1. Compliance of Outstanding Audit Observations made by Statutory Auditor 38 th Quarterly Review Meeting of Finance Controllers, New Delhi Annexure R

2. All State implementing societies SSA are getting their annual accounts audited by the Statutory Auditor The Audit Report submitted by Statutory Auditors is also reviewed by the MHRD. A deficiencies letter indicating the deficiencies / discrepancies in the audited accounts and certain key audit observations are being sent to the SIS regularly. The compliance of the Audit observations contained in audit reports are required to reported to MHRD every quarter.

3. Large number of Audit observations pertaining to previous years upto FY-2010-2011 are still pending compliance/ settlement. The details are as under: Sl. No. Name of the stateYear of Audit Report 1.Andhra Pradesh2006-2007 2.Arunachal Pradesh 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010 & 2010-2011

4. Sl. No. Name of the stateYear of Audit Report 3.Assam 2008-2009, 2009-2010, 2010- 2011, 2011-2012 4.Bihar 2005-2006, 2006-2007, 2007- 2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012 5.Chhattisgarh2005-2006, 2006-2007, 2007- 2008, 2008-2009, 2009-2010, 2010-2011,2011-2012

5. Sl. No. Name of the stateYear of Audit Report 6.Chandigarh2008-2009, 2009-2010 7.D&N Haveli2009-2010 8.Goa 2008-2009, 2009-2010 & 2010- 2011 9.Gujarat 2008-2009, 2009-2010 & 2010- 2011 10.Haryana2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010 & 2010- 2011

6. Sl. No. Name of the stateYear of Audit Report 11. Himachal Pradesh 2007-2008, 2008-2009, 2009- 2010 & 2010-2011 12. Jammu & Kashmir 2009-2010 13.Jharkhand2009-2010, 2010-2011 14.Karnataka 2006-2007, 2007-2008, 2008- 2009, 2009-2010, 2010-2011 15.Kerala2006-2007, 2007-2008, 2008- 2009, 2009-2010, 2010-2011

7. Sl. No. Name of the stateYear of Audit Report 16. Lakshadweep2010-2011 17. Madhya Pradesh 2006-2007, 2007-2008, 2008- 2009, 2009-2010 & 2010-2011 18. Maharashtra 2007-2008, 2008-2009, 2009-2010 & 2010-2011 19. Manipur 2005-2006, 2006-2007 & 2010- 2011 20. Meghalaya2006-2007, 2007-2008, 2008- 2009, 2009-2010 & 2010-2011

8. Sl. No. Name of the stateYear of Audit Report 21. Mizoram 2005-2006, 2006-2007, 2008-2009, 2009-2010 & 2010-2011 22. Nagaland 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010 & 2010-2011 23. Odisha2010-2011 24. Punjab 2007-2008, 2008-2009, 2009-2010 & 2010-2011 25. Puducherry2006-2007, 2009-2010 & 2010-2011

9. Sl. No. Name of the state Year of Audit Report 26.Rajasthan2008-2009, 2009-2010 & 2010-2011 27.Sikkim2006-2007, 2009-2010 & 2010-2011 28.Tamil Nadu 2006-2007, 2007-2008, 2008-2009, 2009-2010 & 2010-2011 29.Tripura2006-2007, 2007-2008, 2008-2009, 20009-2010 & 2010-2011

10. Sl. No. Name of the stateYear of Audit Report 30.Uttar Pradesh 2007-2008, 2008-2009, 2009-2010 & 2010-2011 31.Uttarakhand2010-2011 32.West Bengal2009-2010 & 2010-2011

11. Audit Compliances : Statutory audit compliance is still outstanding from the states as given in the table below: - YearStates 2005-06 (7 States) Arunachal Pradesh, Bihar, Haryana, Chhattisgarh, Mizoram (file missing), Manipur and Nagaland 2006-07 (16 States) Arunachal Pradesh, Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Puducherry, Sikkim, Tamil Nadu and Tripura

12. YearStates 2007-08 (15 States) Arunachal Pradesh, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Nagaland, Punjab, Tamil Nadu, Tripura and Uttar Pradesh 2008-09 (21 States) Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Chandigarh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Tripura, Tamil Nadu and Uttar Pradesh.

13. YearStates 2009-10 (26 States) Andhra Pradesh, Assam, Arunachal Pradesh, Bihar, Chandigarh, Chhattisgarh, Dadra & Nagar Haveli, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Mizoram, Nagaland, Puducherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh & West Bengal 2010-11 (29 States) Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, D&N Haveli, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand & West Bengal

14. There is an urgent need to settle the old outstanding paras as with the passage of time there is an increasing likelihood of the records not being available. MHRD attaches high priority to compliance of outstanding audit observations made by statutory auditors. SIS–SSA are requested to launch a special drive to settle all outstanding audit observations pending since FY-2005-2006.

15. Following States have huge backlog of settlement of outstanding audit observations pertaining to FY-2005-2006 to FY 2011-2012. 1.Arunachal Pradesh8.Maharashtra 2.Bihar9.Meghalaya 3.Chhattisgarh10.Mizoram 4.Haryana11.Nagaland 5.Karnataka12.Tamil Nadu 6.Kerala13.Tripura 7.Madhya Pradesh

16. Audit observations pertaining to : FY-2005-20067 States FY-2006-200716 States FY-2007-200815 States Should be settled within next 6 months. Progress would be again reviewed in 39 th Review Meeting with Financial Controllers.

17. 1.Arunachal Pradesh YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2005- 2006 Excess expenditure of Rs. 480.90 lakhs incurred over approved allocation in civil works, maintenance grant, teacher grant, TLE and SIEMAT. SIS confirmed excess expenditure vide letter dated 29 th January, 2007. SIS advised to get it regularized and advise the particulars of PAB approval. Latest reminder sent on 25 th January, 2013.

18. Contd… Arunachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2006- 2007 (i) Rs.369.81 lakhs spent over the approved allocation in civil works, maintenance grant, management cost, REMS, TLE, community training and MIS. (ii)Mis-procurement under CAL of Rs.50.00 lakhs in 2005-06 and Rs.84.00 lakhs in 2006-2007. Pending for want of final action taken report from SIS. Latest reminder sent on 31 st August, 2012.

19. Contd…Arunachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2007- 2008 Excess expenditure of Rs. 2.78 lakhs over the approved allocation in EGS/AIE, management cost and teachers salary. Pending for want of appropriate comments from SIS. SIS advised to rectify the mistakes vide letter of 26 th April, 2012. 2008- 2009 (i)Excess expenditure of Rs. 20.52 lakhs over the approved outlay in CRC, TLE and community training. (i) Comments submitted by SIS under letter 28 th March, 2012 SIS advised to take PAB approval for excess expenditure under letter 26th April 2012.

20. Contd… Arunachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 (ii) Rs. 54000.00 short credited in Pangchao NGO in Tirup district. It is not reflected in NGO grant-in- aid account. SIS is jouranalising the entry by letter dated 2 nd August, 2010. To be reported to the statutory auditor and final action to be advised to MHRD (10 th August, 2010). 2009- 2010 Excess expenditure of Rs. 253.17 lakhs over the budget allotment under teacher training, out of school children, IED, REMS and innovative activity. PendingLatest reminder sent on 5 th December, 2012.

21. Contd… Arunachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2010- 2011 Excess expenditure of Rs. 181.603 over budget allotment in teachers grant, remedial teaching, free textbooks, TLE, REMS, innovative activity and uniforms. Pending for want of appropriate comments from SIS. Latest reminder sent on 5 th December, 2012.

22. 2. Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 1.Expenditure of Rs.6822.69 lakh shown in ‘others’ in the Annual Consolidation financial statement without any budget allocation, expenditure is irregular as it does not carry PAB approval. 1. Expenditure of Rs.6822.69 inclusive of Rs.5122.69 lac as prior period expenditure & Rs.1700 lac as expenditure incurred on Printing & Supply of Free text book, expenditure Statement for Rs.5122.69 lac was duly certified by C.A and approval from PAB for Rs.5122.69 lac is being sought Separately. 1. Prior period expenditure Rs.5122.69 lac shown activity wise but year wise break up is not shown. The year wise break up should also indicate the activity wise approved AWP&B & amount of expenditure already booked in accounts against approved budget. (23-2- 2012) also discussed in 37QRM

23. Contd…Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 2.Outstanding advances of Rs.494.41 lac have to be regulated as per clarification issued by Ministry on 1/7/2010. 2. Out of Rs. 494.41 lac Rs.203.38 lac has been adjusted in 2009-10shown as prior period expenditure in FMR- III. Action has been taken to adjust remaining amount. 2. Rs.203.38 pertaining to prior period adjusted in 2009-10 require PAB approval. (23- 2-2012) also discussed in 37QRM

24. Contd…Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 3. Write back the stale cheque/ excess booking of expenditure do not constitute receipt but reduce the expenditure already debited. This result overstatement of expenditure in previous year and inflated the receipt in current year. 3. As per BRS some cheque not enchased from SSA account after the expiry of validity period stale cheque has been cancelled, treated as expenditure reduction of prior years. For accounting purpose amount shows in the receipt side of cash book, expenditure reduction was reflected in Final account. 3. Cheque written back same were not enchased relate to release of funds to the districts/ SMCs, the same should have been credited to Advance account and not taken as receipt as cash book under expenditure reduction head. (23-2-2012) also discussed in 37QRM.

25. Contd…Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 Reimbursement of Rs.1875 lac received from SG & exp. of FTB shown in consolidated Annual Financial Statement are not SSA receipts/expenditure s therefore Rs48707.03 lac and not Rs.50582.03 lac as shown in UC/ Financial Statement. During 2009-2010 Rs.1800 was received from GOA on account of FTB to SC,ST& Gen category boys, Rs 75 lac from Director of IT for imparting training to teachers, amount utilized for the said purpose by SSA Assam. Same was shown in the books of accounts as receipt and payment in R& P a/c. Expenditure of Rs.1875 lac funded by GOA & Director IT cannot be treated SSA expenditure, same does not carry the approval of PAB. This has to be excluded from the total exp. of 50582.03 (1-2-2011) reminder issued on 2-6- 2011, 22-7-2011, 29-9- 2011, 4-10-2011, 11-1- 2012, 12-3-2012, 21-6- 2012& 3-7-2012.

26. Contd…Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2010- 2011 1.Unspent fund under pre project activities Rs. 1.90 Lac & DPEP Rs.4.21 lac lying with the darrang dist. & transferred to SSA account. The unspent balance need to be refunded to the MHRD 1.The matter is being communicated to the Darrang Dist for taking necessary action in this regard. 1.A further report in this matter will be awaited.(10 sep, 2012) also discussed in 37QRM

27. Contd…Assam : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2010- 2011 2. Advances of Rs 1075.52 lakh outstanding at the end of the year 31/3/2011 including advances of 2002- 03 onwards, balance sheet shows 1004.57 lakh. Difference of 70.95 lakh not adjusted for long period. 2. Closing balances of advances as on 31/3/2011 reflected Rs.1004.57 lakh in audited balances sheet, no difference in this respect. 2. Year wise details given in schedule MI, advances as on 31.3.2011 work out to Rs. 1075.12 lakh, please review and clarify the difference of Rs.70.55 lakh.(10 sep, 2012) also discussed in 37QRM.

28. Contd…Assam : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2010- 2011 3. Amount of Rs.140 lakh was debited from SBI dispur on 19.10.2010 to the SMO A/C was unauthorized & Fraudulent and under investigation by police, restored & credited on 16.9.2011. 3. FIR No. 1905/10 lodged in the Police station the investigation is in progress. 3. Action taken report on FIR awaited..(10 sep, 2012) also discussed in 37QRM

29. 3. Andhra Pradesh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2005- 2006 (i)Excess expenditu re of Rs.2214.5 7 lakh was incurred on CRC, civil works and SIEMAT. The Action Taken Report on these items was initially called for from the State on 14-12-2007. Again taken up the matter with the State on 6-5-2008. Despite the issue of 22 reminders, the last being on 11-7-2012, the reply is still awaited from the State. The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months. The State on 2-5-2008 has furnished the action taken report on all items except this item. The action taken report on this item is still awaited from the State.

30. Contd…. Andhra Pradesh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2006- 2007 (i)Copy of audited accounts and audit report under NPEGEL was not found attached with the audit report. The missing documents were called for from the State on 8-12-2008. Despite the issue of several reminders, the last being on 15-5- 2012, the documents are still awaited from the State. The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months. The State has not furnished the copy of the required documents.

31. Contd…. Andhra Pradesh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 (i)Procedural lapses of : (a)Treating advances as expenditure; (b)Outstanding advances not included in the closing balances (c)Expenditure incurred on unfinished works without obtaining PAB approval for the spill over outlay. The Action Taken Report on all points included in the audit report was initially called for from the State on 13-12-2010. Again taken up the matter with the State on 15-3-2012. Despite the issue of several reminders, the last being on 18-9- 2012, the reply is still awaited from the State. The State has clarified some of the points on 12-7-2011, but the clarifications on these points have not been furnished. The reply from the State on these items is still awaited.

32. Contd…. Andhra Pradesh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

33. 4. Bihar YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2005- 2006 1.Advances made to speed for years 2002-2003 and 2003-2004 charged in the year 2005- 2006. 2.Embezzlement of Rs.80.39 lakhs in Araria & other financial irregularities amounting to Rs.5764.64 lakhs identified by AG Audit. 1.Work is in progress 2.It is under investigation by State vigilance department. Reminder issued on 11 th July 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

34. Contd… Bihar YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting) 2006- 2007 1.Large amounts outstanding in bank reconciliation. 2.Shortage found in physical verification (computers) at DPO-Motihari. 3.Large amount debited by PNB Chapra, BOI Chapra & Rs.31.03 lakhs debited by different bank at Nawada not clarified to audit. 1.Work in progress, would be completed by 2012-2013. 2.Computers from SSA offices were sent for some emergent public purposes. Now the DPC Motihari has requested the DM (vide this letter No.602 dated 8 th April 2008) to return back all computers system to SSA office. 3.Reconciliation work in progress. Reminder issued on 11 th July 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

35. Contd… Bihar YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2007- 2008 1.Expenditure of Rs.17.32 lakhs shown as capital expenditure, is not as per AWP&B approved by PAB. 2.The advances amounting to Rs.143703.39 lakhs stated to have been adjusted upto 31.7.2011 do not appear to have been shown in expenditure reported by your office for the period 1.4.2011 to 30.9.2011. 3.Recertification Report for an expenditure of Rs.80887.45 lakhs (advances treated as expenditure) for the year 2007- 2008 not furnished yet. 1.Pending 2.Pending 3.Reply received in February 2013 (under examination) Reminder issued 12 th February 2013 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

36. Contd… Bihar YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2008- 2009 1.Near disclaimer of opinion in context of non-availability of opening trial balance and weaknesses in bank reconciliation. 2. Previous year audit observations pending. 1.Pending 2. Pending Reminder issued 4 th July 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

37. Contd… Bihar YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 1.Progress in reconciliation of an amount of Rs.3285.33 lakhs parked for Errors/omissions of earlier years be reported. 2. Yerawise/activity wise breakup of advances to Rs.350289.62 lakhs and reasons for non- adjustment within the prescribed period have not been given. PendingReminder issued 5th December 2012 and also discussed in 37th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

38. Contd… Bihar YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 3. Bank Reconciliation statement and conformity certificates of balances with the bank could not be made available for audit. Where BRS have been prepared, which reveal huge amount of unidentified, unlocated and unmatched credit and debit, outstanding cheques being carried forward. Pending

39. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 4. Advance: In certain District offices of BEPC subsidiary registers for advances given under different programmes including staff advances have not been produced to us due to the reasons, advances as appearing in the Balance Sheet could not be verified. Pending

40. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 5. Liability for Expenses : a. Stale cheques Rs.43,02,06,672.00 (SSA) Rs.24,20,570(KGBV) Rs.10647,740.00 (NPEGEL). The district offices has resorted to transfer the amount ‘cheques issued but not presented’ to bank to ‘Stale cheque account’ without making any effort for their matching and identification for proper adjustment. In absence of adequate details, nature of liability the correctness of above amount and the existence of liabilities could not be verified. Pending

41. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 b. In absence of Inward Bill Register, the adequacy of provisions for liabilities could not be verified. c. An aggregate amount of Rs.56.42 lacs heave been provided for liabilities in the books of accounts of Gopalganj, Madhubani, Begusarai, and Supoul District offices without incurring the expenditure during the year under reference which no bill vouchers etc. could be made available. Pending

42. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 d. The observations of special Audit of DLO Saran carried out by a firm of charted Accountants during the year are under scrutiny of the management and impact thereof on the accounts for the year has not been ascertained and quantified. e. Internal audit carried out by Charted Accountants firms is not commensurate with the size, volume and nature transactions of the BEPC offices. Pending

43. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 1. On scrutiny of the management letter issued by the Auditor a copy of which has been received with your letter (a) The books of accounts are not being maintained properly. (b) Bank accounts are not properly reconciled. (c) There are un-identified/un- located/un-rectified debit entries lying in the Bank Reconciliation statements. PendingReminder issued 20th April 2012 and also discussed in 37th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

44. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 (d) Interest earned on Bank accounts is not accounted for. (e) Register of advances is not maintained. (f) Adjustment of advances given for disbursement of Teacher salary to the DSE/DPC is adjusted as expenditure without the certifying document having been received. The utilization certificates/expenditure statements have not been shown to the Auditors for the following expenditure under Teacher salary. Pending

45. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) i) Araria Rs. 31,77,35,000.00 (ii) Darbhanga Rs.43,31,58,000.00 (iii) Katihar Rs.33,50,59,619.00 (iv) Kishangan Rs.8,43,97,913.00 (v) Muzaffarpur Rs.67,39,27,892.00 (vi) Patna Rs.30,52,21,000.00 (vii) Purnia Rs.38,11,03,054.00 (viii) Samastipur Rs.56,84,72,500.00 ------------------------ Total Rs.309,90,74,978.00 Pending

46. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 (g) Proper UCs for the funds disbursed for Teacher Salary have not been obtained made available to the Auditor in Bhojput, Burear, Gaya, Gopalganj, Jamui, Jahanabad, Lakhisarai, Nalanda, Nawada, Rohtas Saran, Shekhpura, Siwan Vaishali Districts. (h)Payments made to VSS/BRC/CRC in the nature of grants are directly treated as expenditure without obtaining the SOE/UC. Pending

47. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 (i) Fixed Assets register is not properly maintained. (j) Physical verification of Final Fund Fixed Assets was not conducted. (k) Audit Report compliance was not available. l) (i) Financial statements for the year 2009-10 were not presented for approval and adoption by the EC. (SPC). (ii) Physical verification report of stores was not produced. Pending

48. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) ( iii) TDRS were physically available but books of account TDR is showing negative balance. No records were produced. (iv) Details of advances outstanding was not available. Advances were given to such persons whose identity is not available with the Accounts Branch. (v)Many cases of irregular payments. (vi)Rs.58,09,600 was debited to different account heads of Media component on 31.03.2011 which are not related to the activities performed.

49. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 (ii)The procurement audit certificate submitted by your office is not in the prescribed format. (iii)The reply given is incomplete. The reasons for non adjustment of advances have not been furnished. (iv)No comments. (v)Reason for showing different figures of opening balance in different financial statements have not been given. (vii) The difference has to be reconciled quickly.

50. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 (viii)Advances need to be adjusted in the financial year to which the grant relates. For adjustments of advances in subsequent years approval of PAB for spell over is required. (ix)This has to been done and register of advances properly maintained.

51. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 ( x) State cheques need to be reversed at the time of Reconciliation of Bank Balance with cash/Bank Book balance every month which is not being done in Bihar SSA. Needful has to be got done on priority basis as considerable amount of Rs.51.16 Crores is lying un-utilized in Bank Reconciliation statements. (xi) Civil works constructed out of SSA funds are required to be shown in the consolidated Balance sheet under Fixed Assets as would be seen from the format at Annexure XXI of the Manual on Financial Management & Procurement. This may kindly be ensured.

52. Contd… Bihar Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 Your office has not furnished comments/clarification on the auditor’s observation pointed out in para 2. A & B of my D.O. letter dated 8 th February 2012. The External Development Partner while calculating their share of eligible expenditure for the year 2010-2011 have disallowed the expenditure of Rs.3354.91 crores reported by SSA-bihar from the gross expenditure because of persistent long standing weaknesses in FM system under SSA.

53. 5. Chandigarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 Rs51.29 lac as excess expenditure paid to NCERT as advances in 2008-09, advances booked as expenditure in 2008-09 and 2009- 10 Rs51.29 lac spent on purchase of books as advance expenditure for the year 2009-10. Rs.51.29 lac paid to NCERT as advance in 2008-09 remain as advance in the books of account and treated as expenditure in 2009-10 after PAB approval, State had treated the same as expenditure in 2008-09 which is not correct and PAB approval for the same has not been obtained, therefore this is an un-authorized expenditure ex- post facto approval of PAB to regularize the same.

54. Contd… Chandigarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 1. Para is for adjustment of advances of Rs.1.61 lac in 2008-2009. 2. Expenditure booked more than the approved budget of Rs. 23.31 lakh. 1.Rs.1.61 lac outstanding during 2008-09 adjusted in the year 2009-10. 2. State requested revised budget and PAB approval for excess expenditure. Under consideration

55. 6. Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2005- 2006 (i)The net debit suspense of Rs.50,16,909/- which stands at Rs.31,99,647/- as per the audit report. (ii)The balance of Rs.2,66,08,219/- which stands at Rs.1,80,87,725/- as per audit report The Action Taken Report on these items was initially called for from the State on 26-10-2006. Again taken up the matter with the State on 19-10-2007. Despite the issue of several reminders, the last being on 17-9-2012, the reply is still awaited from the State. The State on 26-9-2007 has stated that districts have been advised to pass necessary entries in their books of accounts.

56. Contd…Chhattisgarh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2005- 2006 The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

57. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2006- 2007 (i)Procedural lapses like refund of unspent balances taken as other receipts instead of minus expenditure under the respective heads, non carrying out of bank reconciliation on regular basis, debit balance in the suspense account, inter scheme transfer of funds, non maintenance of fixed asset register, maintenance of The Action Taken Report on these items was initially called for from the State on 8-10-2007. Despite the issue of 29 reminders, the last being on 17-9-2012, the reply is still awaited from the State. The State has not furnished any reply to these points.

58. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2006- 2007 current bank account instead of savings bank account, non submission of accounts to audit in some sub district level units, non following of prescribed procurement procedure etc. The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

59. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2007-2008 (i) Rs.35.20 crore was shown as expenditure under the activity of ‘others’ in the consolidated financial statement. In the footnote it was stated that others include increase in advances receivable, advances payable, adjustment of project funds. Hence, this is to be treated as advance and cannot be treated as expenditure. (ii)Variation in unspent balance (iii)Variation in suspense account The Action Taken Report on all points included in the audit report was initially called for from the State on 9-9-2009. Again the matter was taken up with the State on 21-12-2009. Despite the issue of 13 reminders, the last being on 17-9-2012, the reply is still awaited from the State. The State has furnished the rectification and verification report 1-12- 2009 but these points were not properly replied.

60. Contd…Chhattisgarh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2007- 2008 The Status of compliance of Audit Observations was discussed in the 37th Review Meeting of the State Finance Controllers held on 29th-30th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months. The State has not furnished any further reply to these points

61. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 1)Unspent balance did not include work in progress and outstanding advances of Rs.108788.65 lakh. 2)Rs.53359.286 lakh shown as expenditure under some heads did not constitute expenditure as the actual usage is not known/recognized. The Action Taken Report on all points included in the audit report was initially called for from the State on 12-1-2010 for SSA and 11-2- 2010 for KGBV and NPEGEL.. The State has not furnished any reply to these points

62. Contd…Chhattisgarh : YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 (iii) Free text books were distributed to ineligible students. Rs. 566.52 lakh was released to State Hathkargha Vikas Sangh for purchase of Darri under ECCE innovation but the Darri was not delivered till the time of audit. (iv) Interest not credited in the books of account. Despite the issue of several reminders, the last being on 17- 9-2012, the reply is still awaited from the State.

63. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2008- 2009 (v) Rs. 5.28 lakh refunded by KGBV, Antagarh of Kanker to the DPO was neither received by DPO nor accounted for in the books of accounts of DPO. (vi) Prescribed procurement procedure was not followed (vii) Under NPEGEL Rs.2.69 lakh by Janjgir and Rs. 6.66 lakh by Jorba districts refunded to SPO were not received by the SPO. The Status of compliance of Audit Observations was discussed in the 37th Review Meeting of the State Finance Controllers held on 29th-30th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

64. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 i.Computers purchase under SSA for Rs.779.03 lakh have been transferred to other departments. ii.Teachers’ salary was disbursed against sanctioned posts. iii. Bank reconciliation not carried out regularly. iv.Interest not credited in the books of accounts v.Procurement documents not produced to audit The Action Taken Report on all points included in the audit report was initially called for from the State on 27-12-2010. Despite the issue of several reminders, the last being on 5-12-2012, the reply is still awaited from the State. The State has clarified some of the points on 30-1-2012 but the clarification s on these points have not been furnished.

65. Contd…Chhattisgarh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2009-2010 The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

66. Contd…Chhattisgarh : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting 2010-2011(i)Expenditure of Rs.76.06 lakh was shown under the activity head ‘others’ which is not an approved activity. (ii) Embezzlement of Rs.0.38 lakh by Accountant of Manora Block of Jashpur district. The Action Taken Report on all points included in the audit report was initially called for from the State on 2-12-2011. The State has clarified the points on 22-12- 2011 and 7- 4-2012 and all except two points are outstanding.

67. Contd…Chhattisgarh : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2010-2011 The outstanding points were taken up with the State on 11-10-2012 and the reply is still awaited. The Status of compliance of Audit Observations was discussed in the 37th Review Meeting of the State Finance Controllers held on 29th-30th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months. On the Embezzlem ent, it was stated that the enquiry in under progress.

68. 7. D&N Haveli : Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting 2009- 2010 1.Entries in Cash Book not attested 2.There is no system of Internal Audit 1.Pending 2.Pending Reminder issued on 29 th November 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues. 2010- 2011 There is no system of Internal Audit Nil

69. 8. Goa: YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2008- 2009 UC for Rs. 404.88 lakhs awaited from PWD since 2007-08. Pending Latest reminder sent on 6 th July, 2012. 2009- 2010 (i) Outstanding advance of Rs. 628.80 lakhs. (ii) UC for Rs. 15.00 lakhs awaited from Directorate of Education. (iii) Rs. 180249.00 wrongly debited to SSA Account by the Bank SIS submitted comments under letter 21 st May, 2012. After consideration of the comments, SIS was advised to report the compliance to the Statutory Auditor and submit status of settlement of objections to MHRD. (Letter dated 12 th September, 2012).

70. 8. Goa: YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2010- 2011 (i) Advance of Rs. 221.48 lakhs is outstanding against PWD for last three years. (ii) UC for Rs. 60.00 lakhs only received from Directorate of Education against the advance of Rs. 75.00 lakhs. (iii) Rs. 180249.00 wrongly debited by Bank in 2009-10 to SSA Account. SIS submitted the comments under letter of 25.05.2012. SIS advised to report compliance to the Statutory Auditor and submit status of settlement to MHRD (Letter dated 12 th September, 2012). Reminder sent on 13 th December, 2012.

71. 9. Gujarat: YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting ) 2008- 2009 Excess expenditure of Rs. 236.125 lakh various activities. The proposal is under consideration of MHRD. The State on 23-9- 2010 has furnished the proposal for regularization of excess expenditure. 2009- 2010 (i)Excess expenditure of Rs. 15.12 lakh under BRC. (ii)Re-appropriation of funds without obtaining the approval of PAB. The Action Taken Report on all items was called for from the State on 21- 12-2010. Again the matter was taken up with the State on 12-7-2011. The State on 24-6- 2011 has furnished para-wise clarifications and other missing documents.

72. Contd… Gujarat: Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009- 2010 After examining the clarifications furnished by the States, the matter was again taken up with the State on 31-8-2012. Despite the issue of several reminders, the last being on 5-12-2012, the State has not taken any action to get the excess expenditure regularized through the PAB. The State on 20-8- 2012 has furnished further clarifications. As regards, the fraudulent transaction it was informed by the State that FIR was lodged by the DPO, Surendernagar on 2-3-2010.

73. Contd… Gujarat: Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009- 2010 The Status of compliance of Audit Observations was discussed in the 37 th Review Meeting of the State Finance Controllers held on 29 th -30 th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months. Criminal case No. 1457/10 was continued in District Court, Surendernagar and anticipatory bail was given by District Court to all accused. The police has submitted the charge sheet on 16-10-2010. Further progress is awaited.

74. Contd… Gujarat: YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2010- 2011 (i)Funds released to sub- district level units are treated as expenditure. (ii)Grants returned as unspent are being treated as income instead of minus expenditure. (iii)Mis-procurement of Rs. 11,33,302/- The Action Taken Report on all items was called for from the State on 29- 11-2011. A copy of MHRD’s letter was sent to the State on 22-2-2012. The State on 17-2- 2012 has sought for a copy of MHRD’s letter dated 29-11-2011. The Action Taken Report from the State is still awaited.

75. Contd… Gujarat: YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting ) 2010- 2011 (iv) Utilization certificates are not being sent by few VECs. (v) Procurement procedure is not followed at VEC/VCWCs/CRC. (vi) Excess expenditure of Rs. 196.88 lakh under various activities. Despite the issue of several reminders, the last being on 17-9- 2012, the State has not furnished any action taken report. The Status of compliance of Audit Observations was discussed in the 37th Review Meeting of the State Finance Controllers held on 29th- 30th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations in a time bound manner within 3 months.

76. 10. Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2005- 2006 1.Reconciliation of Rs.2.92 crores paid as salary to ABRCs for FY- 2003-2004 yet to be completed. 2.Refund of Rs.43 crores be credited to combined account to which expenditure was debited and not to credit to State Govt. share under SSA. 3.Expenditure of Rs.3364.68 lakhs on Teacher Salary for FY-2005- 2006 incurred by way of depositing the amount to State Govt. Treasury yet to be resolved/refunded. 4.Para 6.2 (ii) of IPAI report yet to be resolved. PendingReminder issued on 25 th September 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

77. Contd… Haryana YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting ) 2006- 2007 Expenditure of Rs. against teacher salary incurred by way of depositing the amount in State Govt. treasury. Matter has been taken up with Director-Elementary Education and DG Secondary Education- Haryana Reminder issued on 1 st April 2013 from *AS/MHRD to Principal Secretary, Haryana 2007- 2008 PAB approval for excess expenditure of Rs.11.84 lakhs for community mobilization is required. Pending Reminder issued on 25 th September 2012 and also discussed in 37 th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

78. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2007- 2008 2. The advance of Rs.8778.62 booked under Teacher Salary as expenditure in year 2007- 2008 has to be got rectified as expenditure based on expenditure statement as required. This irregularity was also pointed out by 10 th JRM of SSA during Review of Audit Review. Pending

79. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2008- 2009 1. Cheques not cleared by Banks do not constitute Miscellaneous Receipt. The proceeds of the Stale cheque are to credited to the head (activity head) to which the expenditure was debited and not to the Misc. Receipt. The misclassification needs to be rectified PendingReminder issued on 25th September 2012 and also discussed in 37th quarterly review meeting held with financial controllers requesting them to finalize these pending issues.

80. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2008- 2009 2. Amount of Rs.12051.90 lakhs released for Teacher Salary as shown in the Utilization Certificate was also to be shown as advance in the accounts of the Project but the same was treated as expenditure. 3. Thus advance of Rs.12051.90 lakhs treated as expenditure needs recertification as expenditure from the Statutory Auditor. The advance of Rs.12051.90 lakhs booked as expenditure under Teacher Salary in the financial statements needs to be recertified as expenditure based on the expenditure statement Pending

81. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009- 2010 1. An amount of Rs23692.24 lakhs advance given for Teacher Salary was shown as expenditure in the Financial Statements and FMRs. The total expenditure including the above advance was certified as Rs.41339.26 lakhs. The actual expenditure excluding the above advance amount works out to Rs.17647.02 lakhs. As required in Para-75.1 of the Manual on Financial Management & Procurement PendingReminder issued on 25th September 2012 and also discussed in 37th quarterly review meeting held with financial controllers requesting them to finalize these pending issue s.

82. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009- 2010 t he Expenditure Statement should have been obtained and adjustment of advance made in accounts during the year 2009-2010, which has not been done. The advance of Rs.23692.24 lakhs treated as expenditure in the Project accounts, therefore, needs recertification as expenditure based on the expenditure statement as required in the Manual on Financial Management & Procurement (Para-75.1). The directions of the PAB for release of funds also need to be complied with. Needful may, therefore, be got done and Recertification Report furnished to this Ministry at the earliest.

83. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009- 2010 2. Excess expenditure incurred by Project on School Maintenance Grant/ School Grant/Teacher Grant needs to be regularized by PAB. 2010- 2011 1. Expenditure on Text Books/ Maintenance Grant/School Grant/Teacher Grant exceed outlay approved by PAB. Require PAB approval. Pending R eminder issued on 17th Sept 2012

84. Contd… Haryana YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2010- 2011 2. The closing balance of Rs.37026.84 lakhs (shown in the CAFS) which does not include advances given for Teacher Salary as indicated in the Utilization Certificates for the year 2008-2009 and 2009-2010 (Rs.12051.90 + Rs.23692.24 lakhs) does not reconcile with the closing balance of RS.38363.42 lakhs (Rs.22422.03 Advances against expenditure and Rs.15941.39 lakhs Bank cash & other advances) shown in the Utilization Certificate. The difference of Rs.1336.58 lakhs has to be reconciled. Pending

85. 11. Himachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2007- 2008 (i) Legal cases involving misappropriation of funds against Shri O. C. Guleria, Shri Rajesh Kumar, IDE Coordinator Shimla, case against DPO Nahan and Solan. (ii) Excess expenditure of Rs. 456945.00 under text book and Rs. 171431.00 under BRC/CRC. Cases are pending in the Court (Letter dated 23 rd March, 2012) Excess expenditure confirmed (Letter dated 23 rd March, 2012) Pending final action taken to be reported to MHRD. Para may be treated as settled (Letter dated 5 th July, 2012). Report regularization by PAB (Letter dated 5 th July, 2012).

86. 11. Himachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2008- 2009 (i) Rs. 56.73 lakhs spent for furniture and equipment even though this activity is not approved by the PAB. (ii) Rs. 2411.54 lakhs shown as expenditure of civil works which is actually advance. (iii) Rs. 193.43 lakhs spent over the budget allotment for REMS, TLM (CRC), KGBV, FTB, drinking water facility, major repair, boundary wall, repair & maintenance, fixed assets. (iv) Case of misappropriation of Rs. 181995.00 against Shri Rajesh Kumar, Driver. Expenditure has been booked under Management Cost. Noted for compliance in future. Excess expenditure confirmed by the State. Case pending in the Court. (Letter dated 30 th August, 2011) Treated as settled. (Letter dated 27 th February, 2012) Need to be got certified by the Auditor To be got regularized with the approval of the PAB. Para may be dropped and compliance watched through Audit Report of 2007-08.

87. Contd.. Himachal Pradesh YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2009 - 2010 Excess expenditure of Rs. 598.07 lakhs over budget allotment in DPOs and SPO office. Excess expenditure confirmed by the State under letter dated 29 th September 2011. To be regularized by approval of PAB (Letter dated 19 th October, 2011) 2010 - 2011 (i) Excess expenditure of Rs. 26.81 lakhs over budget allotment in Library books, CAL, NPEGEL, maintenance grant and REMS. (ii) Rs. 900.00 wrongly debited by the Bank to SSA Account on 27.02.2008. Excess expenditure confirmed by SIS under letter 21.03.2012. DPO instructed to get the entry reversed by the Bank under letter 21.03.2012. A copy of PAB approval to be provided to MHRD (Letter dated 30.04.2012). Compliance may be reported to the Auditor for settlement of the para (Letter dated 30.04.2012). (Latest reminder sent on 11.10.2012).

88. 11. Jammu & Kashmir : YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting ) 2010- 2011 Rs.64450.71 lac shown outstanding reason for non adjustment not given SIS replied to letter dated 20- 1-2013 that CA has been requested to furnish detail of Outstanding advances. Under consideration

89. 12. Jharkhand: YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting) 2010 -2011 (i)Expenditure of Rs. 212.00 crore was booked under other activities instead of against the approved activities. (ii)Refund of unspent balances by sub-district units was taken as miscellaneous receipts instead of minus expenditure under the respective heads. (iii)Non-maintenance of asset register, stock register and non-carrying out of annual physical verification of Assets and Stock register. These are mainly procedural lapses and no financial implication is involved. The Action Taken Report was called from the State on 16 th February 2012. Reminders issued on 19 th March 2012, 18 th June 2012 and 11 th September 2012. The response from the State is awaited.

90. Contd....Jharkhand: Year Nature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010-2011 Th e Status of compliance of Audit Observations was discussed in the 37th Review Meeting of the State Finance Controllers held on 29th-30th April 2013 and emphasized the need for prompt compliance of the outstanding audit observations.

91. 13. Karnataka : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting) 2006- 2007 Expenditure in excess of approved outlay under BRC – Rs. 82.845 lakhs Expenditure in excess of approved outlay under CRC – Rs. 19.877 lakhs Pending despite regular reminders Latest reminder sent on 18 th July, 2010 2007- 2008 Expenditure in excess of approved outlay – Rs. 11978.869 lakhs Pending despite regular reminders Latest reminder sent on 26th February, 2013

92. Contd… Karnataka : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting) 2008 - 2009 Expenditure in excess of approved outlay under BRC & CRC – Rs. 557.566 lakhs State accepted the excess expenditure and promised to get it regularized under their letter dated 18 th July, 2009 State to furnish the intimation of regularization by the competent authority. Letter sent to State on 8 th January, 2010. Liability of Rs. 1136.106 lakh provided under CAL in 2008-09 despite the tender finalized in April 2009 State intimated that the tender could not be finalized in 2008- 09 due to certain technical difficulties. Requested to consider this as the liability for 2008-09 (State letter of 18 th December, 2009) It was conveyed to the State on 8 th January, 2010 that the Plea of State not acceptable. Latest reminder sent on 4 th July, 2012.

93. Contd… Karnataka : YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 Refund of Rs. 874.57 lakh taken as receipt. Expenditure of Rs. 3760.87 lakhs pertaining to 2008-09 has been included in the accounts of 2009-10. SIS intimated that this was the figure of expenditure of unsettled advances under their letter dated 4th November, 2011 Pending State was advised that it should have been credited to advance in that year under letter dated 20th September, 20 12. Latest reminder on 20th September, 2012.

94. Contd… Karnataka : YearNature of ObservationsAction Taken by State Action taken by MHRD (Minutes in FC meeting) 2009- 2010 Expenditure of Rs. 1354.75 lakh spent on free textbooks pertaining to 2007-08 and 2008-09 included in 2009-10. Excess expenditure of Rs. 3026.47 lakhs in civil works Rs. 100.26 lakhs excess expenditure over budget allotment in NPEGEL. State submitted comments on 19th July, 2011. SIS agreed to put up the case to PAB for approval under their letter of 4th November, 2011 SIS was advised that expenditure of previous years cannot be included in the current year. Regularization by competent authority is required.

95. Contd… Karnataka : YearNature of Observations Action Taken by State Action taken by MHRD (Minutes in FC meeting) 2010- 2011 Rs. 603.00 lakhs refunded by district taken as income in 2010-2011. Pending Reminder issued on 28 th August, 2012. Rs. 230.096 lakhs spent in excess of budget allotment under innovative head. SIS proposed to take approval of PAB under letter 23 rd June, 2012. SIS to provide PAB approval. Letter sent on 9 th July, 2012.