Reference to

Paragraph

Page

Preface

 ix

Overview

 xi

CHAPTER I

FINANCES OF THE STATE GOVERNMENT

1.1

1

1.2

3

1.3

5

1.4

9

1.5

14

1.6

18

1.7

19

1.8

21

1.9

24

1.10

26

1.11

29

1.12

30

CHAPTER II

ALLOCATIVE PRIORITIES AND APPROPRIATION

2.1

31

2.2

31

2.3

32

CHAPTER III

PERFORMANCE AUDIT

Social Welfare and Tribal Welfare Departments

Schemes for Development of Education for SC/ST

3.1

39

Irrigation and Command Area Development Department

3.2

56

Reference to

Paragraph

Page

Education (Higher Education) Department

3.3

72

Home (Police) Department

Modernisation of Police Force

3.4

86

Municipal Administration And Urban Development Department

Information Technology Audit of Hyderabad Metropolitan Water Supply and Sewerage Board

3.5

101

Panchayati Raj And Rural Development Department

Implementation of Fashion Designing Project

3.6

107

CHAPTER IV

AUDIT OF TRANSACTIONS

Fraud/misappropriation/embezzlement/losses detected in audit

4.1

111

Finance/Tribal Welfare/ Women Development, Child And Disabled Welfare Departments

Failure of Treasury Officers in exercising checks while admitting Bills

4.1.1

111

Health, Medical And Family Welfare Department

Payment of fraudulent claims by Director of Health on telecast of advertisement

4.1.2

113

Excess payment; wasteful/infructuous expenditure

4.2

114

Agriculture And Co-operation Department

Ineffective implementation of Green Village Model Demo Project

4.2.1

114

Finance Department

Payment of excess/inadmissible claims on foreign travel

4.2.2

116

Irrigation And Command Area Development Department (Projects Wing)

Unfruitful expenditure on diversion of road

4.2.3

117

Unfruitful expenditure due to non-completion of work

4.2.4

118

Reference to

Paragraph

Page

Municipal Administration And Urban Development Department (Public Health Wing)

Excess payment to a contractor

4.2.5

119

Unfruitful expenditure on an incomplete Sewage Treatment Plant

4.2.6

120

Panchayati Raj And Rural Development Department

Unfruitful expenditure on a protected water supply schemes

4.2.7

121

Delay in completion of check dams

4.2.8

122

Avoidable extra expenditure and unproductive expenditure on Special Coir Project

4.2.9

123

Payment of inflated rates in implementation of ‘Computer in Education Project’

4.2.10

124

Transport, Roads And Buildings Department (Roads wing)

Unfruitful outlay on an incomplete bridge

4.2.11

126

Violation of contractual obligations, undue favour to contractors and avoidable expenditure

4.3

127

Irrigation & Command Area Development And Transport, Roads And Buildings Departments (Irrigation, Roads, Buildings Wings)

Unintended benefit to contractors

4.3.1

127

Irrigation And Command Area Development Department (Irrigation Wing)

Loss of interest due to undue financial assistance to a contractor

4.3.2

128

Undue benefit to contractor

4.3.3

129

Avoidable extra payment to contractor

4.3.4

130

Irrigation And Command Area Development Department (Projects Wing)

Avoidable payment of surcharge on power bills

4.3.5

131

Avoidable expenditure due to non-installation of capacitors

4.3.6

132

Municipal Administration And Urban Development Department (Visakhapatnam Urban Development Authority)

Loss of revenue due to adoption of incorrect rates for sale of plots

4.3.7

133

Reference to

Paragraph

Page

Transport, Roads And Buildings Department (Roads & Buildings wing)

Doubtful viability of roadwork and avoidable extra expenditure

4.3.8

134

Youth Advancement, Tourism and Culture Department (Sports Authority of Andhra Pradesh)

Undue favour to a firm in Games Village Project

4.3.9

135

Idle investments/idle establishments/blocking of funds/ delays in commissioning of equipment; diversion/ misutilisation of funds

4.4

137

Animal Husbandry and Fisheries and Transport, Roads and Buildings (Ports) Departments

Deficient planning in construction of Machilipatnam Fishing Harbour

4.4.1

137

Higher Education Department
(Potti Sreeramulu Telugu University)

Unproductive expenditure on construction of buildings

4.4.2

138

Irrigation And Command Area Development Department (Projects Wing)

Blocking up of funds due to non-completion of a pilot project

4.4.3

139

Non-creation of irrigation potential

4.4.4

140

Revenue Department (District Gazetteers)

Nugatory expenditure on pay and allowances of idle staff

4.4.5

141

Social Welfare (Tribal Welfare) Department

Non-implementation of Minor Irrigation Scheme in Tribal areas

4.4.6

142

Women Development, Child Welfare And Disabled Welfare Department

Delay in construction of Government Children Home

4.4.7

143

Youth Advancement, Tourism and Culture Department (Sports Authority of Andhra Pradesh)

Unproductive expenditure on cycling equipment and loss on defective equipment

4.4.8

144

Reference to

Paragraph

Page

Regularity issues and others

4.5

145

Environment, Forests, Science And Technology Department (Forest  Wing)

Loss due to non-collection of Net Present Value

4.5.1

145

Planning/Rural Development Departments

Irregularities in implementation of Member of Parliament Local Area Development Scheme

4.5.2

146

School Education Department

Release of grant-in-aid to ineligible schools

4.5.3

148

General

4.6

149

Follow-up on Audit Reports – Non‑submission of Explanatory (Action taken) Notes

4.6.1

149

Action taken by Government

4.6.2

150

Action not taken on recommendations of the Public Accounts Committee

4.6.3

151

Lack of response to Audit

4.6.4

151

CHAPTER V

INTERNAL CONTROL MECHANISM AND INTERNAL AUDIT

Health, Medical and Family Welfare Department

Internal Controls in Medial Education Department

5.1

153

Reference to

Paragraph

Page

1.1

Part-A

Structure and Form of Government Accounts

1.1

169

1.1

Part-B

Layout of Finance Accounts

1.1

170

1.1

Part-C

List of terms used in Chapter I and basis for their calculation

1.2

171

1.2

Outcome indicators of the State’s Own Fiscal Correction Path

1.2 & 1.2.1.2

172

1.3

Summarised financial position of the Government of Andhra Pradesh as on 31 March 2007

1.2 &

1.7

173

1.4

Time Series data on State Government Finances

1.2 &

1.7

174

1.5

Abstract of Receipts and Disbursements for the year 2006-07

1.2

176

1.6

Sources and Application of Funds

1.2

179

1.7

Accounts due by autonomous bodies covered under Sections 19(2), 19(3) and 20(1) of the Act

1.5.6

180

1.8

Cases of Misappropriation reported to Audit

1.6

181

1.9

Departmentally managed commercial and quasi-commercial undertakings for which proforma accounts upto 31 March 2007 have not  been received

1.7.1.1

182

2.1

Arrears in which major savings occurred

2.3.1

183

2.2

Statement of various grants/appropriations where expenditure fell short by more than Rs one crore and more than 10 per cent of the total provision

2.3.1

184

2.3

Excess over provision relating to previous years requiring regularisation

2.3.2

185

2.4

Excess over grants/appropriations

2.3.2

186

2.5

Unnecessary Supplementary Grants

2.3.3

187

2.6

Excessive/unnecessary reappropriation of funds (cases where injudicious reappropriation of funds proved excessive or resulted in savings by over Rs 5 crore)

2.3.4

188

2.7

Anticipated savings not surrendered

2.3.5

191

2.8

Amount surrendered on the last day of

March 2007

2.3.6

193

Reference to

Paragraph

Page

2.9

Surrenders in excess of actual saving/even without saving

2.3.7

195

2.10

Expenditure without provision (Rs 50 lakh and above)

2.3.8

195

2.11

Statement showing the details of non-adjustment of Abstract Contingent bills

2.3.10

196

2.12

Statement showing department-wise unreconciled expenditure during the year 2006-07

2.3.11

197

2.13

Parking of Central funds

2.3.13

198

3.1

Scheme-wise details of budget, expenditure etc. for Educational development of SC/ST

3.1.6.2, 3.1.8, 3.1.9, 3.1.10 & 3.1.12.1

199

3.2

Lack of uniform procedure in implementation of Book bank scheme

3.1.10

201

3.3

Audit findings in the test-checked districts under Book bank scheme

3.1.10

201

3.4

Coaching and allied schemes -Year-wise details of number of students enrolled and passed

3.1.14

202

3.5

Brief description of the projects

3.2.6

203

3.6

Project-wise packages grounded and their progress

3.2.8

204

3.7

Source-wise details of Actual Receipts

3.3.6.2

205

3.8

Details of outstanding Advances as of March 2007

3.3.6.5

205

3.9

Success rate in Degree/PG courses conducted by Andhra University

3.3.7.3

206

3.10

Teacher -student Ratio (Andhra University)

3.3.7.5

206

3.11

Workload of Professors/Readers during the period 2004-05 to 2006-07 in Andhra University

3.3.7.6

207

3.12

Delays in submission of Annual Action Plans (MOPF) to Ministry of Home Affairs

3.4.6.1

207

3.13

Status of Non- residential buildings under Modernisation of Police Force

3.4. 8.1

207

3.14

Non-providing of vehicles (four wheelers) to police stations

3.4.9.1

208

3.15

Approximate cost for replacement of defective meters with new meters

3.5.4.1

208

3.16

 Bills not generated at all

3.5.4.2

209

Reference to

Paragraph

Page

4.1

Procurement of motorised ratts by DRDA, East Godavari District for distribution to Swarozgaries

4.2.9

209

4.2

A)  Statement showing the works sanctioned, completed and not yet completed under MPLAD funds in six districts              

4.5.2

210

B) Statement showing the details of works sanctioned but not commenced

4.5.2

210

4.3

Statement showing the ineligible works under MPLAD Scheme

4.5.2

211

4.4

Statement showing the irregular diversion of MPLAD Scheme funds to other schemes

4.5.2

211

4.5

Statement showing MPLAD Schem funds  invested in FDRs

4.5.2

211

4.6

Statement showing number of paragraphs in respect of which Explanatory Notes had not been received for specific paras from Government (as of 31 July 2007)

4.6.1

212

4.7

Status of outstanding Recommendations of the PAC as of  31 July 2007

4.6.3

213

4.8

Year-wise break-up of Inspection Reports/ Paragraphs

4.6.4

213

4.9

Department wise details of outstanding Inspection Reports and Paragraphs as on 30 June 2007

4.6.4

214

5.1

Statement showing variation of release of funds under APSIAF

5.1.7.6

215

5.2

Statement showing the short supply of drugs by APHMHIDC to five test-checked hospitals

5.1.8.1

215

5.3

Statement showing the balances available with the Hospitals/Colleges out of Maintenance grant released

5.1.8.3

216

5.4

Statement showing the vacancy position in DME

5.1.9

216

Glossary

217