Principal Accounts Office

Ministry of Health &F.W.

Nirman Bhavan
New Delhi

Reference Letter No. RMLH/Accounts.I/192 dated 22.4.2015 from M.S.(RMLH) and

mail dated 23.4.2016 from M/s Link Medical Systems – FR.1 and FR.2 ref.

Vide FR.1 M.S.(RMLH) has pointed out that PAO(RML) has returned approximately
421 number of un-passed bills pertaining to different heads on 31.3.2016 with the reason
that PFMS server was working slow on 31.3.2016. M.S has further stated that non-clearance
of bills on 31.3.2016 has resulted in lapse of funds amounting to Rs. 4 crores. It has also
been stated by M.S. that PAO(RML) is in the habit of raising lot of objections on the bills, as
also that pension cases have also been delayed at PAO level. Vide FR.2 M/s Link Medical
System has pointed out that some of the bills presented by the firm in October and
November, 2015 have not been paid.

2. As per the directions of CCA(H) Dy.CA(NK) and undersigned visited PAO(RML) on

12.5.2016 to look into the matter. DDO(RML) was also called to Pay & Accounts Office to
discuss the matter. During the course of discussion with PAO(RML) following facts were
brought to the notice:

i) Funds under FE were received late in the afternoon of 31.3.2016.

ii) Re-appropriation orders were not updated on PFMS by Principal Accounts Office;
and as a result of this budget was monitored manually.
iii) A large number of bills (though their sanctions were generated much earlier) were
presented by DDO(RMLH) to PAO(RMLH) only on the last 3-4 days of March,
2016. The reason being the delay in receipt of FE.
iv) It was also clarified by PAO that in majority of the cases sanctions were generated
by RMLH and bills were prepared by DDO without verifying the availability of
budget, thereby making it difficult for PAO to pass the bills.
v) PAO(RMLH) also handed over a copy of the return memo in which reasons for
returning the un-passed bills were specified.

3. Thereafter PAO was asked to forward the status report on the bills received/passed
and returned by it on 30.3.2016 and 31.3.2016 separately. The report submitted by PAO may
be seen at S/D & E. The report shows that PAO had received a total number of 435 bills on
30th and 31st March, 2016. Out of these 284 bills were passed and paid for and 148 bills were
returned (though passed) due to slow functioning of PFMS and 3 bills were returned for want
of budget. With regard to delay in passing of the bills of Link Medical System
PAO(RML)has expressed her inability to comment stating that no bills are submitted by
vendors directly to PAO.

4. Status of bills presented by Link Medical system was checked from PFMS and it was
found that Bill for Vendor Bill No. 884 dated 19.10.2015 for Rs. 8,00,331/- was presented by
DDO to PAO in March, 2016 and the same was passed by PAO on 31.3.2016 but payment
could not be made. The bill was returned to DDO and resubmitted to PAO on 9.5.2016. The
bill was passed and paid for by PAO on 11.5.2016. Similarly, the Vendor bill for Rs.
5,13,975/- was returned by PAO to DDO on 31.3.2016 due to non-payment (though bill was
passed). The bill is yet to be presented by DDO to PAO in C.F.Y.

5. In this regard it is submitted that that as far as the issues raised by M.S.(RMLH) are
concerned it is clear that PAO(RMLH) cannot be faulted for

return of the unpaid bills on 31st March in view of the fact that all the bills were duly passed
by PAO but the payment could not be made due to slow functioning of PFMS as also due to
late receipt of FE.

6. Submitted please.

(Prem Ballabh)
Sr.AO(Vig)
18.5.2016

Dy.CA(NK)