Rajasthan Grameen Aajeevika Vikas Parishad Third Floor,RFC Block,Udyog Bhawan,Tilak Marg,Jaipur,Rajasthan Phone No. 2227011, 2227416, Fax-2227723 No.F 3(1 )RGAVP/RRLP/Ext. Audit/2015- I Date:- S 1 1 2 Mr. Adarsh Kumar Senior Rural Development Specialist Agriculture Global Practice, The World Bank, Hindustan Times House, 18-20 Kasturbha Gandhi Marg, New Delhi - 110001 Sub:- C.A. Audit Report 2014-15 of RRLP. Respected Sir, C.A. Audit Report 2014-15 of RRLP with all relevant supporting documents is enclosed herewith. Your faithfully GM(Finance) Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
No.F 3(1 )RGAVP/RRLP/Ext. Audit/2015- I Date:- S 1 1 2
Mr. Adarsh KumarSenior Rural Development SpecialistAgriculture Global Practice, The World Bank,Hindustan Times House,18-20 Kasturbha Gandhi Marg, New Delhi - 110001
Sub:- C.A. Audit Report 2014-15 of RRLP.
Respected Sir,
C.A. Audit Report 2014-15 of RRLP with all relevantsupporting documents is enclosed herewith.
Your faithfully
GM(Finance)
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
RAIASTHAN RURAL LIVELIHOOD PROJECT
(RRLP)
--P VS eC0Gcýruxere couin.Office No 444, Sunny Mart, New Aatish Market,Mansarovar, Jaipur (Rajasthan) - 302020Mobile No. : 07737195080/ 0141-5139911Email: [email protected], nkj81@rediffmailcom
JLN US & Co. 444 , 4th floor, Sunny Mart
Chartered Accountants New Aatish Market, Mansarovar,
To the Governing Body ofRajasthan Grarneen Aajeevika Vikas Parishad (RGAVP)Jaipur, Rajasthan
Report on the Financial Statements
We have audited the accompanying financial statements of Rajasthan Rural Livelihood
Project (RRLP) (financed under World Bank credit No. 4859-IN) being implemented by
Rajasthan Grameen Aajeevika Vikas Parishad (a society registered under the
Rajasthan Societies Registration Act, 1958) which comprise the Balance Sheet as at
March 31, 2015, the Income and Expenditure Account, the Receipts and Payments
Account for the year then ended and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give
a true and fair view of the financial position and financial performance of the Society
in accordance with Rajasthan Societies Registration Act, 1958. This responsibility
includes the design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by
the Institute of Chartered Accountants of India. Those Standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Society's
preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on effectiveness of the society's internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Chartered 0Acountants -
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the accompanying financial statements give a true and fair view of the
financial position of Rajasthan Rural Livelihood Project (RRLP) for the year ended
March 31, 2015 in conformity with the accounting principles generally accepted in
India.
Emphasis of Matter
Without qualifying our opinion, we draw attention to:
A. Notes to Financial Statements
1. No. 3(iv): Debit/ credit balances are subject to reconciliation andconfirmation.
2. No. 3(vii): Total expenses (including salary) of Rs. 238.47/- Lacsincurred at Bundi, Chittorgarh, Pratapgarh, & Bikaner and tranche wasissued Rs. 5.85/- lacs only, out of which no tranche was issued at Bundi& Chittorgarh.
B. Observations/ comments as contained in Management Letter
Our observations/ comments, as contained in the attached Management letterwherein internal control system on certain areas needs to be furtherstrengthened including certain issues pertaining to non-compliances withstatutes. The key issues are as under:-
a) Statutory dues was Rs. 7,46,015/-, out of this TDS delay in deposit wasRs. 4,63,162/-, short deposit of TDS was Rs. 6,662/-, short deductionof TDS was Rs. 1,52,211 and non deduction and non deposit of TDSwas Rs. 49,564/-.
GPF and SI deducted but not deposited and short deposited were Rs.73,516/- and 900/- respectively.
Moreover there were delays/ non availability of TDS returns andincorrect TDS returns filed in few cases.
b) Material departure from the internal control policies was brought toattention, specifically in relation to:
i. Maintenance of financial records due to non-preparation ofvouchers in Tally on real time basis, non-mentioning of narrationon the vouchers, accounting staff not adequately trained forworking in Tally, lack of control over processing of vouchers andthe manuals not followed properly. Further, supporting in case ofexpenses incurred on training and workshop were not adequate.
iii. attendance and leave records for employees/ consultant/ PFTs/contractual staff deployed through placement agencies were notproperly maintained;
iv. Non-recovery/ non-adjustment of advances of Rs. 211.80 lakhsgiven to other than staff.
v. Advances given to staff, was not adjusted with in stipulatedperiod. Interest on advance to staff of Rs. 8,921/- is to berecovered from concern staff.
vi. Procurement or Tenders procedures not followed at dungarpurDPMU regarding vehicle hiring and made payment of Rs.2,54,184/-.
Report on Other Matters
a) With respect to Interim Unaudited Financial Reports (IUFRs) submitted to theWorld Bank, it was noted that the basis for consolidation of IUFRs submitted tothe World Bank was not verified to us nor tallied with books of accounts andtherefore we cannot comment on the accuracy of the same.
b) Fixed assets of Rs. 36.76/- lacs out of total Fixed Assets of Rs. 124.64/- lacswere held at following locations as on 31.03.2015. However, the physicalverification of assets was not carried out during year 2014-15 or subsequentlythus assets were not verified.
For JLN US & CO.Chartered Accountants
Firm Reg. No: 101543W S
Place : JAIPUR NEERAJ KUMAR JAIDate 31s December, 2015. Partner
Membership No. 408211
RAJASTHAN GRAMEEN AAJEEVIKA VIKAS PARISHAD - RAJASTHAN RURAL LIVELIHOOD PROJECT(Registered Under The Rajasthan Societies Registration Act, 1958)
As at 31st March, As at 31st March, As at 31st March, As at 31st March,2015 (Rs.) 2014 (Rs.) 2015 (Rs.) 2014 (Rs.)
Fund Account from GoR (unspent balance) Fixed Assets (Schedule 'A' enclosed)Opening balance 190,105,439.14 70,923,651.28 Gross Block 17,376,741.55 15,370,936.55Add: Fund received during the year 1,100,000,000.00 750,000,000.00 (Less): Accumulated depreciation (4,912,707.19) (4,912,707.19)Add: Miscellaneous Income 38,540.00 19,363.00 Net Block 12,464,034.36 10,458,229.36Add: Interest on saving bank 11,232,459.85 4,637,870.00(Less): Transfer to Income a Expenditure account (832,624,432.38) (631,353,967.14) Current Assets(Less): Transfer to Capital Fund Account (2,005,805.00) (4,121,478.00) Cash ft bank balances
466,746,201.61 190,105,439.14 Cash in Hand 19,240.00 18,189.00Capital Fund Account Balances with banks:(created to the extent assets capitalised) -Saving bank 302,206,925.32 85,810,826.54Opening balance 10,458,229.36 9,347,005.51 -Current account - 265,513.00Add: Transferred from Fund account 2,005,805.00 4,121,478.00 -Personal Deposit Account maintained with GoR Treasury 100,000,000.00 100,000,000.00
Fund-In-Transit(Dungerpur and Udaipur) 30,000,000.00
(Less): Transferred from Income ft Expenditure account - (3,010,254.15) 432,226,165.32 186,094,528.54
12,464,034.36 10,458,229.36 Loans Et Advances
Advance to vendors 34,327,032.72 5,353,949.93Current Liabilities Advance to employees 2,320,264.00 550,886.00Security Deposit/ EMD - vendors 986,111.00 570,990.00 Security deposit/EMD- State Govt. treasury 99,710.00 99,710.00
Payable to State Govt. Treasury 400.00 400.00 Receivable from GOR towards Purchase of Assets 11,911.00 11,911.00Advance from State Govt. Treasury 783,349.00 783,349.00 Advance to NRLM project - 92,873.00Advance from NRLP Project 55,343.00 - TDS Receivable 587,112.00Salary deductions 181,741.71 317,029.61 SPMU Advance (Maintained in seprate a/c) 100,000.00Tax Deduction at Source 5,238.72 5,764.72Payable to Rajasthan Skill ft Livelihoods DevelopmentCorporation (RSLDC) 83,260.00 83,260.00Payable to vendors 33,614.00 33,614.00Refund of unutilized grant of DPIP project 304,012.00 304,012.00Payable for patrakar kalyan kosh (PKK) 438.00Advancve from NRLM Project 492,486.00
Significant Accounting Policies and Notes to Accounts formingpart of the Balance sheet enclosed
income & Expenditure Account for the year ended 31st March, 2015
For the year ended For the year ended For the year ended For the year endedEXPENDITURE 31st March, 2015 31st March, 2014 INCOME 31st March, 2015 31st March, 2014
(Rs.) (Rs.) (Rs.) (Rs.)
Project Implementation Support Transfer from Fund account from GoR 832,624,432.38 631,353,967.14Salary 57,113,351.87 56,277,109.75Contractual Payments (Salary) 29,044,725.00 28,657,213.00Travelling Allowance 4,343,546.00 2,586,578.00Medical Expenses (Employees) 774,334.00 887,898.00Office Expenses 3,009,461.00 3,275,013.00Telephone 1,460,434.00 1,435,872.00Office Rent 3,570,305.00 3,606,743.00Printing & stationery 3,983,314.00 2,916,168.00Vehicle Hiring 4,505,617.00 4,802,477.00Vehicle Repair a Maintenance 89,827.00 73,333.00Professional a Consultants Fees 4,332,051.00 2,022,908.00Advertisement 609,874.00 1,263,236.00Entertainment 49,172.00 69,232.00Meetings 294,205.00 450,187.00Bank charges (5,442.00) 11,100.95Monitoring & Evaluation:-Baseline Study 55,800,00 207,739.00-Process Monitoring 164,742.00-Impact Assessment 2,322,999.00 49,062.00Training a Capacity Building:-induction Training 109,405.00 409,999.00-Management Training 276,425.00 118,921.00-Thematic Training- TCB 365,224.00 19,135.00-Training a Visit 9,671,612.00 348,693.00-Stakeholder Workshop 462,312.00 11,415.00Community Investment SupportSHG Livelihood Investment Tranche-I 63,297,350.00 54,059,000.00SHG Livelihood Investment Tranche-II 438,166,050.00 357,498,000.00institutional Building & Social Empowerment
Support to Project Facilitation Team (PFT)Capacity Building of PFT 34,421,818.42 5,111,973.50Remuneration 43,113,724.95 54,890,953.44Contractual Payments (Salary) 13,289,731.00 3,259,311.00Travelling Allowance 693,555.00 1,416,382.00Office Expenses 1,630,011.00 959,438.00Telephone 453,614.74 432,946.00Office Rent 536,165.00 427,775.00
Chartered
Medical 34,387.00 98,302.00Printing Et stationery 429,148.00 8,662.00Misc Expense
Support to PFT(Allowances)
Community Mobilization Et Institution BuildingCommunity Moblization 12,783,048.00 2,940,625.00Community Resource Persons Expenses 16,210.00 474,457.50Support to Community Service Provider 87,676,649.40 39,223,358.00Capacity BuildingIEC Activities 909,876.00 1,052,751.00
Receipts & Payments Account for the year ended 31st March, 2015
For the year ended For the year ended For the year ended For the year endedRECEIPTS 31st March, 2015 31st March, 2014 PAYMENTS 31st March, 2015 31st March, 2014
(Rs.) (Rs.) (Rs.) (Rs.)
Opening Balance - Cash in hand 4,231.00 Project Implementation Support
Cash at Bank 18,189.00 Salary 57,113,351.87 56,277,109.75-Saving bank 85,810,826.54 68,337,657.46 Contractual Payments (Salary) 29,044,725.00 28,657,213.00-Current account 265,513.00 1,044,438.00 Travelling Allowance 4,343,546.00 2,586,578.00PD Account 100,000,000.00Fund received from GoR 1,100,000,000.00 750,000,000.00 Medical Expenses (Employees) 774,334.00 887,898.00Miscellaneous Income 38,540.00 19,363.00 Office Expenses 3,009,461.00 3,275,013.00Interest on saving bank 11,232,459.85 4,637,870.00 Telephone 1,460,434.00 1,435,872.00Salary deductions 317,029.61 Office Rent 3,570,305.00 3,606,743.00TDS - Printing E stationery 3,983,314.00 2,916,168.00Security Deposit/EMD - vendors 415,121.00 79,030.00 Vehicle Hiring 4,505,617.00 4,802,477.00RSLDC fund - Vehicle Repair & Maintenance 89,827.00 73,333.00Advance to employees received back - Professional Et Consultants Fees 4,332,051.00 2,022,908.00Refund of unutilized grant of DPIP project 304,012.00 Advertisement 609,874.00 1,263,236.00Advance from NRLP Project 55,343.00 Entertainment 49,172.00 69,232.00Payable towards Patrakar Kalyan Kosh(PKK) 438.00 Meetings 294,205.00 450,187.00Advance from NRLM Project 585,359.00 Bank charges (5,442.00) 11,100.95Significant Accounting Policies and Notes to Accounts formingpart of the Receipts and Payments Account enclosed Monitoring Et Evaluation:
-Baseline Study 55,800.00 207,739.00-Process monitoring 164,742.00-impact Assessment 2,322,999.00 49,062.00Training Et CapacitV Building:-induction Training 109,405.00 409,999.00-Management Training 276,425.00 118,921.00-Thematic Training- TCB 365,224.00 19,135.00-Training a± visit 9,671,612.00 348,693.00-Stakeholder Workshop 462,312.00 11,415.00Community Investment SupportSHG Livelihood Investment Tranche-I 63,297,350.00 54,059,000.00SHG Livelihood Investment Tranche-II 438,166,050.00 357,498,000.00Institutional Building & Social Empowerment
Support to Proiect Facilitation Team (PFT)Capacity Building of PFT 34,421,818.42 5,111,973.50Remuneration 43,113,724.95 54,890,953.44Contractual Payments (Salary) 13,289,731.00 3,259,311.00Travelling Allowance 693,555.00 1,416,382.00Office Expenses 1,630,011.00 959,438.00Telephone 453,614.74 432,946.00Office Rent Gb tes 536,165.00 427,775.00Medical Expenses (Employees) 11 34,387.00 98,302.00Printing Et stationery 429,148.00 8,662.00
Misc ExpenseSupport to PFT(Attowances)Community Mobilization Et Institution Buildin-
Community Moblization 12,783,048.00 2,940,625.00Community Resource Persons Expenses 16,210.00 474,457.50
Support to Community Service Provider 87,676,649.40 39,223,358.00Capacity BuildingIEC Activities 909,876.00 1,052,751.00
Security Deposit/ EMD deposited in State Govt. Treasury - 15,050.00Advance to employees 1,769,378.00 46,790.00Advance to vendor 28,973,082.79 2,614,626.93SPMU Advanve (Maintained in Seprate A/c) 100,000.00 -
Advances to NRLM Project . 104,784.00
Payable to RSLDC - 50,000.00
Closing Balance:
Cash in hand 19,240.00 18,189.00Cash at Bank-Saving bank 302,206,925.32 85,810,826.54-Current account - 265,513.00-PD Account 100,000,000.00 100,000,000.00Fund- In-Transit (Dungerpur and Udaipur) 30,000,000.00 -
DESCRIPTION RATE OF GROSS BLOCK AS AT ADDITIONS (Rs.) DELETION/ GROSS BLOCK AS AT DEPRECIATION AS DEPRECIATION FOR TOTAL NET BLOCK AS AT NET BLOCK AS AT01.04.2014 SALES 31.03.2015 AT 01.04.2014 (Rs.) THE YEAR (Rs.) DEPRECIATION UP TO 31.03.2015 31.03.2014
DEP. (Rs.) (Rs.) (Rs.) 31.03.2015 (Rs.) (Rs.) (Rs.)(%) Upto 180 days More than 180
The funds are transferred by 'IDA' to the Government of India, whichare then transferred to 'RGAVP' through Government of Rajasthan.Accordingly, the entire funding is accounted for under Fund Accountfrom GoR in the accounts.
3. Other Notes
(i) The enclosed financial Statements comprise the accounts of its StateProject Management Unit (SPMU) and 18 District Project ManagementUnit (DPMUs). The financial statements of both SPMU and each ofDPMUs have been combined on a line-to-line basis by adding the bookvalue of like items of assets, liabilities, income and expenditure. Intra-unit transactions have been eliminated on consolidation. These do notrepresent the financial statements of 'RGAVP'.
(ii) RGAVP is a society where numbers of projects are carried out. As theseaccounts are of one of the project namely 'RRLP' hence considering thenature of its activities.wherein no income is generated which attractstax, accordingly no provision for tax is considered necessary in theenclosed accounts.
(iii) In the opinion of the management, the Current Assets and Loans &Advances as at 31.03.2015 have a value on realization in the ordinarycourse of business at least equal to the amount at which they are statedin the Balance Sheet.
(iv) Debit/ Credit balances are subject to confirmation/ reconciliation. Theimpact, if any, subsequent to the reconciliation will be taken in the yearthe confirmation/ reconciliation is carried out.
(v) The staff for the project has been deputed by the Government ofRajasthan. The salary of the deputed staff is charged to the project andapplicable statutory compliances such as provision of EmployeesProvident Fund Act, Employees State Insurance Act, Payment of BonusAct, Payment of Gratuity Act etc. are complied by the Government ofRajasthan.
Further, certain staff for the project has been hired on contractual basisfor which the Society has no obligation towards employees benefitsexcept for the remuneration paid accordingly none of the applicablestatues thereto as are applicable to employees are applicable to thesecontractual employees.
(vi) The financial statements of the project are drawn on cash basis henceno provisions has been created including for approved audit fees(including out of pocket expenses) of Rs. 9,00,000/- for the year.
(vii) 'RGAVP' to implement 'RRLP' programme has set up District ProjectManagement Units (DPMU) in 18 targeted districts of Rajasthan, out ofwhich Total expenses Including salary Rs. 238.47/- Lacs incurred atBundi, Chittorgarh, Pratapgarh, & Bikaner and tranche were issued Rs.5.85/- lacs only, out of this no tranche was issued at Bundi &Chittorgarh.
3/
(viii) Grant of Rs. 10/- crores received in financial year 2013-14 fromGovernment of Rajasthan (GoR) is retained in the Personal Depositaccount maintained with Treasury of GoR which is pending transfer tothe Project Bank accounts and has been shown separately under Cash &Bank Balances.
(ix) Refund of unutilized grant of Rs. 3,04,012/- was received in the year2013-14 pertaining to erstwhile DPIP project and has been shown underCurrent Liabilities. This amount shall be returned as and when theamount is claimed.
(x) During the financial year 2014-15, Advance received from NRLP Projectof Rs. 55,343/- & from NRLM project of Rs. 4,92,486/-.
(xi) TDS of Rs. 5,87,112/- was deducted by banks in few districts, which isour assets in shown in balance sheet under the head "Current Assets".
(xii) On our balance sheet dated 31-03-2015 Advances Outstanding of Rs23,20,264/- and 34327032/- in the heads of staff and Vendorsrespectively, Which is shown as "Loans & Advances".
(xiii) In accordance with Accounting Standard (AS 18) "Related PartyDisclosures", disclosure in respect of transactions with the relatedparties are as follows:
a. Name of related party and description of relationship: KeyManagement Personnel
NAME RELATIONSHIPMr. Rajeev Singh Thakur State Mission Director
Note: Related party relationship is as identified by the Society andrelied upon by the Auditors.
b. Details of transactions with the related party are as under:
Nature of For the year ended For the period endedTransaction 3 1 st March 2015 3 1 st March, 2014
LRs. (Rs.)Salary NIL NIL
(xiv) The Society is classified as Small and Medium Sized Enterprise (SME) ofLevel - II entity for the purposes of applicability of AccountingStandards as defined by the Council of the Institute of CharteredAccountants of India. Accordingly, the Society has complied with theAccounting Standards as applicable to a Small and Medium SizedEnterprise. Pursuant to the exemptions/ relaxations applicable to SME ofLevel - II, Accounting Standard (AS) 3 - Cash Flow Statements and AS17 - Segment Reporting are not applicable to the Society for thecurrent year. Further, certain exemptions/ relaxation from recognition,measurement and disclosure requirements in terms of AccountingStandard 15- Employee Benefits, Accounting Standard 19 - Leases,Accounting Standard 28 -Impairment of Assets and AccountingStandard 29 - Provisions, Contingent Liabilities and Contingent Assetshave been extended to the Society for the current year. Accordingly, theSociety has disclosed information to the extent applicable in thesefinancial statements pursuant to the above exemptions/ relaxations
4
(xv) Surplus funds are parked with the banks on which interest is earned,which is ploughed back to the project through fund account from GoRdirectly including any miscellaneous income.
(xvi) Claims against the Society not acknowledged as debts as at 3 1st March,2015: Rs. Nil.
(xvii)The previous year's figures have been regrouped/ rearranged, whereverconsidered necessary to make them comparable with the current yearfigures.
For and on behalf of the Rajasthan As per our Report of even date attachedGrameen Aajeevika Vikas Parishad For JLN US & Co.,
Chartered AccountantsFirm Reg. No. 10154 3
SIRMOUR MEENA Rajeev Singh Thakur Neeraj JainFinancial Advisor State Mission Director Partner
The audit of Rajasthan Rural Livelihoods Project (hereinafter referred to as'RRLP'), an International Development Association (hereinafter referred to
as 'IDA') assisted project funded in terms of credit no. 4859-INhas beencarried out by "JLN US &Co., Chartered Accountants, 3AIPUR (hereinafterreferred to as 'JLN')"for the year 2014-15.
The Ministry of Rural Development and Panchayati Raj, Government ofRajasthan (hereinafter referred to as 'RDPR') is executing the 'RRLP'project through "Rajasthan Grameen Aajeevika Vikas Parishad (hereinafterreferred to as 'RGAVP')", a society registered under The RajasthanSocieties Registration Act, 1958.
1.2 PROJECT BACKGROUND
Recognizing the need for continued action for promoting livelihoods in theState, Government of Rajasthan through 'RGAVP'is implementing a followon project (referred to as RRLP) to the District Poverty Initiative Project(DPIP) implemented during the period 2000-2007. The 'RRLP' projectsbeing implemented in 18 districts of Rajasthan, namely Baran, Bhilwara,Bundi, Banswara, Bikaner, Chittorgarh, Churu, Dausa, Dholpur,Dungarpur, Jhalawar, Karoli, Kota, Pratapgarh, SawaiMadhopur,Rajsamand, Tonk and Udaipur over a period of six years.
For implementation of 'RRLP' project, an independent society has been setup namely "Rajasthan Grameen Aajeevika Vikas Parishad" which providesoverall direction to the project. The society has a three tier structure underGoverning Council and Empowered Committee and is headed by a StateMission Director. The program management units have been set up atthree levels i.e. State, District and PFT level. The State ProjectManagement Unit (SPMU) has the responsibility for management andimplementation of mission strategies. The District Project ManagementUnit (DPMU) is responsible for the coordination, managing, supervisingand supporting the project implementation. The PFT are the primaryimplementation Unit within the overall project structure.
1.3 BRIEF BACKGROUND OF THE PROJECT
Project Name : Rajasthan Rural Livelihood Project (RRLP)
Project Period : Project Preparation Facility: 8th October2009 - 31t March 2011
1hf
Management Letter ofRRLP Project JLN US & COFor the year 2014-15 CHAR TERED ACCOUNTANTS
Amount of Financing : 106,700,000.00(expressed in SDR)
1.4 OBJECTIVES OF THE PROJECT
The objective of Rajasthan Rural Livelihood Project (RRLP) is to enhancethe economic opportunities, access to basic amenities and participation incommunity decision making for the poor, with a focus on women andmarginalized groups in 18 targeted districts of Rajasthan. The objective isto be achieved through support under five broad components as detailedunder:
(i) Institution Building and Social Empowerment
The objective of this component is to help the poor mobilizethemselves into Self Help Groups (SGHs) and gradually developtheir own capacity to initiate and expand sustainable livelihoodactivities.
(ii) Community Investment Support
The objective of this component is to support asset creation of SHGsand their federations and identify and support innovativeapproaches to improve the livelihood of the rural poor.
(iii) Skills Development and Employment Promotion
The objective of this component is to support beneficiaries tocapture new employment opportunities through the establishmentof a structured mechanism for skill development and job creation.
(iv) Climate Change Adaptation
The objective of this component is to develop and implementdrought adaptation mechanisms and institutional models, at thestate, district, and local level, for a more effective delivery ofassistance to drought-affected communities through improvedcoordination and leveraging programs, currently delivered by theGovernment of Rajasthan.
(v) Project Implementation Support.
2
Management Letter ofRRLP Project JLN US & CO
For the year 2014-15 CHAR TERED ACCOUNTANTS
1.5 FUNDING MODALITIES
The flow of funds is depicted through a flow chart as given below:
InternationalDevelopment Association
Government ofIndia
Government ofRajasthan.
RGAVP
3CharteredAccountants *
3
Management Letter ofRRLP Project JLN US & COFor the year 2014-15 CHARTERED ACCOUNTANTS
SECTION - II
2.1 SCOPE OF AUDIT
4 To ensure that World Bank receives adequate, independent,professional audit assurance that the proceeds of the credit wereused for the purposes intended that the PFS are free from materialmisstatement, and the terms of the legal agreements were compliedwith in all material respects.
4 The key objectives of the Project's external audit are to give anopinion whether:
* the PFS give a true and fair view of the financial position ofthe Project at the end of the period under audit, and of thesources and applications (including expenditure) of projectfunds for that period;
* the Project funds were utilized for the purposes for whichthey were provided;
* expenditures are eligible for financing under the Project andthese were exclusively financed through the Project funds andno other sources of funds have been received by RRLP forincurring these expenditures;
* expenditure reported in the Interim Unaudited FinancialReports (IUFR) are in agreement with the books of accountand the IUFRs can be relied upon to support applications forwithdrawal of Credit, and adequate documentation has beenmaintained to support these claims;
* Procurement has been carried by RRLP in line with the agreedprocedures as detailed in the Project legal agreements andthe Procurement Manual; and
* The Project has an adequate internal control system(including its continuing implementation and effectiveness)and adheres to the provisions of the project legalagreements, the Financial Management, Procurement andOperations Manual in all material aspects.
4 The Project's books of accounts provides the basis for preparation ofthe PFS and are established to reflect the financial transactions inrespect of the project as maintained by the project implementingagency, RGAVP at the State Project Management Unit (SPMU),District Project Management Units (DPMU) and Project FacilitationTeams (PFT).
4 The audit has been carried out in accordance with the Standards ofAuditing issued by the Institute of Chartered Accountants of India(ICAI). Accordingly we had considered the materiality when
4
Management Letter ofRRLP Project JLN US & COFor the year 2014-15 CHARTERED ACCOUNTANTS
planning and performing the audit to reduce the risk to anacceptable level that is consistent with the objectives of the audit.While the primary responsibility for the prevention and detection offraud and error or ensuring that the project funds are used forpurposes as required in the legal agreements, rests with both thosecharged with governance and the management of RGAVP, inplanning and performing the audit procedures and evaluating andreporting the results thereof to reduce the audit risk to anacceptably low level, we had considered the risks of materialmisstatements in the financial statements resulting from fraud anderror, as required by Standard on Auditing 240: The Auditor'sResponsibilities to consider Fraud and Error in an Audit of FinancialStatements issued by the ICAL
Expenditure is incurred against the funds released by theGovernment of Rajasthan, which is received from the World Bankthrough Government of India covering the Project cost. A quarterlyInterim Unaudited Financial Report (IUFR) based on actual amountsspent under various interventions is sent to Government of Indiaand the World Bank.
&1 The scope of the audit covers such applied tests of accountingrecords, internal checks and control and other necessary audit ofthe accounts as per general principles and standard of audits of theInstitute of Chartered Accountant of India (ICAI). While conductingthe Audit, attention was given to the following:
* Funds have been used in accordance with the condition of therelevant financial norms and financial regulations with dueattention to economy and efficiency, and only for the purposefor which the financing was provided.
* Generally accepted accounting principles are followed by allaccounting centers under RRLP in a consistent manner.
Goods, works and services financed have been procured inaccordance with relevant provisions of the procurementprocedure prescribed for the purpose. Proper documents,namely, purchase orders, tender documents, invoices,vouchers, receipts, pay bills, TA bills etc. are maintained andlinked to the transactions and retained till the end of theproject.
* All necessary supporting documents, records and accountshave been kept in respect of all project transactions reportedthrough the IUFR. Clear linkages exist between books ofaccounts and reports presented to the Government ofRajasthan and the World Bank.
The expenditures claimed through IUFRs are eligible withinthe legal agreements and the extent to which the IUFRs canbe relied upon as a basis for reimbursement. Where ineligibleexpenditures were identified as having been included in
s5 -~Charbm~d 0
SA=cuntaWts-
Management Letter ofRRLP Project JLN US & COFor the year 2014-15 CHAR TERED ACCOUNTANTS
withdrawal applications and reimbursed against, these havebeen specifically reported by us.
* Expenditure incurred under RRLP project is strictly inaccordance with the financial norms or any other clarificationsissued from time to time.
* An assessment of the adequacy of the project financialmanagement systems, including internal controls includingthe aspects such as adequacy and effectiveness ofaccounting, financial and operational controls, and any needfor revision; level of compliance with established policies,plans and procedures; reliability of accounting systems, dataand financial reports; physical verification and reconciliationprocedures; methods of remedying weak control or creatingcontrols in areas in where they are lacking.
* Separate agency was appointed to conduct the internal auditof RRLP project under the defined terms of reference. Theinternal audit reports to the extent made available werereviewed by us however the compliances there against havenot been furnished and also these reports were not reviewedappropriately by the Project management/ committee asstipulated in Finance manual. This has been appropriatelyreported by us in the Management Letter.
* The reconciliation of Bank Statements and review and followup of old outstanding/unusual entries was undertaken by us.
* Status of audit compliance of previous audit objections raisedwas verified and the observations still persisting have beenincluded by us under Action Taken Report section, which hasbeen prepared on exceptional reporting principles.
2.2 Limitations of Audit
Limitations of 'JLN US & CO.' in carrying out the assignment as per scopeof work are as under:
4A 'JLN US & CO.' has restricted the scope of work to 'Terms ofReference' only.
'JLN US & CO.' has undertaken the audit in accordance withgenerally auditing standards, guidelines issued by Institute ofChartered Accountants of India.
In performing review and verification, 'JLN US & CO.' has reliedentirely on:
* Financial and expenditure report/ details provided byManagement. S
6
Management Letter ofRRLP Project JLN US & COFor the year 2014-15 CHARTERED ACCOUNTANTS
* Financial information provided by the concerned projectofficials.
* Other information, schedules, reports and explanations asgiven to us during and in connection with our audit.
* Report includes comments on those accounting issues/accounting policies, which are material and are not inaccordance with the applicable Generally Accepted AccountingPrinciples (GAAP) generally acceptable in India.
* 'JLN US & CO.' has assumed genuineness of all thedocuments and signatures thereon as if they were originalsand also that the copies confirm to the originals.
* Transactions and events which are not recorded and whichwere not disclosed to 'JLN US & CO.' may not have beenidentified in the procedure.
Q& The working papers prepared in conjunction with the work are theproperty of the firm, constitute confidential and proprietaryinformation and will be retained by 'JLN US & CO.' in accordancewith Firm's internal policies and procedures.
Ik 'JLN US & CO.' has no responsibility to update the report for eventsand circumstances occurring after the date of report.
li The draft observations for each DPMUs and SPMU covered by uswas circulated to the concerned office/s against which the responseto the extent furnished have been considered by us andincorporated in the management letter against each observations.In case response has not been furnished then the said fact has beenreported against each observation in the Management Letter.
This report is for the year 2014-15 and is confidential being for useonly to which it is issued. It must not be quoted, cited, copied,disclosed or circulated, or referred to in correspondence ordiscussion with any other person or made public except to a personto whom it is issued.
7
Management Letter of RRLP Project JLN US & CO.
For the year 2o4-i5 Chartered Accountants
SECTION - III
Executive Summary of Observations/ Recommendations
Risk S. N. Observations/ Recomnmendations Para Reference ofManagement Letter
High 1 a) Non-compliance of provisions of Tax deducted at Source (TDS) was observed due A.2.1 , A.2.2, A.2.3 ,to non/ short deposit and non/ short deduction of TDS of Rs.2,08,437/-, A.2.4, A.2.5, A.2.6
On page 12-15b) Delay in deposit of TDS of Rs. 4,63,162/- .
c) Non-availability of TDS return filed in some cases and late/ incorrect filing of TDSreturns, which attracts interest and penal provisions under Income Tax Act, 1961.
2 1) Amount Deducted but not deposited or short deposited of statutory dues like A.3.1 on page no. 16-GPF/ ESI etc.of Rs. 73,516/- & 900/- respectively, resulting in non-compliance of 17statutory dues.
2) Salary deduction is pending of Rs. 13,930/- , resulting in non-compliance ofstatutory dues.
3 We have observed that Cost of Rs. 2,38,47,036/- was incurred at few districts A.11.3 page no 31where tranche was issued Rs. 5,85,000/- only
4 Following discrepancies were observed in respect of Utthan Sansthans (CDOs): A.14.3 page no 35-36A.8 page no 24-29
* Compliance of provisions/ criteria stipulated in Community Operational Manual(COM) is strictly ensured prior to release of Tranche and accountability ofconcerned officials be fixed.
* Funds are disbursed to SHGs only after formation of Internal Committee andagreement be entered with SHGs prior to release of Tranche.
* Non-receipt of Utilization certification from SHGs for utilization of Tranche-Ireleased.
* Grading of SHGs was done incorrectly by CDO, which was not verified byDPMU/ PFT in various districts.
* Non follow-up of laid down criteria for Co-opted SHGs.
8 UAccon.
Management Letter of RRLP Project JLN LIS & Co.
For the year 2oi4-i5 Chartered Accountants
* Non-holding of prescribed no. of meetings by SHGs prior to release of Tranche.* Non-obtaining of signature of bookkeeper in form 23(ii)A due to which
availability of bookkeeper at SHG was not ensured.* Tranche be released only after ensuring/ proper verification of requisite details
and documents required as per Community Operational Manual (COM).* Delay Disbursement of Tranche - I even after lapse of substantial time period
from the formation of SHG by DPMU. ( Annexure E)* Delay Disbursement of Tranche - II even after lapse of substantial time period
from the formation of SHG by DPMU. ( Annexure F)* Non disbursement of Tranche even after lapse of substantial time period from
the formation of SHG by DPMU. ( Annexure G)* Non compliance with the guidelines of the manual and 'Panchsutra'.
( Annexure H)* Monitoring mechanism be put in place to ensure that funds given to SHGs are
utilized for the purpose as stipulated in the agreement.
Medium 1 Following discrepancies were observed in respect of fixed assets held for the A.1.1, A.1.2, A.1.3project: page no 11-12
* Summary of fixed assets register was not drawn at the year-end due to whichits balance could not be reconciled with 'Tally' balance.
* Physical verification of assets of Rs 36,76,583/- at listed locations was notcarried out during the year 2014-15 or subsequently.
* A laptop issued to an employee has not been returned even when he wastransferred.
2 Following discrepancies were observed in respect of advance given:- A.4.1, A4.2 page no17-18
* Non recovery of interest on advances given to staff resulting in non complianceof HR manual.
* Other Advances of Rs. 2,11,80,000/- was given without provision of expensesfor the year.
3 Following discrepancies were observed in respect of procurement:- L 9A.12 page 33
9 0
Management Letter of RPRLP Project JLN IS & Co.For the year 2o4-i5 Chartered Accountants
* Procurement Procedure was not followed properly, Application was found onsimple Paper instead of Letterhead.
* Contact No. & Address was missing in few applications.* Rs. 2,21,640/- was paid for vehicle hiring without quotations.
4 Rs 71,850/- Expenditure related to NRLM paid by RRLP. A.9.1 on page no.29
5 TDS of Rs. 5,87,112/- was deducted on interest income received from banks, Due to A.2.7 on page no.16non providing of Exemption Certificate to the bank.
6 Excess payment of Rs.7943/- made in contravention of agreement A.5.2 on page no.207 General observation found in various DPMU. A.15 on page no.37
Low 1 Following discrepancies were observed in respect of vehicle hiring :- A.13 page no.33-34
* Supporting Bills for vehicle hiring not available.* Rs. 18092/- excess paid for vehicle hiring* Log book was not updated and verified by authorized person.
2 System of processing of vouchers prior to accounting be strengthened in view of A.5 page no 19-20following:
* No proper supporting bills were available for Rs. 3,52,953/-* Rs 5,29,944/- paid to international horticulture innovation and training centre
but supporting bills were not available.
3 Following discrepancies were observed in respect of attendance, leave records and A.11.2 page no 30salary paid to the project staff / Contractual Staff:
* Non-updating of leave register and non-availability of leave applications.* In or Out Time not mention in attendance register.* Attendance Register not maintained properly.
Accou10.
10
Management Letter of RRLP Project JLN US & CO.
For the year 2ov4-i5 Chartered Accountants
MANAGAMENT LETTER OF RAJASTHAN GRAMEEN AAJEEVIKA VIKAS PARISHAD (RGAVP)FOR RAJASTHAN RURAL LIVELIHOOD PROJECT (RRLP) FOR THE YEAR 2014-15
S. No. Observations Risk Recommendation
A OBSERVATIONS COMMON TO DPMUs and SPMU
A.1 FIXED ASSETS
A.1.1 1) Fixed Assets Register (FAR) is maintained manually. However, the summary of Med 1) Summary of fixed assetsFAR is not drawn to reconcile the assets with book (Tally) due to which all the ium register be drawn at the yearassets are recorded correctly in FAR could not be verified, end to reconcile its balance
with 'Tally'.2) Depreciation is not charged for the year 2014-15. 2) Depreciation should be
charged.
A.1.2 Fixed assets of Rs. 36.76/- lacs out of total Fixed Assets of Rs. 124.64/- lacs were Med Physical verification of assetsheld at following locations as on 31.03.2015. However, the physical verification of ium should be carried out yearlyassets was not carried out during year 2014-15 or subsequently thus assets were as per policy.not verified.
S.No. Location Value of assets as at31.03.2015 (Rs.)
A.1.3 A Laptop issued to Mr. N.K.Bansal DPM on 17-08-12 was not submitted. He was Med Laptop should be recovered astransferred in the month of September 2015. lum soon as possible.
Chartere OAccountants
Management Letter of RRLP Project JLN US & CO.For the year 2014-15 Chartered Accountants
A.1.4 Fixed Assets or Stock Register were found without signature of DPM at bhilwara. Med Authorized Person should signiurn the stock / Fixed Assets
Register.A.2 TAX DEDUCTED AT SOURCE (TDS)
A.2.1 NON DEDUCTION AND NON DEPOSIT OF TDS:- High TDS of Rs.49,564/- should be
LEDGERdeposited along with interest
NAME SECTION LEDE DATE AMOUNT TDS to ensure legal complianceNAME AMOUNTand its recovery be made
BHILWARA 194C PRINT-O-PRINT Mar-15 61,000.00 1,220.00 from the respective vendor.
A.2.6 VARIATION IN TDS AMOUNT AS PER CHALLANS AND RETURN :- high TDS RETURN be revised anddue care should be taken in
Variation in amount of TDS as per challans and amount reported in TDS return was observed as its preparation.detailed below:-
TDS AS PER TDS RETURNDPMU FORM NO. QUARTER CHALLAN (RS.)
(RS.)
24 Q ( 24,000.00 25,000.00
24 Q II 26,000.00 32,000.00
24 Q 1II 31,000.00 32,000.00
24 Q IV 30,000.00 32,100.00Sawai Madhopur
26 Q I 3,362.00 -
26 Q II 2,494.00 5,256.00
26 Q III 2,440.00 4,541.00
26 Q IV 3,022.00 3,022.00 7%,
15 4 Accountants *
Management Letter of RRLP Project JLN US & CO.For the year 2oz5-15 Chartered Accountants
A.2.7 TDS ON INCOME :- * It is advisable tointimate to all DPMU for
We have found in following districts that TDS was deducted on interest income submitting Exemptionreceived from banks, Due to non providing of Exemption Certificate to the bank. Certificate to bank for
non deducting TDS onS.NO. DISTRICT TDS AMOUNT DEDUCTED BY BANK interest received.
1 DHOLPUR Rs. 84,801/-2 KOTA Rs. 12,487/-
3 SPMU Rs. 4,46,059/-
4 BANSWARA Rs. 28,339/-
5 DUNGERPUR Rs. 15,426/-
Total Rs.5,87,112/-A.3 STATUTORY DUE OF SALARY DEDUCTION highA.3.1 GPF & SI DEDUCTED BUT NOT DEPOSIT :- high Dues against salary
deductions be deposited with,We have observed that GPF of Rs. 40,216/- and SI of Rs.33,300/- were deducted the concerned authority alongbut not deposited at following districts -with interest penalty to
ensure legal compliance andName Month GPF SI District in future statutory dues
du*At UDAIPUR DPMUd amount deducted Rs 4400/- but deposited only Rs.350e e
16 intrehatr/ penatAccountants.
Management Letter of RRLP Project JLN US & Co.For the year 2oq-15
Chartered Accountants
therefore short deposited IS Rs. 900/-.
A.3.2 SALARY DEDUCTION OF EMPLOYEES. high Outstanding Amount OfSalary Deduction Should BeAt SAWAI MADHOPUR DPMU, salary deduction of Rs 13,930/- outstanding as on Deposit At Earliest In01st April 2014 was not deposited during the year. Respective Department ForThe Benefit Of Employees.A.4 ADVANCES-
A.4.1 ADVACES TO STAFF Med Advance should be refunded/ium adjusted with interest of RsAs per clause no 5.22 of HR manual, if advance given to staff is not adjusted within 8,921/- within stipulated time1 month then interest @18% p.a. is to be charged from concerned employee on period to facilitate itsadvance amount. On verification it was observed that advance given to staff was adjustment timely.not adjusted within 1 month even then interest was not charged from employees.
DELAY INTEREST TODISTRICTS NAME ADV. DATE ADJUST AMOUNT IN BEDATE DAYS
Management Letter of RRLP Project JLN US & Co.For the year 204.-t5 Chartered Accountants
A.4.2 OTHER ADVACES:- med 1) Provision for expenseurn should be made for advances
We have observed that advances of Rs. 2,11,80,000/- was given repetitively times, of Rs. Rs 2,11,80,000/-.but not adjusted against any expenses. it seems to be blockage of fund at followingdistricts :- 2) Progress report required to
be verified by higherDISTRICTS Period or Name Amount Observation authority.
Date
Sectoral Fund was givenDHOLPUR Apni Saheli to Apni Saheli Producer
8-12-14 Producer Co.Ltd. 5,00,000.00 to whi wsotDholpur Co.Ltd which was not
used still.Resource Agency - Outstanding as onSPMU 02-05-14 Ananta Maha 22,50,000.00 31/03/2015
Samakhya
Resource Agency - Outstanding as onSPMU 02-05-14 Godawari 22,50,000.00 31/03/2015
Resource Agency - Outstanding as onSPMU 30-3-15 Godawari 18,75,000.00
MahaSamakhya 31/03/2015TOTAL
2,11,80,000.00
18 fltants -
Management Letter of RRLP Project JLN US & Co.For the year 2o4-i5 chartered Accountants
A.5 PAYMENT MADE WITHOUT INVOICES/VOUCHER :- Low System of processing ofvouchers should be
We have observed that Vouchers were not properly maintained & serially arranged. strengthened and paymentSome vouchers were not stamped as "Paid & Cancelled". In few cases, Vouchers should be released on receiptfound without proper supporting bills. Authority signature was not found on some of proper invoice from thevouchers. party.
Following Vouchers/supporting/bills were not found.
DISTRICT V.NO/DATE NAME AMOUNT OBSERVATION
Musan Baba Payments made to 10608/2014-15 Mahila Utthan SHG of Rs 1500 each but
Sansthan supporting bills were notavailable for 3 SHG.
BHILWARA Bharunath64/Mar-14 Puh 34,633.00 Not Found in File
PurohitBHILWARA 68/April-14 Bharunath 45,178.00 Not Found in File
Purohit
BHILWARA 69/2014-15 Pushpa Devi 26,960.00 Not Found in File
CHURU 325/2014-15 Pawan Kumar 72,087.00 Appropriate TA bill werenot found
CHURU 354/2014-15 25,600.00 Appropriate TA bill werenot found
CHURU Feb-13 to Sep-14 Sumita 7134500 Appropriate TA bill wereGodana not found
International
SPMU 886/19-12-14 Horticulture 5,29,944.00 Appropriate supportingInnovation and was not found.Training centre
BANSWARA 25/18-04-14 Expenses 9,000.00 No Proper supportingwere found
For general expenses like
422/20-01-15 General Exp. 14,570.00 auto rickshaw, water,food expenses etc. are
were not proper A nN
19 -j CharteredAccountants
Management Letter of RRLP Project JLN US & CO.
For the year 2ol-15 Chartered Accountants
supported.
PRATAPGARH 111/24-12-14 Food Expenses 5,400.00 Supporting was notprovided.
69 to 77/14- The vouchers have notPRATAPGARH 15 Expenses 26,763.00 been entered in the cash
book
UDAIPUR 468/24-12-14 Expenses 6,417.00 Authority signature wasU not sing on it.
TOTAL 8,82,897/-
A.5.2 EXCESS AMOUNT PAID IN CONTRAVENTION OF AGREEMENT med Amount of Rs. 7943.38/-ium should be recoverable & Bills
Variation in rate as per agreement and as per invoice was observed at SPMU should be passed strictly as
leading to excess payment the year 14-15 to "Gupta contractor, jaipur" for the per agreement rate.
contractual staffFollowing list shows that excess amount paid by SPMU on these bills.
AMOUNT ELIGIBLE EXTRA AMOUNTPAID AMOUNT PAID
1 April-14 1134.00 8.10 1125.90
2 May-14 1134.00 8.10 1125.90
3 June-14 1350.00 8.10 1341.90
4 July-14 1318.00 7.78 1310.23
5 Aug-14 1350.00 8.10 1341.90
6 Sept-14 1350.00 8.10 1341.90
7 Oct-14 67.50 8.10 59.40
8 Nov-14 67.50 8.10 59.40
9 Dec-14 66.80 7.80 59.00
10 3an-15 67.50 8.10 59.40
11 Feb-15 67.50 8.10 59.40
12 Mar-15 65.75 6.69 59.06
Total 8038.55 95.17 7943.38
20 Accouna -
Management Letter of RRLP Project JLN IS & COa
For the year2oi4-5 Chartered Accountants
A.6 ACCOUNTING IN SYSTEM (TALLY) Low
A.6.1 We were not found cost center of "salary deduction" like GPF, SI, INCOME TAX, Cost centers should beRPMF, LIC etc. At Dholpur DPMU, so we could not reconciled actual deduction & created and considered whendeposit with tally balances for each cost center wise. passing entries in tally at all
DPMU.A.6.2 We have observed that detai! narration was not written in Accounting System (Tally) Detailed narration should be
at following districts provided in tally, so properunderstanding can be done.
A.6.3 1) SHORTLY ACCOUNTED OF GPF, LIC & SI IN SYSTEM (TALLY) Cost center should be
We have observed that following statutory deduction was short accounted in system c tcnt ing(Tally) at Tonk District :ou ect e -ing
S.No. Ledger Short payment Accounted Prysem ally).under the cost center of"salary Deduction head
1 GPF 4804
*AProprtaccuntincosdrigcs
Management Letter of RRLP Project JLN IS & CO.For the year 204-15 Chartered Accountants
2) EXCESS ACCOUNTED OF INCOME TAX, RPMF SYSTEM (TALLY) :-
We have observed that following statutory deduction were excess accounted insystem (Tally) at Tonk District :-
S.No. Ledger Excess Accounted under thecost center of "salary
Deduction head1 INCOME TAX 10800.002 RPMF 11304.00
TOTAL 22104.00
A.7 CASH BOOK :- low
A.7.1 DISCREPENCIES IN CASH BOOK:-* Signature of authorized
We have observed that some Discrepancies found in CASH BOOK at Various districts person should berequired.
DISTRICT OBSERVATION * Instead of cutting &NAME overwriting, correction
BANSWARA (1)Payment made to Rajesh as per Bank Passbook amount entry should be passed.to Rs. 2,500/- vide Cheque No. 000477 dated 11-07-2014 but entered in cash book as 25,000/- . It should be * Cash book should berectified, maintained properly &
regular basis.(2) Double payment of Rs. 2,000/- made to Vikas Utthan
A7.3 NO SIGNATURE OF AUTHORISED PERSON WAS FOUND IN CASH BOOK:- Signature of authorizedperson should beWe have observed that no signature of authorized person was found in cash book at required.
following Districts
S.No. Name of District Cash book should be1 TONK maintained properly ®ular basis.2 CHITTORGARH3 DUNGERPUR4 PRATAPGADH
A.8 CDO/VOJUTTAN SANSTHAN &SHG LEVEL high
(1)Pradhan (NGO) should useWe have observed that some Discrepancies found in CDO & SHG Level at Various number of books as per thedistricts *proposed guidelines issued by
RGAVP.DISTRICTS ObservationDHOLPUR (1)Discrepancy found in books of Accounts maintained between (2) Proper training of book
"Pradhan (Partnership Modal) and RRLP (Self Develop SHG)". keepers of VO & SHG isWe_hve_bseved_hatsomrequired so that calculation of
NO.DD OF interest & books of accountsBOSNO. OFMAINTAINE BOOKS TO are prepared correctly.
Name MAINTAINE BESHORT BOOKSName DYBEDMAINTAINE MAINTAINED (3) All documents like talapatPRADHAN should be maintained at
(NGO) cluster offices.VO 3 14 11
SHG 2 7 5 - (4) Collect utilizationcertificate from SHG before
Due to this practice, uniformity cannot be formed in the issuing tranche 2.whole RRLP Project.
whol RRL Proect.(5) Grading system should beDAUSA During the Audit procedure at CDO of "Girraj Dharn" we found followed strictly. Tranche 2
______ _________follwinobsrvaion should be issued after properfollowing observations :-v
24 '~J C 'atfrpCrnopse g e
keeer ofV-SGi
should beAmaintained.a
Management Letter of RRLP Project JLN US & CO.
For the year 2oLp-5 Chartered Accountants
verification.(i) Tranche - 2ndr Amount of Rs.1,10,000/- recovered by CDO
from SHG in 55 installments of Rs. 2,500/- each at 12% per (6) Invoices & bills supportingannum. As per our view (calculated in Annexure - A) there vouchers should be seriallyis a shortfall of recovery of Rs. 8,007/- at the end of the 5 5th numbered & kept in fileinstallments, always at SHG/ VO premises.
There should be an installment of Rs. 2,610/- per month (7) Amount received from(calculated in Annexure - B) for 55 months, member of SHG in meeting
should be deposited in their(ii) One of SHG called "Bajrang Bali" decided to charged rate of bank account as early as
interest 24% per annum from fund given to members. One possible.member of SHG taken fund of Rs. 30,000/- and they chargedinstallment of Rs. 1665/- for 20 months. As per our view(calculated in Annexure - C)There is a shortfall of recovery of Rs. 4,123/- at the end of the2 0 th installments.
There should be an installment of Rs. 1,835/- per month(calculated in Annexure - D) for 20 months.
(iii) One of SHG called "Shanker Bhagwan" Sainthal Village BlockBapi- found differences of rs. 2,500/- in cash book. On dated19-02-15 the balance of cash in hand should be Rs. 2,766/-but we found only Rs. 266/-.
(iv) In "Bajrang Bali SHG" Sainthal Village Block Bapi Loan registermaintained by "Girraj Dharn CDO", signature of authorizedperson was not found in register.
Lawana Cluster office at Dausa block we found some discrepancieswhich are as follows:-
(i) Copy of Trial balance (Talpat) was not received regularly ontime ,
5 Ctartered
25 ooutn'
Management Letter of RRLP Project JLN US & CO.For the year 2o5e-5 Chartered Accountants
(ii) In few months, we have found that incomplete trial balance(talpat) received from CDO.
(iii) No copy of trial balance (Talpat) kept as record at clusteroffice.
SWAI- (i) None receipts of utilizations certificates from SHG for TrancheMADHOPU 1 released.R
(ii) No grading system followed for releasing Tranche.
PRATAPGA During Field visit at BLOCK OFFICE -AROND we have observed thatRH
eStock Register is not properly maintained & updated.
*Monthly progress reports of SHG's are not signed by BookKeeper.
BHILWARA 1) During our Field Visit on Dated 15-11-15 at SHG JIVAN JYOTIat "Mod Ka Nimbahera is a Village in Asind Tehsil in BhilwaraDistrict" we found following observations
(i) Dated 12/06/15, Rs. 1,877/- inauguration expense wasincurred but no bill found as a supporting.
(ii) Dated 12/06/15, Rs. 1,173/- Tea & Coffee expense wereincurred but no bill found as a supporting.
(iii) Rent of Rs. 500/- per month Paid but no agreement orapplication was found.
(iv) In the month of August 2015, as per cash book, 2,780/-was deposited in bank, but as per Bank Statementamount was not deposited.
(v) In cash book , opening balance of September 2015 notmatch with closing balance of august 2015
Chartere26 Acounta
Management Letter of RRLP Project JLN US & CO.For the year 20-15 Chartered Accountants
2) During our Field Visit on Dated 15-11-15 at VO RADHEKRISHNA at "Tiloli Village, Asind Tehsil, Bhilwara District" wefound following observations :-
(i) Dated 17/09/15, as per cash book, Rs. 34,850/- wasdeposited in bank, but as per pass book amount wasdeposited 34,350/- only. Short deposit of Rs.500/- .
(ii) Dated 15/10/15, as per cash book, Rs. 1,04,680/- wasdeposited in bank, but as per pass book amount wasdeposited 98,000/- only. Short deposit of Rs.6,680/- .
BIKANER 1) During our Field Visit on Dated 29-11-15 at SHG GAUS PAK at" GAJNER Village, KOLAYAT BLOCK, BIKANER District" we foundfollowing observations :-
(i) Dated 24/09/13, as per cash book, Rs. 2,230/- wasdeposited in bank, but as per pass book amount wasdeposited 2,100/- only. Short deposit of Rs.130/- .
(ii) We have observed that huge amount of loan given to SMT.SAMIR BANO in repetitive times.
S.No. Date Amount1 09/05/2014 70,000/-2 24/08/2014 20,000/-3 13/05/2015 1,20,000/-
TOTAL 2,10,000/-
2) During our Field Visit on Dated 29-11-15 at VO NARI SAKTIUTTAN SANTHAN at " GAJNER Village, KOLAYAT BLOCK, BIKANERDistrict" we found following observations :4
27 Accountants *
Management Letter of RRLP Project JLN US & CO.For the year 2o.oi.5 CharteredAccountants
(i) We have found that one SHG named "AARTI SHG" issuedTranche - 1, which was already a defunct SHG.
(ii) We have found that as per cash book of "NARI SAKTIUTTAN SANTHAN", dated 05/05/2015 & 6/05/2015payment of Rs. 15000/- each made to 3 SHG named JAISHANKAR SHG, SHOBHA SHG, JAI SANTOSHI MArelated to other CDO.
(iii) During our Field Visit on Dated 29-11-15 , Cash book of"NARI SAKTI UTTAN SANTHAN" was updated upto06/05/2015 only.
(iv) In the cash book of "NARI SAKTI UTTAN SANTHAN"We have observed that following Installment & Interestreceived from various SHG but name of SHG was notwritten.
Management Letter of RRLP Project JLN LIS & Co.For the year 2ov4-i5 CharteredAccountants
16 05/02/2015 2,483.0017 02/03/2015 4,370.00
TOTAL 36,990.00
A.9 TRANSACTION BETWEEN RRLP OR NRLM /NRLP :-
A.9.1 EXPENSE INCURRED BY RRLP WHICH IS RELATED TO NRLM :- med Expense of one project shouldiur be Paid by that project only.
At Bhilwara DPMU, Rs. 71,850/- paid for interest subvention under the head of"advance given to other fund " related to NRLM ,but paid by RRLP.
S. NO. DATE AMOUNT1 26/05/14 16,350.002 26/05/14 2,700.003 05/06/14 7,950.004 25/06/14 20,550.005 25/06/14 24,300.00
TOTAL 71,850.00
However amount recovered from NRLM on 22/7/14 Rs. 47550/- & 24300/-.
A.9.2 LOAN GIVEN BY NRLM TO RRLP :- Inter transfer of fund fromone project to other project
At Churu DPMU, without any permission, Rs. 5,00,000/- dated 11/11/2014 loan not allowed.given to RRLP from NRLM. However amount recovered from RRLP on 19/11/14.
A.10 BOOKS OF ACCOUNTS NOT MATCH WITH MIS SYSTEM :- Proper updation should berequired in system to meet
We have observed that Balance of Accounts like Cash in Hand, Loan Account etc. of out the differences betweenVO/SHG as per MIS system not match with Their books of accounts (Talpat) at MIS system & books ofvarious districts :- accounts.
Chartered CO
29tants.
Management Letter of RRLP Project JLN LIS & CO.For the year 2oi4-15 Chartered Accountants
S.No. Name of District1 Dausa2 Tonk3 Churu
A.11 OTHER OBSERVATION :-
Rent should be paid as perA.11.1 OFFICE RENT:- agreement and excess
amount should be recovered.At kota DPMU, We have observed that rent paid Rs 2500/- Per month which wasbeyond ceiling limit of Rs 2200/- P.M.
low (1) Attendance registerA.11.2 ATTENDANCE REGISTER :- should be maintained properly
at all DPMU,1) Attendance register was not maintained properly at Bikaner DPMU.
(2) In or out time should be2) In or out time was not mentioned at Bikaner DPMU. recorded in attendance
register.3) Signature & in or out time was not mention for contractual staff which result100% present in few districts like :- (3) Payment should be made
after proper verification ofattendance register.
S.NO. NAME OF DISTRICT
1 DAUSA
2 DHOLPUR
3 CHURU
J Charted 0Accountants'
30
Management Letter of RRLP Project JLN US & CO.For the year 20z515 Chartered Accountants
A.11.3 SLOW PROGRESS IN PROJECT :- high Special attention on progressof project should be required.
We have observed that Cost of Rs. 2,38,47,036/- was incurred at followingdistricts where Tranche was issued Rs. 5,85,000/- only.
We have observed that Grant Received of Rs. 2.00 Crore, dated 29/08/2014 but notutilized Rs. 1.45 Crore upto 31/03/2015 at Bikaner DPMU.
A.11.4 ATTENDANCES AND LEAVE RECORDS :- e Attendance register shouldbe prepared properly.
We have observed that Attendance Register of employees are not properlymaintained at Churu & Tonk district:- * IN or OUT time should be
mention in register.* Non-submission of application for leaves.* In or out timing not sign in register. * Calculation of CL, PL and* Don't prepare the C.L, CCL and RH. Register separately for the purpose of medical leaves should be
calculating ceiling limit of Leaves. marked in register.* Did not disclose the medical leaves separately.* Not verified the register at closing of month by the head of authority. * Register should be signed* No proper information was maintained regarding field visit on real time by higher authority.
basis.
*1 INa or OU ieshudbmenioeinreiser
Management Letter of RRLP Project JLN IS & CO.For the year o1415
Chartered Accountants
A.11.5 (A) DIFFERENCE IN BALANCES :- 1) Rectification entries requireto be passed for differences in* We have observed opening balance differences as per tally or as per cash the opening balances &
book at following districts closing balances.
OPENING BALANCES BOB BANK BRKGB BANK BOB BANK 2) Entires in opening BRSAT BARAN AT BARAN AT TONK should be adjusted in the
AS PER TALLY 10,59,896.00 11,12,709.00 2,65,513.00 year.AS PER CASH BOOK 10,33,256.00 10,69,789.00 70,201.00
DIFFERENCES 26,640.00 42,920.00 1,95,312.00
* We have observed opening balance or closing balance differences as per passbook or as per cash book due to non providing BRS at Pratapgarh district -
DIFFERENCE IN BALANCES OPENING BALANCE CLOSING BALANCE.As per Cash Book 1865093.00/- 846976.00/-As per Pass Book 444312.00/- 530600.00/-
DIFFERENCE 1420781.00/- 316376.00/-
* Following entries were shown in BRS as on 01/04/2014 which was not clearedat the end of the year.
S.No. DATE CHEQUE NO. PARTICULAR AMOUNT1 31/03/2015 808176 TO SHREE 2400.002 31/03/2015 ----- AUTO SWEEP 160000.00
32
Management Letter of RRLP Project JLN US & CO.For the year 2o4-15 Chartered Accountants
A12 PROCUREMENT:- medium
* Payment made to M/s Mehta Travels of Rs. 2,54,184/- during the yearwithout calling any Quotations /Tender.
* We have observed that letter head, contact numbers and address of M/sShubham Computers & M/s Kumar Expert was missing on documents atbundi DPMU.
* We have observed that vehicle hiring Agreement was renewing to M/s KAMINIVYAS for the year 2014- 2015 without calling new tender at jhalawar DPMU.
A.13 VEHICLE HIRING EXPENSES & AGREEMENTS :- low (1)Expenditure for vehiclehiring should be paid as
During our verification at various districts, we have observed following discrepancies per agreement &in vehicle hiring expenses. excess paid amount
should be recovered.DISTRICT OBSERVATION
NAME (2)Proper procurementWe have observed that Payment of Rs.58,092/- made for vehicle Procedure should be
KOTA hiring in the month of July 2014 and August 2014. Ceiling limit carried out for callingwas Rs.40,000/-only. new tender after expiry
(1) Log sheet was not verified by the authorized person for of tender.payment made regarding bus service hired vide VoucherNo 73 & 74 Dated 17-06-2014 of Rs. 66,782/- (3)Log bk oul b
(2) Payment made to M/s Bana Tourist Point, but Log Sheet Signed by authorizedBANSWARA is not verified by the Authorized person. Voucher no. 416 person.
Dated 19-01-15.Dated 19-0 -15.(4) Paym ent of vehicle
(3) Log sheet and Bills of travelling were not available for Rs. hiring should be made21,124/- Voucher no. 469, Dated on 25-02-15. after proper verification
of invoices, whichshould be reconciled
33 tend er.
(3 Log bok h
Management Letter of RRLP Project JLN IS & CO.
For the year 2014-15 Chartered Accountants
from log book.(1) For following Vouchers, Log book was not signature by
A.14.1 Society for Elimination of Rural Poverty (SERP) High Compliances of terms ofcontract in respect of non-
Agreement for providing technical assistance and implementation support for Social submission of claim forMobilization, Institution Building & Capacity Building was entered with SERP. On reimbursement in prescribedverification following was observed: format and non-submissionof CA certificate confirming
a. Reimbursement of expenses was not claimed by SERP in the same format as per sho betensue.the cost estimate specified in the contract due to which the payment made toSERP cannot be compared with the cost estimates. Copy of PF challans should
be obtained to ensure legalb. SERP is to provide an audit certificate by the Chartered Accountants each year compliance. If required, a
confirming the actual expenditure charged under MOU. However, the same has clause should be added tonot been provided by SERP till date of our verification as on 26.12.2015. the contract.
c. Copy of PF challans is not taken from SERP to ensure PF compliance on salary Ce litale to mters ho
working for the project hence
these be obtained and placedd. To conduct joint review meetings once in three months for monitoring the on record and payment
process and assess the outcomes in Resource Blocks on the PRP and CRP processing be linked strictlystrategies. However, minutes of joint review meetings held, if any were not based on monthly reports.
beverified to us. e lega
c i If reuiedd
theunt cotat
Management Letter of RRLP Project JLN US & CO.For the year 2o4-15 Chartered Accountants
* Details should be updatede. A review committee is to be constituted at various levels to interact with SERP timely in Sakh Darpan so as
and SMD will be chairperson of the committee. However, the review committee to review progress andhas not been constituted. correlate work done by SERP.
f. Joint reviews by SMD of RGAVP and CEO of SERP on half yearly basis is to bedone. As informed, no such joint review meetings were held.
A.14.2 SRIJAN INFRATECH & DEVELOPMENT SERVICES PVT. LTD. (SIDS):- High * The listed documents shouldbe vital to monitor the
Agreement for supply of manpower required for the project was entered into with working for the project henceSIDS. On verification following was observed: these should be obtained and
placed on record and
a. As per TOR, SIDS is to submit interim report stating work plan for 1 year beylin si sduondetailing list of activities to be undertaken, outputs/ deliverables against listedactivities and delivery timeline and detail of staff that will work on the reports.assignment. However, said reports received, if any from SIDS was not furnished * Copy of PF challans shouldto us. be obtained to ensure legal
compliance.b. SIDS is to prepare quarterly progress reports and share it with RGAVP against
agreed work plan, which also not held on record. 0 Compliance of agreementshould be ensured.
c. Copy of PF challans is not taken from SIDS to ensure PF compliance on salarypaid to contractual staff.
d. As per agreement, deployment of personnel is to be done after properverification of 3 CVs of the candidate. As informed; the same practice has notbeen carried out for staff deployed at various DPMUs.
A.14.3 UTTHAN SANSTHAN (CDQs)
Tranche High * Compliance for issuingtranche should be
d As per Community Operational Manual (COM), Tranche -I should be issued on followed properly.the completion of 3 months from the date of formation of SHG. But in fewcases we found criteria were not fulfied at bhilwara DPMU Annexure - EM. UsS .19 Coinliance of criteria
35 ~ ~ ,j CharWmrdtn Ascuntahud b
Management Letter of RRLP Project JLN US & Co.For the year 2OV4-15 Chartered Accountants
stipulated in* As per Community Operational Manual (COM) , Tranche -II should be issued Community Operational
on the completion of 6 months from the date of formation of SHG. But in few manual should becases we found criteria were not fullfied at bhilwara DPMU (Annexure - F). strictly ensured for
release of Tranche.* We have found no tranche was issued in few cases of SHG at bhilwara DPMU,
(Annexure - G). * Funds should bedisbursed to SHGs only
* Non compliance with the guidelines of the manual and 'Panchsutra'. after the formation of(Annexure H) Internal Committee and
after entering into an* In case CDO is not in existence then funds are to be released through agreement with SHGs
'Internal Committee (IC)' consisting of representatives of SHGs and thus the prior to the release ofroles and responsibility of CDO is to be discharged by the said committee. Tranche.Committee is to sign an agreement with SHG and DPMU. However, Tranche-Iand Tranche-II was released to SHGs during the year 2014-15 without * Utilisation certificateentering into the agreement. should be received as
stipulated to ensure* The Sub (Audit) Committee is to be constituted with 3-5 members from EC in utilization of funds for
which 2 members should not be from same SHG. Sub-committee is to review the purpose asthe utilization of livelihood investment taken from Utthan Sansthan/ DPMU in stipulated in Priorityweekly meeting of SHG. The "Audit Committee" is to submit an Utilization PlanCertificate to IC to ensure that investment support has been utilized by rightperson for the cause as stipulated in Priority Plan. Tranche-I and Tranche-IIwas released through IC during the year 2014-15, however, utilizationcertificates were not received and thus were not held on record for ourverification.
36 ChaderedI) Accountants*
36
Management Letter of RRLP Project fLN US & Co.For the year 2OL-15 Chartered Accountants
A.15 GENERAL OBSERAVTION FOUND IN MAXIMUM DISTRICTS med For true and fairium Accounting practice, it is
* Time barred cheque was not cancelled after completion of 3 months advisable to cancel theimmediately. cheques after expiry of 3
months immediately or* Bank reconciliation not prepared on monthly basis. make reversed entry for
cancellation of cheque.* Books of account were not prepared properly at VO or SHGs level indulged BRS should be prepared
high level overwriting & cutting. on monthly basis..book of accounts should
* Books of account were not prepared on time at VO or SHGs level. During our be prepared properly &Field Visit on Dated 29-11-15 , Cash book of "NARI SAKTI UTTAN SANTHAN" regularly.was updated upto 06/05/2015 only. It is advisable to use
"SINGLE PAN NUMBER"* We have observed that no uniform system for using "PAN CARD NUMBER" of SPMU at all districts
was followed at districts. In bhilwara, we have found two Pan Card onerelated Rajasthan Gramin Ajivika Parishad (AABAR4250R) and other onerelated to BHILWARA, DPMU (ABCPN6649K).
u During the audit at the CDO and SHG level we have found that manymembers of SHG utilized the fund for their other use instead of proposedpurpose at the time of taking loan.
37 mnh basis.
*Abokofuccontashul
bepeae7poel
CALCULATION OF INTEREST BY CDO 'GIRRAJ DHARAN"ANNEXURE - A
Grand Total 316931 16262 83.03 2760 61.98 6182 27.37 23020 24.74 23853 61.23 12288 10.25 28446 89.75
u 51
ko 0
ACTION TAKEN REPORT FOR THE FINANCIAL YEAR 2013-14
Annexure1
Amounts not found eligible for financing under the credit agreement as per auditor or where supportings were notfound.
S.No. Para Amounts for
Remarks DPMU's SPMU's Reference Amount Current Status which paraof ML dropped
1 1) Supporting bills for vehiclehirirng expense of Baran,Dholpur, Swaimadhopur andSPMU are available & verified.
Vehicle hiring expenses Madhopur, Dausa, GM(Adm) A7 (21) Hence Para related to above 4,13,651Supporting Bills not available Dholpur, Kota, districts should be dropped for
Bhilwara Rs. 4,13,651/-.2) For remianing distrcitsTo be discussed and verified.
2 Vouchers were not found on Supporting bills were provided
record. nGM(Adm) A7 (21) 22,56,314 and verified. Hence Para 22,56,314should be dropped.
3 Payment made to an employee Supporting documents werefor which there is no evidence Rajsamand B.9.1 provided and verified. Hence 5,00,000on record to establish that he 5,00,000 Para should be dropped.has worked for the project.
4 Bills of medical expenses arerelated with the VEDANTA
Reimbursement to a project rltdwt h EAT
staff towards medical hospital which is approved bystfftoars edca Swa Mdhpu B10finance department for 1,70,592
treatment in contravention to Sawai Madhopur B.10 1,70,592 treatment outside therules which be recovered.tramnousdth state.hence para should be
dropped.
5 Bank statement or note sheetIncorrect charging of expenses FMTS B.11.15 were provided & verified. 80,000to the project. GM(F) 80,000 Hence Para should be
dropped.
52 5
6Remuneration of an employee we verified the same, hencewrongly booked from RRLP Dausa B.5.2 70,605 para should be dropped. 70,605funds instead of NRLM project.
7 Mobile reimbursement Supporting bills provided andexpenses for which Supporting _ GM(Adm) B.11.11(42) 1,940 verified. Hence para should 1,940Bills not available be dropped
TOTAL 38,19,394 34,93,102
Annexure 2Observations related to procurement
S.no. Amounts for
Remarks DPMU's Para Reference of ML Amount Current Status which paradropped
11) Multple quotations werereceived from different
Multiple Quotations for Churu, Udaipur, vendors with different phonepurchases were received from Dungarpur, Bundi, no. from the districts namelythe same vendor in different Baran, Tonk A.9.1 (ANNEX-C) Baran,Bundi, Churu,and Tonk. 2,01,320names for purchase of same Jhalawar, Bikaner, Hence para should be dropedasset at different DPMUs. Dholpur for Rs. 2,01,320/-.
2) For remaining districtsTo be discussed and verified.
2 (1) Proper procurmentprocedure was followed at the
Proper procurement procedures Bhilwara, dist.namely Bikaner and
not followed as quotations not Rajsamnd,Udaipur, sould e p rRinvited for purchase of various Dungarpur, Tonk, A.9.2 (ANNEX-D) 159305 57r522/Rs 5,79,522assets or services availed at Baran, Bundi. (2 w D aDifferent DPMUs. Bikaner, Dholpur (2)NK Bhlaran Dundi,pudapu
dholpur corrective action still_________________ _____________________to be taken _______
3 Procurements for which fileswere not furnished to the GM(Pracurment) A.9.3 31 To be discussed and verified.auditors for verification.should. 5
53
4
Cost comparison of purchase (1) Cost comparison was doneomarisno A9.5 Bansawara and verified, hence parabfrpvariou eplacesst dA9.6 Udaipur 5,300 should be dropped for bothbefore purchase of assetDstcs.Districts.
5Procurement of certain assets A9.7 Udaipurwas not proper as Quotationsreceived from different A9.8a
compnieswerenot ound A9.10companies were not found A.9.7, 9.8, 9.10 &9.11 To be discussed and verified.comparable, in improper format A 9.11& not authentic, still not GM(Pracurment)rejected.
6White Boards were purchasedExcess purchase of White Banswara B.1.4 as per order given by SPMU & 21,395boards without approval. 21,395 verified, hence para shouldbe dropped.
7 Non- comparison of ratesamongst DMPUs for variouscommon services availed toavail best economic rates as Dungarpur B.7.1 2969 To be discussed and verified.rate variations in bus hiring forCRP due to different basis wasobserved.
8 Assets were purchsed in excessof MRP. HP Laser Jet MFPPrinter was purchased for Rs.19,900/- against the MRP of A9.8 BaranRs. 16990/-. 6 Digital cameras A9.9 Tonkof Sony DSC were purchasedfrom Softline Computers @Rs.9,570/- against the MRP of Rs.7,900/-.
9Non- execution of agreementwith placement agencies for Bundi,Bhilwara & 7,11,029hiring of contractual staff & the Dungarpur 7,11,029payment has been made.
54
10Two rates are sanctioned by
Procurement of advertisement DIPR for procurement ofat rates higher that DIPR GM(Adm) B.11.12 Advertisement. Hence 11,03,526(government) publishede rates 11,03,526 procurment was with in the
sanctioned limit.That's whypara should be dropped.
TOTAL 76,53,021 19,11,063
Annexure 3Amounts where records maintained are inadequate or payments are improper
S.no.Amounts for
Remarks DPMU's Para Reference of ML Amount Current Status which paradropped
1work of Painting, Electic andAlmunium were done as per
Non- obtaining of approval for GM(Adm) provisions of procurementitems purchased at SPMU. GM(Procorment) B.11.14 2,21,100 plan after receiving competent 2,21,100
approval.Hence para shouldbe dropped.
2 Non obtaining ofacknowledgement for paymentof honorarium to bookkeepers.Further, honorarium was paid Dungarpur B.7.2(ANNEX- E) 120155 To be discussed and verified.beyond stipulated period of 1year of SHG formation which berecovered.
55
3 Discrepencies observed byaudit team in respect ofpayment made to SERP forproviding technical assistancefor the project- Non submissionof claim for reimbursement,Non submission of CAcertificate to confirm the
CA certifacte has beenexpenditure, Non adjustment of GM(Adm) B.11.1 2,27,00,000 received and verified, hence 2,27,00,000long pending Advances, non para should be dropped.submission of monitoring
reports, non constitution ofcommitte, non updation of SHGdetails in Sakh Darpan & Nonavailability of details ofdeployment of staff by SERPetc.
4 Discrepencies observed byaudit team in respect ofpayment made to SIDS forsupply of manpower. Non GM(Adm) B.11.2 To be discussed and verified.deployment of staff after 2,18,00,000following proper recruitmentagainst 3 CVs .
5Non recovery of cost of alaptop lost by SIDS official. GM(Adm) A.1.4 To be discussed and verified.
6List of members who attended
List of members who attendthe training was not attached in Banswara B.1.3 the training programe was 2,44,467support of the expenses 2,44,467 attached and verified.Henceincurred.
para should be dropped.7
Expenses incurred on food for List of attendent participantsCRP and SHG's trainees is not Dholpur B.6.1 of SHG tranning was atteched 2,03,249supported with participant list. 2,03,249 and verified.that's why parashould be dropped.
8 Attendance records of SPMUstaff not maintained. Hence
B.11.7 To be discussed and verified.salary payment is not backed 1,78,653by attendance records
56u
Excess payments to Employee GM(Adm) and Shri B.11.9 To be discussed and verified.liable for recovery Noordin 32,932
10Incement salary drawn byDPM NXK Bansal was
Payment of salary increment senctioned by competentbased on self authorisation to authority (SMD JAIPUR) andMr. N.K. Bansal deputed as Dholpur B.11.10 Paenton slrDPM in Dholpur District not pyeto w aayafoun in or d isrit.o head of the office capacity bycSPMU.copy of increment
sanction order verified. Hencepara should be dropped.
11Non- maintanence of D Bd Attandence register wasattendence record of ansa, u n, maintained and verified forcontractual staff at certain Sanwar Maropu, A.5.1 2,762 the financial year 2013- 22,37,612
SawSiMU.coppur, 22c37m612
locations. Hence the salary to Dungarpur 2014.Hence para should bestaff could not be verified. dropped.
12
Hiring of vehicles in excess of Kota, Bhilwarastipulated no. of days and Dhuru, Rajsamnd,beyond monetary limit of E Chittorgarh, Baran, A.6(a) ANNNEX-A To be discussed and verified.9,000/- per month at some Tonk, Sawai 4,66,227DPMUs resulting into excess Madhopur,expenditure. Jhalawar, Bikaner
13
(1) excess payment of Rs.1240/- has been recovered by
Exestipulae ttaiveDholpur DPMU, Hence parabeycn o entait Biranr, r, A.6.(c) should be dropped. 1,240
be rcovred Barn 8190 (2) BARAN and BIKANERDPMUs: To be discussed andverified.
U
D r , e
14Non- Recovery of interest on Recovery has been made atadvances (@18% P.A) if not Bhilwara, Tonk, BHILWARA and CHURU DPMU,adjusted within stipulated Baran, Bikaner, A.8.1 ANNEX- B hence para should be 35period of 1 month resulting in Churu 16,365 dropped. (2)non compliance of HR manual. For remaining DPMU : To be
discussed and verified.15
Non- recovery of advances A. Churu, Advance given to PRPs hasgiven to PRPs towards vehicles Rajsamand, been deducted from fees ofpurchases, etc. resulting into Dugarpur, Tonk, A.8.2(a,b,c,d) 2,92,527 SERP.No recovery pending, 2,92,527blockage of funds. B & C Udaipur D hence para should be
Tonk dropped.
16 Excess reimbursed to employee Bhilwara B.2.2 To be discussed and verified.for medical treatment. 2,050
17 Excess reimbursed fortravelling charges to Saheli Churu B.4 To be discussed and verified.Samiti Dausa, need recovery. 14,116
18 Payment made to vendorwithout ensuing compliance of GM(Adm) B.11.3 To be discussed and verified.agreement terms. 3,37,080
19Excess paid for hiring taxi. GM(Adm) B.11.6 5,049 To be discussed and verified.
20 Excess reimbursed to employee GM(Adm)towards mobile charges. Ammount 6852/- B.11.11 6,852 To be discussed and verified.
21
Excess reimbursed to centre for The payement made to CMF ismicro-finance for out of pocket GM (M&E) Shri B.11.13 according to MOU entered by 23,615expenses. Kumawat 23,615 concerned authority, hence
para should be dropped.
22 Excess payment to taxi vendors GM (M& ) Shribe recovered. Kumawat B.11.5 5,140 To be discussed and verified.
23 Bills relating to mobileReimbursement of Activation Rajsamand B.9.2 activation submitted by 2,500fees of mobile number. 2,500 concerned persons, hence
para should be dropped
TOTAL 4,89,17,879 2,59,26,345
58
Annexure 4Other issues where attention/ strengthening is required
S.no. Remarks Para Reference Current Status1 Bank balance of Rs.8.60 Cr is
kept in saving bank accounts at Saving bank accounts of SPMUSPMU and various DPMUs and DPMU have beenthereby earning lower rate of GM(Adm) Balance Sheet converted in flexi account.interest. Balance confirmation Hence para should benot furnished for these bank droppedbalances.
2Staffing IssuesMaterial departure has beenobserved by the auditor in caseof hiring and payment toRegular or Contractual staff- system of maintaining recordsregarding attendance andleaves of staff is not in place oris inadequate Staffing issues are clear and- Documentation with respect verified with staff Records I.e.to Last pay certificate not held GMAd AA, B.11.8, A.5.3, B.11.4, - attendence register,on record B.11.5 Contract agreement, leave- Short marking of leave in register Hence Para shouldleave records. be dropped- necessary procurementprocedures not followed inhiring of contractual staff- advances to project staff arenot recovered or adjustedtimely- Balance confirmation foradvance to staff not received
car5ered-3 Accowntan*
59
3
Governance Issues- meetingof Empowered committee shortheld and of governing body notheld;- non furnishing ofresponses by the management Audit report (Ix), (x) To be discussed and verified.to the internal audit reportsdue to which compliances couldnot be verifed;- internal Auditis not conducted as per FinanceManual
4Statutory Compliances- serious non-compliances withapplicable regulations for A.2 & A.3 To be discussed and verified.statutory deductions of TDSand employee benefits
5Record keeping andSafeguard of Assets- inadequacies in maintainingand record keeping of FixedAssets Records of Assets have been- codification, physical maintained and codificationverification and insurance cover A.1 , B.2.1, B.11.3 has been done for the period,for the fixed assets not in place hence para should be- Non recording of inventory dropped.purchased for the project ininventory register.- Debit/ Credit balances aresubject to reconciliation
6
__Jttrtemed0
60
6 Weaknesses in BookKeeping and recordsmaintenance- Lapses in maintenance ofBooks of Accounts on a realtime basis- Lack of control overprocessing of vouchers &supportings in case of expensesincurred on training and B.6.2, A1.1,A.9.4,workshop were not found GM(Adm) Emphasis of Matter (Audit To be discussed and verified.adequate. report)- Non compliance with variousprovisions of finance manual,HR manual- attendance anf leave recordsfor employees/ consultant/PFTs/ contractual staffdeployed throufg placementagencies were not properlymaintained.
7 Discrepancies observed inrespect of Advances- nonrecovery/ non adjustmentof advances of Rs. 3.73 Sawai MadhopurIakhs given to Sawa. Madhoprconsultants/staff and also C.14.3 Bhilwara C
16.1 Dholpur C.18.1 C.1 to C 22 (ANNEX-G &H) To be discussed and verified.not adjusting the advances 3halwartimely.- Non- Recovery ofinterest on advances notadjusted within stipulatedper6
61
Other Non-compliances- Weaknesses in system ofpreparation and submission ofIUFRs- non accounting of cashwithdrawl from bank in cashbook but booked directly asexpense.- Mismatch in amountsreported in IUFRs toEmpowered committee andthose submitted to World bank- Half yearly Project reports to Audit report - Notes tobe sent as per the financing
Financial Statements, To be discussed and verified.agreement are not verified tothe auditor. Hence progress onproject could not be reviewedby the auditor.- Non carrying out of anyproject activities by KarauliDPMU even then salary andoffice expenses of Rs. 12.14lakh were incurred.- Non allocation of projectimplementation expensesamongst RRLP an NRLM/NRLPprojects but charged entirely toRRLP project.
9 A.5 Appointment of contractual
staff was made by placementHiring of Contractual Staff agency as per guidelines of- SPMU need to follow .DPMU and payment was alsoprocurement manual before made to placemnet agency ashiring contractual staff. per the guidelines of DPMU.hence para should bedropped.
62
10 A.6(d)Hiring of Vehicles- Opening and closing kmreading was not mentioned in Dholpur To be discussed and verified.the log book and vehicle washired for full month at a DPMUinstead of 10 days.
11A.8.1 &A.8.2.(e), Emphasisof Matter (B)(vi)
Discrepancies observed inrespect of Advances- nonrecovery/ non adjustment ofadvances of Rs. 3.73 lakhsgiven to consultants/staff andalso not adjusting the advancestimely.- Non- Recovery of A.8.1 ANNEX-Binterest on advances not Bhilwara,Churu,adjusted within stipulated Baran, Tonk, To be discussed and verified.
period of 1 month resulting in Bikaner A. 8.2 (e)non compliance of HR manual.- KotaNon- Hypothecation of vehiclein the name of DPMU and non-obtaining of registrationcertificate for hypothecation ofvehicle from PRPs for vehicleloans given.
63
ACTION TAKEN REPORT FOR THE FINANCIAL YEAR 2012-13OF RAJASTHAN GRAMEEN AAJEEVIKA VIKAS PARISHAD (RGAVP)
FOR RAJASTHAN RURAL LIVELIHOOD PROJECT (RRLP)
P ara. Observations Recommendation Management Response Currenftstatus On 31/12/2015
A.13.2 Furniture of Rs.138122 was purchased by Bhilwara DPMU The quotations Telephone number of Shankar Directions issued to DPMUs, tovide vouchers no. 106 dated 15.01.2013 quotations were should be carefully industries and Anmol industries are carefully check the documentsreceived from Shanker Industries quality traders and vetted and order be however same due to sister concerns. before finalizing any procurement.Anmol Industries. However, Shankar industries and awarded after However mobile number mentionedAnmol industries appeared to be same party as mobile proper verification of in quotations from Shankarno. as mentioned on the quotations were same. the credentials of industries and Anmol industries are
vendor, same as these are sister concerns.
A.13.4 Tender for hiring of computer operator from placement The quotations Care will be taken and futureagencies was opened on 23.03.2012 by Bhundi DPMU in should be carefully Directions issued to DPMUs towhich the quotations were received from Dee Dee vetted and order be carefully vet the quotations andcomputers, D.D Educational research & human welfare awarded after order be awarded after propersociety and Sanskrity Computer. Dee Dee computers was proper verification of verification of the credentials ofselected at lowest price bid of Rs. 6500 per month the credentials of vendor but still to be discussed andoperator. On verification we observed that though the vendor. verified further.payment for the month of feb. 2013 has been made toDee Dee Computer vide voucher no. 115 dated01.03.2013 however, the acknowledgement for thereceipt of payment was received from D.D. educationalResearch & human welfare society, which depicts thatboth parties are controlled by same person and thus twoquotations were sent by the same party out of which oneparty was selected.
A.13.9 Quotations were received by Kota DPMU for purchase of 2 The quotations Actions against defaulting officers Directions issued to DPMUs todesktops for Rs. 65950 from Kumar expert computers should be carefully have been initiated and explanations carefully vet the quotations andshubham computer and kumar marketing & services. vetted and order be have been called. order be awarded after properKumar expert quoted the least price and thus purchase awarded after * Purchased was made through of verification of the credentials ofwas made from him further other IT equipment were proper verification of Distt. Level purchased committee vendor but still to be discussed andpurchase from kumar expert on other occasions however, the credentials of there is no irregularity, verified further.quotations of remaining two vendors were identical as tin vendor.no was not mentioned, offers were prepared in sameformat contact nos. were not mentioned and also theaddress is same as that of kumar expert.
A.13.10 Rs.15100 was paid to sunrise printers by Rasamand Actions against defaulting officers Directions issued to DPMUs toDPMU for purchase of stationery and printing of vouchers The quotations have been initiated and explanations carefully vet the quotations and
64
charlzu'0Accoi,wt,Z
no ws no menione, ofers ere repaed iLsam
Th7u tto s*A to sag i s eali g ofc r
vide vouchers no.22 dated 27.08.2012 quotations were should be carefully have been called. order be awarded after properreceived from Sunrise Printer, a vetted and order be verification of the credentials ofAmbika Printers and Hind Stationers however contact no. awarded after vendor but still to be discussed andof hind stationers and sunrise printers were same which proper verification of verified further.depicts that these two parties controlled by same the credentials ofpersons. vendor.
A.13.13 Quotations for procurement of furniture were received by The quotations Hansa Traders and prabhat furniture Directions issued to DPMUs toUdaipur DPMU from Hansa Trades, Prabhat furniture and should be carefully both are separate firms & has got carefully vet the quotations andPoonam Steel Furniture. however, Hansa Trader and vetted and order be separate entity with separate shop order be awarded after properprabhat Furniture appeared to be same party as the awarded after telephone no address etc actions verification of the credentials ofmobile no. mentioned on the quotations were same. proper verification of against defaulting officers have been vendor but still to be discussed andPurchases were made of Rs. 2,61,513/-. the credentials of initiated and explanation have been verified further.
vendor, called
A.13.5 Tender for photocopy work was opened on 21/09/2012 The quotations Appropriate action is still requiredby Bundi DPMU for which the quotations were rerceived should be carefully Stamp of vendor taken on a for paper. to be taken.from Bharat Japani Zerox, Vyas Zerox, Suwalka Std and vetted and order be Care will be taken in future.Zerox. awarded afterquotations received from Vyas Zerox was prepared on A4 proper verification ofpaper with not stamped of the vendor and still was not the credentials ofrejected. vendor.
A.14.1 Expenditure of RS. 50500/- was incurred by BHANSWARA Procurement Actions against defaulting officersDPMU toward hiring of vehicle from Urmila Paner! during procedure should be have been initiated and explanations DPMU provided documents relatedthe year 2012-13. Neither quotations were invited nor an followed as have been called, to procurement but still to beagreement detailing the terms and condition was stipulated in discussed and verified further.entered. procurement manual
for effectivepurchases for theproject
A.14.4 Procurement Actions against defaulting officersFurniture of RS. 47595/- Has been purchased by BHUNDI procedure should be have been initiated and explanations Still to be discussed and verifiedDPMU from Mahesh steel industries with P.V. no. 121 followed as have been called, further.dated on 08/03/2013 without inviting offers and thus stipulated inpurchase was not made at the best comparative rates. procurement manual
for effectivepurchases for theproject__________________
A.14.12 Quotations were received by KOTA DPMU for purchase of Procurement Quotations for purchase of furniture As per documents produced,furniture from StockWell Furniture, Trilok Metel Industries procedures were not have been received on 5-10-12,1-10- quotations received uptoand Sindh Agencies. Order has been placed on Stock Well followed properly 12 and order was placed on 12-10-12 11/10/2012 and work order issuedFurniture on 12/10/2012 as per the note sheet. As per and quotations were procurement procedure followed on 12/10/12.No discrepanciescomparative statement quotations were stated to be obtained for found in this procurementreceivedon1l/10/2012and furniture were received on documentation.
65
frefci
10/11/2012. Thus the procurement p[procedure was not
followed properly.
A.8.1(b) RS. 1.45 lakh was paid towards hiring of computer Procurement Although agreement was entered to
operators and multipurpose worker from Indian institute process for the provide computer operator at the rate Still to be discussed and verified
of placement and carrier from 01/07/2012to 31/03/2013. selection of 6000 p.m. But the rate was revised as further.
On verification following was observed placement agencies per the circular of finance department
i. Agreement was entered on should be followed:- dated 25/07/2011. Further it is also
01.07.2012however, quotations received clarified that approval was also taken
from Konark Manav Sansadhan Seva, Nay Matter of from the then dpm vide this office
Sarthak Foundation and Indian Institute of variation in letter no. 22 dated 04/12/2012.
placement and career consultancy were dated salary of20.07.2012 computer As far as about overwriting the
ii. Agreement has been entered to p[provide operator at quotations were received as
computer operator @ Rs. 6000/- per month, various places overwritten by the party andwhich was increased to Rs. 6500/- per month to be overwriting is verified by himself.
for which the approval or amendment to the reviewedagreement was not furnished, appropriately.
iii. On verification it was observed that there was Contract be
overwriting over rates quoted by the entered into
placement agency of total amount Rs. 6800/- prior to hiringof contractual
iv. Attendance record for the contractual staff is person.not maintained by DPMU. *Attendance
and leaverecords ofcontractualstaff shouldbe maintainedto facilitateverification ofbill of theplacementagencies.
A.8.1(f) Rs79595/- was paid towards hiring of computer operator Procurement Hiring of computer and multipurpose ]heel Development Society direct
and multipurpose worker from Jheel Development procedure should be worker from ]heel Development contracted, on the same terms and
society. On verification it was observed that neither followed as Society has been hired on the basis of conditions of the engagement
quotation was invited nor attendance records for the stipulated in Zila Parisad Rajsamand. under Zila Parishad,Rajsamand
same was held on record. procurement manualfor effectivepurchases for theproject
A.8.1(e) Drnthyear 2012-13, Rs. 147352/- and 34461/- was IAs per agreement payment maetnl DPMUs directed to maintai-n -
66v fAe
Cof
bil f h
paid to Konark Manav Seva and Indian Institute of Procurement PFT on job basis. So attendance attendance register of allplacement respectively for providing 3 computer procedure should be register has not been maintained, employees deployed on job basedoperators, one multipurpose worker and 1 peon. On followed as engagement but still to beverification, following was observed; stipulated in discussed and verified.
i. No attendance records' for the contractual procurement manualemployees was maintained by DMPU due to for effectivewhich basis on which salary was paid could purchases for thenot be ascertained, project
ii. No agreement detailing the rates and terms &condition was entered into for providing thecontractual staff.
B.7 Work of preparation the project Account/ financial Procurement a. Letter for revision of opening They Considering shortage ofstatements of RGAVP for the year 2012-13 was awarded process should be date from 16-07-2013 was Accounts persons at SPMU andto Gupta Ram Gopal & Co.jaipur. Invitation for quotations followed properly issued on 11-07-2013 World Bank representativeswas sent to 3 firms on 04/01/203 (informed to be revised wherein the letter b. No any bidder was present at suggestions CA firm hired.to 18.07.2013) namely Gupta Ram Gopal & Co. Jaipur, S. for revision of bid the time of opening of bid so Currently Bank reconciliation isSinghal& Co. Jaipur, Soni Rajendra & Co. Jaipur. document be placed no signatures were obtained being carried out on monthly basisOn verification of offers received from various parties, we and bid opening from the bidders' but still to be discussed andobserved as under: attended by the representative. verified.
a. Letter for revision if bid opening date from concerned parties. c. The accounts were re-16.07.2013 tol6.07.2013 as sent to the parties prepared by M/S Gupta Ramwas not held on records Gopal & Co. Jaipur and
b. Signatures of the parties present at the time of submitted to the Externalbid opening were not obtained from any of the Auditor for audit.parties and we were informed that none of d. There is a shortage of staff forparties were present during the opening of offers. Finance and Accounts hence
c. BRS neither was neither prepared monthly but the accounting work was donequarterly nor was passing of the pending entries by outside agency.ensured at SPMU and DPMU.
d. As the sanctioned strength of the accounts andfinance department us adequate, the need tooutsource the primary work of accounting to anoutside agency was not documented. Further,how the confidentiality is maintained in absenceof any declaration from the outsourced firmneeds to be looked into.
A.1.4 On verification purchase of asset, it was observed that Fixed assets should Action against defaulting DPMs have Direction issued to all concerned toassets were purchased in excess of the budget without be strictly be been intended and explanation has ensure procurement of fixed assetsobtaining requisite approval. purchased as been called, within budge limit.
approval budget.A.20.11 On verification of payment made to society for Complia Reply is awaited from SERP. Documents provided by SPMU and
elimination of Rural poverty (SERP) by SPMU. It was nces of the terms of verified. .
67
2~ hrle4cneo0
observed that reimbursement of expenses was not contract regardingclaimed in the same format as per the cost estimate submission of claimspecified in the contract due to which the payment of Rs. for reimbursement in26.67/- lacs made to SERP cannot be compared with the prescribed formatcost estimates. Further, as per terms of contract SERP is and submission of CAto provide an audit certificate by the chartered certificate confirmingaccountants each year confirming the actual expenditure the actualcharged under MOU. However the same has not been expenditure beprovided by SERP by till date of our verification as on 21- ensured.
_______11-2013
book keepers during the year 2012-13 towards of vouchers prior to recovered. Action for recovery aremaintenance of books of SHGs. As per SPMU notification accounting be still required to be taken.no. 11451-88 dated 23.11.2012,bookkeepers are to be strengthened andpaid s Rs. 75/- per SHG after 6 months of SHG excess payment offormation and no payment is payable 75/- per SHG after Rs. 17225/- made be6 months of SHG formation and no payment is payable recovered in theafter 12 months of SHG formation. On verification we listed cases.observed that excess payment of Rs. 17225/- was madeto the bookkeepers.a
B.4 Contract for providing consultants service for time based SsCompliance of (a) Document relating to Still to be discussed and verified.for DPMUs and 18 PFTs was awarded to SRIJAN Infratech terms of educational& development services on AUG 22,20 12 for a period of contract qualification and12 months. On verification F bids received from various regarding experience areparties against request for proposal for providing the submission of available of eachaforementioned job, we observed ass under: quarterly selected candidate.
a. CVs of the selected candidates were not provided progress report, (b) Quarterly progressto SPMU by their SIDs . in the absence of which, receipt of report is being soughtit could not be ascertained that the selected advance from SIDS.candidates have qualification about work payment (c) No advance is nowexperience as stipulated in TOR. guarantee etc. paid to SIDS.
b. Quarterly progress report submitted by SIDS be insured. Reconciliation ofagainst the agreed work plan is yet to be verified Excess advance amount isto Us. payment made under process.
c. As per contract, advance is to be paid to the to the vendor (d) Since the amount iscontractor against submission of advance be recovered. given as advance, thispayment guarantee. Advance of Rs. 32.85/- lacks *Amendment to shall be adjustedhas been released to the party without the contract be during reconciliation.guarantee. made in which (e) Due to insufficient
d. Service charges/admin charges per person have total contract fund in RRLP account,been fixed @ 7.31D in case of PFT. However it value this payment waswas paid 8%. Thus resulting in excess payment mentioned, made by transfer fromof Rs. 3001/- as per details given blow. Vouchers along NRLM to RRLP
e. Voucher no. 559 dated 22.03.2013 for Rs. with bill for RS. account, which has752363a - was not held on record. 7,52,363/- be been adjusted.
68
to us paymnt mde uner prcess
f. Report of verification of work done by deployed located and (f) This record ismanpower at DPMU PFT is still to be furnished. verified to us. available at concerned
g. As stated in the agreement, interim report is to DPM office.be submitted by SIDS stating the work plan for (g) Interim report fromone year including a framework clearly describing SIDS has not beenthe selection and recruitment process. received shall seek for
h. Total value of contract has not been mentioned it again.with the contract is not proper. (h) Since the requirement
of the manpower isflexible and hence thetotal value contractcould not beascertained.________________
I.1 Cases were where same registration number was Trench as stipulated Responses provide are These discrepancies may beappearing for different SHGs to whom trench-1 was in the finance manual not clear, because of technical issues ofreleased. Payments were made to SHGs with same name be paid to registered earlier Sakhdarpan MIS No anyand Shakh Darpan. SHGs and routed such issues arisen during regular
through CDO for field visits and current audit visits.proper monitoring of
Satisfactory report on pending para's of F.Y. 2012-13.
Pending para's of Financial Year 2012-13 on which we are satisfied are given below in "Annexure 2 & 3"
Annexure 2
Amounts where procurement procedures are not properly followed StatusS.no. Para Reference Amount Bank's response on RRLP's email dated
of ML 27-July-20151 A.14.3 6,960
Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
2 A.14.5 28,470Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
3 A.14.7 34,000 (a) All three quotations are now held on record we
Please have the documents verified by the checked it but they are not on their letter head.external auditors and provide a confirmation (b) purpose of visits are now available on logfrom auditors if the paras are dropped. book, we verify it, hence para should be dropped.
4 A.14.8 77,494Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
5 A.15 179,302 We have now verified the DGS & D rate contractPlease have the documents verified by the and purchase order, the procedure followed byexternal auditors and provide a confirmation Tonk office are satisfactory, hence para should befrom auditors if the paras are dropped. rnnt-d
6 A.13.1 305,900Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
7 A.13.6 49,396Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
70 Mtaa
8 A.13.7 34,900Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
9 A.13.8 34,950Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
10 A.13.11 168,250Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
11 A.14.2 47,952Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
12 A.14.6 62,042Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
13 A.14.10 40,100Please have the documents verified by the Procurement Files now verified, hence para shouldexternal auditors and provide a confirmation be dropped.from auditors if the paras are dropped.
14 A.8.1(c) 72,800Please have the documents verified by the Attendance register now verified, hence paraexternal auditors and provide a confirmation should be dropped.from auditors if the paras are dropped.
15 A.8.2 17,292 Shri Ramkaran chandel was appointed asPlease have the documents verified by the additional charge of manager finance. Projectexternal auditors and provide a confirmation allowance are in accordance with rgavp provisons.from auditors if the paras are dropped. Hpnrp nar ghmild h ironnPrL
16 A.13.3 9,800Please have the documents verified by the Documents related to procurement procedure areexternal auditors and provide a confirmation verifed. Hence para should be dropped
TOTAL 1,1from auditors if the paras are dropped.TOTAL 1,169,608 ___________________
1tnts
71(6
Annexure- 3Amounts where records maintained are inadequate or payments are improper StatusS.no. Para Reference Amount Bank's response on RRLP's email dated
ofML August6, 20141 A..5.2 63,986 Please have the documents verified by the We have verified the attendance register, hence
external auditors and provide a confirmationfrom auditors if the paras are dropped.
A. 8. 1 (a) 3,038,987 Please have the documents verified by the We have verified the attendance records and nowexternal auditors and provide a confirmation they maintained the attendance register properlyfrom auditors if the paras are dropped. hence para should be dropped
4 A.8.1(d)(Dausa) 1,828,000 Please have the documents verified by the Attendance record's of PFhvs were now held on
external auditors and provide a confirmation
teod,w maintifed thtendce reisoul proerl
from auditors if the paras are dropped. dropped
5 A.8.3 120,000 Activity wise and date wise Monthly progressPlease have the documents verified by the report are now held on record, we verified it,external auditors and provide a confirmation hence para should be dropped.from auditors if the paras are dropped.
A.20.6 12,100Please have the documents verified by the The entries were correctly posted by dpmu. Weexternal auditors and provide a confirmation verfied it, hence para should be dropped.from auditors if the paras are dropped.
Pleae hae th docment verfiedby te Th enties ere orretlyhosteeby du WeTOTAL 5,063,073 __________________ ___________________