2. 22 Audit Reports for 2007-08 Received only from 30 States/UTs Received only from 30 States/UTs Not received from 5 States of Chhattisgarh (defective & returned), Haryana, HP, J&K and Manipur. Not received from 5 States of Chhattisgarh (defective & returned), Haryana, HP, J&K and Manipur. Consolidated report on audit due for submission to Development Partners on 31 st Dec 08 but could not submit the same. Consolidated report on audit due for submission to Development Partners on 31 st Dec 08 but could not submit the same. Defaulting States to ensure immediate submission of the same. Defaulting States to ensure immediate submission of the same. States/UTs should ensure that the statutory audit is completed by September every year and the audit report submitted to MHRD in time. States/UTs should ensure that the statutory audit is completed by September every year and the audit report submitted to MHRD in time. Also ensure that audit of VECs receiving more than Rs. 1 lakh per year is covered in a three year cycle of audits. Also ensure that audit of VECs receiving more than Rs. 1 lakh per year is covered in a three year cycle of audits.

3. 33 Internal Audit More focus should be given to internal audit in order to follow prescribed accounting procedure and maintenance of books of accounts. More focus should be given to internal audit in order to follow prescribed accounting procedure and maintenance of books of accounts. States/UTs to carry out internal audit on a concurrent basis. Some States are lagging behind in internal audit. States/UTs to carry out internal audit on a concurrent basis. Some States are lagging behind in internal audit. While most of the States/UTs have introduced internal audit mechanism, some States/UTs have not yet started the same. While most of the States/UTs have introduced internal audit mechanism, some States/UTs have not yet started the same. These States should ensure that the internal audit mechanism is in place on a priority basis. These States should ensure that the internal audit mechanism is in place on a priority basis.

4. 44 Annual Reports Annual reports for 2007-08 are still awaited from most of the States/UTs. Annual reports for 2007-08 are still awaited from most of the States/UTs. Need to be tabled in the Parliament by 31 st December every year. Need to be tabled in the Parliament by 31 st December every year. The delay in its submission is taken very seriously by the Lok Sabha Parliamentary Committee on papers laid on table. The delay in its submission is taken very seriously by the Lok Sabha Parliamentary Committee on papers laid on table. Also pending for the previous years in respect of many States like AP, Bihar, Chhattisgarh, Dadar & Nagar Haveli, Daman & Diu, Delhi, Haryana, Lakshadweep, Meghalaya and Sikkim. Also pending for the previous years in respect of many States like AP, Bihar, Chhattisgarh, Dadar & Nagar Haveli, Daman & Diu, Delhi, Haryana, Lakshadweep, Meghalaya and Sikkim.

5. Financial Management Concurrent Financial Review IPAI review reports on the 2 nd Phase of 10 States of Assam, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttarakhand and West Bengal have been shared with the States for taking further follow up action. IPAI review reports on the 2 nd Phase of 10 States of Assam, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttarakhand and West Bengal have been shared with the States for taking further follow up action. The States should ensure that Action Taken Reports are submitted to MHRD in time. The States should ensure that Action Taken Reports are submitted to MHRD in time. Follow up action on the 1 st Phase of IPAI Review reports is also pending in most of the States. The States should take immediate follow up action in this regard. Follow up action on the 1 st Phase of IPAI Review reports is also pending in most of the States. The States should take immediate follow up action in this regard.

6. 6 Staff Position Vacant posts of accounts staff exist in SPO in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Goa, J&K, Karnataka, Kerala, Maharashtra, Meghalaya, Puducherry, Punjab, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand and West Bengal. Vacant posts of accounts staff exist in SPO in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Goa, J&K, Karnataka, Kerala, Maharashtra, Meghalaya, Puducherry, Punjab, Rajasthan, Tripura, Uttar Pradesh, Uttarakhand and West Bengal. Vacant posts of accounts staff exist in DPOs of Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal. Vacant posts of accounts staff exist in DPOs of Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal. States to fill up these vacancies on priority. States to fill up these vacancies on priority.

7. 7 Capacity Building of Accounts Staff MHRD prescribed 5 days mandatory training in a year to accounts staff. MHRD prescribed 5 days mandatory training in a year to accounts staff. However, some States like Haryana, J&K, Nagaland have not imparted training to accounts staff in 2008- 09. However, some States like Haryana, J&K, Nagaland have not imparted training to accounts staff in 2008- 09. Some States/UTs have not reported the details of training during 2008-09. Some States/UTs have not reported the details of training during 2008-09. Some States/UTs have not provided adequate training. Some States/UTs have not provided adequate training. All States/UTs should ensure that a minimum of 5 days training is provided mandatorily to all accounts staff in a year. All States/UTs should ensure that a minimum of 5 days training is provided mandatorily to all accounts staff in a year.

8. Issues related to unspent balance of DPEP/SSA Pre-project activities Refund of unspent balance of DPEP is still awaited from : Refund of unspent balance of DPEP is still awaited from : –Bihar, Chhattisgarh, Jharkhand, HP, MP, Orissa, UP and West Bengal Refund of unspent balance of pre- project activities is still awaited from: Refund of unspent balance of pre- project activities is still awaited from: –Arunachal Pradesh, Assam, Bihar, J&K, MP, Meghalaya, Manipur, Mizoram and West Bengal. Non-refund will adversely effect the further releases of funds from SSA. Non-refund will adversely effect the further releases of funds from SSA.

9. 9 Advances All funds released to districts and sub-district level units are initially treated as advances and the same adjusted as expenditure on receipt of utilization certificate/expenditure statement. All funds released to districts and sub-district level units are initially treated as advances and the same adjusted as expenditure on receipt of utilization certificate/expenditure statement. However, in actual practice States are invariably showing these releases as expenditure without waiting for utilization certificate/expenditure statement. However, in actual practice States are invariably showing these releases as expenditure without waiting for utilization certificate/expenditure statement. States should cease this practice forthwith and follow the correct accounting procedure prescribed in the Manual on FM&P. States should cease this practice forthwith and follow the correct accounting procedure prescribed in the Manual on FM&P. Large advances are outstanding in some States which are to be adjusted immediately. Large advances are outstanding in some States which are to be adjusted immediately.

10. Procurement Plan- 2009-10 States/UTs to upload the procurement Plan for 2009-10 on their website as soon as the PAB Minutes for the AWP&B for 2009-10 are received. States/UTs to upload the procurement Plan for 2009-10 on their website as soon as the PAB Minutes for the AWP&B for 2009-10 are received. An intimation to this effect should also be furnished to MHRD. An intimation to this effect should also be furnished to MHRD.

11. Financial performance of the States/UTs Expenditure The total expenditure incurred during 2008-09 (up to Dec 08) is Rs. 11777.15 crore which is 49% of the approved outlay. The total expenditure incurred during 2008-09 (up to Dec 08) is Rs. 11777.15 crore which is 49% of the approved outlay. Low expenditure or no expenditure reported by many States under the activities of LEP, Remedial Teaching, major repairs, textbooks, TLE, Inclusive education, BRC, CRC, teachers training, REMS, EGS/AIE, innovative activities, NPEGEL etc. Low expenditure or no expenditure reported by many States under the activities of LEP, Remedial Teaching, major repairs, textbooks, TLE, Inclusive education, BRC, CRC, teachers training, REMS, EGS/AIE, innovative activities, NPEGEL etc. Backlog of State share as on December 2008 in AP (Rs. 31.93 cr), Arunachal Pradesh (Rs. 3.2 cr), Chhattisgarh (Rs. 106.91 cr), Daman & Diu (Rs. 0.36 cr), Delhi (Rs. 6 cr), J&K (Rs. 57.67 cr), Kerala (Rs. 15.90 cr), Maharashtra (Rs. 13.75 cr), Manipur (Rs. 0.02 cr), Mizoram (Rs. 0.94 cr), Nagaland (Rs. 2.56 cr), Orissa (Rs. 80.77 cr), Pondicherry (Rs. 1.22 cr), Punjab (Rs. 46.23 cr), Rajasthan (Rs. 299.90 cr), Sikkim (Rs. 1.05 cr), Tamil Nadu (Rs. 44.29 cr), Tripura (Rs. 2.46 cr), Uttarakhand (Rs. 45.08 cr) and West Bengal (Rs. 0.5 cr). Backlog of State share as on December 2008 in AP (Rs. 31.93 cr), Arunachal Pradesh (Rs. 3.2 cr), Chhattisgarh (Rs. 106.91 cr), Daman & Diu (Rs. 0.36 cr), Delhi (Rs. 6 cr), J&K (Rs. 57.67 cr), Kerala (Rs. 15.90 cr), Maharashtra (Rs. 13.75 cr), Manipur (Rs. 0.02 cr), Mizoram (Rs. 0.94 cr), Nagaland (Rs. 2.56 cr), Orissa (Rs. 80.77 cr), Pondicherry (Rs. 1.22 cr), Punjab (Rs. 46.23 cr), Rajasthan (Rs. 299.90 cr), Sikkim (Rs. 1.05 cr), Tamil Nadu (Rs. 44.29 cr), Tripura (Rs. 2.46 cr), Uttarakhand (Rs. 45.08 cr) and West Bengal (Rs. 0.5 cr).