1. Presentation on Pending Observations of 1 st Phase Study Report of IPAI 36 th Quarterly Review Meeting of Finance Controllers, New Delhi

2. IPAI conducted studies in all 35 States / UTs. Responses received from all States. Comments of State Implementation Societies found not satisfactory in many cases. Observations of IPAI pending for settlement from 17 States / UTs: A & N Islands, Andhra Pradesh, Chandigarh UT, Chattisgarh, D & N Haveli, Daman & Diu, Goa, Himachal Pradesh, J & K, Jharkhand, Lakshadweep, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Uttar Pradesh.

3. Important observations requiring States’ immediate attention: Andaman & Nicobar Islands All paras settled except the following: Para No.Action by SIS 4.3UT was required to advise remedial measures taken for improvement in release of funds to the districts. 4.4To ensure full utilisation of funds and timely preparation of Annual Accounts. 4.7To intimate status of civil works 5.2To intimate action taken for utilisation funds.

4. Para No.Action by SIS 5.4To submit details of excess funds claimed from GoI towards maintenance grant. 6.3(iv)To intimate status of recruitment of Accounts Staff. 6.8Confirm maintenance of one Saving Bank Account at all levels. 6.10Progress of Internal Audit to be advised. 8.1Details of training of community leaders to be advised. 8.4Advise Action taken for opening of 41 pre-primary centres. 8.5Details of Utilisation of computers. 9.4To provide comments of MDM regarding transfer of rice to other schemes. Andaman & Nicobar Islands contd../-

5. Andhra Pradesh There are many paras remaining unsettled relating to diversion of SSA funds to unauthorized activities. Para No.Diverted amount to be refunded to SSA account 4.8.1Diversion of Rs. 9473.73 lakhs to DPEP. Only Rs. 5994.97 lakhs refunded to SSA. 4.8.2Diversion of Rs. 268.76 lakhs to Janasala scheme. 4.8.3Diversion of Rs. 2100.00 lakhs for computerization of 1000 schools under DPEP. Rs. 1000 lakhs refunded to SSA.

6. Para No. Diverted amount to be refunded to SSA account 4.8.4Rs. 2700.00 lakhs diverted to KGBV in 2005-06. Only Rs. 2300.00 lakhs refunded to SSA. 4.8.5Rs. 1511.39 lakhs diverted to K U BAND Account. Rs. 891.68 lakhs refunded to SSA. These are illustrative figures as control registers were not available. 4.8.6Diversion of funds to State Education Department for purchase of personal digital attendance machine at a cost of Rs. 229.83 lakhs. Rs. 188.25 lakhs were refunded to SSA in February 2007. 4.9.1.1Rs. 11.55 lakhs were diverted to NPEGEL for purchase of uniforms which were not covered by norms. 4.9.1.2Rs. 27.31 lakhs was spent on procurement of sports material under DPEP. Andhra Pradesh contd../-

7. Para No.Diverted amount to be refunded to SSA account 4.9.2(i)Rs. 4.02 lakhs was spent on 09.03.2002 for conducting a DPEP meeting. The expenditure was booked to SSA on 24.03.2002. 4.10Rs. 1828.30 lakhs spent on payment of salaries of MRPs under DPEP. 4.11.1Rs. 143.74 lakhs diverted for payment of salary of vidya volunteers. 4.11.2Rs. 251.72 lakhs were diverted for payment of salary of vidya volunteers in Mehboob Nagar district. In addition to above there are many paras remaining outstanding for want of suitable comments from SIS SSA Andhra Pradesh. Andhra Pradesh contd../-

8. Para No.Diverted amount to be refunded to SSA account 6.3Rs. 9.38 lakhs were utlised for fixing iron grills in school windows out of the school grant. This amount needs to be recovered and refunded to SSA accounts. Chandigarh UT Except for para 6.3 all other paras of the report are settled.

9. Para No.Diverted amount to be refunded to SSA account 3.3(i) and (ii) Diversion of Rs. 99.79 lakhs to NPEGEL in 2004- 05 and Rs. 191.21 lakhs from NPEGEL to SSA in 2005-06. 3.4(iv)Rs. 33.89 lakhs in 2003-04 and Rs. 34.30 lakhs in 2005-06 were spent as school grant and teacher grant respectively over the budget allotment. 3.5Rs. 188.19 lakhs diverted for purchase of library books from TLE and TLM grants in 2003-04. 3.6(i)Rs. 115.00 lakhs diverted to NPEGEL from SSA. Chattisgarh

10. Para No.Diverted amount to be refunded to SSA account 3.6(ii)Rs. 654.04 lakhs diverted to NPEGEL. 4.7Advance of Rs. 7.36 lakhs to individuals not adjusted. Make adjustment at the earliest. 5.1.1(A)(iii)Rs. 122.24 lakhs diverted from DPEP to SSA. 5.8.1(b)Excess expenditure of Rs. 38.55 lakhs in Antagarh and Rs. 13.70 lakhs in Durg Kondol over budget allotment. Get competent authority’s approval. 5.8.1(c)Rs. 14.58 lakhs spent over and above the budget allotment by DPO Rajnandgaon. In addition to the above there are several paras involving cases of wrong accountal in the Books of Accounts. Chattisgarh contd.../-

11. Dadra & Nagar Haveli SIS has not yet submitted any comments against para No. 3.4(i), 3.4(ii), 3.4(iv), 4.4.1(d) and 6.3. These paras relate to procedural irregularities.

12. Goa Response of SSA Goa is under consideration of TSG / MHRD. Para No.Action by SIS 8.5.2Rs. 6.30 lakhs were paid as maintenance grant to the schools run in rented premises. This amount needs to be recovered or adjusted in rent payable in future. 8.5.3Rs. 30.00 lakh each for girls and SC/ST children education were diverted to supplement the State’s scheme. The amount of Rs. 60.00 lakhs needs to be refunded to SSA account.

13. Himachal Pradesh Comments in respect of observations in para Nos. 1.9, 3.6.2, 3.6.3, 4.1, 4.2, 4.3, 5.1, 5.2.1, 5.2.2, 6.1.1 to 6.1.3, 6.2, 6.3, 6.4, 6.6, 6.7, 7.1, 7.2, 7.3.1, 7.3.2, 7.4, 7.6, 7.7, 8.2.1, 8.2.3, 8.2.4, 8.2.5, 8.2.6, 8.3, 8.4.1, 9.1, 9.2.1, 9.2.2, 9.2.3, 9.3, 10.2, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.12, 10.13 and 11.3 are awaited from the State since 23 rd June, 2009.

14. Jammu & Kashmir Though many observations have been settled on receipt of comments of SIS, large number of observations (34) still continue to be settled for want of comments of SIS. Para No.Action by SIS 4.8Rs. 1569.72 lakhs on account of pre-project activities were released to Director Schools, Srinagar, Director Schools, Jammu and Board of Secondary Education Srinagar. The accounts of the amount are not available which should be kept ready.

15. Jharkhand Observations in para Nos. 3.4(iv), 3.5, 4.2.1(i), 4.2.1(iv), 4.2.1(viii), 4.2.1(ix), 5.4(i), 5.4(ii), 5.4(iii), 5.4(iv), 5.4(v), 5.6(i), 5.15(f), 6.4 and 8.3.1 to 8.3.12 continue to be settled. Observations in the above paras pertain to procedural errors and irregularities in maintenance of accounts.

16. Lakshadweep Except for observations in para Nos. 1.1 to 1.9, 2.3.1, 2.3.1.1, 2.5, 2.6, 2.7, 3.1, 3.6, 3.7, 3.10, 3.11, 3.13, 6.1, 6.2, 6.4, 6.8.1, 6.10, 6.11, 7.1 and 13.0 all other paras remain unsettled for want of comments from the SIS. Unsettled observations pertain to irregularities in maintenance of accounts and other procedural errors.

17. Meghalaya Response of State is awaited in respect of observations in para Nos. 3.2.2, 4.3.3, 4.8.4(iii), 4.11.3, 5.2.2(b)(v), 5.3.1(iii), 5.3.1(v), 6.1.2, 6.3.1, Table No. 25(b), 6.6.1, 6.6.2, 7.4.3, 8.1.2, 8.1.6, 8.2.3(a), (b) & (c) and 9.3.1. The observations in the above paras involve procedural irregularities or improper maintenance of accounts.

18. Mizoram Observations in para Nos. 2.3.1, 2.3.3, 2.3.4, 3.2.4, 3.2.5(i), 3.3.1, 3.3.4, 3.5.2, 3.6.5, 4.3.2, 5.1, 5.1(a), 5.1(b), 5.1(c), 5.1(d), 5.3, 5.3(a), 5.7, 5.7(c), 5.8, 5.8(a), 5.9, 5.10, 5.11, 5.12, 5.13(a), 6.1.2, 6.1.3, 6.2, 6.3.1, 6.3.1(a), 6.3.2, 6.5.1(a), 6.5.1(b), 6.5.3, 6.6.1, 6.6.2, 6.6.3, 6.7.1, 6.8.2, 7.2, 7.2(c), 7.2(d), 7.2(e), 7.2(g), 7.3.2, 7.3.3(a), 8.1.2(a), 8.1.2(a)(ii), 8.2.1, 8.2.2, 8.3.1 & 8.3.3, 9.1.1(a), 9.1.1(b), 9.1.1(c), 9.1.1(e), 9.2.2(a) and 9.2.3 are pending for satisfactory response from State Implementation Society since 16 th July, 2008.

19. Nagaland All paras of phase-I study report have been settled except para No. 5.2.1. Response of the State is pending since 13 th April, 2010. The above para mainly pertains to improper maintenance of Cash Book.

20. Tripura Though many of the observations of IPAI have been settled, some observations involving diversion of SSA funds or serious irregularities are yet to be settled. Para No. 6.4.2Rs. 4.04 lakhs were diverted for construction of an office room in violation of provisions of FM&P Manual. 6.4.3An amount of Rs. 1.46 lakhs was spent in 2004- 05 and 2005-06 for construction of a computer room and toilet in the office of District Education Officer. This was not permissible under the provisions of FM&P Manual.

21. Para No. 6.4.6Rs. 16.20 lakhs spent from Management Cost over and above the budget allotment for construction of 36 CRCs. 6.4.6(a)Rs. 3.82 lakhs were spent by BDO, Rupaichari from Management Cost which is not permissible under the provisions of FM&P Manual. 8.5.3Computers and other related materials purchased at a cost of Rs. 4.63 lakhs were supplied to State Govt. officials. 10.7(b)Rs. 185.70 lakhs were spent in providing free textbooks to non eligible students. State Implementation Societies to take suitable action for settlement of the above observations. Tripura contd../-

22. Uttar Pradesh Para Nos. 2, 2.4.1, 2.4.3, 2.5.1, 2.5.2, 3.2, 3.3, 4.5.1, 4.5.2, 4.5.3, 5.1, 5.3.1, 5.3.3, 6.1, 6.2, 6.3, 7.1, 8.1, 8.2, 8.3, 8.4, 9.2 and 10.1 yet to be settled for want of satisfactory comments from State. Para 4.6 regarding transfer of Rs. 116614.46 lakhs to Finance Controller, Director of Education (Basic) Uttar Pradesh on estimated basis for salary of teachers continues to remain unsettled for want of satisfactory comments from the SIS.23

23. Suggestion: States may constitute a team consisting of a BRC, District FAO and Finance Controller of the State Implementation Society who should go into detail of each and every observation of IPAI and submit para- wise comments to MHRD with the approval of State Project Director.

24. Thank You