Field Visit to DPO-Khurda

Team-IM.P.,Gujarath,Jharkand,U.P.,

Chattisgarh,Nagaland, Chandigarh,Daman&Diu

Shri Gopalan, Consultant,Edcil

Basic Indicators• No of BRCs- 11• No of CRCs- 165• No of Schools-• Department of education- 1592• Department of Tribal Welfare-19• Aided Schools- 113• Total- 1724• No of Teachers 4476• Finance & Account Staff in place • Financial Consultant 1 • Accountant 1• Cashier 1 • The DPC is from State Administrative Service and all others are on Contract

Basis• The Budget for 2010-11 SSA-Rs4406.67 Lakhs;NPEGEL- 23.48 Lakhs &

No KGBV

Books Of accounts

• All prescribed books of accounts are maintained• However , not carried out annual physical Verification of Stock and

assets

• Cash Book• Maintained on double entry system• Computerized accounts in Tally-9 and well established• Manual maintenance of cash still continuing• Used Correcting Fluids for corrections which should be avoided• Not attested each entry by the DDO• Intervening pages left blank, though struck off• Not closed on holidays by indicating ‘No-Transactions’

Books Of accounts

• Cheque Issue Register• Maintained for all transactions • Cheques for > Rs1.00 Lakh need to be signed by Collector –cum-

Chairman. However not attested entries for cheques > Rs1.00 lakhs since 20 Sept.2010

• Bank Accounts• Maintained Joint signatory 7 SB accounts in 4 Banks• Uco Bank-4: Axis-1: SBI -1: Neelanchal Gramin Bank -1• The District needs to close multiple accounts in view of the new

provisions in the FM&P manual

Books Of accounts

• Bank Reconciliation• Carried out up to Sept.10 for all the 7 A/cs• Stale Cheques from 2003 onwards are available• District needs to cancel all stale cheques and credit the amount in

the respective accounts• In actual practice proper reconciliation has not been carried out as

many entries of bank credits and debits pertaining to the period from 2003 not made in the cash book.

• This is a serious financial irregularity which needs to be looked into by FC at the State Level as the District seems to be not aware of the procedures for bank reconciliation

Books Of accounts

• Advance Register• Started maintaining from 2010-11, but no adjustments were carried out

• Also maintained in Tally

• Rs2.42 Crores is outstanding since Aug-2003

• The advances were given to the same individuals without adjusting the earlier advances

• The Civil Work Consultants were given huge amounts as advance towards construction works. This is not a good practice which should be ceased forthwith.

• Advances should be given to implementing agencies

• District needs to take immediate action to adjust all outstanding advances

• Vouchers• Vouchers are properly maintained, serially numbered and linked with the

entries in the cash book

Fund Transfer

• The Closing balance avilable on 28-10-10 – Rs 5.88 Crore

• Funds are not timely released to sub-district level units within 15 days as envisaged in the Manual

• DPO gets funds from SPO on e-transfer• From DPO funds are transferred to BRC,CRC&VEC on

bank transfer basis which takes 7 to 15 days• Intimation of transfer of funds sends to BRC only for

confirmation• DPO should also send information simultaneously to

CRC & VECs and get their confirmation

Procurement

• Followed the prescribed procedure by inviting open tenders through advertisement, evaluation and award of contract to the lowest evaluated responsive bidders

• Proper documents are kept systematically

• Approval of the competent authority obtained for all procurements

Audit Internal & Statutory

• Audit for the year 2009-10 has been completed but report is not available

• Some of the observations in the report of 2008-09 are as follows

1. Register of staff advances,T.A.& DA, Work is not avialable

2. Personal Advances were not adjusted and subsequent advances were made.

3. U.C.s were not furnished

4. Cash books in most of the schools were not available

General Observations• Month wise activity plan is well prepared• First installment of Civil Works is @75% has been made in September of

this year. The targets were shortened due to enhancement of unit cost in the year 2005-06

• Grants were released in the month of August• VEC accounts are mostly in Grameen Banks• For the purpose of IED the BRT is having a separate Bank Account. But in

some cases like Escort Allowance amount has been sent to BRC account• The DPO is having a full strength of 28 contractual personnel besides DPC

from State Administrative Service. The good practice by the Orissa SSA is that, recruiting the technical consultant of Finance with a qualified person either ICWA/CA(Inter)

• The DPC office is situated in an independent Building with fully functional conference hall.

• The DPC had constructed District Resource Center with a cost of Rs49,249/ and booked the expenditure under LEP and the amount was not shown as advance.