Risk Based Internal Audit report on Oo DRDA
Risk Based Internal Audit report on O/o DRDA, VELLORE, Tamilnadu for the year 2015 -16, 2016 -17 & 2017 -18 in respect of MGNREGA
Team members: Sri G. C. JOSHI, Auditor (Team Leader) Sri M. A. Rahiman, Trainee Sri Lal Chand, Trainee
Objectives of MGNREGA �MGNREGA has given rise to the largest employment programme in human history. �Promises providing at least one hundred days of unskilled manual work as a guaranteed employment in a financial year to every household in rural area on demand; �Creation of productive assets of prescribed quality and durability for the common cause; �Strengthening the livelihood resource base of the poor and �Strengthening Panchayati Raj Institutions.
VELLORE DISTRICT Profile: �Vellore district is located in northern part of Tamil Nadu. �It lies between 12° 15’ to 13° 15’ North latitudes and 78° 20’ to 79° 50’ East longitudes in Tamilnadu State. �It is surrounded by states of Karnataka and Andhra Pradesh in the north, by Thiruvallur and Kancheepuram districts in south, by Thiruvannamalai district on the east, and by Krishnagiri district on the west. �It is one of the biggest districts in Tamil Nadu. As of 2011, the district had a population of 3, 936, 331 with a sex ratio of 1, 007 females for every 1, 000
VELLORE DISTRICT profile …. contd. . �The geographical area of this district is 5, 920. 18 sq. km. �Agriculture is the major activity in the district. �This district is the top exporter of finished leather goods in the country. � This is set to emerge as the first region in Tamil Nadu to develop into an Electronics Manufacturing Cluster (EMC).
VELLORE DISTRICT MAP
• Thiru S. A. Raman IAS, is holding charge as District Collector and District Magistrate. • Sri P. Periasamy, is Project Director, DRDA • There are 20 blocks in the District • There were 743 Gram Panchayats with 1204 clusters • Total habitation / households were 6109.
Entry Meeting with Project Director:
Audit Methodology � The District Collector was not readily available. Entry conference was done with Project Director DRDA Sri P. Periasamy, Vellore District, on 28 -02 -2019. The audit methodology was appraised to the Project Director. � The audit was conducted on the basis of objectives, provision of scheme, flow of fund, specific rules and laws governing the execution of program etc along with the compendium of operational guidelines and circulars. � Visited offices of three Blocks viz. Natrampalli, Sholinghur, and Katpadi � Audit team visited 5 GP viz. � a) Thumberi GP, and Mallagunda GP, under Natrampalli block � b) Vellimalai GP and Erkampattu GP under Sholinghur block � c) Serkadu GP under Katpadi block. � The selection of the blocks, gram panchayat and villages was
Verification of Ongoing works: Earthen Bunding at Mallagunda Village under Mallagunda GP Natrampalli Block. (Ravi s/o Perumal)
Verification of Ongoing works: 1380 mtrs Earthen Bunding at kavaratheru Village under Mallagunta GP Natrampalli Block.
Verification of Ongoing works: Earthen Bunding at Kavaratheru Village under Mallagunta GP Natrampalli Block.
Construction of Gabion structure water shed and recharge well at kavaratheru village
Massive tree plantation 600 saplings near mungeri kovil at Palakkalpowai village
Staggard Trench in Hilly Terrain at Kamuru kudai Village under Thumberi GP Natrampalli Block.
Verification of Ongoing works: Staggard Trench in Hilly Terrain at Kamuru kudai Village under Thumberi GP Natrampalli Block.
Verification of Ongoing works: Earthen Bunding at Annanagar Village under Thumberi GP Natrampalli Block (Harikrishna site)
Perculation Tank at Serkedu GP.
IAW team at work: Serkadu GP --- Katpadi Block
IAW team at work: Katpadi Block office.
1. Non-permissible booking of Expenditure incurred on salary of Regular Officers and Staff of the State Government to MGNREGS account. High Risk �Criteria: �Para 12. 5. 6 of the operational guidelines specified that the State Government shall under no condition book the Salaries/ remuneration of functionaries already engaged by the Government/ PRIs/ any other implementing agency under the administrative costs of MGNREGA
Non-permissible booking ……. Contd. �Condition: During audit of cash vouchers/cash book of PD, DRDA, Vellore, pertaining to MGNAREGA scheme it was observed that Govt. of Tamilnadu in their GOMS No. 164 - dated 21 -10 -2008 and subsequent amendments has instructed to book amount of salaries / remunerations paid to regular officer / staff employed by state / district authorities for project work to be booked to the scheme account. Accordingly the following amounts were booked under the head administrative expenses on MNREGA at VELLORE District.
Non-permissible booking ……. Contd �a). . 2015 -16 Rs. 6, 41, 70, 016 �b). . 2016 -17 Rs. 6, 54, 74, 992 �c). . 2017 -18 Rs. 7, 99, 59, 296 �d). . 2018 -19 Rs. 7, 82, 94, 554 �TOTAL Rs. 28, 78, 89, 858 �This is in violation of the instructions in the Guidelines on implementation of the scheme.
Non-permissible booking ……. Contd �Consequence: �Non- adherence to MNREGA guidelines has resulted diversion of funds to un-authorised activities; �At least two thirds of 6% of Admn fund should have to be spent at block and below. In the instant case, BDOs and GPs were unable to utilize the amounts for approved activities like IEC, appointment of Gram Rozgar Sahayaks etc. , due to diversion of funds.
Non-permissible booking ……. Contd �Recomendation: �PD, DRDA should ensure that booking of expenses on Salaries of regular State / District Officers / staff to MGNREGS be stopped forthwith. �Amount of Rs. 28, 78, 89, 858 /- which has already been booked to the MGNREGA account during the last four years, be deposited by the State Government to MGNREGA account.
payment of remuneration to Secretaries of GP from MGNREGS. HIGH RISK. � Criteria: � Para 12. 5. 6 of the operational guidelines specified that the State Government shall under no condition book the Salaries/ remuneration of functionaries already engaged by the Government / PRIs / any other implementing agency under the administrative costs of MGNREGA. � Condition: During audit of cash vouchers/cash book of PD, DRDA, Vellore, pertaining to MGNREG scheme it was observed that Govt. of Tamilnadu has instructed to pay an amount of Rs. 1000/- per month to each Secretary of Panchayat. There were 743 Gram Panchayatsin Vellore District. The amount works out to Rs. 89, 16, 000/- perannum. Thus for the years from 2015 -16 to 2018 -19 it works out to Rs. 3, 56, 64, 000/-
Irregular expenditure…… contd. � Consequence: � Non- adherence to MNREGA guidelines has resulted diversion of funds to un-authorised activities; � At least two thirds of 6% of Admn fund should have to be spent at block and below. In the instant case, BDOs and GPs were unable to utilize the amounts for approved activities like IEC, appointment of Gram Rozgar Sahayaks etc. , due to diversion of funds. � Recomendation: � PD, DRDA should ensure that booking of expenses on remuneration to Secretaries of GP from MGNREGS be stopped forthwith. The amount of Rs. 3, 56, 64, 000/- which has already been booked to the MGNREGA account during the last four years, be deposited back into the MGNREGA account.
3. Un-authorised booking of Expenditure incurred on Repairs of vehicles to MGNREGS account. High Risk �Criteria: �Para 12. 5. 6 of the operational guidelines specified that the State Government shall under no condition book the expenditure on purchase or repair and maintenance of vehicles by the Government / PRIs / any other implementing agency under the administrative costs of MGNREGA
Expenditure on Repair of vehicles…. Contd. �Condition: �Scrutiny of the Cash Book and Paid Vouchers for the year 2015 -16 to 201718 has revealed that the auditee has booked / debited the following expenses on the repairs and maintenance of vehicle to MGNREGS account Rs. 246970/- as detailed below:
Sr. No. Voucher No. Year Amount Paid Recipient 1 40 2015 -16 13300 Jain cars and auto sales 2 49 2015 -16 21560 Jain cars and auto sales 3 74 2015 -16 3662 Jain cars and auto sales 4 86 2015 -16 7192 Jain cars and auto sales 5 95 2015 -16 22976 Jain cars and auto sales 6 102 2015 -16 3510 Jain cars and auto sales 7 111 2015 -16 1699 Motor Transport Mtce Dept Vellore 8 112 2015 -16 5450 SK Batteries, Katpadi Rd. VELLORE 9 152 2015 -16 8494 Jain cars and auto sales 10 154 2015 -16 21773 Jain cars and auto sales 11 161 2015 -16 3475 Jain cars and auto sales 12 219 2015 -16 3950 SRI AYYAPPAN CAR ZONE 13 221 2015 -16 8191 Jain cars and auto sales 14 232 2015 -16 7872 Jain cars and auto sales 15 233 2015 -16 1235 murugan auto elec works 16 245 2015 -16 30632 Jain cars and auto sales 17 272 2015 -16 1145 Jain cars and auto sales 18 287 2015 -16 19 299 2015 -16 3250 om saravanan bhava 20 316 2015 -16 5996 Jain cars and auto sales 21 47 2016 -17 22 170 2016 -17 22 2016 -17 16061 south indian motor door work 13550 R. V. M/SRI AYYAPPAN CAR LTD. 36869 Jain cars and auto sales 4350 RAJA MOTOR MECHANIC WORKS 246192
Expenditure on Repair of vehicles…. Contd �Consequence: �Non- adherence to MNREGA guidelines has resulted diversion of funds to un-authorised activities; �At least two thirds of 6% of Admn fund should have to be spent at block and below. In the instant case, BDOs and GPs were unable to utilize the amounts for approved activities like IEC, appointment of Gram Rozgar Sahayaks etc. , due to diversion of funds.
Expenditure on Repair of vehicles…. Contd �Recomendation: �PD, DRDA should ensure that booking of expenses on Salaries of regular State / District Officers / staff to MGNREGS be stopped forthwith. �Amount of Rs. 2, 46, 192/- which was already booked to the MGNREGA account during the last three years, be deposited by the District authorities to MGNREGA account.
4. Non- Recovery of Amounts commented in Social Audits amounting to Rs. 1. 79 cr. High Risk �Criteria: �As per General Financial Rules all recoveries pointed out by audit must be made immediately and deposited to concerned head of accounts as receipts to the Government.
�Amounts commented in Social Audits …… contd. . �Condition: �During scrutiny of few social audit reports it was noticed that social audit have pointed out recoveries on various activities. The total amount due on this account works out to Rs. 1, 79, 81, 598/- against which only Rs. 4, 20, 927/- was found recovered. A few instances are detailed below: a. Excess Wages paid to people who did not work in 17 instances Rs. 1, 65, 754/- but recovered only Rs. 31, 451/b. Bogus entry in FTO: 11 instances of bogus entries in FTO was for Rs 25, 103/- and recovered Rs. 14, 446/- only.
Amounts commented in Social Audits …… contd. . �Consequence: �Non-recovery of Government dues as pointed out by the audits is in violations of MGNREGS guidelines and loss to the exchequer. If no action is taken to pursue Social Audit reports, this would defeat the very purpose of conducting of social audit. In that case the entire labour and the amount spent on conducting of Social Audit would turn out to be wasteful and loss to exchequer
Amounts commented in Social Audits …… contd. . �Recommendations: �Project Director, DRDA, must, therefore, take adequate action: i) to effect recoveries of the amount and deposit the same to the Government / MGNREGS Accounts. ii) Review other cases also and recover the amount overpaid/wrongly paid and deposit the same to the MGNREGS account. iii) To issue necessary instructions to all BDOs/Panchayats to be vigilent to avoid recurrence of such cases.
5. Irregular holding of Government money Rs. 1. 15 crore. Medium Risk. �Cirteria: �As per financial rules Government money recovered for certain reasons is to be treated as Government receipt and should be promptly deposited to Revenue Head of Account of the Gevernment. �Condition: �During audit at DRDA Vellore District, it was noticed that a PD DRDA Vellore, has opened a separate account in Indian Bank at Collectorate Branch bearing A/c No. 616043435 on 21 -9 -2016. All amounts recovered from different individuals based on Social Audit Reports on MNREGS, were deposited in the account. The total balance including interest as on 28 -2 -2019 was
Irregular holding of Govt money…. Contd. . �Consequence: �The amount is lying idle in the PD DRDA account un-used /un-utilized on the scheme, in violation of financial rules, and loss to the exchequer, as the Government money is held without any purpose for long. �This has resulted in blockage of funds. �Recommendations: �It therefore should be ensured that Rs. 11529200/- be deposited
6. Very meagre expenditure on IEC activities High Risk. �Criteria: �As per Para 5. 4 of MGNREGS Guidelines one percent of Administrative Expenditure is required to be incurred to IEC activities in order to spread awareness amongst the actual beneficiaries of the MNREGS. �Condition: �During visit to Block offices, it was noticed that the BDOs, have incurred very little amount on IEC activities that too on occasions of special drives like “pakhwada” in their block. �The total amount spent on IEC activities in the entire district were:
Expenditure on IEC activities………. . Contd. Year Admn Expr 2015 -16 1871 lakh 2016 -17 1830 lakh 2017 -18 1489 lakh 2018 -19 1276 lakh 1% of Admn expr 18. 71 lakh 18. 30 lakh 14. 89 lakh Actual expr on IEC activities. Rs. 62000 Rs. 122650 Rs. 1849940 12. 76 lakh Rs. 757293
Expenditure on IEC activities………. . Contd. �Consequence: �Non-conduction of IEC activities regarding act and scheme (right, entitlements and responsibilities of wage seekers nd other beneficiaries) for propagation of MNREGS scheme would result in the actual beneficiaries being left out of the benefits of the schemes. Diversion of funds to other components would tantamount to violation of Rules. Similarly the expenditure on IEC in other blocks visited is found to be very less.
Expenditure on IEC activities………. . Contd. �Recommendations: �Project Director DRDA must direct all BDOs to ensure that due amount of MNREGS funds are expended with due care for spreading awareness amongst the residents in the block so that they may be able to approach GP/Block office to enroll themselves and avail the benefits of the scheme. This will help to implement the scheme in the intended manner.
7. 3636 Works remaining in-complete for longer periods High Risk �Criteria: �It is the responsibility of the District Programme Co-ordinator to see that the works get completed in time. The GP should first allocate the ongoing works. It may happen that the ongoing works do not have any potential to absorb labour, because the work has almost been completed but due to incomplete paper work the status reflected on NREGASoft is ongoing. Therefore, the GP should complete the paper work and to enclose the same on NREGASoft, before taking up a new work.
Works remaining in-complete…. Contd. �Condition: �It was observed from MIS 6. 2 and MIS 6. 18 reports that there were 3636 works commenced during the period upto the financial year 2017 -18 were pending even uptill today (01 -03 -2019) � Reasons for the works remaining pending / incomplete for so long period need to be explained. Year Works upto the year 2015 -16 Works for the year 2016 -17 Works for the year 2017 -18 Works started Works Pending complete works d 65626 65482 144 15930 14 20657 17179 3478
Works remaining in-complete…. Contd. �Consequences: �The delay in completion of the work would result in cost escalation and also the benefits of the scheme may not reach to the people in time. �Recommendations: �The Project Coordinator, BDOs, and GPs have to review the pending works/ongoing works and issue instructions to all concerned to complete the ongoing works before commencing the new works from the Shelf of Works.
8. Non-appointment of Gram Rozgar Sahayak. Medium Risk �Criteria: �Guidelines 2. 4. 2. viii). states that the State Governments have to ensure that full time dedicated personnel, wherever required, are in place for implementing MGNREGA, specially the Employment Guarantee Assistant (Gram Rozgar Sahayak), in the Punchayat Offices. The main duty of the GRS is to help the technical person (i. e. Nirman sahayak, T. A. , S. A. E. etc. ) to strengthen the MGNREGA works & also other official works related to MGNREGA.
Non-appointment of GRS……. . contd �Condition: �Gram Rozgar Sahayak are not appointed in any of the Panchayats in Vellore District. There was no proper record maintenance. �Consequence: �Non-employment of GRS has adversely affected the office work of Gram Panchayats. �Recommendations:
9. Non-appointment of OMBUDSMAN High Risk �Criteria: �Para 13. 14 of MGNREGA Guidelines mandates that there shall be an Ombudsman for each district for attending to the grievances, enquiring into and passing awards as per guidelines. Detailed norms for process of appointment, tenure, termination, autonomy, remuneration, powers and responsibility, procedure for redressal of grievances and action to be taken on the Report of the Ombudsman have been detailed in Ministry’s Guidelines dated 16. 01. 2014.
Non-appointment of OMBUDSMAN…. Contd. �Condition: �It was observed that Ombudsman was not appointed in Vellore District to receive the complaints, enquire, and dispose them off as per the guidelines. �Consequence: �Receiving the complaints and disposal thereof may not take place as per the guidelines. �Recommendation: Ombudsperson may be appointed as early as possible.
Exit Conference Meeting with District Collector.
THANK YOU
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