Recommended Recommended

Observation Reply by Executive Engineer AWWD 'South' PHED by E-in-C

by SE
POS 1: Transfer of Funds of ₹ 91.01 lakh in Civil deposit at the end of Due to late receipt of Administration Approval, Expenditure Sanction and Letter
the year by violating Rule 290 of Central Treasury Rule Volume-I of Credits and as per Finance department, Govt of Mizoram Letter
No.G.25016/1/2010-FEA of 23rd March 2011 (Annexure-I), the said amount of ₹
According to Rule of Central Treasury Rule Volume-I, which is being 91.01 lakh was kept in Civil Deposit. This amount is comprised of ₹ 15,89,567/-
for the work construction of RCC Reservoir of T.Romana Collage and the
followed in the state, no money shall be drawn unless required for
improvement of IVSS under AWDDS,PHED for which LOC amounting to ₹
immediate disbursement. Also as per said rule, no money shall be drawn at 63.79 lakh was received on 31.12.2018. Funds amounting to ₹ 10 lakh and
the end of the financial year. ₹4490 lakh for the work construction of Alternate Gravity Water Supply Scheme
of Aizawl (AGWSS) for which Administrative Approval, Expenditure Sanction
On scrutiny of record, it was seen that during the period of audit an amount and Allotted Fund were received on 29 th March 2019 and 19th December 2019
of ₹91.01 lakh pertaining to various works as depicted in Form 65(CPWA- respectively.
33), Schedule of deposit work was transferred to Deposit-III as shown
below:- As per Office Memorandum even No.G.27013/8/2020-F-APF of the 19 th
Sl.No Date Name of Works/Project Amount February 2021, Govt of Mizoram Finance Department
1 29.03.2019 Minor Works-NEDP 15,89,567.00 ‘In case of work which are not yet executed/completed, but drawal of bills are
required for avoiding lapse of fund provision. Department are allowed to
2 30.03.2019 Minor Works 10.00.000.00
prepare bills by means of regular bill form to enable their passing in Treasuries.
3 30.03.2019 - 65,11,242.00 However, these bills should not be actually drawn from Treasuries, they should
Total 91,01,809.00 be deposited under the head of 8443-Civil Deposits which will be released by
Finance Department and Treasuries based on detailed bills and progress of
The transfer and retaining of the above amount of ₹ 91.01 lakh in Civil work done’.
Deposit in order to avoid lapse of funds at the end of the year against the
provisional of Central Treasury Rules would affect the accountable of Therefore, there is the fund being kept in Civil Deposit as per Finance
actual balance in appropriate of accounts without incurring the expenditure permissions stated above.
under each head which leads to misutilization and diversion of funds.
This may kindly be dropped please.

POS 2: Retention of heavy Cash Balance and irregular maintenance of Cash

Book
Scrutiny of Cash Book during the period covered by audit revealed that heavy It is regretted to state that, closing balance of cash book was wrongly shown as
‘Cash in Chest’ instead of ‘Un-cash Cheque’. Therefore, amendment is made by
cash balance were retained at the end of the month without any cash analysis as referring the balance as un-cash cheque. As the source of income either from the
shown in below: Central or State’s own revenue were much below the estimates in Budget
Year Month Cash Balance Estimate Government of Mizoram issued Financial constraint by lowering even
2020 October 45,74,899.00 the daily ceiling amount of Treasury North. Therefore, therefore self cheque
2020 November 91,78,730.00 bearing Nos. D.548111,D.548112 and D.548113 amounting to ₹
2020 December 91,78,730.00 91,78,730/-, which are for clearing deductions such as Labour Cess, TDS
2021 January 30,35,865.00 of GST and Income Tax were retained at treasury during this month.
Similarly fund amounting to ₹45,74,899/- and ₹ 30,35,865/- were un-cash
As per rule, Government money should not be drawn from treasury unless cheques.
required for immediate disbursement. The undisbursed amount lying at the end of
the month should be refunded to the Government Account under the appropriate
head as retention of heavy cash balances fraught with the risk of misappropriation
of Government money, Since cash analysis was not recorded at the end of each
month, the period from which the unspent balance is lying in Cash Chest could
not be ascertained by audit.

POS 3: Expenditure incurred on maintenance of vehicles- Observation

thereof: Aizawl Water Distribution Division South PHE Department has been looking
Scrutiny of records of the Sr.Executive Engineer, AWDDS PHED for the period after three Government Vehicles as follows :- MZ - 01/B-0726 (407-
from 01.12.2018-31.01.2021 revealed that the office has two motor vehicle as
Trucks)
shown below:-
MZ - 01/D-8025 (Gypsy)
Sl.N Vehicle Registration Type of Place of Deployment
o No. Vehicle MZ – 04/2886 (Bolero) (13.3.2019-30.9.2019)
All these vehicles are very old and need repair almost all the time to make
 1 MZ 01 B-0726 407 Truck them running condition. However, their importance for operation and
2 MZ 01 D-8025 Gypsy King Sr.Executive Engineer maintenance of works and duties for this division cannot be
Audit observed the following:- undermentioned. 407-Truck has been extensively used for transportation
1. Excess expenditure incurred on maintenance of motor vehicle of ₹ 7.33 of pipes for house water connection, AMRUT and general maintenance of
lakh works. Gypsy has also been extensively used for transportation of men
As per delegation of financial Powers issued by the Finance Department(August and materials for line repair and other maintenance and on emergency
2011) and revised of DEP(November 2019), the Sr.Executive Engineer, AWDDS,
duty. Bolero (Mz-04/2886) had been utilized by official vehicle of
PHED comes under Schedule II and is empowered to exercise financial power of
₹ 15,000 per annum and ₹ 30,000 per annum respectively for maintenance and Sr. Executive Engineer, PHED w.e.f. 13.3.2019-30.9.2019 and was
repairs each vehicle. returned to the head office on 30.9.2019 due to its expensive repair and
Scrutiny of records revealed that the DDO failed to comply and incurred huge maintenance cost.
expenditure against the codal provision amounting to ₹ 7.93 lakh against the
admissible limit of ₹0.60 lakh during the period 01.12.2018 to 31.01.2021 On account of the above mentioned reasons the repair and maintenance
resulting and incurring expenditure of ₹7.33 lakh beyond the limit of financial
cost could not be covered with a small permissible amount of ₹0.60 lakh.
powers as shown below in the Annexure. It is rather required to incur a huge amount of money for maintenance and
2. Doubful expenditure incurred on maintenance of vehicle of ₹ 2.55 lakh repair of these vehicles, to make them workable for the interest of public
Scrutiny of record revealed that the Department had incurred an service and works. As such ₹5.69 lakh has been incurred during the period
expenditure amounting to ₹ 2.55 lakh on maintenance of vehicle which are not 01.12.2018 to 31.01.2021 (2yrs and 4 months) which is unavoidable and
possessed by the Department during the audit period as shown as below: very justifiable.
Date Vr.No Name of Workshop/Supplier Amount Vehicle No. Expo facto approval on work order for repair and maintenance of vehicle
10.12.2018 9 Ophel Tyres 16,600 NIL has been accorded by the competent authority vide letter No.M-
10.12.2018 10 Ophel Tyres 20,660 NIL
11011/164/2018-CE/PHE/Z-I/Mon dated 22.03.2021 is herby enclosed
28.03.2019 38 Ophel Tyres 43,600 NIL
(Annexure??)
28.03.2019 55 Zoram Automobiles 4,720 MZ 04 2886
22.08.2019 7 Zoram Automobiles 34,300 MZ 04 2886
24.08.2019 19 MV Tata Workshop 35,240 MZ 04 2886
30.09.2019 26 MV Tata Workshop 51,000 MZ 04 2886
30.09.2019 27 CT Enterprise 29,460 MZ 04 2886
25.11.2019 19 Zoram Automobiles 9,050 MZ 04 2886
28.02.2020 19 Ophel Tyres 10,000 NIL
Total 2,54,630
From the above, it can be seen that, vehicle registration number was not It is agreed with the audit that neither nor vehicle log book was properly
mentioned in the some bills and the vehicle registration number MZ 04 2886 was maintained by this Division is purely due to negligence and inadvertence which
the vehicle of the department. This had resulted in doubtful expenditure incurred is highly regretted. The division will try to maintain. Car Diary and vehicle log
on maintenance of motor vehicle amounting to ₹ 2.55 lakh book and update them regularly as far as possible from now on.
Hence, this para may kindly be dropped.

3. Non-Maintenance of Car Diary and Vehicle Log Book:

As stated that by the Division during the course of audit, the Division has
maintained neither Car diary not Vehicle Log Book, as such audit the authenticity
of bills and vouchers could not be verify in audit. Such practice is highly
irregular.

POS 4: Irregular expenditure incurred on Stationary Items ₹ 2.94 lakh.

As per Delegation of Financial Powers issued by the Finance Department (August
2011) and revised of DEP (November), the Sr.Executive Engineer AWDDS,
PHED is empowered to sanction ₹ 15,000/- annually and ₹70,000 per annum
respectively for local purchased of petty stationeries stores.
Test check of recorded of the Sr.Executive Engineeer AWDDS PHED revealed
that in violation to the prescribe procedures, expenditure of ₹ 2.94 lakh was
incurred against the admissible limit of ₹ 1,00,000/- during 01.12.2018- Aizawl Water Distribution Division South is one of the biggest Divisions under
31.01.2021 leading to excess expenditure of ₹2.94 lakh incurred beyond the limit PHE Department in Mizoram. It is looking after Divisional Office with
of financial powers during the period. establishments of Account Branch, General Branch and Technical Branch, It is
also looking after two Sub-Divisional Offices (AWD Sub-Division I and II) with
Reason for incurring expenditure beyond the limit of financial power may be twelve (12) Sectional Offices with a total strength of more than 400 Staffs.
please to stated to audit. Further the expenditure of ₹2.94 lakh require ex=post In addition, it is also looking after Central Water Billing System Connected with
facto sanction of the competent authority. Smart Water Billing with as many as seven Water Bill Counter for serving water
Further, the Government instruction issued vide OM No.D.29012/1/2002 P&S bills, Generating receipt and all challans within Aizawl City.
Dated 09.09.2009 and OM No.D.29012/1/2008 P&S Dated 12.04.2010, Office For proper maintenance of all these administrations and establishments, a huge
stationary should be procured from the controller of P&S Govt.of Mizoram, Local quantity of stationary items is required to be purchased. More quantity of
purchased should be resorted to only when the Controller of P&S is not in a stationary items are required for generating Water Bill; Challans and receipts etc.
position to meet the requirement. In such case, Non-viability Certificate from as mentioned before as all billing system is under Aizawl City is under this
Division.
P&S Department may be obtained. As per General Financial Rule 137 (2005),
‘Every authority delegated with the financial powers of procuring goods in public
interest shall have the responsibility and accountability to bring efficiency,
economy, transparency in matter relating to public procurement and for fair and
equitable treatment of suppliers and promotion of competition in public interest’.
During the course of audit 01.12.2018-31.01.2021 it was observed that, the
procurement of stationary items was done without obtaining any non-viability
Certificate from P&S department. Thus, non-observance of the Government
instruction was irregular.
It is practically not possible to manage purchase of this huge quantity of
stationary items with a very limited financial power delegated to the Executive
Engineer of the Division. As such the delegates Financial power limit of
₹1,00,000/- only has been exceeded by ₹2,93,300/- only during 01.12.2018 to
31.02.2021 (2 years and 4 months) which is practically unavoidable due to the
aforesaid reasons for which necessary expo facto sanction has been moved to the
competent authority vide letter No. G.11039/1/2019/AWDDS/PHE/62 dated
18.03.2021 (copy enclosed at annexure-???)
Hence, this par may kindly be dropped please.
It may also be pertinent to state that procurement of stationary items was done
without obtaining non-aviability certificate from Printing & Stationary
Department mainly due to poor quality of stationary items and demand of
payment in advance by the said Department which cannot be followed by the
Division on account of non-availability of Office Expenditure fund in advance.
As per practice the Department used to issue LOC on Quarterly basis only when
purchase of stationary items is require very irregular, sometimes more than
twice/thrice in a month, which necessitate purchase of items on credit always
which cannot be accepted by the Printing & Stationary Department. Hence,
possible as the Division in compelled to purchase the items on credit from
Government approved stationary stores. Hence, the case of obtaining non-
availability certificate from Printing & Stationary department doed not arises.
Hence, this par may also be kindly be dropped please.
POS 5: Irregular issued of Supply Order to various suppliers without call of
tender/quotation amounting to ₹ 4.64 crore.
Scrutiny of records revealed that the PHED issued supply Order to various
suppliers for supply of materials wherein payment of all Supply Orders was made
under Executive Engineer, AWDDS PHED.
As per GFR Rule 154, 2007, purchase of goods without quotation Purchase of
goods upto the value of ₹25,000/- only on each occasion may be made without
inviting quotation or bids. Rule 155 provide that goods costing above ₹ 25000/-
and upto ₹25000/- on each occasion may be made on the recommendations of a
duly constituted Local Purchased Committee consisting of three members of an
appropriate level as decided by the Head of the Department.
Rule 158 provied that in case covered above, the purchased shall be made by
following the standard method of obtaining bids in (i) Advertised Tender Enquiry,
(ii) Limited Tender Enquiry and (iii) Single Tender enquiry (iv) Electronics
Reverse Auctions.
It was, however, noticed in audit that the department placed several supply order
with different local supplier for purchase of equipment/materials required for the
work. There was no record for call of tenders/quotation. An illustrative list of
supply orders are enclosed in the Annexure. As seen from the Annexure,
materials worth ₹4.46 crore were purchased without call of tender which
contravenes the provision of GFRs 2007 cited above. Non-Calling of
tenders/quotation eliminates competitive bidding and reasonable of the rates
allowed to the suppliers cannot be ascertained. The act of the department also
resulted in extension of undue preference to the particular suppliers.
As already replied under Para I(II) many supply orders were issued to the Firm
which was duly approved by the State Government through Departmental
Purchase Advisory Board (DPAB) after necessary quotation/tender was called
through competitive bidding, a copy of which has been enclosed under
Annexure??
The supply orders amounting to ₹ 1.78 crore and ₹1.37 crore were issued by the
competent authorities i.e Engineer-in-Chief and Chief engineer PHED
respectively within their financial power delegated by CPWD Manuals against
the approved rate of materials only. The remaining supplied amount of ₹1.49
crore only out of ₹4.67 crore was issued by the Superintending Engineer and Sr.
Executive Engineer PHE Department against the approved firms only. Reasons
for irregular issue of supply orders valuing this amount is mainly due to:
1. Extreme urgency of works necessitating urgent supply of materials with
insufficient time for calling and processing of tender or quotation.
2. Availability of quality and standard materials through the said supplies
mentioned in the enclosed list who made the materials available in time for
execution of works.
3. Insufficient supply of materials through the approved firms alone delaying
execution of works and completion in time
On account of these reasons, some supply orders were issued without calling a
separate tender/quotation which is unavoidable. Necessary expo facto approval
for the amount of supply outside the financial delegated power to the Engineer-
in-Chief and Chief Engineer PHED is obtained vide letter No.M.11011/12/2016-

POS 6: Less remittance of revenue collection in the form of Water Tariff to
Government account ₹ 5.90 crore
Rule 7 of General Financial Rules (GFRs) provides that all moneys received by or
on behalf of the government either as dues of Government or for deposit,
remittance or otherwise, shall be brought into Government Account without
delay.
Further, Receipts and Payment Rules also provides that all moneys received by or
tendered to Government officers on account of revenues or receipts or dues of the
Government shall, without undue delay, be paid in full into the accredited bank
for inclusion in Government Account.
On scrutiny of records, it was seen that there was 15 counters for payment of
Water Tariff under Aizawl Water Distribution Division Aizawl South. As practice
by the department, revenue receipts from Water Tariff was directly deposited to
the Bank Account No. 502000344451152 (HDFC Bank Ltd. Zarkawt, Aizawl)
and the same was cleared by the department and deposited into Government
Account. As on 31.01.2021, there was balance of ₹ 1,37,03,866.82 in the Bank
Account.
As furnished by the Department, the total revenue collected in the form of Water
Tariff between 12.01.2018 to 31.01.2021 was ₹ 66.76 crore and deposited into
Government account was ₹ 60.86 crore (Aizawl South Division - ₹ 28.61 crore
and Aizawl North Division - ₹ 32.25 crore). There was a discrepancy in the
revenue collected and remitted into Government account to the tune of ₹ 5.90
crore. This had resulted in less remittance of revenue collection in the form of
Water Tariff to Government account by ₹ 5.90 crore. Instances of collection of
revenue and their remittance into Government account are shown in the enclosed
Annexure.
E-in-C/PHE/Tue dated 31.03.2021 (copy enclosed as annexure????)
Hence this para may be dropped please.
The amount of revenue collected in the form of Water Tariff furnished by
the department for scrutiny to audit was found to be incorrect after re-
checking through the billing system since there are some bills which are
counted twice resulting duplicity and show more amount than the actual
amount collected. After making necessary corrections in the billing
system the total amount of revenue collected in the form of Water Tariff
has now come down to Rs. 64,08,07,521.00 against ₹ 66,76,03,812/-
shown to audit. (The actual figures of monthly payments received from
different modes of payment are enclosed herewith)
The amount of Remittance to Government Account previously
submitted to audit for inspection is also incomplete. After rechecking
monthly Treasury challan it was found that there are some calculating
errors while adding up challan amount. It was also found that Rs.
1,84,67,314.00 (Rupees one crore eighty four lakh sixty seven thousand
three hundred fourteen) only remitted by Chief Engineer, PHED
Headquarters & Water Resources through three (3) challans (copies of
challan enclosed) is not included in the previous statements due to which
the department seems to have discrepancy in revenue collection since less
remittance was shown. After correcting errors and including the amount
remitted by Chief Engineer, PHED Headquarters & Water Resources the
total remittance to Government account is now Rs. 63,53,52,088.00
(Challan Nos., date and amount are enclosed herewith)
Now, there is rather surplus of ₹82,48,453/- remitted to the Government as a
revenue. This surplus remittance of revenue is due to remittance of more fund in
the month of December 2018 from the accumulated revenues of the previous
month (prior to audit period) carried over to the said month which is also
 reflected in the corrected statement (enclosed).
It may be noted that the monthly revenue collected and remitted are not
always tallied and there is always a difference between them. However, the
overall revenue collected and remitted over 6 years are more or less tallied each
other. Hence, there is no less remittance of revenue collection is the form of
Water Tariff to Government.
Hence, this para may kindly be dropped please.

POS 7: Form 51 – Observation thereof

A. Discrepancy in difference brought over as per line 5 of last month memo. As stated in the Audit Observation that, the difference brought over as per last
month’s Memo i.e. April 2019- May 2019 by ₹ 12,60,202/- and May 2019- June
Statement of Part-I Cash remitted and acknowledged of Form-51 for the month of 2019 by ₹ 51,69,089/- having a sum of ₹ 64,29,291/- were noticed. It was
April2019 to June 2019 is shown below : regretted to state that the difference brought over were wrongly shown/entered
Sl. Particular April May 2019 June 2019 on the column 1 and 5, but still either the cash remitted during these months or
No 2019 the amount acknowledged by Treasury North remained the same (unchanged).
1 Difference brought over as per line 5 of
1292325 32123 -5169089
Knowing the conditioned of these discrepancy in difference brought over,
last month memo compilation-III section of the Principal Accountant General Office issued
2 Cash remitted during the month 22267212 15094539 6818499 ‘Broadsheet’ as to Public Works Challans, Based on such broadsheet and
3 Total 20974887 15126662 1549410 reconciled figures, the Division worked out the correct figure as under:-
Month Div.Fig Trea.fig Diff. Prog.
4 Amount acknowledge by Treasury 22267212 1512662 6636652 Balance
5 Difference (line 3-4) as detailed below April-19 22834270 22866309 -32039 32039
1292325 0 -5087242
May-19 15094539 15126662 -32123 64162
June-19 6818499 6636652 +181847 117685
From the above, it is noticed that line 5 i.e., the Difference (Line 3-4) for the Jul-19 21287582 21322893 -35311 82374
month of April 2019 was ₹12,92,325.00. However, the difference brought over as Aug-19 8987010 3717221 +5269789 5352163
per line 5 of the last month memo in the month of May 2019 was only ₹ Sep-19 6457715 6723744 -266029 5086134
32,123.00. Thus, this has resulted in understatement of the difference brought Oct-19 24702227 20445524 +4256703 9342837
over as per line 5 of last month memo in the month of may 2019 by
Nov-19 13783380 13753293 +30087 9372924
₹12, 60,202.00.
Dec-19 12029785 12010220 +19505 9392489
Similarly, line 5 i.e., the Difference (Line 3-4) for the month of May 2019 was Jan-20 17677612 17744446 -66834 9325655
₹0.00 (NIL). However, the difference brought over as per line 5 of the last month Feb-20 15295416 18210312 -2914896 6410759
memo in the month of June 2019 was only (-) ₹51,69,089.00. Thus, this has Mar-20 7608900 13183159 -5574259 836500
resulted in discrepancy in difference brought over as per line 5 of last month Hence, the closing balance at the end of the year 2019-2020 was ₹ 8,36,500/-.
memo in the month of June 2019 by (-) ₹51,69,089.00. Apart from this Form-20 (Accepted figures after having reconciled figure with
While confirming the above facts and figures, comments of the Department and AG Office) during 2019-2020 was resubmitted to AG Office for ready reference
reason thereof may be intimated to audit. Further, this needs to be reconciled with is (enclosed as Annexure-II).
intimation to audit.

B. Arithmetical inaccuracy/wrong entry of figures. As per accepted 8782 reconciled figures for the year 2019-2020. Amendment
Scrutiny of records revealed that the total of the difference brought over as per was made for the month of June 2019 as shown below:
line 5 and cash remitted during the month was ₹ 16,49,410.00 during the month
Sl.No Particulars Amount
of June 2019. However, as per Form-51, the total of the difference brought over
as per line 5 and cash remitted during the month was ₹15,49,410.00 during the 1
Difference brought over as per line 5 of last month
-64162
month of June 2019 resulting in understatement by ₹1,00,000.00. memo
2 Cash remitted during the month 6818499
Similarly, line 5 i.e the difference (Line 3-4) was ₹ 49,87,242/- during the month 3 Total 6754337
of June 2019. However. As per Form-51, line-5 I.e the difference (Line 3-4) was 4 Amount acknowledge by Treasury 6636652
₹ 50,87,242/-, during the month of June 2019. This has resulted in overstatement Difference (line 3-4) as detailed below
5 +117685
ogf line 5(Line 3-4) by ₹1,00,000/- as shown below:-
Sl. June 2019 as Note: To avoid late receipt/lost of Challan etc, the Division changes
Particulars June 2019 Difference the channeling system of Challan Cash Depositor. In
No per Form 51
Difference brought over as per line accordance with this system, the Department acts as the depositor by collecting
1 -5169089 -5169089 0
5 of last month memo the estimated amount of money from the consumers to eradicate the difference
2 Cash remitted during the month 6818499 6818499 0 brought over occurred in every month.
3 Total 1649410 -1549410 100000 During the Audit period, the Division used to issued challans to the consumers to
4 Amount acknowledge by Treasury 6636652 6636652 0 deposit the required amount to the Bank. But some consumers neglected
Difference (line 3-4) as detailed returning the remitted challan to the department resulting in different amount of
5 -4987242 -5087242 100000
below total remittance to the part of division as well as Treasury North.
While confirming the above facts and figures, comments of the department and
reasons thereof may be intimate to audit. Further, this needs to be reconciled with Therefore, this para may please be dropped.
intimation to audit.

POS 8:Works under AMRUT-Observation thereof: Doubtful Expenditure ₹

4.74 lakh
The PHED, Govt of Mizoram Aizawl has executed works for Improvement of
Aizawl Water Supply Scheme under AMRUT under the Ministry of Urban
Development (MoUD). The purposed of AMRUT is to (i) ensure that every
household has access to a tap with assured supply of water and a sewerage
connection; (ii) increase the amenity value of cities by developing greenery and
well maintained open spaces (e.g parks) and (iii) reduce pollution by switching to
public transport or construction facilities for non-motorized transport (e.g walking
and cycling).

As per the revised detailed Project for Improvement of Aizawl Water Supply
Scheme under AMRUT was ₹ 1186.00 lakh which was to be executed in a phase
wise manner during the period 2017-2019.
The details of fund received and expenditure thereof under AMRUT is shown
below:
Fund Received Fund yet
Sl. Expenditur
DPR Balance to be
No Date Amount e
received
1 118600000 18.09.2018 46634000 46634000 0
2 09.12.2020 17707000 17707000
118600000 64341000 64341000 0 54259000
The Department has executed and completed various works under AMRUT at an
estimated cost of ₹ 466.34 lakh during the period 2017-2019 as shown below:
Sl. Contract/ Estimate
Name of Works
No Department Cost
1 Pipes Works Departmental 34073270
2 Khatla Tlang Reservoir Departmental 7556300
3 Approach road to Khatla tlang Zonal Tank Departmental 385000
4 Tlangnuam Reservoir Departmental 2683000
5 Water Meter Management Departmental 1500000
6 Chal Tuikhur Departmental 250000
Repair of Site Office @ New Secretariat Departmental
7 Complex
187100
Total 46634670

Audit observed as follows:

A. Construction of Khatla Tlang Reservoir and Approach Road : Doubtful

Expenditure on purchase of Sluice Valve ₹ 2.68 lakh
The total estimate for construction of Khatla Tlang Reservoir and Approach Road
to Khatla Tlang Zonal Tank was ₹ 79.41 lakh (₹75.56 lakh + ₹ 3.85 lakh). The
total expenditure towards supply of materials and payment to Muster Roll Khatla Tlang Reservoir and Approach Road:
employee was ₹ 76.71 lakh leaving huge balance of ₹ 2.68 lakh as shown below: The Division admitted that, the expenditure incurred towards payment to the
tune of ₹ 2.68 lakh to the firm, TP Enterprise for supply of 150mmɸ CS Sluice
Valve was not on recorded not only in the Cash Book but in the financial status
Sl. of expenditure also. Having gone through the recorded of Cash Book, it was
Particular of Works Estimate Total
No notice that some pages of cash book including disbursement side, containing
1 Khatla Tlang Reservoir 7556300 detailed payment portion of TP Enterprise were accidentally cancelled.
 2 Approach Road to Khatla Tlang Zonal Tank 385000 Admitting the mistake rectification by rewriting the same is hereby made, to
7941300 7941300 certify that utilization of 4 Nos. of 150mmɸ CS Sluice Valves were accounted
Less: Expenditure on Supply of Materials for in the cash book vide cheque bearing No. 000762 of 15.03.2019. Voucher,
Laltanpuia Rivung: Supply of HYSD Bar & GI rectified photo copy of cash book are enclosed as annexure-
1 5895589
Pipes
Laltanpuia Rivung: Supply of HYSD Bar & GI
2 115800
Pipes
6011389 6011389
Less: MR
1 Muster Roll 1628680
2 Muster Roll 31850
1660530 1660530
Total Expenditure 7671919
Balance 269381
Less: PT Enterprise CS Sluice Valve 268800
Balance 581

Scrutiny of records revealed that the Department made payment of ₹ 2.68 lakh to
TP Enterprise for supply of materials- Sluice Valve, However, These details were
not on records in the cash book and as well as the financial status of expenditure.
Hence, whether the expenditure incurred towards payment to the suppliers remain
vague and thus resulted in doubtful expenditure to the tune of ₹ 2.68 lakh.

B. Construction of Tlangnuam Reservoir: Doubtful Expenditure - ₹2.06 lakh

For construction of Tlangnuam Reservoir was ₹ 26,83,000/-. The total
expenditure incurred on procurement of materials supplied and muster roll
employee was ₹ 26,83,986/- as shown below:
Sl.
Suppliers Particulars Date Amount Tlangnuam Reservoir: Chief Engineer Zone I. Issued supply order vide
No
Estimate of Tlangnuam No.11011/143/2011-CE/PHE/Zone I/154 dated 14.06.2017 to the approved
1 2683000
Reservoir supplier TP Enterprise for supply of the under mentioned materials:
 Less Expenditure Sl No Description Unit Quantity
Supply of Cement, Fine Sand
2 Laltanpuia 12.11.2018 673120 125mmɸCS Sluice Valve (Rising
etc
Denghmingthang 1 spindle) Class-150 with companion No 4
3 Supply of Aggregate Wood etc 12.11.2018 615418 flange
a
Supply of HYDS Bar, GI 150mmɸCS Sluice Valve (Rising
4 Lalchhanhimi 12.11.2018 453830 2 spindle) Class-150 with companion No 2
Pipes etc
TP Enterprise No vouchers/record NA 204000 flange
Muster Roll 19.11.2018 737600 100mmɸCS Sluice Valve (Rising
Total Expenditure 2683968 3 spindle) Class-150 with companion No 3
Excess 968 flange
The materials thus supplied at Sl.No-1 for 125mm ɸ sluice valve at 4 Nos. for ₹
Scrutiny of records revealed that payment made to TP Enterprise amounting to ₹ 2,04,000/-(Rate 51,000/No) were procured and utilized for drained and outlet
2.04 lakh was not on records and vouchers were not available. This has resulted in valves of Reservoir.
over statement of expenditure and, in turn in wrongful depiction of and doubtful The Division re-examined the quoted work thoroughly, it was found that, the
expenditure to tune of ₹2.04 lakh. materials were actually used and this item was also a part and parcel for this
work components. The material were received by SDO II in full and in good
condition on the 6th June 2018 (entered in MB No.1/SD-II/A page No.2). As per
General Financial Rule 137(2005) payment was made on 19.03.2019 vided cash
book voucher No.113 dated 19.03.2019.
Receipt and utilization of 4 Nos. Cs sluice valve were shown in the Site Account
for the month of December-January 2019 vide MR No.36/SDO-II/A dated
07.01.2019 and also the same was recorded in MB No.1/SD-II/A page at 18-21
(for the genuineness of the procurement, Supply order, MB No.1/SD-II/A page
2, 18-21, paid voucher of TP Enterprise, acknowledgement receipt is enclosed as
Annexure-III.

C. Improper maintenance of Cash Book

Rule 13 of the Central Government Accounts( receipt and Payment) Rule, 1983
prescription the General instruction for handling cash as follow:
i) Every such officer (referred to this rule as the Head of the Office) should
maintain a cash book in Form GAR 3.
ii) All monetary transaction should be entered in the cash book as soon as they AMRUT Scheme is under the Nodal Department of UD&PA, fund amounting to
occur and attested by the Head of Office in token of check. ₹ 466.34 lakh was transferred to the Division through the E-in-C, PHED by
iii) The cash book should be closed regularly and completely checked. The Head UD&PA. The Division had executed and completed various works during the
of the Office should verify the totaling of the cash book or have this done by First Phase. All bills/vouchers were submitted to the Nodal Department for the
some responsible subordinate other than the writer of the cash book and initial it bills to be regularized. During the course of work executed, it is the opinion of
as correct.
iv) At the end of each month, Head of Office should verify the cash balance in the
cash book and record a signed and dated certificate to that effect.
v) A erasure over-writing of an entry once made in the cash book is strictly
prohibited. If a mistake is discovered, it should be corrected by drawing the pen
through the incorrect entry and inserting the correct one in red ink between the
lines. The Head of Office should initial every such correction and invariably date
his initial.
Scrutiny of cash book of AMRUT works, the above instruction/guidance was not
adequately followed. It was noticed that there are some page which are cancelled
in pencil without any attestation. The cash book was not closed regularly and
completely checked. Further, totaling at the end page was not done.
the undersigned that UD&PA, as a Nodal Department being responsible for
recording and accounted for the details Expenditure in their Cash Book, Hence,
transaction were not properly recorded in the cash book of the Division.
In contrary to the first phase, fund amounting to ₹177.07 lakh which was
received on 09.12.2020 for the second phase was properly recorded and
maintained in the cash book in accordance with Rule-13 of the Central
Government Account Rule. All monetary transaction were entered in the Cash
Book as soon as they occurred, it was closed regularly and completely checked.
Therefore, it is requested that this para may kindly be dropped please.

POS 9: Implementation of Jal Jeevan Mission(JJM)

Government of India in 2019 restructured and subsumed the ongoing National

Rural Drinking Programe (NRDWD) into Jal Jeevan Mission (JJM) to provide
Functional Household Tap Connection (FHTC) to every Rural household.

The goal of JJM is to provide functional household tap connection to every

household with service level at the rate of 55 liters per day.

Accordingly, Ministry of Jal Shakti, Department of Drinking Water & Sanitation,

Government of India release Grant-in-aid of ₹ 1,661.19 lakh for JJM fund to state
Government of Mizoram for the financial year 2019-2020 in July 2019. And for
2020-2021, ₹1,982.57 lakh was sanctioned on November 2020. The sharing
pattern of Central and State was 90:10.
Approved Expenditure Sanction for implementation of JJM for the financial year
2019-2020 within AWDDS Division PHED was received vide W.11027/8/2019-
E-in-C/PHE/15 dated 18.12.2019 (₹43,84,000), No.G.25016/152019-PHE dated
02.03.2020 (₹2,37,01,696) and No.G.22016/15/PHE/Loose dated 12.06.2020
(₹27,93,960) total being ₹3,08,79,656. State Matching Share amounting (₹27,
93,960) was received only on June 2020. Subsequently, DPR for implementation
of JJM for 8 Villages viz. Samtlang, Lungleng I, Kelsih, Melriat, N Lungleng,
Falkawn, Hualngohmun and Muallungthu for the Financial 2019-2020 was
prepared and approved on December 2019.

Bank Authorization for implementation of JJM for the financial year 2020-2021,
under AWDDS was accorded by the E-in-C PHED vide No.G-25022/3/2020-E-
in-C/PHE/JJM/48A dated 12.01.2021 (₹ 2,25,31,697) No.G.25022/3/2020-E-in-
C/PHE/JJM/66A dated 18.01.2021 (₹41,68,980) and No.G No.G25022/3/2020-E-
in-C/PHE/JJM/74A dated 27.01.2021 (₹3,13,372.94) total being (₹2,70,14,050).
And DPR for the same 8 villages viz. Samtlang, Lungleng I, Kelsih, Melriat, N
Lungleng, Falkawn, Hualngohmun and Muallungthu was prepared and approved
on December 2020.
2019-2020 2020-2021
Sl. Name of Village Estimate Proposed Estimate
N Proposed
Amount HWC Amount
o
1 Samtlang 117 2865368 67 2480000
2 Lungleng I 162 3894677 25 1511000
3 Kelsih 189 3519081 25 1928000
4 Melriat 222 4120805 99 2948000
5 N Lungleng 149 3775964 58 2038000
6 Falkawn 284 5340964 374 11781000
7 Hualngohmun 161 3821132 93 4372000
8 Muallungthu 283 5167484 84 3364000
Total 1567 32504905 825 30422000
Scrutiny of relevant file and vouchers of JJM, the following observation were
made:-
I. Award of work without call of tender:
Para 14.1 of Central Public Works Department (CPWD) Works Manual, 2014
(which is being followed by State Govt) provides that tenders should be called for
all works costing more than ₹50,000 except in urgent cases, or when the interest
of works demand, works may be awarded by the EE without calling of tenders
subject to maximum ceiling of works upto ₹4.00 lakh and SE subject to ₹ 12.00
lakh.
Scrutiny of the record revealed that Executive Engineer Office, AWDDS, Aizawl
while implementing JJM under its Division, engage suppliers for providing GI
pipes and GI special. The supplier were awarded supply orders value at ₹3.28
crore ranging from ₹68,290/- to ₹45,55,375 without calling for the tenders for the
execution of works. The supply order.
PHE Department used to call Quotation/Tender for fixation of rates of
pipes and GI specials through competitive bidding. Accordingly, the
selected rates are approved through State Purchase Advisory Board
(SPAB) and Departmental Purchase Advisory Board (DPAB)
respectively. During the period covered by this audit also, rates and
corresponding firms are approved both for GI pipes and GI specials in
favour of NEZONE Pipes and Structure Gwahati, CL Enterprise Dawrpui
Aizawl and KT Thanga & Sons Aizawl respectively (copies of minutes of
SPAB enclose as annuxure???)
Accordingly, a majority of supply order amounting to ₹2.66 crore against
the supply orders value of ₹3.28 crore are (as per annexure I) indicated by the
audit were placed by only by the competent authorities like Engineer-in-Chief,
Chief Engineer and Superintending Engineer of PHE Department in favour of
those approved Firms only. As supply order were placed against these approved
firms, there is no question of calling tender or quotation again for these items for
the execution of works as far as supply order against NEZONE Pipes and
Structure Gwahati, CL Enterprise Dawrpui Aizawl and KT Thanga &
Sons Aizawl are concerned. Moreover, the competent authorities awarded
order against these approved firms within their financial delegated power
only. As such work order against these firms within the financial
delegated powers of the said competent authorities seems appropriate and
justified.
On the other hand, it is agreed with the audit that some supply orders were
placed beyond the financial delegated power of the officers without
calling tender. The balance amount of supply order valuing ₹ 62.15 lakh
out of ₹ 3.29 crore placed without tender mainly due to the following reasons:
1. Extreme urgency of works which necessitate availability of sufficient quantity
in time of GI special to complete the work for which sufficient time is not
available for calling and processing of Tender/Quotation.
2. Materials of the same brand and quality as that of the materials supplied by the
approved firm could also be supplied by the other firms for which work orders
were allotted to make the materials available as demanded.
3. As the financial power delegated to Sr.Executive Engineer PHED as per
CPWD manual is very limited it is practically not possible to make supply order
for sufficient quantity of GI materials within a short period for which necessary
approval was obtained from the competent authority to issue the supply orders in
the best interest of in the best the public and works

Under the circumstances, necessary expo facto approval of the competent

authority is obtained for the supply orders amounting to ₹ 62.15 lakh vide letter
No.M-11011/133/2018-CE/PHE/Z-I/Fri dated 19.03.2021 (copy enclosed as
annexure __)
Hence, this para may kindly be dropped please.
II. Procurement of Materials from non-approved firms of PHED, Mizoram:-
The PHED approved rates of GI special with valves etc. of NIT 2 of 2017-2018 as
per DPAB meeting on 26.04.2018 (w.e.f. 11.05.2018) approved two firm namely,
CL Enterprise and KT Thanga for supply of GI special and valve etc. And the
approved firm for supply of GI pipe was Nezone, Guwahati (vide E-in_C circular
It is the procedure of the Department to call a quotation only for fixation
dated 05.02.2019)
Scrutiny of relevant file and vouchers during 2019-2020 and 2020-2021 revealed
of rates of Materials. Based on this quotation, rate are fixed and approved
that procurement of materials for the works amounting ₹ 62,15,015, were made (see annexure???). As such not only the successful quotationers but also
from non-approved firm details in below:- the other Firms and suppliers can supply the materials with these
Sl Firm/Supplier Supply Order/Indent Amount approved rates only provided the materials are good and acceptable to the
. department. Moreover, as the rates are fixed against competitive quotation
N only, hence, calling a separate tender for inviting competitive bidding
o seems not necessary for supply of materials.
1 LT Enterprise W.11067/1/2014/AWDDS/PHE/130 Dated 250000 As such materials were supplied not only by the successful quotationers
23.12.2019 but also by any firm/person who could supply the materials with these
2 Jona. Enterprise W.11012/21/2017/IV-SE/PHE/pt/17 Dated 821130
03.02.2020
approved rates. As far as good quality of materials as per approved rate
3 RN Enterprise W.11012/21/2017/IV-SE/PHE/pt/18 Dated 1054217 of items is maintained.
03.02.2020
4 Eastern Trading W.11012/21/2017/IV-SE/PHE/pt/19 Dated 680448 Hence, it is agreed that procurement will be made observing codal
03.02.2020 provision and standing instruction from now on. Necessary expo facto
5 Siamremthangi W.11067/1/2014/AWDDS/PHE/134 Dated 246988 approval for supply orders against the so called non-approved firms is
04.02.2020
6 Lalat W.11012/21/2017/IV-SE/PHE/pt/20 Dated 643708
also obtained vide letter No.M-11011/133/2018-CE/PHE/Z-I/Fri dated
03.02.2020 19.03.2021 (see annexure???)
7 Siamremthangi W.11067/1/2014/AWDDS/PHE/159 Dated 165940
04.12.2020
8 Lalhmachhuani W.11012/21/2017/IV-SE/PHE/pt/173 Dated 136080
19.10.2020
9 KC Lalrinpuii W.11067/1/2014/AWDDS/PHE/158 Dated 212900
01.12.2020
 10 Jona Enterprise W.11067/1/2014/AWDDS/PHE/133 Dated 308770
25.11.2020
11 Jona. Enterprise W.11012/21/2017/IV-SE/PHE/194 Dated 389912
08.01.2021
12 Lalawmpuia Indent No.SO/CH/20-21/19 Dated 88988
05.01.2021
13 Lalawmpuia Indent No.SO/CH/20-21/18 Dated 68290
05.01.2021
14 Lalawmpuia Indent No.SO/CH/20-21/16 Dated 12010
04.01.2021
15 Lalawmpuia Indent No.SO/CH/20-21/17 Dated 114842
04.01.2021
16 Lalawmpuia Indent No.SO/CH/20-21/23 Dated 342752
07.01.2021
17 Lalawmpuia Indent No.SO/CH/20-21/22 Dated 321704
07.01.2021
18 Lalawmpuia Indent No.SO/CH/20-21/20 Dated 157545
06.01.2021
19 Lalawmpuia Indent No.SO/CH/20-21/21 Dated 90591
06.01.2021
Total 6215015
Procurement of Materials from non-approved firm/suppliers not only violate rule
ibid but also potential fraught on the quality of materials supplied.
III. Procurement of Materials in Excess:-
Scrutiny of measurement book and vouchers in respect of implementation of JJM
Muallungthu village for the financial year 2019-2020 revealed that materials
worth ₹8,51,472/- were procured but not utilized for the works details below:
Village Materials MB Voucher Diff Rate Amount
The expenditure incurred of ₹51,67,484/- towards providing and laying
20mm W/Valve 416 566 150 1113 166950 distribution line at Muallungthu included cost of pipes, labour charge and GI
40x20 R/Tee 289 439 150 222 33300 specials. As such materials worth ₹8,51,472/- out of the total expenditure
40mm Nipple 209 389 180 82 14760 incurred on materials component was actually utilized as per specification. There
40mm U/Socket 100 115 15 284 4260 was neither expenditure in excess of its actual utilization nor undue benefit to the
40mm Plug 50 80 30 74 2220 suppliers. As the work was done departmentally materials in connection with
20mm E/Tee 9 9 0 - -
MR No.1/SD-II/JJM of 25.11.2019 were issued and utilized vide MB
20mm Bend 900 997 997 0 - -
20mm Nipple 451 751 300 38 11400 No.JJM/SDO-II(A) page 1-5. It supported the transaction taken under the head
20mm socket 601 601 0 - - materials in the site accounts. This account showed the quantity of each item of
20mm ɸ GI Pipe 9537.5 9537.5 0 - - material brought at site for use on the work. Hence, it acts as a check on the total
40mm ɸ GI Pipe 0 1875 1875 183 542062.5 quantity of each material issued/obtained/utilized for the work. Therefore, actual
Muallungthu

20mm U/Socket 602 752 150 109 16350 utilization of the material could be traced. Site Account of MR No.1/SD-II/JJM
40mm ɸ W/Valve 0 15 15 3106 46590
of 25.11.2019 and the page No. 1-5 of MB No.JJM/SDO-II (A) are enclosed as
40mm ɸ E/Tee 0 15 15 192 2880
40mm ɸ Socket 0 100 100 107 10700 annexure??? For ready reference.
Total 8,51,472

As seen in the table above, the department procure materials in excess of its actual
utilization for GI pipes and GI specials resulting in excess consumption of
expenditure amounting to ₹8,51,472/-.

IV. Community Contribution.

To instil 'sense of ownership,' JJM Operational guideline 6.1.2 Community
contribution stated that, for in-village piped water supply infrastructure and
related source development to be implemented by Gram Panchayat and/ or its
sub-committee, i.e., VWSC/ Paani Samiti/ User Group, etc., communities will
contribute 5% of the capital cost in cash and/ or kind and/ or labour in hilly and
forested areas, NE and Himalayan States and villages having more than 50% SCs
and/ or STs population; and 10% of the capital cost in other villages.
The AWDD South, PHED Mizoram while implementing JJM in the 8 villages
allowed villagers to contribute in terms of manpower equivalent to 5% of the
capital cost as stated in the operational guideline.
Expenditure statement maintained by the division shows that while the total The Audit had rightly pointed out that the accumulation of Community
estimated amount and total expenditure for the year 2019-20 and 20-21 was Contribution amount in term of labour cost up to 28 th February 2021 was only ₹
`3,25,04,904 and `3,04,22,000 respectively, the community contribution amount 11,22,950/- out of the expected amount of ₹15,21,100/- during the financial year
in terms of labour cost was `16,25,248 and `11,22,950 during 2019-20 and 2020- 2020-2021.
21. It was observed that the community contribution during 2019-20 and 2020-21 During the period covered by Audit, the installation of Functional
was 5% and 3.71% of the total expenditure during 2019-20 and 2020-21 Household Tap Connection (FHTC) at 8 villages were not completed
respectively. satisfactorily, meanwhile there are funds amounting to ₹18,86,850.06/- yet to be
Thus, from the above stated fact, it was noticed that community contribution in released from State Matching Share and ₹3,98,150/- to be contributed from
respect of work executed in 2020-21 was short of 1.29% or `3,90,459 in monetary Falkawn Village’s beneficiaries.
value. The abstract of expenditure up to 28th February 2021 was as under:
Reason for divergence from operational guideline while implementing JJM during
2020-21 may be stated to audit. Sl.N Villages Estimate Expenditure CC Status It
o is
1 N Lungleng 2038000 1936100 101900 Complet
ed
2 Samtlang 2480000 2258322 124000 On
going
3 Lungleng I 1511000 1291905 75550 On
going
4 Hualngohmun 4372000 3738060 218600 On
going
5 Muallungthu 3364000 2876220 168200 On
going
6 Falkawn 11781000 10431090 190900 On
V. Road indemnification. going
Scrutiny of Approved estimate for the year 2019-20 and 2020-21 revealed that 7 Melriat 2948000 2650752.94 147400 On
Road Indemnification (Sl.No.4) was included in the estimate. The estimated going
amount was `52,230.00 in each village during 2019-20 and `87,050.00 in all 8 Kelsih 1928000 1831600 96400 Complet
villages except in Falkawn which was `88,181.65 in 2020-21. The total estimated ed
amount for Road Indemnification during 2019-20 and 2020-21 was `4,17,840 and 30422000 27014049.94 1122950
`6,97,531. Balance Fund to be released ₹1886850.0 398150
It was noticed that no expenditure was incurred on road indemnification during 6
2019-20 and 2020-21. However, in JJM abstract of expenditure it was observed
confirmed that installation of Functional Household Tap Connection (FHTC) at
that the total estimated amount was fully utilized. As such, expenditure amounting
8 villages are executed as per the operation guideline. Village’s wise details
to `11,15,371 (total for 2019-20 and 2020-21) was irregular.
expenditure can be produced to audit if and when required.
While confirming the facts and figures, comment if any may be intimated to audit.

VI. Preparation of Estimate.

Illustrative Work estimates on implementation of JJM for the financial year 2019-
20 and 2020-21 shown in table below:
Sl. Amount
Particulars Unit Qty Rate
No (`)
1) Providing and laying distribution
line etc at Falkawn

(a) Using 40 mm G.I Pipe Rm 1743.75 655.10 1142330.63

3143569.12
(b) Using 20 mm G.I Pipe Rm 10387.5 302.63 5
 2)
Providing fitting and fixing
of wheel valve
(a) 20mm dia wheel valve No. 568 1113.00 632184.00
3)
Installation of New T-Cluster
(Analysis of Rate attached) No. 15 24710.00 370650.00
4) Road Indemnification M2
30 1741.00 52230.00
TOTAL 5340963.75

As seen in Table above, the rate for Sl.No.1,2 and 3 includes cost of pipes, labour
charge and GI specials. As per E-in-C circular vide.
D-15015/1/2016-E-in-C/PHE/20 Dt. 05.02.2019 on rate of pipes and
W.12015/19/2008-E-in-C/PHE/105 Dt.21.02.2019 on laying rate, it can be
assumed that 40mm pipes were laid at a depth of 100 cm and 20mm pipes at
50cm depth. However, breakup of each component included in the rate could not
be ascertained as the estimates were not based on SOR of MPWD and the
department’s analysis of rate was not produced to audit.
It was also noticed that the average expenditure incurred on Labour (MR) during
2019-20 and 2020-21 was 46.80% and 51.08% of the total expenditure. But in the
absence of vital records, audit could not verify the admissibility of the estimated
rates.
The department may intimate the basis on which these estimates were prepared.