TENTH GOVERNING BODY MEETINGOF

KARNATAKA EVALUATION AUTHORITY

CHAIRED BY

CHAIRPERSON OF KEA GOVERNING BODY

&

SECRETARY TO GOVERNMENT OF KARNATAKA

PLANNING, PROGRAMME MONITORING AND STATISTICS DEPARTMENT

DATE: 29th March 2016

TIME: 11.00 AM

VENUE

Committee Room

No. 222, 2nd Floor,

Vikasa Soudha, Bengaluru - 560 001.

I N D E X

SL. NO.

AGENDA PARTICULARS PAGE NO.

1 Agenda Subject 1

Confirming the resolutions of 9th meeting and the action taken on them.

1-2

2 Agenda Subject 2

Approval of the proposed Budget of KEA for the year 2016-17

3

3Agenda

Subject 3Furnishing the Accounts of Current Receipts and Disbursements of the year 2015-16 up to February 2016

4-5

4Agenda

Subject 4Renewing the contract period of Karnataka Institute of Public Auditors for providing one accounts officer 6

5 Agenda Subject 5

Regarding the matter of treating bank interest earned by KEA as part of the grants made to KEA for evaluation 7-8

6Agenda

Subject 6Action taken on the Direction of the Governing Body of KEA in the 10th subject of its eighth meeting held on 31st March 2015

9

7 Annexures

1. Copy of the proceeding of the 9th meeting of the Governing Body held on 25th June 2015.

2. Government of Karnataka order no. HD 173 EFS 2010 dated 05th January 2012.

3. Government of Karnataka order no. HD 173 EFS 2010 dated 10th February 2012.

10-15

16-17

18-19

AGENDA SUBJECT 1

CONFIRMING THE RESOLUTIONS OF 9 TH MEETING AND THE

ACTION TAKEN ON THEM.

(PROCEEDINGS ARE ENCLOSED AS ANNEXURE 1)

The Governing Body is requested to confirm the resolutions and please note the

action taken on subjects where action was called for, which are-

1. Agenda subject2: No action called for as the contents of expenditure and

receipts were noted by the Governing Body.

2. Agenda subject 3: No action called for as the budget was approved by the

Governing Body without changes.

3. Agenda subject 4: No action called for as the Report of the Governing

Body on the affairs of the KEA for the year 2014-15 was approved by the

Governing Body without changes.

4. Agenda subject 5: The list of Evaluation Studies approved by the

Governing Body has been filed in KEA. KEA has written to all those who

had requested for Evaluation studies and in case of Evaluation studies

occurring in serial numbers 1 to 3, 7 to 9, 15, 22, 24, 25 and three studies

of UAS, Bangalore, the studies have commenced by at least the

preparation of Terms of Reference.

5. Agenda subject 6: The lowest negotiated rate of service charge of

5.00001 % of M/s S.A Manpower Services Private Limited, No. 35/1,

“Mandara”, Opposite Reliance Trends, 1st Floor, 11th Cross, 1st Main

Road, Bangalore 560 003 for providing supporting staff to KEA for the

period 01st June 2015 to 31st May 2017 has been accepted and a formal

contract entered into.

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6. Agenda subject 7: The office order no. PD 34 KEA 2013 dated: 23rd

August 2013 of the CEO, KEA, which had deemed that M/s. Lekka

Consultancy Service Private Limited had completed 50% of the work and

had ordered that it was entitled to receive a payment of Rs. 193025 has

been set aside by passing a formal order citing the decision of the

Governing Body. Notice has been issued to the company for recovery but

that has been fruitless till date.

7. Agenda subject 8: Action has been taken on all the resolutions made. In

case of adopting “Tally” system of accounting, it is to commence from

the 01st of April 2016. In case of interest earned to be taken as

“Evaluation Fund” the proposal sent to finance department was returned

with the remark that the resolution made by the Governing body was not

explicit of the same. A subject (subject number 5) on that is been

introduced in this Governing body agenda.

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AGENDA SUBJECT 2

APPROVAL OF THE PROPOSED BUDGET OF KEA FOR THE YEAR

2016-17

The proposed budget of Karnataka Evaluation Authority for the year

2016-17 is as in the table under. It is requested that the proposed budget may be

discussed by the Governing Body and adopted, after such changes as may be

felt to be appropriate, and permitted to be taken to the next General Body

meeting for approval as required by Rule 14(3) of the Karnataka Evaluation

Authority (KEA) Rules, 2011.

PROPOSED BUDGET OF KEA FOR 2016-17

Sl .no Name of Work/Task Allocation in lac Rupees

1 Salaries and Establishment Cost. 90.00

2Operations and Maintenance expenses of KEA.

27.00

3Providing Support to Human Development Department.

50.00

4

Conducting Evaluation studies (including payment for evaluations commenced in 2015-16 and carried over to this financial year)

214.00

5Conducting Training Programmes related to Evaluation.

19.00

Total 400.00

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AGENDA SUBJECT 3

FURNISHING THE ACCOUNTS OF CURRENT RECEIPTS AND

DISBURSEMENTS OF THE YEAR 2015-16 UP TO

FEBRUARY 2016

The following is the summary of receipts and expenditure up to the end of February 2016 for the year 2015-16.

EXPENDITURE STATEMENT

Sl No Particulars Total in Rs.

1 Schemes Evaluation Expenses 8002084

2 Salary & Allowances 3683192

3 Salary for Outsource Staff(KEA) (HDD) 3960797

4Workshop, Training, Seminar & Meeting Expenses HDD 235020

5 Meeting Expenses KEA(Technical Meeting) 1176646 Sitting Fees, Conveyance & Travelling Expenses 935867 Books & Periodicals- newspaper(KEA) (HDD) 310288 Notification Expenses 3150409 Printing & Stationery & Consumables 94722

10 Telephone & Postage-(KEA, HDD) 7706911 Office Expenses 17449512 Vehicle Maintenance 2283913 Petrol KEA, HDD 10954114 Furniture & Fixtures KEA 515690

 15  

a) Releases to Zilla Panchayats (towards preparation of DHDRS) 1450000b) Release to Zilla Panchayats towards printing of DHD Reports 1943818c) Translation of DHD Reports 59070

16 Audit and online IT quarterly report filing charges. 4393017 Vehicle hire 118874718 Medical Reimbursement 10830

19 refund of EMD 52222220 Advance to Planning Department 44183

  Total 226955674 of 19

RECEIPT STATEMENT

Sl. no Receipt fromAmount in

Rupees1 Opening Balance 86526669.56

2 Grant in Aid from State Government 15000000.00

3Deposits for the sponsored Evaluation studies form other Departments/ Agencies

1570000.00

4 Interest on Bank Deposits 580192.00

5Grant in Aid from Government of India/ UNDP etc.

84765.00

6 EMD from Agencies 1139933.007 Refunds 39673.008 Miscellaneous (application fee etc.) 20000.00

Total 104961232.56

The balance in the “KEA fund” account was Rs. 82265665.56(Rupees Eight Crore Twenty Two Lac Sixty Five Thousand Six hundred and Sixty five and paisa Fifty Six only) as on 29.02.2016.

The accounts of the 2015-16 are being maintained as per the provisions of the KEA Finance and Accounts Manual.

The Governing Body is requested to please note the above details and offer suggestions where required.

.

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AGENDA SUBJECT 4

RENEWING THE CONTRACT PERIOD OF KARNATAKA

INSTITUTE OF PUBLIC AUDITORS FOR PROVIDING ONE

ACCOUNTS OFFICER

The Karnataka Institute of Public Auditors (KIPA), Bangalore, have been

providing the service of one Accounts Officer, on contract basis of one year

since 03rd March 2015 in accordance with the approvals in subject number 6 of

the 8th Meeting of the Governing Body held on 31st March 2015 and in subject

number 16(vii) of its Third meeting [resolving that Accounts Officer should be

engaged through KIPA with monthly remuneration to be decided by the

President of the Governing Body].The contract has expired on 02ndMarch 2016.

The service of an Accounts Officer is necessary for the functioning of the

KEA.It is a sanctioned post which has never been filled by the State by posting

an Accounts Officer to KEA on deputation ever since it was created.

Hence, it is recommended that the Governing Body be pleased to

resolve that the contract to provide one Accounts Officer made with KIPA

may be renewed for a further period of TWO years from 03rd March 2016

(contract will then end on 02nd March 2018) or until an incumbent is posted

by the State to the post of Accounts Officer, whichever is earlier.

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AGENDA SUBJECT 5

REGARDING THE MATTER OF TREATING BANK INTEREST

EARNED BY KEA AS PART OF THE GRANTS MADE TO KEA FOR

EVALUATION

In the discussion of the audit report of KEA for the year2014-15 that

formed subject number 8 of the 9th meeting of the Governing Body of KEA held

on 25th June 2015, the representative of the statutory Auditor of KEA present in

the meeting made, amongst four points ‘A’ to ‘D’ , the following point as point

‘C’-

“The finance department of the Government of Karnataka has issued

specific orders for some institutions and Special Purpose Vehicles (SPV)

wherein interest earned on Government grants kept in banks have been

regarded as part of that grant and not an income. There should be one order

got issued for KEA too”.

The resolution on that point was as follows-

“The Governing Body resolved to approve of the suggestion mentioned

in point ‘A’ of the above discussion. It directed the CEO, KEA, to take steps to

adopt the “tally” double entry system of accounting. He is also instructed to

move the matter for issuance of a government order on the lines mentioned in

point ‘D’ of the discussion above and get the audited statement of accounts filed

along with the list of members with the Registrar of Societies”.

What should have been recorded as “He is also instructed to move the matter

for issuance of a government order on the lines mentioned in point ‘C’ of the

discussion above…” but inadvertently instead of ‘C’ the word ‘D’ got typed.

When the file was sent to finance department along with copies of Government

orders HD 173 EFS 2010 dated 05th January 2012 and 10th February 2012

(copies enclosed as Annexures 2 and 3 of this meeting Agenda Notes) for

issuing a Government order to the effect that “Interest earned on the grant of

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KEA kept in KEA fund in the bank shall be treated as grants of the Government

which should be utilized only for carrying out evaluation studies,” the finance

department observed in its note as follows-

¸ÀASÉå: DE 317 ªÉZÀÑ 6/2015, DyðPÀ E¯ÁSÉ ªÉZÀÑ 6PÉ.E.J 195 E«J£ï 2015 ¢£ÁAPÀ: 30.07.2015

¥Àæ¸ÁÛªÀ£ÉAiÀÄ£ÀÄß ¥Àj²Ã°¸À¯Á¬ÄvÀÄ. PÀ£ÁðlPÀ ªÀiË®åªÀiÁ¥À£À ¥Áæ¢üPÁgÀzÀ ¢£ÁAPÀ: 25.06.2015gÀ DqÀ½vÀ ªÀÄAqÀ½AiÀÄ (Governing Body) s¸À¨sÉAiÀÄ £ÀqÀªÀ½UÀ¼À°è CeÉAqÁ 8gÀ°è£À ‘¹’ CA±ÀPÉÌ ¸ÀA§A¢ü¹zÀAvÉ DqÀ½vÀ ªÀÄAqÀ½AiÀÄÄ vÉUÉzÀÄPÉÆArgÀĪÀ ¤zsÁðgÀªÀÅ Resolution £À°è PÀAqÀħgÀÄwÛ®è. F PÀÄjvÀAvÉ ¸ÀàµÀÖ ªÀiÁ»wAiÀÄ£ÀÄß MzÀV¸ÀĪÀAvÉ PÉÆÃgÀ¯ÁVzÉ.

It is therefore recommended that the Governing Body be pleased to

resolve that in the resolution made under subject number 8 of the 9th

meeting of the Governing Body of KEA held on 25th June 2015, ‘D’ may be

read as ‘C’ thereby meaning that interest earned by KEA on Government

grants kept in the KEA fund of Bank be regarded as part of that grant and

not an income. Like other departments, there should be one order got

issued for KEA too.

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AGENDA SUBJECT 6

ACTION TAKEN ON THE DIRECTION OF THE GOVERNING BODY

OF KEA IN THE 10 TH SUBJECT OF ITS EIGHTH MEETING HELD ON

31 ST MARCH 2015

In the eighth meeting of the Governing Body of KEA held on the 31 st of

March 2015, permission was sought by CEO, KEA, to get ISO (International

Standards Organization) certification for the processes of KEA. The Governing

body was pleased to approve this for obtaining ISO 9001:2008 certification.

It is submitted that “The process of conducting programmes/schemes

evaluations and research studies from preparation of terms of reference to

grading of final evaluation reports and the maintenance of records relating to

it” has been ISO 9001:2015 (the latest version of 9001:2008) certified with

effect from 15th March 2016 vide certificate number 24375 of Universal

Registrars.

The Governing Body is requested to please note that its directions of

ISO certification have been complied with by KEA.

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ANNEXURE 1

PROCEEDINGS OF THE NINTH GOVERNING BODY MEETING OF KARNATAKA EVALUATION AUTHORITY

No: KEA 190 EVN 2015 Dated: 25th June 2015

The Ninth Governing Body Meeting of Karnataka Evaluation Authority

(KEA) was held on 25th June 2015 from 11.00 AM in Room No. 253, M.S

Building, Bangalore, under the Chairpersonship of the President, KEA and

Principal Secretary to Government, Planning, Programme Monitoring and

Statistics Department. The list of members present in the meeting is annexed.

The Member Secretary and Chief Evaluation Officer (CEO), KEA welcomed

the President, KEA Governing Body, and all members to the meeting. After

discussions, the following resolutions were made and decisions taken in the

meeting.

AGENDA SUBJECT 1

To confirm the resolutions of the Eighth Governing Body Meeting of

KEA held on 31st March 2015.

Discussion : In case of the action taken on agenda subject number 5 of the 8th

Governing Body meeting, the CEO, KEA, submitted that the provisions of

clauses 7 and 8 of Government of Karnataka order number PD 22 SMC 2013

dated 2013 wherein it was provided that the Principal Secretary, Planning could

appoint any retired government servant to any vacant post in KEA with the

approval of the Governing Body could not be brought to the notice of the Body.

He requested that the mode of engagement of Mr. S.A.Katarki as Consultant

(Evaluation) may be considered in accordance with this provision. The

Governing Body resolved to recommend to the Principal Secretary, Planning, to

appoint him to the post of Consultant (Evaluation) against one of the posts of

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Director of Evaluations, sanctioned for KEA, under the said order on the terms

and conditions and tenure that were decided for him in the resolution under

subject number 5 of the 8th Governing Body meeting.

Resolution: The decisions taken in the Eighth Governing Body meeting were

confirmed and actions taken on each resolution were noted. With regards to the

appointment of Mr. S.A.Katarki, it was resolved to recommend to the Principal

Secretary, Planning, to appoint him as Consultant (Evaluation) against one of

the posts of Director of Evaluations, sanctioned for KEA on such terms and

conditions and tenure as were decided for him in the resolution under subject

number 5 of the 8th Governing Body meeting.

AGENDA SUBJECT 2

To furnish the accounts of current receipts and disbursements of the year

2015-16 up to May 2015.

Resolution : The accounts furnished were gone through and noted. There were

no suggestions on any specific point/item of accounts.

AGENDA SUBJECT 3

Approval of the budget for 2015-16 of KEA for Rs 3 Crores.

Resolution: The Governing Body approved the budget of KEA for 2015-16 for

Rs 3 crores without any changes.

AGENDA SUBJECT-4

Approval of the report of the Governing Body on the affairs of KEA for

the year 2014-15 for placing before the General Body.

Resolution: The report on the affairs of the KEA for 2014-15 was accepted by

the Governing Body to be placed before the fourth General Body.

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AGENDA SUBJECT-5

Finalizing the topics/schemes for external evaluations from those

proposed by various departments and parastatals for 2015-16.

Discussion: The President of the Governing Body of KEA suggested that

Evaluation of schemes and Studies should be listed separately. The CEO, KEA,

requested the Body to consider the case for evaluation of HOPCOMS, for which

the ToR was approved by the Technical Committee of KEA in the previous

financial year.

Resolution: The Governing Body resolved to include Evaluation studies listed

under serial numbers 1 to 4, 6,7,11 to 13, 15, 17 to 24 along with HOPCOMS

where the ToR is already approved. Topics appearing in serial numbers 8 to 10,

14 and the 10 listed by University of Agricultural Sciences, Bangalore, are

resolved to be included as External studies (not scheme evaluations).

AGENDA SUBJECT-6

Approval of the tender rates for engaging manpower in KEA from 01st

June 2015 to 31st May 2017.

Resolution: The Governing body accepted the lowest negotiated rate of service

charge of 5.00001 % of M/s S.A Manpower Services Private Limited, No. 35/1,

“Mandara”, Opposite Reliance Trends, 1st Floor, 11th Cross, 1st Main Road,

Bangalore 560 003 for providing supporting staff to KEA for the period 01st

June 2015 to 31st May 2017 and permitted CEO, KEA to enter into a formal

contract with them for the same.

AGENDA SUBJECT-7

Non recovery of advance payment with interest from M/s. Lekka

Consultancy Services Private Limited, Bangalore – AG’s audit objection no. 5

of 2015.

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Discussion: The chronology of events was gone into by members of the

Governing Body. It was noted that the contents of the office order no. PD 34

KEA 2013 dated: 23rd August 2013 of the CEO, KEA, was quite opposite to

the contents of the notices issued by him marked as Annexures 4 and 5 of the

agenda notes of this meeting. It was noted from Annexure 6 of the agenda notes

of this meeting that Lekka Consultancy Services (P) Ltd had agreed for

forfeiture of the advance payment. Such being the case, and with the assignment

given to Lekka Consultancy not being completed as per clause 4 of the

agreement, there is no reason as to why the recovery was not insisted upon. The

office order in question had not been approved by the Principal Secretary,

Planning, or had the approval of the Governing Body of KEA. Hence it

deserves to be set aside.

Resolution: The Governing Body decided to set aside office order no. PD 34

KEA 2013 dated: 23rd August 2013 of the CEO, KEA, which had deemed that

M/s. Lekka Consultancy Service Private Limited had completed 50% of the

work and had ordered that it was entitled to receive a payment of Rs. 193025.

The amount advanced to the company may be recovered with the interest

agreed for in the Contract.

AGENDA SUBJECT-8

Approval of the audit report and accounts of 2014-15 of KEA.

Discussion: The audit notes and Statement of Affairs of KEA as on 31st March

2015 were circulated amongst the members of the Governing Body. The partner

Mr T. V. Sudarshan of the statutory auditors Badari, Madhusudhan &

Srinivasan briefed the Body about the main points emerging from the audit

completed. The main points are-

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A. The Finance and Accounts Manual of KEA needs to be amended to

reflect the true nature of money being maintained with it. Grant to KEA

are advances for evaluations which are erroneously termed as “incomes”

in the manual.

B. KEA should follow the double entry “tally” system of accounting rather

than the single entry laborious accounting system now being followed.

This may need the part time about once a week engagement of a

Chartered Accountant, but will be worth in terms of accuracy and ease.

C. The finance department of the Government of Karnataka has issued

specific orders for some institutions and Special Purpose Vehicles (SPV)

wherein interest earned on Government grants kept in banks have been

regarded as part of that grant and not an income. There should be one

order got issued for KEA too.

D. KEA, like every registered trust is required to file an audited statement of

accounts with the Registrar of Societies along with the list of members

and a fee that is a part of the receipts and expenditure amounts of that

year. In 2014-15, KEA has filed the accounts but without the fee and sans

the list of members. This needs to be correctly done.

It was suggested that the Government should waive off the fees

for Government trusts, societies etc.

Resolutions: The Governing Body resolved to approve of the suggestion

mentioned in point ‘A’ of the above discussion. It directed the CEO, KEA, to

take steps to adopt the “tally” double entry system of accounting. He is also

instructed to move the matter for issuance of a government order on the lines

mentioned in point ‘D’ of the discussion above and get the audited statement of

accounts filed along with the list of members with the Registrar of Societies.

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The meeting ended with a vote of thanks to the President and all members

of the KEA Governing Body.

Sd/- (V Manjula IAS)

President KEA, andPrincipal Secretary to Government,Planning, Programme Monitoring

and Statistics department

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