As already pointed out in the 30th Review Meeting of Finance Controllers- MHRD vide letter No.17/1/2011 dated 24th May 2011 has requested all the State Project Directors to get the accounts records of SSA for the year 2010-2011 audited in a proper and timely manner. Recurrence of the following audit observations was also pointed out. Status of Audit Reports • Un-reconciled accounts or funds in transit • Bank reconciliation in arrears or improper Bank reconciliation
(iii) Large outstanding Utilization Certificates • (iv) Advances being treated as expenditure. • (v) Lack of proper follow up action on old outstanding advances. • (vi) Advances given to State Govt. Department for payment of Teacher Salary being treated as expenditure • (vii) 2 conditions imposed by PAB for release of funds for teacher salary under SSA are not complied with • (viii) Inadequate coverage of Procurement process • (ix) All the prescribed documents are not submitted with the audit report
In order to ensure timely submission of the audit report, streamlining the process of audit to avoid recurrence of audit observations some steps were also suggested. It was also requested that the audit report complete in all respects should be submitted to MHRD by 1st November 2011. A copy of MHRD letter dated 24th May 2011 has again been circulated in the minutes of the 30th Review Meeting of Finance Controllers to ensure necessary action.
Status of Audit Reports for the year 2010-11 under SarvaShikshaAbhiyan Audit Report for the year 2010-2011 have so far been received from the following States/UTs. It is again requested that submission of the Audit Report for the year 2010-2011 by 1st November 2011 may please be ensured.
Status of compliance of Audit Reports for the year 2009-2010 In the last meeting of Finance Controllers it was pointed out that 17 States/UTs out of the 34 States/UTs to whom a deficiency letter pointing out the discrepancies in audited accounts and certain audit observations of concern made by the Auditor in the Audit Report were sent have not sent their 1st response despite repeated reminders. During this quarter 6 out 17 States have sent their response. The following 11 States/ UTs have still to respond to the deficiency letter sent to them.
Similar letter sent for the year 2008-2009 have also not been responded by the following States/UTs despite repeated reminders.
However compliance in respect of the Audit Report for the following years is still pending with the following States/UTs.
All concerned are again requested to furnish necessary comments/ clarifications/ action taken report at the earliest.
Compliance with the Audit Objections Attention of the Finance Controllers was also drawn to Para –110.1 of the Manual on Financial Management & Procurement which provides that in order to keep a watch over the settlement of audit objections included in the audit report of statutory auditors and Accountant General / Audit the Accounts Wing / Audit cell of the State Society will maintain a register in the format given in Annexure –XXIV setting apart separate folios for each DDO. It also provides that progress of settlement of audit objections will be reviewed by the SPD on monthly basis and appropriate further action taken to ensure their speedy settlement.
As provided in Para-110.3 the reported compliance with the objections made by the DDOs shall be verified by the Auditor at the time of next Audit. Compliance of Audit observations / objections is to be reported to GOI by the SIS regularly on a quarterly basis in the format given in Annexure-XXV. It was pointed out that the above quarterly statement is not being received in MHRD from all the SIS regularly. This report for the quarter ending 31.3.2011 has not been received from the following State I.S. despite a reminder letter sent to the State Project Directors on 11th July 2011.
MHRD vide letter No.17/8/2011-SSA(DIS) dated 15th September 2011 again pointed out non receipt of the above Report for the quarter ending 30.6.2011 from the following 23 States. As listed in the letter : (Arunachal Pradesh, Andhra Pradesh, Bihar, Chandigarh, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Lakshwadeep, Maharashtra, Meghalaya, Manipur, Mizoram, Nagaland, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura & West Bengal)
The above Report for the Quarter Ending 30.9.2011 due to be received in the Ministry by 15.10.2011 has been received from A&N Islands only. All are, therefore again requested to ensure that the Register as prescribed in the Manual is maintained, compliance of objections is reviewed regularly and the quarterly report showing the position of settlement of audit objections is submitted to Govt. of India regularly every quarter by the due date.
All concerned are requested to expedite the response/Action Taken Report.
Unspent Balance under DPEP (GOI’s Share due from the States)