District Audit Report

DISTRICT AUDIT REPORT

ON THE RELIEF ACCOUNTS

VISAKHAPATNAM DISTRICT

2010 TO 2011

GOVERNMENT OF ANDHRA PRADESH

STATE AUDIT EPARTMENT

From To

Sri.K.VijayaMohanKumar, The Collector & District Magistrate,

District Audit Officer, Visakhapatnam State Audit (Relief Accounts), Visakhapatnam District. Visakhapatnam

Letter S.A. (R.A) No. 186, Dated: 01/04/2011

Sir,

Sub: - Audit – Audit of Relief Accounts preparation of District Audit

Report for the Audits taken up for the period April2010 to March 2011 . Grants drawn in Visakhapatnam District-Submitted – Reg.

*****

The District Audit Report on the accounts of Relief funds for amounts drawn under grants drawn by the District Collector, Executive Authorities of Visakhapatnam District for providing Relief on Account of Natural calamities for the Audits taken up for the period April2010 to March 2011 is sent herewith in the statements 1 to18 and Annexure of taking necessary action.

Yours faithfully,

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

DISTRICT AUDIT REPORT OF VISAKHAPATNAM DISTRICTON THE ACCOUNTS OF GRANTS RELEASED UNDER NATURAL CALAMITIES MH 2245 BY THE GOVERNMENT FOR THE AUDITS TAKEN UP FOR THE PERIOD APRIAL 2010 TOMARCH 2011

Name of the Auditor: Sri.K.VijayaMohanKumar,MBA,MA,MPhil.

District Audit Officer,

State Audit (Relief Accounts)

Visakhapatnam

INTRODUCTORY

The Government of Andhra Pradesh has created separate head of account Viz., MH2245 for calamity relief fund and grants are being released through various Government orders to several Government Departments/Local Bodies/Autonomous Institutions in the state for taking up relief operations necessitated due to occurrence of Natural Calamities. The relief operations range from repairs and restoration of public buildings, road, irrigation works, electrical installations, construction works of cyclone shelters, Transportation of people and live stock of low lying areas to safe places during flood season, providing of food and clothing to cyclone/flood affected people, payment of exgratia to the kin of people who lost their lives due to Natural Calamities, supply of seeds/fertilizers pesticides/ live stock on subsidy basis of farmers, providing drinking water to people living in drought areas, and payment of old age pensions etc. The relief operations mentioned above are not exhaustive and Government is spending huge sums every year for the purpose of relief on account of Natural Calamities

The District Audit Officers, Relief Accounts will conduct the audit of the grants released to different executing agencies in the concerned district and issues institution wise Audit Notes and U.C. duly counter signed besides marking such copies of Audit Notes and U.Cs to the District Collector Concerned. He also prepared or consolidated District wise Audit Report for each year incorporating there in all irregularities in a classified way duly enclosing copies of several U.Cs issued by him G.O. wise/ is sent to the District Collector and a copy will be submitted to the Commissioner for Relief and Ex-officio Secretary to Government, Revenue Relief Department.
A Consolidated Audit Report incorporating all the defects noticed during the course of the Audit of the accounts of grants released by the Government to different Department/Local Bodies/Autonomous Bodies in the State and amounts sanctioned by the District Collector to different authorities being prepared A statement of total grants released by Government G.O. wise during the year and total expenditure incurred by different executive agencies during the year amounts sanctioned by the District Collector and expenditure incurred by them is enclosed to this report besides the statement of U.Cs issued executive agency wise. The report intends to bring to the notice of Government in brief the irregularities committed by different executive agencies District wise in incurring the expenditu4re out of grants released to them.

The Executing Agency wise audit notes issued shall be read as part of the District Audit Report where as the District Audit Reports shall be read as past of the state audit report.

This report contains two parts, part one narrative portion of the different irregularities noticed during the course of audit of the accounts of grants released and amounts sanctioned by District Collector to different executive agencies and Part-II containing the statements of Institution wise particulars, Para number of the concerned intuitions audit notes where in the irregularity is pointed out and amount if any held under objection.

The different executive agencies to whom audit notes were issued by the District Audit Officer Relief Accounts have to send their replies to the Audit Officer, Relief Accounts concerned for settlement of the objections.

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Visakhapatnam District

VISAKHAPATNAM DISTRICT Audits taken up for the period April 1st2010 to 31 st March 2011

VARIATION IN ACCOUNT FIGURES:

NIL

EXCESS UTILIZATION OF FUNDS :- Rs 11000/-

It is observed during the course of audit, that an amount ofRs.11000/- was excess utilized by theExecutive Engineer,Panchayatraj ,Narsipatnam In this regard a suitable audit objection was raised in the Audit Report concerned as detailed in the Annexure vide statement No.02.

DIVERSION OF GRANTS: Rs-30,00,000/-

It is observed during the course of audit, that the Municipal Commissioner, Anakapalli was an amount ofRs.30,00,000/- diverted to the general funds . In this regard a suitable audit objection was raised in the Audit Report concerned as detailed in the Annexure vide statement No.03

NON UTILISATION OF ALLOTTED GRANTS/UNDER UTILIZATION/UNSPENT AMOUNT NOT REMITTED Rs- 10382280/-

It is observed during the course of audit on the accounts of grants released by Government and amounts sanctioned by the District Collector for providing relief on account of Natural Calamities during Audits taken up for the period April2009 to March 2010 and certain grant receiving authorities have not utilized the allocated amounts for various relief operations as instructed by The Government. The Assistant Director ,coffee plantation ,Paderu ,MPDO,Butchayypeta,EE I&CAD,Vsp and MPDO,P.Peta was not utilized an amount of Rs 10382280 /- so far. Calamity relief is of great importance and urgency and therefore, it is suggested, that necessary instructions may be issued to all grant receiving authorities to utilize the allocated amounts in full and to fulfill the objectives of allocations. All such cases are detailed in Statement –4 enclosed to this report.

MIS-UTILISATION OF GRANTS

NIL

NON-UTILISATION OF EARMARKED FUNDS:

NIL

NON COLLECTION OF DUES:

NIL

ADVANCE PENDING ADJUSTMENT

NIL

VIOLATION OF RULES- Rs 5350731/-

Someexecutive agencies are not followed the government rules while incurring the expenditure , the Municipal Commissioner, Anakapalli was expenditure incurred after given period . In these circumstances rules are violated. The proper action should take the concerned authorities. In this regard a suitable audit objection was raised in the Audit Report concerned as detailed in the Annexure vide statement No.09

NON REMITTANCE OF DEDUCTION / RECOVERIES FROM THE WORK BILLS / CONTENGENT BILLS etc:

NIL

11. NON-MAINTENANCE /NON-PRODUCTION OF RECORDS:RS -12604556/-

During the course on the audit of the amounts of the grants released by The Government, and amounts sanctioned by the District Collector for providing relief on account of Natural Calamities during the Audits taken up for the period April2009 to March 2010.It is noticed that certain executing authorities i.eThe Assistant Director ,coffee plantation ,Paderu and the Executive Engineer,Tribel welfare,ITDA,Paderuhave not maintained or if maintained did not produced the following records for audit verification. Action would need to be taken to produce the of records the at an earliest.

1 Cash Book

2 Vouchers for the payments made

3 Measurement Books

4 Estimates/Agreement files

5. Tender/Quotation files

6. Material at site account

7 Acutance not produced

8. Original sanctioning orders

9. Beneficiaries lists.

All such cases are detailed in statement -11 enclosed to this report.

12. MIS APPROPRIATIONS:

NIL

13. EXCESS PAYMETS: RS 33282/-

During the course of audit ,it is noticed that the Joint Director, Agriculture, Visakhapatnam was given input subsidy in excess of norms , for paddy crop 1800/- @ per Acre and it up to limits to 9000/- .In this regard a suitable audit objection was raised in the Audit Report concerned as detailed in the Annexure vide statement No.13

14. WESTEFUL EXPENDITURE:

NIL

INSTANCES OF CASES OF UN-ACCOUNTED CAHS/ STORES:

NIL

16 .PENDENCY OF UTILIZATION CERTIFICATES: Rs 105193413/-

The E.A named EE, I&CAD,Visakhapatnam,Mpdo ,payakarao peta ,EE,(PR),Visakhaptnam ,Municipal commissioner,Anakapalli , Assistant Director ,coffee plantation ,Paderu , Executive Engineer,Tribel welfare,ITDA,Paderu and Joint Director vAgriculture,Visakhapatnam has not produced Utilisation certificate ,involving an amount of RS/-105193413 Was raised in the Audit Reports for the Audits taken up for the period April2010 to March 2011 in respect of the Visakhapatnam Diststatement No.16 .

SURCHARGE CERTIFICATES – RECOVERY PENDING:

NIL

OTHERS: Rs- 868032/-

1) Interest accrued on deposit of grant credited in Banks not remitted to

The state funds.

2)Works were executed after the prescribed date.

3)Treasury reconciliation was not done..

4)Bank charges.

5)Other specific paras raised in the Audit Reports concerned are detailed in the statement No.18 of the Dist. Audit Report for the Audits taken up for the period April2010 to March 2011

PENDIENCY OF OBJECTIONS:Rs- 13753294/-

That there are 13 No. of Objections, involving an amount of Rs.13753294-00were raised in the Audit Reports for the Audits taken up for the period April2010 to March 2011 in respect of the Visakhapatnam Dist.

20ECEIPTS AND EXPENDITURE

The Receipts and Expenditure audited during the for the period April2009 to March 2010as detailed below:

Receipts: Rs.11,63,10,813Expenditure: Rs. 9,42,46,290

21. RESULTS OF AUDIT: The result of audit is satisfactory.

22. LIST OF EXCUTIVE AGENCIES:

The Names of the Executive Agencies audit during the Audits taken up for the period April2009 to March 2010 in respect of Visakhapatnam Dist was detailed in the Annexure No:1 of the Dist. Audit Report.

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

ANNEXURE – I

Audits taken up for the period April2010 to March 2011

VISAKHAPATNAM DISTRICT

S.No. / Item / No. of Paras / Amount
1. / Variation in account figures / 00 / 00-00
2. / Excess Utilisation of grants/funds / 01 / 11000-00
3. / Diversion of grants / 01 / 3000000-00
4 / Non Utilisation of grants / 04 / 10382280-00
5. / Mis-Utilisation of Grants / 00 / 00-00
6 / Non Utilisation of Earmarked funds / 00 / 00-00
7 / Non collection of dues / 00 / 00-00
8. / Advance pending adjustment / 00 / 00-00
9 / Violation of rules

Procedural lapses
Failure to discharge certain obligation under the rules
Purchases non observation of rules
Cassese of promotions /Appointments made contrary to rules

/ 01 / 5350731-00
10 / Non-Remittance of deductions /Recoveries / 00 / 00-00
11 / Non production of records / 02 / 12604556-00
12 / Miss-Appropriations / 00 / 00-00
13 / Excess payments / 01 / 33282-00
14 / Wasteful expenditure / 00 / 00-00
15 / Instances of cases of Un-accounted cash/ stores / 00 / 00-00
16 / Pendency of utilization of certificates / 11 / 105193413- 00
17 / Surcharge certificates- Recovery pending / 00 / 00-00
18 / Others / 868032-00
19 / Pendingaudit objections / 13 / 13753294-00

District Audit Officer,

State Audit (R A),Visakhapatnam

ANNEXURE – II

STATEMENT OF RECEIPT AND EXPENDITURE FOR THE YEAR OF 2010-11 .

S.NO / NANE OF THE EXECUTIVE AGENCY / GO.O DATE / Amount Released / Amount Drawn / Amount Utilized / Unspent Balance / Amount REMITTED / Chalan no and date / Amount short drawn/not drawn. / Unspent
Balance
tobe remitted. / Exess Expendature / Amount not drawn.
01 / EE(PRI)Narsipatnam. / 01/10-04-08 / 565000 / 565000 / 576000 / ------/ ------/ ------/ ----- / 11000
02 / EE(PRI)vsp / 01/10-04-08 / 5130920 / 5130920 / 4849118 / 281802 / ------/ ------/ 281802 / ------
03 / Mpdo.Butchayyapeta / 01/10-04-08 / 282776 / 282776 / 282776 / ------/ ------/ ------/ --- / ----
04 / Tahasildar, S.Rayavaram. / 48/9-05-08 / 136368 / 136368 / 136368 / --- / --- / ----- / ---- / ----
05 / JD,AH,VSP / 224/11-08-09 / 690000 / 690000 / 690000 / ----- / --- / ---- / ----- / ------
06 / M.C,Anakapalli / 439/30-09-05 / 7800000 / 7800000 / 4205344 / 3594656 / ------/ ------/ 3594656 / ------
07 / MPDO,P.R.Peta / 18232/16-4-03 / 56000 / 56000 / 56000
08 / M.C,Anakapalli / 1698/30-09-05 / 1200000 / 1200000 / 1200000
09 / A.D. CP,Paderu / 11190/5-6-07 / 11554480 / 11554480 / 11554480
10 / A.D. CP,Paderu / 01/10-04-08 / 9864934 / 9864934 / 9864934 / 9864934
11 / MDO,Anakapalli / 18232/17-7-03 / 7110000 / 7110000 / 7110000
12 / MDO,Chodavaram / 33110/23.10.3 / 939440 / 939440 / 939440
13 / DEE(I&CAD),KKP / 01/10-04-08 / 274300 / 274300 / 273822 / 478 / 478
14 / DEE(I&CAD),KKP / 248/28-8-09 / 229101 / 229101 / 229101
15 / AE.Chodavarm / 01/10-04-08 / 131000 / 131000 / 131000
16 / AE.Chodavarm / 11190/5-6-07 / 88000 / 88000 / 88000
17 / JD,AGRI,VSP / 47/9-5-08 / 14880000 / 14880000 / 14040140 / 839860 / 839860
18 / MDO,P.Peta / 18232/16-5-03 / 6184000 / 6184000 / 5724000 / 460000 / 460000
19 / JD,AGRI,VSP / 293/23-8-06 / 40516800 / 40516800 / 37416208 / 3100592 / 3100592
20 / JD,FIS,VSP / 454/23-8-09 / 85000 / 85000 / 78743 / 6257 / 6257
21 / JD,FIS,VSP / 01/9-01-09 / 88000 / 88000 / 88000
22 / JD,AGRI,VSP / 404/14-12-10 / 275625 / 275625 / 274365 / 1260 / 1260
23 / Distric t Collectore,VSP. / 32/21-4-08 / 11600 / 11600 / 11600
24 / Distric t Collectore,VSP. / 15/23-6-09 / 560209 / 560209 / 560209
25 / EE(RWS)vsp / 11190/5-6-07 / 14500 / 14500 / 14500
26 / EE,TW,Paderu / 248/28-8-09 / 1189760 / 1189760 / 1050076 / 139684 / 139684
27 / EE,PRI,Vsp / 248/28-8-09 / 6453000 / 6453000 / 2667000 / 3786000 / 3786000
GRAND TOTAL / 116310813 / 116310813 / 94246290 / 22075523 / 22075523 / 11000

Statement No-1

1. Variation in account figures:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-2

2. EXCESS UTILISATION OF GRANTS/FUNDS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Executive Engineer,Panchayatraj ,Narsipatnam / Excess expenditure incurred over the grant / 04 / 11000-00
Total / 01 / 11000-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-3

3 .DIVERTION OF GRANTS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Municipal commissioner,Anakapalli / Relief fundstransferred into general funds –irregular-needs recovery. / 04 / 3000000-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-4

4. NON UTILISATION OF GRANTS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Assistant Director ,coffee plantation ,Paderu / Unspent amount not remitted to state funds-irregular / 04 / 9640000-00
02 / MPDO,Butchayyapeta / 03 / 281802-00
03 / EE,I&CAD,VSP / 04 / 478-00
04 / MPDO,P.Peta / 04 / 460000-00
04 / 10382280-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-5

5. MIS-UTILISATION OF GRANTS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-6

6. NON-UTILISATION OF EARMARKED FUNDS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-7

7. NON COLLECTION OF DUES:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount

NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-8

8. ADVANCE PENDING ADJUSTMENT:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-9

9. VIOLATION OF RULES:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Commissioner
Anakapalli
Municipality / Grant incurred after expiry of given date-irregular. / 05 / 5350731-00
Total / 01 / 5350731-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Visakhapatnam District

Statement No-10

10. NON REMITTENCE OF DEDUCTIONS/ RECOVERIES FROM WORK BILLS/ CONTINGENT BILLS ETC:-

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-11

11. NON-PRODUCTION OF RECORDS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Assistant Director ,coffee plantation ,Paderu / Non production of records / 03 / 11554480-00
02 / Executive Engineer,Tribel welfare,ITDA,Paderu / Non production of records / 05 / 1050076-00
02 / 12604556-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-12

12. MIS APPROPRIATIONS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-13

13. EXCESSPAYMENTS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Assistant Director ,coffee plantation ,
Paderu / Amounts given to big formers in excess to input subsidy / 04 / 33282-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-14

14. WASTEFUL EXPENDITURE:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-15

15. INSTANCES OF CASES OF UN ACCOUNTED CASH/ STORES:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-16

16. PENDENCY OF UTILISATION OF CERTIFICATES:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / EE,I&CAD,Visakhapatnam / U.C not produced / 05 / 274300-00
02 / EE,I&CAD,Visakhapatnam / U.C not produced / 04 / 229101-00
03 / EE,(PR),Visakhapatnam / U.C not produced / 07 / 5130920-00
04 / EE,(PR),Visakhapatnam / U.C not produced / 05 / 6453000-00
05 / Municipalcommissioner,Anakapalli / U.C not produced / 06 / 9000000-00
06 / ExecutiveEngineer,Tribelwelfare,ITDA,Paderu / U.C not produced / 06 / 1189760-00
07 / Joint Director,Agriculture,Visakhapatnam / U.C not produced / 11 / 40628847-00
08 / Joint Director,Agriculture, Visakhapatnam / U.C not produced / 11 / 14909005-00
09 / Mpdo ,payakarao peta / U.C not produced / 07 / 6184000-00
10 / Assistant Director ,coffee plantation ,
Paderu / U.C not produced / 04 / 9640000-00
11 / Assistant Director ,coffee plantation ,
Paderu / U.C not produced / 11554480-00
105193413-
00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-17

17. SURCHARGE CERTIFICATES –RECOVERY PENDING:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
NIL

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam

Statement No-18

18. OTHERS:

S.No. / Name of the Executive Agency / Gist of the Objection / Para No. / Amount
01 / Commissioner Of
Anakapalli
Municipality / Interest-Not remitted to State funds / 05 / 449767-00
02 / Assistant Director ,coffee plantation ,Paderu / Interest-Not remitted to State funds / 04 / 224934-00
03 / Joint Director, Agriculture, Visakhapatnam / Interest-Not remitted to State funds / 3(a) / 157913-00
04 / Joint Director, Agriculture, Visakhapatnam / Deduction of Bank charges / 3(b) / 35418-00
05 / Joint Director, Agriculture, Visakhapatnam / Payment made other than the beneficiaries / 06
06 / Joint Director, Agriculture, Visakhapatnam / Beneficiaries lists not approved by the RDO / 07
07 / Joint Director, Agriculture, Visakhapatnam / Variation in beneficiaries vs payment made / 08
08 / Joint Director, Agriculture, Visakhapatnam / Payment made only thumb impressions / 09
09 / Joint Director, Agriculture, Visakhapatnam / Payment made one person in several times / 10
10 / Joint Director, Agriculture, Visakhapatnam / Cash book,cheque counter foils not produced / 11
11 / Joint Director, Agriculture, Visakhapatnam / Mixing of grants in single account / 11
12 / MRO,S.Rayavaram / Treasury Reconciliation not done / 04
13 / MDO,Anakapalli / Rice acquisition register,lack of signatures ,signatures not tallied with beneficiaries / 05
14 / MDO,P.Peta / Rice couponmissing / 05
Total / 16 / 868032-00

District Audit Officer,

State Audit (Relief Accounts),

Visakhapatnam