1539.59 776.45 1348.72 2235.94 31.53 98.15 0.00 0.00 6030.385 Guntur 673.09 494.27 778.43 983.59 2.09 47.54 0.00 3.19 2982.206 Kadapa 169.86 219.83 446.11 782.53 5.78 3.92 1007.39 23.59 2659.017 Karimnagar 808.72 686.57 580.04 1546.23 0.00 13.54 1065.64 173.25 4873.998 Khammam 329.27 251.62 181.15 1199.40 1.74 26.75 1124.69 0.00 3114.629 Krishna 1651.99 1587.52 1349.78 1317.83 99.21 80.67 0.00 0.00 6087.00

10 Kurnool 256.36 488.21 432.71 1186.87 57.02 70.44 0.00 6.58 2498.1911 Mahaboobnagar 211.44 576.54 241.43 1248.64 0.00 0.95 1417.41 8.11 3704.5212 Medak 600.05 1100.28 29.63 372.33 0.00 0.00 999.98 51.28 3153.5513 Nalgonda 263.34 182.90 565.67 1052.78 0.00 0.00 1217.03 45.04 3326.7614 Nellore 510.72 570.37 564.77 1039.09 2.75 11.17 0.00 5.74 2704.6115 Nizamabad 625.04 409.64 105.84 1037.00 0.00 34.56 855.27 1.58 3068.9316 Prakasam 720.17 515.73 296.85 1318.96 20.77 47.51 0.00 0.38 2920.3717 Ranga Reddy 1666.29 1538.46 3526.06 215.68 178.00 5.33 1137.09 0.12 8267.0318 Srikakulam 139.35 149.10 706.49 785.54 225.36 58.53 0.00 12.30 2076.6719 Visakhapatnam 334.67 458.47 457.25 1097.46 18.69 70.96 0.00 2.64 2440.1420 Vizianagaram 112.21 613.00 291.38 899.85 203.11 77.56 798.81 4.46 3000.3821 Warangal 959.467 445.45 768.71 1552.37 8.52 218.08 1086.17 3.79 5042.5522 West Godavari 1601.81 1129.09 1598.39 1632.44 13.22 171.01 0.00 93.74 6239.70

TOTAL 14109.22 13267.46 14688.09 24240.08 883.91 1162.41 14247.37 669.32 83267.84

STATEMENT No. 4(1)

STATEMENT OF CONSOLIDATED RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR ( RECEIPTS HEADS) 2009-10

Page 127

Sl No

Name of the district Salaries

Other Administrative

Expenditure

Maintanance Expenditure Works Advances Deposits BRGF Others Total

1 Adilabad 43.77 92.63 133.89 127.06 0.54 0.09 824.12 0.00 1222.102 Ananthapur 183.64 223.38 543.06 1118.71 8.74 35.37 1138.20 0.00 3251.103 Chittoor 263.59 301.56 1006.59 1371.20 139.35 59.95 1196.35 144.51 4483.084 East Godavari 420.65 1242.61 1406.16 2271.08 79.28 5081.17 0.00 319.47 10820.425 Guntur 361.76 416.40 764.08 1579.30 29.49 2.94 0.00 0.00 3153.976 Kadapa 62.00 267.92 311.72 1194.06 21.05 16.79 838.45 0.00 2711.997 Karimnagar 615.92 690.57 1278.27 1471.52 2.75 1.54 834.67 0.00 4895.248 Khammam 82.42 212.95 642.54 1357.59 0.30 7.20 838.65 0.00 3141.659 Krishna 377.38 1700.48 1513.22 1987.21 13.78 54.20 0.00 133.60 5779.87

10 Kurnool 198.74 588.41 555.66 1402.42 259.95 57.65 0.00 9.83 3072.6611 Mahaboobnagar 288.53 244.21 379.17 1647.04 3.00 0.00 1110.70 0.00 3672.6512 Medak 148.42 178.20 592.62 1275.28 4.89 24.80 852.10 0.00 3076.3113 Nalgonda 75.77 366.46 519.63 1293.67 0.00 0.00 1138.70 0.00 3394.2314 Nellore 297.06 736.47 725.72 1805.09 12.38 19.33 0.00 0.00 3596.0515 Nizamabad 106.43 626.41 1070.25 1074.38 3.00 0.78 598.99 0.00 3480.2416 Prakasam 378.83 398.61 713.82 1604.60 114.63 12.71 0.00 0.00 3223.2017 Ranga Reddy 941.96 1159.03 2190.18 4734.80 85.53 14.18 1030.79 55.50 10211.9718 Srikakulam 76.20 398.17 509.34 1161.96 197.41 15.45 0.00 0.00 2358.5319 Visakhapatnam 102.35 542.60 971.79 1047.04 93.56 25.75 0.00 0.00 2783.0920 Vizianagaram 61.98 218.83 846.09 1204.97 384.90 23.54 724.31 0.00 3464.6221 Warangal 1000.16 582.26 833.68 1318.79 0.43 31.85 840.84 0.00 4608.0122 West Godavari 623.65 1670.24 1363.11 2870.81 9.71 42.36 0.00 0.00 6579.88

Total 6711.21 12858.40 18870.58 34918.58 1464.67 5527.65 11966.87 662.91 92980.86

STATEMENT - 4 ( 2)STATEMENT OF CONSOLIDATED EENDXPENDITURE OF GRAM PANCHAYATS FOR THE YEAR

( PAYMENT HEADS ) 2009-10Rs. In lakhs

Page 128

Sl. No. Name of the District Receipts Payments

1 Adilabad 4631.67 4605.19

2 Ananthapur 1314.18 2580.48

3 Chittoor 2030.37 2248.94

4 East Godavari 4184.04 3073.74

5 Guntur 1409.82 1824.86

6 Kadapa 4823.38 4741.29

7 Karimnagar 4876.13 3849.44

8 Khammam 1154.29 2669.03

9 Krishna 4522.82 3994.86

10 Kurnool 12581.63 9530.82


12 Medak 899.96 1040.72

13 Nalgonda 3156.87 2522.64

14 Nellore 3201.99 1517.76

15 Nizamabad 0.00 0.00

16 Prakasam 1596.11 1712.42

17 Ranga Reddy 5440.88 3785.31

18 Srikakulam 2983.40 8232.51


20 Vizianagaram 1940.39 1791.95

21 Warangal 14943.09 15782.88

22 West Godavari 4499.25 4974.92

Total 82204.03 82489.45

STATEMENT NO. 5 CONSOLIDATED STATEMENT OF GRANTS RELEASED TO ZILLA PARISHADS AND EXPENDITURE FROM GRANTS FOR THE YEAR

2009-10 (Rs in Lakhs)

Page 129

SL No. Name of the District Teaching

grantNon-teaching

grantPension

grant SGRY State finHonorarium-chair person

TA-DA-non officials

TA-DA-Staff NABARD

Office Contingenci

es

Backward Regions

Grant FundOther grants Total

1 Adilabad 0.00 0.00 0.00 0.00 37.43 0.00 2.47 0.27 0.00 0.00 436.36 4155.14 4631.672 Ananthapur 0.00 0.00 0.00 0.00 49.12 0.00 0.00 0.39 0.00 0.00 506.97 757.70 1314.183 Chittoor 0.00 992.55 0.00 0.00 65.30 0.00 10.35 0.43 0.00 0.00 471.83 489.91 2030.374 East Godavari 965.58 235.95 0.00 0.00 76.93 13.93 0.00 0.61 0.00 0.00 0.00 2891.04 4184.045 Guntur 0.00 738.98 0.00 9.42 652.12 0.00 8.75 0.55 0.00 0.00 0.00 0.00 1409.826 Kadapa 0.00 0.00 0.00 0.00 36.35 0.00 0.00 0.37 0.00 97.39 402.96 4286.31 4823.387 Karimnagar 0.00 946.27 0.00 40.87 0.00 0.00 919.00 0.15 0.00 0.00 426.26 2543.58 4876.138 Khammam 0.00 647.26 0.00 0.00 37.33 0.00 0.00 0.25 0.00 0.00 449.87 19.58 1154.299 Krishna 0.00 915.95 0.00 74.99 115.23 0.00 7.13 0.46 2106.06 1.75 0.00 1301.25 4522.82

10 Kurnool 0.00 762.70 0.35 7.74 468.57 8.71 0.00 0.17 2315.10 0.00 0.00 9018.29 12581.6311 Mahaboobnagar 0.00 140.20 0.82 0.00 92.18 0.00 14.20 0.30 0.00 0.00 566.96 120.41 935.0712 Medak 0.00 0.00 0.00 23.85 41.28 0.00 0.00 0.00 0.00 0.00 399.99 434.84 899.9613 Nalgonda 1048.75 86.22 0.00 0.00 50.81 0.00 52.84 2.65 0.00 0.00 0.00 1915.60 3156.8714 Nellore 0.00 722.52 5.05 0.00 37.36 12.28 0.00 0.42 0.00 0.00 0.00 2424.36 3201.9915 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 0.0016 Prakasam 0.00 783.84 2.77 308.83 93.57 0.00 0.00 0.87 0.00 0.00 0.00 406.23 1596.1117 Ranga Reddy 621.44 0.00 0.00 2167.15 30.06 0.00 0.00 0.24 0.00 0.00 454.84 2167.15 5440.8818 Srikakulam 0.00 685.94 0.00 0.00 40.78 0.00 0.00 0.19 0.00 0.00 0.00 2256.49 2983.4019 Visakhapatnam 0.00 290.89 9.45 34.86 46.65 0.00 0.00 0.33 0.00 64.16 0.00 632.36 1078.7020 Vizianagaram 0.00 641.55 0.00 0.00 33.16 0.00 0.00 0.34 0.00 0.00 319.52 945.82 1940.3921 Warangal 0.00 881.49 1934.52 0.00 47.34 0.00 0.00 0.33 737.16 0.00 434.47 10907.78 14943.0922 West Godavari 0.00 1109.02 36.84 0.00 55.11 39.60 24.34 10.78 0.00 0.00 0.00 3223.56 4499.25

Total 2635.77 10581.33 1989.80 2667.71 2106.68 74.52 1039.08 20.10 5158.32 163.30 4870.02 50897.40 82204.03

STATEMENT No. 5 (1)CONSOLIDATED STATEMENT OF grants (Receipts)SANCTIONED TO ZILLA PARISHADS FOR THE YEAR 2009-10

Page 130

SL No. Name of the District Teaching

grantNon-teaching

grantPension

grant SGRY State finHonorarium-chair person

TA-DA-non officials

TA-DA-Staff NABARD

Office Contingenci

es

Backward Regions

Grant FundOther grants Total



Total 2819.23 10126.77 1595.84 1801.08 1857.03 77.65 987.82 47.24 2840.86 320.53 5184.96 54830.44 82489.45

STATEMENT No. 5 (2)CONSOLIDATED STATEMENT OF GRANTS (Payments)SANCTIONED TO ZILLA PARISHADS FOR THE YEAR 2009-10

Page 131

1 Adilabad 2146.36 2033.55

2 Anantapur 3283.19 1737.72

3 Chittoor 8357.26 8325.23

4 East Godavari 971.56 959.31

5 Guntur 1845.47 1255.41

6 Kadapa 981.82 879.66

7 Karimnagar 1593.41 2041.94

8 Khammam 4523.70 4219.37

9 Krishna 234.69 273.40

10 Kurnool 313.62 267.30


12 Medak 649.03 631.54

13 Nalgonda 6080.22 6257.50

14 Nellore 158.49 166.36

15 Nizamabad 2233.76 2047.14

16 Prakasam 219.44 213.36

17 Rangareddy 2432.42 2341.02

18 Srikakulam 1346.31 1501.36

19 Vijayanagaram 4219.47 3767.60


21 Warangal 39388.48 39646.72

22 West Godavari 1863.31 1780.74

TOTAL 84788.98 82148.85

STATEMENT No. 6STATEMENT OF CONSOLIDATED RECIEPTS AND PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2009-10 ( GRANTS)

(Rs. in lakhs)# Name of the District RECIEPTS PAYMENTS

Page 132

# Name of the District Teaching

Non Teachin

g

Pension grant SGRY State

Finance

Honorarium to Preside

nts

TA-DA to non

officials

TA-DA to officer

s & staff

NABARDOffice

Contingencies

BRGF Other grants Total

1 Adilabad 0.00 0.52 0.00 5.13 23.98 9.63 5.87 2.87 0.00 2.43 654.53 1441.40 2146.362 Anantapur 0.00 1633.82 0.00 0.00 49.11 36.03 15.13 11.09 0.00 0.00 760.46 777.55 3283.193 Chittoor 4850.37 324.46 0.00 156.75 29.50 12.69 15.70 1.61 0.00 0.00 707.74 2258.44 8357.264 East Godavari 393.51 128.70 0.00 0.00 37.06 29.01 4.87 3.06 0.00 1.19 0.00 374.16 971.565 Guntur 669.07 1.19 0.00 8.78 0.00 0.00 20.18 2.32 0.00 12.64 0.00 1131.29 1845.476 Kadapa 0.00 0.00 180.43 0.00 40.71 23.87 1.52 2.19 0.00 0.27 604.43 128.39 981.827 Karimnagar 146.01 23.59 435.36 12.27 28.64 12.60 17.42 7.25 0.00 44.02 639.38 226.87 1593.418 Khammam 1986.69 70.46 1364.31 4.84 21.29 15.02 1.89 1.65 0.00 3.40 674.81 379.34 4523.709 Krishna 0.00 128.22 0.00 0.51 15.76 19.87 3.26 3.10 0.00 0.30 0.00 63.67 234.6910 Kurnool 0.02 0.00 4.58 86.23 39.72 17.77 1.45 3.47 0.00 0.00 0.00 160.38 313.6211 Mahaboobnagar 0.00 11.21 13.48 0.00 48.69 19.29 11.64 6.37 0.00 0.00 850.44 942.88 1904.0012 Medak 0.00 0.00 0.00 0.00 21.08 3.29 1.40 1.28 0.00 9.01 599.99 12.98 649.0313 Nalgonda 3925.81 842.42 0.00 41.93 34.18 8.92 14.87 5.49 0.00 4.79 730.22 471.59 6080.2214 Nellore 0.00 0.00 0.00 0.00 25.68 15.79 6.52 0.82 0.00 1.29 0.00 108.39 158.4915 Nizamabad 0.00 70.07 1329.78 15.68 6.17 0.83 5.11 0.34 0.00 0.00 513.16 292.62 2233.7616 Prakasam 0.00 0.00 0.00 0.00 26.46 32.12 0.00 9.47 0.00 44.59 0.00 106.80 219.4417 Rangareddy 8.91 35.60 248.40 3.20 12.65 4.28 21.80 2.51 0.00 0.00 682.25 1412.82 2432.4218 Srikakulam 0.87 0.72 1110.05 20.00 26.64 29.21 4.20 2.66 0.00 0.10 0.00 151.86 1346.3119 Vijayanagaram 2213.73 85.59 1027.88 0.00 21.42 2.10 8.28 1.43 0.00 0.26 479.28 379.50 4219.4720 Visakhapatnam 0.00 0.00 0.00 0.00 5.62 0.93 7.68 0.39 0.00 0.00 0.00 28.33 42.9521 Warangal 511.78 428.65 2321.46 5.13 27286.04 24.57 4453.93 1.28 3291.68 274.94 651.71 137.31 39388.4822 West Godavari 267.61 249.75 778.94 19.89 39.76 23.16 55.35 69.26 0.00 1.15 0.00 358.44 1863.31

14974.38 4034.97 8814.67 380.34 27840.16 340.99 4678.07 139.91 3291.68 ##### 8548.42 ####### 84788.98

STATEMENT No.6 (1) CONSOLIDATEDSTATEMENT OF GRANTS ( RECIEPTS) TO MANDAL PARISHADS FOR THE YEAR 2009-10

(in lakhs)

Page 133

# Name of the District Teaching

Non Teachin

g

Pension grant SGRY State

Finance

Honorarium to

Presidents

TA-DA to non

officials

TA-DA to

officers & staff

NABARDOffice

Contingencies

BRGF Other grants Total

1 Adilabad 0.00 2.16 0.00 11.39 24.07 10.10 6.59 6.14 0.00 10.28 551.32 1411.5 2033.552 Anantapur 0.00 166.32 0.00 0.00 36.73 28.63 4.65 22.12 0.00 0.00 826.82 652.45 1737.723 Chittoor 4844.24 317.77 9.05 113.21 16.86 9.50 18.65 12.42 0.00 0.00 697.34 2286.19 8325.234 East Godavari 393.51 128.70 0.00 0.00 27.95 22.60 4.09 25.20 0.00 0.00 0.00 357.26 959.315 Guntur 0.00 0.16 0.00 0.00 6.94 17.39 1.25 16.79 0.00 3.28 0.00 1209.60 1255.416 Kadapa 0.00 0.00 179.66 0.00 32.82 21.23 0.46 12.00 0.00 0.30 506.35 126.84 879.667 Karimnagar 146.01 30.10 0.00 41.28 30.49 11.66 16.12 7.38 375.00 1.05 485.68 897.17 2041.948 Khammam 1981.37 88.98 1378.21 1.73 18.30 20.38 5.03 3.00 0.00 11.77 440.14 270.46 4219.379 Krishna 0.00 179.68 0.00 3.52 9.62 22.46 5.56 9.71 0.00 4.28 0.00 38.57 273.40

10 Kurnool 0.80 0.00 4.60 94.10 30.10 32.90 2.20 16.60 0.00 3.40 0.00 82.60 267.3011 Mahaboobnagar 0.00 0.00 12.19 0.00 56.74 20.14 15.69 8.77 0.00 0.00 663.95 994.09 1771.5712 Medak 0.00 0.00 0.00 0.00 19.60 3.18 1.20 1.22 0.00 7.02 587.30 12.02 631.5413 Nalgonda 3504.05 1637.94 0.00 18.10 26.62 9.27 14.52 19.36 0.00 30.30 526.30 471.04 6257.5014 Nellore 0.00 0.00 0.00 0.00 47.06 12.32 6.68 4.16 0.00 15.00 0.00 81.14 166.3615 Nizamabad 0.00 71.95 1330.43 0.00 9.81 2.29 5.36 0.35 0.00 0.65 323.96 302.34 2047.1416 Prakasam 0.00 0.00 0.00 0.00 72.99 29.41 0.00 12.88 0.00 0.00 0.00 98.08 213.3617 Rangareddy 0.42 35.60 248.39 6.06 11.39 2.94 20.04 5.50 0.00 20.42 565.43 1424.83 2341.0218 Srikakulam 0.87 0.72 1305.22 16.32 18.45 25.68 4.22 14.21 0.00 2.10 0.00 113.57 1501.3619 Vijayanagaram 1960.72 85.59 1027.88 0.00 25.52 2.21 6.35 4.33 0.00 0.26 332.89 321.85 3767.6020 Visakhapatnam 0.00 0.00 0.00 0.00 2.05 0.87 6.07 1.26 0.00 0.00 0.00 20.81 31.0621 Warangal 511.78 364.55 2331.29 5.66 27627.07 35.42 4450.31 4.68 3272.71 284.63 608.27 150.35 39646.7222 West Godavari 234.83 246.49 802.16 18.39 39.62 19.85 54.52 73.66 0.00 16.89 0.00 274.33 1780.74

13578.60 3356.71 8629.08 329.76 28190.80 360.43 4649.56 281.74 3647.71 411.63 7115.75 11597.09 82148.85

STATEMENT No.6 (2) CONSOLIDATED STATEMENT OF GRANTS (PAYMENTS) TO MANDAL PARISHADS FOR THE YEAR 2009-10

( Rs. in lakhs)

Page 134

Sl No NAME OF THE DISTRICT RECEIPTS PAYMENTS

1Adilabad 1302.22 1028.55

2Ananthapur 2429.82 2197.29

3Chittoor 3023.95 3241.56

4East Godavari 2321.53 2594.68

5Guntur 960.70 710.11

6Kadapa 2031.71 1999.94

7Karimnagar 2491.51 3313.55

8Khammam 2567.22 2001.44

9Krishna 1029.44 1087.14

10Kurnool 1135.79 1018.01

11Mahaboobnagar 2674.58 2345.66

12Medak 1301.97 1284.40

13Nalgonda 2452.85 2314.68

14Nellore 1236.82 1506.49

15Nizamabad 1796.61 1563.26

16Prakasam 1549.92 1701.28

17Ranga Reddy 2169.81 2314.45

18Srikakulam 857.04 764.74

19Visakhapatnam 1001.26 666.20

20Vizianagaram 2424.80 2017.98

21Warangal 2434.25 2467.69

22West Godavari 2300.82 2218.39TOTAL 41494.62 40357.49

STATEMENT -7

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM PANCHAYATS FOR THE YEAR 2009-10 (GRANTS)

Page 135

Sl No Name of the District Salary Grant JRY/SGRY XI finance State Finance BRGF Other grant Total1 Adilabad 0.20 0.00 108.06 16.07 1090.89 87.00 1302.222 Ananthapur 184.75 0.41 808.26 168.97 1267.43 0.00 2429.823 Chittoor 699.46 0.10 950.61 169.38 1179.57 24.83 3023.954 East Godavari 0.00 0.00 1167.47 269.74 0.00 884.32 2321.535 Guntur 18.46 2.20 779.88 130.25 0.00 29.91 960.706 Kadapa 80.70 0.00 664.44 109.80 1007.39 169.38 2031.717 Karimnagar 173.09 3.41 865.38 152.15 1065.64 231.84 2491.518 Khammam 0.00 424.05 786.50 140.58 1124.69 91.40 2567.229 Krishna 66.70 5.63 785.39 171.68 0.00 0.04 1029.44

10 Kurnool 6.58 4.99 953.06 156.74 0.00 14.42 1135.7911 Mahaboobnagar 0.00 0.09 1113.53 143.55 1417.41 0.00 2674.5812 Medak 51.28 24.80 52.80 146.29 999.98 26.82 1301.9713 Nalgonda 51.12 0.80 949.86 199.81 1217.03 34.23 2452.8514 Nellore 143.59 0.16 808.65 141.06 0.00 143.36 1236.8215 Nizamabad 1.57 0.00 570.61 73.65 855.27 295.51 1796.6116 Prakasam 0.38 0.00 883.96 204.08 0.00 461.50 1549.9217 Ranga Reddy 383.52 0.36 554.96 93.88 1137.09 0.00 2169.8118 Srikakulam 74.89 9.78 615.62 138.43 0.00 18.32 857.0419 Visakhapatnam 0.99 1.61 817.15 167.03 0.00 14.48 1001.2620 Vizianagaram 3.61 0.00 586.96 129.23 798.81 906.19 2424.8021 Warangal 3.79 0.10 1165.03 169.70 1086.17 9.46 2434.2522 West Godavari 166.23 35.02 1209.33 312.28 0.00 577.96 2300.82

TOTAL 2110.91 513.51 17197.51 3404.35 14247.37 4020.97 41494.62

STATEMENT No. 7(1)STATEMENT OF CONSOLIDATED GRANT WISE RECEIPTS OF GRAMPANCHAYATS FOR THE YEAR 2009-10

Rs.in lakhs

Page 136

Sl No Name of the district Salary Grant JRY/SGRY XI finance State Finance BRGF Other grant Total1 Adilabad 13.04 0.00 78.28 15.86 824.12 97.25 1028.552 Ananthapur 183.64 3.23 697.29 174.93 1138.20 0.00 2197.293 Chittoor 845.11 2.07 735.31 141.03 1196.35 321.69 3241.564 East Godavari 404.33 3.69 1110.10 227.52 0.00 849.04 2594.685 Guntur 102.86 2.97 480.37 121.66 0.00 2.25 710.116 Kadapa 109.84 0.00 650.37 105.37 838.45 295.91 1999.947 Karimnagar 346.17 2.40 825.20 185.08 834.67 1120.03 3313.558 Khammam 19.65 305.02 608.15 128.88 838.65 101.09 2001.449 Krishna 205.59 26.50 730.36 118.20 0.00 6.49 1087.14

10 Kurnool 80.37 10.56 783.08 133.79 0.00 10.21 1018.0111 Mahaboobnagar 0.00 0.09 1069.74 165.13 1110.70 0.00 2345.6612 Medak 130.48 24.80 90.92 160.28 852.10 25.82 1284.4013 Nalgonda 91.18 0.89 820.13 203.49 1138.70 60.29 2314.6814 Nellore 487.51 0.21 865.65 138.26 0.00 14.86 1506.4915 Nizamabad 92.23 0.00 671.78 80.06 598.99 120.20 1563.2616 Prakasam 323.89 2.52 635.79 136.34 0.00 602.74 1701.2817 Ranga Reddy 563.85 2.30 575.98 141.53 1030.79 0.00 2314.4518 Srikakulam 126.02 18.78 446.15 154.12 0.00 19.67 764.7419 Visakhapatnam 64.82 2.99 459.68 138.71 0.00 0.00 666.2020 Vizianagaram 3.30 0.00 648.96 117.22 724.31 524.19 2017.9821 Warangal 637.70 0.64 817.88 170.63 840.84 0.00 2467.6922 West Godavari 217.30 34.75 1270.02 300.35 0.00 395.97 2218.39

TOTAL 5048.88 444.41 15071.19 3258.44 11966.87 4567.70 40357.49

Rs. In Lakhs

STATEMENT No. 7(2)

STATEMENT OF CONSOLIDATED GRANT WISE PAYMENTS OF GRAMPANCHAYATS FOR THE YEAR 2009-10

Page 137

Sl. No.

NAME OF THE INSTITUTION

No. OF OBJECTIONS

AMOUNT Rs. In lakhs.

1 ZILLA PARISHADS 1968 13125.65

2 MANDAL PARISHADS 23444 14815.41

3 GRAM PANCHAYATS 302882 14012.12

TOTAL:- 328294 41953.18

STATEMENT No. 8

STATEMENT SHOWING AUDIT OBJECTIONS RAISED DURING THE YEAR 2009-10

Page 138

Sl. No. NAME OF THE CATEGORY No. of

paras % Amount %

1 Variation in Account Figures 4224 1 833.38 2.00

2 Excess Utilisation of Grants / Funds 7114 2 608.33 1.00

3 Diversion of Grants / Funds 1530 0 1332.19 3.00

4 Non-utilisation of grants before the lapsable date

12574 4 1170.49 3.00

5 Mis-utilisation of Grants / Funds 498 0 518.85 1.00

6 Non-utilisation of Earmarked Funds 2131 1 1870.16 5.00

7 Non-collection of dues 21325 6 2812.00 7.00

8 Advances pending adjsutemnt 6482 2 2578.76 6.00

9 Violation of Rules 68649 21 5865.21 14.00

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills

27089 8 2779.29 7.00

11 Non Production of Records 49433 15 10458.85 25.00

12 Misappropriations 590 0 155.46 0.00

13 Excess Payments 1780 1 276.71 1.00

14 Wasteful Expenditure 271 0 72.54 0.00

15 Instances of cases of unaccounted for cash / stores

291 0 29.53 0.00

16 Pendency of Utilisation Certificates 6676 2 9288.79 22.00

17 Surcharge Certificates recovery pending 266 0 23.63 0.00

18 Others 117176 36 851.58 2.00

19 D.D/Cheques received but not realized with in time

148 0 30.45 0.00

Total: 328247 100 41556.20 100

STATEMENT SHOWING INCIDENCE OF OBJECTIONS (2009-10)STATEMENT -9

Page 139

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 72 161.87 609 188.74 538 168.30 1219 518.912 Ananthapur 101 647.37 1113 90.39 10687 297.35 11901 1035.113 Chittoor 70 169.91 2190 773.95 7014 471.74 9274 1415.604 East Godavari 116 1257.55 1012 296.02 18069 810.68 19197 2364.255 Guntur 85 161.30 739 168.46 18211 647.31 19035 977.076 Kadapa 121 742.02 743 89.61 15252 274.32 16116 1105.957 Karimnagar 44 24.21 792 152.63 14430 465.68 15266 642.528 Khammam 95 729.00 742 341.81 8019 345.04 8856 1415.859 Krishna 166 1931.46 932 130.23 16796 606.15 17894 2667.84

10 Kurnool 43 142.12 6088 8971.68 16803 629.90 22934 9743.7011 Mahaboobnagar 45 106.73 892 250.78 18913 731.20 19850 1088.7112 Medak 67 499.67 351 225.65 295 495.62 713 1220.9413 Nalgonda 17 22.96 523 249.40 11459 413.53 11999 685.8914 Nellore 53 17.33 801 105.37 12481 560.88 13335 683.5815 Nizamabad 0 0.00 357 123.56 6929 525.05 7286 648.6116 Prakasam 178 100.29 804 101.27 19766 948.52 20748 1150.0817 Ranga Reddy 46 190.95 837 436.54 10752 1291.87 11635 1919.3618 Srikakulam 183 3070.52 1224 1435.49 29279 1062.10 30686 5568.1119 Visakhapatnam 64 757.58 639 86.82 21126 1076.90 21829 1921.3020 Vizianagaram 106 126.34 791 117.25 13872 882.21 14769 1125.8021 Warangal 119 347.42 639 349.12 17538 783.37 18296 1479.9122 West Godavari 130 1522.06 626 130.64 14653 524.4 15409 2177.10

TOTAL: 1921 12728.66 23444 14815.41 302882 14012.12 328247 41556.19

STATEMENT No. 9 (DIST)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (DISTRICT WISE) AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Sl. No. NAME OF THE DISTRICT

ZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS TOTAL

Page 140

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Variation in Account Figures 42 674.38 377 42.47 3805 116.5251 4224 833.382 Excess Utilisation of Grants / Funds 14 91.09 955 290.87 6145 226.3725 7114 608.333 Diversion of Grants / Funds 47 952.95 960 348.31 523 30.93461 1530 1332.194 Non-utilisation of grants before the lapsable date 27 653.48 376 391.99 12171 125.0179 12574 1170.495 Mis-utilisation of Grants / Funds 5 105.6 397 280.53 96 132.72 498 518.856 Non-utilisation of Earmarked Funds 27 322.87 2067 1543.18 37 4.11 2131 1870.167 Non-collection of dues 163 504.56 384 249.05 20778 2058.386 21325 2812.008 Advances pending adjsutemnt 57 318.01 717 343.62 5708 1917.134 6482 2578.769 Violation of Rules 381 1952.48 2621 629.58 65647 3283.155 68649 5865.21

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc.,

135 187.6789 2749 667.31 24205 1924.295 27089 2779.29

11 Non Production of Records 467 4086.95 3443 3075.80 45523 3296.103 49433 10458.8512 Misappropriations 2 1.18 140 41.43 448 112.8459 590 155.4613 Excess Payment 107 35.49 980 119.45 693 121.7687 1780 276.7114 Wasteful Expenditure 15 21.28 83 21.83 173 29.42868 271 72.54

15 Instances of cases of unaccounted for cash / stores 5 3.85 55 8.09 231 17.58602 291 29.53

16 Pendency of Utilisation Certificates 98 2743.49 1495 6447.58 5083 97.72 6676 9288.7917 Surcharge Certificates recovery pending 14 2.03 9 3.47 243 18.13037 266 23.6318 Others 315 71.29 5488 280.40 111373 499.887 117176 851.58

19 D.D/Cheques received but not realized with in time

0 0.00 148 30.45 0 0 148 30.45

Total: 1921 12728.66 23444 14815.41 302882 14012.12 328247 41556.19

STATEMENT No 9 ( CAT)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED

FOR THE YEAR 2009-10Rs. In lakhs

Sl. No. NAME OF THE CATEGORY ZILLA PARISHADS MANDAL

PARISHADSGRAM PANCHAYATS TOTAL

Page 141



TOTAL: 42 674.38 377 42.47 3805 116.53 4224 833.38

MANDAL PARISHADS GRAM PANCHAYATS

STATEMENT No. 9 (1)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON VARIATION IN ACCOUNT FIGURES AND AMOUNT

INVOLVED FOR THE YEAR 2009-10Rs. In lakhs

TOTALSl. No. NAME OF THE DISTRICT ZILLA PARISHADS

Page 142



TOTAL: 14 91.09 955 290.87 6145 226.37 7114 608.33

STATEMENT No. 9 (2)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS UTILISATION OF GRANTS / FUNDS AND AMOUNT

INVOLVED FOR THE YEAR 2009-10

TOTAL

Rs. In lakhs


ZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS

Page 143



TOTAL: 47 952.95 960 348.31 523 30.93 1530 1332.19461

STATEMENT No. 9 (3)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON DIVERSION OF GRANTS / FUNDS AND AMOUNT

INVOLVED FOR THE YEAR 2009-10

TOTAL

Rs. In lakhs



Page 144



TOTAL: 27 653.48 376 391.99 12171 125.02 12574 1170.49

STATEMENT No. 9 (4)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-UTILISATION OF GRANTS BEFORE THE

LAPSABLE DATE AND AMOUNT INVOLVED FOR THE YEAR 2009-10

TOTAL

Rs. In lakhs


ZILLA PARISHADS MANDAL PARISHADS

GRAM PANCHAYATS

Page 145


10 Kurnool 0 0.00 73 85.76 0 0.00 73 85.7611 Mahaboobnagar 3 44.38 106 99.55 0 0.00 109 143.9312 Medak 1 3.22 0 0.00 2 23.50 3 26.7213 Nalgonda 0 0.00 7 4.30 6 0.41 13 4.7114 Nellore 0 0.00 0 0 0 0.00 0 0.0015 Nizamabad 0 0.00 42 46.06 1 0.07 43 46.1316 Prakasam 0 0.00 0 0.00 0 0.00 0 0.0017 Ranga Reddy 0 0.00 8 0.00 19 12.09 27 12.0918 Srikakulam 0 0.00 0 0.00 1 0.28 1 0.2819 Visakhapatnam 0 0.00 5 0.00 0 0.00 5 0.0020 Vizianagaram 0 0.00 0 0.00 2 0.04 2 0.0421 Warangal 0 0.00 0 0.00 16 90.40 16 90.4022 West Godavari 0 0.00 0 0.00 14 0.14 14 0.14

TOTAL: 5 105.60 397 280.53 96 132.72 498 518.85

STATEMENT No. 9 (5)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS - UTILISATION OF GRANTS / FUNDS AND

AMOUNT INVOLVED FOR THE YEAR 2009-10

TOTAL

Rs. In lakhs



GRAM PANCHAYATS

Page 146



TOTAL: 27 322.87 2067 1543.18 37 4.11 2024 1870.16

STATEMENT No. 9 (6)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON - UTILISATION OF EARMARKED FUNDS AND

AMOUNT INVOLVED FOR THE YEAR 2009-10Rs. In lakhs



Page 147



TOTAL: 163 504.56 384 249.05 20778 2058.39 21325 2812.00

STATEMENT No. 9 (7)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-COLLECTION OF DUES AND AMOUNT INVOLVED FOR THE YEAR 2009-10

TOTALSl. No. NAME OF THE

DISTRICTZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS

Page 148



TOTAL: 57 318.01 717 343.62 5708 1917.13 6482 2578.76

STATEMENT No. 9 (8)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON ADVANCES PENDING ADJUSTMENT AND AMOUNT INVOLVED FOR THE YEAR 2009-10

TOTALSl. No. NAME OF THE DISTRICT


Page 149



TOTAL: 381 1952.48 2621 629.58 65647 3283.15 68649 5865.21

STATEMENT No. 9 (9)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON VIOLATION OF RULES AND AMOUNT INVOLVED FOR THE YEAR 2009-10



Page 150



TOTAL: 135 187.68 2749 667.31 24205 1924.30 27089 2779.29

STATEMENT No. 9 (10)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON (10 ALL OBJECTIONS TOTAL) AMOUNT INVOLVED FOR THE

YEAR 2009-10Rs. In lakhs



Page 151



TOTAL: 467 4086.95 3443 3075.80 45523 3296.10 49433 10458.85

STATEMENT No. 9 (11)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-PRODUCTION OF RECORDS AND AMOUNT INVOLVED

FOR THE YEAR 2009-10Rs. In lakhs



Page 152



TOTAL: 2 1.18 140 41.43 448 112.85 590 155.46

STATEMENT No. 9 (12)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS-APPROPRIATIONS AND AMOUNT INVOLVED FOR

THE YEAR 2009-10Rs. In lakhs



Page 153



TOTAL: 107 35.49 980 119.45 693 121.77 1780 276.71

STATEMENT No. 9 (13)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS PAYMENTS AND AMOUNT INVOLVED FOR THE

YEAR 2009-10Rs. In lakhs



Page 154



TOTAL: 15 21.28 83 21.83 173 29.43 271 72.54

STATEMENT No. 9 (14)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON WASTEFUL EXPENDITURE AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Rs. In lakhs



Page 155



TOTAL: 5 3.85 55 8.09 231 17.59 291 29.53

STATEMENT No. 9 (15)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON INSTANCES OF CASES OF UNACCOUNTED FOR CASH /

STORES AND AMOUNT INVOLVED FOR THE YEAR 2009-10Rs. In lakhs



Page 156



TOTAL: 98 2743.49 1495 6447.58 5083 97.72 6676 9288.79

STATEMENT No. 9 (16)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON PENDENCY OF UTILISATION CERTIFICATES AND




Page 157



TOTAL: 14 2.03 9 3.47 243 18.13 266 23.63

STATEMENT No. 9 (17)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON SURCHARGE CERTIFICATES RECOVERY PENDING AND




Page 158



TOTAL: 315 71.29 5488 280.40 111373 499.89 117176 851.58

STATEMENT No. 9 (18)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON OTHERS AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Rs. In lakhs



Page 159



TOTAL: 0 0.00 148 30.45 0 0.00 148 30.45

STATEMENT No. 9 (19)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON D.D / CHEQUES RECEIVED BUT NOT REALIZED WITH

IN TIME AND AMOUNT INVOLVED FOR THE YEAR 2009-10Rs. In lakhs

Sl. No.



GRAM PANCHAYATS

TOTAL

Page 160

PART - II



PART – II


MUNICIPAL CORPORATIONS FOR

THE YEAR 2009-10

DIRECTOR OF STATE AUDITA.P., HYDERABAD.

PART – II

SECTION - I

Sl. No. DESCRIPTION PAGE

No. 1 Introduction 161-168 2 A few Selected Audit Objections – Category wise 169-231

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2009-10 OF MUNICIPAL

CORPORATIONS PAGE

No.

1 Status of Audit of Municipal Corporations (District wise)

232

2 Opening Balance Sheets of Municipal Corporations (District wise & Head Wise).

233-236

3 & 4 Receipts and Payments of Municipal Corporations. (District wise & Head Wise).

237-240

5 & 6 Income & Expenditure of Municipal Corporations (District wise & Head Wise).

241-242

7 & 8 Assets & Liabilities of Municipal Corporations (District wise & Head Wise).

243-245

9 No. of Audit Objections raised (District wise & Category wise) and Amount involved in respect of Municipal Corporations.

246-249

CONTENTS

SECTION - I

161

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF MUNICIPAL CORPORATIONS FOR THE YEAR 2009-10

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 Municipal Corporations constituted in the State of Andhra Pradesh. The Number of Municipal Corporations for the year 2009-10 is 16.

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 and also

conducts pre audit of Expenditure by the Examiner of Accounts and Asst. Examiner of Accounts. The 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

2.1 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 and Rules issued thereon. 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.

162

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.

2.2 The ULBs in Andhra Pradesh have been maintaining and producing the accounts

to the Audit Department in Single Entry System up to 2008-09.

The XIII Finance Commission has stipulated 9 conditions to be fulfilled by the State Government, one of which (condition No.1.b.), is that Urban Local Bodies shall maintain accounts in Accrual Based Accounting System, consistent with the Accounting format and codification pattern suggested in the National Municipal Accounts Manual. This key Urban Reform was also recommended earlier, by previous Finance Commissions as well as the Second Administrative Reforms Commission and is a mandated Urban Local Body reform under Government of India flagship program, JNNURM. In fact, it was, basing upon the recommendation of the Eleventh Finance Commission, the Government of India (GoI), in 2001, issued guidelines to Comptroller & Auditor General of India (CAG) to prescribe certain formats for Urban Local Bodies, amenable to computerization. In September, 2004, the National Municipal Accounting Manual (NMAM) developed by CAG, was made available to all State Governments, including Andhra Pradesh for necessary adoption. The Government of Andhra Pradesh, as part of the above initiative, has issued orders in GO Ms No. 233 MA & UD Department, dated 22.05.2002, with instructions to all the Urban Local Bodies / Corporations to adopt, with immediate effect the Accrual Based Accounting System within their jurisdiction. Further in G.O. Ms. No. 619 MA & UD Department, 21.08.2007, the Government (GOAP), directed all the ULBs in the State to implement the A.P. Municipal Accounting Manual (Double Entry Accrual Based Accounting System) which has been adopted by the State Government, from NMAM, with the help of Centre for Good Governance (CGG).

2.3 The Commissioner and Director of Municipal Administration got migrated the

accounts maintained in Single entry in to Double Entry Accrual Based Accounting System through reputed chartered Accountant firms using Software developed by the CGG as permitted by the Government vide GO.Rt.No.287 MA&UD (R) Dept, Dt.21-02-2011 in 123 ULBs leaving the GHMC, whereas, the GHMC introduced modified Double Entry Accrual Based Accounting System of Accounting from the Financial Year 2002-03.

2.4 The Department has conducted audit in Double Entry Accrual Based Accounting

System (DEABAS) and verified the Opening Balance Sheets as on 01.04.2009, Receipts & Payments, Income & Expendtiure Statements and Balance Sheets as on 31.03.2010 as detailed below.

163

STATUS OF AUDIT

3.1 Out of 16 Municipal Corporations existed for the year 2009-10, audit of 7 Municipal Corporations viz., GVMC, Kakinada, Guntur, Nellore, Kurnool, Anantapur and GHMC for the year 2009-10 was conducted up to 31.12.2012. The remaining 9 Municipal Corporations viz., Rajamundry, Eluru, Vijayawada, Tirupati, Kadapa, Nizamabad Karimnagar Ramagundam and Warangal could not produce their annual accounts along with connected records to audit.

Demand

as on 01.04.2010 Audit Completed as on 31.12.2012

Balance as on 01.01.2013

16 07 09

OPENING BALANCE SHEET

3.2 Before migrating accounts in to DEABAS the Municipal Corporations have identified its Assets and Liabilities as on 01.04.2009 and incorporated the details in 29 formats prescribed in APMAM viz opening balance sheet. Based on the Model National Municipal Asset Valuation Methodology Manual for valuation of Municipal Assets, CGG has developed A.P. Municipal Assets Valuation Methodology Manual and Government adopted this Manual vide G.O. Ms. No. 217 MA & UD (UBS) Department, dated 18.05.2010. Accordingly Municipal Corporations have prepared Opening Balance Sheets as per which a total number of 53295 Assets involving its book value Rs.201870.22 lakhs identified as existed as on 01.04.2009 and Rs.24323.50 lakhs liabilities are existed in 06 Municipal Corporations as detailed in Statement No.2.

RECEIPTS & PAYMENTS 3.3 The Department has conducted the audit of the Receipts amounting to

Rs.217390.47 lakhs and Payments of Rs.207723.33 lakhs as detailed in the Statements No.3 & 4 with Corporation wise break up.

3.4 The Revenue & Capital Receipts and Payments are inclusive of the various Grants

received from Central and State Governments during the year 2009-10 by the Municipal Corporations. The head wise Revenue & Capital Receipts and Payments of 7 Municipal Corporations are detailed in Statement No. 3 (1) , (2) and 4(1), 4(2) respectively.

164

3.5 The head wise Revenue Receipts of Municipal Corporations for the year 2009-10 are exhibited below in the Pie chart for 7 Municipal Corporations

REVENUE RECEIPTS OF MCS FOR 2009-10

66%10%

1%

11%

0%

3%

1%

0%

8%Tax Revenue - 66%

Assigned Revenues andCompensations - 10%

Rental Income from MunicipalProperties - 1%

Fees and User Charges - 11%

Sale and Hire Charges - 0%

Revenue Grants Contribution andSubsidies - 3%

Income from Investments - 1%

Interest Earned - 0%

Other Income - 8%

3.6 The head wise Capital Receipts of Municipal Corporations for the year 2009-10 are exhibited below in the Pie chart for 7 Municipal Corporations.

CAPITAL RECEIPTS OF MCs FOR 2009-10

0%

1%

0%

85%

0%

0%

4%

0%

10%

0%

Municipal Fund - 0%

Earmarked Funds - 1%

Reserves - 0%

Grants Contribution forspecific purposes - 85%

Secured Loans - 0%

Unsecured Loans - 0%

Deposits Received - 2%

Deposit works - 0%

Other Liabilities - 5%

Provisions - 0%

165

3.7 The head wise Revenue Payments of Municipal Corporations for the year 2009-10 are exhibited below in the Pie chart for 7 Municipal Corporations.

PIE Chart of Revenue Payments of MCs for 2009-10

34%

5%54%

4%

3%

0%

0%

0%

0%

0%

0%

Establishment Expenses - 34%

Administrative Expenses - 5%

Operations and Maintenance -53%Interest and Finance Charges -4%Programme Expenses - 3%

Revenue Grants Contribution andSubsidies - 0%Provisions and Write off - 0%

Miscellaneous Expenses - 0%

Depreciation - 0%

Prior Period Item - 0%

Transfer to Reserve Funds - 0%

3.8 The head wise Capital Payments of Municipal Corporations for the year 2009-10 are exhibited below in the Pie chart for 7 Municipal Corporations.

PIE Chart of Capital Payments of MCs for 2009-10

52%

0%

41%

0%

5%

0%

0%

0%

0%

2%

0%

0%

0%

Fixed Assets - 51%

Accumulated Depreciation - 0%

Capital Work-In-Progress - 41%

Investments-General Fund - 0%

Investments-Other Funds - 5 %

Stock-in- hand 0%

Accumulated Provisions againstDebtors (Receivables) - 0%

Pre-paid Expenses - 0%

Cash and Bank balance - 0%

Loans Advances and Deposits - 2%

Accumulated Provisions againstLoans Advances and Deposits - 0%

Other Assets - 0%

Miscellaneous Expenditure to bewritten off - 0%

166

INCOME & EXPENDITURE

3.9 The Income & Expenditure of the said seven (7) Municipal Corporations for the year 2009-10 are Rs.156315.90 lakhs and Rs.158806.05 lakhs respectively as exihibited in Statement No.5 & 6.

BALANCE SHEET

3.10 A Statement of the Financial Position of seven (7) ULBs, which exhibits its assets, liabilities, capital, reserve and other account balances shown in Balance Sheet. The Assets & Liabilities as on 31.03.2010 are Rs.340104.12 lakhs & Rs.396101.22 lakhs respectively as exihibited in Statement No.7 & 8.

AUIDT OPINION

4.1 On verification of financial statements furnished by the said Municipal Corporations, it is opined except for the receivables and payables were assessed based on the Registers / Records duly certified by the competent authorities.

4.2 The Assets & Liabilities furnished in the Opening Balance Sheet as on 01.04.2009 is defective i.e. certain assets have been ommitted, Cash and Bank balances furnished in the Form No. 17 & 18 of Opening Balance Sheet were not reconciled with Cash Book and Treasury Balances. Proper treatment is not given to Advances.

4.3 Many mis-classification pointed out were not rectified Expenditure Booked as Receipts and vice versa thereby (-) balances shown in the Accounting Statements mis-classification of Capital expenditure into Revenue Expenditure with cascading effecting of incorrect determination of depreciation expense and mis-statement of assets in the balance sheet.

The financial statements in all material respects, the financial position of the Municipal Corporations, the results of operation and its cash flows for the year ended with 31.03.2010 is inaccordance with the accounting principles generally accepted.

AUDIT OBJECTIONS

5.1 During the course of audit of these Municipal Corporations for the year 2009-10 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 1989.

5.2 A total number of 1308 audit objections involving an amount of Rs.34760.11 lakhs were raised in the audit of the Municipal Corporations during the year under report.

5.3 A Consolidated Statement showing the number of objections raised, amount involved with category wise break-up is annexed vide Statement No.9

167

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 9 (1) to 9 (3)].

5.6 The objections raised have been here under and observed that the Non collection

of dues has accounted for 57% of objections followed by Violation of Rules 26%.

5.7 Gist of some of the selected audit objections pertaining to the year under report is enumerated below:

168

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2009-10

Rs. In lakhs.

Sl. No. NAME OF THE CATEGORY No. AMOUNT % on

Amount

1 Non-collection of dues 228 19651.66 57

2 Non Production of Records 400 9018.73 26

3 Others 237 3042.23 9

4 Non remittance of Deductions 31 1681.24 5

5 Violation of Rules 291 915.50 3

6 Advances pending adjustment 18 217.98 1

7 Variation in Account Figures 8 95.55 0

8 D.D. Cheques received but not realised with in time 2 74.00 0

9 Excess Payments 48 59.25 0

10 Mis-appropriations 17 2.40 0

11 Wasteful Expenditure 3 1.36 0

12 Surcharges Certificates- Recovery Pending 1 0.17 0

13 Instances of cases of unaccounted for cash / stores 2 0.03 0

14 Excess Utilisation of Grants / Funds 10 0.00 0

15 Diversion of Grants / Funds 0 0.00 0

16 Non-utilisation of grants before the lapsable date 0 0.00 0

17 Mis-utilisation of Grants / Funds 2 0.00 0

18 Non- utilisation of Earmarked Funds 7 0.00 0

19 Pendency of Utilisation Certificates 3 0.00 0

Total: 1308 34760.11 100

The objections - Number and amount involved - were categorized and their

category has been analyzed. 57% of amount objected pertains to the Non collection of dues, followed by Non production of records which constitutes 26%.

169

AUDIT-PARAS

Gist of some of the selected audit objections raised during the year 2009-10 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 in to the Treasury Pass Book by the Treasury Authorities. Receipts credited in the cash book by remittance through Challans are not credited in the Treasury Pass Book by the Treasury Authorities. Debiting the cheques issued by one D.D.O. to another D.D.O. by Treasury authorities. 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 ARs in various Municipal Corporations are detailed below:

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

the Report from which it could be seen that Non-reconciliation of Rs. 95.55 lakhs was pointed out in 8 audit paras.

A few of such cases are detailed below.

1(1) GVMC - VARIATION BETWEEN OPENING BALANCE EXHIBITED IN THE STATEMENT OF RECEIPTS & PAYMENTS AND BUDGET(R) FOR 2009-10.

It is noticed during audit for the year 2009-10 that the Opening Balance exhibited in the Statement of Receipts & Payments furnished to audit and the opening balance exhibited in the Budget Estimates is varied, as exhibited hereunder:

Opening Balance vide Receipts & Payments statement for the year

2009-10 (Rs.)

Opening Balance vide RBE for 2009-10

(Rs.)

Variation (Rs.)

133,11,86,000 72,63,62,000 60,48,24,000 The above variation resulted as there are no manual records and also there was no reconciliation of accounts at any point of time. The Executive Authority should evince interest in reconciling the variation between both the figures and fact intimated.

(Para No. 4 (1) of AR of GVMC for 2009-10)

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1(2) GVMC - VARIATION- VARIATIONS BETWEEN ZONAL FIGURES AND MAIN OFFICE FIGURES- NEEDS RECTIFICATION

During the course of audit for the year 2009-10, it is noticed that as verified from the head wise receipt of zonal figures with figures obtained from IT section of main office of GVMC Visakhapatnam, it is noticed that the zonal figures were not tallied with the main office figures as detailed below:

Sl. No.

Major Head of Receipt Sub head Ward

No

Figures as per Main Office

(Rs. In lakhs)

Figures as per Zonal Office (Rs. In lakhs)

No. of Assessments 37091 37092Current Demand 357.9 357.6

Current Collection 253.04 334.64 Current Balance 103.08 229.2Arrear Demand 205.73 Not Produced

Arrear Collection 112.65 Not Produced

1

Prop

erty

Tax

Zo

ne-I

Arrear Balance War

d N

o.1

to w

ard

No.

6

93.08 Not ProducedNo. of Assessments 3989 3947

Current Demand 311.87 312.01 Current Collection 41.56 68.92 Current Balance 270.31 243.09 Arrear Demand 314.85 Not Produced


2

Vac

ant L

and

Tax

Zo

ne-I

Arrear Balance War

d N

o.1

to w

ard

No.

6

282.86 Not Produced

No. of Assessments 1755 1364



D&

O T

rade

s Zo

ne-I

Arrear Balance War

d N

o.1

to w

ard

No.

6

0.97 Not Produced

Current Demand 7960643 7951933

Current Collection 5991404 5975429

3

D&

O T

rade

s Zo

ne-I

II

Current Balance

War

d N

o.19

to

war

d N

o.30

1969239 1976504


Arrear Collection 8.47 Not Produced4 Leases

Zone-I

Arrear Balance W

ard

No.

1 to

war

d N

o.6

27.20 Not Produced

171

No. of Assessments 5307 1573

Demand 54.89 27.93

Collection 35.54 27.93 5

Tap Connections

Zone-I Balance W

ard

No.

1 to

war

d N

o.6

19.33 nil

To verify the variation in the remainig zones, the information was not produced despite requests made through half margin letters and it could not be verified by the audit as the manual demand registers were dispensed with on introduction of online system.

From the above information it is ascertained that due to non-maintenance of Arrear Demand Registers the above difference arose. In view of the above variation the correctness of the account figures could not be verified and certified in audit. Hence, action would need to be taken to rectify the defects and produced the reconciled books of accounts to audit for verification.


1 (3) (1) MC, ANANTAPUR – VERIFICATION OF ACCOUNTS IN DEABAS – CERTAIN VARIATION NOTICED IN OPENING AND CLOSING BALANCES AND DIFFERENCE IN CASH ON HAND AS ON 01.04.2009 - DISCREPANCY NEEDS TO BE RECTIFIED.

a) Cash on hand as on 1.4.2009 as per cash book maintained(manual)

by Municipal Corporation. : Rs.46,85,789.00 b) Cash on hand as on 1.4.2009 as per Receipts and Payments statement. : Rs.– Nil c) Cash on hand as on 1.4.2009 as per Cash Book maintained

by the Chartered Accountant.: Rs.1,90,049.00 d) Cash on hand as on 1.4.2009 as per FOB Rs.–Nil-

There is no relevance in between the accounts in respect of Cash on hand as on 1.4.2009.

2. Similarly in FOB the Bank balances were shown as on 31-03-2009 Rs.8,96,07,926/-, whereas it was shown as Rs.6,69,12,077.00 in Receipts and Payments statement. There is discrepancy in Bank Balance between FOB & Receipts and Payments statement.

3. As seen from the Receipts and Payments statement the Cash on hand as on 1.4.2009 was shown as –Nil- instead of Rs.46,85,789.00 which shown in Cash Book of 001 and 002 accounts as opening balance.

4. As verified from the Balance Sheet as on 31.3.2010, an amount of Rs.5,51,99,771.00 was shown under Assets under Sundry debtors (receivable) amount for which no specific ledger not produced/available along with the other supporting subsidiary register for Sundry Debtors. 5. Similarly an amount of Rs.14,84,08,040.83 was shown in Balance Sheet as on 31.3.2010 as Cash and Bank balances under Assets. But the breakup details for the entire Bank and Cash balances are not made available for audit along with the Bank Pass Books.

172

Similarly there is difference in the Cash on hand as on 31.3.2010. Cash on hand as on 31.3.2010 as per(manual cash book) : Rs. 43,90,963.00 Cash on hand as on 31.3.2010 as per cash book of Chartered Accountant:

Rs.48,26,508.00 Cash on hand as on 31.3.2010 as per Receipts and Payments statement : Rs.47,88,958.00

6. PROPERTY TAX COLLECTION:

As per the DCB statement for the year 2009.2010 the property tax collected was shown as 10.323 crores where as the collection in Receipts and Payments statement it was shown as 8.8028 crores and Rs.8,87,28,391.00 as per the subsidiary registers under various components. The discrepancy shall be reconciled. 7. BANK BALANCES: Abstract of Bank Balances available in Bank as on 31.3.2010 not made available for audit for verification. 8. The total value of the Assets as on 1.4.2009 was shown as Rs.62,84,38,923.00 in FOB statement and in closing value of the Assets as on 31.3.2010 was shown as Rs.65,11,86,360.00 in balance sheet. But the assets made during the year 2009-10, depreciation allowed, assets disposed etc. statement not made available for audit. The total depreciation allowed on each item of assets not pointed out to audit. There is no breakup details i.e., Balance Sheet schedules not made available for audit. 9. As seen from the D&O Trade demand register an amount of Rs.8,41,320.00 was shown as collection during the year 2009.2010. Whereas in the Receipts and Payments statement it was shown as Rs.2,98,096.00 towards collection of fee under D&O trade license under Account code 1401101. The discrepancy shall be rectified. 10. As per the Receipts and Payments statement for 2009-10 an amount of Rs.59,42,790.00 was shown under payment under Account Code No.4604001 Advance to Suppliers (which is not correct as no advance payments is being paid to suppliers) which needs supporting records. Without proper supporting records, the figures reflected in accounts is not in order. 11. UNCLASSIFIED INCOME:

In the Receipts and Payments statement for the year 2009-10 (General Fund) an amount of Rs.24,18,314.00 was shown under income as “unclassified income under Account Code 1808006 “ which needs rectification.

12. As per Receipts and Payments statement both General Funds and Capital Funds, an amount of Rs.7,47,872.00 and Rs.11,70,411.00 was under receipts as “SB Account” without classification these lump sum amounts were taken to Receipts and Payments statement. 13. Further an amount of Rs.2,51,68,000/- was shown under “Other Receipts” under Account Code No.3202023 though the huge amount was received from Government towards Scheme funds. Scheme funds shall be clearly classified under each scheme and accounted for.

173

14. As per Municipal Accounts Manual funds transferred from one account (Fund to fund) to another account need not be taken to consolidated account. But an amount of Rs.2,41,52,000/- was shown in Receipts and Payments under “Inter Fund Transfer” which is incorrect. 15. As verified from the Receipts and Payments statement (Capital Fund Account) it is noticed that several grants received during the year 2009-10 under BRGF, Solid Waste Management, APUSPC I, APUSP C2, MP LADS, RF of IDSMT, Drought fund not taken to account because only an amount of Rs.44,02,901.00 alone shown under MP Lads grant.

(Para No. 1 of AR of MC Anantapur for 2009-10)

1(4) MC GUNTUR – VERIFICATION OF FOBS AND ANNUAL ACCOUNTS FURNISHED IN DEABAS – 1. NON IDENTIFICATION OF MANY ASSETS: Many assets were not identified in spite of pointing out relevant objections in the FOBS verification report. The Executive Authority of the ULB ought to have shown much more interest in identifying valuable assets and taken steps to include the same in the Balance Sheet. In most of the ULBs the head water works constructed by the PH Engineering Department were not taken as asset on the plea that the expenditure was not incurred by the ULB. 2. CLASSIFICATION OF FOBS BALANCES NOT FURNISHED: The comparative statement (statement showing the detailed classification of the balances in the FOBS) showing the balances shown in the ‘F.O.B.S.” as on 1-4-2009 and the opening balances taken to ‘General Ledgers’ as on 1-4-2009 was not furnished. In the absence of the same, the opening balances taken to General Ledgers could not be verified. 3. RECONCILIATION STATEMENTS NOT FURNISHED :

It was mandated by the manual instructions and also a fundamental principle in the maintenance of accounts that bank reconciliation statements be prepared periodically and enclosed to annual accounts. But, it was observed in audit that the B.R.S. statement neither prepared nor furnished to audit. 4. RECONCILIATION PROCEDURES NOT OBSERVED:

A.P.M.A.M., prescribed reconciliation procedures with an objective to ensure that the accounting information is recorded at more than one place, there are no discrepancies between the different sets of records. The procedures include the following.

a) Bank reconciliation: aiming at reconciliation of bank, treasury balances with cash book balances.

b) Inter Unit reconciliation: intending to identify the disputed/un accepted inter unit transactions and to take appropriate action for rectification which is necessary in the process of consolidation of ULB at the head office level as the balances of inter unit account balances shall be nullified.

174

c) Reconciliation of Deposits: Aiming at reconciliation the balance of EMD/SD etc., and any other deposits received by the ULB. The reasons for differences shall be identify and rectification entries passed whenever required by the section concerned. d) Reconciliation of receivables and collections : The receivables and collections shall be reconciled on a quarterly basis or such other shorter time intervals, however the procedure for reconciling outstanding balances of receivables and collections of all kinds of receivables namely viz., property tax receivables, Water tax receivables etc., is the same. e) Reconciliation of Advances given: Advances given shall also reconciled on a quarterly basis including advances given to employees of ULB, sections of the ULB and contractors and suppliers. Further A.P.M.A.M. envisaged reconciliation of loans taken, reconciliation of payables, reconciliation of ledger balances etc., also. But during the scrutiny in audit it was observed that these procedures prescribed were not followed and no reconciliation statements were enclosed to the final accounts, in the absence of reconciliation of receivables and collections the balances shown as either receivable or collected could not be held to be correct. Urgent steps would need to be taken by the Executive Authority to cause preparation of the reconciliation statements as per the instructions of the A.P.M.A.M., 5. RECEIPT ENTRIES WERE BASED ON CHITTA :

It was observed in audit that the base document that was considered for recording receipt entries in the new system of accounting was Chitta. The endeavour of the CA who prepared annual accounts was to faithfully account for all the entries in the Chitta as receipt entries in the annual accounts. But, no effort was made to trace amounts collected by the collection staff and remained unremitted if any. 6. VOUCHERS NOT VERIFIED DURING DATA ENTRY :

It appears that at data entry level the original vouchers were not verified and as such the vouching appears to have been done based on the entries in the cash book leading to many misclassifications and incorrect totalling etc. 7. MANY ITEMS WERE BOOKED UNDER THE HEAD “OTHERS” FOR NOT KNOWING CORRECT CLASSIFICATION: It appears that while making data entry and creating vouchers many items were booked under the head “others” either due to lack of understanding at data entry level or because of the complexity involved in deciphering the correct classification of the expenditure as per the Chart of Accounts prescribed by the APMAM. 8. ADVANCE COLLECTION OF D&O TRADE FEES INCLUDED IN THE I&E STATEMENT: The convention in the ULBs with regard to the collections of D & O trade fees was to collect the same in advance for the subsequent year i.e., before February of an year. The collections made after February are to be made along with collection of belated

175

fees. The advance collection made shall be kept under deposit for this year and adjusted to General funds in the subsequent year. But during the course of verification of account, it was noticed that the said distinction was not observed and the collections made were not classified in to the year to which they pertain. As a result of which the entire amount collected is reflected as income in the Income and Expenditure statement for the year 2009-10 though the income actually pertains to the year 2010-11. The correctness of the Income and Expenditure statement to that extent suffered due to the above defect pointed out. 9. RECEIVABLES AND PAYABLES NOT ASCERTAINED PROPERLY:

APMAM mandates that the receivables in case of tax income shall be ascertained

for the last five years and in case of non tax income for the last three years. But the same was not adopted either in the FOBS or in the account rendered now to audit. If the receivables and payables are not assessed properly now there is every chance that the interest of the institution suffers at a later date. However the basis for the amounts arrived at as receivables and payables was also not made known to audit.

10. DEPOSITS AND ADVANCES OF YESTER YEARS NOT FINALISED: During verification of FOBS it was noticed that the amounts under advances and deposits were not ascertained with reference to the registers maintained for that purpose. It was also observed during verification of FOBS that only the deposits refunded during the financial year 2009-10 were taken as OB as on 01-04-2009 the deposits received during the year 2008-09. 11. IRREGULAR CALCULATION OF DEPRECIATION As per para 5.2.1 of A.P. Municipal Asset Valuation Methodology Manual Depreciation shall be provided at full rates for assets purchased/constructed before October 1st and at half rates if purchased/constructed on or after October 1st of an accounting year. Contrarily it was noticed during audit scrutiny that the above manual instruction was not followed and depreciation has been allowed irregularly. 12. CERTAIN TRANSACTIONS NOT CAPTURED: During verification of account in DEABAS it was noticed that certain transactions were not captured in the account. The details of receipts and expenditure entries that were omitted in the new account when compared with the manual records/registers maintained. Further with so many entries missing how the account tallied was also not known. 13. MIS-CLASSIFICATIONS:

Instances of misclassifications are many and some of the misclassifications may have material effect in reflecting the true and fair view of the accounts so prepared.

• The revenue expenditure of expenditure incurred towards CC charges paid towards street lighting were shown as capital expenditure on modern lighting on Main lanes and street lanes/by lanes and as a consequence revenue expenditure was shown to have met for asset creation. Further the calculation of depreciation

176

on the said expenditure might have been added in the calculation of depreciation allowed as the said expenditure was classified as capital expenditure incurred for asset creation.

• Statutory deductions like IT, VAT, Seigniorage Charges etc., were also misclassified. In some cases the IT deducted was booked to Seigniorage Charges account and as a result the nature of payables get distorted and there may be a chance in the coming years if the same are adopted un-rectified, of remitting wrong amounts to the respective heads. Further it was also noticed that even the expenditure of salaries/wages paid was also booked to the Seigniorage Charges account which constitutes material distortion of the classification of accounts which may result in excess remittance of the same at a later date.

14. MIS CLASSIFICTION OF REVENUE EXPENDITURE AS CAPITAL EXPENDITURE OR VICE VERSA : Audit noticed instances of classifying revenue expenditure as capital expenditure and vice versa. On more than one occasion expenditure incurred on revenue items was shown as capital expenditure and as a consequence revenue expenditure was shown to have met for asset creation. Further, the calculation of depreciation on the said expenditure might have been added in the calculation of depreciation allowed as the said expenditure was classified as capital expenditure incurred for asset creation. And if capital expenditure is shown as revenue expenditure the asset created would not be recognised in the assets register and no depreciation would be allowed on the said asset. It would give a wrong portrayal of the assets created and also renders the annual accounts incorrect. Hence, urgent steps would need to be taken to reverse the entries by passing suitable rectification entries. 15. DOUBLE CREDITS/DEBITS NEED TO BE RECTIFIED:

Audit scrutiny revealed that in some of the ledger accounts double credits/debits were allowed erroneously which need to be rectified by passing suitable rectification entries. 16. NON MAINTENANCE OF REGISTERS PRESCRIBED IN THE MANUAL:

The APMAM prescribed maintenance of the registers and forms. The formats of the books, registers and forms referred to in Table 4.1 of Chapter 4 need to be maintained. But, it was observed that all the registers and forms were not maintained contrary to the instructions contained in the manual. 17. FIXED ASSETS REGISTER NOT MAINTAINED: The A.P. Municipal Asset Valuation Methodology Manual provides for maintenance of fixed assets register for 11 categories of assets and formats prescribed in Annexure-6 and as per instructions the register has to be maintained updating the details of acquisition / construction / improvement of assets for each particular year. But it was noticed during audit that no such registers have been maintained under certification by the competent authority for the year 2009-10 duly incorporating the assets identified in FOBS/rectified FOBS.

177

Non maintenance of the important Asset register by the ULBS having significant and valuable assets impairs the asset management system and proper watch on the cost of the assets/improvement to assets would not be possible.

18. IMPROPER MAINTENANCE OF ACCOUNTING RECORDS:

Municipal Corporation, Guntur had switched over from single entry cash based system to modified Accrual Based Double Entry Financial Accounting System from 01-04-2009. Under this system Municipal Corporation, Guntur has also taken up the complete online computerization with connectivity to all accounting locations in Municipal Corporation, Guntur.

During scrutiny of accounting records, the following observations are made.

19. NON-MAINTENANCE OF CASH BOOKS According General Accounting procedures of A.P. Municipal Accounts Manual (APMAM), Cash Book shall be maintained as per format specified. However, the maintenance of Cash Book as per format specified in APMAM has been dispensed with on introduction online computerization system in Municipal Corporation, Guntur. In the absence of Cash Books, the transactions recorded in computerization system cannot be certified and transactions in the computerized system can easily be manipulated than the manual system. Since Cash Book is the book of original entry for recording transactions involving cash and/or banks, the Cash Book should invariably be maintained properly so that the fraudulent payments, misappropriation of funds, if any, could be detected immediately on such occurrence and more over, the cash books exhibits reliable information in regard to fund balances at every stage. Further, each transaction entered in the Cash Book must invariably be attested by the authorized officer and the Cash Book must be closed daily. Government had not relaxed the Financial code for any department in dispensing with the maintenance of cash books even on computerization of accounts. Moreover, the provisions in the APMAM also stipulated that the cash book must be maintained in the format prescribed therein and each transaction recorded therein should be attested by the competent authority. Thus, provision made in the APMAM should be kept in consideration while in preparation of accounts and the cash books must necessarily be maintained in the format prescribed in the APMAM and produced to audit. 20. NON-MAINTENANCE OF SEPARATE ACCOUNTS FOR THE GRANTS RECEIVED FOR SPECIFIC PURPOSE

Grants received by the ULB may be of a capital or revenue nature. A capital grant is usually utilized for capital expenditure i.e. creation of a fixed asset where as Revenue grant is generally utilized for meeting recurring expenditure, the benefits of which usually expire within the accounting year in which it is incurred.

Municipal Corporation, Guntur is receiving huge grants towards specific purposes such as Schemes of NSDP, SGSRY Funds, etc. As per accounting manual, separate Cash Books shall be maintained in respect of all such grants. Similarly, the details of the receipt of the grant shall be updated in the Grant Register. However, in any case, the separate accounts are not being maintained at all for the specific grants received under

178

various schemes. In the absence of such records, the audit could not verify the funds actually received by Municipal Corporation, Guntur under each scheme and the expenditure thereof, utilization of such grants on specific purpose, fund balance under each grant, etc. The Head of the departments, implementing the project / scheme sponsored by the grant are also unable to reconcile the expenditure incurred on the purpose, the balances available with the Municipal Corporation, Guntur etc. Similarly, grant Register are also not being maintained in Form prescribed. 21. FINANCIAL RATIO ANALYSIS

Financial Ratio Analysis is the indicators of performance of the ULB. From this analysis, the leakage of Revenue / Expenditure can be identified at a proper period. Financial Ratio analysis is a study of ratios between various items or group of items in the financial statements of the ULB. Financial Ratios, such as Tax Revenue to total income ratio, property and other taxes to total income ratio, cash surplus / deficit to Income ratio, etc, are to be kept into consideration before going for any investment or borrowing funds. However, such mechanism was not existed in Municipal Corporation, Guntur. Thereby, Municipal Corporation, Guntur had obtained huge amounts as a loan assistance without considering the actual requirement for raising of such loans and without considering the financial impact on such borrowings on repayment of loan.

The above observations are only illustrative but not exhaustive. Thus, the requisite records as mentioned in APMAM and as per orders issued by Government from time to time may please be maintained. 22. LACK OF FINANCIAL DISCIPLINE : As verified from the income and expenditure statement for the year 2009-10, the income of both Municipal General Fund and Capital Project Fund ran into deficit which shows that the ULB was spending more than the income for the year 2009-10. There is every need to exercise restraint on expenditure to limit the same well within the income for an year. 23. NOTES TO ACCOUNTS NOT ENCLOSED TO FINANCIAL STATEMENTS : The Notes to accounts comprising of statement of significant accounting principles followed by the ULB in respect of accounting for its transactions and its preparation and presentation of the financial statements, statement of contingent liabilities representing obligations relating to past transactions and claims against the ULBS which were contingent on the happening of a future uncertain events, subsidy report in accordance with the provisions of the Act and rules governing the ULBS and instructions of the Government in respect of certain services along with many other disclosures like details of honorarium paid to mayor/chair person, amount of refunds, remissions and writes of etc., were not enclosed with the financial statement and in the absence of the same the annual account prepared could not be analysed fully during the course of audit.

(Para No.2 (a) to (t) of AR of MC Guntur for 2009-10)

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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 orders from the competent authority.

A Consolidated Statement No.9 (1) is appended to the Report from which it could

be seen that 10 paras were raised in the category.

2(1) GVMC – INADMISSIBLE ITEMS OF EXPENDITURE INCURRED WITHOUT BUDGETARY PROVISION – NEEDS RATIFICATION

As verified from the statement of Receipts & Expenditure and Budget, it is

noticed that expenditure was incurred towards the following inadmissible items without Budgetary provision. Hence necessary action may be taken to ratify the expenditure, thus made, from the competent authority.

Budget Code

Expenditure incurred without budget provision

(Rs.) No.

Head of Account

ORDINARY EXPENDITURE- GENERAL 2300201 NMR & Part time 19.22

CITY ENGINEERING 2308020 Other General Operation & 54.03

CITY PLANNING 2202103 Computer Consumables 0.35

UCD PROJECT – EDUCATION 2108200 Establishment Expenses Ele. Edn 87.642108200 Establishment Expenses Sec. Edn 127.73

2208200 Other General Operation & Maintenance Expences Ele Edu 16.76

2208200 Other General Operation & Maintenance Expences Sec Edu 2.74

PARKS, LEASURE & CEMETRIES Vuda (flower show expenses 1.00 PUBLIC HEALTH

2203100 Other General Operation & Maintenance 65.72206001 Advertisement – Print Media 0.17

180

WATER SUPPLY 2205100 Other General Operations 12.92305016 Water Supply Usage & Maintenance 5.712305901 Office Equipment 0.442406001 Intrest on Bonds 168.02

DEPOSITS AND ADVANCE (Salaries, Wages and Bonus)

2102001 Leave Travel Concession 0.382102002 Medical Reimbursement 6.05

CAPITAL EXPENDITURE – GENERAL (Works under JNNURM Scheme)

41200102 Fly Over 1514.794701001 Civil Works 57.92

Total 2141.55


3. DIVERSION OF GRANTS

-NIL-

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

-NIL-

5. MIS-UTILIZATION 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 it 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.

A Consolidated Statement No.9 (1) is appended to the Report from which it could

be seen that 2 paras were raised in the category.

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6. NON UTILISATION OF EARMARKED FUNDS

Government issued instructions vide G.O. Ms. No.265 MA & UD Department

dated19.07.2004 to earmark funds of Municipal Corporations 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 : 7.5% For Women & Child Welfare : 5%

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 & Children respectively. The balance of 2/3

rd funds shall be utilized for the benefit of Scheduled

castes / Scheduled Tribes / Women & Children in the Municipal Corporation areas. Unspent balance if any out of the 2/3

rd funds at the end of the financial year shall be made

over to the respective corporations.

It was observed in audit that in many cases the funds to be earmarked as per the orders of Government have to be worked out and provided for in their respective Budgetary Estimates, But funds were neither made over to the respective corporations at the beginning of the year nor fully utilized for the benefit of these sections by these Committees in the State. The unspent balances at the end of the year were also not remitted to the respective corporations in many of the cases. Such inaction had defeated the very purpose of earmarking of funds for the welfare of these sections.

A Consolidated Statement No.9 (1) of Non-utilisation of Earmarked Funds is appended to the Report from which it could be seen that 7 objections were pointed out.

6(1) MC, GUNTUR - EARMARKED FUND – UTILIZATION OF MINIMUM 40% OF THE NET FUNDS AVAILABLE IN THE SLUM AREAS OF THE GUNTUR MUNICIPAL CORPORATION FOR PROVIDING WATER SUPPLY AND DRAINAGE – INSTRUCTIONS OF THE GOVERNMENT NOT COMPLIED WITH – NEEDS ACTION AGAINST THE DEFAULTERS

Orders were issued vide G.O.Ms.No.626, M.A. Department, dated 12-11-1986, for preparation of budget estimates by all the urban local bodies and for utilization of funds for various schemes.

In continuation of the above, government have ordered further vide G.O.Ms.No.265, M.A. U.D. (K2) Department, dated 19-7-2004 to channelise at least 40% of the net funds available with the Municipal Corporation for compulsory spending in the slum areas and while doing so, priority be given for provisions of water supply and sanitation, besides earmarking compulsory expenditure of 15% of all the budgeted expenditure for the welfare of Scheduled Castes (special component plant) and 7 ½% for

182

the welfare of Scheduled Tribes (Tribal Sub-Plan) in addition to 5% reservation of funds for welfare of Women & Children. It was clarified further, therein, that this compulsory spending in the slum areas at minimum of 40% of the net funds available would not clash with sectoral allotments made vide G.O.Ms.No.626 MA Department, dated 12-11-1986 and would be complementary, as this targeting of expenditure in the slum areas is only geospatial and the sectoral allotments can still be maintained for the purpose of expenditure in the slum areas.

As perused from the budget for the year 2009-10 (which was approved by the corporation on 26-2-2009) the total amount of receipts for the year 2009-10 was projected as Rs.302,83,89,300/-. The details of the amounts allocated for developmental works were not enclosed to the budget in the proforma prescribed Vide G.O.Ms.No.626, M.A., dated12-11-1986 along with separate statements showing the details of capital works and maintenance works duly indicating the details of those works executed for the benefit of targeted groups (i.e., S.C/S.T and Women & Children) were also not produced to audit so as to ensure in audit that the developmental works were executed for the benefit of the above mentioned targetted groups at the rates prescribed.

(Para No.5 of AR of MC, Guntur for 2009-10)


On verification of Revenue collections in Municipal Corporations, it is noticed that huge amounts were pending collection in various categories. No substantive steps were taken for collection of the said dues. 228 Paras involving an amount of Rs.19,651.66 Lakhs were raised as shown in Statement No.9(1). Some such cases are given below. 7(1)(a) GVMC - NON-COLLECTION OF TAXES – NEEDS COLLECTION - Rs.186,26,31,314/-

Taxes are levied by the Municipal Corporation duly making a resolution to that effect. The following taxes were kept in arrears by the GVMC. Non-collection of Taxes effects the financial position of the institution adversely and hampers the developmental activities in the municipal corporatoin area. A total amount of Rs.186,26,31,314/- pending collection under various taxes and non taxes as on 31.03.2010 callsforth immediate steps for collection.

Sl. No. Particulars Amount short

collected (Rs.) Para No.

1 Property Tax 665086000 6(98) 2 Advertisement Tax 29356672 6(99) 3 Vacant land Tax 980370600 6(100)4 Water Tax 136265328 6(102)5 Lease rents of shops 50712088 6(106)6 License fee short collected due to application of old

rates 529228 6(107)

7 License fee short collected due to underassessment 616318 6(109)8 Outstanding rent from employees 245080 6(114) Total 1862631314

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7(1)(b) GVMC - SHORT COLLECTION OF PENAL CHARGES ON CERTAIN BUILDING APPLICATIONS –LOSS- NEEDS RECOVERY: Rs.27,15,010/-

When construction of unauthorized buildings is regularized, penal charges have to

be paid by the owners of such buildings. But, calculation of such penal charges was done erroneously resulting in loss to the institution. Certain cases of such nature are given below.

i) B.P.S. Penal Charges with reference to land value – short calculation of penal charges for unauthorized construction of 3rd floor – Smt. B. Bharathi Rs.57,180/-

According to the instructions issued in G.O.Ms.No.112, MA & UD, Dated: 31.1.08 vide Annexure II (Table D) the penalization charges to be collected @ 60% with reference to market value of land Rs.7400/- per sft. as on 1.1.08,( slab of 5001-15000), but it was collected @ 50% with reference to market value.

ii) BPS- unauthorized construction of stilt+cellar+gf+ff-penalty not levied to the - stilt+cellar area and residential charges applied instead of apartmental rates – Varun Motors Pvt. Ltd – Rs.20,97,470/-

Varun Motors private limited applied for regularisation of the unauthorizedly

constructed building (Stilt+Cellar+GF+FF) under individual residential category. The GVMC authorities residential category only on Ground and First floor leaving the stilt and Cellar which floors are also unauthorized constructions, but regularized the entire building.

iii) BPS- usage changed –residential flat to commercial- penalization done

under residential category instead of commercial- short penalization – Smt. T. Vizialakshmi Rs.1,60,000/-

As per GO.Ms.No.112(MA&UD) dated 31.01.2008, when a residential

building’s usage is converted to commercial usage, double the penalisation charges, at the rate prescribed for commercial use have to be paid by the applicant on the total built up area which was converted in to commercial use. But, penalization was done under residential category.

iv) BPS-short assessment of penal amount as the building penalised

under deviation category instead of unauthorised constructed category and major lapses in penalisation as per file – Sri Ramineni Rajendra Naidu & family Rs.4,00,360/-

The building was constructed after demolishing the previously permitted building.

The individual applied for regularization of the building under deviation category instead of unauthorized category and it was regularized accordingly.

184


collected (Rs.) 1 Penal charges for unauthorized construction of 3rd floor

– Smt. B. Bharathi 57180

2 BPS – un authorized construction of stilt+cellar+gf+ff-penalty not levied to – stilt+cellar area and residential charges applied instead of appartmental rates – Varun Motors Ltd.

2097470

3 BPS – Usage changed – residential flat to commercial penalization done under residential category instead of commercial resulted short penalization – Smt. T. Vijaya Lakshmi

160000

4 BPS – short assessment of penal amount as the building penalized under deviation category instead of unauthoirsed constructed category and major lapses in penalization as per file Sri Ramineni Rajendra Naidu & family

400360

Total 2715010

7(1) (c) GVMC - SHORT COLLECTION OF CHARGES ON CERTAIN BUILDING APPLICATIONS –LOSS- NEEDS RECOVERY Rs.8,48,231/-

Charges are to be collected by GVMC for the services rendered under Sec- 622

(II) of HMC Act 1955 read with Sec. 7 of VMC Act 1979 and as per resolution number 12-1 of 1981 of VMC. During the course of audit of the said corporation for the year 2009-10, as per the provisions laid down in the District Gazette of Visakhapatnam district issued vide issue No.38; dt.26.2.2010, the Corporation has to collect the charges as follows.

i) Debris Charges:

Buildings upto G+2: i) upto 300 sq.mts @ Rs.1000/- ii) above 300sq.mts @ Rs.1500/- Apartments from G+3: i) upto 300 sq.mts @ Rs.2500/- ii) above 17.50 mts @ Rs.3000/-

ii) VUDA Charges: @ 50/- per 1 sq.mt on Built up area. \

@40/- per 1 sq.mt on Open Area.

iii) Betterment Charges: @Rs.150/-per Sq.Mt on total site area. iv) Building License/Permit fee: Residential Buildings up to G+3: a) Built up area upto 100 sq.mts:@Rs.10/- per 1 sq.mt. but not less than Rs.500/- b) Built up area above 100 sq.mts for G+2:@Rs.35/- per 1 sq.mt but not less than

Rs.5000/- c) Buildings from G+3 @Rs.40/- per 1 sq.mt. but not less than Rs.5000/-

185

The following charges were found to be short collected due to underassessment, wrong application of rules etc.


collected (Rs.) Para No.

1 Debris Charges 55420 6(3) 2 VUDA Charges 90155 6(4) 3 Betterment Charges 161020 6(7) 4 Building License / permit fee 541636 6(9) Total 848231

7(2) GUNTUR MUNICIPAL CORPORATION - INTEGRATED TAXES AND TAP CHARGES (METERED) PENDING COLLECTION AS PER COMPUTER GENERATED D.C.Bs. – NEEDS COLLECTION EARLY Rs.24,46,70,426/-

As per the computer generated Demand, Collection and Balance statement produced to audit, an amount of Rs.24,46,70,426 as detailed below is pending collection under Taxes integrated taxes and tap charges (metered) as on 31-3-2010. Action may be taken for collection of the same early.

Amount pending collection as on 31-3-2010 Nature of Tax

Arrear (Rs.)

Current (Rs.)

Total (Rs.)

Property tax 126979695 63346971 190326666Drainage tax 1575320 1178468 2753788PS Charges 7277750 3529420 10807170Tap charges (domestic) 9210740 14299305 23510045Tap charges (metered) 11506304 5766453 17272757

Total 156549809 88120617 244670426

(Para No.11 of AR of MC, Guntur for 2009-10) 7(3) KAKINADA MUNICIPAL CORPORATION - HUGE ARREARS OF TAXES/NON TAXES PENDING - COLLECTIONS MADE MANUALLY EVEN AFTER THE CONSTRUCTION OF E-SEVA CENTRES – Rs.21,62,46,884/-

In terms of AP Municipalities (Collection of Taxes) Rules 1965 read with corresponding provisions of HMC Rules, Municipal Corporations are empowered to collect taxes/ non taxes such as property tax, advt. 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 Corporation area. A scrutiny of the demand collection balance statement appended to the annual account at the end of the year 2009-10 revealed pendency of huge arrears as detailed below.

Sl. No. Natures of taxes/Non taxes

As per DCB amount pending collection up to the end of

31.3.10 (Rs. & Paise) 1 Property Tax 12,90,28,135.092 Encroachment Fee 27,73,900.00

186

3 Water Charges 7,05,98,011.004 Market Fee 42,45,295.005 Shops rents 14,64,720.006 Fishery Rents 23,000.007 Ferry 32,500.008 D&O trades 20,23,388.009 Advertisement Tax 60,57,935.00 Total 21,62,46,884-09

Even though, five E-seva centres were constructed with APUSP grants of Rs.

50.00 lakhs in the year 2003-2004 & 2004-05, the practice of manual collection was still continued which needs to be avoided. The collection of House Tax was not optimum though it was collected through both E-seva and manually. Further the action taken for collection of arrears by deploying spl. Squad of bill collectors for the assessments which were not under litigation & not covered by suits was also not explained. Effective steps would need to be taken to improve the tax collection.

(Para No.4 of AR of MC, Kakinada for 2009-10)

7(4) NELLORE MUNICIPAL CORPORATION - TAXES AND FEES- HUGE BALANCES PENDING REALISATION – Rs.17,56,71,051/-.

As seen from the Demand, Collection and Balance statement for the year 2009-10, a sum of Rs.17,56,71,042/- as detailed below is pending realization by the Municipal Corporation both under taxes and non taxes. Unless all the arrears realized in time, by taking coercive steps, the taxes will become barred by limitation of time and there will be no chance to realize the arrears legally. Effective steps would need to be taken to collect all the arrears due under taxes and non taxes.

Sl. No.

Nature of Tax Amount pending realization(Rs.)

1 Property Tax 1375917272 Advertisement Tax 447153 Drainage Tax 30189994 Tap Charges 268247785 Shop Room rents 8190832

Total 17,56,71,051

(Para No.7 (IV) of AR of MC, Nellore for 2009-10) 7(5) GUNTUR MUNICIPAL CORPORATION - MUNICIPAL MARKETS AND SHOPPING COMPLEXES – HEAVY ARREARS OF RENTS PENDING REALISATION – NEEDS REALISATION - Rs.2,86,14,253/-

As verified from the Demand, Collection and Balance statements of Rents for the year 2009-10, it was noticed that an amount of Rs. 2,86,14,253/- was still to be realized from markets and shopping complexes towards as on 31-3-2010 as detailed below. Early action would need to be taken to collect the dues along with penal interest.

187

Sl. No. Details of properties Arrears up to 2008-09

(Rs.) Current 2009-10

(Rs.) Total (Rs.)

1 Markets 2879054 10190723 130697772 Complexes 4626368 10918108 15544476

Total 7505422 21108831 28614253

(Para No.12 of AR of MC, Guntur for 2009-10) 7(6) SHORT COLLECTION OF CERTAIN TYPES OF FEE AND TAX IN MC KAKINADA & MC KURNOOL – Rs. 21,44,935/-

During the course of audit on the accounts of Kakinada and Kurnool Municipal

Corporations for the year 2009-10, it was noticed that certain types of fee were short collected as shown below.

Short collected

Amount (Rs.)

Sl. No.

Particulars

Kakinada Kurnool

Para No.

1. Building License fee 77,963 0 8 2. D&O License fee 59,550 341800 12 / 2&33. License fee for shipping agencies 46,000 0 13 4. Trade License fee for Function Halls 48,000 0 16 5 -- 0 1580272 4 Total 2,22,863 19,22,072

7(7) ANANTHAPUR MUNICIPAL CORPORATION - BETTERMENT CHARGES AND SHOP RENTS NOT COLLECTED – NEEDS-RECOVERY – Rs.16,25,776/- During the audit of Ananthapur Municipal Corporation for the year 2009-10, it was noticed that Betterment Charges were not collected from the applicants for construction of building. The rents of shops were also not collected in full as shown below.

Sl. No.

Particulars Amount to be collected

(Rs.)

Para No.

1. Betterment Charges 3,52,030 6(6) 2. Outstanding rent in respect of shops 12,73,746 8(18) Total 16,25,776

7(8) GHMC - VARIOUS TAXES AND FEE COLLECTED THROUGH CHEQUES - SOME OF THE CHEQUES WERE BOUNCED - LOSS CAUSED IF ANY - NEEDS RECOVERY RS.15,44,813/- During the course of audit of receipt books and other connected records of property tax Building permission fee, E.M.D’s ADVT Tax Licence Fee, collection were made through cheques for the year 2009-10, the list of bounced cheques has been produced to audit during the year under report.

188

But, it is not explained to audit as to the Tax Payers balances with their account regenerated as arrears or not in the absence of the Bank realization. As the cheques were not presented on time, there is consequential loss of interest as a result of not crediting them to the account nor getting them revalidated. Action may be initiated against the person or persons responsible.

Further the Tax demand was deleted in the subsequent schedule as and when the cheque was received by the Bill Collector, but not after the realization of cheque amount in the account of GHMC. Action may be initiated to serve the fresh demand notices to the defaulters.

(Para No. 14 of AR of GHMC (Circle No.2) Kapra for 2009-10)

7(9) GUNTUR MUNICIPAL CORPORATION – TOWN PLANNING SECTION – TARIFF OF FEES AND CHARGES SHORTLY LEVIED – NEEDS RECOVERY - Rs.1,52,032/-

The charges under building constructions during the year 2009-10 have been levied as per Rc.No.1159/05/G1, dt.31-8-2006, of Commissioner in Guntur Municipal Corporation. But, in the following cases charges were short levied by the town planning authorities. In several cases relating to the construction of individual buildings and Apartments the areas covered under stilt floor and common area (i.e balcony, corridor, staircase and lift etc.) were not counted towards total plinth area which was irregular and contrary to the instructions laid down in the note (e) to rule 5.2 of municipal corporation building bye-laws 1981.

Hence, the short levied amount of Rs. 1,52,032/- may be recovered from the concerned persons and remitted to Guntur Municipal Corporation funds immediately and fact intimated to audit at an early date besides producing all the building applications to audit for verification.

Statement showing the details of Building Licence fees, UDA charges, Additional Building Licence fees, Material encroachment charges and Tree guard charges etc.,

Short Collected by the Municipal Corporation, Guntur during the year 2009-10.

Sl. No.

B.A. No. Name & Address of the

applicant

Total site area

Plinth area as per the

approved plan sqm

Total plinth area including stilt /common/

balcony etc.

Item of collection

To be collected

Actually collected

Short collected

1 B.A. No. 971/09/G2, dated 05.01.2010 B.S.R.K. Prasad S/o Hanumantha Rao D.No. 5-89-5 3rd line, Lakshmipuram, Guntur Stilt + Ground + 3 Floors 196.24 x 5 : 981.2

344.90 sqm

784.96 sqm

981.2 sqm

BLF 981.2 x 50 UDA charges 981.2 x 50 : 49060 148.66 x 40 : 5946 Debris charges981.2 x 40 ABLF 981.2 x 12

49060

55006

39248

11774

39500

45210

31600

9420

9560

9796

7648

2354

189

2 B.A. No. 790/2009/G2, dated 14.10.2009 Smt. V. Sarojini W/o Chennakesava Rao Amaravathi Road, Beside Alla Hospital Guntur (commercial) Cellar + Ground + First Floor 126.29 x 3 : 378.87

270.90 sqm

252.58 sqm

378.87 sqm


22732

26175

15155

4546

15600

22430

10200

3036

7132

3745

4955

1510

3 B.A. No. 830/2009/G2, dated 10.09.2009 Sri S. Jai Kishore S/o Lakshmi Narayana D.No. 4-16-248 Opp. State Bank of India Amaravathi Road, Guntur (commercial) Cellar + Ground + First Floor 107.74 x 3 : 323.22

224.61 sqm

215.48 sqm

323.22 sqm


19393

22005

12929

3879

13200

18160

8640

2592

6193

3845

4289

1287

4 B.A. No. 1109/2009/G2, dated 02.11.2009 1.K.Rajamma w/o venkateswarlu 2. Ch. Bhagyamma w/o venkateswarlu D.No. 7-11-195,Kakumanuvari thota, 4th line, Guntur. Stilt + GF+FF 177.70 x3. = 533.1

257.33 sqm

355.4 sqm

533.1

BLF 533.1x20 UDA charges 533.1 x 50 : 26655 79.63 x 40 : 3186 Debris charges 533.1x40 ABLF 533.1x12

10662

29841

21324

6397

7200

21000

14240

4272

3462

8841

7084

21255 B.No. 1330/2009/G2

dt. M/s Srinivasa Agro Products N.Srinivasa Rao, D.No. 5-42-2, 6/9th Line, Brodiepet, Guntur. Stilt + GF+ FF 126.61x3 = 379.83

234.54 sqm

253.22 379.83 BLF 379.83x20 UDA charges 379.83 x 50 : 18992 107.93 x 40 : 4317 Debris charges 379.83x40 ABLF

7597

23309

5600

17050

1997

6259

190

379.83x12 15193

4558

11080

3324

4513

12346 B.No. 57/2010/G2

dt. 5.3.2010 K. Sreedhar S/o Lakshmiahai, D.No. 5-82-7 4th lane, Pandari puram Guntur. Stilt + GF+ FF+SF 163.86x4 = 655.44

278.27 sqm

491.58 655.44 BLF 655.44x20 UDA charges 655.44 x 50 : 32772 114.41 x 40 : 4576 Debris charges 655.44x40 ABLF 655.44x12

13109

37348

26218

7865

10000

29200

20000

5904

3109

8148

6218

19617 B.No. 857/2009/G2

dt. 5.1.2010 Ch. V. Koteswara Rao, S/o Rama Rao Near D.No. 7-6-846/172 9th lane Rajivgandhi nagar, Reddy palem road Guntur. Stilt + GF+ FF+SF 132.25x4 = 529

230.39 sqm

396.75 529 BLF 529x20 UDA charges 529 x 50 : 26450 98.14 x 40 : 3926 Debris charges 529x40 ABLF 529x12

10580

30376

21160

6348

8000

23960

15880

4800

2580

6416

5280

15488 B.No. 585/2009/G2

dt. 24.8.09 K. Hanu mantha Rao & K. Adi Lakshmamma D.No. 4-1-5 Ist Lane Ramannapet, Guntur. Stilt + GF+ FF 159.31x3 = 477.93

230.93 sqm

318.62 477.93 BLF 477.93x20 UDA charges 477.93 x 50 : 23897 71.62 x 40 : 2865 Debris charges 477.93x40 ABLF 477.93x12

9559

26762

19117

5735

6400

18830

12760

3840

3159

7932

6357

1895 Total 152032


191

7(10) GHMC, Kharithabad - BETTERMENT CHARGES NOT COLLECTED Rs.76,312/- - NEEDS RECOVERY During the course of audit on verification of the connected records of Sri. I. Srinivas, plot No.19, Nandagiri Co-Operative Society, Nandagiri Hills, J.Hills Hyd., it was noticed that the betterment and External betterment Charges for Sub Division which comes to Rs. 76312/- was not collected from the individual. The donor - Sri. I. Srinagesh has gifted a piece of land (i.e 401.64 Sq.Mts) in favour of Sri. I. Srinivas, S/o, I.Narasimha Rao.According to Rule, if the plot was divided, betterment and external betterment charges shall be collected from the individuals. But the same was not collected by the town planning authorities. Therefore betterment and External betterment Charges for Sub Division of the plot to be collected are as follows.

Sl. No. Description Area

details(Sq.Mts) Amount

(Rs.) 1. Betterment and External betterment

Charges for Sub Division (Plot Area) at Rs.175/- per Sq.Mts

401.64 x175 70287

2. Sub-divisional charges at Rs.15/-per Sq.Mts. of Rs. 5000/- minimum.

15 x401.64 6025

Total: 76312

Immediate action would need to be taken to recover an amount Rs.7,6312/- from the person or persons responsible and remitted to concerned head under intimation to audit.

(Para No.13 of Audit Report of GHMC, (Circle No.10) Khairthabad for 2009-10)


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. 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.9(2) showing the audit objections on Advances

Pending is appended to the Report from which it could be seen that an amount of Rs.217.98 Lakhs was pending adjustments pointed out in the 18 audit paras.

192

8(1) MC, GUNTUR - ADVANCES NOT ADJUSTED – NEEDS RECOVERY: Rs.1,48,86,174/-

As verified from the advances recoverable register, it was noticed that an amount of Rs.1,48,86,174/- was still pending adjustment for the years from 1999-2000 to 2009-10as detailed below at the close of audit. Advance taken for specific purpose should be adjusted soon after the purpose is over alongwith remitted challans of unspent balances if any. Non adjustment of tamtamounts temporary misappropriation of fund. Early action would need to be taken for the adjustment/recovery of the pending advances.

Year Amount of advances pending adjustment (Rs.)

99-2000 75,0002000-01 2,72,3002001-02 14,40,2902002-03 13,21,1002003-04 4,42,8182004-05 5,15,0002005-06 5,58,0002006-07 9,24,2002007-08 5,32,4662008-09 72,41,2232009-10 15,63,777

Total 1,48,86,174


8(2) MC, KAKINADA - ADVANCES DRAWN - NOT ADJUSTED SO FAR - Rs.15,00,000/-

As verified from the railway pipe line cash book, it was noticed that an amount of Rs.15,00,000/- was drawn and paid to execute the work regarding water supply from post Railway Station to M/s Andhra Plastics vide Vr. No. 1/10.6.2009 as an advance. But the amount was not adjusted till the end of 31.3.2011. If any loss sustained due to non adjustment would need to be recovered from the person or persons responsible.


8(3) MC, ANANTAPUR - ADVANCE DRAWN TOWARDS PURCHASE OF GL PIPES, EXECUTION OF WORKS ETC., NOT ADJUSTED Rs.4,32,000/-

During the course of audit, it was noticed that an amount of Rs.4,32,000/- was drawn and paid to AE & others Municipal Officers as advance for purchase of Pipes and for execution of certain works as detailed in the below table, which were not adjusted within the time limit mentioned in the article 99 of APFC.

Immediate action would need to be taken to adjust the above advance

amount at an early date.

193

Sl. No. Vr.No. & Date Name of the work Amount

(Rs) 1 2/ -04-09 Advance to Gl Pipes 900002 41/29-10-09 Advance to Tankers in flood effected

Area at Kurnool 50000

3 53/17-11-09 Providing RCC Tank 500004 59/26-12-09 Advance to Drilling of bore wells 700005 75/ -02-10 Engaging of water tanker 200006 88/ -03-10 Advance to Laying of Gl Pipeline 920007 331/ -09-09 Advance towards desilinating of Drains 60000 Total 432000

(Para No.7 (1) of AR of MC, Anantapur for 2009-10)

8(4) GHMC KAPRA CIRCLE - ADVANCES PAID TO THE EMPLOYEES FOR VARIOUS PURPOSES – NOT ADJUSTED – NEEDS ADJUSTMENT Rs.71,000/-

During the year under report an amount of Rs.71000/- was drawn and paid to the staff towards advance for various purposes as detailed below. The adjustment vouchers for the advances have not been furnished to audit.

As per Art.99 of Financial code-I the advances paid should be adjusted as soon as

possible. But in the following cases the advances drwan were not adjusted till the closure of the Audit.

Sl. No. Vr.No./Date Cheque

No/Date Advance details Amount (Rs.)

1 76484/ 29.12.08 --

C.P.Nagesh, Sr. Asst. Dispatch the intimation letters under LRS Postal stamps from the post office sainikpuri, vide Proc.No.A1/1994/KC—1/EZ/2007/dt.5.12.2008 of the Zonal Commissioner, EZ

36000

2 38416/ 5.9.09 ---

Smt.N.Nirupama, TPRO Towards advance to under Job Mela on 14.9.09 at kapra

15000

3 56751/ 6.11.09 --

Sri.G.Krishnaiiah Towards imprest advance for distribution for returning officers of 1 to 4 @5000-00 each

20000

Total 71000-00

(Para No.6 of AR of GHMC (Circle No.2) Kapra for 2009-10)

194


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 in the relevant Audit Reports.

A Consolidated Statement No.9(2) showing the audit objections on Violatioin of

Rules is appended to the Report from which it could be seen that an amount of Rs.915.50 lakhs was pointed out in 291 Audit Paras.

Some of such cases are mentioned hereunder.

9(1) MC KAKINADA - WORKS – PROCEDURAL LAPSES – IMPROVEMENTS AN URGENT MAINTENANCE TO LALBHAHADUR N AGAR MAIN ROAD PITHAPURAM ROAD TOWARDS EVENT UP TO MES ROAD IN 47TH DIVISION – RS.10,05,065/- Estimate Rs.24,50,000/- C.R.No.Note order of the commissioner on 9-4-2008 C.C.II final Bill, Contractor: Sri Bhavani constructions

As per Vr.No.362/7/09 the work improvements and urgent maintenance to Lalbhahadur Nagar Main Road Pithapuram road towards MES road in 47th division was estimated for an amount of Rs.24.50,000-00 and the same was sanctioned by the commissioner allotted on nomination basis on 9-4-08. According to the Municipal Corporation Act, commissioner is not the competant authority to sanction the above work which is estimated 24.50 lakhs, as he is competent to sanction up to Rs 10 lakhs only and beyond that it should be approved by standing council of Municipal Corporation. But in the present instance, the sanction itself is irregular and the execution of such huge work on nomination basis is highly irregular and as such the entire amount spent on such work is held under objection.


9(2) GHMC-L.B.NAGAR-CIRCLE-III - BUILDING PERMISSIONS– BUILDING PERMISSION FEE NOT WORKED OUT AS PER RATES FIXED FROM TIME TO TIME – LESS COLLECTED – LOSS TO THE GHMC – IRREGULAR – NEEDS RECOVERY Rs.6,59,947/-. On verification of some Building Permission files for the year 2009-10, it is observed that the Building Permission fee was not worked out at the specified rates as fixed by GHMC from time to time. The Building Permission fee has to be collected at the following rates.

1. 1 to 200 Sq. M. @ Rs.10/- per Metre 2. 200 to 500 Sq.Mtrs @ Rs.50/- Per Metre 3. 500 to 750 Sq.Mtrs @ Rs.70/- per Metre 4. Above 750 Sq. M. @ Rs.80/- Per Metre

195

But in most of the cases exceeding 200 Sq. M. constructions, the Building Permission fee collected @ 10/- instead of Rs.50/- Per Sq.M., due to which the Building Permission fee less worked out /arrived and collected accordingly causing heavy loss to GHMC. (The list of less worked out applications are furnished in the Annexure enclosed to the Auidt Report.

Therefore immediate action would need to be taken to collect the short collected

amount of Rs.6,59,947/- from the concerned or from the person(s) responsible and credited to GHMC under intimation to audit.

(Para No.8 of AR of GHMC, L.B. Nagar (Circle No.III for 2009-10)

9(3) MC KURNOOL - CELL PHONE CHARGES – CELL PHONE CHARGES PAID TO CERTAIN INELIGIBLE STAFF MEMBERS OF MUNICIPAL CORPORATION, KURNOOL – NOT ADMISSIBLE - Rs.3,85,924/- An amount of Rs.3,85,924/- was paid to M/s Bharathi Cellular Limited, Hyderabad towards cell phone charges during the year under report. As verified from General Fund cash book, Petty cash book, connected vouchers, and sub-vouchers it was noticed that, an amount of Rs.3,85,924/- was paid to M/s Bharathi cellular limited, Hyderabad, towards cell phone charges incurred by certain staff members and contract employees of Municipal Corporation, Kurnool. As the said staff members were not eligible for providing mobile communication facility, the expenditure incurred for the above purpose was irregular. According to Circular No.371,IT&C/2004 IT&C Dept, dt.12.02.2004 and as per G.O.Rt.No.234 IT & C Dept, dt.25.07.2009 and circulars, G.Os issued from time to time in respect of provision of mobile communication facility for state and local Government officials, the facility should be provided to Gazetted officers cadre only. Against the above circulars and G.Os mobile communication facility provided to other than Gazetted Offers and contract employees is held under objection. The Executive authority should take necessary steps to recover the above said inadmissible amount from the person or persons responsible.

(Para No.65 of AR of MC, Kurnool for 2009-10)

9 (4) MC, NELLORE - MEDICAL REIMBURSEMENT – MEDICAL REIMBURSEMENT PAID TO SRI SD. ANWAR BASHA, Retd., H.P. GR-I EVENTHOUGH THE BENEFIT NOT EXTENDED TO THE MUNICIPAL TEACHERS - IRREGULAR – NEEDS RECOVERY Rs. 1,26,239/-.

During the course of audit it was noticed that an amount of Rs. 126239-00 was drawn on voucher No.13 dated: 03-02-2009 and voucher No. 258 Dated: 03-02-2009 and paid to sri Sd. Anwar Basha, Rtd, H.P. Gr-I towards medical Reimbursement.

In U.O. Note 19415/PS-1/2008 Dated:11-11-2008 Ed SE.PS.I Govt have called for remarks from Commissioner and Director of Municipal Administration, A.P. Hyderabad regarding extension of benefit of Medical Reimbursement to the Teachers who are working in Municipalities. The same was informed to the Commissioner, Municipal Corporation, Nellore through Requisition No. 2/2011-12 Dated: 20.05.2011.

196

The Commissioner had not furnished any relevant orders for extension of Medical Reimbursement to the teachers working in Municipal Corporations. Therefore, the amount paid to the individual amounting to Rs.1,26,239/- is held under objection. Hence the amount would need to be recovered from the individual and made good to the Corporation funds.

(Para No.9 (XIV) of AR of MC, Nellore for 2009-10)

9(5) GVMC - MDR- LEASES- CERTAIN ASSETS NOT LEASED OUT FOR THE LAST 3 YEARS –LOSS - NEEDS ACTION: As verified from the Miscellaneous Demand Register and D.C.B of markets, shops and other leased assets owned by the Corporation for the year 2009-10, it is noticed that the following assets were not leased out and income realized for the last 3 years:

Sl.No. Name of the Asset Extent Remarks 1 Fishery Tanks at Kommadi(11acres) 11 acres 2 Fishery Tanks at Nagarapalem 3 acres 3 Fishery Tanks at Bottavanipalem 3 acres

4 Mango garden and Palm trees at Mudasarlova Park -

Not leased out for the previous 3

years

As per the existing rules, notification for the leases/open auction 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. The lease amounts have to be recovered from lessees as per the agreement conditions.

But, the above assets were not leased out and no amount was realized for the last 3 years. The Executive Authority has recorded their remarks that bidders were not participated in auction. Non -leasing of assets causes loss to the Corporation funds and hampers the development.Hence, action would need to be taken to conduct the open auction even at the minimum rates to avoid the cumulative loss. The loss caused if any would need to be made good from the person or persons responsible.

(Para No.7 (21) of AR of GVMC for 2009-10) 9(6) GVMC - FIRE CESS – FIRE CESS @ 1% ON PROPERTY TAX NOT LEVIED- IRREGULAR: During the Course of audit for the year 2009-10, as verified from the Demand Registers and system generated scrolls of Property Tax, it is noticed that huge amount was collected towards property tax. But the fire cess @ 1% on Property tax was not levied and collected.

As per the instructions of “the High Level Multi Disciplinary committee-2007” the Fire Cess has to be collected @ 1% on collection of Property Tax to take precautionary measures against fire accidents.

In addition to collection of fire cess, the following instructions were issued:

Every building which is exceeding 500 Sq.mts plinth area or 6 mts height should be accorded permission from the Fire Department.

197

Every Municipality has to conduct survey to identify the Buildings without having permission from Fire Dept.

The Municipality has to issue 2 notices within 60 days to rectify the defect for defective constructions.

Action has to be initiated against the defaulters if they didn’t rectify the defect etc.,

, But, the fire cess was not collected and implementation to the instructions theron

is not forth coming to audit. Hence, action would need to be taken to collect the Firecess @1% of property tax and remitted to head of account concerned.

, (Para No.7 (39) of AR of GVMC (All Zones) for 2009-10)

9 (7) MC GUNTUR - ACCRUAL BASED DOUBLE ENTRY BOOK KEEPING SYSTEM NOT ADOPTED In G.O.Ms.No.233, M.A., Dated 22-5-2002, Government introduced accrual based accounting system in Urban Local Bodies with immediate effect. But, as seen from the records produced to audit, it was clear that the records relating to Municipal Corporation, Guntur were not maintained in ‘Accrual based double entry book keeping system’.

Though, Annual Receipts and Charges statement for 2009-10 was prepared by giving Codes, Cash books and other records were not maintained in ‘Accrual based double entry book keeping system’. Immediate action may be taken to adopt ‘Accrual based double entry book keeping system’ as per the Government Orders.


9(8) MC GUNTUR - ADVERTISEMENT TAX – ADVERTISEMENT TAX ON CABLE T.V. OPERATORS – DEMAND NOT ARRIVED – LOSS OF REVENUE TO THE MUNICIPALITY: As per G.O.Ms.No.266 M.A., Department, dated 5-5-2000, Advertisement tax has to be levied @ 10% of the fees collected by cable T.V. operators from the persons for which Advertisements made in the cable T.V. The corporation authorities have to obtain monthly statements from the cable T.V. operators regarding the amount of fees collected by the operators for broadcasting advertisements in their cable T.V., and advertisement tax has to be fixed at 10% on that amount.

But, during the year 2009-10, the corporation authorities had not followed the above procedure and demand not arrived at under the head of advertisement tax on cable T.V. operations resulting in loss of revenue.

Therefore, action would need to be taken to fix the demand as per rules and collect the same and loss, if any, sustained would need to be made good from the person or persons responsible and credited to General funds.


198

10.NON-REMITTANCE OF THE DEDUCTIONS / RECOVERIES FROM THE VOUCHERS / PAY BILLS / CONTINGENT BILLS

It is noticed during 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 the work bills / pay bills that are to be

remitted to Government account are hereunder. Work Blls Pay Bills 1.Income Tax 1.Profession Tax 2.VAT/TOT 2.G.P.F. (Government Employees) 3.Seigniorage Fees 3.G.I.S Premium.

4.Contribution to Pension Scheme 5.Sainik Welfare fund

These defects noticed were pointed out in the respective Audit Reports. Some of

them are as under.

A Consolidated Statement No.9(2) showing the audit 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.1681.24 lakhs was pointed out in 31 Audit Paras 10(1) LIBRARY CESS NOT REMITTED TO ZILLA GRANDHALAYA SAMSTHA FUNDS – Rs.10,01,98,824/-

As per section 20(1) of the A.P. Public Libraries Act, 1960, every Zilla Grandhalaya Samstha shall levy in its area Library Cess in the form of surcharge on the Property Tax levied in such area under the relevant laws providing for the levy of such property tax, at the rate of eight paise for every rupee in the property tax so levied. As per section 20(2) of the said Act, the cess levied under sub section (1) shall be collected by the respective Municipal Corporation having jurisdiction.

During the audit for the year 2009-10, it was noticed that Library Cess as envisaged in the AP Public Libraries Act, is not being remitted to the Zilla Grandhalaya Samsthas concerned. Some such cases are given below. Early action may be taken for the remittance of the amounts to the Zilla Grandhalaya Samsthas concerned.

Sl. No. Name of the Municipal Corporat ion Library Cess to be

remitted to ZGS (Rs.) 1. GVMC 462637112. KAKINADA 64040003. GUNTUR 192847914. KURNOOL 26509645. ANANTHAPUR 98630286 . GHMC 15732330 Total 100198824

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10(2) GVMC - STATUAURY RECOVERIES – RECOVERIES FROM WORK BILLS NOT REMITTED – NEEDS REMITTANCE RS. 3,47,10,894/-

During the year 2009-10 an amount of Rs.18,99,77,158/- was recovered from the work bills towards statutory recoveries as detailed here under.

Head Amount Recovered(Rs.)

Amount remitted (Rs.)

Balance (Rs.)

VAT 14,56,11,431 11,45,81,873 3,10,29,558NAC 41,14,809 38,49,359 2,65,450SC 3,32,16,248 3,00,01,404 32,14,844CM Relief 70,34,670 68,33,628 2,01,042

Total 18,99,77,158 15,52,66,264 3,47,10,894 The Statutory recoveries made from work bills should invariably be remitted to

the head of the accounts concerned immediately. Action would need to be taken in this regard to remit Rs.3,47,10,894/- to the Department concerned.

(Para No.8 (2) of AR of GVMC (Main Office) for 2009-10)

10(3) MC GUNTUR - DEDUCTION MADE FROM WORK BILLS – NOT REMITTED TO HEADS OF ACCOUNT CONCERNED - Rs.64,30,161/-

As per the statement certified from the Additional Commissioner, Municipal Corporation, Guntur, the following recoveries were made from work bills during 2009-10. But, the same were not remitted to the heads of account concerned as on the date of close of audit. Action would need to be taken to remit to the amounts to respective heads of account early and the remittance challans produced to audit.

S.

No. Nature of deduction

Amount deducted but not remitted during

2009-10 Rs.

Amount remitted during 2009-10

Rs.

Balance to be remitted as on the date of audit

Rs,

1 Seigniorage 5411669 - 54116692 N. A. C. 1018492 - 1018492 Total 6430161 - 6430161


10(4) MC NELLORE - SHORT RECOVERY OF INCOME TAX- LOSS TO GOVT., -NEEDS RECOVERY. Rs.5,72,330/-

During the year under audit on verification of cash Book, it was observed that 1% of income Tax was collected from the work/firm bills. As per section 194 C of Income Tax Act, 1961, any person responsible for paying any sum to any resident for carrying out any work in pursuance of a contract between the contractor and (a) The Central Govt. or any state Govt or (b) Any Local Authority, shall at the time of Payment, deduct an amount towards Income Tax one percent in case Advertisement and in any other case two percent. As against the Government Rules the Municipal Corporation, Nellore has

200

deducted Income Tax at the time of Payment made at 1% instead of deducting 2.24% (Income Tax 2% surcharge on Income Tax 0.12%) which is irregular. The same was informed to the Commissioner, Municipal Corporation Nellore through requisition No.30/2011-12 Dated 12-07-2011 for rectification. The Commissioner had not furnished any reply in this regard. Hence the same may be recovered and remitted to the concerned Head of Account.

(Para No.10 (II) of AR of MC, Nellore for 2009-10)

11. NON-PRODUCTION OF RECORDS

The Urban Local Bodies provide certain basic civic infrastructure and services like Road, Drainage, 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 surprising 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

201

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 record, 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.9(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. 9018.73 was pointed out in 400 Audit Paras

A few of the paras raised in the ARs for the year 2009-10 are as shown below.

11(1) MC ANANTAPUR, KURNOOL, GUNTUR & NELLORE - VOUCHERS NOT PRODUCED - Rs.9,27,72,058/- During the course of audit of the following Municipal Corporations for the year 2009-10, it is noticed that paid vouchers for the amounts mentioned against the Municipal Corporations concerned were not produced to audit for verification. In the absence of the paid vouchers, the correctness of the expenditure incurred cannot be certified in audit.

Sl. No. Name of the MC Para No. Amount

(Rs.) Remarks

1 Anantapur 9 (58) 13,76,8382 Kurnool 58 86,65,6963 Guntur 37 2,16,81,0464 Nellore 11 (VIII) 6,10,48,478 Total 9,27,72,058

Voucher No. & date for which records were not produced were detailed in original reports issued to the Commissioner of the Corporations concerned.

11 (2) MC KAKINADA - WORKS – NUMBER OF WORKS EXCUTED – M.BOOKS NOT PRODUCED Rs.4,63,73,411/-

During the course of Audit as verified from the cash books, it was noticed that, an amount of Rs.4, 63, 73,411-00 was drawn and spent towards execution of works. But the connected vouchers, Estimates, agreement, files and M.Books were not produced to audit. In the absence of the same the correctness of the works could not be verified in audit. Hence action would need to be taken to produce the same at an early date and if any loss sustained in this regard it would need to be recovered from the person or persons responsible. (Details are mentioned in the Original Report issued to the Commissioner, Municipal Corporation.)


11 (3) MC – NELLORE - PURCHASES – CONNECTED FILES VOUCHERS AND STOCK REGISTER NOT PRODUCED Rs.4,14,55,169/-

During the year under audit the following amounts were drawn and paid towards purchase of different items as detailed against each amount. The connected files, vouchers were not produced to audit for verification.

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In the absence of the connected records, it is not possible to certify the correctness of the purchases procedure and following of the rules and regulations as specified by the Government. Hence the entire amount drawn in the following vouchers is held under objection. Immediate action would need to be taken to produce the connected records to audit at an early date.

PUBLIC HEALTH MATERIAL Sl. No.

Voucher No & date

Item of material Amount (Rs.)

1 90/06-09 Supply of lime powder 3703722 99/06-09 Supply of lime powder 2028133 594/06-09 Supply of lime powder 2749564 595/06-09 Supply of NW oil 552005 1730/01-10 Supply of Lime powder 2099256 1731/01-10 Supply of Lime powder 331127 1880/01-10 Supply of JCB Oil for JCB Machine 301058 1889/01-10 Supply of JCB Oil for JCB Machine 204379 1890/01-10 Supply of JCB Oil for JCB Machine 4765410 1891/01-10 Supply of JCB Oil for JCB Machine 2943911 1892/01-10 Supply of JCB Oil for JCB Machine 2530512 1893/01-10 Supply of JCB Oil for JCB Machine 3333413 1894/01-10 Supply of JCB Oil for JCB Machine 3555414 1895/01-10 Supply of JCB Oil for JCB Machine 2692715 2174/2-10 Supply of lime powder 20883416 2185/2-10 Supply of oil to PH Vehicles 50000017 2400/2-10 Supply of to PH Vehicles 50342618 2436/03-10 Supply of lime powder 29757519 2516/03-10 Supply of Brooms, baskets to P.H.

Section 409419

20 2690/03-10 Supply of line powder 19390621 2724/03-10 Supply of fuel to P.H. Vehicles 254788 Total 3763081

LIGHTING MATERIAL 22 4/06-09 Supply of street light 50961923 87/06-09 Supply of street light 9928924 263/09-09 Supply of Tubes, Starters 9986125 581/10-03 Supply of street Lighting Material 66496126 582/10-03 Supply of street Lighting Material 64496627 704/10-09 Supply of lamps and serial sets for

Function of Vinaya Nimajaman 99774

28 705/10-09 Supply of lamps and serial sets for Function of Vinaya Nimajaman

99840

29 764/10-09 Supply of S.V. Lamps 66300230 765/10-09 Supply of street light materials 61145331 2147/2-10 Supply of tubes, chokes starters etc., 73582132 2571/2-10 Supply of S.V. Lamps 9984033 2471/03-10 Supply of Cyclone Poles 9880034 2843/03/10 Supply of Tubes and chorkes 26250435 193/7/09 Supply of cable wire for pumping

E.L.S.R.S 98842

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36 194/7-09 Supply of 7.50 H.P. Submersible motor wire

81588

37 260/7-09 Supply of 7.50 H.P. Submersible motor wire

81588

Total 4951748WATER SUPPLY

38 18/06-09 Supply of PVC G.I. Pipe for laying of PVC Pipe line

79424

39 31/06-09 Rewiring of Council hall making grooves switch boxes for PVC Pipe line

99840

40 79/06-09 Supply of chlorine gas cycinders 54080041 104/06-09 Supply of 25HP pump and of Mulapet

Booster in S.E. Office 99840

42 603/10-09 Supply of chlorine Gas cylinder 47691743 714/10-09 Supply of GI Pipe for maintenance of 25

to 49 Division 86681

44 2099/01-10 Supply of chlorine Gas cylinder 26706245 2100/01-10 Supply of chlorine Gas cylinder 9360046 2101/01-10 Supply of chlorine Gas cylinder 9360047 2102/01-10 Supply of chlorine Gas cylinder 9977848 2103/01-10 Supply of chlorine Gas cylinder 9266449 2104/01-10 Supply of chlorine Gas cylinder 9500050 2105/01-10 Supply of chlorine Gas cylinder 5054451 2238/02-10 Supply of Bore materials 23574052 2739/03-10 Supply of Bore materials 329450 Total 2740340 Grand Total 1,14,55,169

(Para No.11 (L VII) of AR of MC, Nellore for 2009-10)

11(4) GVMC VISAKHAPATNAM - STATUTORY RECOVERIES MADE FROM WORK BILLS REMITTANCE PARTICULARS TO APPROPRIATE FUNDS AND DEPARTMENTS NOT PRODUCED – NEEDS ACTION – Rs.3,73,65,659/-.

During the year 2009-10, an amount of Rs 2,77,99,561/- was recovered towards statutory recoveries i.e., S.C. IT, VAT, NAC, CMRF and labour cess from works bills paid from General Funds of GVMC Visakhapatnam as detailed in Annexure.

The said recoveries made from work bills would need to be remitted to concerned funds and Departments and challan produced for verification in audit.

ABSTRACT OF WORKBILL RECOVERIES FROM SELECTED WORKS

Sl. No.

Head of Recovery Zone-I Zone-II Zone-III Zone-IV Zone-V Zone-

VI Total

1 IT 772114 334770 1563019 1999601 599461 162446 48319502 VAT 1096319 433062 2077723 2743312 838383 290899 6641315

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3 Seignorage Charges 863494 229589 698558 1347009 706930 34554 3173204

4 NAC 34520 14940 2090613 92379 24321 7516 22399685 CMRF 51842 22413 147654 138640 41449 11275 371824

7 Labour Cess 347782 149418 678760 0 273250 73338 1249298

8 QC 48647 0 0 433267 0 0 4819149 Edn. Cess 0 0 140359 62914 0 3658 206931

10 PS Charges 878461 0 11690113 0 0 64082 12632656

12 A.S.D 0 0 308239 0 0 30823913 F.S.D 0 0 1630776 0 0 171334 1802110

14 3rd party payment 0 0 107538 0 0 0 107538

15 Deposits 0 0 3318712 0 0 0 3318712 Total 4093179 1184192 24452064 6817122 2483794 819102 3,73,65,659

But the remittance particulars of the above amounts to the departments concerned were not made available to audit for verification. In the absence of the remittance challans the correctness of the remittance could not be certified in audit.Hence, action would need to be taken to produce the remittance challans to audit for verification.


11(5) GHMC – KHAIRTHABAD CIRCLE - AMOUNT COLLECTED TOWARDS PROPERTY TAX THROUGH CHEQUES- ACTION TAKEN ON BOUNCED CHEQUES – RECORDS / FILES NOT PRODUCED - Rs.2,77,51,794/-

During the verification of receipt books and other connected records of property tax collection through the cheques for the year 2009-10 it was noticed that an amount of Rs.2,77,51,794/- collected through (946) cheques towards property tax were bounced (statement enclosed to original Report issued to Executive Authority during the year under audit).

The details of action initiated against the defaulters and the connected records of collection of bounced cheques amount along with penalty were not produced to audit for verification. In view of above the correctness of the receipts of property tax in respect of bounced cheques could not be verified in audit.

(Para No.23 of AR of GHMC, (Circle No. 10) Khairthabad for 2009-10) 11(6) MC – GUNTUR - SPECIAL ACCOUNTS – CASH BOOKS ONLY PRODUCED – PASS BOOKS, CHEQUE BOOK COUNTER FOILS, VOUCHERS AND OTHER CONNECTED RECORDS NOT PRODUCED Rs.1,50,10,336/-

The cash books of the following special accounts were furnished. But, pass books, cheque book counter foils, stock registers etc., were not produced to audit for verification. In the absence of the same, the correctness of the expenditure incurred could not be verified in audit. Early action may be taken for production of the records to audit for verification.

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A.C.D.P I Sl. No.

Vr. No. / Date

Amount paid Rs.

Details

1 1/7-09 79,940 Amount Payable to Sri Sk. Atif t/w providing CC road at Christian burial ground in ananda pet in div. 6

2 2/7-09 99,547 Amount Payable to Sri Sk. Atif t/w providing CC road opp. Municipal school in ananda pet in div. 6

3 3/7-09 47,298 Amount Payable to Sri Sk. Atif t/w providing Gravel road at Rajiv Gandhi Nagar Ist and IInd lines in div. 6

4 4/7-09 43,451 Amount Payable to S.M. Rahaman t/w providing CC road and culvert to potthuruvari veedhi in div. 4

Total 2,70,236

WAKF BOARD Sl. No.

Vr. No. / Date

Amount paid Rs. Details

1 1/16-7-09 67,000 Amount Payable to Sangadigunta IPD colony masque construction committee, Guntur.

2 2/23-07-09 1,20,898 Amount Payable to Madeena Majeed constractors committee, china bazaar, guntur t/w construction of RCC roof ground floor to madeena majid at china bazaar guntur.

3 3/07-12-09 77,556 Amount Payable to M/s AMS sangam committee construction of brick work at Najider at Masque in Gujjanagundla.

4 4/11-1-10 1,38,352 Idhga Construction committee A.M. Campus , Guntur t/w construction of compound wall to Idhga at AM college.

5 5/5-03-10 71,369 Amount payable to Majeed-E-Mahamood committee, Sangadigunta IPD colony masque construction committee,guntur t/w construction of masque at IPD colony, sangadigunta.

Total 4,75,175

M.P.L.A.D.S. Sl. No.

Vr. No. / Date


1 1/8-5-09 3,81,500 Sri N. Jayaraj – Construciton of Library Hall along with compound wall to madarsa-e-arabion and modern education society.

2 2/8-5-09 2,10,863 M/s Surya ratna works providing CC road and Side drains 6/1 Rajiv Gandhi nagar.

3 3/31-5-09 1,75,000 S.M. Subhani formation of CC road to NTR Nagar Ist and II lines and cross road in Div. 52

4 4/31-05-09 3,17,510 T. Ankamma Rao, construction of community hall in div. 12 in Gmc Ist floor brick work and water drainage work.

5 5/25-08-09 1,50,000 G. Narayana Reddy, Construction of compound wall at kona Bala prabhakara Rao, MP Municipal corporation school.

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6 6/24-11-09 2,50,000 Challa venkaiah, gravelling in formation of WBM roads to shaba hussain nagar colony in div. 16.

7 7/24-11-09 1,79,000 S. M. Subhani, Construction of prayer hall building in muslim burial ground at Stambhal garuvu in div. 33

8 8/8-12-09 2,83,153 Amount Payable to sri T. Ankamma Rao t/w construction of stair case store room kitchen room and ground floor and electrical works in community hall in div. 12

9 9/8-12-09 3,17,809 Sri. T. Ankamma Rao t/w construction of hall in 12th div of GMC extention of GF and FF

10 10/8-12-09 24,111 N. Jaya Raj, construction of Library hall along with compound wall to madarsa – E- arbia and modern education society

11 11/8-12-09 5,637 CTO Eluru bazaar VAT recoverd some contractors work bills for 11/2009

12 12/9-2-10 12,014 Amount Payable to ITO (TDS) SBI main branch Guntur t/w IT recoverd from contractos paybill for the month 1/2010

13 13/15-2-10 3,65,520 N. Jaya raj, construction of additional class rooms of madarsa-e-arabia and moderan education society

Total 26,72,117

Solid Waste Management (12th Finance).

Sl. No.

Vr. No. / Date


1 1/16-4-09 6,48,273 M/s the Harijana Co-operative labour contract society ltd. NRT t/w S/D of 200nos wheel barrows to GMC.

2 2/1-5-09 5,90,544 M/s Surya ratna works S/D of tri cycles to GMC. 3 3/1-5-09 45,438 ITO (TDS) SBI Main branch t/w IT recovered from

contract bills for the months of 12/08 and 1/09. 4 4/1-05-09 18,181 CTO, Eluru bazaar ITO (TDS) SBI Main branch t/w IT

recovered from contract bills for the month of 12/08. 5 5/1-05-09 1,132 Asst. Director, mines and geology recovery from contract

bills for 12/08 6 6/28-5-09 19,99,864 M/s serva motors supply and delivery of 50nos of

hydraulic auto tippers 7 7/8-6-09 14,51,487 M/s sri venkataramana heavy engg. Industries, Hyd S/D

of M.S. Fabricated dumper bins with 3.00cm capcity to GMC 100nos.

8 8/22-06-09 6,93,828 M/s suryaratna water works, guntur t/w S/D of tri cycles to GMC

9 9/18-07-09 3,59,504 Amount payable to CTO Eluru bazaar, guntur t/w VAT recovery from contractor bills for the month of 4/09 to 6/09.

207

10 10/18-07-09

1,68,391 Amount payable to ITO (TDS) SBI, main branch, Guntur t/w IT recovery from contractor bill from 4/09 to 6/09.

11 11/30-07-09

13,45,838 Amount Payable to M/s Serva Motors t/w S/D of 15nos hydraulic auto tippers

12 12/16-8-09 25,32,429 Amount Payable to Varun Motors, Visakhapatnam, t/w S/D of 4Dx excaveter with 96hp (back ap7AT-8434), Guntur.

13 13/11-9-09 2,53,838 M/s Sri Venkata Ramana Heavy Engg. Industries t/w S/D of M.S. Fabricated dumper bins with 3.00cms capacity to GMC (100nos)

14 14/3-10-09 1,41,001 Payable to IT (TDS) SBI Main branch t/w IT recovered form contractors work bills for the months of 7/09 and 8/09.

15 15/3-10-09 2,51,788 Amount Payable to CTO, Eluru Bazar, Guntur t/w VAT 16 16/24-11-

09 3,00,000 Amount Payable to Sri A. Madhusudhana Rao, Manager

I/c to meet miscellaneous expenditure to visit Delhi, Agra, Jaipur and chandigarh to study toor programme under solid waste management (Advance)

17 17/24-11-09

6,40,000 Amount Payable to Southern travels, Vja. t/w traveling charges for tour programme

18 18/15-2-10 1,51,272 Amount Payable to M/s Automative manfactures pvt.ltd t/w supply of 5nos of dumper plazers (balance amt.)

Total 1,15,92,808

(Para No.64 of AR of MC, Guntur for 2009-10) 11 (7) MC NELLORE - NON - ACCOUNTING OF MATERIAL /EQUIPMENTS AND NON- PRODUCTION OF STOCK REGISTER Rs.1,25,61,615/- During the year under audit on verification of Annual Account, it was observed that the Municipal Corporation, Nellore procured material/equipments worth of Rs. 1,25,61,615/- as detailed below during the year 2009-10. However the stock account of these material /equipments was not maintained and utilization of the materials was also not recorded. As such, the possibility of misuse, theft or defalcation of material could not be ruled out.

Sl. No. Items Amount (Rs.) 1 Cheppals 2,75,2882 Bleaching powder 3,59,4243 Conservancy Material 10,09,3354 Lighting material 95,58,3035 Uniform 10,52,5696 Tyres & Tubes 3,06,696 Total 1,25,61,615

The evidence regarding conducting physical verification of stores by the authorities of Municipal Corporation, Nellore were not forthcoming to audit. Thus, due to non- production of stock register, the actual status of stores could not be ascertained.

208

The same was informed to the Commissioner, Municipal Corporation, Nellore through several requisitions. The Commissioner had not furnished any information regarding this matter. Hence the same may be produced to audit.

(Para No.11 (X) of AR of MC, Nellore for 2009-10)

11(8) MC ANANTAPUR - SOLID WASTE MANAGEMENT – AMOUNT WAS DRAWN AND PAID – CONNECTED VOUCHERES, FILES ETC. NOT PRODUCED - Rs.75,42,657/-. As verified from the cash book with reference to Bank Pass Book (A/c No.332010117107 ING Vysya Bank, Anantapur), it is noticed that an amount of Rs.75,42,657/- was drawn and paid towards Solid Waste management purpose. But the connected files, paid vouchers etc. are not produced to audit for verification. The Executive Authority was not taken steps to produce the records during the course of audit.

Sl. No. Vr. No. & date Purpose Amount

(Rs.) 1 1/7.4.09 Being Insurance amount paid 863122 2/17.4.09 Towards advance for supply of

Mini JCB 2166320

3 3/17.4.09 -do- 16250004 4/17.4.09 -do- 12314705 5/3.6.09 Being the Insurance premium

for Mini JCB 23795

6 6/25.6.09 For supply of 3 Nos. trailers 4200007 7/9.09 Towards Income tax paid

recovered from work bills 11760

8 8/11.09 Amount paid to the CDMA, Hyderabad towards Mpl share

1753000

9 9/1.2010 Formation of WBM road in compost yard

225000

Total 7542657

(Para No.9 (1) of AR of MC, Anantapur for 2009-10) 11(9) MC KURNOOL - LAYOUT REGULARISATION SCHEME – AMOUNT ADJUSTED TOWARDS REGULARISATION FEE – CONNECTED FILES NOT PRODUCED - Rs. 55,86,130/- During the Course of audit, it was noticed that an amount of Rs.55,86,130/- was collected towards layout regularization fee during the year 2009-10 but connected files were not produced to audit . In absence of the same, correctness of the fee collected could not be verified in audit. The irregularities if any noticed or loss if any sustained later in this regard would need to be made good from the person (s) responsible and remitted the same to the corporation Funds.


209

11(10) MC ANANTAPUR - AUCTIONS – DAILY MARKET, WEEKLY MARKET AND ROAD MARGINS ETC. FILE NOT PRODUCED – BALANCES STOOD COLLECTED FROM LEASSEE – IRREGULAR – NEEDS ACTION -Rs.43,21,323/- During the course of audit, the auction files in respect of Daily and Weekly Markets, Road Margins, Slaughter houses etc. were not produced. In the absence of the same the process adopted to choose the lease, agreements, tenders basing on upset prices etc. could not be verified in audit. The authorities have to fix the upset prices basing on the collection of past 3 years by verifying the contractors account books and receipts issued by them. Further as per the statement, it was observed that every year the contractors stood as defaulters. The legal steps that were taken by the authorities to collect the dues along with penal interest as per Income and Expenditure Rules 1968 and whether security deposits withheld was not explained in audit. As per Rules in force, from the date of discontinuation of lease, further auction shall be conducted for the break periods, but such implementation was not seem to have been adopted by the authorities. It is very essential to take legal action forcibly against defaulters and recover the dues along with penal interest under intimation to audit. Further file pertaining to auctions would need to be produced to certify the correctness of the transactions done.


11(11) GHMC - SANITARY SECTION CONNECTED RECORDS - NOT PRODUCED TO AUDIT – AMOUNTS HELD UNDER OBJECTION Rs.22,79,498/- During the course of audit, the following amounts were drawn in sanitary section during the year 2009-10. The connected records pertaining to Sanitary Section were not produced. Sl. No. Vr. No. & Date Particulars Amount

(Rs.) Cheque No. &

Date 1 900935615/26.08.09 Vehicle tax bill for the year

of 2009 30780 440171/28.08.09

2 90034631/22.08.09 Diesel bill Siddivinayaka filling station (Tracker, JCB, Tipper Fogging machine

62055 440157/24.08.09

3 90028896/31.6.09 Diesel Bill Asish Gupta 218352 44019/05.08.09 4 900028895/31.06.09 Diesel Bill Asish Gupta 195381 440109/05.08.09 5 800095440/27.02.09 Sweeping machine S.K.

Service Enterprises 229395 233750/14.05.09

6 900004888/05.05.09 Vehicle engage charges T. Surya Shekar Reddy, Dy. E.E.

34989 253748/13.05.09

7 900004886/05.05.09 Vehicle engage charges T. Surya Shekar Reddy, Dy. E.E.

17494 253748/13.05.09

8 800108547/30.03.09 Sweeping machine S.K. Environ Enterprises

229395 253756/19.03.09

9 8001027/50/19.03.09 Sweeping machine S.K. Environ Enterprises

207194 253756/19.05.09

210

10 800108538/30.03.09 Sweeping machine S.K. Environ Enterprises

229395 253756/19.05.09

11 00027866/27.07.09 Verf. Society for animal welfare and Rural Development (Animal dieth control cumahtirabies)

464236 440093/30.07.09

12 900023902/14.07.09 Diesel Bill Siddi Vinayaka filling station

159993 440070/15.0709

13 900020789/04.07.09 Payment of white the board name indication and slogans on Door to Door Garbage collection

62550 440064/13.07.09

14 900072379/02.01.10 Payment of lifting died animals and carcasel from the limit for the

46912 513007/27.01.10

15 900074342/03.01.10 Payment of Engaging of JCB work 52x625

31764 440421/28.01.10

16 9200073439/06.01.10 Golfer machine (hard removing from the manholes and drains)

50626 440417/23.01.10

17 900042124/14.09.10 Diesel bill of used for Mobil laddes for street light maintains

4406 440222/18.09.09

18 900042127/14.09.10 Diesel bill of used for Mobil laddes for street light maintains

4581 440222/18.09.09

Total 2279498 Due to non production of the above records the correctness of the payments could not be verified in audit. Hence the amounts thus paid are held under objection. (Para No. 15 of AR of GHMC, Patancheru & Ramachandrapuram (Circle No.XIII) for 2009-10)

11 (12) MC – GUNTUR - GENERAL CONTINGENT EXPENDITURE – PURCHASE OF KHAKI UNIFORMS, SAREES, BLOUSE PIECES AND TOWELS TO PUBLIC HEALTH WORKERS – CONNECTED FILE NOT PRODUCED - Rs.22,59,539/-.

A sum of Rs. 22,59,539/- was paid to the following firms towards supply of uniform cloth to the public health employees of the corporation vide the vouchers mentioned here under against each.

Vr. No./Date Particulars Amount

(Rs.) 2030/4.8.09 Rampos show room (Binny Textiles) Guntur t/w

supply of uniforms to P.H. workers

2,24,380

2465/26.8.09 APCO handloom, Guntur t/w supply of Uniform to PH workers

10,20,861

211

4020/19.12.09 APCO handloom house, Guntur for supply of sarees, blouses and towels for the year of 2008-09 a) sarees : 834 Nos @ 512/- = 4,27,008/- b) blouses : 834 Nos @ 35.2/- = 29,356/- c) towels : 2784 Nos @ 59.2/- = 1,64,812/- --------------

6,21,178

4021/19.12.09 Rampo’s show room, Guntur for supply of Khaki Uniforms for the year 2008-09 3510x112

3,93,120

Total 22,59,539

The connected file leading to the sanction of expenditure in this regard, the details of PH workers were not made available for verification in audit. The connected stock register and the acknowledgements of the recipients thereon were also not produced to audit. The loss if any caused in this regard would need to be made good from the person or persons responsible. (Para No.47 of AR of MC, Guntur for 2009-10) 11(13) MC – ANANTAPUR - PURCHASE OF DIESEL / FUEL FOR REGULAR MAINTENANCE OF CORPORATION VEHICLES SUCH AS TRACTORS, PROCLAINER, FOGGING MACHINE ETC – LOG BOOKS NOT MAINTAINED AND PRODUCED – Rs.7,27,991/- During the year 2009-10 an amount of Rs.7,27,991/- was spent towards purchase of fuel / diesel for regular maintenance of Corporation Vehicles such as P.H. Tractors, fogging machine, procliner etc, for regular maintenance of public health i.e. lifting of garbage, debris, etc. To verify the correctness of the consumption the relevant log books of the vehicles to which the fuel / diesel used work not made available in audit.

Sl. No.

Vr. No. & Date Name of the Filling Station Ltrs Amount (Rs.)

1 120/25-05-09 Meda Ramaiah Setty & Co. 300 113222 121/25-05-09 270 101903 193/09-07-09 500 197604 194/ 09-07-09 350 132095 196/09-07-09 400 159866 195/09-07-09 320 134277 192/09-07-09 350 136098 191/09-07-09 450 180569 190/09-07-09 2850 10755910 189/09-07-09 450 1941311 187/09-07-09 550 2512712 188/09-07-09 340 1289913 186/09-07-09 450 1698314 185/09-07-09 350 1320915 184/09-07-09 400 1546616 183/09-07-09 2850 107559

212

17 182/09-07-09 368 1794018 106/25-05-09 350 1746819 107/25-05-09 2200520 108/25-05-09 500 899621 109/25-05-09 280 1178222 110/25-05-09 120 464223 111/25-05-09 150 641624 112/25-05-09 300 1321125 113/25-05-09 240 1196126 114/25-05-09 270 1275127 105/25-05-09 380 1554128 99/25-05-09 450 1723329 104/25-05-09 580 2713930 103/25-05-09 450 1707831 102/25-05-09 370 1423632 101/25-05-09 830 3104233 100/25-05-09 500 2179234 117/25-05-09 300 1166235 118/25-05-09 300 11322 Total 7,27,991

Hence expenditure amounting to Rs.7,27,991/- is held under objection.

(Para No.9 (56) of AR of MC, Anantapur for 2009-10) 11(14) MC – ANANTAPUR – DEPOSITS REFUND OF DEPOSITS-REGISTER NOT PRODUCED - Rs.2,18,184/- During the audit for the year 2009-10, it is noticed that the deposits like EMD and FSD relating to several schemes were refunded to the contractors. But the connected deposit register was not produced to verify the original credits and applicability to refund the same. Hence early action would need to be taken to produce the deposit register along with relevant records for verification.

Name of the grant Vr.No & Date Amount (Rs.)

APUSP(CMPP)C2 Comp 01/04.2009 11712APUSP(CMPP)C2 Comp 04/08.2009 54772APUSP- DFID funds 01/04.2009 11200APUSP- DFID funds 02/09.2009 18750APUSP- DFID funds 03/09.2009 6200APUSP- DFID funds 04/09.2009 12500APUSP- DFID funds 05/12.2009 90800APUSP- DFID funds 06/02.2010 33400APUSP- DFID funds 07/03.2010 8850 Total: 248184


213

11(15) MC – KURNOOL - RENT COLLECTION DETAILS ON PRIVATE USAGE OF OPEN AIR THEATER, MUNICIPAL SCHOOLS AND MUNICIPAL GUEST HOUSE NOT PRODUCED - CONNECTED FILES, REGISTERS AND RECEIPT BOOKS ALSO NOT PRODUCED At the time of verification of exhibition lease file, it was noticed that, on daily rental basis some of the municipal buildings were leased out for private usage at the following rates.

Municipal Building Sl. No. Particulars Rate per day

(Rs.) 1 Open-air theatre (a) for stage plays 1000 (b) for cultural activities 500 (c) for public meetings 750 (d) for marriages 5002 for marriages in municipal schools 300

3 for public meetings in municipal school play grounds

1000

4 for public meetings in municipal school premises 7505 Municipal guest house (a) for A/C room 500 (b) for Non A/C room 100

But no file record regarding the above rents or receipt books were produced by the

municipal authorities for verification in audit. Loss if any sustained in this regard should be recovered from the person or persons responsible.

(Para No.24 of AR of MC, Kurnool for 2009-10) 11(16) MC – NELLORE - WATER TAX AND CURRENT DEMAND REGISTER AND OUTSTANDING BILLS NOT PRODUCED: As per rules, the arrears and current demand register, year wise metered water tax demand should be fixed and Demand raised for the new connection if any collections made from the receipts, D.Ds cheques, E-seva should be posted in the connected register and the balances should be struck up. The collections should be tallied with receipts issued by the Municipal Corporation. In absence of the Demand register, the collections made could not be verified and certified in audit. The outstanding bills were also not made available for verification.

Due to aforesaid reasons, if any financial irregularities were noticed later, the loss sustained to the Municipal funds would need to be made good from the persons(s) responsible under intimation to audit.

Demand (Rs.)

Collection (Rs.)

Balance (Rs.)

3,27,30,913 1,60,86,752 1,66,44,161

(Para No.11 (XXXV) of AR of MC, Nellore for 2009-10)

214

11(17) MC NELLORE - NON- PRODCUTION OF IMPORANT RECORDS – MATTERS NEED INVESTIGATION The city planner was requested several times orally and through half margin letter No.27/28-06-11H.L. 27/6-11 dt: 27-6-2011 to produce the below mentioned records to audit.

1. Advertisement Tax on sliders in theaters and publication. 2. Advertisement turn from cable T.V. and electronic media in terms of G.O.Ms

No.200 M.A Dt. 5-5-2000. 3. The council resolutions under which the following recoveries were made while

approving the plans have not been produced to audit.

A) Security deposits. B) Lay out conversion and charge of land fee. C) 10% proportionate land cost. D) 10% layout open space cost. E) R.W.H.S.

The city planner has not produced the above important records to audit. In the

absence of the records, correctness of the charges recovered, the fee to be collected could not be checked. Immediate action would need to be taken to produce the connected records along with connected building license application to audit. Action would also need to be taken to recover, the loss caused to the municipal corporation funds due to non- recovery or short recovery on the above items while approving the building licenses from the persons responsible and made good to the municipal corporation funds.

(Para No.11 (XXXX) of AR of MC, Nellore for 2009-10)

12. MIS-APPROPRIATIONS

A consolidated statement of audit objections on misappropriations noticed in the audit is annexed vide statement No.9(2). A total number of 17 cases involving an amount of Rs.2.40 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) GHMC – LB NAGAR - REVENUE – CASH SECTION – TAXES & FEES COLLECTED – AMOUNT RECEIVED THROUGH ISRANAMAS – SHORT TAKEN OR NOT TAKEN TO CHITTA – MIS-APPROPRIATED – NEEDS RECOVERY Rs.1,69,844/- On verification of the chitta with reference to the Irsalnamas of collection staff, it is observed that the amounts received through Irsalnamas were short taken or not taken to chitta as detailed below amounting to Rs. 91227-00 by Sri N.Vishnu Vardhan Reddy, Cashier. The reasons for less remittance or not taken to chitta were not specified to audit inspite of several oral intimations, and it is clear that the said amount was mis-appropriated by him, causing loss to the institution.

215

Therefore immediate action would need to be taken to recover / collect short / not taken to chitta amounting to Rs.91227-00 from the above individual and credited to GHMC fund under intimation to audit. Disciplinary action also be taken on the individual besides recovery to avoid such misappropriation in future.

Sl. No.

Receipt Particulars Collected (Rs.)

Receipt / taken to chitta

(Rs.)

Short / not taken (Rs.)

1 MRB No.134-94, dt. 12.1.10 (chitta p.12)

22525 11200 11325

2 MRB No.136, dt. 16.11.10

53103 52103 1000

3 MRB No.8058/1 to 6, dt. 3.2.10 (chitta p.36) (Ch. Gnaneshwar)

21180 21180

4 MRB No.799/, dt. 8.1.10 (chitta p.14) (N.Ashok, BC)

25244 25244

5 IR 68/16.3.11 Amarende068r, BC

19068 19068

6 12.3.10 2700 2200 5007 Chitta I/106(36) 18978 18778 2008 Ch.P.33/4.6.09

(R.No.2845/12 to 15) 33964 33864 100

9 4.10.2010 (P.O(P.Omkaram) R. No.3229/3346

12600 91227

Total 169844

(Para No.27 of AR of GHMC, LB Nagar (Circle No.III) for 2009-10) 12(2) GHMC - REVENUE – LICENCE FEE COLLECTION – AMOUNT COLLECTED – SHORT AMOUNT TAKEN / NOT TAKEN TO IRSALNAMA ETC., - Rs.12,330/- - SHORT REMITTED –– MISAPPROPRIATED – NEEDS RECOVERY.

On verification of the following Receipt Books issued to Sri.Ragottam Reddy, Sanitary Inspector, L.B.Nagar Circle, it is observed that the amounts collected through receipts were short accounted for to Irsalnama, and in some cases the Receipt amount not taken to Irsalnama and remitted to GHMC fund which is a clear misappropriation of amount by the above said Sanitary Inspector.

Therefore immediate action would need to be taken to recover the short accounted for amount of Rs.12,330/- from the above S.I. or from the person(s) responsible and credited to GHMC fund under intimation to audit.

Sl. No.

Receipt No. & Date

Name of the Leasee

L.F. Collected

(Rs.)

Taken to Irsalnama

(Rs.)

Short/not taken to

Irsal (Rs.)

1 R.No.7863/96/ 14-12-09

J.Sukanya Function Hall

10000 6000 4000

216

2 R.No.7863/10/ 23-10-09

D.Madhusudhan,, Tuljabhavani Meat shop

1000 - 1000

3 R.No.8000/7/ -12-09

M.Thirupathi 600 - 600

4 R.No.8000/100/ 27-1-10

Krishna, Sri Sai Kirana Shop, Vanasthalipuram

500 - 500

5 R.No.8045/23/ 3-2-10

R.Revindranath, Chi Service station

3100 - 3100

6 R.No.8045/71/ 11-2-10

R.Prameela Rani 2780 - 2780

7 R.No.8096/ 19-3-10

M.Srinivas, Sri Sai raj Bike point

350 - 350

Total 18,330 6000 12,330(Para No.12 of AR of GHMC, LB Nagar (Circle No.III) for 2009-10)

13. EXCESS PAYMENTS

It was observed in audit that in several cases of excess payments were made due

to either. a) Incorrect calculations or b) Excess totaling in Bills or c) Admission of inadmissible claims or d) Lack of knowledge of Government instructions.

A Consolidated Statement No.9 (2) of showing audit objections on Excess

Payments is appended to the Report from which it could be seen that an amount of Rs.59.25 lakhs was pointed out in 48 Audit Paras.


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 Municipal Corporations for the year 2009-10 were avoidable, extraordinary and lacked proper planning.

A Consolidated Statement No.9 (3) of showing audit objections on Wasteful

Expenditure is appended to the Report from which it could be seen that an amount of Rs.1.36 lakhs was pointed out in 3 Audit Paras.

217

15. INSTANCES OF CASH UNACCOUNTED FOR CASH / STORES

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.9 (3) to the Report showing 2 paras involving an amount of Rs.0.03 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. 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, 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.9 (3) to the Report from which it could be seen that 3 paras raised. An example is given below.

16(1) GHMC, SHERILINGAMPALLY - AMOUNT REMITTED TO H.M.W.S AND BOARD TOWARDS DEPOSIT FOR WORKS UC NOT OBTAINED FROM THE H.M.W.S BOARD – IRREGULAR IS HELD OBJECTION. During the year under audit an amount of Rs.1,48,00,000/- was paid to H.M.W.S sewerage board Hyd towards deposit works as detailed below for taking up pipeline works by the GHMC. But the utilization certificate from the H.M.W.S. board was not obtained and furnished to Audit for verification. Further the status of works is not forthcoming to Audit. Immediate action would need to be taken to get information on the status of work and obtain utilization certificates and produce to Audit for verification.

Sl. No. Voucher No. Particulars Ch. No.

& Dt Amount

(Rs.) 1 33101/100 Managing Director HMWS & SB

Payment of depository extension of Drinking water supply Pipe Line to Chandra Nayda Tanda in Madhapur Serilingampally – XII

438704 / 19.8.09

1,40,00,000

218

2 161/900068965 Payment towards deposit of amount for laying of 200mm/15mm Dia miter Pipe lines at Prashanth Nagar Colony in Maadhapur

439221 / 19.12.09

8,00,000

Total 1,48,00,000

(Para No.8 of AR of GHMC,(Cirle No.12 Sherilingampally for 2009-2010)


In accordance with the provision of the State Audit Act, 1989 and Rules issued there under, 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.

A Satement No.9 (3) of such cases involving an amount of Rs.0.17 lakhs in 1

case pointed out.

18. OTHERS Othe objections which were not fallen in the above categories are incorporaed

under this category. A Consolidated Statement No.9 (3) showing such objections is appended to the Report from which it could be seen that an amount of Rs. 3042.23 lakhs was pointed out in 237 Audit Paras.

18(1) GVMC - PROPERTY TAX – VARIATION IN DEMAND-MANUAL DEMAND REGISTERS SHOWING LESS VALUES THAN THE FIGURES MAINTAINED IN COMPUTER/ONLINE – IRREGULAR - NEEDS RECTIFICATION- Rs.18,94,745/- During the course of audit for the year 2009-10, on cross verification of Demand Register entries with Computer generated figures it is observed that, the Demand figures as per the Demand Register and the figures as reflected in the Computer/system are not tallying. The demand as per the computer/system is much higher than the demand as per the manual Demand Register for the following assessments detailed in the annexure appended below:

219

Statement showing the list of assessments whose demand shows Lower Demand in Demand Registers than in the Computer sheets:Zone-I

Sl. No.

Ward No.

Assessment No.

Demand as perDemand Register

(Rs.)

Demand as per Computer Sheet

(Rs.)

Excess Demand

(Rs.)

1 1 117412 216 2216 20002 1 117418 296 946 6503 1 117028 1156 1624 4684 1 117123 536 732 1965 1 10000300008 184 1336 11526 1 10000300420 388 588 2007 1 105790 232 1172 9408 1 106888 2356 3356 10009 2 113099 1358 2488 113010 2 113154 2632 4104 147211 2 112776 1374 2328 95412 2 112779 572 960 38813 2 114970 778 1236 45814 2 112628 2568 4944 237615 2 10000300989 1594 2800 120616 2 10000311311 656 1128 47217 2 115999 840 1144 30418 2 114368 794 1384 59019 2 112234 800 1416 61620 2 112289 1334 2484 115021 3 110811 514 1072 55822 3 110833 388 604 21623 3 110947 1400 2076 67624 3 110283 2182 4180 199825 3 110284 2220 4180 196026 3 110285 2182 4180 199827 3 110282 1992 3800 180828 3 10000300385 256 332 7629 3 10000300907 1926 3472 154630 3 10000301117 436 1036 60031 3 10000301223 184 560 37632 3 10001105114 460 560 10033 3 10001105490 474 612 13834 3 105533 898 1284 38635 3 105580 1130 1804 67436 3 105585 1648 2844 1196

220

37 3 105591 1556 2840 128438 3 105628 2162 2424 26239 3 105629 824 944 12040 3 106067 872 1464 59241 3 106168 1336 1948 61242 3 106028 1278 2556 127843 3 106113 244 492 24844 3 106202 536 556 2045 3 106207 224 604 38046 3 106209 256 384 12847 3 106212 256 328 7248 3 106403 556 732 17649 3 106478 1426 2636 121050 3 106508 6074 10652 457851 3 106520 490 744 25452 3 106547 468 868 40053 3 106549 336 544 20854 3 106604 824 868 4455 3 106665 596 884 28856 3 108718 480 492 1257 3 108802 27028 41834 1480658 3 108986 204 408 20459 3 109415 712 4896 418460 3 109489 244 308 6461 3 109526 244 344 10062 3 110103 104 212 10863 3 110138 302 604 30264 3 110183 180 364 18465 3 110202 204 408 20466 3 110218 92 184 9267 4 10000870301 1516 11768 1025268 4 10000870331 182 1296 111469 4 10000873391 23338 961094 93775670 4 10000873986 460 2725 226571 4 10000875199 3740 4940 120072 4 10000880060 434 636 20273 4 10000880104 256 1274 101874 4 10000880430 360 1044 68475 4 10000880466 652 2156 150476 4 10000880605 1254 1964 71077 4 10000880689 360 720 36078 4 10000880690 720 808 88

221

79 4 10000881379 360 1048 68880 4 10000882177 726 1284 55881 4 10000882180 726 1388 66282 4 10000882283 670 2412 174283 4 10000890329 3456 3564 10884 4 10000890441 182 2472 229085 4 10000890526 7962 442872 43491086 4 10000890527 3046 433892 43084687 4 10000900057 428 628 20088 4 10000900082 184 1330 1146

Total 1,40,074 20,34,819 18,94,745

As per the above information it is ascertained that either the figures in the demand registers were not adopted to online demand or the changes due to revision of demand if any were not taken to manual demand registers. However, adopting higher values in Computers than the Demand registers is resulting higher demand against the actual demand of Property tax. The dependency of GVMC and the assessee’s only on the computerized figures has no sanctity to the figures in the Demand Register. In the absence of a correct and certified DCB it is very difficult to verify and confirm the correctness of the online figures/demand.

Hence, action would need to be taken to verify the reasons for the difference in the demand as per manual Demand Collection Balance and the demand as shown by the computerized data, and exact demand may be arrived at and certified by the Commissioner. The loss caused if any would need to be made good from the person or persons responsible and fact furnished to audit.

(Para No.11 (7) of AR of GVMC for 2009-10)

18(2) GVMC - WATER SUPPLY - AE SECTION 24 AND 28 - DEFECTIVE MAINTENANCE OF REGISTERS-NEEDS RECTIFICATION. During the course of audit for the year 2009-10, as verified from the House Service(Tap) connections register with connected files it is noticed that an amount of Rs.27,93,246/- was collected towards tap connection fee for execution of 1573 connections as detailed below:

Zone – I BPL General Semi Bulk Total Ward

No. No. Amount (Rs.) No. Amount

(Rs.) No. Amount (Rs.) No. Amount

(Rs.) 1 197 36680 56 289100 1 33424 254 3592042 134 19800 65 193600 1 34645 200 2480453 98 9200 100 354800 0 0 198 3640004 86 103200 82 173600 0 0 168 2768005 156 197300 264 556600 1 20100 421 7740006 150 192800 176 372600 6 205797 332 771197

Total 821 558980 743 1940300 9 293966 1573 2793246

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A total amount of Rs.52,61,700/- was collected in Zone-III for sametianing 1062 connections as detailed below.

Zone – III BPL General Semi Bulk Commercial Total Ward

No. No. Amount

(Rs.)

No. Amount (Rs.)

No. Amount (Rs.)

No. Amount (Rs.)

No. Amount (Rs.)

19 22 12700 39 118300 07 460000 - - 64 59100020 53 14600 31 173300 14 910000 - - 98 1097900 21 49 24700 24 86500 07 310000 - - 80 42120022 56 13300 53 204200 - - - - 109 21750023 33 20600 36 169000 03 90000 1 10100 73 28970024 24 15600 74 279600 08 240000 2 43500 108 57870025 43 23000 62 165800 - - - - 108 18880026 85 65100 67 207900 03 90000 1 20000 158 38300027 34 21800 36 162700 05 560000 1 20100 76 76460028 38 13700 29 187800 05 240000 - - 72 44150029 61 52300 36 84700 01 30000 1 30000 99 19700030 12 12200 10 78600 - - - - 22 90800

Total 510 2,89,600 493 19,18,400 53 29,30,000 6 123700 1062 52,61,700

But on verification of House Service Connection registers and Tankers registers the following defects were noticed:

The register was maintained for calendar year instead of financial year. Applications were not recorded in a chronological order. Date of receipt of application, date of execution, category of connection, meter

number and water tax assessment number etc., were not recorded for certain cases. Monthly and annual abstracts in respect of status of disposal of applications and

collection of fee, donation etc., not recorded and certified by the competent authority.

Prescribed proforma not followed. Collection particulars like head wise amount collected, receipt no & date of

collection etc., were not recorded etc.,

In view of the above defects the correctness of applications pending execution as on 1.4.2009, applications received, executed, pending execution as on 31.3.2010, demand of various fee and donations, amount collected and pending collection etc., could not be ascertained in audit. The defective maintenance of registers leads to misappropriations and defalcation of funds. Hence, action would need to be taken to rectify the defects pointed out and produced to audit for verification.

(Para No.11 (14) of AR of GVMC for 2009-10) 18(3) GVMC - VARIATIONS BETWEEN STATEMENT OF RECEIPTS & DCB STATEMENTS FOR THE YEAR 2009-10 – NEEDS RECONCILLIATION

During audit, it is noticed that huge variation of collections of TAX/NON TAX Revenue exhibited in Statement of Receipts and DCBs. Produced for the year 2009-10, as shown hereunder:

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Nature of Receipt Rs.

Receipts vide Statement of

Receipts for 09-10 Rs.

Collection vide DCBs for the year

2009-10 Rs.

Variation Rs.

(+)/(-)

PROPERTY TAX 679060453 691556000 (-)12495547VLT 21400393 22105741 (-)705348ADVT.TAX 32093293 16186212 (-)15907081TAP CHARGES 78429939 85518318 7088379SEMI BULK 7159995 33256156 (-)26096161BULK 688905048 635507703 53397345SHOPS 27700581 24453566 3247015

The above variations reveal that the maintenance of records is very poor and every

care should be taken for rectification and reconciling the figures and fact intimated to audit.

(Para No.11 (20) of AR of GVMC for 2009-10) 18 (4) MC, KURNOOL - POSTING REGISTER NOT MAINTAINED – IRREGULAR As per G.O.Ms.No.42 MA Dt.20.1.1970 the accounts for each month shall be closed in the Posting register during the first week of the succeeding month. Approval of Municipal Corporation has to be obtained for the monthly account. An abstract of monthly account with DCB statement and a certification have to be forwarded by the Commissioner to the Auditor before the end of the succeeding month. All receipts and expenditure will be clarified and entered in this register. The figures entered in the register will be taken into monthly accounts. Similarly, the progressive monthly totals will be taken into annual account. But no such register was maintained by the Municipal Corporation authorities. In the absence of the same the correctness of the account figures could not be verified in audit. Hence the authority concerned should take early and appropriate action to written up and produced the same to audit.


18 (5) MC, GUNTUR - APARTMENT DRAINAGE OUT LET POINT NOT CONNECTED TO MAIN DRAINAGE – WATER STAGNATED – CC DRAIN CONSTRUCTED WITH MUNICIPAL FUNDS – ADMINISTRATIVE SANCTION ACCORDED ON DOUBLE TIME PENALITY – NOT COLLECTED – LOSS TO MUNICIPAL FUNDS – NEEDS RECOVERY. Rs.4,59,346/-

1. Name of the work : Providing CC drain Near Rajyalashmi Towers in S.V.N.Colony extension. Estimate Value : Rs, 1,78,000-00 T.S.No. : 196/2009-10 A.S. : 23/7/2009 Vr.No/Date : 3552/11-09

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During verification of work file for the year 2009-10, it is noticed that a note file was circulated to the executive authority to execute the work “Providing CC drain near Rajyalakshmi Towers” as departmentally on emergency basis duly recovering the cost of the work from the Apartment Owners as the work construction of drain up to out let point from apartment, since there is water (drainage) stagnation near apartment. The executive authority accorded the administrative sanction of the work on double time penality i.e. double the cost of work, as that is total responsibility of the apartment owner, who failed to connect drain of the total apartment to the main drainage point. As such, the estimate was prepared and Technical Sanction accorded and work was taken up departmentally and completed, payment was also made as detailed below from the Municipal Funds. But, the recovery of double time executed work cost was neither noted in the file nor in the M.book, no evidence of recovery was obtained either from T.P. section or Engineering Section. As such, the loss of funds to the Municipal Corporation should be recovered from the person who, failed to collect the amount from the apartment owner or responsible person or persons under intimation to audit.

Total value of the work done (Gross amount) : Rs.1,66,788-00 Deduction : Rs. 16,288-00 ----------------------

SC.3547/- IT.3736/- Vat.6354/- NAC.417/-, Q.C.374/- Net paid : Rs.1,50,500-00

----------------------- To be recovered amount at double: Rs. 1,66,788 X 2 = Rs.3,33,576 -00 2. Name of the work: Providing CC drain 12” T.D. of 9th cross road D.No.1-2-73 in JKC Nagar, in Division No.34

Estimate value : Rs. 68,000-00 T.S. : 207/2009 Vr.No/Date : 3551/11-09 for Rs.56,500-00

Same as previous work, the owner of Apartment failed to connect the out let point to main drainage, the executive authority considered the emergency of the work and it was executed departmentally. But the recovery of double penality amount of “Executed work” was not recovered from the Apartment owner. Early action would need to be taken to get the amount as detailed from the person or persons responsible and remitted the same to the Municipal Corporation Funds. Total value of work done (Gross amount) : Rs. 62,885-00 Deductions : : Rs. 6,395-00

-------------------- Net paid : Rs. 56,490-00

------------------- Double time penality amount to be recovered: 2 X 62885 = Rs. 1,25,770-00

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Total loss of funds to the Municipal Corporation due to non recovery of department executed work amount in stead of executed by the apartment owners. Work 1 - Rs. 3,33,576-00 Work 2 - Rs. 1,25,770-00 ----------------------- Total : Rs.4,59,346-00

----------------------

(Para No.108 of AR of MC, Guntur for 2009-10) 18(6) MC, GUNTUR - REPAIRS TO POLLING STATION – NATURE AND MODE OF REPAIRS, RECORDING IN M.BOOKS AND ITS CHECK MEASUREMENT AND FILES NOT MAINTAINED – EXPENDITURE MET FROM MUNICIPAL FUNDS INSTEAD OF ELECTION FUND – INADMISSIBLE – NEEDS REIMBURSEMENT / RECOVERY. Rs.54,477/- In Lr.Roc.No. 1162/2009/H5/, dt. 17-3-2009, the Collector and District Magistrate requested the Commissioner to carry out the Minor repairs, if so required to the buildings selected as polling stations in Co-ordination with the respective Tahasildars. As such the following polling stations carried out repairs.

1. O/o the Deputy Inspector of Schools, Chowtra P.S. No. 160. 2. Chenchu Aided Upper Primary School, Nallacheruvu PS.No. 207,208.

The Technical Sanction was accorded for Rs.55,000/- and estimates were prepared for Rs. 55,000/-. The nature of repairs and mode of repairs and their recording in Measurement Books and check measurement by the Deputy Executive Engineer were not done. A Invoice slip No. 32/ date Nil of Madhave Associates for purchase of Ist class teak wood for Rs. 32,890/- was the only paper available in the file. Expect this invoice slip (bill), there is no recorded evidence / document to the repairs carried out with a cost of Rs. 54,477/- and paid through the Vr.No.1935/07-2009 to SK. Adam Shareef, Assistant Engineer, which could not be admitted in audit.

Further, the repairs were carried out to the buildings which were notified as polling stations under emergency i.e., repairs were carried out to polling station of General Election with Municipal Funds which was irregular. As the works were taken up for election purpose, the expenditure should be have made from Election funds, but the same was not done, which is irregular and needs reimbursement and hence the amount of Rs.54,477/- should be recovered from the person or persons responsible. Details of the expenditure:

Vr.No. 1935/7-09 : Amount paid Sri SK.Adam Sharif A.E., towards repairs to the building Stature No. 160 O/o the Dy.Inspector Of School at Chowtra and Polling Station No. 207, 208, Chenchu Aided School at Nallacheruvu. : Rs. 54,477/-


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18(7) MC GUNTUR - DATA BASE OF THE RECORDS OF TAXATION – EFFICACY OF THE SOFTWARE.

During the course of audit, it was noticed that the Demand Registers (both current and arrear) of property tax and other tax and non tax revenues were maintained based on the computer generated data. Manual maintenance of the same was dispensed with though there were instructions to maintain the same. The actual demand for the current and arrear years was not certified by the competent authority and produced to audit. Collection of property tax and other revenues is done in many ways like remittance in e-seva, by online remission, payment by way of Cheque or Demand Draft etc., from the tax payers. Whether the software takes care of various ways of collections of taxes was not explained to audit. As seen from the Cheques received register, the corresponding credit entries in the Bank account could not be traced in audit and the amount realized in lump sum on a day is taken to receipt. As seen from the Cash Book, the receipt side of the cash book was not at all maintained. Treasury adjustments, voucher adjustments etc., were not carried out. Registers of appeals, revisions, mutations, writes off, remissions etc., were not maintained and produced to audit. Monthly lists of out door staff whether given effect, if so whether given effect promptly within the time or not were not borne by record and as no manual demand registers were maintained whether all such changes were effected in the demand or not could not be verified in audit.

In the absence of maintenance of subsidiary registers connected with levy, collection of property tax and other taxes and non taxes, whether the demand generated by the computer data base can be taken as authentic and certified demand or not, could not be decided in audit. The Executive Authority therefore would need to look in to the matter and test the efficacy of the software in place and furnish certified demand to audit so as to verify the same.


18(8) GVMC - PROPERTY TAX – DEMAND NOT TAKEN TO DEMAND REGISTER-CERTAIN ASSESSMENTS IN MANUAL DEMAND REGISTERS NOT FORTHCOMING IN COMPUTER/ONLINE – LOSS - NEEDS INVESTIGATION: During the course of audit for the year 2009-10, on cross verification of Demand Registers with Computer generated demand scrolls it is observed that, 1010 assessments in the manual Demand Registers were not reflected in the Demand registers generated in Computer/online. (Details of assessments not taken to computerize demand Registers are mentions in the Original Report issued to the Executive Authority).


227

18(9) GVMC - SHOP ROOMS IN SHOPPING COMPLEX – KEPT VACANT NOT LEASED OUT – LOSS OF REVENUE – NEEDS ACTION.

As verified from the MDR, it is observed that the following shop rooms in various shopping complexes in Zone II were kept vacant without being leased out resulted in loss of revenue. The reasons for not letting out the following shop rooms were not explained in audit. The inaction of the authorities concerned caused huge loss of revenue to institution.

Sl.No. Details of Shopping complex Shop No. Period of vacancy 1 Jagga Rao Bridge 004(ST) 2009-10 2 Jagga Rao Bridge 005(SC) 2009-10 3 Asilmetta (GF )Veterinary doctor 007 2009-10 4 Asilmetta(GF) V. Laxmi Reddy 008 2009-10 5 Asilmetta (GF) 009 2009-10 6 Pithapuram colony 001 2009-10 7 Peda waltair (MR Krishna) 004 2009-10 8 China waltair 005 2009-10 9 China waltair 006 2009-10 10 Pandurangapuram(GF) 002 2009-10 11 Pandurangapuram(GF) 007(ST) 2009-10 12 Pandurangapuram(BF) 007(SC) 2009-10 13 M.V.P.Shopping 003 2009-10 14 M.V.P.Shopping 004 2009-10

The loss of revenue could not be assessed in audit, since no information is furnished by the concerned clerk and no response from the Zonal Commissioner in this regard.


18(10) MC, GUNTUR - WORK ADVANCE – ADJUSTMENT MADE AFTER A LAPSE OF 3 YEARS – ABSTRACT OF THE WORK RECORDED IN M.BOOK AND ADJUSTMENT JOURNAL VOUCHER PREPARED BY A.E. (ADV., RECEIVED AUTHORITY) AFTER LAPSE OF 2 YEARS – E.E. CERTIFIED AFTER 3 YEARS AND CERTAIN DEFECTS – NOT ADMISSIBLE – NEEDS RECOVERY. Rs. 57,508/-

An amount of Rs. 60000/- was drawn as advance through Vr.No. 2106/7-06 and paid to Sri P.Yedukondalu, A.E., G.M.C., Guntur during the year, 2006-07. The adjustment bill of the advance was made through Vr.No.4126/12-09 for Rs. 57,508/- duly paying the balance amount of Rs. 2500/- through challan No. 31786/21-10-2009 during the year, 2009-10 i.e. after lapse of 3 years.

On verification of file and M.book it was noticed that, the advance was given to Sri P.Yedukondalu, Assistant Engineer to provide 210 capacity poclainer at Auto Nagar Dumping Yard. A Measurement Book numbered as 29/2006-07 on the pad of the M.Book with red pencil without an “enfacement entry” of M.Book. The recording of providing 210 capacity proclainer was made at page no. 1 & 2 on 12-7-2006 and the verification certificate was made by Deputy Executive Engineer on 13/7/2006. At page no. 3 the abstract of the bill was recorded on 20/6/2008 i.e. after a lapse of almost 2 years

228

and memo of payment was also prepared on 20-6-2008 and the same was certified by the Deputy Executive Engineer. But the same was transmitted to pre audit vide E.O.A.No. 3478 F/15-12-2009 i.e. after lapse of 1 ½ years.

The adjustment journal voucher was prepared by A.E. II on 20-6-2008, Dy. E.E. signed on 28-10-2009 and the Executive Engineer signed on 03/11/2009. The bill no. 62 was issued by Sri Sai Earth Movers without date, and that was not a stamped receipt. On observation of the entire issue (scenario) i.e., the Measurement Book used without “Certificate” (the stock register of M.Books not produced) and utilized only 5-6 pages for this work only, (all the remaining pages left blank) item of work recorded on 20-7-2006 but abstract of the bill prepared at next page on 20-6-2008 transmitted to pre audit in 12/2009 and pre audited on 15/12/2009. The Firm issued bill without date and no stamped receipt in token of payment. Hence, the adjustment of advance in question seems to be not genuine and the payment made of Rs.57,508/- was a fictious payment. Action would need to be taken to ascertain the facts and loss, if any, occurred due to the above lapse, would need to be recovered from the person responsible. In view of above series of defects and as per articles of Andhra Pradesh Financial Code, the work advance should be adjusted with in 15 days, the amount spent in this regard to a tune of Rs. 57,508/- cannot be admitted in audit and needs recovery from the person or persons responsible, besides taking action as deemed fit under intimation to audit.

Bill issued by: Sai Earth Movers, No.62/ date Nil, No stamp receipt. Hire charges of 210 capacity poclainer including driver charges (Rs.)

Totla hours 1248 x 48 59904Deducted Vat @ 4% 2396Net paid 57508

(Para No. 105 of AR of MC, Guntur for 2009-10)

18(11) 1. VERIFIED FOBS NOT FURNISHED IN ALL CORPORATIONS: The OBs of the respective G.L. accounts were drawn from the OBs provided in the FOBS furnished to audit. The said FOBS was verified and certain material deviations from the instructions envisaged in the APMAM, and instances of under/over stating of value of assets and non-identification of assets etc., were pointed out and communicated to the Executive Authority for rectification. But the said FOBS was not returned duly rectifying the defects pointed out or existed in the FOBS. The annual account for the year 2009-10 furnished was prepared with the OBs as arrived at in the FOBs. Thus, adopting of uncorrected OBs rendered the annual account for the year 2009-10 not reliable and cannot be held to reflect the true and fair view of the transactions of the accounting period. In view of the non rectification/ remedying the defects pointed out in FOBS issued to the Municipal Corporation vide letter SA No.6, dated: 08-05-2012 persisted in the final accounts and as such the defects already pointed out may be read as part and parcel of this audit report. However the same are also abstracted here under for the sake of convenience.

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2. GENERAL OBSERVATIONS: 1. Chapter-10 of AP Municipal Accounts Manual, envisaged certain guidelines to be followed while preparing the formats for the Assets and Liabilities. Contrary to the said guidelines certain inconsistencies/ irregularities have been noticed during verification. The following are some of such instances.

As per guideline 10.6 a Steering Committee comprising of City Engineer and Head of Town Planning Section, Head of Accounts Section and Head of Pre Audit Section shall be responsible for coordinating the task of collecting information for each of the categories of the fixed Assets. But no evidence is put forth to audit in support of formation/constitution of any such committee. The said guideline further envisaged that separate teams may also be formed in respect of Assets like Land, Building, Roads, Streets and Lanes, Bridges, Culverts, flyovers etc., Furniture’s etc., consisting of some officials as compulsory members in the said teams who shall collect information under the overall supervision of the Steering Committee and it was mandated that the information gathered should be signed by the members of the team concerned and authenticated by the members of the Steering Committee.

The Executive Authority failed to satisfy the instructions on the formation of the

said committees and authentication of the information by the said committees if formed and as such there was no assurance to audit that manual instructions have been followed in as much as constitution of committees is concerned and in the absence of authenticated information the overall correctness of the information provided in the FOBS cannot be held to be 100% correct and omission of any Asset/Liabilities cannot be excluded. 2. The information collated during physical verification relating to the Assets and Liabilities under various formats should be cross verified with the existing records maintained for the said Assets and Liabilities as per Para No.10.9.1 of the manual. But in general the information appears to have been collected and collated by obtaining information orally from the officials of the Municipal Corporation and there was no basic record to cross verify the correctness of the information provided. As a result many inconsistencies crept into the FOBS (which are discussed at appropriate place) distorting the correctness of the Assets and Liabilities and their valuation. 3. The Municipal Corporation could not provide the Title Deeds of various Assets in respect of all or majority of the Assets which shows the poor or lack of interest on the part of the ULBs in preserving the most important documents. In respect of movable Assets the proof of purchase in the form of bills, invoices etc., were not produced in support of the purchase and valuation of such Assets during verification. The valuation of Assets and allowing depreciation on the Assets in the absence of proper record could not be held to be fool proof. 4. As per Para No. 10.9.1 and 10.9.2 of AP Municipal Asset Manual the details like ‘source of finance for the acquisition of the Asset’, ‘any restriction/covenants on the transfer of the Asset’, ‘pending litigation in respect of fixed Asset’ and ‘any un authorized use or encroachment on the fixed Assets’ are to be specified in the remarks column. No such specification was forthcoming even in respect of a single fixed or movable Asset.

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5. Composite Assets which comprises of several types of assets like lands, buildings, play equipment, roads, footpaths etc., have to be capitalized under respective Asset Heads. But observance of manual instructions on composite assets was found to be deficient. This may lead to irregularities in calculation of depreciation when all the assets are taken in one form. 6. Assets acquired after 01.04.2009 were included in respective forms casting a doubt on the correctness of preparation of FOBS. 7. Asset reference number denoting any numbering/marking given to each piece of asset intended to identify any asset readily and to trace the movement or transfer of asset from one section to another and log the installation of asset, was not given and in each of the form instead of giving asset reference number under relevant column only the number of assets were quantified. 8. The formats as prescribed by the AP Municipal Accounts Manual were not adopted as provided in some cases. Hence, there is a need to adopt the forms as provided in Chapter 10 of the said manual. 9. The rates of depreciation for various types of assets as provided in the AP Municipal Asset Valuation Methodology Manual in Annexure-3 were not adopted scrupulously while calculating depreciation. 10. Charging of depreciation on the use of assets beyond 6 months in a year would lead to full year’s depreciation and use of assets less than 6 months to half year’s depreciation. But, the rationale was not adopted as per manual instructions in many cases. 11. Assets recently acquired/purchased for instance in the years 2006-07 etc., were also valued at nominal value of rupee one. It appears the ULB has not made significant efforts in locating the title deeds/purchase bills or invoices before valuing them at nominal cost. 12. Instances of arithmetical inaccuracies were noticed in more than one form and on many an occasion. 13. As per the instructions contained in Para No. 2.10 of AP Municipal Asset Valuation Methodology Manual proper classification of fixed assets employing a code for each asset has to be undertaken to facilitate computerization of fixed assets management system and to make a wide variety of reports. But, no such codification of assets was done resulting in non observance of manual instructions. 14. Annexure-1 of AP Municipal Asset Valuation Methodology Manual at Para No. 7 mandates that after OBS is prepared it shall be placed before the Standing Committee in case of Municipal Corporation or Council in case of Municipality and get its approval for adoption. This was not followed. 15. While valuing Buildings and other assets of the ULB whether the current standard cost rate method has been followed duly adopting the index for deflating cost as provided in Annexure-4 of AP Municipal Asset Valuation Methodology Manual, or not has not been explained explicitly during verification. In the absence of the same there is no

231

assurance in audit that the ULB has followed the manual instructions in this regard while valuing assets. 16. Assets not specifically covered in any of the form are to be identified as ‘other fixed assets’ they may include intangible assets such as software, rights, goodwill etc. And assets like traffic signals, statues and monuments, works of art and history minor movable assets etc., were to be capitalized under separate heads classified in other assets. But, no proof of observance of this mandate is forthcoming during verification. 17. The AP Municipal Asset Management Manual, described that at the preliminary stage for collection of base data regarding the assets owned by the ULB certain registers have to be verified specified there in. But, the fulfilment of this obligation was not pointed out to audit and no proof of verifying those registers was forth coming in audit. 18. The units of measurement were not noted in many of the forms and as such it was difficult to verify the same in audit.

19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES ETC.

RECEIVED BUT NOT REALIZED WITHIN TIME Demand Drafts and Cheques received in payment of money due to the Municipal Corporations are to be entered in a Register of Demand Drafts and Cheques Received and should be sent to the Banks for realization immediately. In the fallowing cases Demand Drafts received were kept in the files and some of the Demand Drafts were sent to the issuing Banks for revalidation as they became invalid 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 cases involving an amount of Rs.74.00 lakhs, pointed out in the audit for the year 2009-10 is appended as Annexure 9(3).

HYDERABAD DATE 01-03-2013

DIRECTOR STAE AUDIT

A.P., HYDERABAD


SECTION - II


AUDIT COMPLETED AS

ON 31-12-2012


16 7 9

STATEMENT SHOWING STATUS OF AUDIT OF MUNICIPAL CORPORATIONS FOR THE YEAR 2009-10 AS ON 31.12.2012

STATEMENT No.1

232

No. Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value

1 GVMC 47 4751.55 1446 8857.01 1402 20257.59 286 3772.82 698 21720.47 1968 4705.58 410 2541.20 10 0.00

2 Kakinada 291 0.00 92 4156.62 44 9062.36 928 135.85 1960 900.90 759 238.33 53 136.77 6 0.00

3 Guntur 277 0.00 301 1719.53 3393 17326.93 1973 1001.00 3009 4318.54 2568 1960.14 261 76.26 10 0.00

4 Nellore 130 0.00 7 58.18 3166 1602.77 74 658.64 2907 1126.26 2664 111.41 203 44.10 0 0.00

5 Anantapur 369 0.00 98 62.30 1859 756.11 533 1232.08 2253 1213.83 1392 1041.39 163 118.91 0 0.00

6 Kurnool 422 0.00 122 510.61 2936 2094.38 33 3790.53 3756 861.58 2986 88.25 596 13.68 0 0.00

Total 1536 4751.56 2066 15364.24 12800 51100.13 3827 10590.91 14583 30141.58 12337 8145.11 1686 2930.91 26 0.00

Water Works(Form.6)

Roads(Form.3)

Culverts(Form.4)

Drains(Form.5)

Sl. No.

Name of the Municipal

Corporation

Land(Form.1)

Building(Frorm.2)

Lightings(Form.7)

Lakes & Ponds

(Form.8)

Rs. In Lakhs

OPENING BALANCE SHEET OF MUNICIPAL CORPORATIONS (EXCEPT GHMC) FOR THE YEAR 2009-10

STATEMENT No.2 (1)

Page 233

No. Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value

1 GVMC 17 46790.39 2 0.00 174 431.97 527 91.04 697 99.93 0 0.00 0 0.00 108 10375.23

2 Kakinada 11 30.37 42 68.60 39 121.50 87 19.23 29 3.67 13 14.66 0 0.00 67 1186.51

3 Guntur 21 88.45 10 94.64 56 232.54 47 48.98 26 25.16 13 0.61 0 0.00 5 97.97

4 Nellore 0 0.00 5 42.35 21 64.65 16 0.04 0 0.00 0 0.00 0 0.00 0 0.00

5 Anantapur 0 0.00 5 9.98 14 83.47 223 9.76 12 0.00 15 20.77 0 0.00 0 0.00

6 Kurnool 19 174.73 153 137.02 44 169.80 52 0.16 20 1.64 26 5.44 0 0.00 118 1943.02

Total 68 47083.94 217 352.58 348 1103.93 952 169.21 784 130.41 67 41.48 0 0 298 13602.74

Capital Works (Form.9)

Plant Machinery (Form.10)Sl.

No.


Corporation

Vechiles (Form.11)

Furniture (Form.12)

Office Equipment(Form.13)

Live Stock (Form.15)

Investments (Form.16)

Other Equipment (Form.14)

Rs. In Lakhs

STATEMENT No.2 (2)


Page 234

Others

(18)

Cash(Form.17)

Banking Opening

(Form.18)

Value Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value

1 GVMC 0.00 5711.33 2 6363.66 32 324.16 0 0.00 0 0.00 0 0.00 0 0.00 7826 131082.58

2 Kakinada 63.12 860.94 0 0.00 226 127.09 4 2015.03 2 6.00 69 31.97 2 1.92 4724 18257.38

3 Guntur 53.80 4301.53 0.00 933 179.33 8 2966.27 4 49.37 145 426.54 0 0.00 13060 30612.28

4 Nellore 44.59 778.28 0 0.00 60 206.93 8 1675.86 0 0.00 10 9.65 0 0.00 9271 5600.84

5 Anantapur 0.00 896.08 0 0.00 9 46.72 5 784.40 0 0.00 90 8.59 0 0.00 7040 5388.31

6 Kurnool 107.72 788.28 6 14.22 33 11.94 6 1015.58 5 80.09 36 15.82 5 0.31 11374 10928.82

Total 269.23 13336.43 8 6377.89 1293 896.18 31 8457.15 11 135.46 350 492.57 7 2.23 53295 201870.22

Inventory (Form.23)

Sl. No.


Corporation

Advances to Suppliers (Form.19)

Loans Advance(Form.

20)

Total (Assets)

Receivables(Form.21)

Grants Receivables (Form.22)

Depoits(Form.24)

STATEMENT No.2 (3)


Rs. In Lakhs

Page 235

No. Value No. Value No. Value No. Value No. Value No. Value

1 GVMC 0 0.00 16 2216.55 0 0.00 3458 354.44 20 5574.99 3494 8145.98

2 Kakinada 0 0.00 25 227.25 0 0.00 6799 1314.79 138 175.11 6962 1717.16

3 Guntur 2 477.12 2 25.00 2 227.43 62 11.39 184 338.36 252 1079.30

4 Nellore 0 0.00 15 322.26 0 0.00 5490 249.28 32 123.44 5537 694.98

5 Anantapur 5 394.89 24 226.96 0 0.00 4 91.55 255 497.47 288 1210.87

6 Kurnool 4 642.42 0 0.00 1 10447.01 2568 96.26 323 289.54 2896 11475.22

Total 11 1514.43 82 3018.02 3 10674.43 18381 2117.71 952 6998.91 19429 24323.50

Total (Liabilities)

Loan Payable (Form.25)

Unutilised Grants (Form.26)

Reserve Fund (Form.27)

Depoits Received(Form.28)

Sl. No.


Corporation

STATEMENT No.2 (4)


Rs. In Lakhs

Bills Payable (Form.29)

Page 236

Sl.No.


Corporation

Tax Revenue

(110)

Assigned Revenues

and Compensati

Rental Income from

Municipal Properties

Fees and User Charges

(140)

Sale and Hire

Charges(150)

Revenue Grants

Contribution and Subsidies

Income from Investments

(170)

Interest Earned (171)

Other Income(180)

Total (Revenue)

1 GVMC 2020.41 2643.03 0.01 893.13 6.78 1041.00 595.20 0.00 2.01 7201.57

2 Kakinada 1952.20 377.54 89.24 553.27 3.27 100.77 64.47 29.00 112.46 3282.21

3 Guntur 3305.38 1086.11 195.58 2592.70 17.69 9.68 6.40 0.71 2347.19 9561.45

4 Nellore 1417.07 441.21 0.00 1010.79 0.00 7.12 0.00 38.06 733.78 3648.04

5 Ananthapur 1163.26 160.26 125.25 205.86 4.63 83.51 0.00 55.62 29.22 1827.62

6 Kurnool 1344.46 339.51 133.38 327.35 0.00 79.19 0.00 10.02 372.20 2606.12

7 GHMC 47616.73 16805.76 934.97 29379.51 307.64 5428.50 3236.26 0.00 887.94 104597.31

Total 58819.51 21853.43 1478.45 34962.60 340.01 6749.78 3902.32 133.40 4484.81 132724.31

STATEMENT No. 3 (1)

Statement showing the Headwise Revenue Receipts of Municipal Corporations for the year 2009-2010

Rs. In Lakhs

Page 237

Sl.No.


Corporation

Municipal Fund(310)

Earmarked Funds(311)

Reserves(312)

Grants Contribution for specific purposes

Secured Loans(330)

Unsecured Loans(331)

Deposits Received

(340)

Deposit works(341)

Other Liabilities

(350)

Provisions

(360)

Total (Capital)

Grand Total (Revenue +Capital)

1 GVMC 0.00 0.00 0.00 33440.60 -1950.00 0.00 1787.38 45.10 4550.91 0.00 37874.00 45075.57

2 Kakinada 0.00 -0.90 0.00 1393.36 0.00 0.00 -10.19 0.00 244.42 0.00 1626.69 4908.90

3 Guntur 0.00 0.00 0.00 -1992.75 0.00 0.00 8.52 0.00 268.33 0.00 -1715.90 7845.55

4 Nellore -0.09 100.42 0.00 1762.29 0.00 0.00 54.59 0.00 -76.81 0.00 1840.39 5488.43

5 Ananthapur 0.00 -107.98 0.00 448.76 0.00 0.00 15.45 0.00 20.36 0.00 376.58 2204.20

6 Kurnool 0.00 592.20 0.00 4436.82 0.36 0.00 10.42 0.00 98.68 0.00 5138.49 7744.61

7 GHMC 0.00 0.00 0.00 39525.90 0.00 0.00 0.00 0.00 0.00 0.00 39525.90 144123.21

Total -0.09 583.73 0.00 79014.98 -1949.64 0.00 1866.17 45.10 5105.90 0.00 84666.16 217390.47

STATEMENT No. 3 (2)

Statement showing the Headwise Capital Receipts of Municipal Corporations for the year 2009-2010

Rs. In Lakhs

Page 238

Sl.No.


Corporation

Establishment

Expenses(210)

Administrative

Expenses(220)

Operations and

Maintenance(230)

Interest and

Finance Charges

(240)

Programme Expenses

(250)

Revenue Grants

Contribution and

Subsidies(260)

Provisions and Write

off(270)

Miscellaneous

Expenses(271)

Depreciation

(272)

Prior Period Item(280)

Transfer to Reserve Funds(290)

Total (Revenue)

1 GVMC 8354.63 774.44 9124.66 1117.05 268.54 0.00 0.00 0.00 0.00 22.31 0.00 19661.62

2 Kakinada 469.11 373.90 889.06 1.62 3.97 5.83 0.22 0.21 2.66 0.00 0.00 1746.57

3 Guntur 2051.87 1267.62 794.52 25.85 20.35 0.00 1.93 0.00 0.00 300.93 0.00 4463.08

4 Nellore 1034.79 467.37 657.26 0.83 35.56 33.13 0.00 0.42 0.00 73.67 0.00 2303.02

5 Ananthapur 333.32 611.13 157.30 0.33 18.58 0.00 -26.10 0.00 0.00 0.00 0.00 1094.56

6 Kurnool 1179.10 308.36 2001.34 0.22 13.33 1.16 0.00 20.00 0.00 79.05 0.00 3602.56

7 GHMC 27073.22 1960.23 48458.44 4136.69 3427.83 0.00 0.00 0.00 0.00 0.00 0.00 85056.41

Total 40496.03 5763.04 62082.58 5282.60 3788.16 40.13 -23.95 20.62 2.66 475.96 0.00 117927.82

Rs. In Lakhs

Statement showing the Headwise Revenue Payments of Municipal Corporations for the year 2009-2010

STATEMENT No. 4 (1)

Page 239

Sl.No.


Corporation

Fixed Assets(410)

Accumulated

Depreciation

(411)

Capital Work-In-Progress

(412)

Investments-General

Fund(420)

Investments-Other

Funds(421)

Stock-in-hand(430)

Sundry Debtors

(Receivables)(431)

Accumulated

Provisions against Debtors

(Receivables)

(432)

Pre-paid Expense

s(440)

Cash and Bank

balance(450)

Loans Advances

and Deposits

(460)

Accumulated

Provisions against Loans

Advances and

Deposits(461)

Other Assets (470)

Miscellaneous

Expenditure to be written

off(480)

Total(Capital)

Grand Total(Revenue +

Capital)

1 GVMC 0.00 0.00 44512.71 -169.78 0.00 0.00 -21560.28 0.00 0.00 0.00 -46.26 0.00 234.68 0.00 22971.07 42632.69

2 Kakinada 1618.75 0.00 273.55 480.00 -0.16 0.00 0.00 0.00 0.00 0.00 124.10 0.00 0.00 0.00 2496.24 4242.81

3 Guntur 1939.15 0.00 15.59 0.00 1225.00 0.00 0.93 0.00 0.00 0.00 299.76 0.00 74.13 0.00 3554.56 8017.64

4 Nellore 1729.98 0.00 95.74 0.00 162.12 0.00 0.00 0.00 0.00 0.00 53.44 0.00 4.37 0.00 2045.65 4348.68

5 Ananthapur 416.37 0.00 13.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 91.97 0.00 0.00 0.00 521.63 1616.20

6 Kurnool 36.53 0.00 -158.97 60.54 3753.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3691.35 7293.91

7 GHMC 49785.32 0.00 0.00 0.00 0.00 188.70 3364.62 0.00 0.00 0.00 1176.36 0.00 0.00 0.00 54515.00 139571.41

Total 55526.10 0.00 44751.90 370.76 5140.21 188.70 -18194.73 0.00 0.00 0.00 1699.37 0.00 313.19 0.00 89795.50 207723.33

Rs. In Lakhs

Statement showing the Headwise Capital Payments of Municipal Corporations for the year 2009-2010

STATEMENT No. 4 (2)

Page 240

Sl.No.


Corporation

Tax Revenue

(110)

Assigned Revenues

and Compensati

ons(120)

Rental Income from


(130)

Fees and User

Charges (140)

Sale and Hire

Charges (150)

Revenue Grants


(160)


(170)


Other Income

(180)Total

1 GVMC 11436.10 2643.03 472.30 13693.70 60.75 1041.00 595.20 257.35 3213.64 33413.06

2 Kakinada 2102.93 377.54 105.10 538.56 3.27 100.77 64.47 29.00 112.46 3434.10

3 Guntur 3429.41 1086.11 233.08 1724.97 17.69 9.68 20.95 3.91 806.88 7332.69

4 Nellore 1770.37 0.00 75.66 1575.83 24.72 63.38 8.85 38.06 2.84 3559.72

5 Ananthapur 1028.34 160.26 78.13 214.80 6.93 83.51 0.00 20.82 4.72 1597.52

6 Kurnool 1787.31 339.51 216.16 361.51 0.00 79.19 309.69 10.02 372.20 3475.60

7 GHMC 46622.65 16832.64 926.30 24675.06 297.76 5737.62 3236.03 4297.44 877.71 103503.21

Total 68177.11 21439.09 2106.73 42784.44 411.12 7115.16 4235.19 4656.59 5390.46 156315.90

Statement showing the Headwise Income of Muncipal Corporations for the year 2009-2010

Rs. In Lakhs

STATEMENT No. 5

Page 241

Sl.No.


Corporation

Establishment

Expenses(210)

Administrative

Expenses (220)

Operations and

Maintenance

(230)

Interest and

Finance Charges

(240)

Programme Expenses

(250)

Revenue Grants

Contribution and

Subsidies(260)


off(270)

Miscellaneous

Expenses(271)

Depreciation

(272)


Transfer to

Reserve Funds(290)

Total

1 GVMC 8445.95 919.68 11898.84 1123.38 185.54 0.00 0.00 0.00 6273.57 0.00 0.00 28846.95

2 Kakinada 481.56 411.01 904.62 1.62 4.45 5.83 0.00 0.00 1437.70 0.89 0.00 3247.70

3 Guntur 942.77 1202.63 1246.17 44.56 20.35 0.00 0.00 0.00 6569.22 0.00 0.00 10025.70

4 Nellore 1024.45 466.14 564.94 0.83 28.66 -210.92 0.00 0.42 845.01 73.67 0.00 2793.21

5 Ananthapur 334.39 616.13 171.30 0.33 18.58 0.00 0.00 0.00 640.00 0.00 0.00 1780.73

6 Kurnool 1179.21 307.54 2007.42 0.22 13.33 1.16 0.00 20.00 775.69 79.05 0.00 4383.62

7 GHMC 26916.36 1855.53 49363.12 4136.82 3348.34 0.00 0.29 0.00 22107.67 0.00 0.00 107728.13

Total 39324.69 5778.67 66156.41 5307.77 3619.26 -203.92 0.29 20.42 38648.86 153.61 0.00 158806.05

Rs. In Lakhs

STATEMENT No. 6

Statement showing the Headwise Expenditure of Muncipal Corporatoins for the year 2009-2010

242

Sl.No.


Corporation

Fixed Assets(410)

Accumulated Depreciation

(411)


(412)

Investments-General Fund

(420)

Investments-Other Funds

(421)

Stock-in- hand(430)

Sundry Debtors

(Receivables)(431)

Accumulated Provisions

against Debtors

(Receivables)(432)

1 GVMC 129988.25 -64143.97 86032.10 4625.06 0.00 0.00 20924.50 0.00

2 Kakinada 42380.78 -26855.87 47.68 1666.51 -0.16 31.97 2171.29 0.00

3 Guntur 61974.45 -39162.58 0.00 0.00 1172.12 0.00 3197.65 0.00

4 Nellore 16376.40 -11783.14 95.74 0.00 294.57 0.00 1787.60 0.00

5 Anantapur 4413.45 0.00 0.85 0.00 0.00 8.59 552.00 0.00

6 Kurnool 16991.22 -10230.98 -164.28 2088.06 3978.44 15.95 1649.26 0.00

7 GHMC 54454.79 -22107.67 0.00 212.50 755.40 176.06 13436.29 0.00

Total 326579.35 -174284.20 86012.08 8592.14 6200.37 232.57 43718.59 0.00

Rs. In Lakhs

STATEMENT No. 7 (1)

Statement showing the Headwise Assets (Balance Sheet) of Municipal Corporations as on 31.03.2010

Page 243

Sl.No.


Corporation

Pre-paid Expenses(440)

Cash and Bank balance

(450)

Loans Advances and Deposits

(460)


against Loans Advances and

Deposits(461)

Other Assets (470)

Miscellaneous Expenditure to be

written off(480)

Total

1 GVMC 0.00 13722.92 4181.65 0.00 234.68 0.00 195566.21

2 Kakinada 0.00 1590.15 221.35 0.00 0.00 0.00 21255.71

3 Guntur 0.00 4129.44 584.11 0.00 74.13 0.00 31972.31

4 Nellore 0.00 1962.63 260.37 0.00 4.37 0.00 9002.54

5 Anantapur 0.00 1484.08 52.90 0.00 0.00 0.00 6516.86

6 Kurnool 0.00 1346.69 114.22 0.00 0.00 0.00 15794.59

7 GHMC 0.00 11003.99 2085.53 0.00 0.00 0.00 60023.89

Total 0.00 35239.90 7500.13 0.00 313.19 0.00 340104.12

Rs. In Lakhs

Statement showing the Headwise Assets (Balance Sheet) of Municipal Corporations as on 31.03.2010

STATEMENT No. 7 (2)

Page 244

Sl.No.


Corporation

Municipal Fund (310)

Earmarked Funds (311)

Reserves(312)


(320)

Secured Loans(330)

Unsecured Loans

(331)

Deposits Received

(340)

Deposit works(341)

Other Liabilities

(350)

Provisions(360) Total

1 GVMC 139255.97 0.00 0.00 33936.89 9927.16 0.00 2524.17 48.60 9872.41 0.00 195565.21

2 Kakinada 17650.68 0.53 0.00 1619.13 0.00 0.00 346.33 0.00 1637.04 0.00 21253.71

3 Guntur 31141.50 0.00 220.43 -471.01 443.20 33.92 57.80 0.00 543.48 0.00 31969.31

4 Nellore 7385.37 28.11 0.00 1052.25 0.00 0.00 303.91 0.00 228.91 0.00 8998.54

5 Anantapur 5302.02 5.36 0.00 652.29 0.00 394.89 107.83 0.00 49.46 0.00 6511.86

6 Kurnool 9620.55 592.20 0.00 4436.82 0.36 642.42 106.68 0.00 389.56 0.00 15788.59

7 GHMC 0.00 0.00 0.00 42417.92 1915.46 6969.78 15602.42 0.00 46186.23 2922.18 116013.99

Total 210356.08 626.20 220.43 83644.30 12286.19 8041.01 19049.14 48.60 58907.10 2922.18 396101.22

Statement showing the Headwise Liabilities (Balance Sheet) of Municipal Corporations as on 31.03.2010

Rs. In Lakhs

STATEMENT No. 8

245

Sl. No. NAME OF THE CATEGORY No. AMOUNT

1 Variation in Account Figures 8 95.552 Excess Utilisation of Grants / Funds 10 0.003 Diversion of Grants / Funds 0 0.004 Non-utilisation of grants before the lapsable date 0 0.005 Mis-utilisation of Grants / Funds 2 0.006 Non- utilisation of Earmarked Funds 7 0.007 Non-collection of dues 228 19651.668 Advances pending adjsutemnt 18 217.989 Violation of Rules 291 915.50

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 31 1681.24

11 Non Production of Records 400 9018.7312 Mis-appropriations 17 2.4013 Excess Payments 48 59.2514 Wasteful Expenditure 3 1.36

15 Instances of cases of unaccounted for cash / stores 2 0.03

16 Pendency of Utilisation Certificates 3 0.0017 Surcharges Certificates- Recovery Pending 1 0.1718 Others 237 3042.23

19 D.D. Cheques received but not realised with in time 2 74.00

Total: 1308 34760.11

STATEMENT No. 9

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR

THE YEAR 2009-10

Rs. In lakhs.

246

No Amount No Amount No Amount No Amount No Amount No Amount No Amount

1 GVMC 1 0.00 4 0.00 0 0.00 0 0.00 0 0.00 0 0.00 115 18901.75

2 Kakinada 1 0.47 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 14 4.98

3 Guntur 0 0.00 2 0.00 0 0.00 0 0.00 0 0.00 1 0.00 9 342.86

4 Nellore 0 0.00 2 0.00 0 0.00 0 0.00 0 0.00 1 0.00 7 166.44

5 Anantapur 0 0.00 2 0.00 0 0.00 0 0.00 0 0.00 0 0.00 7 3.60

6 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 9 109.12

7 GHMC 6 95.08 0 0.00 0 0.00 0 0.00 2 0.00 5 0.00 67 122.90

Total 8 95.55 10 0.00 0 0.00 0 0.00 2 0.00 7 0.00 228 19651.66

Variation in Account Figures (1)

Excess Utilisation of Grants / Funds (2)

Diversion of Grants / Funds (3)

Non-utilisation of grants before the lapsable date (4)S.No.

Mis-utilisation of Grants / Funds (5)

Non- utilisation of Earmarked Funds

(6)

Non-collection of dues (7)


Corporation

STATEMENT No. 9 (1)

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED MUNICIPAL CORPORATIONS WISE AND CATEGORY WISE AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Page 247

No Amount No Amount No Amount No Amount No Amount No Amount

1 GVMC 0 0.00 51 12.09 2 809.75 36 817.41 0 0.00 0 0.00

6 Kakinada 2 15.00 30 46.17 8 64.04 42 1724.36 0 0.00 7 0.95

3 Guntur 0 0.00 18 4.84 3 210.98 44 2275.66 0 0.00 22 36.48

7 Nellore 1 122.75 22 1.26 3 5.72 60 1766.19 0 0.00 0 0.00

4 Anantapur 4 17.32 25 12.74 0 0.00 60 306.37 0 0.00 1 1.50

5 Kurnool 2 13.06 11 147.15 1 0.00 17 164.72 1 0.36 3 13.36

2 GHMC 9 49.85 134 691.26 14 590.75 141 1964.02 16 2.04 15 6.97

Total 18 217.98 291 915.50 31 1681.24 400 9018.73 17 2.40 48 59.25

Advances pending

adjsutemnt (8)S.NoName of the Municipal

Corporation


STATEMENT No. 9 (2)

Violation of Rules(9)

Non remittance of deductions (10)

Mis-appropriations(12)

Excess Payments(13)

Non Production of Records (11)

Page 248

No Amount No Amount No Amount No Amount No Amount No Amount No Amount

1 GVMC 0 0.00 1 0.02 0 0.00 0 0.00 33 2341.79 2 74.00 245 22956.80

6 Kakinada 1 0.15 0 0.00 0 0.00 0 0.00 6 0.00 0 0.00 111 1856.12

3 Guntur 0 0.00 1 0.02 1 0.00 0 0.00 54 45.31 0 0.00 155 2916.15

7 Nellore 0 0.00 0 0.00 1 0.00 0 0.00 22 0.00 0 0.00 119 2062.38

4 Anantapur 0 0.00 0 0.00 0 0.00 0 0.00 8 0.00 0 0.00 107 341.53

5 Kurnool 1 0.71 0 0.00 1 0.00 0 0.00 32 622.52 0 0.00 78 1071.00

2 GHMC 1 0.50 0 0.00 0 0.00 1 0.17 82 32.60 0 0.00 493 3556.14

Total 3 1.36 2 0.03 3 0.00 1 0.17 237 3042.23 2 74.00 1308 34760.11

S.No

STATEMENT No. 9 (3)


Others(18)

D.D. Cheques received but not realised with in

time(19)

Total

Surcharges Certificates-

Recovery Pending(17)

Wasteful Expenditure

(14)

Instances of cases of unaccounted for

cash / stores(15)

Pendency of Utilisation Certificates

(16)


Corporation

Page 249

PART - III



PART – III


MUNICIPALITIES FOR

THE YEAR 2009-10

DIRECTOR OF STATE AUDITA.P., HYDERABAD.

PART – III

SECTION - I

Sl. No.

DESCRIPTIONPAGE

No.1 Introduction 250-2562 A few Selected Audit Objections – Category wise 257-310

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2009-10 OF MUNICIPALITIES

PAGE No.

1 Status of Audit of Municipalities (District wise) 311

2Opening Balance Sheets of Municipalities

(District wise & Head Wise).312-315

3 & 4Receipts and Payments of Municipalities.


5 & 6Income & Expenditure of Municipalities


7 & 8Assets & Liabilities of Municipalities


9 No. of Audit Objections raised (District wise & Category wise) and Amount involved in respect of Municipalities.

325-328

CONTENTS

SECTION - I

250

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF MUNICIPAL COUNCILS FOR THE YEAR 2009-10

INTRODUCTION

1.1 Under A.P. 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 appended to the said Act. By virtue of this statutory 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.

1.2 The Department has got Zonal Offices at 6 places and District Offices in all the Districts. The Regional Deputy Directors head the Zonal Offices, and the District Audit Officer, State Audit heads the District Offices.

1.3 The Department conducts post audit of the Municipalities and Audit Reports consisting of defects noticed in audit are being issued to the Commissioners of the Municipal Council concerned who in turn has to take action for rectifying the defects pointed out in the Audit Report.

1.4 Under A.P. State Audit Act,1989 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 therefor, the amount of any deficiency, loss or unprofitable out lay occasioned by the negligence or misconduct of that person or of any such sum which ought to have been accounted for but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

SCOPE OF AUDIT

2.1 The State Audit Department being one of the limbs of Government of Andhra

Pradesh verifies the following aspects during the course of post audit on the accounts of Municipal councils.

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 Municipal Council 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 the funds are utilized only for the permitted and prescribed purposes under the A.P. Municipalities Act, 1965 Act / Rules.

Whether the procedure prescribed by Government in incurring the expenditure or payments made is properly followed and accounted for with due classification in the books of accounts of the Municipal Council.

Whether vouchers for the expenditure incurred were maintained Whether grants received from different sources were properly accounted for and

251

utilized for the purposes for which they were meant for. 2.2 The ULBs in Andhra Pradesh have been maintaining and producing the accounts

to the Audit Department in Single Entry System up to 2008-09.

The XIII Finance Commission has stipulated 9 conditions to be fulfilled by the State Government, one of which (condition No.1.b.), is that Urban Local Bodies shall maintain accounts in Accrual Based Accounting System, consistent with the Accounting format and codification pattern suggested in the National Municipal Accounts Manual.

This key Urban Reform was also recommended earlier, by previous Finance Commissions as well as the Second Administrative Reforms Commission and is a mandated Urban Local Body reform under Government of India flagship program, JNNURM. In fact, it was, basing upon the recommendation of the Eleventh Finance Commission, the Government of India (GoI), in 2001, issued guidelines to Comptroller & Auditor General of India (CAG) to prescribe certain formats for Urban Local Bodies, amenable to computerization. In September, 2004, the National Municipal Accounting Manual (NMAM) developed by CAG, was made available to all State Governments, including Andhra Pradesh for necessary adoption.

The Government of Andhra Pradesh, as part of the above initiative, has issued orders in GO Ms No. 233 MA & UD Department, dated 22.05.2002, with instructions to all the Urban Local Bodies / Corporations to adopt, with immediate effect the Accrual Based Accounting System within their jurisdiction. Further in G.O. Ms. No. 619 MA & UD Department, 21.08.2007, the Government (GOAP), directed all the ULBs in the State to implement the A.P. Municipal Accounting Manual (Double Entry Accrual Based Accounting System) which has been adopted by the State Government, from NMAM, with the help of Centre for Good Governance (CGG).

2.3 The Commissioner and Director of Municipal Administration got migrated the accounts maintained in Single entry in to Double Entry Accrual Based Accounting System through reputed chartered Accountant firms using Software developed by the CGG as permitted by the Government vide GO.Rt.No.287 MA&UD (R) Dept, Dt.21-02-2011 in 123 ULBs leaving the GHMC, whereas, the GHMC introduced modified Double Entry Accrual Based Accounting System of Accounting from the Financial Year 2002-03. But, while migrating, the procedure prescribed in APMAM was not followed fully. The observations made during verification of Annual Account in DEABAS are incorporated in the reports issued to the Municipal Commissioners for rectification.

GRANTS RECEIVED DURING THE YEAR BY THE MUNICIPAL COUNCILS.

3.1 Municipal Councils are provided Grants by the State / Central Governments to implement the schemes entrusted to them and also for over all development of the area under their jurisdiction.

3.2 The Receipts and Payments are inclusive of the various Grants received from Central and State Governments during the year 2009-10 by the Municipal

252

Councils. The various Grants received by Municipal Councils are detailed in Statement No.3 & 4.

3.3 The Head Wise Revenue Receipts of Municipal Councils for the year 2009-10 are exhibited below in a Pie chart.

PIE Chart of Revenue Receipts of MCs for 2009-10

47%

12%

6%

14%

2%

4%

2%

3%

10%

Tax Revenue - 47%

Assigned Revenues andCompensations - 12%

Rental Income fromMunicipal Properties - 6%

Fees and User Charges -14%

Sale and Hire Charges - 2%

Revenue Grants Contributionand Subsidies - 4%

Income from Investments -2%

Interest Earned - 3%

Other Income - 10%

3.4 Thus the receipt under Tax Revenue forms major chunk of the total receipts of the

municipal Councils. 3.5 The Head Wise Capital Receipts of Municipal Councils for the year 2009-10 are

exhibited below in a Pie chart.

PIE Chart of Capital Receipts of MCs for 2009-10

1%

3%

0%

94%

0%

2%

Municipal Fund - 1%

Earmarked Funds - 3%

Reserves - 0%

Grants Contribution forspecific purposes - 94%

Unsecured Loans - 0%

Deposits Received - 2%

253

3.6 The Head Wise Revenue Payments of Municipal Councils for the year 2009-10

are exhibited below in a Pie chart.

PIE Chart of Revenue Payments of MCs for 2009-10

40%

26%

31%

0%

2%

0%

0%

0%

0%

1%

0%Establishment Expenses - 40%

Administrative Expenses - 26%

Operations and Maintenance - 31%

Interest and Finance Charges - 0%

Programme Expenses - 2%

Revenue Grants Contribution andSubsidies - 0%Provisions and Write off - 0%

Miscellaneous Expenses - 0%

Depreciation - 0%

Prior Period Item - 1%

Transfer to Reserve Funds - 0%

3.7 The Head Wise Capital Payments of Municipal Councils for the year 2009-10 are

exhibited below in a Pie chart.

PIE Chart of Capital Payments of MCs for 2009-10

71%

0%13%

5%

9%

0%

0%

0%

0%

2%

0%

0% Fixed Assets - 71%

Accumulated Depreciation - 0%

Capital Work-In-Progress - 13%

Investments-General Fund - 5%

Investments-Other Funds - 9%

Stock-in- hand - 0%

Accumulated Provisions against Debtors(Receivables) - 0%

Pre-paid Expenses - 0%

Cash and Bank balance - 0%

Loans Advances and Deposits - 2%

Accumulated Provisions against LoansAdvances and Deposits - 0%Other Assets - 0%

254

STATUS OF AUDIT

4.1. Audit of 94 Municipal Councils for the year 2009-10 was conducted as mentioned

below.

Demand Completed Balance

108 94 14

OPENING BALANCE SHEET

4.2 Before migrating accounts in to DEABAS the Municipalities have identified its Assets and Liabilities as on 01.04.2009 and incorporated the details in 29 formats prescribed in APMAM viz opening balance sheet. Based on the Model National Municipal Asset Valuation Methodology Manual for valuation of Municipal Assets, CGG has developed A.P. Municipal Assets Valuation Methodology Manual and Government adopted this Manual vide G.O. Ms. No. 217 MA & UD (UBS) Department, dated 18.05.2010. Accordingly Municipalities have prepared Opening Balance Sheets as per which a total number of 179746 Assets involving its book value Rs.320871.85 lakhs identified as existed as on 01.04.2009 and Rs.129360.43 lakhs liabilities are existed in 94 Municipal Councils as detailed in Statement No.2. RECEIPTS & PAYMENTS

4.3 The Department has conducted audit of the receipts amounting to Rs.61125.23 lakhs and Payments of Rs.47942.45 lakhs as detailed in the Statements No.3 & 4 with Dist wise break up.

INCOME & EXPENDITURE

4.4. The Income & Expenditure of the above Municipal Councils for the year 2009-10 furnished District wise in Statement No.5 & 6 respectively. The income earned by the said municipalities during the year 2009-10 is Rs.50424.38 lakhs and expenditure incurred is Rs.61900.44 lakhs. BALANCE SHEET

4.5. The Assets & Liabilities (Balance Sheet) of the Municipal Councils for the year 2009-10 are furnished in statement No.7& 8 respectively. The total Assets & Liabilities of the said Municipalities as on 31.03.2010 as per Balance Sheet are Rs.315199.24 and Rs.314890.42 respectively.

AUIDT OPINION

5.1 On verification financial statements furnished by the ULBs, it is opined that receivable and payables were assessed based on the Registers / Records duly certified by the competent authorities.

5.2 The Assets & Liabilities furnished in the Opening Balance Sheet as on 01.04.2009 is defective i.e. certain assets have been ommitted, Cash and Bank balances furnished in the Form No. 17 & 18 of Opening Balance Sheet were not reconciled with Cash Book and Treasury Balances.

5.3 Proper treatment is not given to Advances

255

5.4 Many mis-classifications pointed out were not rectified Expenditure Booked as Receipts and vice versa thereby (-) balances shown in the Accounting Statements mis-classification of Capital expenditure into Revenue Expenditure with cascading effecting of incorrect determination of depreciation expense and mis-statement of assets in the balance sheet. The financial statements in all material respects, the financial position of the Municipal Councils, the results of operation and its cash flows for the year ended with 31.03.2010 is in-accordance with the accounting principles generally accepted.

AUDIT OBJECTIONS

6.1 During the course of audit of these Municipal Councils for the year 2009-10 various defects noticed were already pointed out in the relevant Audit Reports which were forwarded to the Chief Executive Authorities concerned for further action at their end as per the procedure laid down under A.P. State Audit Act,1989 & Rules issued there under.

6.2 A total number of 11581 audit objections involving an amount of Rs.26950.37

lakhs were raised in the audit of the Municipalities during the year under report. 6.3 A Consolidated Statement showing the number of objections raised, amount

involved with category wise break-up is annexed vide Statement No.9 (1) to (3). 6.4 CATEGORISATION OF AUDIT OBJECTIONS

Various audit objections raised in audit 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

256

6.5 Consolidated Statements showing various Audit Objections raised in the Audit

Reports with amounts involved category-wise are annexed to the Report [Statements from 9(1) to 9(3)].

6.6 The objections raised have been analyzed here under and observed that the records

which were not furnished to audit i.e. Non production of records account for 45.76 % of objections followed by Non-collection of dues with 18.00%. The objections under different categories have been analyzed. An amount of

Rs.12331.91 Lakhs was objected pertaining to Non production of records, followed by Non-collection of dues which constituted Rs.4853.32 Lakhs. These two together speak of the status of the maintenance of record and the inaction of the Municipalities in collecting the dues. 3.29% of amount objected is on account of Mis-appropriation. 6.7. Gist of some of the selected audit objections pertaining to the year under report is

enumerated below:

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Rs. In lakhs. Sl. No. NAME OF THE CATEGORY Code

No. No. Amount %

1 Non Production of Records 11 4086 12331.91 45.76 2 Non-collection of dues 7 827 4853.32 18.00 3 Violation of Rules 9 2916 3003.74 11.15 4 Advances pending adjustment 8 424 1326.75 4.92

5 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc.,

10 473 1230 4.57

6 Others 18 1759 971.22 3.60 7 Mis-appropriations 12 93 885.66 3.29 8 Diversion of Grants / Funds 3 112 802.21 2.98 9 Pendency of Utilisation Certificates 16 99 551.99 2.05 10 Variation in Account Figures 1 179 308.81 1.15

11 D.D. Cheques received but not realised with in time 19 4 237.11 0.88

12 Non-utilisation of grants before the lapsable date 4 64 233.73 0.87

13 Excess Payments 13 407 114.01 0.42 14 Wasteful Expenditure 14 57 79.43 0.29 15 Mis-utilisation of Grants / Funds 5 5 14.03 0.05

16 Instances of cases of unaccounted for cash / stores 15 17 4.71 0.02

17 Excess Utilisation of Grants / Funds 2 41 1.29 0.00 18 Non- utilisation of Earmarked Funds 6 18 0.00 0.00 19 Surcharges Certificates- Recovery Pending 17 0 0.00 0.00 Total: 11581 26950.37 100

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AUDIT PARAS

1. VARIATION IN ACCOUNT FIGURES

It was observed in audit that there are certain variations between the Account figures of treasury and cash book like Opening Balance in the cash book of the current year not tallying with the Closing Balance of the cash book of previous year. Balance in 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 the Treasury Pass Book by the Treasury Authorities, receipts shown as credited in the cash book by remittance through challans but 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 some addition or subtraction done in the reconciliation by the D.D.O to arrive at the balance actually available in the Treasury Pass Book, wrong totaling of credits and debits either by D.D.O of Treasury, revision in the plus or minus memo in the Treasury Pass Book during the subsequent financial year by the Treasury authorities with retrospective effect and not tallying of Consolidated Closing Balance of all cash books with consolidated closing balance of annual account of the institutions etc., come under this category.

A Consolidated Statement No.9 (1) of Variation in account figures is appended to the Report from which it could be seen that Non-reconciliation to a tune of Rs.308.81 lakhs was pointed out in 179 audit paras. 1(1) MC, ONGOLE - CASH ON HAND AS ON 31-03-2009 WAS NOT TAKEN INTO ACCOUNT – Rs.6,87,890/-

During the verification of Day book, cash book, receipts and payment statement and balance sheet, it was found that there was no amount shown as Cash in hand in the Opening Balance. But on verification of chitta which was maintained at Municipal Treasury it was observed that there was an amount of Rs.6,87,890/- as cash on hand as on 31-03-2009. The same was not taken into account as opening balance as on 01-04-2009 as cash on hand in the above accounts.

Due to the above omission the closing balance in Receipts and Payments account shows less balance and the Balance Sheet also exhibited less amount under the head of “Cash and Bank balance(Code No.450): The omission renders the account incorrect.

(Para No. 51(32) of AR of MC, Ongole for 2009-10)

1(2) MC, ONGOLE - VARIATION IN FOBS BANK BALANCES AND ANNUAL ACCOUNT BANK BALANCES

As per form No.18 of F.O.B.S. the bank balance of Rs.8,45,23,893-09 was shown as opening balance as on 01-04-2009. But on verification of annual account in DEABAS it was observed that the opening balance taken in to account as Rs.9,44,32,784-09 in respect of General Fund, Capital Fund and Primary Education Fund. There was difference of amount of Rs.99,08,891-00. The reasons for the discrepancy between F.O.B.S. opening balance and opening balance in annual account in DEABAS were not forth coming in audit. The omission renders the account incorrect.

(Para No. 51(33) of AR of MC, Ongole for 2009-10)

258

1(3) MC, KORUTLA, KARIMNAGAR - ACCOUNTS IN DOUBLE ENTRY ACCRUAL BASED ACCOUNTING SYSTEM- CERTAIN LAPSES OBSERVED

On Verification of accounts in Double Entry accrual Based Account System, the following lapses were noticed.

1) The Opening balances and Closing balances as on 1.4.2009 and 31-3-2010 respectively were taken from Pass Books instead of adopting from cash books as a result the accounts do not exhibit the factual position.

2) Fund wise postings not made while making entry of the Receipts and Expenditure particulars of Municipal General Fund (MGF) and capital project funds (CPF).

3) The Deductions made and remitted scheme wise, Account wise could not be found separately in the new accounting system. The deductions and remittances made are in only two categories General fund and Capital project fund.

(Para No.9 of AR Municipal Council, Korutla, Karimnagar for 2009-10)

Likewise in Metpally Municipal Council, Karimnagar district, fixed Deposits as

shown below were not taken to Account:

Sl. No. F.D. No. Name of the

Bank Amount

(Rs.) Scheme

1 766034 SBH, Metpally 600000 TSP 2 532825 SBH, Metpalli 126000 Park & Play Grounds

1) Though 27 Bank Accounts are maintained by the Municipal Council , only 25

Accounts were taken in to DEABAS ignoring the accounts of TFC and SB Mahila sankshema sangam which had balances of Rs.68,324/- and Rs.3,27,691/- respectively as a result the account do not reflect clear picture of balances.

2) The following receipt side entries were not captured in DEABAS account.

Sl. No. Account Date of Receipt Amount

(Rs.) Challan No.

1 Library Cess 6.4.2009 4830 - 2 “ 7.4.2009 5851 - 3 “ 8.4.2009 1486 - 4 General Fund 5.5.2009 37180 852 5 “ 5.5.2009 116960 853 6 “ 23.5.2009 31980 1274 7 “ 20.5.2009 11100 1169 8 Salary Fund 5.5.2009 354635 854 9 “ 12.5.2009 51866 960 10 Library cess 5.5.2009 30859 - 11 General Fund 2.6.2009 100000 1536 12 General Fund 7.10.2009 53960 4979 13 “ 7.10.2009 62289 5182 14 “ 4.9.2009 49296 5962 Total 9,12,292

259

4) The following expenditure entries were also not captured

Sl. No. Account Name Date of

Expenditure Amount

(Rs.) Cheque/ Vr.No.

1 General Fund 02.4.2009 52035 000205 2 “ 18.8.2009 210000 000336 3 “ 26.8.2009 233400 000346 Total 4,95,435

(Para No.9 of AR Municipal Council, Metpally, Karimnagar for 2009-10)

1(4) RAYACHOTY MUNICIPAL COUNCIL , KADAPA – VARIATION IN ACCOUNT FIGURES – NEEDS RECTIFICATION – Rs.4,89,210/- As verified from Annual Accounts figures and DEABAS Account figures of various heads, the account figures were varied for a sum of Rs.4,89,210/- with Cash Book figures as detailed below. The authority concerned was not explained that why such variation occurred in account figures.

Name of the Receipt

Total receipts as per DEABAS account

Total receipts as per Annual account

Variation

B&D Certificate 23000 21740 1260Security Deposit 13649468 13161518 487950Total 13672468 13183258 489210

(Para No. 3 of AR of Rayachoty Municipal Council , Kadapa for 2009-10)

2. EXCESS UTILISATION OF GRANTS

Municipal Councils are in receipt of Grant-in-aid from Government for certain specified purposes to be spent within a prescribed time and they furnish Utilization Certificate for the grants utilized.

During the course of audit several instances have come to the notice of audit that certain municipal councils incurred expenditure in excess of the Grant-in-aid received. The fact of incurring of such excess expenditure implied 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.

41 such cases involving an amount of Rs.1.29 lakhs pointed out as detailed in Statement No.9 (1).

260

3. DIVERSION OF GRANTS Rule 39 of the Rules framed relating to Taxation and Finance in Schedule II under Section 130 of the Andhra Pradesh Municipalities Act, 1965 prescribed the purposes to which the Municipal Fund is to 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 Council and incidental to the administration and the fund should be applicable thereto within the Municipal Council. However the expenditure incurred outside the Municipal Council is to be authorized either by the Act or specially sanctioned by government.

As per the orders issued by the Government in G.O. Ms. No.1886, Municipal Administration dated 22-11-1965, the Municipal Councils should not divert the following earmarked funds even temporarily for other purposes without the previous sanction of Government.

1. Water and Drainage Tax Funds. 2. Deposits including provident funds 3. Lighting Tax Fund 4. Loan Funds. 5. Special Government Grants. 6. Elementary Education Fund. 7. Capital receipts from sale of capital assets and 8. Endowments.

But it was observed in audit that diversion of funds/grants was frequently made in

most of the Municipalities without the sanction of the Government. A few of such diversions reported in the Audit Reports are cited hereunder.

A Statement of such 112 cases involving an amount of Rs. 802.21 lakhs noticed in audit is appended to the Report in Statement No. 9 (1). 3(1) TRANSFER OF FUNDS FROM ONE ACCOUNT TO ANOTHER – IRREGULAR. As verified from the Cash Books of various grants received, it was noticed that certain amounts were transferred from one fund to another as detailed here under for which no reasons were explained to Audit. Grants released by the Government for specific purposes should not be utilized for any other purposes other than the intended. In fact no amount should be diverted or transferred from one fund to other or for any other purpose even temporarily without obtaining prior sanction of Government. But in the present instance amounts were transferred from one Grant to another very often resulting in diversion of Funds which is a clear violation of the Govt. guidelines issued for utilization of the grants which should be avoided.

Transferred Vr No & Date from to Amount

(Rs.) 54/ /6-09 001 GF SBA/cNo:3730 MP LADS 50,000182/ 10-09 001 GF Education 25,00,000

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90/ 7-09 001 GF 002 GF 50,726250/ 3-10 O01 GF 12th Fin 12,23,0001 /4-09 002 GF Education 21,25,23541/ 4-09 002 GF 001 GF 6,00,00050/5-09 002 GF Education 29,28,25671/ 7-09 002 GF Education 12,96,000323/ 3-10 002 GF Education 5,00,000

(Para 3 of AR on the accounts of Municipal Council, Bheemunipatnam, Visakhapatnam for 2009-10)

3(2) REMOVAL OF SILT – EXPENDITURE INCURRED FROM XII FINANCE COMMISSION FUNDS INSTEAD OF GENERAL FUNDS - NEEDS REIMBURSEMENT Rs.1,48,706 /- An amount of Rs.148706/- was incurred as expenditure from XII Finance Commission Funds towards removal of silt etc. instead of meeting it from General fund account which is irregular. The amount of Rs.148706/- so diverted from XII Finance Commission funds needs to be got reimbursed.

Vr No & Date Particulars Amount (Rs.)

20/24-11-2009 M. Sekhar Babu, Vehicle incharge advance for silt removal charges

30,000

21/24-11-2009, S. Eswara rao, silt removal charges 1376022/ 1.12.09 Health section vehicle registration charges

Che No: 34179/ 1-12-2009 39386

23/ 1.12.09 Ch. Satyanarayana Silt work advance 50,00025/ 1.12.09 S.Eswararao,contractor, AKPsilt removal charges &

adv adjustment paid to M. Sekhar Babu Rs. 30,000 Ch. SatyaNarayana Rs. 50,000 Rs. 80,000

15560

Total 148706 (Para 1.1 of AR on the accounts of Municipal Council, Anakapalli, Visakhapatnam for 2009-10) 3(3) MC, SANGAREDDY - SCHEME FUNDS DIVERTED TO MEET THE EXPENDITURE UNDER GENERAL FUNDS IRREGULAR- RS.13,65,000/- The expenditure towards salaries of the Municipal staff and other payments aggregating Rs.13,65,000 which is chargeable to general funds was paid from the scheme funds such as Rajiv Nagara Bata,Internal Roads grant etc which is contrary to the Government orders and highly irregular. The amounts need to be reimbursed to the concerned head.

(Para No.4 of the AR on the accounts of Municipal Council, Sangareddy, Medak for 2009-10)

262

3(4) MC, ZAHEERABAD AMOUNTS COLLECTED – DEPOSITED IN VARIOUS ACCOUNTS INSTEAD OF DEPOSITING IN THE P.D. ACCOUNT–DIVERSION - IRREGULAR – Rs. 2,53,568/- During the course of audit, it was observed that the Municipal authorities deposited the amounts collected through Bill Collectors in the accounts of XII Finance Commission grant, Internal road & Drains Grant, BRGF etc which were operated for specific purposes and issued cheques for day to day transactions from that accounts despite having a P.D. account for the Municipal Council where all the amounts should be deposited. Non-depositing of the money in the PD account facilitates to incur expenditure conveniently and avoids the Treasury’s regulatory control.

(Para No.29 of the AR on the accounts of Municipal Council, Zaheerabad for 2009-10)

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

Government release special grants to the Local bodies for implementing specific schemes. These grants are to be utilized for the purposes for which they are meant for duly 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.

It was noticed in audit that in spite of allowing reasonable time for utilizing the grant, certain municipalities did not utilize the grants released within the lapsable date and thereby huge amounts were left unutilized. The grant sanctioning authorities were also not approached for extending the utilization period. Thus the schemes for which the grants released were not implemented effectively and totally. The unspent balances were also not refunded to the grant releasing authorities.A few of such cases pointed out in the Audit Reports of the local bodies are detailed hereunder.

A Statement of 64 such cases involving an amount of Rs.233.73 lakhs noticed is appended to the Report as Statement No.9(1) . 4(1) GRANTS ADJUSTED TO MUNICIPAL FUNDS NOT UTILIZED – NEEDS EARLY ACTION

The following grants were adjusted to municipal funds under various schemes during the year, but they were not utilized fully thereby the purpose for which they were released was not served. The reasons for non-utilization were also not explained to audit. Further the remittance particulars of unutilized amounts if any made to the grant releasing authority were also not furnished to audit.

Amount in Rs

Sl.No. Name of the Grant O.B. Receipt Total Expenditure 1 SJSRY ,TFC 676686-41 23891 704577-41 Nil2 NTR statue 17967-24 155657 173624-24 Nil3 Latrins 9030718 31777 9348489 733864 Devp. Fund 114553 104390 218943 54755 ASC 13736 1424860 1438596 1374416 VUDA grant 6082878 1143882 7226760 Nil

(Para 2.2 of AR of Municipal Council, Anakapalli, Vishakapatnam for 2009-10)

263

5. MIS-UTILISATION OF GRANTS

Municipal Councils are in receipt of Grant-in-aid from the Government for certain specified purposes to be spent within the prescribed time limits and they furnish utilization certificates for the grants utilized. During the Course of audit, several instances have come to the notice of audit that certain Municipal Councils incurred expenditure in excess of the Grant–in-aid received. The fact of incurring such excess expenditure further implies that it 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.

A statement of such 5 cases of Mis-utilisation of funds / grants involving Rs.14.03 lakhs pointed out in the relevant audit reports are detailed in Statement No.9(1) appended to this report

5 (1) MC, ZAHEERABAD - MPLADS-I – FUNDS UTILIZED FOR CREATION OF ASSET FOR PRIVATE ORGANISATION – MIS-UTILIZATION – NEEDS RECOVERY – Rs.2,38,065/- As seen from the Cash Book, an amount of Rs. 2,38,065/- was drawn vide voucher No. 1/5.5.2009 and paid to Sri R. Surya Kanth contractor towards construction of Reading room and Library Hall at Saraswathi Shish Mandir High School, Zaheerabad and the work was stated to have been recorded in the MB No. ME/MPLADS/ 08. The Saraswathi Shishu Mandir School is not a Government or Local body owned School and as such incurring of expenditure on a private building is highly irregular and needs to be recovered. The details of the administrative sanction and files with the MB relating to the work were also not produced to Audit and a para on the same issue was raised in the previous Audit Report for the year 2008-09 at Para No. 43.

(Para No.57 of the AR on the accounts of Municipal Council, Zaheerabad for 2009-10)

6. NON UTILIZATION OF EARMARKED FUNDS In G.O.Ms No.265 MA Dated 19-07-2004 instructions were issued to earmark the

municipal funds @ 15% , 7.5% and 5% of the developmental expenditure in the Budget estimate for the development of Schedule Castes areas, Scheduled Tribes areas, and welfare of Woman and Children respectively. Action would therefore need to be taken immediately to maintain a separate register along with the particulars therein to watch whether the funds for welfare of S.Cs and S.Ts and W & C.W. were earmarked and utilized properly for their welfare as envisaged in the Government orders referred to above.

18 objections have been raised under the category of Non-utilisation of Earmarked

funds as detailed in Statement No.9 (1) appended to this report

264


On verification of Revenue collections in various Municipal Councils, it was observed that huge amounts were found pending realization for longer periods and allowed to become barred by limitation of time in certain cases. No appropriate action seemed to have been initiated by the executive authorities before the dues became barred by limitation of time in spite of various statutory provisions existing like distrait prosecution or filing of suits. Dependency of Municipal councils on Government grants gets lowered if timely and appropriate action is taken by the Executive Authorities for collection of these dues. In most of the Municipal councils the details of year wise outstanding dues were not prepared and produced to audit, because of which it was not possible to ascertain in audit as to what extent the amounts became time barred during the year by limitation of time within the meaning of provisions under section 365(1) of A.P. Municipalities Act, 1965.

Sub –Section (1) of section 374 of A.P. Municipal Act, 1965 places the liability for loss on the officers of the Municipal Council if the loss is a direct consequence of their neglect. In most of the cases, the taxes and non-taxes became time barred as no action was taken before expiration of the period allowed for such recoveries and as such caused permanent loss to the municipal funds. No action seemed to have been taken against the officers for such neglect of duties in many of the Municipal Councils. The demand for the Taxes and Non-taxes to be collected would be fixed at the beginning of the year and will be collected in a time bound manner. Effective steps should have been taken for their realization as these collections contribute to the total self reliance of the Municipal Councils. Though the executive authority was to take appropriate steps to collect the revenues by enforcing the powers vested under section 56 of the Andhra Pradesh Municipalities Act 1965, they have failed to take action in the following cases where the taxes/fee etc. were left uncollected at the end of year.

A sum of Rs.4853.32 Lakhs found to be left uncollected by the Municipal Authorities towards various Taxes and Non-taxes etc., raised in 827 audit paras as detailed in the Statement No.9 (1) are annexed to this report. 7(1) MC BHEEMUNIPATNAM, VISAKHAPATNAM - MARKET LEASES NOT REALISED IN FULL – LOSS TO MUNICIPAL FUNDS – Rs .67,425/- As verified from the Sales Register, it was noticed that the Market in Bheemunipatnam was auctioned and given to the highest bidder Sri Y. Atchi Babu from 1-4-2009 to 31-3-2010 for Rs.1,19,250/- and out of which an amount of Rs. 85,500-00 only was collected leaving a balance of Rs 33,750/- at the end of the year. Because of non recovery of 1/4th amount, the institution suffered a loss and even if it were to be adjusted from the deposit amount, it was not sufficient to adjust during the last quarter. Further, the Tagarapuvalasa Market was auctioned and given to the highest bidder Sri. J.D.V Prasada Rao for Rs.2,17,925/ - for the period from 1-4-2009 to 31-3-2010 and out of which an amount of Rs. 1,84,250/- only was collected leaving a balance of Rs. 33,675/-.

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Hence it is a violation of agreement conditions laid down in the notification issued for the auction of market. The Municipal Council has not utilized the conditions of enforcement stipulated in the agreement and also the provisions laid down in statutory rules for recovery of the same. Hence the loss caused to the Municipal Council would need to be recovered and made good to Municipal Funds along with the interest.

(Para 4(5) of AR on the accounts of Municipal Council, Bheemunipatnam, Visakhapatnam for 2009-10)

7(2) MC ANAKAPALLI, VISAKHAPATNAM LEASES - MARKET LEASES - AMOUNT NOT COLLECTED - IRREGULAR – Rs.1,20,000/- As verified from lease file, it was noticed that the daily market in the Municipal area was leased out through auction to Sri T.S. Janaki Ram, S/o Satyanarayana for the period from 1-4-2009 to 31-3-2010 for Rs.17,40,000/-(auction amount Rs.15,00,000+ 240000 sweeper charges) vide proceedings Roc.No.5470/2007/A1 dated 31-3-2008 of Municipal commissioner, Anakapalli. Out of the above, an amount of Rs.16,20,000/- was paid by the lessee leaving a balance of Rs.1,20,000 /- as unpaid which is against the conditions laid down in the notification issued and the agreement so arrived. The Municipal Commissioner did not take any steps to recover the balance amount from the lessee which resulted in causing loss to the Municipal funds. The loss caused to the Municipal Council due to inaction of the Commissioner on time would need to be recovered and made good to municipal funds along-with the interest thereon.

(Para 3.7 of Audit Report on the accounts of Municipal Council, Anakapalli, Visakhapatnam for 2009-10)

7(3) MC, TADIPATHRI, ANANTAPUR - LEASES – SHOP ROOMS RENTS – NOT ENHANCED – LOSS OF REVENUE RS.2,65,608/-

According to the Rules of Income and Expenditure, 1968 issued in G.O.Ms No. 688 M.A Dept dated 3-7-1988, the leases of buildings, shops can be renewed by the Municipal Council up to 3 years once and above 3 years and not exceeding 25 years with the prior permission of Government, without conducting public auction subject to the condition that the lessees agree for 33 1/3 enhancement of rent over the prevailing market rates. In respect of leases of certain shop rooms whose lease period of 3 years was completed, the Municipal Council did not enhance the rent at the percentage fixed by Government and as a result of which an amount of Rs.2,65,608/- sustained loss to the Municipal Council in a span of 3 years. Further in respect of the renewed leases, the security deposits as fixed by the Municipal Council along with the installments of the first three months were not collected and agreements not entered and got registered with the own cost of the renewed lessees by treating the renewals afresh. This shows that the Executive authority did not evince interest in implementing the orders of Government and allowed causing loss to the revenue to the Municipal Council.

(Para No. 4 (7) of AR on of Municipal Council, Tadipatrhi, Ananthapuram for 2009-10)

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7(4) MC, SRIKAKULAM - SHOP ROOMS – NOT LEASED OUT – LOSS TO MUNICIPAL FUNDS – NEEDS RECOVERY As verified from the Miscellaneous Demand Register, it was noticed that 169 shops out of a total of 374 shops were kept vacant/idle during the year 2009-10 and the reasons for keeping them vacant were not explained to audit. Due to non-leasing of these shops there is a loss of rent for the period from August 2009 to March 2010 (8months), the Municipal Council suffered a loss to a tune of Rs.13,52,000/- as detailed below.

Item of Revenue

Total No. of shops

No. of shops

occupied

No. of shops kept

vacant

Vacant period

Average rent per month / room Rs

Loss of revenue

per annum. Rs

Shop rooms

374 205 169 8/2009 to 3/2010 (8months)

1000 13,52,000

(Para 18 of Audit Report on the accounts of Municipal Council, Srikakulam for 2009-10)) 7(5) MC, SRIKAKULAM - CESS– FIRE CESS @1% ON PROPERTY TAX NOT LEVIED- IRREGULAR - RS.2,82,449/- As verified from the Demand Register of property Tax for 2009-10, it was noticed that an amount of Rs.16504258/- was collected towards property tax. But the fire cess at 1% on the above Property tax for Rs.165043/- was not collected which is irregular. As per the instructions of “the High Level Multi Disciplinary committee-2007” the Fire cess has to be collected @ 1% on property tax to take precautionary measures against fire accidents.

(Para No.22 of AR on the accounts of Municipal Council, Srikakulam for 2009-10)

Likewise in Palasa Municipal Council, Srikakulam district, an amount of Rs. 1,17,406/- was not collected towards fire cess @ 1% on the property tax.

(Para 1 of AR on the accounts of Palasa Municipal Council, Srikakulam district for 2009-10)

7(6) MUNICIPAL COUNCIL SURYAPET, NALGONDA - D&O TRADE LICENSE FEE DUE - NEEDS COLLECT. Rs. 3,45,000/- As verified from the D.C.B. Statement for the year 2009-10, it is noticed that an amount of Rs. 3,45,000/- is due towards D&O trade license fee. Due to non collection of trade license fee from the traders an amount Rs.3,45,000/- caused loss to municipal funds. Early action would need to be taken to collect the license fee from the traders and credited into Municipal funds under intimation to Audit.

(Para No. 6 of Municipal Council Suryapet of Nalgonda District for 2009-10)

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7(7) MC ONGOLE, PRAKASAM - SHOP ROOMS - RENTS NOT COLLECTED - NEEDS IMMEDIATE ACTION - Rs.173709-00

As verified from the miscellaneous demand register for the year 2010.11, it was

observed that the shop room rents were not being collected properly. It was observed that for some shop rooms, rents were not being collected for months together and the authorities have not taken any steps to recover the rents from the individuals. Which is highly irregular and the executive authority should take immediate action to recover the rents from the defaulters and credited to municipal funds as detailed below. Further, it was observed that the construction of shop rooms near Ghosha Hospital was completed long back, but they were not entered in the Miscellaneous demand register .As verified from the connected file, it was found that they were put to auction on 19.3.08 and allotment of shops were done for the years 2007.08&2008.09 and no rent was collected, which is irregular. Further, D.C.B. Statements for all the shop rooms complexes were not prepared for the year 2010.11. In the absence of the same, the correctness of the Demand, Collection and Balance should not be arrived in audit. The same would need to be prepared and produce to audit for verification. The loss of revenue sustained by the Municipal Council , if any, due to not preparing of D.C.B. Statements would need to be made good from the person or persons responsible.

Name of the

shopping complex

Name of the occupantFor No of

months rent to be collected

Rent for the

month

Total rent due

Amarajeevi shopping complex

Smt N.Venkatasubbamma

11/10to3/11(5M) 1393 1935

T.SubbaRao 3/11 1935 1935 V.Venkateswarlu 2/11 1393 1393 P.Sreenivasa sastry 3/11 1935 1935 K.Venkatarao 2/12&3/12 532 1066Addanki Bustand

T.Nagamma 1/12to3/12(3M) 2667 8001

S.Anjaneyulu 8/10to3/11(8M) 4095 32760 Ch.srinivasarao 7/10to3/12(9m) 2000 18000 V.Ramanaiah 2/11&3/11(2M) 2000 4000 K.Hussain Rao 3/11(1M) 1516 1516 S.Immauel 2/11&3/11(2M) 867 1734 S.Ramagopal 12/10to

3/11(4M) 2320 9280

K.Thirupathi Reddy 3/2011(1M) 4067 4067 K.Venkataramanaiah 2/11&3/11(2M) 2857 5714 I.AnandaRao 2/11&3/11(2M) 673 1364 G.BhaskaraRao 2/11&3/11(2M) 869 1738Addanki Bustand Office Complex

D.Ramesh Babu 12/10&1/11to 3/11(4M)

6388 25552

Jayaramtalkies Shop rooms

I.Savithri 4/10to3/11(10M) 1250 12500

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Layer petshop roomd

B.Kanakadurgadevi 1/11to 3/11(3M) 731 2193

V.KoteswaraRao 4/10 559 559 G.Ashok Kumar 2/11&3/11(2M) 2667 5334 P.Anka Babu 3/11 1993 1993 K.Ramaraju 11/10to3/11(5M) 1755 8775 S.Ankababu 1/11to3/11(3M) 3201 9603 K.Ramanaiah 3/11 2743 2743 T.B.SankaraRao 3/11 2673 2673 M.Venkateswaraao 1/12&3/12(2M) 2673 5346 Total 173709

(Para No. 5 of Municipal Council Ongole of Prakasam District for 2009-10)

7(8) MC MANGALAGIRI - NON COLLECTION OF TAXES AND NON TAXES - NEEDS EARLY ACTION – Rs. 13,05,289/-

On verification of Demand Register Property Tax, Vacant Land Tax for the year, 2009-10 (Water tax demand register not maintained and produced to audit), it was noticed that an amount of Rs.24,47,640-00 is out standing at the close of audit. The Demand fixed, collection made and the balances left over for the current year, 2009-10 is detailed below.

Year Nature of Tax Demand (Rs.)

Collection (Rs.)

Balance (Rs.)

2009-10 Property Tax 14353000 13095000 1258000

2009-10 Vacant Land Tax 232240 128415 1038252009-10 Water Charges 4480095 2834130 16459652009-10 Markets 1056700 999259 574412009-10 Shop Rents 565740 525682 40058

Total 20687775 17582486 3105289

Action would need to be taken for early collection of above dues.

(Para No. 23 of Municipal Council Mangalagiri of Guntur District for 2009-10)


It was observed during the course of audit that temporary advances paid for specific purposes were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the A.P. Financial Code. Non-settlement of advances leads of misuse of advances to avoid refund of unspent amounts. Several objections were raised on such outstanding advances in the relevant audit reports pointing out failure of the executive authorities to take necessary action to get these advances adjusted.

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A statement of such cases noticed is appended to the Report Statement No.9 (2)

showing 424 objections amounting to Rs.1326.75 lakhs. A few such cases are given below.

8(1) MUNICIPAL COUNCIL, YELLANDU, KHAMMAM - GENERAL FUNDS – ADVANCES NOT ADJUSTED – NEEDS EARLY ACTION - Rs.75,000/-

As verified from the cash book and connected vouchers, the following amounts were drawn and paid to the following individuals towards advances for various purposes during the year 2009-10. But the said advances were not adjusted till the closure of audit though they were to be adjusted as soon as the purpose is over. In the absence of adjustment of amounts, it is not known whether the very purpose of drawal of advance was served or not.

Sl. No.

Name of the individual

Designation Vr.No. & Date Amount

(Rs.) Purpose of Advance

1 Md.Maqbul, Fitter 20/14-5-2009 10000 Purchase of Water supply material

2 U.Eswaraiah, Fitter 21/14-5-2009 10000 Purchase of Water supply material

3 Md. Amjad Pasha, P.H.section 01/01.04.2009 10000 Towards Sanitation

maintenance

4 Md. Maqbool, Fitter 06/08.04.2009 10000 Towards Maintenance of water supply

5 R. Ramanna, A.E. 10/23.04.2009 20000 Towards for sub Mercible Motor Winding

6 R. Ramanna, A.E 19/20.06.2009 5000 Towards Maintenance of water supply

7 Ramanaiah. Comm.(FAC) 108/15.12.2009 10000 Towards repairs to 25 HP

Motor

Total 75000

(Para 17 & 18 of AR on the accounts of Municipal Council, Yellandu, Khammam for 2009-10)

8(2) MUNICIPAL COUNCIL, PALVANCHA, KHAMMAM - ADVANCES PAID- NOT ADJUSTED – IRREGULAR – NEEDS RECOVERY Rs.5,05,000/-

An amount of Rs.5,05,000/- was drawn and paid as advanced to the individuals noted against each for the purpose and they were pending adjustment. Further, huge advances are pending adjustment against their names pertaining to previous years also. These advances were drawn indiscriminately without valid purposes, the Executive Authority has not taken any steps to adjust the amounts for the previous years and the year under audit.

270

Sl. No.

Vr.No. & Date

Name of the Individual Purpose of Advance Amount

(Rs.)

1 349/30.05.09 M.Bala Krishna, M.A.E. Silt removal from side drain 1,60,000

2 3734/07.11.09 -do- Supply of electrical material 1,50,0003 3735/07.11.09 Md.Osman Ali, S.I. to engage of sanitary labour 1,00,000

4 820/08.07.09 -do- Removal of bushes from road side 95,000

Total 5,05,000 (Para 7 of AR on the accounts of Municipal Council Paloncha, Khammam for 2009-10) 8(3) MUNICIPAL COUNCIL , ANAKAPALLI, VISAKHAPATNAM DISTRICT - ADVANCES – NOT FULLY ADJUSTED - HUGE AMOUNTS PENDING ADJUSTMENT- Rs.11,89,725 /- As Verified from the Register of Advances it was noticed that out of the amount of Rs.15,04,603 /- which was pending adjustment for the years from 2000-2001 to 2009-2010, a sum of Rs. 3,14,878 /- was only got adjusted during the year leaving a balance of Rs. 11,89,725/ which needs to be adjusted immediately. (Para 4.5 of AR on the accounts of Municipal Council, Anakapalli, Visakhapatnam for 2009-10)


It was noticed in audit that in some cases the Government Rules, instructions for incurring the expenditure from the funds of Municipalities were violated either due to negligence or ignorance. Certain times, the funds of the Municipalities were utilized for purposes other than the permitted ones under the relevant Act / Rules. It was also noticed that in few cases Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected in the relevant audit reports. 2916 audit objections involving an amount of Rs.3003.74 lakhs were raised in the relevant Audit Reports as shown in Statement No.9 (2) annexed to the Report. 9(1) MUNICIPAL COUNCIL, PALVANCHA, KHAMMAM - EXPENDITURE INCURRED WITHOUT APPROVAL OF THE COUNCIL –IRREGULAR – Rs.1,40,82,482/- I) As per section 57 of A.P. Municipal Act, 1965, under the powers and functions of the Municipal Commissioner, there is a provision that the commissioner is competent to incur contingent expenditure incidental to municipal administration for an amount of Rs. 2,000/- depending upon the grade of the Municipal Council. During the year, an amount of Rs.1,40,82,482/- as detailed below was drawn through self cheques and stated to have been incurred for expenditure towards bush cutting, water pipe line repairs, minor repairs to drains, filling of pot holes etc., The amounts were drawn every month indiscriminately by preparing vouchers below Rs.2,000/- each deliberately to avoid the approval of the council which is highly irregular.

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Month 001 Cash Book (Rs.)

002 Cash Book (Rs.)

Total Expenditure (Rs.)

4/09 7,98,992 2,52,484 10,51,4765/09 5,34,819 4,35,997 9,70,8166/09 - 15,21,263 15,21,2637/09 4,87,908 2,63,366 7,51,2748/09 13,22,352 6,46,609 19,68,9619/09 2,22,186 30,09,475 32,31,66110/09 - 6,11,054 6,11,05411/09 29,20,704 6,61,979 35,82,6831/10 - 1,42,052 1,42,0522/10 45,848 4,810 50,6583/10 - 2,00,584 2,00,584

Total 63,32,809 77,49,673 1,40,82,482 Out of the total expenditure of Rs.1,40,82,482/- an expenditure of Rs.1,36,89,188/- was incurred during the tenure of Sri P.Shanthi Kumar, Commissioner for the period from April, 2009 to November, 2009 and the remaining for the period from 12/2009 to 3/2010 during the tenure of Smt V.Samyuktha Devi, Commissioner. As seen from the items of expenditure it can be concluded that the expenditure is not incidental to administration. Further, the amounts were also drawn in self cheques when the payments were to be made through cheques in the name of firms/contractors. II) The 12th Finance Commission Grant amount of Rs.74,68,000/- for the year 2008-09 was adjusted to 001 general fund account and the same was not transferred to 12th Finance Commission account and utilized for the purposes other than those specified by the Government, especially on contingencies.

The total expenditure made during the year in the general funds under 001 and 002 amounts to Rs.4,01,66,679/- and out of the total expenditure, 35% of the amount was drawn without approval of the council.

From the above it can be known that the provisions under section 57 of the A.P., Municipal Act, 1965 were mis-interpreted in its spirit, which is a serious lapse committed by the commissioner and action needs to be taken for such serious violation of Rules.

(Para 8 &9 of AR on the accounts of Municipal Council Palvancha, Khammam for 2009-10) 9(2) MUNICIPAL COUNCIL ANAKAPALLI, VISAKHAPATNAM - DEVELOPMENTAL CHARGES COLLECTED TOWARDS VUDA - HUGE AMOUNTS PENDING REMITTANCE TO VUDA – Rs. 11,17,968/-

As per rules of urban Development authority, 85% of the developmental charges that were collected by the Municipal Council during approval of building application have to be remitted to Visakapatnam Urban Development Authority (VUDA). But as verified from the connected register, the amount to a tune of Rs.11,79,968/- so collected for several years is still pending remittance to the VUDA. (Para 5.7 of AR on the accounts of Anakapalli Municipal Council , Visakhapatnam for 2009-10)

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9(3) MUNICIPAL COUNCIL SIRICILLA, KARIMNAGAR - LEVY OF ADVERTISEMENTS TAX ON CABLE T.V. NOT INITIATED – IRREGULAR. On verification of the records relating to advertisement tax of the Sircilla Municipal Council for the year 2009-10 it was noticed that the Advertisement tax on electronic media including cable T.V. agencies was not levied though Government have issued instructions in G.O.Ms.No. 266 M.A. dt 5.5.2000 and added rule “7B” to the A.P. Municipalities (Advertisement tax Rules, 1996) permitting the municipalities to levy advertisement tax on electronic media including cable T.V. Advertisements at 10% on the rates charged by the advertisers. But the Executive Authority of municipal council Sircilla has not taken any steps to collect the advertisement tax on electronic media including cable T.V operators during the year 2009-10 which shows non observance of the Government orders. Due to in action of the executive authority the institution sustained loss which needs to be recovered from the persons responsible.

(Para 12 of AR on the accounts of Sircilla Municipal Council, Karimnagar for 2009-10) 9(4) MUNICIPAL COUNCIL SIRICILLA, KARIMNAGAR WORKS – LUMPSUM INSURANCE PROVISION NOT MADE IN THE ABSTRACT ESTIMATES-IRREGULAR. As per para 1 .03(6) of the Annexure – I of G.O.Ms.No. 23 irrigation & Command Area Development ( PW.CAD) Dept,. Dt:- 5.3.1999, a lump sum provision shall be made in the abstract estimate towards insurance considering the agreement period and defect liability period of two years for the original works and one year for maintenance works. But as verified from the work bills and files of municipal council Sircilla for the year 2009-10 it was noticed that the same was not followed by the executive authority concerned while preparing the abstract estimates and thus violated the rules in force which is irregular.

(Para 17 of AR on the accounts of Sircilla Municipal Council, Karimnagar for 2009-10) 9(5) PAPER ADVERTISEMENT MADE DIRECTLY – NOT ROUTED THROUGH INFORMATION & PUBLIC RELATIONS DEPARTMENT - IRREGULAR RS. 3,27,663=00 Govt. vide GOMs no. 37 GAD (I&PR) DEPTT DT 22-1-94, issued orders that all the advertisements should be made through Information and public relations department. Further in Government memo no. 18511/I & PR/A1/2002-2 GAD department dt 18-9-2002 read with Govt. memo no. 96929 / I & PR /A1 2003, GAD department dt 12-9-03 it was instructed not to admit the bills in case of violation of guidelines.

But in the instant cases advertisements and payments were made directly which is irregular. Since the I &PR department is made nodal agency there is every possibility of getting advertisements published at lower rates.

(Para 24 of AR on the accounts of Tandur Municipal Council, Rangareddy for 2009-10)

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9(6) MUNICIPAL COUNCIL BHEEMUNIPATNAM, VISAKHAPTNAM - GRANTS- EDUCATION GRANTS – SALARIES OF TEACHING STAFF- AMOUNTS CREDITED IN SAVINGS BANK ACCOUNT-IRREGULAR.

As verified from the Education fund account, it was noticed that the salaries authorized by this Department were credited into General Fund pass book and later transferred to SB A/c No: 11308615381 and operated transactions for both receipts and payments, which is a clear case of violation of statutory provision laid down in Treasury Rule-10 as all the amounts of Municipal councils need to be lodged in Treasury PD account and not in SB account.

(Para 6(3) of AR of Bheemunipatnam Municipal Council , Visakhapatnam for 2009-10) 9(7) MUNICIPAL COUNCIL BHEEMUNIPATNAM, VISAKHAPTNAM - TAXES etc COLLECTED - AMOUNTS DEPOSITED IN S.B.A/C INSTEAD OF P.D. ACCCOUNTS – EXPENDITURE INCURRED AND NOT ACCOUNTED FOR IRREGULAR-Rs.50,55,020 /- During the course of verification of Chitta of Bheemili Municipal Council for the year 2009-2010, it was noticed that the amounts collected towards Property Tax, Vacant Land Tax and miscellaneous receipts etc., were credited in Savings Bank A/c No: 113086065480 of SBI, Bheemili instead of PD account maintained in Treasury. But as per G.O.Ms. No: 113 Dt: 13-8-2007 and as per SR -7 ( c ) under T.R 20 of Treasury Code all the Government Moneys should be kept in P.D Account in Treasury . Hence lodging the Municipal Funds in S.B Account is irregular and violative of the Rules. Further it was also noticed that transactions occurred from the said account but the details were not shown to audit which resulted them out of audit scrutiny. Hence lodging of funds in Savings Bank account and incurring expenditure directly from the account is irregular.

(Para 6(22) of AR of Municipal Council, Bheemunipatnam, Visakhapatnam for 2009-10)

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 as under.

Work Blls Pay Bills 1.Income Tax 1.Profession Tax 2.VAT` 2.G.P.F. (Government Employees) 3.Seigniorage Fees 3.G.I.S Premium.

4.Contribution to Pension Scheme 5.Sainik Welfare fund

473 audit objections involving an amount of Rs.1230.45 lakhs were raised in the relevant Audit Reports as shown in Statement No.9(2) annexed to the Report.

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10(1) MUNICIPAL COUNCIL, SIRICILLA, KARIMNGAR - AMOUNTS DEDUCTED TOWARDS INCOME TAX - NOT REMITTED Rs.57,912/- 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 with in the first week of the next month of such deduction and in case of failure to remit the tax the drawing and disbursing officer will be held responsible under section 201((a1) for payment of interest at 15% per annum. During the year under audit, it was observed that the income tax deducted at source from the work bills was not remitted to a tune of Rs. 57,912/- which needs to be remitted immediately. (Para 29 of AR on the accounts of Municipal Council Sircilla, Karimnagar for 2009-10)

10(2) SEIGNORAGE FEE DEDUCTED - NOT REMITTED TO STATE FUNDS Rs.46,229/- As per G.O.Ms.No. 331 Industries and Commerce (M.I) Department, Dated 21.6.2000 Seignorage fee or deed rent which ever is higher shall be recovered from the work bills on all minor minerals dispatched or consumed at the rate specified in schedule – I and schedule – II of annexure to the said G.O. and credited to the consolidated fund of state government through the concerned Assistant Director of mines and Geology Department of the District. Though the instructions were clear, it was observed that the amounts recovered towards seignorage fees for Rs. 46229/-from the work bills was not remitted to state funds. (Para 28 of AR on the accounts of Sircilla Municipal Council, Karimnagar for 2009-10)

10(3) MUNICIPAL COUNCIL BADVEL, YSR KADAPA - WORKS EXECUTED - RECOVERIES LIKE IT, VAT, NAC, QC, CMRF,SEIGNORAGE FEE MADE BUT NOT REMITTED TO THE CONCERNED HEAD OF ACCOUNT- RS.28,423/-.

Certain works were executed by the Municipal Council, Badvel for the year under report and the recoveries towards Seignorage fee as per G.O.Ms.No.331 industries and commerce (M1) dept. Dt: 21-06-2000 Sales Tax as per G.O. Ms. No. 556 Revenue (ET. II Dept. Dt: 7-8-2000, Income Tax as perI.T. Act,1961 and VAT as per G.O.Ms.No. 88Revenue (est.) Dept. Dt: 27-1-07 NAC and CMRF as per G.O.Ms.No. 116 TR&B (Roads –III) Dept. Dt: 19-5-07 were recovered to a tune of Rs 28423/- from work bills, but the same were not remitted to the concerned department till the close of Audit. Action would need to be taken by the executive authority to remit the same under intimation to Audit.

(Para 19(i) of Badvel Municipal Council for the year 2009-10 of YSR Kadapa for 2009-10)

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Likewise an amount of Rs.9,99,393/- was recovered towards IT, ST,SC, Labour cess etc in Vinukonda Municipal Council but the same was not remitted to concerned head of account.

(Para 4 of category 10 of AR of Vinukonda Municipal Council, Guntur for 2009-10) 10(4) MUNICIPAL COUNCIL RAYACHOTI, KADAPA - LIBRARY CESS - NOT REMITTED TO ZILLA GRANDHALAYA SAMSTHA Rs.2,75,064/-

A sum of Rs.34,38,300/- was collected towards property tax and out of which Library cess at the rate of 8% has to be deducted and remitted to the Secretary, Zilla Grandhalaya Samstha,YSR Kadapa district as per G.O.Ms.No.1616 Education Dept., Dated: 10.12.1954. Though the Government instructions are clear and it is a liability on the part of Municipal Council, the Municipal Commissioner did not take any action to deduct the amount towards Library cess from the house tax collected for remitting the same to ZGS which is irregular. Further, when these amounts are lying with the Municipal Council, there is every possibility of utilizing these amounts for other purposes.

(Para No.27 of AR on the accounts of Rayachoty Municipal Council, Kadapa for 2009-10)

11. NON-PRODUCTION OF RECORDS

The Municipal Councils have to maintain effective financial management skills and accountability practices.

All the functions of Municipal Councils would be reflected on the record when they were accounted for as per the provisions contained in AP Accounts 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 reasonably be judged.

Such an important function on the part of the Drawing and Disbursing Officers of all the Municipal Councils in the maintenance and production of records to audit are not properly being maintained. Thereby the main access to clear the doubts of transparency in public expenditure has not been availed. In spite of all guidelines and instructions, the DDOs of Municipal Councils have failed to maintain the records and to produce the same to Audit when ever the local teams visited their institutions. Under the category of non – production of records to Audit, the major part is in works and the related records such as M-Book, estimate file, tenders etc. Others include non production of vouchers along with the related files and registers. The paras on non production of records have been drawn from the individual Audit Reports 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.

276

A Consolidated Statement No.9(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.12331.91 lakhs was pointed out in 4086 audit paras. 11(1) MUNICIPAL COUNCIL YELLANDU, KHAMMAM - NON PRODUCTION OF VOUCHERS, CONNECTED FILES –TRANSACTIONS – Rs.9,91,803/- The vouchers relating to various expenditure viz., labour wages, electricity material works of Municipal Council, Yellandu were not produced to audit to verify the correctness of the claims during the year under report. Such non production of record lead these transactions free from audit scrutiny and as a result of which the correctness of the claims could not be established.

Sl. No.

Vr.No. & Date

Amount (Rs.) Nature of Claim

1 14/1-4-2009 206500 PH. Labour wages paid to National Security, Khammam 2 15/1-4-2009 153341 Water supply labour wages paid to Smt. K.Padmavathi

3 16/1-4-2009 38767 Outsourcing staff wages paid to Sri S. Umashankar 4 34/30-6-2009 11200 Door to door collection of Rikshapullers 5 45/5-8-2009 71938 Outsourcing staff wages paid for 6/2009 to Sri S.

Umashankar 6 50/18-8-2009 90989 Outsourcing staff wages paid for 7/2009 to Sri S.

Umashankar 7 90/29-1-2010 5500 Payment towards contract labour wages for 12/2009 to

Sri S. Sadi Ramulu 8 111/27-3-2010 5500 Payment towards contract labour wages for 01/2010 to

Sri S. Sadi Ramulu 9 51/19-8-2009 268068 Payment of Electricity materials sub-vouchers and

connected files not produced. 10 82/31-12-2009 100000 Cheque issued infavour of AAO. NPDCL, Yellandu

Acknowledge-ment and connected file wanting 11 62/14-10-2009 40000 Expenditure incurred towards Dassara Festival, details of

expenditure and sub-vouchers not produced Total 9,91,803

(Para 34 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10)

11(2) MUNICIPAL COUNCIL YELLANDU, KHAMMAM - NON PRODUCTION OF M.Bs, VOUCHERS AND CONNECTED FILES – Rs.61,08,367/-.

An amount of Rs.43,29,907/- and Rs.17,78,460/- was incurred as expenditure for execution of CC Road and drain works under TFC funds during the year but the connected records i.e. M. Books, vouchers, files for the above expenditure were not produced for verification in audit. In the absence of the same, the correctness of the amounts spent could not be certified in audit.

(Para 39 & 40 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10)

277

11(3) MUNICIPAL COUNCIL PALVANCHA, KHAMMAM - EXPENDITURE INCURRED ON CONTINGENT ITEMS - VOUCHERS NOT PRODUCED - Rs.43,04,908/- During the course of audit, it was noticed that the vouchers worth an expenditure of Rs43,04,908/- were not made available for verification in audit. The commissioner Municipal Council, Paloncha was specifically requested through half margin letters for production of the said vouchers but the same were not produced to audit as a result of which the entire expenditure missed scrutiny by the audit and as such is held under objection. (Para 31 of AR on the accounts of Paloncha Municipal Council, Khammam for 2009-10) 11(4) MUNICIPAL COUNCIL SIRICILLA, KARIMNAGAR - EXECUTION OF WORKS – M. BOOKS & ESTIMATES NOT PRODUCED Rs.43,88,399/-

According to Rule 87 of Chapter – VIII of rules issued in G.O.Ms.No. 1900 Finance & Planning Dept 17.10.1969 and para 10 of “D” Code read with G.O.Ms.No. 1050 PWD Department dated 17.1.1966 every work taken up by the municipalities should be estimated technically sanctioned and work has to be recorded in measurement book and got check measured by the engineering Authority.

But, the connected measurement books and estimate files were not made available to audit as a result the entire expenditure fell out of audit scrutiny and as such is held under objection though a half margin letter No. B3/11/2011 dated 29.03.2011 (enclosed) was issued to the Commissioner and Asst. Engineer. The connected evidential documents were not produced for verification to certify the correctness of the expenditure incurred. (Para 43 of AR on the accounts of Sircilla Municipal Council, Karimnagar for 2009-10)

11(5) MUNICIPAL COUNCIL , ZAHEERABAD - WORKS- EXECUTION OF THE WORKS – EXPENDITURE INCURRED – MBs AND FILES NOT PRODUCED –Rs.5,99,84,486/- An expenditure of Rs.5,99,84,486/- was incurred towards civil work bills under different schemes and grants during the year 2009-10 but the connected MBs, work contract files, administrative sanctions and technical sanction were not produced to audit in spite of the repeated requested made through Half margin letters to the Commissioner, Municipal Commissioner, Zaheerabad but it went in vain.

In absence of the above records, the correctness of the expenditure of Rs.5,99,84,486/- could not be ensured in Audit and as such held under objection.

(Para No.67 of the AR of Municipal Council, Zaheerabad , Medak for 2009-10)

Likewise an amount of Rs 56,52,382/- was spent for execution of various works under different schemes but the connected M.Books, files, agreements, vouchers etc were not produced to audit. In absence of the above records, the correctness of the expenditure of Rs.56,52,382/- could not be ensured in Audit and as such is held under objection (Para No.35 of the AR on the accounts of Municipal Council, Sangareddy ,Medak for 2009-10)

278

12. MIS-APPROPRIATIONS Cases of Misappropriation of moneys noticed in audit were pointed out in the Audit Reports. A consolidated statement of Mis-appropriations noticed in audit is annexed vide Statement No.9 (2). A total number of 93 cases involving an amount of Rs.885.66 lakhs were pointed out in the relevant Audit Reports. 12(1)(a) MUNICIPAL COUNCIL , YELLANDU, KHAMMAM - MUNICIPL FUNDS – COLLECTED AMOUNTS BROUGHT TO CASH BOOK AND STATED TO HAVE REMITTED IN BANK - NOT TRACED IN TREASURY PASS BOOK – MISAPPROPRIATION OF FUNDS - Rs.41,480/-.

As verified from the Irsalnama registers during the course of audit, it was noticed that the following amounts were collected by the Municipal collection staff and the same were handed over to the person who was dealing with the cash and the amount was stated to have been remitted into the treasury through various challans. But on verification of Treasury Pass Book the remittance through challans was not traced out which indicates that the amounts were not actually remitted in Treasury Bank which in other words confirms misappropriation of funds to a tune of Rs. 41,480 which needs to be recovered from the person or persons responsible with penal interest besides initiating disciplinary action under CCA Rules. (Para 41 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10)

(b) MUNICIPAL COUNCIL , YELLANDU, KHAMMAM - CHITTA AMOUNTS PARTLY BROUGHT IN TO CASH BOOK AND BALANCE NOT REMITTED IN TO MUNICIPAL FUNDS – MISAPPROPRIATION OF FUNDS - Rs.47,535/-.

Further, as verified from the Chitta during the course of audit, it was noticed that an amount of Rs. 58072/- was shown as collected from the Municipal collection staff and out of which an amount of Rs.10,537/- only was taken into cash book and shown as remitted leaving the balance amount of Rs.47,535/- which was neither taken into cash book nor remitted to Treasury / Bank. Which is a clear case of misappropriation of funds of the Municipal Council. The Municipal Commissioner who is the authority should have exercised checks with due diligence to avoid such happenings but no such instance seems to have been done.

The above amount would need to be recovered from the person or persons responsible with penal interest besides initiating disciplinary action against them under CCA Rules. (Para 42 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10)

279

(c) MUNICIPAL COUNCIL YELLANDU, KHAMMAM - FUNDS – AMOUNTS DRAWN WITHOUT ANY PURPOSE OR DETAILS - MISAPPROPRIATION OF FUNDS – Rs.83,712/-. As verified from the General Fund account, it was noticed that an amount of Rs. 83,712-00 was drawn vide cheque No.012639 dated 16-05-2009 without indicating any purpose of drawl of amounts in the cash book or any evidence of making payments for any purpose. Drawl of amounts without any purpose or showing any authentic evidence of expenditure tantamount to misappropriation of funds which needs to be recovered immediately. The Municipal Commissioner, who is the authority to draw the funds, should have checked the purpose of drawl of funds. But the records confirm that there is no scrutiny for the drawl of amounts which indicates the negligence on his part in protecting public funds with due diligence. The above amount would need to be recovered from the person or persons responsible with penal interest besides initiating disciplinary action against them under CCA Rules. (Para 43 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10)

(d) MUNICIPAL COUNCIL YELLANDU, KHAMMAM - FUNDS – AMOUNT DRAWN - EXPENDITURE DETAILS NOT FURNISHED – MISAPPROPRIATION OF FUNDS – Rs.40,000/-. An amount of Rs.40,000/- was drawn through Vr No 45 dt 23-9-2009 and paid vide cheque No.680806 dated 23-09-2009 but the details of expenditure for which the amount was drawn was not recorded in the cash book and also the concerned vouchers/bills are also not furnished to the audit. Drawl of funds without indicating any purpose is irregular and construed as misappropriated.

Hence, the same would need to be recovered from the person or persons responsible with penal interest besides taking disciplinary action under CCA Rules.

(Para 46 of AR on the accounts of Yellandu Municipal Council, Khammam for 2009-10) 12(2)(a) MUNICIPAL COUNCIL PALVANCHA, KHAMMAM - PROPERTY TAX COLLECTED –NOT REMITTED IN TO MUNICIPAL FUNDS MISAPPROPRIATED Rs.1,95,966/-

During the course of audit, Municipal Council, Palvancha for the year 2009-10 on verification of chitta A/c.No.002 of the receipt side till the close of audit, it was observed that, the following amounts were collected by bill collectors and handed over in the office on the dates noted against each and taken into chitta from the daily collection registers of the concerned.

Date of Chitta Amount of Collection (Rs.) Chitta Page Number

21.07.10 27,352 05 31.07.10 1,16,668 07 11.08.10 41,995 08 23.08.10 99,510 09

Total 1,95,966

280

But, the said amounts were not remitted in to municipal funds duly taking them to cashbook. There were no challan numbers and remittance particulars recorded in chitta book, nor their remittance appeared in the treasury passbook which gives ample evidence for misappropriation of the amounts which needs to be recovered and remitted into Municipal Funds besides taking disciplinary action. (Para 60 of AR on the accounts of Paloncha Municipal Council, Khammam for 2009-10) (b) MUNICIPAL COUNCIL PALVANCHA, KHAMMAM - COLLECTION OF D&O TRADE RECEIPTS- NOT REMITTED – MISAPPROPRIATION OF AMOUNTS- Rs.26,490/-

On verification of daily collection register of Sri Md.Usman Ali, Sanitary Inspector, Municipal Council, Palvancha for 2009-10 it was noticed that an amount of Rs.26,490/- towards D&O trades fee was collected from the traders through M.R.No.080113601, dt.20.10.09 to M.R.No.080113700, dt.18.12.09 vide DCR Page No.49. But, the same was not taken into chitta from the D.C.R. and also not taken to the cashbook nor appeared in the Treasury pass book which confirms that the amount of Rs.26,490/- was misappropriated by the concerned. Hence, action would need to be taken for recovery of the said amount immediately besides taking disciplinary action.. (Para 60 of AR on the accounts of Paloncha Municipal Council, Khammam for 2009-10) 12(3) MUNICIPAL COUNCIL , SANGAREDDY - CHITTA AMOUNT SHORT REMITTED - LOSS NEEDS RECOVERY -

On verification of remittance particulars with reference to chitta, it is noticed that an amount of Rs.91,295/- was short remitted and misappropriation as detailed below. The matter was also brought to the notice of the Municipal Commissioner through half Margin letter No. Spl.No.6/2010-11, dt.29.03.2011.

Sl. No.

Chitta Page No

Date

Total Amount As per Chitta

(Rs.)

Amount Remitted

(Rs.)

Amount Short Remitted

(Rs.)

1 33 18-5-2010 221569 174662 469072 34 21-5-2010 25964 15963 100013 53 8/7/2010 63907 58833 50744 112 30-10-2010 49330 48473 8575 120 27-11-2010 38672 20376 182966 140 31-12-2010 49093 38933 10160 Total 448535 357240 91295

Then, the amount of Rs. 91,295-00 has been remitted to Rain water Harvesting account No. 52127793901, SBH Sangareddy on 2-4-2011and on 23-04-2011 after detection of irregularity at the time of audit. Penal interest is to be collected besides taking disciplinary action against the persons responsible.

(Para 42 of Municipal Council Sangareddy of Medak Distrtict for 2009-10)

281

12(4) MUNICIPAL COUNCIL, ZAHEERABAD - MISAPPROPRIATION-COLLECTED AMOUNT NEITHER TAKEN INTO IRSALNAMA NOR REMITTED TO MUNICIPAL FUNDS -LOSS NEEDS RECOVERY - Rs. 2,75,320/-

During verification of Receipt book to Irsalnama the following amounts were neither taken into Irsalnama nor into chitta.

Sl. No.

Name of the B.C Receipt No. Amount (Rs.)

1 K. Srinivas 6015/16.11.10 12102 Yadaiah 6176/8.12.10 274110 Total 2,75,320

Thus an amount of Rs. 2,75,320/- was misappropriated by way of neither accounting in Irsalnama in chitta and not remitting to Municipal funds. The same would need to be recovered from the above persons and credited to Municipal funds besides initiating disciplinary action.

(Para 29 of Municipal Council Zaheerabad, Medak Dist for 2009-10)

13. EXCESS PAYMENTS

It was observed that in several cases excess payments were made due to a) Incorrect Calculation b) Excess totaling in bills c) Admission of inadmissible claims d) Lack of knowledge of Government Instructions.

Consolidated statement of Excess payments Statement No.9 (2) is appended to the Report. The excess payments pointed out in 407 Audit paras were involving an amount of Rs.114.01 lakhs. 13(1) MUNICIPAL COUNCIL BHEEMUNIPATNAM, VISAKHAPATNAM - QUARTERS – QUARTERS ALLOTTED TO P.H.WORKS - NON- RECOVERY OF HRA AND STANDARD RENT - IRREGULAR Rs. 2,18,891/- As verified from the pay bills of PH workers of Municipal Council, Bheemunipatnam, it was noticed that HRA @ 10% was drawn and paid to the PH workers who occupied the quarters, though the HRA and standard rent have to be deducted as per G.O.Ms. (P) No.239 F&P (FW.PC-II) Dept., dated 26.9.2005 from the salary bills of employees who were provided with quarters as per FR 45-IV. Due to non deduction of HRA & Standard Rent the Municipal Council sustained loss to a tune of Rs.2,18,891/- which needs to be recovered from the persons responsible.

(Para 9(1) of AR of Bheemunipatnam Municipal Council, Visakhapatnam for 2009-10)

282

13(2) MUNICIPAL COUNCIL BHEEMUNIPATNAM, VISAKHAPATNAM - AMOUNTS PAID TO PRIVATE CONTRACTORS-INCOME TAX NOT DEDUCTED CONSEQUENTIAL EXCESS PAYMENT-NEEDS RECOVERY: Rs.16,361/-.

As verified from the cash book and vouchers the sanitation and scavenging work in municipal area was entrusted to private contractors on tender basis during the year 2009-10 and amounts were drawn and paid to them without deducting Income Tax @ 2.24% from the bills. Since the above expenditure comes under contract, as per the provisions under income tax act, it is mandatory for all the departments of central and State Governments, industrial Commercial or Trading undertaking of the central and State Governments, Local authorities, Statutory bodies Companies registered under the Company Act or any other persons notified by the Government to deduct tax @ 2.24% on the bills. But the same was not done and as a result excess amount was allowed to be paid to the contractors which needs to be recovered and remitted to Income Tax Department.

(Para 9(3) of AR of Bheemunipatnam Municipal council, Visakhapatnam for 2009-10) 13(3) MUNICIPAL COUNCIL BHEEMUNIPATNAM, VISAKHAPATNAM - WORKS – LABOUR CESS NOT RECOVERED – IRREGULAR - NEEDS RECOVERY OF Rs.16,664/-.

During the course of audit of work bills, files for the year 2009-2010, it was noticed that the Labour Cess @ 1% was not recovered from the contract works as per G.O.Ms. No: 57 F & P Dept Dt: 26-6-2007 which is contrary to the rules issued in the aforesaid G.O. Therefore, necessary action would need to be taken for the recovery of Rs.16,664 -00 towards 1 % Labour Cess from various contract works executed.

(Para 9(8) of AR of Bheemunipatnam Municipal council, Visakhapatnam for 2009-10)

13(4) ENGAGEMENT OF 4 NUMBERS OF TRACTORS WITH HYDRALLIC TRALLY - DOUBLE AMOUNT PAID - IRREGULAR - NEEDS RECOVERY - Rs.5,76,000/- Vide Vr.no.8 dt.19.09.2009 an amount of Rs.5,76,000-00 was paid to Sri M.K. Bala Kishan, Contractor towards engagement of 4 No. Tractors with Hydrallic trally for lifting of Garbage along with 12 No. laborers for the period July, 2008 to October, 2008 vide Cheque No.756687 dt.19.09.2009 from Non-Plan Cash Book. Again vide Vr.No.226/dt.17.02.2010 an amount of Rs.7,05,000-00 was paid to the individual for the period from July, 2008 to November, 2008 (5 months) from the General Fund Cash Book vide Cheque No.000930 dt. 17.02.2010 towards engagement of 4 No. Tractors with Hydrallic trally for lifting of Garbage along with 12 No. laborers which resulted in double payment for the period July, 2008 to October, 2008 which was paid earlier from Non Plan Grant Cash Book to the tune of Rs.5,76,000-00 loss caused to the Municipal Funds due to negligence of the executive authority.

Immediate steps would need to be taken to recover the excess amount paid from the person or persons responsible and credited to the Municipal Council funds under intimation to audit.

(Para 47 of Sangareddy Municipal Council of Medak Distrtict for 2009-10)

283

13(5) CELL PHONE CHARGES - AMOUNT PAID EXCESS OVER THE CEILING FIXED BY GOVT. - NEEDS RECOVERY - Rs.31,038/-. Government vide G.O.Ms.No.371, IT & C Dept., dt.24.9.2004, fixed ceiling on payment of cell phone charges @ 750=00 P.M and any excess needs to be borne by the user. But during the course of audit, it was noticed that an amount of Rs.31038=00 was paid towards cell phone charges in excess over the ceiling for several months which is irregular and recoverable. (Para 32 of AR on the accounts of Tandur Municipal Council, Rangareddy for 2009-10)


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. 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 2009-10 were expenditures that were avoidable, extraordinary and lacked proper planning.

Consolidated statement of Wasteful Expenditure incurred is annexed to the Report Statement No.9(3) from which it could be seen that an amount Rs.79.43 lakhs pointed out as Wasteful Expenditure. Some such 57 cases pointed out in Audit Reports. A few such cases are illustrated here under. 14(1) CONSTRUCTION OF SHOPPING COMPLEX NEAR NELLORE BUS STAND - WORK LEFT INCOMPLETE - WASTEFUL EXPENDITURE

Estimate. 40.24lakhs Grant. IDSMT Con. T.Shesagiri Rao M.B.No.143, 144/06.07

As verified from the connected record it was observed that the work construction of Shopping Complex, Near Nellore Bus Stand was entrusted to Sri T.Seshagiri Rao, Contractor with estimated cost of Rs.40.24 lakhs subject to completion within six months from the date of commencement. However, the said work has been completed at basement level by spending of Rs.12,79,992/- and left incomplete shape. Beyond that, the work was not executed and completed till today. The reasons for non completion of work after spending of huge amount were not stated to audit. The action if any taken by the executive authority against the contractor was not forthcoming to audit.

(Para No. 45 of MC Ongole, Prakasam District for the year 2009-10)

284

14(2) MC GADWAL MAHABOOBNAGAR - ADDITIONAL EXPENDITURE MADE ON GARBAGE LIFTING APART FROM WORKING OF SWEEPERS - WASTEFUL EXPENDITURE Rs. 1,06,890/- During the course of audit, it is noticed that, an amount of Rs. 1,06,890/- was drawn and paid towards lifting of Garbage in W.No. 9, 10 & 11 wards as noted below.

Sl. No.

Vr. No & Date Details Amount

(Rs.) 1 226/19.12.09 Garbage lifting @ W.No. 11, 38 labours = Sri.

Umapathi Goud, Cont 62700/-

2 227/19.12.09 Garbage lifting @ W.No. 9th & 10th ward 44190/- Total 106890/-

The labour who are working in Municipal Council are quite enough for the sanitation. But engaging additional labour for lifting of garbage @ W.No.9, 10 & 11 is wasteful.

(Para No. 71 of MC Gadwal of Mahaboobnagar District for 2009-10)

14(3) PROFESSIONAL CHARGES TOWARDS I.SO. – 9001 - 2008 CERTIFICATION WASTEFUL EXPENDITURE - AUTHORITY NOT POINTED OUT - Rs.1,00,000/-

As could be seen from proforma invoice No. 003/10-11, dated: 28-04-2009, the professional charges towards ISO9001-2008 certification was paid is as follows.

Sl. No. Details Amount

(Rs.) 1 Professional charges towards ISO9001-2008 certification 3000002 Service Tax @ 10.3% 30900 Total 330900

Out of Rs. 3,30,900/- a sum of Rs. 1,00,000/- was paid as advance in Vr No. 96/23.10.2009 towards professional certification during the year under audit. The Authority under which the professional certification order placed was not pointed out to audit for verification. Such type of expenditure is wasteful since the financial position of M.C. Medak is not good and unable to make emergency payments, from Municipal funds. Such payments would have been avoided. In view of the above facts, the payment thus made cannot be admitted in audit and is held under objections.

(Para No. 27 of MC Medak, Medak District for the year 2009-10) 15. INSTANCES OF CASES UN-ACCOUNTED CASH / STORES

Several instances of Cash / Stores unaccounted for were noticed during the course of audit and a few of such audit observations are furnished hereunder.

Consolidated Statement of cases of unaccounted Cash / Stores Statement No.9(3) is appended to the Report from which it can be noticed that 17 Paras pointing out to Rs. 4.71 Lakhs were raised during the year.

285

16. PENDENCY OF UTILIZATION CERTIFICATES According to Art 211-A (2) of the Andhra Pradesh Financial Code Volume-I, 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 huge number of Utilization Certificates were not furnished to audit for certification and transmission to the concerned grant releasing authorities.

In G.O.Ms.No. 507 Fin (TFR) Dept., dt. 10-4-2002, under para 12, Government have among others prescribed the pre-conditions on utilization for further drawal of Funds by the local bodies / Public Sector enterprises, Autonomous bodies and other Grant-in-Aid institution.

But the aforesaid Government orders are not being observed by the Executive Authorities which resulted in heavy pendency of Utilization Certificates to be furnished to the grant releasing authorities. Such cases as reported in the Audit Reports of Municipal Councils are shown in the statement appended herewith.

In audit for the year 2009-10 it was pointed that 99 UCs were pending involving an amount of Rs.551.99 Laks as shown in the Statement No. 9(3) appended to this report. 16(1) MC KOTTAGUDEM OF KHAMMAM DISTRICT - NON-SUBMISSION OF UTILISATION CERTIFICATES.

According to article 211 A (a) 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 Audit Officer, State Audit. But the same were not furnished to audit for certification and for onward transmission to the grant releasing authority.

UCs due to submission

UCs Submitted Balance Sl.

No. Purpose of Grant No. & date of

releasing authority No. Amount

(Rs.) No.

Amount (Rs.) No. Amount

(Rs.)

1 S.J.S.R.Y Self employment - 1 67500 1 67500

2 Building Dev. charges - 1 291142 1 291142

3 Shape Grants 1 1175400 1 11754004 Special Grant 1 1807221 1 18072215 Park Development 1 368648 1 3686486 ASC Drought 1 448716 1 448716

7 Natural Calamities fund 1 24828 1 24828

8 Office building 1 2232099 1 2232099

286

9 Solid Waste Management 1 3895915 1 3895915

10 Rajeev Nagara Bata 1 1809568 1 1809568

11 ACDP Funds 1 200111 1 200111

12 Community Structure 1 532108 1 532108

13 Shape -IV Grant 1 1775130 1 177513014 Pavala Vaddi 1 216639 1 216639 Total 14845025

(Para No. 34 of MC Kottagudem of Khammam District for the year 09-10)

16(2) MC Vikarabad of Ranga Reddy District - NON SUBMISSION OF THE UTILISATION CERTIFICATES

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, Rangareddy Dist.

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 this department and certification and transmission to the authorities concerned. The reasons for not submitting the Utilization Certificate was not explained in to audit which is held under objection.

(Para No. 39 of MC Vikarabad of Ranga Reddy District for 09-10)

16(3) MC BHEEMUNIPATNAM OF VISAKHAPATNAM DISTRICT PENDENCY OF UTILISATION CERTIFICATE - NEEDS AC TION

The Utilization Certificates in respect of the following Grants released during the year 2009-2010 were not 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 Certificated in the Proforma prescribed duly setting the same certified by the District

Sl. No.

Sl No. in the

statement

Name of the scheme Expenditure In Rs.

Bank name & Account No.

1 7 SJSRY (Pavalavadi) 6,06,336 SBH 52128124867 2 12 Janmabhoomi 2,33,736 SBH 52128162406 3 15 APRURMSP 1,61,428 AB

61301100014995 4 21 MLA GRANT 1,02,010 Sbh 5218162428 5 38 Solid waste mgt 7,25,688 AB 15965 6 41 Office Building a/c II 3,07,869 SBH 62024741837

287

Audit Officer, State Audit. But the utilization certificates have not been furnished even at the end of audit.

UCs due to be submitted

UCs submitted

Balance of UCs to be submitted

Name of the Grant

No Amount No Amount Office Building 1 - - - 1 679150Cyclone 1 - - - 1 45625712th Finance 1 - - - 1 832532OAP 1 - 1 2118093Water supply 1 - - - 1 3690010ASC 1 - - - 1 2254500Indiramma Pensions 1 - - - 1 4728143IHSDP 1 - - - 1 13000679MEPMA 1 - - - 1 77081Pavala Vaddi 1 - - - 1 14626Revolving Fund 1 - - - 1 167827M.P. Land 1 - - - 1 203290Retd Employee pensions 1 - - - 1 426173Office PF 1 - - - 1 296250TOTAL 28944611

(Para No. 114 of MC Bheemunipatnam of Visakhapoatnam District for the year 2009-10)


-Nil-

18. OTHERS

Other objections which did not fall in the above categories are incorporated under this category. Such objections numbering 1759 were raised for an amount of Rs.971.22 lakhs as detailed in Statement No. 9(3). 18(1) VINUKONDA MUNICIPAL COUNCIL GUNTUR - CERTAIN FUNDS NOT CAPTURED:

During verification of account in DEABAS it was noticed that certain funds were not captured in the account. The details of funds that were omitted in the new account when compared with the manual records/registers maintained are given below.

Sl. No. Name of the fund A/c No. of the bank

pass book 1 O.A.P. account 11352283688 2 Abhayahastham 060710100003369 3 Wakf board 23414 4 Pavalavaddi 23181 5 DDO Non Government Recoveries Account 11373140805 6 ASC 11373140781

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Further with so many entries missing how the account tallied was also not known.

(Para No. 1 of Vinukonda Municipal Council Guntur District for 2009-10) 18(2) VERIFICATION OF FOBS AND ANNUAL ACCOUNTS IN DEABAS - GENERAL OBSERVATIONS ON FOBS.

The general observations made during the course of audit of Municipalities in DEABAS are as follows; 1. Chapter-10 of AP Municipal Accounts Manual, envisaged certain guidelines to be followed while preparing the formats for the Assets and Liabilities. Contrary to the said guidelines certain inconsistencies/irregularities have been noticed during verification. The following are some of such instances.

As per guideline 10.6 a Steering Committee comprising of City Engineer and Head of Town Planning Section, Head of Accounts Section and Head of Pre Audit Section shall be responsible for coordinating task for collecting information for each of the categories of the fixed Assets. But no evidence is put forth to audit in support of formation/constitution of any such committee. The said guideline further envisaged that separate teams may also be formed in respect of Assets like Land, Building, Roads, Streets and Lanes, Bridges, Culverts, flyovers etc., Furniture’s etc., consisting of some officials as compulsory members in the said teams who shall collect information under the overall supervision of the Steering Committee and it was mandated that the information gathered should be signed by the members of the team concerned and authenticated by the members of the Steering Committee.

The Executive Authority failed to satisfy with regard to formation of the said

committees and authentication of the information by the said committees if formed and as such there was no assurance to audit that manual instructions have been followed in as much as constitution of committees is concerned and in the absence of authenticated information the overall correctness of the information provided in the FOBS cannot be held to be 100% correct and omission of any Asset cannot be excluded. 2. The information collated during physical verification relating to the Assets and Liabilities under various formats should be cross verified with the existing records maintained for the said Assets and Liabilities as per para 10.9.1 of the manual. But in general the information appears to have been collected and collated by obtaining information orally from the officials of the Municipal Council and there was no basic record to cross verify the correctness of the information provided. As a result many inconsistencies crept into the Final Opening Balance Sheet distorting the correctness of the Assets and Liabilities and their valuation. 3. The Municipal Councils, could not provide the Title Deeds of various Assets in respect of all Assets which shows the poor or lack of interest of the ULBs in preserving the most important documents. In respect of movable Assets the proof of purchase in the form of bills, invoices etc., were not produced in support of the purchase and valuation of such Assets during verification. The valuation of Assets and allowing depreciation on the Assets in the absence of proper record could not be held to be fool proof. 4. As per para no. 10.9.1 and 10.9.2 the details like ‘source of finance for the acquisition of the Asset’, ‘any restriction/covenants on the transfer of the Asset’, ‘pending

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litigation in respect of fixed Asset’ and ‘any un authorized use or encroachment on the fixed Assets’ are to be specified in the remarks column. No such specification was forthcoming even in respect of a single fixed or movable Asset. 5. Composite Assets which comprises of several types of assets like lands, buildings, play equipment, roads, footpaths etc., have to be capitalized under respective Asset Heads. But observance of manual instruction of composite assets was found to be deficient. This may lead to irregularities in calculation of depreciation when all the assets are taken in one form. 6. Asset reference number denoting any numbering/marking given to each piece of asset intended to identify any asset readily and to trace the movement or transfer of asset from one section to another and log the installation of asset, was not done and in each of the form instead of given asset reference number under relevant column only the number of assets were quantified. 7. The rates of depreciation for various types of assets as provided in the AP Municipal Asset Valuation Methodology Manual in Annexure-3 were not adopted scrupulously while calculating depreciation. 8. Charging of depreciation on the use of assets beyond 6 months in a year would lead to full year’s depreciation and use of assets less than 6 months to half year depreciation. But, the rationale was not adopted as per manual instructions in all cases. 9. As per the instructions contained in para 2.10 of AP Municipal Asset Valuation Methodology Manual proper classification of fixed assets employed in a code for each asset has to be undertaken to facilitate computerization of fixed assets management system and to make a wide variety of reports. But no such codification of assets was done resulting in non observance of manual instructions. 10. Annexure-1 of AP Municipal Asset Valuation Methodology Manual at para no. 7, mandates that after Final Opening Balance Sheet is prepared it shall be placed before the standing committee of Municipal Council and get its approval for adoption. This was not followed. 11. While valuing Buildings and other assets of the ULB whether the current standard cost rate method has been followed duly adopting the index for deflating cost as provided in Annexure-4 of AP Municipal Asset Valuation Methodology Manual has not been explained explicitly during verification. In the absence of the same there is no assurance in audit that the ULB has followed the manual instructions in this regard while valuing assets.

12. Assets not specifically covered in any of the form are to be identified as ‘other fixed assets’ which may include intangible assets such as software, rights, goodwill etc. And assets like traffic signals, statues and monuments, works of art and history minor movable assets etc., were to be capitalized under separate heads classified in other assets. But no proof of observance of this mandate is forthcoming during verification.

13. The AP Municipal Asset Management Manual, described that at the preliminary stage for collection of base data regarding the assets owned by the ULB certain registers have to be verified which are specified there in. but the fulfillment of this obligation was

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not pointed out to audit and no proof of verifying those registers was forth coming in audit.

FORM WISE OBSERVATIONS

18(3)(1) FORM NO. 1. LAND DETAILS The fact of verification of lands with reference to the registers as detailed below which are to be taken as the starting point for identification of Assets as per Para 2.49 of AP Municipal Asset Management Manual was not certified by the competent authority. In the absence of the same the genuineness of the data collected could not be certified by audit.

Sl. No.

Name of the register Source Particulars

1 Town Survey Land Register

Town Planning Section/Revenue

Department (MRO)

Details of urban lands

2 Resettlement register -do- Details of lands in villages 3 Fair Adangal (Pahani)

register -do- Details of lands in Estate

Villages 4 B.A. register Revenue Department

(MRO) Land movement register

5 POB register – Prohibited Order Book

-do- Records related to lands earmarked for specific purpose Ex. Temples, burial grounds etc.

6 Fixed Assets Register -do- Details of fixed Assets 7 Approved lay outs Town planning

section Reserve open spaces

8 Register for reserve open spaces

Town Planning section

Reserve open spaces

9 Register for council meetings

Municipal Corporation

Reserve open spaces

10 Register for Urban Development Authority (UDA)

UDA Reserve open spaces

11 Maps and lay outs of the municipal corporation

Director and Country planning (DTCP)

Lay outs approved by the gram panchayat before formation of Municipal Council

Though a sketch/boundary for each plot of land has to be annexed to the form

in no case such sketches were drawn and annexed While in column no. 2 it has to be specified whether the land is

Industrial/Residential/Agricultural no such specification was made in respect of many details.

The land details on which roads have been laid were not included in the form leaving vast tracts of land not captured as assets.

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The land details under the buildings, bridges, side drains, culverts or any other superstructures have not been included in the lands form.

A reference of title deeds was not given in respect of all the lands. The land details occupied by footpaths, traffic islands, pylons with statues,

walking tracks, centre dividers etc., were not provided in the FOBS. In respect of layout open spaces the details of ‘from whom acquired’ and

‘mode of acquisition’ in column no. 12 & 13 respectively were not properly recorded.

Burial grounds were not taken into this form, details as reported to audit at the time of verification.

The park reportedly located at C.R.P. quarters was not taken into this form The documentary evidence regarding arriving of current market value of lands

was not furnished at the time of verification of Final Opening Balance Sheet. Column No.8 and 9 in which the details of the improvement have to be

specified were shown not available in this form. If may not due any clue as to what improvements made to certain lands

2) FORM NO. 2 BUILDING DETAILS

The details of Bus Shelters, Traffic Islands, Choultries, etc., were not incorporated in the form.

The building details namely ‘from whom acquired’ and ‘mode of acquisition’ in column no. 20 & 21 respectively were not properly recorded.

The details of some Market Complexes, Shopping complex etc., as ascertained which have been omitted in the form.

In the absence of any record to arrive at cost of construction of building manual instructions prescribed that an Engineer or an independent Architect may arrive at the cost, but the valuation arrived at in the form whether based on any substantial evidence or not could not be verified.

Whether manual instructions in respect of arriving at the historical cost by taking the ‘cost of index for deflating cost for valuation of Asset’ as provided in Annexure-4 of AP Municipal Asset Valuation Methodology Manual were scrupulously followed or not was not forth coming during verification.

Instead of categorizing buildings into Municipal Offices, Residential Quarters etc., and as per manual instructions the details of buildings were noted ward wise.

The cost of improvement shown in the form whether correctly classified as capital expenditure could not be verified due to non production of connected records.

Hypothecated space in respect of multi storied buildings vested in Municipalities was not captured in the form.

The documentary evidences regarding arriving at the cost of current market values for buildings were not furnished.

In estimating useful life and depreciation rates of buildings it appears that guidelines envisaged in the manuals were not followed.

In case of two buildings having more than one floor each floor and its area has

to be shown separately for the purpose of computing cost of construction and depreciation but the manual instructions were not followed.

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3) ROADS, STREETS, LANES AND FOOTPATHS DETAILS.

Instances of under valuation of roads due to wrong calculation of the area/cost of the road were noticed during the verification. However, all the deviations could not be checked owing to paucity of time. The same may be reexamined.

The details of footpaths annexed to the road, street or lane have to be shown immediately below the details of the said road, street or lane. But, the same were not shown.

Depreciation was allowed on the aggregate value of cost of construction and improvement from the year in which improvement was made resulting in wrong calculation of depreciation allowed.

The list of various codes was not captured and collated ward wise, area wise. It was observed that identical rates of cost of construction of road was adopted

without applying the index for deflating cost as per manual instructions resulting in over valuation of assets and non observance of manual instructions.

Hence in respect of arriving historical cost by taking the cost of index for deflating

cost for valuation of asset as provided annexure-IV of A.P. Municipal Asset Valuation Methodology Manual were not scrupulously followed. The same may be re-examined.

Year of construction of road was only noted instead of date of construction in

column No.8 of this form. The details of survey numbers of land on which the roads have been

constructed were not noted in the column No.4 of this from. The column No.8 was filled only “year” as against “the date of

acquisition/construction”. 4) FORM NO. 4 BRIDGES, CULVERTS, FLYOVERS, SUB WAYS AND CAUSEWAYS

Depreciation- cost of improvement not specified. Information was not filled in the prescribed proforma except columns No.10,

14, 15 & 16. Documentary evidence for cost of construction Bridges and culverts not

furnished, even though the construction was made in the year 2008-09. The documentary evidences regarding cost of construction for bridges and

culverts were not furnished. In estimating useful life and depreciation rates of buildings guidelines were

not followed.

5) FORM NO. 5 DRAINS INCLUDING UNDERGROUND DRAINS

Documentary evidence for cost of construction drains was not furnished While verifying this form it was noticed that instead of arriving at the area of the

land where the drain is constructed in square meters, the volume of the drain has been arrived at which is contrary to the manual instructions.

Even while calculating the volume the empty space between two valves of the drain is also taken as constructed area and as such the total cost arrived at might be wrong.

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6) FORM NO. 6. WATER WORKS DISTRIBUTION DETAILS:

The distribution lines in the wards were taken into the form, but the connection from head water works to distribution system were not captured

The length of the pipe line covered by the distribution system alone was taken but the special (like t-bends, l-bends, valves etc.,) were not taken.

The number of bore wells and their cost, no. of hand pump sets, public taps etc., were not capitalized in this form.

The details of OHSR/GSR have been omitted in the form. 7) FORM NO. 7 PUBLIC LIGHTING SYSTEM DETAILS

The details of butterfly lighting system if any owned by Municipal Council, were not incorporated in the form.

While the rate of depreciation for lamp post is 3.3% and cable is 5%, the average of both has taken as the rate of depreciation for both lamp and cables.

The abstract of various types of street lights and fittings was not appended at the end of the form.

It was observed that in some of the cases cost of cables and laying charges was taken as Rs.2,00,000/- irrespective of No. of lamp posts and years of purchase or erection, which was not correct, the same may be re-examined.

It was observed that in some of the cases, length of cable used was shown as 2000 meters irrespective of No. of lamp posts, which was not correct.

As seen from the form, erection of public lighting system was only up to the year 2001, but subsequently though additions were made to public lighting system no efforts were made to include the same.

The column Nos.3, 6, 7 and 15 were left un-filled in this form. 8) FORM 8 (LAKES AND PONDS DETAILS AS ON 1-4-2009) :

Details of lakes/ponds were shown in the form. All of them were shown as acquired from Revenue Department (Except Sl.No.3). As per column 8, no improvements were made to them since 1987, which was not reliable.

The purpose for which the lake or pond is being used i.e., potable purpose or commercial activity has to be specified in column no. 2, but not done.

9) FORM NO. 9 CAPITAL WORK IN PROGRESS:

The assets should be transferred from CWIP to fixed assets registers when it is put to use. As observed from the form though entire expenditure on the work has been incurred and is put to use, no such transfer was made.

As observed from the form the Capital works include laying of roads, construction of drains etc., but such works were not referred to in the form.

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10) FORM 10 (PLANT AND MACHINERY DETAILS):

As observed from column No.10 of the form only the year was mentioned instead of date. Without the date of the commencement of the operation of the machinery it is difficult to determine whether the plant and machinery purchased is put to use or not and whether there is any delay.

Column No. 2 is also not filled properly and as such the purpose for which the machinery is use could not be ascertained.

As per para 2.7.9 of AP Municipal Asset Valuation Methodology Manual Plant and Machinery used specifically in water works, pumping stations, and sewerage treatment plant are to be classified under those heads. But it was noticed that all the Plant and Machinery have been captured only in this form.

Road rollers and Bulldozers owned by ULB have not been incorporated in this form.

The details of improvements to the plant and machinery have not been mentioned separately

It was noticed that the some of the machinery existing in the Municipal council as on 31-3-2009 were not incorporated in the form.

11) FORM 11 (VEHICLES):

Column No. 6 & 7 in which the details of the improvement have to be specified were left unfilled in all of the cases. It may not give any clue as to what improvements are made to certain vehicles.

Surprisingly the registration details of some of the vehicles though purchased years ago were not forthcoming.

The details of registration charges and incidental charges like insurance, name plates etc., whether included while computing the cost of the vehicle was not made known either in the form or during verification.

The rates of depreciation for various types of vehicles as provided in A.P. Municipal Asset Valuation Methodology Manual in Annexure-III were not adopted scrupulously while calculating the depreciation.

12) FORM 12 (FURNITURE AND FIXTURES DETAILS AS ON 1-4-2009) :

Details of Furniture and Fixtures purchased/obtained in recent years were not included in the form.

The Asset reference number which is to be mentioned in the column no. 4 was not given in general and instead the number of items under each head were given in the said column.

The details of furniture and fixtures in some of the offices/schools were not incorporated in the column.

The rates of depreciation for various types of vehicles as provided in A.P. Municipal Asset Valuation Methodology Manual in Annexure-III were not adopted scrupulously while calculating the depreciation.

As observed from column No.4 of the form, only the year was mentioned instead of date.

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13) FORM NO. 13 OFFICE EQUIPMENT DETAILS

Communication and Telecom equipment which is ought to be captured in this form was not incorporated.

The mobile telecom equipment like Mobiles, Wireless Handsets etc., were also not captured.

As observed from column No.5 of the form only the year was mentioned instead of date.

The Asset reference number which is to be mentioned in the column no.4 was not given in general and instead of the number of items under each head were given in the said column.

The details of Air conditioners owned by the Municipal Council have to be captured in this form, but the same was not done.

The rates of depreciation for various types of office equipment as provided in A.P. Municipal Asset Valuation Methodology Manual in Annexure-III were not adopted scrupulously while calculating the depreciation.

14) FORM NO. 14 OTHER EQUIPMENT DETAILS

The details of equipment related to Hospital/dispensary/play ground equipments etc., were not captured in the form.

15) FORM NO.16 INVESTMENTS

Corresponding investment registers duly maintained in prescribed format along with the TDR/FDRs were not produced during verification. Hence, the correctness of the assets in the form of investments could not be verified during the audit scrutiny.

The fact of 100% physical verification of the original certificates/investments whether insisted and obtained before recording the same in the opening balance sheet or not could not be verified owing to non production of the same.

The details of bank where the investments were made not mentioned in column No.3 of this form.

16) FORM NO.17 CASH BALANCE

The cash on hand as on 31.03.2009 remitted subsequently was not shown in this form as cash balance as in all probability the cash collected by the shroff or any other person could not have been remitted on 31.03.2009.

The details of Cheques/Demand drafts received but not deposited as on 31.03.2009 were also to be incorporated in this form were omitted.

17) FORM 18 (BANK BALANCES AS ON 1-4-2009) :

Not even a single cash book and bank pass book/Bank scroll was produced for physical verification. Hence, the correctness of the bank balances shown in the form could not be verified.

Whether the Bank Balances were reconciled with reference to the respective

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cash book balances as on the date of opening balance sheet was not forthcoming before arriving at the bank balances.

18) FORM NO. 19 DETAILS OF ADVANCES PAID TO SUPPLIERS/CONTRACTORS AS ON 01.04.2009

There was no assurance to audit that no advances were given to Suppliers/Contractors as the register of advances was not maintained with up to date entries and produced during verification. (evidence to be enclosed)

As observed from the form that information was filled under the head “other assets” instead of providing details of advances paid to suppliers/contractors, which was not correct.

19) FORM NO. 20 DETAILS OF LOANS AND ADVANCES TO EMPLOYEES AS ON 01.04.2009

During verification it was noticed that only personal advances given to employees like Festival Advances, Marriage Advance, Motor Cycle Advance were incorporated but advances made to employees like Work Advances to Engineering Staff, TA Advances paid to staff if any whether captured or not could not be verified as the register of advances recoverable was not update and produced to audit.

In respect of interest bearing advances whether interest is included in the amount outstanding or not could not be verified.

20) FORM 21 (RECEIVABLES DETAILS (INCLUDING TAXES, WATER CHARGES, RENT ETC.) :

The receivables for the tax income like Property Tax, Advertisement Tax etc., which are to be recorded as current assets in this form as per the demand registers and notices and to be determined year wise segregating separately for at least 5 years preceding the date of opening balance sheet were not computed accordingly as per manual instructions instead, receivables for one year i.e., 2008-09 or a consolidated figure without specifying year wise receivables have been incorporated in the form.

Receivables on account of Charges, Fees and Rental Income collated from demand registers of various items determined year wise segregating separately for at least 3 years preceding the date of OBS had to be computed as per manual instructions but the ULBs failed to undertake this exercise diligently resulting non capturing of vital information in the OBS

Interest receivable on investment/bank deposits gathered from the investment registers/pass books was not computed and incorporated in the form.

21) FORM NO. 22 GRANTS RECEIVABLE

The details of grants receivable if any could not be verified as the register of grants receivable along with the connected files was not produced to audit scrutiny.

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22) FORM NO. 23 (INVENTORY DETAILS AS ON 1-4-2009 :

Inventory relating to water distribution like meters, pipes, valves, sluices, spare parts, GI specials etc., was not captured.

Inventory details relating to vehicles like tyres, tubes, bearings etc., were also not incorporated.

Inventory details relating to Public health pesticides, conservancy articles, medicines, injunctions etc., were not incorporated in this form.

Inventory details relating to water supply exotic gas, bleaching, alum and oil balls etc., were not incorporated in this form.

Whether the stocks as on 31.03.2009 were physically verified and certified to the extent of 100% by the competent authority or not was not pointed out during verification. In the absence of the same the correctness of the inventory details and the valuation of the same could not be verified during audit scrutiny.

23) FORM NO. 24 DETAILS OF DEPOSITS MADE

Additional security deposits paid to the Electricity Dept., from time to time on increased contract load were also not incorporated

The deposits made if any in any Court of law on account of any litigation were not incorporated.

Deposits made with Revenue Dept., in the cases of Land Acquisition if any were also not incorporated.

Deposits made with Labor Dept., were also not specified.

24) FORM 25 (LOANS PAYABLE DETAILS) :

Owing to non production of register of loans/connected files the correctness of information provided under this form could not be certified in audit.

As observed from this form the information in column No.2 and 3 was not filled correctly.

25) FORM 26 (UN UTILIZED GRANTS DETAILS AS ON 1-4-2009) :

The ULB failed to produce the register of grants, Grants appropriation registers to cross verify the information provided in this form to certify the balances of grants remained unspent.

The purpose for which grants were received was not specified in Col.No. 2 of

the form contrary to manual instructions. 26) FORM NO. 27 RESERVE FUND DETAILS

Consequent to admitting the salaries of Municipal employees under the Head 010 and Payment made from Treasuries any arrears of Pay and Allowances, Pensionary Benefits, Medical Reimbursement etc., are to be paid only by Treasuries but not from the General Funds of the ULBs as per G.O.Ms.No.179/MA&UD(G1) Dept., dt.25-2-2009. As such making reserve fund for Salaries, Pensions etc., in the form as payables is apparently wrong and represents a drain on the funds of the ULBs.

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The information relating to the amounts set aside and ear marked funds for meeting specific obligations representing reserve fund was not captured in this form.

27) FORM 28 DETAILS OF DEPOSITS RECEIVED AS ON 1-4-2009:

The format was not prepared section-wise. The details of deposits received are not being recorded as and when the

deposits actually received. The details of deposits obtained from designated Municipal Officials like Bill

collectors, Cashiers towards security deposits as they were dealing with cash or stores which are refundable in nature at the completion of relevant obligation were not captured in the form.

The correctness of the information furnished in the form could not be certified in audit scrutiny as the register of deposits was not made available for verification.

28) FORM NO. 29 BILLS AND OTHER PAYABLES DETAILS

The details under the Head ‘other expenses’ were not explained in detail. The justification for providing a lump sum amount under this head without details is repugnant to the known principles of accounting.

Consequent to admitting the salaries of Municipal employees under the Head 010 and Payment made from Treasuries any arrears of Pay and Allowances, Pensionary Benefits, Medical Reimbursement etc., are to be paid only by Treasuries but not from the General Funds of the ULBs as per G.O.Ms.No.179/MA&UD(G1) Dept., dt.25-2-2009. As such making provision for Salaries, Pensions etc., in the form as payables is apparently wrong and represents a drain on the funds of the ULBs.

Library cess which is a component of the property tax collected and payable to Dept. of Libraries has to be recognized as payables under this form as per para 4.4 of AP Municipal Asset Valuation Methodology Manual. Contrarily the quantum of Library Cess payable was not arrived at and incorporated in the form.

The correctness of the information in the form relating to other payables could not be verified due to non availability of connected records.

29) RESULT OF VERIFICATIN OF FOBS: The Final Opening Balance sheet furnished is not free from inconsistencies. Many deviations from the manual instructions, like mis-classifications, omission of Assets/Liabilities over/under valuation of Assets wrong calculations, arithmetical inaccuracies etc., were noticed however, due to the constraints of time all the defects could not be pointed out. In the given circumstances the correctness of the Final Opening Balance Sheet could not be cross verified owing to non production of base records. In the absence of such basic records/register the correctness of the Final Opening Balance Sheet could not be certified in audit. The Final Opening Balance Sheet need to be revised duly rectifying the defects pointed out and other defects that existed.

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30) RECEIVABLES AND PAYABLES NOT ASCERTAINED PROPERLY APMAM mandates that the receivables in case of tax income shall be ascertained

for the last five years and incase of non tax income for the last three years. But the same was not adopted either in the FOBS or in the account rendered now to audit. If the receivables and payables are not assessed properly now there is every chance that the interest of the institution suffers at a later date. However the basis for the amounts arrived at as receivables and payables was also not made known to audit. 31) ADVANCE COLLECTION OF D&O TRADE FEES INCLUDED IN THE I&E STATEMENT

The convention in the ULBs with regard to the collections of D & O trade fees was to collect the same in advance for the subsequent year i.e., before February of an year. The collections made after February are to be made along with collection of belated fees. The advance collection made shall be kept under deposit for this year and adjusted to General funds in the subsequent year. But during the course of verification of account it was noticed that the said distinction was not observed and the collections made were not classified in to the year to which they pertain. As a result of which the entire amount collected is reflected as income in the Income and Expenditure statement for the year 2009-10 though the income actually pertains to the year 2010-11. The correctness of the Income and Expenditure statement to that extent suffered due to the above defect pointed out. 32) NON MAINTENANCE OF REGISTERS PRESCRIBED IN THE MANUAL

The APMAM prescribed maintenance of certain registers and forms. The formats

of the books, registers and forms referred to in Table 4.1 of Chapter 4 need to be maintained. But it was observed that all the registers and forms were not maintained contrary to the instructions contained in the manual. The details are mentioned in Annexure-I.

Annexure I

Details of Registers/Statements/Forms not produced Sl.No. Form No. Name of the Register/Statement

1 GEN-9 Receipt Register 2 GEN-10 Statement on status of cheques received 3 GEN-11 Collection Register 4 GEN-12 Summary of daily collection of Tax Revenue/Non-Tax

Revenue collection office/collection centre 5 GEN-13 Register of bills for payment for the year 6 GEN-14 Payment Order 7 GEN-15 Cheque Issue Register 8 GEN-16 Register of Advances for the year 2009.10 9 GEN-17 Register of Permanent Advance 10 GEN-18 Register of Deposits for the year 2009.10 11 GEN-19 Summary Statement of Deposits adjusted 12 GEN-20 Demand Register of ____________Income for the year

2009.10

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13 GEN-21 Notice/Bill of _____________Income for the period 14 GEN-22 Summary Statement bills raised for the period ___________ in

respect of _______________ 15 GEN-23 Register of Distrant Fee, Warrant Fee, Other Fees and

penalties charges in respect of __________ 16 GEN-24 Summary Statement of Distrant Fee, Warrant Fee, Other Fees

and Penalties Charged 17 GEN-25 Register of refunds, remissions & write off for the year

__________ in respect of _______________ 18 GEN-26 Summary Statement of Refunds and remissions for the period 19 GEN-27 Summary Statement of Write-offs for the period 20 GEN-28 Statement of outstanding liability for expenses as on 21 GEN-29 Document control register/Stock account of receipt/Cheque

book 22 GEN-30 Register of Immovable Property 23 GEN -31 Register of Movable Property 24 GEN-32 Register of Land 25 GEN-35 Asset Replacement Register 26 GEN-36 Register of Public Lighting System 27 G-1 Grant Register 28 OTH-1 Summary Statement of Demand Raised on Assessment for the

year 29 OTH-2 Summary Statement of year-wise collection of other incomes

for the period 30 OTH-3 Summary Statement of Refunds for the period 31 OTH-4 Summary Statement of write offs for the period 32 WS-1 Summary Statement of Demand raised on assessment for the

period 33 WS-2 Summary Statement of year-wise and head-wise collection of

Water Taxes for the period 34 WS-3 Summary Statement of Refunds/Remissions for the period 35 WS-4 Summary Statement of Write offs for the period 36 ES-1 Consolidated pay bill/summary roll of the

permanent/temporary establishment for the month of 37 ES-2 Register of Employee Loans/Advances for the year 38 ES-3 Register of interest of loans to employees for the year 39 ES-4 Unpaid salary for the year 40 ES-5 Register of Pension Payment Order 41 ES-6 Pension Register 42 SF-1 Special Funds Register 43 BR-1 Register of Loans 44 BR-2 Register of Debentures 45 BR-3 Register of Sinking funds 46 IN-1 Investment Ledger/Register 47 IN-2 Calculation Sheet for Provision for Diminution in Value of

Investments for the period ending 31.03.2010 48 ST-1 Material Receipt Note 49 ST-2 Stores Ledger

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50 ST-3 Statement of closing stock as on 31.3.2010 51 ST-4 Statement of material issued to contractors 52 PW-1 Summary Statement of status of capital work-in-progress/

Deposit works 53 PW-2 Work Sheet 54 PW-3 Deposit Works Register 55 LA-1 Register of Loans to Others 56 SPL-1 Register of grants to school boards/Other undertakings

33) VOUCHERS NOT VERIFIED DURING DATA ENTRY:

It appears that at data entry level the original vouchers were not verified and as such the

vouching appears to have been done based on the entries in the cash book leading to many misclassifications and incorrect totalling etc. 34) RECEIVABLES AND PAYABLES NOT ASCERTAINED PROPERLY :

APMAM mandates that the receivables in case of tax income shall be ascertained for the last five years and in case of non tax income for the last three years. But the same was not adopted either in the FOBS or in the account rendered now to audit. If the receivables and payables are not assessed properly now there is every chance that the interest of the institution suffers at a later date. However the basis for the amounts arrived at as receivables and payables was also not made known to audit. 35) RECEIPT ENTRIES WERE BASED ON CHITTA :

It was observed in audit that the base document that was considered for recording receipt

entries in the new system of accounting was Chitta. The endeavour of the CA who prepared annual accounts was to faithfully account for all the entries in the Chitta as receipt entries in the annual accounts. But, no effort was made to trace amounts collected by the collection staff and remained unremitted if any. 18(4) MUNICIPAL COUNCIL , BHEEMUNIPATNAM, VISAKHAPATNAM - ENTERTAINMENT TAX –CABLE OPERATORS- LICENSE FEE etc NOT COLLECTED. As per G.O.Ms. No: 708 Revenue (CT – II) Dept Dt: 03-10-2000 and Govt . Memo No: 581 / TC/2001-1 MA & UD ( TCI) Dept Dt: 30-01-01, the Commissioners of Municipal Corporation/ Municipalities have to act as Entertainment Tax Officers to exercise powers in respect of collection of Tax on entertainment on cable television net work operated by the Cable TV Operators within their respective jurisdiction under the provisions of the APET Act, 1939. The Commissioners have to conduct door to door survey for identifying the houses with cable connections given by the operators and verify their RCS and obtain the information regarding number of connections given by the Master Cable Operator. Further, as per section 15 of the APET Act, 1939 every cable operator has to pay ET per month @ Rs.3/- per connection and according to section 15 B of the Act, the cable TV Operator has also to pay license fee of Rs. 3000/- per annum and every Master

302

Cable Operator has to pay license fee of Rs 100 /-and as per Section 15 C, every Master Cable Operator shall deposit the amount.

But it is noticed that no such survey was conducted to ascertain the number of Cable TV Connections, Cable Operators & Master Cable Operators and to fix demand of the entertainment tax. The inaction of the authorities is clearly established in the regard.

(Para 4(6) of AR on the accounts of Municipal Council, Bheemunipatnam, Visakhapatnam) 18(5) MUNICIPAL COUNCIL, ONGOLE ACCUMULATED DEPRECIATION EXCESS SHOWN IN FINAL ACCOUNTS Rs.8,73,50,881-90

The accumulated depreciation on fixed assets as per the statement of depreciation

arrived at in the FOBS was Rs.41,94,60,045-00 and the provision made for the year 2009-10 as per the Income and Expenditure statement was Rs.7,33,07,163-41. The total of these two should agree with the accumulated depreciation in the balance sheet for the year 2009-10 on fixed assets. But the same was shown as Rs.58,01,18,090-31 which was Rs.8,73,50,881-90 excess and as a result the assets were less stated by that amount. Moreover how the accounts in the Municipal General Funds under the head accumulated depreciation were shown as tallied could not be understood. The details are as follows

Opening balance of Accumulated Depreciation as on 1-4-2009 as per FOBS balance sheet as on 01-4-2009

Rs.41,94,60,045-00

Depreciation provided on fixed assets during the year as per income and expenditure statement for the year 2009-10

Rs.7,33,07,163-41

Total accumulated depreciation to be shown in Balance sheet as on 31-3-2010

Rs.49,27,67,208-41

Accumulated depreciation already shown in Balance Sheet

Rs.58,01,18,090-31

Excess Shown Rs.8,73,50,881-90 In view of the above defect the correctness of the financial statements for the year

2009-10 and 2010-11 could not be held to be correct in audit.

(Para No. 51.53 of Ongole Municipal Council Prakasam District for the year 09-10)

18 (6) MUNICIPAL COUNCIL , PALVANCHA, KHAMMAM - PROPERTY TAX COLLECTED – DELAY IN REMITTANCE – TEMPORARY MIS-APPROPRIATION OF MUNICIPAL FUNDS – RS.1,20,000/-

On verification of chitta of general fund account 001 and 002, it was observed that, the amount collected towards property tax and water tax was remitted into Treasury with abnormal delay though the amounts collected were to be remitted on the very next day. Without following such instructions, kept the amounts on hand for months together and conveniently remitted with abnormal delay to be fixed or to be deleted which highly irregular and found to be a clear evidence of temporary misappropriation of Municipal funds. An amount of Rs.5,00,000/- was found to be on hand for the entire year which would need to be remitted immediately duly taking steps to avoid such practice in future.

(Para 14 of Audit Report on the accounts of Municipal Council, Paloncha Khammam)

303

18(7) PAYMENT OF SURRENDER OF E.L.SALARY AND FESTIVAL ADVANCE TO N.M.Rs - IRREGULAR – NEEDS RECOVERY Rs.1,12,783/- An amount of Rs. 85783/- towards, surrender of Earned Leave and Rs. 27,000 towards Festival advance were paid to NMR workers through Vr. No. 3788/1-1-2010. As per the instructions in vogue, the NMRs are not eligible for earned leave credit there by surrendering of EL does not arise. Therefore, payment of Surrender Leave and festival Advance to the N.M.R workers is contrary to the rules and found to be miss use of drawing powers and the said amounts need to be recovered from the sanctioning authority for misusing the Drawing powers.

(Para 16 of Audit Report on the accounts of Paloncha Municipal Council, Khammam) 18(8) MUNICIPAL COUNCIL , BHEEMUNIPATNAM, VISAKHAPATNAM - D&O TRADE LICENCE FEE DEMANDS NOT FIXED AND COLLECTED FOR IML SHOPS & BARS –LOSS - NEEDS RECOVERY: Rs.2,53,552/-. As verified from the License Fee demand Register it was noticed that the license fee demand for IML shops was not fixed and collected and no reasons for not fixing the demand and collection of the license fee were forthcoming to audit despite having issued Half Margin letters to the Municipal authorities. The details of IML Auction and allocation during 2009-10 in Bheemunipatnam Municipal Council Limits have been obtained from the Prohibition and Excise Department as detailed in the Statement. As per provisions in circular No.111/R&E/R-I/98 of the Director General of Vigilance & Enforcement, Andhra Pradesh, Hyderabad, not less than 1% of the annual Rental value has to be levied and collected towards License fee from IML shops/Bars. Accordingly the Bheemunipatnam Municipal Council has issued a notification for levy of license fee for the said category as item No.18 under schedule 4 of Section 263 of APMAct-1965 where in it was fixed as Rs. 4,000/- against to the council resolution No: 132 Dt: 27-1-2001.

Sl.

No. Name of the License Shop & Location

Annual

Rental

Value

(Rs.)

License to

be levied

and

collected

(Rs.)

1 Sri Raja, Wine shop By pass road Tagarapuvala, Ward -1 11,76,500 11,765

2 Sri Sai Ganesh Wine shop, Tagarapuvalasa, Ward No: 11 19,50,0000 19,500

3 Rama wine shop , Tagarapuvalasa ,Ward No: 8 16,00,500 16,005

4 Rama wine shop , Tagarapuvalasa , Ward No:10 13,64,000 13,640

5 Sunitha wines, ChittivalasaWard No: 3 12,50,000 12,500

304

6 Yellamma Thalli Wines, Chittivalasa, WardNo:5 11,72,840 11728

7 Polamamba wine , Tagarapuvalasa, Ward No:10 18,00,000 18,000

8 Sri Santosh Wine By pass Road Tagarapuvalasa, Ward

No:8

17,50,300 17,503

9 Sri Sai Ram wines TagarapuvalasaWard No:8 16,12,500 16,125

10 Reddy wines, TagarapuvalasaWard No:6 15,16,167 15,162

11 Sri B haryag Laxmi Wines ,Tagarapuvalasa, Ward

No:8

18,00,000 18,253

12 Sri Durga Wines , TagarapuvalasaWard No:18 15,80,000 15,800

13 Sri Gostani Wines , TagarapuvalasaWard No:18 16,50,150 16,502

14 SriPolamamba Wines , TagarapuvalasaWard No:21 16,17,228 16,172

15 Sri Puskar Wines , TagarapuvalasaWard No:21 18,59,688 18,596

16 Sri Sai Wines , TagarapuvalasaWard No:22 16,30,056 16,301

TOTAL 2,53,552

Immediate action needs to be taken for collection of the same duly fixing the demand every year.

(Para 6(13) of AR on the accounts of Bheemunipatnama Municipal Council, Visakhapatnam)

19. DEMAND DRAFTS / CHEQUES / BANKERS CHEQUES ETC. RECEIVED BUT NOT REALIZED WITHIN TIME

Demand Drafts and Cheques received in payment of money due to the Municipal Councils are to be entered in a Register of Demand Drafts and Cheques Received and should be sent to the Banks for realization immediately. In the fallowing cases Demand Drafts received were kept in the files and some of the Demand Drafts were sent to the issuing Banks for revalidation as they became invalid 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 4 cases involving an amount of Rs.237.11 lakhs, pointed out in the audit for the year 2009-10 is appended as Annexure 9(3). 19(1) MUNICIPAL COUNCIL YELLANDU, KHAMMAM - CHEQUES / DDs RECEIVED – NOT SENT TO BANK FOR REALISATON - Rs.18,300/-

As verified from the Register of Cheques/DDs Received, it was noticed that the following amounts were received from various sources but the same were not found adjusted as verified from the cash books, pass books of the Municipal Council which confirms that the DDs were not sent for realization, need realisation and adjustment against the head of account relevant.

305

Sl. No.

Ch.No. & D.D.No. & Date Particulars Amount

(Rs.)

1 710660,710665,710669 dt.13-04-2009 Loan recovery of Sri E. Lingamurthy 1400

2 824359 Tirumala Fabrication works Hyd. EMD 500

3 307597 EMD received from P. Satyanarayana, contractor. 1400

4 656867/10.03-2010 --no details 75005 656786/10-03-2010 --no details 7500 Total 18300

(Para 52 of Audit Report on the accounts of Municipal council, Yellandu, Khammam) 19(2) MUNICIPAL COUNCIL PALVANCHA, KHAMMAM CHEQUE RECEIVED FROM E-SEVA – NOT SENT TO BANK FOR RELAISATION -Rs. 2,45,691/-

During verification of cheques received from E-seva, Paloncha, a cheque bearing No.841702/31.03.10 for Rs.2,45,691/- was received towards property tax from e-seva, but the same was not entered in the Register of D.D./ cheques received nor sent to Bank for realization as result of which the amount could not be brought into municipal funds for use and as such the Institution suffered paucity of funds. The consequential loss of interest may be recovered from the person / persons responsible.

(Para 66 of Audit Report on the accounts of Municipal council, Paloncha, Khammam)

HYDERABAD DIRECTOR DATE:13-03-2013 STATE AUDIT, A.P., HYDERABAD.

(Contd.. in P.311)

ACCOUNT STATEMENTS OF MUNICIPALITIES

SECTION - II

Sl. No.


DEMAND AS ON

01-04-2009

AUDIT COMPLETED

AS ON 31-12-2012


1 ADILABAD 7 0 7

2 ANANTHAPUR 6 6 0

3 CHITTOOR 7 7 0

4 EAST GODAVARI 7 7 0

5 GUNTUR 12 12 0

6 KADAPA 6 6 0

7 KARIMNAGAR 4 3 1

8 KHAMMAM 6 5 1

9 KRISHNA 5 5 0

10 KURNOOL 4 4 0

11 MAHABOOBNAGAR 4 4 0

12 MEDAK 5 5 0

13 NALGONDA 4 4 0

14 NELLORE 3 3 0

15 NIZAMABAD 3 1 2

16 PRAKASAM 4 4 0

17 RANGA REDDY 2 2 0

18 SRIKAKULAM 5 5 0

19 VISAKHAPATNAM 2 2 0

20 VIZIANAGARAM 4 4 0

21 WARANGAL 1 1 0

22 WEST GODAVARI 7 4 3

TOTAL: 108 94 14

STATEMENT No.1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF MUNICIPAL COUNCILS FOR THE YEAR 2009-10 AS ON 31.12.2012

311

No. Value No. Value No. Value No. Value No. Value No. Value No. Value1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.002 Anantapur 499 2485.19 333 16656.30 5221 8778.26 1893 535.74 3176 3343.07 3517 1918.40 4374 1156.723 Chittoor 717 1687.22 237 7543.58 669 2732.17 46 210.74 876 1808.05 1079 1123.90 360 599.704 East Godavari 321 9.13 474 3395.94 2978 2481.57 805 1208.79 1953 1117.15 1451 1074.36 1723 57.245 Guntur 468 10.23 357 4053.76 5712 10321.55 2520 1508.62 15158 3237.74 1139 1731.18 5881 660.326 Kadapa 379 2731.54 113 1184.45 1779 5378.56 1007 112.45 461 1353.61 1478 2161.09 977 316.067 Karimnagar 426 110.25 36 1097.17 346 2411.74 81 479.73 956 710.72 1096 779.18 841 283.998 Khammam 182 0.00 70 163.92 238 3302.82 564 2215.75 410 2369.08 608 318.62 284 285.799 Krishna 361 21.15 133 1012.85 5959 1565.06 941 294.37 2665 1063.93 945 974.90 3257 185.1710 Kurnool 258 1403.46 2332 20533.84 1829 18961.95 665 583.30 955 2610.33 363 956.82 200 132.1711 Mahabubnagar 107 34.45 88 1987.17 2087 1277.08 674 272.49 1318 1384.87 1945 1285.76 1535 386.4912 Medak 82 26.00 35 432.97 381 1464.02 116 452.95 262 511.96 167 906.35 175 392.8613 Nalgonda 102 664.01 58 5608.29 1142 10377.44 111 177.40 371 3434.48 437 2208.32 136 1368.6914 Nellore 49 489.95 244 375.70 1293 1067.37 631 79.17 541 433.01 637 448.97 683 30.3215 Nizamabad 125 0.00 4080 111.80 83 365.66 33 324.18 47 38.82 8 58.83 40 77.7516 Prakasam 166 148.02 142 1868.62 3060 3750.07 59 194.75 1245 2182.34 1161 497.04 1838 146.7517 Rangareddy 103 0.00 41 108.44 236 762.38 91 62.80 217 393.43 121 222.45 100 315.5118 Srikakulam 372 0.00 204 1418.26 1384 3056.90 56 248.21 4777 789.16 2796 1233.15 561 61.8219 Visakhapatnam 166 0.00 154 1045.56 96 930.75 359 442.81 220 708.84 91 451.22 87 419.0420 Vizianagaram 282 80.00 268 746.84 2178 2597.55 1982 839.15 2023 643.37 4174 827.27 463 90.7021 Warangal 39 144.75 23 400.20 591 471.42 0 0.00 403 346.56 483 254.74 54 11.3722 West Godavari 198 152.00 295 1722.58 1800 1248.76 52 206.03 1299 374.19 993 105.43 917 179.00

Total 5402 10197.38 9717 71468.26 39062 83303.08 12686 10449.43 39333 28854.72 24689 19538.01 24486 7157.47

Sl. No.

Lightings(Form.7)Name of the

Dist

Land(Form.1)

Building(Frorm.2)

STATEMENT No.2 (1)OPENING BALANCE SHEET OF MUNICIPAL COUNCILS AS ON 01.04.2009

Rs. In Lakhs

Roads(Form.3)

Culverts(Form.4)

Drains(Form.5)

Water Works(Form.6)

Page 312

No. Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.002 Anantapur 6 0.00 83 603.95 479 115.22 74 272.75 2785 25.02 82 14.70 166 19.89 0 0.00 18 177.983 Chittoor 43 0.00 5 135.30 235 344.04 68 223.39 173 32.96 74 12.92 8 15.73 0 0.00 12 376.124 East Godavari 44 3465.12 75 1177.17 51 24.81 59 137.88 336 14.35 70 2.97 14 5.04 0 0.00 38 447.075 Guntur 22 4639.70 36 251.65 442 160.91 96 276.19 360 17.85 122 21.38 14 0.89 0 0.00 65 1260.616 Kadapa 0 0.00 46 493.61 136 60.56 58 136.68 181 30.88 87 10.70 12 0.66 0 0.00 0 0.007 Karimnagar 0 0.00 5 456.70 274 6.38 31 42.22 63 3.13 20 3.80 1 0.67 0 0.00 23 373.938 Khammam 16 0.00 0 0.00 47 18.40 47 71.69 155 6.21 79 5.38 0 0.00 0 0.00 2 45.859 Krishna 36 644.29 0 0.00 110 27.37 92 118.84 189 1.14 44 6.25 4 1.06 0 0.00 15 289.0310 Kurnool 2 944.69 2 57.95 209 122.47 56 216.40 314 7.47 51 21.22 46 42.74 0 0.00 69 641.1311 Mahabubnagar 0 0.00 4 4940.37 279 81.00 35 99.51 28 2.15 34 1.95 9 25.91 0 0.00 3 75.5012 Medak 14 0.00 7 514.38 40 26.80 34 86.50 51 1.26 15 0.10 9 3.27 0 0.00 4 16.5713 Nalgonda 3 0.00 9 61.82 227 39.97 42 123.87 59 0.89 50 2.61 9 0.00 0 0.00 13 280.7314 Nellore 9 33.00 26 482.86 80 10.83 20 43.41 86 5.02 33 107.80 2 0.56 0 0.00 9 96.9715 Nizamabad 1 0.00 3 97.62 428 40.60 7 19.80 26 2.77 9 0.90 0 0.00 0 0.00 0 0.0016 Prakasam 26 2036.83 18 88.52 61 15.38 58 96.64 94 1.34 72 24.28 16 10.37 0 0.00 20 553.4817 Rangareddy 1 895.00 0 0.00 231 17.29 14 46.90 65 0.49 16 0.36 7 2.70 0 0.00 2 106.5518 Srikakulam 160 0.00 1 390.51 80 19.63 53 108.55 129 7.90 55 8.76 3 8.29 0 0.00 18 188.0219 Visakhapatnam 2 16.00 7 73.81 102 2.47 27 56.43 118 1.20 23 0.52 0 0.00 5 0.09 8 146.8720 Vizianagaram 47 0.00 0 0.00 14 19.89 20 60.13 219 0.76 24 0.29 0 0.00 0 0.00 25 225.9521 Warangal 0 0.00 0 0.00 18 0.00 2 8.67 54 0.00 64 0.00 0 0.00 0 0.00 6 131.6122 West Godavari 28 0.00 10 7.55 67 18.57 56 73.63 491 11.92 153 3.59 1 0.04 0 0.00 41 325.50

Total 460 12674.63 337 9833.77 3610 1172.59 949 2320.08 5976 174.71 1177 250.48 321 137.83 5 0.09 391 5759.44

Rs. In Lakhs


Sl. No. Name of the Dist

Live Stock(form.15)

Investments(Form.16)

Vechiles(Form.11)

Furniture (Form.12)

Office Equipment(Form.13)

Other Equipment(Form.14)

Lakes & Ponds(Form.8)

Capital Works(Form.9)

Plant Machinery(Form.10)

Page 313

Cash(Form.17)

Banking Opening

(Form.18)Value Value No. Value No. Value No. Value No. Value No. Value No. Value No. Value

1 Adilabad 0.00 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.002 Anantapur 54.72 2143.67 14 53.73 943 148.36 56 942.37 8 78.35 185 27.43 12 100.90 23924 39652.743 Chittoor 57.51 1915.69 1 15.79 946 42.50 45 1308.92 4 251.28 33 798.68 46 404.15 5677 21640.354 East Godavari 104.00 1982.37 1 0.73 1194 83.51 63 1014.83 57 894.68 253 46.46 24 149.28 11984 18894.455 Guntur 256.39 3351.20 1 0.63 555 101.65 50 827.32 16 1207.47 661 70.85 13 1.12 33688 33969.186 Kadapa 21.54 1724.07 0 0.00 238 9.50 36 591.27 6 706.81 37 24.14 82 2302.50 7113 19350.687 Karimnagar 21.02 980.98 0 0.00 58 57.51 10 320.39 0 0.00 20 2.37 3 0.05 4290 8141.958 Khammam 12.81 938.74 0 0.00 125 66.01 10 269.70 0 0.00 25 2.00 0 0.00 2862 10092.789 Krishna 71.31 1180.25 0 0.00 121 65.77 84 1094.31 0 0.00 67 8.72 16 0.30 15039 8626.0810 Kurnool 43.80 1634.58 1 4.54 362 378.46 33 1207.35 6 375.49 127 52.31 5 30.69 7885 50963.1711 Mahabubnagar 39.54 1614.86 1 0.74 17 19.00 42 2283.96 2 422.86 17 5.57 2 0.07 8227 16241.2812 Medak 81.09 1503.95 0 0.00 14 3.64 70 656.23 0 0.00 27 32.07 0 0.00 1503 7112.9713 Nalgonda 70.78 1552.99 6 1.70 29 5.96 50 978.48 0 0.00 13 7.16 8 237.22 2875 27202.8214 Nellore 24.33 562.68 0 0.00 331 22.06 87 1922.51 0 0.00 82 8.03 1 0.05 4844 6244.6015 Nizamabad 20.68 236.29 0 0.00 22 7.18 5 144.45 0 0.00 2 0.97 1 64.81 4920 1613.1316 Prakasam 7.73 1677.81 0 0.00 406 40.64 23 435.53 5 177.66 69 16.59 8 36.67 8547 14007.0617 Rangareddy 22.01 768.04 0 0.00 3 0.78 24 236.20 3 143.93 28 0.83 0 0.00 1303 4106.1018 Srikakulam 13.28 1347.72 0 0.00 475 34.70 41 637.01 0 0.00 101 12.51 6 66.00 11272 9650.3919 Visakhapatnam 8.80 792.27 0 0.00 131 11.95 21 316.65 0 0.00 0 0.00 0 0.00 1617 5425.3120 Vizianagaram 26.81 1266.54 0 0.00 913 43.47 35 793.53 2 20.76 58 10.24 2 167.62 12729 8460.8821 Warangal 0.00 279.66 0 0.00 77 1.00 3 56.20 0 0.00 8 2.09 2 0.10 1827 2108.3822 West Godavari 41.77 1431.28 1 0.05 683 31.44 218 1054.86 14 313.58 221 10.03 82 55.78 7620 7367.57

Total 999.94 28885.65 26 77.91 7643 1175.11 1006 17092.07 123 4592.86 2034 1139.04 313 3617.29 179746 320871.85


Rs. In Lakhs

Receivables(Form.21)

Grants Receivables(Form.22)

Inventory(Form.23)Sl.

No. Name of the Dist Total

(Asset)Depoits

(Form.24)

Advances to Suppliers(Form.19)

Loans Advance(Form.20)

Page 314

No. Value No. Value No. Value No. Value No. Value No. Value1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.002 Anantapur 7 1100.78 159 914.61 67 1237.03 1694 305.98 351 773.53 2278 4331.933 Chittoor 9 570.77 40 603.42 14 11867.88 937 233.04 183 731.08 1183 14006.204 East Godavari 2 73.71 138 992.97 3 6470.43 931 91.79 375 346.97 1449 7975.885 Guntur 9 1911.15 272 2055.56 20 698.36 5696 332.23 548 600.68 6545 5597.986 Kadapa 2 206.48 83 841.29 1 2454.06 511 98.20 96 211.19 693 3811.227 Karimnagar 2 64.02 104 731.80 1 4714.32 29 22.34 2 127.60 138 5660.078 Khammam 1 5.26 103 374.73 5 9735.90 144 12.00 1 0.42 254 10128.319 Krishna 3 960.82 204 838.10 0 0.00 640 119.41 31 45.59 878 1963.9110 Kurnool 11 4346.49 28 539.28 4 15584.63 1552 448.18 72 198.40 1667 21116.9811 Mahabubnagar 4 301.36 46 73.09 3 6872.83 76 52.09 273 499.08 402 7798.4512 Medak 2 408.06 66 324.64 1 828.29 26 13.29 70 96.41 165 1670.6813 Nalgonda 3 1143.68 22 405.45 2 21281.94 51 34.83 101 96.20 179 22962.1014 Nellore 0 0.00 79 247.39 0 0.00 472 18.25 59 83.90 610 349.5415 Nizamabad 0 0.00 6 135.54 0 0.00 0 0.00 0 0.00 6 135.5416 Prakasam 12 2447.14 39 488.78 12 368.91 2534 261.18 102 876.14 2699 4442.1417 Rangareddy 0 0.00 12 105.73 0 0.00 34 1.56 7 61.52 53 168.8118 Srikakulam 0 0.00 139 972.16 1 3608.30 569 108.59 256 115.30 965 4804.3419 Visakhapatnam 1 583.45 68 560.59 2 4077.84 181 24.38 16 179.05 268 5425.3120 Vizianagaram 1 26.51 102 674.39 1 4486.71 1633 32.16 221 196.95 1958 5416.7221 Warangal 2 102.59 26 179.56 0 0.00 15 0.75 0 0.00 43 282.9022 West Godavari 1 155.04 63 506.67 0 0.00 860 145.06 1115 504.65 2039 1311.41

Total 72 14407.32 1799 12565.76 137 94287.43 18585 2355.28 3879 5744.65 24472 129360.43


Rs. In Lakhs

Depoits Received(Form.28)

Loan Payable(Form.25)

Unutilised Grants(Form.26)

Reserve Fund(Form.27)

Bills Payable(Form.29)

Total (Liabilities )Sl.

No. Name of the Dist

Page 315

Sl.No.


Tax Revenue(110)

Assigned Revenues and

Compensations(120)

Rental Income from Municipal

Properties(130)

Fees and User Charges

(140)

Sale and Hire Charges

(150)

Revenue Grants Contribution and Subsidies

(160)


(170)


Other Income(180)

Total (Revenue)

1 Adilabad2 Anantapur 1760.21 426.90 305.88 287.29 6.51 128.64 0.12 84.12 359.12 3358.793 Chittoor 1829.09 657.29 230.40 496.81 12.95 238.38 51.71 61.84 286.04 3864.514 East Godavari 922.78 341.11 285.05 244.09 11.34 84.38 30.40 71.34 62.53 2053.035 Guntur 3051.51 464.97 282.86 712.24 5.52 143.03 30.78 84.33 1038.09 5813.336 Kadapa 1498.16 248.17 188.70 211.42 600.04 86.14 13.80 47.75 640.87 3535.067 Karimnagar 298.12 137.72 28.74 86.43 2.11 5.04 18.30 22.12 26.19 624.788 Khammam 406.13 22.49 29.68 321.34 79.07 94.78 22.36 23.28 17.92 1017.049 Krishna 1175.26 265.72 91.85 439.68 1.12 292.88 0.00 38.76 552.62 2857.9010 Kurnool 1263.00 323.18 294.91 169.45 1.71 11.04 1.36 242.12 176.41 2483.1811 Mahabubnagar 301.14 104.42 88.83 286.89 1.38 69.89 4.80 46.35 84.60 988.2912 Medak 553.28 122.27 50.00 185.64 0.81 8.20 0.00 98.70 135.80 1154.7013 Nalgonda 560.94 314.26 61.64 537.04 19.08 346.53 92.85 112.17 231.60 2276.1014 Nellore 453.20 211.08 61.36 58.38 1.89 2.00 375.02 41.69 71.74 1276.3615 Nizamabad 320.11 0.00 0.41 44.84 0.00 0.00 0.00 5.89 26.01 397.2616 Prakasam 1631.47 444.80 116.39 708.84 -8.52 75.59 1.31 53.58 103.39 3126.8517 Rangareddy 477.66 20.80 8.44 204.88 1.07 16.64 0.00 20.67 9.99 760.1418 Srikakulam 1105.13 274.73 77.02 234.82 1.25 107.01 5.24 41.38 102.42 1949.0019 Viskhapatnam 375.31 172.12 11.37 50.34 4.80 36.35 0.00 31.34 53.65 735.2820 Vizianagaram 1689.81 388.12 45.60 268.22 14.20 23.38 21.95 28.82 179.12 2659.2121 Warangal 123.59 73.56 3.43 47.80 -0.30 1.22 1.58 11.74 20.86 283.5022 West Godavari 1338.09 256.00 176.14 350.95 2.76 67.05 1.68 53.70 161.52 2407.88

Total 21133.99 5269.69 2438.71 5947.39 758.78 1838.17 673.27 1221.70 4340.49 43622.20

Accounts not furnished

Statement showing the Headwise Revenue Receipts of Municipal Councils for the year 2009-2010

STATEMENT No. 3 (1)

Rs. In Lakhs

Page 316

Sl.No.


Municipal Fund(310)


Reserves(312)


(320)

Secured Loans(330)


Deposits Received

(340)

Deposit works(341)

Other Liabilities

(350)

Provisions(360)

Total(Capital

Grand Total(Revenue +

Capital)

1 Adilabad2 Anantapur 0.00 489.46 0.00 1283.07 -0.17 0.00 7.90 0.00 -442.28 1.28 1339.27 4698.053 Chittoor 0.72 -80.28 0.00 927.51 0.00 0.01 10.54 0.00 -49.18 0.08 809.39 4673.914 East Godavari 0.00 87.13 0.00 146.26 0.00 0.00 17.80 0.00 -25.35 -0.08 225.75 2278.785 Guntur 0.84 225.95 0.00 1813.02 0.00 0.00 50.95 0.00 69.39 -0.51 2159.64 7972.976 Kadapa 0.00 -0.99 0.00 1785.71 0.00 0.00 50.36 0.00 -15.42 0.00 1819.66 5354.717 Karimnagar 0.00 -112.12 0.00 809.61 0.00 0.00 10.74 0.00 40.09 -0.72 747.60 1372.388 Khammam 0.00 67.86 0.00 965.85 0.00 0.00 45.84 0.00 78.44 0.00 1157.99 2175.039 Krishna 0.00 -8.72 0.00 474.16 0.00 0.00 6.35 0.00 -86.04 0.00 385.74 3243.64

10 Kurnool 0.00 -142.86 0.00 1684.54 0.00 10.16 0.71 0.00 -36.50 0.00 1516.05 3999.2311 Mahabubnagar 0.00 129.76 0.00 1193.31 -2.80 0.00 37.37 0.00 -172.41 0.00 1185.23 2173.5212 Medak 0.00 99.78 0.00 652.57 0.00 0.00 94.20 0.00 173.60 0.00 1020.16 2174.8613 Nalgonda 203.85 -478.11 0.00 529.76 0.88 0.00 23.37 0.00 71.63 0.00 351.39 2627.5014 Nellore -31.98 -17.62 5.79 909.90 0.00 0.00 6.78 -20.76 -116.32 0.00 735.78 2012.1415 Nizamabad 0.00 0.00 0.00 347.10 0.00 0.00 0.47 0.00 -31.26 0.00 316.31 713.5716 Prakasam 0.00 357.76 0.00 872.21 0.00 0.00 -8.26 0.00 -190.46 0.00 1031.25 4158.1017 Rangareddy 0.00 -175.33 0.00 309.26 0.00 0.00 -1.36 0.00 170.53 0.00 303.10 1063.2418 Srikakulam 0.00 20.35 0.00 748.41 -1.62 0.00 -4.78 0.00 -80.39 0.00 681.98 2630.9819 Viskhapatnam 0.00 32.81 0.00 78.83 0.00 0.00 2.71 0.00 -65.53 0.00 48.82 784.1020 Vizianagaram -0.26 28.44 0.00 1070.73 0.00 0.00 7.72 0.00 15.00 -0.27 1121.36 3780.5721 Warangal 0.00 0.00 0.00 259.14 0.00 0.00 4.18 0.00 -0.11 0.00 263.21 546.7122 West Godavari 0.00 63.95 0.00 377.02 0.00 0.00 4.48 0.00 -162.11 0.00 283.33 2691.21

Total 173.17 587.23 5.79 17237.99 -3.72 10.16 368.07 -20.76 -854.67 -0.22 17503.03 61125.23


STATEMENT No. 3 (2)

Statement showing the Headwise Capital Receipts of Municipal Councils for the year 2009-2010Rs. In Lakhs

Page 317

Sl.No.


Establishment Expenses

(210)

Administrative Expenses

(220)

Operations and

Maintenance(230)

Interest and Finance Charges

(240)

Programme Expenses

(250)

Revenue Grants


(260)


off(270)

Miscellaneous Expenses

(271)

Depreciation(272)

Prior Period Item

(280)

Transfer to Reserve

Funds(290)

Total (Revenue)

1 Adilabad2 Anantapur 984.58 367.22 780.54 1.17 70.20 -144.90 18.16 0.00 0.92 6.30 0.40 2084.593 Chittoor 1088.83 575.43 931.89 0.81 27.00 6.63 0.17 0.01 0.00 2.28 0.00 2633.054 East Godavari 1116.46 313.03 335.11 1.22 26.88 9.03 -0.01 7.06 0.00 11.68 0.00 1820.455 Guntur 954.44 2169.51 983.21 15.08 64.04 223.44 38.77 4.56 27.67 108.65 0.00 4589.366 Kadapa 630.65 1168.57 441.12 0.10 30.58 6.56 0.02 0.19 0.11 9.28 0.00 2287.177 Karimnagar 273.15 276.14 245.04 0.21 44.99 0.50 0.00 0.00 0.00 0.00 0.00 840.028 Khammam 489.89 216.70 642.66 0.31 44.86 0.00 0.19 2.54 0.00 0.61 0.00 1397.759 Krishna 958.28 412.82 359.91 0.76 2.56 7.88 1.22 0.00 0.00 1.40 0.00 1744.8210 Kurnool 532.11 397.76 459.17 38.19 61.46 8.41 0.00 0.00 0.00 0.00 0.00 1497.1011 Mahabubnagar 700.30 203.34 500.22 0.21 23.09 -302.01 -16.85 0.00 0.01 -1.09 0.00 1107.2212 Medak 389.80 253.03 465.43 1.16 8.73 3.27 2.68 0.00 0.00 3.19 0.00 1127.2813 Nalgonda 798.27 617.34 889.38 0.10 20.19 -274.13 3.27 3.13 0.00 9.61 0.00 2067.1514 Nellore 268.38 179.30 90.18 0.05 6.44 22.19 10.16 1.70 0.37 14.97 0.00 593.7315 Nizamabad 157.99 195.76 39.16 0.99 1.40 0.00 0.00 0.00 0.00 0.00 0.00 395.3016 Prakasam 726.10 282.43 1008.01 0.09 4.27 304.12 2.00 0.05 15.32 45.55 5.01 2392.9617 Rangareddy 256.93 67.81 197.29 2.03 0.18 0.00 0.00 0.00 2.35 5.33 0.00 531.9218 Srikakulam 529.62 240.21 627.06 0.18 47.59 239.88 0.00 0.00 0.00 0.00 0.00 1684.5419 Viskhapatnam 218.42 133.59 140.90 0.06 0.11 0.00 0.00 0.81 0.00 0.00 0.00 493.9020 Vizianagaram 888.20 91.51 661.58 3.08 23.12 0.00 0.00 0.00 0.00 0.67 0.00 1668.1521 Warangal 74.32 124.74 41.06 0.01 0.00 -3.24 -1.13 0.00 0.00 0.00 0.00 235.7522 West Godavari 614.51 329.82 382.23 0.04 5.87 25.14 0.00 0.36 0.00 0.11 0.00 1358.06

Total 12651.21 8616.02 10221.14 65.82 513.55 132.78 58.64 20.40 46.75 218.54 5.42 32550.27


STATEMENT No. 4 (1)

Statement showing the Headwise Revenue Payments of Municipal Councils for the year 2009-2010Rs. In Lakhs

Page 318

Sl.No.


Fixed Assets(410)


(411)


(412)

Investments-General

Fund(420)


(421)

Stock-in-

hand(430)

Sundry Debtors

(Receivables)(431)

Accumulated

Provisions

against Debtors (Receiva

bles)(432)

Pre-paid Expenses

(440)

Cash and

Bank balance

(450)

Loans Advances

and Deposits

(460)

Accumulated

Provisions against

Loans Advances

and Deposits

(461)

Other Assets (470)

Miscellaneous

Expenditure to be written

off(480)

Total(Capital)

Grand Total

(Revenue + Capital)

1 Adilabad2 Anantapur 1004.62 0.00 321.19 60.61 58.00 0.00 0.00 0.00 0.75 0.00 30.26 0.00 0.10 0.00 1475.53 3560.123 Chittoor 1298.98 0.00 125.31 70.00 -129.80 0.00 -39.01 0.00 0.00 0.00 51.32 0.00 0.06 0.00 1376.86 4009.914 East Godavari 383.45 0.00 272.73 -9.00 57.77 0.00 -208.04 0.00 0.00 0.00 56.76 0.00 -28.94 0.00 524.73 2345.175 Guntur 1418.68 0.00 -10.86 126.27 244.50 2.35 -388.04 0.00 0.71 0.00 12.97 0.00 -1.06 0.00 1405.54 5994.906 Kadapa 1707.34 0.00 152.55 89.32 0.00 0.00 -0.17 0.00 0.00 0.00 -8.52 0.00 0.86 -0.67 1940.71 4227.887 Karimnagar 365.90 0.00 87.43 52.83 64.35 0.00 -186.00 0.00 0.00 0.00 0.88 0.00 3.04 0.00 388.44 1228.478 Khammam 60.60 0.00 305.82 0.00 0.00 0.00 -243.49 0.00 0.00 0.00 4.75 0.00 0.00 0.00 127.69 1525.439 Krishna 602.78 0.00 0.00 10.00 150.00 0.00 -9.19 0.00 0.00 0.00 22.05 0.00 0.00 0.00 775.64 2520.4610 Kurnool 698.13 0.00 143.41 46.11 395.27 0.00 0.00 0.00 0.00 0.00 136.48 0.00 7.82 0.00 1427.21 2924.3111 Mahabubnagar 1194.83 0.00 0.00 170.00 54.08 0.00 -670.69 0.00 0.00 0.00 22.61 0.00 0.00 -4.61 766.22 1873.4412 Medak 1318.58 0.00 4.88 23.00 21.27 0.00 -109.75 0.00 0.22 0.00 49.55 0.00 0.20 23.59 1331.55 2458.8213 Nalgonda 642.35 0.00 188.74 74.93 163.57 30.52 -344.88 0.00 0.00 0.00 1.18 0.00 64.51 -482.16 338.76 2405.9114 Nellore 949.72 0.00 4.54 83.79 0.00 0.00 0.00 0.00 0.18 0.00 3.06 0.00 0.42 0.03 1041.75 1635.4815 Nizamabad 183.96 0.00 0.29 0.00 0.00 0.00 -176.79 0.00 0.00 0.00 2.74 0.00 0.76 -0.05 10.91 406.2116 Prakasam 732.42 0.00 50.57 -40.16 0.00 0.00 -395.53 0.00 0.47 0.00 19.37 0.00 0.00 1.46 368.60 2761.5617 Rangareddy 57.61 0.00 0.00 0.00 59.45 0.00 -140.69 0.00 0.00 0.00 1.65 0.00 0.00 0.00 -21.98 509.9418 Srikakulam 102.61 0.00 218.49 23.27 62.50 0.00 -169.24 0.00 0.00 0.00 6.92 0.00 0.00 0.00 244.56 1929.1019 Viskhapatnam 57.98 0.00 157.04 30.00 88.00 0.00 0.00 0.00 0.00 0.00 22.08 0.00 0.00 0.00 355.10 849.0020 Vizianagaram 66.45 0.00 465.68 124.29 205.61 0.00 -300.25 0.00 0.00 0.00 8.46 0.00 0.00 0.00 570.24 2238.3921 Warangal 125.49 0.00 0.00 60.00 0.00 0.00 0.00 0.00 0.00 0.00 2.20 0.00 0.10 0.00 187.79 423.5422 West Godavari 721.54 0.00 3.79 -97.10 145.00 0.11 0.00 0.00 0.00 0.00 -17.00 0.00 0.00 0.00 756.34 2114.41

Total 13694.03 0.00 2491.61 898.15 1639.57 32.98 -3381.75 0.00 2.35 0.00 429.78 0.00 47.87 -462.40 15392.18 47942.45


Statement showing the Headwise Capital Payments of Municipal Councils for the year 2009-2010

STATEMENT No. 4 (2)

Rs. In Lakhs

Page 319

Sl.No.


Tax Revenue

(110)

Assigned Revenues and

Compensations(120)

Rental Income from


(130)

Fees and User

Charges(140)

Sale and Hire

Charges(150)

Revenue Grants


(160)


(170)


Other Income(180) Total

1 Adilabad2 Anantapur 1546.57 426.90 287.05 278.03 6.53 121.25 3.44 84.51 306.94 3061.203 Chittoor 1758.18 646.24 259.66 529.92 8.26 87.38 37.81 61.91 244.33 3633.694 East Godavari 1826.96 685.34 437.06 507.92 20.97 142.74 46.89 104.57 56.51 3828.965 Guntur 2843.91 464.97 327.31 763.11 5.52 145.03 30.97 84.71 890.26 5555.806 Kadapa 1072.71 379.78 181.19 252.20 600.04 86.14 13.80 47.75 220.96 2854.577 Karimnagar 363.14 146.41 36.94 148.51 3.28 34.95 2.76 21.83 14.52 772.348 Khammam 811.61 81.09 49.97 292.14 79.27 141.94 2.83 23.28 18.54 1500.699 Krishna 1346.12 251.89 170.70 358.34 31.02 40.12 0.00 38.76 509.36 2746.33

10 Kurnool 1214.95 323.18 281.12 185.11 1.71 11.04 1.36 39.70 124.10 2182.2711 Mahabubnagar 842.71 104.42 166.19 481.70 1.53 110.68 4.80 47.60 83.91 1843.5412 Medak 787.55 216.33 71.68 219.46 0.81 6.20 2.94 40.37 18.10 1363.4513 Nalgonda 1724.59 320.49 92.75 626.80 22.64 488.69 62.81 103.56 16.44 3458.7814 Nellore 3134.55 1103.07 350.30 1194.77 17.99 153.18 392.27 156.82 267.34 6770.3015 Nizamabad 308.57 0.00 24.49 47.95 0.00 0.00 0.03 5.89 25.11 412.0516 Prakasam 1500.61 444.80 149.61 566.33 7.25 75.59 8.63 57.57 97.76 2908.1617 Rangareddy 331.19 20.80 13.87 228.06 1.07 16.64 0.00 20.67 11.27 643.5618 Srikakulam 641.91 260.25 139.01 306.50 1.46 62.73 15.80 23.75 91.98 1543.3919 Viskhapatnam 394.97 172.11 53.26 98.54 4.82 45.05 11.35 17.62 9.60 807.3220 Vizianagaram 991.41 332.84 105.20 500.88 30.07 42.11 39.26 30.15 73.47 2145.3821 Warangal 136.55 72.08 3.93 49.54 0.04 1.25 1.58 11.74 13.66 290.3922 West Godavari 999.45 256.00 219.30 353.95 3.33 67.20 1.68 53.70 147.61 2102.23

Total 24578.21 6708.99 3420.62 7989.77 847.61 1879.92 681.00 1076.48 3241.78 50424.38

Statement showing the Headwise Income of Muncipal Councils for the year 2009-2010

STATEMENT No. 5


Rs. In Lakhs

320

Sl.No.


Establishment Expenses

(210)

Administrative Expenses

(220)

Operations and

Maintenance(230)

Interest and

Finance Charges

(240)

Programme Expenses

(250)

Revenue Grants


(260)


off(270)

Miscellaneous Expenses

(271)

Depreciation(272)


Transfer to

Reserve Funds(290)

Total

1 Adilabad2 Anantapur 956.86 371.43 768.40 6.55 103.60 -8.46 0.00 0.00 4882.39 6.30 0.17 7087.233 Chittoor 971.06 661.34 941.41 1.11 26.78 -76.06 0.17 0.00 1246.93 2.28 0.00 3775.034 East Godavari 935.00 320.44 262.72 8.59 35.41 9.03 0.10 6.87 769.74 11.63 0.00 2359.525 Guntur 2475.05 2161.60 1004.07 34.14 64.04 223.44 23.90 4.56 3401.36 104.40 0.00 9496.576 Kadapa 638.88 1095.97 408.52 0.10 25.16 6.56 0.02 0.19 1197.37 0.00 0.00 3372.767 Karimnagar 282.99 279.53 92.60 0.23 68.42 0.50 0.00 0.00 617.54 0.00 0.00 1341.808 Khammam 428.84 185.92 320.93 1.80 40.61 0.00 0.00 2.54 1007.44 0.00 0.00 1988.089 Krishna 970.28 447.44 367.04 267.56 3.09 7.88 0.00 0.00 541.32 0.00 0.00 2604.6010 Kurnool 545.10 400.59 490.10 38.19 62.83 8.41 0.00 0.00 3481.40 0.00 0.00 5026.6311 Mahabubnagar 742.08 225.70 754.27 0.21 23.35 10.49 -31.20 0.00 1087.81 16.52 0.00 2829.2312 Medak 397.76 226.40 465.80 1.12 8.73 0.39 2.68 0.00 693.60 3.53 0.00 1800.0013 Nalgonda 892.46 638.82 774.31 75.51 20.19 3.76 3.27 3.13 2828.42 9.59 0.00 5249.4514 Nellore 670.15 181.43 94.03 0.05 6.44 -148.95 10.16 1.70 516.65 15.03 0.00 1346.7015 Nizamabad 178.84 148.32 50.96 0.99 1.40 0.00 0.00 0.00 138.80 0.00 0.00 519.3016 Prakasam 572.67 290.92 452.30 123.48 4.27 246.68 -3.14 0.12 1736.67 125.91 1.80 3551.6817 Rangareddy 256.93 71.44 203.69 2.03 0.18 0.00 0.00 5.33 221.69 0.00 0.00 761.2818 Srikakulam 534.55 231.47 435.17 3.92 46.79 237.80 0.00 0.00 1457.60 0.00 0.00 2947.2919 Viskhapatnam 302.65 81.29 157.90 59.38 2.26 0.00 0.00 0.81 511.58 0.00 0.00 1115.8920 Vizianagaram 903.77 87.18 527.16 6.10 24.32 0.00 0.00 0.00 1005.44 0.00 0.00 2553.9721 Warangal 74.32 130.86 37.12 0.01 0.00 4.80 0.00 0.00 33.33 0.00 0.00 280.4422 West Godavari 612.27 322.81 387.26 0.04 5.87 25.19 48.22 0.36 490.86 0.11 0.00 1892.98

Total 14342.52 8560.90 8995.75 631.10 573.72 551.47 54.16 25.59 27867.94 295.31 1.97 61900.44

STATEMENT No. 6Statement showing the Headwise Expenditure of Muncipal Councils for the year 2009-2010


Rs. In Lakhs

321

Sl.No.


Fixed Assets(410)


(411)


(412)

Investments-General Fund

(420)


(421)

Stock-in- hand(430)

Sundry Debtors (Receivables)

(431)


against Debtors

(Receivables)(432)

1 Adilabad2 Anantapur 72498.87 -40604.89 514.83 54.50 239.29 27.43 991.84 0.003 Chittoor 38165.17 -21482.52 143.93 257.18 202.22 761.36 1359.68 0.004 East Godavari 26176.65 -13323.28 1387.33 450.88 177.65 46.46 2124.44 0.005 Guntur 34233.00 -10089.14 203.65 537.88 1093.70 73.20 2164.03 0.006 Kadapa 17590.09 -3153.56 641.60 2430.45 0.00 24.14 1346.27 0.007 Karimnagar 8057.69 -2463.48 101.54 246.83 104.86 0.00 312.90 0.008 Khammam 13800.95 -5788.31 419.31 105.08 48.60 2.00 1115.28 0.009 Krishna 5412.10 0.00 0.00 299.03 150.00 8.49 1214.47 0.0010 Kurnool 47967.87 -10016.50 143.96 513.40 594.31 53.92 1214.17 0.0011 Mahabubnagar 20045.71 -8151.17 0.00 173.62 125.97 0.18 1155.70 0.0012 Medak 6332.89 -399.73 5.13 108.53 21.27 33.91 1036.16 0.0013 Nalgonda 38666.64 -16280.76 2.52 409.07 335.71 37.52 1325.22 0.0014 Nellore 4888.75 -1372.00 487.40 180.91 92.62 8.03 356.85 0.0015 Nizamabad 3487.42 -2262.41 0.29 0.00 0.00 0.97 133.25 0.0016 Prakasam 28889.65 -18225.38 73.11 62.36 3.74 14.25 516.55 0.0017 Rangareddy 3060.48 -397.81 103.27 0.00 166.00 0.83 256.25 0.0018 Srikakulam 20658.34 -14802.44 578.60 285.20 49.69 12.51 588.52 0.0019 Viskhapatnam 8051.83 -4383.41 300.51 113.52 132.70 0.00 432.47 0.0020 Vizianagaram 15944.46 -10651.78 337.34 268.22 406.18 10.24 1070.43 0.0021 Warangal 739.30 0.00 0.00 182.57 0.00 2.09 61.26 0.0022 West Godavari 12485.68 -7949.59 3.79 -67.44 549.59 6.67 966.50 -48.22

Total 427153.55 -191798.15 5448.11 6611.78 4494.10 1124.19 19742.26 -48.22


STATEMENT No.7 (1)Statement showing the Dist wise & Headwise Assets (Balance Sheet) of Municipal Councils for the year 2009-2010

Rs. In Lakhs

Page 322

Sl.No. Name of the District

Pre-paid Expenses

(440)

Cash and Bank balance

(450)


(460)

Accumulated Provisions against


(461)

Other Assets (470)

Miscellaneous Expenditure to be written off

(480)

Total

1 Adilabad2 Anantapur 0.75 3133.33 234.13 100.84 0.00 0.00 37190.933 Chittoor 0.00 3046.42 119.41 360.05 0.06 0.00 22932.964 East Godavari 0.00 1993.96 145.27 0.00 -14.47 0.00 19164.895 Guntur 0.71 5068.54 116.95 0.00 -1.06 0.00 33401.466 Kadapa 0.00 2391.28 1.06 21.85 0.86 0.00 21294.037 Karimnagar 0.00 1094.65 56.67 0.00 0.00 0.00 7511.678 Khammam 0.00 1541.48 95.96 0.00 0.00 0.00 11340.379 Krishna 0.00 2326.12 83.37 0.00 0.00 0.00 9493.5710 Kurnool 0.00 2734.07 526.08 1.37 1.49 0.00 43734.1511 Mahabubnagar 0.00 1753.46 78.99 0.05 0.00 0.00 15182.5112 Medak 59.82 1209.46 45.90 0.24 0.20 0.00 8453.7813 Nalgonda 0.00 1812.76 13.27 0.00 61.82 0.16 26383.9314 Nellore 0.18 760.95 25.24 0.00 0.42 0.03 5429.3915 Nizamabad 0.00 412.62 9.92 85.81 0.76 3.06 1871.6916 Prakasam 0.47 2854.44 79.24 0.20 18.04 2.73 14289.4217 Rangareddy 0.00 1039.94 2.43 0.00 0.00 0.00 4231.3918 Srikakulam 0.00 1557.40 41.59 0.00 0.00 0.00 8969.4219 Viskhapatnam 0.00 712.90 36.90 0.00 0.00 0.00 5397.4120 Vizianagaram 0.00 1873.14 52.95 0.00 0.00 0.00 9311.1721 Warangal 0.00 402.83 3.30 0.00 0.10 0.00 1391.4422 West Godavari 0.00 2253.04 23.64 0.00 0.00 0.00 8223.66

Total 61.94 39972.80 1792.26 570.41 68.23 5.98 315199.24


STATEMENT No.7 (2)Statement showing the Dist wise & Headwise Assets (Balance Sheet) of Municipal Councils for the year 2009-2010

Rs. In Lakhs

Page 323

Sl.No.


Municipal Fund(310)


Reserves(312)


(320)

Secured Loans(330)


Deposits Received

(340)

Deposit works(341)

Other Liabilities

(350)

Provisions(360) Total

1 Adilabad2 Anantapur 31896.06 682.66 1.46 2564.59 830.63 274.15 319.01 0.00 641.26 1.28 37211.113 Chittoor 20016.28 -116.88 0.00 1234.97 0.00 570.78 199.12 0.00 948.52 80.18 22932.964 East Godavari 17502.05 70.19 0.00 681.44 81.08 0.00 139.52 0.00 679.15 11.46 19164.895 Guntur 24146.89 699.93 0.00 2372.25 878.43 1113.17 381.74 -55.47 3676.60 0.00 33213.556 Kadapa 18603.73 4.17 0.00 1755.70 206.48 211.45 201.36 0.00 100.83 211.19 21294.907 Karimnagar 6269.83 32.84 0.00 548.88 0.00 64.02 41.78 0.00 554.31 0.00 7511.678 Khammam 9790.99 0.00 0.00 1068.10 5.79 0.00 62.76 0.00 411.16 0.00 11338.809 Krishna 7175.60 2.94 0.00 851.37 1227.62 0.00 117.06 0.00 118.98 0.00 9493.5710 Kurnool 36480.86 72.03 0.00 1641.46 0.00 4661.05 493.23 0.00 361.24 24.27 43734.1511 Mahabubnagar 12624.61 -17.40 0.00 1501.14 221.18 80.18 91.68 0.00 681.13 0.00 15182.5112 Medak 5358.12 238.73 121.40 1171.70 1074.92 0.00 108.98 0.00 315.23 0.00 8389.0813 Nalgonda 24037.75 19.29 0.00 864.78 69.93 1011.62 107.57 0.00 272.98 0.00 26383.9314 Nellore 4084.47 -18.61 5.79 872.25 0.00 0.00 34.56 2.79 448.14 0.00 5429.3915 Nizamabad 1370.33 0.00 0.00 457.95 0.00 0.00 4.18 0.00 39.23 0.00 1871.6916 Prakasam 8194.35 730.59 702.00 1061.67 2174.73 284.74 256.80 0.00 808.86 0.00 14213.7417 Rangareddy 3290.58 5.96 497.85 297.21 82.73 0.00 1.57 0.00 55.48 0.00 4231.3918 Srikakulam 7041.62 73.06 1.53 692.75 0.00 0.00 106.50 0.00 1053.96 0.00 8969.4219 Viskhapatnam 3751.71 1.84 0.00 193.88 0.00 641.80 30.43 0.00 777.76 0.00 5397.4120 Vizianagaram 7152.52 30.65 0.00 1086.99 26.51 0.00 52.47 0.00 962.03 0.00 9311.1721 Warangal 931.24 0.00 0.00 346.72 0.00 102.59 4.93 0.00 5.96 0.00 1391.4422 West Godavari 4706.95 31.03 0.00 973.52 1957.52 0.00 150.27 0.00 385.91 18.47 8223.66

Total 254426.56 2543.01 1330.02 22239.31 8837.56 9015.54 2905.52 -52.68 13298.72 346.85 314890.42

Statement showing the Dist wise & Headwise Liabilities (Balance Sheet) of Municipal Councils for the year 2009-2010

STATEMENT No. 8


Rs. In Lakhs

324

Sl. No. NAME OF THE CATEGORY No. AMOUNT

1 Variation in Account Figures 179 308.81

2 Excess Utilisation of Grants / Funds 41 1.29

3 Diversion of Grants / Funds 112 802.21

4 Non-utilisation of grants before the lapsable date 64 233.73

5 Mis-utilisation of Grants / Funds 5 14.03

6 Non- utilisation of Earmarked Funds 18 0.00

7 Non-collection of dues 827 4853.32

8 Advances pending adjsutemnt 424 1326.75

9 Violation of Rules 2916 3003.74

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 473 1230

11 Non Production of Records 4086 12331.91

12 Mis-appropriations 93 885.66

13 Excess Payments 407 114.01

14 Wasteful Expenditure 57 79.43

15 Instances of cases of unaccounted for cash / stores 17 4.71

16 Pendency of Utilisation Certificates 99 551.99

17 Surcharges Certificates- Recovery Pending 0 0.00

18 Others 1759 971.22

19 D.D. Cheques received but not realised with in time 4 237.11

Total: 11581 26950.37

STATEMENT No. 9

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED

FOR THE YEAR 2009-10Rs. In lakhs.

325

No Amount No Amount No Amount No Amount No Amount No Amount No Amount1 Adilabad 0 0 0 0 0 0 0 0 0 0 0 0 0 02 Anantapur 17 3.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 43 66.363 Chittoor 7 24.56 0 0.00 1 36.08 0 0.00 0 0.00 0 0.00 7 1097.964 East Godavari 7 5.78 0 0.00 0 0.00 2 0.00 0 0.00 0 0.00 37 11.925 Guntur 4 0.00 7 0.00 5 0.19 0 0.00 0 0.00 3 0.00 28 28.456 Kadapa 18 39.62 2 0.29 2 91.45 0 0.00 0 0.00 0 0.00 20 62.447 Karimnagar 0 0.00 0 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.008 Khammam 4 0.10 0 0.00 6 66.36 5 0.00 0 0.00 0 0.00 12 71.359 Krishna 7 1.64 1 0.00 3 36.13 4 2.17 0 0.00 0 0.00 13 47.75

10 Kurnool 0 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 14 427.8311 Mahabubnagar 3 0.29 1 0.00 5 146.28 0 0.00 1 9.65 3 0.00 9 7.6212 Medak 19 0.00 4 0.00 6 27.38 1 0.00 1 2.38 1 0.00 20 4.6013 Nalgonda 0 0.00 0 0.00 0 0.00 2 0.00 1 0.00 0 0.00 18 195.1314 Nellore 2 0.00 4 0.00 1 15.28 0 0.00 0 0.00 1 0.00 11 0.0015 Nizamabad 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0.00 0.00 0.00 0.0016 Prakasam 8 0.00 2 0.00 3 7.93 1 0.00 0 0.00 0 0.00 12 1.0817 Rangareddy 1 0.00 0 0.00 1 0.00 0 0.00 0 0.00 2 0.00 11 62.2618 Srikakulam 34 169.27 2 0.00 58 319.12 25 223.56 0 0.00 3 0.00 212 1902.2119 Visakhapatnam 33 62.00 14 1.00 16 56.02 22 8.00 2 2.00 0 0.00 319 689.0420 Vizianagaram 4 2.33 2 0.00 2 0.00 0 0.00 0 0.00 1 0.00 20 32.0321 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0022 West Godavari 11 0.22 0 0.00 2 0.00 2 0.00 0 0.00 2 0.00 20 145.30

Grand Total 179 308.81 41 1.29 112 802.21 64 233.73 5 14.03 18 0.00 827 4853.32

STATEMENT No. 9 (1)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE & DISTRICT WISE) AND AMOUNT

INVOLVED FOR THE YEAR 2009-10Rs. In Lakhs

S.No. DistrictVariation in Account

Figures (1)Excess Utilisation of Grants / Funds (2)

Diversion of Grants / Funds (3)

Non-utilisation of grants before the lapsable date

(4)

Mis-utilisation of Grants / Funds (5)

Non- utilisation of Earmarked Funds

(6)

Non-collection of dues (7)

Page 326

No Amount No Amount No Amount No Amount No Amount No Amount1 Adilabad 0 0 0 0 0 0 0 0 0 0 0 02 Anantapur 6 30.22 143 37.57 4 0.17 236 884.83 1 0.00 5 9.823 Chittoor 4 125.81 1 5.23 0 0.00 3 109.99 0 0.00 0 0.004 East Godavari 30 10.61 62 6.92 13 40.72 181 166.64 2 0.53 10 4.245 Guntur 8 4.74 103 71.20 22 54.01 270 564.47 2 1.00 15 4.146 Kadapa 3 4.96 40 3.90 29 34.46 127 642.80 9 3.12 19 3.887 Karimnagar 10 53.80 2 4.72 14 2.62 1 35.20 0 0.00 4 0.168 Khammam 9 20.55 49 319.31 32 61.69 60 412.47 24 17.12 7 1.319 Krishna 7 6.14 41 6.11 6 4.11 148 361.29 0 0.00 8 0.81

10 Kurnool 2 25.84 58 676.44 1 0.01 46 562.94 1 0.23 2 0.0911 Mahabubnagar 5 10.74 42 340.98 17 17.92 84 175.58 5 2.66 6 0.9212 Medak 7 19.63 82 279.23 14 34.21 91 939.87 27 84.74 19 12.8013 Nalgonda 2 1.78 37 96.23 15 17.31 26 203.48 0 0.00 7 2.8914 Nellore 3 0.00 53 0.18 5 14.50 110 601.88 0 0.00 1 0.0915 Nizamabad 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.0016 Prakasam 9 8.58 89 31.60 14 61.63 92 367.12 0 0.00 2 0.5617 Rangareddy 2 1.00 7 6.27 13 12.73 3 40.19 0 0.00 7 1.9718 Srikakulam 163 704.48 1066 830.41 184 542.00 1351 3251.29 4 761.13 72 19.0719 Visakhapatnam 145 253.58 940 262.85 64 272.50 1036 1946.13 16 14.33 219 47.4220 Vizianagaram 3 12.28 33 6.55 13 13.34 107 365.90 2 0.80 4 3.8421 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0022 West Godavari 6 32.01 68 18.05 13 46.52 114 699.84 0 0.00 0 0.00

Grand Total 424 1326.75 2916 3003.74 473 1230.45 4086 12331.91 93 885.66 407 114.01

STATEMENT No. 9 (2)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE & DISTRICT WISE) AND AMOUNT

INVOLVED FOR THE YEAR 2009-10Rs. In Lakhs

S.No. DistrictAdvances pending

adjsutemnt (8)Violation of Rules

(9) Non remittance of

deductions (10)Non Production of

Records (11)Mis-appropriations

(12)Excess Payments

(13)

Page 327

No Amount No Amount No Amount No Amount No Amount No Amount No Amount1 Adilabad 0 0 0 0 0 0 0 0 0 0 0 0 0 02 Anantapur 1 1.75 0 0.00 1 0.00 0 0.00 57 0.00 0 0.00 516 1033.719093 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 92.61 25 1492.244 East Godavari 0 0.00 0 0.00 2 0.00 0 0.00 60 0.00 0 0.00 406 247.351765 Guntur 3 3.82 0 0.00 5 0.00 0 0.00 166 1.43 0 0.00 641 733.456 Kadapa 3 1.17 0 0.00 2 0.00 0 0.00 38 0.19 0 0.00 312 888.287 Karimnagar 0 0.00 0 0.00 1 21.37 0 0.00 6 6.75 0 0.00 40 124.628 Khammam 0 0.00 0 0.00 5 0.00 0 0.00 38 5.09 2 0.37 253 975.708789 Krishna 0 0.00 0 0.00 1 0.00 0 0.00 32 0.00 0 0.00 271 466.13223

10 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 6 0.00 0 0.00 132 1693.3811 Mahabubnagar 1 3.07 0 0.00 0 0.00 0 0.00 24 32.85 0 0.00 206 748.56112 Medak 7 19.45 1 0.00 1 0.00 0 0.00 44 47.61 0 0.00 345 1471.8957813 Nalgonda 0 0.00 0 0.00 1 0.00 0 0.00 45 23.99 0 0.00 154 540.8114 Nellore 0 0.00 0 0.00 3 0.00 0 0.00 50 0.00 0 0.00 244 631.9315 Nizamabad 0 0.00 0 0.00 0.00 0.00 0 0.00 0 0.00 0 0.00 0 016 Prakasam 4 2.34 0 0.00 0 0.00 0 0.00 195 0.00 0 0.00 431 480.8417 Rangareddy 0 0.00 0 0.00 2 21.37 0 0.00 25 13.81 0 0.00 74 159.618 Srikakulam 28 43.12 13 4.51 59 509.25 0 0.00 672 793.64 0 144.13 3946 10217.1919 Visakhapatnam 9 4.52 3 0.20 13 0.00 0 0.00 203 6.26 0 0.00 3054 3625.8520 Vizianagaram 0 0.00 0 0.00 0 0.00 0 0.00 22 0.00 0 0.00 213 437.0701821 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 022 West Godavari 1 0.20 0 0.00 3 0.00 0 0.00 76 39.60 0 0.00 318 981.74

Grand Total 57 79.43 17 4.71 99 551.99 0 0.00 1759 971.22 4 237.11 11581 26950.37

STATEMENT No. 9 (3)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE & DISTRICT WISE) AND

AMOUNT INVOLVED FOR THE YEAR 2009-10Rs. In Lakhs

S.No. DistrictOthers

(18)

D.D. Cheques received but not realised with in

time(19)

TotalWasteful

Expenditure(14)

Instances of cases of unaccounted for cash / stores

(15)

Pendency of Utilisation

Certificates(16)

Surcharges Certificates-

Recovery Pending

(17)

Page 328

PART - IV



PART – IV


AGRICULTURE MARKET COMMITTEE FOR

THE YEAR 2009‐10


PART – IV

SECTION – I

S. No. DESCRIPTION PAGE No.

1 Introduction 329-332 2 A few selected Audit Paras – Category wise 333-352

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2009-10 OF AMCS

PAGE No.

1. Status of Audit of AMC (District wise) 353 2. 1. Receipts and Payments of AMC (District wise) 354

2. Receipts and payments of AMC with break up (Receipts Heads) 355

3. Receipts and payments of AMC with break up (Payments Heads) 356

3. 1. Audit Objections raised in AMC for the year 2009-10 (Dist. Wise) 357

2. Consolidated Category Wise Audit Objections 358

3.1. Consolidated Dist. and Category Wise Audit Objections 359

3.2. Consolidated Dist. And Category Wise Audit Objections 360

3.3. Consolidated Dist. And Category Wise Audit Objections 361

CONTENTS

SECTION - I

329

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF AMCS FOR THE YEAR 2009-10

PART – I INTRODUCTION

1.1 Under the A.P 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 317 for the year 2009-10.

1.2 The Department has got offices in all the districts, the District Audit Officer, State Audit being the head at the district level.

1.3 The Department conducts post audit of the 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. This department has also conducted pre-audit of all the Expenditure bills in respect of AMCs during the year 2009-10 in accordance with the orders issued in Govt. Memo. No. 28801/581/A1/Admn.II/2007, dt. 29.2.2008.

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 therefor, 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 2.1 The State Audit Department being one of the limbs of the Government of Andhra Pradesh

verifies the following aspects during the course of post audit of the 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. 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.

330

STATUS OF AUDIT 3.1 The current audit of 316 AMCs out of 317 AMCs for the year 2009-10 was conducted in the

year leaving balance of 1 current audit of AMCs. 3.2 The Department has conducted the audit of the receipts amounting to Rs. 466.56 crores and

payments of Rs. 363.40 crores as detailed in the Statements No. 2 (2) to 2 (3) with District-wise break up.

3.3 The pie chart of proportional percentages of Receipts and Payments of AMCs during the year

2009-10 is placed below.

331

TREND OF RECEIPTS AND PAYMENTS OF AMCs

The receipts and payments of AMCs for the years 2008-09 and 2009-10 are as follows.

As shown above, there is an increase in the Receipts and decrease in Payments from the year 2008-09 to 2009-10, which is a welcome trend. 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 2005-06 205.76 296.26 69 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 2009-10 379.23 466.56 81 14 8

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. During the year 2009-10, the increase in Total Receipts is 8%. 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.

332

AUDIT OBJECTIONS 4.1 During the course of audit of the AMCs for the year 2009-10, 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 4677 audit objections involving an amount of Rs.7743.87 lakhs were raised in the audit of the AMCs during the year under report. 4.3 Consolidated Statements showing the various Audit Objections raised in the Audit Reports with

amounts involved category-wise are annexed to the Report Statements from 3 (1) to 3 (3)] 4.4 Gist of some of the selected audit objections pertaining to the year under report is enumerated

below: STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2009-10

Rs. In lakhs.

S. No NAME OF THE CATEGORY No. AMOUNT %

1 Non Production of Records 926 1638.42 21.16 2 Non Collection of Dues 411 1382.03 17.85 3 Others 904 1192.10 15.39 4 Violation of Rules 1398 1190.20 15.37 5 Advances Pending Adjustment 205 1179.33 15.23 6 Excess Utilisation of Grants / Funds 126 399.99 5.17 7 Diversion of Grants/Funds 43 210.74 2.72 8 Variation in Account Figures 96 204.03 2.63

9 Non Remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 390 192.04 2.48

10 Excess Payments 75 59.35 0.77 11 Mis- Appropriation / Fraud 43 42.37 0.55 12 Non-Utilisation of Earmarked Funds 7 16.99 0.22 13 Non-Utilisation of Grants before lapsable dates 17 15.13 0.20 14 Wasteful Expenditure 17 8.84 0.11 15 Mis- Utilisation of Grants/Funds 5 4.58 0.06 16 Instances of Cases of Un accounted Cash / Stores 8 2.72 0.04 17 D.D / Cheques Received but not realized with in time 2 2.09 0.03 18 Pendency of Utilisation Certificates 3 1.69 0.02 19 Surcharge Certificates - Recovery Pending 1 1.20 0.02

TOTAL 4677 7743.87 100

Major part of objections which constitutes objection amount is Non-Production of Records

which constitutes 21.16% followed by Non-collection of dues which constituted 17.85%. Non-Collection of dues is significant at 17.85% of objections which means AMC administration is not vigilant enough in collecting dues.

333

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 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 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 Sub-Treasury Pass book. Wrong Totaling of Credits and debits either by D.D.O. or Treasury. Revision in the Plus or Minus Memo in the Sub- Treasury pass book during the subsequent financial year by the Treasury authorities with retrospective effect. Consolidated Closing Balance of all cash books not tallying with consolidated closing balance of annual account of the institutions etc.

A Consolidated Statement No. 3 (3) 1 of Variation in account figures is appended to the Report from which it could be seen that variation in account figures of Rs. 204.03 Lakhs was pointed out in 96 audit paras. 1.1 AMC JAMMALAMADUGU, KADAPA DISTRICT - VARIATION IN ACCOUNTS –

NEEDS RECONCILIATION AND RECTIFICATION– Rs. 2,39,729/- On verification of S.T.O. pass book, it was observed that the closing balance as on 31-03-2009 was Rs. 48,94,130/- but the Opening Balance was taken as Rs.46,54,401/- as on 01-04-2009. The difference amount of Rs. 2,39,729/- would need to be reconciled.

(Para No.1 of the Audit Report on the accounts of AMC, Jammalamadugu, Kadapa District) 1.2 AMC NANDYAL, KURNOOL DISTRICT - VARIATION IN ACCOUNTS

BALANCES – NEEDS RECONCILIATION – Rs. 1,22,93,769/- As verified from Cash book and Sub-Treasury pass book for the year 2009-10, it was observed that the closing balances of ST Pass book and cash book (ST Column) as on 31.3.2010 were not reconciled by each month and at the end of the financial year, the balances are as follows. CB as per ST Pass book as on 31.3.2010 - Rs.3,79,81,845/- CB as per (ST Column) Cash book as on 31.3.2010 - Rs.2,56,88,076/- DIFFERENCE - Rs.1,22,93,769/-

Action would need to be taken to reconcile the difference amount.

(Para No.2 of the Audit Report on the accounts of AMC, Nandyal, Kurnool District)

334

1.3 AMC KHAMMAM, KHAMMAM DISTRICT -- BANK RECONCILIATION NOT DONE - RECONCILIATION TO BE DONE IMMEDIATELY - Rs.1,22,61,112/-

During the course of audit of AMC, Khammam, it was noticed that the Bank

reconciliation was not done by the concerned. In the absence of the reconciliation, the correctness of expenditure incurred and Receipts promptly entered in cash book along with pass book, if any amount misused could not be verified in audit. Closing balance as per cash book as on 31.03.2010 is Rs. 3,73,74,400/- and the Closing balance as per treasury pass book as on 31.03.2010 is Rs.4.96,35,512/-. Difference of Rs. 1,22,61,112/- would need to be reconciled.

(Para No.1 of the Audit Report on the accounts of AMC Khammam, Khammam District)

1.4 AMC MADHIRA, KHAMMAM DISTRICT - BANK RECONCILIATION

NOT DONE - RECONCILIATION TO BE DONE IMMEDIATELY Rs. 25,84,625/- During the course of audit of AMC, Madhira for the year 2009-10, it is noticed that,

there is difference in closing balance of Treasury Pass book and cash book. Closing Balance as on 31.03.2010 as per cash book is Rs.1,08,32,045/-. Closing Balance as on 31.3.2010 as per Treasury Pass Book is Rs. 1,34,16,670/-. Difference is Rs. 25,84,625/-.

In the absence of reconciliation, the position of un-cashed cheques, if any, Receipts not taken in cash books, Cheques not debited in Treasury pass book etc., Mis- appropriation of amounts could not be verified in audit.

(Para No.1 of the Audit Report on the accounts of AMC, Madhira, Khammam District)

2. NON-COLLECTION / SHORT COLLECTION OF DUES (Category 7)

The main source of income of AMCs, i.e., up to 90% is mainly derived from the Market fees. The remaining receipts are from the license fees, interest on short term loans and fixed deposits, leases, rents on godowns etc. During the year 2009-10, an amount of 1382.03 Lakhs was due to be collected by the AMCs all over the state towards Market fee, leases, Rents etc., at the end of the year.

A Consolidated Statement No. 3 (3) 1 of Non-Collection of dues is appended to the

Report for Rs. 1382.03 lakhs was pointed out in 411 audit paras.

335

A few of such cases are detailed below. 2.1 Non-Collection / Short Collection of Revenue In the following cases, Market fee, License fee, Rents etc. were not collected/short collected. Steps may be taken to collect the same.

(Rs. in Lakhs) Sl. No.

Name of the AMC & District Details of Revenue not collected/

short collected

Para no. In the Audit

Report

Amount Due Rs.

1 AMC Allavaram, W.G. dist. Market fee 01 14.20 2 AMC Ambajipetsa, W.G. dist. Market fee 03 9.41 3 AMC Kothapeta E.G. dist. Arrear Market fee 05 8.23 4 AMC Mamidikuduru E.G. dist. Arrear Market fee 02 5.35 5 AMC Mamidikuduru E.G. dist. Market fee 03 7.50 6 AMC Machilipatnam, Krishna dist. License fee 02 0.25 7 AMC Pedana, Krishna dist. Market fee 02 1.12 8 AMC Nandigam, Krishna dist. License fee 01 0.14 9 AMC Vijayawada, Krishna dist. License fee 03 0.44

10 AMC Vijayawada, Krishna dist. Market fee 06 2.98 11 AMC Sattenapalli, Guntur dist. Market fee 01 1.22 12 AMC Nellore, Nellore dist. Rents 03 7.96 13 AMC Vayalpadu, Chittoor dist. Rents 01 1.43 14 AMC Nandikotkur, Kurnool dist Market fee 01 2.22 15 AMC Nandyal, Kurnool dist. Market fee 06 1.87 16 AMC Hiramandalam, Srikakulam dist. Market fee 02 11.45 17 AMC Palakonda, Srikakulam dist Rents 02 0.34 18 AMC Pathapatnam, Srikakulam dist. Market fee 02 3.56 19 AMC Pathapatnam,Srikakulam dist. Arrear market fee 27 6.24 20 AMC Rajam Srikakulam dist. Market fee 02 2.45 21 AMC Rajam, Srikakulam dist. Rents 04 2.91 22 AMC Ponduru, Srikakulam dist. Market fee 01 4.40 23 AMC Ponduru, Srikakulam dist. Rents 02 2.77 24 AMC Srikakulam, Srikakulam dist Market fee 01 9.67 25 AMC Kotabommali, Srikakulam Market fee 01 13.42 26 AMC Anakapalli, Visakhapatnam dist. Market fee 05 42.82 27 AMC Anakapalli Visakhapatnam dist. Rents 07 52.41 28 AMC Bobbili Vizianagaram dist. Market fee 06 34.91 29 AMC Parvathipuram, Vizianagaram

dist. Market fee 06 19.17

30 AMC Vizianagaram, Vizianagaram dist.

Market fee 05 8.23

TOTAL 279.07

336

3. ADVANCES PENDING ADJUSTMENT (Category 8)

It was observed during the course of audit that temporary advances paid for specific purposes

were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as early as possible as per Article 99 of the A.P. Financial Code. Non-adjustment of advances leads to misuse of funds by avoiding deliberately the 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. 3(3)2 of Advances Pending Adjustment is appended to the Report for Rs. 1179.33 lakhs pointed out in 205 audit paras.

A few such cases are shown below. 3.1 ADVANCES PENDING ADJUSTMENT LIKE EDUCATION ADVANCE, FESTIVAL

ADVANCE, HOUSE BUILDING ADVANCE, MARRIAGE ADVANCE AND MOTOR CYCLE ADVANCE ETC. In the following cases, Advances paid to the staff were not adjusted upto the close of audit. Steps

may be taken to adjust the same. (Rs. in Lakhs) Sl. No.

Name of the AMC & District Purpose of Advance

Para no. in the

Audit Report

Amount Outstanding

In Rs.

1 AMC Hiramandalam, Srikakulam dist. EA, FA, MA & HBA etc.,

15 3.38

2 AMC Palakonda, Srikakulam dist -do- 03 7.55 3 AMC Pathapatnam, Srikakulam dist -do- 15 2.15 4 AMC, Rajam, Srikakulam dist. -do- 05 16.31 5 AMC, Amadalavalasa, Srikakulam dist. -do- 14 7.31 6 AMC, Narasannapeta, , Srikakulam dist. -do- 03 9.02 7 AMC, Anakapalli, Visakhapatnam dist. -do- 09 2.04 8 AMC, Allavaram, East Godavari dist. -do- 02 149.25

TOTAL 197.01 3.2 AMC ANAPARTHY, EAST GODAVARI DIST. - ADVANCE PAID TO MANAGING

DIRECTOR OF A.P. STATE CO-OPERATIVE MARKETING FEDERATION LTD, HYDERABAD NOT ADJUSTED FOR Rs.1,50,00,000/-

An amount of Rs. 1,50,00,000/- was drawn and paid to the Managing Director of A.P State Co-operative Marketing Federation Ltd.. Hyderabad as advance on reimbursement basis. But the said amount is not got reimbursed to the Market Committee funds till the close of audit.

Hence, the authority concerned needs to take necessary action to adjust the advance to the Market Committee Funds early. Vr. No & Dt. Amount Rs. 1. 98/7.11.09 Rs. 1,00,00,000/- 2. 149/21.3.10 Rs. 50,00,000/- Total amount Rs. 1,50,00,000/-

(Para No.8 of the Audit Report on the accounts of AMC, Anaparthy, East Godavari District)

337

3.3 AMC AVANIGADDA, KRISHNA DISTRICT - RYTHU BANDHU PATHAKAM - SANCTION OF LOANS - LOAN AMOUNT WAS NOT RECOVERED FULLY - EARLY ACTION WOULD NEED TO BE TAKEN FOR RECOVERY - Rs. 64,84,500/-

An aggregate amount of Rs.69,29,500/- was paid to the farmers towards the Rythu Bandhu Pathakam during the year 2009-10. As verified the records of Rythu Bandhu Pathakam, it was noticed that an amount of Rs. 47, 81,000/- was recovered during the year leaving a balance of Rs. 64,84,500/- as detailed below. Opening balance as on 01-04-09 Rs. 43, 36,000/- Add Loan sanctioned during the year 2009 - 10 Rs. 69, 29,500/- ---------------------- TOTAL Rs.1, 12, 65,500/- Less Loan amount recovered during the year 2009 - 10 Rs. 47, 81,000/- ---------------------- Balance pending as on 31-03-2010 Rs. 64, 84,500/- ---------------------- Hence, the outstanding amount of Rs.64,84,500/- would need to be recovered and adjusted to the Market Committee Funds.

(Para No.3 of the Audit Report on the accounts of AMC, Avanigadda, Krishna District)

4. VIOLATION OF RULES (Category 9)

It was noticed in audit of the AMCs that in some cases, the Rules, Government instructions for incurring the expenditure from the funds of the AMCs were violated either due to negligence or ignorance. Often, the funds of the AMCs were utilised for purposes other than the permitted purposes under the Act / Rules. It was also noticed that in a few cases Government instructions were misunderstood or misinterpreted, such irregular expenditure incurred is objected in the relevant audit reports.

A Consolidated Statement No. 3 (3) 2 on category of Violation of Rules is appended to the Report for Rs. 1190.20 Lakhs pointed out in 1398 audit paras.

4.1 AMC RAJAM, SRIKAKULAM DISTRICT- HBA SANCTIONED- CERTAIN

FORMALITIES NOT OBSERVED- NEEDS ACTION On verification of Cash Book and Advances Recoverable Register of AMC, Rajam, Srikakulam District, it was noticed that an amount of Rs. 90,000/- was drawn and paid towards House Building Advance for House repairs vide Vr.No.85; dt.17.9.2009 from the Market Committee funds. The following formalities were not observed. 1. Property deed of the House building was not mortgaged. 2. Utilisation certificate for the loan sanctioned was not obtained. 3. The building was not insured etc. Hence, action would need to be taken to observe the above procedure and the fact intimated to audit for verification.

(Para No.9 of the Audit Report on the accounts of AMC Rajam, Srikakulam District)

338

4.2 AMC – VIZIANAGARAM, VIZIANAGARAM DISTRICT- REVISION IN

SPECIFICATIONS OF WORK - NEEDS REVISED ADMINISTRATIVE SANCTION - Rs. 28,452/-

In Voucher No. 233/01/2010, an amount of Rs. 1,43,388/- was paid towards the work of Maintenance of office building in the Market Yard. The estimate of the work was provided with the provision of AC Facility and electrification to the building. But in execution, this provision was completely ignored and the new items such as CC work and plastering to the walls were done as shown hereunder.

Items in original estimate

Amount Rs.

Items actually Executed

Amount Rs.

Providing AC Facility 30000/- CC (1:2:4) 28452/-

Providing Electrification 15000/- Cement Plastering Excess over estimate

quantity But this was done without revised administrative sanction. According to article 196 of

Financial Code Vol,I, if any structural alteration is essential, a revised administrative sanction has to be obtained. But this was not done in this case. Hence, the payment made to the revised items is irregular and needs recovery.

(Para No.18 of the Audit Report on the accounts of AMC, Vizianagaram, Vizianagaram District) 4.3 AMC KALYANADURG, ANANTAPUR DISTRICT- WORKS - PAYMENTS MADE

WITHOUT CHECK MEASUREMENT BY EXECUTIVE ENGINEER- IRREGULAR - NEEDS ACTION

Payments for work bills have to be made only after recording check measurement by the DEE as per the instructions issued in G.O.Ms No. 387 PR & RD (Pts) Dept. Dt. 17-9-1998 for the works costing more than Rs.5,000/- and by the Executive Engineer for the works costing more than Rs.1,00,000/-.During the course of audit, it was noticed that in several cases, payments were made without recording check measurements by the competent authorities and without scrutiny by the technical authorities which is irregular.

(Para No.9 of the Audit Report on the accounts of AMC, Kalyanadurg, Anantapur District) 4.4 AMC IBRHIMPATNAM, RANGA REDDY DISTRICT- WORK BILL - UN-

AUTHORISED PAYMENT TO CONTRACTORS - INADMISSIBLE - HELD UNDER OBJECTION FOR Rs. 10,68,800/-

During the course of audit, it was noticed that the amounts were paid to the following contractors, without the bills being pre-audited by the State Audit Department. Hence the said amount cannot be admitted in post audit and is held under objection. Sl.N

o. Name of the work Name of the contractor M.B. No. Voucher No. Amount in

Rs.

1 Construction of

covered shed at M.Y. Ibrahimpatnam

P. Damodar Reddy

25/EE/TR/H/2008-09

135, dt.11.3.2010 5,03,900/-

2 Construction of 20

Nos. of shops at M.Y. Ibrahimpatnam

R. Karunakar Reddy 28/EE/TR/H/2

008-09 104,

dt.28.1.2010 5,64,900/-

Total 10,68,800/-

(Para No.20 of the Audit Report on the accounts of AMC, Ibrahimpatnam, Ranga Reddy District)

339

5. 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 not remitted to Government fully or a part of them only were remitted in spite of statutory obligation to remit the same to Government account within the prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non-adherence.

A Consolidated Statement No. 3 (3) 2 of Non-remittance of deductions / recoveries from vouchers / pay bills / contingent bills are appended to the Report for Rs. 192.04 Lakhs was pointed out in 390 audit paras. The deductions normally made from work bills / pay bills that are to be remitted to Government account are

Work Bills 1. Income Tax 2. Sales Tax 3. Seigniorage Fees Pay Bills 1. Profession Tax 2. G.P.F. (Government Employees) 3. G.I.S Premium. 4. Contribution to Pension Scheme 5. Sainik Welfare fund

Some of them are as hereunder.

5.1 INCOME TAX RECOVERIES NOT REMITTED / PARTLY REMITTED

Under Section 200 of Income Tax Act 1961, read with Rule 30 (1) (b), the authority which deducts the Income Tax from work bills or from pay bills shall remit the same to the Income Tax Department within the first week of the next month of such deduction. In case of failure to remit the Tax, the Drawing and Disbursing Officer will be held responsible under section 201 (1) for payment of interest at 15% per annum, under section 201 (1) (a) from the time of such default till the payment of such tax and prone to levying of penalty under section 221 up to the amount of tax not remitted plus prosecution under section 276 B for a period ranging from three months to seven years with fine. Though the statutory provisions are clear, it was observed during the year under audit that the Income Tax deducted at source from the work bills was not remitted to the Central Government Account till the close of audit. Such irregularities noticed were pointed out in the relevant audit reports. A few of such cases are mentioned below.

SI. No

Name of the AMC & Dist. Amount to be remitted

in Rs.

Para no.

1 AMC, Palakonda Srikakulam dist. 19058 17 2 AMC, Rajam, Srikakulam dist. 30132 21 3 AMC, Narasannapet, Srikakulam dist. 43957 7 & 8 4 AMC, Ponduru, Srikakulam dist. 1805 09

340

5 AMC, Kotabommali, Srikakulam dist. 1523 14 6 AMC, Tekkali, Srikakulam dist. 1805 11 7 AMC, Anakapalli, Visakhapatnam dist 107451 22 8 AMC, Bobbili, Vizianagaram dist. 24134 25 9 AMC, Parvathipuram, Vizianagaram dist 14904 26 10 AMC, Gajapathinagaram, Vizianagaram dist 4504 11 11 AMC, Movva, Krishna dist. 6038 03 12 AMC, Gannavaram, Krishna dist. 7366 06 13 AMC, Vijayawada, Krishna dist. 54791 13

TOTAL 317468 5.2 VAT/TOT DEDUCTED BUT NOT REMITTED OR PARTLY REMITTED

As per Section 4 (7) (b) Andhra Pradesh Value Added Tax Act, 2005, any dealer executing any works / contracts for the Government or local authority may opt to pay tax by way of composition at the rate of 4% on the total value of the contract executed for the Government or local authority and in such cases, the tax at 4% shall be collected at source by such contractee and remitted to Government in such manner as may be prescribed. As per Rule 17 (2) (h) of Andhra Pradesh Value Added Tax Rules, 2005, Where the contractee Government Department or local authority fails to remit the VAT collected at source within fifteen days of the date of payment to the contractor, the authority concerned shall be liable to pay penalty and interest for the delayed payment

It was observed that VAT deducted as source from the work bills was not remitted to the state funds till the close of audit. Such irregularities noticed were pointed out in the relevant audit reports. A few of such cases are mentioned below.

Sl. No Name of the AMC & Dist. Amount to be remitted in

Rs.

Para no.

1 AMC, Palakonda, Srikakulam. 33645 17 2 AMC, Rajam, Srikakulam dist. 54102 21 3 AMC, Narasannapet, Srikakulam dist. 76621 07 4 AMC, Anakapalli, Visakhapatnam dist. 191884 23 5 AMC, Bobbili, Vizianagaram dist. 43668 25 6 AMC, Parvathipuram, Vizianagaram dist. 28348 21

10 AMC, Vijayawada, Krishna dist. 83111 13 TOTAL 511379

5.3 SEIGNIORAGE FEES DEDUCTED BUT NOT REMITTED OR PARTLY REMITTED As per G.O.MS.No.331, Industries and Commerce (M.I) Department, Dated 21- 06-2000, Seigniorage Fees or Dead Rent 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 was either not remitted or partly remitted to State Funds till the close of audit. Such inaction was pointed out in the relevant audit reports. Some of such instances are listed below.

341

SI. No Name of the AMC & Dist. Amount

to be remitted in

Rs.

Para no.

1 AMC, Palakonda Srikakulma dist. 11892 17 2 AMC, Rajam, Srikakulam dist. 29078 21 3 AMC, Narasannapet, Srikakulam dist. 26919 07 4 AMC, Anakapalli, Visakapatnam dist 106429 24 5 AMC, Bobbili, Vizianagaram dist 8787 25 6 AMC, Parvathipuram, Vizianagaram dist 904 23 7 AMC, Gajapathinagaram, Vizianagaram dist 7518 11 8 AMC, Movva, Krishna dist. 2066 05 9 AMC, Gannavaram, Krishna dist. 3268 06 10 AMC, Vijayawada, Krishna dist. 121313 13

Total 318174 5.4 CMRF / NAC/QC Charges & LABOUR CESS

Sl. No

Name of the AMC & Dist. Item Amount to be

remitted in Rs.

Para no.

1 AMC, Palakonda Srikakulma dist. NAC 2,078 17 QC 20,000 Labour cess 9,396

2 AMC, Rajam, Srikakulam dist. NAC 3,562 21 QC 20,000 Labour cess 12,286

3 AMC, Narasannapet, Srikakulam dist.

NAC 4,728 07

4 AMC, Itchapuram, Srikakulam dist.

Labour cess 20,645 23

5 AMC, Anakapalli, Visakhapatnam dist

NAC 11,993 25 Labour cess 30,758 26 L.I. 4,162 27

6 AMC, Bobbili, Vizianagaram dist NAC 2,728 25 AMC, Parvathipuram, Vizianagaram dist


7 AMC, Gajapathinagaram, Vizianagaam dist

NAC 446 11 CMRF 57 Labour cess 1,991

8 AMC, kothavalasa Vizianagaram dist


9 AMC, Vijayawada, Krishna dist. CMRF 4,046 13 NAC 5,956

342

6. 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 reasonably be 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 transparency in public expenditure has not been availed. In spite of all guidelines and instructions, the DDOs of AMCs 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 registers. The paras on non-production of records have been drawn from the individual ARs of the institution 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 produced whenever they are being demanded by the audit parties and other agencies during their local visits.

A Consolidated Statement No. 3 (3) 2 of Non-production of records is appended to the Report for Rs. 1638.42 Lakhs pointed out in 926 audit paras. 6.1 JUNGLE CLEARANCE - CONNECTED NMRS AND ESTIMATES NOT PRODUCED

-NEEDS ACTION - Rs. 30,740/- During the course of audit, it is observed that an amount of Rs 30,740/-was drawn and paid towards the jungle clearance but the connected NMRs and estimates were not produced to audit for verification. Hence, action would need to be taken to produce the NMRs and estimates for jungle clearance to audit for verification.

(Para No.31 of the Audit Report on the accounts of AMC, Kotabommali, Srikakulam District) 6.2 EXECUTION OF WORKS - CONNECTED ESTIMATES, MEASUREMENT BOOKS

Etc., NOT PRODUCED In respect of the expenditure incurred towards execution of works by the AMCs as detailed

below, the connected estimates, measurement books, agreement files etc., were not produced to audit for verification. The correctness of the expenditure incurred could not be verified due to non-production of the connected records. Hence, the same is held under objection.

Sl. No.

Name of the AMC & Dist. Particulars of the records not produced

Amount involved in Rs.

ara no.

1 AMC, Cheepurupalli, Vizianagaram dist.

Estimates, M.Books and Tender files

4,68,815 05

2 AMC, Tadepalligudem, W.G. dist.

-do- 40,000 14

343

3 AMC, Attili, W.G. dist. -do- 1,94,013 09 4 AMC, Guntur, Guntur dist. -do- 2,11,44,432 42 5 AMC, Mangalagiri,

Guntur dist. -do- 18,51,905 11

6 AMC, Macherla, Guntur dist.

-do- 4,35,752 08

7 AMC, Nizampatnam, Guntur dist.

-do- 20,12,172 13

8 AMC, Udayagiri, Nellore dist.

-do- 24,01,435 17

9 AMC Atmakur, Nellore dist.

-do- 24,99,390 20

10 AMC, Guntakal Anantapur dist.

-do- 8,54,330 18

11 AMC, Peddapalli Kareemnagar dist.

-do- 39,78,600 06

12 AMC, Vemulawada, Kareemnagar dist.

-do- 11,04,606 11

13 AMC, Janagon, Warangal dist.

-do- 6,00,122 07

TOTAL 3,75,85,572 6.3 PAID VOUCHERS NOT PRODUCED - IRREGULAR

Paid vouchers in support of the expenditure incurred as detailed below were not produced to audit for verification. As such, the correctness of the expenditure incurred could not be verified in audit and the same is held under objection.

Sl. No.

Name of the AMC & Dist. Particulars of the records not produced


Para no.

1 AMC, Tanuku, W.G. dist.

Paid vouchers relating to Contingencies and sitting fee of members

13,49,426 09

2 AMC, Mangalagiri, Guntur dist.

-do- 1,25,702 10

3 AMC, Bowenpalli, R.R. dist. -do- 4,73,335 15 4 AMC, Hyderabad, R.R. dist. -do- 14,56,418 17

TOTAL 34,04,881 6.4 AMOUNT REMITTED – CHALLANS NOTPRODUCED

Amount was drawn and remitted to different heads i.e Sales Tax, Seigniorage Charges, Income Tax, NAC etc. But the challans for the said remittances were not produced to audit for verification. A few such cases are mentioned below.

Sl. No.

Name of the AMC & Dist.

Particulars of the records not produced


Para no.

1 AMC, Tanuku, W.G. dist.

Hire charges payees Acknowledgements

1,90,612 10

2 AMC, Macherla, Guntur dist.

Outgoing recoveries challans not produced

4,57,547 5

TOTAL 6,48,159

344

7. 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.3 (3) 2. 43 cases involving an amount of Rs. 42.37 Lakhs were pointed out in the relevant audit reports. A few such cases are given below. 7.1 MARKET FEE COLLECTED BUT NOT TAKEN TO DAILY INCOME REGISTER - MISAPPROPRIATION - NEEDS RECOVERY AND EARLY REMITTANCE - Rs.7,200/- On verification of miscellaneous Receipt Books with Daily Income Register during the audit, it was noticed that the following amounts totalling Rs.7,200/- collected from the traders through receipts given below were not accounted for in the Daily Income Register. As such, it is construed that the said amounts were misappropriated. The misappropriated amount shall be recovered from the persons responsible and credited to A.M.C. funds.

Books No.

M. Receipt No. & Dt. Name of the work

Amount collected but

not accounted for Rs.

12

568/9-2009 Shankar Cotton Traders Guntur Lorry Bill, AEN, 1125, Way Bill F. 9533248

2,400/-

569/25-10-2009 Shankar Cotton Traders Guntur Lorry Bill, A.P.24T 1899, Way Bill F. 9533247

2400/-

570/30-10-2009 Shankar Cotton Traders Guntur Lorry Bill, AP 7U 2147 Way Bill F. 9533243

2,400/-

(MD. Biyabani) Supervisor. Total: 7,200/-

(Para No.12 of the Audit Report on the accounts of AMC, Nekkonda, Warangal District) 7.2 MARKET FEE – MARKET FEE COLLECTED THROUGH MISCELLANEOUS

RECEIPTS – BUT AMOUNT NOT REMITTED TO AMC FUNDS – MIS-APPROPRIATION – NEEDS RECOVERY - Rs. 17,446/-

An amount of Rs.17446/- was collected as Market fee through Miscellaneous Receipts as detailed below. But the collected amount was not remitted to Market Committee funds. As such, it is construed that the said amounts were misappropriated. Hence, the Secretary, Market Committee has to take steps to recover the amount from the persons concerned and remit it to AMC funds.

Sl. No. Type of Collection Receipt Book No

Receipts Sl.No Amount (Rs.)

1 Market fee 185 18462 to 18465

5,426/-

2 188 18726 to 18737

12,020/-

TOTAL 17,446/-

(Para No.20 of the Audit Report on the accounts of AMC, Alampur, Mahaboobnagar District)

345

7.3 COLLECTION OF MARKET FEES ETC., -NOT REMITTED TO MARKET

COMMITTEE FUNDS- IRREGULAR- NEEDS REMITTANCE: Rs.55,389/-. An amount of Rs. 55,389/- was debited from the cash balance of cashbook and noted as remitted to Market Committee fund vide challans as shown below. 1. Ch. No. 4456, dated: 4-7-2009 = Rs. 23,907/- 2. Ch.No. 8914, dated: 23-11-2009 = Rs. 31,482/- Total = Rs. 55,389/- On verification of treasury passbook, it was found that Rs. 55,389/- was not remitted to market committee funds. As such, it is construed that the said amounts were misappropriated. Hence, the amount shall be recovered from the person or persons responsible and remitted to Market Committee funds.

(Para No.08 of the Audit Report on the accounts of AMC, Zaheerabad, Medak District) 7.4 AMOUNT COLLECTED THROUGH RECEIPT BOOKS BUT NOT TAKEN INTO

IRSALNAMA - MISAPPROPRIATION - NEEDS RECOVERY- RS. 7719/- On verification of receipt book No. 481, it was noticed that an amount of Rs. 7719/- was collected but the same was not taken to Irsalnama. As such, it is construed that the said amounts were misappropriated. Details are given below.

Book No. Receipt No. Date Amount in Rs. 481 24016 30-10-2009 2777/- 481 24017 -do- 570/- 481 24018 -do- 1405/- 481 24019 -do- 2277/- 481 24020 -do- 570/- 481 24021 -do- 120/- Total 7719/-

Action would need to be taken to recover the amount of Rs.7719/- from the persons

responsible and credit to the A.M.C. funds.

(Para No.15 of the Audit Report on the accounts of AMC, Siddipet-, Medak District)

8. EXCESS PAYMENTS (Category 13)

It was observed that in several cases that excess payments were made due to incorrect calculation, wrong totalling, admission of inadmissible claims, ignorance of rules etc.

A Consolidated Statement No. 3 (3) 2 of Excess Payments for Rs. 59.35 Lakhs pointed out in 75 audit paras is appended to the Report.

346

8.1 PAYMENT OF CHARGES TO SRIVEN MEDIA, AMEERPET, HYDERABAD FOR DISPLAY OF MSP RATES OF COMMODITIES ON THE BACK SIDE OF PASSENGER SEAT OF RTC BUSES OF T.P.GUDEM -EXCESS PAYMENT- NEEDS RECOVERY - RS.1,20,000/-

An amount of Rs 5,40,000/- was paid through voucher No 154/30-3-10 to Sriven Media, Ameerpet, Hyderabad towards charges for display of Minimum Support Prices of commodities pertaining to Agricultural Marketing Department on the back side of passenger seats of RTC Buses of T.P.Gudem bus depot for the period from 3/3/10 to 10/9/10. As seen from the certificate of Advertisement displayed panels given by the Sriven Media, Hyderabad 20 buses were engaged from 3/3/10 to 2/9/10. As per Lr. No. I&PR/2529/2/2009, dt 18-1-2010 of the Commissioner & Director of Agricultural Marketing Government of Andhra Pradesh, Hyderabad an amount of Rs 21,000/- only to be paid for each bus for display of Minimum Support Prices of commodities. As such for 20 buses only a sum of Rs 4,20,000/- [20 x 21000] has to be paid to Sriven Media, Hyderabad. But an amount of Rs 5,40,000 was paid resulting in excess payment of Rs.1,20,000/-.

A certificate regarding commencement of contract period from the date of display of message has to be obtained from the R.T.C Depot concerned for authentication. But no certificate was obtained from the R.T.C Depot manager, T.P.Gudem.

The excess payment of Rs 1,20,000/- thus made would need to be recovered from SRIVEN Media, Hyderabad.

(Para No.16 of the Audit Report on the accounts of AMC, Tadepalligudem, W.G. District) 8.2 WORKS - RATE TAKEN WRONGLY IN ESCLATION REPORT – LED TO

EXCESS PAYMENT - NEEDS RECOVERY- Rs.52362/- Name of the work: Providing auction platforms in the existing damaged platforms in New Market Yard.

During audit of AMC, Guntur for the year 2009-10, it was noticed that the rate was taken wrongly in escalation report of the following works. The rate of R.S. Joists (Only Plates) as per Original Estimates was taken wrongly as Rs.44.80 instead of Rs.51.20. Thus there was a difference of Rs.6.40 per Kg. The details are as follows.

Name of the work

Item of the work

Date of recording

Quantity In Nos.

Weight per

each

Total weight

Difference Rate

Amount to be

deducted Covered auction Platform-I

R.S. Joists (Only plates)

26.12.08 52 29.22 1519.44 6.40 9724.42

Covered auction Platform-2


29.12.08 48 29.22 1402.56 6.40 8976.39



31.12.08 52 29.22 1519.44 6.40 9724.42

347



26.12.08 50 29.22 1461/- 6.40 9350.40



28.12.08 26 29.22 759.72 6.40 4862.20



28.12.08 26 29.22 759.72 6.40 4862.20


R.S. joists (Only plates)

28.12.08 26 29.22 759.72 6.40 4862.20

Total 52362.20

As mentioned above, it was very clear that an amount to the tune of Rs.52362/- was paid in excess to the contractor. Hence, immediate action would need to be taken to recover the same from the person/s responsible and remit to the AMC funds.

(Para No.57 of the Audit Report on the accounts of AMC, Guntur, Guntur District) 8.3 WORKS - PRICE ADJUSTMENT WAS NOT MADE - VIOLATION OF RULES - LED TO EXCESS PAYMENT - NEEDS RECOVERY - Rs. 31,994/- Name of the work: Construction of CC approaches between gate 1 and 2 in new market yard.

As verified from the measurement book No.502/2009-10, estimates, data and agreement, it was noticed that the price adjustment was not made with regard to cement and steel. The quantities of these items were recorded as detailed below.

Item of the work

Quantity Total weight Rate as per

O.E. in Rs.

Rate as per

G.O. in Rs.

Difference Rs.

Excess amount

Rs.

VCC (1:4:8)

52.50 cu.m

52.5x0.46x360=8694 kg 3900 3300 600 5216.40

VCC (1:1 ?:3)

105.01 cu.m

105.01x425=44629.25 kg

3900 3300 600 26777.55

Total 31993.95 The excess amount paid should be recovered and credited to the Market committee funds.

(Para No.63 of the Audit Report on the accounts of AMC, Guntur, Guntur District) 8.4 SEIGNIORAGE CHARGES SHORT DEDUCTED FROM WORK BILLS – NEEDS RECOVERY- Rs.4844/- As verified from the M. Book No. 62/2009-10 Page No. 18 and Memo of payment vide Vr. No. 66/ 14-7-2009 in AMC, Guntakal, Anantapur district, a sum of Rs. 17,498/- had to be recovered towards Seigniorage charges but only an amount of Rs.12,654/- was recovered leading to an excess payment of Rs.4,844/-. The excess amount paid due to short deduction should be recovered and remitted to the head of account concerned.

(Para No.22 of the Audit Report on the accounts of AMC, Guntakal, Anantapur District).

348

8.5 RECOVERIES NOT EFFECTED FROM WORK BILLS - EXCESS PAYMENT - NEEDS RECOVERY Rs. 22,194/-.

As verified from the work bills, it was noticed that the statutory recoveries like Quality Control, Labour Cess at the rates prescribed by the Government were not deducted from the work bills causing excess payment to the contractors. These excess payments worked out to Rs. 22194/- as detailed below. The same would need to be recovered from the responsible persons.

1. Quality Control 0.5% 5657/- 2. Labour Cess 1% 11315/- 3. VAT 4% 5222/- Total 22194/-

(Para No.16 of the Audit Report on the accounts of AMC, Rayadurg, Anantapur District). 8.6 AMOUNT DRAWN MORE THAN THE AUTHORIZED AMOUNT - Rs. 7741/-

As verified from the following vouchers in AMC, Palamaner, Chittoor district, it was noticed that an amount of Rs.7741/- was drawn more than the authorized amount in pre-audit as shown below.

Vr. No. &Date

Nature of bill Amount drawn

Rs.

Amount authorized

Rs.

Excess drawn

Rs. 1/4/09 Pay bill for the month of March, 09

paid in April, 2009 62,650/- 56,009/- 6,641/-

20/4/09 Pay bill for the month of May, 09 paid in June, 2009

80,413/- 79,663/- 750/-

197/3/10 Pay bill for the month of February, 09 paid in March, 2009

1,17,933/- 1,17,583/- 350/-

7741/-

The excess amount drawn over the authorized amount in pre-audit should be recovered.

(Para No.06 of the Audit Report on the accounts of AMC, Palamaner, Chittoor District). 8.7 INTERIM RELIEF PAID FOR ENCASHMENT OF EARNED LEAVE ON

SUPERANNUATION - IRREGULAR - NEEDS RECOVERY - Rs.55,953/- An amount of Rs.473770/- was drawn in Vr.No.105/9-3-09 and paid to Sri K. Rathnam, Secretary towards Surrender of Earned Leave for 298 days at his credit on the date of his Superannuation. The Encashment of Earned leave for the above days was made after taking Interim Relief into consideration @ 22% on pay in gross salary is irregular. As per G.O.Ms.No.303 Fin (PC-I) Dept., dt, 15-10-08 Para 2 (C the Interim Relief is not admissible for Encashment of Earned leave. The Interim Relief paid @ 22% on pay for 298 days of Earned leave salary amounting to Rs. 55,953/- as detailed below in violation of the said G.O. should be recovered.

349

E.L. Salary paid E.L Salary admissible Excess paid

Pay: 25600/- Pay : 25600/- 55,953/- D.A.: 13563/- DA : 13263/- HRA : 3200/- HRA : 3200/- IR : 5632/- Gross : 47695/- Gross : 42,063/- 47695X298/30=4,73,779/- 42063X298/30=4,17,826/-

(Para No.10 of the Audit Report on the accounts of AMC, Srikalahasthi, Chittoor District) 8.8 WORKS - PROVIDING C.C. ROAD IN FRONT OF OFFICE FROM WAY IN

GATE TO GOWDOWN IN MARKET YARD - QUALITY CONTROL CHARGES PAID TO CONTRACTOR - IRREGULAR - NEEDS RECOVERY - Rs. 20000/-

During audit of AMC, Srikalahasti, Chittoor district for the year 2009-10, an amount of Rs. 20,000/- was drawn and paid vide Vr.No.225/9/2009, to contractor towards Q.C. charges along with 2nd and final payment for the work of laying of CC road from ingate to godown in the market yard in front of the office. As per G.O Ms. No. 61 TR & B (R.III), dt. 11.4.2000 read with G.O Ms. No. 159 TR & B (R.III), dt. 30.10.2004, the Q.C. charges have to be deducted from the bill and remitted to dept. for issue of Q.C. certificate. But Quality control charges were paid to the contractor along with 2nd and final payment which is irregular. Action need to be taken to recover the amount and remitted to Market funds.

(Para No.10.6 of the Audit Report on the accounts of AMC, Srikalahasthi, Chittoor District) 8.9 WORKS - EXECUTION OF WORKS - SHORT DEDUCTION OF RECOVERIES

EXCESS PAYMENT - NEEDS RECOVERY Rs. 58,926/- As verified from the final bills of the following works of AMC, Srikalahasthi, Chittoor District, the deduction of recoveries as noted below against each were made calculating on the net value of the work done instead of on the gross value of the work in violation of the provisions of the Income tax Act, 1966 and A.P. VAT Act 2005, which resulted in excess payment. The excess amount paid should be recovered and credited to the Market committee funds.

S.No

Vr.No. Name of work Deductions

Gross value of

work

Actually deducte

d

To be deducted

Short deduct

ions 1 369/2/20

10 Laying of C.C. Road in Market yard

IT 1117113 18542 25023 6481

VAT 33711 44685 10711 NAC 2069 2793 724

2 138/7/2009 & 225/9-09

C.C. Road in front of office from in gate to godown

IT 1138998 20892 25514 4622 VAT 37308 45560 8252 NAC 2332 2848 516

3 137/7/2009

Construction of 16 Nos. shopping complex.

IT 1702203 28597 38130 9533 VAT 51066 68088 17022 NAC 3191 4256 1065 58926

(Para No.10.8 of the Audit Report on the accounts of AMC, Srikalahasthi, Chittoor District)

350

8.10 QUARTERS RENT NOT DEDUCTED FROM THE EMPLOYEES WHO ARE RESIDING IN THE QUARTERS - NEEDS RECOVERY Rs.40,958/-

During audit of AMC, Khammam, for the year 2009-10, it was noticed that the rent of quarters from the following employees was not deducted from the salary as detailed below.

ANNEXURE

Sl. No.

Quarter. No.

Name & Designation of

Employee (Sarvasri)

Period Pay HRA to be deducted

P.M Total

1 C1 N. Narasimha Rao, Sr. Asst.

3/09 to 5/08 13285 1329X3 3987/-

6/09 to 2/10 13645 1365X9 12285/- Total : 16,272/- 2 C2 Sk. Meera, AMS 3/09 to 11/09 9050 905X9 8145/- 12/09 to 2/10 9285 929X3 2787/- Total : 10,932/- 3 B2 P. Veeranjaneyulu 3/09 to 4/09 4270 427X2 854/- 5/09 to 2/10 4950 495X10 4950/- Total : 5,804/-

4 A1 V.Srinivas Reddy, JMS 3/09 to 4/09 6350 635X2 1270/-

5/09 to 2/10 6675 668X10 6680/- Total : 7,950/- 40,958/-

Therefore, early action would need to be taken to recover the rent amounting to Rs.40,958/- .

(Para No.7 of the Audit Report on the accounts of AMC, Khammam, Khammam District)

8.11 EXCESS PAYMENT MADE DUE TO ARITHEMATICAL ERROR - NEEDS

RECOVERY- RS. 20,000/- An amount of Rs. 3,55,862/- was paid instead of Rs. 3,35,862/- to Sri A. Sudhakar Reddy, Contractor (Agreement No. 53/09-10, dt. 1.6.2009) vide Vr. dt. 16.11.2009 resulting in excess payment of Rs. 20,000/-.

(Para No.4 of the Audit Report on the accounts of AMC, Rapur, Nellore District)

9. 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. 3 (3) 3 is appended to the report from which it can be noticed that 8 paras involving Rs. 2.72 Lakhs were reported.

351

9.1 COLLECTION OF MARKET FEES ETC., - DISCREPANCY IN REMITTANCE - HELD UNDER OBJECTION: Rs. 8,970/-

As per cashbook page no. 103 an amount of Rs. 8970/- was shown as cash remittance on 16-10-2009, but on verification of treasury passbook, it is found that Rs. 8970/- was already remitted to Market Committee funds in the month of September 2009, itself vide challan no. 6532, dated: 24-9-2009. In the Audit, it is not explained the cause of discrepancy in the cash remittance in the month of October 2009 and its credit in the treasury passbook in the month of September 2009 i.e., one month earlier to cash remittance. The fact need to be ascertained whether it is a cash remittance or direct remittance from the persons. In case of direct remittance the amount of Rs. 8970/- needs to be recovered from the person or persons responsible and remitted to market committee funds.

(Para No.7 of the Audit Report on the accounts of AMC, Zaheerabad, Medak District) 9.2 VERIFICATION OF MAIN CASH BOOK - SHORT ARRIVAL OF CASH OPEING BALANCE AS ON 16.12.2009 BY ACCOUNTANT - LOSS TO MARKET FUNDS - Rs. 2,01,360/- - NEEDS RECOVERY

On verification of main cash book, it was noticed that the cash closing balance for

Rs.2,06,640/- was shown and certified by the Executive Authority on 15.12.2009 at page no. 99 and the cash book and other records were handed over by Sri G. Shyam Sunder Reddy, Ex-Office Superintendent (who deals in the account section) to Sri K. Krishna Babu, Accountant who is promoted and posted as Accountant to this Market Committee. A note was passed by Sri K. Krishna Babu, Accountant in cash book on 15.12.2009 regarding the cash closing balance of Rs.2,06,640/- which was arrived on the above date by Sri G. Shyam Sunder Reddy, Ex-Office Supdt., out of which only an amount of Rs.5280/- was handed over instead of Rs.2,06,640/- hence, the cash opening balance taken for Rs.5280/- on 16.12.2009 and continued the transaction up to the date.

Therefore, it is clear that the short arrival of cash balance amount for Rs.2,01,360/- (206640-

5280-Rs.201360) has been loss to AMC funds and might have been misappropriated.

In this regard, a half margin letter No. Spl/01/2010-11, dt.25.10.2010 was issued to the Executive Authority and was acknowledged on 25.10.2010 regarding action taken for collecting the short arrival of cash balance for Rs.2,01,630/- on 16.12.2009. But no steps were taken by the Executive Authority for short arrival of cash balance by the accountants till the close of audit.

Immediate action would need to be taken to recover the amount for Rs.2,01,360/- from the

person/s responsible and credited to market funds.

(Para No.5 of the Audit Report on the accounts of AMC, Gaddiannaram, R.R. District) 10. SURCHARGE CERTIFICATES RECOVERY PENDING (Category 17)

In accordance with the provisions 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

352

of rule 9 of A.P. State Audit Rules issued in G.O. Ms. No. 130, Finance & Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the cases mentioned in the statement.

Immediate action would need to be taken to recover the surcharged amount from the surcharges and fact be intimated to audit.

A Consolidated Statement No. 3 (3) 3 Issue of Surcharge Certificates is appended to the Report for Rs.1.20 lakhs was pointed out in 1 audit para.

11. OTHERS (Category 18) Other objections which do not come under the above categories are incorporated under this

category. Such objections numbering 904 were raised for an amount of Rs. 1192.10 lakhs as detailed in Statement No. 3 (3) 3. 11.1 PENSION PAYMENT MADE -NEEDS REIMBURSMENT Rs.16,20,067/- During audit of AMC, Amadalavalasa for the year 2009-10 it is observed that an amount of Rs 16,20,067/- was drawn and paid towards pension payment on P.P.Os from the Market Committee funds as detailed below. Sl.No Vr.No. &date Purpose Amount Rs.

01 3/4.2009 Pension Payment for 3/2009 123933/- 02 5/5.2009 Pension Payment for 4/2009 131352/- 03 13/6.2009 Pension Payment for 5/2009 131352/- 04 25/7.2009 Pension Payment for 6/2009 128749/- 05 63/8.2009 Pension Payment for 7/2009 128749/- 06 65/9.2009 Pension Payment for8/2009 128749/- 07 115/10.2009 Pension Payment for 9/2009 128749/- 08 139/11.2009 Pension Payment for 10/2009 128749/- 09 154/12.2009 Pension Payment for 11/2009 135303/- 10 155/12.2009 DA arrears for 1/7/09 to3/10/09 26216/- 11 169/01.2010 Pension Payment for 12/2009 135303/- 12 177/2.2010 Pension Payment for1/2010 135303/- 13. 183/3.2010 Pension Payment for 2/2010 135303/- 14 nil DA Arrears 22257/-

Total 1620067/- But the same was not got reimbursed so far. Hence, early action would need to be taken to get the amount reimbursed.

(Para No.18 of the Audit Report on the accounts of AMC, Amadalavalasa, Srikakulam. District)

12. D.D/CHEQUES RECEIVED BUT NOT REALISED WITHIN TIME (Category 19)

2 Objections involving an amount of Rs. 2.09 lakhs regarding D.D/Cheques received but not realized within time were raised as detailed in Statement No. 3 (3) 3.

PLACE : HYDERABAD DATED : 22-12-2012

DIRECTOR STATE AUDIT,

A.P., HYDERABAD


SECTION - II

ARREARS ARREARS CURRENT ARREARS CURRENT1 Adilabad 0 0 16 0 02 Ananthapur 0 0 13 0 03 Chittoor 0 0 19 0 04 East Godavari 1 0 19 1 05 Guntur 0 0 18 0 06 Kadapa 1 1 12 0 07 Karimnagar 0 0 20 0 08 Khammam 0 0 13 0 09 Krishna 0 0 18 0 0

10 Kurnool 0 0 12 0 011 Mahaboobnagar 0 0 17 0 012 Medak 0 0 11 0 013 Nalgonda 0 0 19 0 014 Nellore 0 0 11 0 015 Nizamabad 0 0 10 0 016 Prakasam 0 0 14 0 017 Ranga Reddy 0 0 12 0 118 Srikakulam 0 0 13 0 019 Visakhapatnam 0 0 8 0 020 Vizianagaram 0 0 9 0 021 Warangal 0 0 14 0 022 West Godavari 0 0 18 0 0

2 1 316 1 1

16

17

12

12

13191918

2013

STATEMENT NO. 1STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF AMCS FOR THE YEAR 2009-

S. No NAME OF THE DISTRICT

AUDIT DEMAND AS ON 31-3-2009

AUDIT COMPLETED UP TO 31-3-2010


CURRENT

18

TOTAL 317

11191110141313

18

89

14

Page 353

Rs. In Lakhs

S. NoNAME OF THE

DISTRICT RECEIPT PAYMENT

1 Adilabad 2376.3 1571.68

2 Ananthapur 1306.69 1098.34

3 Chittoor 1355.5 1557.09

4 East Godavari 3296 2056.61

5 Guntur 7119.22 4985.15

6 Kadapa 829.92 788.45

7 Karimnagar 2474.07 1459.88

8 Khammam 2226.39 1735.96

9 Krishna 3386.76 2762.01

10 Kurnool 2261.49 1556.23


12 Medak 493.36 534.27

13 Nalgonda 2737.28 2105.79

14 Nellore 1527.2 1201.53

15 Nizamabad 1792.62 1628.05

16 Prakasam 1557.58 1560.19

17 Ranga Reddy 1638.13 1482.46

18 Srikakulam 1004.17 639.09


20 Vizianagaram 652.88 500.74

21 Warangal 2789.21 1904.53

22 West Godavari 3448.59 3408.646656.34 36339.57

STATEMENT NO. 2 (1)STATEMENT OF CONSOLIDATED RECEIPTS AND

PAYMENTS OF AMCS FOR THE YEAR 2009-10

TOTAL

Page 354

S. No Name of the District Market

FeeLicense

FeesLate Fee

Property Rental Fees

Interest On

Investment

Auctions

Income from Misc.,

Sources

Deposits Loan AdvancesGrant In Aid/Othe

rsTotal

1 Adilabad 1907.65 4.68 0.33 29.05 0.00 0.28 1.54 301.92 38.23 86.62 6.00 2376.302 Ananthapur 675.36 3.12 0.05 51.81 4.32 5.23 2.12 58.63 253.82 18.83 233.40 1306.693 Chittoor 782.67 5.45 0.07 53.06 14.25 6.48 14.46 304.79 125.25 16.48 32.55 1355.504 East Godavari 2663.73 5.84 0.07 16.01 80.10 0.70 49.08 7.99 23.89 112.32 336.27 3296.005 Guntur 6093.81 19.33 0.21 24.20 73.15 1.34 437.66 159.16 133.03 49.07 128.26 7119.236 Kadapa 539.53 2.71 0.00 38.17 4.39 0.00 4.26 7.41 65.74 27.43 140.28 829.927 Karimnagar 2235.66 7.92 0.13 30.59 27.47 2.01 3.06 16.55 12.14 122.95 15.59 2474.078 Khammam 1913.89 2.06 0.00 32.11 3.42 1.18 114.75 13.30 38.33 84.81 22.54 2226.399 Krishna 2693.62 4.02 0.01 25.50 12.44 1.23 275.97 18.64 233.22 92.90 29.21 3386.76

10 Kurnool 1668.33 2.52 1.62 66.90 3.75 0.48 337.42 8.48 60.37 57.50 54.12 2261.4911 Mahaboobnagar 1329.75 10.96 0.48 20.11 0.64 0.01 62.42 32.14 88.14 60.83 0.04 1605.5212 Medak 438.32 8.20 0.03 16.20 0.54 0.28 0.01 1.52 19.78 5.40 3.08 493.3613 Nalgonda 1956.77 3.44 2.61 27.47 11.44 0.81 0.17 19.19 347.29 273.69 94.40 2737.2814 Nellore 1201.64 3.53 0.02 41.04 29.67 0.00 100.84 52.57 50.40 5.88 41.61 1527.2015 Nizamabad 1453.80 4.13 0.00 22.31 4.69 0.19 7.33 19.14 70.64 110.34 100.05 1792.6216 Prakasam 1329.65 1.34 0.01 19.39 8.22 0.07 29.12 24.06 116.18 22.06 7.48 1557.5817 Ranga Reddy 1300.52 3.98 4.63 250.32 0.00 0.01 2.34 13.95 40.00 15.28 7.10 1638.1318 Srikakulam 923.37 1.45 0.49 4.04 6.28 0.00 0.32 0.35 16.05 37.51 14.31 1004.1719 Visakhapatnam 640.47 3.49 0.02 8.52 12.98 0.13 4.14 25.45 0.00 4.28 77.97 777.4520 Vizianagaram 570.65 0.56 0.01 13.57 0.26 0.04 9.68 6.18 3.59 19.53 28.81 652.8821 Warangal 2625.66 5.08 0.12 37.95 1.43 19.62 0.24 21.30 0.15 76.63 1.02 2789.2122 West Godavari 2978.16 6.09 0.00 19.07 5.64 1.62 162.17 15.30 110.38 78.35 71.81 3448.59

37923.01 109.90 10.91 847.39 305.08 41.71 1619.10 1128.03 1846.62 1378.69 1445.91 46656.34

STATEMENT No. 2 (2)STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AGRICULTURAL MARKET COMMITTEES FOR THE

YEAR (RECEIPT HEADS)

TOTAL

Page 355

S. No NAME OF THE DISTRICT SALARIES

OTHER ADMN.

EXPENDITURE

LAW CHARG

ES

ACQUISITION

OF PROPERTIES

DEVELOPMEN

T WORKS

FURNITURE

& VEHIC

LES ETC.,

10% CONTRIBUTION TO CMF

REPAYMENT

OF LOANS

OTHERS ADVANCES

DEPOSITS OTHERS TOTAL



7784.50 4846.46 72.94 159.11 8329.19 156.76 3588.50 2037.08 3109.72 1476.52 760.39 4018.42 36339.57

STATEMENT No. 2 (3)STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AGRICULTURAL MARKET COMMITTEES FOR

THE YEAR 2009-10(PAYMENT HEADS)

TOTAL

Page 356

Rs. In lakhs

Sl. No. Name of the district No. Amount

1 Adilabad 277 370.412 Ananthapur 220 118.503 Chittoor 179 174.994 East Godavari 226 1024.035 Guntur 353 866.516 Kadapa 166 189.897 Karimnagar 285 126.838 Khammam 138 342.219 Krishna 173 442.3310 Kurnool 293 446.63

11 Mahaboobnagar 309 194.0512 Medak 167 368.5213 Nalgonda 154 216.2614 Nellore 129 332.5615 Nizamabad 139 324.8016 Prakasam 222 232.5117 Ranga Reddy 136 388.7518 Srikakulam 425 349.1819 Visakhapatnam 123 254.6220 Vizianagaram 154 55.6621 Warangal 229 232.2522 West Godavari 180 692.39

4677 7743.87

STATEMENT 3 (1)

CONSOLIDATED STATEMENT SHOWING DISTRICT-WISE AUDIT OBJECTIONS FOR THE YEAR 2009-10

TOTAL

Page 357

Rs. In lakhs

Sl. No. Name of the category No. Amount

1 Variation in Account figures 96 204.03

2 Excess Utilisation of Grants/Funds 126 399.99

3 Diversion of Grants/Funds 43 210.74

4 Non-utilisation of Grants before lapsable dates 17 15.13

5 Mis-Utilisation of Grants/Funds 5 4.58

6 Non-Utilisation of Earmarked funds 7 16.99

7 Non-Collection of dues 411 1382.03

8 Advances Pending Adjustment 205 1179.33

9 Violation of Rules 1398 1190.20

10Non-remittance of deductions/recoveries from work bills/pay bills/contingent bills etc. 390 192.04

11 Non-production of records 926 1638.42

12 Mis-appropriation/Fraud 43 42.37

13 Excess Payments 75 59.35

14 Wasteful Expenditure 17 8.84

15 Instances of Cases of unaccounted Cash/Stores 8 2.72

16 Pedency of Utilisation Certificates 3 1.69

17 Surcharge Certificates - Recovery Pending 1 1.20

18 Others 904 1192.10

19D.D / Cheques Received but not realized with in time 2 2.09

4677 7743.87

STATEMENT NO. 3 (2)STATEMENT SHOWING NO. OF OBJECTIONS (CATEGORY-WISE)

AND AMOUNT INVOLVED FOR THE YEAR 2009-10

TOTAL

Page 358

No. Amount No. Amount No. Amount

No. Amount No. Amount

No. Amount

No. Amount

1 Adilabad 0 0.00 14 15.80 3 12.29 0 0.00 1 2.39 0 0.00 4 1.81

2 Ananthapur 7 0.07 8 0.37 2 12.88 0 0.00 0 0.00 1 0.00 21 13.47

3 Chittoor 1 5.79 6 10.94 3 32.65 1 0.00 0 0.00 0 0.00 9 10.56

4 East Godavari 1 0.00 7 11.55 6 106.99 0 0.00 0 0.00 0 0.00 39 160.56

5 Guntur 4 0.00 11 42.93 2 1.77 0 0.00 0 0.00 0 0.00 22 73.68

6 Kadapa 5 20.60 7 20.59 0 0.00 5 0.00 0 0.00 0 0.00 5 37.31

7 Karimnagar 2 1.55 1 0.01 3 3.24 1 0.00 0 0.00 3 8.30 6 15.878 Khammam 2 25.84 2 14.48 0 0.00 0 0.00 0 0.00 0 0.00 6 13.71

9 Krishna 1 0.02 2 22.95 0 0.00 0 0.00 0 0.00 0 0.00 29 36.01

10 Kurnool 4 61.45 5 92.33 0 0.00 0 0.00 0 0.00 0 0.00 21 149.51

11 Mahaboobnagar 5 1.38 10 1.12 6 6.66 0 0.00 0 0.00 0 0.00 57 2.25

12 Medak 0 0.00 9 46.94 2 11.97 0 0.00 0 0.00 0 0.00 15 257.63

13 Nalgonda 15 0.00 10 0.00 2 10.60 0 0.00 0 0.00 0 0.00 29 104.80

14 Nellore 1 0.00 3 48.38 0 0.00 1 0.00 0 0.00 0 0.00 16 55.58

15 Nizamabad 9 48.16 18 19.01 8 1.62 9 15.13 2 1.10 3 8.69 4 30.68

16 Prakasam 8 0.00 3 30.98 1 0.04 0 0.00 0 0.00 0 0.00 10 19.4117 Ranga Reddy 16 21.16 1 0.00 4 8.33 0 0.00 1 0.19 0 0.00 18 22.93

18 Srikakulam 1 14.37 0 2.42 0 0.00 0 0.00 0 0.00 0 0.00 23 65.69

19 Visakhapatnam 3 0.01 2 0.00 0 0.00 0 0.00 0 0.00 0 0.00 15 55.71

20 Vizianagaram 0 0.00 0 0.00 1 1.70 0 0.00 0 0.00 0 0.00 15 14.17

21 Warangal 9 3.63 5 17.08 0 0.00 0 0.00 1 0.90 0 0.00 9 8.7222 West Godavari 2 0.00 2 2.11 0 0.00 0 0.00 0 0.00 0 0.00 38 231.97

96 204.03 126 399.99 43 210.74 17 15.13 5 4.58 7 16.99 411 1382.03

STATEMENT 3 (3) 1STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONS

Sl. No.Name of the

District

Variation in Account figures

Excess Utilisation of Grants/Funds

Diversion of Grants/ Funds

Non-utilisation of Grants before

lapsable date

Mis-utilisation of

Grants/

Non-utilisation of Earmarked

TOTAL

Non-collection of dues

1 2 3 4 5 6 7

Page 359

No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount

1 Adilabad 8 40.00 124 42.85 8 0.94 39 139.50 3 0.07 2 0.022 Ananthapur 10 0.55 72 23.58 17 15.45 45 43.40 2 0.57 8 8.073 Chittoor 3 13.65 64 35.86 4 2.24 40 49.03 9 9.74 3 0.154 East Godavari 26 537.06 68 32.85 2 1.89 40 155.02 0 0.00 0 0.005 Guntur 15 35.37 88 308.98 16 10.49 119 344.54 0 0.00 14 2.176 Kadapa 3 0.02 59 76.26 6 1.38 48 33.73 0 0.00 0 0.007 Karimnagar 2 0.17 155 22.54 27 4.77 62 61.59 2 0.07 4 0.118 Khammam 6 76.17 43 13.42 19 7.04 11 1.80 2 0.53 1 0.519 Krishna 25 150.10 35 10.85 23 14.96 19 18.76 0 0.00 3 0.0610 Kurnool 3 7.03 59 58.72 8 4.04 117 69.65 2 1.31 4 0.6311 Mahaboobnagar 5 9.35 57 41.78 39 12.38 71 78.51 10 1.22 3 0.4212 Medak 0 0.00 48 17.19 28 3.50 19 14.42 2 0.62 3 0.5113 Nalgonda 3 7.32 26 45.53 21 14.83 19 4.92 0 0.00 0 0.0014 Nellore 8 79.63 41 59.82 12 8.44 35 79.51 0 0.00 2 0.2015 Nizamabad 5 15.13 2 20.19 35 35.26 15 69.03 5 19.01 10 19.0216 Prakasam 10 5.56 87 12.56 12 6.60 33 142.69 0 0.00 2 0.0117 Ranga Reddy 2 2.00 23 5.84 13 3.48 14 38.64 1 9.00 4 0.1118 Srikakulam 13 62.83 175 14.53 0 0.00 66 1.46 0 0.00 2 25.4319 Visakhapatnam 9 3.04 50 184.84 9 9.52 21 0.34 3 0.16 2 0.0920 Vizianagaram 8 10.60 44 5.80 21 4.87 37 11.54 1 0.00 1 0.0521 Warangal 17 6.96 40 132.56 57 19.72 29 13.60 1 0.07 4 0.4522 West Godavari 24 116.79 38 23.65 13 10.24 27 266.74 0 0.00 3 1.34

205 1179.33 1398 1190.20 390 192.04 926 1638.42 43 42.37 75 59.35


Sl. No. Name of the District

Advances pending

adjustment

Violation of Rules

Non-remittance of deductions/

recoveries from work bills/ pay bills/ contingent

bills

Non-production of records

Mis-appropriations

Excess payments

11 12 13

TOTAL

8 9 10

Page 360

No. Amou No. Amount No. Amount No. Amou No. Amount No. Amount No. Amount

1 Adilabad 1 2.88 0 0.00 1 0.30 0 0.00 69 111.56 0 0.00 277 370.412 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.00 27 0.09 0 0.00 220 118.503 Chittoor 1 0.30 0 0.00 0 0.00 0 0.00 35 4.08 0 0.00 179 174.994 East Godavari 0 0.00 0 0.00 0 0.00 0 0.00 37 18.11 0 0.00 226 1024.035 Guntur 0 0.00 1 0.02 0 0.00 0 0.00 61 46.56 0 0.00 353 866.516 Kadapa 0 0.00 0 0.00 0 0.00 0 0.00 28 0.00 0 0.00 166 189.897 Karimnagar 0 0.00 0 0.00 0 0.00 0 0.00 17 8.61 0 0.00 285 126.838 Khammam 0 0.00 0 0.00 0 0.00 0 0.00 46 188.71 0 0.00 138 342.219 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 36 188.62 0 0.00 173 442.33

10 Kurnool 6 0.58 0 0.00 0 0.00 0 0.00 64 1.38 0 0.00 293 446.6311 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 46 38.98 0 0.00 309 194.0512 Medak 4 2.53 4 0.08 0 0.00 0 0.00 33 13.13 0 0.00 167 368.5213 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.00 29 28.26 0 0.00 154 216.2614 Nellore 0 0.00 0 0.00 0 0.00 0 0.00 10 1.00 0 0.00 129 332.5615 Nizamabad 2 2.39 2 0.61 2 1.39 1 1.20 5 15.09 2 2.09 139 324.8016 Prakasam 0 0.00 0 0.00 0 0.00 0 0.00 56 14.65 0 0.00 222 232.5017 Ranga Reddy 0 0.00 1 2.01 0 0.00 0 0.00 38 275.06 0 0.00 136 388.7518 Srikakulam 1 0.00 0 0.00 0 0.00 0 0.00 144 162.45 0 0.00 425 349.1819 Visakhapatnam 0 0.00 0 0.00 0 0.00 0 0.00 9 0.91 0 0.00 123 254.6220 Vizianagaram 2 0.16 0 0.00 0 0.00 0 0.00 24 6.77 0 0.00 154 55.6621 Warangal 0 0.00 0 0.00 0 0.00 0 0.00 57 28.56 0 0.00 229 232.2522 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 33 39.55 0 0.00 180 692.39

17 8.84 8 2.72 3 1.69 1 1.20 904 1192.13 2 2.09 4677 7743.87


Sl. No.



Instances of cases of unaccounted for

cash/ stores

Pendency of Utilisation certificates

Surcharge certificates recovery pending

Others

DD/Cheques received but not realised within time

TOTAL

TOTAL

14 15 16 17 18 19

Page 361

PART - V



PART – V

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF ZILLA

GRANDHALAYA SAMSTHA FOR

THE YEAR 2009‐10


PART – V

SECTION – I

S. No. DESCRIPTION PAGE No.

1 Introduction 362-368 2 A few selected Audit Paras – Category wise 369-390

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2009-10 OF ZGSS

PAGE No.

1. Status of Audit of ZGS (District wise)

391

2. 1. Receipts and Payments of ZGS (District wise)

392

2. Receipts and payments of ZGS with break up (Receipts Heads)

393

3. Receipts and payments of ZGS with break up (Payments Heads)

394

3. 1& 3. Consolidated Dist. and Category Wise Audit Objections

395

2. Consolidated Category Wise Audit Objections

396-398

CONTENTS

SECTION - I

362

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2009-10

PART – A

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 within 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.

1.3 The Director/ his Subordinate Officers are vested with the powers of disallowing every amount/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 therefor, 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.

363

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.

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 2009-10 by Zilla Grandhalaya Samsthas.

3.2 The Pie chart of proportional Percentages of Receipts and Payments of Zilla Grandhalaya Samsthas during the year 2009-10 is placed below.

PIE Chart of Receipts for the year 2009-10

47%

46%

2%

1%

0%

4% LIBRARY CESS47%

SALARY GRANT46%

PENSION GRANT1%

CONTINGENTGRANT 1%

SALE OF OLDNEWS PAPERS0%OTHER RECEIPTS4%

364

3.3 The bulk of receipts came from Library Cess (47%) followed by Salary Grant (46%).

3.4 Library Cess: This department has observed that Grampanchayats and Municipalities have to remit Library cess to a tune of Rs. and Rs--------------------- respectively to Zilla Grandhalaya Samsthas. But no action was taken by the Zilla Grandhalaya Samsthas to get the amounts remitted by the said institutions.

3.5 The bulk of payments are for Salaries (48%) followed by Pensions (26%). The percentage of expenditure on purchase of books and periodicals is only 4%. During the year 2008-09, the percentage of expenditure incurred on purchase of books and periodicals was 10%. During the year 2009-10, the percentage has dropped to 4%. The primary object of the Zilla Grandhalya Samsthas is to improve Library service in the respective districts and the decrease in expenditure on purchase of books and periodicals does not augur well for such service. Hence, steps may be taken to increase expenditure on the purposes for which the organization is created and to decrease other ancillary expenses.

PIE Chart of Payments for 2009-10

4%

48%26%

3%

1%

5%

5%

1%

7%

COST OF BOOKS &PDLS 4%

SALARIES 48%

PENSION 26%

EXPENDITUREFROMCONTINGENT 3%TA & LTC 1%

OTHERADMINISTRATIVEEXPENDITURE 5%COST OFBUILDINGS 5%

INVESTMENTS 1%

OTHERS 7%

365

3.6 The receipts and payments of previous 5 years in respect of ZGSs is as detailed below.

Rs. In Lakhs

# Year Receipts

% Chang

e 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 5 2009-10 11380.30 91.22 5119.51 168.63 6711.61 0.66

During the year 2009-10, there is a substantial increase in the Total Receipts,

which is mainly due to receipt of arrears of Library Cess from various local bodies in accordance with various instructions issued by Government. However, still there are arrears of Library Cess to be collected in various ZGSs. It is noticed that in certain cases that the Demand of Library Cess is not being arrived at and the amount collected only is being taken as Demand, which is not correct. The Demand of Library Cess may be assessed by preparing DCB Statement and steps may be taken to collect the balance amount as soon as possible.

3.7 The expenditure against grant is exceeding the grant received as detailed below.

Sl. No. Name of the Grant Amount of Grant received

in lakhs

Expenditure against the

Grant in lakhs

Excess Utilisation

1. Contingent grant 106.59 162.32 55.73

STATUS OF AUDIT 4.1 The current audit of 23 ZGSs for the year 2009-10 was conducted.

4.2 The Department has conducted the audit of the receipts amounting to Rs. 11380.30 lakhs

and payments of Rs. 6711.61 lakhs as detailed in the Statements No. 2 (2) to 2 (3) with ZGS-wise break up.

AUDIT OBJECTIONS 5.1 During the course of audit of these ZGSs for the year 2009-10, 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.

5.2 A total number of 392 audit objections involving an amount of Rs. 2885.52 lakhs were raised in the audit of the ZGSs during the year.

5.3 Consolidated Statements showing the various Audit Objections raised in the Audit Reports with amounts involved category-wise are annexed to the Report in Statements from 3 (1) and (3)

366

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 / Funds 3. Diversion of Grants / Funds 4. Non-Utilization of grants before lapsable date. 5. Mis-utilisation of Grants / Funds 6. Non-utilisation of Ear-marked funds. 7. Non-collection of dues 8. Advances Pending Adjustment 9. Violation of Rules

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

11. Non Production of records 12. Mis-appropriations 13. Excess payments 14. Wasteful Expenditure 15. Instances of cases of unaccounted cash / stores 16. Pendency of Utilisation Certificates 17. Surcharge Certificates –Recovery pending. 18. Others

19. D.D./Cheques /Bankers cheques etc., received but not realized within time. STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED (CATEGORY WISE ) AND AMOUNT

INVOLVED FOR THE YEAR 2009-10 Rupees in lakhs

Sl. No. Name of the Category No. of objections %

Amount Rs. in lakhs

%

1 PENDENCY OF UTILISATION CERTIFICATES 18 4.59 1045.53 36.23

2 NON-COLLECTION OF DUES 15 3.83 940.77 32.60

3 NON- PRODUCTION OF RECORDS 61 15.56 284.64 9.86

4 OTHERS 77 19.64 277.74 9.63

5 VIOLATION OF RULES 106 27.04 137.15 4.75

6 NON-UTILASATION OF GRANTS BEFORE THE LAPSAABLE DATE 9 2.30 96.92 3.36

7 EXCESS UTILISATION OF GRANTS/FUNDS 12 3.06 78.91 2.73

8 ADVANECES PENDING ADJUSTMENT 10 2.55 7.91 0.27

9 NON-REMITTANCE OF DEDUCTIONS/RECOVERIES 13 3.32 7.07 0.25

10 VARIATION IN ACCOUNT FIGURES 14 3.57 4.76 0.16

11 EXCESS PAYMENTS 47 11.99 3.84 0.13 12 WASTEFUL EXPENDITURE 3 0.77 0.27 0.01

13 DIVERSION OF GRANTS/FUNDS 4 1.02 0 0.00

14 INSTANCES OF CASES UNACCOUNTED FOR CASH/STORES 3 0.77 0.01 0.00

TOTAL: 392 100 2885.52 100 As seen from the above, majority of objections amount-wise are regarding

Pendency of Utilisation Certificates at 36.23% followed by Non-collection of dues at 32.60%.

367

Sl. No. District Sale of Old News Papers

Cost of books and

Pdls.

% of realisation

1 Adilabad 0.44 5.72 8 2 Ananthapur 1.05 9.01 12 3 Chittoor 0.82 10.35 8 4 East Godavari 1.47 16.65 9 5 Guntur 0.42 19.99 2 6 Kadapa 0.94 5.94 16 7 Karimnagar 1.10 0.00 0 8 Khammam 0.07 0.00 0 9 Krishna 3.59 18.63 19

10 Kurnool 0.29 29.92 1 11 Mahabubnagar 0.83 10.54 8 12 Medak 0.84 6.68 13 13 Nalgonda 0.00 9.61 0 14 Nellore 0.74 11.51 6 15 Nizamabad 1.44 6.43 22 16 Prakasam 0.06 6.31 1 17 Ranga Reddy 0.80 13.84 6 18 Srikakulam 1.28 7.99 16 19 Vishakapatnam 0.00 3.53 0 20 Vizianagaram 1.06 15.12 7 21 Warangal 0.59 13.71 4 22 West Godavari 2.77 16.34 17 23 Hyderabad 4.28 48.51 9

TOTAL 24.88 279.95 100

From the above table, it can be observed that the percentage of realisation on sale of old newspapers is vastly varying from one district to another district from 1% in Prakasam district to 22% in Nizamabad 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 the state.

368

Sl. No. District Library Cess TOTAL

% of Library cess to Total receipts

1 Adilabad 101.17 307.65 33 2 Ananthapur 135.90 437.70 31 3 Chittoor 283.74 541.49 52 4 East Godavari 466.65 921.83 51 5 Guntur 628.90 1056.79 60 6 Kadapa 93.44 264.77 35 7 Karimnagar 85.23 255.31 33 8 Khammam 68.66 273.84 25 9 Krishna 1108.50 1540.28 72

10 Kurnool 333.15 745.92 45 11 Mahabubnagar 43.84 241.14 18 12 Medak 99.56 250.49 40 13 Nalgonda 50.99 265.00 19 14 Nellore 110.98 333.38 33 15 Nizamabad 31.58 316.45 10 16 Prakasam 90.47 284.06 32 17 Ranga Reddy 271.36 439.28 62 18 Srikakulam 55.42 264.08 21 19 Vishakapatnam 554.45 798.10 69 20 Vizianagaram 109.19 266.66 41 21 Warangal 145.77 326.42 45 22 West Godavari 50.56 333.68 15 23 Hyderabad 200.00 915.98 22

TOTAL 5119.51 11380.30 45

As seen from the above table, the receipt on Library Cess to the Total receipts is vastly varying from one district to another district from 72% in Krishna District to 10% in Nizamabad district. The state average is 45 %. An in-depth study is required to know the reasons for such a large variation among the districts and the Director of Public Libraries is requested to standardize the practice to get uniform practices throughout the state.

369

AUDIT PARAS

1. EXCESS UTILISATION OF GRANTS (Code 2) During the course of audit of Zilla Grandhalaya Samsthas in the state for the 2009-10, 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. 78.91 Lakhs was pointed out in 12 paras.

1.1 PAYMENT TOWARDS LECTURES & CLASSES AND RENTS & TAXES IN EXCESS OF THE

BUDGET PROVISION – EXCESS AMOUNT OF RS.8,788/-

During the audit of ZGS, Nizamabad for the year 2009-2010, it was noticed that an amount of Rs.8,788/-was drawn in excess and incurred towards Lectures & Classes and Rents & Taxes against the budget provision. Sl. No Name of the head Budget

Provision Expenditure

incurred Excess

Amount 1 Lectures &

Classes 1,25,000/- 1,26,818/- 1,818/-

2 Rents & Taxes 20,000/- 26,970/- 6,970/- Total 8,788/-

(Para No.4 of the Audit Report of ZGS, Nizamabad for the year 2009-2010)

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 utilised for the purposes for which they are meant for, following the guidelines issued / norms prescribed and such utilisation should be within the date prescribed, otherwise, the grants will lapse to Government, unless the lapsable date of any particular grant is extended by Government or grant releasing authority. The grant sanctioning authorities were not approached for extending the utilisation 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. 96.92 Lakhs was pointed out in 9 paras.

370

2.1 VISAKHAPATNAM ZGS – GRANTS UNUTILISED – NEEDS ACTION FOR UTILISATION - Rs.1308845/- During the course of audit on the accounts of the Zilla Grandhalaya Samstha, Visakhapatnam for 2009-10, it is observed that the following grants have not been utilized and left unspent in the close of the year. Immediate action would needs to be taken to utilize the amounts for the purpose for which it is granted and utilization particulars to be intimated to audit.

Name of the grant O.B 2009-10 received grants

Total Utilization

Balances as on

31.3.10 CERU 87682 -- 87682 -- 87682 SCP 121798 35000 256798 3292 153506 TSP 322073 121800 443873 6585 437288 11th Fin. 87244 -- 87244 -- 87244 SCP grant on demand 52500 -- 52500 -- 52500 TSP grant on demand 63125 -- 63125 -- 63125 -e-Grandhalaya 27500 -- 27500 -- 27500 TSP grant for construction of buildings

-- 400000 400000 -- 400000

Total 1308845 (Para No.3 of the Audit Report of ZGS Visakhapatnam for the year 2009-10) 2.2 ADILABAD ZGS - NON-UTILISATION OF GRANTS - NEEDS IMMEDIATE UTILISATION

During the course of audit, it is noticed that the following grants were released to the Zilla Grandhalaya Samstha, Adilabad during the year 2009-10. The same has to be utilized for the purposes for which they were sanctioned but the same was not utilised and kept idle as closing balance. Immediate action would need to be taken to utilize the above grants for the purpose for which they are released and fact intimated to audit.

The Grant released during the year, Opening Balance, Amount Utilised and Closing balance at the end of the year is shown below.

Sl. No.

Name of the grant

Grant released

during the year Rs.

Opening Balance

Rs.

Total Rs.

Amount Utilized

Rs.

Closing Balance

Rs.

1 2 3 4 5 6 7 1 RRRLF Grant 300000 0 300000 0 300000 2 RSP grant 70200 100625 170925 0 170925 3 SCP grant 8750 61250 70000 0 70000 4 Infrastructure 0 270300 270300 0 270300 5 Building grant 0 1421000 1421000 0 1421000

6 Grandhalaya grant 0 877500 87500 0 877500

Total 379050 2730675 3109725 0 3109725

(Para No.6 of the Audit Report of ZGS Adilabad for the year 2009-10)

371

3. NON-COLLECTION OF DUES (Code 7)

On verification of revenue collections in Zilla Grandhalaya Samsthas, it was noticed that huge amounts are pending realisation.

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. 940.77 Lakhs was pointed out in 15 paras. A few of such cases are shown below.

3.1 KARIMNAGAR ZGS - SHOPPING COMPLEX RENT – DUE FROM TENANTS - NEEDS COLLECTION

During the Audit of ZGS, Karimnagar for the year 2009-10, on verification

of the shopping complex demand register, it was noticed that an amount of Rs. 29169/- was due from shops as shown below:

Sl. No.

SHOP No. DUE FROM No. OF MONTHS

TOTAL

1 4 Jan 2010@ 4344 pm

3 13032

2 5 Jan 2010@ 3769 pm

3 11307

3 14 Jan 2010@ 1610 pm 3 4830

TOTAL 29169 Immediate action would need to be taken to collect the amount.

(Para no.3 of Audit Report of ZGS, Karimnagar for the year 2009-2010)

3.2 BANDAR ZGS, KRISHNA DISTRICT - LIBRARY CESS DUE FROM

LOCAL BODIES AS ON 31-03-2010 - NEEDS EARLY REALISATION - Rs.8,09,05,671

As seen from the records furnished to Audit in Krishna Distrcit, the following amounts are said to be approximate Demand of Library Cess due from the Local bodies. Sl. No. Name of the Local Body Library Cess due 1. VMC, Vijayawada Rs.16,87,43,375 2. Other Municipalities in the Dist., Rs. 1,22,08,736 3. Grama Panchayats Rs. 1,08,04,469 ------------------------- TOTAL Rs.19,17,56,580 Cess adjusted to ZGS Funds Rs.11,08,50,909 ------------------------ Cess due as on 31-03-2010 Rs. 8,09,05,671 ------------------------- Early action need to be taken to collect the amount from the local bodies under intimation to audit without fail. (Para No. 8 of Audit Report of ZGS, Krishna for the year 2009-2010)

372

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 AP 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.

A consolidated Statement No. 3 (3) 1 of Advances pending adjustments is

appended to the report. It could be seen that an amount of Rs. 7.91 Lakhs was pointed out in 10 paras. A few of such cases are given below. 4.1 ZGS ADILABAD – ADVANCES – Rs. 4180555/-:

The details of advances account consisting of Personal advances like Festival, Educational, Cycle and other advances sanctioned, realized and the balance left as noticed during the audit of ZGS Adilabad, is shown below:

(Amount in Rs.) Sl. No.

Nature of advance

Opening Balance

Rs.

Advance paid during the

year

Total Balance to be recovered

1 Festival Advance

40735/- 66000/- 114725/-

2 Educational Advance

79800/- 55000/- 129000/-

3 Motor Cycle Advance

427793/- 240000/- 427793/-

Against total Advance shown above, the amount of advances due to be recovered/ Adjusted and balance left is shown below.

Sl. No.

Nature of advance

Advance to be

recovered

Advance recovered

Total Balance un-recovered

1 Festival Advance

114725/- 49500/- 65225/-

2 Educational Advance

129000/- 46500/- 82500/-

3 Motor Cycle Advance

4277993/- 97438/- 4180555/-

Immediate action would need to be taken to get the advances recovered/adjusted.

(Para no.6 of Audit Report of ZGS, Adilabad for the year 2009-2010)

373

4.2 ADVANCES – LONG PENDING ADVANCES NOT ADJUSTED - NEEDS ACTION FOR Rs. 20,250/-

During the audit of ZGS, Y.S.R. District for the year 2009-10, it was noticed that the following advances are still pending adjustment till the closure of Audit. The executive authority should take steps to get adjusted the said advances.

Sl. No. Name of the Employee Year Advance details Amount Rs.

1 P. Ghouse Mohiddin 1999-2000 Education Advance 50/- 2 C. Chinnapa Reddy --do -- Education Advance 50/- 3 M. Raj Gopal --do -- Education Advance 500/- 4 M. Chenchaiah --do -- Education Advance 100/- 5 N. Sivaiah 2002-03 Education Advance 1400/- 6 K.V. Subba Rao 2005-06 Festival Advance 850/- 7 G. Raj Kumar 2005-06 Festival Advance 1500/- 8 G.V. Nagaiah 2005-06 Festival Advance 900/- 9 K. Narayana Reddy 2005-06 Festival Advance 900/-

10 K.V. Subba Rao 2005-06 Festival Advance 900/- 11 K. Madar Khan 2005-06 Festival Advance 900/- 12 G. Jawaharial 2005-06 Festival Advance 300/- 13 V. Rama Pathi Raju 1992-93 T.A. Advance 480/- 14 V. Subramanyam Reddy --do-- T.A. Advance 2000/- 15 Z.G.S Members --do-- T.A. Advance 300/- 16 ZGS Members --do-- T.A. Advance 300/- 17 C. Narayana --do-- T.A. Advance 75/- 18 ZGS Members --do-- T.A. Advance 400/- 19 ZGS Members --do-- T.A. Advance 250/- 20 N. Baba Saheb --do-- T.A. Advance 75/- 21 N.V. Sesha Reddy --do-- T.A. Advance 2000/- 22 N. Baba Sahed --do-- T.A. Advance 120/- 23 P. Nagi reddy --do-- T.A. Advance 1000/- 24 A.R. Seshadri --do-- T.A. Advance 700/- 25 S. Gangaiah --do-- T.A. Advance 120/- 26 S.V. Surendrudu --do-- T.A. Advance 120/- 27 N. Veeraiah --do-- T.A. Advance 220/- 28 N. Pothulur --do-- T.A. Advance 80/- 29 A.Ganganna --do-- T.A. Advance 80/- 30 A.Subbarayudu --do-- T.A. Advance 80/- 31 J. Koteswara Rao 2003-04 T.A. Advance 1000/- 32 S. Khasim Saheb 1992-93 Festival Advance 150/- 33 N.V. chalama Reddy --do-- --do-- 300/- 34 N. Ravi Sankar --do-- --do-- 600/- 35 S.A.Basha --do-- --do-- 100/- 36 M. Rama Devi 2000-01 --do-- 150/- 37 K. Ganganna --do-- --do-- 200/- 38 K. Rama Chandrudu --do-- --do-- 1000/-

Total 20250/- (Para no.6 of Audit Report of ZGS, Y.S.R. district for the year 2009-2010)

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5. VIOLATION OF RULES (Code 9)

It was noticed in audit of the ZGSs that in some cases, the rules and Government

instructions for incurring the expenditure from the funds of the ZGSs were violated either due to negligence or ignorance. Certain times, the funds of ZGSs 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) 1 of Violation of rules is appended to the report. It could be seen that an amount of Rs. 137.15 Lakhs was pointed out in 106 paras. 5.1. ZGS ADILABAD - OLD NEWS PAPERS AND MAGAZINES NOT DISPOSED AND SALE PROCEEDS NOT REALISED

During the audit of ZGS, Adilabad for the year 2009-10, it was noticed that an amount of Rs. 5,71,327/-was drawn and paid towards the cost of purchase of newspapers and periodicals for the use of Branch libraries in the district during the year.

The period of retention of newspapers is one year i.e. 1st January to 31st

December, after that they should be disposed not later than 30th June of next year. The old newspapers should be disposed off in Public auction after due notification

and sale knocked down in favour of the highest bidder. The Market rate should be ascertained and starting bid and maximum bid should not be less than 10% of the Market rate. The ZGS should maintain a register in prescribed form to watch disposal of newspapers in time.

In spite of the above, the old newspapers were not disposed off and sale proceeds

not realized except a few Branch libraries wherein an amount of Rs. 43876/- only was realized and credited to the Library funds during the year.

Action would need to be taken to dispose off the old News Papers and periodicals

of other Libraries and to credit the sale proceeds to the funds of Zilla Grandhalaya Samstha, Adilabad.

(Para no.10 of Audit Report of ZGS, Adilabad district for the year 2009-2010)

5.2. ZGS ANANTHAPUR - DEPOSITS – MEMBERSHIP DEPOSITS - AMOUNT

NOT INVESTED – NEEDS ACTION. During the audit of ZGS, Anantapur for the year 2009-10, it was noticed that an amount of Rs. 12,74,244/- was collected towards Membership Deposits by the close of the year. But the said amount was not invested in the Nationalized Banks or any other institution as approved by the Government under Rule 17 of the A.P. Public Libraries Act 1961 to get the income by way of interest to the institution. Early action would need to be taken in the matter to invest the amounts.

(Para no. 12 of Audit Report of ZGS, Anantapur district for the year 2009-2010)

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5.3. ZGS ANANTHAPUR - PAYMENT OF PENSIONS TO THE PENSIONERS OF THE Z.G.S. ANANTAPUR WITHOUT LIFE CERTIFICATE – IRREGULAR

During the audit of ZGS, Ananthapur for the year 2009-10, it is noticed that

pension payments were made to the pensioners of Z.G.S. Ananthapur without obtaining Life Certificates which is irregular. During the last audit also it was taken to the notice of the Secretary, but no action is taken so far. The Secretary should take action to obtain the life certificates from the Pensioners in the month of November of every year to avoid mis-appropriation and produce to audit for verification.

(Para no. 13 of Audit Report of ZGS, Ananthapur district for the year 2009-2010)

5.4 . ZGS BANDAR - CONTINGENT GRANT - ADMISSIBILITY - NEEDS REIMBURSEMENT FOR Rs.1,71,708/-

During the audit of ZGS, Bandar, Krishna district for the year 2009-10, it was noticed that an aggregate amount of Rs.1,71,708/-was incurred towards remuneration to Watchman during the year. As per G.O.Ms.No:290, Education department, dated: 09-03-1979 and G.O.Ms.No:862, Education Department, dated:27-11-1980, contingent grant is admissible @ 10% of cess collected. But, the ZGS, Bandar, Krishna district incurred contingent expenditure over and above the entitlement. No amount was adjusted as advance to contingent grant to Z.G.S. Funds during the year. Therefore, the expenditure of Rs.1,71,708/-thus incurred towards remuneration to watchman during the year would need to be got reimbursed from state funds. The above payment of remuneration to watchman from the cess collected from local bodies is irregular. Action would need to be taken to rectify the defect. (Para no. 7 of Audit Report of ZGS, Bandar, Krishna district for the year 2009-2010)

5.5 ZGS KADAPA - CONTRIBUTORY PENSION SCHEME – NOT IMPLEMENTED – VIOLATION OF RULES

During the audit of ZGS, Y.S.R. district for the year 2009-10, it was noticed that

the following staff were appointed after 01-09-2004. According to G.O. Ms. No. 655 Fin (Pen I) Dept. dated: 22-09-2004, those who were appointed on or after 01-09-2004 shall come under the Contributory Pension Scheme and 10% from their pay and DA shall be recovered and remitted to the accounts concerned. Early action would need to be taken to open new accounts of the employees shown below and produce the credit particulars to audit.

(Para no. 8 of Audit Report of ZGS, Y.S.R district for the year 2009-2010)

Sl. No. Name of the employee and Designation Date of appointment 1 G. Nagarjuna settee, Office Subordinate 20-06-2005 2 J. Siva Sankar Reddy, Watchman 20-06-2005 3 P. Jayabharatha Reddy, Grade III 17-05-2006 4 S. Pratapudu, Record Assistant 07-12-2005 5 M. Sudhakar, Office subordinate 07-12-2005

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5.6 ZGS SRIKAKULAM - WAGES PAID TO OUTSOURCING STAFF- SERVICE TAX AND EDUCATION CESS ON SERVICE TAX NOT DEDUCTED AND REMITTED TO THE GOVERNMENT – VIOLATION OF RULES - Rs. 92,298/- During the audit of ZGS, Srikakulam for the year 2009-10, it was noticed that an amount of Rs.7,46,751/- was drawn and paid towards wages of outsourcing staff. But the 12% Service Tax and 3% Education cess on Service Tax was not recovered from the Contractor as shown below. Wages paid to outsourcing staff Rs. 7,46,751/- 12% service tax on wages Rs. 89,610/- 3% Education cess on Service Tax Rs. 2,688/- Total Rs. 92,298/- It is irregular and violation of the Government Rules. Early action shall be taken to recover the said amount from the contractor and remit the same to the head of account concerned and produce the challan to audit.

(Para no. 17 of Audit Report of ZGS, Srikakulam district for the year 2009-2010)

5.7 ZGS ELURU - EMPLOYEES PROVIDENT FUND ACCOUNT – INTEREST BEING EARNED ON THE EPF SAVING ACCOUNT AND FDRs – NOT BEING PAID TO THE EMPLOYEES – HIGHLY IRREGULAR

During the audit of ZGS, West Godavari, Eluru for the year 2009-10, it was noticed that the monthly Employees Provident Fund Subscription amounts deducted from the pay bills of Employees of ZGS, are being deposited in the Savings Account of ZGS in Nationalized bank and at times the amount is being invested in the FDRs. But, the interest being earned on the Savings Account and FDRs were not being paid to the individual employees who retired / expired / in-service. Instead it is being kept idle in Savings Account & FDRs which is highly irregular and the employees who retired from service are being paid only the Principal amount accumulated in their accounts. Action would need to be taken immediately to dispense with such irregular practice and to calculate and disburse the interest amount till date under intimation to audit. If such practice is not dispensed with immediately, the purpose of Provident Fund scheme is defeated. The earned interest on Saving Bank Account and FDRs are given below.

Interest earned on Subscriptions Rs. 50,704/- on 30-06-2010 Rs. 56,230/- on 31-12-2011

Interest earned on FDRs Rs. 10,315/- 06-12-2010 Rs. 1,05,119/- 23-01-2011

Rs. 22,619/- 31-01-2011 Total Interest earned: Rs. 244987/-

Action would need to be taken to get this defect rectified.

Para no. 12 of Audit Report of ZGS, Eluru, West Godavari district for the year 2009-10

377

5.8 ZGS KAKINADA - ESTABLISHMENT – SANCTION OF FAMILY PLANNING INCREMENT IN RSP’ 99 – VIOLATION OF RULES – NEEDS RECOVERY Rs. 6,950/- During the audit of ZGS, Kakinada, East Godavari district for the year 2009-10, it was noticed that the below mentioned employee was sanctioned Family planning increments in RSP’99 which is contrary to rules.

As per Govt.Memo.No.35784/481/A2/PC.I/2001, Dt.7-11-2001 of Finance & Planning Department., it was ordered that Family Planning increment/ Addl. Qualification increment in RSP’99 are not allowed.

Sl. No.

Name of the Employee Progs. No. & Dt. W.C.F & rate of I/c x

months

Total

01. Sri Akula Veera Venkata Satyanarayana, Librarian

Progs.Rc.No.39A/96 Dt. 19.02.1999 of Secretary, ZGS, Kakinada.

W.E.F. 1.11.1998 to 31.05.2010 139 Months x Rs.50/- Rs.6,950/-

Action would need to be taken to recover the amount from the person and the recovery particulars furnished to audit.

(Para no. 26 of Audit Report of ZGS, East Godavari district for the year 2009-2010)

6. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS (Code 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 the Government account within a prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non-adherance. The deductions normally made from work bills / pay bills that are to be remitted to Government account are Work Bills 1. Income Tax 2. Sales Tax 3. Seigniorage Fees Pay Bills 1. Profession Tax 2. G.P.F. (Government Employees) 3. G.I.S Premium. 4. Contribution to Pension Scheme 5. Sainik Welfare fund

A consolidated Statement No. 3 (3) 1 of Non RemittAnce of Recoveries is appended to the report. It could be seen that an amount of Rs. 7.07 Lakhs was pointed out in 13 paras. Some of them are as hereunder.

378

6.1. ZGS ANANTHAPUR - RECOVERIES MADE FROM THE SALARIES OF ZGS EMPLOYEES - NOT REMITTED – IRREGULAR FOR Rs. 1,09,935/-

During the audit of ZGS, Ananthapur for the year 2009-10, it was noticed that the recoveries towards G.I.S, Professional tax were made from the salaries of the employees as detailed below.

Sl.No. Nature of recovery Amount recovered

Amount remitted

Balance to be remitted

1 Professional Tax 92220 00 92220 2 GIS 23325 5610 17715 Total: 115545 5610 109935

A balance of Rs.109935/- is yet to be remitted, the challans and payees’

acknowledgements for the remittances made were also not produced to audit. (Para no. 8 of Audit Report of ZGS, Ananthapur for the year 2009-2010)

7. NON-PRODUCTION OF RECORDS (Code 11)

The ZGSs have to maintain effective financial management skills and

accountability practices. All these functions would be reflected on the record when they are 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 reasonably be judged.

Such an important function on the part of the Drawing and disbursing officers of

all the ZGSs in the maintenance and production of records to audit is 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 guidelines and instructions, the DDOs of AMCs 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 registers. The paras on non-production of records have been drawn from the individual ARs of the institution 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 produced whenever they are being demanded by the audit parties and other agencies during their local visits.

A consolidated Statement No. 3 (3) 1 of Non production of records is appended to the report. It could be seen that an amount of Rs. 284.64 Lakhs was pointed out in 61 paras.

379

7.1 ZGS WARANGAL - PURCHASE OF BOOKS - NON-PRODUCTION OF RECORDS FOR RS. 1,33,576/- During the audit of ZGS, Warangal for the year 2009-10, it was noticed that an amount of Rs. 1,33,576/- was paid through Cheque No. 700/22.3.10 under TSP & SCP grant by ZGS, Warangal towards the “EMESCO” books which were purchased through Director of Public Libraries, A.P., Hyderabad. But the bills, connected files and stock registers were not produced to audit. In the absence of the above records, correctness of the above expenditure cannot be certified in audit. Hence the connected records and bills would need to be produced to audit immediately. (Para no. 3 of Audit Report of ZGS, Warangal district for the year 2009-2010)

7.2. ZGS WARANGAL - AMOUNT PAID TO EXECUTIVE ENGINEER, PANCHAYAT RAJ DEPARTMENT - FOR CONSTRUCTION OF LIBRARY BUILDING – NON-PRODUCTION OF RECORDS - Rs. 18,60,000/- During the audit of ZGS, Warangal for the year 2009-10, it was noticed that a sum of Rs. 18,60,000/- was drawn and paid to the Executive Engineer, Panchayat Raj Department towards the construction of Library Buildings as detailed below and the said amount was kept under the disposal of Executive Engineer, Panchayat Raj Department. But the estimate, M-Books and connected records were not produced to audit.

Sl. No.

Name of the Work

Vr. No. & Date

Amount Cheque No. /Date

Fund/Grant

1. Construction of B.L Building at Maddur

1631/18.7.09

2,00,000/- 000299/18.7.09

RRRLF Grants

-do- 5702/22.3.10

1,60,000/- 000700/22.3.10

ZGS Funds

2. C/o. B.L Building at Cherial

5702/22.3.10

13,00,000/- 000700/22.3.10

ZGS Funds

3. C/o. B.L Building at Nekkonda

4649/25.1.10

2,00,000/- 000689/25.1.10

RRLF Grants

Total 18,60,000/-

Early action would need to be taken to get the connected files and M-Books from the Executive Engineer, Panchayat Raj Department and produced to audit. In the absence of the said records it will be difficult to ascertain the correctness of the expenditure incurred. (Para no. 4 of Audit Report of ZGS, Warangal for the year 2009-2010)

7.3 ZGS ANANTHAPUR - DEPOSITS – CONSOLIDATED MEMBERSHIP DEPOSIT REGISTER - NOT PRODUCED- IRREGULAR The Register of Deposits showing the membership at the beginning of the year, deposits received and refunded during the year and the balances outstanding at the close of the year was not produced to audit. Therefore, action shall be taken to update the membership deposit register and produce to audit for verification.

(Para no. 7of Audit Report of ZGS, Ananthapur for the year 2009-2010)

380

7.4. ZGS ANANTHAPUR - CONSTRUCTION OF BUILDING – AMOUNT DRAWN AND PAID –UTILISATION CERTIFICATE NOT PRODUCED FOR Rs. 409000/- During the audit of ZGS, Ananthapur for the year 2009-10, it was noticed that an amount of Rs.409000/-was drawn and paid in the voucher No.409 Dated 09.10.09 towards building construction to the Executive Engineer, Panchayat Raj, Penukonda. But the M. Books, Estimates and Utilisation Certificate were not produced for verification in audit. In the absence of the same, the correctness of the expenditure incurred was not certified in audit. Action would need to be taken for obtaining the same and produce for verification in audit.

(Para no. 9(2) of Audit Report of ZGS, Ananthapur for the year 2009-2010) 7.5. ZGS NELLORE - PAYMENT OF PENSION – ACQUITTANCE NOT PRODUCED: During the audit of ZGS, Nellore for the year 2009-10, it was noticed that a total amount of Rs. 26050/-was debited to Cash Book towards payment of pension to Sri K. Raghurami Reddy.

But the acquittance in token of receipt of the amount was not produced to audit. In the absence of the same, genuineness of the payment could not be certified in audit. As such the expenditure could not be admitted and is held under objection.

(Para no. 13 of Audit Report of ZGS, Nellore for the year 2009-2010)

7.6 ZGS NELLORE - PAYMENT OF PRIVATE VEHICLE HIRE CHARGES OF THE CHAIR MAN , ZGS – LOG BOOK, AGREEMENT, OTHER CONNECTED RECORDS - NOT PRODUCED FOR RS. 204000/-

During the audit of ZGS, Nellore for the year 2009-10, it was noticed that an amount of Rs. 204000/-was paid to Sri P Suresh Kumar, Managing Partner, M/s Rao Travels, Nellore towards private vehicle hire charges (Car No.A.P.03w 3295). The Log book, Agreement, Driving License of the driver, Car registration, Insurance certificate, Oil bills, Tax return submitted if any, etc., were not produced for verification. In the absence of the above records, correctness of the expenditure cannot be checked in audit. Action would need to be taken to produce the above records immediately.


7.7. ZGS NELLORE - WORK - CONSTRUCTION OF BUILDING TO BRANCH LIBRARY VENKATAGIRI – SECOND AND FINAL INSTALLMENT RELEASED TO THE E.E., P.R., GUDUR – PERMISSION NOT TAKEN FROM THE DIRECTOR OF PUBLIC LIBRARIES – UTILISATION CERTIFICATE NOT OBTAINED AND PRODUCED

During the audit of ZGS, Nellore for the year 2009-10, it was noticed that an aggregate amount of Rs. 5,00,000/-was drawn on voucher no. 600, dt: 11-12-09 and released to the Executive Engineer, P.R., Gudur for construction of building to Branch Library, Venkatagiri as second and final installment.

Administrative sanction was accorded for Rs. 10.00 lakhs. For release of Rs. 5.00 lakhs at first instance and for 2nd release another Rs. 5.00 lakhs ‘Status of work turned’ to be reported and get permission from the Director, vide instructions in Rc. No. 83-B1/08, dt: 6-12-08 of the Director of Public Libraries, A.P., Hyderabad.

381

Contrary to the above orders, status of work was not reported to the Director and without obtaining permission, the second and final installment of Rs. 5.00 lakhs was released. The Utilisation Certificate was not obtained and produced to audit. The Estimate and Measurement Book were also not obtained and produced. The above records would need to be obtained and produced to audit immediately. The loss, if any caused in this regard would need to be made good by the person or persons responsible.


8. EXCESS PAYMENTS (Code 13)

It was observed that in several cases excess payments were made due to incorrect calculation, excess totalling in bills, admission of inadmissible claims, and lack of knowledge of Government instructions.

A consolidated Statement No. 3 (3) 1 of Excess payments is appended to the

report. It could be seen that an amount of Rs. 3.84 Lakhs was pointed out in 47 paras.

8.1.ZGS GUNTUR - ESTABLISHMENT -- SMT. Y. RADHA GRADE I LIBRARIAN - SANCTION OF ADDITIONAL INCREMENT FOR HIGHER QUALIFICATION AFTER 1-7-1998 - NOT ADMISSIBLE IN REVISED SCALES OF PAY, 1998 – EXCESS PAYMENT - NEEDS RECOVERY FOR Rs.10,425/- During the audit of ZGS, Guntur district for the year 2009-10, on verification of the service register of Smt.Y. Radha, Grade I Librarian, Chilakaluripet, Guntur district, it was noticed that she was sanctioned additional increment of Rs.75 as personal pay w.e.f., 1-10-1998 for acquiring higher qualification i.e., B. Li. Sc. The benefit of additional increments for higher qualification was not extended in R.S.P., 98 and as per the instructions issued in Govt., Memo. No.35784/481/A2/PC-1/2001/Fin., Dated 3-3-2006, sanction of additional increment is not admissible. Hence, the additional increment sanctioned may be cancelled and the amount of Rs.10,425/- paid (Rs.75 x 139 months) upto April, 2010, may be recovered and credited to Z.G.S. funds..

(Para no. 13 of Audit Report of ZGS, Guntur district for the year 2009-2010)

8.2. ZGS MEDAK - PENSIONS – COMMUTATION OF PENSION – FULL PENSION PAID INSTEAD OF REDUCED PENSION – EXCESS PAYMENT – NEEDS RECOVERY – Rs.38030/-. During the audit of ZGS, Medak district for the year 2009-10, it was noticed that excess payment of pension was made to the following pensioners due to payment of full pension instead of reduced pension on account of commutation of 40% of pension. a. Smt. P. Bharathi Gr-II Librarian retired from service on superannuation on 30.04.08. Her service pension was fixed at Rs. 5,423/- and reduced pension at Rs. 3,254/- after commutation. She was paid commuted value of pension amounting to Rs. 2,72,253/- as per DAO Sangareddy letter No. 156/08-09 dated 27.05.08. Instead of paying reduced pension of Rs. 3,254/-, she was paid full pension for the period from March 2009 to Nov 2009 in spite of the objection raised in the Audit Report which resulted in excess payment as worked out below.

382

Sl. No.

Month Vr. No. & Dt. Pension DR Total Excess payment

(Full pension – reduced pension)

1 March 09 245/4.09 5423 2755 8178 2169/- 2. April 09 501/5-09 5423 2755 8178 2169/- 3. May 09 775/6-09 5423 2755 8178 2169/- 4 June 09 1058/7-09 5423 2755 8178 2169/- 5 July 09 1354/8-09 5423 3269 8692 2169/- 6 Aug 09 1670/9.09 5423 3269 8692 2169/ 7 Sept 09 1840/10-09 5423 3269 8692 2169/ 8 Oct0 09 2283/11-09 5423 3269 8692 2169/ 9 Nov 09 258712-09 5423 3269 8692 2169/

Total 19521/- b. Similarly, Sri Ambaji retired from service on superannuation on 30.11.08. His service pension was fixed at Rs. 4085/- and reduced pension at Rs. 2451/- after commutation. He was paid commuted value of pension amounting to Rs. 192354/- as per DAO Sangareddy letter No. 1039/08 dated 18.12.08. But he was paid full pension instead of reduced pension for the period from 12/08. The excess payment made from 3/09 to 11/09 is worked out and given below.

Sl. No.

Month Vr. No. & Dt. Pension DR Total Excess payment (Full

pension – reduced pension)

1 March 09 245/4.09 4085 2116 6201 1634 2. April 09 501/5-09 4085 2116 6201 1634 3. May 09 775/6-09 4085 2116 6201 1634 4 June 09 1058/7-09 4085 2116 6201 1634 5 July 09 1354/8-09 4085 2463 6548 1634 6 Aug 09 1670/9.09 4085 2463 6548 1634 7 Sept 09 1840/10-09 4085 2463 6548 1634 8 Oct0 09 2283/11-09 4085 2463 6548 1634 9 Nov 09 258712-09 4085 2463 6548 1634 Total 16340/-

(Total excess payment in two cases: Rs. 21,690/- + Rs. 16,340/- = Rs. 38,030/-) Immediate action would need to be taken for recovery of Rs. 38,030/- from the person or persons responsible under intimation to Audit.

(Para no. 13 of Audit Report of ZGS, Medak district for the year 2009-2010)

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8.3 ZGS KAKINADA, EAST GODAVARI DISTRICT - ESTABLISHMENT – IRREGULAR SANCTION OF ANNUAL INCREMENTS TO SRI K.UDAYA BHASKARA RAO, GRADE – III LIBRARIAN – EXCESS PAYMENT – NEEDS RECOVERY. Rs.13,376/- During the audit of ZGS Kakinada, East Godavari district for the year 2009-10, as verified from the Service Register of Sri K. Udayabhaskara Rao, Grade III Librarian, working at Branch Library, Jaggampeta, East Godavari district, his pay was fixed at Rs.5,470/- in the time Scale of Rs. 4825-10845 under FR 22 B in the cadre of Grade III Librarian W.E.F 27.07.2004 i.e., date of promotion in the above cadre and the pay was raised from Rs.5470/- to 5750/- w.e.f 1-07-2005, i.e., normal date of increment, instead of Rs. 5605/-.

In view of the above, sanction of one increment excess would need to be regularized as follows.

Date of Sanction Pay already sanctioned Pay to be sanctioned 1-07-2005 Rs.5,750/- Rs.5,605/-

1-07-2006 Rs.5,895/- Rs.5,750/- 1-07-2007 Rs.6,040/- Rs.5,895/- 1-07-2008 Rs.6,195/- Rs.6,040/- 1-07-2009 Rs.6,350/- Rs.6,195/-

In this regard, the excess payment would need to be recovered as follows:

Period Pay alread

y drawn

Pay to be

drawn

Diff. D.A H.R.A

I.R Total x Months

Total

7/05 to 12/05 5750 5605 145 16 15 0 176 x6 1056

1/06 to 6/06 5750 5605 145 20 15 0 180 x6 1080 7/06 to 12/06 5895 5750 145 27 15 0 187 x6 1122 1/07 to 6/07 5895 5750 145 36 15 0 196 x6 1176 7/07 to 12/7 6040 5895 145 44 15 0 204 x6 1224 1/08 to 6/08 6040 5895 145 61 15 0 221 x6 1326 7/08 to 9/08 6195 6040 155 66 15 0 236 x3 708 10/08 to12/08

6195 6040 155 66 15 23 259 x3 777

1/09 to 6/09 6195 6040 155 80 15 34 284 x6 1704 7/09 to 5/10 6350 6195 155 93 15 34 297 x9 2673 S.L., 12/2005 73 8 7 0 88 88 12/2006 73 13 7 0 93 93 12/2007 73 22 7 0 102 102 12/2008 77 33 7 0 117 117 12/2009 77 46 7 0 130 130 Total : 13376

(Para no. 27 of Audit Report of ZGS Kakinada, East Godavari district for the year 2009-

2010)

384

8.4 ZGS NELLORE - PENSION – PAYMENT OF FAMILY PENSION @ 50% OF THE LAST PAY DRAWN INSTEAD OF 30% AFTER A PERIOD OF 7 YEARS FROM THE DATE FOLLOWING THE DATE OF DEATH OF THE PENSIONER – IRREGULAR – CONSEQUENTIAL EXESS PAYMENT - NEEDS RECOVERY FOR RS. 48,080 As per Rule 50 of AP Revised Pension Rules, 1980, Enhanced Family Pension @ 50% of the Last Pay Drawn is payable upto 7 years from the date of death or upto attaining the age of 65 years of an employee. Thereafter, Normal Family Pension @ 30% of the Last Pay Drawn is to be paid. During the audit of ZGS, Nellore district for the year 2009-10, on verification of pension payment orders of the following individuals, it was noticed that family pension is being paid at the rate of 50% of last pay drawn beyond the dates eligible. Consequently an aggregate amount of Rs. 48,080was excess paid to the following individuals for the period from 3/09 to 10/09 as detailed against each. Action would need to be taken to recover the above amount from the following pensioners and recovery particulars may be intimated to audit.

Sl. No.

Name of the Pensioner

Family pension to be drawn

Family pension already drawn

Excess drawn

B.P. D.A I.R Total B.P. D.A I.R Total 1 P.

Rukminamma 2550 1321 561 4432 3088 2201 935 6224 1792

2 G. Ramanamma

2532 1312 557 4401 4221 2187 928 7336 2935

3 Ch. Sujatha 1925 - 424 2349 2977 - 655 3632 1283 Total 6010

No. of months 7/09 to 9/09 = 3 x 6010 = 18,030

(Para no. 19 of Audit Report of ZGS, Nellore district for the year 2009-2010) 8.5 ZGS ELURU, WEST GODAVARI DISTRICT - EARNED LEAVE – EXCESS

SANCTION OF ENCASHMENT OF EARNED LEAVE TO CERTAIN RETIRED BRANCH LIBRARIANS – EXCESS PAYMENT – NEEDS RECOVERY – Rs. 32,268

During the audit of ZGS, Eluru, West Godavari district for the year 2009-10, it was noticed that vide voucher No. 321/7-2010, an amount of Rs. 93,681 was drawn and paid to Sri T. Manikyala Rao, Retired Record Assistant, Br. Library, Kopalli towards encashment of Earned Leave for 189 days at his credit as on the date of his retirement vide Proceedings Rc. No.8-C/2010 dated:6.7.2010 of the Secretary, ZGS, Eluru and vide Voucher No. 321/7-2010, an amount of Rs. 1,55,310 was drawn and paid to Sri K. Somasundara Rao, Retd. Attender vide Rc.No.1-c/2010,dt.6.7.2010 of the Secretary, ZGS, Eluru for 293 days. But, they are eligible for encashment of EL for days as mentioned below. 1) Sri T.Manikyala Rao, Retd. Record Asst. 1)1.1.89 to 15 days EL not deducted (15 days) 2)24.5.81 to 28.5.81 EL not deducted (5 days) 3)13.10.81 to 25.10.81 EL not deducted (13 days) Total :- 33 days Amount sanctioned Rs. 93,681 / 189 days = Rs.496 per day Rs.496 x 33 days = Rs.16368excess paid.

385

2)Sri K.Somasundara Rao, Retd. Attender 1)1.4.78 to 15.4.78 - 15 days EL not deducted 2)1.1.80 to 15.1.80 – 15 days EL not deducted - Total 30 days Amount sanctioned Rs.155310 / 293 days = Rs.530 per day Rs.530 x 30 days = Rs.15900excess paid.

As shown above, the above individuals were paid an amount of Rs. 32,268 in excess of their eligibility. Hence, action would need to be taken to recover the said amount from the individuals and remit to ZGS funds.

(Para no. 15 of Audit Report of ZGS, Eluru, West Godavari district for the year 2009-2010)

8.6 ENHANCED FAMILY PENSION PAID INSTEAD OF NORMAL FAMILY PENSION TO SMT. MOHEENUDDIN BEE – EXCESS PAYMENT MADE NEEDS RECOVERY FOR Rs. 27,773 During the audit of ZGS, Adilabad for the year 2009-10, on verification of Pension Payment Order Register, it was noticed that Sri. Khan Mohammad, Attender expired on 18-4-2000 while in service, Enhanced Family Pension and Normal Family Pension was sanctioned to his wife - Smt. Moheenuddin Bee as detailed below.

1. Enhanced Family Pension for Rs. 2035with effect from 19-4-2000 to 18-4-2007 as per

Rule 50 (3)(a)(i). 2. Normal Family Pension for Rs. 1221w.e.f. 19-4-2007 till her re-marriage or death as per

Rule 50 (2). And subsequently revised in RPS, 2005 as detailed below

Enhanced Family Pension

Normal Family Pension

Pension Rs. 2035 Pension Rs. 1221 30.266% DR Rs. 616 30.266% DR Rs. 370 16% fitment Rs. 326 16% fitment Rs. 196

Total Rs. 2977 Up to 18-4-2007

Total Rs. 1787w.e.f. 19-4-2007 (Minimum

Pension Rs. 1925 as per GO (P) No. 248

fin & plg. Date) But on verification of the payments, it was noticed that, she has been paid the Enhanced family pension @ Rs. 2977instead of Normal Family Pension @ Rs. 1925w.e.f. 19-4-2007 to 30-6-2009, which resulted in excess payment of Rs. 27,773as detailed below.

Family Pension

paid

Family Pension eligible

Difference Period Total Excess

amount 2977 1925 1052 19-4-2007 to 30-4-

2007 Rs. 421

5/2007 to 6/2009 (33 months)

Rs. 27,352

Total Rs. 27,773 Immediate action would need to be taken to recover the same from the person or persons responsible and credited to the ZGS, Adilabad funds. (Para no.13 of Audit Report of ZGS, Adilabad district for the year 2009-2010)

386

8.7 ENHANCED FAMILY PENSION PAID INSTEAD OF NORMAL FAMILY PENSION TO SMT. G. LAXMI – EXCESS PAYMENT MADE - NEEDS RECOVERY FOR Rs. 36,395 During the audit of ZGS, Adilabad for the year 2009-10, on verification of Pension Payment Order Register, it was noticed that Sri. Bhasker Goud, Grade-II Librarian retired from service on 30-9-2001 and expired on 15-4-2002. The Enhanced Family Pension and Normal Family Pension were sanctioned to his wife Smt. G. Lakshmi as detailed below.

1. Enhanced Family Pension for Rs. 4650w.e.f. 1-10-2001 to 30-9-2008 as per Rule 50 (3)(a)(i)

2. Normal Family Pension for Rs. 2790w.e.f. 1-10-2008 till her remarriage or death as per Rule 50(2)

And subsequently revised in RPS, 2005 as detailed below.

Enhanced Family Pension

Normal Family Pension

Rs. 4650 Rs. 2790 30.266% DR Rs. 1408 30.266% DR Rs. 845 16% fitment Rs. 744 16% fitment Rs. 447

Total Rs.6802 Up to 30-9-2008

Total Rs.4082w.e.f. 1-10-2008

But on verification of the payments, it is noticed that, she has been paid the enhanced

family pension @ Rs. 6802instead of Normal Family Pension @ Rs. 4082w.e.f. 1-10-2008 to 30-6-2009, which resulted in excess payment of Rs. 36,395as detailed below.

Family Pension

paid

Family Pension eligible

Difference Period Total DR

6802 4082 2720 1-10-2008 to 31-12-2008 (3 months)

8160 3459 11619

1/2009 to 6/2009 (6 months)

16,320 8456 24776

Total 36,395 Immediate action would need to be taken to recover an amount of Rs. 36,395from the person or persons responsible and credited to the ZGS, Adilabad funds. (Para no.14 of Audit Report of ZGS, Adilabad district for the year 2009-2010)

387

9. WASTEFUL EXPENDITURE (Code 14)

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. As per Article 3 of A.P. Financial Code Vol.I, every DDO has 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 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 2009-10 were avoidable, extraordinary and lack of proper planning.

A consolidated Statement No. 3 (3) 1 of Wasteful Expenditure is appended to the

report. It could be seen that an amount of Rs. 0.27 Lakhs was pointed out in 3 paras.

9.1 ZGS ADILABAD - ADVERTISEMENT CHARGES - PAID TOWARDS THE TENDER NOTICES - PUBLISHED IN THE NEWSPAPERS BY THE DISTRICT EMPLOYMENT OFFICER, ADILABAD Rs. 7994. During the audit of ZGS, Adilabad for the year 2009-10, it was noticed that an amount of Rs.7994was drawn and paid to the following publishing agencies towards the cost of tender notices published to invite sealed tenders from the registered outsourcing agencies by the District Employment Officer, Adilabad for providing outsourcing services to the various government departments as detailed below.

Sl. No.

Vr. No. & Date Amount Name of the Agency Bill No. and date

1 2553/15-12-2009 3744

Jagapathi Publication Limited, Sakshi Telugu daily

913002535/3-10-2009

2 2554/15-12-2009 4250 Ushodaya Enterprises Private Limited, Eenadu telugu daily

952382/3-10-2009

Total 7994 There is no provision under the ZGS Act and Rules and no government orders

issued in this regard for the payment of advertisement charges from the funds of ZGS for publishing notices inviting tenders from the registered outsourcing agencies for providing outsourcing persons for various Government departments in the district in the newspapers. Since the District Employment Officer, Adilabad has given the publication for the said purpose the payment shall also be made by him only and not by the ZGS, Adilabad.

388

Immediate action would need to be taken to get the amount from the District Employment Officer, Adilabad and credited to the ZGS funds or recover from the person or persons who made the payment from the funds of ZGS.


10. PENDENCY OF UTILISATION 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 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 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.

The aforesaid Government orders are not being observed by the Executive Authorities resulting in heavy pendency of Utilization Certificates to be furnished to the Grant Releasing Authorities. Such cases are reported in the ARs concerned shown in the statement appended herewith.

A consolidated Statement No. 3 (3) 1 of Pendency of utilization certificates is

appended to the report. It could be seen that an amount of Rs. 1045.53 Lakhs was pointed out in 18 paras.

10.1 ZGS NIZAMABAD - NON-SUBMISSION OF UTILISATION CERTIFICATES TOWARDS

CONSTRUCTION OF BRANCH LIBRARY BUILDINGS : According to Article 211(a) of AP Financial Code Vol.I, it is the responsibility of the grant receiving authority to send the Utilisation Certificates in the proforma prescribed duly getting the counter signature by the auditing authority. During the audit of ZGS, Nizamabad district for the year 2009-10, on verification of the Grants Received Register, it was noticed that the following grants were released from the ZGS, 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 for verification and onward submission to the grant releasing authorities concerned.

389

S. No. Purpose of grant

Grant released through procgs. No. and adjustment

no.

U/C to be submitted but not submitted

No. of U.Cs Amount

1 2 3 4 5 1 Advance

Salary Grant 8-C2/2009, dt.24-04-2009, 09-11-209, 06-02-2010 & 19-03-2010

1 2,58,30,000

2 Outsourcing Grant

10-C2/2009, dt.03-05-2009, 10-06-2009, 06-10-2009 & 11-01-2010

1 5,28,000

Total 2 2,63,58,000

(Para no. 16 of Audit Report of ZGS, Nizamabad district for the year 2009-2010)

10.2 ZGS MEDAK - UTILISATION CERTIFICATE FOR CONSTRUCTION OF BUILDINGS –NOT PRODUCED - RS. 11.00 LAKHS According to Article 211(a) of AP Financial Code Vol.I, it is the responsibility of the grant receiving authority to send the Utilisation Certificates in the proforma prescribed duly getting the counter signature by the auditing authority. During the audit of ZGS, Medak district for the year 2009-10, it was noticed that an amount of Rs. 11.00 lakhs was paid to the EE PR Siddipet in two spells as detailed below: S.No. Vr.No. & Dt Amount

(lakhs) Lr. No. &

dt. Location of the

proposed building

Remarks

1. 1124/6.08.09 6.00 36-Rc/2008 dated 2.08.09

Additional room to BL Siidpet Ramachandrapur

RRLF Scheme

2. 2286/13.11.09 5.00 -do-13.11.09 Construction of Additional Hall at DCL Sangareddy

RRLF

But the Utilisation Certificates countersigned by the Audit Authority were not obtained and sent to RRRLF, Kolkatta within the stipulated time. Immediate action need to be taken to send the Utilisation Certificates duly certified by the Audit Authority.

(Para no. 9 of Audit Report of ZGS, Medak district for the year 2009-2010)

390

11. OTHERS

Other objections which do not come under the above categories are incorporated under this category.

A consolidated Statement No. 3 (3) 1 of Others is appended to the report. It could be seen that an amount of Rs. 277.74 Lakhs was pointed out in 77 paras.

11.1. ZGS NIZAMABAD - MISSING LIBRARY BOOKS - CERTAIN BRANCH LIBRARIES - COST NEEDS TO BE RECOVERED - Rs.98,069 During the Audit of ZGS, Nizamabad for the year 2009-10, it was noticed that the General Body of the ZGS in its resolution No:26, dated:08-08-2008, proposed to regulate the missing books as per G.O.Ms.No:1035, Education, dated:10-12-1979. Accordingly, proposals were sent to the Director of Public Libraries, Andhra Pradesh, Hyderabad in Lr. Rc.No:36/A3/2007, dated:25-04-08 for orders of recovery / write off of the missing Library books pertaining to 18 Librarians who worked in different libraries. After exempting the librarians from recovery of Library books, the balance amount of Rs.98,069 pertaining to 6190 missing library books as detailed below has to be recovered from the persons responsible.

Early action would need to be taken to recover the amount from the person or persons responsible.

(Para no.2 of Audit Report of ZGS, Nizamabad, for the year 2009-2010) 11.2 LIBRARY CESS - DEMAND NOT FIXED During the audit of ZGS, Adilabad for the year 2009-10, it was noticed that an amount of Rs.1,01,16,690was collected towards Library cess during the year 2009-10 and credited to the funds of ZGS, Adilabad as against the amount collected for Rs.19,36,581during the previous year. The collection of Library Cess during the year when compared to last year indicates that Library cess is increased. There are 866 Gram panchayats and 7 Municipalities in the District from which Library Cess is due to ZGS. The ZGS, Adilabad has not maintained Demand register showing the amount due from each institution under Library Cess. The amount remitted by the Sarpanches of Gram Panchayaths and Commissioners of Municipalities of the district alone is being taken as demand which is incorrect. Action would need to be taken to figure out the actual demand of Library cess from each institution and to produce Demand, Collection and Balance register to audit for verification.


PLACE : HYDERABAD DATED : 21-01-2013

DIRECTOR STATE AUDIT,

A.P., HYDERABAD

Missing books Exempted as per G.O Amount to be recovered

No. Cost of books No. Cost of books No. Cost of books 7282 117223-52 1092 19164 6190 98069


SECTION - II

Demand as on 31-3-2009

Audit completed as on 31-3-2010

Balance as on 31-3-2010

Current Current Current

1 Adlabad 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 Mahabubnagar 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 Vishakapatnam 1 1 0

20 Vizianagaram 1 1 0

21 Warangal 1 1 0

22 West Godavari 1 1 0

TOTAL 23 23 0

Sl.No. Name of the District

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF ZILLA GRANDHALAYA SAMSTHAS FOR TE YEAR 2009-10

STATEMENT-I

391

(Rs. In Lakhs)

1 Adlabad 307.65 203.22

2 Ananthapur 437.70 241.97

3 Chittoor 541.49 317.44

4 East Godavari 921.83 517.37

5 Guntur 1056.79 565.14

6 Kadapa 264.77 199.43

7 Karimnagar 255.31 196.04

8 Khammam 273.84 180.19

9 Krishna 1540.28 591.68

10 Kurnool 745.92 256.96

11 Mahabubnagar 241.14 207.25

12 Medak 250.49 165.24

13 Nalgonda 265.00 202.27

14 Nellore 333.38 239.83

15 Nizamabad 316.45 223.93

16 Prakasam 284.06 238.55

17 Ranga Reddy 439.28 177.24

18 Srikakulam 264.08 207.61

19 Vishakapatnam 798.10 285.74

20 Vizianagaram 266.66 168.39

21 Warangal 326.42 261.82

22 West Godavari 333.68 335.89

23 Hyderabad 915.98 728.41

TOTAL 11380.30 6711.61

STATEMENT NO -2-(1)

STATEMENT OF CONSOLIDTED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2009-10

Sl.No. Name of the District RECEIPTS PAYMENTS

392

1 Adlabad 101.17 125.40 36.96 0.00 0.44 0.30 0.00 0.00 13.04 1.93 0.00 0.00 0.00 28.41 0.00 0.00 0.00 0.00 0.00 0.00 307.652 Ananthapur 135.90 273.44 0.00 23.02 1.05 0.74 3.44 0.08 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 437.703 Chittoor 283.74 152.28 54.86 0.70 0.82 0.41 0.00 0.00 45.68 0.00 0.00 0.00 0.00 0.00 0.00 3.00 0.00 0.00 0.00 0.00 541.494 East Godavari 466.65 374.27 8.56 0.00 1.47 1.38 0.11 0.00 2.86 1.70 1.05 1.87 3.50 30.06 0.00 0.00 0.00 23.52 4.83 0.00 921.835 Guntur 628.90 401.93 0.00 0.00 0.42 1.57 2.21 0.12 1.81 0.00 0.26 0.25 3.00 0.00 0.00 0.00 0.00 16.32 0.00 0.00 1056.796 Kadapa 93.44 129.10 20.52 0.00 0.94 1.22 0.00 3.73 12.23 3.45 0.00 0.00 0.00 0.00 0.14 0.00 0.00 0.00 0.00 0.00 264.777 Karimnagar 85.23 89.90 36.64 8.76 1.10 0.90 0.00 0.00 17.88 1.06 0.00 0.00 0.00 13.84 0.00 0.00 0.00 0.00 0.00 0.00 255.318 Khammam 68.66 172.70 0.00 0.00 0.07 0.60 0.00 14.88 14.54 2.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 273.849 Krishna ###### 346.00 0.00 0.00 3.59 2.10 0.30 0.00 78.13 1.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1540.28

10 Kurnool 333.15 335.94 0.00 0.00 0.29 0.00 0.00 0.00 76.17 0.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 745.9211 Mahabubnagar 43.84 141.18 0.00 30.54 0.83 0.46 0.00 4.00 7.84 12.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 241.1412 Medak 99.56 147.59 0.00 0.00 0.84 0.57 0.00 0.00 0.00 1.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 250.4913 Nalgonda 50.99 188.46 0.00 0.00 0.00 0.61 0.00 0.00 23.94 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 265.0014 Nellore 110.98 212.14 0.00 0.00 0.74 1.09 0.06 0.43 7.13 0.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 333.3815 Nizamabad 31.58 198.30 60.00 0.00 1.44 0.50 0.03 17.82 5.93 0.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 316.4516 Prakasam 90.47 150.39 0.00 0.00 0.06 0.81 0.00 23.55 18.24 0.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 284.0617 Ranga Reddy 271.36 109.33 3.43 0.00 0.80 0.99 0.00 34.13 1.00 1.13 0.00 0.00 0.00 0.00 0.00 0.00 2.00 0.00 15.11 0.00 439.2818 Srikakulam 55.42 169.45 0.00 0.00 1.28 0.94 0.00 18.76 18.00 0.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 264.0819 Vishakapatnam554.45 185.44 0.00 17.04 0.00 1.41 0.00 8.13 2.08 29.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 798.1020 Vizianagaram 109.19 129.77 0.00 8.88 1.06 0.24 0.00 15.52 1.90 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 266.6621 Warangal 145.77 156.61 0.00 5.05 0.59 4.25 0.00 0.00 0.92 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12.96 326.4222 West Godavari 50.56 232.75 0.00 12.60 2.77 0.62 0.00 14.96 18.02 1.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 333.6823 Hyderabad 200.00 552.17 0.00 0.00 4.28 1.47 0.00 35.80 115.44 6.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 915.98

TOTAL ###### 4974.54 220.97 106.59 24.88 23.18 6.15 191.91 482.81 69.64 1.31 2.12 6.50 72.31 0.14 3.00 2.00 39.84 19.94 12.96 11380.30

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Statement 2(2) of consolidated receipts and expenditure of Zilla Grandhalaya Samsthas for the year 2009-10

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393

1 Adilabad 5.72 110.20 35.11 0.00 3.31 0.01 0.00 0.00 5.74 3.61 5.00 0.00 6.11 0.00 0.00 0.00 0.00 28.41 0.00 0.00 203.22

2 Ananthapur 9.01 148.66 58.06 10.88 2.89 0.01 0.13 0.00 4.35 0.99 5.49 1.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 241.97

3 Chittoor 10.35 146.95 56.26 0.00 1.18 0.00 0.00 0.00 10.73 0.58 33.01 0.00 58.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 317.44

4 East Godavari 16.65 181.13 209.99 0.00 2.12 0.01 0.00 0.00 8.07 1.79 0.00 0.00 16.06 5.00 0.00 0.00 23.43 29.76 23.06 0.30 517.37

5 Guntur 19.99 270.62 146.78 12.97 4.20 0.11 0.01 0.55 19.99 0 84.07 0.00 0.00 0.00 0.00 0.25 5.60 0.00 0.00 0.00 565.14

6 Kadapa 5.94 108.31 51.02 0.78 1.61 0.06 0.00 4.12 19.53 0.00 7.00 0.00 1.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 199.43

7 Karimnagar 0.00 89.90 36.64 8.76 0.60 0.00 0.00 0.00 16.24 9.75 9.56 0.00 9.56 0.00 0.00 0.00 0.00 15.03 0.00 0.00 196.04

8 Khammam 0.00 93.77 34.93 0.00 1.37 0.02 0.00 14.88 25.35 1.28 0.00 0.00 8.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 180.19

9 Krishna 18.63 209.94 174.72 12.22 0.00 0.40 0.00 4.50 58.43 1.64 100.45 0.00 10.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 591.68

10 Kurnool 29.92 40.40 25.68 3.08 1.00 0.00 0.00 0.00 0.00 0.10 0.00 0.00 156.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 256.96

11 Mahabubnagar 10.54 104.23 33.96 0.00 1.64 0.00 0.00 14.91 0.00 0.00 0.00 41.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 207.25

12 Medak 6.68 99.78 26.13 10.12 2.06 0.01 0.00 0.00 5.74 3.61 5.00 0.00 6.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 165.24

13 Nalgonda 9.61 114.14 67.16 0.53 0.57 0.07 0.00 0.00 0.00 3.34 6.69 0.00 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 202.27

14 Nellore 11.51 140.44 55.66 0.00 0.85 0.00 0.00 4.97 20.37 1.03 5.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 239.83

15 Nizamabad 0.05 115.14 60.00 5.00 0.88 0.01 0.00 17.82 5.29 0.85 0.49 0.00 18.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 223.93

16 Prakasam 6.31 144.76 46.73 0.00 0.55 0.00 0.00 24.35 12.61 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.20 0.00 0.00 238.55

17 Ranga Reddy 13.84 97.31 43.31 2.41 2.03 0.02 0.00 0.00 0.00 1.08 0.00 0.00 8.48 8.76 0.00 0.00 0.00 0.00 0.00 0.00 177.24

18 Srikakulam 7.99 80.34 10.83 3.78 2.44 0.01 0.00 0.13 14.89 0 20.54 0.00 66.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 207.61

19 Vishakapatnam 3.53 17.06 201.29 29.25 3.70 0.03 0.00 6.78 0.00 2.41 21.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 285.74

20 Vizianagaram 15.12 77.18 30.09 12.77 0.56 0.01 0.00 19.67 12.94 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 168.39

21 Warangal 13.71 151.41 0 3.62 0.00 0.02 22.25 0.00 20.38 7.26 0.00 0.00 43.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 261.82

22 West Godavari 16.34 240.53 0.00 13.59 2.71 0.13 0.00 14.96 8.69 0.63 29.40 0.00 8.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 335.89

23 Hyderabad 48.51 290.98 192.90 32.56 0.26 0.10 0.00 35.46 19.73 5.02 1.98 0.00 0.00 0.00 41.64 0.00 35.88 0.00 23.39 0.00 728.41

TOTAL 279.95 3073.18 1597.25 162.32 36.53 1.03 22.39 163.10 289.07 45.06 335.37 43.47 419.18 13.76 41.64 0.25 64.91 76.40 46.45 0.30 ######

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o.STATEMENTNO -2(3)

Statement 2(3) of consolidated receipts and expenditure of Zilla Grandhalaya Samstahs for the year 2009-10 (Payments Heads) RS In Lakhs

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394

1 VARIATION IN ACCOUNT FIGURES 14 3.57 4.76 0.16

2 EXCESS UTILISATION OF GRANTS/FUNDS 12 3.06 78.91 2.73

3 DIVERSION OF GRANTS/FUNDS 4 1.02 0.00 0.00

4 NON-UTILASATION OF GRANTS BEFORE THE LAPSAABLE DATE 9 2.30 96.92 3.36

5 NON-COLLECTION OF DUES 15 3.83 940.77 32.60

6 ADVANECES PENDING ADJUSTMENT 10 2.55 7.91 0.27

7 VIOLATION OF RULES 106 27.04 137.15 4.75

8 NON-REMITTANCE OF DEDUCTIONS RECOVERIES 13 3.32 7.07 0.25

9 NON- PRODUCTION OF RECORDS 61 15.56 284.64 9.86

10 EXCESS PAYMENTS 47 11.99 3.84 0.13

11 WASTEFUL EXPENDITURE 3 0.77 0.27 0.01

12 INSTANCES OF CASES UNACCOUNTED FOR CASH/STORES 3 0.77 0.01 0.00

13 PENDENCY OF UTILISATION CERTIFICATES 18 4.59 1045.53 36.23

14 OTHERS 77 19.64 277.74 9.63

15 CHEQUES RECEIVED BUT NOT REALIZED WITH IN TIME 0 0.00 0.00 0.00

TOTAL: 392 100 2885.52 100

STATEMENT SHOWING NUMBER OF OBJECTIONS RAISED (CATEGORY WISE ) AND AMOUNT INVOLVED FOR THE YEAR 2009-

10

Sl. No. Name of the Category

No. of objections %

Amount Rs. in lakhs %

395

No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No.1 Adilabad 2 0.00 0 0.00 0 0.00 1 31.10 0 0.00 1 4.78 52 Ananthpur 0 0.00 0 0.00 0 0.00 1 45.63 1 0.00 0 0.00 43 Chittoor 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 34 CGS, Hyderabad 1 2.06 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 75 East Godavari 0 0.00 1 0.00 0 0.00 0 0.00 0 0.00 1 2.63 36 Guntur 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 0 0.00 47 Kadapa 0 0.00 3 0.00 0 0.00 1 0.35 1 0.00 1 0.20 88 Karimnagar 1 0.00 0 0.00 0 0.00 0 0.00 1 0.29 0 0.00 29 Khammam 1 1.04 0 0.00 1 0.00 2 2.70 1 0.00 0 0.00 23

10 Krishna 0 0.00 0 0.00 0 0.00 0 0.00 4 810.19 0 0.00 411 Kurnool 1 0.00 1 30.82 2 0.00 1 0.00 1 0.00 1 0.20 612 Mahaboobnagar 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 313 Medak 2 0.00 1 0.06 0 0.00 1 4.05 1 0.00 0 0.00 514 Nalgonda 1 0.00 0 0.00 0 0.00 0 0.00 1 0.00 0 0.00 115 Nellore 1 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 416 Nizamabad 1 1.66 1 0.09 0 0.00 0 0.00 1 130.08 0 0.00 017 Prakasam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 518 Ranga Reddy 0 0.00 1 39.88 0 0.00 0 0.00 1 0.00 0 0.00 119 Srikakulam 0 0.00 0 0.00 1 0.00 1 0.00 0 0.00 1 0.00 920 Visakhapatnam 0 0.00 2 0.02 0 0.00 1 13.09 1 0.21 2 0.03 021 Vizianagaram 1 0.00 1 0.00 0 0.00 0 0.00 0 0.00 2 0.07 422 Warangal 1 0.00 1 8.04 0 0.00 0 0.00 0 0.00 0 0.00 223 West Godavari 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.00 3

TOTAL: 14 4.76 12 78.91 4 0.00 9 96.92 15 940.77 10 7.91 106

State ment 3(1)Statement showing the Dist and Category wise Audit Objections in Zilla Grandhalaya Samsths for the year 2009-10 Statement showing the Dist and Category wise Audit Objections in Zilla Grandhalaya Samsths for the year 2009-

Violation of Rules

Sl.No.

Name fo the District

Variation in Account Figures

Excess Utilisation of Grants /Funds

Diversion of Grants/Funds

Non-Utilisation of Grants Before the

Lapsable date

Non-Colletion of Dues

Advances Pending Adjustment

Page 396

1 Adilabad2 Ananthpur3 Chittoor4 CGS, Hyderabad5 East Godavari6 Guntur7 Kadapa8 Karimnagar9 Khammam

10 Krishna11 Kurnool12 Mahaboobnagar13 Medak14 Nalgonda15 Nellore16 Nizamabad17 Prakasam18 Ranga Reddy19 Srikakulam20 Visakhapatnam21 Vizianagaram22 Warangal23 West Godavari

TOTAL:

Sl.No.


Amount No. Amount No. Amount No. Amount No. Amoun No. Amount No. Amount0.08 0 0.00 0 0.00 0 0.00 2 0.39 0 0.00 0 0.000.00 1 1.10 3 4.09 0 0.00 1 0.01 0 0.00 0 0.003.74 0 0.00 1 0.00 0 0.00 1 0.00 0 0.00 0 0.001.72 6 1.58 1 0.00 0 0.00 6 0.36 0 0.00 0 0.000.00 1 0.00 4 8.40 0 0.00 4 0.24 0 0.00 0 0.000.00 0 0.00 5 79.13 0 0.00 4 0.18 0 0.00 0 0.000.00 1 3.67 6 10.26 0 0.00 1 0.11 0 0.00 0 0.000.00 0 0.00 2 7.93 0 0.00 0 0.00 0 0.00 0 0.00

50.24 0 0.00 0 0.24 0 0.00 3 0.00 0 0.00 0 0.0038.67 1 0.64 5 107.93 0 0.00 1 0.01 0 0.00 0 0.00

0.00 0 0.00 6 0.00 0 0.00 3 1.27 1 0.00 0 0.006.04 0 0.00 0 0.00 0 0.00 2 0.22 1.04 0.04 0 0.001.00 0 0.00 0 0.00 0 0.00 2 0.53 0 0.00 3 0.010.00 0 0.00 1 6.69 0 0.00 0 0.00 0 0.00 0 0.000.00 1 0.00 6 1.17 0 0.00 6 0.28 1 0.23 0 0.000.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.000.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.000.00 1 0.01 1 0.00 0 0.00 1 0.01 0 0.00 0 0.000.92 1 0.07 6 15.50 0 0.00 3 0.13 0 0.00 0 0.000.00 0 0.00 1 0.00 0 0.00 1 0.02 0 0.00 0 0.00

14.84 0 0.00 6 0.35 0 0.00 3 0.04 0 0.00 0 0.0019.90 0 0.00 2 0.05 0 0.00 0 0.00 0 0.00 0 0.00

0.00 0 0.00 5 42.90 0 0.00 3 0.04 0 0.00 0 0.00137.15 13 7.07 61 284.64 0 0.00 47 3.84 3.04 0.27 3 0.01

Statement showing the Dist and Category wise Audit Objections in Zilla Grandhalaya Samsths for the year 2009-10State ment 3(2)

Statement showing the Dist and Category wise Audit Objections in Zilla Grandhalaya Samsths for the year 2009-10

Violation of Rules

Non Remittence of Deductions Recoveries

Excess Payments


Instances of Cases Unaccounted for

Cash/Stores

Non Production of Records

MIS Appropriation

Page 397

1 Adilabad2 Ananthpur3 Chittoor4 CGS, Hyderabad5 East Godavari6 Guntur7 Kadapa8 Karimnagar9 Khammam

10 Krishna11 Kurnool12 Mahaboobnagar13 Medak14 Nalgonda15 Nellore16 Nizamabad17 Prakasam18 Ranga Reddy19 Srikakulam20 Visakhapatnam21 Vizianagaram22 Warangal23 West Godavari

TOTAL:

Sl.No.


No. Amount No. Amount No. Amount No. Amount No. Amount1 5.00 0 0.00 1 0.07 0 0.00 13 41.420 0.00 0 0.00 9 0.00 0 0.00 20 50.830 0.00 0 0.00 0 0.00 0 0.00 5 3.740 0.00 0 0.00 7 8.12 0 0.00 28 13.841 415.72 0 0.00 4 0.00 0 0.00 19 426.990 0.00 0 0.00 4 18.58 0 0.00 19 97.891 0.00 0 0.00 5 0.00 0 0.00 28 14.591 0.00 0 0.00 1 0.00 0 0.00 8 8.221 133.67 0 0.00 3 0.00 0 0.00 35 187.893 16.50 0 0.00 2 0.00 0 0.00 20 973.941 34.79 0 0.00 6 3.99 0 0.00 30 71.070 0.00 0 0.00 5 3.99 0 0.00 11 10.292 11.00 0 0.00 5 0.00 0 0.00 22 16.650 0.00 0 0.00 1 0.00 0 0.00 5 6.691 0.00 0 0.00 5 0.00 0 0.00 25 1.681 263.58 0 0.00 1 0.00 0 0.00 5 395.411 158.22 0 0.00 2 0.00 0 0.00 8 158.221 2.00 0 0.00 4 0.00 0 0.00 11 41.901 0.00 0 0.00 2 0.00 0 0.00 25 16.620 0.00 0 0.00 1 0.00 0 0.00 9 13.370 0.00 0 0.00 1 0.00 0 0.00 18 15.301 5.05 0 0.00 4 242.99 0 0.00 11 276.031 0.00 0 0.00 4 0.00 0 0.00 17 42.94

18 1045.53 0 0.00 77 277.74 0 0.00 392 2885.52

State ment 3(3)Statement showing the Dist and Category wise Audit Objections in Zilla Grandhalaya Samsths for the year 2009-10

Cheques Recived but not Realized

with in timeTOTALPendency of Utilisation

certicicatesSurcharge Certifacate

Recovery Pending Others

Page 398

© DIRECTOR OF STATE AUDIT

A.P. HYDERABAD 2013

PUBLISHED BY THE DIRECTOR OF STAE AUDIT, A.P., HYDERABAD AND PRINTED AT SAI RAM PRINTERS, SAIFABAD, HYDERABAD-500004

TELE PHONE – 040-232316, email: [email protected]

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