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Statutory Auditors Observations on Procurement

2011-12

38th Review Meeting of State FCs- Delhi (15-16 July, 2013)

Annexure W

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

1. 1. Purchases without inviting tenders/quotationsPurchases without inviting tenders/quotations

State Gist of Observations

Arunachal Pradesh (a) NCERT books worth Rs. 5.18 crores were purchased from a firm without inviting tenders.

(b) Actual quantity of books received not compared with bill before releasing payment.

Kerala Tenders not invited for procurement of items

Manipur Computers, Laptop, furniture and other materials purchased without obtaining quotations.

Uttar Pradesh Quotations from registered suppliers not obtained for the purchase of computers at district level. Model, make and comparative statements were not available in districts.

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

2. Procurement procedure not followed2. Procurement procedure not followed

State Gist of Observations

Tamil Nadu Procurement procedure prescribed in the FM&P Manual not followed by majority of VECs / SMCs.

Uttar Pradesh Procurement procedure not followed in many districts.

3. Limited tender instead of Open Tender3. Limited tender instead of Open Tender

State Gist of Observations

Arunachal Pradesh Maths Kit Rs. 99.80 lakhBooks for Reading corner Rs. 30.60 lakhLibrary Books Rs. 46.54 lakhPrinting of CCE Report and Rs. 99.50 lakhCGL SheetsItems under EGS/TLE/TLM is Kurung-Kumey District

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

State Gist of Observations

Chhattisgarh Printing work was given to M/s. CG Samrada.

5. Non-production of Procurement documents5. Non-production of Procurement documents

State Gist of Observations

Arunachal Pradesh Procurement documents not produced to audit on purchase of Maths Kit, books for reading corner, library books, printing of CCE Report Cards.

Chhattisgarh Supporting bills/vouchers on expenditure of Rs. 190.21 lakh not produced to audit.

Gujarat Supporting vouchers for civil works not produced.

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

State Gist of Observations

Chhattisgarh District could not state the method of procurement adopted for the items procured.

7. Mis-procurement7. Mis-procurement

State Gist of Observations

Bihar Generator set 15 KVA for Rs. 2.50 lakh from M/s. Satya Enterprises was declared as mis-procurement by the Auditor.

Kerala Materials pertaining to Standard IX were purchased out of SSA funds.

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

State Gist of Observations

Gujarat Excess payment made to contractors for civil works.

Lakshadweep Excess payment of Rs. 225.75 lakh was made to the suppliers for the purchase of computers.

9. Cash payment made to contractors9. Cash payment made to contractors

State Gist of Observations

Gujarat Cash payment of Rs. 12.65 lakh was made to contractors for construction of KGBV school building.

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STATUTORY AUDIT REPORT – 2011-12STATUTORY AUDIT REPORT – 2011-12PROCUREMENT OBSERVATONSPROCUREMENT OBSERVATONS

State Gist of Observations

Kerala 134 CP chairs of poor quality purchased and replacement not yet received.

Audit by SSA Accounts by State AG (Audit)Audit by SSA Accounts by State AG (Audit)

Para 107.1 of the Manual on FM&P envisages that the Para 107.1 of the Manual on FM&P envisages that the accounts of SIS is also subject to audit by C&AG.accounts of SIS is also subject to audit by C&AG.

MHRD on 23-4-2007 and 14-12-2012 urged the States MHRD on 23-4-2007 and 14-12-2012 urged the States to impress upon the State AG to carry out the audit of to impress upon the State AG to carry out the audit of SSA accounts regularly on annual basis.SSA accounts regularly on annual basis.

Information collected from the States shows that during Information collected from the States shows that during the last 5 years in many States AG is not conducting the the last 5 years in many States AG is not conducting the audit of SSA accounts on annual basis.audit of SSA accounts on annual basis.

  

The Status of of audit conducted by AG for the last 5 years is The Status of of audit conducted by AG for the last 5 years is given below: -given below: -

  Periodicity of audit

conductedName of States

5 times Punjab and West Bengal

4 times Assam, Chandigarh, Haryana and Sikkim

3 times Andaman & Nicobar Islands, Andhra Pradesh, Bihar, Himachal Pradesh, Karnataka, Puducherry and Uttar Pradesh

2 times Chhattisgarh, Delhi, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh, Meghalaya, Odisha, Rajasthan and Tamil Nadu

1 time Arunachal Pradesh, Goa, Jharkhand, Manipur, Mizoram, Nagaland, Tripura and Uttarakhand

Not conducted Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Maharashtra

Audit by SSA Accounts by State AG (Audit)Audit by SSA Accounts by State AG (Audit)

Audit by SSA Accounts by State AG (Audit)Audit by SSA Accounts by State AG (Audit)

MHRD on 12-7-2013 again urged the States to impress MHRD on 12-7-2013 again urged the States to impress upon the AG to conduct the audit of SSA Accounts upon the AG to conduct the audit of SSA Accounts regularly on annual basis.regularly on annual basis.

States to ensure compliance of the audit objections in a States to ensure compliance of the audit objections in a timely manner and furnish the quarterly reports to timely manner and furnish the quarterly reports to MHRD on regular basis.MHRD on regular basis.

  

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