6th Heavens Project

8/4/2019 6th Heavens Project

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AKNOWLEDGEMENT

6th heaven, wants to express their gratitude toward

all the employees of AG office who gave their

precious time and co-operate us in making our

project on the functioning of financial department.

We also want to pay our

thanks to our honorable faculty Mr. Amit Shekher

Tirky who gave us this opportunity. Only because of

this we come to know how financial department of

any organisation actually works.

6th

heaven



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TABLE OF CONTENTS

SERIAL NO. TOPIC NAME PAGE NO.

1 ACKNOWLEDGEMENT 1

2 OBJECTIVE 3

3 INTRODUCTION 4

4 FUNCTION OF AG OFFICE 10

5 FINANCE DEPARTMENT 14

6 FINANCE OF STATE GOVERNMENT 28

7 CONCLUSION 31

8 RECOMMENDATION 34

9 BIBLEOGRAPHY 37

10 ANNEXURE 38



3

OBJECTIVES

TO KNOW THE TOOLS AND TECHNIQUES USED BY

FINANCE DEPARTMENT OF A G OFFICE

TO KNOW ALL ABOUT THE FUNCTIONING OF DIFFERENT

SUB DEPARTMENT OF FINANCE IN AG OFFICE

TO KNOW THE HEIRARCHY OF AG OFFICE

TO KNOW THE WELL EQUIPPED TERM FINANCE AS PER

THE AG OFFICE EMPLOYEES

TO KNOW THE PERCEPTION AND PREVIEW OF AG OFFICE

TO GIVE CONCLUSION AND SUGGESTION BASED ON THE

ON PROJECT REPORT



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INTRODUCTION

The Finance Department is responsible for the financial functions

and activities of the organization and for the administration of the

organization‟s financial policy.

As we have to make project of function of finance department of

any organisation and AG off is the department of government that

watch the financial function of every government department. So

we have decided to go for AG office.

Accountant General, Jharkhand functions under theComptroller & Auditor General of India (C&AG) who is the Headof the Indian Audit & Accounts Department. The Comptroller &Auditor General of India is a Constitutional Authority appointed bythe warrant of the President of India. By virtue of the provisions ofGovernment of India (Audit & Accounts) Order, 1936 as adoptedby the Government of India (Provisional Constitution) Order, 1947

and Article 149 of the Constitution of India, the C&AG had thepower to frame rules and give directions in all matters pertainingto the audit of accounts for which he was responsible. Thefunctions of the Comptroller & Auditor General of India arederived mainly from the provisions of Article-149 to 151 of theConstitution of India.

The C&AG's (Duties, Powers and Conditions of Service) Act,

1971 under the Articles 148(3) and 149 of the Constitution waspassed by Parliament in 1971.

The C&AG's DPC Act, 1971 deal with the responsibilities ofthe C&AG in relation to Compilation of Accounts of the Union, theStates and Union territories with Legislatures.



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Under the provisions, the C&AG compiles the Accounts of theStates, keeps such accounts in relation to compiling of theAccounts of the States as may be necessary and preparesAppropriation Accounts & Finance Accounts every year.

The Appropriation & Finance Accounts are signed by the C&AGof India and presented to the Governor of the State for being laidon the table of the State Legislature.

The C&AG‟s (DPC) Act, 1971 defines the duties of the C&AG inrelation to the audit of the accounts and the transactions relatingto the Consolidated Fund, Contingency Fund and the PublicAccounts of the Union, the States and Union Territories. C&AG isalso responsible for the audit of Local Bodies (i.e. Panchayati RajInstitutions and Urban Local Bodies) under the provisions of someof the State Acts and provides technical and administrativeguidance for Accounting & Audit functions in all States.

Ours is one of the oldest offices in the country. On the formation

of a new „Province of Bihar and Orissa‟ with its capital at Patna, in April 1912, following the reversal of “Partition of Bengal”, theHeadquarters of the Government was temporarily set up atRanchi, for want of accommodation in Patna. The office of theAccountant General, Bihar and Orissa started functioning from20th May 1912 at Ranchi , when Mr. W. Alder, ICS assumedcharge as Accountant General, Bihar and Orissa. Surplus stafffrom the erstwhile office of “Accountant General, East Bengal &

Assam, Dacca ”, optees from Shillong office (Capital of Assam)

and Calcutta office (Capital of Bengal) were brought to Ranchi inApril-May 1912, and they constituted the initial staff for the newlyformed office. The office was accommodated in the tiledhutments in Doranda, then a Military cantonment. The officecontinued to remain in these hutments till 1966, when theconstruction of a new multi-storied building, adjacent to these



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hutments was completed. However some sections continued tofunction from these hutments as late as 1999-2000.

1.2 Consequent to the creation of a separate “ Province of Orissa” in April, 1936, the Orissa office was separated and eventuallyshifted to Bhubaneshwar in April, 1956.

1.3 In order to ensure expeditious settlement of personal claims ofState Government officers, the Bihar office was bifurcated in

February 1973, into two distinct offices viz.: -

(i) Accountant General-I, Bihar with Headquarters at Ranchi and

(ii) Accountant General-II, Bihar with Headquarters at Patna .

The existing office of Deputy Accountant General (Project) inPatna was also placed under the Accountant General (II), Bihar,Patna.

1.4 With the restructuring of the Indian Audit & AccountsDepartment, the functions relating to “Audit” were separated from

those of Accounts & Entitlements and four separate offices,started functioning from March, 1984, viz.: -

(i) Accountant General (A&E)-I, Bihar, Ranchi,

(ii) Accountant General (A&E)-II, Bihar, Patna,



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(iii) Accountant General (Audit)-I, Bihar, Patna,

(iv)Accountant General (Audit)-II, Bihar, Ranchi

1.5 The post of Accountant General (A&E) I, Bihar, Ranchi wasupgraded to the level of “Principal Accountant General” in July,1985. The office of the Accountant General (A&E)I, Bihar, Ranchiwas subsequently re-named as the “Office of the PrincipalAccountant General(A&E)I, Bihar, Ranchi in March, 1990.

1.6 On 15th of November 2000 the State of Bihar was bifurcated

into Bihar and Jharkhand with Ranchi as the capital of the latter.As a result the offices were renamed as Offices of PrincipalAccountant General (A&E) I, Bihar & Jharkhand, Ranchi,Accountant General (A&E) II, Bihar & Jharkhand, Patna,Accountant General (Audit) I, Bihar & Jharkhand, Patna andAccountant General (Audit) II, Bihar & Jharkhand, Ranchi.

1.7 On 1st April 2003 the name of the office was changed yetagain and it became the office of the Accountant General (A&E),Jharkhand, Ranchi.

Situation Post-Bifurcation of the State of Bihar

As per Bihar State Reorganisation Act, 2000, on 15.11.2000 a

new state of Jharkhand came into existence with Ranchi ascapital.



8

This bifurcation resulted in the bifurcation of A.G. Offices also,located in erstwhile Bihar. With effect from 15.11.2000 the officesof the Principal Accountant General/Accountant General, Biharwere renamed as Principal Accountant General/Accountants

General, Bihar & Jharkhand which were further renamed asAccountant General, Jharkhand and Accountant General, Biharrespectively wef, 1.4.03.

In the Accountant General‟s office the Account work wasbifurcated. Firstly the accounts of combined Bihar were closed by14.11.2000 and from 15.11.2000 accounts were compiled forJharkhand and Bihar separately. From December onwards, theaccounts of Jharkhand were transferred on VLC dispensing withthe parallel manual compilation. From April 2001 accounts, Biharaccounts were put on VLC dispensing with manual compilation.

On transfer of pension authorization work of Non Gazetted

staff of Jharkhand State from Patna to Ranchi in Feb‟03, thisoffice started dealing with the pension authorization of suchpensions w.e.f, 03.02.2003. G.E and Gazetted pension work ofthe dignitaries/ officers/employees of Jharkhand State wereshifted from Patna to Ranchi in two batches, 15th September,2006 and 15th December, 2006.

AG (Audit) II, Bihar and Jharkhand was renamed asAccountant General (Audit), Jharkhand, Ranchi with effect from

22 July 2002 on re-allocation of work between the Accountants

General (Audit) stationed at Patna & Ranchi. The staff was

reallocated between both the audit offices with effect from 17 July



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2003 and in the case of LAD, with effect from 01 October 2003.

Prior to re-organization of Audit offices in Bihar and Jharkhand,

the responsibility of preparation of Audit Report (Civil) and Audit

Report (Commercial) was with the Accountant General (Audit)-IBihar, Patna and the Audit Report on Revenue Receipts was the

responsibility of Accountant General (Audit)-II Bihar, Ranchi.

However, 2001-2002 onwards, the responsibility of preparation of

all the three reports for Bihar has been entrusted to Accountant

General (Audit) Bihar, Patna and that of Jharkhand to Accountant

General (Audit) Jharkhand, Ranchi.

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10

FUNCTION OF A.G OFFICE

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Finance is the science of funds management. The general areas offinance are business finance, personal finance, and public finance.Finance includes saving money and often includes lending money.The field of finance deals with the concepts of time, money and riskand how they are interrelated.

Functions (Accounts)

The functions of the Accountant General (A&E) Jharkhand,

Ranchi are: -

1. Preparation of Monthly Civil Accounts, Annual AppropriationAccounts and Finance Accounts of Jharkhand State andassistance to the State Government in preparation of itsAnnual Budget Estimates.

2. Maintenance of detailed Accounts of loans sanctioned by theCentral Government to Jharkhand, loans sanctioned by theState Government to Corporations and companies and long-

term loans and advances granted by the State Governmentto its gazetted employees.

3. The cadre control of the Divisional Accountants in the Statesof Bihar & Jharkhand. Consequent upon re-organisation theerstwhile State of Bihar into Bihar & Jharkhand the Cadre ofDivisional Accountants cadre is required to be bifurcated

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11

between Jharkhand and Bihar State w.e.f 01.05.2007 as perthe cadre separation policy communicated by Headquarters.

4. Office Residuary works of the Central Government.5. Coordination of work amongst the Accountants General of

Jharkhand.6. Maintenance of Estate and control of CGHS (Captive to the

Department at Ranchi.)7. In pursuance of Headquarters office direction the Gazetted

Entitlement work and Gazetted Pension work of the Officersof Government of Jharkhand State have been started w.e.f.15.12.2006. At the same time the work of maintainingaccounts of Long Term Advances (LTA) of all Gazetted

Officers of Government of Bihar State have been transferredto the O/o the Accountant General (A&E), Bihar, Patna on11.12.2006.

8. On transfer of pension authorization work of Non Gazettedstaff of Jharkhand State from Patna to Ranchi in Feb‟03, thisoffice started dealing with the pension authorization of suchpensions w.e.f, 03.02.2003

Functions (Audit)

The functions of the Accountant General (Audit) Jharkhand,Ranchi are: -

1. Preparation of Audit Reports (Revenue Receipts, Civil &Commercial) of Comptroller & Auditor General of India forGovernment of Jharkhand.

2. Contribution of material for inclusion in the Audit Reportsrelating to the Union Government on Direct & Indirect Taxes.



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FINANCE DEPARTMENTS

The Finance and audit has been conducted in accordance with the

Auditing Standards prescribed for the Indian Audit and FinanceDepartment. Audit samples have been drawn based on statistical

sampling methods as well as on the basis of judgment. The audit

conclusions have been drawn and recommendations made, taking into

consideration the views of the Government.

A sound internal financial reporting system and the availability of

relevant and reliable information significantly contributes to efficient

and effective governance by the State Government. Compliance withfinancial rules, procedures and directives as well as the timeliness and

quality of reporting on the status of such compliances is thus one of the

attributes of good governance. The reports on compliance and controls,

if effective and operational, assist the State Government in meeting its

basic stewardship responsibilities, including strategic planning and

decision making. This Chapter provides an overview and status of the

State Government’s compliance with various financial rules, procedures

and directives during the current year.



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HEIRARCHY OF A.G OFFICE

Finance Audit comments on the performance of some Government

departments and programmes as well as the working of the Disaster

Management Department are given below:

1. FOREST AND ENVIRONMENT DEPARTMENT

The Department of Forest and Environment (DoF&E), Government of

Jharkhand is responsible for implementation of the National Forest

Policy, 1988 through various schemes. Schemes for maintenance and

development of natural forests were undertaken by the department,but these resulted only in limited success in the State due to

irregularities in their implementation such as improper selection of

sites, plantation of banned species, high mortality rate in the

plantations etc. Working Plans of some divisions were not prepared.

ACCOUNTENTGENERAL

SER. DAG

DAG

SER. A.O

A.O

SER. ACCOUNTENT

ACCOUNTENT



15

The budget estimates were not realistic and the funds available were

not fully utilised. While sizeable areas of forest land were transferred

for non-forest purposes, there was no concerted effort to compensate

the losses through compensatory afforestation schemes, for which

funds were available. The Net Present Value of transferred forest land

and the cost of compensatory afforestation were neither demanded

from user agencies nor realised. Adequate land for compensatory

afforestation was not made available to the department by the user

agencies. The internal control system and the monitoring mechanism

were ineffective.

During 2004-09, out of the total allotment of Rs 927.84 crore,

Rs 119.01 crore remained unutilised. Despite persistent savings

under the Plan head, provision of supplementary grants of Rs

60.48 crore were made.

Expenditure of Rs 2.35 crore was incurred on sites and plots

not approved by Government.

Plantations in 10,918.29 hectares, shown to have been executed

at a cost of Rs 14.58 crore, were doubtful.

Introduction

The National Forest Policy, 1988, envisages forest and tree coverage of

33 per cent of the total geographical area of the country by 2012, for

maintaining environmental stability. The State of Jharkhand, spanning

over an area of 79,714 square kilometres (sq Km), has a forest cover of

23,605.47 sq Km, (29.61 per cent ) of its geographical area. Afforestation

is taken up in the State under various State and Centrally sponsored

schemes with the objective of improving the productivity of forests,

preserving areas rich in biodiversity, motivating the local community to



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plant more trees and optimising the use of land resources. The

Department of Forest and Environment (DoF&E), Government of

Jharkhand is responsible for management of forests, checking

soil erosion, water conservation, conservation of wild life and pollution

control, including restoration of ecological balance.With a view to conserve the forests, minimise adverse environmental

impact of developmental activities and threats to ecological stability, the

Central Government enacted the Forest (Conservation) Act, 1980. The

Act aims to regulate the indiscriminate diversion of forest land for non-

forest uses and to maintain a logical balance between the developmental

needs of the country and the conservation of natural heritage. The cost of

conservation measures, realised in the form of Net Present Value (NPV),

cost of Compensatory Afforestation (CA) etc. are borne by the useragencies. The amounts so realised are to be placed under the

Compensatory Afforestation Fund Management and Planning Authority

(CAMPA).

Scope and methodology of audit

Performance audit was conducted between August 2008 and March

2009 in 331 out of 62 Forest Divisions, two2 out of 32 offices of

Conservators of Forest, one3 out of three offices of Additional PCCsF

and one out of three offices of the PCCsF for the period from 2004-05 to

2008-09. Samples with respect to the divisions were selected on random

basis. Data/information collected through proformae and questionnaires

from all test-checked divisions and other offices were also analysed. An

entry conference was held with the Secretary, DoF&E on 9 January

2009. The Secretary, DoF&E was apprised of the audit objectives, scope

and methodology of the review. Audit findings were reported to the

Government in June 2009. An exit conference was held on 18 November2009 with the Secretary, DoF&E, who agreed with the observations

made in the review and assured that appropriate corrective measures in

respect of the deficiencies pointed out therein would be taken.



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Financial position of the Department

The allocation of funds and expenditure incurred during 2004-09 were

as given in Table.

YEAR Budget

provisions(plan+Nonplan)

Supplementary

grant

TOTAL Expenditure saving % o

savin

1 2 3 4 5 6 7

2004-05 176.75 5.73 182.48 159.63 22.85 13

2005-06 172.96 10.33 183.29 162.64 20.65 11

2006-07 196.57 8.77 205.34 176.27 29.07 14

2007-08 184.73 9.67 194.4 169.93 24.47 13

2008-08 196.83 25.98 222.81 200.84 21.97 10

TOTAL 927.84 60.48 988.31 119.01Source: Budgets of the State Government and Finance Accounts.



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2. HEALTH, MEDICAL EDUCATION AND FAMILY WELFARE

DEPARTMENT

National Rural Health Mission

The National Rural Health Mission was launched by the Government of

India in April 2005. It aimed at strengthening rural health care

institutions by provision of infrastructure facilities and funds. A review

of the implementation of the National Rural Health Mission in the State

revealed improvements in flow of funds to rural health institutions andbetter health awareness among the rural population. However,

deficiencies like absence of a Perspective Plan, lack of surveys,

insufficient infrastructure, lack of community participation, inadequate

budgetary provisions, insufficient medicines, equipment and human

resources were noticed .

(Inside view of dilapidated wards of PHC, Barharwa (Sahebganj), PHC, Bharno (Gumla) and

APHC, Kenduadih (Dhanbad) L to R)

The State Health Mission was not constituted. The Jharkhand

Rural Health Mission Society, though constituted, failed to

integrate the five societies set up for implementation of various

disease control programmes.



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Baseline surveys, essential for identifying the health care needs

of the people, were not conducted. The Perspective Plan and

village, district and block level Annual Plans were not

prepared, which defeated the aim of decentralized planning.

Twenty nine to 64 per cent of available funds remained

unutilized during 2005-09.

Introduction

The National Rural Health Mission (NRHM) was launched by

Government of India (GOI) in April 2005 throughout the country with aspecial focus on 18 States. The Mission aimed at providing accessible,

affordable, accountable, effective and reliable health care facilities in

rural areas by reducing the infant and maternal mortality rates,

stabilizing the fertility rate of the population and preventing and

controlling communicable and non-communicable diseases including

locally endemic diseases by involving the community in planning

and monitoring. The key strategy of the Mission was to bridge gaps in

health care facilities, facilitate decentralised planning in the healthsector, provide an overarching umbrella to the existing programmes of

Health and Family Welfare including Reproductive and Child Health II

and various disease control programmes. It sought to provide health to

all in an equitable manner through increased outlays, horizontal

integration of existing schemes, capacity building and human resource

management. It addressed the issue of health in the context of a sector-

wise approach encompassing sanitation and hygiene, nutrition etc. as

basic determinants of good health and advocated convergence with

related social sector departments such as Women and Child

Development, AYUSH52, Panchayati Raj etc.



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(APHC and HSC, Karamdih, Dumka were functioning with a cot and under a tree – U to D)

Deficient basic infrastructure posed serious challenges to the success of NRHM.



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3. HOME DEPARTMENT

Modernisation of Police Force

The scheme of Modernisation of Police Force was launched to augmentthe operational efficiency of the State police force to effectively face

the emerging challenges to internal security. Implementation of the

scheme in the State suffered mainly due to deficient planning and

inadequate monitoring. The Perspective Plan was not prepared and

Annual Action Plans were delayed. Construction of non-residential and

residential buildings was not given adequate priority and funds were

blocked with the Jharkhand Police Housing Corporation Limited.

Inadequate infrastructure and facilities in police stations adversely

affected field policing. There were large scale deficiencies in all sectors

viz., housing, mobility, weaponry, communication, manpower

management etc.

The Perspective Plan was not prepared by the State Government.

Annual Action Plans were submitted and approved with delays up to

111 days, leading to interruption in Plan execution. The scheme funds

could not be fully utilised in the years of sanction due to belated

releases by the Government of India. Inflated utilization certificates

worth Rs 25.31 crore were sent to Government of India. In addition,

there was a total diversion of Rs 9.57 crore from the approved Plans.

Priority was not given to construction of quarters and police station

buildings. Against the requirement of 70 per cent, only 20 per cent of

the total Plan outlay was provided for this purpose. The satisfaction

level in respect of accommodation was merely 12 and five per cent inthe case of upper and lower subordinates respectively.



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Introduction

Government of India (GOI) introduced the scheme of Modernization of

Police Force in 1969 to provide additional infrastructure to the State

police for augmenting its operational efficiency to face the emergingchallenges to internal security effectively. GOI reviewed the scheme

from time to time and in February 2001, a revised scheme involving a

substantial outlay of Central assistance was started for a 10-year period

starting from 2000-01 to make good the deficiencies in basic police

infrastructure as identified by the Bureau of Police Research and

Development (BPR&D). The major components covered in the scheme

were mobility, communication, weaponry, training, police housing and

building, forensic science and computerization.

Scope and methodology of audit

The performance audit of the scheme for the period 2004-09 was

conducted (February-July 2009) by test-checking the records in the

offices of the Secretary, DG&IGP, ADG (Special Branch), IG (Provision),

IG (Training), SP (Wireless) and Director (FSL). Besides, the records of

SPs in six112 out of 24 districts, one113 out of four training centres,three114 out of 10 Jharkhand Armed Police (JAP) battalions and one

(IRB-2) out of three India Reserve Battalions (IRB) were also test-

checked after selection through the simple random sampling method.

An entry conference was held with the Secretary, Home Department

and DG&IGP, Jharkhand on May 2009 during which the audit

objectives, criteria and methodology were discussed. The audit

findings, conclusions and recommendations were discussed with the

Chief Secretary in an exit conference held in November 2009. However,response of the Government to the audit observations was not

received (December 2009).



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4. ENERGY DEPARTMENT

Working of Jharkhand Renewable Energy Development Agency

Introduction

The Jharkhand Renewable Energy Development Agency (JREDA) was set

up in February 2001 under the Energy Department, Government of

Jharkhand to explore, exploit, promote and popularise new and

renewable energy sources through planning, investigation, research

and development, field testing and demonstration. The objective of

JREDA was to encourage the use of renewable energy sources by

offering incentive, to users in the form of subsidy.

Exploring of renewable sources of energy in the State assumes

importance as only 10 and 24.3 per cent of rural and other households

respectively are electrified in the State139. Besides, villages are spread

far and wide and fall in hilly and inaccessible regions where non-conventional sources of energy emerge as a viable alternative to meet

the energy requirements.

For promoting the use of non-conventional and renewable energy,

Government of India set up the Department of Non-Conventional

Sources of Energy in 1982 which was subsequently made the Ministry

of New and Renewable Energy (MNRE) in October 2006. MNRE

implements its programmes through various State agencies. Out of thevarious programmes of MNRE, JREDA was implementing the

programmes like Solar Photovoltaic, Remote Village Electrification,

Solar Thermal, Biogas etc. A review of the working of JREDA for the

period 2002-09, was conducted during January to April 2008 and

February 2009 through test check of its records to examine its



25

performance and financial management. In order to verify certain

aspects of the working of JREDA, joint field verification in seven villages

of two140 districts was also carried out.

Annual Accounts and Reports

According to paras 12, 22 and 23 of the Articles of Association, the

Annual Accounts of JREDA were to be audited by a Chartered

Accountant followed by supplementary audit by the Comptroller and

Auditor General of India or his\ authorised Chartered Accountant.

Annual Accounts and Reports, duly approved by the Managing

Committee were to be submitted to the State Government every year by

the end of June. Though, the accounts for the period 2002-06 wereprepared by Chartered Accountants, approval of the Managing

Committee and submission to the Government was not ensured. This

resulted in denying the Government access to the accounts, an important

management aid to control and monitor the performance of JREDA. No

accounts had been prepared thereafter.



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5. HOUSING DEPARTMENT

Din Dayal Awas Yojna

Introduction

The Government of Jharkhand launched (June 2004) the Din Dayal

Awas Yojana (DDAY) as per the guidelines of the Centrally sponsored

Indira Awas Yojana (IAY). DDAY aimed at construction of five lakh

houses (two lakh in 2004-05 and three lakh in subsequent years) for all

categories of rural people below the poverty line (BPL). DDAY wasfinanced by availing a loan of Rs 500 crore from the Housing and Urban

Development Corporation (HUDCO) at a floating rate of interest of

seven per cent per annum. Houses were to be constructed by the

beneficiaries on their own land with financial assistance of Rs 25,000 for

each beneficiary and were to be completed within three months.

Allottees of IAY were not eligible for DDAY. The Jharkhand State

Housing Board (JSHB) was to function as the nodal agency in the case

of DDAY. Block Development Officers were made responsible for

implementation of the scheme.

Scope and methodology of Audit

In order to assess the achievement of objectives, records of the Rural

Development Department, the Housing Department, the Jharkhand

State Housing Board (JSHB), four160 out of 22 districts and 13

blocks161 out of 59 blocks in the four test-checked districts and four

DRDA offices were scrutinized for DDAY (2004-09) between April and

June 2009. The audit findings are discussed in the succeeding

paragraphs.



27

Finance of state government

Summary of Current Year’s Fiscal Transactions

Table 1 presents the summary of the State Government‟s fiscaltransactions during the current year (2008-09) vis-à-vis theprevious year while provides details of receipts anddisbursements as well as the overall fiscal position during thecurrent year.



29



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Conclusion


Implementation of various afforestation schemes/activities met with

limited success in the State due to non-preparation of Working Plans,

non-adherence to the provisions made under Financial Rules,

irregularities in implementation of afforestation schemes, improper

selection of sites, plantations of banned species and high mortality rates

in the plantations. The available funds were not being fully utilised andthe supplementary grants remained totally unutilised. The fuelwood and

fodder plantations scheme was a picture of neglect as no plantations was

undertaken during 2004-05 and 2005-06. While a sizeable amount of

forest land was transferred for non-forest purposes, there was no

concerted effort to compensate the losses through formulation and

implementation of compensatory afforestation schemes for which funds

were available. Net Present Value and cost of compensatory

afforestation were not always raised and realised. The internal control

system and monitoring were not effective.

2. HEALTH, MEDICAL EDUCATION AND FAMILY

WELFARE DEPARTMENT

The goal of National Rural Health Mission for providing quality andadequate health services remained unrealised due to non-assessment

of available and required health care services and facilities through

proper baseline surveys; non-integration of programmes at the State

and district levels; lack of effective community participation;



31

insufficient infrastructure; inadequate budgetary provision; shortage of

medicines, equipment and violation of norms of procurement and

inadequate human resources. Non-functioning/inadequate functioning

of mobile medical units affected the outreach of the programme and

the goal of improving accessibility to health care services. Reproductive

health care services were at a nascent stage in the State. The targets

under the different national disease control programmes were

achieved only partially due to incomplete coverage. The Integrated

Disease Surveillance Project was yet to be implemented. The

department did not have an internal audit wing and a vigilance wing.

There was no mechanism for redressal of grievances and evaluation of

feedback.

3. HOME DEPARTMENT

The pace of implementation of the modernisation scheme for the State

Police Force was far from satisfactory. The Perspective Plan was not

prepared. Ad hoc Annual Plans were prepared and submitted late,

leading to delays in implementation. Housing facilities for police

personnel were not adequate. Police stations/out posts/pickets lacked

basic infrastructural facilities and security arrangements. Mobility

deficiency was high. Average reaction and response time was

unsatisfactory. The striking ability of the police force was compromised

due to dependence on outdated weapons and shortage of security

equipment. In crime investigation, the role of forensic science was

minimal. Adequate training was not provided to police personnel.

Computerisation and communication network was ineffective. Therewas absence of monitoring. All the above indicated that the main

objective of ‘Modernisation of Police Force’ scheme was far from being

achieved.



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JREDA failed to achieve its main objective of exploring and exploitingnew and renewable energy sources available in the State. Its activities

were limited only to purchase, sale and installation of systems available

in the market. JREDA did not prepare any long term Plan and Annual

Plans, though prepared, were on ad hoc basis. There were huge savings

of funds. Non adherence to financial rules led to financial

mismanagement and financial irregularities. Though required, Annual

Accounts and Reports were never sent to the State Government. There

were serious deficiencies in program implementation including majorshortfalls in achievement of targets and irregularities in installation and

supply of solar systems. JREDA failed to undertake research and

development work in the field of renewable technology. No training was

imparted nor was any advanced studies arranged for achievement of its

objectives. JREDA was manned by officials on deputation. It did not

plan for expansion though its scope of work increased manifold. The

monitoring mechanism for programme implementation was also

deficient as the Managing Committee failed to monitor the programmes

through regular meetings.

5. HOUSING DEPARTMENT

No Perspective and Annual Plans were prepared. A loan of Rs 500 crore

from HUDCO was availed of without assessing the requirement of houses for BPL families. The execution was also tardy as the houses to

be completed within 2004-05, with the loan remained incomplete.



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Recommendations


Timely preparation, approval and adherence to Working Plans

along with demarcation of forest land after conducting proper

surveys;

Preparation of budget estimates as per the provisions of the Budget

Manual after due assessment of the requirement of afforestationactivities and ensuring the utilisation of funds;

Preparation of need-based and time-bound programmes for

afforestation with particular emphasis on fuelwood and fodder

plantations and silvicultural operations;

2. HEALTH, MEDICAL EDUCATION AND FAMILY

WELFARE DEPARTMENT

The Jharkhand Rural Health Mission Society should undertake

baseline surveys as per prescribed norms and prepare the State’s

Perspective Plan based on correct district level Plans;

Community monitoring should be put in place to plan and monitor

health delivery and services;

The State Government should ensure timely release and effective

utilisation of its matching share of funds for NRHM;



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3. HOME DEPARTMENT

The State Government should prepare a roadmap including a long-

term Perspective Plan for modernization of its police force, after

analyzing the gaps and requirement, based on Bureau of Police

Research and Development norms.

Financial management should be streamlined to ensure timely

utilization of funds for the intended purpose.

Quantifiable targets and specific timelines should be fixed for up

gradation of weapons, mobility, computerization and

communication systems and progress monitored.


JREDA should develop systems and devices suitable for Jharkhand

through research and development, advanced studies, field testing

and training of officials;

JREDA should ensure a workable co-ordination with the State

Government for effective implementation of programmes. `

Involvement of the district administration in programme

implementation should be ensured;

JREDA should strictly adhere to financial rules and provisions.

The cases of financial irregularities are serious in nature and

should be investigated from a vigilance angle. A Controller of



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Finance should be appointed to strengthen its financial

management;

5.HOUSING DEPARTMENT

The scheme should be assessed regularly at the district and State

levels.

There should be co-ordination between various implementing

agencies so as to avoid overlapping in selection of beneficiaries.

Strict financial control and monitoring should be ensured.



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Bibliography

Audit report of AG office 2008-09

Financial department of AG office

www.agjh.gov.in

Book keeping and accountancy reffered by S.M SHUKLA.

Modern accountancy reffere MUKHERJEE and HANIFF.

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6th Heavens Project

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Transcript of 6th Heavens Project