government of andhra pradesh state audit … english carr.pdf · for the year 2010-11 director of...

GOVERNMENT OF ANDHRA PRADESH STATE AUDIT DEPARTMENT

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF

PANCHAYAT RAJ INSTITUTIONS, MUNICIPAL CORPORATIONS, MUNICIPAL

COUNCILS, AGRICULTURAL MARKET COMMITTEES AND ZILLA GRANDHALAYA SAMSTHAS

FOR THE YEAR 2010-11

DIRECTOR OF STATE AUDIT A.P., HYDERABAD.

GOVERNMENT OF ANDHRA PRADESH

STATE AUDIT DEPARTMENT


PANCHAYAT RAJ INSTITUTIONS, MUNICIPAL CORPORATIONS, MINICIPAL

COUNCILS AGRICULTURAL MARKET COMMITTEES AND ZILLA GRANDHALAYA SAMSTHAS



The CONSOLIDATED AUDIT AND REVIEW REPORT for the year 2010-11 complied in FIVE parts.

Part – I PANCHAYAT RAJ INSTITUTIONS Part – I I: MUNICIPAL CORPORATIONS. Part – III: MUNICIPALITIES 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 category 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 category and connected account statements.

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

audit objections under each category and connected account statements.

.

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 Asst. Audit Office 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 Dist. Audit Officer. The Audit Reports of non-notified Gram Panchayats are approved by the Asst. 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 2010-11 were audited during the year 2011-12, in case of ULBs audit done upto 31-07-2013.

PREFACE

During the year under report the Director could audit some of the arrears also a part from current as shown below:

Sl. No. Name of the Institution Current

Audit Arrear Audit Total

1 Zilla Parishads 22 0 22

2 Mandal Parishads 1092 1 1093

3 Gram Panchayats 21314 152 21466

4 Municipal Corporations 9 5 14

5 Municipal Councils 102 13 115

6 Agricultural Market Committees 319 0 319

7 Zilla Grandhalaya Samstas 23 0 23

Total 22881 171 23052

AUDITED AMOUNTS:

The total Receipts and Payments of all the above institutions in the State for the year 2010-11 were Rs.10,71,380.41 Lakhs and Rs.10,20,458.61 Lakhs respectively. The details of Receipts and Payments Institution wise are as follows:

Rs.in Lakhs

# Name of the Institution Receipts Payments

1 Zilla Parishads 169844.16 148235.11

2 Mandal Parishads 77866.00 84192.21

3 Gram Panchayats 103275.10 108618.38

4 Municipal Corporations 568593.93 564858.15

5 Municipal Councils 85338.86 61916.25

6 Agricultural Market Committees 58302.22 43636.37

7 Zilla Grandhalaya Samstas 8160.14 9002.14

Total 1071380.41 1020458.61

OVER VIEW

AUDIT OBJECTIONS: Various irregularities noticed in the course of audit are being reported to Executive Authorities under 19 categories as detailed below for easier facilitation in taking follow up action:

1. Variation in Account Figures 2. Excess Utilisation of Grants 3. Diversion of Grants / Funds 4. Non-utilistion of Grants before lapsable date 5. Mis-utilisation of Grants / Funds 6. Non-utilistion of Earmarked Funds 7. Non-collection of dues 8. Advances Pending Adjustment 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. DDs/Cheques received, but not realised within time.

A total number of 400858 audit objections involving an amount of

Rs.1,06,713.70 Lakhs were raised during the year. The category wise and institution wise number of audit objections raised during the year are shown in Statements appended to the report. Institution wise Status of audit objections and amount involved thereon for the year 2010-11 are as follows:

Status of Audit Objection and Amount involved

Rs.in Lakhs # Name of the Institution No.of Objections Amount involved 1 Zilla Parishads 1486 23307.77 2 Mandal Parishads 17292 5455.62 3 Gram Panchayats 369717 16752.89 4 Municipal Corporations 1438 31530.78 5 Municipal Councils 5774 15800.45 6 Agricultural Market Committees 4741 8871.79 7 Zilla Grandhalaya Samstas 410 4994.40

Total 400858 106713.70 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.

S.No. PART NAME OF THE INSTITUTION PAGE No.

1 Part-I Panchayat Raj Institutions 1-118

2 Part-II Municipal Corporations 119-162

3 Part-III Municipal Councils 163-216

4 Part-IV Agricultural Market Committees 217-246

5 Part-V Zilla Grandhalaya Samasthas 247-272

CONTENTS

PART - I




PANCHAYAT RAJ INSTITUTIONS, FOR THE YEAR 2010-11


SECTION – I

Sl. No. DESCRIPTION PAGE

No. 1 Introduction 1-14 2 A few Selected Audit Paras – Category wise 15-74

SECTION - II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2010-11 OF

PANCHAYAT RAJ INSTITUTIONS

PAGE No.

1 Statement showing the Status of Audit (Institutions wise). 75

1(1) Status of Audit of Zilla Parishads (District wise). 76 1(2) Status of Audit of Mandal Parishads (District wise). 77 1(3) Status of Audit of Gram Panchayats (District wise). 78

2 Consolidated Statement of Receipts & Payments of Zilla Parishads for the year 2010-11 79

2(1) Consolidated Fund wise Statement of Receipts of Zilla Parishads for the year 2010-11 80

2(2) Consolidated Statement of Payments of n Zilla Parishads for the year 2010-11 81

3 Consolidated Statement of Receipts & Payments of Mandal Parishads for the year 2010-11 82

3(1) Consolidated Statement of Receipts of Mandal Parishads for the year 2010-11 83

3(2) Consolidated Statement of Payments of Mandal Parishads for the year 2010-11 84

4 Consolidated Statement of Receipts & Payments of Gram Panchayats for the year 2010-11 85

4(1) Consolidated Statement of Receipts of Gram Panchatats for the year 2010-11 86

4(2) Consolidated Statement of Payments of Gram Panchayats for the year 2010-11 87

5 Consolidated Statement of (Grants) Receipts & Payments of Zilla Parishads for the year 2010-11 88

5(1) Consolidated Statement of (Grants) Receipts of Zilla Parishads for the year 2010-11 89

5(2) Consolidated Statement of (Grants) Payments of Zilla Parishads for the year 2010-11 90

CONTENTS

6 Consolidated Statement of (Grants) Receipts & Payments of Mandal Parishads for the year 2010-11 91

6(1) Consolidated Statement of (Grants) Receipts of Mandal Parishads for the year 2010-11 92

6(2) Consolidated Statement of (Grants) Payments of Mandal Parishads for the year 2010-11 93

7 Consolidated Statement of (Grants) Receipts & Payments of Gram Panchayats for the year 2010-11 94

7(1) Consolidated Statement of (Grants) Receipts of Gram Panchayats for the year 2010-11 95

7(2) Consolidated Statement of (Grants) Payments of Gram Panchayats for the year 2010-11 96

8 Consolidated Audit Objections raised in PRIs., for the year 2010-11 (Institution wise) 97

9(Dist) Statement showing Number of Audit Objections raised in PRIs., and amount involved for the year 2010-11 (District wise)

98

9(Cat) Statement showing Number of Audit Objections raised in PRIs., and amount involved for the year 2010-11 (Category wise)

99

9(1) Variation in Account Figures 100 9(2) Excess Utilisation of Grants 101 9(3) Diversion of Grants / Funds 102 9(4) Non-Utilisation of Grants before lapsable date 103 9(5) Mis-Utilisation of Grants / Funds 104 9(6) Non-Utilisation of Earmarked Funds 105 9(7) Non-collection of dues 106 9(8) Advances pending adjustment 107 9(9) Violation of Rules 108

9(10) Non-remittance of Deductions / Recoveries from vouchers / Pay Bills / Contingent Bills 109

9(11) Non-production of Records 110 9(12) Mis-appropriations 111 9(13) Excess payments 112 9(14) Wasteful Expenditure 113 9(15) Instances of cases of unaccounted cash / stores 114 9(16) Pendency of Utilisation Certificates 115 9(17) Surcharge Certificates - Recovery pending 116 9(18) Others 117 9(19) D.D/Cheques received but not realized with in time 118

SECTION - I

1

ANNUAL CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF PANCHAYAT RAJ INSTITUTIONS FOR THE YEAR 2010-11

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 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 institution 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 periodically check up the funds with Treasury or Bank.

c. Whether expenditure incurred was provided for in the Budget of the Panchayat Raj Institution 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.

2

e. Whether the procedure prescribed by Government in incurring the expenditure / payments made is properly followed and accounted for with due classification in the books of accounts of the Panchayat Raj body.

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 Panchayat Raj Institutions reports.

STATUS OF AUDIT

3. The audit of the following Panchayat Raj Institutions for the year 2010-11 were

conducted during the year 2011-12.

Panchayat Raj Institutions No. of Years audited

i) Zilla Parishads : 22 ii) Mandal Parishads : 1092 iii) Gram Panchayats : 21314

-------------------- 22428

-------------------- 4.1. The audit Pendency position of Panchayat Raj Institutions for the year 2010-11

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 (2010-11)

4.2. The Receipts and Payments are inclusive of the various grants received from the

Central and State Governments during the year 2010-11, 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.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.3,50,985.26 lakhs and Rs.3,41,045.70 lakhs respectively. These figures are present in pie diagram (Chart – 1 and 2).

3

Chart – 1

The total Receipts of the Panchayat Raj Institutions during the year 2010-11 are as follows.

# Name of the PRI Amount in lakhs % 1 Zilla Parishads 169844.16 49 2 Mandal Parishads 77865.99 22 3 Gram Panchayats 103275.10 29 Total 350985.26 100

Chart - 2

PIE Chart of PRIs Receipts for 2010-11

169844.16, 49%

77865.99, 22%

103275.10, 29%

Zilla Parishad Mandal Parishads Gram Panchayats

PIE Chart of PRIs Payments for 2010-11

148235.11, 43%

84192.215, 25%

108618.38, 32% Zilla Parishad

Mandal Parishads Gram Panchayats

4

4.3. The total Payments of the Panchayat Raj Institutions during the year 2010-11 are as follows.

# Name of the PRI Amount in lakhs % 1 Zilla Parishads 148235.11 43 2 Mandal Parishads 84192.21 25 3 Gram Panchayats 108618.38 32

Total 341045.70 100

Chart – 3

Trend of Receipts in PRIs during 2009-10 & 2010-11

1503

01.9

0

8161

8.35

8326

7.84

1698

44.1

6

7786

6.00 1032

75.1

0

Zilla Parishad Mandal Parishads Gram Panchayats2009-10 2010-11

4.4. The pattern of Receipts of Panchayat Raj Institutions for the years 2009-10 and 2010-11 exhibited in the above bar chart (chart – 3)

Chart -4 Trend of Payments in PRIs during 2009-10 &

2010-11

1596

64.2

8

7418

2.28

9298

0.86

1482

35.1

1

8419

2.21

1086

18.3

8

Zilla Parishad Mandal Parishads Gram Panchayats2009-10 2010-11

5

4.5 . The pattern of Payments of Panchayat Raj Institutions for the years 2009-10 and 2010-11 exhibited in the above bar chart (chart – 4)

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 2010-11 are exhibited in the bar charts. (Chart – 5)

Chart – 5

TREND OF RECEIPTS & PAYMENTS IN ZPs FOR 2010-11

6127

2.51

1674

.63

444.

17

31.6

9 5316

.59 18

885.

28

1134

6.54

3227

6.01

2170

7.39

7099

.14

82.7

8 6028

.66

3678

.77

5610

5.78

863.

16

287.

38

46.6

0 1039

7.75

1657

3.10

1057

5.03 22

387.

78

1557

9.24

6198

.83

138.

11 6611

.45

2470

.90

Genera

l fund

Educat

ion fu

ndSocia

l Welf

are

Minor Irr

igatio

n

Roads&

Bridges

RWS/ARW

SGRY

Other P

rogram

mesDep

osits

Advances

Loans

BRGFPen

sion R

und

Receipts Payments

ZILLARISHADS (FUNDS) Rs. In lakhs

Name of the Fund of Zilla Parishads

Receipts

% of Receipts

Payments

% Payments

General Fund 58318.02 34.34 52115.45 35.16 Education Fund 1674.63 0.99 863.16 0.58 Social welfare 444.17 0.26 287.38 0.19 Minor irrigation 31.69 0.02 46.60 0.03 Roads & Bridges A/c 5316.59 3.13 10397.75 7.01 Rural Water Supply A/c 18885.28 11.12 16573.10 11.18 Deposits 21707.39 12.78 15579.24 10.51

6

SGRY 11346.54 6.68 10575.03 7.13 Advances 7099.14 4.18 6198.83 4.18 Loans 82.78 0.05 138.11 0.09 BRGF 6028.66 3.55 6611.45 4.46 Pension fund 3678.77 2.17 2470.90 1.67 Other programmes 35230.50 20.74 26378.11 17.79

Total 169844.16 100.00 148235.11 100.00 4.8 The Department has conducted the audit of Zilla Parishads Receipts amounting to

Rs. 169844.16 lakhs and Payments of Rs. 148235.11 lakhs as detailed in the Statements No. 2 to 2(1) & 2(2).

MANDAL PARISHADS (FUNDS)

4.9 The Receipts and Payments particulars of various accounts under Mandal Parishad

funds are appended in the Statements enclosed.

Name of the Statement of Mandal Parishads 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) 4.10 The Fund Wise Receipts & Payments of Mandal Parishads in the State for the year

2010-11 are exhibited in the bar charts. (Chart – 6)

Chart – 6

TREND OF RECEIPTS AND PAYMENTS IN MPs FOR 2010-11

2359

8.08

4165

.65

5732

.76

0.00 72

5.36

187.

84

2226

9.84

549.

38

1188

.71

322.

08

17.3

7

1006

5.96

9042

.96

2606

3.54

4155

.21

5680

.94

28.4

6

1036

.14

281.

48

2632

2.04

212.

46

478.

19

429.

57

3.02

9971

.06

9530

.11

Genera

l fund

Educa

tion f

und

Social W

elfare

Fund

Minor Ir

rigati

on

Roads &

Bridge

s

Rural W

ater S

upply

Other P

rogram

mesSGRY

Deposit

sAdv

ances

loans

Pensio

n Fun

dBRGF

Receipts Payments

7

MANDAL PARISHADS (FUNDS) Rs.in lakhs

Name of the Fund of

Mandal Parishads

Receipts % of

Receipts

Payments %

Payments

General Fund 23598.08 30.31 26063.54 30.96

Education Fund 4165.65 5.35 4155.21 4.94

Social Welfare Account 5732.76 7.36 5680.94 6.75

Minor Irrigation 0.00 0.00 28.46 0.03

Roads and Bridges 725.36 0.93 1036.14 1.23

Rural Water Supply 187.84 0.24 281.48 .33

Other Programmes 22269.84 28.60 26322.04 31.26

S G R Y 549.38 0.71 212.46 0.25

Deposits 1188.71 1.53 478.19 0.57

Advances 322.08 0.41 429.57 0.51

Loans 17.37 0.02 3.02 0.00

Pension fund 10065.96 12.93 9971.06 11.84

BRGF 9042.96 11.61 9530.11 11.32

Total: 77866.00 100.00 84192.21 100.00

4.11 The Department has conducted the audit of Mandal Parishads Receipts amounting

to Rs.77,866.00 lakhs and Payments of Rs.84192.21 lakhs as detailed in the Statements No. 3 to 3(1) & 3(2).

GRAM PANCHAYATS (FUNDS)

4.12 The Receipts and Payments particulars of various accounts under Gram

Panchayats funds are appended in the Statements enclosed.

Name of the Statement of Gram Panchayats 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)

4.13 The Fund Wise Receipts & Payments of Gram Panchayats in the State for the year

2010-11 are exhibited in the bar charts. (Chart –7)

8

CHART – 7 (Receipts)

PIE CHART OF RECEIPTS IN GPs FOR 2010-11

Salary Grants , 554.27

Deposits , 1209.48

Tax Resources , 15667.89

Other Receipts, 21635.83

BRGF, 15071.60

Non-Tax Resources 16674.16

Government Grants

32027.97

Advance 433.89

CHART – 7 (Payments)

PIE CHART OF PAYMENTS IN GPs FOR 2010-11

Others, 477.21

Deposits, 634.83

Salaries, 7575.06

Maintenance Expenditure ,

23235.39

BRGF, 16587.23

Non-Tax Resources 16674.16

Government Grants

32027.97

Advance 433.89

9

GRAM PANCHAYATS (FUNDS)

Rs. In lakhs

Name of the

Fund

Receipts % of

Receipts

Name of the

Fund

Payments %

Payments

Tax resources 15667.89 15.17 Salaries 7575.06 6.97

Non-tax

resources 16674.16 16.15

Other

administrative

expn.

13488.26 12.42

Other receipts 21635.83 20.95 Maintenance

Expn. 23235.39 21.39

Government

grants 32027.97 31.01 Works 45275.01 41.68

Advances 433.89 0.42 Advances 1345.39 1.24

Deposits 1209.48 1.17 Deposits 634.83 0.58

Salary grants 554.27 0.54 Others 477.21 0.44

BRGF 15071.60 14.59 BRGF 16587.23 15.27

Total 103275.10 100.00 Total 108618.38 100.00

4.14 The Department has conducted the audit of Gram Panchayats Receipts and

Payments amounting to Rs.103275.10 Lakhs and Rs. 108618.38 Lakhs respectively as shown in the Statement No. 4..

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 2010-11.

Grants ZP MP GP Total

Receipts 76495.59 67013.31 45538.79 189047.69 Payments 73920.69 64900.64 46121.17 184942.50

Zilla Parishads (Grants) Statement No Receipts and Payments (District wise) Statement No. 5 Receipts of grants (District wise & Head wise) Statement No. 5 (1) Payments of grants (District wise & Head wise) Statement No. 5(2)

10

5.2 The Grant Wise Receipts & Payments of Zilla Parishads for the year 2010-11 are exhibited in the bar charts. (Chart – 8)

CHART-8

Grant wise Receipts & Payments position in ZPs for 2010-11

554.

07

2215

.64

96.4

5 1136

9.07

1250

3.99

1709

.34

45.7

3

154.

08

7.71

1213

6.47

3504

.19

6024

.03

49.9

2

184.

45

6028

.66

1991

1.79

7649

5.59

449.

1

3965

.5

1474

.95

1064

8.8

1468

2.33

1328

.76

92.0

8

118.

93

50.0

9 1044

0.57

1676

.55

2260

.31

235.

19

76.4

7

6611

.45

1980

9.61

7392

0.69

Teach

ing gr

ant

Non-tea

ching

gran

t

Pensio

n grant

SGRY

Central/

State f

in

Rural R

oad m

ain

Honorariu

m-chair

perso

n

TA-DA-non

offic

ials

TA-DA-S

taff

RWS/A

RWS

Constitu

ency

delop (

M)(MLA

)

NABARD

Office C

ontin

gencie

s

Continge

ncies

to H

Ss

Backw

ard Reg

ions G

rant F

und

Other g

rants

Total

Receipts Payments

ZILLA PARISHADS (GRANTS) Rs.in lakhs

Grant head Receipts % Receipts

Payments % Payments

Teaching grant 554.07 0.72 449.10 0.61 Non teaching grant 2215.64 2.90 3965.50 5.36 Pension grant 96.45 0.13 1474.95 2.00 SGRY 11369.07 14.86 10648.80 14.41 Central/State Finance 12503.99 16.35 14682.33 19.86 RRM 1709.34 2.23 1328.76 1.80 Honorarium 45.73 0.06 92.08 0.12 TA&DA non-officials 154.08 0.20 118.93 0.16 TA&DA Staff 7.71 0.01 50.09 0.07 RWS/ARWS 12136.47 15.87 10440.57 14.12 Constituency delopment MP, MLA

3504.19 4.58 1676.55 2.27

NABARD 6024.03 7.88 2260.31 3.06 Office contingencies 49.92 0.07 235.19 0.32 Office contingencies HSs 184.45 0.24 76.47 0.10 BRGF 6028.66 7.88 6611.45 8.94 Other grants 19911.79 26.03 19809.61 26.80

Total 76495.59 100.00 73920.69 100.00

Mandal Parishads (Grants) Statement No. Receipts and Payments (District wise) Statement No. 6 Receipts of grants (District wise & Head wise) Statement No. 6(1) Payments of grants (District wise & Head wise) Statement No. 6(2)

11

5.3 The Grant Wise Receipts & Payments of Mandal Parishads for the year 2010-11 are exhibited in the bar charts. (Chart –9).

Chart –9

TREND OF RECEIPTS & PAYMENTS IN MPs FOR 2010-1113

483.

69

1928

.10

389.

67

2296

.71

556.

46

1.70 51

5.09

161.

65

60.3

9

158.

08

9042

.96

0.87

1.40

18.1

9

0.31 458.

82 6040

.01

3190

0.09

1400

2.92

1938

.31

351.

22

2211

.50

467.

15

226.

54

690.

40

215.

80

210.

63

199.

17

9530

.11

0 3.68

85.2

7

3.15 455.

43 6082

.48

2870

4.29

Teach

ing

Non-tea

ching

SGRY

Central

Finance

State Fina

nce

Rural ro

ad main

tenan

ce

Honorariu

m to P

reside

nts

TA-Dato

non-o

fficial

s

TA-DA to

offic

ers& Staf

f

Minor ir

rigati

onBRGF

Natural cl

amity

Buildin

g gran

t

RWS/A

RWS

Electio

n gra

nt

Assem

bly M

P,MLA

NABARD

Other g

rants

Receipts Payments

MANDAL PARISHADS (GRANTS)

Rs.in lakhs

Grant head Receipts %

Receipts

Payments %

Payments

Teaching grant 13483.69 21.12 14002.92 21.55 Non teaching grant 1928.10 2.88 1938.31 2.95 SGRY 389.67 0.58 351.22 0.54 Central Finance 2296.71 3.43 2211.50 3.41 State finance 556.46 0.83 467.15 0.72 RRM 1.70 0.00 226.54 0.35 Honorarium 515.09 0.77 690.40 1.06 TA&DA non-officials 161.65 0.24 215.80 0.33 TA&DA Staff 60.39 0.09 210.63 0.32 Minor irrigation 158.08 0.24 199.17 0.31 BRGF 9042.96 13.49 9530.11 14.41 Natural calamity 0.87 0.00 0.00 0.00 Building grant 1.40 0.00 3.68 0.01 RWS/ARWS 18.19 0.03 85.27 0.13 Election grant 0.31 0.00 3.15 0.00 Constituency delop MP,MLA

458.82 0.68 455.43 0.70

NABARD 6040.01 9.01 6082.48 9.17 Other grants 31900.09 47.60 28704.29 44.03

Total 67013.31 100.00 64900.64 100.00

12

Gram Panchayats (Grants) Statement No. Receipts and Payments (District wise) Statement No. 7 Receipts of grants (District wise & Head wise) Statement No. 7 (1) Payments of grants (District wise & Head wise) Statement No. 7(2)

5.4 The Grant Wise Receipts & Payments of Gram Panchayats in the State for the

year 2010-11 are exhibited in the bar charts. (Chart – 10) Chart –10

Grant wise Receipts and Payments in GPs for 2010-11

5613

.12

349.

85

1606

5.22

3795

.20

1507

1.60

4643

.80

5836

.50

612.

69

1585

8.46

2872

.23

1658

7.23

4354

.07

SalaryGrant

JRY/SGRY X/XIfinance

StateFinance

BRGF Othergrant

Receipts Payments

GRAM PANCHAYATS (GRANTS)

Rs.in lakhs Receipts %

Receipts

Payments % Paymen

ts Salary grant 5613.12 12.33 5836.50 12.65 JRY/SGRY 349.85 0.77 612.69 1.33

XI/XII finance

16065.22 35.28 15858.46 34.38

State finance

3795.20 8.33 2872.23 6.23

BRGF 15071.60 33.10 16587.23 35.96 Other grant 4643.80 10.20 4354.07 9.44

Total 45538.79 100.00 46121.17 100.00

13

AUDIT OBJECTIONS 6.1 During the course of audit of these Panchayat Raj Institutions for the year 2010-

11, 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 388495 audit objections involving an amount of Rs. 45516.28

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 and Category wise break-up are annexed vide Statement No. 9(a) & (b) respectively.

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 (1) to 9(19).

All objections Panchayat Raj Institutions wise Statement – 9 Variation in Account Figures Statement – 9 (1) Excess Utilisation of Grants Statement – 9 (2) Diversion of Grants / Funds Statement – 9 (3) Non-Utilisation of Grants before lapsable date Statement – 9 (4) Mis-Utilisation of Grants / Funds Statement – 9 (5) Non-Utilisation 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 Utilisation Certificates Statement – 9 (16) Surcharge Certificates - Recovery pending Statement – 9 (17) Others Statement – 9 (18) D.D/Cheques received but not realized with in time Statement – 9 (19)

14

STATEMENT SHOWING INCIDENCE OF OBJECTIONS OF PRI INSTITUTIONS (2010-11)

Sl. No. Name of the Category No. of

Paras % Amount

Rs. in Lakhs

%

(1) (2) (3) (4) (5) (6)

1 Others 153152 39.42 542.43 1.19

2 Violation of Rules 87648 22.56 13306.81 29.24

3 Non Production of Records 46578 11.99 14554.55 31.98

4 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc.,

28749 7.40 2831.12 6.22

5 Non-collection of dues 25522 6.57 3418.92 7.51

6 Non-utilisation of grants before the lapsable date 14364 3.70 732.83 1.61

7 Excess Utilisation of Grants / Funds 8113 2.09 737.16 1.62

8 Advances pending adjustment 6852 1.76 1752.31 3.85

9 Pendency of Utilisation Certificates 6218 1.60 4042.73 8.88

10 Variation in Account Figures 4622 1.19 1087.61 2.39

11 Non-utilisation of Earmarked Funds 1553 0.40 1091.33 2.40

12 Diversion of Grants / Funds 1300 0.33 653.71 1.44

13 Excess Payments 1532 0.39 290.97 0.64

14 Misappropriations 780 0.20 239.41 0.53

15 Mis-utilisation of Grants / Funds 496 0.13 149.20 0.33

16 Instances of cases of unaccounted for cash / stores 482 0.2 21.57 0.05

17 Wasteful Expenditure 352 0.09 61.59 0.14

18 Surcharge Certificates recovery pending 158 0.04 2.03 0.00

19 D.D/Cheques received but not realized with in time 24 0.01 0.00 0.00

Total: 388471 100.00 45516.28 100.00

15

AUDIT PARAS

1. VARIATION IN ACCOUNTING 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 Chalans are not credited in the Treasury Pass Book by the Treasury Authorities. debiting the Cheques issued by one D.D.O. to another D.D.O. by Treasury Authorities. With out explaining the differences addition or subtraction is being done in the reconciliation by the DDO to arrive at the balance actually available in the 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 few instances of Variation in Account figures, noticed in the Audit Reports in various PRIs 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.1087.61 lakhs was pointed out in 4622 audit paras.

1.1 ZP - VISAKHAPATNAM -GENERAL FUNDS – NON-RECONCILIATION

AND NON-CERTIFICATION OF PASS BOOK – NEEDS ACTION During the course of audit of Zilla Parishad, Visakhapatnam for the year 2010-11,

on verification of Zilla Parishad, General Funds, Treasury Pass book, monthly reconciliation at the end of every month was not done and Closing Balance at the end of every month was not shown in the General Funds as per G.O.Ms. No: 12 F&P Dt: 13-1-2004. Further the Treasury Officer’s certification was also not obtained at the end of every month. In the absence of the reconciliation, the correctness of the receipts and payments made during the year could not be verified. Therefore the Executive Authority shall rectify the defects and produce to audit only after reconciliation at the end of every month and got it certified by the Treasury Officer.

Further it is noticed, that an amount of Rs.95,97,489/- was shown against un-cashed cheques during the year 2010-11 as on 31-3-2011. The above un-cashed cheques were issued from 5-2-2004 to 31-3-2008. According to Government directions all the cheques of the local bodies are lapsed after 1 month. Hence it is irregular to show as un-cashed cheques for a longer time. Hence un-cashed cheques already lapsed may be taken as receipt and included in the Annual Account. The above defects may be rectified and arrive at the correct balance in Cash Book and Pass Book. Action shall be taken immediately under intimation to audit.

(Para No 1 (A) of Audit Report of Z P Visakhapatnam District for the year 2010-11)

16

1.2. ZP - PRAKASHAM DISTRICT - AMOUNT DEBITED IN TREASURY PASS BOOK – DETAILS NOT FURNISHED – RS 12,02,933/-

During the course of audit of Zilla Parishad, Prakasham District for the year 2010-11, on verification of the Treasury Pass Book an aggregate amount of Rs.12,02,933/-(999367+199971+3595) was debited in the month of March,2011 in Treasury Pass Book of the Zilla Parishad, General fund. The Cheque numbers were also not noted against the debit amounts. It appears unconcerned entries were made in the Treasury Pass Book and huge amounts were debited for transactions not relevant to ZP Ongole. Hence the Zilla Parishad authorities would need to take urgent steps to correspond with Treasury authorities and got the entries reversed by passing corresponding rectification entries and fact intimated to audit. Immediate action would need to be taken to rectify the above defects as huge amount was debited from Z.P. funds -- -and fact intimated to audit.

(Para No 1 of Audit Report of Zilla Paarishad Prakasham District for the year 2010-11) 1.3 ZP – GUNTUR DISTRICT - WRONG DEBITS IN TREASURY PASS

BOOK – NOT RECTIFIED – NEEDS ACTION – RS 1,18,952/- During the course of audit of Zilla Parishad, Guntur District for the year 2010-11, on verification of the Treasury Pass Book, and Cash Book of General Funds, it was noticed that an amount of Rs.1,18,952/- was wrongly debited in the Pass Book as detailed below resulting variation in account figures. Hence the wrong debits in the Pass Book would need to be rectified by addressing the Treasury Authorities concerned and fact reported to audit. 1) Cheque No.3518 Dated 25.3.11 18,952-00 2) Cheque No. 832355, dated .3.11 1,00,000-00 ------------------ Total 1,18,952-00 --------------------

(Para No 1 of Audit Report of Zilla Parishad Guntur District for the year 2010-11)

1.4 MP – SANGAM - WARANGAL DISTRICT - DIFFERENCE BETWEEN CASH BOOK AND TREASURY PASS BOOK -NEEDS RECTIFICATION.

On verification of the Opening and Closing Balances of Cash Book and Treasury Pass Book, it was noticed that the Closing Balances of the preceding year are not tallying with the current years Opening Balance as shown below.

CB as per Cash Book as on 31-3-2010 Rs. 8,65,074-00 OB as per Cash Book as on 1-4-2010 Rs. 7,74,516-00 --------------------------- Difference Rs. 90,558-00

--------------------------- CB as per Treasury Pass Book as on 31-3-2010 Rs.9,90,855-00

OB as per Treasury Pass Book as on as on 1-4-2010 Rs.7,80,346-00 Difference Rs. 2,10,509-00

Action would need to be taken to reconcile the difference pointed out above.

(Para No.2 of MPP Sangam of Warangal District for the year 2010-11)

17

1.5 GP - GORRENKUNTA – WARANGAL DISTIRCT - DISCREPANCY OF CLOSING BALANCES BETWEEN CASH BOOK AND TREASURY PASS BOOK - NEEDS RECTIFICATION.

As verified from the Cash Book the closing balance as on 31-03-2011 Rs.1,39,696/- is not agreed with Treasury Pass Book balance Rs.3.15.249/-. The same would need to be got rectified and produce in next audit.

(Para No.1of Gorrenkunta GP of Warangal District for the year 2010-11)

2. EXCESS UTILIZATION OF GRANTS

The State Government releases Grant-in-aid to PRIs to meet expenditure on developmental works and contingency items like T.A., Stationary, Honorarium to elected representatives etc. It was noticed during the audit that the Executive Authorities of PRIs were incurring expenditure in excess of the grant received from the Government either in anticipation of the release of further grant or withdrawing the excess amount from the General Funds of the institution.

An amount of Rs.737.16 lakhs has been spent in excess in all PRIs in 8113 paras instances Statement No.9(2). A few such instances are given hereunder. 2.1 ZPs – EXCESS UTILISATION OF GRANTS

During the course of Annual audit on the accounts of Zilla Parishads for the year 2010-11, it was noticed that in the following Zilla Parishads amount utilised more than the grant received which is against the Rules.

# Name of the

ZP

Nature of Grant Releases Expenditure Excess Para

1 SPSR Nellore TA Grant 42,400 2,66,765 2,24,365 4

2 Guntur Sitting Allowance &

TA Grant

Nil 5,76,123 5,76,123 2

2.2 MPs - EXPENDITURE INCURRED MORE THAN THE GRANT

RECEIVED – EXCESS UTILISATION- Rs.6,59,343/- During the course of audit of Mandal Parishads, it was noticed that the

expenditure was incurred for various purposes more than the grant received. Further, in some cases as shown below, though no grant was received, the Mandal Parishad incurred Expenditure which is irregular. The expenditure was incurred in anticipation of receipt of further grant and from out of the unspent balances of other- grants- in- aid which are mixed up in the same PD Account of Mandal Parishad which helped to divert and use them.

18

Some of such cases are exemplified here under.

#

Name of the Mandal / District Purpose

Grants Received (in Rs)

Expenditure

Incurred (in Rs)

Excess Utilized (in Rs)

Para No.

1 Kuntala,

Adilabad

TA & Contingencies

6040 40146 34106

2 ,, Stationery - 13326 13326

3 ,, Postage - 2000 2000

4

4 Banaganapalli,

Kurnool

TA & Contingencies

5800 156344 150544 3

5 Owk, Kurnool -do- 5800 82807 77007 5

6 Mangapeta,

Warangal

Honourarium, MPTC 87668 176600 88932

7 Mangapeta,

Warangal

TA & Contingencies 4748 16580 11832

1

8 Chebrolu,

Guntur

TA & Contingencies

5936 90710 84774 4

9 Chilaluripeta,

Guntur

,, 90640 175550 84910 3

10 Guntur, Guntur ,, 5936 105976 111912 2

Total 206528 860039 659343

Action needs to be taken to get reimburse the excess amount utilized.

2.3. MP - ATMAKUR - NELLORE DISTIRCT- MPTC HONORORIUM-

EXPENDITURE INCURRED OVER AND ABOVE THE GRANT ADJUSTED- NEEDS REIMBURSEMENT Rs.39,258/-

During the year under report, an aggregate amount of Rs.1,14,750/- was spent

from M.P. General Funds towards payment of Honorarium to MPTCs as detailed below against the payment made only Rs.75,492/- was adjusted. Payment of Honorarium in advance from General Funds was irregular. Action would need to be taken for reimbursement of the expenditure over and above the grant adjusted under intimation to audit.

Voucher No & Date Period Amount (in Rs) 45/6.10 July, August and September 2009 38,250 129/11.10 April, May and June 2010 38,250 156/12.10 July, August and September 2010 38,250

Total 1,14,750

(Para No 13 of AR of Atmakur MP, SPSR Nellore District for the year 2010-11)

19

2.4 GP - ATMAKUR - NELLORE DISTRICT –EXCESS UTILIZATION OF

GRANT – NEEDS TO BE REIMBURSED FROM THE GOVERNMENT Rs. 90,230/-.

During the course of audit of Atmakur GP of Nellore district for the year 2010-11,

it was noticed that no amount was received towards salary grant. But during the year under audit a sum of Rs.90,230/- was drawn and paid to the staff of said GP towards Pay and Allowances, Medical Reimbursement and Encashment of Earned leave. As no grant was received for said purposes, the expenditure was met from the General funds of the Institution. Therefore, early action would need to be taken to reimburse the said amount from the Government and made good to the General Funds of the GP.

(Para No 2 of Atmakur GP SPSR Nellore District for the year 2010-11 )

3. DIVERSION OF GRANTS

The PRIs viz., ZPs, MPs and GPs 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. These Bodies also earn income by taking up some remunerative enterprises. In case of GPs, they are vested with the power of levying certain taxes and fees like House Tax, Tax on Agricultural land for a specific purpose, Fees for lease of Porambokes or Community lands under their control etc. Such taxes/fees constitute one of the main source of income to them apart from Grants-in-aid provided by the Central/State Governments.

Incurring of expenditure for purposes other than the prescribed without specific sanction of the Government is not permissible and it amounts to diversion of funds. In case of specific grants, the grants should be utilized only for the specific purpose for which the grant is released and no diversion is permissible without the permission of such Grant Releasing Authority. But, it was noticed in audit that not withstanding 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 No. 9 (3) of Diversion of Funds and Grants is

appended to the report from which it could be seen that an amount of Rs.653.71 lakhs was pointed out in 1300 audit paras. 3.1 ZP – WARANGAL DISTRICT - PAYMENT OF ELECTION EXPENSES

FROM ZP GENERAL FUND WARANGAL – IRREGULAR – Rs.2,58,470/- During the course of Audit of General Funds of Zilla Parishad, Warangal District for the year 2010-11, it was observed that an amount of Rs.2,58,470/- was spent on Election expenses from Zilla Parishad, General Funds towards conducting the Bye-Election of ZPTC Narsimulapeta as given below. The expenditure incurred from the General Funds of Zilla Parishad, Warangal without the receipt of any grant, which is irregular, as election expenses of the PR Institutions are to be borne by the Government in accordance to AP Panchayat Raj Act 1994.

20

# Voucher No & Date Particulars Amount

(Rs) Cheque &

Date Printing of bundle of papers of 49,000/- for thousand 49,000 X 150/1000

7350

Printing of form TA 100/- @ 5.60 100x 5.60 560 1 65/12.6.2010

Printing of form – 13 of 100 @ 100 X5.60

560

023840 dated 12.6.2010

2 335/30.8.2010 Cheque issued to MPDO Narasimhulapet to conduct the Bye-Election of ZPTC Narasimhulapet

250000 023934 dated 30.8.2010

Total 2,58,470

The Zilla Parishad, General Funds shall be spent for specific purposes as per GO. Ms.No.446 of PR&RD (PROGS-III) Department, dated 29.10.1998. It was further ordered that the expenditure, which falls outside the purview of the above said GO and ceiling prescribed, prior permission of the Government is needed. Hence early action would need to be taken to get reimburse the election expenditure from the Government under intimation to audit.

(Para No 4 of AR of Zilla Parishad Warangal District for the year 2010-11 ) 3.2 Z.Ps. - DIVERSION OF GRANTS IN SOME ZILLA PARISHADS DURING

THE YEAR Rs.9,65,11,639/-

The following are some of the instances of Diversion of Grants to various purposes from the General Funds by the Executive Authorities of the Zilla Parishads noticed during the audit in the State.

# District Nature of Payment Amount (Rs.) Para 1 East Godavari TA Bills 401990 4 2 East Godavari Pension 8179222 5 3 East Godavari Pensions Advances 33276801 4 West Godavari Pension 24294347 42 5 Krishna Pension 25494093 11 6 YSR Kadapa Pension 915106 2 7 SPSR Nellore TA 224365 2 8 Warangal Honorarium & TA to Non-

Officials 403469 2

9 Warangal Pension 3322246 3 Total 96511639

3.3 MPs. - DIVERSION OF FUNDS FROM GENERAL FUNDS TO PRAJA

PATHAM PROGRAMME - IRREGULAR – NEEDS REIMBURSEMENT. On verification of General Fund Cash Books relating to the year under audit, it was noticed that the expenditure was incurred from the General Funds for various activities

21

subject to reimbursement to the General Funds. But, the same is not reimbursed till the close of audit. Thereby, the activities which have to be met from the General Funds, will be defeated. Therefore, action would need to be taken to reimburse the diverted amounts from the concerned funds to the General Funds immediately. Sl. No.

Name of the MP and District

Details of the diversion made

Grant released/reimbursed to the General fund. Rs.

Expenditure

incurred Rs.

Excess expendit

ure incurred

Rs.

Para No.

1 Kaghaznagar, Adilabad

From general funds to prajapatham programme

23104 43104 20000 3

2 Porumamilla, Kadapa

From general funds to prajapatham programme

Nil 10000 10000 10

3 AS Peta, Nellore

Geral funds to pension payments

Nil 64632 64632 9

4 Duttaluru, Nellore

Short reimbursement of pension fund from the ZP funds to MP General funds

52534 33303 19231 8

5 VK Padu, Nellore

Honororium & TA excess payment to President

Nil 22500 22500 8

6 VK Padu, Nellore

Pension paid from General Funds

61232 164065 102833 9

7 Eligaid, Karimnagar

General funds to 12th FC funds

Nil 63900 63900 1

Total 117639 420735 303096 3.4 GP - ANANTAVARAM - PRAKASAM DISTRICT – NON-UTILIZATION

OF 13TH FC GRANTS FOR PUBLIC WORKS SANITATION IRREGULAR.

The Commissioner of P.R. and R.E., A.P., Hyderabad in

Procgs.No.12455/CPR&RE/Accounts-II(I)/2010, dt.06-10-2010 issued orders to incur expenditure from 13th F.C. Funds towards PWS(Operation and Maintenance) in the 1st instance and the subsequent releases for sanitation on the basis of censes 2001. During the scrutiny of audit it was noticed that an amount of Rs.65,533/- was released in the 1st instance. But incompliance of the above orders instead of incurring expenditure for PWS, the amount was spent towards repairs to a well at Bangaramma Tank on 23-03-2010. As such the expenditure incurred contrary to the instructions could not be admitted in audit and ratification of competent authority has to be obtained to regularize the expenditure.

(Para No.1 of Anantavaram GP of Prakasam District for the year 2010-11)

4. NON-UTILIZATION OF GRANTS BEFORE LAPSABLE TIME

Government release Special Grants to the PRIs 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.

22

Government issued orders in G.O.Ms.No. 666 (Accts-I) Department, dated 13-6-

1978 extending the period of Utilization of Non-salary grants, particularly Panchayat Raj Grants, up to a maximum period of 18 months instead of end of the Financial year to allow reasonable time to utilize the grant released. According to the above orders, Grants released in the first year of a Financial year can be utilised on or before 30th September of the Local Bodies did not utilize the Grants released within the lapsable date and thereby huge amounts were left unutilized. The Grant sanctioning authorities were also not approached for extending the utilization period. Thus, the schemes for which the grants released were not implemented effectively and totally. The unspent balances were also not refunded to the Grant Releasing Authorities.

A Consolidated Statement No. 9 (4) of Non-utilisation of Funds before Lapsable

Date is appended to the Report from which it could be seen that an amount of Rs.732.83 lakhs was pointed out in 14364 audit paras

A few of such cases pointed out in the Audit Reports of the PRIs are detailed

hereunder.

4.1 ZP – PRAKASAM DISTRICT - ANIMAL HUSBANDRY FUNDS – CONSTRUCTION OF NEW BUILDINGS WITH COMPOUND WALL TO THE VETERINARY INSTITUTIONS UNDER PLAN SCHEME OF RIDF – FUNDS ADJUSTED TO ZP – NOT UTILIZED

During the course of audit of Zilla Parishad, Prakasham District for the year 2010-11, Administrative Sanction was accorded for an aggregate amount of Rs.2,03,75,000/- under Plan Scheme of Rural Infrastructure Development Fund (RIDF –XIV) by NABARD towards construction of New Veterinary Buildings with Compound walls during the Financial years 2009-10 & 2010-11. The details of release of funds by Directorate of Animal Husbandry AP Hyderabad to Zilla Parishad, Prakasham are as shown below.

# Budget Year

Authority No of Works

Sanctioned

Amount Released

(Rs.)

Challan No.

Date

1 2009-10 Progs.No.10874/K III/K

6/2008, dt. 2.2.2010

1 3,90,000 41973 20.3.2010

2 2009-10 Progs. No.10874/K III/K

6/2008-1,dt. 3.3.2010

32 33,39,000 48366 31.3.2010

3 2010-11 Progs.No.5701/K III/K6

/2010-2, dt. 14.9.2010

28 32,00,000 3930 17.1.2011

4 2010-11 Progs.N15701/K III/K

6/2010-1, dt. 5.10.2010

62 1,34,46,000 39029 17.1.2011

During the course of audit, the following points were noticed.

23

1. The last two installments as detailed above were released by the Director of Animal Husbandry on 14.9.2010 and 5.10.2010. But the same were remitted to ZP Funds on 17.01.2011. The delay in remittance was not explained by the Executive Authority.

2. No amount was released by the Chief Executive Officer, ZP to the Eexecutive Authorities concerned up to 31.3.2011 as such it could not be known in audit whether works were executed within time or not.

(Para No 3(2) of Audit Report of ZP Prakasham District for the year 2010-11 )

4.2 ZP – NELLORE DISTRICT - GRANTS ADJUSTED TO ZP GENERAL

FUNDS – NOT FULLY UTILIZED

During the course of audit of Zilla Parishad, SPSR Nellore District for the year 2010-11, the following amounts were adjusted to General funds of Z.P. Nellore during the year. But the amounts were not fully distributed/ utilized during the year to the institutions concerned.

# Nature of Grant Opening Balance

Amount Adjusted

Total (in Rs)

Amount Spent

Closing Balance

1 Opening of Libraries in SC Localities 12,100 - 12,100 - 12,100

2 Best Gram Panchayat Awards 9,072 13,600 22,672 - 22,672

3 Incentive Grant to Gram Panchayat under Community Development Scheme

23,300 23,400 46,700 - 46,700

Action would need to be taken to utilize the above Grants for the purpose for

which the grant was released.

(Para No 6 of Audit Report of ZP SPSR Nellore District for the year 2010-11 )

4.3 ZP - PRAKASAM DISTRICT - STATE FINANCE COMMISSION (SFC) GRANTS – NOT UTILIZED FULLY – NEEDS ACTION

During the course of audit of Zilla Parishad, Prakasham District for the year 2010-

11, it is noticed that budget amounting Rs.46,78,800/- was released (two quarters) towards SFC Grant and adjusted to Z.P. funds for the year 2010-11. Out of which an amount of Rs.11,46,000/- was released to the concerned Executive Authority for execution of works during the year. It was observed that only 24.49% was spent from the available funds. The remaining 75.51% i.e. Rs.35,32,800/- was available in the PD Account of CEO ZP Prakasham. It seems that the utilization of funds was very slow which defeats the purpose of the Government. As such the Executive Authority would need to take appropriate steps for utilization of entire funds that were adjusted to ZP funds.

(Para No 5(1) of AR of Zilla Parishad Prakasham District for the year 2010-11 )

24

4.4. MP- ECHODA- ADILABAD DISTRICT - ISLS SCHEME AMOUNT NOT FULLY UTILIZED - DURING THE YEAR Rs.55,446/-

During the course of audit, it is noticed that an amount of Rs.2,28,000/- has been released to the Mandal Parishad for construction of (152) Nos. ISLS in the Grampanchayats, i.e. Dharmapuri (82) Nos. and Soanpally (70 Nos) during the year 2010-11. An amount of Rs.437/- accrued as interest. Out of which an amount of Rs.1,72,991/- has been utilized leave a balance of Rs.55,446/-. Due to non utilization of amounts the purpose for which the grant was released is not fulfilled.

(Para No. 6 of MPP Echoda Adilabad District for the year 2010-11)

4.5 MP - SRIRAMPUR- KARIMNAGAR DISTRICT – NON- UTILIZATION

OF GRANTS WITHIN THE TIME Rs.1,07,320/-

During the year Mandal Parishad Srirampur, was received an amount of Rs.1,33,986/- towards ACDP fund and Rs.44,400/- towards Rachabanda Programme as shown in the table given below having the opening balance of Rs. 81,154/- and gross amount available including Opening Balance is Rs.2,59,540/- for utilization. Out of which (61%) amount of Rs.1,59,220/- was spent leaving balance of Rs.1,07,320/- and not reached to up to the mark. So the purpose of the scheme was not fulfilled the public as desired by the Government.

Date of Receipt

Name of the Grant Proceeding No/ Date

Grant Received in

(Rs.)

18-5-2010 ACDP Plg-II 444.ACDP/TP & DB/07 Dt.16.1.2010 33986

28-9-2010 ACDP Plg-II 444.ACDP/TP & DB/07 Dt.16.1.2010 100000

15-03-2011 Rachabanda Adjustment No. 52475 44400 Total 178386

(Para No.6 of Srirampur Mandal Parishad of Karimnagar District for the year 2011-12)

4.6 MP - MADAKASIRA - ANANTAPUR DISTRICT- GRANTS LAPSED DUE

TO NON-UTILIZATION.

Government in their orders issued in G.O.Ms.No.666 P.R (Accounts-I) Department, dated: 13-06-1978 extended the period for Utilization of the grants up to a maximum period of 18 months. Grants released in the first half year of the Financial year can be utilized up to the end of September of next Financial year. Similarly grants released in the 2nd half Financial year can be utilized up to end of next Financial year. There are certain grants for which this facility has not been extended and they are lapsed at the close of the Financial year. It was noticed that in Madakasira, MP Rs.1,78,025/- released towards contingent grant was allowed to be lapsed which irregular.

(Para No. 1 of Madakasira MP Karimnagar District for the year 2010-11)

25

4.7 GP- GORREKUNTA- WARANGAL DISTRICT- NON-UTILISATION OF FUNDS ON WORKS OBJECTIVES NOT ACHIEVED Rs.3,11,383/-.

During the year under audit a sum of Rs.3,11,383/- was released under 13th

Finance Commission Grants and adjusted to Gram Panchayat Funds in Treasury vide Adj.No.7231, dt.9-11-2010. But no amount was spent towards intended works and kept un-utilised till the closure of the Audit.

(Para No.15 of Gorrekunta GP of Warangal District for the year 2010-11)

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 utilisation 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 No. 9(5) of Mis-utilisation of Grants/ Funds is

appended to the report from which it could be seen that an amount of Rs.149.20 lakhs was pointed out in 496 audit paras.

A few such cases are mentioned hereunder.

5.1 ZP- KADAPA DISTRICT - SANCTION OF WORKS AND RELEASE OF AMOUNTS UNDER 35% EMFS OF Z.P GENERAL FUNDS AGAINST TO THE NORMS - IRREGULAR Rs: 13,97,135/-

As verified from the following vouchers, it was noticed that an amount of Rs:13,97,135/- were released to E.E PR and to MPDO, Thondur towards execution of works sanctioned under 35% EMFs of Z.P General funds during the year under report. In GO.Ms No.446 PR& RD (Programs - III) Dept dt: 29-10-98, clear Guidelines were issued in respect of works which should be taken up under Z.P General funds. Against the Guidelines issued in the above GO, amounts were released for improvement of other than Z.P assets and Religious institutions development, which does not eligible to accord Administrative Sanction. The Executive Authority blindly forwarded the proposals for administrative approval without observing the eligibility, without knowledge of Standing Committee or General Body and Administrative Sanction was accorded. Hence, it is clear that the funds were mis-utilized. Hence, the above payments were held under objection and needs to be recovered from the person or persons responsible.

26

Vr no.

& dt

Name of the work

Administrative sanction

Proposer To whom Amount

was released

Amount released

(Rs.)

52/ 5-10

Leveling the scout ground in Sankarapuram of kadapa

Rc.no. N7/614/09 dt.10/7/09 of CEO,ZP,kadapa

S.ShabbeerAhmed Z.P Co-opted member & DCCofficial spokes man, kadapa dist

EE PRI, Kadapa

497135

Const.of compound wall at sivalayam in Bachupalli of thondur


V.Sivamohamn reddy , ZPTC and president ZPTC forum

MPDO, thondur

300000

440/12-10 Const.of

compound wall at Ramaswamy Temple at in Bachupalli of thondur



MPDO, thondur

400000

496/3-11-10

Const.of compound wall at Ramaswamy Temple at in Bachupalli of thondur



MPDO, thondur

200000

Total 1397135

(Para No.3 of GF of ZP, Kadapa for the year 2010-11 District for the year 2010-11 )

5.2 MP - PACHIPENTA – VIZIANAGARAM DISTRICT - MISUTILISATION

OF GRANT - HIRE CHARGES OF JEEP PAID FROM BRGF GRANT - NEEDS ACTION - Rs.39,000/- During the course of audit on the accounts of Mandal Parishad, Pachipenta,

Vizianagaram District for the year 2010-11, it was noticed that an amount of Rs 39,000/- was drawn by the MPDO, Pachipenta vide Voucher No .8 dated 30.9.2009 and Cheque No 357408 towards Hire Charges of Jeep from the BRGF funds which is highly irregular as the grant has to be utilized only for taking up the developmental /capital works like Anganwadi buildings, schools and roads etc. But the said amount was drawn and utilized for Jeep hire charges defeating the purpose for which the Grant has been released by the Govt. Hence action shall be taken to recover the amount of Rs 39,000/- from the persons responsible and remitted to the Mandal Parishad BRGF funds.

(Para No 20 of AR of Pachipenta MP, Vizianagaram District for the year 2010-11)

27

5.3 MP – KHAMMAM- KHAMMAM DISTRICT - IMPLEMENTATION OF ISL SCHEME IN IDENTIFIED NIRMAL GRAMEENA PURASCAR VILLAGES - CERTAIN DEFECTS IN IMPLEMENTATION OF SCHEME Rs.8,36,285/-

As seen from the ISL Cash Book for the year 5-2010-11, it is observed that an

amount of Rs.7,84,685/- was incurred towards construction of ISLs during the year, an amount of Rs.7,000/- was refunded to Z.P. Khammam and an amount of Rs.51,600/- were paid to Sarpanches of different Gram Panchayats to maintain the sanitation etc,. The following defects are noticed.

1. The expenditure incurred by the Executive Authority not supported by

Technical Authority recording. 2. The Ledger accounts, beneficiary portion, subsidy and loan portion

distribution particulars to be recorded are not maintained by the Executive Authority.

3. The selected list sanctioned proceedings of the Competent Authority are not produced to audit for verification. In absence, of the above, the disbursement made to beneficiaries, cannot be verified and certified in audit.

Hence, action would need to be taken to rectify the above defects early.

(Para No1 of AR of Chintakani MP, Khammam District for the year 2010-11)

5.4 GP – ANNARAM - MEDADK DISTRICT - WORKS WHICH ARE NOT IN THE FUNCTIONAL JURISDICTION - EXECUTED IRREGULAR OBJECTED Rs.13,12,104/-

During the year an amount of Rs.13,12,104/- drawn and incurred towards

construction of additional rooms to the Zilla Parishad school as detailed in the statement. Maintenance of Zilla Parishad school is not the obligatory function of the Gram Panchayat and the said responsibility lies with Zilla Parishad. As per the 73rd amendment of the Constitution every institution has to maintain its assets as its own. The Gram Panchayat funds shall not be utilized for the works which do not fall within the functional jurisdiction of the Gram Panchayat. But it was observed during the audit that the following works which do not fall within the functional jurisdiction of the institution have been sanctioned and executed.

There is no need for incurring huge expenditure for the work which is not imperative on the part of Gram Panchayat. The intention of the Executive Authority is not known to take up the said work and in spending huge amounts leaving other essential works, such as sanitation and water supply as the Gram Panchayat is situated amidst in industrial area and reeling under acute short of drinking water, as the water in the area is polluted by the industries and there is scarcity of portable water. Hence the exigencies which warranted taking up the said works by the Gram Panchayat could not be 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.

28

The detailed estimate not prepared and the work was spilt and executed in piece meal manner. It is clear that the Executive Authority wanted to avoid the Administrative and Technical sanction from the Competent Authority, instead the work was Technically sanctioned for every one and two lakhs and the same was got sanctioned and executed which is highly irregular. As per the GO.No.24 PR& RD dt.12.1.1996 the Administrative sanction has to obtained from the Collector for the works which costs more than 3 Lakhs, and the technical sanction has to be obtained from the Executive Engineer concerned for the works which costs more than 3 Lakhs. But the Executive Authority did not bother about the rules in vogue and executed the works.

# Name of the Work

M.B.No. & Page No.

Value of workdone

Deductions

Net payable

Now paid

1 C/o of kitchen shed at ZPHS 102/A P.N.49 111689 8105 103584 3583

2 C/o of Toilets at ZPHS 102/A P.N.53 159822 11461 148361 148361

3 C/o of additional room to ZPHS 97/A P.N.19 180000 10592 169408 169408

4 Balance work of C/o of additional room to ZPHS

97/A P.N.27 200000 12222 187778 67961

5 Balance payments C/o of additional room

97/A P.N.27 0 0 0 119817

6 Balance payment for C/o oSCB 97/A P.N. 184123 11333 172790 80183


761/AM P.N. 160000 16290 143710 57677

8

Balance work of C/o of additional room to ZPHSCh.no768

761/AM P.N. 0 0 0 86033

9 Balance payment Ch.No.771 763/A P.N.12 0 0 68530

10 Balance payment Ch.No.774

760/AM P.N.10 0 0 0 127469

11 Balance payment for C/o oSCB C.No.763

97/B P.N.9 0 0 0 92605


588/B P.N. 200000 12463 187537 164559


97/B P.N.35 14099 685 13414 13414

14 588/B P.N.15 119133 6628 112505 112504 Total 1328866 89779 1239087 1312104

(Para No 5 of AR of Annaram GP of Medak District for the year 2010-11)

29

6. NON UTILISATION OF EARMARKED FUNDS

Government vide their orders issued in G.O. Ms. No.450 & 451 P.R. & R.D. (Programme-IV) Department, dated 9-4-2001 and G.O. Ms. No.38 Women Development and Child Welfare Department, dated 29-5-98 read with G.O. Ms. No.704 of P.R. & R.D. Department, dated 5-11-1994 issued instructions that every ZP and MP shall Earmark funds out of their General Funds and utilize the same on the schemes benefiting the S.C.s, S.T.s and for Women and Child Welfare at the following rates.

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 to utilised for the benefit of the S.C.s, S.T.s and Women and Children respectively. The balance of 2/3rd funds shall be utilised by the ZPs / MPs for the benefit of S.C.s, S.T.s, Women & Children in the ZP, MP areas. Unspent balance out of the 2/3rd funds at the end of the Financial year, if any, shall be made over to the respective Corporations.

It is observed in audit that in many cases the funds to be earmarked as per the

Orders of Government were worked out and provide for in their respective Budget estimates. But Earmarked funds were neither made over to the respective Corporations at the beginning of the year nor fully utilized by the ZPs / MPs. 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.

A Consolidated Statement No. 9 (6) of Non-utilisation of Earnmarked Funds is

appended to the Report from which it could be seen that an amount of Rs.1091.33 lakhs was pointed out in 1533 audit paras

6.1 ALLOCATION AND UTILIZATION OF EARMARKED FUNDS IN ZPS., AND MPS DURING THE YEAR UNDER REPORT.

During the year under report, it was noticed that the allocated funds were not

utilized/transferred to the concerned Societies properly. The details of the allocation and utilization of said funds are detailed in the given table. And the given table shows the utilization cum transfer of funds to the concerned Corporations is 74.30% in case of Zilla Parishads and 75.73% in case of Mandal Parishads.

30

Amount in lakhs Name of the PRI

ZPs., MPs., Nature of earmar-

king Allocation

Utilization /transfer to the concerned corporation

Un utilized funds

Allocation

Utilization/transfer to the concerned corporation

Un utilize

d funds

15% SCs., 1707.50 1185.17 522.33 1594.73 1233.27 361.46 6% S.Ts., 651.50 570.03 81.47 636.23 543.42 92.81 15% W&CW

1793.53 1330.38 463.15 1543.63 1081.85 461.78

4152.53 3085.58 1066.95 3774.59 2858.54 916.05 Action would need to be taken to utilize/transfer the funds to the Corporations

concerned to fulfil the very intention of such allocation in the PRIs. A case study was made on the utilization of Earmarked Funds in Zilla Parishad

Khammam for last 10 years (from 2001-02 to 2010-11) in respect of SCs., and S.Ts., which shows that the Executive Authorities have not utilized the said funds fully for the welfare and development of the Scheduled Castes and Scheduled Tribes due to which the very purpose of allocating Earmarked Funds to the above groups is being defeated in spite of availability of sufficient funds .

CASE STUDY – ZP GENERAL FUNDS – KHAMMAM

NON-UITLIZATION OF EAR-MARKED FUNDS FOR SCHEUDLED TRIBES

Year Unspent

Balances of Previous Year

6% Allocations STs (2/3)

Expenditure Unspent Balance at the End of Year

(2+3-4) 2001-02 (OB) 2996059 661254 648012 2909301 2002-03 2909301 685604 2993721 601184 2003-04 601184 640343 505447 736080 2004-05 736080 1218050 756016 1198114 2005-06 1198114 1462490 587497 2073107 2006-07 2073107 1196792 2148931 1120986 2007-08 1120986 1219701 400000 1940687 2008-09 1940687 1142538 2771269 311956 2009-10 311956 1198111 200000 1310067 2010-11 1310067 1624847 820000 (CB) 2114914

Total 11049730 11830893 NON-UITLIZATION OF EAR-MARKED FUNDS FOR SCHDULED CASTES

Year Unspent Balances (OB)

15% Allocations SCs (2/3)

Expenditure Unspent Balance at

the End of Year (2+3) – 4)

2001-02 (OB) 5593219 1653135 1539999 5706355 2002-03 5706353 1714011 5275254 2145110

31

2003-04 2145112 1600856 2701618 1044350 2004-05 1044350 3045126 1315042 2774434 2005-06 2774434 3656225 1508742 4921917 2006-07 4921917 2991980 3606984 4306913 2007-08 4306913 3221932 3308271 4220574 2008-09 4220574 2856345 5678173 1398746 2009-10 1398746 2940820 500000 3839566 2010-11 3839566 3988261 2690000 (CB) 5137827

Total 27668691 28124083

6.2 MP- DILWARPUR- ADILABAD DISTRICT - NON-UTILISATION OF EARMARKED FUNDS TOWARDS S.C. S.T. AND WOMEN & CHILD WELFARE ACTIVITIES IN FULL – RS. 48,205/-

The following amounts were Earmarked for the welfare of Scheduled Castes, Scheduled Tribes and Women & Child Welfare from General Funds of the Mandal Parishad as laid down under Rule 3 and 4 of the Rules framed for the purposes for which the Mandal Parishad Funds shall be applied as issued in GO.Ms.No.704 PR & RD Department, Dated 05.11.1994 under AP PR Act 1994.

In the instant case, the Earmarked funds to a tune of Rs 48,205 /- remained neither utilized for the above categories nor transferred to respective Corporations. Since the amounts Earmarked were not fully utilized, the welfare activity of such categories is affected to that extent. Further the unutilized balances were also not transferred to the respective Corporations as instructed in the said rules which is irregular and violation of the said rules.

# Earmarked Funds for Amount (in Rs)

Expenditure (in Rs)

Unspent Balance at the end of the FY (in Rs)

1 Welfare of SC 29,035 15,343 13,692 2 Welfare of ST 11,614 6,137 5,477 3 Women & Child Welfare 29,036 - 29,036

Total 48,205

(Para No 5 of AR of Dilwarpur MP, Adilabad District for the year 2010-11 )

Likewise in some of the following Mandal Parishads, the said amounts were kept neither unutilized nor transferred to respective Corporations.

# District Mandal Parishad Unspent Balance at the

end of the FY (in Rs) Para

1 Adilabad Mamada 1,12,177 5

2 Adilabad Bhainsa 56,501 3

3 East Godavari Mamidikuduru 57,874 5

32

6.3 MP – PARCHURU - PRAKASAM DISTRICT- NON UTILISATION OF 15% WOMEN AND CHILD WELAFRE EARMARKED FUNDS DURING THE YEAR - NEEDS EARLY UTILISATION - Rs.85,807/-

Guidelines have been prescribed in GO.Ms.No.38 WD&CW & DW (Prog)

Department, dated. 29.05.1998 read with GO.Ms.No.27 WD&CW&DW (Prog) Department, dated 20.06.2003 for utilizing the Earmarked funds for Women and Child Welfare at Mandal level. 13 schemes/ programmes were prescribed in the G.O.s and as per guidelines; the unspent balances at the end of Financial year shall be transferred to AP Women Welfare Cooperative Financial Corporation Ltd under intimation to Project Director, Women Development & Child Welfare of the Prakasham District.

During the course of audit, it was observed that the amount of Rs.85,807/-, which was earmarked during the year 2010-11, was not transferred to Women and Child Welfare fund from General Funds. No Cash Book was maintained and the Earmarked amount was also not shown in the Budget which is highly irregular. Even though several developmental activities were specified for the benefit of Women and Children, no programme was implemented till 2010-11. Hence the entire amount of Rs.85,807/- would need to be surrendered to the AP Women Welfare Cooperative Finance Corporation.

(Para No 1(2) of AR of Parchru MP, Prakasham District for the year 2010-11 )

Likewise in some of the following Mandal Parishads, the said amounts Earmarked

for Women & Child Welfare activities remained unspent which would need to be transferred to the AP Women Welfare Cooperative Finance Corporation.

# District Mandal Parishad Unspent Balance at the end of the FY (in Rs) Para

1 SPSR Nellore Marripadu 42,978 5 2 SPSR Nellore AS Peta 27,229 3 3 SPSR Nellore Rapur 45,125 5

7. NON-COLLECTION OF DUES

On verification of Revenue Collections in Panchayat Raj institutions, 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 inspite of various statutory provisions existing for their recovery such as through distraint, prosecution or filing of suits. Dependence on Government grants gets lowered if timely and appropriate action is taken by the Executive Authorities for collection of these outstanding dues which ultimately increases their self sustainability. In-fact some of these dues cannot be recovered legally now and constitute a permanent loss to the institutions which needs to be curbed. A case study of the amounts outstanding / time barred dues and dues which are likely to become time barred during the year 2010-11 in Panchayat Raj bodies and others is given below.

33

A Consolidated Statement No. 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. 3418.92 lakhs was pointed out in 25522 audit paras.

7.1 ZPs - NON-COLLECTION OF DUES IN ZILLA PARISHADS IN THE

STATE.

Lease amounts and rents to be collected by the Zilla PArishads as detailed below were not collected. Action would need to be taken to collect the dues and credited into ZP funds.

# District Nature of Dues/Advances Amount Para No. 1 East Godavari Misc. sales and other lease amount not

collected 2294555 7

2 East Godavari Time-barred Misc. sales and other lease amounts.

94020 6

3 West Godavari Lease Amount from Coconut & Other Fruit bearing Trees

88802 3

4 West Godavari Lease Amounts 344013 6,22 &28 5 West Godavari Lease Amounts of Ferries 55013 7 6 West Godavari Land Lease Amount 691509 10-13, 25

& 27 7 West Godavari Lease Amount from Shop Rents 19455 14 8 West Godavari Lease Amount of Trade Market

Tadepalligudem 30000 15

9 West Godavari Rents 187492 16 10 West Godavari Lease Amount from Petrol Bunk at

Bheemvaram 32905 17

11 West Godavari Lease Amount from V& E Dept Buildg 197714 18 12 West Godavari Lease Amount from Quarries 2564800 23 & 24 13 Krishna Lease Amount of Shopping Complexes

Kanchikacherla, Machilipatnam, Gudivada & Mopidevi

372897 7 - 10

14 Khammam HBA (House Building Advance) 620185 2 15 Karimnagar Rents from Staff 734966 3 16 Karimnagar Rents from ZP Shopping Complex 317360 4 17 YSR Kadapa Outstanding HBA 1679920 1 18 Mahaboobnagar HBA from FY 2002-03 6799671 20 19 Visakhapatnam Shopping Complex Rents 168007 8 20 Visakhapatnam Building Rent (Bank) 53400 11 21 Vizianagaram Rents from Shopping Complexe 9720 14 22 Prakasham Rents from Shops 161600 4 (3) 23 Ranga Reddy Rents due from Offices located in ZP

Complex 497646 12

Total 18015650

34

7.2. MP – PARVATHIPURAM - VIZIANAGARAM DISTRICT - NON COLLECTION OF DUES OF SHOPPING COMPLEX- NEEDS ACTION -Rs.38,300/-

During the course of audit of Mandal Parishad, Parvathipuram, Vizianagaram District for the year 2010-2011, it was observed that the rents over due for many years though cleared by the tenants, the penalty ought to be collected on belated payments remained uncollected. According to the byelaws of the Mandal Parishad regarding lease of shopping complex, the penalty at Rs.20/- for every month of delay that took place in between the due dates for payment and the date of recovery has to be collected. The collection of penalty provision was dispensed with while collecting over dues from the tenants. Notices were also issued to the tenants of the shops for payment of penalty and vacation of the shops vide Rc.No.132/2007/SA/6.11.2008, 404.08.2009, 29.04.10, 18.3.2011, 30.05.2011, 05.10.2011 and 18.10.11. Further the penalty dues were neither brought forward to the Arrear Demand Register of the next Financial year nor were the reasons for non collection explained. Apart from that, the defaulters are still being allowed to run their businesses in the shopping complex which speaks about the negligent attitude of the Executive towards collection of arrears of revenue. The inaction of authorities in invoking the penalty provision resulted in causing loss to a tune of Rs.38,300/- which needs to be recovered from the persons responsible. (Para No 20 of AR of Parvathipuram MP, Vizianagaram District for the year 2010-11 )

7.3 G.Ps. TIME BARRED TAXES /FEES Rs.31,48,282/-

As per Sec.61(3) of A.P. P.R. Act 1994 appropriate steps have to be taken for realisation of arrears of Taxes and Fees. As no effective steps were taken the taxes and fees became time barred and not realizable. The G.P. has to maintain a statement of such arrears year wise and the assessment wise/ward wise details of house taxes pending realization for 3 to 5 years shall be maintained in an Arrear Demand Register and taken to the notice of higher authorities, but no such register of time barred taxes and fees was maintained and produced to audit. As per Sec.135 of A.P. P.R. Act 1994 steps should be taken against the owner of the property by the Executive Authority for attachment or filing suit. But as the Panchayat Secretary failed to initiate any steps against the defaulters, he became liable for the loss occurred to the GP Funds. The details of the taxes/fees that became time barred are given below in respect of some of the Gram Panchayats and the amounts so time barred will have to be recovered from the persons responsible and remitted to the G.P. funds.

In the following cases loss caused to the GPs., due to non-taking of the action by the Executive Authorities in time as per rules.

# Name of the GP and District

Details of the fees/Taxes

Year of due

Amount due

Para No.

House Tax 2007-08 590427 Water Tap Fee 2007-08 193480 Road and margin places 2007-08 446572

1

Atmakur, Nellore

Buss stand stalls 2007-08 12064

3

House Tax 2007-08 883955 Water Tap Fee 2007-08 103920

2 Vinajmur, Nellore

Room rents 2007-08 10200

3

35

House Tax 2007-08 268771 3 Udayagiri, Nellore Water Tap Fee 2007-08 172755

3

4 Tada, Nellore House Tax 2007-08 95926 1 5 Kotapoluru, Nellore House Tax 2007-08 89793 1 6 Kottapatnam,

Nellore House Tax 2007-08 52097 1

7 Mallam, East Godavari

House Tax 2007-08 49729 1

8 Rajupalem, Nellore House Tax 2007.08 96151 1 9 Singarayakonda,

Nellore House Tax 2007-08 10184 3

House Tax 2007-08 65458 10 Karedu Prakasam Shopping complex rents 2009-10 6800

3

11 House Tax 2007-08 56179

Chowdepalli, Chittoor Tap Fee 2007-08 30130

2

12 House Tax 2007-08 281424

Kuppam, Chittoor Tap Fee 2007-08 44400

8

Total 3560415 7.4 GP- KUPPAM - CHITTOOR DISTRICT - GENERAL FUNDS – PENDING

WATER TAP FEE – NEED TO BE COLLECTED – Rs 3,66,000/-

As verified from the Demand Collection Balance statement of the water tap fee and Misc., Demand Register of the rent from Park Bunk and Shopping complex (Newpet), it is noticed that the following amounts were pending collection in GP Kuppam of Chittoor District at the end of March 31st. early action would need to be taken to collect the dues from the individual concerned and credit to GP Funds.

# Particulars Demand Collection Balance Para No. 1 Park Bunk Rent 315000 68000 247000 2 Shopping Complex 68400 8400 60000

10

3 Water tap fee 917400 551400 366000 9 Total 1300800 627800 673000

8. ADVANCES PENDING ADJUSTMENT

It was observed during the course of audit that temporary advances paid for

specific purpose were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the A.P. Financial Code. Non-settlement of advances leads 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. 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 (8) showing audit objections on Advances Pending is appended to the Report from which it could be seen that an amount of Rs.1752.31 lakhs was pointed out in 6852 audit paras.

36

A few examples in which the said advances are pending adjustment is shown below institution wise. 8.1 ZPs - ADVANCES PENDING RECOVERY

# District Purpose of Advance Amount Para 1 Visakhapatnam TA to Employees 1,48,400 5 2 Srikakulam TA to Employees 28,610 15 3 East Godavari Works and Contingencies 15,13,469 13 (1) 4 East Godavari Works under TFC 12,00,000 13 (4) 5 SPSR Nellore Elections, Furniture, TA & Stationary 7,51,640 7 6 Guntur TA, General Body Meeting & Prize

Money 2,15,000 5 (4)

7 Ananthapuram Elections 7,50,000 3 8 Adilabad Special Repairs to ZP Quarters 1,75,000 5 9 Mahaboobnagar HBA – Outstanding Amount 68,49,667 2 10 Nalgonda Repairs to Vehicle 35,000 14

8.2 MPs - ADVANCES PAID FOR VARIOUS WORKS – NOT ADJUSTED:

During the Audit, it was observed that in some of the following Mandal Parishads

certain amounts were drawn through various vouchers as advances and paid to the Mandal Engineering Officers for execution of different works but the said advances were not adjusted till the closure of audit though the instructions are clear that the advances drawn shall be got adjusted within 15 days from the drawl as per provisions in APFC Vol-I. Some of such cases are incorporated in the given table.

# District Mandal Parishad

Particulars Amount (in Rs) Para

1 East Godavari Ravulapalem Execution of Works 4,40,000 13 2 East Godavari Ravulapalem Execution of Works 3,50,000 14 3 East Godavari Pedapudi Execution of Works 70,000 12 4 East Godavari Sakhinetipalli Execution of Works 1,25,000 15 5 Adilabad Wnkidi Execution of Works 80,000 4

6 SPSR Nellore Rapur Sanitation during Brahmotsavalu

37,950 16

8.3 GPs. - ADVANCES PAID FOR EXECUTION OF WORKS PENDING

ADJUSTMENT AT THE CLOSE OF AUDIT.

# Name of the GP and District

Nature of Advance Amount (Rs.)

Para No.

1 Kothavalasa, Srikakulam Works under General Funds 101660 10 2 Chowdepalli, Chittoor Works under 12th FC 39128 3 3 Lebaka, Kadapa Works under 12th FC 125759 2, 3 & 5 4 L Kota, Vijayanagaram Works under General Funds 84000 2 & 5 5 Gajapathinagaram,

Vijayanagaram

Paid to Sarpanch 85940 6

37

Advances paid towards filling of wells, special sanitation and repair of internal roads.

110000

6 Ithamukkala, Prakasam Dist

NMR works 60000

2

7 Motumala , Prakasam Advance for formation of gravel road in the village.

75000

Advance for formation of gravel road in the village.

70000

Advance for formation of gravel road in the village.

120000

Advance for execution of works.

14000

2

Total 885487

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. 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 (9) showing audit objections on Violation of

Rules is appended to the Report from which it could be seen that an amount of Rs. 13306.81 lakhs was pointed out in 87648 audit paras

9.1 ZP- EAST GODAVARI DISTRICT- PURCHASE OF DUEL DESK-CUM-

BENCHES TO THE ZP HIGH SCHOOLS FROM WOMEN & CHILD WELFARE FUNDS – PURPOSE OF CALLING TENDERS DEFEATED – MAJOR IRREGULARITIES NOTICED – NEEDS ACTION – Rs.1,42,15,963/-

During the course of audit of Zilla Parishad, East Godavari District for the year 2010-11, as verified from the Cash Book of Women and Child Welfare Funds and other records, it was observed that an amount of Rs. 1,42,15,963/- was drawn through Voucher No 1/2-2011 and 2/3-2011 and paid to M/s Swathi Enterprises, Hyderabad and Jagruthi Engineers, Hyderabad for supply of Duel Desk cum Benches to ZPH Schools in East Godavari District. But the Zilla Parishad Authorities without getting it approved in the Annual Action Plan of W&CW funds for the year 2010-11 or without getting any consent from W& CW Authorities and getting Technical Sanction as required as per GO Ms No 27, W&CW (PROG) Department, dated 20.06.2003 from W&CW department called for tenders for purchase of the same.

The ZP Authorities approved the Tenders of both the firms i.e M/s Jagruthi

Engineers, Hyderabad who quoted Rs.4,131/- per desk and that of the other Tenderer

38

Swathi Engineers, Hyderabad who quoted Rs.4,185/- per desk which is against the Government Rules. The reasons for accepting both tenders at different rates were not recorded and produced to audit which is highly irregular. In addition to the above, the following Major Irregularities noticed in Audit:

1) Government constituted the District level Committee for purchasing furniture,

stationery etc., under the Chairmanship of Joint Collector, SE (PR), GM, Dist Industries Centre, DEO and Others as members. But in the present instance the Chief Executive Officer constituted a separate purchase committee under the Chairman ship of Chairperson, Zilla Parishad and SE (PR), DEO and CEO as members and purchased the furniture with the approval of the said committee which is violation of Government instructions.

2) Mobilization advances were sanctioned to the contractor against the agreement conditions and without supply of a single desk and without obtaining the surety and Bank guarantee.

3) The Furniture supplied by the Contractor was directly handed over to the concerned school Head Masters and installed in class rooms. The installation and quality of the supplied furniture according to agreement specifications was verified by the concerned Mandal Parishad Engineers. No third party Quality Control certificate was obtained by the authorities.

4) The statutory deductions like VAT and IT were not made from the bills as per agreement.

5) EMD and Security Deposits were also not collected from the Contractors.

In the entire issue of purchase, the authorities have grossly violated the Government rules in each and every aspect and made unnecessary favours to the contractors in the purchase. The authorities did not adhere to any of the Government Rules right from taking decision to purchase and installation and as such the matter needs to be thoroughly investigated.

(Para No 14(12) of Audit Report of ZP East Godavari District for the year 2010-11)

9.2 ZP - KARIMNAGAR DISTRICT - UNSPENT BALANCES UNDER SGRY

SCHEME PARTLY DEPOSITED IN FDRS – REMAINING BALANCES KEPT IDLE – NEEDS TO BE TRANSFERRED TO NREGS FUNDS – Rs.39,83,319/- During the course of audit on the accounts of Zilla Parishad, Karimnagar for the

year 2010-11, it was observed that the Heavy Balance of Rs.39,83,319/- was kept idle under SGRY Scheme.

According to Proceedings No.24011/46/2000/NFFWP/NREGA-1, Ministry of

Rural Development, Government of India, dated 20.03.2006, the entire balances under SGRY Scheme on 31st March 2006 shall be transferred to the NREGS account. But the Zilla Parishad Authorities have not transferred the amount despite the information given through the Letter No.141/A1/2011-12, dated 13.12.2011 of Asst. Audit Officer, State Audit (ZP),Karimnagar.

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Apart from that Rs.75,00,000/- was drawn vide proceedings of CEO, ZP, Karimnagar, D1/1325/10 dated 20.6.2010 vide Voucher No 01/20.06.2010 and kept as Short Term Deposit in Andhra Bank, Dharmaram Branch instead of transferring the amount to NREGS, investing in Short Term Deposits that to out side the Head Quarter is a clear violation of rules and norms. In this regard a letter was addressed to CEO, ZP, but the reason for investing FDR out side the Head Quarter was not explained to audit.

Further, it was observed in audit, that reconciliation was not done since many

years. Due to which there is a huge difference prevailing between Cash Book and Pass Book balances, which is also not rectified till to date even it is brought to the notice of Zilla Parishad Authorities vide letter mentioned above.

Therefore, the Zilla Parishad Authorities should take immediate action in this

regard to transfer the entire balances of SGRY funds including the amount invested in FDR along with interest earned to the MGNREGS account under intimation to audit other wise there is a chance of mis-utilization of funds

(Para No 6(ii) of Audit Report of ZP Karimnagar District for the year 2010-11 )

9.3 ZP- RANGAREDDY DISTRICT - UNSPENT BALANCES OF 11TH FC –

NOT REMITTED TO THE GOVERNMENT AND KEPT IN FDRS – HELD UNDER OBJECTION – RS 20,68,05,403/-

During the course of audit on the accounts of Zilla Parishad, Ranga Reddy

Districat for the year 2010-11, it was observed that the unspent balances of 11th Finance Commission Grants amounting to Rs.20,68,05,403/- have been kept in Fixed Deposits. The figure represents only the amount kept in Fixed Deposits and does not include the interest accrued in all these years. The Sanction and the Relevant Authority for keeping funds in Fixed Deposits have not been produced to audit. As per the recommendations of the Eleventh Finance Commission the grant amount should have been spent in the period 2000-2005 and Utilization Certificates for amount spent should have furnished to the Government. Diverting the unspent balances to Fixed Deposits in violation of guidelines and time frame is a disservice to the cause of development and inclusive growth.

The following defects have been noticed: There is no track of the interest amounts being accrued on the Fixed Deposits by

the Zilla Parishad leaving room for misappropriation of funds. The interest amounts are being used for holding the convention event for newly

elected Sarpanches and other such purposes which are not envisaged in the guidelines of the utilization of 11th FC. The objective with which funds were released under EFC has been defeated for

they have not been spent on the intended objective. Funds lying idle deny the Government to the extent, the benefit of utilization of these resources for alternative productive developmental activities.

(Para No 16 of Audit Report of ZP Ranga Reddy District for the year 2010-11 )

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9.4 MP - PARVATHIPURAM - VIZIANAGARAM DISTRICT - SHOPPING COMPLEX- LEASE PERIOD LAPSED- NOT REAUCTIONED OR RENT ENHANCED -OLD TENANTS CONTINUED - LOSS OF REVENUE –NEEDS ACTION

During the course of audit of Mandal Parishad, Parvathipuram Vizianagaram

District for the year 2010-2011, on verification of the files and records relating to Mandal Parishad shopping complex, it was noticed that though the period of agreement of the shops for rent was over by 30-04-2006 to the old shops and by 08-11-2009 to the new shops, the same tenants were continued without enhancing the existing rent. As per the rules the shops shall have to be either re-auctioned or continued with the same tenants duly enhancing the rent by 1/3rd of the existing rent after collecting the arrears of rent along with penalty, but the same was not done in the instant case which is irregular and violation of rules and as a result of which the Mandal Parishad suffered loss.

(Para No 8 of AR of Parvathipuram MP, Vizianagaram District for the year 2010-11)

9.5 MP – RAYAVARAM - VISAKHAPATNAM DISTRICT - ERRONEOUS

RECORDING OF AMOUNTS IN SUB-TREASURY PASS BOOKS OF GENERAL FUNDS – NEEDS ACTION - Rs.90,240/-

During the course of verification of the General funds Cash Book and Treasury

Pass Books, it was noticed that 12th finance & 13th Finance Commission grant cheque amounts were erroneously booked as expenditure in General Funds Sub- Treasury Pass Books even though separate Cash Book & Pass Books were being maintained by the Mandal Parishad in respect of General Funds, 12th FC & 13th FC funds. As a result, expenditure was booked double in Sub –Treasury Pass books amounting to a tune of Rs. 90,240 /- which is highly irregular as shown below and needs rectification.

# Particulars Amount

Erroneously posted in GF Sub-Treasury

Pass Book 1 Cheque No 1662 dated 12.04.2010 for Rs 22,560/- was

issued in respect of 12th FC funds but the expenditure was booked in both ST Pass Books of 12th FC and General Funds in April 2010

22,560

2 Cheque No 2913 dated 21.03.2011 was issued for Rs 22,560/- in respect of 13th FC funds but expenditure was booked in both ST Pass Books of 13th FC and General Funds in March 2011

22,560

3 Cheque No 1669 dated 19.06.2010 was issued in respect of 12th FC funds but expenditure was booked in both ST Pass Books of 12th FC and General Funds in June 2011

45,120

Total 90,240

(Para No 7 (2) of AR of S Rayavaram MP, Visakhapatnam District for the year 2010-11)

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9.6 G.P - GORANTLA - GUNTUR DISTRICT – PAYMENT OF ELECTRICITY CHARGES TO THE DISTRICT PANCHAYAT OFFICE FROM THE GP FUNDS NOT REIMBURSED IRREGULAR.- NEEDS REIMBURSMENT Rs.21,635/-

During the scrutiny of expenditure in audit it was noticed that in Vr.No.15, dt.5-6-2010 an amount of Rs.21,635/- was spent towards the C.C. charges of O/o. the DPO, Guntur and toner charges as per the procgs. Of the DPO in Roc.No.1557/09/G7, dt.14-5-2010 on reimbursement basis. G.P. Funds cannot be diverted for other than the stated objectives as per A.P.P.R. Act 1994. Hence diversion of G.P. funds itself was against the provisions of the statute and not getting reimbursement by the date of audit was objected in audit. The correctness of the expenditure incurred could not be verified in audit as the receipt obtained from the Office of the DPO, Guntur were also not produced to audit. Hence the competent authority shall take immediate steps for realization of the said amount from the concerned.

(Para No16 of Gorantla Gram Panchayat Guntur District for the year 2010-11 )

9.7 G.P. - VINJAMURU - NELLORE DISTRICT – ADMINISTRATIVE EXPENSES NOT IN ACCORDANCE WITH THE GOVERNMENT RULES- POST SANCTIONED ORDERS NOT PRODUCED FOR AUDIT. Rs.6,13,481/-

As per Sec.77 of A.P. P.R. Act 1994 not more than 30% of revenue income shall

be spent on the salaries of the staff working in a Gram Panchayat. But contrary to the above provision an amount of Rs.6,13,481/- was spent in excess of the said percentage towards salaries of the staff and hence the excess expenditure of Rs.6,13,481/- could not be admitted in audit. Further the post sanction orders also were not produced to audit. (Rs.)

Normal income of the GP for the year 2010-11 ( Salary Grants, other mineral grants) except advances and deposits

3124692

(-) Administrative expenditure 1. Pay and allowances of the staff 118982 2. Pay and allowance to the sanitation staff 1088507 3. Pay and allowance to the Electrical staff 92600 4. Part-time and contract PWS staff salary 250800

Total expenditure 1550889 30% of total income 937408

Excess paid 613481 No orders of Higher Authorities permitting Gram Panchayat to incur such

expenditure have been produced. (Para No 7 of Vinjamur GP SPSR Nellore District for the year 2010-11 )

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9.8. G.P - SARDARNAGAR - RANGAREDDY DISTRICT - PAYMENT OF SALARIES WITHOUT POST SANCTIONED ORDERS – VIOLATION OF RULES RS. 2,21,700/-

According to Section 36(1) of the AP PR Act 1994 read with G.O.No.153, dated.15-03-1974, the posts of the Part Time Sanitary Workers, Water Supply Staff, Attenders and Electrical Staff shall be appointed by the Dist. Panchayat Officer concerned district . In the following cases payment were made but sanction orders and resolution of the said Gram Panchayat for such expenditure as prescribed in the rules were not produced Therefore, it is construed that the said staff were appointed without orders of Competent Authority and resolution of Gram Panchayat. Therefore the expenditure as detailed below is held under objection.

# Name of the employee and designation

Period for which payment is made

Amount paid

1 Electrician/ NMR/Contract 2010-11 42000 2 NMR sweepers 2010-11 179700 Total 221700

(Para No 9 of Sardhar Nagar GP Rangareddy District for the year 2010-11 )

10. NON REMITTANCE OF DEDUCTION RECOVERIES FROM

WORK BILLS / PAY BILLS / CONTINGENT BILLS ETC., It was noticed during audit that various deductions / recoveries effected from the

Work bills / Pay bills were either not remitted to Government or a part of them only were remitted in spite of statutory obligation to remit the same to Government account with in a prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non adherence.

The deductions normally made from Work bills /Pay bills that are to be remitted

to Government account are

Work Bills 1. Income Tax 2. Sales Tax 3. Seigniorage Fees

Pay Bills 1. Income Tax 2. Profession Tax 3. G.P.F. 4. G.I.S Premium.

These defects noticed were pointed out in the Audit Reports. A Consolidated Statement No. 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.2831.12 lakhs was pointed out in 28749 audit paras.

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10.1 ZP – ADILABAD DISTRICT - RECOVERIES MADE FROM THE WORK BILLS – NOT REMITTED TO THE CONCERNED HEAD OF ACCOUNT – IRREGULAR – Rs. 1,09,060/- During the course of audit on the accounts of Zilla Parishad, Adilabad district, it

was observed that an amount of Rs 1,09,060/- has been deducted from various Works Bills of works executed under ZP, General Funds in PR Sub-Division Nirmal towards Statutory Deduction such as Income Tax, Value Added Tax etc., But the same amounts were not remitted to the Heads of Account concerned. The details are as follows

# Nature of Recovery Amount Deducted but not

remitted (in Rs) 1 Value Added Tax 37,212 2 Income Tax 41,385 3 Seigniorage Charges 9,872 4 NAC 3,409 5 Quality Control 5,489 6 Labor Cess 11,693

Total 1,09,060 Immediate action would need to be taken to remit the amounts to the concerned

Heads of Account immediately and fact intimated to audit

(Para No 10 of Audit Report of ZP Adilabad District for the year 2010-11 )

10.2 ZP - KHAMMAM DISTRICT - HBA INSTALMENTS – PARTLY REMITTED TO GOVERNMENT – IRREGULAR – NEEDS ACTION – Rs. 28,10,759/- During the course of audit on the accounts of Zilla Parishad, Khammam District

for the year 2010-11, it was observed that the Government has released Rs.1,01,40,000/- to Zilla Parishad, Khammam from 21.03.1990 to 04.04.2002 towards HBA to the Non-Teaching Staff of ZP/MP from State Funds. As per Para 2 (2) of GO Ms No 685 PR&RD (Accts-I) Department dated 28.12.1989, the Zilla Parishad has to pay the loan amount along with interest @ 8.5% P.A. in 10 equal yearly installments to Government. Accordingly, the Zilla Parishad, Khammam has to pay Rs.97,15,836/- and Rs. 53,58,938/- principle and interest respectively to Government up to March 2011. Out of which the principle amount of Rs.88,66,142/- and interest amount of Rs.33,97,873/- was only paid to Government with a short fall of Rs. 28,10,759/- and further no amount was remitted to Government during the year under audit which is irregular and contrary to the Rules.

Therefore, the Zilla Parishad authorities would need to recover the HBA Loan

installments due from their employees and remit to the Government under intimation to audit.

(Para No 6 of Audit Report of ZP, Khammam District for the year 2010-11 )

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10.3 ZPs - NON-DEDUCTION/NON-REMITTANCE OF THE RECOVERIES FROM THE WORK BILLS DURING THE YEAR 2010-11- Rs.40,82,970/-

During the year under report, the following Zilla Parishads have not effected the

recoveries. In some cases recovered amount was not remitted to the concerned Government account/partially remitted were exemplified hereunder.

# Name of the ZP Income

Tax Seigniora

ge Ccharges

Quality Control

VAT NAC Total

1 Srikakulam 403695 421343 134226 460078 33958 1453300

2 Ongole 411120 699691 100994 1146930 270935 2629670

Total 814815 1121034 235220 1607008 304893 4082970

Non- deducting of such items like IT, QC, VAT and SC charges from the Work Bills are major portion under this category. Some cases the above deductions were not made some cases deducted amount was not remitted to Head of Account concerned and some cases part amount was remitted and keeping part amount in the Institution. Such few cases in the Mandals (District wise) are exemplified here under.

Amount in Rs.

Sl. No.

Name of the District

Income Tax

Quality Control VAT Seigniorage

Ccharges Total

1 Srikakulam 142171 22636 119060 181960 465827 2 Ranga Reddy 1092062 70780 2544912 1689581 5397335

3 Prakasam 291744 650212 839732 5651600 7433288 4 Vijayanagaram 74049 31317 254918 557892 918176 5 Kadapa 58029 20512 78432 133711 290684

Total 1658055 795457 3837054 8214744 14505310

10.4 GPs - EXECUTION OF WORKS – NON-REMITTANCE OF QUALITY CONTROL CHARGES, SEIGNIORAGE CHARGES AND VALUE ADDING TAX TO THE CONNECTED HEAD OF ACCOUNT – NEEDS ACTION. Rs.1,06,222/- According to G.O.Ms.No.217 Industries & Commerce (M-I) Dept., Dt:29.09.2004

Seigniorage charge, accordance with G.O.Ms.No.11 Fin (W&P) F-8 Dept., Dt:29.07.2005 Value addition tax (VAT) and according to G.O.Ms.No.159 R & B(R-III) Dept., Dt:30.10.2004 CMRF & NAC should be deducted from every Work Bill and to be remitted to the concerned Head of Account. But, during the course of audit of the Gram Panchayts for the year 2010-11, it was noticed that the deducted amount was not remitted to the concerned Head of Account. Some such cases are given in the table for example.

45

# Name of the GP and District Nature of

deductions

Amount deducted

Rs.

Amount remitted Rs.

Amount to be

remitted Rs.

Para No.

1 Akkarapaka, Nellore

Seigniorage charge 2954 - 2954 5(ఎ)

VAT 2809 - 2809 Seigniorage charge 7822 - 7822

2 Vinajamuru, Nellore

Quality control charges

250 - 250

9

3 Polireddipalem, Nellore

Seigniorage charge 36117 - 36117 8

4 Kottapatnam, Nellore


5 Atmakuru, Nellore


6 Chevella, Rangareddy

Seigniorage charge 2669 --- 2669-00 10

Total 106222 106222 10.5 GPs., - LIBRARAY CESS – NON-REMITTANCE OF LIBRARY CESS TO

THE ZILLA GRANDHALAYA SAMSTHAS IRREGULAR. Rs. 12,85,391/-

Under Section 61 of APPR Act 1994 and Section 20 of the ZP Libraries Act 1960 Library Cess at 8% on the House tax should be collected, and the same should be remitted to the Zilla Grandhalaya Samsthas as per G.O.Ms.No.15, Education, dated 27.07.75 & G.O.Ms.No.391, Education (A&L) dated :28.10.1994 at the end of the same month. But, during the course of audit of Gram Panchayats for the year 2010-11, it was noticed that the Library Cess collected and not remitted to the Zilla Grandhalaya Samsthas. Some such cases are detailed below.

# Name of the GP and District Library

cess to be remitted

Library cases

actually remitted

Balance of Library cess to

be remitted

Para No.

1 Atmakuru, Nellore 97584 nil 97584 10 2 Vinajmuru, Nellore 83681 nil 83681 10 3 Shankar palli, Rangareddy 74516 nil 74516 9

4 Shamshabad, Rangareddy 348472 nil 348472 25

5 Pandillapalli,Prakasam 51292 nil 51292 10 6 Ponakal, Warangal 21722 nil 21722 03 7 Borpatla, Medak 69808 nil 69808 03 8 Chandapur, Medak 13486 nil 13486 06 9 Gundlamanchanur, Medak 108802 nil 108802 05 10 Rashamylaram,Medak 202241 nil 202241 05 11 Domadugu, Medak 98587 nil 98587 07 12 Pedathanda,Khammam 81974 nil 81974 04 13 Kollapur, Mahaboobnagar 33226 nil 33226 10 Total 1285391 1285391

Action would need to be taken to remit the same to the concerned Head of Account immediately.

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11. NON-PRODUCTION OF RECORDS

The Panchayath Raj Bodies provide certain basic civic infrastructure and services

like Road, Drain, Street lights water Supply Conservancy and Solid waste management. They also perform certain regulatory functions. They also prepare plans for economic development and social justice. To fulfill all the desires and needs the total revenue base needs to be enhanced every year. With the 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 have to be produced to Audit for verification. Then only the transparency in incurring of public money and their utility to the General Public can be reasonably judged.

Such as important function on the part of the Drawing and Disbursing Officers of

all the Local Bodies and Urban Bodies in the maintenance and production of records to audit are not properly being maintained. Thereby the main access to clear the doubt of transparency in public expenditure have not been availed. In spite of all these guidelines and instructions the Drawing and Disbursing Officers of all Local and Urban Bodies have failed to maintain the records and to produce the same to audit, when ever the local teams visited their institutions. Under the category of non – production of records to audit, the major part is in works and the related records such as M. Book, Estimate file, Tenders etc. The others are non production of Vouchers along with the related files and registers. The paras on Non Production of records have been drawn from the individual Audit Reports of the concerned institution and their details are furnished here under. Further, it is surprise to note that the Heads of the Institutions could not explain why the records could not be maintained in the Office and can be produced when ever they are being demanded by the audit parties and other agencies during their local visits.

The Financial health of an Institution depends upon 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 Audit Reports of the concerned Institutions. Records like M. Books, connected files, Vouchers in which crores of rupees transacted in many institutions from 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 from part under this category. Though several Half -Margin letters issued for production of the required records, the Executive Authorities did not comply with, which resulted in inaccessibility to the records and raising of paras to that extent.

47

A Consolidated Statement No. 9 (11) of showing audit objections on Non-Production of records is appended to this Report from which it could be seen that an amount of Rs.14554..55 was pointed out in 46578 audit paras.

A few of the paras raised in Audit Reports for the year 2010-11, categorized

accordingly and tabulated as shown below. 11.1 ZPs – NON PRODUCTION OF RECORDS TO AUDIT FOR

VERIFICATION

An important function on the part of the Drawing and Disbursing Officers of all the Local Bodies is 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. 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 files, Tenders etc. The others are non production of Vouchers along with the related files and registers. As per Rule 6 of A.P. State Audit Rules, 2000, 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.

Some such cases are given in the below table as an example.

# District Nature of Work Amount (Rs.)

1 Ananthapuram Statue of YSR 1250000 2 Ananthapuram Contingency Charges for Sakshara Barathi Prog 45070 3 East Godavari Expenditure of Interest on FDRs of Sand Auction 6263647 4 East Godavari Execution of Works Dy EE PR Jaggampeta 3133868 5 East Godavari Payment of Pensions 699932 6 East Godavari Execution of Works 119246 7 East Godavari Execution of Works Dy EE PR Peddapuram 532775

8 East Godavari Execution of Works under SGRY EE PR Amalapuram 794123

9 East Godavari Execution of Works Dy EE PR P Gannavaram 2711699 10 East Godavari Execution of Works Dy EE RWS P Gannavaram 1297604 11 East Godavari Execution of Works Dy EE PR Biccavolu 1414085

12 East Godavari Execution of Works Dy EE PR Rampachodavaram 2463389

13 East Godavari Execution of Works Dy EE PR Kakinada 5768016 14 East Godavari Execution of Works Dy PR Mandapeta 464433 15 East Godavari Execution of Works Dy EE PR Rajahmundry 1062828 16 East Godavari Execution of Works Dy EE PR Prathipadu 921837 17 East Godavari Encashment of Surrender Leave 106462 18 East Godavari Execution of Works Dy EE RWS Peddapuram 570792 19 East Godavari Execution of Works DyEE RWS Kakinada 1411301 20 East Godavari Execution of Works DyEE RWS Razole 3878073 21 East Godavari Execution of Works DyEE PR Mummidivaram 1108678

48

22 East Godavari Execution of Works DyEE PR Amalapuram 2931576 23 East Godavari Execution of Works DyEE PR Kothapeta 2349531 24 East Godavari Deposit Certificate of Sand Share Fund 100000000 25 Krishna Purchase of Stationary 386179 26 Karimnagar Adjustments of HBA 322717 27 YSR Kadapa Praja Prathinidhula Sammelanamu 149730 28 YSR Kadapa Ear-Marked Funds 14376831 29 YSR Kadapa Execution of Works under TFC 4190073 30 YSR Kadapa POL Charges 55165 31 YSR Kadapa Execution of Works under 35% General Fund 497135 32 YSR Kadapa O&M 131734 33 Mahaboobnagar Execution of Works under SFC Grants 8611192 34 Visakhapatnam Execution of Works 36053838 35 Visakhapatnam Execution of Works under TFC (12th & 13th) 70316173 36 Visakhapatnam Execution of Works (ZP General Funds) 2912655 37 Visakhapatnam Execution of Works (12th FC Funds) 1701583

Total 110984249 11.2 MPs., - EXPENDITURE INCURRED ON VARIOUS ITEMS –

CONNECTED RECORDS NOT PRODUCED - IRREGULAR During the course of audit on the accounts of the following Mandal Parishads,

though requested, the Executive Authorities have not produced the record relating to various items of expenditure incurred by the Mandal Parishads as shown against them. As a result of such non production, these items were kept out of audit scrutiny and as such the authenticity of the expenditure incurred could not be established in audit.

# District Mandal

Parishad Particulars Amount invo

lved (in Rs) Para No.

1 Visakhapatnam Munagapaka Remittances of Deductions

2,25,233 6(4)

2 Visakhapatnam Koyyuru Contingent Expenditure 2,60,933 11(10)

3 Adilabad Kowtala Contingent Expenditure 47,396 5

4 Adilabad Sirpur M Books & Files 81,629 6

5 YSR Kadapa Porumamilla M Books & Files 4,84,299 11

6 YSR Kadapa Porumamilla M Books & Files 1,61,231 8

7 YSR Kadapa Kalasapadu M Books & Files 50,090 5

8 Srikakulam Veeraghattam Remittances of EMF 97,796 35

9 East Godavari Y Ramavaram Contingent Expenditure 1,10,620 20

49

11.3 MP – RAPUR - NELLORE DISTRICT - PURCHASE OF BORE WELL MATERIAL- QUOTATIONS NOT CALLED FOR – CONNECTED FILES, STOCK REGISTER NOT PRODUCED - Rs 3,93,880/-

During the year under audit an aggregate amount of Rs 3,93,880/- as detailed in

the table was debited to Cash Book towards purchase of bore well material from Vinayaka Industries, Hyderabad. The connected file, Stock Register and Register of bore wells were not produced to audit. In absence of the above records, the following details cannot be checked in audit.

1) No of Bore Wells in the Mandal. 2) Estimate prepared for Bore well materials. 3) Approval of General Body. 4) Whether stock received in Good conditions. 5) Complaints received for repairs. 6) Stock issued accordingly. 7) Balances at the end of the Financial year under certification of the Authority

concerned. 8) Stock physical verification certificate of MPDO. 9) Whether the procedure required to be followed for purchases was followed or not.

In view of non-furnishing of the above records the correctness of the expenditure

incurred cannot be ensured in audit. Date Particulars Amount (in Rs)

29.04.2010 Paid to Sri Vinayaka Industries Hyderabad for supply of Bore well Spare parts to MPP

2,56,189

29.04.2010 Paid to Sri Vinayaka Industries Hyderabad for supply of Bore well Spare parts to MPP

1,37,691

Total 3,93,880

(Para No 24 of AR of Rapur MP, SPSR Nellore District for the year 2010-11) 11.4 GPs - EXPENDITURE INCURRED ON VARIOUS CONTINGENCIES –

VOUCHERS, BILLS & RECEIPTS NOT FURNISHED TO AUDIT. As per instructions of Sub Section 2 (11) of Sec. 268 of A.P. P.R Act, 1994 read

with G.O. Ms. No. 496 PR & RD dept., dated 11-6-1996, for any expenditure incurred by the Gram Panchayat, connected Vouchers, Bills and Records have to be maintained. But in respect of the purchases made as detailed below in the Gram Panchayats, mentioned, the connected Tender files/Quotation files, Vouchers bills, Stock registers etc., were not produced and as such the correctness could not be scrutinized in audit and as such the expenditure is held under objection.

# District GP Particulars Amount Para 1 Krishna Atchavaram Contingencies 2,22,900 31 2 Krishna Pandiripalligudem Contingencies 80,980 31 3 Krishna Gummallapadu Contingencies 33,472 31 4 Krishna Gandepalle Electrical Goods 88,323 9 5 West Godavari Nallapadu Contingencies 97,000 13 6 West Godavari Thatiyakulagudem Contingencies 52,300 25

50

Electrical Spare parts 6,33,100 3 7 YSR Kadapa Mylapalli Contingencies 15,719 11

8 YSR Kadapa Rachagudipalli Contingencies 29,000 10 9 SPSR Nellore Budawada Electrical Spares and

PH Articles 32,000 9

10 SPSR Nellore Potupalem Electrical Spares and PH Articles

2,25,010 11

Total 15,09,804 11.5 GPs., - WORKS – ESTIMATES, M. BOOKS Etc – NOT PRODUCED.

During the course of audit, the Paid Vouchers, Estimates, Agreements and

connected Measurement Books pertaining to works executed in various Gram Panchayats as detailed below were not made available for verification in audit to certify the genuineness of expenditure incurred.

The connected Measurement Books as prescribed in the paras 290 to 298 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code, volume-I, would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. In the absence of the connected Measurement Books as prescribed above, detailed designs and estimates as prescribed vide para No.173 of A.P. P.W.D. code and completion report as specified vide Articles 181 of A.P. Financial Code Vol-I as para 216-218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit.

# District GP Particulars Amount Para

1 West Godavari Vipparru Maintenance of Filter Beds

44000 2

2 West Godavari Vipparru Motor Repairs 80500 2 3 YSR Kadapa Mydukuru Execution of Works 65120 21 4 East Godavari Kapavaram Execution of Works 162966 11 5 East Godavari Katrenikona Execution of Works 114959 22 6 YSR Kadapa Kunda Nellore CC Road 141195 9 7 SPSR Nellore Annamedu Execution of Works 475000 7 8 SPSR Nellore Gaddagunta Execution of Works 390000 5 9 SPSR Nellore Gandipalem Execution of Works 373429 10 10 SPSR Nellore Menakuru Execution of Works 299970 10 11 SPSR Nellore Kaluvakunta Ratchbanda Works 299294 5 12 SPSR Nellore Kotapoluru Road Works 220000 9 13 SPSR Nellore Jammanavaram Pipeline Repairs 49714 21 14 SPSR Nellore Budawada Motor Repairs 28500 9(a) 15 SPSR Nellore Kothapoluru Pipeline Repairs 125000 14 16 SPSR Nellore Kumbalapalli Culvert Works 57000 16 17 SPSR Nellore Sankranthipalli Extension of Pipelines 42754 16 18 Prakasham SN Padu Execution of Works 944588 17 19 Prakasham Ilapavuluru Sanitation Works 23550 20 Total 3937539

51

11.6 GP - ALLURU - PRAKASAM DISTRICT –GENERAL FUNDS - COLLECTION OF LAYOUT PERMISSION FEE – CONNECTED RECORDS NOT PRODUCED FOR AUDIT – Rs.3,91,764/-.

During the scrutiny of receipts of General funds for the year 2010-11 it was noticed that the following amounts have been realized towards layout fees as could be verified from the cash book and treasury pass book.

Challa No./Date Amount in Rs. 6015/29-4-2010 130588/- 6016/29-4-2010 261176/-

Total 391764/- The following rules are to be observe for giving permission of layouts in a G.P. as per Sec.121 of A.P.P.R. Act 1994 and G.O.Ms.No.67, dt.26-06-2002 1) Land conversion orders from Revenue Authorities shall be obtained duly

converting the Agricultural lands to residential before sending proposals for layout.

2) The layout plan, site plan and the title deeds etc., ought to be enclosed by any individual or entity to the application for permission of the Secretary Panchayat.

3) In every proposed layout plan the conditions relating to public utilities and community utilities shall be observe.

4) Prior permission of town planning department is a must 5) Every application has to be either given permission or rejected with or

without amendments by the Secretary Panchayat within 90 days of submitting application.

6) 10% of fee shall be paid towards extension of the period for a permitted layout after two years

As the connected records pertaining to the layouts were not produced to audit it

was not positive verify whether the above conditions were complied with or not before according permission for the layouts. And as such loss if any occurred to the G.P. funds should not be ascertained in audit.

(Para No.5 of Alluru G.P. Kothapatnam (M) Prakasam District for the year 2010-11)

12. MIS-APPROPRIATIONS

Cases of misappropriation of money noticed in audit were pointed out in the Audit

Reports concerned. A consolidated statement of audit objections on Misappropriations noticed in audit is annexed vide Statement No 9 (12). A total number of 780 cases involving an amount of Rs. 239.41 lakhs were pointed out in the relevant Audit Reports. To illustrate the various types of modus operandi, a few of the cases pointed out are reproduced below.

52

12.1MP - MANDAPETA - EAST GODAVARI DISTRICT - AMOUNT COLLECTED THROUGH MISCELLANIOUS RECEIPTS NOT TAKEN INTO CASH BOOK & PASS BOOK-NEEDS –RECOVERY - Rs.88,000/-

As seen from the Miscellaneous Receipt book, it was noticed that an amount of Rs.88,000/- was collected towards sale of material of old MP Elementary School building auction, but no amount was taken into Cash Book and not remitted to the PD a/c of MP Funds. Thus, the amount collected as detailed below was construed as misappropriated.

Vr. NO & dt Particulars Amount 82505/2.2.11 A. Venkateswara Rao,R.A. 78000 82506/2.2.11 P. Srinivasa Rao,N.M.R. Engineering section 10000

Total 88000 Hence, action would need to be taken to conduct the enquiry in this matter and recover the amount misappropriated from the MPDO concerned and credited to the General Funds.

(Para No. 16 of MP Mandapeta of East Godavari District for the year 2010-11)

12.2 MP - IBRAHIMPATNAM- RANGAREDDY DISTRICT - TFC FUNDS- PURCHASE OF HAND PUMP MATERIAL OTHER REPAIRS AND HIRE CHARGES – RECORDS NOT AVAILABLE - MIS-APROPRIATION - Rs 1,21,300/- An amount of Rs.1,21,300/- was drawn from TFC Funds vide Voucher No 42/

02.09.2010 and spent towards purchase of hand pump material and other repairs, hire charges etc ., but no record relating to technical sanction by the Engineering authorities or Stock Register to show the receipt of stock of the material purchased etc., were produced to audit. In the absence of any evidence of record for incurring the expenditure, it is construed that the amount has been misappropriated which needs to be recovered.

(Para 16 of AR of Ibrahimpatnam MP, Ranga Reddy District for the year 2010-11 )

12.3 MP - ALLADURG - MEDAK DISTRICT - CHEQUE DEBITED IN TFC

FUND AND GENERAL FUND ACCOUNT -MISAPPROPRIATED - NEEDS RECOVERY - RS.94,365/-

In Vr.No. 1/ 31.3.2011,dt. Nil- Rs.94,365/- and Chq. No.000679/31.3.2011 was

drawn and paid to Sri. Balaji Enterprise, Hyderabad towards supply of Hand pump spare parts to MP, from TFC Funds. But on verification of the General Fund Cash Book ,it was found that an amount of Rs.94,365/- was again drawn from General fund account vide Vr.No. 173/31.3.2011 and Chq. No.000679/31.3.2011 towards purchase of Hand Pump Spare parts. In view of the above one work taken up in single time i.e. purchase of hand pump to Mandal Parishad but the payment was shown in 2 heads and misaapropriated Rs.94,365/-. Therefore immediate action would need to be taken to recover the said amount of Rs.94,365/- from the person responsible

(Para No.1 of MP Alladurg, Medak District for the year 2010-11 )

53

12.4. MP – VENKATAPURAM - KHAMMAM DISTRICT – MIS-APPROPRIATION OF FUNDS - NEEDS ACTION Rs.1,25,825/-

During the Course of audit of MP Venkatapuram for the year 2010-11, it was noticed that the following amounts were drawn from General fund treasury a/c by the MPDO, MP.Venkatapuram through Self cheques. Sri SK.Nagulmeeravali, the then Superintendent, was authorized to draw the amount from Treasury and disburse among the persons for the amount sanctioned for various purposes (as shown in below table) and to pay the amount for office electrical bills. But, the amounts were not disbursed by him among the persons and also not paid to the electricity department towards office electrical charges. He neither disbursed / remitted the amount nor refunded to the General Fund account. On verification of the concerned Acquaintance Register, it is observed that the persons who were sanctioned the amount for various purposes are not acknowledged the same in receipt of the same. The office electrical bill also not paid to the Electricity department and the amount was repeated in the next bill which was paid by the Mandal authorities. The person who was drawn the amount from the Treasury was misappropriated the amount duly violating all the rules. Therefore immediate action would need to be taken to recover the amount from the above person and remitted to the General Funds besides initiating disciplinary action under CCA rules.

The MPDO Venkatapuram as a Drawing and Disbursing Officer has not verified, reconciled and closed the accounts day wise. As per Article 5 of AP Financial Code-I every Government Servant should see that proper accounts are maintained for all Government Financial transactions with which he is concerned and render accurately and promptly all such accounts and returns relating to them as are prescribed. He should check the accounts as frequently as possible in order to see that his subordinates do not commit fraud due to any neglect of the duties laid upon him by the provisions of the Financial Code. The fact that a Government Servant has been mislead are deceived by a Subordinate will in no way mitigate his personal responsibility, since every Government Servant should be familiar with the Financial Rules and exercise a specially strict and close control over his subordinates in regard to the use of public funds and the maintenances of proper accounts and as per Sub-Rule 3 of Treasury Rule, 10 it is compulsory to maintain the Cash Book for an account/fund and as per Article 294 in AP Financial Code the account/fund should be reconciled. But the Drawing and Disbursing Officer failed to verify either the Cash Book and also failed to reconcile the account/fund due to which the misappropriation was taken place.

(Para No. 11 of MPP Venkatapuram of Khammam District for the year 2010-11)

# Vr.No / Date Chq.No & Date Purpose of Bill Amount (Rs.)

1 15 / 21-09-2011 1227 /21-09-2011 Office Electrical charges 7419

2 14 / 21-09-2011 1227 / 21-09-2011 MPTC Hanororium to Smt P.Shanta (10/09 to 3/10) 4500

3 19 / 04-10-2011 1228 / 04-10-2011 MPTC Hanororium (4/10 to 6/10) @RS 2250X8 18000

4 22 / 04-10-2011 1228 / 04-10-2011 TA to Staff (9/10) 1400

5 26 / 14-10-2011 1229 / 14-10-2011 Jeep Hire Charges (11/09 to 6/10) 35000

6 25 / 14-10-2011 1229 / 14-10-2011 FA & EA to Staff 32000 7 27 / 14-10-2011 1229 / 14-10-2011 Office Electrical charges 27506

Total:- 125825

54

12.5 GPs - KADAPA DISTRICT - AMOUNT DRAWN – EXPENDITURE DETAILS NOT PRODUCED FOR AUDIT – AMOUNT MIS-APPROPIRATED – NEEDS RECOVERY – Rs.1,87,670/-

The following amounts were drawn from the Treasury concerned through the

following Cheque Nos., but the details of expenditure was not produced for audit to certify the correctness of the expenditure incurred. Therefore, the amounts were construed as misappropriated.

# Name of the GP Nature of

Grant Cheque No &

Date Amount Drawn from Treasury (Rs.)

Para No.

1 Rachagudipallli, kadapa

13th Finance 000218/26.11.2010 35000 2

2 ,, 13th Finance 000221/09.12.2010 12000 ,, 3 ,, 13th Finance 000220/06.11.2010 28000 ,, 4 Pennaperuru,

Kadapa General fund 000285/20.7.2010 10000 8

5 ,, 000289/15.9.2010 12000 .. 6 ,, 000293/12.11.2010 3800 .. 7 Pennaperuru,

Kadapa 13th Finance 000290/2.12.2010 37500 2

8 ,, 13th Finance 000291/2.12.2010 37500 ,, 9 ,, 13th Finance 000287/20.9.2010 5750 ,, 10 ,, 12th Finance 000286/31-8-2010 6120 ,, Total 187670

12.6 GP - KOTTAPATNAM - PRAKASAM DISTRICT – DETAILS OF

EXPENDITURE NOT NOTED IN THE CASH BOOK. During the course of audit of Kottaptnam GP of Prakasam Distinct for the year 2010-11, it was noticed that a sum of Rs.3,03,488/- and Rs.3,98,580/- were drawn from the General Funds but the expenditure details was produced only for Rs.1,06,512/-. Therefore, a sum of Rs.7,02.068/- was construed as misappropriated and held under objection. Early action would need to be taken to recover the same from the person or persons responsible and to be remitted to the GP funds.

(Para Nos. 19 and 20 of the AR of Kottapatnam GP of Prakasam District 2010-11) 12.7. GPs - COLLECTION OF HOUSE TAX AND MISC.RECEIPTS NOT

REMITTED TO PANCHAYAT FUNDS – MISAPPROPRIATION-Rs.6,68,951/-.

During the course of audit of Gram Panchayats for the year 2010-11, it

was noticed that House tax and other misc., receipts were collected and not remitted to the concerned funds in the Gram Panchayts mentioned below. Therefore, it is construed as misappropriated.

55

# Name of the GP Nature of Collection Amount collected but not retemitted. (Rs.)

Para No.

1 Kosigi GP, Mahabubnagar Dist HT & Misc.Collection 193583 26 2 Rajoli GP of Mahabubnagar

Dist HT & Misc Collection 45612 11

3 Waddepalle GP Mahabubnagar Dist

HT & Misc Collection 49632 21

4 Atmakur, Mahabubnagar Dist HT & Misc Collection 17861 21 5 IEEJA, Mahabubnagar Dist HT & Misc Collection 306801 20 6 Kottakota, Mahabubnagar Dist Misc Collection 42062 22 7 Sardhar nagar,RR.District BP&HT collection 13400 Total 668951

Early action would need to be taken to get it remitted to the concerned Gram Panchayts duly recovering from the persons responsible besides taking disciplinary action.

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 No. 9 (13) 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.290.97 lakhs was pointed out in 1532 audit paras.

13.1 ZP – VIZIANAGARAM DISTRICT - RSVY WORKS – PRICE

ADJUSTMENT OF CEMENT AND STEEL – NOT OBSERVED – Rs.22,96,029/-

During the course of audit of accounts of Zilla Parishad, Vizianagaram for the year 2010-2011, it was noticed that the work “Construction of Causeway across Gomukhi river at Dabbagedda” was Administratively sanctioned under RSVY grant by the District Collector in January 2008, which was later revised in December 2009 to Rs 215/-Lakhs (RSVY Rs 200/- Lakhs plus matching from ACDP Rs 15/- Lakhs). The work has to be completed before 04.08.2009 as per the conditions of the Agreement. The extension of time was granted by the Chief Engineer, Panchayat Raj till 31.05.2010 but it was observed that 1) The Bank Guarantee and the Insurance Policy was 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, Bitumen Pol in terms of GO.Ms.No.292, dated.28.07.2006 of PR&RD Department.

56

As per the existing rules in force the procedure that is being followed to adopt the Steel and Cement prices in the execution of works has to be adopted prevailing during the month in which the work is executed. But in the case of the following work under RSVY, the procedure is deliberately violated and the rates prevailed as on the date of the data approval were adopted instead of the rates prevailing as on the date of execution. The details and the resultant excess payments made to this effect are detailed as follows: Name of the Work: Construction of Causeway across Gomukhi river @Dabbagedda Estimate: 2.15 Crores M.Book Nos. 2447/A & 2449/A

Details of the Quantity Executed and Cement used:

Bill No

Date of Recordi

ng

Name of the item

Quantity (in Cum)

Quantity (in

Tonnes)

Rates appro ved in the estimations Rs per Tone /Kg

Rates prescribed by the by Govt in Rs Tone/Kg

Difference per Tone/Kg

in Rs

Total Excess paid in Rs

CC(1:3:6) 844.08 0.250 4600 4000 600 126612 CC(1:2.5:

5) 1471.7

7 0.275 4600 4000 600 242842

VRCC M20 415.69 0.350 4600 4000 600 87295

6th & Part

06.04.2010

VRCC M25 248.58 0.404 4600 4000 600 60256

7th & part

06.04.2010 CC(1:3:6) 364.27 0.250 4600 4000 600 54641

CC(1:3:6) 8.66 0.250 4600 4000 600 1299 VRCC M25 169.49 0.404 4600 4000 600 41084

VRCC M30 17.32 0.430 4600 4000 600 4469

(1:2:4)VRCC M 20

3.33 Cum 0.350 4600 4000 600 699

8th & part

06.04.2010

VRCC M30

53.23 Cum 0.430 4600 4000 600 13733

Total 632930

Details of the Quantity Executed and Steel used:

Bill No.

Date of Record

ing

Name of the item

Quantity of Steel

in Tonnes

Rates appr oved in the estimations Rs perTone /Kg

Rates prescribed by the by

Govt in Rs Tone/Kg

Diff per

Tone/Kg in

Rs

Total Excess paid Rs.

6th & Part 6.4.10 55.523 50800 37500 13300 738456

8th & Part 6.4.10

Providing HYSD

bars(Fe415) 69.522 50800 37500 13300 924643

Total 1663099

57

The excess amount paid has to be recovered from the contractor as detailed below and fact be intimated to Audit. Excess payment of cement:: Rs. 6,32,930-00 Excess payment of steel :: Rs. 16,63,099-00 ---------------------

Total : Rs.22,96,029-00

(Para No 8 of Audit Report of ZP Vizianagaram District for the year 2010-11 ) 13.2 ZP -VIZIANAGARAM DISTRICT - EXCESS PAYMENT MADE DUE TO

ADOPTION OF LABOUR RATE INSTEAD OF MACHINE RATE FOR EXCAVATION OF EARTH WORK BEYOND 1000 CUM – NEEDS RECOVERY – Rs.6,34,767/-

Name of the Work -Construction of causeway across Gomukhi river @ Dabbagedda.

During the course of audit on accounts of Zilla Parishad, Vizianagaram for the

year 2010-11, especially on the accounts of RSVY works, it is noticed that in the work of earth work Excavation to the quantity more than 1000 cum Labour rate was adopted instead of Machine Rate. According to GO.Ms.No.134 I&CAD, dated 25.11.2002, Machinery Rate for Earth Work Excavation should be adopted for more than 1000 Cum quantity.

In deviation to the Government Orders, Labor Rate was adopted instead of

Machine Rate even though the executed quantity of Earth Work Excavation was more than 1000 Cum which resulted in excess payment to the tune of Rs. 6,34,767/- as shown below.

Voucher

No &

Date

Bill No.

Earth

Work

Executed

in Cum

Labour

Rate

Allowed

in Rs

Machine Rate

Admissible

vide MORD

Specifications

in Rs

Differen

ce in

Rates in

Rs

Excess

paid

Rs.

6/6-10 6th & part 6471.83 161.72 79.64 82.08 531208

11/6-9-10 7th & Part 1261.68 161.72 79.64 82.08 103559

Total excess: 634767

Action should be taken to rectify the defect and intimate to Audit

(Para No.9 of AR of ZP Vizianagaram District for the year 2010-11)

58

13.3. ZPs – EXCESS PAYMENT OF POL CHARGES AND CELL PHONE CHARGES IRREGULAR – NEEDS RECOVERY.

During the course of audit of Zilla Parishads for the year 2010-11, it was noticed

that the following excess payments were made by the Chief Executive Officers of Zilla Parishads mainly for Cell Phone Charges for Official Mobile Phones and POL Charges for Official Vehicles. Some of such incidents are briefed here under.

The following are some of the excess payments made by the Chief Executive Officers in various occasions such as repairs to Official Vehicles, Payment of Pensions, Traveling Allowances to the Employees and Honorarium to the Non-Officials.

# District Nature of Payment Amount Para

1 Ananthapuram Cell Phone Charges 6746 29

2 Ananthapuram Cell Phone Charges to CC to CEO 8802 30

3 Ananthapuram Cell Phone Charges to CC to Dy CEO 7192 31

4 Ananthapuram Cell Phone Charges to CC to Chairman 9000 32

7 East Godavari POL Charges to Dy CEO Vehicle 2416 18

8 East Godavari POL Charges to CEO Vehicles 157327 19

9 East Godavari POL Charges to Chairman Vehicle 35387 20

10 East Godavari Cell Phone Charges to CEO 3022 54

11 West Godavari Cell Phone Charge to CC to CEO 2560 38

12 Khammam POL Charges to CEO Vehicle 3813 15

13 Khammam Cell Phone Charges to CEO, Dy CEO and CC to CEO

5646 16

14 Karimnagar Cell Phone Charges to CEO 8557 17

15 YSR Kadapa POL Charges to ZP Vehicles 424547 10

16 YSR Kadapa Cell Phone Charges 4131 17

17 Mahaboobnagar POL Charges to Chairman Vehicle 19988 16

18 Mahaboobnagar POL Charges to CEO Vehicle 9772 17

19 Visakhapatnam POL Charges to CEO & Dy CEO Vehicles

28695 29

20 Warangal POL Charges to ZP Vehicles 66822 17

21 Medak POL Charges to ZP Vehicles 42562 16

22 Ranga Reddy POL Charges to ZP Vehicles 25997 29

Total 872982

59

EXCESS PAYMENTS IN R/O OTHER WORKS/PAYMENTS

# District Nature of Payment Amount Para 1 Ananthapuram Pension 6940 28 2 East Godavari DR Paid on Family Pension to Employee 85316 51 3 East Godavari Excess Payment of Pension Arrears 15492 53 4 East Godavari Non-Deduction of VAT & IT for

Providing Security Services 13502 55

5 East Godavari Non-Deduction of IT from Expenditure Bills of W&CW Funds

228838 56

6 East Godavari Sitting Fee & TA Bills 576123 2 7 Khammam Vehicle Hire Charges 125000 12 8 Karimnagar Honorarium to ZPTC Members 9825 8 9 Karimnagar Pension 2124 19 10 YSR Kadapa Repairs to ZP Vehicles 232322 14 11 YSR Kadapa O&M 38690 5 12 Visakhapatnam Vehicle Repairs 36249 18 13 Warangal Office Maintenance (O&M) 3216983 1 14 Nalgonda Excess Expenditure over Budget 3784797 12 15 Ranga Reddy Vehicle Repairs – Payment excess over

Ceiling 93060 32

16 East Godavari HRA to CEO ZP 54093 16 17 Prakasham TA to Employees and Honorarium to Non-

Officials 799588 2&4

18 Vizianagaram Price Adjustments not adopted in Execution of Works

17287 12

19 Vizianagaram Purchase of Inverter Batteries without Estimates

40800 33

Total 9377029 13.4. MP – GUNTUR - GUNTUR DISTRICT - WORKS - MATERIAL SUPPLIED BY THE DEPARTMENT - COST OF MATERIAL NOT DEDUCTED - EXCESS PAYMENT – Rs 1,68,392/-

On verification of M Books, Files along with connected records pertaining to the drilling of bore well works at various points done by the M/S Ayyappa Rock Driller, Guntur, it was observed that the cost of material supplied by the Department to the Contractor was not deducted from the bill which resulted in excess payment to a tune of Rs.1,68,375/- which needs to be recovered from the person or persons responsible.

60

# Vr.No/Dt Work details

Amount not recovered towards departmental

supply Rs.

1 64/5-8-10 Drilling of 165 m.m borewell in new buriyal ground in pottur village 12028

2 65/5-8-10 Drilling of 165 m.m borewell near K.Bullaiah (H) in S.C Colony of obulu naidu palem. 12028

3 66/5-8-10 Drilling of 165 m.m Buriyal Ground in Ankireddy Palem. 12028

4 67/5-8-10 Drilling of 165 m.m near G.Nagendram House back side of industrial Estate. 12028

5 68/5-8-10 Drilling of 165 m.m near S. Venkateswarlu house in Challavari palem. 12028

6 69/5-8-10 Drilling of 165 m.m near D. Srinu house in S.C colony of China palakaluru. 12028

7 70/5-8-10 Drilling of 165 m.m near B.Siva Mastan Rao House In Chinapalakaluru. 12028

8 71/5-8-10 Drilling of 165 m.m near Chattu Nagapalli Subba rao House in Chinapalakaluru. 12028

9 73/5-8-10 Drilling of 165 m.m near Pathakamuri Sambaiah House in pedapalakaluru. 12028

10 74/5-8-10 Drilling of 165 m.m near Goli Parisudda rao House in SC colony of pedapalakaluru. 12028

11 75/5-8-10 Drilling of 165 m.m near Z.P.H School of Jonnalagadda. 12028

12 76/5-8-10 Drilling of 165 m.m at Poleramma temple in between alla ankamma house and reddy kostam in Jonnalagadda

12028

13 77/5-8-10 Drilling of 165 m.m near East side tank bund in Jonnalagadda. 12028

14 78/5-8-10 Drilling of 165 m.m near kummalabavi in jonnalagadda. 12028

Total 168392

(Para 16 of Guntur Mandal Parishad, Guntur District for the year 2010-11)

13.5. MP – PATANCHERVU- MEDAK DISTRICT - FORMATION OF ROAD – EXCESS RATE ADMITTED – EXCESS PAYMENT MADE -NEEDS RECOVERY- Rs.78,175/-

MB No : 45/AM (P.No.32) Contractor : Sri C. Purushotham Reddy Voucher No : 491 Date 18.01.2011 Estimate : 2.00 lakhs

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On verification of the M Book and File relating to the above work, it was noticed that excess rate was admitted in respect of the following item of work as a result of which excess payment was made to the contractor and thereby caused loss to the Mandal Parishad to a tune of Rs.78175/-

Item of work Quantity Rate per Cu M as per Estimate

Rate per Cu M as per MB

Excess Amount

Earth work excavation in Ordinary grade soils including cost & conveyance

2030.51 cum

36.50 75.00 78,175

Total 78,175

Action needs to be taken to recover the excess paid amount from the concerned.

(Para No 23 of AR of Patancheru MP,Medak District for the year 2010-11 )

13.6. GP – YERRAGUNTLA – KADAPA DISTRICT - WORKS – EXECUTION OF WORKS – I.T. AND V.A.T. NOT RECOVERED FORM THE WORK BILLS – CAUSED EXCESS PAYMENT - NEEDS RECOVERY RS. 54895/-

On verification of Measurement Books of the works executed under 13th FC Fund in Yerraguntla GP of Kadapa Dist, it was noticed that IT and VAT were not recovered from the Works Bills causing excess payment to the Contractor. The excess payment has to be recovered and remitted to concerned departments.

# Particulars MB No TVWD IT 2% VAT 4% Total

1 Execution of 3 Works 426/A 65,370 1,307 2,615 3,922 2 Execution of 2 Works 430/A 95,227 1,905 3,809 5,714 3 Execution of 3 Works 433/A 57,511 1,150 2,300 3,450 4 Execution of 1 Work 129/B 9,428 189 377 566 5 Execution of 2 Works 1064/A 69,769 1,395 2,791 4,186 6 Execution of 2 Works 429/A 1,10,437 2,208 4,418 6,626 7 Execution of 2 Works 5540/A 1,62,853 3,257 6,514 9,771 8 Execution of 1 Work 5538/A 79,943 1,599 3,198 4,797 9 Execution of 1 Work 5543/A 15,776 316 631 947 10 Execution of 1 Work 1068/A 40,702 814 1,628 2,442 11 Execution of 2 Works 5547/A 63,892 1,278 2,556 3,834 12 Execution of 1 Work 5546/A 81,539 1,631 3,262 4,893 13 Execution of 1 Work 1072/A 12,587 252 503 755 14 Execution of 1 Work 5101/B 15,980 320 639 959 15 Execution of 2 Works 089/A 33,910 678 1,356 2,034

Total 9,14,924 18,299 36,597 54,896

(Para No 2 of Yerraguntla GP YSR Kadapa District for the year 2010-11 )

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13.7. GP- DOMMARA POCHAMPALLY- RANGAREDDY - WORKS – DOUBLE PAYMENT SHOULD BE RECOVERED – RS.60,558/-

As could be verified from the cash book, bills passed register and the note file and page NO.63 of M.B.No.432-AH/2006-07 an amount of Rs.72,888/- was payable to Sri B.R. Ambedkar Labour Society towards execution of the work of Laying of SWG Pipe line. But in Cheque No.006234, dt.30-08-2010 an amount of Rs.1,33,446/- was drawn and paid to the said society as a result of adding the value of work done at page No.61 and 63 of the said M.Book erroneously. This had resulted in an excess payment of Rs.60,558/-. Hence the same has to be recovered from the person/persons and remitted to G.P. Funds. (Para No.13 of Dommara Pochampalli G.P., Ranga Reddy District for the year 2010-11)

14. WASTEFUL EXPANDITURE

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 under Articles 3 to exercise the same diligence and care in expending public money under their control as persons of ordinary prudence would exercise in respect of their own money. Government have issued instructions through various orders and also incorporated in the statutes of local bodies the various items on which public money can be expended and the principles to be adhered to while expending on such items. Yet, it was noticed in audit that the funds of Panchayat Raj bodies were several times incurred without adhering to the laid down principle leading to wasteful expenditure of public money. All the cases of such wasteful expenditure observed in the audit of Panchayat Raj bodies for the year 2010-11 were expenditures that were avoidable, extraordinary and lacked proper planning.

Consolidated Statement of Wasteful Expenditure incurred is annexed in Statement No. 9 (14) to the Report showing 352 paras involving an amount of Rs.61.59 Lakhs. 14.1. ZP - EAST GODAVARI DISTRICT - ADVERTISEMENT CHARGES TO

PRINT MEDIA – NOT MEANT FOR OFFICIAL PURPOSE – RS 3,39,231/-

During the course of audit of accounts Zilla Parishad, East Godavari District for the year 2010-11, it is observed that an amount of Rs.3,39,231/- was drawn and paid to Print Media towards Advertisement Bills of Zilla Parishad on Progress of Developmental Works etc., during the year 2010-11 by the CEO, Zilla Parishad, East Godavari though there is a ban on publication of advertisements vide Memo No 9204/ Progs-IV/2004-1, PR&RD Department, dated 04.06.2005 in all the Zilla Parishads in the State except on Official Advertisements. As such incurring of such expenditure is irregular and wasteful.

(Para No 57 of AR of ZP East Godavari District for the year 2010-11 )

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14.2. MP - EXPENDITURE INCURRED ON PUBLICATION OF SOUVENIRS, HIGHLIGHTING THE ACHIEVEMENTS AND ARRANGING WELCOME/GREETING BANNERS- WASTEFUL EXPENDITURE.

As verified from the vouchers, it was noticed that the amounts were drawn and paid to the daily news paper agencies towards publication of souvenirs, highlighting the achievements and arranging welcome/greeting banners as noted here under. The Govt. in Memo No. 60497/Procgs.IV/A1/95-4,dt. 14.8.1986, it was instructed not to accecpt such individual publicity charges without prior permission of the Government which create paradox before the PAC. Further the ascending effects of imprudent advertising will attract unwarranted criticism and wasteful expenditure. Hence the entire expenditure on publication charges cannot be admitted in audit and is held under objection. Such cases noticed in the audit during the year 2010-11 are given in the table as example. Early action would need to be taken to make good the expenditure from the person or persons responsible.

# District Mandal Prishad Particulars Amount involved (in Rs)

Para

1 West Godavari Buttai Gudem Publicity Charges 7858 19

2 Visakhapatnam Buchayyapeta Publicity Charges 8720 10

3 Prakasham J Pangaluru Publicity Charges 9492 6

4 Sankarapuram East Godavari Publicity Charges 28246 7

5 Kirlampudi East Godavari Publicity Charges 10000 9

6 Devipatnam East Godavari Publicity Charges 55357 12

7 Kothpeta East Godavari Publicity Charges 29600 11

8 Karapa East Godavari Publicity Charges 34736 4

9 Kajuluru East Godavari Publicity Charges 65609 18

10 Pedapadu East Godavari Publicity Charges 32600 9

11 Anaparthi East Godavari Publicity Charges 15000 17

12 Badvel Kadapa Publicity Charges 25865 17

13 Kalasapadu Kadapa Publicity Charges 23570 17

14 Anantasagaram Nellore Publicity Charges 16400 17

15 Gopulapuram West Godavari Publicity Charges 25092 15

16 Addanki Prakasam Publicity Charges 63039 20

17 Tirupathi Chittoor Publicity Charges 27645 8

Total 478829

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14.3. GP – SHAMSHABAD - RANGAREDDY DISTRICT - EXPENDITURE

MADE TOWARDS MAINTENANCE OF SANITATON, INSPITE OF ADEQUATE PUBLIC HEALTH STAFF AVAILABLE IN THE PANCHAYAT - REASONS NOT STATED TO ENGAGE PRIVATE LABOUR, EXPENDITURE MADE - HELD UNDER OBJECTION - Rs 1,64,260/-.

During the course of audit, it was noticed that an amount of Rs.1,64,260/-was

drawn vide Cheque No & Date 860620/02.11.2010 and paid towards labour charges for maintenance of sanitation in the Gram Panchayat in various places ,but as seen from the existing staffing pattern of the Gram Panchayat there were 93 no of Public Health staff available with the Gram Panchayat and without utilizing the services of the available staff ,engaging of private labour was nothing but wasteful expenditure. Further the specific reasons were not forthcoming to audit for hiring the private labor to admit the expenditure. Therefore in view of the above reasons the expenditure made could not be admitted in audit.

(Para No 35 of Shamshabad GP Rangareddy District for the year 2010-11 ) 14.4. GP - PUBLICATIONS – PUBLICATION OF GREETINGS AND

DEVELOPMENT ACTIVITIES OF G.PS., - WASTEFUL EXPENDITURE – RS. 10,73,248/-.

Government have banned release of Advertisements for all the GPs for the period of two years except on official advertisements such as tender notices, auctions and leases in Govt. Memo.N0.5263/PTs-IV/A1/2005, dt.16-04-2005 and time and again instructions are issued not to incur expenditure on wasteful items of publications and also to resort to release of advertisements through Information and Public Relations Department. In violation of the said instructions of the Government expenditure was incurred on the items as detailed below which was wasteful and was objected in audit.

# Name of the GP & District Particulars Amount

in Rs. Para No.

1 Mulaguntapadu, Prakasam Retirement Greetings in Prajasakthi Daily

3000 18

2 Mulaguntapadu, Prakasam Developmental activities of the Gram Panchayat in Andhra Prabha Daily

5000 18

3 S.Konda, Prakasam Contribution of 14th Special Annual Edition of Vaartha Daily

5810

Calendar ad., in Prajasakthi 10000 4 S.Konda, Prakasam Retirement greetings 50000

17

5 Kompalli, Rangareddy Unnecessary paper publications 169720 14 6 Dulapalli, Rangareddy Unnecessary paper publications 327472 13 7 Bachupalli, Rangareddy Unnecessary paper publications 474710 13 8 Raviryala, Rangareddy Unnecessary paper publications 27536 25 Total 1073248

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15. INSTANCES OF CASES OF UN-ACCOUNTED 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 this report.

Consolidated Statement of Instances of cases unaccounted for is annexed in

Statement No. 9 (15) to the Report showing 482 paras involving an amount of Rs. 21.57 lakhs.

Some of such cases pointed out in the audit are furnished hereunder. 15.1. MP - PACHIPENTA, VIZIANAGARAM DISTRICT - REGISTER OF

UNSERVICEBLE ARTICLES OF BORE MATERIALS NOT MAINTAINED-SCOPE FOR LOSS OF REVENUE Rs. 1,04,813/-.

In addition to the supply of bore materials by the EE(RWS) Vizianagaram from central stores the Mandal Parishads and Gram Panchayaths were spending every year huge amounts on purchases of bore materials from 9% General Fund share and 12th Finance Grant. The existing unserviceable spare parts replaced with new ones. After replacing, the unserviceable materials have to be stored and accounted through the register of unserviceable articles. It was noticed in audit that the register of unserviceable materials was not maintained and further no receipt occurred to the General Fund through the auction. Therefore, there is scope for loss of revenue. Hence needs enquiry into this matter to ascertain the loss if any occurred. The details of purchase made by the Mandal Parishad. .

Year Voucher No. Date Name of the fund Amount (Rs.)

2010-11 2/15.3.2011 13th finance 1,04,813/-

(Para No. 27 of MPP Pachipenta of Vijayanagaram District for the year 2010-11)

16. PENDENCY OF UTILZATION 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 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 theGrant Eeleasing Authorities concerned.

In G.O.Ms.No.507 Fin (TFR) Department., dt.10-4-2002, the Government have among others prescribed the pre-condition under para 12 of G.O., for further drawal of funds from April, 2002 onwards by the Local Bodies / Public Sector Enterprises, Autonomous Bodies and other Grant-in-Aid Institution.

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“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 No. 9 (16) showing audit objections on Pendency of

Utilisation Certificates is appended to the report from which it could be seen that an amount of Rs.4042.73 lakhs was pointed out in 6218 audit paras 16.1 ZPs – UTILISATION CERTIFICATES NOT PRODUCED FOR AUDIT. Some of the instance cases noticed in the audit for the Zilla Parishads for the year 2010-11 is exemplified in the given table.

# District Nature of Expenditure Amount (Rs.)

Para No.

1 Ananthapuram Sheep Insurance 1500000 33 2 Ananthapuram Animal Husbandry 782000 34 3 Ananthapuram Agriculture 1939000 36 4 East Godavari Fairs & Festivals 400000 22 5 East Godavari Execution of Works by other Authorities 1878000 48 6 Guntur Construction to Bio-gas plant 500000 5 (4) 7 Khammam Trainings to Non-Officials of PRIs 1431450 14 8 Khammam Execution of Works under General Fund 6039000 17 9 Khammam Drinking Water Works under GF 1434974 18

10 Khammam Seigniorage Fee Payments 7250121 19 11 Khammam SC/ST/W&CW Ear-Marked Funds 8916002 20-24 12 Khammam State Finance Commission (SFC) Grants 2400000 25 13 Khammam TFC (12th & 13th) Grants 131079389 26 14 Khammam Agriculture 938500 27 15 Khammam BC Welfare 185000 27 16 Khammam Fisheries 1960000 27 17 Khammam Social Welfare 90000 27 18 Khammam Animal Husbandry 8496715 27 19 Khammam AD PHC Khammam 619121 28 20 Karimnagar TFC Grants (12th) SE RWS Karimnagar 13250000 21 21 Karimnagar Seigniorage Grants 20734940 22 20 Karimnagar TFC Grants (13th) EE RWS Karimnagar 12000000 23 21 Karimnagar TFC Grants (13th) EE RWS Manthani 2268500 24 22 Karimnagar EE RWS Manthani 9260000 25

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23 Karimnagar SC Ear- Marked Funds 1533910 26 24 Karimnagar ST Ear-Marked Funds 613564 27 25 Karimnagar Seigniorage Grant EE I&CAD 52862 28 26 Karimnagar EE PR Jagtial 15381791 29 27 Karimnagar EE PR Peddapalli 8688827 30 28 Karimnagar EE PR Karimnagar 15966883 31 29 Karimnagar EE RWS Karimnagar 28410573 32 30 YSR Kadapa SFC Grants 2735562 33 31 YSR Kadapa Seigniorage Grant 5168519 33 32 YSR Kadapa Sand Auction Grant 192505 33 33 YSR Kadapa AD Fisheries 50000 33 34 YSR Kadapa Animal Husbandry 8471900 33 35 YSR Kadapa TFC Grants 12208600 24 36 YSR Kadapa TFC Grants 832372 6 37 Mahaboobnagar JD, Animal Husbandry 6906119 14 38 Mahaboobnagar AD, Fisheries 850000 14 39 Mahaboobnagar JD,Agriculture 2178000 14 40 Mahaboobnagar ZP General Fund 33627269 15 41 Visakhapatnam Fisheries 150000 34

Total 379371968

16.2 MPs - NON-SUBMISSION OF UTILISATION CERTIFICATES:-

As per Article 211-A(2) of the Andhra Pradesh Financial Code Vol I, it is the responsibility of the Grant Receiving Authority to send the Utilization Certificates in the Proforma prescribed to the Grant Releasing Authority duly certified by the District Audit Officer, State Audit. But no Utilization Certificates were furnished to audit for certification and onward transmission to the Authorities concerned in the following cases. Action needs to be taken for prompt submission of the Utilization Certificates.

# District Mandal Parishad Particulars

Amount involved (in Rs.)

Para No.

1 Prakasham Mundlamuru SFC, 13th FC, TA etc., 5,19,733 8 2 Adilabad Mudhole TA & Honorarium etc., 1,22,473 14 3 Prakasham Sitarampuram SFC, 13th FC, TA etc., 1,53,643 16 4 SPSR Nellore VK Padu SFC, 13th FC, TA etc., 1,70,419 18 5 Guntur Cherukuripalli SFC, 13th FC, TA etc., 1,57,084 18

16.3 GPs - UTILISATION CERTIFICATES NOT PRODUCED During the course of audit it was noticed that utilization certificate have not been submitted to the grant releasing authorities so as to submit a consolidated U.C. for counter signature of the Audit Authorities. Steps are to be taken for submission of utilization certificates early.

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# Name of the Grant/Scheme

Total grant including O.B in

Rs.

Utilised Amount in

Rs.

Unspent balance in

Rs. 1 T.F.C. 604742 243032 361710 2 S.F.C. 116876 49833 67043

3 SGRY – 12th F.C

1329 73024

- 16174

1329 56850

4 13th F.C., 63832 63000 832 5 S.F.C. 47425 5500 41925 7 T.F.C. (13) 101673 77246 24427 8 S.F.C. 24669 9000 15669

17. SURCHARGE CERTIFICATES RECOVERY PENDING

In accordance with the provision of the State Audit Act, 1989 and Rules issued

thereunder, the audit of Local Authorities i.e., ZPs, MPs, GPs, Agricultural Market Committees, Municipalities, Zilla Grandhalaya Samsthas and other Institutions and schemes as entrusted by the Government is being conducted and various defects noticed during the audit also pointed out in the relevant audit reports 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 clear cases of the loss, mis-utilisation, mis-appropriations, wasteful expenditure, excess and irregular payments. The amount surcharged have to be recovered treating them as Revenue Recoverable under Revenue Recoverable Act as per sub-rule 5 of rule 9 of A.P. State Audit Rules issued in G.O.Ms.No.130, Finance & Planning (FW.Admn.II) Department, dated 8-9-2000. But, recovery is pending in the cases mentioned in the statement.

Immediate action would need to be taken to recover the surcharged amount from the surcharges and fact be intimated to audit.

A statement of 158 such cases involving an amount of Rs.2.03 lakhs is appended as Statment No. 9(17) to this report.

17.1 MP – VINJAMUR- NELLORE DISTRICT - NON - RECOVERY OF

AMOUNT COVERED BY SURCHARGE CERTIFICATES. An amount of Rs.70,104/- covered under Surcharge Certificates as listed below was pending recovery from the Surchargees till the date of closure of audit. Action would need to be taken to recover the amount from the Surchargees and remitted to the appropriate Head of Account under intimation to audit.

# Surcharge Certificate No & Date Name of Surchargee Surcharged Amount (in Rs)

1 60/SC/MP/NLR/A3/02-03 dated 23.09.2002 Sri P Isac Praveen 30,000 2 71/SC/MP/NLR/A3/03-04 dated 04.10.2003 Sri P Isac Praveen 40,104

Total 70,104 (Para No 23 of AR of Vinjamur MP, SPSR Nellore District for the year 2010-11 )

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18. OTHERS

A Consolidated Statement No. 9 (18) showing audit objections on Others is appended to the report from which it could be seen that an amount of Rs. 542.43 lakhs was pointed out in 153152 audit paras. 18.1 ZP - KADAPA DISTRICT - PAYMENT OF INSURANCE PREMIUMS

FROM P.F. SUBSCRIBERS ACCOUNTS - REGISTER OF - NOT MAINTAINED AND ACKNOWLEDGEMENTS - NOT OBTAINED.

As verified from the P.F. Registers it was noticed that an amount of Rs.1138563/- was paid towards L.I.C. Premiums from balance of P.F. Subscribers are being paid. But the connected registers showing the LIC premiums due to paid were not maintained and produced for audit. In the absence of the same, correctness of the premiums paid in time could not be verified in audit, as there is a possibility for lapse of LIC Policies due to non/ payments of LIC premiums in time. If any loss caused in this regard would need to be investigated departmentally and needs recovery from the persons or persons responsible and acknowledgements from the concerned Branch Manager were not obtained.

Vr.No Amount LIC Branch

66/1.7.2010 209075.00 LIC of India, LIC,BR-1,VSP

67/1.7.2010 317741.00 LIC of India, LIC, Shipyard Branch,

510/21.10.10 347035.00 Chief Manager, LIC of India Y.L.M,BR-1,VSP

660/2.12.10 101174.00 Branch Manager, LIC of India, Yellamanchili

661/2.12.10 89760.00 Branch Manager , LIC of India, Yellamanchili

662/17.3.11 73778.00 Branch Manager , LIC of India, Shipyard

Total 1138563

(Para No 12(3) of ZP Kadapa District for the year 2010-11) 18.2 ZP – KADAPA DISTRICT- REFUND OF DEPOSITS - DEPOSIT

REGISTER NOT MAINTAINED AND PRODUCED

During the course of audit on the accounts of 35% ZP, General Fund of EERWE, Rajampeta Division for the year 2010-11,it was noticed that an aggregate amount of Rs 287566/- was paid to the Contractors towards the refund of deposits .But the Deposit Register for the year 2010-11 was not maintained and produced for audit. In the absence of the said Deposit Registe,r it was not possible to verify the correctness of deposits refund during the year under report. Hence action would need to be taken to make the register upto date with full details under proper certification of the competent authority and produce to audit.

(Para No . 21 of Zilla Parishad Kadapa District for the year 2010-11)

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18.3 ZP – VIZIANAGARAM DISTRICT- REGISTER OF ASSETS CREATED NOT MAINTAINED:

As per the provisions of the Acts and Rules issued in respect of P.R. Institutions with the Register of the Assets created with photograph shall be maintained. But the Register was not produced to audit for verification, in view of the non production of the above Register the Assets like Roads, Buildings, Bridges, Culverts and Constructions during the year could not be known for the evidence for the works completed from time to time at various levels was also not known. Further an important register called Register of Works also not produced to audit,due to non production of Register of Works, the correctness of the works executed details of Contractors details payments etc., could not be known, further there may be scope for double payment the same works. Therefore action may be taken prepare the above register and produced to Audit for verification

(Para No. 32 of Zilla Parishad Vijayanagaram District for the year 2010-11)

18.4 ZP - GUNTUR DISTRICT- HOUSE BUILDING ADVANCES REFUNDED TO STATE FUNDS-SHORT REMITTANCE.

As per the guide lines issued in GO.Ms.No.685 PR &RD (Account-SI) Dept.,

dt.28-12-89, the loan amount should be refunded to Government in 10 equal installments along with interest on diminishing balances. But particulars of the grant received from Government every year and recovery amount remitted to Government were as detailed in the Annexure. Further, it was noticed that only interest amount of Rs.1,88,000/- was refunded to Government., and the balance interest amount was not remitted to Government account the same would need to be worked out on diminishing method and remitted to State funds regularly.

Annexure

Grant received Year - Amount

Amount refunded to Govt., Year - Amount Interest refunded

1989-90 7,00,000 1990-91 7,00,000 1991-92 11,00,000 1992-93 12,00,000 1992-93 1,50,000 1993-94 11,50,000 1993-94 2,50,000 1994-95 10,00,000 1994-95 3,70,000 1995-96 10,00,000 1995-96 4,85,000, 1996-97 5,00,000 1996-97 5,85,000 1997-98 11,00,00 1997-98 6,85,00 1998-99 12,00,000 1998-99 7,35,000

1999-2000 1999-2000 8,45,000 2000-01 12,00,000 2000-01 9,65,000 2001-02 12,00,000 2001-02 9,65,000 2002-03 9,00,000 2002-03 9,35,000 2003-04 4,50,000 2003-04 11,50,000 2004-05 3,82,000 2004-05 10,50,000

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2005-06 2005-06 16,00,000 2006-07 2006-07 13,50,000 2007-08 2007-08 10,00,000 2008-09 2008-09 8,50,000 09-2010 2009-10 - 2010-11 2010-11

Total 1,37,82,000 Total 1,39,70,000 1,88,000

(Para No.5 of Zilla Parishad Guntur District for the year 2010-11)

18.5 MP – KANDUKURU- PRAKASAM DISTRICT- ASSET MANAGEMENT - STOCK AND ASSET REGISTERS NOT MAINTAINED:-

Government have reviewed the present systems and felt the need for strengthening

the Asset Management at various levels. The controls over land and buildings, stocks, stores and other assets require strengthening to prevent any misuse. There is every need to have relevant and reliable information about assets. It is therefore essential to develop and maintain inventory of all assets, to ensure that they are brought into the books. The key requirements to ensure that assets are retained in the proper custody and used as per the following norms prescribed. 1 Physical Controls: All assets are kept under proper watch and ward to safeguard them against theft, pilferage, damage and risk posted by the weather. 2 Stock and Asset Register: 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. 3 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. 4 Disposal of Assets: All the offices are required to maintain a Register of unserviceable assets and dispose-off the unserviceable Assets as per provisions of AP Financial Code Volume - I and Departmental Codes and Manuals. In GO.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.,

Register of Lands Register of Buildings Register of Roads Register of Trees Register of Vehicles Register of Plant, Machinery and Equipment Register of Computer Hard ware General Stock Register Register of Furniture & Fixtures including Air Conditioners Register of Unserviceable articles.

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But the above registers were not maintained and produced to audit for verification. Early action needs to be taken for the maintenance of the above registers and produced to audit.

(Para No 9(1) of AR of Kandukuru MP, Prakasham District for the year 2010-11)

18.6 GP - PRAKASAM – PURCHASES – PURCHASE OF ELECTRICAL AND

SANITATION GOODS – EXCESSIVE INCREASE – OBJECTED. Electrical Goods: When connected records relating to purchases of Electrical goods for the last three years were verified the expenditure incurred for the same was as follows.

Year Electrical Goods purchased worth Rs.

2008-09 22000/- 2009-10 25900/- 2010-11 65900/-

As could be seen from the above table the rate of increase in purchase of electrical goods in the year 2010-11 when compared with the purchases in the years 2008-09 and 2009-10, there was an increase of about 155% and no valid reasons like coming up of new colonies or occurrence of natural calamities etc., were put forth before audit. Further the stock registers relating to electrical goods purchased for the year 2010-11 was not produced and the said purchases were made without arriving at any estimate. Hence the increase in the expenditure of purchases relating to electrical goods in the year 2010-11 was found to be extraordinary the same could not be admitted in audit. Public Health Goods When connected records relating to purchases of P.H. goods for the last four years were verified the expenditure incurred for the same was as follows.

Year Electrical Goods purchased worth Rs.

2007-08 10000/- 2008-09 15000/- 2009-10 24500/- 2010-11 49200/-

As could be seen from the above table the rate of increase in purchase of P.H. goods in the year 2010-11 when compared with the purchases in the years 2007-08, 2008-09 and 2009-10, there was an increase of about 100% and no valid reasons like increase in the length of side drains, prevalence of epidemics, undertaking of special sanitation programmes or sudden increase in the rates of these goods etc., were put forth before audit. Further the stock registers relating to P.H. goods purchased for the year 2010-11 was not produced and the said purchases were made without arriving at any estimate. Hence the increase in the expenditure of purchases relating to P.H goods in the year 2010-11 was found to be extraordinary the same could not be admitted in audit.

73

As such the departmental authorities would need to conduct necessary enquiry

into the above issue and arrive at the reasons for the extraordinary increase in the purchases of Electrical and P.H. goods and rule out the possibility of misuse of funds under a report to audit.

(Para No.20 of Veluguvaripalem G.P. of Prakasam District for the year 2010-11) 18.7 DIVERSION OF G.P.FUNDS FOR PAYMENT OF CAR HIRE CHARGES

OF DPO AND SALARY OF COMPUTER OPERATOR OF THE O/O. THE DPO, RANGAREDDY DISTRICT - Rs.37,000/-

During the scrutiny of expenditure in audit it was noticed that an amount of Rs.37,000/- was spent towards Car hire charges of DPO and salary of computer operator of the O/o. the DPO, Rangareddy District on reimbursement basis. The DPOs Office is supported by the budget released by the Government of A.P. G.P. Funds cannot be diverted for other than the stated objectives as per A.P.P.R. Act 1994. Hence diversion of G.P. funds itself was against the provisions of the statute and not getting reimbursement by the date of audit was objected in audit. The correctness of the expenditure incurred could not be verified in audit. Hence the competent authority shall take immediate steps for realization of the said amount from the concerned.

(Para No.14 of Bachupalli G.P., Ranga Reddy District for the year 2010-11) 18.8 FUNDS – GENERAL FUNDS SPENT FOR RACHABANDA

PROGRAMME NOT GOT REIMBURSED – Rs.90,460/-

During the scrutiny of cash book for the year 2010-11 it was noticed that an amount of Rs.90,460/- was drawn from the General funds of G.P. and spent for Rachabanda Programme. But the said amount was not got reimbursed from the Government so far hence effective steps have to be taken for getting reimbursement of the said amount.

(Para No.15 of Bachupalli G.P., Ranga Reddy District for the year 2010-11)

18.9 CASH ON HAND NOT REMITTED IN TREASURY – OBJECTED It was noticed in audit that as on 31-03-2011 an amount of Rs.11,20,113/- was shown as cash on hand as per the R & C statement and whereas the Secretary Panchayat cannot keep more than Rs.50/- as cash on hand as per the rules in vogue and as such keeping huge amount of Rs.11,20,113/- as cash on hand was objected in audit as there is possibility of misuse of funds unless they are promptly remitted in Treasury.

(Para No.17 of Chimakurthy GP, Chimakurthy Mandal, Prakasam for 2010-11)

74

19. DEMAND DRAFTS / CHEQUES / 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 No. 9 (19) showing audit objections on D.D. Cheques received but not realized with in time is appended to the Report was pointed out in 24 audit paras

DIRECTOR,

STATE AUDIT, A.P., HYDERABAD.

PLACE : HYDERABAD DATED : 30.08.2013

ACCOUNTING STATEMENTS OF ZILLA PARISHADS, MANDAL PARISHADS AND GRAM PANCHAYATS

SECTION - II

ARREARS CURRENT ARREARS CURRENT ARREARS CURRENT

1 ZILLA PARISHADS 2 22 0 22 2 0

2 MANDAL PARISHADS 6 1097 1 1092 5 5

3 GRAM PANCHAYATS 3830 21808 152 21314 3678 494

TOTAL 3838 22927 153 22428 3685 499

STATEMENT No. 1

CONSOLIDATED STATEMENT SHOWING THE STATUS OF AUDIT

DEMAND AS ON 1-4-2011

AUDITS COMPLETED AS

ON 31-3-2012

BALANCE AS ON 31-03-2012Sl.

No.NAME OF THE INSTITUTION

Page 75


1 Adilabad 0 1 0 1 0 02 Ananthapur 0 1 0 1 0 03 Chittoor 0 1 0 1 0 04 East Godavari 2 1 0 1 2 05 Guntur 0 1 0 1 0 06 Kadapa 0 1 0 1 0 07 Karimnagar 0 1 0 1 0 08 Khammam 0 1 0 1 0 09 Krishna 0 1 0 1 0 010 Kurnool 0 1 0 1 0 011 Mahaboobnagar 0 1 0 1 0 012 Medak 0 1 0 1 0 013 Nalgonda 0 1 0 1 0 014 Nellore 0 1 0 1 0 015 Nizamabad 0 1 0 1 0 016 Prakasam 0 1 0 1 0 017 Ranga Reddy 0 1 0 1 0 018 Srikakulam 0 1 0 1 0 019 Visakhapatnam 0 1 0 1 0 020 Vizianagaram 0 1 0 1 0 021 Warangal 0 1 0 1 0 022 West Godavari 0 1 0 1 0 0

TOTAL: 2 22 0 22 2 0

STATEMENT No. 1 (1)

STATEMENT SHOWING STATUS OF AUDIT OF ZILLA PARISHADS AS ON 31-3-2012


AUDITS COMPLETED AS

ON 31-3-2012

BALANCE AS ON 31-03-2012

SL No.

NAME OF THE

DISTRICT

Page 76



TOTAL: 6 1097 1 1092 5 5

STATEMENT No. 1 (2)

STATEMENT SHOWING STATUS OF AUDIT OF MANDAL PARISHADSAS ON 31-3-2012

Sl. No.

NAME OF THE

DISTRICT


AUDITS COMPLETED AS

ON 31-3-2012


Page 77



TOTAL: 3830 21808 152 21314 3678 494

STATEMENT No. 1 (3)

STATEMENT SHOWING STATUS OF AUDIT OF GRAM PANCHAYATS AS ON 31-3-2012

Sl. No.

NAME OF THE

DISTRICT


AUDITS COMPLETED AS

ON 31-3-2012


Page 78

Sl. No.

NAME OF THE DISTRICT Receipts Payments

1 Adilabad 1855.39 1570.43

2 Ananthapur 4442.22 5309.68

3 Chittoor 5029.21 5062.38

4 East Godavari 12125.70 7451.52

5 Guntur 5251.83 2657.17

6 Kadapa 3964.19 4859.07

7 Karimnagar 4763.26 2903.57

8 Khammam 17600.93 11482.63

9 Krishna 19827.01 23810.02

10 Kurnool 2705.09 2171.17

11 Mahaboobnagar 6182.57 3851.75

12 Medak 1067.07 1936.97

13 Nalgonda 14488.12 11572.81

14 Nellore 11130.89 9472.73

15 Nizamabad 6576.91 6293.26

16 Prakasam 2359.85 2022.73

17 Ranga Reddy 2466.82 1661.16

18 Srikakulam 652.77 1138.28

19 Vishakapatnam 612.78 693.94

20 Vizainagaram 3374.79 5272.67

21 Warangal 30058.79 26447.93

22 West Godavari 13307.97 10593.24

TOTAL: 169844.16 148235.11

STATEMENT No. 2

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF ZILLA PARISHADS FOR THE YEAR 2010-11

Rs. In lakhs

Page 79

Sl. No.


General fund

Education fund

Social Welfare

Minor Irrigation

Roads & Bridges

RWS / ARW SGRY Other

Programmes Deposits Advances Loans BRGF Pension Rund Total

1 Adilabad 1016.31 30.72 18.20 0.00 0.00 0.00 0.00 92.74 235.56 1.62 1.15 458.04 1.05 1855.392 Ananthapur 3799.17 50.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.65 589.03 0.00 4442.223 Chittoor 4020.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 497.06 13.63 6.84 490.99 0.00 5029.214 East Godavari 11203.86 71.62 0.00 0.00 0.00 0.00 0.00 0.00 800.00 0.00 9.19 0.00 41.03 12125.705 Guntur 3421.87 0.00 0.00 0.00 0.00 825.44 0.00 352.58 651.94 0.00 0.00 0.00 0.00 5251.836 Kadapa 3408.83 0.00 0.00 0.00 0.00 0.00 0.00 139.88 0.00 0.00 0.00 415.48 0.00 3964.197 Karimnagar 4314.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 448.59 0.00 4763.268 Khammam 2257.48 435.17 0.00 0.00 2774.33 2869.70 335.44 5739.62 2698.90 0.00 8.54 481.67 0.08 17600.939 Krishna 3927.25 22.84 77.12 0.00 1685.26 5680.38 0.00 30.58 1575.88 6803.44 8.50 0.00 15.76 19827.01

10 Kurnool 368.50 0.00 132.67 0.00 0.00 1740.90 0.00 398.14 57.07 1.95 5.64 0.00 0.22 2705.0911 Mahaboobnagar 1009.62 0.00 0.00 0.00 0.00 0.00 0.00 4551.92 0.00 32.65 3.64 584.74 0.00 6182.5712 Medak 634.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 432.42 0.00 1067.0713 Nalgonda 3521.94 64.86 0.00 0.00 0.00 6433.56 3.82 53.31 3896.82 0.00 6.18 501.44 6.19 14488.1214 Nellore 3500.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7585.46 0.00 3.28 0.00 41.85 11130.8915 Nizamabad 3127.00 22.41 0.00 0.00 0.00 0.00 0.00 3057.40 0.00 7.03 0.00 363.07 0.00 6576.9116 Prakasam 1113.05 0.00 201.18 0.00 0.00 243.00 0.00 782.00 4.19 2.49 10.15 0.00 3.79 2359.8517 Ranga Reddy 1966.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.96 5.76 8.24 476.79 0.00 2466.8218 Srikakulam 515.61 0.00 0.00 0.00 0.00 0.00 0.00 90.43 20.40 26.33 0.00 0.00 0.00 652.7719 Vishakapatnam 526.58 14.54 0.00 0.00 0.00 0.00 0.00 57.10 0.00 3.87 7.78 0.00 2.91 612.7820 Vizainagaram 2346.23 0.00 0.00 0.00 0.00 610.91 0.00 52.18 26.71 0.00 0.00 338.76 0.00 3374.7921 Warangal 3203.67 962.10 15.00 31.69 857.00 481.39 11007.28 9192.48 103.55 191.10 0.00 447.64 3565.89 30058.7922 West Godavari 2069.16 0.00 0.00 0.00 0.00 0.00 0.00 7685.65 3543.89 9.27 0.00 0.00 0.00 13307.97

TOTAL: 61272.51 1674.63 444.17 31.69 5316.59 18885.28 11346.54 32276.01 21707.39 7099.14 82.78 6028.66 3678.77 169844.16

STATEMENT OF CONSOLIDATED FUND WISE RECEIPTS OF ZILLA PARISHADS FOR THE YEAR 2010-11STATEMENT No. 2 (1)

Rs. In lakhs

Page 80

Rs. In lakhs

Sl. No.


General fund

Education fund

Social Welfare

Minor Irrigation

Roads& Bridges

RWS /ARW SGRY Other

Programmes Deposits Advances Loans BRGF Pension Rund Total


10 Kurnool 235.88 0.00 65.82 0.00 0.00 23.79 0.00 1793.99 2.55 0.03 49.11 0.00 0.00 2171.1711 Mahaboobnagar 784.58 0.00 0.00 0.00 0.00 0.00 0.00 2365.17 0.00 0.00 11.99 690.01 0.00 3851.7512 Medak 1190.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 746.20 0.00 1936.9713 Nalgonda 3164.75 27.48 0.00 0.00 0.00 6360.78 5.98 93.74 1458.11 0.00 5.03 452.00 4.94 11572.8114 Nellore 4477.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4545.09 0.00 1.97 0.00 447.91 9472.7315 Nizamabad 3121.25 66.62 0.00 0.00 0.00 0.00 0.00 2818.21 0.00 7.00 0.00 280.18 0.00 6293.2616 Prakasam 449.10 0.00 185.92 0.00 0.00 1133.95 0.00 201.59 3.91 0.00 43.70 0.00 4.56 2022.7317 Ranga Reddy 1155.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.09 0.39 11.88 469.64 0.00 1661.1618 Srikakulam 1091.16 0.00 0.00 0.00 0.00 0.00 0.00 17.72 9.22 20.18 0.00 0.00 0.00 1138.2819 Vishakapatnam 602.59 14.03 0.00 0.00 0.00 0.00 0.00 24.03 0.00 3.16 5.10 0.00 45.03 693.9420 Vizainagaram 3110.19 0.00 0.00 0.00 0.00 956.48 0.00 794.88 21.13 0.00 0.00 389.99 0.00 5272.6721 Warangal 4172.10 24.10 0.00 46.60 650.43 305.08 10164.67 9132.30 22.88 271.51 0.00 368.04 1290.22 26447.9322 West Godavari 1556.49 0.00 0.00 0.00 0.00 0.00 0.00 4204.79 4831.96 0.00 0.00 0.00 0.00 10593.24

Total 56105.78 863.16 287.38 46.60 10397.75 16573.10 10575.03 22387.78 15579.24 6198.83 138.11 6611.45 2470.90 148235.11

STATEMENT No. 2 (2)STATEMENT OF CONSOLIDATED FUND WISE PAYMENTS OF ZILLA PARISHADS FOR THE YEAR 2010-11

Page 81

Sl. No. Name of the District RECEIPTS PAYMENTS

1 Adilabad 6462.79 6521.02

2 Ananthapur 2183.98 1552.99

3 Chittoor 11552.77 10594.65

4 East Godavari 2205.18 1757.12

5 Guntur 3434.50 4157.63

6 Kadapa 1911.28 2426.29

7 Karimnagar 2052.50 2475.46

8 Khammam 8291.94 15852.62

9 Krishna 3607.70 2330.09

10 Kurnool 575.45 840.84


12 Medak 2424.39 2339.49

13 Nalgonda 3998.26 3810.48

14 Nellore 1662.71 1656.86

15 Nizamabad 2884.40 2770.11

16 Prakasam 1374.07 1220.83

17 Ranga Reddy 3809.92 4056.58

18 Srikakulam 1890.77 1705.25

19 Visakhapatnam 2706.42 2577.87

20 Vizianagaram 3254.69 3497.98

21 Warangal 8234.38 8618.32

22 West Godavari 1364.67 1199.76

TOTAL: 77866.00 84192.21

STATEMENT No. 3

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF MANDAL PARISHADS FOR THE YEAR 2010-11

Rs. In lakhs

Page 82

Sl. No.


General fund

Education fund

Social Welfare

Fund

Minor Irrigation

Roads & Bridges

Rural Water Supply

Other Programmes SGRY Deposits Advances Loans Pension

Fund BRGF Total


10 Kurnool 533.33 0.00 20.42 0.00 0.00 1.36 18.84 0.00 1.34 0.16 0.00 0.00 0.00 575.4511 Mahaboobnagar 958.79 0.00 0.00 0.00 0.00 0.00 20.37 0.00 31.79 8.64 0.00 86.54 877.10 1983.2312 Medak 1503.38 0.00 15.68 0.00 40.68 0.00 169.30 0.00 28.02 16.42 2.28 0.00 648.63 2424.3913 Nalgonda 719.93 0.00 2440.11 0.00 0.00 8.01 22.43 0.00 20.57 35.05 0.00 0.00 752.16 3998.2614 Nellore 1452.23 0.00 50.16 0.00 0.00 0.00 94.50 22.78 8.72 0.00 0.00 34.32 0.00 1662.7115 Nizamabad 867.09 0.00 0.00 0.00 0.00 0.00 0.86 0.26 0.00 0.00 0.00 1471.59 544.60 2884.4016 Prakasam 893.85 0.00 79.06 0.00 0.00 144.00 217.02 0.00 28.36 11.78 0.00 0.00 0.00 1374.0717 Ranga Reddy 976.96 0.00 1320.87 0.00 0.00 5.23 171.53 0.72 345.32 10.78 0.00 263.33 715.18 3809.9218 Srikakulam 491.61 0.00 655.24 0.00 0.00 0.00 24.19 0.35 20.26 1.67 0.00 697.45 0.00 1890.7719 Visakhapatnam 530.79 0.00 0.00 0.00 0.00 0.00 19.17 0.00 12.96 28.00 0.00 2115.50 0.00 2706.4220 Vizianagaram 773.09 0.00 499.93 0.00 0.00 0.00 38.01 0.00 17.47 0.00 0.00 1418.05 508.14 3254.6921 Warangal 851.24 0.00 0.00 0.00 28.37 7.29 6059.79 1.40 50.21 4.36 0.00 560.25 671.46 8234.3822 West Godavari 1122.85 0.00 179.99 0.00 0.00 0.00 46.92 0.00 12.56 2.35 0.00 0.00 0.00 1364.67

TOTAL: 23598.08 4165.65 5732.76 0.00 725.36 187.84 22269.84 549.38 1188.71 322.08 17.37 10065.96 9042.96 77866.00

STATEMENT OF CONSOLIDATED fund wise RECEIPTS OF MANDAL PARISHADS FOR THE YEAR 2010-11STATEMENT No. 3(1)

Rs. In lakhs

Page 83

Sl. No.


General fund

Education fund

Social Welfare

Fund

Minor Irrigation

Roads & Bridges

RWS&ARWS

Other Programme

sSGRY Deposits Advances Loans Pension

Fund BRGF Total

1 Adilabad 2325.20 0.00 3.01 0.00 0.00 7.76 2138.12 5.31 11.50 1.98 0.00 1550.73 477.41 6521.022 Ananthapur 394.79 0.00 0.00 0.00 0.00 0.00 144.98 2.68 2.31 0.48 0.00 102.00 905.75 1552.993 Chittoor 593.29 4033.18 173.18 0.80 5.70 53.52 5015.31 1.26 13.01 1.49 0.00 1.86 702.05 10594.654 East Godavari 1316.13 100.40 0.00 27.66 215.18 11.86 17.82 0.00 15.70 52.37 0.00 0.00 0.00 1757.125 Guntur 3304.95 0.41 0.00 0.00 161.92 28.45 183.15 166.93 39.26 -3.80 0.00 276.36 0.00 4157.636 Kadapa 844.32 0.00 0.00 0.00 0.00 0.27 201.70 0.00 0.72 0.58 0.00 290.44 1088.26 2426.297 Karimnagar 1124.31 0.00 0.00 0.00 0.00 0.00 400.22 0.00 0.00 0.00 0.00 141.20 809.73 2475.468 Khammam 2750.44 21.22 42.20 0.00 0.00 0.00 11204.83 0.00 73.97 16.80 0.00 957.00 786.16 15852.629 Krishna 1525.07 0.00 185.14 0.00 495.89 1.05 78.65 0.13 0.19 43.13 0.00 0.84 0.00 2330.09

10 Kurnool 774.45 0.00 17.26 0.00 0.00 3.56 45.50 0.00 0.00 0.07 0.00 0.00 0.00 840.8411 Mahaboobnagar 1126.80 0.00 0.00 0.00 0.00 0.00 19.96 0.00 39.84 5.61 0.00 81.65 956.11 2229.9712 Medak 1402.02 0.00 13.08 0.00 25.08 0.00 71.14 0.00 22.08 10.36 3.02 0.00 792.71 2339.4913 Nalgonda 618.59 0.00 2413.58 0.00 0.00 9.35 23.06 0.00 18.22 7.08 0.00 0.00 720.60 3810.4814 Nellore 1432.02 0.00 19.62 0.00 11.43 32.41 60.57 34.51 6.48 0.00 0.00 59.82 0.00 1656.8615 Nizamabad 773.57 0.00 0.00 0.00 0.00 0.00 1.25 0.50 0.00 0.00 0.00 1474.69 520.10 2770.1116 Prakasam 775.05 0.00 93.74 0.00 90.71 76.89 171.10 0.00 10.66 2.68 0.00 0.00 0.00 1220.8317 Ranga Reddy 1267.03 0.00 1423.33 0.00 4.67 32.19 130.57 0.70 126.73 265.98 0.00 236.76 568.62 4056.5818 Srikakulam 388.69 0.00 582.84 0.00 0.00 2.08 16.91 0.00 15.57 2.00 0.00 697.16 0.00 1705.2519 Visakhapatnam 398.98 0.00 7.43 0.00 0.00 0.18 34.01 0.00 6.32 15.74 0.00 2115.21 0.00 2577.8720 Vizianagaram 964.83 0.00 511.24 0.00 0.00 5.25 41.43 0.00 40.76 0.08 0.00 1418.05 516.34 3497.9821 Warangal 1008.98 0.00 0.00 0.00 22.11 16.66 6279.43 0.44 31.03 6.11 0.00 567.29 686.27 8618.3222 West Godavari 954.03 0.00 195.29 0.00 3.45 0.00 42.32 0.00 3.84 0.83 0.00 0.00 0.00 1199.76

TOTAL: 26063.54 4155.21 5680.94 28.46 1036.14 281.48 26322.04 212.46 478.19 429.57 3.02 9971.06 9530.11 84192.21

STATEMENT OF CONSOLIDATED fund wise Payments OF MANDAL PARISHADS FOR THE YEAR 2010-11Rs. In lakhs

STATEMENT No. 3(2)

Page 84

Sl.No.

NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 Adilabad 1508.20 1359.64

2 Ananthapur 3839.75 3899.53

3 Chittoor 4542.16 4843.70

4 East Godavari 6009.77 6177.90

5 Guntur 4520.26 4819.29

6 Kadapa 3326.62 4209.39

7 Karimnagar 5248.39 5755.90

8 Khammam 3856.71 4450.82

9 Krishna 7130.01 6126.34

10 Kurnool 2333.01 2683.43


12 Medak 3723.48 4038.96

13 Nalgonda 3253.50 4031.13

14 Nellore 3550.65 2912.92

15 Nizamabad 2922.16 2917.09

16 Prakasam 4293.66 3653.50

17 Ranga Reddy 16691.91 17711.01

18 Srikakulam 3065.24 4737.51


20 Vizianagaram 3496.61 3626.04

21 Warangal 4117.33 4640.64

22 West Godavari 6639.35 6334.63

TOTAL: 103275.10 108618.38

STATEMENT No. 4

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF GRAM PANCHAYATS FOR THE YEAR 2010-11

Rs. In lakhs

Page 85

Sl.No.

Nameof the District

Tax Resources

Non-Tax Resources

Other Receipts

Government Grants Advance Deposits BRGF Salary

Grants Total

1 Adilabad 84.60 61.05 73.35 142.68 0.00 1.42 1145.10 0.00 1508.202 Ananthapur 234.67 535.97 623.68 864.65 41.88 46.51 1472.57 19.82 3839.753 Chittoor 414.07 584.76 1188.44 1020.6 2.542 84.79 1227.47 19.49 4542.164 East Godavari 1691.87 879.69 1901.28 1365.97 30.21 85.06 0.00 55.69 6009.775 Guntur 1057.73 832.95 639.99 1931.36 0.57 57.42 0.00 0.24 4520.266 Kadapa 382.67 492.38 515.49 887.86 2.00 1.44 1038.70 6.08 3326.627 Karimnagar 553.91 736.73 754.02 1982.14 0.63 3.41 1121.47 96.08 5248.398 Khammam 584.05 484.79 472.67 1024.90 0.00 70.52 1204.16 15.62 3856.719 Krishna 1773.38 1410.41 2844.54 928.70 4.86 102.72 0.00 65.40 7130.01

10 Kurnool 314.10 559.41 710.59 662.83 10.02 72.40 0.00 3.66 2333.0111 Mahaboobnagar 461.05 884.31 1079.48 3046.69 0.00 12.54 1461.84 0.00 6945.9112 Medak 587.69 333.61 797.58 773.16 0.02 0.18 1081.06 150.18 3723.4813 Nalgonda 365.44 603.77 380.13 650.56 0.00 0.00 1253.60 0.00 3253.5014 Nellore 592.55 844.84 1060.20 944.78 10.90 50.67 0.00 46.71 3550.6515 Nizamabad 480.69 284.32 19.29 1225.26 2.25 2.68 907.67 0.00 2922.1616 Prakasam 1374.17 515.53 688.32 1618.88 42.87 53.51 0.00 0.38 4293.6617 Ranga Reddy 1557.45 3490.02 3246.87 7194.47 7.32 1.25 1191.97 2.56 16691.9118 Srikakulam 250.94 465.85 1296.68 828.49 107.38 49.55 0.00 66.35 3065.2419 Visakhapatnam 347.89 432.97 642.88 771.75 15.66 47.39 0.00 1.87 2260.4120 Vizianagaram 185.40 470.37 307.90 1453.56 143.69 85.18 846.90 3.61 3496.6121 Warangal 800.07 385.52 277.13 1321.36 9.49 204.67 1119.09 0.00 4117.3322 West Godavari 1573.50 1384.91 2115.32 1387.32 1.60 176.17 0.00 0.53 6639.35

TOTAL: 15667.89 16674.16 21635.83 32027.97 433.89 1209.48 15071.60 554.27 103275.10

STATEMENT No. 4 (1)

Rs. In Lakhs

STATEMENT OF CONSOLIDATED RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR 2010-11(RECEIPT HEADS)

Page 86

Sl.No.

Nameof the District Salaries

Other Administrative

Expenditure

Maintenance Expenditure Works Advance Deposits BRGF Others Total

1 Adilabad 51.13 77.18 187.46 112.36 3.56 0.00 927.95 0.00 1359.642 Ananthapur 133.97 210.30 833.75 1139.95 59.28 12.69 1509.59 0.00 3899.533 Chittoor 230.42 288.43 1462.61 1592.27 52.64 43.94 1167.18 6.21 4843.704 East Godavari 433.23 1326.62 1619.45 2247.63 70.42 140.03 0.00 340.52 6177.905 Guntur 530.78 885.71 1096.87 2186.13 0.93 3.96 0.00 114.91 4819.296 Kadapa 67.16 295.75 303.37 1532.15 16.61 3.24 1975.55 15.56 4209.397 Karimnagar 431.74 480.00 1108.14 2590.49 3.32 2.81 1139.40 0.00 5755.908 Khammam 136.30 519.46 1168.49 1224.84 0.29 13.26 1388.18 0.00 4450.829 Krishna 192.38 1822.99 1920.18 2133.56 1.36 55.87 0.00 0.00 6126.3410 Kurnool 244.38 443.19 836.75 1027.99 106.11 25.01 0.00 0.00 2683.4311 Mahaboobnagar 547.23 489.21 567.86 3846.46 13.56 0.00 1594.32 0.00 7058.6412 Medak 281.46 544.42 1058.04 862.51 0.16 0.00 1292.36 0.01 4038.9613 Nalgonda 16.31 390.94 705.18 1079.50 0.00 0.00 1839.20 0.00 4031.1314 Nellore 236.09 581.54 732.83 1339.85 18.55 4.06 0.00 0.00 2912.9215 Nizamabad 168.05 616.68 526.09 766.56 1.60 3.61 834.50 0.00 2917.0916 Prakasam 693.85 508.61 693.82 1606.61 118.95 31.66 0.00 0.00 3653.5017 Ranga Reddy 1202.65 1158.41 2453.04 11785.86 4.80 0.69 1105.56 0.00 17711.0118 Srikakulam 443.57 548.47 1477.26 1520.86 517.66 229.69 0.00 0.00 4737.5119 Visakhapatnam 67.29 465.00 1064.16 960.94 66.50 6.48 0.00 0.00 2630.3720 Vizianagaram 41.04 150.09 736.97 1687.46 271.34 24.33 714.81 0.00 3626.0421 Warangal 836.57 358.32 747.42 1583.43 16.27 0.00 1098.63 0.00 4640.6422 West Godavari 589.46 1326.94 1935.65 2447.60 1.48 33.50 0.00 0.00 6334.63

TOTAL: 7575.06 13488.26 23235.39 45275.01 1345.39 634.83 16587.23 477.21 108618.38

STATEMENT No. 4 (2)

Rs. In Lakhs

STATEMENT OF CONSOLIDATED EXPENDITURE OF GRAM PANCHAYATS FOR THE YEAR 2010-11(PAYMENT HEADS)

Page 87

Sl. No. Name of the District Receipts Payments

1 Adilabad 587.42 579.21

2 Ananthapur 638.54 625.30

3 Chittoor 828.20 816.45

4 East Godavari 5280.45 2155.67

5 Guntur 1869.75 225.45

6 Kadapa 627.94 937.76

7 Karimnagar 591.28 614.14

8 Khammam 9443.66 9396.11

9 Krishna 5098.07 2208.02

10 Kurnool 11170.29 13741.23


12 Medak 1547.10 1858.36

13 Nalgonda 8041.00 7395.86

14 Nellore 1129.15 1941.42

15 Nizamabad 404.23 1410.70

16 Prakasam 1076.15 1351.56

17 Ranga Reddy 668.52 802.66

18 Srikakulam 161.15 152.58


20 Vizianagaram 3608.00 4463.63

21 Warangal 14552.97 12871.31

22 West Godavari 4668.71 4820.83

Total 76495.59 73920.69

STATEMENT No. 5

CONSOLIDATED STATEMENT OF GRANTS RELEASED TO ZILLA PARISHADS AND EXPENDITURE FROM GRANTS FOR THE YEAR

2010-11 (Rs in Lakhs)

Page 88

Sl. No. Name of the District Teaching

grant

Non-teaching

grant

Pension grant SGRY Central/

State fin

Rural Road main

Honorarium-chair

person

TA-DA-non

officials

TA-DA-Staff

RWS / ARWS

Constituency delop (M)

(MLA)NABARD

Office Contingencies

Contingencies to HSs

Backward Regions Grant Fund

Other grants Total

1 Adilabad 0.00 0.00 0.00 0.00 32.97 0.00 0.00 0.00 0.27 0.00 0.00 0.00 0.00 30.72 458.04 65.42 587.422 Ananthapur 0.00 0.00 0.00 0.00 49.12 0.00 0.00 0.00 0.39 0.00 0.00 0.00 0.00 0.00 589.03 0.00 638.543 Chittoor 0.00 213.10 0.00 0.00 117.06 0.00 0.00 7.05 0.00 0.00 0.00 0.00 0.00 0.00 490.99 0.00 828.204 East Godavari 67.59 0.00 41.03 0.00 485.77 0.00 0.00 14.59 0.61 0.00 0.00 0.00 0.51 0.00 0.00 4670.35 5280.455 Guntur 0.00 0.00 0.00 0.00 135.55 0.00 9.59 0.00 0.50 0.00 786.54 937.57 0.00 0.00 0.00 0.00 1869.756 Kadapa 0.00 0.00 0.00 0.00 176.20 0.00 0.00 0.55 0.00 0.00 0.00 0.00 35.71 0.00 415.48 0.00 627.947 Karimnagar 0.00 0.00 0.00 0.00 142.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 448.59 0.00 591.288 Khammam 0.00 387.23 0.08 335.44 1801.22 330.76 15.56 0.00 0.97 2869.70 493.75 606.53 0.00 42.00 481.67 2078.75 9443.669 Krishna 0.00 0.63 0.00 0.10 1962.17 250.04 0.00 16.66 0.52 0.00 445.05 1214.85 4.02 0.63 0.00 1203.40 5098.07

10 Kurnool 0.00 1115.59 0.00 0.00 526.44 317.33 0.00 13.08 0.49 1740.90 292.80 2991.08 0.00 0.00 0.00 4172.58 11170.2911 Mahaboobnagar 0.00 0.00 1.24 0.00 92.19 0.00 0.00 5.80 0.45 0.00 0.00 0.00 0.00 0.00 584.74 3142.04 3826.4612 Medak 0.00 0.00 0.00 12.50 1101.78 0.00 0.11 0.00 0.29 0.00 0.00 0.00 0.00 0.00 432.42 0.00 1547.1013 Nalgonda 64.86 125.72 6.19 3.82 545.93 0.00 0.00 55.67 0.29 6433.56 215.65 9.00 5.34 30.54 501.44 42.99 8041.0014 Nellore 0.00 0.00 41.85 0.00 570.26 0.00 7.86 1.68 0.00 0.00 0.00 0.00 4.34 0.00 0.00 503.16 1129.1515 Nizamabad 0.00 0.00 0.00 0.00 28.44 0.00 0.00 12.59 0.13 0.00 0.00 0.00 0.00 0.00 363.07 0.00 404.2316 Prakasam 0.00 0.00 3.79 0.00 289.70 0.00 0.00 0.00 0.66 0.00 782.00 0.00 0.00 0.00 0.00 0.00 1076.1517 Ranga Reddy 0.00 0.00 0.00 0.00 191.37 0.00 0.00 0.00 0.36 0.00 0.00 0.00 0.00 0.00 476.79 0.00 668.5218 Srikakulam 0.00 0.00 0.00 0.00 160.59 0.00 0.00 0.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 161.1519 Visakhapatnam 421.62 234.59 0.00 9.93 3.60 6.00 0.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 676.5520 Vizianagaram 0.00 0.00 0.00 0.00 2658.33 0.00 0.00 0.00 0.00 610.91 0.00 0.00 0.00 0.00 338.76 0.00 3608.0021 Warangal 0.00 0.00 2.27 11007.28 766.42 805.21 0.00 16.98 1.02 481.40 488.40 265.00 0.00 80.56 447.64 190.79 14552.9722 West Godavari 0.00 138.78 0.00 0.00 666.19 0.00 11.80 8.87 0.76 0.00 0.00 0.00 0.00 0.00 0.00 3842.31 4668.71

Total 554.07 2215.64 96.45 11369.07 12503.99 1709.34 45.73 154.08 7.71 12136.47 3504.19 6024.03 49.92 184.45 6028.66 19911.79 76495.59

STATEMENT No. 5 (1)CONSOLIDATED STATEMENT OF grants (Receipts) SANCTIONED TO ZILLA PARISHADS FOR THE YEAR 2010-11

Rs. In lakhs

Page 89

Sl. No. Name of the District Teaching

grantNon-teaching

grantPension grant SGRY Central/Stat

e fin

Rural Road

maintenance

Honorarium-chair

person

TA-DA-non

officials

TA-DA-Staff RWS/ ARES

Constituency development(MP)(MLA)

NABARDOffice

Contingencies

Contingencies to HSs

Backward Regions

Grant FundOther grants Total

1 Adilabad 0.00 0.00 0.00 0.00 109.49 0.00 5.73 0.00 2.39 0.00 0.00 0.00 0.00 19.99 419.93 19.99 577.522 Ananthapur 0.00 0.00 0.00 0.00 0.00 0.00 6.00 0.00 1.74 0.00 0.00 0.00 13.73 0.00 603.83 0.00 625.303 Chittoor 0.00 213.10 118.76 0.00 52.98 0.00 0.00 7.05 0.86 0.00 0.00 0.00 0.00 0.00 423.70 0.00 816.454 East Godavari 0.00 73.11 356.85 0.00 876.11 0.00 15.83 14.59 0.61 0.00 0.00 0.00 116.03 702.54 0.00 702.54 2858.215 Guntur 0.00 0.00 204.46 0.00 0.00 0.00 20.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 225.456 Kadapa 0.00 0.00 0.00 0.00 222.79 0.00 0.00 1.73 0.00 0.00 0.00 0.00 26.82 0.00 686.42 0.00 937.767 Karimnagar 0.00 0.00 0.00 0.00 142.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 471.45 0.00 614.148 Khammam 0.00 372.57 0.00 329.38 1736.11 330.67 15.84 0.00 0.97 2644.34 417.31 542.36 1.62 2386.23 610.06 2386.23 11773.699 Krishna 0.00 0.00 254.94 0.00 1033.89 206.90 10.70 12.82 0.38 0.00 393.24 72.53 2.07 209.01 0.00 209.01 2405.49

10 Kurnool 0.00 2826.64 49.11 0.00 496.52 204.41 0.00 13.96 1.36 23.79 358.49 1362.63 17.25 8387.07 0.00 8387.07 22128.3011 Mahaboobnagar 0.00 0.00 0.00 0.00 121.57 0.00 0.00 7.74 2.45 0.00 0.00 0.00 0.00 4065.82 690.01 4065.82 8953.4112 Medak 0.00 0.00 0.00 12.50 1062.55 0.00 0.11 0.00 37.00 0.00 0.00 0.00 0.00 0.00 746.20 0.00 1858.3613 Nalgonda 27.48 125.72 4.94 5.98 331.92 0.00 0.00 19.80 0.62 6360.78 5.92 13.81 14.41 21.98 452.00 21.98 7407.3414 Nellore 0.00 0.00 447.91 0.00 1447.25 0.00 0.00 3.00 0.00 0.00 0.00 0.00 43.26 0.00 0.00 0.00 1941.4215 Nizamabad 0.00 0.00 0.00 0.00 1117.80 0.00 0.00 12.59 0.13 0.00 0.00 0.00 0.00 0.00 280.18 0.00 1410.7016 Prakasam 0.00 0.00 4.56 0.00 1145.41 0.00 0.00 0.00 0.00 0.00 201.59 0.00 0.00 0.00 0.00 0.00 1351.5617 Ranga Reddy 0.00 0.00 0.00 0.00 333.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 469.64 0.00 802.6618 Srikakulam 0.00 0.00 0.00 118.58 23.83 6.28 3.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 152.5819 Visakhapatnam 421.62 215.58 0.00 17.69 0.00 8.77 1.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 664.8520 Vizianagaram 0.00 0.00 0.00 0.00 3117.16 0.00 0.00 0.00 0.00 956.48 0.00 0.00 0.00 0.00 389.99 0.00 4463.6321 Warangal 0.00 0.00 33.42 10164.67 492.93 571.73 0.00 16.78 0.82 455.18 300.00 268.98 0.00 174.66 368.04 174.66 13021.8722 West Godavari 0.00 138.78 0.00 0.00 818.31 0.00 11.80 8.87 0.76 0.00 0.00 0.00 0.00 3842.31 0.00 3842.31 8663.14

Total 449.10 3965.50 1474.95 10648.80 14682.33 1328.76 92.08 118.93 50.09 10440.57 1676.55 2260.31 235.19 19809.61 6611.45 19809.61 93653.83

STATEMENT No. 5 (2)

CONSOLIDATED STATEMENT OF GRANTS (Payments)SANCTIONED TO ZILLA PARISHADS FOR THE YEAR 2010-11Rs. In lakhs

Page 90

Sl No. Name of the District Receipts Payment

1 Adilabad 4724.79 4042.16

2 Ananthapur 1963.26 1877.19

3 Chittoor 18751.32 17945.20

4 East Godavari 2815.04 2926.24

5 Guntur 1153.14 1369.95

6 Kadapa 1220.75 1655.39

7 Karimnagar 956.24 1078.74

8 Khammam 9102.76 9340.17

9 Krishna 415.14 273.34

10 Kurnool 461.32 728.20


12 Medak 734.35 841.40

13 Nalgonda 3777.99 3510.41

14 Nellore 93.30 164.94

15 Nizamabad 2230.66 997.22

16 Prakasam 202.79 167.01

17 Ranga Reddy 2428.10 2211.69

18 Srikakulam 878.64 815.79


20 Vizianagaram 2042.79 2050.33

21 Warangal 8791.40 8883.96

22 West Godavari 287.09 355.24

TOTAL: 67013.31 64900.64

STATEMENT No. 6

CONSOLIDATED STATEMENT OF GRANTS SANCTIONED TO MANDAL PARISHADS FOR THE YEAR 2010-11 AND

EXPENDITURE INCURRED

Rs. In lakhs

Page 91

Sl No.

Name of the District Teaching Non-

teaching SGRY Central Finance

State Finance

Rural road

maintenance

Honorarium to

Presidents

TA-Dato non-

officials

TA-DA to officers &

Staff

Minor irrigation BRGF Natural

calamityBuilding

grantRWS/ ARWS

Election grant

MP, MLA Lads

NABARD Other Total

1 Adilabad 0.00 658.82 0.23 435.03 15.67 0.00 31.98 4.32 0.67 0.00 687.06 0.00 0.00 0.00 0.00 336.46 0.00 2554.55 4724.792 Ananthapur 0.00 0.00 0.07 738.05 21.05 0.00 23.02 7.45 2.82 0.49 883.54 0.00 0.00 0.00 0.00 0.00 0.00 286.77 1963.263 Chittoor 4974.68 400.62 138.15 56.26 23.82 0.00 35.18 19.16 2.21 0.00 736.48 0.00 0.00 12.16 0.00 0.00 0.00 12352.60 18751.324 East Godavari 2446.09 0.00 0.00 70.12 41.64 0.00 33.98 9.72 4.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 209.48 2815.045 Guntur 0.00 188.87 166.52 42.14 20.21 0.00 18.47 6.39 3.36 0.00 0.00 0.00 1.40 0.00 0.00 0.00 9.35 696.43 1153.146 Kadapa 0.00 0.00 0.00 56.25 48.26 0.00 32.43 0.00 2.51 0.00 623.22 0.00 0.00 0.00 0.00 0.00 0.00 458.08 1220.757 Karimnagar 0.00 0.00 0.00 42.23 20.14 0.00 20.57 7.23 2.26 0.00 672.88 0.00 0.00 0.00 0.00 48.52 0.00 142.42 956.248 Khammam 3193.77 91.24 0.31 75.96 19.45 0.37 24.56 5.20 1.47 0.85 722.51 0.00 0.00 0.00 0.00 0.00 0.00 4967.07 9102.769 Krishna 10.54 20.81 78.06 59.36 10.88 0.58 13.44 1.23 4.07 0.00 0.00 0.87 0.00 0.00 0.00 0.00 0.00 216.17 415.14

10 Kurnool 0.00 0.00 2.06 43.24 31.17 0.00 20.49 2.09 1.83 10.24 0.00 0.00 0.00 1.36 0.06 0.00 0.00 348.78 461.3211 Mahaboobnagar 0.00 0.00 0.00 112.83 63.48 0.00 35.24 27.05 8.97 0.00 877.10 0.00 0.00 0.00 0.00 0.00 0.00 1133.35 2258.0212 Medak 0.00 0.00 0.00 32.68 22.62 0.00 8.40 2.80 9.02 0.00 648.63 0.00 0.00 0.00 0.00 0.00 0.00 10.20 734.3513 Nalgonda 2418.25 259.69 0.00 69.11 28.36 0.00 10.84 9.20 1.31 146.50 752.16 0.00 0.00 0.00 0.00 57.06 17.98 7.53 3777.9914 Nellore 0.00 0.00 0.00 49.71 22.28 0.00 19.19 0.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.45 93.3015 Nizamabad 10.76 0.00 0.00 31.05 9.13 0.00 0.85 8.83 0.00 0.00 544.60 0.00 0.00 0.00 0.00 0.00 0.00 1625.44 2230.6616 Prakasam 0.00 0.00 0.00 72.23 31.66 0.00 49.21 0.00 5.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 44.59 202.7917 Ranga Reddy 7.98 45.23 3.20 86.43 15.85 0.00 3.45 19.08 2.11 0.00 715.18 0.00 0.00 4.67 0.25 0.00 0.00 1524.67 2428.1018 Srikakulam 0.00 0.00 0.35 20.99 19.42 0.00 27.15 0.26 2.52 0.00 0.00 0.00 0.00 0.00 0.00 7.46 0.00 800.49 878.6419 Visakhapatnam 421.62 234.59 0.00 51.12 23.86 0.00 26.27 12.42 2.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.47 949.82 1724.4220 Vizianagaram 0.00 0.00 0.00 59.70 17.00 0.75 16.78 14.88 1.05 0.00 508.14 0.00 0.00 0.00 0.00 0.00 0.00 1424.49 2042.7921 Warangal 0.00 28.23 0.72 82.60 18.77 0.00 27.44 0.12 0.61 0.00 671.46 0.00 0.00 0.00 0.00 9.32 6010.21 1941.92 8791.4022 West Godavari 0.00 0.00 0.00 9.62 31.74 0.00 36.15 3.55 2.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 203.79 287.09

TOTAL: 13483.69 1928.10 389.67 2296.71 556.46 1.70 515.09 161.65 60.39 158.08 9042.96 0.87 1.40 18.19 0.31 458.82 6040.01 31900.09 67013.31

Rs. In lakhs

STATEMENT No. 6(1)

CONSOLIDATED STATEMENT OF GRANTS (Receipts) TO MANDAL PARISHADS FOR THE YEAR 2010-11

Page 92

Sl No.

Name of the District Teaching Non-

teaching SGRY Central Finance

State Finance

Rural road

maintenance

Honorarium to Preside

nts

TA-DA to non-officials

TA-DA to

officers& Staff

Minor irrigation BRGF Natural

clamityBuilding

grantRWS / ARWS

Election grant

Assembly MP,

MLANABARD Other

grants Total

1 Adilabad 0.00 724.91 4.34 357.53 15.93 0.00 106.06 7.54 4.21 0.00 477.41 0.00 0.00 0.00 0.00 341.41 0.00 2480.23 4042.162 Ananthapur 0.00 0.23 1.47 668.42 15.46 48.27 22.57 9.08 6.48 4.41 905.75 0.00 0.00 6.26 0.00 0.00 0.00 188.79 1877.193 Chittoor 5802.06 406.33 87.06 71.81 16.51 5.70 41.52 27.48 41.50 2.20 702.05 0.00 3.00 53.52 0.00 0.00 0.00 10684.46 17945.204 East Godavari 2446.09 0.00 0.00 91.32 35.36 0.00 93.55 14.03 27.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 218.59 2926.245 Guntur 0.00 124.03 158.73 55.69 18.17 91.42 30.90 37.79 10.45 16.99 0.00 0.00 0.68 21.75 0.00 6.40 0.00 796.95 1369.956 Kadapa 0.00 0.00 0.00 48.20 29.58 0.00 32.69 0.00 9.52 0.00 1088.26 0.00 0.00 0.00 0.00 0.00 0.00 447.14 1655.397 Karimnagar 0.00 0.02 0.00 44.88 18.77 0.00 21.11 7.12 2.15 0.00 809.73 0.00 0.00 0.00 0.00 28.65 0.00 146.31 1078.748 Khammam 3192.80 55.75 0.49 100.12 17.93 0.00 33.51 2.40 5.25 0.85 786.16 0.00 0.00 0.00 0.00 0.00 0.00 5144.91 9340.179 Krishna 0.00 55.75 78.46 44.10 12.13 2.11 18.47 22.32 13.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26.55 273.34

10 Kurnool 0.00 0.00 13.85 62.19 19.96 12.33 14.74 4.43 5.90 15.89 0.00 0.00 0.00 3.56 0.72 0.00 0.00 574.63 728.2011 Mahaboobnagar 0.00 0.00 0.00 96.13 69.84 0.00 32.14 19.17 9.56 0.00 956.11 0.00 0.00 0.00 0.00 0.00 0.00 941.77 2124.7212 Medak 0.00 0.00 0.00 15.08 16.89 0.00 1.02 2.60 4.02 0.00 792.71 0.00 0.00 0.00 0.00 0.00 0.00 9.08 841.4013 Nalgonda 2139.52 259.69 0.00 69.94 21.51 0.00 15.24 14.37 12.89 158.83 720.60 0.00 0.00 0.00 0.00 70.83 0.00 26.99 3510.4114 Nellore 0.00 0.00 0.00 64.62 15.94 11.85 35.07 4.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 33.03 164.9415 Nizamabad 0.00 12.56 0.00 19.49 5.74 0.00 0.31 0.00 0.00 0.00 520.10 0.00 0.00 0.00 0.00 0.00 0.00 439.02 997.2216 Prakasam 0.00 0.00 0.00 65.07 33.55 0.00 57.71 0.00 10.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 167.0117 Ranga Reddy 0.83 45.23 6.06 47.93 14.36 34.78 3.13 18.72 3.20 0.00 568.62 0.00 0.00 0.00 2.43 0.00 0.00 1466.40 2211.6918 Srikakulam 0.00 0.00 0.33 31.12 19.02 11.01 26.14 0.20 16.49 0.00 0.00 0.00 0.00 0.00 0.00 4.21 0.00 707.27 815.7919 Visakhapatnam 421.62 215.58 0.00 107.55 13.56 0.00 27.04 1.55 11.21 0.00 0.00 0.00 0.00 0.18 0.00 0.00 5.20 737.87 1541.3620 Vizianagaram 0.00 0.00 0.00 54.56 20.05 0.74 14.61 17.27 2.27 0.00 516.34 0.00 0.00 0.00 0.00 0.00 0.00 1424.49 2050.3321 Warangal 0.00 38.23 0.43 44.98 10.67 8.33 26.11 0.18 2.09 0.00 686.27 0.00 0.00 0.00 0.00 3.93 6077.28 1985.46 8883.9622 West Godavari 0.00 0.00 0.00 50.77 26.22 0.00 36.76 5.13 12.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 224.35 355.24

TOTAL: 14002.92 1938.31 351.22 2211.50 467.15 226.54 690.40 215.80 210.63 199.17 9530.11 0.00 3.68 85.27 3.15 455.43 6082.48 28704.29 64900.64

Rs. In lakhs

STATEMENT No. 6(2)

CONSOLIDATED STATEMENT OF GRANTS (Payments) TO MANDAL PARISHADS FOR THE YEAR 2010-11

Page 93

Sl No. Name of the District Receipts Payment

1 Adilabad 1254.37 1069.09

2 Ananthapur 3633.06 2791.13

3 Chittoor 3558.50 3230.82

4 East Godavari 1651.20 1970.25

5 Guntur 1054.37 1571.36

6 Kadapa 2008.82 2975.90

7 Karimnagar 2937.01 3409.09

8 Khammam 2212.09 2311.58

9 Krishna 994.13 1107.21

10 Kurnool 687.01 779.60


12 Medak 2535.15 2724.33

13 Nalgonda 1904.16 2714.73

14 Nellore 984.02 934.66

15 Nizamabad 1419.09 1283.64

16 Prakasam 2993.05 1949.28

17 Ranga Reddy 2129.97 2386.17

18 Srikakulam 894.84 1271.91


20 Vizianagaram 1532.64 1441.54

21 Warangal 3598.10 2527.19

22 West Godavari 1387.85 1623.30

TOTAL: 45538.79 46121.17

STATEMENT No. 7

STATEMENT OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF GRAM PANCHAYATS UNDER

CONSOLIDATE FIGURES GRANT FOR THE YEAR 2010-11

Rs. In lakhs

Page 94

Sl. No. Name of the District Salary Grant JRY/SGRY X/XI finance State Finance BRGF Other grant Total

1 Adilabad 0.00 0.00 81.58 13.95 1145.10 13.74 1254.372 Ananthapur 923.27 0.00 713.56 144.13 1472.57 379.53 3633.063 Chittoor 540.32 15.92 853.70 448.96 1227.47 472.13 3558.504 East Godavari 55.69 0.00 965.58 225.15 0.00 404.78 1651.205 Guntur 0.24 3.26 872.92 177.95 0.00 0.00 1054.376 Kadapa 205.60 0.00 647.13 117.39 1038.70 0.00 2008.827 Karimnagar 85.59 0.01 801.12 156.42 1121.47 772.40 2937.018 Khammam 15.26 0.05 756.05 128.38 1204.16 108.19 2212.099 Krishna 65.40 0.05 769.48 148.20 0.00 11.00 994.1310 Kurnool 1.67 0.00 538.40 146.50 0.00 0.44 687.0111 Mahaboobnagar 0.00 0.00 2345.86 564.23 1461.84 0.00 4371.9312 Medak 870.02 0.00 488.15 95.87 1081.06 0.05 2535.1513 Nalgonda 0.00 0.00 536.17 114.39 1253.60 0.00 1904.1614 Nellore 57.11 0.00 647.54 151.13 0.00 128.24 984.0215 Nizamabad 0.00 0.00 453.91 57.51 907.67 0.00 1419.0916 Prakasam 1374.17 0.00 808.26 239.05 0.00 571.57 2993.0517 Ranga Reddy 380.36 6.42 247.65 71.39 1191.97 232.18 2129.9718 Srikakulam 66.35 28.59 643.14 156.76 0.00 0.00 894.8419 Visakhapatnam 1.87 0.00 610.35 106.99 0.00 1078.22 1797.4320 Vizianagaram 5.29 0.00 566.96 113.49 846.90 0.00 1532.6421 Warangal 964.38 294.99 718.10 224.41 1119.09 277.13 3598.1022 West Godavari 0.53 0.56 999.61 192.95 0.00 194.20 1387.85

TOTAL: 5613.12 349.85 16065.22 3795.20 15071.60 4643.80 45538.79

STATEMENT OF CONSOLIDATED GRANT RECEIPTS OF GRAM PANCHAYATS FOR THE YEAR 2010-11

Rs. In lakhs

STATEMENT No. 7 (1)

Page 95

Sl No.

Name of the District Salary Grant JRY/SGRY X/XI finance State Finance BRGF Other grant Total

1 Adilabad 45.11 0.00 86.88 9.15 927.95 0.00 1069.092 Ananthapur 79.87 1.93 787.41 77.78 1509.59 334.56 2791.133 Chittoor 634.24 6.59 788.13 108.06 1167.18 526.62 3230.824 East Godavari 378.80 0.00 1044.81 179.94 0.00 366.70 1970.255 Guntur 425.02 82.63 978.65 85.06 0.00 0.00 1571.366 Kadapa 269.24 0.00 648.33 82.78 1975.55 0.00 2975.907 Karimnagar 77.89 0.11 1061.67 155.23 1139.40 974.79 3409.098 Khammam 15.26 5.04 812.70 90.40 1388.18 0.00 2311.589 Krishna 192.38 6.44 752.50 154.59 0.00 1.30 1107.2110 Kurnool 115.86 0.00 526.34 95.36 0.00 42.04 779.6011 Mahaboobnagar 0.00 0.00 1942.05 501.84 1594.32 0.00 4038.2112 Medak 878.94 0.00 474.84 78.18 1292.36 0.01 2724.3313 Nalgonda 0.00 0.00 764.99 110.54 1839.20 0.00 2714.7314 Nellore 236.09 0.00 538.47 92.61 0.00 67.49 934.6615 Nizamabad 0.00 0.00 398.75 50.39 834.50 0.00 1283.6416 Prakasam 693.85 2.52 621.37 122.93 0.00 508.61 1949.2817 Ranga Reddy 652.59 18.17 375.64 104.90 1105.56 129.31 2386.1718 Srikakulam 443.57 153.78 263.20 411.36 0.00 0.00 1271.9119 Visakhapatnam 67.29 0.00 490.07 50.18 0.00 1402.64 2010.1820 Vizianagaram 41.04 0.00 635.88 49.81 714.81 0.00 1441.5421 Warangal 0.00 332.27 1019.26 77.03 1098.63 0.00 2527.1922 West Godavari 589.46 3.21 846.52 184.11 0.00 0.00 1623.30

Total 5836.50 612.69 15858.46 2872.23 16587.23 4354.07 46121.17

STATEMENT OF CONSOLIDATED GRANT PAYMENT OF GRAM PANCHAYATS FOR THE YEAR 2010-11

Rs. In lakhs

STATEMENT No. 7 (2)

Page 96

Sl. No.

NAME OF THE INSTITUTION

No. OF OBJECTIONS AMOUNT

1 ZILLA PARISHADS 1486 23307.77

2 MANDAL PARISHADS 17292 5455.62

3 GRAM PANCHAYATS 369717 16752.89

TOTAL 388495 45516.28

STATEMENT No.8

STATEMENT SHOWING AUDIT OBJECTIONS RAISED DURING THE YEAR 2010-11

Rs. In Lakhs

Page 97

No. Amount No. Amount No. Amount No. Amount1 Adilabad 48 114.48 455 174.76 564 141.56 1067 430.802 Ananthapur 43 19.10 1823 226.90 23960 526.79 25826 772.793 Chittoor 24 4.05 813 177.97 19398 641.02 20235 823.044 East Godavari 82 769.12 1246 274.83 19575 817.81 20903 1861.765 Guntur 95 109.59 801 199.24 29162 978.83 30058 1287.666 Kadapa 85 314.03 1077 146.44 15710 260.72 16872 721.197 Karimnagar 37 66.77 740 159.20 4961 257.36 5738 483.338 Khammam 91 2714.43 736 298.86 11581 478.77 12408 3492.069 Krishna 130 2221.83 518 179.62 12288 450.40 12936 2851.8510 Kurnool 38 139.03 595 134.88 21269 413.81 21902 687.7211 Mahaboobnagar 18 575.20 773 160.92 10864 474.86 11655 1210.9812 Medak 0 0.00 519 193.41 8113 747.79 8632 941.2013 Nalgonda 14 16.12 564 592.45 16446 525.18 17024 1133.7514 Nellore 32 7.60 663 187.54 13279 631.59 13974 826.7315 Nizamabad 28 6194.95 501 237.50 8440 738.97 8969 7171.4216 Prakasam 134 213.26 908 109.86 18327 728.00 19369 1051.1217 Ranga Reddy 55 6162.33 893 530.08 11072 1341.73 12020 8034.1418 Srikakulam 137 1811.14 908 850.52 22718 568.53 23763 3230.1919 Vishakapatnam 64 757.58 639 82.41 58923 4315.53 59626 5155.5220 Vizianagaram 106 126.34 637 69.55 10614 453.93 11357 649.8221 Warangal 116 414.96 913 349.97 16320 671.48 17349 1436.4122 West Godavari 109 555.86 570 118.70 16133 588.23 16812 1262.79

TOTAL: 1486 23307.77 17292 5455.62 369717 16752.89 388495 45516.28

STATEMENT No.9 (Dist wise)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS CONSOLIDATION FOR THE YEAR 2010-11

Rs. In lakhs

Sl. No.

NAME OF THE DISTRICT

ZILLA PARISHADS MANDAL PARISHADS

GRAM PANCHAYATS TOTAL

Page 98

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT

1 Variation in Account Figures 30 946.05 603 60.91 3989 80.64 4622 1087.612 Excess Utilisation of Grants / Funds 15 126.07 885 328.76 7213 282.33 8113 737.163 Diversion of Grants / Funds 23 471.88 538 120.41 739 61.42 1300 653.714 Non-utilisation of grants before the lapsable date 25 96.07 315 524.44 14024 112.32 14364 732.835 Mis-utilisation of Grants / Funds 2 13.97 60 42.59 434 92.64 496 149.206 Non-utilisation of Earmarked Funds 26 239.50 1426 847.94 101 3.89 1553 1091.337 Non-collection of dues 129 544.58 415 57.60 24978 2816.74 25522 3418.928 Advances pending adjsutemnt 43 193.00 338 209.46 6471 1349.85 6852 1752.319 Violation of Rules 311 8629.14 2740 1207.88 84597 3469.79 87648 13306.81

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 107 143.74 2062 587.03 26580 2100.35 28749 2831.12

11 Non Production of Records 356 9882.65 2291 1151.52 43931 3520.37 46578 14554.5512 Misappropriations 0 0.00 108 30.55 672 208.86 780 239.4113 Excess Payments 92 89.58 394 35.96 1046 165.43 1532 290.9714 Wasteful Expenditure 6 11.46 64 10.48 282 39.65 352 61.5915 Instances of cases of unaccounted for cash / stores 2 0.76 43 4.33 437 16.48 482 21.5716 Pendency of Utilisation Certificates 77 1810.97 855 103.27 5286 2128.49 6218 4042.7317 Surcharge Certificates recovery pending 1 2.03 3 0.00 154 0.00 158 2.0318 Others 233 106.31 4136 132.48 148783 303.64 153152 542.4319 D.D/Cheques received but not realized with in time 8 0.00 16 0.00 0 0.00 24 0.00

Total: 1486 23307.77 17292 5455.62 369717 16752.89 388471 45516.28

STATEMENT No. 9(Category wise)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2010-

11

ZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS

Rs. In lakhsTOTALSl.

No. NAME OF THE CATEGORY

Page 99

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 2 0.00 3 0.00 5 0.002 Ananthapur 0 0.00 335 0.00 302 1.59 637 1.593 Chittoor 0 0.00 38 2.67 45 4.44 83 7.114 East Godavari 4 0.00 4 0.19 7 0.00 15 0.195 Guntur 2 0.00 1 0.00 89 6.68 92 6.686 Kadapa 2 0.00 16 0.00 330 1.99 348 1.997 Karimnagar 1 0.00 15 0.99 147 0.33 163 1.328 Khammam 1 0.20 6 5.52 6 3.77 13 9.499 Krishna 1 0.00 3 0.00 15 0.82 19 0.8210 Kurnool 0 0.00 17 1.72 283 1.92 300 3.6411 Mahaboobnagar 2 0.00 11 2.90 66 0.85 79 3.7512 Medak 0 0.00 7 1.33 94 4.85 101 6.1813 Nalgonda 1 0.00 14 0.20 323 0.44 338 0.6414 Nellore 0 0.00 9 0.00 4 0.04 13 0.0415 Nizamabad 1 34.29 16 36.76 23 4.84 40 75.8916 Prakasam 1 12.03 56 0.00 508 0.00 565 12.0317 Ranga Reddy 2 0.45 16 5.00 77 7.66 95 13.1118 Srikakulam 2 847.20 3 1.11 407 2.68 412 850.9919 Visakhapatnam 3 0.00 15 1.09 980 27.68 998 28.7720 Vizianagaram 0 0.00 0 0.00 192 4.46 192 4.4621 Warangal 1 0.00 19 1.43 13 1.51 33 2.9422 West Godavari 6 51.88 0 0.00 75 4.09 81 55.97

Total 30 946.05 603 60.91 3989 80.64 4622 1087.61

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 2010-11Rs. In lakhs

TOTALSl. No. NAME OF THE DISTRICT ZILLA PARISHADS

Page 100

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 1 0.00 55 14.29 4 0.22 60 14.512 Ananthapur 0 0.00 77 22.37 275 0.22 352 22.593 Chittoor 0 0 117 61.96 319 2.89 436 64.854 East Godavari 0 0.00 34 12.69 1057 46.06 1091 58.755 Guntur 1 5.76 47 7.38 627 22.43 675 35.576 Kadapa 4 0.00 68 2.27 380 6.40 452 8.677 Karimnagar 0 0.00 48 10.42 192 6.54 240 16.968 Khammam 0 0.00 3 0.29 154 5.37 157 5.669 Krishna 0 0.00 7 0.00 400 7.95 407 7.9510 Kurnool 0 0.00 9 0.00 365 10.12 374 10.1211 Mahaboobnagar 0 0.00 63 3.19 48 13.75 111 16.9412 Medak 0 0.00 17 21.45 20 0.68 37 22.1313 Nalgonda 1 0.00 60 49.01 322 0.44 383 49.4514 Nellore 0 0.00 47 12.99 36 1.12 83 14.1115 Nizamabad 0 0.00 37 44.68 367 41.33 404 86.0116 Prakasam 0 0.00 14 0.72 97 1.73 111 2.4517 Ranga Reddy 0 0.00 36 6.21 34 1.67 70 7.8818 Srikakulam 2 0.00 14 8.98 397 8.97 413 17.9519 Visakhapatnam 3 86.36 41 1.52 1005 21.87 1049 109.7520 Vizianagaram 2 0.00 14 3.13 85 0.00 101 3.1321 Warangal 1 33.95 58 41.87 419 55.99 478 131.8122 West Godavari 0 0.00 19 3.35 610 26.58 629 29.93

Total 15 126.07 885 328.76 7213 282.33 8113 737.16

STATEMENT No. 9 (2)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS UTILISATION OF GRANTS / FUNDS AND AMOUNT

INVOLVED FOR THE YEAR 2010-11

TOTALRs. In lakhs

Sl. No.



Page 101


Total 23 471.88 538 120.41 739 61.42 1300 653.7126

STATEMENT No. 9 (3)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON DIVERSION OF GRANTS / FUNDS AND AMOUNT INVOLVED FOR

THE YEAR 2010-11

TOTAL

Rs. In lakhs

Sl. No.



Page 102


Total 25 96.07 315 524.44 14024 112.32 14364 732.83

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 2010-11

TOTALRs. In lakhs

Sl. No.



Page 103


TOTAL: 2 13.97 60 42.59 434 92.64 496 149.20

STATEMENT No. 9 (5)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS - UTILISATION OF GRANTS / FUNDS AND AMOUNT

INVOLVED FOR THE YEAR 2010-11

TOTAL

Rs. In lakhs

Sl. No.



Page 104


TOTAL: 26 239.50 1426 847.94 101 3.89 1553 1091.33

STATEMENT No. 9 (6)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-UTILISATION OF EARMARKED FUNDS AND

AMOUNT INVOLVED FOR THE YEAR 2010-11Rs. In lakhs

TOTALSl. No.



Page 105


Total 129 544.58 415 57.60 24978 2816.74 25522 3418.92

STATEMENT No. 9 (7)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-COLLECTION OF DUES AND AMOUNT INVOLVED FOR THE YEAR 2010-11

TOTALSl. No.



Page 106


Total 43 193.00 338 209.46 6471 1349.85 6852 1752.31

STATEMENT No. 9 (8)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON ADVANCES PENDING ADJUSTMENT AND AMOUNT INVOLVED FOR THE YEAR 2010-11

TOTALSl. No.



Page 107


Total 311 8629.14 2740 1207.88 84597 3469.79 87648 13306.81

STATEMENT No. 9 (9)

Rs. In lakhs

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON VIOLATION OF RULES AND AMOUNT INVOLVED FOR THE YEAR 2010-11

TOTALSl. No.



Page 108


TOTAL: 107 143.74 2062.00 587.03 26580 2100.35 28749 2831.12

STATEMENT No. 9 (10)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-REMITTANCE OF DEDUCTIONS AMOUNT INVOLVED FOR

THE YEAR 2010-11Rs. In lakhs

Sl. No.


ZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS TOTAL

Page 109


Total 356 9882.65 2291 1151.52 43931 3520.37 46578 14554.55

STATEMENT No. 9 (11)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON NON-PRODUCTION OF RECORDS AND AMOUNT

INVOLVED FOR THE YEAR 2010-11Rs. In lakhs

TOTALSl. No.



Page 110


Total 0 0.00 108 30.55 672 208.86 780 239.41

STATEMENT No. 9 (12)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON MIS-APPROPRIATIONS AND AMOUNT INVOLVED FOR

THE YEAR 2010-11Rs. In lakhs

TOTALSl. No.



Page 111

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 1 0.01 1 0.00 2 0.012 Ananthapur 5 0.39 49 1.45 56 6.49 110 8.333 Chittoor 4 2.11 14 0.74 1 0.04 19 2.894 East Godavari 10 5.44 12 0.26 32 1.57 54 7.275 Guntur 5 0.57 10 1.95 60 2.60 75 5.126 Kadapa 2 6.83 28 1.20 8 0.57 38 8.607 Karimnagar 4 0.37 9 0.22 45 2.09 58 2.688 Khammam 2 0.09 28 1.15 10 1.73 40 2.979 Krishna 5 0.95 7 0.13 9 1.07 21 2.1510 Kurnool 6 0.20 20 1.12 14 0.38 40 1.7011 Mahaboobnagar 2 0.29 44 2.88 445 22.45 491 25.6212 Medak 0 0.00 36 4.61 17 2.55 53 7.1613 Nalgonda 0 0.00 14 0.00 0 0.00 14 0.0014 Nellore 0 0.00 17 0.65 12 0.49 29 1.1415 Nizamabad 1 52.17 22 7.25 239 95.06 262 154.4816 Prakasam 0 0.00 19 2.02 12 0.60 31 2.6217 Ranga Reddy 9 2.94 2 7.20 42 5.05 53 15.1918 Srikakulam 0 0.00 3 0.16 1 0.59 4 0.7519 Visakhapatnam 6 0.81 32 1.48 0 14.00 1.76 16.2920 Vizianagaram 22 9.51 11 0.75 9 0.96 42 11.2221 Warangal 8 6.60 13 0.40 9 2.83 30 9.8322 West Godavari 1 0.31 3 0.33 24 4.31 28 4.95

Total 92 89.58 394 35.96 1046 165.43 1495.76 290.97

STATEMENT No. 9 (13)

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON EXCESS PAYMENTS AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs

TOTALSl. No.



GRAM PANCHAYATS

Page 112


Total 6 11.46 64 10.48 282 39.65 352 61.59


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON WASTEFUL EXPENDITURE AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs

TOTALSl. No.



GRAM PANCHAYATS

Page 113

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 0 0.00 0 0.00 0 0.00 0 0.002 Ananthapur 0 0.00 0 0.00 0 0.00 0 0.003 Chittoor 0 0.00 2 0.28 0 0 2 0.284 East Godavari 0 0.00 0 0.00 0 0.00 0 0.005 Guntur 0 0.00 0 0.00 3 0.00 3 0.006 Kadapa 0 0.00 2 1.26 0 0.00 2 1.267 Karimnagar 0 0.00 0 0.00 3 0.06 3 0.068 Khammam 0 0.00 0 0.00 0 0.00 0 0.009 Krishna 0 0.00 0 0.00 0 0.00 0 0.0010 Kurnool 0 0.00 0 0.00 77 0.21 77 0.2111 Mahaboobnagar 0 0.00 0 0.00 92 2.70 92 2.7012 Medak 0 0.00 0 0.00 0 0.00 0 0.0013 Nalgonda 0 0.00 0 0.00 0 0.00 0 0.0014 Nellore 0 0.00 0 0.00 2 0.24 2 0.2415 Nizamabad 1 0.76 1 1.56 6 0.00 8 2.3216 Prakasam 0 0.00 0 0.00 22 6.62 22 6.6217 Ranga Reddy 0 0.00 28 1.23 3 3.87 31 5.1018 Srikakulam 0 0.00 0 0.00 0 0.00 0 0.0019 Visakhapatnam 0 0.00 2 0.00 121 0.98 0.98 0.9820 Vizianagaram 0 0.00 8 0.00 106 0.00 114 0.0021 Warangal 0 0.00 0 0.00 2 1.80 2 1.8022 West Godavari 1 0.00 0 0.00 0 0.00 1 0.00

Total 2 0.76 43 4.33 437 16.48 359.98 21.57

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 2010-11Rs. In lakhs

TOTALSl. No.



GRAM PANCHAYATS

Page 114

No. AMOUNT No. AMOUNT No. AMOUNT No. AMOUNT1 Adilabad 5 67.51 28 4.24 4 0.00 37 71.752 Ananthapur 4 0.00 67 30.97 6 0.00 77 30.973 Chittoor 0 0 47 4.13 456 0.01 503 4.144 East Godavari 1 0.00 44 6.35 338 2.54 383 8.895 Guntur 9 0.00 46 0.00 619 0.00 674 0.006 Kadapa 5 0.00 105 0.00 608 0.00 718 0.007 Karimnagar 12 0.00 50 14.18 273 25.41 335 39.598 Khammam 16 1694.09 65 0.13 0 0.00 81 1694.229 Krishna 1 0.00 13 0.00 52 0.00 66 0.0010 Kurnool 1 0.00 37 1.76 98 0.26 136 2.0211 Mahaboobnagar 1 0.00 35 0.21 4 0.00 40 0.2112 Medak 0 0.00 30 0.00 0 0.00 30 0.0013 Nalgonda 0 0.00 7 0.00 41 0.00 48 0.0014 Nellore 2 0.00 20 0.00 701 0.03 723 0.0315 Nizamabad 1 0.00 33 1.12 203 0.00 237 1.1216 Prakasam 7 0.00 49 0.00 843 0.00 899 0.0017 Ranga Reddy 1 0.00 0 0.00 87 0.00 88 0.0018 Srikakulam 3 3.06 30 32.25 114 2.96 147 38.2719 Visakhapatnam 1 1.25 34 0.00 175 2096.00 210 2097.2520 Vizianagaram 1 0.00 24 0.00 61 0.00 86 0.0021 Warangal 1 45.06 48 6.10 458 0.00 507 51.1622 West Godavari 5 0.00 43 1.83 145 1.28 193 3.11

Total 77 1810.97 855 103.27 5286 2128.49 6218 4042.73

STATEMENT No. 9 (16)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON PENDENCY OF UTILISATION CERTIFICATES AND

AMOUNT INVOLVED FOR THE YEAR 2010-11Rs. In lakhs

TOTALSl. No.



Page 115


Total 1 2.03 3 0.00 154 0.00 158 2.03

STATEMENT No. 9 (17)STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON SURCHARGE CERTIFICATES RECOVERY

PENDING AND AMOUNT INVOLVED FOR THE YEAR 2010-11Rs. In lakhs

TOTALSl. No.



GRAM PANCHAYATS

Page 116


Total 233 106.31 4136 132.48 148783 303.64 153152 542.43


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON OTHERS AND AMOUNT INVOLVEDFOR THE YEAR 2010-11

Rs. In lakhs

TOTALSl. No.



Page 117


Total 8 0.00 16 0.00 0 0.00 24 0.00


STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS ON D.D / CHEQUES RECEIVED BUT NOT REALIZED WITH IN TIME AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs

Sl. No.


ZILLA PARISHADS MANDAL PARISHADS GRAM PANCHAYATS TOTAL

Page 118

PART - II



PART – II


MUNICIPAL CORPORATIONS FOR

THE YEAR 2010-11


PART – II

SECTION - I


No.

1 Introduction 119-125

2 A few Selected Audit Objections – Category wise 126-149

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2010-11 OF MUNICIPAL

CORPORATIONS

PAGE No.

1 Status of Audit of Municipal Corporations

(District wise) 150

2 & 3 Receipts and Payments of Municipal Corporations.

(District wise & Head Wise). 151-154

4 & 5 Income & Expenditure of Municipal Corporations


6 & 7 Assets & Liabilities of Municipal Corporations


8 No. of Audit Objections raised (District wise & Category wise) and Amount involved in respect of Municipal Corporations.

160-162

CONTENTS

SECTION - I

119

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF MUNICIPAL CORPORATIONS FOR THE YEAR 2010-11

INTRODUCTION

1.1 As per the provision contained in Section 3 (4) of State Audit Act, 1989 the Director

of State Audit, A.P., Hyderabad was appointed as Auditor for conducting 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 2010-11 is 16.

1.2 The Department has got 6 (six) Zonal Offices and District Offices in all the

Districts. The Regional Deputy Directors are the heads of the Zonal Offices, and the District Audit Officer, State Audit in the heads of 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 in major corporations. The Audit Reports are issued to the Commissioners of the Municipal Corporation concerned who has to take action for rectifying the defects pointed out in the Audit Report within a period of two months as per section 9 (1) of the State Audit Act.

1.4 Under section 10(1) the A.P. 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 an adequate care has been taken in periodical checking up of the funds

with Treasury or Bank.

Whether the 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.

120

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.

Whether the vouchers for the expenditure incurred were maintained properly.

Whether the grants received from different sources were properly accounted for

and utilized for the purposes for which they were meant. 2.2 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 except in GHMC because the GHMC migrated to modified Double Entry Accrual Based Accounting System of Accounting from the Financial Year 2002-03.

2.3 The Department has conducted audit in Double Entry Accrual Based Accounting

System (DEABAS) and verified the Receipts & Payments, Income & Expenditure Statements and Balance Sheets as on 31.03.2011 as detailed below.

STATUS OF AUDIT

3.1 Out of 16 Municipal Corporations existed for the year 2010-11, the Audit on the

Accounts of 9 Municipal Corporations has been completed in DEABAS in Audit Year 2012-13 except Municipal Corporations Vijayawada, Eluru, Nizamabad Warangal. Rajahmundry, Ananthapuram and Ramagundam.

Demand

as on 01.04.2010 Completed

as on 30.06.2013 Balance

as on 01.07.2013

16 9

7

RECEIPTS & PAYMENTS 3.2 The Department has conducted the audit of the Receipts amounting to

Rs.5,68,593.93 lakhs and Payments of Rs.5,64,858.15 lakhs as detailed in the Statements No.2 & 3 with Corporation wise break up.

3.3 The Revenue & Capital of Receipts and Payments are inclusive of the various

Grants received from Central and State Governments during the year 2010-11 by the Municipal Corporations. The head wise Revenue & Capital of Receipts and Payments of 9 Municipal Corporations are detailed in Statement No. 2(1), 2(2) and 3(1), 3(2) respectively. The Receipts and Payments details are not being maintained by GHMC separately.

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3.4 The head wise Revenue Receipts of Municipal Corporations for the year 2010-11are exhibited below in the Pie chart for 9 Municipal Corporations.

PIE CHART OF REVENUE RECEIPTS IN MCs FOR 2010-11

37.40%

25.66%

1.29%

27.43%

0.20%

2.22%

0.62%

2.76%

2.41% Tax Revenue 37.40%

Assigned Revenues andCompensations 25.66%

Rental Income from MunicipalProperties 1.29%

Fees and User Charges 27.43%

Sale and Hire Charges 0.20%

Revenue Grants Contributionand Subsidies 2.22%

Income from Investments 0.62%

Interest Earned 2.76%

Other Income 2.41%

3.5 The head wise Capital Receipts of Municipal Corporations for the year 2010-11are exhibited below in the Pie chart for 9 Municipal Corporations.

PIE CHART OF CAPITAL RECEIPTS IN MCs

FOR 2010-11

22.53%

4.04%

19.38%

23.56%

9.77%

1.77%

5.37%

12.83%0.74%

Municipal Fund 22.53%

Earmarked Funds 4.04%

Reserves 19.38%

Grants Contribution forspecific purposes 23.56%

Secured Loans 9.77%

Un-secured Loans 1.77%

Deposits Received 5.37%

Other Liabilities 12.83%

Provisions 0.74%

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3.6 The head wise Revenue Payments of Municipal Corporations for the year 2010-11are exhibited below in the Pie chart for 9 Municipal Corporations.

PIE CHART OF REVENUE PAYMENTS IN MCs FOR 2010-11

30.93%

5.47%

43.73%

2.93%

2.20%

0.17%

0.08% 13.98%

0.38%0.12%

Establishment Expenses 30.93%

Administrative Expenses 5.47%

Operations andMaintenance 43.73%

Interest and FinanceCharges 2.93%

Programme Expenses2.20%

Revenue Grants Contribution and Subsidies 0.17%Miscellaneous Expenses 0.08%

Depreciation 13.98%

Prior Period Item 0.38% 3.7 The head wise Capital Payments of Municipal Corporations for the year 2010-

11are exhibited below in the Pie chart for 9 Municipal Corporations.

PIE CHART OF CAPITAL PAYMENTS IN MCs FOR 2010-11

63.81%

19.90% 6.96%

0.28%

0.71%

0.03%

7.05%

1.24%

0.04%

Fixed Assets 63.81%

Accumulated Depreciation 19.90%

Capital Work-In-Progress 6.96%

Investments-General Fund 0.28%

Investments-Other Funds 0.71%

Stock-in- hand 0.03%

Cash and Bank balance 7.05%

Loans Advances and Deposits1.24%

Other Assets 0.04%

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INCOME & EXPENDITURE 3.8 The Income & Expenditure of the said nine (9) Municipal Corporations for the

year 2010-11 are Rs.2,12,006.17 lakhs and Rs.1,94,145.89 lakhs respectively as

exhibited in Statement No.4 & 5.

BALANCE SHEET 3.9 A Statement of the Financial Position of nine Municipal Corporations, which

exhibits their assets, liabilities, capital, reserve and other account balances is

shown in Balance Sheet. The Assets & Liabilities for the year 2010-11 are

balanced and their value is Rs.734969.76 lakhs as exhibited in Statement No.6 &

7.

AUIDT OPINION

4.1 On verification of the financial statements furnished by the said Municipal

Corporations, it is opined that many mis-classifications were done. Expenditure was Booked as Receipts and vice versa, thereby (-) balances are seen in the Accounting Statements. Mis-classification of Capital expenditure into Revenue Expenditure will have the cascading effect which may lead to incorrect determination of depreciation expenses 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 31.03.2011 are in accordance with the accounting principles generally accepted.

AUDIT OBJECTIONS

5.1 During the course of audit of Municipal Corporations for the year 2010-11 various defects noticed were already pointed out in the relevant Audit Reports which were forwarded to the Executive Authorities 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 1438 audit objections involving an amount of Rs.31,530.78

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.8.

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5.4 CATEGORISATION OF AUDIT OBJECTIONS

The audit objections raised in audit reports 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 The Consolidated Statements showing the amounts under category wise various

Audit Objections raised in the Audit Reports are annexed to the Report

[Statements from 8 (1) to 8 (2)].

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STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED

(CATEGORY WISE) AND AMOUNT INVOLVEDFOR THE YEAR 2010-11

Rs. In lakhs Sl. No. Name of the category No. Amount

(Rs.) % on

Amount 1 Non Production of Records 303 12984.03 41.18

2 Wasteful Expenditure 14 6351.15 20.14

3 Non-collection of dues 217 5583.72 17.71

4 Violation of Rules 262 1657.16 5.26

5 Variation in Account Figures 62 1624.19 5.15

6 Non remittance of deduction recoveries from

work bills / pay bills / contingent bills etc., 55 906.17 2.87

7 Excess Payments 100 673.21 2.14

8 Others 332 622.39 1.97

9 Diversion of Grants / Funds 10 374.48 1.19

10 Excess Utilisation of Grants / Funds 13 269.43 0.85

11 Advances pending adjustment 5 185.29 0.59

12 Instances of cases of unaccounted for cash

/stores 7 89.57 0.28

13 Non-utilisation of grants before the lapsable

date 5 86.68 0.27

14 Misappropriations 34 79.45 0.25

15 Pendency of Utilisation Certificates 7 43.86 0.14

16 Mis-utilisation of Grants / Funds 1 0.00 0.00

17 Non- utilisation of Earmarked Funds 11 0.00 0.00

18 Surcharges Certificates- Recovery Pending 0 0.00 0.00

19 D.D. Cheques received but not realized with in

time 0 0.00 0.00

Total 1438 31530.78 100.00

5.6 The objections - Number and amount involved - were categorized and their

category has been analyzed. 41.18% of amount objected pertains to the Non production of records, followed by Wasteful expenditure which constitutes 20.14%.

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AUDIT-PARAS

Gist of some of the selected audit objections pertaining to the year 2010-11 is given 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, Balance of Previous Year D.C.B and Opening Balance taken in D.C.B for the Current Year. A few instances of Variation in Account figures noticed in the Audit Reports in various Local Bodies are detailed below:

A Consolidated Statement No.8(1) showing the variation in account figures is

appended to the Report from which it could be seen that Non-reconciliation of Rs.1,624.19 lakhs was pointed out in 62 audit paras. One such para is detailed below.

1.1. MC, GUNTUR - DIFFERENCE OF PROPERTY TAX BETWEEN

CLOSING BALANCE OF PREVIOUS YEAR D.C.B AND OPENING BALANCE TAKEN IN D.C.B FOR CURRENT YEAR – NEEDS EARLY ACTION. During the Audit of Computer generated DCB Statement of Property Tax, Tap

Charges (Domestic and Metered) and Vacant Land Tax in Municipal Corporation Guntur, there was difference between Closing Balance of FY 2009-10 and Opening Balance taken in DCB for FY 2010-11 as detailed below. Therefore the correctness of balance could not be verified in audit. The same may be rectified.

# Nature of Tax

Closing Balance as per DCB for FY

2009-10 (Rs.)

Opening Balance as per DCB for FY 2010-11 (Certified by EA)

(Rs.)

Difference (Rs.)

1 Property Tax 19,03,26,666 19,25,37,502 +22,10,836

2 Drainage Tax 27,53,788 27,62,104 +8,316

3 PS Charges 1,08,07,170 1,08,35,430 +28,260

4 Tap Charges (Domestic) 2,35,10,045 2,35,06,311 -3,734

5 Tap Charges (Metered) 1,72,72,757 1,80,02,497 +7,29,740

6 Vacant Land Tax 5,74,74,841 3,48,90,896 +2,25,83,945

Total 30,21,45,267 28,25,34,740 2,55,57,363

(Para No.1 of the A.R of M.C Guntur)

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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. It was noticed during the audit that the Executive Authorities of the MCs were incurring expenditure in excess of the grant received from the Government either in anticipation of the release of further grant or meeting the excess amount from the General Funds of the institution without any valid orders.

Consolidated Statement No.8 (1) is appended to the Report from which it could

be seen that 13 audit paras involving an amount of Rs.269.43 lakhs was pointed out in audit reports.

One such para on Excess utilization of Grants is detailed below:

2.1. MC, NELLORE – EXPENDITURE INCURRED IN EXCESS OF BUDGET

PROVISION – NEEDS RATIFICATION Rs.1,93,57,500/-

In respect of the following items, expenditure was incurred in excess of the amounts sanctioned in the approved budget. Action would need to be taken for obtaining ratification of the competent authority for the excess expenditure incurred.

Amount in Rs. # Nature of Expenditure Budget

Allocation (Rs.)

Actual Expenditure

(Rs.)

Excess Expenditure

(Rs.) 1 Telephone Charges 9,00,000 10,14,975 1,14,975 2 Vehicle hire charges 15,00,000 22,47,607 7,47,607 3 Advertisement Charges 40,00,000 48,96,745 8,96,745 4 National Leaders’ Statue Maintenance 3,00,000 4,01,240 1,01,240 5 Conservancy Articles 40,00,000 79,58,150 39,58,150 6 Supply of Lime 10,00,000 46,72,622 36,72,622 7 Supply of Bleaching 8,00,000 9,45,744 1,45,744 8 Compost Yard Maintenance 5,00,000 7,56,544 2,56,544 9 Silt removal 15,00,000 46,52,519 31,52,519 10 Transportation of Garbage - 63,11,354 63,11,354 Total 1,93,57,500

(Para No.6 of A.R of M.C. Nellore)


All the money received by the Municipal Corporations form part of their general

funds and they can be utilized for the purposes prescribed under the Act/Rules. Rule 39 of Rules framed relating to Taxation and Finance in Schedule II under Section 130 of the Andhra Pradesh Municipal Corporations Act, 1965 prescribed the purposes to which the Municipal Fund should be applied. But there are many instances where the grants/funds are applied for a different purpose rather than the intended one. As per the orders issued by the Government in G.O Ms. No. 1886, Municipal Administration, dt.22.11.1965, the Municipal Corporations should not divert the funds even temporarily for other purposes without the previous sanction of Government.

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Further a Consolidated Statement is Annexed to the report vide Statement No.8(1) from which it can be seen that 10 no. of audit paras in the category involving an amount of Rs.374.48 lakhs were raised in the audit reports for the year and a few of them are narrated below.

3.1 GHMC, ABIDS CIRCLE - PAYMENT MADE TO PAVALAVADDI

SCHEME FROM THE CORPORATION FUNDS AND OTHER IRREGULARITIES - AMOUNT HELD UNDER OBJECTION Rs.51,15,538/- On verification of the Records of Uraban Community Development (UCD)

section the following irregularities are noticed.

During the year under report, the reimbursement of interest over and above 3% paid by the Women Self Help Groups were sanctioned by the Authorities concerned to Self Help Groups as per Pavalavaddi Scheme and also Cheques were issued in favour of Bank Managers concerned for adjustment into the SHGs accounts. In the same way, the bankers have to submit Utilization certificates after adjusting the same amounts to the SHGs’ accounts. But connected UCs were not produced to audit for verification.

On verification at ERP section it is noticed that the said amounts were paid from the

corporation General Funds instead of MEPMA funds. The necessity to pay the said amount from the general fund was not explained to audit. The relevant orders/instructions from the competent authority to incur the expenditure from the General Funds subject to reimbursement if any were not produced to audit. The particulars of reimbursement if any made were not produced till the close of audit.

Budget allocation for UCD section was not produced. Files relating to the Prajapatham/SJSRY and other empowerment schemes

implemented by the UCD section were not made available.

(Para.No.11 of AR of GHMC - ABIDS (Circle-9)) 3.2. MC, NELLORE - DIVERSION OF FUNDS – PAYMENT OF POL BILLS,

VEHICLE HIRE CHARGES, CELL PHONE CHARGES ETC., INCURRED FROM TOWN PLANNING FUNDS – NOT REIMBURSED – NEEDS EARLY ACTION – Rs.29,48,963/- On verification of Town Planning Section subsidiary cash book it was noticed that

an aggregate amount of Rs.29,48,963/- was drawn and spent towards Cell Phone Charges, Hire Charges, Supply of Oil & refund of Tender deposit etc., which were related to Public Health Sections, instead of paying from General Funds. Even though the Examiner of Accounts passed bills subject to reimbursement from General Funds, the same amount was not reimbursed so far. Early action would need to be taken in this regard for reimbursement of the above amount.

(Para No.8 of A.R of M.C. Nellore)

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3.3 MC, GUNTUR - DIVERSION OF FUNDS – GENERAL FUNDS – EXPENDITURE INCURRED OF RS 22,65,206/- TOWARDS REMUNERATION PAID TO URBAN HEALTH CENTRES IN GUNTUR – IRREGULAR – NEEDS REIMBURSEMENT – Rs.22,65,206/-

As verified from the Cash Book, Paid Vouchers and Files, it was noticed that an amount of Rs.22,65,206/- was drawn and paid to the Staff of three Urban Health Centers located in the Municipal Area from Municipal General Funds being the remuneration from 01.04.2009 to 31.03.2011 on reimbursement condition. But no Grant was released to the Corporation till completion of the Audit. Hence immediate action would need to be taken to get the above amount reimbursed from the Commissioner of Health and Family Welfare, Hyderabad and credited to Municipal General Funds under intimation to Audit.

(Para No.2 of the A.R of M.C Guntur) 3.4. MC, KARIMNAGAR - DIVERSION OF FUNDS – TFC GRANT DIVERTED

TO GENERAL FUND PD A/C (170) – NEEDS TO BE TRANSFERRED – Rs.3,00,00,000/-

An amount of Rs.33,33,00,000/- was drawn, as detailed below, from 12th Finance Commission Grant Allocations and diverted to General Fund PD A/c No 170 which is irregular. From the above amount Rs 33,33,000/- was transferred to TFC Funds during the FY 2010-11 itself leaving an amount of Rs.3,00,00,000/- to be transferred. Therefore, the Executive Authority would need to be taken immediate action to transfer the said amount to TFC fund under intimation to audit and this practice should stop forth with.

# Challan No & Date Amount (in Rs) 1 19603/29-9-2008 55,58,000 2 50643/31-3-2009 1,66,73,000 3 33445/17-12-2009 55,51,000 4 47849/31-3-2010 55,51,000

Total 3,33,33,000 Amount Transferred to TFC (-) 33,33,000 Balance to be Transferred 3,00,00,000

(Para No.3 of the A.R of M.C Karimnagar)

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 Municipal Corporations 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

130

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 Statement showing 5 such cases involving an amount of Rs.86.68 lakhs noticed

in this category is appended to the Report as Statement No.8(1). One such para is furnished below. 4.1 MC, KAKINADA - NFBS – SCHEME NOT IMPLEMENTED – AMOUNT

KEPT IDLE – PURPOSE NOT SERVED - Rs.8,78,849/-. On verification of the file relating to NFBS, it was noticed that, the said scheme was not implemented from July, 2007. The scheme was introduced for the persons belonging to Below Poverty line families who lost the head of the family or bread winner of the family. As per the guidelines of the scheme

1) The Head of the family of the deceased must be 18-65 years only and must be a primary bread winner and belongs to a house hold below the poverty line.

2) He / She should also be the resident of the Village / Town / District at least for the last three years.

As per the orders issued in Cir.Roc.No. B/95/2005 dt. 23.04.2005 & Cir.Roc.No.

B3/6890/2008 dt. 6.11.2010 of the District Collector, East Godavari District, Kakinada, the sanctioning authorities should prepare priority list of every financial year and meet the financial assistance with the funds allotted by PD, DRDA in a particular financial year only. Further

1) A Register should be maintained in this Corporation in which all applications received to be entered prioritizing the date of death.

2) The priority list of the applicants in the prescribed proforma should be furnished to the PD, DRDA, Kakinada by 5th of every month and basing on that, funds will be released to this Corporation.

3) The disbursement should be priority on the date of death of the deceased persons falls in the present financial year.

4) Previous cases shall not be carry forwarded in the pending lists. 5) All the cases pending with death prior to 2009-10 financial year may be

treated as closed. But the records of this Corporation reveals that above instructions were not

followed. The cases for whom date of death is 12.5.2006 are still pending settlement though grant released from 2006-07 to 2010-11 and interest accrued on that amount as detailed below, no payment was made till date.

Rs. Grant adj. from 9.1.08 to 4.8.2011 for the period for 2006-07 to 2010-11 8,10,000-00 Interest accrued from 31.12.07 to 30.6.2011 68,849-00

___________ Total : 8,78,849-00 When the following information was requested through HM.Lr.No. 5, dated 22.5.2012, the Corporation authorities have failed to furnish the same till the close of audit.

1) The reasons for non-payment of amount to the beneficiaries from 2006-07 to 2011-12 – not explained.

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2) The register of Beneficiaries from 2006-07 to 2011-12 along with applications – not furnished.

3) Copy of the orders issued by releasing the Grant along with list of Beneficiaries proposed to DRDA – not furnished.

4) Why the interest accrued so far was not refunded to the Grant releasing authority – not explained.

5) How the proposals were prepared for payment of amount to the beneficiaries as orders were issued by District Collector to close the Pending cases prior to 2009-10 not explained.

6) The following un-disbursed cheques to the Bank A/c as stated in the note file Roc.No. 9935 at P.No. 35 acknowledged by the then B, Clerk on 10.9.2007 to a tune of Rs. 50,000/- not produced.

Chq. No. & Date Amount

Rs. 1) 832393/28.7.05 5,000 2) 515565/28.7.05 5,000 3) 515566/28.7.05 5,000 4) 515567/28.7.05 5,000 5) 515575/28.7.05 5,000 6) 515579/28.7.05 5,000 7) 515590/23.12.06 5,000 8) 515595/23.12.06 5,000 9) 183821/23.12.06 5,000 10) 183866/29.6.07 5,000

Thus it was evident that, due to non-implementation of the scheme, though funds

are available, the purpose of the scheme was not served. Hence a immediate action would need to be taken to rectify the defects pointed out in audit. Or else, the unspent balance should be refunded to PD, DRDA, Kakinada.

(Para No. 69 of MC of Kakinada for 2010-11)

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.8 (1) is appended to the Report from which it could be seen that 1 para was raised in the category.

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6. NON-UTILISATION OF EARMARKED FUNDS

Government issued instructions vide GO Ms No 265 MA & UD Department dated 19.07.2004 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%

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.8 (1) is appended to the Report from which it could be seen that 11 objections were pointed out in this category. One such para is furnished below.

6.1 MC KURNOOL - EARMARKED FUNDS - NOT ALLOCATED - IRREGULAR The earmarked funds for the year 2010-2011 out of the funds from general revenue of the Municipal Council were not allocated for the developmental activities of SC-s, S.T-s and Women and Child Welfare according to the Government instructions issued in G.O. Rt.No.2023 (M.A and U.D.C.H) Dept, dated: 31-12-1986. Due to non allocation of earmarked funds the purpose of betterment of specified communities as mentioned in the above G.O. could not be served.

(Para No.2 of MC, Kurnool for 2010-11)


On verification of Revenue collections in Municipal Corporations, huge amounts have been noticed pending realization for long periods and allowed to become barred by limitation of time. No appropriate action seems to have been initiated by the executive authorities before the dues became barred by limitation of time, in spite of various statutory provisions existing for their recovery such as through distraint, prosecution or filing of suits.

Consolidated statement showing 217 Paras involving an amount of Rs.5,583.72

Lakhs were raised in this category as shown in Statement No.8 (1). Some such cases are given below.

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7.1 GHMC - VARIOUS TAXES AND FEE COLLECTED THROUGH CHEQUES – SOME OF CHEQUES WERE MISPLACED/BOUNCED - LOSS CAUSED, IF ANY, NEEDS RECOVERY - Rs.28,55,133/-

An amount of Rs.28,55,133/- was collected through Cheques towards Property Tax, Fees and Various Taxes. During the course of audit on verification of the records, it was noticed that some Cheques were misplaced/bounced which resulted in loss caused for an amount of Rs 28,55,133/- as detailed below.

# Name of the Circle Gist of Objection Amount

(in Rs) Para

1 Kapra Various Taxes & Fee collected through Cheques - Some of Cheques were bounced and loss caused

6,39,378 13

2 Kapra Property Tax paid through Cheques – Amount was not realized due to misplacement of Cheques

2,52,755 14

3 Abids Amounts Collected through Cheques but Cheques were dishonored 19,63,000 3.1.6

Total 28,55,133

7.2 GHMC, GOSHA MAHAL CIRCLE - BUILDING PENALIZATION SCHEME- UNAUTHORIZED CONSTRUCTIONS REGULATED WITHOUT OBTAINING APPROVAL FOR LAND UNDER LAYOUT REGULATION SCHEME - SHORT COLLECTION – Rs.12,95,092/-

On verification of Files pertaining to Building Penalization Scheme (BPS) of Circle 8, it was noticed that unauthorized constructions were regularized without sanctioned layout and without obtaining approval under Layout Regulation Scheme (LRS) and an amount of Rs 12,95,092/- was short collected as shown below. The same would need to be collected from the persons responsible and be made good to the GHMC funds.

# Name of the Circle Gist of Objection Amount

(in Rs) Para

1 Gosha Mahal (C-8)

BPS - Unauthorized constructions were regulated without obtaining approval under LRS

12,66,094 23

2 Gosha Mahal (C-8)

Circle 8- Building Penalization Scheme – Short Collection Needs Recovery 28,998 19

Total 12,95,092

7.3 MC - TOWN PLANNING – OPEN SPACE DEVELOPMENT CHARGES/BETTERMENT CHARGES/VLT – NOT COLLECTED/SHORT COLLECTED – Rs.35,88,309 /-

On verification of the Building Permission Files of Town Planning Section of the

Municipal Corporations stated below, some of the short collections/non collections noticed in the Building Permissions for FY 2010-11.

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# Municipal Corporation

Particulars Amount (in Rs)

Para

1 GHMC (C-8) Open Space Development Charges 84,294 21 2 Nellore Betterment Charges from Building Applicants 30,800 17 3 Kadapa Development Charges on Open Area 1,41,473 13 4 Kakinada Vacant Land Tax before approval of Building

Applications 6,20,120 9

5 Kakinada Development Charges on Built-up Area 28,926 10 6 Kakinada Short Collection of Betterment Charges 62,780 11 7 Kakinada Levy of Vacant Land Tax one year instead of

preceding 3 years 4,93,068 19

8 Kakinada Construction of Buildings in place of old & demolished Buildings – Plan approved based on Property Tax Receipts instead of Vacant Land Tax

2,02,687 51

9 Guntur Funds invested at lesser interest rates 18,03,589 3 10 Kakinada Non-imposition of Penalty on unauthorized

constructions 1,20,572 18

Total 35,88,309

Immediate action shall be taken to recover the above said amount of Rs.35,88,309/-from the persons responsible for all short collections/non collections. 7.4 MC, KURNOOL - WATER CHARGES – COLLECTION OF METERED

WATER CHARGES – VIOLATION OF BYE LAW NO.28&29 OF THE KURNOOL MUNICIPAL CORPORATION WATER SUPPLY BYE LAWS – LOSS TO MUNICIPAL FUNDS – Rs.96,05,274/-

According to Bye Laws No 28 and 29 of the Kurnool Municipal Corporation Water Supply Bye Laws, the Assistant Engineer in charge of the water supply has to issue notices to consumers of the water when ever the meter is struck, to get the meter repaired with in two months. If the consumers have not got meter repaired with in the notice given in two months period, the Commissioner Municipal Corporation, Kurnool has to collect the water charges at double the normal rate on the average consumption of the immediately preceding two months of the month in which meter is struck.

But except in very few cases, the Commissioner, Municipal Corporation, Kurnool has not initiated action under bye law No.28 and 29 of the “Kurnool Municipal Corporation water supply bye laws”. Consequently the municipal corporation sustained a loss of Rs 96,05,274/-. Action would need to be taken to collect the amount from the users and to be credited to the Corporation funds.

(Para.No.4 of AR of MC Kurnool) 7.5 MC, KURNOOL - WATER WORKS – PURIFIED WATER PLANT AT

MADHAVI NAGAR – LEASE AMOUNT NOT PAID BY THE LEASE HOLDER – ACTION NOT TAKEN BY THE COMMISSIONER, KURNOOL MUNICIPAL CORPORATION - Rs.7,65,108/-

During the course of audit, it was noticed that the Purified Water Plant of Municipal Corporation at Madhavi Nagar was leased out to Sri Bharat Yadav at Rs.10,600/- per Month for a period from 01.01-2008 to 31.12.2010. When verified the

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Miscellaneous Demand Register and MR Chitta, it was noticed that the same Amount was not realized since 01.01.2008. Further, the Demand was also not raised in the Miscellaneous Demand Register. Moreover the Commissioner has not taken any action under General Lease Conditions of the Municipal Corporation which say that “if the lease holder fails to pay the monthly rent/lease amount consequently for two months, the lease has to be cancelled”. Consequently the total lease amount of purified water plant owned by Municipal Corporation for the period 01.01.2008 to 31.12.2010 fell into arrears. Action would need to be taken to collect the lease amount of Rs.7,65,108/ as worked out below: Lease Amount 36 x 10600 = Rs.3,81,600-00 (01.01.2008 to 31.12.2010) Interest from 01.01.2008 to 31.03.2012 = Rs.3,83,508-00 (% of interest) ____________ Total = Rs.7,65,108-00

(Para.No.10 of AR of MC Kurnool)


It was observed during the course of audit that temporary advances paid for specific purpose were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to avoid refund of unspent amounts. Several objections were raised on such outstanding advances in the relevant Audit Reports pointing out the failure of the Executive Authorities in taking necessary action to get these advances adjusted.

Further a Consolidated Statement No.8 (1) showing the audit objections on Advances Pending is appended to the Report from which it could be seen that an amount of Rs.185.29 lakhs was pointed out in the 5 audit paras. One such para is furnished below.

8.1 MC, GUNTUR – NON RECOVERY / ADJUSTMENT OF ADVANCES –

Rs.1,61,76,242/- As per codal provisions of A.P.F.C Volume – I advances are required to be adjusted within one month from the date of payment of advance. The details of payment of advances and adjustment particulars shall also be needed to be recorded in the advances recovery/adjustment register for an effective watch over the advances paid.

As verified from advances recoverable register for 2010-11 a balance amount of Rs.1,39,08,123/- has to be recovered / adjusted as on the date of audit. As verified from the General funds cash book and Advances Recoverable Register for 2010-11, it was noticed that advances to a tune of Rs.22,68,119/- were not taken to the Advances Recoverable Register for 2010-11, which was irregular. The reasons for not taking the advances to the Advances Recoverable Register were not furnished to audit. In the absence of not entering the advances entries in the Advances Recoverable Register, the recovery/adjustment of the same could not be watched. Early action may be taken for entering the same in the Advances Recoverable Register and for the recovery of the same along with the unadjusted/not recovered advances. Details of advances pending can be referred in original audit report.

(Para No.16 of AR of Guntur Municipal Corporation for 2010-11)

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9. VIOLATION OF RULES

It was noticed in the audit that in some cases the Rules / Government instructions for incurring the expenditure from the funds of the MCs were violated either due to negligence or ignorance. In certain cases, the funds of the MCs were utilized for the purposes other than the permitted ones under the Act / Rules. It was also noticed that in a few cases, Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected to in the relevant Audit Reports. A few instances of Violation of Rules noticed in the Audit Reports in various Local Bodies are detailed below:

A Consolidated Statement No.8 (1) showing the audit objections on Violation of

Rules is appended to the Report from which it could be seen that an amount of Rs.1,657.16 lakhs was pointed out in 262 Audit Paras. Few such cases are detailed below.

9.1 GHMC, MALKAJGIRI CIRCLE - SUPPLY OF DRINKING WATER

THROUGH MOBILE TANKERS FROM VARIOUS RESERVOIRS TO UN-SERVED AREAS – BILLS PAID WITHOUT TRIP SHEETS OF VEHICLES – ACKNOWLEDGEMENTS OF RESIDENTS OF AREAS WHERE THE WATER WAS SUPPLIED – NOT FURNISHED – Rs.22,36,857/- HELD UNDER OBJECTION.

During the course of audit it was noticed that, the supply of Drinking Water

through Mobile Tankers from Various Reservoirs to un-served areas was awarded to various agencies and the bills were paid to them accordingly. But while paying the amounts to the Agencies/Contractors, the Trip Sheets of the Vehicles and Acknowledgements of Residents of Areas where the Water was supplied are not obtained for verification.

For example, Supply of Drinking Water from Goutham Nagar Reservoir to some un-served areas of Malkajgiri through 10 Mobile Tankers per Day for the period of 6 Months was awarded to Sri B Srinivasa Rao, Contractor vide Work Order No 53/SE-III/GHMC/N&WZ/2009-10 dated 04.01.2010 with payment @ Rs.116.00 per Trip with 26.46% less. The payments were made to the above Contractor as per the trips recorded at MB N 65/09-10. But during the verification of records the following omissions are noticed.

a) Log books certified by the Executive Engineer are not produced to audit. b) The rate to each trip approved by the Commissioner, GHMC not produced. c) Trip sheets not produced. d) Approval of the total number of trips carried out by water tankers per day not

furnished. e) No of Areas with Names where there is water scarcity in the Malkajgiri circle

were not produced to audit.

Without verification of the above, the correctness of the expenditure made could not be certified in audit. Therefore, the total amount paid towards supply of drinking water Rs 22,36,857/- is held under objection.

(Para.No.37 of AR of GHMC - MALKAJGIRI (Circle-17)

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9.2 GHMC, MALKAJGIRI CIRCLE - PAYMENTS WERE MADE TO M/S SVSS ENTERPRISES FOR PROVIDING PERSONNEL FOR TOWN PLANNING SECTION TO CLEAR THE BPS/LRS FILES – SUSPICIOUS PAYMENT - Rs.4,59,100/-.

On detailed verification of the Payment of Bills pertaining to M/S Sri Venkata Shiva Sai Services towards providing Personnel to Town Planning Section to clear the BPS/LRS Files, it was noticed that the payment seems to be suspectable on the following grounds:

1. Work Order, Administration Sanction and Note Approval of the Zonal Commissioners are in November 2010 whereas the Bills were prepared and paid for the period from January 2010 to September 2010.

2. The Bills furnished by the Firm seem to be suspicious as they are not containing the Numbers of Bills, Registration and Work Order etc.,

3. As could be seen from the file, nowhere mentioned the dates of preparation of note file and approval of higher authorities and the higher authorities affixed their initials without date.

4. In Muster Roll, Name of the Employees and their qualifications, Dates of Working, EPF and ESI Numbers and deduction of EPF and ESI are not mentioned in the Bill.

5. Amount to be paid to each employee was multiplied with the number which is irregular.

6. There are no details in the file such as number of LRS/BPS applications received and pending with the ACP so as to justify the requirement of additional staff.

In view of the above and as per the records furnished to audit, it is suspected that the bills are fictitious. Further the services of the Outsourcing Staff from January 2010 are being used without prior approval of the higher authorities. Therefore, immediate action would need to be taken to investigate the matter and loss if any caused to GHMC should be recovered from the Person or Persons responsible.

(Para.No.58 of AR of GHMC - Malkajgiri (Circle-17))

9.3 MC, NELLORE - TOWN PLANNING-BUILDING SURVEYORS-

LICENCE NOT RENEWED FOR 2010-11 - BASED ON THEIR PLANS BUILDING PERMISSIONS WERE ISSUED- IRREGULAR- LOSS TO MUNICIPAL FUNDS- NEEDS EARLY ACTION.

During the course of audit it was noticed that several Building Permissions were

issued based on the Plans prepared by the Surveyors, whose licenses were not renewed during 2010-11. Among the several, few cases are detailed below. As per existing rules, the Surveyors shall renew their Licenses every year. The Building Plans prepared by the surveyors whose licenses were not renewed should not to be considered for issue of permission by the Municipal Authorities. But the same was neglected and issued. Non-collection of renewal fee caused loss to Municipal Funds. Suitable action needs to be taken to rectify the omission and loss caused in this regard would need to be made good by the person or persons responsible.

138

# Name of the Surveyor License Certificate issued for the Year

1 N Mallikharjuna 2008-09 2 P Prasad 2009-10 3 Md Jameer Ahmed 2009-10 4 Md Khaleem Ahmed 2004-05 5 P Murali 2009-10 6 Sk Rafiq Ahmed 2009-10 7 Sk Abdul Sattar 2006-07 8 TVS Chalapathi 2008-09 9 Sk Salam 2009-10 10 P Asif Khan 2008-09

(Para No 34 of AR of MC Nellore)

9.4. MC, GUNTUR - VEHICLES – KEPT IDLE/NOT WORKING – NEITHER

CONDEMNED NOR DISPOSED OFF IN PUBLIC AUCTION As verified from the list of the vehicles furnished by the Municipal Corporation, it was noticed that some vehicles were kept idle/not in working condition and needs condemnation. But no action was taken for the condemnation of the said vehicles. As per Government Circular Memo No 119020/OP-II/2004-1 of GA (OP-II) Department dated 5-10-2004, 15 years old vehicles, which have run 2.5 Lakh KMs are fit to be condemned. The following are the other instructions issued in the Memo.

i) No formal condemnation order is required from any authority. No permission is required by any authority including Government.

ii) Should be disposed off in public auction. iii) No valuation certificate needs to be obtained from any authority. iv) Upset price is 10% of the original cost. v) Auction will be held in RTA office at Head Quarters twice in a year i.e.,

August and February. As log books were not produced, the meter reading of vehicles could not be

verified in audit. Early action may be taken for condemnation of the vehicles and disposal of the vehicles as per above said norms. Loss, if any, caused due to the delay in condemnation of the vehicles, may be arrived at and made good by the person or persons responsible.

(Para No 22 of the AR of MC Guntur)

10. NON-REMITTANCE OF THE DEDUCTIONS /RECOVERIES

FROM THE VOUCHERS / PAY BILLS /CONTINGENT BILLS

It was noticed during the audit that various deductions / recoveries affected from the work bills were not remitted to the Government or a part of them only were remitted in spite of statutory obligation to remit the same to Government account within a prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non adherence. The deductions normally made from the work bills that are to be remitted to Government account are hereunder.

139

The defects noticed were pointed out in the respective Audit Reports. Some of them are as under.

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

Further a Consolidated Statement No.8 (1) showing the audit objections on Non

remittance of Deductions/Recoveries made from the vouchers /Pay Bills/Contingent Bills is appended to the Report from which it could be seen that an amount of Rs.906.17 lakhs was pointed out in 55 Audit Paras. Few such cases are detailed below. 10.1. MC, KURNOOL - PUBLIC HEALTH – LIFTING OF GARBAGE – AN

AMOUNT OF Rs.62,078/- WAS EXCESS PAID WITHOUT DEDUCTING INCOME TAX:

The work relating to “Lifting of Garbage” was executed during the year under

report on contract basis. The work was entrusted to the contractors for lifting of garbage through tractors during the year under report. Income Tax @ 2.24% was not recovered from the bills of Contractor as required under Sec.194(c) of Income Tax Act 1961 and as per Finance Act 1999 resulted in excess payment for an amount of Rs.62078.00


10.2. MC, KAKINADA - GRANT WORKS – LABOUR CESS NOT DEDUCTED

– NEEDS ACTION:

During the year under report, it was noticed that for the works taken up under the following schemes, Labor Cess @ 1% was not deducted from the work bills.

# Fund No of Works

Executed

Total Value of Works Done (Rs)

Labor Cess to be deducted and remitted

1 ACDP 2 7,08,979 7,090 2 MP LADS (Sri Dasari Narayana

Rao) 8 23,70,817 23,708

3 MP LADS (Smt Vanga Geetha) 1 1,89,000 1,890 4 SRMT Urban Health Center 1 29,556 296 5 ILCS 2 8,80,000 8,800 6 BRS 16 1,30,25,294 1,30,253 7 Maintenance of Internal Roads 1 54,513 545 8 Non-Plan Grant 1 30,00,000 30,000 9 Parks & Play Grounds 1 3,61,646 3,616 10 School Building Grant 2 16,53,158 16,532 11 Flood Grant 2 1,76,925 1,769 12 Fish Market 1 5,97,000 5,970

Total 2,30,469

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Therefore action would need to be taken to recover the said amount of Rs.2,30,469/- from the person or persons responsible and credited to Labor Department.

(Para No. 72 of AR of MC Kakinada) 10.3 MC, GUNTUR - DEDUCTION MADE FROM WORK BILLS – NOT

REMITTED TO HEADS OF ACCOUNTS CONCERNED : Rs.1,14,44,956/-

As per the statement obtained duly certified by the Additional Commissioner, Municipal Commissioner, Guntur, the following recoveries were made from work bills during 2010-11. But, the same were not remitted to the heads of account concerned as on date of closure of audit. The same would need to be remitted to the respective heads of account early3.

SI. No.

Nature of deduction

Amount deducted during 2010-11

(Rs.)

Amount

remitted during 2010-11

(Rs.)

Balance to be remitted as on the date of audit

(Rs.)

1 Seigniorage 7969242 421860 7547382 2 N. A. C. 757048 0 757048 3 Labour Cess 3140526 0 3140526

Total 11866816 421860 11444956

(Para No. 41 of AR of MC, Guntur) 10.4 WORKS – EXECUTION OF WORKS GOVT. RECOVERIES MADE

FROM THE WORK BILLS NOT REMITTED TO THE CONCERNED HEAD OF ACCOUNTS – NEEDS ACTION Rs.1,11,485/-

As per G.O MS No.217 industries & commerce (M-I) Dept. dt 29-9-2001, GO MS

No.11 finance (W&P) F-8 department dated 29-7-2005 and G.O. Ms. No.159 R&B (R-3) Dept. dt;30-10-2004 the deductions towards Seigniarage Fee, Vat and Income Tax etc. respectively were made to Rs.1,11,485/- from the work bills pertaining to works executed during the year as detailed blow. But the same were not remitted to the concerned head of accounts. Early action would need to be taken to remit the same to the corporation funds of Tirupathi.

Works – out going recoveries are not remitted to concerned departments

Sl No

Vr. No & Date

Name of the

Scheme

IT VAT S.C S.T Total

1 48/15-5-10 UPA - - 1826-99 =1727

- 1727

2 67/20-5-10 UPA - - 1714-97 =1620

- 1620

3 79/25-5-10 UPA - 2552-2252 =300

- - 300

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4 250/23-12-10 UPA - 1816 - - 1816 5 259/29-12-10 UPA - 741 - 3099 3840

6 348/5-2-11 UPA 1191 - - - 1191 7 433/23-3-11 UPA 9289 15342 9956 15802 50389 8 69/1-10-10 1HSDP 88370-58370

=30000 - - - 300000

9 18/29-5-10 UPA - - 186483-184483 =2000

- 2000

10 148/31-3-11 UPA - - 18602 - 18602

Total 41221 17458 33905 18901 111485

(Para No.9 of AR of MC, Tirupati)


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. 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. As per the Rule 6 of AP State Audit Rules, 2000 the onus for production of records to audit lies with the Executive Authority of the institution but the following are the some instances where the said rule is not complied with by the Executive Authorities as they have failed to furnish various records to audit.

Consolidated Statement No.8 (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.12,984.03 lakhs was pointed out in 303 Audit Paras. # Municipal

Corporation Particulars Amount

(in Rs) Para

1 Nellore Repairs to Dumper Bins 3,72,800 46 2 Nellore Purchase of Public Health Materials 19,52,485 48 3 Nellore Amount paid to Badili Workers’ Society for

engagement of Labors for Sanitation Work 36,26,371 49

4 Nellore Schemes operated by MC Nellore 27,88,47,352 53 5 Nellore Paid Vouchers 10,99,20,714 54 6 Nellore Execution of various Works 7,35,05,585 56 7 Guntur Contingencies 68791071 44 8 Guntur Execution of various Works 219196511 45

Total 75,62,12,889

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12. MISAPPROPRIATIONS

Consolidated Statement of Mis-appropriations noticed in audit is annexed vide Statement No.8 (2) A total number of 34 cases involving an amount of Rs.79.45 lakhs were pointed out in the relevant Audit Reports.

A few cases of Mis-appropriations noticed in the Audit Reports in various Local Bodies are detailed below: 12.1 MC, KADAPA - WATER TAX - WRONG TOTALS/NON-

REMITTANCE/SHORT REMITTANCE - LOSS TO MUNICIPAL FUNDS - MISAPPROPRIATION - NEEDS RECOVERY – Rs.2,27,688/-

During the audit on Water Tax Collections in Municipal Corporation Kadapa, it is observed that wrong calculations were made and the same amount projected in the BCR was remitted to Municipal Corporation. Thus short remittances made are shown in the given table:

Para Particulars Amount (in Rs)

50 Water Tax – Chinna Chowk - Wrong Totals in Bill Collection Register 27,425 56 Water Tax collected but not remitted/ short remitted 91,880 58 Tax Collections – Amounts Short Taken to Chitta 93,863 60 Water Tax collected but not remitted 14,520

Total 2,27,688

Therefore it is clear that an amount of Rs.2,27,688/- was misappropriated by wrong totals and short remittances. The misappropriated amount of Rs 2,27,688/- would need to be recovered from the person(s) responsible and credited to Municipal Funds under intimation to audit.

12.2 COLLECTION OF TAXES THROUGH RECEIPTS BY COLLECTION

STAFF – NOT TAKEN TO CHITTA – MISAPPROPRIATION – NEEDS RECOVERY – Rs.6,10,020/-

During the course of audit for the year 2010-2011, a sum of Rs 6,10,020/- was collected by the Bill Collectors as shown in the following table towards Water Tax Dues and were not remitted to Municipal Corporation funds till the close of audit. Thus it construed that the amount was misappropriated by way of non-remittance to Municipal Corporation Funds. According to the Article 5 of the AP Financial Code Volume – I, the Executive Authority should check the accounts frequently to avoid Frauds / Diversions / Misappropriation of Funds. But no such attention was paid in this regard. Action would need to be taken by the Executive Authority to recover the misappropriated amount according to instructions issued in GO Ms No 33 Finance (TFR-I) Department dated 09.02.2006.

# Name of the BC Amount (in Rs) Para 1 Md Gouse 1,54,760 51 2 Prabhakar 1,31,100 52 3 Iliyakat 31,680 53 4 CV Ramana 2,92,480 54

Total 6,10,020

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13. EXCESS PAYMENTS

It was observed in audit that in several cases, excess payments were made. A few cases of Excess payments noticed in the Audit Reports in various Local Bodies are detailed below:

Consolidated Statement No.8 (2) of showing audit objections on Excess

payments is appended to the Report from which it could be seen that an amount of Rs.673.21 lakhs was pointed out in 100 Audit Paras. Few such cases are detailed below.

13.1 GHMC, MALKAJGIRI - WATER (CURING) CHARGES ALLOWED

SEPARATELY IN ADDITION TO CURING COMPONENT INCLUDED IN CC 1:2:4 - DOUBLE PAYMENT FOR SINGLE ITEM - IRREGULAR NEEDS RECOVERY Rs.74,793/- During the course of verification of Bills pertains to Laying of CC Roads, it was

noticed that Water or Curing Charges were allowed separately, though the same was already included in the detailed estimates (Component of CC 1:2:4) which results Double Payment of Rs 74,793/- for Single Item as detailed below. The same would need to be recovered and to be credited to the GHMC funds immediately.

# Name of the Work Page No & MB No

Amount (in Rs)

1 Laying of CC Road at Anand Bagh & Sharadha Nagar 21 of 81/09-10 11,215

2 Laying of UGD and CC Road in Anandbagh at Karya Krupa Apartments 44 of 71/2008-09 6,492

3 Laying of CC Road at Poolapally Balaiah Colony Phase II 180/09-10 5,289

4 Laying of CC Road at Laxmi Nagar Phase II 19 of 179/09-10 5,119 5 Laying of CC Road at Sainathapuram 16 of 181/09-10 5,048 6 Laying of CC Road at Shivananda Nagar 22 of 178/09-10 12,070 7 Laying of CC Road at East Maruthi Nagar 15 of 58/10-11 13,091 8 Laying of CC Road at Bharath Nagar 19 & 20 of 6/09-10 11,328

9 Laying of UGD and CC Road in Anandbagh at Vani Nagar. 63 of 5,142

Total 74,793

(Para.No.7 of AR of GHMC-MALKAJGIRI (Circle-2))

13.2 MC, NELLORE - EXCESS PAYMENT – EXCESS AMOUNT PAID DUE TO WRONG TOTALING – NEEDS RECOVERY Rs.3,09,780/-

During the year under report on verification of the vouchers, it was noticed that an

amount of Rs.3,09,780/- was paid in excess causing loss to Municipal Funds as detailed below. Hence, it would need to be recovered from the concerned Department and the same may be credited to the Municipal Funds or adjusted to the payables. The details of the excess payment made can be viewed in the Audit Report concerned.

144

# Particulars Amount (in Rs) Para

1 Excess Payment paid to APSPDCL due to Wrong Totaling 3,00,000 102

2 Execution of Works – Excess Payment made to Sri Vinil Kumar Reddy, Contractor due to Wrong Totaling

9,780 103

Total 3,09,780

(Para No.102 & 103 of AR of MC Nellore) 13.3 MC, KAKINADA - EXECUTION OF WORKS – EXCESS PAYMENTS

MADE IN EXECUTION OF WORK IN EXCESS TO THE APPROVED ESTIMATES – IRREGULAR – NEEDS RECOVERY – Rs.3,12,621/-

During the course of audit 2010-11, it was noticed that the expenditure for an

amount of Rs.3,12,621/- was incurred towards payment of the Quantities for the work executed over and above the estimate provision in the Work Bill relating to “Providing CC surface Road at Ambedkar X Road, ZP Guest House Road and AB Ashok Nagar 3rd X Road in 18th Division”. As per the agreement conditions, work is to be completed as per the Actual Quantities provided in the Estimates but the same was not done in the instant case and as a result of which excess expenditure was incurred as shown below without any approved deviation for the excess quantities which needs to be recovered. Name of the Work: Providing CC Surface Road at Ambedkar X Road, ZP Guest House Road and AB Ashok Nagar 3rd X Road in 18th division. Contractor Name – Sri N Veerana and Estimated Value – Rs 33,23,000/- Voucher No 2075/3-2011 # Work Quantity as

per Estimates

Quantity as per

MB

Difference Rate Excess Amount paid (in

Rs) 1 Earth Work in Sandy,

Loamy and Ordinary Soils

63 Sq M 459 Sq M 396.62 130.80 51,878

2 Collection and Supply of Quarry Dust from approved Quarry

1080 1398.71 318.71 475.55 1,51,563

3 Collection and Supply of Gravel from approved Quarry

110 423.69 313.69 398.05 1,09,180

Total 3,12,621

(Para No. 83 of AR of MC Kakinada)

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14. WASTEFUL EXPENDITURE The canons of financial propriety envisaged in the Andhra Pradesh Financial Code

are sacrosanct for all Government Authorities entrusted with authorizing or incurring of expenditure from public funds. They are expected under Articles 3 to exercise the same diligence and care in expending public money under their control as persons of ordinary prudence would exercise in respect of their own money. Government have issued instructions through various orders and also incorporated in the statutes of Local Bodies the various items on which public money can be expended and the principles to be adhered to while expending on such items. Yet, it was noticed in audit that the funds of Municipalities were several times incurred without adhering to the laid down principles leading to the wasteful expenditure of public money. All the cases of such wasteful expenditure observed in the audit of Municipal Corporations for the year 2009-10 were avoidable, extraordinary and lacked proper planning.

Consolidated statement of Wasteful Expenditure incurred is annexed to the Report Statement No.8 (2) from which it could be seen that an amount Rs.6,351.15 lakhs pointed out as Wasteful Expenditure. Some such 14 cases pointed out in Audit Reports classified according to the type of their wastage are illustrated here under.

It was observed in audit that in several cases, wasteful expenditures were made. A

few cases of Excess payments noticed in the Audit Reports in various Local Bodies are detailed below:

14.1. GHMC, UPPAL - FORMATION OF GRAVEL ROAD FROM TV

COLONY TO JERSY MILK FACTORY AT DEVENDAR NAGAR – DEBRIS COLLECTION AND SPREADING NOT RESTRICTED TO GRAVEL LENGTH – CERTAIN IRREGULARITIES – WASTEFUL EXPENDITURE – Rs.38,833/-

In the course of audit, it was noticed that, an amount of Rs.2,80,275/- was drawn vide Voucher No 10064362 dated 15.03.2011 and paid to M/s C Prakash towards Formation of Gravel Road from TV Colony to Jersey Milk Factory at Devendar Nagar. But on verification of the connected Records and Measurement Book of the Work, it was noticed that the item of Supply and Spreading of Gravel including labor and Curing executed to a length of 450m vide MB Page No 42/10-11 whereas the Supply and Filling of Debris executed to a length of 560m without restricting it to the Gravel Length i.e., 450m which was irregular and wasteful expenditure. Hence the Collection and Spreading of Debris in excess of Gravel cannot be admitted in audit and treated as wasteful expenditure of Rs 38,833/- as worked out here under.

Mileage No Length Area M Area Quantity 0.450 to 0.160 1X1 10 1.723 1.948 19.480 0.460 to 0.485 25 3.302 2.513 62.825 0.485 to 0.510 25 1.905 2.604 65.700 0.510 to 0.535 25 3.924 2.915 72.875 0.535 to 0.560 25 2.881 3.403 88.075

307.955

Therefore the same would needs to be recovered from the person or persons responsible and remit to GHMC funds.

(Para.No.6 of AR of GHMC-UPPAL (Circle-II))

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14.2. GHMC, ABIDS - PAYMENT OF CONSULTANCY CHARGES FOR THE DESIGN SURVEY AND INVESTIGATION PROPOSED WORK NOT EXECUTED WASTEFUL EXPENDITURE Rs.3,30,900/- During the course of audit, it was noticed that an amount of Rs.3,30,900/- was

drawn vide Voucher No 9000103270 dated 31.03.2010 paid to M/S STPU Consultant towards Design, Survey, Investigation, Estimation and Preparation of Bid Document for the proposed Formation and Development of 150 Feet wide Road through Shilpa Layout to Gachibouli Junction. But the Detailed Project Report and Estimation of the Proposed Road were not produced to audit. Further no records regarding calling for the tender and further process for execution of the work were not forthcoming. Without taking of the proposed work the expenditure incurred so far is treated as wasteful. In view of the above the expenditure of Rs.3,30,900/- could not be admitted in audit and needs recovery from the person or persons responsible.

(Para.No.9.1.5 of AR of GHMC- ABIDS (Circle-9))

14.3. MC, KURNOOL - 12TH FINANCE COMMISSION FUNDS – TRICYCLES

PURCHASED AND KEPT IDLE – WASTEFUL EXPENDITURE – Rs.12,35,000/-

During the course of audit, it was noticed that an amount of Rs 12,35,000/- was drawn from 12th Finance commission Funds vide Voucher No 1 dated 12.05.2010 for the payment to M/s. Ravikula Engineering Works, Bheemavaram towards Supply and Delivery of 100 Tricycles to collect garbage from the houses in the lanes of Corporation. The quantity and values were recorded in the MB No 97/07-08. But it was observed in Audit that the purchased Tricycles are not put in use and kept idle. Hence the expenditure incurred is of no use and presumed that it is a wasteful expenditure. In view of the above the expenditure incurred to a tune of Rs.12,35,000/- for the purchase of Tricycles is held under objection. The matter would need to be pursued and the loss caused would need to be made good from the person or persons responsible.


15. INSTANCES OF CASES UN-ACCOUNTED CASH / STORES

Few instances of Cash/Stores unaccounted for were noticed during the course of

audit and a few of such audit observations are furnished hereunder. The Consolidated Statement of cases of unaccounted for Cash / Stores Statement No.8(2) is appended to the Report from which it can be noticed that 7 Paras pointing out to Rs.89.57 Lakhs were raised during the year. One such para is given below.

15.1 GHMC – MANIPULATIONS IN THE STOCK REGISTERS – ARRIVAL

OF LESS CLOSING BALANCE OF STOCK – MISUSE OF FUEL – LOSS – NEED RECOVERY – Rs.12,11,662/-

On verification of the stock and issue of diesel, manipulations in the stock registers were noticed leading to short account of fuel and consequent loss to the institution. The closing balances of the stock were abruptly reduced at the end of certain months without mentioning the reasons for reduction of the stock.

147

Total of stock reduced as such works out 29758 litres involving an amount of Rs.12,11,662/-.

1) PUMP-I Khairthabad - 22989 Litres 2) PUMP-II Khairthabad - 989 Litres 3) PUMP-I Malakpet - 404 Litres 4) PUMP-II Malakpet - 5376 Litres

Total 29758 Litres X Rs.40.75 = Rs.12,11,662/- Immediate action would need to be taken for recovery of the amount from the person responsible under intimation to audit.

(Para No.4 of AR on Transport H & S Section 2 of GHMC of 2010-11)

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.8 (2) to the Report from which it could be seen that an amount of Rs. 43.86 lakhs was pointed out in 7 audit paras.


-Nil-

18. OTHERS

Other objections which were not fallen in the above categories are incorporated under this category. A Consolidated Statement No.8 (2) showing such objections is appended to the Report from which it could be seen that an amount of Rs.622.39 lakhs was pointed out in 332 Audit Paras.

A few cases of other objections noticed in the Audit Reports in various Local

Bodies are detailed below:

148

18.1. GHMC, SHERILINGAMPALLY - TRANSPORT OF GARBAGE FROM NALLGANDLA TRANSFER STATION TO JAWAHARNAGAR DUMPING YARD – LOW MILEAGE OF TRANSPORT VEHICLE – LACK CONTROL MECHANISM RESULTED IN EXORBITANT EXPENDITURE OBJECTED – Rs.40,48,802/-

An amount of Rs.40,48,802/- was incurred towards the Transport of Bulk Garbage

from Nallgandla Garbage Transfer Station to Jawaharnagar Dumping Yard. In the Log Sheet of the Vehicles, the details of available fuel in the fuel tank and fuel drawn and balance of fuel on particular day were not shown. The mileage is very low which indicates poor performance, over drawl of the fuel and consequential over expenditure. It shows poor/lack of control mechanism. The instance of the low mileage and exorbitant expenditure on fuel consumption notice in audit is detailed below.

Immediate action would need to be taken to investigate the matter and taken

necessary action against the defaulter besides the measures to arrest the leakage of the expenditure.

(Para.No.7.1.2 of AR of GHMC - SHERILINGAMPALLY (Circle-11))

18.2. MC, GUNTUR - WORKS – EXCAVATION OF EARTH/DISMANTLING

OF RCC RAMPS – CONVEYANCE OF EARTH AND DEBRIS TO LOW LYING AREAS IN CORPORATION LIMITS – DETAILS OF LOW LYING AREAS AND THEIR ACTUAL DISTANCE NOT RECORDED IN MB – PAYMENT OF CONVEYANCE CHARGES HELD UNDER OBJECTION – Rs.5,31,135/-

During the Audit it was noticed in some M Books that while executing some works, the excavation of earth/dismantling of RCC Ramps etc., were done and payment made for the conveyance of earth/debris to the low lying areas in Corporation limits. But the names of the low lying areas and their actual distance from the work spot were not recorded in the M Books. It was further observed that in all such cases the Conveyance Charges were allowed for a uniform distance of 1 KM which is highly improbable. In the absence of the details in M Books, the genuineness of the fact of conveyance of earth/debris to the low lying areas could not be verified in audit. Hence, the payment of Conveyance Charges Rs.5,31,135/- is not admissible in audit.

(Para No.109 of the A.R of MC Guntur)

# Vehicle Period Total distance

Total diesel

Mileage

1 AP11V8478 (Tipper) 18 to 20.03.2010 No of Trips 4X100=400

228 1.75 KMPL

2 AP11X7236 (Tipper) 17 to 19.03.2010 No of Trips 4X100=400

285 1.4 KMPL

149

18.3. MC, NELLORE - ACCUMULATED DEPRECIATION SHORT SHOWN IN FINAL ACCOUNTS Rs.6,61,06,091/-

The accumulated depreciation on fixed assets as per Balance Sheet for the year

2009-10 in respect of MGF was Rs 1,17,39,54,466/- and the provision made for the year 2010-11 as per the Income and Expenditure Statement was Rs 11,24,74,792/- The total of these two should agree with the accumulated depreciation for the year 2010-11 on fixed assets but the same was shown as Rs 1,28,64,29,258/- which is Rs 6,61,06,091/ short and as a result the assets were over 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 01.04.2010 as per Balance Sheet as on 31.03.2010

Rs 1,17,39,54,466

Depreciation provided on fixed assets during the year as per Income and Expenditure Statement for the year 2010-11

Rs 11,24,74,792

Total Accumulated Depreciation to be shown in Balance Sheet as on 31.03.2011

Rs 1,28,64,29,258

Accumulated Depreciation already shown in Balance Sheet Rs 1,22,03,23,167

Short Shown Rs 6,61,06,091 In view of the above defect the correctness of the financial statements for the year

2010-11 could not be held to be correct in audit.

(Para No 137(7) of the AR of MC Nellore) 18.4. MC, KARIMNAGAR - ACCOUNTS – KEEPING HUGE AMOUNT OF

CASH ON HAND – REASONS NOT EXPLAINED TO AUDIT – HELD UNDER OBJECTION

On verification of Annual Accounts of Municipal Corporation for the year 2010-

11 in Double Entry Accrual Based Accounting System, it is observed that there were huge amounts of Cash on Hand as on 31.03.2011 in Municipal General Fund and the reasons for keeping such huge amount were not explained by the Executive Authority to the Audit. Such practices should be dispensed.

(Para No 12(34) of AR of M.C Karimnagar)

DIRECTOR

A.P., HYDERABAD DATE: 30-08-2013 PLACE: HYDERABAD

ACCOUNT STATEMENTS OF MUNICIPAL CORPORATIONS

SECTION - II

DEMAND AS ON 01.04.2011

AUDIT COMPLETED AS ON 30.6.2013

BALANCE AS ON 01.07.2013

16 9 7GHMC GHMC Vijayawada

Guntur Guntur Eluru

GVMC GVMC Nizamabad

Kadapa Kadapa Warangal

Kakinada Kakinada Rajahmundry

Karimnagar Karimnagar Ananthapuram

Kurnool Kurnool Ramagundam

Nellore Nellore

Tirupathi Tirupathi

Vijayawada

Eluru

Nizamabad

Warangal

Rajahmundry

Ananthapuram

Ramagundam

STATEMENT No.1

STATEMENT SHOWING STATUS OF AUDIT OF MUNICIPAL CORPORATIONS FOR THE YEAR 2010-11 AS ON 30.6.2013

Page 150

Sl.No.

Name of the Municipal

Corporation

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)

Income from Investments(1

70)

Interest Earned (171)

Other Income(180)

Total (Revenue)

1 GHMC 49454.96 33173.57 1390.09 37197.51 273.54 1921.07 0 4509.22 651.12 128571.08

2 Guntur 3465.96 1484.10 315.27 3081.91 25.30 138.87 22.53 1.02 1143.09 9678.04

3 GVMC 2814.43 6433.56 0.48 1068.62 0.00 1246.15 910.17 0.00 93.42 12566.84

4 Kadapa 1313.59 996.30 99.46 602.41 18.69 83.06 0.00 17.75 93.37 3224.63

5 Kakinada 2089.52 548.35 93.02 999.32 2.98 33.23 133.75 30.68 95.66 4026.53

6 Karimnagar 204.37 517.27 4.47 1122.16 14.67 0.00 18.40 16.31 29.68 1927.33

7 Kurnool 2065.99 721.70 135.75 1209.18 0.00 102.11 3.78 9.41 937.67 5185.60

8 Nellore 3486.32 375.68 0.00 1424.64 0.00 21.26 0.00 195.74 1105.06 6608.70

9 Tirupathi 279.43 453.52 215.57 1091.07 5.67 326.18 0.00 29.88 58.23 2459.55

65174.58 44704.06 2254.12 47796.82 340.85 3871.92 1088.64 4810.01 4207.29 174248.30

STATEMENT No.2 (1)

Total

Rs. in Lakhs

Statement showing the Headwise Revenue Receipts of Muncipal Corporations for the year 2010-2011

Page 151

Sl.No.


Corporation

Municipal Fund(310)

Earmarked Funds(311)

Reserves(312)

Grants Contribution for specific purposes

(320)

Secured Loans(330)

Un-secured Loans(331)

Deposits Received

(340)

Deposit works(341)

Other Liabilities

(350)

Provisions(360)

Total(Capital)

Grand Total(Revenue +

Capital)

1 GHMC 88854.77 15743.54 76415.60 76822.85 19235.93 6985.87 18141.26 7.85 46770.30 2922.18 351900.15 480471.23

2 Guntur 0.00 0.00 0.00 -325.09 0.00 0.00 33.34 0.00 -471.48 0.00 -763.22 8914.82

3 GVMC 0.00 -14.48 0.00 7929.75 19292.45 0.00 2290.83 0.00 2967.24 0.00 32465.78 45032.62

4 Kadapa 0.00 0.00 0.00 1551.46 0.00 0.00 52.18 0.00 156.65 0.00 1760.29 4984.92

5 Kakinada 0.00 0.18 0.00 769.65 0.00 0.00 73.42 0.00 639.06 0.00 1482.32 5508.84

6 Karimnagar 0.00 -327.12 0.00 763.96 0.00 0.00 51.49 0.00 65.59 0.00 553.92 2481.25

7 Kurnool 0.00 506.48 0.00 123.28 8.30 0.00 292.00 0.00 165.18 0.00 1095.24 6280.83

8 Nellore 0.00 32.90 0.00 1006.20 0.00 0.00 196.11 0.00 139.98 0.00 1375.19 7983.89

9 Tirupathi 0.00 -3.04 0.00 4278.00 0.00 0.00 32.23 0.00 168.78 0.00 4475.97 6935.52

88854.77 15938.44 76415.60 92920.06 38536.67 6985.87 21162.87 7.85 50601.30 2922.18 394345.62 568593.93Total

Statement showing the Headwise Capital Receipts of Muncipal Corporations for the year 2010-2011

STATEMENT No.2 (2)

Rs. in Lakhs

Page 152

Sl.No.


Corporation

Establishment Expenses

(210)

Administrative Expenses

(220)

Operations and Maintenance

(230)

Interest and

Finance Charges

(240)

Programme Expenses

(250)


(260)

Provisions and Write off

(270)

Miscellaneous Expenses

(271)

Depreciation(272)

Prior Period Item(280)

Transfer to

Reserve Funds(290)

Total (Revenue)

1 GHMC 37022.36 2562.77 55172.22 3552.60 1778.96 0.00 0.00 0.00 24194.85 0.00 0.00 124283.76

2 Guntur 944.80 1230.46 1002.85 0.50 34.81 3.76 4.04 0.00 0.00 48.85 0.00 3270.06

3 GVMC 11120.79 1447.16 13139.79 1495.18 1292.35 0.00 0.00 0.00 0.00 61.01 0.00 28556.28

4 Kadapa 491.69 1003.09 524.42 0.08 31.02 0.00 0.00 0.04 0.00 233.46 208.98 2492.77

5 Kakinada 130.14 300.81 908.52 0.16 101.48 216.41 0.05 0.78 0.96 0.00 0.00 1659.32

6 Karimnagar 673.34 786.44 294.54 8.81 0.10 0.00 0.00 0.00 0.00 42.11 0.00 1805.33

7 Kurnool 1097.08 364.69 2750.88 0.18 282.26 0.00 0.00 67.88 0.00 37.37 0.00 4600.33

8 Nellore 1015.47 985.35 1298.18 15.17 67.83 78.93 0.00 67.12 0.00 110.47 0.00 3638.51

9 Tirupathi 1027.02 784.88 580.28 0.10 220.61 0.00 0.00 0.00 0.00 117.03 0.00 2729.92

53522.69 9465.64 75671.67 5072.78 3809.41 299.09 4.09 135.82 24195.81 650.29 208.98 173036.29Total

STATEMENT No.3 (1)

Rs. in Lakhs Statement showing the Headwise Revenue Payments of Muncipal Corporations for the year 2010-2011

Page 153

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 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 GHMC 414310.72 -134723.76 0.00 212.50 1155.40 171.89 14887.13 0.00 0.00 47752.22 8134.07 0.00 0.00 0.00 351900.17 476183.93

2 Guntur 3601.40 0.00 48.68 0.00 2500.00 0.00 0.00 0.00 0.00 0.00 50.26 0.00 71.60 0.00 6271.94 9542.00

3 GVMC 0.00 0.00 46734.35 835.52 0.00 0.00 -28026.88 0.00 0.00 0.00 46.31 0.00 122.64 0.00 19711.94 48268.21

4 Kadapa 1623.11 0.00 8.33 -271.28 590.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1950.27 4443.05

5 Kakinada 2654.17 0.00 164.13 408.77 0.11 0.00 0.00 0.00 0.00 0.00 68.43 0.00 0.00 0.00 3295.61 4954.93

6 Karimnagar 869.67 0.00 22.45 0.00 655.00 0.00 -819.28 0.00 1.47 0.00 0.00 0.00 44.71 0.00 774.01 2579.34

7 Kurnool 1149.73 0.00 16.10 128.76 -695.51 0.00 -2.57 0.00 0.00 0.00 92.19 0.00 0.00 0.00 688.70 5289.03

8 Nellore 3610.02 0.00 92.62 300.00 600.00 0.00 0.00 0.00 0.00 0.00 4.73 0.00 0.72 0.00 4608.09 8246.60

9 Tirupathi 4259.41 0.00 45.12 250.03 0.00 0.00 -1933.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2621.14 5351.06

432078.22 -134723.76 47131.76 1864.30 4805.11 171.89 -15895.01 0.00 1.47 47752.22 8395.99 0.00 239.67 0.00 391821.86 564858.15

STATEMENT No.3 (2)

Total

Statement showing the Headwise Capital Payments of Muncipal Corporations for the year 2010-2011Rs. in Lakhs

Page 154

Sl.No.


Corporation

Tax Revenue

(110)


Compensations(120)

Rental Income from


(130)

Fees and User Charges

(140)

Sale and Hire

Charges(150)

Revenue Grants Contribution and

Subsidies(160)

Income from Investments

(170)


Other Income(180)

Total

1 GHMC 49,455.51 33,173.57 1351.61 37206.9 273.52 2081.46 0 4509.12 531.08 128582.77

2 Guntur 4230.31 1484.10 823.96 3043.92 14.62 5.18 22.31 1.02 169.75 9795.18

3 GVMC 17987.62 6433.56 530.55 19473.13 51.37 1246.15 910.17 257.35 306.88 47196.79

4 Kadapa 2315.42 996.30 122.96 597.68 18.69 83.06 85.00 17.75 93.37 4330.23

5 Kakinada 2251.10 548.35 109.66 986.40 2.98 33.23 133.75 30.68 95.66 4191.82

6 Karimnagar 999.96 517.27 12.58 1323.54 14.67 0.00 23.40 16.31 27.73 2935.46

7 Kurnool 1396.92 721.70 62.75 1190.15 0.00 102.11 298.05 9.41 937.67 4718.77

8 Nellore 1734.81 375.68 80.11 3045.07 25.79 37.63 33.30 195.74 57.50 5585.64

9 Tirupathi 2193.64 453.52 181.60 1465.23 4.14 326.18 0.00 29.88 15.33 4669.52

82565.28 44704.06 3275.79 68332.02 405.79 3915.00 1505.98 5067.26 2234.98 212006.17

Statement showing the Headwise Income of Muncipal Corporations for the year 2010-2011

Total

Rs. in Lakhs

STATEMENT No.4

Page 155

Sl.No.


Corporation


(210)


(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)

Deprecia tion

(272)


Transfer to

Reserve Funds (290)

Total

1 GHMC 35373.92 2556.22 55132.91 3552.62 3513.01 0 0 0 24194.85 0 0 124323.53

2 Guntur 1004.64 1158.49 1245.04 47.97 37.17 3.76 0.00 0.00 4326.72 0.00 0.00 7823.79

3 GVMC 11161.50 1516.59 15181.07 1866.55 250.45 0.00 0.00 0.00 9494.36 0.00 0.00 39470.52

4 Kadapa 501.07 1004.30 533.71 0.08 31.66 0.00 0.00 0.04 1004.19 241.51 208.98 3525.54

5 Kakinada 136.75 289.26 924.57 0.16 99.29 216.41 0.05 0.96 1525.53 0.00 0.00 3192.98

6 Karimnagar 697.47 792.12 292.40 8.81 0.10 0.00 0.00 0.00 589.61 42.11 0.00 2422.63

7 Kurnool 1097.01 364.69 2750.88 0.18 282.26 0.00 0.00 67.88 855.95 37.37 0.00 5456.22

8 Nellore 1021.82 998.15 1492.54 15.17 67.83 -664.12 0.00 67.12 1242.46 110.47 0.00 4351.45

9 Tirupathi 1027.02 786.50 580.28 0.10 220.61 -506.42 0.00 0.00 1354.14 117.03 0.00 3579.25

52021.20 9466.31 78133.40 5491.64 4502.37 -950.37 0.05 136.00 44587.81 548.48 208.98 194145.89

Statement showing the Headwise Expenditure of Muncipal Corporations for the year 2010-2011

Total

Rs. in Lakhs

STATEMENT No.5

Page 156

Sl.No.


Corporation

Fixed Assets(410)

Accumulated Depreciation (411)


(412)


(420)

Investments-Other Funds(421)

Stock-in- hand(430)

Sundry Debtors (Receivables)

(431)

1 GHMC 414310.72 -134723.76 0 212.5 1155.4 171.89 14887.132 Guntur 65681.77 -43489.30 39.24 0.00 3672.12 0.00 3762.233 GVMC 136458.33 -73638.33 127001.57 5460.58 0.00 0.00 29568.504 Kadapa 27681.39 -6336.50 399.76 0.00 1646.99 12.62 1734.815 Kakinada 45070.71 -28381.40 11.40 2075.28 -0.05 31.97 2380.696 Karimnagar 28388.89 -23844.46 27.43 0.00 1634.00 6.91 448.357 Kurnool 18157.05 -11086.93 -164.28 2314.12 3479.91 15.95 885.598 Nellore 19313.08 -12364.54 0.00 309.95 917.91 0.00 1800.509 Tirupathi 28390.98 -10579.89 53.11 260.03 793.93 0.00 1157.31

783452.92 -344445.11 127368.23 10632.46 13300.21 239.35 56625.12Total

STATEMENT No.6 (1)

Statement showing the Headwise Assets of Muncipal Corporation for the year 2010-2011

Rs. In Lakhs

Page 157

Sl.No.


Corporation


against Debtors (Receivables)

(432)

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 GHMC 0 0 47752.22 8134.07 0 0 0 351900.171 Guntur 0.00 0.00 3187.56 394.69 0.00 145.73 0.00 33394.042 GVMC 0.00 0.00 10462.24 4501.21 0.00 324.55 0.00 240138.653 Kadapa 0.00 0.00 1658.95 18.65 0.00 0.00 0.00 26816.674 Kakinada 0.00 0.00 2144.06 263.15 0.00 0.00 0.00 23595.825 Karimnagar 0.00 1.47 1193.80 0.00 0.00 73.50 0.00 7929.896 Kurnool 0.00 0.00 2338.50 206.41 0.00 0.00 0.00 16146.317 Nellore 0.00 0.00 1699.48 264.90 0.00 5.10 0.00 11946.398 Tirupathi 0.00 0.00 2985.11 41.24 0.00 0.00 0.00 23101.81

0.00 1.47 73421.92 13824.32 0.00 548.88 0.00 734969.76Total

Statement showing the Headwise Assets (except GHMC) of Muncipal Corporation for the year 2010-2011

STATEMENT No.6 (2)

Rs. In Lakhs

Page 158

Sl.No.

Name of the MC

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 GHMC 88854.77 15743.54 76415.6 76822.85 19235.93 6985.87 18141.26 7.85 46770.3 2922.18 351900.15

2 Guntur 32839.90 168.51 220.43 -663.78 443.20 33.92 173.89 0.00 177.97 0.00 33394.04

3 GVMC 146982.24 0.01 0.00 41910.02 29080.67 0.00 5515.04 197.03 16453.64 0.00 240138.65

4 Kadapa 21381.42 0.00 0.00 3896.66 0.00 700.05 110.83 0.00 727.71 0.00 26816.67

5 Kakinada 18649.13 -29.07 0.00 2388.79 0.00 0.00 412.89 0.00 2174.08 0.00 23595.82

6 Karimnagar 5000.96 333.99 0.00 712.88 0.00 637.87 192.32 0.00 1051.87 0.00 7929.89

7 Kurnool 8883.11 1098.67 0.00 4560.10 8.66 642.42 398.68 0.00 554.67 0.00 16146.31

8 Nellore 9839.53 37.57 0.00 964.89 0.00 0.00 500.10 0.00 604.30 0.00 11946.39

9 Tirupathi 18232.45 0.00 0.00 3712.57 200.00 0.00 436.60 0.00 520.19 0.00 23101.81

350663.50 17353.22 76636.03 134304.99 48968.46 9000.13 25881.61 204.88 69034.75 2922.18 734969.74

Statement showing the Headwise Liabilities of Muncipal Corporations for the year 2010-2011

Total

Rs. In Lakhs

STATEMENT No.7

Page 159

Sl. No. Name of the category No. Amount

1 Variation in Account Figures 62 1624.19

2 Excess Utilisation of Grants / Funds 13 269.43

3 Diversion of Grants / Funds 10 374.48

4 Non-utilisation of grants before the lapsable date 5 86.68

5 Mis-utilisation of Grants / Funds 1 0.00

6 Non- utilisation of Earmarked Funds 11 0.00

7 Non-collection of dues 217 5583.72

8 Advances pending adjustment 5 185.29

9 Violation of Rules 262 1657.16

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 55 906.17

11 Non Production of Records 303 12984.03

12 Misappropriations 34 79.45

13 Excess Payments 100 673.21

14 Wasteful Expenditure 14 6351.15

15 Instances of cases of unaccounted for cash /stores 7 89.57

16 Pendency of Utilisation Certificates 7 43.86

17 Surcharges Certificates- Recovery Pending 0 0.00

18 Others 332 622.39

19 D.D. Cheques received but not realized with in time 0 0.00

Total 1438 31530.78

STATEMENT No. 8

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDITOBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED IN

RESPECT OF MUNICIPAL CORPORATIONSFOR THE YEAR 2010-2011

Rs. In Lakhs

Page 160

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.

1 GHMC 50 1624.19 1 0.00 4 15.75 0 0.00 1 0.00 8 0.00 98 828.14 0 0.00 126 1309.06 0 0.00

2 Guntur 1 0.00 0 0.00 1 22.65 0 0.00 0 0.00 0 0.00 13 418.17 1 161.76 26 44.98 1 114.45

3 GVMC 5 0.00 0 0.00 0 0.00 1 0.00 0 0.00 0 0.00 31 299.19 0 0.00 22 5.83 1 2.16

4 Kadapa 3 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 16 2632.94 0 0.00 14 0.00 8 108.85

5 Kakinada 0 0.00 9 0.00 2 0.00 3 8.79 0 0.00 0 0.00 18 12.94 1 0.00 24 1.84 4 0.20

6 Karimnagar 2 0.00 0 0.00 1 300.00 1 77.89 0 0.00 1 0.00 1 0.00 1 8.69 3 0.00 37 468.79

7 Kurnool 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.00 15 119.47 0 0.00 11 7.28 0 0.00

8 Nellore 0 0.00 3 269.43 1 29.49 0 0.00 0 0.00 1 0.00 10 0.31 1 0.00 27 230.78 3 210.62

9 Tirupati 1 0.00 0 0.00 1 6.59 0 0.00 0 0.00 0 0.00 15 1272.56 1 14.84 9 57.38 1 1.11

Total 62 1624.19 13 269.43 10 374.48 5 86.68 1 0.00 11 0.00 217 5583.72 5 185.29 262 1657.16 55 906.17

Non-remittance

of deduction / recoveries

(10)

Diversion of Grants/Funds

(3)

Non- Utilisation of Grants

before lapsable date

(4)

Mis utilisation of Grants

(5)

Non-utilisation

of Earmarked

(6)

STATEMENT 8 (1)STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED (DIST AND CATEGORY WISE) AND AMOUNT INVOLVED

FOR THE YEAR 2010-11Rs. In lakhs

Sl.No.


Corporation

Variation in Account figures

(1)

Excess Utilisation

of Grants/Funds

(2)

Non-collection of dues

(7)

Advances pending

adjustment(8)

Violation of Rules

(9)

Page 161

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.

1 GHMC 110 2932.34 20 64.29 46 51.64 9 6161.25 5 89.57 4 43.86 0 0.00 95 442.86 0 0.00 577 13562.95

2 Guntur40 3454.18 0 0.00 14 1.12 0 0.00 0 0.00 1 0.00 0 0.00 33 38.40 0 0.00 131 4255.71

3 GVMC14 1094.94 0 0.00 25 2.70 3 5.65 0 0.00 1 0.00 0 0.00 31 0.00 0 0.00 134 1410.47

4 Kadapa 35 158.77 12 11.33 2 0.40 0 0.00 0 0.00 0 0.00 0 0 42 86.92 0 0.00 132 2999.20

5 Kakinada 14 52.47 2 3.83 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 16 0.00 0 0.00 93 80.07

6 Karimnagar0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 35 34.85 0 0.00 82 890.22

7 Kurnool 16 5.65 0 0.00 3 0.68 1 12.35 1 0.00 0 0.00 0 0.00 25 15.05 0 0.00 73 160.48

8 Nellore 63 5027.39 0 0.00 3 5.31 0 0.00 0 0.00 1 0.00 0 0.00 41 0.00 0 0.00 154 5773.33

9 Tirupathi 11 258.3 0 0 7 611.36 1 171.9 1 0.00 0 0.00 0 0.00 14 4.31 0 0.00 62 2398.35

Total 303 12984.03 34 79.45 100 673.21 14 6351.15 7 89.57 7 43.86 0 0.00 332 622.39 0 0.00 1438 31530.78

TotalExcess

Payments(13)

Wasteful Expenditure

(14)

Instances of cases of

unaccounted for cash /stores

(15)

Pendency of Utilisation Certificates

(16)

STATEMENT 8 (2)

STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED (DIST AND CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs

Sl.No.


Corporation

Non Production of Records

(11)

Misappropriations (12)

Surcharges Certificates-

Recovery Pending

(17)

Others(18)

D.D. Cheques received but not realized with in time

(19)

Page 162

PART - III



PART – III


MUNICIPAL COUNCILS FOR

THE YEAR 2010-11


PART – III

SECTION - I


No.


2 A few Selected Audit Objections – Category wise 170-203

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2010-11 OF MUNICIPAL COUNCILS

PAGE No.

1 Status of Audit of Municipal Councils (District wise)

204

2 & 3 Receipts and Payments of Municipal Councils (District wise & Head Wise).

205-208

4 & 5 Income & Expenditure of Municipal Councils (District wise & Head Wise).

209-210

6 & 7 Assets & Liabilities of Municipal Councils (District wise & Head Wise).

211-213

8 No. of Audit Objections raised (District wise & Category wise) and Amount involved in respect of Municipal Councils.

214-216

CONTENTS

SECTION - I

163

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF MUNICIPAL COUNCILS FOR THE YEAR 2010-11

INTRODUCTION

1.1 As per the provision contained in Section 3(4) of A.P. State Audit Act, 1989 the

Director of State Audit, A.P., Hyderabad was appointed an Auditor for conducting 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 are the heads the Zonal Offices, and the District Audit Officer, State Audit in the heads of the District Offices.

1.3 The Department conducts post audit of the Municipalities and Audit Reports 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 within a period of two months as per Section 9 (1) of the State Audit Act.

1.4 Under section 10 (1) 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 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 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 an adequate care has been taken in periodical checking up of the funds

with Treasury or Bank.

Whether the 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.

164

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 the vouchers for the expenditure incurred were maintained properly.

Whether the grants received from different sources were properly accounted for

and 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 Government of Andhra Pradesh, , 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 from single entry to double entry, the procedure prescribed in APMAM was not followed fully. The observations made during verification of Annual Accounts 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 2010-11 by the Municipal Councils. The various Grants received by Municipal Councils are detailed in Statement No.2 & 3.

3.3 The Head Wise Revenue Receipts of Municipal Councils for the year 2010-11 are

exhibited below in a Pie chart.

165

PIE CHART OF REVENUE RECEIPTS OF MCs FOR 2010-11

40.44%

11.86%5.71%

19.21%

0.23%

5.81%

0.89%

4.10%11.74%

Tax Revenue 40.44%

Assigned Revenues andCompensations 11.86%

Rental Income fromMunicipal Properties 5.71%

Fees and User Charges19.21%

Sale and Hire Charges0.23%

Revenue Grants Contribution and Subsidies5.81%Income from Investments0.89%

Interest Earned 4.10%

Other Income 11.74%

3.4 Thus the receipt under Tax Revenue forms has evolved a major chunk of the total

receipts of the municipal Councils. 3.5 The Head Wise Capital Receipts of Municipal Councils for the year 2010-11 are


PIE CHART OF CAPITAL RECEIPTS OF MCs FOR 2010-11

1.01%

1.19%

0.05%

92.55%

0.08%

3.72%

0.11%

1.29%

Municipal Fund 1.01%

Earmarked Funds 1.19%

Reserves 0.05%

Grants Contribution forspecific purposes 92.55%

Unsecured Loans 0.08%

Deposits Received 3.72%

Deposit works 0.11%

Other Liabilities 1.29%

166

3.6 The Head Wise Revenue Payments of Municipal Councils for the year 2010-11 are


PIE CHART OF REVENUE PAYMENTS OF MCs FOR 2010-11

28.84%

25.26%

37.62%

0.76%

3.23%

2.35%

0.25%

0.10%

0.77%

0.81%

0.00%

Establishment Expenses 28.84%

Administrative Expenses 25.26%

Operations and Maintenance37.62%Interest and Finance Charges0.76%Programme Expenses 3.23%

Revenue Grants Contribution andSubsidies 2.35%Provisions and Write off 0.25%

Miscellaneous Expenses 0.10%

Depreciation 0.77%

Prior Period Item 0.81%

Transfer to Reserve Funds 0.00%

3.7 The Head Wise Capital Payments of Municipal Councils for the year 2010-11 are


PIE CHART OF CAPITAL PAYMENTS OF MCs FOR2010-11

72.73%

13.46%

4.64%

5.39%

0.14%

0.01%

2.41%

1.21%

Fixed Assets 72.73%

Capital Work-In-Progress 13.46%

Investments-GeneralFund 4.64%

Investments-OtherFunds 5.39%

Stock-in- hand 0.14 %

Pre-paid Expenses0.01%

Loans Advances andDeposits 2.41%

Other Assets 1.21%

167

STATUS OF AUDIT 4.1. Audit of 102 Municipal Councils for the year 2010-11 was conducted as

mentioned below.

Demand

Completed Balance

108 102 6 Note* Adilabad (7 MCs audit done in Single entry) RECEIPTS & PAYMENTS 4.2 The Department has conducted the audit of the receipts amounting to

Rs.85,338.86 lakhs and Payments of Rs.61,916.25 lakhs as detailed in the Statements No.2 & 3 with a District wise break up.

INCOME & EXPENDITURE 4.3. The Income & Expenditure of the above Municipal Councils for the year 2010-11

furnished District wise in Statement No.4 & 5 respectively. The income earned by the said municipalities during the year 2010-11 is Rs.58,821.85 lakhs and expenditure incurred is Rs.72,455.63 lakhs.

BALANCE SHEET 4.4 The Assets & Liabilities (Balance Sheet) of the Municipal Councils for the year

2010-11 are furnished in statement No.6 & 7 respectively. The total Assets & Liabilities of the aforesaid Municipalities as on 31.03.2011 as per Balance Sheet are Rs.3,67,011.47 and Rs.3,66,670.89 respectively

AUIDT OPINION

5.1 The financial statements furnished by the ULBs, except for receivables and

payables, were assessed basing on the Registers / Records duly certified by the competent authorities.

5.2 Many misclassifications pointed out i.e payment Booked as Receipt and vice

versa thereby (-) balances shown in the Accounting Statements. Mis classification of Capital expenditure into Revenue Expenditure will have the cascading effect which may lead to incorrect determination of depreciation expenses and misstatement of assets in the balance sheet.

5.3 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 31.03.2011 are in-accordance with the accounting principles generally accepted.

168

AUDIT OBJECTIONS

6.1 During the course of audit of these Municipal Councils for the year 2010-11, 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 5774 audit objections involving an amount of Rs.15,800.45

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.8 (1) to 8(2). 6.4 CATEGORISATION OF AUDIT OBJECTIONS

The audit objections raised in audit reports are classified into 19 categories as detailed below.

1. Variation in Account Figures 2. Excess Utilization of Grants 3. Diversion of Grants / Funds 4. Non-utilization of Grants before lapsable date 5. Mis-utilization 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 Utilization Certificates 17. Surcharge Certificates – Recovery pending 18. Others 19. Demand Drafts / Cheques / Bankers Cheques etc., received but not realized within time

6.5 The Consolidated Statements showing the amounts under category wise various

Audit Objections raised in the Audit Reports are annexed to the Report [Statements from 8(1) to 8(2)].

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 50.77 % of objections followed by Non-collection of dues with 20.50%.

An amount of Rs.8,022.11 lakhs was objected pertaining to Non production of records, followed by Non-collection of dues which constituted Rs.3,238.72 lakhs. These two together speak the status of the maintenance of record and the inaction of the Municipalities in collecting the dues.

169

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs.

Sl. No. Name of the category No. Amount % on

Amount

1 Non Production of Records 2009 8022.11 50.77


3 Violation of Rules 1403 1299.40 8.22

4 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 258 1022.26 6.47

5 Others 1026 720.57 4.56

6 Diversion of Grants / Funds 53 530.92 3.36


8 Non-utilization of grants before the lapsable date 38 246.32 1.56

9 Misappropriations 60 210.10 1.33

10 Variation in Account Figures 138 101.10 0.64

11 Excess Payments 153 68.22 0.43

12 Wasteful Expenditure 33 48.76 0.31

13 Mis-utilization of Grants / Funds 4 2.54 0.02

14 Instances of cases of unaccounted for cash /stores 5 1.84 0.01

15 Excess Utilization of Grants / Funds 37 1.16 0.01

16 Non- utilization of Earmarked Funds 23 0.00 0.00

17 Pendency of Utilization Certificates 32 0.00 0.00

18 Surcharges Certificates- Recovery Pending 0 0.00 0.00

19 D.D. Cheques received but not realized with in time 0 0.00 0.00

Total 5774 15800.45 100.00

Gist of some of the selected audit objections pertaining to the year under report is enumerated below:

170

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. 8 (1) showing the Variation in account figures is

appended to the Report from which it could be seen that Non-reconciliation to a tune of Rs. 101.10 lakhs was pointed out in 138 audit paras. Few such cases are given below.

1.1 M C ,TANUKU – WEST GODAVARI - 12th FINANCE COMMISSION GRANT – EXPENDITURE INCURRED NOT TAKEN INTO ERP ACCOUNT -Rs. 13,72,721/-

The Opening & Closing Balance of the 12th Finance Commission funds at

SBI,Tanuku were shown as Rs 66,11,870/- in the ERP account without taking in to account the expenditure incurred to a tune of Rs 13,72,721/- during the year 2010-11 from the 12th Finance commission funds. As such the O.B should have been shown as Rs 66,11,870 and after deducting the above expenditure the C.B should have been arrived as Rs 52,39,149/- which was not done in the ERP account. The defect needs to be rectified to have a true picture of account.

(Para No 10 of AR of MC, Tanuku, West Godavari)

1.2 M C, SAMALKOT- WEST GODAVARI - VARIATION BETWEEN

FIGURES ADOPTED IN MUNICIPAL GENERAL FUND RECEIPTS & PAYMENT A/C AND TRIAL BALANCE – NEEDS RECTIFICATION.

During the verification of records relating to DCB some variations were observed

in the figures adopted between Receipts & Payments of Municipal General Fund and trial balance as shown below which need to be rectified to exhibit a true picture of accounts.

171

# Account Name Account Code

As per Receipts & Payment a/c (in Rs)

As per Trial Balance

(Rs)

1 Properties – General 1100101 1,27,72,536 1,23,11,027

(including all components)

2 Vacant Land Tax 1100102 56,196 16,859 3 Properties – Water tax 1100201 30,88,498 48,84,520 4 Markets- Shopping Complexes 1301001 6,31,875 9,18,658 5 Shopping Complexes (Rents) 1301015 21,26,155 20,28,649 6 Other Rents 1308000 15,66,547 15,93,564 7 Trade License 1401101 2,10,174 2,23,304 8 GPF Payable 3501105 11,90,602 12,87,162 9 TDS from Contractors 3502025 2,11,685 2,28,975

10 APGST 3502052 51,160 64,196 11 Service Tax 3502054 2,370 8,963

Payments

# Account Name Account Code As per R&P As per trial

balance Rs. 1 Wages to contract workers 2101011 63,85,283 64,71,408 MGF

1,35,978 CPF 2 Telephone 2201201 59,926 73184 3 Mobiles 2201202 1,71,048 1,81,061 4 Electricity charges 2201101 56,02,430 67,66,569 5 Printing 2202101 38,733 56,061 6 Service p 2202104 2,229 5,875 7 Others 2208000 50,41,745 51,56,609

4,03,628 CPF 8 Power charges for street Lighting 2301001 1,95,091 1,95,591 9 Power charges for water

pumping 2301002 15,784 43,439

10 Vehicles 2304002 99,400 2,19,950 72,600 CPF

11 Water supply lines 2305005 8,40,200 9,60,935 12 Street Lighting 2305009 5,19,159 6,18,093 13 Computer and network 2305902 31,809 36,309 14 Other Expenses 2808000 12,79,136 14,90,393 15 Office Building 4120021 6,00,000 -

Further the cash in transit for Rs 86,832/- was also not found in receipt & payment

account. The above discrepancies need to be rectified.

(Para No 10 of AR of MC Samalkot, East Godavari)

172

1.3 MUNICIPAL COUNCIL, SAMALKOT, EAST GODAVARI DIST - CASH ON HAND, TRANSIT AND CHEQUES ON HAND NOT TALLIED WITH CONCERNED REGISTERS– NEEDS RECONCILIATION.

During the course of audit on the accounts of Samalkot ULB for the year 2010-11 it was observed that cash on hand in the trail balance was shown as Rs.11,53,064/- but in the Chitta of 001 and 002 accounts it was shown as Rs. 4,29,390 i.e with a difference of Rs. 7,23,674.00 which needs to be reconciled. In the double entry accounts cash in transit was shown as Rs. 86,832 but this amount was not mentioned in the cash book and other registers of double entry system which needs to be rectified. Amount under Cheques on hand was shown in double entry as Rs.6,92,635/- but this figure was not tallied with that in cheque registers which needs to be corrected.

(Para No 14 of AR of MC Samalkota East Godavari)

1.4 MUNICIPAL COUNCIL, SAMALKOT, EAST GODAVARI DIST -

CAPITAL PROJECT FUND BANK BALANCES AS PER DEABAS,CASH BOOK AND TRIAL BALANCE NOT TALLIED- VARIATION OF Rs.7,85,500/- NEEDS RECTIFICATION.

During the course of audit it was observed that the bank balance of capital project fund as per DEABAS cash book was shown as Rs. 1,20,02,232.22, but in the trial balance under account code 450 as per schedule B-17 it was adopted as Rs. 1,12,16,732.22 i.e. with a difference of Rs. 7,85,500/-. which needs to be reconciled to have a true picture of accounts.

(Para No 15 of AR of MC Samalkot East Godavari)

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 have to 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 are incurring the expenditure in excess of the Grant-in-aid received. The fact of incurring of such excess expenditure is 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 get reimbursed from the grant sanctioning authorities explaining inevitable the circumstances under which the excess expenditure over and above the grant sanctioned.

37 such cases involving an amount of Rs.1.16 lakhs pointed out as detailed in

Statement No. 8(1).

173


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 53 cases involving an amount of Rs. 530.92 lakhs noticed in

audit is appended to the Report in Statement No. 8 (1).

3.1 MUNICIPAL COUNCIL, KORUTLA, KARIMNAGAR DIST. - EMD AMOUNT DIVERTED FOR CONTRACT LABOUR WAGES – IRREGULAR - Rs. 896477/-

As verified from the EMD cash book of Municipal Council, Korutla for the year 2010-11an amount of Rs.896477/- was drawn and paid towards the contract Labour wages which is contrary to the Govt. orders. The amount needs to be reimbursed from the concerned head.

(Para No 4 of AR of MC Korutla, Karimnagar) 3.2 MUNICIPAL COUNCIL, SADASIVPET, MEDAK DIST. - DIVERSION OF

A.C.D.P. FUNDS TO GENERAL FUND – IRREGULAR - Rs. 45,159/- As verified from the cash book of ACDP funds of Municipal Council, Sadasivpet for the year 2010-11, it was observed that an amount of Rs. 45,159/- was drawn and transferred to General fund of Municipal Council which is contrary to the Government Orders.

(Para No 49 of AR of MC, Sadashivpet, Medak)

174

3.3 MUNICIPAL COUNCIL, SRIKAKULAM - 12TH FINANCE FUNDS DIVERTED TO PURCHASE OF LAPTOP, FAX, LCD AND FOUR WHEELER- IRREGULAR - RS.11,56,395/-

As verified from the cashbook of Municipal Council, Srikakulam for the year 2010-11, an amount of Rs.11,56,395/- was drawn Vide Vr No: 268/Dt: 27-8-2010 from 12th finance funds towards purchase of laptop, fax, LCD and four wheelers and tractor which is irregular.

Sl. No.

Details Vr. No and date Amount Rs.

1 Purchase of laptop, fax. LCD and four wheeler

268/27.8.10 110000

2 Purchase of sigma international tractor. 333/16.10.10 1046395 Total 11,56,395

(Para No 33 of AR of MC Srikakulam)

4. NON-UTILISATION OF GRANTS BEFORE LAPSABLE DATE

The Government releases special grants to the Local bodies for implementing specific schemes. These grants are to be utilized for the purposes for which they are meant for duly following the guidelines issued / norms prescribed and such utilization should be within the date prescribed, otherwise, the grants will be lapsed, 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 38 such cases involving an amount of Rs.246.32 lakhs noticed is

appended to the Report as Statement No.8(1). 4.1 MUNICIPAL COUNCIL, AMADALAVALASA, SRIKAKULAM DIST. -

BALANCES AVAILABLE IN IN-OPERATIVE P.D.ACCOUNTS – NEITHER UTILISED NOR REMITTED TO GRANT RELEASING AUTHORITY- NEEDS EARLY ACTION: Rs.72,33,374/-

During the course of audit on the accounts of Amadalavalasa municipal council,

Srikakulam District for the year 2010-11, it is observed that the following P.D. Accounts were inoperative since long time as detailed in the annexure. But no action was taken to remit the left over balances under various schemes to state funds which is contrary to the provisions.

175

(In Rs.)

# Name of the Fund

Account Number

OB as on 01.04.2010

Receipt during the

Year Total

Expenditure during the

Year

CB as per Cash Book

as on 31.03.2011

1 Secondary Education 8448-102-04 159538.00 0.00 159538.00 0.00 159538.00

2 Elementary Education 8448-102-05 491444.00 0.00 491444.00 0.00 491444.00

3 Secondary & Elementary Education

11384006139 420416.00 0.00 420416.00 0.00 420416.00

4 DWCUA 11384010533 133023.62 4713.00 137736.62 0.00 137736.62 5 Thrift & Credit 11384010544 89193.27 1559.00 90752.27 0.00 90752.27

6 Community Structure 11384010577 84803.42 3004.00 87807.42 0.00 87807.42

7 A.C.D.P. 11384010601 81037.44 2871.00 83908.44 0.00 83908.44 8 N.S.D.P. 11384009924 899232.07 31858.00 931090.07 0.00 931090.07 9 P.F. 11384009855 7678.65 272.00 7950.65 0.00 7950.65 10 Elections 11384010395 1737.93 61.00 1798.93 0.00 1798.93

11 Rajeev Nagara Baata 11384010384 7095.34 251.00 7346.34 0.00 7346.34

12 I.L.C.S.Stage.II 11384009550 1508832.37 53455.00 1562287.37 0.00 1562287.37

13 School Buildings 11384010033 535833.94 1448508.00 1984341.94 185.00 1984156.94

14 E.Seva Kendram 11384009833 13214.66 468.00 13682.66 0.00 13682.66

15 B.S.Y 7640 12268.00 433.00 12701.00 50.00 12651.00 16 U.B.S.P. 190 54564.00 1937.00 56501.00 0.00 56501.00 17 U.B.S.P. 8988 237360.00 5574.00 242934.00 0.00 242934.00 18 U.B.S.P. 348 2916.90 103.00 3019.90 0.00 3019.90

19 Adv. Seasonal Conditions 390 14890.00 528.00 15418.00 0.00 15418.00

20 Pavala Vaddi 6054 5761.00 203.00 5964.00 50.00 5914.00 21 Janma Bhoomi 6495 464417.00 16370.00 480787.00 50.00 480737.00

22 Community Seva Kendram 7641 8402.00 296.00 8698.00 50.00 8648.00

23 Flood Damage Works 6094 258658.00 9117.00 267775.00 50.00 267725.00

24 Akshara Kranthi 12368 2215.75 52.00 2264.75 0.00 2264.75

25 NRY 8516 15475.00 363.00 15838.00 0.00 15838.00 26 A.C.D.P. 9225 9728.00 343.00 10071.00 50.00 10021.00 27 Infrastructure 11384011173 109379.67 3876.00 113255.67 0.00 113255.67 28 MEPMA 7360 17896.00 635.00 18531.00 0.00 18531.00

TOTAL 5647012.03 1586850.00 7233859.03 485.00 72,33,374.03 From the above tabular information, it is observed that an amount of Rs.72,33,374.03 was kept with the institution without utilization even a single pie except meeting bank charges during the year. As per the guidelines issued under various schemes, the entire amount/grant either should be utilized with reference to the specific

176

action plan or unspent balance should be remitted to the grant releasing authority as the case may be on or before the closure of the financial year so as to avoid locking of funds. But the same was not done in the instant case which is irregular.

(Para No 13 of AR of MC Amadalavalasa, Srikakulam)

4.2 MUNICIPAL COUNCIL, ADILABAD – GRANTS ADJUSTED TO MUNCIPAL FUNDS – NOT UTILISED – NEEDS ACTION - Rs.36427758.68

During the course of audit, it is noticed that, the following grants/funds were not utilized for the purpose for which, they are released. The utilization of grants/funds in the Municipal Council, Adilabad during the year 2010-11 is shown as detailed below.

Sl. No.

Name of the grants/funds

Opening Balance

Receipts Total Payments Closing

Balance 1 E-Seva 380785.17 13512.00 394297.17 0.00 394297.17 2 Widow Pension 74453.00 2627.00 77080.00 30.00 77050.00

3 Physically Handicapped Pension

9581.00 338.00 9919.00 30.00 9889.00

4 IDSMT 6067900.00 1259658.00 7327558.20 0.00 7327558.20 5 Janmabhoomi 11476.00 407.00 11883.00 0.00 11883.00 6 Office Building 3000144.00 106290.00 3106434.00 0.00 3106434.00

7 Development charges 1326587.00 1159660.00 2486247.00 0.00 2486247.00

8 APUSEP C1 component 3823.00 238.00 4061.00 0.00 4061.00

9 APUSEP C3 component 193957.00 4554.00 198511.00 0.00 198511.00

10 Regularization of Buildings 45836.72 1627.00 47463.72 0.00 47463.72

11 NSDP 11136.55 395.00 11531.55 0.00 11531.55 12 RWHS 817768.00 530413.00 1348181.00 0.00 1348181.00

13 Indiramma Samabharalu 11244.00 264.00 11508.00 84.00 11424.00

14 SJSRY (C.S) 42899.00 1522.00 44421.00 0.00 44421.00 15 SJSRY (S.E.) 511451.45 18149.00 529600.45 0.00 529600.45

16 SJSRY (DWAKRA) 48219.52 22421.00 70640.52 0.00 70640.52

17 SJSRY (TCS) 109682.52 14247.00 123929.52 0.00 123929.52

18 SJSRY (Revolving Fund)

60693.42 2154.00 62847.42 0.00 62847.42

19 Loan Fund 690.54 0.00 690.54 0.00 690.54

20 AP Transco (3rd Fin) 2879.59 102.00 2981.59 0.00 2981.59

21 BPS 5233581.00 7326461.00 12560042.00 0.00 12560042.00 22 Fish Market 0.00 500000.00 500000.00 0.00 500000.00

23 13th Finance Com. 0.00 5091000.00 5091000.00 0.00 5091000.00

24 Rajeev Awas Yojana 0.00 2407075.00 2407075.00 0.00 2407075.00

Total 17964788.48 18463114 36427902.68 144 36427758.68

177

It can be seen from the above, that no amount was spent from all the above funds and there is no receipt under most of the accounts except accrual of Interest. Keeping the amount idle without its utilization could not serve the purpose and the balance amount shall be refunded to the concerned authorities.

(Para No 6 of AR of MC Adilabad)

4.3 MUNICIPAL COUNCIL, BHEEMUNIPATNAM, VISAKHAPATNAM

DIST.- LOCKING UP OF FUNDS – NON UTILIZATION – NEED TO BE REFUNDED - Rs.40,50,921/

During the course of audit of Bheemunipatnam Municipal council, Visakhapatnam Dist for the year 2010-11, it is observed that 16 bank A/cs are not having any operations and no amount was drawn and utilized for the specified purpose. The scheme guidelines stipulate surrender of unspent amount to Government Account. Scrutiny of records reveal that huge amount of Rs 40,50,921/- remained unspent in the listed below accounts.

Sl. No. Name of Account CB As on 31-3-2011

Rs. 1 Non-Plan 641272 2 DPEP 38842 3 Retired Employees 728892 4 DWACRA 206097 5 LCS-II 389697 6 LCS-III 268590 7 ACDP 49714 8 JB 7897 9 Solid waste 33479

10 Slum Dev. 1011145 11 Town Planning 74097 12 Water supply 52832 13 Elections 2244 14 Contract labour 20048 15 Training 9192 16 Infrastructure 1679 17 Community structure 11800 18 USEP 503404

Total 4050921

Therefore steps may be taken for their refund/remittance to concerned head of accounts.

(Para 6(1) of AR of MC Bheemunipatnam, Visakhapatnam)

178

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 evitable circumstances under which the excess expenditure over and above the grant sanctioned.

A statement of such 4 cases of Mis-utilization of funds / grants involving Rs.2.54

lakhs pointed out in the relevant audit reports as detailed in Statement No. 8 (1)appended to this report.

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 Women& Child Welfare were earmarked and utilized properly for their welfare as envisaged in the respective Government orders.

23 objections have been raised under the category of Non-utilization of

Earmarked funds as detailed in Statement No. 8 (1) appended to this report. One such para is detailed below. 6.1 MUNICPAL COUNCIL, BHEEMUNIPATNAM, VISAKHAPATNAM DIST.

- NON UTILISATION OF EARMARKED FUNDS – IRREGULAR During the course of audit of Bheemunipatnam Municipal council, Visakhapatnam Dist for the year 2010-11, it is observed that in the following table the funds were earmarked for SCs, STs and Women and Child Welfare but not utilized for the welfare. (Rs.in lakhs)

Category As per the account allocation to be made

Budget Expenditure

15% SC 40.00 7.50 Nil 7.5%S.T 20.00 3.75 Nil

5% W&CW 14.00 2.50 Nil 40%Slum

Development 108.00 20.00 Nil

(Para No 3 of AR of MC Bheemunipatnam, Visakhapatnam)

179


On verification of Revenue collections in various Municipal Councils, it was observed that huge amounts were found pending realization for a longer periods and 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.

The provisions laid down under 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 expiry 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 authorities have 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.3238.72 lakhs found to be left uncollected by the Municipal

Authorities towards various Taxes and Non-taxes etc., raised in 371 audit paras as detailed in the Statement No. 8 (1)are annexed to this report. Few such cases are given below. 7.1 MUNICIPAL COUNCIL, BHEEMUNIPATNAM, VISAKHAPATNAM

DIST. – RENTS OF MUNICIPAL SHOPPING COMPLEX NOT COLLECTED – NEEDS ACTION - Rs.10,50,695/-

As verified from the miscellaneous demand register of Municipal Shopping

Complex of Bheemunipatnam Municipal council for the year 2010-11, it was noticed that non-collection and non-timely revision of stipulated rents from time to time by the Executive Authority lead to huge amount of Rs.10,50,695/- pending realization from the shop keepers. Early action may be taken to collect the Arrears before they become barred by limitation of time and made good to the Municipal Funds,

(Para No 4(3) of AR of MC Bheemunipatnam , Visakhapatnam)

180

7.2 MUNICIPAL COUNCIL, AMADALAVALASA, NON-COLLECTION OF TAXES AND NON-TAXES - HUGE AMOUNTS PENDING - NEEDS IMMEDIATE ACTION: Rs.1,16,38,405.00

On verification of demand registers of taxes and non-taxes for both current and arrears of Municipal Council, Amadalavalasa for the year 2010-11 it was noticed that an amount of Rs.1,16,38,405/- is outstanding at the close of audit. The demand fixed, collections made and the balances left over for the year 2010-11 are detailed below.

Sl. No. Item of Receipt Details Demand Rs Collection

Rs Balance Rs % of collection

Current 7175216 4878000 3128229 68% 1 Property Tax Arrear 9451800 2320500 7131292 24.5% Current 1043070 634900 408170 61% 2 Water Tax Arrear 969217 374120 595097 38.6% Current 803808 803808 0 100%

3 Daily Market Arrear 548438 0 548438 NIL Current 291000 291000 0 100% 4 Chintada Sandy Arrear 20001 20000 1 100% Current 7200 7200 0 100% 5 Slaughter House Arrear 2000 0 2000 NIL Current 470544 362924 107620 77% 6 Shop room rents Arrear 447446 72955 374491 16% Current 165600 124200 41400 75% 7 IDSMT Roof rent Arrear 99697 0 99697 NIL Current 153235 153235 0 100% 8 Encroachment Fee Arrear 51530 18755 32775 36% Current 10109673 7255067 2854606 72% Total Arrear 11590129 2806330 8783799 24%

Grand Total 21699802 10061397 11638405 46.36%

When comparison was made between the collection of taxes and non taxes, progress of collection of non taxes like leased amounts of daily market, Chintada sandy, Slaughter house and IDSMT Roof rent etc., is very poor and follow up action taken against the defaulters is also not forth coming in audit. The non collection of taxes and non taxes leads to deterioration in the financial position of the institution and reduces the scope of developmental activities. Action would need to be taken for early collection of above dues.

(Para No 15 of AR MC Amadalavalasa, Srikakulam)

7.3 MUNICIPAL COUNCIL, YEMMIGANUR, KURNOOL DIST. – SHOP ROOM RENTS NOT COLLECTD - HUGE AMOUNT OF SHOP RENTS FALLS INTO ARREARS – NEEDS ACTION - Rs.3394134/-

As verified from the Miscellaneous demand register of Municipal Council, Yemmiganur, Kurnool Dist. for the year 2010-11 out of the total arrear demand of shop rents of Rs.1836470/-, an amount of Rs.7813/- was collected leaving a balance of Rs.1757757/- pending collection. Out of the total current demand of shop rents of Rs.6353953/- only an amount of Rs.4717573/- was collected leaving a balance of Rs.1636377/- as an outstanding amount of shop rents. The total outstanding arrear and current amount of Rs.3394134/- would need to be realized immediately.

(Para No 7 of AR of MC Yemmiganur Kurnool)

181

7.4 MUNICIPAL COUNCIL, SANGAREDDY, MEDAK DIST. - AUCTION OF THAI BAZAR AND SLAUGHTER HOUSE – NON COLLECTION OF DUES – LOSS TO THE MUNICIPAL FUNDS – Rs.1,14,100/-

As verified from the auction files and register, it was noticed that the Thai Bazar

Auction for the year 2010-11 was conducted by the Municipal authorities on 17.03.2010 and the same was allotted to Sri Ch. Vittal Rao S/o Jogoji, H.No.3-2-71 for Rs.1,56,000/- in the Auction and the Slaughter House was allotted to Sri Ch. Prakash S/o Balaji for Rs.10,100/- for the period from April, 2010 to March, 2011. Out of that Sri Ch. Vittal Rao has remitted only Rs.50,000/- and Sri Ch. Prakash has remitted only Rs.2,000/- and the balance amount of Rs.1,06,000 and Rs.8,100 respectively was not remitted to Municipal funds till the date of close of audit. Even the records do not reveal about the correspondence made with the persons for remitting the auction amount during the period of allotment. The Executive Authority did not take any steps to recover the balance amount from the lessees which resulted in causing loss to the Municipal Funds.

(Para No 13 of AR of MC Sangareddy Medak)


It was observed during the course of audit that the temporary advances paid for

specific purposes were left unadjusted for a long time though they have to get an adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the A.P. Financial Code. Non-settlement of advances leads to misuse of advances to avoid refund of unspent amounts. Several objections were raised on such outstanding advances in the relevant audit reports pointing out failure of the executive authorities to take necessary action to get these advances adjusted.

A statement showing such cases noticed is appended to the Report Statement No.8 (1) containing 131 objections amounting to Rs.286.43 lakhs. A few such cases are given below.

8.1 MUNICIPAL COUNCIL, ONGOLE - CYCLONE ADVANCES –

ADVANCES NOT ADJUSTED - NEEDS ACTION - Rs. 4,73,360/-

As verified from the Advances Recoverable Register of Municipal Council, Ongole for the year 2010-11, it was noticed that an amount of Rs.4,73,360/. was given as advance to the staff of this municipal council towards works and for other purposes relating to Laila Cyclone. Some of the staff members were transferred to other municipalities, remaining staff members are working in this municipal council. But no amount was adjusted to the municipal funds so far. According to the provisions of the A.P.F.C. Vol.I the advances paid shall have to be adjusted within one month from the date of drawal. Further as per the provisions the officials shall not be paid further advances unless previous advances get adjusted through submission of adjustment bills or vouchers. In the absence of adjustments of amounts, it is not known whether the purpose of drawl of advance was served or not.

182

# Vr.No./ Date

Name of the Individual & Designation Nature of Advance

Amount out standing as on 31-3-11

1 20-5-2010 Sri T.L.Madhusudhana Rao, M.R.I.,

For the purpose of Laila Cyclone sanitation, lighting and water supply facilities

10000.00

2 20-5-2010 Sri L.Vijaya Bhaskar Babu -do- 1000.00 3 20-5-2010 Sri Sudhakar, A.E., -do- 10000.00 4 20-5-2010 Sri S.Srinivasulu, M.R.I. -do- 10000.00 5 20-5-2010 Sri K.L.N.Sankar, M.R.I. -do- 10000.00 6 20-5-2010 Sri V.Thansen, M.R.I. -do- 10000.00 7 20-5-2010 Sri A.Chinnabbayi, A.E. -do- 10000.00 8 20-5-2010 Sri Ch.Ramesh Babu,

A.E.E. -do- 10000.00

9 20-5-2010 Sri K.Narasimha Rao, T.P.S.

-do- 10000.00

10 20-5-2010 Sri K.Venkateswarlu, T.P.S. -do- 10000.00 11 20-5-2010 Sri S.Rambabu, T.P.S. -do- 10000.00 12 20-5-2010 Sri K.Venkateswarlu, T.P.S. -do- 30000.00 13 20-5-2010 Sri G.Pandu Ranga Rao,

M.E., Advance for the purpose of water supply pipe line at the time of Laila Cyclone

10000.00

14 26-5-2010 Sri M.S.Madhukiran, Sr. Asst.

For the purpose of Laila Cyclone

200000.00

15 25-2-2011 The A.P.S.A.G.R.O. Industries Dev. Corporation Ltd., Hyderabad

For leveling of garbage at Urachevuru

132360.00

Total 473360.00

(Para No.8 of AR of MC Ongole, Prakasham)

8.2 MUNICIPAL COUNCIL, BHEEMUNIPATNAM, VISAKHAPATNAM DIST. – ADVANCES PAID – NOT ADJUSTED – IRREGULAR - Rs.174450/-

An amount of Rs.1,74,450/- was drawn and paid as advance to the individuals along with the purpose noted against each is detailed below in Municipal Council, Bheemunipatnam for the year 2010-11 and they were not adjusted.

Vr. No. Date Name of the

Employee Nature of

the Advance Amount

Rs. Fund

274 22-09-10 S. Bramhanandam, RI 150 years Celebration 20000.00 General

1 06-04-10 Sridhar, AE Purchase of mike sets 44450.00 12th

Finance

2 31-12-10 Sridhar, AE Advance for works 110000.00

parks and play grounds

Total 174450.00

183

As per the Manual of Role and Responsibilities of various functionaries Urban Local Bodies in Andhra Pradesh issued by MA & UD, Government of Andhra Pradesh (Dec. 2009), the recoveries in respect of temporary advances sanctioned to employees for various purposes shall be effected within three months of their sanction. The necessary action shall be taken to recover / adjustment of the advances immediately.

(Para 5(1) of AR of MC Bheemunipatnam, Visakhapatnam)

9. VIOLATION OF RULES

It was noticed in audit that there are instances of that are violating the Government Rules, instructions for incurring the expenditure from the funds of Municipalities either due to negligence or ignorance. Certain times, the funds of the Municipalities were utilized for the 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.

1403 audit objections involving an amount of Rs.1,299.39 lakhs were raised in

the relevant Audit Reports as shown in Statement No. 8(1) annexed to the Report. Few such cases are given below.

9.1 MUNICIPAL COUNCIL, NIRMAL, ADILABAD DIST. - PUBLICATION

CHARGES PAID – ADVERTISEMENT NOT ROUTED THROUGH INFORMATION AND PUBLIC RELATIONS DEPARTMENT - IRREGULAR - Rs.1,79,766/-.

The 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 of MC Nirmal, Adilabad)

9.2 MUNICIPAL COUNCIL, SRIKAKULAM - SPECIAL (SPECIFIC)

GRANTS RELEASED FOR SPECIFIC PURPOSES - TIED GRANTS- LAPSABLE - KEPT WITH NATIONALIZED BANK- WITH OUT UTILISATION- IRREGULAR. - Rs. 6,08,73,072/-

During the course of audit on the accounts of Municipal Council, Srikakulam for

the year 2010-11, on verification of register of deposits, the governments grants which are released by Government for specific purposes are deposited in nationalized banks and other than nationalized banks as detailed below with out utilizing for specified purposes. The reason for non-utilization of the said grants, and keeping with long-term deposits is not forthcoming.

184

# Details of grants Name of the bank Amount Rs. 1 N.S.D.P Syndicate bank 1721520 2 U.B.S Andhra bank women’s branch Srikakulam 1062649 3 Community latrines ING Vysya Bank 694876 4 USEP(SJSRY) Andhra bank women’s 1056215 5 SJSRY(training) 1124564 6 SJSRY (thrift credit) APGVB, srikakulam 1113248 7 12th Finance APGVB, gujarathipeta 2000000 8 BPS / CRS Indian Bank 5000000 9 BPS / CRS APGVB, srikakulam 2000000

10 BPS / CRS UBI, srikakulam 2000000 11 BPS / CRS AB R&B 1000000 12 BPS / CRS Andhra bank women’s branch 2000000 13 BPS / CRS APGVB, HBC 2000000 14 BPS / CRS APGVB, Arasavelli 2000000 15 BPS / CRS APGVB, gujarathipeta 2000000 16 National plan grant SBI, ADB 2000000 17 New plan scheme APGVB, HB Colony 2000000 18 12th finance APGVB, Balaga 1000000 19 SJSRY APGVB, HB Colony 1900000 20 12th finance UBI, Srikakulam 2000000 21 BPS / CRS APGVB, New Colony 2700000 22 Basic falilifive of shops Indian Bank 1000000 23 New plan scheme Co-Operative bank 3000000 24 New plan scheme APGVB, Arasavelli 2000000 25 13th finance OBC 1000000 26 13th finance APGVB, Srikakulam 1000000 27 13th finance OBC Srikakulam 1000000 28 13th finance Axis bank 1000000 29 13th finance HDFC srikakulam 3000000 30 13th finance Co-Operative bank 1000000 31 13th finance APGVB, HB colony 1000000 32 13th finance APGVB, Arasavelli 1000000 33 13th finance Vijaya1 Bank 500000 34 13th finance APGVB, new colony 1000000 35 13th finance U co bank colony 1000000 36 13th finance APGVB, HB colony 1000000 37 13th finance APGVB, Arasavelli 1000000 38 13th finance SBI/Balaga 1000000 39 13th finance Andhra bank women’s branch 1000000

Total 6,08,73,072

The original bonds of fixed deposits along with pass books were also not produced by the executive authority to audit for verification. Hence, the action would need to be taken in this regard for production. In the absence of the above, the correctness of the amounts deposited in respective banks could not be verified therefore there is a possibility to cause of loss to said amounts, the executive authority concerned should be held responsible. The non-utilization of the grants and keeping with long-term deposits is irregular.

(Para No 50 of AR of MC Srikakulam)

185

9.3 MUNICIPAL COUNCIL, MANDAPETA, EAST GODAVARI DIST. - AMOUNT PAID IN CASH TO REGIONAL JOINT DIRECTOR OF MUNICIPAL ADMINISTRATION, RAJAHMUNDRY – ACKNOWLEDGEMENT OR UTILISATION FOR THE AMOUNT NOT OBTAINED – IRREGULAR- Rs.75,000/-

As verified from the Voucher No. 6/20.09.2010 of Municipal Council, Mandapeta for the year 2010-11, it was noticed that an amount of Rs.75,000/- was drawn and paid in cash to the office of the Regional Joint Director of Municipal Administration, Rajahmundry for providing Multiple Facilities in the said office. Making payment through cash is irregular and either the receipt or utilization certificate for the same from the R.J.D office, Rajahmundry was not obtained till the closure of audit. In the absence of the same it is not known whether the amount has been spent for the intended purpose or not.

(Para No 43 of AR of MC Mandapeta, East Godavari)

9.4 MUNICIPAL COUNCIL, MACHERLA, GUNTUR DIST. - PROPERTY TAX COLLECTIONS – CREDITED TO MUNICIPAL FUNDS BY WAY OF CASH INSTEAD OF CHEQUES – IRREGULAR

Property tax collected through e–seva is being credited to Municipal funds by way of Cash. The property tax collections made through e-Seva have to be received from the Administrative Officer, e-Seva Guntur through Cheques. But during 2009-10 property tax collected through e-seva were noted as received in shape of cash and taken to chitta. During the course of audit that a separate account was opened in Axis Bank, Guntur, amounts received from e-Seva were lodged in that account initially and subsequently drawn and taken to municipal council funds in the shape of cash. But, the details of account opened in Axis Bank, Guntur were not produced to audit for verification. Remitting of property tax collected by e seva by way of cash to municipal funds and opening of separate bank account in Guntur was highly irregular. Immediate action may be taken to maintain the register of D.Ds and Cheques register and remittance of property tax collections directly to Municipal funds.

(Para No 9 of AR of MC Macherla Guntur)

10. NON-REMITTANCE OF DEDUCTIONS / RECOVERIES FROM VOUCHERS / PAY BILLS / CONTINGENT BILLS

It was noticed during the 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 Bills 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

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258 audit objections involving an amount of Rs. 1022.25 lakhs were raised in the relevant Audit Reports as shown in Statement No. 8 (1) annexed to the Report. Few such cases are given below.

10.1 MUNICIPAL COUNCIL, GUNTAKAL, ANANTAPUR DIST. -

DEDUCTIONS MADE FROM THE WORK BILLS – NOT REMITTED - Rs.3,97,050/-

The following deductions were made from the work bills during the year in Municipal Council, Guntakal for the year 2010-11 As per GO.Ms.No.217 industries & commerce (M-I) Dept Dt.09-09-2004, GO.Ms.No.11 fund (W&P) Dept dt.29-07-2005 and GO.Ms.No.159 R&B (R-III) Dept dt. 30-10-2004 deductions towards seigniorage fees, VAT, IT and CMRF & NAC respectively were made at Rs.3,97,050/- from the work bills pertaining to the works executed during the year 2010-11 as detailed below, but the same were not remitted to Heads of accounts concerned. The same would need to be remitted to the respective heads of accounts early..

Solid I.T VAT LWC NAC SC CMRF Q.C Total

Waste Management

0 0 14996 2388 29990 1989 31421 80784

Waste supply 10940 14777 19340 2063 2547 3084 0 52751 CSF 001 44688 79556 18586 2119 40037 7192 0 192178 GF.002 24272 33586 7925 377 4611 566 0 71337 Total 79900 127919 60847 6947 77185 12831 31421 397050

(Para No.12.2 of AR of MC Guntakal, Anantapuram)

10.2 MUNCIPAL COUNCIL, VENKATAGIRI, NELLORE DIST - LIBRARY

CESS NOT REMITTED TO THE ZILLA GRANDHALAYA SAMSTHA, NELLORE: Rs.5,55,460/-

As per the provisions of the section 20 of AP Public Libraries Act 1960 read with rule 18(3) of APPL Rules, 1961 and Govt. memo.no.773/H2/81-5/MA, dated 16-3-1982 read with GO Ms.No.1217 Education, dated 28-10-1981, all the municipalities/municipal corporations have to collect and remit library cess at the rate of 0.08 paise on each rupee of property tax collected by them. Commissioner and Director, Municipal Administration ordered in the circular letter dated 20-11-1987 that all the commissioners of municipalities/ municipal corporations should remit library cess at 8 paise on each rupee of the property tax regularly to the ZGS. Government of AP instructed in GO Ms. No.319, education, dated 28-10-1994 all the local authorities to prepare the DCB statement every year and to send to the Director of Public Libraries, AP, Hyderabad and also to remit the library cess every year within one month from the date of collection of property tax. An Amount of Rs.555460.00 has to be remitted to Z.G.S., Nellore basing on total collection of Property Tax amounting to Rs.6943247.00.

(Para No 27 of AR of MC Venkatagiri SPSR Nellore)

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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.

A Consolidated Statement No. 8(2) of showing audit objections on

Nonproduction of Records is appended to the Report from which it could be seen that an amount of Rs.8022.11 lakhs was pointed out in 2009 audit paras. Few such cases are given below. 11.1 MUNICIPAL COUNCIL, GUNTAKAL, ANANTAPUR DIST -

EXECUTION OF WORKS – NON-PRODUCTION OF M.BOOKS – Rs.10,92,570/-

During the course of audit, the measurement books pertaining to works executed as detailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected measurement books as prescribed in the paras 290 to 292 of A.P.P.W.D Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. In absence of the connected measurement books as prescribed above, detailed designs and estimates as prescribed vide Para No.173 of A.P. PWD Code and completion report as specified vide Article 181 of A.P. Financial Code Vol.l as Para 216 to 218 of A.P. P.W.D. code, the genuineness of the expenditure incurred and payment made could not be verified and admitted in audit. Hence, the same would need to be produced for audit verification.

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Voucher No & Date

Particulars Amount

1/10.8.2010 Laying of CC road D.No.17/956-A to 17/788 & 17/845-C to 17/869 near madina masjid in 13th ward

1,04,494

2/10.8.2010 CC road from Elec pole No.ALR19 to ACF/19-5 in 35th ward

1,04,980

5/10.8.2010 CC road from D.No.6/204 near Dar-ul-ulum dargha to west side in 35th ward

1,05,485

6/11.8.2010 CC road from D.No.17/1214 to 14/33 and providing water supply in 17th ward

1,04,870

13/21.1.2011 Maintenance of Existing road from IOC depot railway gate to Diddikottala HPC Depot

79,300

16/21.1.2011 CC Drain from 20/282 to 20/283 in 27th ward 72,080 17/21.1.2011 Construction of 10 seated community toilets in Nagappa

colony in 9th ward 1,43,693

18/25.2.2011 Laying of CC drain, raising of existing drain and cover slabs at Guntabhavi railway bridge.

97,129

20/25.2.2011 Construction of 10seated community toilets at Govt. Hospital.

1,12,825

21/25.2.2011 Maintenance and repairs to the class rooms at Meerza Gandhi school.

81,683

22/10.3.2011 Construction of 10 seated community toilets with septic tank at Benchikottala in 33rd ward.

86,031

Total 10,92,570

(Para No 13.9 of AR of MC Guntakal, Anantapuram) 11.2 MUNICIPAL COUNCIL, SRIKAKULAM- BPS & LRS AMOUNT- PAID

TO SUPERINTENDENT OF POLICE, SRIKAKULAM DIST- RECORDS NOT PRODUCED - Rs.2,84,700/-

During the Course of audit of Municipal Council Srikakulam District for the year 2010-11, it is noticed that an amount of Rs.2,84,700/- was paid to the Superintendent of Police, Srikakulam Dist towards improvement of Traffic system . But connected file and authority for payment was not produced at the time of Audit. Due to non-production of the same the correctness of payment towards improvement of traffic system was not certified in Audit and it is also noticed that the Utilisation Certificate from the Police Department was also not obtained. Hence the said amount of Rs.2,84,700/- was not certified in Audit and held under objection.

(Para No 16 (a) of AR of MC Srikakulam)

11.3 MUNICIPAL COUNCIL, ONGOLE - SUPPLY OF DRINKING WATER - HUGE AMOUNTS SPENT - CONNECTED RECORD NOT PRODUCED - Rs.30,68,901/-

During the year under audit an amount of Rs.30,68,901/- was drawn from various accounts, as detailed below, and spent for the purpose of supplying drinking water. But the file, duly showing the tenders called for, minutes of the council, the rate fixed, log

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book, the areas identified for supply of water etc., were not made available to audit for verification. Further the authority basing on which the amount drawn from scheme funds instead of General funds, was not pointed out to audit. In view of the above defects, the expenditure is held under objection.

Voucher No & Date

Name of the contractor to whom amount paid

Name of the fund from which

expenditure incurred

Amount (in Rs)

15/15-5-10 Sri M.Sudhakar Babu, Contractor, Ongole. (36th ward) Tap Donation Fund 100647

150/10-9-2000

Sri M.Sudhakar Babu, Contractor, Ongole. (36th ward) 001 914570

392/2-12-2010

Sri Ch.Varaprasada Rao, Contractor, Ongole (36th ward) 001 805734

517/26-3-11 -do- 001 738257 561/31-3-11 -do- 001 509693

Total 3068901

(Para No.33 of AR of MC Ongole, Prakasham) 11.4 MUNICIPAL COUNCIL, KAVALI, NELLORE DIST - EXECUTION OF

WORKS CONNECTED ESTIMATES AGREEMENTS AND M.BOOKS- NOT PRODUCED - Rs.3,70,09,999/-

During the course of audit of the paid vouchers, estimates agreements and

connected measurement books pertaining to different works executed viz., Building construction, IHSDP (Phase–I&II), SFC, Rajiv Nagara batta schemes, Solid waste Management, Roads and Drains etc., were not made available for verification in audit to certify the genuineness of expenditure incurred. The connected measurement books as prescribed in the Para Nos. 290 to 298 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial Code Volume – 1 would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. In absence of the connected measurement books as prescribed, detailed designs and estimates as prescribed vide Para no..173 of A.P. P.W.O. code and completion report as specified vide Articles 181 of A.P. Financial Code Vol- 1 as per Para 216-218 of A.P.P.W.D. code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit.

(Para No.81 of AR of MC Kavali, SPSR Nellore)

12. MIS-APPROPRIATIONS

There are cases of Misappropriation of money noticed in audit were pointed out in the Audit Reports.

A consolidated statement of Mis-appropriations noticed in audit is annexed vide

Statement No.8 (2). A total number of 60 objections involving an amount of Rs.210.10 lakhs were pointed out in the relevant Audit Reports. Few such cases are given below.

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12.1 MUNICIPAL COUNCIL, RAJAMPET, KADAPA DISTRICT– PROPERTY TAX AND WATER TAX COLLECTED – MISAPPROPRIATED - Rs.64,58,027/-

As verified from remittances of property tax and water tax as per cash book, pass book and chitta from 01-04-2007 onwards an amount of Rs.4,47,48,613/- and Rs.1,57,18,004/- was collected towards house tax and water tax respectively in Rajampet Municipal Council. Out of the collected amount an amount of Rs.4,11,03,948/- towards house tax and an amount of Rs.1,29,04,642/- towards water tax was remitted to the General Fund leaving a balance of Rs.64,58,027/- (Rs.36,44,665/- of House tax + Rs.28,13,362/- of Water Tax) was misappropriated which needs to be recovered under the provisions contained in the A.P Revenue Recoveries Act read with the provisions under Art 300(1), 300(b), 4(a) and 4(b) of A.P. Financial Code and G.O.Ms.No 25, GA (Ser-c) Department dt:3-2-2004.

(Para No 73of AR of MC, Rajampet of Kadapa) 12.2 MUNICIPAL COUNCIL, NIDADAVOLE, WEST GODAVARI DISTRICT-

AMOUNTS COLLECTED BUT NOT REMITTED TO TREASURY- MISAPPROPRIATED- NEEDS TO BE RECOVERED BESIDES TAKING PENAL ACTION- Rs. 16,30,536/-

As verified from the Chitta (Xerox copy as the original was seized) of Municipal Council, Nidadavole for the year 2010-11, it was observed that amounts collected under Property tax, Vacant Land tax, BPS, TAP donations and MPD Charges etc. were shown as remitted through challans but the said amounts to a tune of Rs.16,30,536/- were not remitted in to Treasury / Bank.

Non remittance of the collected amounts into Bank account of Municipality is a confirmed case of misappropriation which warrants immediate action for recovery besides taking criminal action against those who misappropriated public funds.

Sl. No.

Purpose Amount shown as remitted through Challan (Rs.)

Para No.

1 PT & Vacant Land Tax 1314874 76 1 BPS 86090 77 2 Tap donations 155345 78 3 Master Plan Development Charges 74227 79 Total 1630536

(Para No 76 to 79 of AR of MC Nidadavole West Godavari)

12.3 MUNICIPAL COUNCIL, SANGAREDDY, MEDAK DISTRICT- HUGE AMOUNTS DRAWN THROUGH SELF CHEQUES- EXPENDITURE DETAILS NOT FURNISHED - MISAPPROPRIATION OF FUNDS – Rs.15,42,000/- + Rs.16,26,974/- = Rs.31,68,974/-

An amount of Rs.15,42,000/- was drawn through self cheque bearing No.001090

dt.28.04.2010 in Vr.No.27/28.04.2010 for adjustment to TFC Grant. The Expenditure was booked in Treasury on 15-06-2010 but the amount was not adjusted in TFC Grant. Drawl of funds through self cheque and not adjustment in TFC grant gives ample evidence for misappropriation of amount.

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Further, as verified from the Rain Water Harvesting Charges Fund Cash Book of Sangareddy Municipal Council, it was noticed that in the following vouchers and cheques huge amounts were drawn through self cheques.

# Voucher No & Date Details Amount Cheque No & Date Drawn in

favour of 1 16/1 dt.2.7.2010 4,14,974 698911/2.7.2010 2 16/2 dt,2.7.2010 2,55,000 698912/2.7.2010 3 107/31.3.2011 5,00,000 868045/31.3.2011 4 108/31.3.2011

For various purposes

4,57,000 868046/31.3.2011

Smt. K. Latha, Accountant

TOTAL 16,26,974 The details of expenditure and concerned vouchers/bills were not furnished to audit. The matter has been brought to the notice of the executive authority and asked to produce the paid vouchers vide Half Margin Lr.Spl.No.6/2012-13, dt.28.09.2012 and Half Margin Lr.Spl.No.8/2012-13, dt.19.10.2012. But they neither produced the vouchers and sub-vouchers nor furnished replies to the half margin letter.

Hence it is construed that the amount was misappropriated and need to be recovered from the person or persons responsible with penal interest besides taking disciplinary action under CCA Rules.

(Para 51 &56 of AR of MC Sangareddy Medak)

12.4 MUNICIPAL COUNCIL, SANGAREDDY, MEDAK DISTRICT - CHITTA

AMOUNT SHORT REMITTED – LOSS NEEDS RECOVERY Rs. 22,797/- On verification of remittance particulars with reference to chitta, it is noticed that an amount of Rs.22,797/- was short remitted as detailed below.

STATEMENT - III Chitta Amounts Short Remitted

# Chitta Page No. Date

Total Amount As per Chitta

(Rs.)

Amount Remitted

(Rs.)

Amount Short Remitted

(Rs.) 1 167 14.2.2011 50,187 16,628 33,559 2 167 15.2.2011 55,670 53,792 1,878 3 169 1.3.2011 83,737 52,107 31,630 4 174 11.3.2011 85,776 74,003 11,773 5 175 15.3.2011 2,16,945 1,74,543 42,402 6 176 16.3.2011 57,189 8,346 48,843 7 177 17.3.2011 1,32,574 1,21,981 10,586 8 179 21.3.2011 59,206 9,731 49,475 9 180 22.3.2011 2,64,865 1,77,748 87,117

10 191 31.3.2011 1,45,881 1,43,862 2,000 11 9 10.6.2011 22,293 25,399 894 12 10 14.6.2011 43,083 30,000 13,083 13 10 15.6.2011 62,366 2,610 59,756 14 11 16.6.2011 36,256 35,652 604 15 12 21.6.2011 96,750 95,750 1,000

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16 16 4.7.2011 1,00,073 74,627 25,446 17 17 7.7.2011 9,420 7,000 2,420 18 45 26.8.2011 37,567 7,567 30,000

Total Short Remittances (in Rs) 4,52,506

Further the amount remitted by Sri Pandu, B.C. (Irsalnama Register Page No.16 dt.8.6.2011) for Rs.27,625 and an amount of Rs.19,050 remitted by Sri P. Praveen Kumar, B.C. vide Irsalnama Register No.5 dt.14.7.2011 total amount of Rs.46,675/- also not accounted for to the M.C. funds. Thus an amount of Rs.4,99,181/- (Rs.4,52,506 + 46,675) misappropriated by the bill collectors concerned.

The matter was also brought to the notice of the Municipal Commissioner through

half Margin letter No. Spl.No.8/2012-13, dt.8.10.2012. After pointing out in audit the following amount has been remitted to Rain water Harvesting account No. 52127793901, SBH Sangareddy, General Fund and P.D. account and produced the remittance particulars. Some amount remitted before commencement of audit and the balance amount after detection of irregularity at the time of audit as detailed below leaving a balance of Rs.22,797/-

Total Chitta Misappropriation : Rs. 4,52,506/- Irsalnama Register amount not : Rs. 46,675/- taken to chitta -------------------- Total misappropriation : Rs. 4,99,181/- LESS:

i) Amount remitted on 21.3.2012 ; Rs. .2,10,500/- In RWH A/c 52127193901 SBH SRD ii) Excess remittance in Chitta vide Page No.150/20.1.11 for Rs.8745 & Page No.169/1.3.2011for Rs.8600 : Rs. 17,345/- iii) Remittance vide Challan No.23059 dt,15.10.2012 in P.D. Account : Rs.1,35,001/- iv) Remitted vide Ch.No.11059/ 15.6.2011in G.F. 11,500 And L. Cess 1,623 : Rs. 13,083/- v) Remitted vide Challan No.46534 dt.21.3.2011 in P.D. account : Rs. 23,955/- vi)Remitted vide Challan No.33904 : Rs. 76,500/- dt. 28.12.2012 in PD II A/c ------------------- Total remitted : Rs.4,76,384/- Balance to be remitted : Rs. 22,797/- ------------------- It is construed that the amount of Rs.22,797/- has been misappropriated.

Immediate action needs to be taken against the defaulter according to G.O.Ms.No.25 GAD (Ser.C) Dept. dt.3.2.2004 read with Article 5,273,294,300,301 and 302 of A.P. Financial Code while recovering the balance amount along with the penal interest.

(Para No 50 of AR of MC Sangareddy Medak)

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12.5 MUNICIPAL COUNCIL, ZAHEERABAD, MEDAK DISTRICT - MISAPPROPRIATION- COLLECTED AMOUNT NEIRTHER TAKEN INTO CHITTA NOR INTO CASH BOOK - LOSS - NEEDS RECOVERY- Rs.6,12,697/- + Rs. 14,47,206/- = Rs.20,59,903/-

On cross checking of the chitta with Irsalnamas of Municipal Council,

Zaheerabad, Medak, it is noticed that the following amounts collected were neither taken into chitta nor into cash book.

Sl. No.

Name of the B.C. who collected the amount IR No. & Date Amount

(Rs.) 1 Mfd. Ghouse 16/1.1.11 28273 2 Yadaiah 43/2-19.12.10 56368 3 -do- 51/2 10351 4 -do- 59/2 13790 5 -do- 61/2 15535 6 -do- 68/13.3.11 27521 7 -do- 68/13.3.11 1900 8 -do- 71/16.3.11 10100 9 -do- 71/16.3.11 15443 10 -do- 76/24.3.11 1610 11 -do- 80/30.3.11 15000 12 -do- 82/31.3.11 119601 13 -do- 81/31.3.11 25800 14 -do- 84/31.3.11 9000 15 Sreeder, TPBO 14/31.3.11 15600 16 -do- 15/31.3.11 46155 17 Laxman PHW 2/21.7.10 8896 18 -do- 3/16.09.10 12482 19 -do- 4/12.10.10 15350 20 Ravoof, Jr.Asst 4/11.8.10 53964 21 -do- 5/12.8.10. 10484 22 -do- 6/12.8.10 64523 23 -do- 15/not mentioned 3800 24 -do- 16/not mentioned 1660 25 -do- 17/not mentioned 4310 26 -do- 18/not mentioned 1700 27 -do- 19/not mentioned 2750 28 -do- 20/not mentioned 4050 29 -do- 9/20.11.10/6301-6304 16701 Total 612697

Sri P. Venkat Rao, Accountant has signed in the IRs of the Bill collectors in token of having received the amounts from the concerned bill collectors. The amount of

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Rs.6,12,697/- was thus misappropriated by the accountant. Immediate action would need to be taken to recover the said amount from Sri Venkat Rao and remit the same to the Municipal Funds besides initiating disciplinary action. Further, on verification of the Cash Book to check the proper realization of the collected revenue with reference to chitta, it was noticed that the following amounts were neither taken into cash book nor remitted directly to Municipal funds.

Sl. No.

Chitta P.No. & Date Receipt Book No.s from to Amount

(Rs.) Person held responsible

1 81/24.6.10 6663 - 6668 14957 Venkat Rao , Accountant

2 82/31.3.10 IR No. 38 of K.Srinivas,B.C 27137 -do- 3 82/31.3.10 IR No. 124,126,128 of Yadaiah B.C 69213 -do- 4 89/13.10.10 IR No. 61 of sreedhar TPBO 47746 -do- 5 93/9.11.10 IR No. 23 -26 49036 -do- 6 96/10.1.11 IR No. 37 & 38 of Yadaiah 32177 -do- 7 96/29.12.10 22062 28273 -do- 8 83/3.8.10 77706 5612 -do- 9 84/19.8.10 IR - 2 to 5 of K. Samson 30364 -do-

10 85/2.9.10 Md. Ghouse 1104511 -do- 11 12/23.7.11 IR No. 6/30.3.11 of K.Srinivas, B.C 38180 -do-

Total = 1447206 Thus an amount of Rs.14,47,206/- was misappropriated by way of not accounting for in cash book and not remitting to Municipal funds. Sri P. Venkat Rao who dealt with the cash shall be held responsible. The same would need to be recovered and credited to Municipal funds.

(Para34 & 35 of AR of MC Zaheerabad Medak) 12.6 MUNICIPAL COUNCIL, SADASIVPET, MEDAK - DOUBLE DRAWLS -

MISAPPROPRIATION OF FUNDS – Rs.77,655/- As verified from the slum development account of Municipal Council, Sadasivpet, Medak an amount of Rs. 77,655/- was drawn vide Vr.No. 1/13.9.2010 and cheque issued in favour of Sri .B. Shekar babu Contractor towards Construction of Storm water drain from Robert House to hanuman Mandir in Ward No.16 vide MB No. 54/06-07 at Page No. 32. But the same amount was already paid vide cheque No. 308332 Vr.No. 114/29.09.2007 of Municipal General fund Mb No. 54/06-07 at page No.31.

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 52 of AR of MC Sadasivpet Medak)

12.7 MUNICIPAL COUNCIL, YEMMIGANUR, KURNOOL -

MISAPPROPRIATION OF FUNDS – AMOUNTS DRAWN THROUGH SELF CHEQUES – NOT ACCOUNTED FOR Rs.4,00,000/-

As verified from the P.F account cash book w.r.t. bank pass book of Municipal Council, Yemmiganur, Kurnool Dist. for the year 2010-11 it was noticed that an amount

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of Rs.400000.00 was drawn and paid through self cheques and utilized without accounting for in the cash book and expenditure particulars and connected vouchers were not furnished.

As per Act 273,274 of Andhra Pradesh Financial code Vol.I Government servant concerned is responsible for any loss sustained or negligence on their part. As such the amount drawn through Ch.No.424491/dated2/7/2010 without accounting for in the cash book is irregular as per Art 3, 4 & 38,44 of Andhra Pradesh Financial code towards, incurring expenditure.

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 No 38 AR of MC Yemmiganuru Kurnool)

12.8 MUNICIPAL COUNCIL, ZAHEERABAD, MEDAK - COLLECTED

AMOUNTS – ABNORMAL DELAY IN REMITTANCE- TEMPORARY MISAPPROPRIATION-IRREGULAR

During the course of audit, it is noticed that bill collectors have been remitting the collected amount towards taxes and fees after the lapse of considerable period from the date of collection. The lapse has not been rectified in spite of reporting in the previous Audit Reports. The collections made before 31.03.2011, but remitted with the delay ranging from 15 days to (1) month which is highly irregular and amounts to temporary misappropriation. The accountant has received money from the bill collectors immediately after collection of the taxes and fees or at short intervals, but he did not remit the amounts immediately after taking the same from the bill collectors and other collection staff. The accountant and others are habituated to this irregular practice of delayed remittance of the Municipal revenue. Necessary disciplinary action would need to be taken against the person’s concerned dealing with the collection of the revenue and avoid the temporary misappropriation of the Municipal revenue.

(Para 26 of AR of MC Zaheerabad Medak)

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.8 (2) is appended to

the Report. The excess payments pointed out in 153 audit paras were involving an amount of Rs.68.21 lakhs. Few such cases are given below.

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13.1 MUNICIPAL COUNCIL, SALUR, VIZIANAGARAM DIST. - AMOUNTS PAID TO CONTRACTORS-INCOME TAX NOT DEDUCTED CONSEQUENTIAL EXCESS PAYMENT-NEEDS RECOVERY - Rs.51488/-

As verified from the cash book and vouchers of Municipal Council, Salur for the year

2010-11, it is observed that an amount of Rs. 22,98,565/- was drawn and paid to the contractors for supply of the labour towards private sanitation. The 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 need to be recovered and remitted to Income Tax Department.

(Para 48) of AR of MC Salur Vizianagaram)

13.2 MUNICIPAL COUNCIL, MANGALAGIRI, GUNTUR DIST. - WORKS –

ALLOWING OF EXCESS RATE THAN THE ORIGINAL ESTIMATE RATE –EXCESS PAYMENT –NEEDS RECOVERY - Rs.20,725/- As verified from voucher No. 12/5-10 along with M.B. No.54/2009-10 of

Municipal Council, Mangalagiri for the year 2010-11, providing pipe line and road J.Mohan Rao House to M.Nageswara Rao House in ward no: 18, it was observed in the estimate and data that the “Rate for the refilling the pipeline trench with excavated soils and others, per cubic meter was wrongly shown as Rs.558.10 instead of Rs.16.80/cum. The same rate was allowed in the abstract of the work recorded at page No.15 to 19. As such the excess payment paid to the contractor as detailed below duly allowing wrong rate i.e., excess rate than the rate arrived in the “Data”.

Page No. 4 & 5 of M.Book –Execution of work item

Refilling of trench with excavated soils other than sand etc……..40.43cum Abstract of the work

Item .09 (Page No.18) Refilling of trench with excavated Soils other than sand etc……..40.43cum 558.10 Rs. 22563.98 1cum Correct 40.43cum 16.80 Rs. 679.22 1cum -------------------- Difference 21884.75 Less T.P (-) 5.3% 1160.00 -------------------

Net excess payment paid Rs.20724.75 or 20725.00.

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Immediate action should be taken to recover the excess payment paid; duly adopting the higher rate than the actual rate arrived in the data, from the person or persons responsible.

(Para No 33 of AR of MC Mangalagiri Guntur)

13.3 MUNICIPAL COUNCIL, PONNURU, GUNTUR DIST. - WORKS – THE

TOTAL SUPPLIED QUARRY DUST WAS NOT SPREAD – EXCESS AMOUNT PAID – NEEDS RECOVERY - Rs.14,230/-

On verification of Vr.No.563/29.11.10 it was noticed that an amount of Rs.160201/- was paid to the contractor towards the work “Construction of CC drains and approaches in 12th ward”. The item of work ‘Cost and supply of quarry dust’ was recorded in Measurement Book No.3/2009-10 at page No.15 and 19 for quantity 35.02 cu.m. But at Page No.21 of the same Measurement Book the spreading of quarry dust was recorded for a quantity 16.80 cu.m. only. The balance quantity of quarry dust was not spread and the utilization was not forthcoming to audit. So the amount paid for the un spread quarry dust i.e. 18.22 would need to be recovered from the person or persons responsible. The rate taken for cost and supply of quarry dust is Rs.781/-. So for the quantity of 18.72 an amount of Rs.14230/-(18.22*781=14230) was to be with held.

(Para No 7(2) of AR of MC Ponnuru Guntur) 13.4 MUNICIPAL COUNCIL, SRIKALAHASTI, CHITTOOR DISTRICT -

EXECUTION OF WORKS – EXCESS AMOUNT PAID - NEEDS TO BE RECOVERED –Rs. 34,769/- On verification of Vr.No.10/2.11 and M.B.No.90/2010-11, towards the work

“supply, delivery and electrification and other work in Ground floor of Auditorium”. It is noticed that an amount of Rs.9,16,167/- was paid to the contractor in part bill but in final bill payment Rs.8,81,398/- was deducted instead of Rs.9,16,167/- consequently an amount of Rs. 34,769/- was excess paid to the contractor than admissible amount which needs to be recovered from the contractor and remitted to Municipal Funds

(Para No 6.3 of AR of MC Chittoor)

13.5 MUNICIPAL COUNCIL, SRIKALAHASTHI, CHITTOOR DIST. -

EXECUTION OF WORKS UNDER SCHEMES AND OTHER WORKS – LABOUR CESS NOT RECOVERED – NEEDS RECOVERY - Rs.7,93,101/-

As per G.O.Ms.No.42, Labour, Employment Training & Factories (Lab-II) Department, dated 30-4-2007, recovery @ 1% of the amount has to be made towards Labour Cess from all contractors payments and as per U.O. Note No.4763/PFS.F8(A1)/08-4, dated 28-2-2008 of the Finance (Works & Projects) Department, in respect of ongoing works, wherever agreements do not contain the clause relating to the condition of the Building and other construction workers Cess Act, an amount of 1% of the amount will be added to the estimates and the estimates revised accordingly, for all payments made after 26-6-2007.

198

As verified from the audit of work bills of Municipal Council, Srikalahasthi for the year 2010-11, it was noticed that labour cess @1% was not recovered form the contract works and caused total excess payment of Rs. 793101/- to the Contractors.

Sl. No. Name of the Scheme Total Value of

Work done 1% Labour Cess not

deducted 1 New Plan Scheme 7437616/- 743762/- 2 Indiramma Infrastructure 493393/- 49339/- Total 7931009/- 793101/-

Necessary action would need to be taken for the recovery of the said amount.

(Para No 6.10 of AR of MC Srikalahasthi Chittoor)

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. 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 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 2010-11 were expenditures that were avoidable, extraordinary and lacked proper planning.

Consolidated statement of Wasteful Expenditure incurred is annexed to the Report

Statement No.8 (2)from which it could be seen that an amount Rs.48.76 pointed out as Wasteful Expenditure. Some such 33 cases pointed out in Audit Reports.

15. INSTANCES OF CASES UN-ACCOUNTED CASH / STORES

A few instances of Cash / Stores unaccounted for were noticed during the course

of audit consolidated Statement of cases of unaccounted Cash / Stores Statement No.8 (2) is appended to the Report from which it can be noticed that 5 paras pointing out to Rs.1.84 lakhs were raised during the year.

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.

199

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 2010-11 it was pointed that 32 UCs were pending as shown in

the Statement No. 8(2) appended to this report.


-NIL –

18. OTHERS Other objections which did not fall in the above categories are incorporated under

this category. Such objections numbering 1026 were raised for an amount of Rs.720.57 lakhs as detailed in Statement No. 8(2). Few such cases are given below.

18.1 MUNICIPAL COUNCIL, AMADALAVALASA, SRIKAKULAM DIST -

URBAN HEALTH CENTRES - ACHIEVEMENTS OF OBJECTIVES NOT FORTHCOMING- NEEDS ACTION:

During the course of audit on the accounts of Amadalavalasa municipal council, Srikakulam District for the year 2010-11, it is noticed that an amount of Rs.9,37,734/- was drawn and paid towards expenditure of 2 Urban Health centers in the jurisdiction of the Municipal council as detailed below:

S.No. Details of Expenditure Amount Spent Rs.

1 Salaries to staff 376100.00 2 Bank Charges 400.00 3 IJ Naidu Center Staff Salaries 561234.00

TOTAL 9,37,734.00

But the achievements of objectives of the said Scheme were not forthcoming to audit. As per the instructions issued in Lr.Rc.No.504/USP-A/2007; dt.12.11.2007 read with Govt.of India No.10 (11)/2007-NRHM GOI, Ministry of Health and Family Welfare (NRHM-Section) the Urban Health Centers were established to achieve the following objectives:

Strengthen the existing urban health infrastructure by renovation/up gradation of existing facilities.

Provision for establishing new facilities in uncovered urban slum areas. Provide support for development of a referral system for institutional deliveries,

emergency obstetric care and terminal methods of family planning.

200

Involvement of NGOs/Private Sector in the provision of Primary Health Center Services and also as part of referral system.

Integration of the existing infrastructure with the proposed urban health programme.

Urban Health Center will provide only OPD services. Family Planning services including IUD, referral for terminal methods. Child Health services including immunization. Antenatal care. Post natal care etc.,

But the documentary evidences of achievements of the objectives were not forthcoming to audit. Hence, action would need to be taken to evaluate the achievements of the scheme periodically as without achieving objections.

(Para No 91 of AR of MC Amadalavalasa Srikakulam)

18.2 MUNICIPAL COUNCIL, GUDUR, NELLORE DIST - P.F SUBSCRIPTIONS OF LABOUR PAID TO PROVIDENT FUND COMMISSIONER, GUNTUR – INDIVIDUAL P.F. ACCOUNT NUMBER AND CREDIT PARTICULARS NOT OBTAINED AND FURNISHED.

As per Circular Memo.No.203/Lab.II/A1/2003-1, dated 21-4-2003 of the Labour Employment Training and Factories(Lab.II) Department, the minimum wages fixed by the commissioner of Labour as well as contribution towards provident fund and E.S.I. are @ Rs. 13.61%, @ Rs.4.75% respectively to the labour. In this connection the amount was drawn from Municipal Fund and paid to Regional Provident Fund Commissioner, Guntur towards E.P.F. But the P.F. Account Nos. and Credit particulars of the labour have not been obtained from the provident fund office and produced to audit. As such, it could not be verified in audit, whether the amounts were remitted regularly or not. The P.F. Account No.s and credit particulars of the Labour would need to be obtained from the Provident Fund Office and produced to audit without further loss of time.

(Para No 64 of AR of MC Gudur SPSR Nellore)

18.3 MUNICIPAL COUNCIL, ZAHEERABAD, MEDAK DIST - PRIVATE

SANITATION, WATER SUPPLY LABOURS – ENGAGEMENT OF PRIVATE SANITATION WORKERS – REQUIREMENT DETAILS NOT MADE AVAILABLE – Rs.98,92,548/-

An amount of Rs.98,92,548/- was incurred towards lifting of solid waste by private sanitation workers and Street light maintenance, water Supply labour during the year under audit. The private workers were engaged to lift the solid waste/garbage in several wards of Zaheerabad Municipal council. As per the guidelines issued in Cir.Roc.No.28711/97/A2 dt.31.10.1997 of Commissioner and Director of Municipal Administration, A.P. Hyderabad on the maintenance of sanitation, privatization of sanitation and solid waste management at first, the gap between the solid waste generated every day and that can be managed by the Municipal Staff shall be identified. According to guidelines, one person shall be assigned 2.00 km of road length per day for sweeping and each drain cleaner 2.00 km drain per day for cleaning. After assigning the work as above, the further requirement of private sanitation workers and the private vehicles shall

201

be assessed. The garbage workers shall be engaged at the rate of five persons per vehicle. A tractor shall lift 5 M.Tons of solid waste per day. Further, as per Govt. orders contained in G.O.Ms.No.581 MA & UD Dept. dt.6.11.1999, the sanitation work shall be entrusted to the societies formed with retired public health workers or their dependants and badili workers provided they participate in the tenders. The overall approach should be to workout the requirement of manpower and machinery in the maintenance of sanitation on the whole town approach, delete the area of the existing staff available in the Municipal council for the maintenance of sanitation and work out for the other area for the participation of the private parties on contract basis to maintain the sanitation in the town. As seen from the records, authorities have simply noted that from such and such wards complaints of garbage accumulation were received and there was necessity to hire private vehicles. The proper methodology for engaging private vehicles was not explained. The vehicles were engaged by calling for quotation instead of tenders to fix the rates. No agreement was entered into as per the guidelines. The correctness of the huge expenditure incurred on garbage lifting as per guidelines could not be ascertained in the audit. Without taking the area profile and the quantity of the waste generated into account, and without calling for tenders, the work was entrusted to the private persons. The following defects were pointed out on verification of the paid vouchers

No Scientific formula adopted for calculation of the area and labour ratio. Muster Rolls were not maintained. Work done statement were not enclosed Payment made on the basis of contractor invoice only. Further in some cases

there is no signature of contractor. Some payments did not contain period which it relates to. ESI& PF deduction and remittance particulars were not pointed out. Net disbursement/ acquittance were not produced. Though the sanitation contract was assigned to the different labour societies

on the record, the ultimate receiver of payments was R. Viswanath alone. All payments made on letter head of the contractor and without signature of

the contractor and labour particulars were noted on white paper without certification of contractor or concerned S.I. or A.E. or Commissioner.

No absentee statements did come forth during the verification of the vouchers which indicate the lack of supervision and recording of absentee statement.

Under whose supervision labour work done during the year was not pointed out in audit.

Therefore, the whole issue may be examined and the loss if any caused be recovered from the persons responsible.

(Para No 41 of AR of MC Zaheerabad Medak)

202

18.4 MUNICIPAL COUNCIL, ANAKAPALLI, 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 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 No 2(5) of MC Anakapalli Visakhapatnam)

18.5 MUNICIPAL COUNCIL, MANDAPETA, EAST GODAVARI DIST. -

LAND ACQUISITION- AMOUNT PAID TO REVENUE DIVISIONAL OFFICER, RAJAHMUNDRY TOWARDS ACQUISITION OF LAND FOR DUMPING YARD SITE– NO PROGRESS OBSERVED– AMOUNT NEEDS TO BE GOT BACK Rs.64,00,000/-

During the course of audit it was noticed that an amount of Rs.64,00,000/- was

drawn and paid to Revenue Divisional Officer, Rajahmundry vide Lr.Roc.No.1210/10/F1, dated: 03.02.2011 in different cheques towards Land Acquisition and Publication Charges for acquisition of land for 3.16 Acres in Survey No.105/2B,3 for the purpose of Dumping yard to the Municipal council. As there was no progress in acquisition of land, the Director of Municipal Administration, Hyderabad gave instructions to Municipal authorities to get back the amount from the Revenue authorities. But no steps appeared to be taken on this. Hence action needs to be taken to acquire the land immediately or to get the amount back as there is no point in locking up the Municipal funds with the Revenue authorities.

(Para No 44 of AR of MC Mandapeta East Godavari)

18.6 MUNICIPAL COUNCIL, VIKARABAD, RANGA REDDY DIST - SOLID WASTE MANAGEMENT – SEWAGE MANAGEMENT - DEFECTS IN MANAGEMENT – NEEDS RECTIFICATION.

The key processes of Sanitation-Solid Waste Management function involve

allocation of employees for sweeping and garbage removal, cleaning of drains, allocation of the vehicles for garbage transportation and disposal of garbage at the dumping ground, maintenance of the vehicles, maintenance of the public toilets, controlling of pigs, dogs and carrying out anti-malarial operations, etc. As per the records, it is seen that the municipal authorities are showing proper interest in collection

203

of Solid waste from the households. But the solid waste is not made to produce any revenue out of it. At least minimum reasonable amount of compost is not produced out of it and sold.

As per the benchmark notified by the 13th Finance Commission, the extent of scientific disposal of municipal solid waste should be 100%, wherein the Municipal Authorities have achieved 0 % during 2010-11, Effective steps would need to be taken to follow the targets fixed by the 13th Finance Commission. The executive authorities are advised to reduce the gap between “Collection” and “Scientific disposal” of Solid Waste.

(Para No.49 of AR of MC Vikarabad Rangareddy)

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.

DIRECTOR

A.P., HYDERABAD DATE : 30-08-2013 PLACE : HYDERABAD

ACCOUNTING STATEMENTS OF MUNICIPAL COUNCILS

SECTION - II

Sl.No.


DEMAND AS ON 01.04.2011

AUDIT COMPLETED AS

ON 30.6.2013

BALANCE AS ON 01.07.2013

1 Adilabad 7 7 0

2 Anantapur 6 6 0

3 Chittoor 7 7 0

4 East Godavari 12 12 0

5 Guntur 6 6 0

6 Kadapa 7 7 0

7 Karimnagar 4 4 0

8 Khammam 6 6 0

9 Krishna 5 3 2

10 Kurnool 4 4 0

11 Mahbubnagar 4 2 2

12 Medak 5 5 0

13 Nalgonda 4 4 0

14 Nellore 3 3 0

15 Nizamabad 3 3 0

16 Prakasam 4 4 0

17 Rangareddi 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 5 2108 102 6

STATEMENT SHOWING STATUS OF AUDIT OF MUNICIPAL COUNCILS FOR THE YEAR 2010-11 AS ON 1.4.2013

Total

STATEMENT No.1

*Note. Adilabad MCs (7) audit has been conducted in Single entry

Page 204

Sl.No.


Tax Revenue

(110)


Compensations(120)

Rental Income from


(130)

Fees and User

Charges(140)

Sale and Hire

Charges(150)

Revenue Grants

Contribution and Subsidies

(160)

Income from

Investments(170)


Other Income(180)

Total (Revenue)

1 Adilabad 917.03 136.80 45.71 460.77 4.29 377.14 52.62 1297.43 211.88 3503.672 Anantapur 1868.94 465.69 396.86 462.18 8.45 119.83 -0.75 83.62 523.30 3928.133 Chittoor 1751.42 639.13 210.80 1088.98 16.72 166.76 3.59 77.10 322.40 4276.904 East Godavari 916.02 404.87 244.71 560.54 13.08 343.34 3.15 42.83 147.18 2675.735 Guntur 3136.21 571.26 1037.74 1520.01 15.59 333.47 171.87 206.14 1296.73 8289.026 Kadapa 1476.16 346.56 241.86 422.05 43.68 255.39 0.05 59.22 2457.06 5302.057 Karimnagar 215.14 202.25 42.95 177.50 3.09 4.78 2.04 32.31 28.78 708.838 Khammam 1439.16 61.18 84.07 1170.14 3.64 394.66 99.13 75.96 52.96 3380.909 Krishna 533.81 190.72 82.27 384.11 1.96 47.94 0.00 37.36 255.84 1534.0110 Kurnool 1410.88 365.57 274.43 304.10 3.10 16.48 1.39 64.34 337.26 2777.5511 Mahbubnagar 157.99 124.23 50.07 378.47 -0.21 38.99 1.47 55.18 22.82 829.0212 Medak 587.90 110.95 29.44 346.36 22.42 33.04 0.00 23.82 109.70 1263.6213 Nalgonda 684.39 507.90 71.22 753.38 17.46 78.64 22.82 126.96 182.77 2445.5414 Nellore 417.64 253.23 81.46 162.18 1.06 10.05 168.86 19.04 403.32 1516.8515 Nizamabad 275.42 42.56 32.50 182.04 0.00 0.42 0.00 7.30 57.48 597.7216 Prakasam 1940.92 1139.30 138.94 901.07 -36.40 323.54 0.25 52.36 118.00 4577.9717 Rangareddi 184.45 126.92 11.44 354.72 0.71 5.69 0.00 18.19 29.93 732.0518 Srikakulam 1445.17 452.23 106.42 375.49 1.41 632.12 0.00 66.59 147.90 3227.3219 Visakhapatnam 594.71 156.01 17.91 184.25 5.49 50.34 0.00 21.06 41.79 1071.5520 Vizianagaram 2846.64 154.70 27.92 560.78 1.65 14.14 5.41 48.94 237.15 3897.3321 Warangal 137.82 86.72 5.77 92.42 1.74 2.42 5.44 16.56 4.60 353.4922 West Godavari 1479.66 621.90 212.84 758.25 10.28 257.11 0.11 45.42 99.81 3485.39

24417.48 7160.71 3447.33 11599.79 139.23 3506.27 537.45 2477.74 7088.65 60374.64Total

Statement showing the Headwise Revenue Receipts of Muncipal Councils for the year 2010-2011STATEMENT No. 2 (1)

Rs.in lakhs

Page 205

Sl.No.


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(Capital)

Grand Total (Revenue +

Capital)

1 Adilabad 0.00 -219.36 0.00 1193.60 -7.83 0.00 52.41 0.00 102.92 0.00 1121.74 4625.412 Anantapur 0.00 25.97 0.00 1240.59 -2.69 0.00 36.62 0.00 -65.20 0.00 1235.29 5163.423 Chittoor 115.17 53.90 0.00 1656.39 -25.00 0.00 25.25 0.00 164.50 0.00 1990.20 6267.104 East Godavari 0.00 258.00 -38.61 823.77 0.00 0.00 34.65 0.00 3.18 0.00 1081.00 3756.725 Guntur 32.36 306.29 49.48 1940.06 0.00 0.00 160.06 0.00 -8.72 0.06 2479.60 10768.626 Kadapa 0.00 9.16 0.00 1640.79 0.00 0.00 70.67 0.00 -3.83 -0.42 1716.36 7018.417 Karimnagar 0.00 24.81 0.00 1554.15 0.00 0.00 97.96 0.00 8.76 -0.29 1685.40 2394.238 Khammam 0.00 79.50 0.00 1358.36 0.00 0.00 183.54 0.00 132.20 0.00 1753.61 5134.509 Krishna 0.00 -0.26 0.00 590.50 0.00 0.00 30.53 0.00 -107.58 0.00 513.19 2047.2010 Kurnool 0.00 37.02 0.00 1266.12 0.00 0.00 -0.48 0.00 78.50 0.00 1381.17 4158.7211 Mahbubnagar 0.00 42.96 0.00 392.11 0.00 0.00 52.23 0.00 70.75 0.00 558.05 1387.0712 Medak 50.47 5.03 -0.60 784.72 0.00 0.00 90.33 0.00 394.77 0.00 1324.72 2588.3413 Nalgonda 55.40 -433.74 -4.42 515.23 6.28 20.37 25.33 0.00 71.32 0.00 255.77 2701.3014 Nellore 0.00 -50.09 2.10 1005.58 0.00 0.00 11.52 0.00 -90.63 0.00 878.47 2395.3215 Nizamabad 0.00 21.70 0.00 1095.48 0.00 0.00 13.94 26.33 56.83 1.42 1215.70 1813.4216 Prakasam 0.00 326.69 0.00 1974.39 0.00 0.00 -47.48 0.00 -121.77 0.00 2131.84 6709.8217 Rangareddi 0.00 -164.61 0.00 457.02 0.00 0.00 0.91 0.00 156.59 0.00 449.92 1181.9718 Srikakulam 0.05 -70.27 0.00 478.02 -1.05 0.00 6.69 0.00 -114.83 0.00 298.60 3525.9119 Visakhapatnam 0.00 -5.05 0.00 402.80 0.00 0.00 3.31 0.00 -260.38 0.00 140.69 1212.2420 Vizianagaram 0.00 67.19 0.00 1433.85 0.00 0.00 54.28 0.00 -32.46 0.00 1522.86 5420.1921 Warangal 0.00 0.00 0.00 236.45 0.28 0.00 18.27 0.00 5.59 0.00 260.59 614.0822 West Godavari 0.00 -17.17 3.61 1090.83 0.00 0.00 9.10 0.00 -116.89 0.00 969.47 4454.86

253.45 297.67 11.56 23130.82 -30.02 20.37 929.66 26.33 323.61 0.78 24964.22 85338.86Total

Statement showing the Headwise Capital Receipts of Muncipal Councils for the year 2010-2011STATEMENT No. 2 (2)

Rs.in lakhs

Page 206

Sl.No.



(210)


(220)

Operations and

Maintenance(230)

Interest and Finance Charges

(240)

Programme Expenses

(250)


(260)

Provisions and Write off

(270)

Miscellaneous Expenses

(271)

Depreciation(272)


Transfer to

Reserve Funds(290)

Total (Revenue)

1 Adilabad 985.01 499.49 543.44 53.77 17.37 133.32 0.55 28.92 1.88 0.26 0.00 2264.012 Anantapur 681.11 395.70 1299.70 0.48 204.97 35.33 0.32 0.00 0.00 19.82 1.32 2638.743 Chittoor 1046.30 678.57 1209.29 16.05 26.98 213.33 3.93 0.00 0.00 -14.61 0.00 3179.844 East Godavari 787.96 421.75 717.89 0.75 55.39 15.34 0.00 0.00 0.00 36.22 0.00 2035.305 Guntur 839.22 2078.72 1153.96 57.54 42.35 161.25 39.14 3.91 20.28 80.14 0.00 4476.506 Kadapa 279.00 361.01 424.56 0.78 191.70 94.20 0.00 0.27 0.00 75.87 0.00 1427.407 Karimnagar 368.47 303.63 513.75 17.97 500.89 0.00 0.00 1.06 0.00 0.00 0.00 1705.768 Khammam 1091.39 519.95 1403.36 0.21 14.94 0.00 0.00 2.43 -22.33 0.00 0.00 3009.959 Krishna 260.54 260.54 226.53 0.53 0.53 54.65 0.00 0.00 0.00 2.62 0.00 805.93

10 Kurnool 317.49 499.35 602.45 45.99 -171.66 5.14 0.00 0.51 0.00 0.00 0.00 1299.26

11 Mahbubnagar 292.94 86.66 419.88 0.18 68.27 -82.20 0.00 0.00 0.00 0.00 0.00 785.74

12 Medak 456.95 296.43 713.45 3.11 41.80 0.00 13.98 0.00 1.82 26.66 0.00 1554.2013 Nalgonda 776.34 579.17 951.70 65.11 47.57 -210.94 1.99 0.18 1.15 40.52 0.00 2252.7814 Nellore 286.60 230.80 141.74 0.02 5.70 93.29 30.90 0.33 0.00 0.25 0.00 789.6315 Nizamabad 376.98 552.86 190.00 29.50 4.25 31.16 10.73 0.00 155.19 0.40 0.00 1351.0716 Prakasam 732.51 569.61 1211.27 1.70 4.35 305.97 0.00 0.00 97.08 28.72 0.05 2951.2517 Rangareddi 203.87 120.28 249.16 1.87 0.00 0.00 0.10 0.00 47.26 8.15 0.00 630.6918 Srikakulam 463.58 324.79 707.69 0.26 191.16 43.49 0.00 0.00 0.00 0.35 0.00 1731.31

19 Visakhapatnam 74.82 219.23 293.26 0.07 5.24 0.00 0.00 0.00 0.00 0.75 0.00 593.37

20 Vizianagaram 520.67 290.90 1142.35 0.19 8.32 0.00 0.00 0.90 0.00 0.00 0.00 1963.3321 Warangal 74.43 167.21 23.53 0.01 0.34 0.45 -4.47 0.00 0.00 0.00 0.00 261.5022 West Godavari 382.17 440.95 603.40 0.13 5.69 28.75 0.70 1.79 0.33 11.10 0.00 1475.01

11298.33 9897.61 14742.36 296.21 1266.15 922.50 97.87 40.29 302.66 317.22 1.36 39182.58Total

Rs.in Lakhs

STATEMENT No.3 (1)Statement showing the Headwise Payments of Muncipal Councils for the year 2010-2011

Page 207

Sl.No.


Fixed Assets(410)

Accumulated

Depreciation

(411)


(412)

Investments-General

Fund(420)

Investments-Other Funds

(421)

Stock-in- hand(430)

Sundry Debtors

(Receivables)(431)


against Debtors

(Receivables)(432)

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(Capital)

Grand Total

(Revenue + Capital)

1 Adilabad 1958.19 0.00 0.00 0.00 60.45 0.00 0.00 0.00 0.00 0.00 82.12 0.00 8.85 0.00 2109.61 4373.622 Anantapur 1383.97 0.00 251.02 113.50 30.00 0.00 -12.92 0.00 0.00 0.00 203.17 0.00 4.00 0.00 1972.73 4611.473 Chittoor 2196.94 0.00 68.28 65.00 -72.38 0.00 -184.82 0.00 0.00 0.00 181.11 0.00 9.58 0.00 2263.72 5443.564 East Godavari 366.02 0.00 402.46 219.51 0.00 0.00 -368.41 0.00 0.00 0.00 18.62 0.00 0.00 0.00 638.20 2673.505 Guntur 2729.73 0.00 -73.56 115.36 565.31 0.48 -84.71 0.00 2.38 0.00 30.09 0.00 0.97 0.00 3286.05 7762.556 Kadapa 1134.15 0.00 0.00 -145.27 0.00 0.00 0.00 0.00 0.00 0.00 2.73 0.00 0.00 -16.31 975.30 2402.697 Karimnagar 750.78 0.00 581.99 94.35 0.00 0.00 -618.60 0.00 0.00 0.00 -3.11 0.00 5.71 0.00 811.12 2516.888 Khammam 151.30 0.00 1172.05 300.15 10.27 0.00 -477.87 0.00 0.00 0.00 7.52 0.00 0.00 0.00 1163.43 4173.389 Krishna 730.66 0.00 0.51 119.00 0.00 0.00 0.00 0.00 0.00 0.00 9.04 0.00 0.00 0.00 859.22 1665.15

10 Kurnool 1368.52 0.00 120.40 -30.15 -37.98 0.04 0.00 0.00 0.00 0.00 61.39 0.00 57.79 0.00 1540.02 2839.27

11 Mahbubnagar 1057.04 0.00 0.00 -170.00 -11.89 0.00 -585.91 0.00 0.00 0.00 6.71 0.00 0.00 0.75 296.71 1082.44

12 Medak 1623.97 0.00 28.36 -40.00 -164.84 1.48 -104.67 0.00 0.00 0.00 19.88 0.00 1.75 81.93 1447.86 3002.0613 Nalgonda 1181.54 0.00 140.38 7.39 75.25 37.41 -470.36 0.00 0.00 0.00 2.94 0.00 211.11 -513.69 671.95 2924.7314 Nellore 943.23 0.00 0.74 95.46 0.00 0.00 0.00 0.00 0.00 0.00 0.43 0.00 4.11 0.04 1044.01 1833.6415 Nizamabad 464.39 0.00 0.29 0.00 7.13 0.00 -398.91 0.00 0.00 0.00 27.21 0.00 30.35 18.91 149.38 1500.4416 Prakasam 596.58 0.00 107.80 -5.70 0.00 0.00 -31.74 0.00 0.75 0.00 44.57 0.00 0.00 0.00 712.27 3663.5117 Rangareddi 324.87 0.00 0.00 0.00 -15.29 0.00 -39.26 0.00 0.00 0.00 0.75 0.00 0.00 0.00 271.07 901.7618 Srikakulam 52.85 0.00 262.87 154.20 9.00 0.00 -385.96 0.00 0.00 0.00 43.00 0.00 0.00 0.00 135.96 1867.27

19 Visakhapatnam 38.97 0.00 79.37 171.14 -50.60 0.00 -72.24 0.00 0.00 0.00 5.72 0.00 0.00 0.00 172.35 765.73

20 Vizianagaram 109.46 0.00 449.26 234.20 513.88 0.00 -739.67 0.00 0.00 0.00 0.25 0.00 0.00 0.00 567.38 2530.7121 Warangal 248.83 0.00 0.00 -10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 0.01 0.00 239.35 500.8422 West Godavari 761.08 0.00 141.62 0.00 577.00 0.00 0.00 0.00 0.60 0.00 -75.73 0.00 1.45 0.00 1406.02 2881.03

20173.09 0.00 3733.84 1288.14 1495.31 39.40 -4576.04 0.00 3.73 0.00 668.90 0.00 335.68 -428.37 22733.67 61916.25

Rs.in Lakhs

Total

Statement showing the Headwise Payments of Muncipal Councils for the year 2010-2011STATEMENT No.3 (2)

Page 208

Sl.No.


Tax Revenue

(110)


Compensations(120)

Rental Income

from Municipal Properties

(130)

Fees and User

Charges (140)

Sale and Hire

Charges(150)

Revenue Grants

Contribution and Subsidies

(160)

Income from Investments

(170)


Other Income(180)

Total

1 Adilabad 780.33 136.80 79.12 474.63 4.55 399.38 65.81 252.58 241.40 2434.602 Anantapur 1726.46 536.77 392.93 465.88 8.45 119.53 -0.60 83.75 528.58 3861.763 Chittoor 2004.71 612.04 212.27 1089.56 16.72 106.20 20.59 76.70 261.79 4400.574 East Godavari 1094.01 413.19 307.95 653.43 13.86 272.61 20.63 43.10 148.98 2967.765 Guntur 2761.99 680.23 1027.11 1540.60 16.84 334.67 171.87 103.93 1184.38 7821.636 Kadapa 1152.81 486.82 249.29 514.31 47.98 254.80 0.05 59.22 232.61 2997.917 Karimnagar 600.62 274.52 203.89 343.94 1.09 4.78 9.59 32.31 14.26 1485.008 Khammam 1546.78 337.13 82.95 1290.17 4.49 121.65 23.13 75.96 177.39 3659.639 Krishna 625.11 190.72 145.88 250.25 2.87 48.02 0.00 37.36 233.70 1533.9110 Kurnool 1468.75 365.57 299.94 275.59 3.10 5.76 1.39 64.34 336.09 2820.5311 Mahbubnagar 502.10 124.23 178.78 602.54 0.00 92.89 2.03 55.18 19.71 1577.4812 Medak 1181.69 178.80 60.98 479.32 22.42 104.41 4.92 23.82 26.74 2083.1013 Nalgonda 1533.16 515.21 114.73 613.57 17.48 532.75 50.20 126.96 56.26 3560.3214 Nellore 216.26 255.61 83.51 209.48 3.33 10.21 168.86 19.04 283.47 1249.7715 Nizamabad 719.75 42.56 64.86 194.46 0.00 0.42 0.00 7.30 63.43 1092.7816 Prakasam 1823.95 1143.16 138.24 933.47 6.09 323.54 0.25 52.32 118.00 4539.0117 Rangareddi 327.56 126.92 16.93 386.88 0.71 5.69 0.00 18.19 29.15 912.0318 Srikakulam 663.39 437.02 135.64 467.47 1.66 626.53 15.39 36.27 141.55 2524.9219 Visakhapatnam 416.06 300.01 54.33 176.93 5.49 37.14 26.12 21.06 18.36 1055.4920 Vizianagaram 1018.11 153.86 55.98 765.50 2.44 40.67 46.77 48.83 195.37 2327.5321 Warangal 134.35 86.72 4.66 92.46 1.89 2.42 5.44 16.56 12.38 356.8822 West Godavari 1517.09 621.90 224.03 758.32 10.43 257.11 0.11 45.42 124.80 3559.22

23815.05 8019.79 4134.00 12578.77 191.89 3701.18 632.56 1300.20 4448.40 58821.85Total

Statement showing the Headwise Income of Muncipal Councils for the year 2010-2011STATEMENT No.4

Rs. In lakhs

Page 209

Sl.No.


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)


Transfer to

Reserve Funds (290)

Total

1 Adilabad 937.16 484.34 585.52 53.77 20.70 115.39 0.55 29.19 1970.02 0.26 0.00 4196.892 Anantapur 701.04 414.66 1353.47 1.41 204.85 35.39 0.25 0.00 4766.55 19.82 1.32 7498.753 Chittoor 1114.95 670.71 1249.94 16.05 37.47 7.93 3.93 0.00 1301.49 3.81 0.00 4406.294 East Godavari 601.83 450.29 584.62 8.13 55.45 15.34 0.00 0.00 814.13 38.13 0.00 2567.925 Guntur 1920.14 2093.21 1173.23 74.47 42.35 161.25 39.14 3.88 3454.93 91.58 0.00 9054.176 Kadapa 647.76 1078.34 873.04 1.13 7.29 109.44 0.00 0.40 1397.44 75.87 0.00 4190.707 Karimnagar 368.47 284.18 425.55 18.40 501.98 0.00 0.00 0.00 1039.85 0.00 0.00 2638.428 Khammam 958.85 508.57 543.42 48.75 88.65 0.00 0.00 0.12 1302.14 0.00 0.00 3450.519 Krishna 262.47 262.63 225.70 56.90 0.53 54.69 0.00 0.00 352.38 0.00 0.00 1215.3010 Kurnool 323.38 499.37 609.40 45.99 -168.39 5.14 0.00 0.51 3497.71 0.00 0.00 4813.1111 Mahbubnagar 305.07 89.54 992.87 91.83 68.52 0.00 0.00 0.00 1122.09 0.00 0.00 2669.9412 Medak 496.01 313.16 756.99 53.13 41.80 0.00 0.00 0.00 743.93 2.98 0.00 2407.9913 Nalgonda 941.74 640.82 985.29 146.06 48.98 20.10 2.64 0.18 3106.29 0.39 0.00 5892.4814 Nellore 592.59 242.89 146.75 0.07 5.86 6.64 30.90 0.33 443.39 0.26 0.00 1469.6715 Nizamabad 285.37 562.23 218.70 29.50 8.13 31.16 36.07 0.00 725.10 0.40 0.00 1896.6716 Prakasam 760.82 591.63 1317.88 3.98 4.35 307.23 0.00 0.00 1570.65 28.72 0.05 4585.3117 Rangareddi 204.18 169.56 157.07 1.87 0.00 0.00 0.10 10.38 236.97 8.15 0.00 788.2818 Srikakulam 432.70 344.61 459.64 6.47 189.74 43.49 0.00 0.00 1358.00 0.00 0.00 2834.65

19 Visakhapatnam 172.53 217.53 187.72 65.41 5.24 0.00 0.00 0.00 386.54 0.75 0.00 1035.7120 Vizianagaram 520.24 249.93 826.03 1.19 31.07 0.00 0.00 0.00 851.68 0.00 0.00 2480.1621 Warangal 74.43 167.25 23.68 0.01 0.34 7.69 3.32 0.00 50.86 0.00 0.00 327.58

22 West Godavari 382.12 443.59 602.83 28.41 5.74 28.75 0.70 1.79 530.11 11.07 0.00 2035.1213003.84 10779.05 14299.34 752.93 1200.64 949.62 117.60 46.77 31022.26 282.20 1.36 72455.63

Statement showing the Headwise Expenditure of Muncipal Councils for the year 2010-2011

Total

STATEMENT No.5

Rs.in Lakhs

Page 210

Sl.No.


Fixed Assets(410)

Accumulated Depreciation

(411)


(412)


(420)

Investments-Other Funds(421)

Stock-in- hand(430)

Sundry Debtors (Receivables)

(431)

1 Adilabad 33879.10 -20910.52 17.79 99.69 558.68 17.56 1175.132 Anantapur 74209.57 -45257.23 661.55 168.00 269.44 27.43 1098.063 Chittoor 40646.29 -22772.11 142.02 322.18 137.27 761.36 1432.184 East Godavari 27352.35 -14136.70 1210.52 764.84 100.94 46.46 2162.535 Guntur 34885.05 -11170.96 64.63 653.23 1659.01 73.68 2083.146 Kadapa 18766.73 -3584.35 687.38 2490.18 0.00 24.14 1340.777 Karimnagar 14494.03 -4843.63 888.92 281.36 110.32 0.00 675.778 Khammam 25829.02 -14582.12 2390.13 701.99 83.46 3.54 1838.979 Krishna 3317.61 0.09 0.51 388.93 0.00 4.83 616.2210 Kurnool 47343.55 -11417.61 253.29 483.25 556.33 54.55 1277.0611 Mahbubnagar 19805.46 -7291.10 0.00 4.18 60.00 0.01 910.3012 Medak 7423.40 -515.04 33.69 68.53 21.27 35.15 1235.2513 Nalgonda 39731.00 -18816.99 21.95 443.57 417.65 74.57 1004.8614 Nellore 5667.56 -1650.96 488.14 276.37 92.62 8.03 376.5615 Nizamabad 11572.60 -7276.40 0.59 0.00 7.13 8.61 488.0116 Prakasam 29501.70 -19695.79 183.27 56.66 3.74 14.25 586.6317 Rangareddi 3323.16 -488.55 103.27 0.00 150.70 0.83 401.5018 Srikakulam 20907.50 -16160.44 911.93 417.10 65.92 12.51 581.0519 Visakhapatnam 8156.98 -4769.95 347.28 340.85 87.03 0.00 445.2920 Vizianagaram 16615.01 -11503.46 646.84 357.22 1088.39 10.24 1097.0421 Warangal 937.49 0.00 0.00 172.57 0.00 2.09 56.6722 West Godavari 21110.84 -10647.78 23.06 54.74 1254.72 22.99 1450.02

505475.99 -247491.61 9076.76 8545.46 6724.63 1202.82 22333.01Total

STATEMENT No. 6 (1)

Rs.in LakhsStatement showing the Headwise Assets of Muncipal Councils for the year 2010-2011

Page 211

Sl.No.


Accumulated Provisions against

Debtors (Receivables)

(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

1 Adilabad 0.00 5.80 2826.36 107.54 0.00 28.08 36.06 17841.282 Anantapur 0.00 0.00 3496.05 435.86 100.84 0.00 0.00 35209.583 Chittoor 0.00 0.00 3818.94 307.60 359.31 9.64 0.00 25164.684 East Godavari 0.00 0.00 3049.26 157.24 0.00 0.00 0.00 20707.425 Guntur 0.00 3.85 7499.29 150.47 0.00 -0.09 0.00 35901.316 Kadapa 0.00 0.00 3792.28 2.79 21.85 0.90 0.05 23542.727 Karimnagar 0.00 0.00 1275.45 61.03 0.00 1.99 0.00 12945.258 Khammam 0.00 0.00 3677.55 116.89 0.00 0.00 0.00 20059.439 Krishna 0.00 0.00 1381.52 48.84 0.00 0.00 0.00 5758.5510 Kurnool 0.00 0.00 4033.51 587.47 1.37 1.49 0.00 43174.2511 Mahbubnagar 0.00 0.00 1009.06 3.53 0.00 0.00 0.00 14501.4412 Medak 0.00 32.80 786.92 66.37 0.00 1.95 0.00 9190.2813 Nalgonda 0.00 0.00 1575.25 16.20 0.00 5.15 0.00 24473.2114 Nellore 0.00 0.18 1125.26 25.83 0.00 4.52 0.08 6414.1915 Nizamabad 0.00 0.00 1222.14 37.13 118.29 41.20 32.52 6251.8216 Prakasam 0.00 1.22 5679.77 124.46 0.20 18.04 2.73 16476.8917 Rangareddi 0.00 0.00 1305.92 3.18 0.00 0.00 0.00 4800.0118 Srikakulam 0.00 0.00 2083.90 69.10 0.00 0.00 0.00 8888.5719 Visakhapatnam 0.00 0.00 1094.99 48.11 0.00 0.00 0.00 5750.5920 Vizianagaram 0.00 0.00 2431.34 54.48 0.00 0.00 0.00 10797.0921 Warangal 0.00 0.00 516.07 3.80 0.00 0.12 0.00 1688.8022 West Godavari 0.00 0.60 4243.43 -39.96 0.00 1.45 0.00 17474.10

0.00 44.44 57924.26 2387.95 601.86 114.46 71.43 367011.47Total

STATEMENT No. 6 (2)

Rs.in LakhsStatement showing the Headwise Assets (Balance Sheet) of Muncipal Councils for the year 2010-2011

Page 212

Sl.No.


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 Adilabad 9210.47 398.88 73.55 3784.52 3449.95 0.00 204.46 0.00 719.44 0.00 17841.282 Anantapur 28178.21 714.82 1.46 4121.65 827.94 274.15 348.27 0.00 741.80 1.28 35209.583 Chittoor 20248.41 -106.66 0.00 2839.49 -25.00 570.78 279.83 0.00 1277.65 80.18 25164.684 East Godavari 17963.42 107.71 -38.61 1580.13 79.39 0.00 178.90 0.00 825.02 0.00 20695.975 Guntur 22743.12 828.78 223.86 4415.07 895.25 1113.17 266.81 -55.47 5282.76 0.06 35713.416 Kadapa 18283.67 -32.13 0.00 4213.77 206.48 211.45 275.82 0.00 173.35 211.19 23543.607 Karimnagar 9991.89 110.42 0.00 1610.65 0.00 64.02 211.86 0.00 956.41 0.00 12945.258 Khammam 15195.60 14.12 0.00 3272.05 6.37 503.42 285.64 0.00 780.66 0.00 20057.869 Krishna 3828.75 2.28 0.00 467.70 1271.64 0.00 133.64 0.00 54.53 0.00 5758.5510 Kurnool 34862.85 84.15 0.00 2480.36 0.00 4661.05 494.42 0.00 554.74 36.68 43174.2511 Mahbubnagar 10223.86 24.99 0.00 1377.71 1224.56 86.19 128.39 0.00 1435.74 0.00 14501.4412 Medak 5315.24 261.32 444.46 1035.83 1124.93 0.00 207.27 0.00 736.53 0.00 9125.5713 Nalgonda 21357.08 44.63 354.67 926.58 0.00 1182.10 170.11 0.00 438.05 0.00 24473.2114 Nellore 3864.57 -68.71 7.89 1745.01 0.00 0.00 46.13 1.65 817.64 0.00 6414.1915 Nizamabad 3335.38 -17.61 14.54 2177.99 33.39 344.56 22.89 0.00 339.26 1.42 6251.8216 Prakasam 8148.05 1067.59 702.00 3035.00 2177.01 284.74 209.33 0.00 777.38 0.00 16401.0817 Rangareddi 3412.14 20.22 654.16 608.30 82.73 0.00 2.48 0.00 19.98 0.00 4800.0118 Srikakulam 6545.42 158.01 1.53 947.46 -0.14 0.00 117.79 0.00 1118.50 0.00 8888.5719 Visakhapatnam 3754.19 3.97 0.00 605.40 0.00 705.97 33.81 0.00 647.24 0.00 5750.5920 Vizianagaram 7035.09 88.73 0.00 2522.94 26.51 0.00 108.27 0.00 1015.55 0.00 10797.0921 Warangal 1145.72 0.00 0.00 402.78 0.28 102.59 23.20 0.00 14.23 0.00 1688.8022 West Godavari 12842.02 44.72 3.61 1803.12 1973.70 0.00 216.97 0.00 571.50 18.47 17474.10

267485.15 3750.22 2443.13 45973.50 13355.00 10104.20 3966.28 -53.82 19297.96 349.28 366670.89

Statement showing the Headwise Liabilities (Balance Sheet) of Muncipal Councils for the year 2010-11

Total

STATEMENT No. 7

Rs.in Lakhs

Page 213

Sl.No. Name of the category No. Amount

1 Variation in Account Figures 138 101.10

2 Excess Utilisation of Grants / Funds 37 1.16

3 Diversion of Grants / Funds 53 530.92

4 Non-utilisation of grants before the lapsable date 38 246.32

5 Mis-utilisation of Grants / Funds 4 2.54

6 Non- utilisation of Earmarked Funds 23 0.00



9 Violation of Rules 1403 1299.40

10 Non remittance of deduction recoveries from work bills / pay bills / contingent bills etc., 258 1022.26

11 Non Production of Records 2009 8022.11

12 Misappropriations 60 210.10

13 Excess Payments 153 68.22

14 Wasteful Expenditure 33 48.76

15 Instances of cases of unaccounted for cash /stores 5 1.84

16 Pendency of Utilisation Certificates 32 0.00

17 Surcharges Certificates- Recovery Pending 0 0.00

18 Others 1026 720.57

19 D.D. Cheques received but not realized with in time 0 0.00

Total 5774 15800.45

CONSOLIDATED STATEMENT SHOWING NUMBER OF AUDITOBJECTIONS RAISED (CATEGORY WISE) AND AMOUNT INVOLVED


STATEMENT No. 8

Rs. in Lakhs

Page 214

No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs.1 Adilabad 4 16.75 2 0 8 54.7 4 0 0 0 3 0 13 236 7 3.67 95 97.05 35 227.532 Anantapur 15 0 4 0 4 0 4 0 0 0 2 0 42 248 7 11.56 86 26.21 11 63.323 Chittoor 2 0 6 0 1 0 0 0 0 0 0 0 37 310.6 17 6.72 75 20.421 9 22.214 East Godavari 1 0 5 0 3 37.67 0 0 0 0 5 0 27 10.88 27 101.1 110 82.21 25 18.495 Guntur 9 2.31 1 0 6 194.02 4 0 0 0 0 0 15 15.88 4 5.89 57 41.13 24 54.676 Kadapa 35 1.86 7 1.16 8 13.26 4 23.92 0 0 0 0 42 76.49 22 41.7 216 99.252 20 31.8787 Karimnagar 0 0 0 0 1 8.96 1 0 0 0 2 0 4 89.95 1 2.79 49 8.303 10 19.4118 Khammam 3 0 0 0 1 7.33 3 0 0 0 2 0 7 39.35 1 2.74 20 37.12 18 51.199 Krishna 2 0 0 0 0 0 1 0 0 0 2 0 6 592 3 5.8 31 1.89 6 125.7610 Kurnool 4 20 1 0 1 15 4 128.4 0 0 1 0 44 922.2 2 32.25 76 237.46 8 31.111 Mahbubnagar 2 0.29 0 0 2 146.28 0 0 0 0 0 0 6 7.59 1 7.53 7 19.77 6 8.7712 Medak 7 0 2 0 8 51.14 1 0 0 0 3 0 12 29.55 3 3.7 68 238.71 14 40.813 Nalgonda 0 0 0 0 0 0 1 0 1 0 0 0 17 207.7 3 4.13 36 190.6 9 42.714 Nellore 4 0 1 0 1 2.56 0 0 0 0 1 0 12 0 3 0 52 1.77 5 66.6115 Nizamabad 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 016 Prakasam 8 0 2 0 6 0 1 0 0 0 0 0 13 2.54 7 8.14 86 14.75 14 79.1717 Rangareddi 3 0 2 0 1 0 0 0 0 0 2 0 5 14.99 2 4.61 15 51.12 6 7.6818 Srikakulam 10 0.27 0 0 0 0 7 72.33 0 0 0 0 25 285.8 12 17.22 169 40.86 20 100.3619 Visakhapatnam 1 0 0 0 0 0 0 0 0 0 0 0 1 70.22 1 1.74 1 0.15 1 4.3120 Vizianagaram 7 4.317 1 0 1 0 1 0 1 0 0 0 29 46.85 5 14.69 118 65.28 2 0.3921 Warangal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 022 West Godavari 21 55.3 3 0 1 0 2 21.7 2 2.54 0 0 14 32.06 3 10.5 36 25.34 15 25.91

Total 138 101.1 37 1.16 53 530.92 38 246.3 4 2.54 23 0 371 3239 131 286.4 1403 1299.4 258 1022.3

Non-remittance of deduction /

recoveries (10)

Non-utilisation

of Earmarked

(6)


(7)

Advances pending

adjustment(8)

Violation of Rules

(9)

STATEMENT 8 (1)STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED (DIST AND CATEGORY WISE)

AND AMOUNT INVOLVED FOR THE YEAR 2010-11Rs. In lakhs

Sl.No.



(1)

Excess Utilisation

of Grants/Funds(2)


(3)



(4)


(5)

Page 215

No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs. No Rs.1 Adilabad 45 57.91 4 0.19 4 0.17 4 4.77 0 0 1 0 0 0 84 334.45 0 0 313 1033.152 Anantapur 221 771.8 14 5.23 4 1.59 1 6 0 0 1 0 0 0 63 40.74 0 0 479 1174.493 Chittoor 138 292.235 0 0 23 13.01 2 4.08 1 0 0 0 0 0 30 0 0 0 341 669.2634 East Godavari 315 1008.97 1 1 30 7.93 7 2.21 0 0 5 0 0 0 203 36.53 0 0 319 1492.025 Guntur 141 1110.67 3 65.61 7 1.81 1 0.03 0 0 1 0 0 0 46 0 0 0 727 920.7686 Kadapa 238 604.697 6 10.23 43 11.83 4 4.491 0 0 5 0 0 0 77 0 0 0 764 1306.947 Karimnagar 15 54.23 2 0.47 1 0.23 1 0.003 0 0 1 0 0 0 14 0.73 0 0 102 185.0778 Khammam 10 60.02 2 1.6 2 0.16 0 0 0 0 1 0 0 0 15 0.82 0 0 85 200.339 Krishna 66 119.74 0 0 1 0.06 0 0 0 0 1 0 0 0 23 0 0 0 142 845.2410 Kurnool 94 532.57 6 9.17 2 0.04 0 0 4 1.84 1 0 0 0 45 156.17 0 0 293 2086.211 Mahbubnagar 44 156.97 0 0 1 0.19 1 3.07 0 0 0 0 0 0 2 0 0 0 72 350.4612 Medak 80 770.26 18 100.29 19 7.11 5 18.49 0 0 3 0 0 0 52 107.28 0 0 295 1367.3313 Nalgonda 28 87.04 0 0 1 2.97 1 1.96 0 0 1 0 0 0 42 4.3 0 0 140 541.4414 Nellore 109 981.31 0 0 0 0 0 0 0 0 3 0 0 0 50 0 0 0 241 1052.2515 Nizamabad 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 016 Prakasam 87 482.06 0 0 0 0 1 0.54 0 0 0 0 0 0 79 0 0 0 304 587.217 Rangareddi 20 156.59 0 0 5 0.99 0 0 0 0 0 0 0 0 34 16.71 0 0 95 252.6918 Srikakulam 152 531.34 0 0 3 15.31 1 0.83 0 0 5 0 0 0 86 20.54 0 0 490 1084.8819 Visakhapatnam 1 51.91 0 0 1 0.44 1 0 0 0 0 0 0 0 1 0 0 0 9 128.7720 Vizianagaram 116 74.66 0 0 6 4.38 2 0.89 0 0 1 0 0 0 34 0 0 0 324 211.45921 Warangal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 022 West Godavari 89 117.13 4 16.31 0 0 1 1.4 0 0 2 0 0 0 46 2.3 0 0 239 310.49

Total 2009 8022.11 60 210.10 153 68.22 33 48.76 5 1.84 32 0.00 0 0.00 1026 720.57 0 0.00 5774 15800.45

Others(18)

D.D. Cheques received but not realized with in time

(19)

Total

Pendency of Utilisation Certificates

(16)

Surcharges Certificates-

Recovery Pending

(17)

STATEMENT 8 (2)STATEMENT SHOWING THE CONSOLIDATED AUDIT OBJECTIONS RAISED (DIST AND CATEGORY WISE)

AND AMOUNT INVOLVED FOR THE YEAR 2010-11


(14)


unaccounted for cash /stores(15)

Misappropriations

(12)

Excess Payments

(13)

Non Production of Records

(11)

Rs. In lakhs

Sl.No.


Page 216

PART - IV



PART – IV


AGRICULTURE MARKET COMMITTEE FOR THE YEAR 2010-11


PART – IV

SECTION – I

S.No. DESCRIPTION PAGE No.


2 A few selected Audit Paras – Category wise 221-239

SECTION – II

STATEMENT No.

DESCRIPTION OF STATEMENTS FOR THE YEAR 2010-11 OF AMCs

PAGE No.

1 Status of Audit of AMC (District wise) 240

2 (1) Receipts and Payments of AMC (District wise) 241

2 (2) Receipts and payments of AMC with break up (Receipts Heads)

242

2 (3) Receipts and payments of AMC with break up (Payments Heads)

243

3 (1) Consolidated Category Wise Audit Objections 244

3 (2) 1 Consolidated Dist. and Category Wise Audit Objections

245

3 (2) 2 Consolidated Dist. And Category Wise Audit Objections

246

CONTENT

SECTION - I

217

CONSOLIDATED AUDIT AND REVIEW REPORT ON THEACCOUNTS OF AGRICULTURAL MARKET COMMITTEES FOR THE YEAR 2010-11

INTRODUCTION

1.1 Under the A.P State Audit Act, 1989, the Director of State Audit, A.P. Hyderabad is

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 319 in the year 2010-11.

1.2 The Department conducts post-audit of the AMCs and Audit Reports are issued to the Secretaries of the AMCs concerned, who have to take action for rectifying the defects pointed out in the Audit Report within the period of two months as per Section 9 (1) of the State Audit Act. The department also conducted pre-audit of all the Expenditure bills in respect of AMCs during the year 2010-11 in accordance with the orders issued in Govt. Memo.No.28801/581/A1/Admn.II/2007, Dt.29-2-2008.

1.3 Under section 10 (1) of 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 works under the Finance Department of Government of

Andhra Pradesh and observes whether financial propriety has been followed by Executive Agencies in its day to day financial administration, as follows:

i) Whether the Market fee, License fee and other amounts like leases/rents etc.,

collected by the AMCs were properly accounted for with full details in the books of accounts of the AMC concerned

ii) Whether an adequate care is taken in periodical checking up of the funds with Treasury or Bank.

iii) Whether the expenditure incurred is provided in budget and availability of funds duly checking up of the funds with Treasury or Bank.

iv) Whether the funds are utilized only for the permitted purposes prescribed under the A.P. (Agriculture Produce and Live Stock) Markets Act/ 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 AMC.

vi) Whether the vouchers for the expenditure incurred were maintained.

218

STATUS OF AUDIT

3.1 The current audit of 319 AMCs out of 319 AMCs for the year 2010-11 was conducted in the year.

3.2 The Department has conducted the audit of the receipts amounting to Rs.58,302.22

lakhs and payments of Rs.43,636.36 lakhs as detailed in the Statements No. 2 (2) to 2 (3) with a District-wise break up.

3.3 The pie chart of proportional percentages of Receipts and Payments of AMCs during

the year 2010-11 is placed below.

PIE Chart of Receipts in AMC for 2010-11

0.28%

0.03%

2.21%

0.25%

0.11%

2.09%

1.50%

2.32%

6.44%

77.35%

7.43%Market Fee 77.35%

License Fees 0.28%

Late Fees 0.03%

Property Rental Fees2.21%Interest On Investment0.25%Auctions 0.11%

Income from MiscSources 2.09%Deposits 1.50%

Loan 7.43%

Advances 2.32%

Grant In Aid / Others6.44%

219

PIE Chart of Payments of AMC for 2010-11

21.64%

17.80%

0.25%

0.53%22.23%0.73%

9.24%

3.54%

4.53%

4.10%

1.59%

13.81%

Salaries 21.64%

Other Admin Expenditure 17.80%

Law Charges 0.25%

Acquition of Properties 0.53%

Development Works 22.23%

Furtniture & Vehicles etc., 0.73%

10% Contribution to CMF 9.24%

Repayment of Loans 3.54%

Others 4.53%

Advances 4.10%

Deposits 1.59%

Other Granting-in-aid 13.81%

TREND OF RECEIPTS AND PAYMENTS OF AMCs 3.4 The receipts and payments of AMCs for the years 2009-10 and 2010-11 are as follows.

Trend of Receipts & Payments in AMCs for 2010-11

466.56

363.40

583.02

436.36

0

100

200

300

400

500

600

700

Receipts Payments

2009-102010-11

As shown above, there is an increase in the Receipts and Payments from the year 2009-10 to 2010-11. There is noteworthy increase in receipts.

220

AUDIT OBJECTIONS 4.1 During the course of audit of the AMCs for the year 2010-11, various defects noticed

were 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 AP State Audit Act.

4.2 A total number of 4,741 audit objections involving an amount of Rs.8,851.77 lakhs

were raised in the audit of the AMCs during the year 2010-11. 4.3 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(2) 1 & 3(2) 2.

STATEMENT SHOWING NUMBER OF AUDIT OBJECTIONS RAISED

(CATEGORY WISE) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs In Lakhs

# Name of the Category No. Amount % on Amount

1 Violation of rules 1444 2107.25 23.81 2 Non-collection of dues 459 1744.31 19.71 3 Non production of records 829 1631.91 18.44 4 Others 899 1387.08 15.67 5 Advances pending adjustment 289 924.37 10.44 6 Excess Utilisation of Grants/Funds 82 329.06 3.72 7 Variation in Account figures 130 228.36 2.58 8 Diversion of Grants/Funds 52 225.87 2.55

9 Non-remittance of deductions/ recoveries from work bills/ pay bills/ contingent bills etc. 324 163.39 1.85

10 Pendency of Utilisation certificates 9 63.58 0.72 11 Excess payments 163 20.5 0.23 12 Mis-appropriation/Fraud 35 7.5 0.08 13 Non-utilisation of Earmarked funds 4 7.38 0.08 14 Non-utilisation of Grants before lapsable dates 4 4.67 0.05 15 Wasteful expenditure 7 4.6 0.05

16 Instances of cases of unaccounted Cash / Stores 10 1.94 0.02

17 Mis-utilisation of Grants/Funds 0 0 0.00 18 Surcharge Certificates - Recovery pending 1 0 0.00

19 DD/Cheques received but not realized within time. 0 0 0.00

Total 4741 8851.77 100 4.4 Major part of objections constitutes Violation of Rules which constitutes 23.81%

followed by Non collection of dues which constituted 19.71%. Violation of rules is significant as 1,444 numbers of objections were raised casting its effect on functioning as Rs.21 Crores expenditure involved in all AMCs in the State.

221

AUDIT PARS

Gist of some of the selected audit objections pertaining to the year under report is placed below:

1. VARIATION IN ACCOUNT FIGURES (CODE 1)

It was observed in audit that there are variations in Annual Account figures

between the Treasury Pass Book and Cash Book of Executive Agencies viz.

i. Non-tallying of Closing balance of cash book as on 31-03-2010 and opening balance as on 01-04-2010.

ii. Non-tallying of Closing balance of Cash book as on 31-03-2011 and closing balance of Treasury Pass Book as on 31-03-2011.

iii. Non-crediting of Receipts into the Treasury Pass Book by the Treasury Authorities.

iv. Receipt credited in the Cash Book by remittance through Challans is not credited in the Treasury Pass book by the Treasury authorities.

v. Debiting the cheques issued by one DDO to another DDO by Treasury authorities. vi. 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.

vii. Wrong totaling of credits and debits either by DDO or Treasury. viii. 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. A consolidated statement No. 3(2) 1 of Variation in Account figures is appended to the Report from which it could be seen that Variation in Account figures of Rs.228.36 lakhs was pointed out in 130 number of audit paras.

1.1 DISCREPANCY BETWEEN CASH BOOK TREASURY BALANCE AND

TREASURY PASS BOOK BALANCE – NOT RECONCILED – Rs.90,14,930/- In the following AMCs, the Cash Book Treasury balance and the Closing balance

as per Treasury Pass Book as on 31-3-2011 and the differences/discrepancies between Cash Books and Pass Books shown in column number 6 amounting to Rs.90,14,930/- was not reconciled, i.e., Reconciliation as on 31.03.2011 was not done. Immediate action would need to be taken to rectify the differences/discrepancies in consultation with Treasury Authorities and reconcile the balances between cash book and pass book as on 31.03.2011.

# Name of the AMC

Balance as on

As per Cash Book

Treasury column

As per Treasury

Book/Bank

Difference Para No.

1. Ibrahimpatnam, RR district

31.3.2011 1,08,16,077 1,14,08,944 5,92,867 1

222

2. Boinpally, Hyderabad

31.3.2011 4,03,67,275 3,89,02,284 14,64,991 5

31.3.2010 CB5,06,02,828 3. Boinpally, Hyderabad 1.4.2010 OB5,75,19,082

69,16,254 2

4. Tandur, RR District

40,818 3

Total 90,14,930

2. EXCESS UTILIZATION OF GRANTS / FUNDS (CODE 2)

It is observed that AMCs have excess utilized grant/funds than the budget provision without sanction of the competent authority. Such expenditure incurred has to be ratified by the authority competent in that regard. A consolidated statement No. 3(2) 1 of Excess Utilization of grants/funds is appended to the Report from which it could be seen that Excess Utilization of grants/funds of Rs. 329.06 lakhs was pointed out in 82 number of audit paras. 2.1 EXPENDITURE INCURRED IN EXCESS OF BUDGET PROVISION

The following AMCs have incurred expenditure in some of the Heads in excess of the approved Budget as shown under. The ratification of the Commissioner & Director of Marketing as required under Rule 83 of AP Market Rules 1969 issued vide GO Ms No 1900 F&A Department dated 17.10.1969 should be obtained. # District AMC Nature of

Expenditure Budget

Allotment Actual

Expenditure Incurred

Excess Expenditure

Para No.

1 Guntur Tadikonda Animal Health Camp

Nil 80,000 80,000 1

2 Guntur Piduguralla Payment of Pensions

Nil 11,87,000 11,87,000 3

3 SPSR Nellore

Kavali Payment of Pensions

20,00,000 22,60,000 2,60,000 5

4 SPSR Nellore

Athmakuru Payment of Pensions and Electrical Deposits

2,10,000 5,87,000 3,77,000 5

Pay and Establishment

1,11,00,000 2,57,41,736 1,46,41,736

Wages to Security Guards

32,74,000 33,76,785 1,02,785

5 Warangal Warangal

Wages to Data Entry Operators

1,07,000 1,16,090 9,090

2

Pay and Establishment

5,47,000 9,01,250

DA 2,32,000 3,93,559 HRA 55,000 66,768

6 Warangal Cherial

Daily Wages 1,40,000 1,41,024 1,024

2

223

Payment of Pension

13,98,000 15,28,749 1,30,749 3 7 Ranga Reddy

Tandur

Wages to Security Guards

4,55,000 4,82,223 27,223 2

DA to Employees

10,00,000 10,94,773 94,773 8 Adilabad Bhainsa

IR to Employees

0 1,13,048 1,13,048

3

Wages to Security Gaurds

2,65,000 2,77,632 12,632

Available Savings

0 1,30,215 1,30,215

9 Adilabad Indravelli

Income Tax 0 3,66,213 3,66,213

4 4

House Rent 1,00,000 1,04,310 4,310 POL Charges 20,000 22,108 2,108 Wages to Security Guards

1,35,000 1,57,546 22,546

Wages to Data Entry Operators

0 24,632 24,632

10 Adilabad Jainath

Purchase of Equipment

0 33,180 33,180

3. DIVERSION OF GRANTS/FUNDS (CODE 3)

During scrutiny of records in audit, it was noticed that expenditure was incurred as diversion of grants from one head to another head which amounted to incurring expenditure without sanction from the competent authority. Such expenditure incurred has to be ratified by the authority competent in that regard.

A consolidated statement No. 3(2) 1 of Diversion of Grants/Funds is appended to the Report from which it could be seen that Diversion of Grants/Funds of Rs.225.87 lakhs was pointed out in 52 audit paras. 3.1 AMC ADILABAD - EXPENDITURE INCURRED ON KALAJATHA

WITHOUT BUDGET PROVISION – AMOUNT DIVERTED FROM OTHER HEADS – AMOUNT HELD UNDER OBJECTION – Rs.2,88,000/-

An amount of Rs 2,88,000/- was drawn and paid to Abhyudaya Kalaranjani,

Hyderabad towards Kalajatha Programme. There is no budget provision under Kalajatha Head which was paid from the other Heads. The payment of expenditure from one head to another head is not permitted without the permission of the Commissioner & Director of Marketing, AP Hyderabad. Hence the entire expenditure is held under objection.

(Para No.31 of AMC, Adilabad for 2010-11)

224

4. NON COLLECTION OF DUES (CODE 7)

During scrutiny of records, it was noticed that dues viz. electrical consumption charges, Market fee, shop rents & Leases etc., were not collected properly in the AMCs.

A consolidated statement No. 3(2) 1 of Non-collection of dues is appended to the

Report from which it could be seen that an amount of Rs.1744.31 lakhs was not collected which was pointed out in 459 number of audit paras. A few such paras are detailed below 4.1 NON-COLLECTION/SHORT COLLECTION OF DUES – NEEDS

RECOVERY - Rs.3604.70 lakhs Various dues such as CC Charges, Market Fees, Shop Rents, Godown Rents &

Leases etc., were not collected properly in the AMCs and the following are some of the AMCs which failed to collect the dues to a tune of Rs 3604.70 lakhs during the year 2010-11. Action would need to be taken immediately to realize the dues from the concerned.

# District AMC Particulars Amount (Rs.) Para 1 Guntur Piduguralla Market Fee 5,00,000 4 2 SPSR Nellore Kavali Market Fee 7,21,000 6 3 Chittoor Srikalahasti Market Fee 3,94,000 5 4 Krishna Vijayawada Market Fee 35,36,96,065 7 5 Prakasham Kandukuru Market Fee 5,02,000 2 6 Guntur Guntur Lease Amount

from Andhra Bank

5,77,000 8

7 Visakhapatnam Narsipatnam Shop Rents 1,02,000 7 8 Vizianagaram Gajapathinagaram Market Fee 5,73,000 7 9 Warangal Warangal Shop Rents 6,25,000 3 10 Kurnool Nandyala Godown Rents 2,28,000 3 11 Adilabad Adilabad RCC Godwon

Rent 13,33,000 23

12 Medak Medak Shop Rents 2,27,000 6 13 Ranga Reddy Boinpally Shop Rents 14,92,000 8 Total 36,04,70,065

4.2 AMC, GADDIANNARAM,HYDERABAD - COLLECTION OF MARKET

FEE THROUGH CHEQUES - CHEQUES RETURNED BY THE BANK DUE TO- INSUFFICIENT BALANCE - LOSS TO AMC FUNDS - NEEDS RECOVERY - Rs.6,43,935/-

As per the Cheques and Demand Drafts Received Register, cheques amounting to Rs.6,43,935/- were received towards Market fee from the traders and also issued money value receipts to the concerned agencies and the said cheques were deposited in the Bank to credit into AMC funds. But the Bank authorities have returned the cheques due to insufficient balances in the accounts of the agency concerned. The Executive Authority has not initiated any steps for collecting the cheques amount for Rs.6,43,935/-. Therefore loss is caused to Market funds.

(Para No.3 of AMC Gaddiannaram, Hyderabad for 2010-11)

225

5. ADVANCES PENDING ADJUSTMENT (CODE 8)

It was observed during the course of audit that temporary advances paid for specific purpose were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as soon as possible as per Article 99 of the A.P. Financial Code. Non-settlement of advances leads to misuse of advances. Several objections were raised on such outstanding advances in the relevant audit reports pointing out failure of the executive authorities in taking necessary action to get these advances adjusted.

A consolidated statement No. 3(2) 1 of Advances pending adjustment is appended to the Report from which it could be seen that Advances pending adjustment of Rs.924.37 Lakhs was pointed out in 289 audit paras.

5.1 ADVANCES -NOT ADJUSTED – NEEDS RECOVERY – Rs.23.24000/-

An amount of Rs.23.24 lakhs as shown below was not adjusted to till the date of

close of the Audit. As per Article of 177 of A.P. Financial Code, no advances should be made to the contractor for execution of civil works.

# Name of the AMC Loan given to Purpose of loan Amount

(Rs.) Para No.

1 Jogipeta, Medak district

Sri G. Anil Reddy, Contractor

Construction of Godown

10,00,000 9

2 Gadwal, Mahaboobnagar district

Secretary Cash Balance 54,000 24

3 Kubeer, Nizamabad district

Executive Engineer, AMC, Nizamabad

Construction of Weigh Bridge

10,00,000 5

4 Bheemunipatnam, Visakhapatnam district

Staff Pay & Allowances & Advances

77,000 3

5 Warangal Staff HBA 1,93,000 5,10,31 Total 23,24,000

5.2 LOAN SANCTIONED TO VARIOUS OFFICES - NOT RECOVERED

FULLY – NEEDS RECOVERY – Rs 2,939.25 Lakhs The following amounts were sanctioned as loans and paid to the various institutions from the AMCs during the year. Hence total outstanding amount Rs.2939.25 lakhs would need to be recovered along with interest and adjusted to the AMC funds. # Name of the AMC Name of the

institution to which loan was given

Purpose of Loan Amount in lakhs of

Rs.

Para No.

1 Tadepalligudem, West Godavari dist.

AMC, Gaddiannaram,

Hyderabad.

Acquisition of Land at Pedda Ambarpeta

80.00 22

226

2 Visakhapatnam AMC, Gaddiannaram,

Hyderabad.

Acquisition of Land at Pedda Ambareta

80.00 10

3 Bodhan, Nizamabad

Cultivators Short Term Loans, Godown Rent and Insurance Interest

44.25 3

AMC Anankapalli 100.00 AP Mark Fed 1716.00 AP Oil Seed Federation

300.00

AMC Ipur 16.00 AMC Narasaraopet 90.00

Collector West Godavari

100.00

AMC Tadipatri 50.00

4 Guntur

AMC Kadapa

Advance/loan

280.00

AMC Shadnagar 5.00 AMC Parigi

AMC Marpally 5.00

5.00

AMC Vikarabad 5.00 AMC

Ibrahimpatnam 3.00

5.00

5 Tandur, Ranga Reddy

AMC Shankarpally

6 Medak Vatpally RDO Medak 55.00 Total 2939.25 5.3 RYTHU BANDHU PATHAKAM – LOANS NOT RECOVERED FROM

LOANEES – NEEDS RECOVERY – Rs.43,46000/-

In the following AMCs, the farmers were sanctioned loans amounting to Rs.43.46 lakhs under Rythu Bandhu Pathakam as per the Guidelines issued in GO Ms No 601 Agriculture Co-operative (Market -II) Department dated 01.12.1993 to produce the seasonal crops, which shall be recovered within 90 days and up to another 90 days with interest with the permission of the Director of Marketing.

But the Rythu Bandhu Pathakam Loans were not recovered /realized within the

above stipulated time and also the Stock stored by the farmers in the Godowns was being allowed to be stored for more than 6 months. # District AMC Particulars Amount Para No. 1 Guntur Mangalagiri Outstanding Loan of RBP 20,06,000 3 2 SPSR Nellore Athmakuru -do- 7,90,000 9 3 Guntur Phirangipuram -do- 5,99,000 2 4 Prakasham Kandukuru -do- 4,89,000 8 5 Visakhapatnam Chowdavaram -do- 42,000 4 6 YSR Kadapa Allagadda -do- 4,20,000 7 TOTAL 43,46,000

227

5.4 HBA (REPAIRS) SANCTIONED – INTEREST LESS CALCULATED – DIFFERENCE OF INTEREST - NEEDS RECOVERY – Rs.55,052/-

An amount of Rs.50,000/- was sanctioned to Sri M. Pochaiah, Watchman and Rs.3,00,000/- was sanctioned to Sri Robinson, Supervisor towards House Building Advance (Repairs). Though the Advance was recovered fully, the Interest Amount was not recovered at the appropriate rate fixed by the Government vide GO Ms No 217 Fin &Plg ( FW:A&L) Department dated 28.04.1994. The sanction proceedings and relevant records are not produced to audit for verification. Therefore, immediate action would need to be taken to recover the difference interest amount of Rs.55,052/- besides recovering the already calculated interest amount.

# Name of the

Employee Advance

Sanctioned (in Rs)

Total No. of Installments

Actual Interest to

be recovered

Interest recovered

Difference to be

recovered

1 Sri M Pochaiah Watchman

50,000 100 16,833 9,031 7,802

2 Sri Robinson, Supervisor

3,00,000 125 1,33,875 86,625 47,250

Total 3,50,000 1,50,708 95,656 55,052

(Para no 37 & 41 of AMC, Warangal for 2010-11)

6. VIOLATION OF RULES (CODE 9)

It was noticed in audit that in some cases the Rules and Government instructions for incurring expenditure from the funds of the AMCs were violated either due to negligence or ignorance. At times, the funds of the AMCs were utilised for purposes other than the permitted ones under the Act / Rules. It was also noticed that in a few cases Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected to in the relevant audit reports.

A consolidated statement No. 3(2) 1 of Violation of Rules is appended to the Report from which it could be seen that Violation of Rules of Rs.2,107.25 lakhs was pointed out in 1,444 audit paras.

6.1 AMC VISAKHAPATNAM - EXPENDITURE INCURRED TOWARDS

PURCHASE OF FAX MACHINE TO JD OFFICE, VISAKHAPATNAM –IRREGULAR – NEEDS RECOVERY Rs.79,707/-

An amount of Rs.79,707/- was drawn and paid vide voucher No.207 dt.1/2011 for purchase of FAX machine to O/o. JD, Agriculture Department, Visakhapatnam. But the expenditure thus incurred is irregular since it is done in violation of Section 15 of A.P. (Agricultural Produce & Live stock) Markets Act 1966, in which the purposes for which AMC funds can be utilized were prescribed.

(Para no 7 of AMC, Visakhapatnam for 2010-11)

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6.2 AMC WARANGAL - PURCHASE OF ITEMS AND PRINTING OF BOOKS – TENDERS NOT CALLED FOR – OBJECTED FOR Rs.11,35,200/-

An amount of Rs.11,35,200/- was drawn and incurred for purchase of printing and other items detailed below.

# Voucher No/ Date Purpose Amount (Rs.) 1 129/8-10-10 Dadvai Chitta Books 1,19,000 2 193/1/21-12-10 Expenditure for CC Camera 91,200 3 193/2/21-12-10 Expenditure for CC Camera 1,49,000 4 235/4/11-12-11 printing of Tak Patty Books 1,90,000 5 263/28-3-11 Purchase of Water Coolers 3,96,000 6 262/28-3-11 Printing of Tak Patty books 1,90,000

Total 11,35,200 It was observed in audit that neither tenders nor quotations were invited for the above purchases to derive benefit to the institution by obtaining lesser rates. Due to non production of Stock Register, it could not be ascertained whether such purchase of articles were distributed and utilized. Therefore the amount of Rs.11,35,200/- spent on the above purchases is held under objection.

(Para No.105 of AMC, Warangal for 2010-11)

6.3 AUDIT FEES FOR 2010-11 - NOT REMITTED - Rs.32,52,238/- According to the Govt. orders, the Market committees have to pay Audit Fee @ 0.375% (Memo Roc No. 15525/K/2007-08 dated 08.04.2009 of the Director of A.P. Hyderabad) to the Government on the Gross Expenditure after allowing certain exemptions mentioned therein, But the Audit Fee for the year 2010-11 amounting to Rs.32,52,238/- as detailed below has not been remitted to Government. Therefore action would need to be taken to remit the same to the following heads at an early date under intimation to Audit.

Major Head 0070 Other Administration Services Sub Major Head 060 Other Services Minor Head 110 Fee for Govt. Audit Sub Head 077 Other charges

# District AMC Audit Fee to be remitted (in Rs) for the year 2010-11

Para No.

1 Ananthapuram Tanakal 13,829 4 (a) 2 Adilabad Adilabad 1,36,256 19 3 Adilabad Nirmal 24,988 3 (ix) 4 Adilabad Bhainsa 1,87,705 10 5 Mahaboobnagar Gadwal 91,884 12 6 YSR Kadapa Mydukuru 26,576 2 7 Guntur Guntur 7,19,000 15 8 Guntur Paruchuru 40,000 2 (5) 9 SPSR Nellore Athmakuru 19,06,000 10

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10 SPSR Nellore Udayagiri 12,000 8 11 SPSR Nellore Naidupeta 20,000 7 12 SPSR Nellore Kavali 74,000 9 Total 32,52,238/-

6.4 AMC, NARAYANKHED - CONDUCT OF HEALTH CAMP (HUMAN AND

VETERINARY CAMP) -DETAILS OF EXPENDITURE NOT FORTHCOMING – HELD UNDER OBJECTION – Rs.70,000/-

A sum of Rs.70,000/- was drawn towards medicines for conduct of free health

camp for the farmers and live stock. It is not known from which pharmaceutical shops, the medicines were purchased and the utilization of the said medicines was also not produced to audit. In view of the above, the expenditure of Rs. 70,000/- could not be admitted in audit and is held under objection.

(Para No.9 of AMC Narayankhed, Medak District for 2010-11) 6.5 PAYMENT OF PENSIONS - AMOUNT NOT REIMBURSED –

Rs.39,92,411/-

During the course of audit, it is observed that a sum of Rs 39,92,411/- was spent towards payment of monthly pensions during the year 2010-11. The amount was not reimbursed from Government. Action would need to be taken to reimburse the said amount.

# District AMC Amount (Rs) Para 1 Medak Narayanakhed 46,105 13 2 Ranga Reddy Narsingi 2,52,289 3 Adilabad Bhainsa 8,98,953 4 4 Adilabad Adilabad 27,95,064 24 Total 39,92,411

6.6 PURCHASE OF FURNITURE – DURING THE BAN IMPOSED BY THE

GOVERNMENT– Rs.2,00,000/- An amount of Rs.2,00,000/- was drawn vide Voucher No.14 dated 15.03.2011 and paid to M/s Srinath Furnitures, Nampally towards Purchase of Furniture. The Government have imposed ban on purchase of Furniture from time to time. But contrary to the Government orders, the AMC Authorities purchased the Furniture. Further the payment was effected on the quotation bill supplied by the Firm which is also not valid. Hence, the expenditure of Rs 2,00,000/- could not be admitted in audit and needs to be recovered from the person or persons responsible and credited to the AMC funds.

(Para No.11 of AMC, Watpally Medak for 2010-11)

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7. 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 Government account within a prescribed time under the relevant statutory provisions which also include clauses for imposition of penalty as well as prosecution for non-adherence.

A Consolidated Statement No 3(2) 1 of Non-Remittance of Deductions/ Recoveries from Vouchers/Pay Bills/Contingent Bills are appended to the Report for Rs.163.39 lakhs was pointed out in 324 Audit Paras. 7.1 INCOME TAX RECOVERIES NOT REMITTED/PARTLY REMITTED –

Rs.1,87,565/-

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. Few cases are mentioned below:

# District AMC IT to be Remitted (Rs) Para 1 Guntur Repalle 7,000 7 2 Guntur Pidudguralla 10,000 9 3 Prakasham Maddipadu 6,000 10 4 Adilabad Nirmal 28,907 4 5 Ranga Reddy Medchal 48,175 5 6 Mahaboobnagar Wanaparthy 15,763 18 7 Nizamabad Gandhari 71,720 4 Total 1,87,565

7.2 VAT DEDUCTED BUT NOT REMITTED/ PARTLY REMITTED –

Rs.3,23,000/- As per rule 4(7) (b) of AP Value Added Tax Act 2005 and GO Ms No 880

Revenue (Estt) Department dated 27.01.2007 VAT @ 4% of turnover for all categories of other contracts not falling in the above mentioned category has to be recovered from the work bills and remitted to state funds within a week from the date of recovery failing which the Drawing Officer has to pay personally 24% penal interest besides remitting the amount to state funds. It was observed that VAT deducted at source from the work bills was not remitted to the state funds till the close of audit. Such irregularities noticed were

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pointed out in the relevant audit reports of the AMCs. A few of such cases are mentioned below.

# District AMC VAT to be Remitted (Rs.) Para 1 Guntur Piduguralla 18,000 9 2 Prakasham Maddipadu 22,000 11 3 Adilabad Nirmal 49,143 4 4 Ranga Reddy Medchal 86,026 5 5 Mahaboobnagar Wanaparthy 28,150 18 6 Nizambad Gandhari 1,19,681 4 TOTAL 3,23,000

7.3 SEIGNIORAGE FEE DEDUCTED BUT NOT REMITTED/ PARTLY REMITTED – Rs.1,29,718/-

As per GO Ms No 331, Industries and Commerce (M I) Department dated

21.06.2000, Seigniorage Fees or Dead Rent whichever is higher shall be recovered from the work bills on all Minor Minerals dispatched or consumed from the land at the rates specified in Schedule-I and Schedule-II annexed to the said G.O as the case may be and to be credited to the consolidated fund of State Government through the concerned Assistant Director of Mines & Geology of the District. However, it was observed that though the amounts were recovered from the work bills towards Seigniorage Fees, the same were either not remitted or partly remitted to State Funds till the close of audit. Such inaction was pointed out in the relevant audit reports of the AMCs. Some of such instances are listed below.

# District AMC Seigniorage fee to be Remitted (Rs.)

Para No.

1 Prakasham Maddipadu 14,000 12 2 Adilabad Nirmal 11,380 4 3 Ranga Reddy Medchal 27,709 5 4 Mahaboobnagar Wanaparthy 12,707 18 5 Nizamabad Gandhari 63,922 4 TOTAL 1,29,718

7.4 NAC CHARGES DEDUCTED FROM WORK BILLS BUT NOT

REMITTED – Rs 74,752/-

NAC charges deducted from work bills were not remitted till the close of audit as per G.O.Ms.No.116 TR & B (Roads-III) Dept, dt,19.05.2007. Such inaction of the Executive Authority was pointed out in the relevant audit reports and some such instances are shown below.

# District AMC NAC Charges to be Remitted (in Rs) Para 1 Guntur Piduguralla 1,000 9 2 Prakasham Maddipadu 1,000 13 3 Adilabad Nirmal 3,206 4 4 Adilabad Bhainsa 62,410 12 5 Ranga Reddy Medchal 5,377 5 6 Mahaboobnagar Wanaparthy 1,759 18 Total 74,752

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7.5 LABOUR CESS DEDUCTED FROM WORK BILLS BUT NOT REMITTED – Rs.93,885/-

Labour Cess deducted from Work Bills as per GO Ms No 1616 Education

Department dated 10.13.1954 was not remitted till the close of Audit. Such inaction of the Executive Authority was pointed out in the relevant audit reports and some such instances are shown below.

# District AMC NAC Charges to be Remitted (in Rs) Para 1 Guntur Piduguralla 4,000 9 2 Prakasham Maddipadu 6,000 13 3 Adilabad Nirmal 5,704 4 4 Adilabad Bhainsa 46,713 11 5 Ranga Reddy Medchal 31,468 5 Total 93,885

8. NON PRODUCTION OF RECORDS (CODE 11)

The AMCs have to exhibit effective financial management skills and maintain

sound accountability practices. All these functions would need to be reflected on the record when they were accounted for as per the provisions contained in various codes. These initial accounts are to be kept ready and should have to be produced to Audit for verification. Then only the transparency in incurring expenditure 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 the AMCs in the maintenance and production of records to audit was not properly discharged. Thereby the access to verify whether the expenditure incurred from public money was properly spent or could not be ascertained in audit to that extent. In spite of all guidelines and instructions, the DDOs of Agriculture Market Committees have failed to maintain the records and 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 was records relating to execution of works such as M Books, estimate files, 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 Audit Reports of the institutions concerned and their details are furnished hereunder. Further it is surprising to note that the heads of the institutions could not explain why the records could not be maintained in the office and not produced whenever they were sought to be produced to audit parties during their local visits.

A Consolidated Statement No.3 (2) 2 of Non-production of records are appended to the Report. Rs 1,631.91 lakhs was pointed out in 829 audit paras.

8.1 CONNECTED RECORDS, REGISTERS, LOG BOOKS, MEASUREMENT

BOOKS, CONNECTED FILES& ACKNOWLEDGEMENTS - NOT PRODUCED – Rs.20,70,447/- The records i.e., registers, log books, measurement books & connected files,

estimates, sanctions and Payees’ Acknowledgements if any were not produced to audit by the following AMCs noted against each, for verification. As such, it could not be

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verified whether the total amount of Rs. 20,70,447/- were credited to the respective accounts or not and utilized properly.

# District AMC Particulars Amount (Rs.)

Para No.

1 Nizamabad Kubeer Refund of Deposits 15,000 14 2 Prakasham Kandukuru Car Hire Charges – Tour

Programme and Log Book 68,000 5

3 Prakasham Kandukuru PF Part Final Withdrawals - Ledgers

2,66,000 11

4 SPSR Nellore Athmakuru Refund of EMD & FSD Registers

49,038 18

5 Adilabad Bhainsa Electrical Material Files and Stock Register

99,724 14

6 Adilabad Nirmal Paid Vouchers 14,00,000 5 7 Medak Sanga Reddy Construction of Check Post at

Kagnti – M Books and Files 30,000 6

8 Adilabad Adilabad Execution of Works – Connected Files and M Books

1,10,215 22

9 Visakhapatnam Visakhapatnam Providing Fencing with Gate and Pillars in Parking Place at Rythu Bazaar Seethammdhara – Connected Files and M Books

32,470 8

Total 2070447 8.2 AMC PARIGI - REPAYMENT OF NABARD LOAN - NO BUDGET

PROVISION AND PURPOSE NOT PRODUCED - NEEDS RECOVERY – Rs.14,00,000/-

An amount of Rs 14,00,000/- was drawn towards repayment of NABARD Loan

and credited to the Savings Account No.30201980566 of SBI, Gowliguda branch. But there is no budget sanction for repayment of NABARD Loan. Further, there is no evidence with the Executive Authority that the Bank transferred the same funds to NABARD or receipt from NABARD on repayment of Loan. Steps have to be taken to ascertain as to whether the amount diverted or utilized properly.

(Para no. 6 of AMC, Parigi, Ranga Reddy Dist for 2010-11)

8.3 AMC PARIGI - REPAYMENT OF CMF INTEREST - EXPENDITURE UNWARRANTED -DETAILS NOT PRODUCED – Rs.1,14,915/-

An amount of total Rs 1,14,915/- was drawn (Rs 1,00,000/- vide Voucher No 64 dated 20.07.2010 and Rs 14,195/- vide Voucher No 179 dated 31.01.2011) towards CMF interest for delay in payment of instalments. The reasons for delay in payment of installments resulting in payment of huge amount as interest were not specified to audit. The expenditure is unwarranted and amounts to wastage of AMC funds.

(Para No.4 of AMC, Pargi, Ranga Reddy Dist for 2010-11)

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9. MIS-APPROPRIATIONS (CODE 12)

Cases of misappropriation of money noticed in audit were pointed out in the audit

reports concerned. Number of misappropriations 35 paras is annexed in statement No.3 (2) 2 involving an amount of Rs.7.5 lakhs were pointed out. A few of such cases are given below:

9.1 AMC SADASIVAPETA - COLLECTED AMOUNT NOT TAKEN INTO

CASH BOOK – TEMPORARY MISAPPROPRIATION- NEEDS RECOVERY- Rs.26,620/-

An amount of Rs 26,620/-was collected from the Daily Cash Collection Books vide receipt No. from 7676 to 7740 by A. Laxmaiah, Supervisor. It was neither taken into cash book nor remitted to AMC funds. Therefore, it is construed that the amount of Rs 26,620/- is misappropriated. The same would need to be recovered from the person along with penal interest and credited to AMC funds.

(Para No. 20 of A.M.C. Sadasivapet, Medak Dist. for 2010-11)

9.2 COLLECTION OF MARKET FEES –NOT REMITTED - IRREGULAR- NEEDS REMITTANCE – Rs 59,856/-

In the following AMCs, the market fees total Rs.59,856/- was collected during the

year, but not remitted to the AMC funds, which is highly irregular and caused temporary misappropriation of market committee funds. The same shall be recovered from the person or persons responsible and remitted to funds. # District AMC Particulars Amount Para 1 Medak Zaheerabad Non-Remittance of Market Fee 20,275 14 2 Medak Sadashivapeta Non-Remittance of Market Fee 10,820 26 3 Mahaboobnagar Wanaparthy Non-Remittance of Market Fee 28,761 11 Total 59,856

10. EXCESS PAYMENTS (CODE 13)

A consolidated statement No. 3(2)2 of excess payments noticed in audit is appended to this report. 163 paras involving an amount of Rs.20.5 Lakhs were pointed out. A few of such cases are given below: 10.1 AMC SADASIVAPET - WORKS – MAINTENANCE OF OFFICE

BUILDING AND DRILLING OF BORE WELL – EXCESS PAYMENT – Rs. 82,855/-

Rs.53,790/- was drawn vide Vr. No. 36/25.5.2010, and paid to Sri.P.Manmada Rao of M/S. MR Construction Secunderabad towards maintenance of the office building and drilling of borewell at Marketyard, Sadashivapet, estimated. Cost of : Rs.2.00 Lakhs Construction Value was recorded as Rs.1,17,145/- in M.B. No. 23-B/09-10.Agreement No.28/09-10, dated: 19-9-2009.

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On verification of the agreement and tender schedule of the side works, it is noticed that the contractor work value quoted as Rs. 1,17,145/-. But payment was made at Rs. 2.00 lakhs as shown below.

Memo of the payment Total Value of Work Done - Rs. 2,00,000/- VAT Deducted - Rs. 7,798/- Rs. 1,92,202/- Deducted previous payment- Rs. 1,24,226/- Deducted gravel cost – Rs. 14,186/- Net - Rs. 53,790/- Contractor quoted Rs.1,17,145/-, payment was made for estimated cost of Rs. 2,00,000/-.which is highly irregular and excess payment would need to be recovered from the persons responsible.

(Para No.24 of A.M.C. Sadasivapet, Medak Dist. for 2010-11) 10.2 AMC SADASIVAPET - EXECUTION OF BALANCE WORK OF CC

ROAD – EXCESS PAYMENT – NEEDS RECOVERY – RS. 31,237/- A sum of Rs. 2,41,119/- was paid vide Vr.No. 96/11.8.2010, to Sri. Y. Durga Prasad, Contractor towards work bill for the execution of balance work of C.C road in front of Soil Testing Centre at Market Yard recorded in MB No 3-B/2010-11 page No 1 to 8.

On verification of Measurement book, relevant file and sanctioned estimate and schedule – A, it is noticed that the rate for the item of work CC (1:11/2:3) Mix using 40 MM Size HBG Metal 0.613 Cum and 20 MM Metal 0.307 Cum – Machine crushing metal as per SS-108 using 330 Kgs cement of 1-Cum including machine mixing concrete laying on position including cost and conveyance of all materials to site complete quantity of 68.14 cum finished item of work as per (S.S. No. 402) –per Cum @ Rs. 3205-33. But whereas the rate for such item of work was charged @ Rs. 3663-76 per cum as against Rs. 3205-33 per cum resulting in excess allowed @ Rs. 458-43 per cum. A total sum of Rs.31,237/- excess payment was made to the contractor due to excess rate allowed as shown below and the same needs to be recovered from the person responsible and credited to AMC Funds.

Admissible as per sanctioned rates 68.14 X 3205=33 = Rs.218411/- Already paid @ 68.14 X 3663=76 = Rs.249648 /- Excess paid = Rs. 31237/-

(Para 18 of A.M.C., Medak Dist. for 2010-11)

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10.3 AMC MEDAK - EXECUTION OF WORK – 9TH RAISED PLAT FORM AT MARKET YARD IN MEDAK – EXCESS PAYMENT DUE TO ALLOWING EXCESS RATE – NEEDS RECOVERY – Rs.12,320/-

A sum of Rs. 2,40,738/- was paid vide Vr.No. 98/11-8-2010 to Sri Y. Durga

Prasad, Contractor towards work bill for the work execution of 9th Raised platform at Market Yard recorded in MB No. 4-B/2010-11 page No. 1 to 7. On verification of Measurement book and relevant file wherein it has been noticed that as per sanctioned estimate and schedule – A the rate for the item of work CC (1:1.5:3) Mix using 40 MM Size HBG Metal 0.613 Cum and 20 MM Metal 0.307 Cum – Machine crushing metal as per SS-108 using 330 Kgs cement of 1-Cum including machine mixing concrete laying on position including cost and conveyance of all materials to site complete for finished item of work as per (S.S. No. 402) –per Cum @ Rs. 3488-76. But whereas the rate for such item of work was charged @ Rs. 3663-76 per cum as against Rs. 3488-76 per cum resulted excess allowed @ Rs. 175-00 per cum(70.40 X 175 = Rs.12320/-) excess paid. A total sum of Rs. 12320/- excess payment was made to the contractor as shown below and the same needs to be recovered from the person responsible and credited to AMC Funds. Admissible as per sanctioned rates 70.40 X 3488.76 = Rs. 245608-70 Already paid as 70.40X 3663=76 = Rs. 257928-70 Excess paid =Rs. 12320/-

(Para No. 20 of A.M.C., Medak. for 2010-11)

10.4 AMC TADEPALLIGUDEM - PAYMENT OF PENSION IN RSP-2010 – COMMUTED VALUE OF PENSION NOT EFFECTED – IRREGULAR – NEEDS RECOVERY – Rs. 31,419/- (Rs.16137 + Rs.15282)

An amount of Rs. 16,137/- was paid in excess without taking into account the

commuted portion of pension on re-fixation of pension in RSP-2010 in respect of Sri Ch. VenkateswarRao, Junior Assistant (Rtd.,) retired on 30-11-2008 and whose pension was fixed at Rs. 4,408/- prior to RSP-2010 and re-fixed at Rs.8,075/- in RSP-2010. The excess amount paid needs to be recovered besides revising the pension.

(Para 10 of AMC, Tadepalligudem, West Godavari Dist. for 2010-11)

And also Sri G. Raja Rao, Supervisor, retired on 30-6-2009 was sanctioned pension Rs.5,015/- prior to RSP-2010 and out of which 40% pension which comes to Rs.2,006/- was commuted and drawn all the benefits prior to RSP-2010. When his pay was revised & pension was re fixed in RSP-2010, the commuted value of pension was not taken into effect and as such resulted in excess payment to a tune of Rs.15,282/- which needs to be recovered besides revising the pension.

(Para 9 of AMC, Tadepalligudem, West Godavari Dist. for 2010-11)

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11. WASTEFUL EXPENDITURE (CODE 14)

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 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 AMCs were incurred several times 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 AMCs for the year 2010-11 were avoidable, extraordinary and lacked proper planning.

Consolidated statement of Wasteful Expenditure incurred is annexed to the Report Statement No.3 (2) 2 from which it could be seen that an amount Rs. 4.6 lakhs pointed out as Wasteful Expenditure in 7 paras.

One such case is given below:

11.1 AMC, TADEPALLIGUDEM - ADVERTISEMENTS FOR VARIOUS PURPOSES – NOT USEFUL FOR THE GROWTH OF AMC – WASTEFUL EXPENDITURE – Rs.19,372/-.

Govt. vide Memo.No.21025/I&PR.I/A1/2007-1 dt.23.04.2007 of GA (I&PR) Dept., I have issued instructions to all the Departments /HODs/Corporations /Public Sector Undertakings to follow release of advertisements in print/electronic/outdoor media through I&PR Department only. Contrary to it, the AMC, Tadepalligudem, West Godavari District have drawnan amount of Rs.19,372/- through different vouchers towards publication of advertisements such as anniversary of news papers, and various celebrations like 1st November etc., which are of no use for the growth of the AMC nor for any farmer. Utilizing the public funds for such purposes is wasteful and needs to be curbed as there is a separate department to publish Government programmes etc.,

(Para 12 of AMC, Tadepalligudem, W.G.Dt., for 2010-11)

12. OTHERS (CODE 18)

Objections which do not fall in the above categories are incorporated under this

category. Such objections numbering 899 were raised for an amount of Rs.1,387.08 lakhs as detailed in Statement No.3 (2) 2.

12.1 AMC GUNTUR - FUNCTIONING OF SHEEP MANDI OUTSIDE THE

MARKET YARD BY PRIVATE PERSONS WITHOUT BROKER LICENSES - NOT ADMISSIBLE - DECREASE IN COLLECTION OF MARKET FEES

Weekly Sheep Mandi was held by private persons in Nallapadu village, which

was situated in the notified area of A.M.C., Guntur without obtaining broker licenses resulted in short/non collection of market fees.

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As per Rule 49 (1), “no person shall operate within a notified area as broker except under and in accordance with the conditions of a license granted to him by the market”. But, details of having issued a broker license to the persons running the sheep mandi, were not furnished to audit. As per section 7(6) of the (Agricultural Produce & Livestock) Markets Act, 1966, “Notwithstanding anything in sub-section (1), no person shall purchase or sell any notified agricultural produce, livestock and products of livestock in a notified market area, outside the market in that area”. Further, the market fees collected at Sheep Mandi, Nallapaduvillage for the past five years was as detailed below.

Year No. of Sheep Amount (in Rs) 2006-07 50400 1,43,875 2007-08 57558 1,73,911 2008-09 44848 1,70,457 2009-10 26843 1,38,235 2010-11 17570 89,480

It is clear from the above that the collection of market fees is decreasing year by year and the reasons for such decrease of market fees were not furnished to audit. Action may be initiated against the persons running sheep mandi in the notified area of A.M.C., Guntur against the provision, under section 7 (6) of the (Agricultural Produce & Livestock) Markets Act, 1966.

(Para No.36 of AMC, Guntur for 2010-11)

12.2 AMC ADILABAD - AMOUNT SPENT ON PROVIDING MEALS TO

POLICEMEN – CERTAIN DEFECTS – HELD UNDER OBJECTION - Rs.202685/- An amount of Rs.202685/- has been drawn and spent towards the meals charges

provided to the Policemen engaged for bandhobasth during the year 2010-11. The following defects were noticed.

1. The day wise information regarding No. of police personnel engaged was not

available. 2. The details of issue of No. of coupons to the police personnel to whom the

meals provided is not pointed out.

3. The quotations were not called for to derive the benefit of competitive rates as expenditure on the meals provided to the police personnel engaged for the Bandobasth is being paid every year.

4. Self cheque was drawn instead of making payment through Demand Draft.

5. The rules were not followed while making payment as per the instructions of

the Commissioner and Director of Agricultural Marketing, AP Hyderabad. In view of the above facts, the entire expenditure is held under objection.

(Para No. 33 of AMC, Adilabad District for 2010-11)

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12.3 REMITTANCES – AMOUNT NOT CREDITED IN TREASURY – NEEDS

ACTION – Rs.2,93,053/-

The amount of Rs.2,93,053/- was shown as remitted through challans to AMC funds as shown below. But on verification of Treasury Pass book the same were not credited/adjusted to AMC funds till the close of audit even after lapse of 3 to 4 years.

# District AMC Challan No & Date Amount (in Rs) Para

89/23-04-10 517 4103/25-03-10 1302 1027/12-07-10 1302 2235/29-10-10 13,655 2945/14-12-10 720

1 Ranga Reddy

Ibrahim patnam

2944/13.12.10 106715

11

Total 124211 1.12.2008 34,536 17072/20.01.2009 44,728 7182/20.01.2009 23,699

2 Ranga Reddy

Tandur

Other Balance Amount 65,879

Total 168842 Grand Total 2,93,053/-

Action would need to be taken to get the amounts credited to Agriculture Market committee funds.

DIRECTOR

A.P., HYDERABAD PLACE : HYDERABAD DATE : 30-08-2013

ACCOUNT STATEMENTS OF AGRICULTURE MARKET COMMITTEES

SECTION - II

ARREAR CURRENT ARREAR CURRENT ARREAR CURRENT

1 Adilabad 0 16 0 16 0 0

2 Ananthapur 0 13 0 13 0 0

3 Chittoor 0 19 0 19 0 0

4 East Godavari 0 20 0 20 0 0

5 Guntur 0 18 0 18 0 0

6 Kadapa 0 12 0 12 0 0

7 Karimnagar 0 20 0 20 0 0

8 Khammam 0 13 0 13 0 0

9 Krishna 0 19 0 19 0 0

10 Kurnool 0 12 0 12 0 0

11 Mahabubnagar 0 17 0 17 0 0

12 Medak 0 14 0 14 0 0

13 Nalgonda 0 19 0 19 0 0

14 Nellore 0 11 0 11 0 0

15 Nizamabad 0 10 0 10 0 0

16 Prakasham 0 14 0 14 0 0

17 Ranga Reddy 0 10 0 10 0 0

18 Srikakulam 0 13 0 13 0 0

19 Visakhapatnam 0 8 0 8 0 0

20 Vizianagaram 0 9 0 9 0 0

21 Warangal 0 14 0 14 0 0

22 West Godavari 0 18 0 18 0 0

Total 0 319 0 319 0 0

STATEMENT No.1

STATEMENT SHOWING DISTRICT WISE STATUS OF AMCS FOR THE YEAR 2010-11

AUDIT DEMAND AS ON 01-04-2010


AUDIT COMPLETED UP

TO 31-3-2011# NAME OF THE DISTRICT

Page 240

# NAME OF THE DISTRICT RECEIPT PAYMENT

1 Adilabad 2484.36 1538.31

2 Ananthapur 1306.74 1098.3

3 Chittoor 2161.76 2089.721

4 East Godavari 3348.63 1800.47

5 Guntur 9966.22 6487.76

6 Kadapa 1419.05 990.31

7 Karimnagar 2916.56 2330.96

8 Khammam 3012.34 1962.28

9 Krishna 3168.27 3136.88

10 Kurnool 2818.9 2173.36

11 Mahabubnagar 2413.5 1790.61

12 Medak 1517.66 1239.93

13 Nalgonda 3049.35 2582.18

14 Nellore 1631.72 1398.53

15 Nizamabad 2031.33 1561.21

16 Prakasham 1911.11 1438.31

17 Ranga Reddy 3727.79 2685.99

18 Srikakulam 1140.88 812.23


20 Vizianagaram 580.67 463.16

21 Warangal 3455.629 3025.71

22 West Godavari 3534.46 2272.92

TOTAL 58302.22 43636.37

STATEMENT No.2 (1)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF AMCS FOR THE YEAR 2010-11

Rs. In lakhs

Page 241

# Name of the DIstrict

Market Fee

License Fees

Late Fees

Property Rental Fees

Interest on Investment Auctions

Income from Misc

SourcesDeposits Loan Advances

Grant In Aid /

OthersTotal

1 Adilabad 2185.76 3.47 0.01 22 0.69 0.8 198.08 11.23 30.84 28.65 2.83 2484.362 Ananthapur 675.36 3.12 0.05 51.8 4.32 5.22 2.19 58.63 253.82 18.83 233.4 1306.743 Chittoor 1190.61 4.41 0.13 52.93 14.88 0.15 35.58 134.26 365.82 32.28 330.71 2161.764 East Godavari 2885.31 4.19 0 19.64 5 0.26 36.36 12.71 16.86 152.96 215.34 3348.635 Guntur 7741.32 19.09 0.16 32.87 8.42 7.68 40.53 81.51 1851.26 29.65 153.73 9966.226 Kadapa 883.52 1.74 0.03 21.83 4.16 1.13 26.36 2.98 83.11 19.99 374.2 1419.057 Karimnagar 2699.14 20.97 0.18 25.83 23.98 0.54 0.15 41.87 11 28.07 64.83 2916.568 Khammam 2364.41 5.3 4.99 40.29 0.32 3.01 4.41 37.41 55.67 186.62 309.91 3012.349 Krishna 2291.93 16.12 0.24 13.54 6.83 2.16 15.11 11.38 374.39 45.98 390.59 3168.2710 Kurnool 2421.91 5.28 0.11 74.01 14.97 9.65 4.87 13.3 147.35 54.9 72.55 2818.911 Mahabubnagar 2064.93 20.96 0.84 36.09 0.89 0.12 30.37 51.87 126.33 80.49 0.61 2413.512 Medak 1001.68 3.91 0 54.5 1.48 0.64 4.24 8.42 398.04 30.91 13.84 1517.6613 Nalgonda 2607.97 2.29 2.3 26.34 24.64 0.75 8.42 11.99 139.22 138.55 86.88 3049.3514 Nellore 1262.58 3.45 0.07 58.88 4.78 0 77.87 18.41 143.69 38.33 23.66 1631.7215 Nizamabad 1580.87 23.03 1.98 15.57 2.27 0.3 280.92 1.94 74.17 24.51 25.77 2031.3316 Prakasham 1455.32 6.09 0.19 46.1 3.9 2.37 263.92 20.64 34.97 16.81 60.8 1911.1117 Ranga Reddy 1500.83 5.97 6.38 598.54 0 0.01 10.86 210.99 125.89 289.78 978.54 3727.7918 Srikakulam 1027.03 2.5 0.87 6.71 6.86 2.35 31.02 15.02 1.68 15.48 31.36 1140.8819 Visakhapatnam 619.99 2.89 0.03 14.98 3.27 0.05 6.88 25.35 0 2.11 29.74 705.2920 Vizianagaram 530.19 1.33 0 8.61 0.1 0 25.28 0.93 3.87 10.36 0 580.6721 Warangal 3115.23 5.4 0.22 36.119 1.74 17.87 41.35 95.73 7.76 10.32 123.89 3455.62922 West Godavari 2988.03 3.75 0 28.52 11.49 6.96 72.85 5.31 85.4 99.82 232.33 3534.46

TOTAL 45093.92 165.26 18.78 1285.70 144.99 62.02 1217.62 871.88 4331.14 1355.40 3755.51 58302.219

STATEMENT No.2 (2)

Rs. In lakhs

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENT OF AGRICULTURE MARKET COMMITTEES FOR THE YEAR 2010-11 ( RECEIPT HEADS)

Page 242

# Name of the District Salaries Other Admin

ExpenditureLaw

Charges

Acquition of

Properties

Development Works

Furtniture & Vehicles

etc.,

10% Contribution

to CMF

Repayment of Loans Others Advances Deposits

Others Granting in aid

Total

1 Adilabad 375.68 343.3 1.45 0 336.35 20.13 168.89 31.78 8.11 28.98 25.4 198.24 1538.312 Ananthapur 281.48 217.44 0.11 0 432.58 0.27 76.8 23.39 2.54 4.04 58.4 1.25 1098.33 Chittoor 523.62 114.25 0 0 717.99 16.26 120.44 50.1 137.04 5.87 7.631 396.52 2089.7214 East Godavari 594.55 349.83 2.48 0 119.92 13.04 240.39 55.87 0 207.93 18.45 198.01 1800.475 Guntur 761.88 957.65 3.15 0 1740.08 11.19 588.36 6.9 134.23 223.11 110.33 1950.9 6487.766 Kadapa 300.82 84.97 0.25 0 86.49 2 86.22 68.11 273.26 21.84 4.84 61.5 990.37 Karimnagar 465.83 484.45 1.22 0.1 777.91 16.6 221.45 7.08 56.86 152.87 3.49 143.1 2330.968 Khammam 511.46 491.44 8.39 0 597.95 14.04 208.39 5.64 11.67 90.49 13.34 9.47 1962.289 Krishna 445.86 1062.58 2.41 0 381.34 10.11 188.02 244.7 79.12 169.02 3.08 550.64 3136.88

10 Kurnool 539.62 226.95 1.35 5.29 561.77 3.4 201.27 68.38 91.6 58.02 20.9 394.81 2173.3611 Mahabubnagar 491.08 286.72 3.4 29.68 356.92 1.84 189.42 112.41 44.12 64.89 71.43 138.7 1790.6112 Medak 304.78 149.44 0.47 61.37 473.01 16.75 92.17 49.73 4.47 27.65 55.92 4.17 1239.9313 Nalgonda 737.08 409.46 0.74 8.5 649.83 9.36 216.82 292.55 7.12 200.72 14.93 35.07 2582.1814 Nellore 142.93 348.98 2.13 18.13 382.28 17.95 112.09 81.41 240.06 23.16 29.41 0 1398.5315 Nizamabad 405.69 461.33 0.76 18.54 313.55 9.61 140.21 13.36 49.27 34.37 109.93 4.59 1561.2116 Prakasham 481.73 305.91 69.05 0 150.27 89.76 97.04 20.98 150.42 47.53 22.04 3.58 1438.3117 Ranga Reddy 383.36 343.61 2.35 0 560.28 32.43 281.32 311.35 32.34 10.2 3.27 725.48 2685.9918 Srikakulam 211.51 45.79 1.04 10 61.14 3.63 111.65 6.28 74.03 84.52 5.76 196.88 812.2319 Visakhapatnam 181.65 44.35 0.95 0 168.2 0 65.52 0 265.56 12.31 8.96 9.74 757.2420 Vizianagaram 114 115.44 0.08 0 37.93 0 50.26 0 0 7.04 3.3 135.11 463.1621 Warangal 527.04 381.01 0.9 79.7 670.37 18.9 279 13.66 10 84 93.05 868.08 3025.7122 West Godavari 661.14 544.24 5.34 0 126.23 10.93 296.75 82.24 306.38 229.75 9.92 0 2272.92

TOTAL 9442.79 7769.14 108.02 231.31 9702.39 318.2 4032.48 1545.92 1978.2 1788.31 693.781 6025.82 43636.361

STATEMENT No. 2(3)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENT OF AGRICULTURE MARKET COMMITTEES FOR THE YEAR 2010-11 ( PAYMENT HEADS)

Rs. In lakhs

Page 243

# Name of the Category No. Amount% on

Amount

1 Variation in Account figures 130 228.36 2.58

2 Excess Utilisation of Grants/Funds 82 329.06 3.72

3 Diversion of Grants/Funds 52 225.87 2.55

4 Non-utilisation of Grants before lapsable dates 4 4.67 0.05

5 Mis-utilisation of Grants/Funds 0 0 0.00

6 Non-utilisation of Earmarked funds 4 7.38 0.08



9 Violation of rules 1444 2107.25 23.81


11 Non production of records 829 1631.91 18.44

12 Mis-appropriation/Fraud 35 7.5 0.08

13 Excess payments 163 20.5 0.23

14 Wasteful expenditure 7 4.6 0.05

15 Instances of cases of unaccounted Cash / Stores 10 1.94 0.02

16 Pendency of Utilisation certificates 9 63.58 0.72

17 Surcharge Certificates - Recovery pending 1 0 0.00

18 Others 899 1387.08 15.6719 DD/Cheques received but not realized within time. 0 0 0

Total 4741 8851.77 100.00

STATEMENT No.3 (1)

Rs. In lakhs

CONSOLIDATED STATEMENT SHOWING NO. OF OBJECTIONS (CATEGORY - WISE ) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Page 244

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.1 Adilabad 0 0.00 9 8.43 9 23.29 0 0.00 0 0.00 0 0.00 5 4.17 12 12.00 177 51.20 29 5.462 Ananthapur 7 0.65 6 0.38 3 13.66 0 0.00 0 0.00 0 0.00 42 51.11 9 8.99 68 64.23 7 0.713 Chittoor 18 0.00 7 31.14 7 55.18 2 4.67 0 0.00 1 7.38 55 12.31 6 3.52 67 25.64 7 0.344 East Godavari 1 0.09 5 0.00 1 0.78 0 0.00 0 0.00 0 0.00 24 162.13 20 314.93 75 290.00 3 1.075 Guntur 5 1.54 7 56.91 3 0.31 0 0.00 0 0.00 0 0.00 24 173.65 12 40.31 76 491.19 20 10.896 Kadapa 4 0.00 5 0.00 0 0.00 2 0.00 0 0.00 3 0.00 5 3.16 1 0.00 53 32.63 7 0.837 Karimnagar 3 2.00 3 1.57 4 5.08 0 0.00 0 0.00 0 0.00 9 19.64 22 4.03 162 28.10 8 4.828 Khammam 3 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 9 12.51 4 65.85 24 16.72 36 23.469 Krishna 2 0.30 3 11.64 0 0.00 0 0.00 0 0.00 0 0.00 29 76.23 24 68.46 49 4.14 29 10.3810 Kurnool 4 21.12 2 19.35 1 0.00 0 0.00 0 0.00 0 0.00 24 277.85 4 3.37 43 57.30 10 6.5911 Mahabubnagar 21 37.54 4 1.22 10 8.41 0 0.00 0 0.00 0 0.00 28 0.11 3 136.38 27 40.41 21 4.9112 Medak 6 0.00 6 1.03 4 48.45 0 0.00 0 0.00 0 0.00 15 51.62 1 10.00 55 23.30 24 11.6413 Nalgonda 18 0.00 5 0.00 1 0.76 0 0.00 0 0.00 0 0.00 29 44.00 3 88.62 32 133.42 8 26.7314 Nellore 1 0.00 5 12.95 1 0.91 0 0.00 0 0.00 0 0.00 14 76.71 5 2.96 41 33.56 0 0.0015 Nizamabad 4 11.68 2 0.12 5 59.28 0 0.00 0 0.00 0 0.00 12 202.45 2 6.09 35 45.41 27 21.1116 Prakasham 6 15.28 1 0.00 0 0.00 0 0.00 0 0.00 0 0.00 16 64.01 7 0.08 97 36.01 7 0.7017 Ranga Reddy 14 128.34 3 24.67 2 8.22 0 0.00 0 0.00 0 0.00 25 47.49 4 64.45 48 29.08 20 5.0418 Srikakulam 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 19 83.30 13 64.87 135 13.35 9 4.0019 Visakhapatnam 3 0.10 2 0.00 0 0.00 0 0.00 0 0.00 0 0.00 15 55.71 9 3.04 50 184.84 9 9.5220 Vizianagaram 0 0.00 1 0.55 0 0.00 0 0.00 0 0.00 0 0.00 18 24.92 8 11.15 40 1.30 15 7.7021 Warangal 10 9.72 6 159.10 0 0.00 0 0.00 0 0.00 0 0.00 10 104.77 99 10.33 52 429.41 27 7.4922 West Godavari 0 0.00 0 0.00 1 1.54 0 0.00 0 0.00 0 0.00 32 196.46 21 4.94 38 76.01 1 0.00

Total 130 228.36 82 329.06 52 225.87 4 4.67 0 0.00 4 7.38 459 1744.31 289 924.37 1444 2107.25 324 163.39

STATEMENT 3(2) 1

Non-utilisation

of Earmarked




STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY AUDIT OBJECTIONS

Advances pending

adjustmentViolation of Rules


recoveries from work bills/pay bills/contingent

#

Excess Utilisation of

Grants / Funds


Rs. In lakhsNon-

Utilisation of Grants before

lapsable date


Page 245

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.1 Adilabad 51 136.70 1 0.04 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 74 132.61 0 0.00 367 373.92 Ananthapur 48 116.26 3 0.94 11 8.90 1 3.49 0 0.00 1 0.20 1 0.00 36 0.20 0 0.00 243 269.723 Chitoor 51 36.35 0 0.00 12 0.71 1 0.70 0 0.00 2 0.25 0 0.00 53 8.72 0 0.00 289 186.914 East Godavari 42 49.59 0 0.00 2 0.54 0 0.00 0 0.00 1 0.00 0 0.00 24 0.22 0 0.00 198 819.355 Guntur 116 97.50 0 0.00 2 0.09 2 0.22 1 1.30 0 0.00 0 0.00 56 74.51 0 0.00 324 948.426 Kadapa 28 10.96 0 0.00 1 0.02 0 0.00 0 0.00 0 0.00 0 0.00 34 0.00 0 0.00 143 47.67 Karimnagar 72 48.33 0 0.00 1 0.02 0 0.00 0 0.00 0 0.00 0 0.00 38 11.83 0 0.00 322 125.428 Khammam 15 50.25 0 0.00 2 0.78 0 0.00 0 0.00 0 0.00 0 0.00 55 227.87 0 0.00 148 397.449 Krishna 13 37.86 0 0.00 1 0.03 0 0.00 0 0.00 0 0.00 0 0.00 44 157.12 0 0.00 194 366.1610 Kurnool 41 132.13 0 0.00 10 3.87 1 0.00 1 0.21 3 63.13 0 0.00 51 15.69 0 0.00 195 600.6111 Mahabubnagar 63 47.76 11 1.50 93 0.40 1 0.00 6 0.43 0 0.00 0 0.00 19 39.78 0 0.00 307 318.8512 Medak 28 240.62 5 0.61 8 1.45 0 0.00 2 0.00 0 0.00 0 0.00 42 0.07 0 0.00 196 388.7913 Nalgonda 18 2.11 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 41 41.34 0 0.00 155 336.9814 Nellore 27 6.01 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 9 38.01 0 0.00 103 171.1115 Nizamabad 11 34.50 3 0.36 6 0.23 0 0.00 0 0.00 0 0.00 0 0.00 22 7.07 0 0.00 129 388.316 Prakasham 23 6.69 0 0.00 2 0.40 0 0.00 0 0.00 2 0.00 0 0.00 44 0.00 0 0.00 205 123.1717 Ranga Reddy 32 69.04 5 3.59 2 0.06 0 0.00 0 0.00 0 0.00 0 0.00 47 552.37 0 0.00 202 932.3518 Srikakulam 41 19.18 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 96 39.62 0 0.00 313 224.3219 Visakhapatnam 18 0.25 3 0.15 2 0.09 0 0.00 0 0.00 0 0.00 0 0.00 6 0.41 0 0.00 117 254.1120 Vizianagaram 38 1.39 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 23 0.60 0 0.00 143 47.6121 Warangal 30 343.91 4 0.31 1 0.01 0 0.00 0 0.00 0 0.00 0 0.00 50 6.39 0 0.00 289 1071.4422 West Godavari 23 144.52 0 0.00 7 2.90 1 0.19 0 0.00 0 0.00 0 0.00 35 32.65 0 0.00 159 459.21

Total 829 1631.91 35 7.50 163 20.50 7 4.60 10 1.94 9 63.58 1 0.00 899 1387.08 0 0.00 4741 8851.77

STATEMENT 3(2) 2STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONS

#

Non-production of

records

Mis-appropriatio

n

Excess paymentsName of the

District

Rs. In lakhs


DD/Cheques received not

realised within time

Total


unaccounted for cash/ stores

Pendency of Utilisation certificates

Surcharge certificates recovery pending

Others

Page 246

PART - V



PART – V

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF ZILLA

GRANDHALAYA SAMASTHAS FOR

THE YEAR 2010-11


PART –V

SECTION – I

S.No. DESCRIPTION PAGE No.


2 A few selected Audit Paras – Category wise 255-265

SECTION – II

STATEMENT

No. DESCRIPTION OF STATEMENTS FOR

THE YEAR 2010-11 OF ZGS PAGE

No.

1 Status of Audit of ZGS (District wise) 266

2 (1) Receipts and Payments of ZGS (District wise) 267

2 (2)

Receipts and payments of ZGS with break up (Receipts Heads)

268

2 (3)

Receipts and payments of ZGS with break up (Payments Heads)

269

3 (1) Consolidated Category Wise Audit Objections 270

3(2) 1

Consolidated Dist. and Category Wise Audit Objections

271

3(2) 2

Consolidated Dist. And Category Wise Audit Objections

272

CONTENT

SECTION - I

247

CONSOLIDATED AUDIT AND REVIEW REPORT ON THE ACCOUNTS OF ZILLA GRANDHALAYA SAMSTHAS FOR THE YEAR 2010-11

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 for 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.

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 there for, the amount

248

of any deficiency, loss or unprofitable outlay occasioned by the negligence or misconduct of that person or of any such sum which ought to have been accounted for but not brought into account by the person and shall, in every such case, certify the amount due from such person.

SCOPE OF AUDIT

2.1 The Scope of the Post Audit of ZGS encompasses the following items:

(i) Whether Library Cess (a) levied by all the Gram Panchayats in the State on House Tax and all the ULBs in the State on Property Tax @ 8%, (b) collected by all the Gram Panchayats and ULBs and (c) whether the collected library Cess has been properly adjusted to funds of Zilla Grandhalaya Samsthas concerned.

(ii) Whether adequate care is taken in periodical checking up of the funds with Treasury or Bank.

(iii) Whether expenditure incurred is provided for in the Budget of the Zilla Grandhalaya Samstha and duly sanctioned by the competent authority under the relevant rules and executive instructions issued by the Government.

(iv) Whether funds are utilized only for the permitted purposes prescribed for Zilla Grandhalaya Samstha under the A.P. Public Libraries Act, 1960 / Rules.

(v) Whether the procedure prescribed by Government in incurring the expenditure / payments made is properly followed and accounted for with due classification in the books of accounts of the Zilla Grandhalaya Samstha.

(vi) Whether vouchers for the expenditure incurred were maintained. (vii) Whether prescribed Registers have been maintained (viii) Whether the Annual Accounts prepared with reference to the Actual

Transactions of the ZGS express true and fair value of the ZGS. GRANTS RECEIVED DURING THE YEAR BY 23 ZILLA GRANDHALAYA SAMASTHAS IN THE STATE.

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 2010-11 by Zilla Grandhalaya Samsthas.

3.2 The Pie chart of proportional Percentages of Receipts and Payments of Zilla

Grandhalaya Samsthas during the year 2010-11 is placed below.

3.3 The bulk of receipts come from Salary Grant (45%) followed by Library Cess (37%).

3.4 Library Cess: This department has observed that Grampanchayats and

Municipalities have to remit Library cess to a tune of Rs.1253.43 lakhs and

249

Rs.1953.39 lakhs respectively to Zilla Grandhalaya Samsthas. But no action was taken by the Zilla Grandhalaya Samsthas to get the amounts remitted by the said institutions.

PIE Chart of Receipts of ZGS for 2010-11

45.47%

5.11%

1.03%

0.19%

0.30%

0.54%

1.54%

5.13%

0.79%

0.02%

0.01%

2.45%

0.30%

0.04%

0.15%

36.94%

Library Cess 36.94%

Salary Grant 45.47%

Pension on Grant 5.11%

Contingent Grant 1.03%

Sale of Old News Papers 0.19%

Membership Deposit 0.30%

Security Deposit 0.54%

Other Deposit 1.54%

Other Receipts 5.13%

Advances Recorable 0.79%

FBF,GIS to retied employees0.02%RRLF Grants towards 0.01%

Pay bills Recoveries 2.45%

Advance grants towards forpayment of 0.30%Other development grants 0.04%

Outsourcing renumeration 0.15%

250

PIE Chart of Payments of ZGS for 2010-11

3%

24%2%

1%

0%

0%

4%

1%

5%

0%

5%

1%

0%

1%

1%

0%

50%2%

Cost of books and Pdls 3.19%

Salaries 49.44%

Pension 24.44%

Expenditure from Contingent2.12%

TA& LTC 0.66%

Membership deposits 0.09%

Security Deposits 0.32%

Other Deposits Refunded 1.37%

Other Admin Expenditure 4.19%

Advances Recoverable 0.78%

Cost of Buildings 5.46%

Investments 0.24%

Others 4.67%

PF 0.92%

FBF and GIS to RetiredEmployees 0.07%

OutSourcing Employees Salaries0.63%

Remittance of pay bill recoveries1.13%

Wages 0.29%

3.5 The bulk of payments are for Salaries (49.44%) followed by Pensions (24.44%). The percentage of expenditure on purchase of books and periodicals is only 3.19%. During the year 2008-09, the percentage of expenditure incurred on purchase of books and periodicals was 10%. During the year 2009-10, it has dropped to 4%. During the year 2010-11, the percentage has further dropped to 3.19%. The primary objective of the Zilla Grandhalya Samsthas is to improve Library service in the respective districts and the decrease in expenditure on

251

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 that is from 3.19% and to decrease other ancillary expenses.

3.6 The receipts and payments of previous 5 years in respect of ZGSs is as detailed

below. Rs. In Lakhs

# Year Receipts

%

Change

Y to Y

Library

Cess

%

Change

Y to Y

Payments

%

Change

Y to Y

1 2006-07 8129.48 4955.36 54 5337.70

2 2007-08 7210.89 -11 2027.45 -59 6175.84 14

3 2008-09 5951.34 -17 1905.80 -6 6468.83 5

4 2009-10 11380.30 47 5119.51 63 6711.61 4

5 2010-11 8160.8 -39 3014 -41 8993.79 25

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.

STATUS OF AUDIT

4.1 The current audit of 23 ZGSs for the year 2010-11 was conducted. 4.2 The Department has conducted the audit of the receipts amounting to Rs. 8160.14

lakhs and payments of Rs.9002.14 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 Zilla Grandhalaya Samsthas for the year 2010-11, 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 410 audit objections involving an amount of Rs. 4994.37

Lakhs were raised in the audit of the ZGS during the year.

5.3 A Consolidated Statement showing the number of objections raised, amount involved with Zilla Grandhalaya Samstha-wise break-up is annexed vide Statement No.3 (2)

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CATEGORISATION OF AUDIT OBJECTIONS

The various audit objections are classified into 19 categories as detailed below.

1. Variation in Account Figures 2. Excess Utilisation of Grants / Funds 3. Diversion of Grants/Funds 4. Non-utilization of Grants before lapsable date 5. Mis-utilisation of funds 6. Nin-utilisation of Earmarked funds 7. Non-collection of dues 8. Advances Pending Adjustment 9. Violation of Rules 10. Non-remittance of Deductions / Recoveries from vouchers / Pay Bills /

Contingent Bills 11. Non-production of records 12. Mis-appropriations 13. Excess Payments 14. Wasteful Expenditure 15. Instances of cases of unaccounted cash / stores 16. Pendency of Utilization Certificates 17. Surcharge certificates-Recovery pending 18. Others 19. D.D/Cheques received but not realized within time

5.4 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 (2)

5.5 Gist of some of the selected audit objections pertaining to the year under report is

enumerated below:

STATEMENT SHOWING THE No. OF OBJECTIONS (CATEGORY - WISE) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

# Name of the Category No. Amount (Rs.)

% on Amount

1 Others 83 3325.10 66.58 2 Excess Utilisation of Grants/Funds 19 640.90 12.83 3 Violation of rules 120 562.48 11.26 4 Non production of records 78 163.93 3.28 5 Pendency of Utilisation certificates 13 137.58 2.75 6 Variation in Account figures 9 114.43 2.29


8 Advances pending adjustment 14 15.77 0.32 9 Non-utilisation of Grants before lapsable dates 8 6.61 0.13 10 Excess payments 27 4.87 0.10 11 Non-collection of dues 14 4.27 0.09 12 Instances of cases of unaccounted Cash / Stores 1 1.05 0.02

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13 Mis-appropriation/Fraud 4 0.43 0.01 14 Wasteful expenditure 3 0.03 0.00 15 Diversion of Grants/Funds 4 0.00 0.00 16 Mis-utilisation of Grants/Funds 0 0.00 0.00 17 Non-utilisation of Earmarked funds 0 0.00 0.00 18 Surcharge Certificates - Recovery pending 0 0.00 0.00 19 DD/Cheques received but not realized within time. 0 0.00 0.00 Total 410 4994.37 100.00

As seen from the above, majority of objections amount-wise are regarding others

like missing of Library books cost not recovered at 66.58% followed by Excess Utilization of grants at 12.83%.

As seen from the below table, it can be observed that the percentage of realization

on sale of old newspapers is vastly varying from one district to another district from 0% in Guntur, Karimnager, Nalgonda, West Godavari and Hyderabad Districts to 25.77% in Medak District. The range of variation is too high to rely. In view of such variation among the districts, the Director of Public Libraries is requested to standardize the accounting practice to get uniform practices throughout the state. Rs. In lakhs

# Name of the District Sale of Old News Papers

Cost of Books & Periodicals

% of Realization

1 Adilabad 0.32 7.03 4.55 2 Ananthapur 1.17 13.75 8.50 3 Chittoor 1.4 10.6 13.20 4 East Godavari 1.71 18.67 9.15 5 Guntur 0 26.34 0 6 Kadapa 0.71 7.41 9.58 7 Karimnagar 0.45 0 0 8 Khammam 0.84 6.73 12.48 9 Krishna 0.4 28.24 1.41 10 Kurnool 0.7 17.36 4.03 11 Mahaboobnagar 0.59 11.47 5.14 12 Medak 0.91 3.53 25.77 13 Nalgonda 0 8.69 0 14 Nellore 0.06 14.82 0.40 15 Nizamabad 0.77 0 0 16 Prakasham 1.8 8.97 20.06 17 Ranga Reddy 1.2 15.23 7.87 18 Srikakulam 0.92 8.31 11.07 19 Visakhapatnam 0.6 15.74 3.81 20 Vizianagaram 0 5.05 0 21 Warangal 1.16 12.44 9.32 22 West Godavari 0 12.02 0 23 Hyderabad 0 20.12 0 TOTAL 15.71 272.52 5.76

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As seen from the below table, the receipt on Library Cess to the Total receipts is vastly varying from one district to another district from 11.98% in Khammam District to 74.17 % in Ranga Reddy District. The state average is 36.93%. In view of the above variation among the districts, the Director of Public Libraries is requested to take necessary steps to maximize the Collection of the Library Cess from the Executive Authorities of the Local Bodies in the State.

Rs. In lakhs

# Name of the District Library Cess Total % of Library Cess to

Total Receipts

1 Adilabad 37.71 267.48 14.09

2 Ananthapur 99.48 357.75 27.80

3 Chittoor 178.81 468.8 38.14

4 East Godavari 147.15 462.02 31.84

5 Guntur 115.82 391.05 29.61

6 Kadapa 108.01 333.92 32.34

7 Karimnagar 93.4 335.33 27.85

8 Khammam 24.84 207.27 11.98

9 Krishna 367.14 533.69 68.79

10 Kurnool 107.85 302.88 35.60

11 Mahaboobnagar 40.73 267.82 15.20

12 Medak 35.25 269.05 13.10

13 Nalgonda 54.54 306.01 17.82

14 Nellore 58.95 318.64 18.50

15 Nizamabad 42.47 254.73 16.67

16 Prakasham 124.05 324.61 38.21

17 Ranga Reddy 295.18 397.95 74.17

18 Srikakulam 50.39 280.41 17.97

19 Visakhapatnam 117.32 297.91 39.38

20 Vizianagaram 139.08 297.66 46.72

21 Warangal 158.89 318.4 49.90

22 West Godavari 141.9 432.27 32.82

23 Hyderabad 474.99 734.49 64.66

TOTAL 3013.95 8160.14 36.93

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AUDIT PARAS

1) VARIATION IN ACCOUNTS FIGURES (CODE 1) It was observed in audit that there are variations in Annual Account figures

between the Treasury Pass Book and Cash Book of Executive Agencies viz.

i. Non-tallying of Closing balance of cash book as on 31-03-2010 and opening balance as on 01-04-2010.

ii. Non-tallying of Closing balance of Cash book as on 31-03-2011 and closing balance of Treasury Pass Book as on 31-03-2011.

iii. Non-crediting of Receipts into the Treasury Pass Book by the Treasury Authorities.

iv. Receipt credited in the Cash Book by remittance through Challans is not credited in the Treasury Pass book by the Treasury authorities.

v. Debiting the cheques issued by one DDO to another DDO by Treasury authorities. vi. 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.

vii. Wrong totaling of credits and debits either by DDO or Treasury. viii. 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.

A consolidated statement No. 3(2) 1 of Variation in Account figures is appended to the Report from which it could be seen that Variation in Account figures of Rs. 114.43 Lakhs was pointed out in 9 paras.

1.1 ZGS KRISHNA – VARIATION IN AMOUNTS BETWEEN CASH BOOK AND PASS BOOK – NEEDS RECTIFICATION – Rs.1,01,490/-

The amounts credited into ZGS account through various Challans and recorded in

cash book were not alike in the pass book as verified and found to vary to a tune of Rs. 1,01,490/- in ZGS Krishna for the year 2010-11 which needs to be rectified so as to present a true and fair picture of accounts.

(Para 7 of Audit Report of ZGS Krishna)

2) EXCESS UTILISATION OF GRANTS (CODE 2)

During the course of audit of Zilla Grandhalaya Samasthas in the State for the

year 2010-11, 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 Samasthas were incurring expenditure in excess of the grant received from the Government either in anticipation of the release of further grant or diverting amount from the General Funds of the institution.

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A Consolidate Statement No 3(2)1 of Excess Utilization of Grants/Funds is appended to the Report. It could be seen that an amount of Rs.640.90 Lakhs was pointed out in 19 Audit Objections. A few such cases are illustrated below. 2.1 ZGS VISAKHAPATNAM – GRANTS – SALARIES & PENSIONS -

EXPENDITURE INCURRED MORE THAN THE GRANT RELEASED – NEEDS REIMBURSEMENT

During the course of Audit on the Accounts of Zilla Grandhalaya Samstha, Visakhapatanam for the year 2010-11, it is noticed that an amount of Rs 1,20,00,000/- was released by the Director of Public Libraries, AP Hyderabad towards advance for Salaries and Pension. A total sum of Rs.3,03,38,717/- was spent during the year towards Pay and Allowances and Pensions of the Staff of Zilla Grandhalaya Samstha. The details are given below- # Details Amount (in Rs) 1 Opening Balances of Salary & Pension Grants (-) 3,43,48,601 2 Grants received during 2010-11 for Salary & Pension 1,20,00,000 Total (-)2,23,48,601

3 Payment of Salaries & Pensions during 2010-11 3,03,38,717 4 Closing Balance of Salary & Pension Grant (-)5,26,87,318

Therefore the sum of Rs.5,26,87,318/- was spent in excess of the grant released and which needs to be got reimbursed under intimation to audit.

(Para No 2 of Audit Report of ZGS Visakhapatnam)

2.2 CGS HYDERABAD – GRANT – SALARIES & PENSIONS – EXPENDITURE INCURRED EXCESS OVER RELEASE OF GRANTS – NEEDS REIBURSEMENT – Rs.4,75,68,204/-

During the year under report, the expenditure incurred on Salaries and Pension

payments were found in excess over the Grant released by the Government/Director of Public Libraries which implies the diversion of the CGS Funds which is irregular. Hence the excess expenditure, as shown below, would need to be reimbursed to the Library Fund by way of getting Grants from Government under intimation to the Audit.

# Name of the Grant

Proceedings Roc No & Date

Grant Released

Expenditure Incurred

Excess Expenditure

1 31-C2/2010/06/2010 25,00,000 2 31-C2/2010/18.8.2010 25,00,000 3 31-C2/2010/16.12.2010 37,71,000 4

Advance Grant for Salary & Pension Payments

31-C2/2010/09.03.2011 37,72,000

6,01,11,204 4,75,68,204

Total (Rs.) 1,25,43,000

6,01,11,204 4,75,68,204

(Para No. 2 of Audit Report of CGS Hyderabad)

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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(2) 1 of Non Collection of dues is appended to the

report. It could be seen that an amount of Rs.4.27 Lakhs was pointed out in 14 paras. A few of such cases are shown below.

3.1 ZGS SRIKAKULAM - LIBRARY CESS - REALISATION OF DEMAND

FROM LOCAL BODIES - NOT WATCHED PROPERLY During the course of Audit on the Accounts of Zilla Grandhalaya Samstha,

Srikakulam for the year 2010-2011, it is observed on verification of the Demand Register that the Library Cess due from the Local Bodies was not arrived properly and entered in the Demand Register (Institution-wise) and Realization of Library Cess was also not noted. It is further observed that Consolidated Statement on Demand, Collection and Balance of Library Cess was not prepared. No action was taken to obtain Monthly Reports of Library Cess Collections from the Local Bodies as per Rules 18(1) of the AP Public Libraries Act 1960.

Since the realization of Library Cess from Local Bodies is the main source of

income to the Zilla Grandhalaya Samstha, proper action shall be taken by the Executive Authority in this regard and intimate to Audit.

(Para 9 of Audit Report ZGS Srikakulam)

3.2 ZGS ANANTHAPURAM - NON-COLLECTION OF OUTSTANDING

RENTS FROM SHOPS AND NON-LEASING OF SHOPS IN PUBLIC AUCTION – Rs.1,79, 640/- As verified from the records on shop room rent, it is observed that at the close of

audit year i.e as on 31.03.2011, the outstanding balance of shop room rent was shown as 1,79,640/- for the shop rooms for which no auction has been taken by the Executive Authority. Immediate action would need to be taken to collect the outstanding balance.

It is also observed in audit that these shop rooms were leased out during 2006-07

which resulted nominal collection of rent on shop rooms and loss of revenue sustained to ZGS funds and needs recovery from the concerned. The actual reasons for non-conducting public auction to lease out the shop rooms every year or enhancement for 3 years not explained to audit. Even now immediate action would need to be taken to lease out the shop rooms in public auction at competitive rates.

(Para 6 of Audit Report of ZGS Ananthapuram)

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4) ADVANCES PENDING ADJUSTMENTS (CODE 8)

It was observed during the course of audit that temporary advances paid for specific purpose were outstanding for a long time though they should have been got adjusted through detailed bills and vouchers as soon as possible. As per Article 99 of the A.P. Financial Code, Non-settlement of advances leads to misuse of advances and avoid refund of unspent amounts. Several objections were raised on such outstanding advances in the relevant audit reports pointing out failure of the executive authorities to take necessary action to get these advances adjusted.

A consolidated Statement No. 3 (2) 1 of Advances Pending Adjustment is

appended to the report. It could be seen that an amount of Rs.15.77 Lakhs was pointed out in 14 paras. 4.1 ZGS ADILABAD - ADVANCES – PENDING ADUSTMENT –

IRREGULAR - NEEDS RECOVERY – Rs.1,20,000/-

During the audit of Accounts of ZGS Adilabad, it is noticed that the following Amounts were drawn and paid to the Persons noted against each towards advance payment for the purpose shown against each during the year 2010-11.

# Voucher No & Date

Amount (Rs.) Particulars Name of the

Individual 1 2563/10.11.2010 20,000 Annual Celebrations

2 4063/14.03.2011 1,00,000 Purchase of Computers

Secretary, ZGS Adilabad

Total 1,20,000

But the said advance of Rs.120000-00 was not got adjusted to ZGS fund till to the close of audit. Immediate action would need to be taken for adjustment of the advances and intimate the fact to Audit.

(Para 13 of Audit Report of ZGS Adilabad) 4.2 ZGS VISAKHAPATNAM - ADVANCES UN-ADJUSTED &

MEMBERSHIP DEPOSITS PENDING REFUND - IRREGULAR

During the course of audit on Accounts of Zilla Grandhalaya Samstha, Visakhapatnam for the year 2010-11, on verification of the Advances Recoverable Register, it is noticed that the following Advances were paid and pending recovery at the closure of audit.

# Nature of Advance Opening Balance

Advances paid

during 2010-11

Total (Rs.)

Recoveries made

during 2010-11

Balance as on

31.3.2011

1 Education Advance 25,500 85,000 1,10,500 70,500 40,000 2 Festival Advance 66,500 1,14,000 1,80,500 75,500 1,05,000 3 Motor Cycle Advance 1,60,000 1,66,000 3,26,000 49,000 2,77,000 4 TA Advance 3,000 19,500 2,2,500 19,000 3,500 Total 4,25,500

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It is further noticed that the Membership Deposits are also pending refund which is irregular given below

Opening Balance as on

01.04.2010

Membership Deposits Received

Total Deposits

Refund of Deposits

Adjustments Closing Balance as on

31.03.2011 16,27,301 1,10,135 17,37,436 3,710 4,558 17,29,168

Immediate action must be taken for adjustment of advances and also for refund of deposits and intimate to audit.

(Para 11 of Audit Report of ZGS Visakhapatnam)

5) VIOLATION OF RULES (CODE 9)

It was noticed in audit of the Zilla Grandhalaya Samsthas that in some cases the Rules and Government instructions for incurring the expenditure from the funds of the Zilla Grandhalaya Samsthas were violated either due to negligence or ignorance. Certain times, the funds of the Zilla Grandhalaya Samsthas were utilised for purposes other than the permitted ones under the Act / Rules. It was also noticed that in a few cases Government instructions were misunderstood or misinterpreted. Such irregular expenditure incurred was objected in the relevant audit reports.

A consolidated Statement No.3 (2) 1 of Violation of Rules is appended to the report. It could be seen that an amount of Rs.562.48 Lakhs was pointed out in 120 paras. 5.1 ZGS SRIKAKULAM – PAYMENT OF WAGES TO OUT-SOURCING

STAFF – NON-DEDUCTION OF SERVICE TAX AND EDUCATION CESS ON SERVICE TAX – IRREGULAR – NEEDS RECOVERY AND REMITTANCE – Rs.86,091/-

During the Audit on Accounts of Zilla Grandhalaya Samstha Srikakulam for the

year 2010-11, it is noticed that an amount of Rs 6,96,536/- was drawn and paid towards wages of outsourcing staff. But the Service Tax @ 12% and Education Cess on Service Tax @ 3% were not recovered from the Agency/Contractor as detailed below, Wages paid to outsourcing Staff: Rs. :: 6,96,536/- Service Tax @ 12% Rs. :: 83,584/- Education Cess on Service Tax @ 3% Rs :: 2,507/- Total : Rs. :: 86,091/- Immediate action shall be taken to recover the amount from the Contractor and remit the same to the head of account concerned and to produce challan to audit for verification.

(Para No 5 of Audit Report of ZGS Srikakulam)

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5.2 ZGS VIZIANAGARAM – INORDINATE DELAY IN IMPLEMENTATION OF ’E-GRANDHALAYAM’

During the course of Audit of Zilla Grandhalayam Samstha Vizianagaram for the year 2010-2011, it is noticed that the Director of Public Libraries AP Hyderabad vide Proceedings No 217/C2/2003/-C dated 17.10.2007 sanctioned ‘e-Grandhalayam’ Project to provide Electronic Facility to the ZGS Vizianagaram and released Rs 8,50,000/- vide Proceedigs Roc No 21/C3/2007 dated 26.05.2008 for Infrastucture facilities for e-Grandhalayam Project within 3 months from the Receipt of the Funds and an amount Rs 27,500/- was also released, for the same purpose on 18.12.2008.

Out of this amount Rs 3,00,000/- was paid to EE (PR) Vizianagaram on 26.02.2009 towards modification of Interior Room Equipment to enable the existing building compatible to use the systems and net facility and the work was also done by the end of May 2009. Afterwards an amount of Rs 3,88,084/- was paid to National Informatics Center, New Delhi on 06.10.2010 for supply of Electronic Equipment such as the Computer Systems and other Allied Material for use of Network.

Hence it is evident that inordinate delay took place in between the Release of Funds and providing the Building Infrastructure and placing the order for supply of Computers and other Equipment apart from abnormal delay in getting the Rooms intended for the use of Computers and Electronic Equipment provided with required Electrical and other AC facilities. Even though all these facilities were provided, even after lapse of 3 years, the purpose could not be served due to failure in ensuring the retro conversion of books of Grandhalaya Samstha. Unless the books are made available for e- Readers, the purpose of ‘e’ Grandhalayam cannot be said to have been served. Hence, action would need to be taken to rectify the defect under intimation to audit.

(Para 12 of Audit Report of ZGS Vizianagaram) 5.3 ZGS YSR KADAPA – CONTRIBUTORY PENSION SCHEME – NOT

IMPLEMENTED – NEEDS EARLY ACTION During the course of audit, it was observed that the following staff members were

appointed after 01.09.2004. According to GO Ms No 655 Finance (Pen-I) Department dated 22.09.2004, those who were appointed after 01.09.2004 shall come under the Contributory Pension Scheme and @10 % shall be recovered from their Pay and DA and remit to their accounts concerned. Early action would need to be taken to open new accounts and produce the credit particulars to audit for verification.

# Name of the Employee & Designation Date of appointment 1 G Nagarjuna Shetty Office Subordinate 20-6-2005 2 J Siva Sankar Reddy Watchmen 20-6-2005 3 P Jaya Bharath Reddy Librarian 17-5-2006 4 S Pratapudu Record Assistant 7-12-2005 5 M Sudhakar Office Subordinate 7-12-2005 6 E Pavan Kumar Typist 17-6-2009 5 G Reddy Sudhakar Office Subordinate 24-8-2009

(Para 5 of Audit Report of ZGS YSR Kadapa)

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6) NON – REMITTANCE OF DEDUCTIONS / RECOVERIES FROM VOUCHERS/ PAYBILLS / 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 Government account with in a prescribed time under the relevant statutory provisions which also include penalty as well as prosecution for non adherence. The deductions normally made from work bills / pay bills that are to be remitted to Government account are

Work Bills 1. Income Tax 2. VAT Pay Bills 1. Profession Tax 2. G.I.S Premium 3. Contribution to Pension Scheme 4. Sainik Welfare Fund

A consolidated Statement No. 3 (2) 1 of Non Remittance Deductions/ Recoveries

from vouchers pay bills/ contingent bills is appended to the report. It could be seen that an amount of Rs.16.92 Lakhs was pointed out in 13 paras. 6.1 ZGS YSR KADAPA - RECOVERIES MADE FROM PAY BILLS – NOT

REMITTED TO CONCERNED HEAD OF ACCOUNT – NEEDS ACTION – Rs.3,53,989/-

During the course of audit, it was noticed that Statutory Recoveries such as Professional Tax, Group Insurance Scheme, ZGS Provident Fund etc., were made from the Pay Bills of the Employees as detailed below. But the Recovered Amount was not remitted to the Heads of Account concerned. In the absence of the remitted Challans, the correctness of Recoveries remitted to concerned heads of account, could not be verified in Audit. Early action would need to be taken to remit the Amounts which were already recovered from Pay Bills.

# Statutory Recovery Recovered (Rs.)

Adjusted (Rs.)

Balance (Rs.)

1 A.P.G.I.S 19,335 0 19,335 2 Professional Tax 89,015 0 89,015 3 P.F. Recovery 4,77,105 2,72,007 2,05,098 4 Court Attachment 46,077 32,000 14,077 5 Sainik Welfare Fund 1,360 0 1,360 6 Kadapa Ratnalu 25,104 0 25,104 Total 6,57,996 3,04,007 3,53,989

Hence, the outstanding amount Rs. 3,53,989/- would need to be remitted to the

concerned head of account immediately under intimation to Audit.

(Para No 9 of Audit Report of ZGS YSR Kadapa)

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6.2 ZGS RANGA REDDY - RECOVERIES MADE FROM PAY BILLS – NOT REMITTED TO CONCERNED HEAD OF ACCOUNT – NEEDS ACTION – Rs.37,326/-

During the verification of outgoing Remittances, it is observed that the Statutory

Recoveries which were made from the Pay Bills of Staff towards GPF, GIS, PT, LIC, IT etc., were not fully remitted to the concerned Heads of Accounts/Departments. The following Short Remittances were noticed in Audit. Therefore immediate action would need to be taken to make update remittance equal to the recoveries and fact intimated to audit.

# Head Amount Collected

(Rs.)

Amount Remitted

(Rs.)

Balance to be Remitted

(Rs.) 1 GPF Subscription 19,22,229 19,17,977 4,252 2 HCGS Employees Association 11400 10,800 600 3 HCGS Co-operative Society 5,100 1,450 3,650 4 Karnataka Bank Loan 5,47,202 543,642 3,560 5 LIC 5,46,639 5,44,236 2,403 6 GIS 34,590 29,360 5,230 7 PT 2,60,645 2,60,040 605 8 Flag Day 5,120 - 5,120 9 Court Attachments 1,500 - 1,500 10 APEWF 400 - 400 11 Income Tax 2,82,388 2,72,382 10,006 Total 36,17,213 35,79,887 37,326

(Para No 8 of Audit Report of ZGS Ranga Reddy)

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

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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 (2) 2 of Non production of records is appended to the report. It could be seen that an amount of Rs. 163.93 Lakhs was pointed out in 78 paras.

7.1 ZGS YSR KADAPA – WORKS – ESTIMATES, MEASUREMENT BOOKS

AND WORK COMPLETION REPORTS – NOT PRODUCED – Rs.1,98,000/- During the course of audit, it was observed that an aggregate amount of Rs

1,98,000/- was paid, through voucher no. 546/09.08.2010 to the EE (PR) Rajampeta towards Construction of Library Building at Nandaluru. But the connected Estimates, M Books and Work Completion Reports were not made available to Audit for Verification. In the absence of the said items, the correctness of payments could not be verified in audit. Early action would need to be taken to produce the same.

(Para No 10 of Audit Report of ZGS YSR Kadapa) 7.2 ZGS RANGA REDDY – BUILDING CONSTRUCTION – PAYMENT

MADE TO EE (PR) VIKARABAD & HYDERABAD – M BOOKS AND CONNECTED FILES – NOT PRODUCED – HELD UNDER OBJECTIONS – Rs.12,50,000/- During the audit on the accounts of ZGS Ranga Reddy at Vikarabad for the year

2010-11, it was noticed that an amount of Rs. 12,50,000/- was drawn through voucher No. 2453 and paid to EE (PR) Vikarabad and Hyderabad towards Execution of Works but the connected Measurement Books and Files/Records were not produced to Audit for Verification of the expenditure made. Therefore it cannot be admitted in audit.

(Para 11 of Audit Report of ZGS Ranga Reddy)

7.3 ZGS MEDAK – LIBRARY CESS – DETAILS OF DEMAND, COLLECTION AND BALANCE – NOT MAINTAINED

As seen from the annual account for the year relating to ZGS MEDAK, an amount

of Rs. 35,25,326/- towards Library Cess has been realized. As per Section 7(c) of AP State Public Libraries Act 1960 read with Rule 18 of Rules issued vide GO Ms No 841 Education dated 27.03.1961, Gram Panchayats/Municipal Councils/Municipal Corporations have to levy and collect the Library Cess at 8% of House Tax/Property Tax Collection. The Secretary ZGS has to maintain the Demand, Collection and Balance Ledger in the proforma prescribed in DPL Procg No 43-C3/97 dated 10.12.1998. In GO Ms No 409 Education dated 08.11.1994, the Government have formed a Committee under the Chairmanship of Joint Collector of the respective District to review the Collection and Remittance of Library Cess and send Reports to the Director of Public Libraries in the prescribed format.

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But during the course of audit it is observed that the Executive Authority has not maintained details of the Revenue Remitted by the Gram Panchayats/Municipal Councils either through Challans or through DD/Cheques by the Local Authorities. No DCB ledger has been maintained to watch Receipt towards Library Cess. Further GHMC Circles Patancheru and Ramachandrapuram were formed with effect from 15.01.2007 and they fall into the jurisdiction of Medak district. The demand of the Library Cess in respect of newly formed circles was also not maintained and produced to audit. Immediately action would need to be taken for maintaining DCB Register and watch the Remittance of the Library Cess.

(Para 3 of Audit Report of ZGS Medak) 7.4 ZGS YSR KADAPA – NON COLLECTION OF DUES – DETAILS OF

DEMAND, COLLECTION AND BALANCE - NOT PRODUCED The main income of the Zilla Grandhalaya Samstha is Library Cess. As per

section 20 of the Andhra Pradesh Public Libraries Act 1961 the Gram Panchayats and Municipalities shall levy the Library Cess as a component of Property/House Tax and remit the Library Cess so collected to the Zilla Grandhalaya Samstha concerned. The Rate of Library Cess, at present, is 8 Paisa per every Rupee of Property Tax/House Tax collected. Further the Zilla Grandhalaya Samstha should maintain the Demand particulars of Library Cess to be collected every year received from Municipalities and Gram Panchayats in the district and get the Library Cess remitted by them once the Property Tax is collected by the Municipalities and Gram Panchayats in the district.

It was observed that Zilla Grandhalaya Samstha, YSR District has not made serious efforts in this regard. The Demand, Collection and Balance Statements based on the records of the Municipalities/Gram Panchayats were not prepared. The Executive Authority is requested to get prepared the DCB Statements from the Authority concerned and produce the same to Audit.

(Para 2 of Audit Report of ZGS YSR Kadapa)

8) MIS – APPROPRIATIONS (CODE 12)

Cases of Mis-appropriation of money noticed in audit were pointed in the audit

report concerned.

A consolidated Statement No.3 (2) 2 of Mis-appropriations is appended to the report. It could be seen that an amount of Rs.0.43 Lakhs was pointed out in 4 paras. 8.1 ZGS MAHABOOBNAGAR - PROFESSION TAX AMOUNT DEDUCTED

FROM PAY&ALLOWANCES OF THE STAFF –AMOUNT DRAWN BUT NOT REMITTED–MISAPPROPRIATION OF FUNDS – NEEDS ACTION FOR RECOVERY AND REMITTANCE– Rs 43,250/-

An amount of Rs. 43,250/- was deducted from the Salary Bills of Staff for the

months from August 2010 to December 2010, as detailed below, towards Profession Tax and drawn the same in the following Vouchers.

265

# Voucher No & Date Month Amount 1 3139/02.09.2010 August 2010 8830 2 4188/01.01.2010 September & October 2010 17260 3 4709/02.12.2010 November 2010 8430 4 5204/03.01.2011 December 2010 8730

Total 43250

But as verified from the Challans and other connected Records, it was noticed that an amount of Rs.43,250/- as shown above was not remitted to Profession Tax Head of Account till the close of Audit therefore construed as misappropriated. Immediate action would need to be taken to recover and remit an amount of Rs.43,250/- to the concerned Head of Profession Tax apart from initiating disciplinary action against person or persons responsible as per GO Ms No 25 GAD (SER-C) Department dated 03.02.2004.

(Para No 6.6 of Audit Report of ZGS Mahaboobnagar)

9. OTHERS (CODE 18)

Other objections which were not fallen in the above categories are incorporated under this category. Such objections numbering 83 were raised for an amount of Rs.3325.10 lakhs as detailed in Statement 3 (2) 2. 9.1 ZGS KRISHNA – MISSING OF LIBRARY BOOKS – COST NOT

RECOVERED – Rs.98,069/- The ZGS in its Resolution No 6 dated 27.08.2010 proposed to regulate 6190 number of missing books in respect of 30 Branch Librarians as per GO Ms 1035 Education Department dated 17.09.2010 which stipulates for Recovery of Cost or Write-Off in respect of missing books and submitted proposals to Director of Public Libraries vide Letter Roc No 17/A3/2010 dated 17.09.2010. But no orders were received, hence the amount of Rs 98,069/- (Rupees Ninety Eight Thousand and Sixty Nine only) needs to be recovered from the Librarians concerned.

(Para 10 of Audit Report of ZGS, Krishna)

pDIRECTOR

A.P., HYDERABAD PLACE: HYDERABAD DATED: 30-08-2013.

ACCOUNT STATEMENTS OF ZILLA GRANDHALAYA SAMSTHAS

SECTION - II

Demand as on 31-3-2010

Audit completed as on 31-3-2011

Balance as on 31-3-2011

Current Current Current1 Adilabad 1 1 0

2 Ananthapur 1 1 0

3 Chittoor 1 1 0

4 East Godavari 1 1 0

5 Guntur 1 1 0

6 Kadapa 1 1 0

7 Karimnagar 1 1 0

8 Khammam 1 1 0

9 Krishna 1 1 0

10 Kurnool 1 1 0

11 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 Prakasham 1 1 0

17 Ranga Reddy 1 1 0

18 Srikakulam 1 1 0

19 Visakhapatnam 1 1 0

20 Vizianagaram 1 1 0

21 Warangal 1 1 0

22 West Godavari 1 1 0

23 Hyderabad 1 1 0Total 23 23 0

Sl.No.


STATEMENT No.1

STATEMENT SHOWING DISTRICT WISE STATUS OF AUDIT OF ZILLA GRANDHALAYA SAMTHAS FOR THE YEAR 2010-11

Page 266

Sl.No. NAME OF THE DISTRICT RECEIPTS PAYMENTS

1 Adilabad 267.48 315.64

2 Ananthapur 357.75 382.49

3 Chittoor 468.8 457.82

4 East Godavari 462.02 611.84

5 Guntur 391.05 614.23

6 Kadapa 333.92 265.03

7 Karimnagar 335.33 278.58

8 Khammam 207.27 210.17

9 Krishna 533.69 850.67

10 Kurnool 302.88 344.24

11 Mahabubnagar 267.82 291.75

12 Medak 269.05 238.87

13 Nalgonda 306.01 267.58

14 Nellore 318.64 367.28

15 Nizamabad 254.73 319.98

16 Prakasham 324.61 292.31

17 Ranga Reddy 397.95 273.83

18 Srikakulam 280.41 281


20 Vizianagaram 297.66 175.88

21 Warangal 318.4 306.72

22 West Godavari 432.27 439.6

23 Hyderabad 734.49 1002.68

Total 8160.14 9002.14

STATEMENT No.2 (1)

STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENTS OF ZILLA GRANDHALAYA SAMTHAS FOR THE YEAR 2010-11

Rs. In lakhs

Page 267

# Name of the DIstrict

Library Cess

Salary Grant

Pension Grant

Contingent Grant

Sale of Old

News Papers

Membership

Deposit

Security Deposit

Other Deposit

Other Receipts

Advances

Recoverable

FBF,GIS to retied

employees

RRLF Grants towards

Pay bills

Recoveries

Advance grants

towards for payment of

Other develop

ment grants

Outsourcing renumeration

Total

1 Adilabad 37.71 104.97 57.31 0.00 0.32 0.38 0.10 0.00 26.43 3.78 0.00 0.00 36.48 0.00 0.00 0.00 267.482 Ananthapur 99.48 120.00 80.00 0.00 1.17 0.78 0.00 0.00 56.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 357.753 Chittoor 178.81 200.80 0.00 0.00 1.40 0.41 0.00 0.25 86.52 0.61 0.00 0.00 0.00 0.00 0.00 0.00 468.804 East Godavari 147.15 220.00 0.00 0.00 1.71 1.48 0.08 0.20 9.85 1.63 0.06 0.00 55.77 24.09 0.00 0.00 462.025 Guntur 115.82 250.00 11.79 0.00 0.00 1.77 0.05 0.00 10.10 0.00 0.63 0.89 0.00 0.00 0.00 0.00 391.056 Kadapa 108.01 196.60 0.00 15.78 0.71 0.58 0.15 0.00 1.96 0.00 0.00 0.00 10.13 0.00 0.00 0.00 333.927 Karimnagar 93.40 190.00 0.00 11.72 0.45 0.80 19.54 0.00 0.06 2.00 1.12 0.00 13.02 0.00 3.22 0.00 335.338 Khammam 24.84 150.36 0.00 0.00 0.84 0.61 0.00 10.82 9.02 10.78 0.00 0.00 0.00 0.00 0.00 0.00 207.279 Krishna 367.14 155.61 0.00 0.00 0.40 2.66 0.00 0.00 6.29 1.59 0.00 0.00 0.00 0.00 0.00 0.00 533.6910 Kurnool 107.85 163.18 0.00 0.00 0.70 0.38 0.00 0.19 30.58 0.00 0.00 0.00 0.00 0.00 0.00 0.00 302.8811 Mahabubnagar 40.73 190.42 0.00 7.40 0.59 0.00 0.58 17.84 10.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 267.8212 Medak 35.25 200.56 0.00 0.00 0.91 0.74 23.45 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.00 8.09 269.0513 Nalgonda 54.54 225.38 0.00 0.00 0.00 0.88 0.00 0.00 22.47 2.74 0.00 0.00 0.00 0.00 0.00 0.00 306.0114 Nellore 58.95 221.80 0.69 0.00 0.06 0.84 0.00 0.00 0.14 1.36 0.00 0.00 30.62 0.00 0.00 4.18 318.6415 Nizamabad 42.47 0.00 207.04 0.00 0.77 0.68 0.14 0.14 3.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 254.7316 Prakasham 124.05 183.62 0.00 0.00 1.80 0.93 0.00 0.00 13.93 0.28 0.00 0.00 0.00 0.00 0.00 0.00 324.6117 Ranga Reddy 295.18 92.00 0.00 0.00 1.20 1.30 0.00 5.56 0.61 2.10 0.00 0.00 0.00 0.00 0.00 0.00 397.9518 Srikakulam 50.39 160.04 0.00 14.77 0.92 0.92 0.00 22.47 30.66 0.24 0.00 0.00 0.00 0.00 0.00 0.00 280.4119 Visakhapatnam 117.32 60.00 60.00 12.80 0.60 1.10 0.30 0.00 43.65 2.14 0.00 0.00 0.00 0.00 0.00 0.00 297.9120 Vizianagaram 139.08 126.24 0.00 6.61 0.00 0.41 0.00 0.07 0.59 24.66 0.00 0.00 0.00 0.00 0.00 0.00 297.6621 Warangal 158.89 140.48 0.00 14.69 1.16 2.08 0.00 0.00 1.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 318.4022 West Godavari 141.90 232.81 0.00 0.00 0.00 1.36 0.00 30.44 24.42 1.34 0.00 0.00 0.00 0.00 0.00 0.00 432.2723 Hyderabad 474.99 125.43 0.00 0.00 0.00 3.63 0.00 37.71 29.92 8.84 0.00 0.00 53.97 0.00 0.00 0.00 734.49

Total 3013.95 3710.30 416.83 83.77 15.71 24.72 44.39 125.69 418.37 64.14 1.81 0.89 199.99 24.09 3.22 12.27 8160.14

STATEMENT No.2 (2)STATEMENT 2(2) OF CONSOLIDATED RECEIPTS AND EXPENDITURE OF ZILLA GRANDHALAYA SAMTHAS

FOR THE YEAR 2009-10 ( RECEIPT HEADS)Rs. In lakhs

Page 268

# Name of the District

Cost of books and Pdls

Salaries Pension

Expenditure from

Contingent

TA& LTC

Membership deposi

ts

Security

Deposits

Other Deposi

ts Refun

ded

Other Admin Expenditure

Advances

Recoverable

Cost of Buildin

gs

Investments Others PF

FBF and

GIS to Retired Emplo

yees

OutSourcing

Employees

Salaries

Remittance of

pay bill recoveri

es

Wages

Honororium to chair

person

Total

1 Adilabad 7.03 135.95 57.31 0.00 3.39 0.01 0.00 0.00 30.57 5.93 31.77 0.00 1.46 0.00 1.29 4.75 36.18 0.00 0.00 315.642 Ananthapur 13.75 150.00 105.53 0.00 2.47 0.02 0.00 0.00 26.90 0.00 27.00 21.14 35.68 0.00 0.00 0.00 0.00 0.00 382.493 Chittoor 10.60 196.05 109.81 0.00 1.28 0.00 0.00 0.08 88.67 0.69 50.33 0.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 457.824 East Godavari 18.67 217.63 244.34 7.68 2.92 0.07 0.00 0.10 2.67 5.13 0.34 0.00 1.60 55.77 5.00 23.73 25.89 0.30 611.845 Guntur 26.34 326.39 206.17 10.13 4.16 0.10 0.00 0.01 0.31 0.00 4.02 0.00 13.95 0.00 0.24 22.41 0.00 0.00 0.00 614.236 Kadapa 7.41 140.19 77.87 17.40 1.84 0.03 2.67 7.12 5.87 1.65 1.98 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 265.037 Karimnagar 8.44 201.47 9.37 15.80 0.75 0.01 3.16 0.00 0.00 1.78 24.67 0.00 0.11 0.00 0.00 0.00 13.02 0.00 0.00 278.588 Khammam 6.73 117.58 39.62 0.00 1.91 0.01 0.00 15.62 20.30 1.95 0.00 0.00 6.45 0.00 0.00 0.00 0.00 0.00 0.00 210.179 Krishna 28.24 535.27 214.56 0.00 3.90 0.00 0.00 0.19 15.89 4.93 17.86 0.00 29.83 0.00 0.00 0.00 0.00 0.00 0.00 850.6710 Kurnool 17.36 124.19 118.33 3.44 2.24 0.01 0.00 0.00 1.00 0.00 0.00 0.00 77.67 0.00 0.00 0.00 0.00 0.00 0.00 344.2411 Mahabubnagar 11.47 127.71 39.61 27.03 2.88 0.00 0.00 18.05 62.18 2.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 291.7512 Medak 3.53 137.11 66.14 0.00 2.36 0.01 22.66 0.00 1.17 1.22 2.00 0.00 2.67 0.00 0.00 0.00 0.00 0.00 0.00 238.8713 Nalgonda 8.69 151.54 55.06 1.69 1.18 0.04 0.00 0.00 0.00 3.37 4.79 0.00 41.22 0.00 0.00 0.00 0.00 0.00 0.00 267.5814 Nellore 14.82 189.11 100.05 16.85 1.35 0.00 0.00 0.03 0.75 2.93 0.00 0.00 5.00 0.00 0.00 5.84 30.55 0.00 0.00 367.2815 Nizamabad 6.67 0.00 257.62 22.66 1.38 0.00 0.00 0.00 0.00 3.47 6.52 0.00 0.00 0.00 0.00 0.00 21.66 0.00 0.00 319.9816 Prakasham 8.97 184.05 62.92 0.00 1.08 0.06 0.00 0.00 22.47 0.79 0.00 0.00 11.97 0.00 0.00 0.00 0.00 0.00 0.00 292.3117 Ranga Reddy 15.23 128.69 68.84 0.00 2.73 0.02 0.00 5.56 23.00 1.89 17.03 0.00 10.84 0.00 0.00 0.00 0.00 0.00 0.00 273.8318 Srikakulam 8.31 123.62 47.11 0.00 3.09 7.31 0.00 8.85 14.22 0.00 59.01 0.00 9.48 0.00 0.00 0.00 0.00 0.00 0.00 281.0019 Visakhapatnam 15.74 171.37 132.01 38.00 3.15 0.04 0.00 0.00 0.00 3.84 15.46 0.00 34.34 0.00 0.00 0.00 0.00 0.00 0.00 413.9520 Vizianagaram 5.05 86.57 33.00 12.83 0.97 0.00 0.00 0.54 23.39 0.00 0.00 0.00 13.53 0.00 0.00 0.00 0.00 0.00 0.00 175.8821 Warangal 12.44 191.73 0.00 15.64 1.68 0.00 0.00 0.00 4.83 8.66 7.89 0.00 63.85 0.00 0.00 0.00 0.00 306.7222 West Godavari 12.02 190.68 154.50 1.37 3.14 0.21 0.00 30.43 30.13 14.62 2.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 439.6023 Hyderabad 20.12 624.33 0.00 0.00 10.00 0.10 0.00 36.56 2.91 4.61 218.00 0.00 59.42 26.63 0.00 0.00 0.00 0.00 0.00 1002.68

Total 287.63 4451.23 2199.77 190.52 59.85 8.05 28.49 123.14 377.23 70.28 491.17 21.45 420.07 82.40 6.53 56.73 101.41 25.89 0.30 9002.14

STATEMENT No. 2(3)STATEMENT OF CONSOLIDATED RECEIPTS AND PAYMENT OF ZILLA GRANDHALAYA SAMTHAS

FOR THE YEAR 2010-11 ( PAYMENT HEADS)Rs. In lakhs

Page 269

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.1 Adilabad 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 1.2 3 0.07 0 02 Ananthapur 0 0 3 1.25 0 0 0 0 0 0 0 0 1 1.79 1 0 6 5.32 2 1.243 Chittoor 0 0 1 55.56 0 0 0 0 0 0 0 0 0 0 0 0 4 0.7 0 04 East Godavari 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 5.97 4 0 1 0.235 Guntur 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 3 0 0 06 Kadapa 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0.2 5 0 1 3.547 Karimnagar 1 0 0 0 0 0 0 0 0 0 0 1 0.32 1 5 1 0 0 08 Khammam 1 1.05 0 0 1 0 1 0 0 0 0 0 1 0 0 0 15 44.77 2 0.029 Krishna 1 1.02 0 0 0 0 1 0.39 0 0 0 0 2 1.13 0 0 14 363.31 0 010 Kurnool 1 0 2 0 2 0 1 0 0 0 0 0 1 0 0 0 6 0 0 011 Mahabubnagar 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0.1 4 3.3 0 012 Medak 1 0 0 0 0 0 1 5.17 0 0 0 0 1 0 1 0 5 0 0 013 Nalgonda 1 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 3 0.88 0 014 Nellore 1 0 2 6.55 0 0 0 0 0 0 0 0 0 0 0 0 6 0.05 0 015 Nizamabad 0 0 2 94.33 0 0 0 0 0 0 0 0 0 0 0 0 2 130.07 0 016 Prakasham 0 0 1 1.29 0 0 1 0 0 0 0 0 0 0 1 0.05 5 0.19 0 017 Ranga Reddy 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 0 3 0.04 0 018 Srikakulam 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 9 1.86 1 10.4619 Visakhapatnam 0 0 2 5.47 0 0 1 1.05 0 0 0 0 1 0.05 1 0 0 0 0 020 Vizianagaram 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 5 0.1 0 021 Warangal 0 0 3 0.77 0 0 0 0 0 0 0 0 1 0.98 2 3.25 12 11.14 2 0.6422 West Godavari 1 112.36 0 0 0 0 0 0 0 0 0 0 0 0 1 0 2 0.52 1 0.0123 Hyderabad 0 0 1 475.68 0 0 0 0 0 0 0 0 0 0 0 0 3 0.16 3 0.78

Total 9 114.43 19 640.90 4 0 8 6.61 0 0 0 0 14 4.27 14 15.77 120 562.48 13 16.92

STATEMENT 3 (2)1STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY AUDIT OBJECTIONS

Rs. In lakhs

Non-collection

of dues


Advances pending

adjustment

Violation of Rules


recoveries

Excess Utilisation of Grants /

Funds

Diversion of Grants /

Funds

Non-utilisation

of Earmarked

Name of the District#




Page 271

Sl.No. Name of the Category No. Amount

1 Variation in Account figures 9 114.43

2 Excess Utilisation of Grants/Funds 19 640.90

3 Diversion of Grants/Funds 4 0.00

4 Non-utilisation of Grants before lapsable dates 8 6.61

5 Mis-utilisation of Grants/Funds 0 0.00

6 Non-utilisation of Earmarked funds 0 0.00



9 Violation of rules 120 562.48

10 Non-remittance of deductions/ recoveries from work bills/ pay bills/ contingent bills etc. 13 16.92

11 Non production of records 78 163.93

12 Mis-appropriation/Fraud 4 0.43

13 Excess payments 27 4.87

14 Wasteful expenditure 3 0.03

15 Instances of cases of unaccounted Cash / Stores 1 1.05

16 Pendency of Utilisation certificates 13 137.58

17 Surcharge Certificates - Recovery pending 0 0.00

18 Others 83 3325.10

19 DD/Cheques received but not realized within time. 0 0.00

TOTAL 410 4994.37

STATEMENT No.3 (1)

STATEMENT SHOWING NO. OF OBJECTIONS ( CATEGORY - WISE ) AND AMOUNT INVOLVED FOR THE YEAR 2010-11

Rs. In lakhs

Page 270

No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs. No. Rs.1 Adilabad 4 43.95 0 0 1 0.01 0 0 0 0 0 0 0 0 1 0.07 0 0 11 45.302 Ananthapur 6 41 0 0 2 1 0 0 0 0 0 0 0 0 5 0 0 0 26 51.603 Chitoor 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 7 56.264 East Godavari 5 0 0 0 2 0.78 0 0 0 0 1 0 0 0 7 0 0 0 21 6.985 Guntur 6 4.4 1 0 3 0.29 1 0.03 0 0 0 0 0 0 6 0.26 0 0 21 4.986 Kadapa 5 2.76 0 0 0 0 0 0 0 0 1 0 0 0 7 0 0 0 22 6.507 Karimnagar 1 17 0 0 1 0.14 0 0 0 0 1 0 0 0 1 0 0 0 8 22.468 Khammam 8 0 0 0 2 0.8 0 0 0 0 1 0 0 0 2 0 0 0 34 46.649 Krishna 5 0.17 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 26 366.0210 Kurnool 3 0 0 0 1 0.44 1 0 0 0 1 0 0 0 5 0 0 0 24 0.4411 Mahabubnagar 3 10.04 2 0.43 3 0.3 0 0 0 0 1 0.64 0 0 2 0 0 0 17 14.8112 Medak 3 8 0 0 2 0.22 0 0 1 1.05 1 0 0 0 3 0 0 0 19 14.4413 Nalgonda 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 8 0.8814 Nellore 4 0.04 0 0 3 0.27 1 0 0 0 1 0 0 0 5 0 0 0 23 6.9115 Nizamabad 0 0 0 0 1 0.01 0 0 0 0 1 0 0 0 3 0 0 0 9 224.4116 Prakasham 0 0 0 0 1 0.19 0 0 0 0 0 0 0 0 2 0 0 0 11 1.7217 Ranga Reddy 1 12.5 1 0 0 0 0 0 0 0 0 0 0 0 4 0 0 0 12 12.5418 Srikakulam 4 0.26 0 0 0 0 0 0 0 0 1 0 0 0 6 0 0 0 22 12.5819 Visakhapatnam 3 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 11.5720 Vizianagaram 1 1.56 0 0 0 0 0 0 0 0 1 132.84 0 0 2 0 0 0 11 134.5021 Warangal 8 4.56 0 0 4 0.1 0 0 0 0 1 4.1 0 0 8 4.15 0 0 41 29.6922 West Godavari 1 0 0 0 1 0.32 0 0 0 0 1 0 0 0 3 0 0 0 11 113.2123 Hyderabad 6 12.69 0 0 0 0 0 0 0 0 0 0 0 0 5 3320.62 0 0 18 3809.93

Total 78 163.93 4 0.43 27 4.87 3 0.03 1 1.05 13 137.58 0 0 83 3325.10 0 0 410 4994.37

Total

STATEMENT SHOWING THE CONSOLIDATED DIST AND CATEGORY WISE AUDIT OBJECTIONSSTATEMENT 3(2) 2


Rs. In lakhs



unaccounted for cash/

stores

Pendency of Utilisation certificates

Surcharge certificates recovery pending

Others

DD/Cheques received

but not realised

within time

#

Non-production of records

Mis-appropriation

Excess payments

Page 272

© DIRECTOR OF STATE AUDIT

A.P. HYDERABAD 2013

PUBLISHED BY THE DIRECTOR OF STATE AUDIT, A.P HYDERABAD AND PRINTED AT BHASKAR OFFSET PRINTERS, # 1-8-724/3/1, NALLAKUNTA,

HYDERABAD-500004, TELEPHONE No.040-65522888, 32493275.

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