Audit report recommends special inquiry
Nishikant Khajuria
JAMMU, Mar 9: Even after the lapse of more than a year, there has been no action on the Audit Inspection Report, which establishes financial irregularities and bungling worth crores of rupees in the Municipal Committee Katra.
Records made available to the audit party on the spot reveal that more than Rs 10 crores were unadjusted and unaccounted for the period 2012-13 to 2015-16 thus leading to embezzlement of the committee funds during this period.
As a major part of revenue consisting of GRs, issued for revenue realized, were not shown to the inspection party, the audit repot says that the figure of embezzled amount could have been much higher has the GRs for 2012-13, 2013-14 and 2014-15 been properly accounted for.
The non-seriousness of higher authorities towards serious objections raised by the audit party can be further gauged from fact the official reply on previous audit report for the year 2011-12 was also awaited.
The snap audit inspection on the accounts of MC Katra for the period of four years from April 2012 to March 2016 was conducted by the Local Fund Audit & Pensions, Jammu, in the month of July 2016. A report in this regard was submitted to the Chief Executive Officer, MC Katra in September 2016 and copies of the same were also forwarded to the Commissioner Secretary Housing & Urban Development Department, Director Local Fund Audit and Pensions, J&K Jammu and Director Urban Local Bodies Jammu.
The Inspection Report, prepared on the basis of information furnished and made available to the audit party, observes that the temporary advance of Rs 9,89,58,283, besides the cash balance of Rs 37,15,622 (total Rs 10,26,73,905) remains unadjusted/unaccounted thus leading to embezzlement of the committee funds.
During the course of audit, it was observed that the Municipal Committee had advanced huge amount to its officers and officials as temporary advance and Rs 989.58 lakh of which remained unadjusted. “Besides the closing balance, an amount of Rs 1, 55, 77,740 has been shown adjusted against the temporary advances. However, the adjustments made of Rs 1, 55, 77,740 are irregular and without any proper documentary evidence, hence they cannot be allowed as adjustment. The total amount thus involved comes to Rs 11, 45, 36, 023,” explains the audit report.
Further, the audit test check of records revealed irregular purchase of stores and stock, amounting to Rs 10.33 lakh. The items, including electric material and disinfectant etc, were purchased without calling quotations or ascertaining reasonability of the rates. The audit team found that there was no record of the items purchased and purpose of their purchase while the payments were made in cash.
Pointing out that as per Rule 8.28 of J&K Financial Code Vol-I, the physical verification of store articles is required to be got conducted at the close of financial year, the audit report reveals that no physical verification of store/stock accounts was made in order to know the recoveries/shortage and to take action accordingly.
Further, the audit report also observes that the committee was not depositing the full amount of GP Fund deducted from its employees. MC Katra had deducted Rs 18, 67,400 as GP Fund from its employees during the period 2012 to 2015 but deposited only Rs 10, 75,170. Besides there was an amount of Rs 4, 17,070 payable as on March 31, 2012. Thus the net amount payable as on March 31, 2015 was Rs 12,09,300.
The audit report has also highlighted some other irregularities in the MC Katra, such as non remittance of Labour cess, non affixation of Revenue Stamps, repair of vehicles and computers from open market, unauthorized expenditure, excess payment to contractors, improper execution of works, less remittance of recovery amount, no reconciliation of bank accounts with the cash book etc.
In its concluding remarks, the audit report says that keeping in view the non-cooperation of the staff in presenting the complete records for the financial year 2012-13 to 2014-15 and the serious irregularities observed by the inspection team from the incomplete records produced before it, the Director, Urban Local Bodies, Jammu is advised to order detailed /special inquiry in this case or refer the matter to the appropriate authority.
However, even after the lapse of more than 15 months, there has been no action on the Audit Inspection report for the reasons best known to the concerned authorities.
Pertinent to mention that the previous audit report had also made similar observations, like irregular purchase of material, irregular expenditures, payments made to contractors in absence of any vouchers, etc. The accounts of MC Katra were audited previously for the period up to March 2012 and it was found that the Executive Officer of the Committee had not paid any attention towards the objections raised by the audit party.
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