GOVERNMENT OF ANDHRA PRADESH

From To

The Audit Officer (R.As), The District Collector,

State Audit, Ranga Reddy District,

Directorate of State Audit, Hyderabad.

Andhra Pradesh,

Hyderabad.

Letter Roc. No. CDAR/RRD/V2/2010-11, Dated: 15- 04- 2011

Sir,

Sub: - Relief Accounts – Consolidated District Audit Report on

the Accounts of Grants released Under M. H. 2245

for the audited year 2010-2011 - Forwarded – Reg.

***

The Consolidated District Audit Report of the Ranga Reddy District on the Accounts of Relief Grants released under M H.2245 for the audited year 2010-2011 is forwarded herewith for necessary action.

Yours faithfully

AUDIT OFFICER (R.As)

STATE AUDIT,

DIRECTORATE OF STATE AUDIT

ANDHRA PRADESH;;HYDERABAD

Encls: 1) Annexures – I & II

Copy to the Commissioner for Disaster Management &

Ex-Officio Secretary to Government,

Revenue (D.M) Department, Andhra Pradesh Secretariat,

Hyderabad for information.

Copy to the Director of State Audit, Andhra Pradesh, Hyderabad.

CONSOLIDATED DISTRICT AUDIT REPORT ON THE GRANTS RELEASED BY THE GOVERNMENT / DISTRICT COLLECTOR OF RANGAREDDY DISTRICT UNDER M.H.2245 TOWARDS NATURAL CALAMITIES AUDIT CONDUCTED FOR THE AUDITED YEAR 2010-11.

*****

INTRODUCTION:

1. Government of Andhra Pradesh have created a separate Head of Account Viz., MH.2245 for calamity relief fund and grants which are being released through various Government Orders to several Government Departments / Local bodies / Autonomous Institutions in the Hyderabad Urban for taking up relief operations necessitated due to the occurrence of Natural Calamities. The relief operations range from repairs and restoration of public buildings, roads, irrigation works, electrical installations, construction works of cyclone shelters, transportation of people and live stock of low lying areas to safe places during flood seasons, 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, proving 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.

2. The relief operations were monitored at District level by the District Collector and the funds released by the Government were redistributed among various executing agencies. After getting administrative sanction from the District Collector, the District authorities should incur the expenditure toward relief operations as instructed.

3. According to the instructions issued by the Government through their Memo.No.42489/Relief/94-1, PR&RD (Relief) Department, dated 25-07-1994 read with Government Memo.No.60753/DMA-II/2001, dated 29-08-2006 of Commissioner for Disaster Management and Ex-Officio Secretary to Government, the Audit Officer (Relief Accounts), State Audit, Directorate of State Audit, Andhra Pradesh, Hyderabad conducted the Audit on the utilization of Calamity Relief Fund of Hyderabad Urban released by the Government.

4. The audits were completed executing agency wise and audit notes were issued to the concerned Executive Agencies with a request to rectify the defects. But, so far no replies were received duly rectifying the defects. Hence, the defects noticed during audit were incorporated in this District Audit Report. The executing agency wise audit notes issued may be read as part of this District Audit Report.

5. The Executing Agency wise audit notes issued shall be read as part of the concerned Institute Audit Report whereas the concerned Institute Audit Reports shall be read as part of the Consolidated District Audit Report.

6. This report contains narrative portion of the different irregularities noticed during the course of audit of the accounts of the amounts sanctioned by Government / District Collector under M.H.2245 to different executing agencies and the Statements of Institute-wise particulars, i.e., No. of paras in the concerned Institute and amount if any held under objection.

7. The different Executive Agencies to whom audit notes were issued by the Audit Officer (Relief Accounts), State Audit, Directorate of State Audit, Andhra Pradesh, Hyderabad have to send their replies to the Audit Officer (Relief Accounts), State Audit, Directorate of State Audit, Andhra Pradesh, Hyderabad for settlement of the objections.

1. Un-utilisation / Under utilization / unspent amounts not remitted to

State Funds: Rs. 31,32,825/-

During the course of audit, it is observed that the Joint Director of Agriculture, Rangareddy District have not remitted the unspent balances of grants of Rs. 31,32,825/- to State Funds. Un-utilisation or underutilization of grant released for specific purpose defeats the very purpose for which the grant has been released and non-remittance of unspent balance results in locking of funds.

It is, therefore, suggested that suitable instructions may be given to all the executing agencies to utilize the grants in full with in the stipulated time and also to remit the unspent balances to state funds so that these unspent balances can be sanctioned to the needy.

The detailed audit paras given hereunder for reference,

a) UNUTILISED /UNSPENT BALANCE AMOUNTS NOT REMITTED :-

UNSPENT BALANCE AMOUNT NOT REMITTED TO STATE FUNDS IRREGULAR – NEEDS EARLY ACTION Rs. 12,04,547/-

On verification of the records relating to the input subsidy released to the Mandal Agricultural Officers and Mandal Revenue Officers concerned jointly to distribute the amount to the victims whose crops where damaged due to heavy rains occurred during the months of March, April, and May, 2009 in Rangareddy District, it is noticed that an aggregate amount of Rs. 12,04,547/- was returned to the Joint Director of Agriculture, R.R. District by Mandal Agricultural Officers and Mandal Revenue Officers. But the J.D.A, R.R. District has not been remitted to the State Funds till the close of audit.

Sl. No / Mandal / GORt. No154 dt. 4.6.09 GORt. No.158 dt. 9.6.09 / GOMs. No.38 dt. 15.12.09 / GORt.No.293 dt. 2.11.09 / Total
1 / Keesara / - / 55,770 DD.No 135660/dt. 9.1.2011 / - / 55770
2 / Maheshwaram / 65,769
D.D.No. 449761/dt. 23.2.2010 / - / 56100
D.D.No / 121869
3 / Kandukur / 39062
D.D.No. 449762/ dt. 23.2.2010 / - / 83250
D.D.No / 122312
4 / Gandeed / - / 16,576
D.D.No. 971065/dt. 15.3.2011 / - / 16576
5 / Moinabad / - / 3600
D.D.No. 353651/dt. 29.11.2010 / - / 3600
6 / Marpally / - / - / 8,84,000
D.D.No. 328705/dt. 4.10.2010 / 884000
TOTAL / 104831 / 75946 / 1023350 / 12,04,547

Therefore, the unspent amounts of Rs. 12,04,127/- which were refunded by the Mandal Agricultural Officers and Mandal Revenue Officers shall be remitted to state funds immediately under intimation to the audit.

b) UNUTILISED /UNSPENT BALANCE AMOUNTS NOT REMITTED :-

UNSPENT BALANCE AMOUNTS - NOT REMITTED BY THE MANDAL

AGRICULTURAL OFFICERS CONCERNED - IRREGULAR – NEEDS

EARLY ACTION Rs. 19,28,278/-

On verification of the records relating to the input subsidy released to the Mandal Agricultural Officers and Mandal Revenue Officers concerned jointly to distribute the amount to the victims whose crops where damaged due to heavy rains occurred during the months of March, April, and May ,2009 in Rangareddy District. It is noticed that an aggregate amount of Rs. 19,28,278/- was at to be returned to the Joint Director of Agriculture, R.R. District by the following Mandal Agricultural and Mandal Revenue Officers concerned.

Sl. No / Mandal / GORt. No154 dt. 4.6.09 GORt. No.158 dt. 9.6.09 / GOMs. No.38 dt. 15.12.09 / GORt.No.293 dt. 2.11.09 / Total
2 / Maheshwaram / 102983 / 102983
3 / Kandukur / 22915 / 2300 / 49475 / 74690
6 / Peddemul / 194405 / 194405
8 / Bantwaram / 1556200 / 1556200
TOTAL / 22,915 / 2,99,688 / 16,05,675 / 19,28,278

Hence, early action would need to be taken to collect the balance amount available from the Mandals concerned and remit the same to the State Funds at an early date. The remittance particulars viz., Challan No. & Date etc., may be intimated to audit.

2. Non-Maintenance / Non-Production of Records: Rs.30,74,100/-

During the course of audit, it is noticed that certain executive authorities which are mentioned in the statement have not maintained and not produced the following records for audits. Action would need to be taken to cause for the production of records during next local audit. a) Enumeration Lists

b) Acquaintances

c) Bank statements

d) Cash book

.

The detailed audit paras given hereunder for reference,

a) NON PRODUCTION OF RECORDS:-

CONNECTED RECORDS PERTAINS TO THE CHEVELLA MANDAL NOT PRODUCED TO AUDIT – IRREGULAR – NEEDS EARLY ACTION-Rs. 30,74,100/-

During the course of audit, it is noticed that an amount Rs. 30,74,100/- was released to Chevella Mandal for distribution to the affected farmers vide various G.Os. But concerned authorities are not produced the connected records belongs to the said amount to audit for verification. Audit Party frequently insisted for production of records. But the authorities replied that concerned Mandal Agricultural Officer is absconding. They also replied that said Mandal Agricultural Officer has not handover the conncted record to his immediate authority.

Hence, the expenditure for Rs. 30,74,100/- pertains to the Chevella Mandal is held under objection.

b) NON MAINTAINACE OF RECORDS :-

SEPARATE CASH BOOK NOT MAINTAINED – IRREGULAR – NEEDS

EARLY ACTION CALLED FOR.

As per the instructions of the Government a separate Cash book has to be maintained for Relief Operations for the Cyclone Relief Grant released by the Government from time to time. But the Executive Authorities have not maintained and furnished to audit for verification.. Therefore, it is informed to the Executive Authorities concerned to maintain separate Cash books for relief operators at Mandal Level and produced to audit for verification positively.

3. Procedural Lapses : Rs.53,77,500/-

It is noticed during the course of audit that the Joint Director of Agriculture , R.R. Dist.hasnot followed the procedures while during the expenditure.

The detailed audit para given hereunder for reference,

AMOUNTS NOT DISTRIBUTED IN TIME – NEEDS EARLY ACTION FOR

Rs. 53,77,500/-

During the course of audit it is noticed that the following Mandal Agricultural Officers were not distributed the amounts to affected farmers in time and they have not produced the connected records for audit.

Sl. No / Name of the Mandal / Amount released under G.O.No & date / Released amount
1 / Mominpet / 38, dt. 15.12.2009 / 25,87,500
2 / Bantaram / 38, dt. 15.12.2009 / 27,90,000
TOTAL / 53,77,500

Hence, early action would need to be taken for distribution of the above amounts an early date and the connected records should be produced to audit for verification.

4. Violation of Rules: Nil

During the course of audit, it is noticed that the Joint Director of Agriculture, Rangareddy District have not followed the certain rules while distribution of input subsidy to farmers.

It is, therefore, suggested that suitable instructions may be given to the J.D,Agriculture, RR Dist.

The detailed audit para given hereunder for reference,

ENUMARATION LISTS , ACQUIENTANCES OF THE FARMERS AND BANK ACCOUNTS–CERTAIN DEFECTS- POINTED OUT – NEEDS RECTIFICATION.

On verification of the enumeration, acquaintances of the farmers and Bank Accounts furnished by the Mandal Agricultural Officers concerned, the following defects were noticed.

1. In some acquaintances signature of a single person was obtained against a group of Cheques instead of obtaining the signatures of actual farmers concerned.

2. It was observed in audit that the thumb impression of the farmers concerned were taken on the acquaintances but the name of the farmer whose thumb impression taken in the acquaintances was not noted on the thumb impression.

3. It is observed that in some of enumeration lists Survey No., Total extant of Acres etc., signature of the V.R.O were not obtained.

4. Page wise totals abstracts of Statements regarding the acquaintances, the no. of cheques issued to the farmers, undelivered if any etc., were also not furnished.

5. In some Mandals the Mandal Agricultural Officers were distributed equal amounts to the affected farmers without taking the consideration of damage of extent.

6. Some Mandal Agricultural Officers maintained the Single Bank Account and remitted all amounts released through different G.Os in the same account. Because of these practice it is very difficult to find out the balances and interest earned for different amounts released through different G.Os. Therefore, it is suggested that the Mandal Agricultural Officers should open the individual bank Accounts for different amounts released through different G.Os for crystal clear accounts.

The above mentioned defects should be avoided in future.

5. UTILISATION CERTIFICATES– NOT FURNISHED: Rs.15,59,51,250/-

The Utilisation Certificate in 5 copies as required has not been furnished by the Joint Director of Agriculture, Ranga Reddy District for 15,59,51,250/- (Fifteen Crores Fifty Nine Lakhs Fifty One thousand Two hundred and Fifty only) during the course of audit.

6. Receipts and Expenditure:

The Receipts and Expenditure for the year 2010-11, in the RangaReddy District are Rs. 16,15,12,250/- and Rs. 15,83,79,845/- and details were shown at Annexure - II enclosed to this report.

7. Results of Audit:

The result of audit is satisfactory.

8. Pending Objections:

7(Seven) number of objections involving a sum of Rs. 16,75,35,675/- are pending settlement during the year 2010-2011. Replies to the objections may be sent to the Audit Officer, (Relief Accounts), State Audit, Directorate of State Audit, Andhra Pradesh, Hyderabad. Details are shown at Annexure – I is enclosed to this report.

AUDIT OFFICER (R.As), STATE AUDIT,

DIRECTORATE OF STATE AUDIT.

ANNEXURE – I.

SATEMENT SHOWING THE CATEGORY WISE OBJECTIONS RAISED IN AUDIT REPORT OF GRANTS DRAWN UNDER 2245 RELIEF ON ACCOUNT OF NATURAL CALAMITIES AUDIT CONDUCTED IN THE AUDITED YEAR : 2010-2011

Sl. No. / Name of the Objections / No of
paras / Amount
Rs.
1 / 2 / 3 / 4
1 / Un- Utilization/under Utilization / 2 / 31,32,825
2 / Non-Maintenance/Non-production of records / 2 / 30,74,100
3 / Procedural lapses / 1 / 53,77,500
4 / Violation of rules / 1 / Nil
5 / Utilisation certificate- not furnished / 1 / 15,59,51,250
Total Rs. / 7 / 16,75,35,675

Audit Officer (Relief Accounts)

Directorate of State Audit

ANNEXURE – II

STEMENTS SHOWING THE RECEIPTS AND EXPENDITURE

FOR THE AUDITED YEAR : 2010-2011.

Sl. No. / Name of the Executive Agency / G.O.Ms/Rt.No.
& Date of Rev.(DM) Dept. / Receipts
In Rs / Expenditure
In Rs. / Balance
Rs.
1 / 2 / 3 / 4 / 5 / 6
1 / Commissioner, Tandur Municipality / 220/07-08-2009 of Rev.(DM.II) Dept / 2,00,000 / 14,00,000 / --
--DO-- / 230/17-08-2009 of Rev.(DM.II) Dept / 12,00,000
2 / Commissioner, Vikarabad,
Municipality / 220/07-08-2009 of Rev.(DM.II) Dept / 28,61,000 / 41,61,000 / --
--DO-- / 230/17-08-2009 of Rev.(DM.II) Dept / 13,00,000
3 / Joint Director of Agriculture,R.R.Dist. / 154/04-06-2009 of Rev.(DM.II) Dept / 27,74,000 / 46,33,254 / 1,27,746
--DO-- / 158/09-06-2009of Rev.(DM.II) Dept / 19,87,000
--DO-- / 293/02-11-2009 of Rev.(DM.II) Dept / 10,24,34,250 / 9,98,05,225 / 26,29,025
--DO-- / 38/15-12-2009 of Rev.(DM.II) Dept / 4,87,56,000 / 4,83,80,366 / 3,75,634
Total Rs. / 16,15,12,250 / 15,83,79,845 / 31,32,405

Audit Officer (Relief Accounts)