1 Statutory Auditors Observations on Procurement th Review Meeting of State FCs- Delhi (15-16 July, 2013) Annexure W

2 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS 1. Purchases without inviting tenders/quotations StateGist of Observations Arunachal Pradesh(a)NCERT books worth Rs crores were purchased from a firm without inviting tenders. (b)Actual quantity of books received not compared with bill before releasing payment. KeralaTenders not invited for procurement of items ManipurComputers, Laptop, furniture and other materials purchased without obtaining quotations. Uttar PradeshQuotations from registered suppliers not obtained for the purchase of computers at district level. Model, make and comparative statements were not available in districts.

3 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS 2. Procurement procedure not followed StateGist of Observations Tamil NaduProcurement procedure prescribed in the FM&P Manual not followed by majority of VECs / SMCs. Uttar PradeshProcurement procedure not followed in many districts. 3. Limited tender instead of Open Tender StateGist of Observations Arunachal PradeshMaths Kit Rs lakh Books for Reading corner Rs lakh Library Books Rs lakh Printing of CCE Report and Rs lakh CGL Sheets Items under EGS/TLE/TLM is Kurung-Kumey District

4 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS StateGist of Observations ChhattisgarhPrinting work was given to M/s. CG Samrada. 5. Non-production of Procurement documents StateGist of Observations Arunachal PradeshProcurement documents not produced to audit on purchase of Maths Kit, books for reading corner, library books, printing of CCE Report Cards. ChhattisgarhSupporting bills/vouchers on expenditure of Rs lakh not produced to audit. GujaratSupporting vouchers for civil works not produced. 4. Single tender instead of other method

5 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS StateGist of Observations ChhattisgarhDistrict could not state the method of procurement adopted for the items procured. 7. Mis-procurement StateGist of Observations BiharGenerator set 15 KVA for Rs lakh from M/s. Satya Enterprises was declared as mis-procurement by the Auditor. KeralaMaterials pertaining to Standard IX were purchased out of SSA funds. 6. District could not State the method of procurement

6 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS StateGist of Observations GujaratExcess payment made to contractors for civil works. LakshadweepExcess payment of Rs lakh was made to the suppliers for the purchase of computers. 9. Cash payment made to contractors StateGist of Observations GujaratCash payment of Rs lakh was made to contractors for construction of KGBV school building. 8. Excess payment made to contractors

7 STATUTORY AUDIT REPORT – PROCUREMENT OBSERVATONS StateGist of Observations Kerala134 CP chairs of poor quality purchased and replacement not yet received. 10. Sub-Standard Quality

Audit by SSA Accounts by State AG (Audit)  Para of the Manual on FM&P envisages that the accounts of SIS is also subject to audit by C&AG.  MHRD on and urged the States to impress upon the State AG to carry out the audit of SSA accounts regularly on annual basis.  Information collected from the States shows that during the last 5 years in many States AG is not conducting the audit of SSA accounts on annual basis. 

 The Status of of audit conducted by AG for the last 5 years is given below: -  Periodicity of audit conducted Name of States 5 timesPunjab and West Bengal 4 timesAssam, Chandigarh, Haryana and Sikkim 3 timesAndaman & Nicobar Islands, Andhra Pradesh, Bihar, Himachal Pradesh, Karnataka, Puducherry and Uttar Pradesh 2 timesChhattisgarh, Delhi, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh, Meghalaya, Odisha, Rajasthan and Tamil Nadu 1 timeArunachal Pradesh, Goa, Jharkhand, Manipur, Mizoram, Nagaland, Tripura and Uttarakhand Not conductedDadra & Nagar Haveli, Daman & Diu, Lakshadweep and Maharashtra Audit by SSA Accounts by State AG (Audit)

 MHRD on again urged the States to impress upon the AG to conduct the audit of SSA Accounts regularly on annual basis.  States to ensure compliance of the audit objections in a timely manner and furnish the quarterly reports to MHRD on regular basis. 

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