Audit Reports

Overview

This Report contains 16 Audit Paragraphs (excluding three general paragraphs) and two Performance Reviews and one Integrated Audit. According to the existing arrangements, copies of the draft audit paragraphs, draft performance reviews and draft Integrated Audit were sent to the concerned Secretary to the State Government by the Accountant General (Audit) with a request to furnish replies within six weeks. The Secretaries were also reminded for replies. Besides, a discussion was also arranged with the Chief Secretary to the State Government on the issues raised in the draft audit paragraphs, draft performance reviews etc., for effective inclusion of the views/comments of the Government in the Audit Report. Despite such efforts, replies were not received in respect of four audit paragraphs from the concerned Principal Secretaries/Secretaries to the State Government.

The Border Area Development Programme was initially started during the seventh Five-Year Plan with the main objectives of balanced development of border areas and also to meet the development needs of the people living in remote and inaccessible areas situated near the international borders. The programme was revamped in the Eighth Five Plan and further extended to those States having an international border with Bangladesh. During the ninth Five-Year Plan, the programme has been further extended to the states, which have an international border with Myanmar. The main objective of the Border Area Development Programme of speedy development of border area was not achieved to the desired extent due to inherent deficiency in planning and implementation of the programme. Diversion of substantial funds towards ineligible works/schemes and delays in release of funds adversely impacted the coverage of a number of critical sectors of the programme. Disproportionate allocation of funds to the border blocks deprived the border villages of an equitable share of the development programmes. Schemes were approved without giving priority for completion of on-going works/schemes on time with specific time schedule for completion which resulted in non completion of works/schemes. Delay in completion of works/schemes resulted in large scale cost over-runs. Quality of infrastructure created remain unverified with reference to technical estimates and designs due to non maintenance of the MBs. Besides, non-maintenance of assets is bound to prove detrimental to the life span of the assets already created under the programme. Monitoring, internal control/internal audit systems was inadequate leading to major irregularities and improprieties in drawal and utilisation of available funds.

Public Distribution System (PDS) is one of the most important functions of the State Government which helps in providing food security to a large number of consumers. The performance of PDS in the State with reference to the provision of PDS (Control) order, 2001 revealed that the State Government had made no efforts to evolve a well defined criteria for identifying BPL and AAY beneficiaries. The excessive issue of Family Ration Cards with inflated population has an adverse impact on the distribution of foodgrain to the PDS beneficiaries in the State. Effective distribution of timely allotted foodgrain to all consumers in the State at prescribed quantity and rates were not achieved due to misappropriation of a major portion of the foodgrain at the field level. There was inadequate/improper maintenance of godowns causing substantial storage losses of foodgrain. The PDS consumers were overburdened owing to higher selling price of foodgrain than the price approved by the Government. The Department failed to claim reimbursement of transportation charges claims under Hill Transport Subsidy Scheme. Monitoring was lax leading to improper documentation at every level and absence of mandatory inspection by departmental authorities. Due to absence of systemic quality test mechanism, quality of foodgrain distributed under PDS remained questionable. The Internal Control Mechanism was either dysfunctional or had little effect in exercising control.

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• Report No. 2 of 2010 - Performance and Financial Audit on Civil of Government of Mizoram

• Preface
• Overview
• Chapter 1 - Performance Review
• Chapter 2 - Audit of Transaction
• Chapter 3 - Higher and Technical Eduction Department
• Chapter 4 - Revenue Receipts
• Chapter 5 - Government Commercial and Trading Activities
• Appendices