Inspection Report on the accounts of the Secretary, Mizoram State Social

Welfare Board, Aizawl for the period from 01.04.2009 to 31.03.2014.

PART-I

Introductory:
The accounts of the Secretary, Mizoram State Social Welfare Board,
Aizawl, for the period from 01.04.2009 to 31.03.2014 were test audited by an
audit party from the office of the Principal Accountant General (Audit),
Mizoram, Aizawl during the period from 26-27.06.2014, 01.07.2014 to
04.07.2014, 14.07.2014 and 18.07.2014.

Incumbency:
During the period covered by audit, the under mentioned officers held
the post of the Chairperson and the Secretary cum Drawing and Disbursing
Officer (DDO) of the office, as shown against each of them:Chairperson:
Sl.
No.

Name

1.

LalengrualiSailo

2.

Zothankimi

Designation

Period
From

To

Chairman

06.06.06

15.07.09

-do-

16.07.09

Till date

Secretary cum Drawing and Disbursing Officer:

Sl.
No.

Name

G. Lalhmingthangi

2.
3.

Designation

Period
From

To

Secretary

16.04.08

25.07.11

Ms.Lallianpuii

-do-

26.07.11

10.04.13

SapkailianaSailo

-do-

10.04.13

Till date

Position of fund:
1

(` in lakh)
Year

2009-10

2010-11

2011-12

2012-13

2013-14

Opening
Balance

Receipt
during the
year

Total

Plan

3.47

98.97

Non-plan

9.52

Plan

Expenditure

Closing
balance

102.44

101.98

0.46

43.36

52.88

52.77

0.11

0.46

119.20

119.66

117.70

1.97

Non-plan

0.11

56.43

56.54

55.41

1.13

Plan

1.97

59.87

61.84

56.15

5.69

Non-plan

1.13

71.71

72.84

72.42

0.42

Plan

5.69

115.73

121.42

121.26

0.16

Non-plan

0.42

73.13

73.55

73.49

0.06

Plan

0.16

98.20

98.36

97.19

1.18

Non-plan

0.06

114.73

114.79

114.64

0.15

Category

Disclaimer Note:
The Inspection Report has been prepared on the basis of information
furnished and made available by the auditee unit. The Principal Accountant General
(Audit), Mizoram, Aizawl disclaims any responsibility for any misinformation
and/or non-information on the part of the audit entity

Review of last Inspection Report:

Replies to paras II B/No.1 to 5 contained in the Inspection Report on the
Accounts of the Chairman, MSSCB, Aizawl for the period from 01.04.2003 to
31.03.2008 was furnished vide No.SSWB 88/2007-2008 dated 18.07.2014.

PART II A
NIL
PART II B
Para 1:Implementation of Integrated Scheme for Womens Empowerment (ISWE):
`17.90 lakh observations thereof:
Integrated Scheme for Womens Empowerment (ISWE) of North-east region was
launched to address the socio economic need of the region targeting empowerment of
women and development of children for the holistic development of the area. The
mission of ISWE is area development through concerted community action under the
guidance of State Social Welfare Boards by facilitating Community Based Groups
(CBGs) with demand led convergence of available services and resources to overcome
the multiple dimensions of poverty for holistic development.
To implement the project, four Community Based Groups (Khawbung-I CBG,
Khuangleng

CBG,

Khawbung-II

CBG

and

Khuangthing

CBG)

under

MizoHmeicheInnpi Pawl (MHIP), Tuipuiral Block, Champhai District as Mother NonGovernmental Organisation (MNGO) were shortlisted for setting up of one piggery
unit, one chilly cultivation unit and two poultry units respectively.
Details of Receipt and expenditure in connection with the implementation of the
scheme are given in Appendix - I.
Test check of records such as cash books, Annual Accounts, Inspection Reports,
etc. reveal the following discrepancies:
1. Annual Accounts:
Annual Accounts for the years 2008-09, 2009-10 and 2010-11 of the Mizo Hmeichhe
Inuihkhawm Pawl (MHIP), Sub-Hqrs., Champhai, the MSNGO of the four CBGs was
attested by the State board and forwarded to the Central Board on 28.05.2012. It was
seen that a sum of ` 1,70,000 towards motivational camp disbursed on 22.05.2009 (as
per State Boards Cash book) was not reflected in the accounts.
Reasons thereof may please be furnished.

2. Training of beneficiaries:
As per guidelines of the ISWE, the project was to be implemented in three phases
viz:
Phase I: Mobilisation and Awareness.
Phase II: Setting up of need based Economic activities such as handlooms,
handicrafts etc., vocational training with career counselling, support
services etc.
Phase III: Impact Study Monitoring and guidance to the project by respective
State Board, evaluation and impact study by an independent agency to
further strengthen the project and review & rectification of
shortcomings.
Orientation and Training would form an integral part of the project. Moreover,
regular inspections would be conducted by the State Board and reports submitted
to the Central Board.
(A) As per revised accounts for the years 2008-09, 2009-10 and 2010-11 submitted to
the CSWB on 28.05.2012 and cash book maintained by the State Board, funds for
training and motivational camp amounting to `2.20 lakh (` 50,000 on 01.11.08
and 22.05.09) and (`1,70,000 on 13.03.08) respectively were disbursed and
utilized during 2008-09. As per Inspection Reports dated 02.12.10 (3 nos.) and
15.02.12 (1 no.) submitted to Central board, training on maintenance of records
and accounting was conducted on 9th and 10th June 2010.
It can be seen from above that funds for training and motivational camp were
stated to have been utilised during 2008-09 while physical inspection reports of
the State Board stated that training (for maintenance of records and accounts) was
imparted during the 2nd week of June 2010 only.
Reasons for exhibiting funds amounting to ` 2.20 lakh for training and
motivational camp as utilized in 2008-09 while actual training was imparted
during 2010-11 may please be stated.
(B) Further, scrutiny revealed that the Inspection Reports suggested imparting
orientation training on the technicalities of schemes in connection with the
economic activities taken up by the CBGs for effective implementation of the
programme.

However, no documentary evidence in support of Vocational Training provided to

the beneficiaries for economic activities viz: piggery, poultry and chilly
cultivation was produced to audit.
Thus, without any vocational training provided to the beneficiaries on the
technicalities of the economic activities viz: piggery, poultry and chilly
cultivation, the effectiveness of the scheme is doubtful.

3. Impact Study:
As per Phase III (Impact Study)of guidelines of the ISWE, monitoring and guidance
to the project would be an ongoing process to be taken up by the State Board. Experts
in the field and officials from the Central Board would provide orientation to the
CBGs running the programme minimum twice a year to ensure sustainability of the
project, quality of the products and to maintain quality services being rendered.
Evaluation of the project, impact study of the scheme to further strengthen the project
through review and rectification of shortcomings was required to be done as per
guidelines of the project.
However, it was noticed in audit that there was no documentary evidence in support
of impact study done to evaluate and assess the impact of the scheme/project and to
further strengthen the project thorough review and rectification of shortcomings.
Thus, audit could not verify whether the objectives of the project were achieved.
Para 2: Implementation of Rajiv Gandhi National Creche Scheme observations
thereof:
Rajiv Gandhi National Creche programme is an initiative for providing day care
facilities for children of the age group of 0-6 years with at least 50% of the children
from below poverty line (BPL) families.
As per terms and conditions of the scheme, utilisation certificate (UC) in the
prescribed form as well as the audited statements of accounts in three forms i.e.
receipt and payments account, income and expenditure account and balance sheet duly
signed by chartered accountant/ Government auditor will be submitted by the
5

organisation to the central social welfare board/ state board within two months of the
end of the financial year.
Test check of records in connection with implementation of Rajiv Gandhi National
Creche Scheme revealed the following discrepancies.
(I)

Overstatement of Expenditure to the tune of ` 28,256 (during 2009-10)

and ` 1,62,122 (during 2013-14)
As per Receipt and Expenditure Accounts (2009-10) prepared by the Mizoram
State Social Welfare Board (MSSWB) and Chartered Accountants Report
(Plan Fund) for the year ending March 2010, expenditure of the MSSWB in
connection with Creche Programme during 2009-10 was exhibited as
`84,73,024. However, as per Cash Book the total expenditure amounted to
`84,44,768 which resulted in overstatement of expenditure by `28,256
(`84,73,024 minus ` 84,44,768). Details are given in Appendix-2.
Moreover, Expenditure during the year 2013-14 was exhibited as ` 88,40,246.
However, as per Cash Book the total expenditure under Creche programme
amounted to ` 86,78,124. The Expenditure was overstated by ` 1,62,122
(`88,40,246 minus ` 86,78,124). Details are given in Appendix-2.

(II)

Wanting Utilization Certificate: ` 69.50 lakh

For the year 2013-14, the MSSWB released an amount of ` 69.50 lakh to 168
agencies viz: Mizo Hmeichhe Insuihkhawm Pawl (MHIP), Young Mizo
Association (YMA), Mara Chano Py (MCHP), Acceptable Improvement
Kindness Organised (AIKO) etc. for implementation of Creche Programme.
In this regard it was seen that the concerned agencies did not submit statement
of accounts and Utilization Certificates (UCs) for the whole amount of ` 69.50
lakh to the State Board till date of audit (7/2014).Details are given in
Appendix-3.
Steps may be taken to obtain UCs from the concerned agencies under
intimation to audit.

Para 3: Non-adjustment of diverted fund - ` 1.62 lakh.

Central Social Welfare Board, Delhi while approving Budget Estimates of the
Mizoram State Social Welfare Board issued various instructions, inter alia, to be
strictly adhered to while incurring expenditure during the current and ensuring
financial year viz: the State Board may send Monthly Expenditure Report to Central
Social Welfare Board to assess flow of funds/control of diversion of funds and to
streamline expenditure periodically. The State Board was further instructed
categorically against diversion of fund and to submit the action taken report to the
CSBW, if any.
Test check of Cash Books revealed that during the years 2010-14, the State Board
diverted ` 105.56 lakh from Plan to Non-Plan to meet salary and office expenditure as
detailed below:
YEAR: 2010 2011
Sl.
No.
1.
2.
3.
4.
5.
6.

Date of Diversion from Plan

Fund as per Cash Book
02.06.10
26.07.10
28.09.10
27.10.10
30.11.10
27.01.2011
Total

Amount
(in `)
3,00,000
1,00,000
4,19,805
5,00,000
6,50,000
3,36,343
23,06,148

Date of
Adjustment/Refund
11.8.10
11.10.10
05.01.11
29.03.11
31.03.11
30.03.11
Total
Balance

Amount
(in `)
3,00,000
4,19,805
8,50,000
5,05,591
90,752
1,40,000
23,06,148
-Nil-

Date of
Adjustment/Refund
17.10.2011
12.03.2012
15.03.2012
28.08.2012

Amount
(in `)
10,01,602
6,00,000
6,00,000
2,08,853

YEAR: 2011 2012

Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.

Date of Diversion from Plan

Fund as per Cash Book
04.07.2011
01.09.2011
Nil
17.10.2011
28.10.2011
02.12.2011
29.12.2011
07.01.2012
Total

Amount
(in `)
3,24,935
3,39,952
3,36,715
3,01,752
4,89,704
1,00,000
1,50,000
3,67,397
24,10,45

Total
Balance

24,10,455
Nil

YEAR: 2012 2013

Sl.
No.
1.
2.
3.
4.
5.
6.
7.

Date of Diversion from Plan

Fund as per Cash Book
04.06.2012
02.07.2012
06.08.2012
27.09.2012
06.12.2012
14.02.2013
22.03.2013
Total

Amount
Date of
(in `)
Adjustment/Refund
6,75,580
18.6.2012
4,35,740
18.09.2012
3,17,000
06.11.2012
4,40,000
22.03.2013
20,000
30.03.2013
17,000
6,90,997
25,96,317
Total
Balance

Amount
(in `)
6,75,580
3,17,000
8,20,000
92,740
6,90,997
25,96,317
Nil

YEAR: 2013 2014

Sl.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Date of Diversion from Plan

Fund as per Cash Book
29.03.2013
07.05.2013
24.05.2013
31.05.2013
25.07.2013
01.08.2013
29.08.2013
06.09.2013
12.12.2013
30.01.2014
Total

Amount
Amount
Date of
(in `)
(in `)
Adjustment/Refund
40,000
28.10.2013
10,70,000
30,000
25.10.2013
11,70,710
2,00,000
28.03.2014
8,40,678
10,34,988
50,000
5,05,438
5,35,284
25,000
6,22,800
2,00,000
32,43,510
Total 30,81,388
Balance 1,62,122

It can be seen from the above that an amount of ` 1.62 lakh diverted from Plan Fund
to Non-Plan fund during 2013-14 is yet to be adjusted as of date (07/2014).
The State Board submitted statement of diversion of fund showing unadjusted
balance only for the year 2014. The details of diversion of fund and adjustment
thereof for the years 2010-11, 2011-12 & 2012-13 were not reported to the Central
Board in violation of the instruction issued by the Central Board.
Para 4: Implementation of Awareness Generation Programme - Observation thereof:
The Awareness Generation programme is one of the most important programmes of
the Board through which awareness amongst women and community at large on
legal rights, socio economic status and problems of women in general is explored
8

and provides an opportunity to address such issues. The scheme is implemented by

the State Board through Non-Governmental Organisations (NGOs).
Under the programme, the Central Social Welfare Board (CSWB) released grant
amounting to `4,80,000 (2010-12) and `13,15,000 (2009-10 to 2012-13) under the
Centralized and De-centralized camps respectively. Details are given in Appendix-4.
Test check of records revealed that for theyear 2009-10, 16 NGOs did not submit
statement of accounts and Utilisation Certificates (UCs) regarding utilisation of the
fund amounting to `1,60,000. Similarly, for the year 2010-11 and 2011-12, 19 NGOs
and 6 NGOs did not submitted UCs amounting to `1,90,000 and `60,000
respectively.
Thus due to non-availability of Utilization Certificates audit could not verify the
authenticity of expenditure amounting ` 4,10,000 (`1,60,000 + `1,90,000 +
`60,000) incurred by 41 NGOs (16 + 19 + 6) in connection with implementation of
Awareness Generation programme.Details are given in Appendix-5.
Statement of accounts and UCs for an amount of ` 4,10,000 from the 41 NGOs may
be obtained under intimation to audit.
Para 5: Procurement of furniture, stationery and allied items ` 10.45 lakh
observations thereof.
Rule 187 (3) of General Financial Rules, 2005 provides that while receiving goods
and materials from private supplier details of the material so received should be
entered in the appropriate stock register. The officer-in-charge of stores should
certify that he has actually received the material and recorded it in the appropriate
stock register.
Further, the State Government, Printing & Stationery Department vide Office
Memorandum No.D.29012/1/2008-P&S dated 12April 2010 reiterated that all the
departments shall place their indent of stationeries items to the Controller, Printing
& Stationery Department in accordance with the various instructions issued in this
regard from time to time so as to ensure economy in purchase of stationery articles.
Further, in case the stock is exhausted in the Printing and Stationery Department, the
department shall purchase stationery articles from local markets as per approved
9

rates after obtaining Non-Availability Certificate (NAC) from the Controller of

Printing and Stationery Department, Aizawl.
Test check of records such as cash books, bills, vouchers, etc. maintained by the
office of the Mizoram State Social Welfare Board revealed that an amount of `10.45
lakh was incurred towards purchase of fixed assets (furniture) and consumables such
as stationery and allied items, etc. during the year 2012-13 and 2013-14 from local
market/stores without obtaining NAC. Details are shown in Appendix-6.
Reasons for purchase of stationery items from the local market without obtaining
NACs from the Controller of Printing & Stationery, Mizoram, Aizawl was not on
record.
Further, as required by GFR, no certificate were recorded on the body of the
vouchers that the goods were received in good condition and quantity. Moreover, the
office did not maintainStock registerfor goods procured during the audit period.
Thus, audit could not exercise check on the expenditure amounting to `10.45 lakh
incurred towards procurement of stationery items and furniture during 2012-13 and
2013-14.
Para 6: Travelling Expenses observations thereof:
Test check of records such as bills, vouchers etc. revealed that Mizoram State Social
Welfare Board incurred an amount of `1.46 lakh in connection with payment
towards reimbursement of Travelling Expenses during the period 2012-13 and 201314 as detailed below:
2012-13
Date

Vr.No.

Amount

19.12.12
14.03.13

65
91

2000
2250

25.03.13

108

1400

25.03.13

109

2680

25.03.13

110

4100

Remarks

(in `)
Wanting Boarding
pass, tickets/APRs

10

25.03.13

112

Copy of Boarding Pass not

available
Copy of Boarding Pass not
17669 available

25.03.13

113

Copy of Boarding Pass not

13733 available

13733

25.03.13

114

2930

25.03.13

151

Copy of sumo Ticket for

`2930/- not available
Copy of ticket/APR for IB
3750 and taxi fare of `2650/- not
available.
85706

25.03.13

111

Sub-Total

32794

11.06.13

13

3000 Copy of Ticket not available.

4050

05.07.13
19.08.13

27
50

2000
1145

25.10.13

89

41320

11.11.13

97

2500

12.11.13

99

1500

31.03.14

198

4750

Sub-Total
Total

17669

5330

2013-14
13.05.13

2650
69776
3000

Copy of Boarding Pass not

available

60265
145971

32794

41320

44320
114096

As seen from the above table due to non-maintenance/availability of copies of

boarding pass and tickets/APRs audit could not vouchsafed expenditure amounting
to `1.14 lakh incurred towards reimbursement of Travelling Expenses.
Para 7: Non-preparation of Bank Reconciliation Statement.
The office of the Mizoram State Social Welfare Board (MSSWB), Aizawl
maintained 2(two) nos. of Bank Account for implementing various schemes viz: SBI
A/c No.10763513227 (Non-plan fund) and SBI A/c No.10763511571 (Plan fund).
The position of receipt of fund and expenditure thereof under Plan and Non-plan of
the MSSWB furnished to audit is as given below:

11

Year
2009-10
2010-11
2011-12
2012-13
2013-14

Category

Opening
Balance

Plan
Non-plan
Total
Plan
Non-plan
Total
Plan
Non-plan
Total
Plan
Non-plan
Total
Plan
Non-plan
Total

3.47
9.52
12.99
0.46
0.11
0.57
1.97
1.13
3.1
5.69
0.42
6.11
0.16
0.06
0.22

Receipt
during the
year
98.97
43.36
142.33
119.20
56.43
175.63
59.87
71.71
131.58
115.73
73.13
188.86
98.20
114.73
212.93

Total

Expenditure

Closing
balance

102.44
52.88
155.32
119.66
56.54
176.2
61.84
72.84
134.68
121.42
73.55
194.97
98.36
114.79
213.15

101.98
52.77
154.75
117.70
55.41
173.11
56.15
72.42
128.57
121.26
73.49
194.75
97.19
114.64
211.83

0.46
0.11
0.57
1.97
1.13
3.09
5.69
0.42
6.11
0.16
0.06
0.22
1.18
0.15
1.32

It can be seen from the above that the MSSWB use to retain cash balance at the end of
every financial year ranging from `0.22 lakh to `6.11 lakh. It was, however, noticed
in audit that the office did not carry out reconciliation with bank during the entire
period covered by audit i,e 2009-10 to 2013-14.
Due to non-reconciliation with bank, audit could not ascertain the actual cash balance
retained by the office at the end of each financial year.
Para 8: Discrepancies in expenditure figures between Cash Book and Annual Accounts
under the Head POL and maintenance of vehicles
Scrutiny of Cash Books and Annual Accounts for the year 2009-10 to 2013-14
revealed discrepancies between the expenditure figures booked in the cash books
and Annual Accounts under Head POL and maintenance of vehicles.
A comparative expenditure statement under Head POL and maintenance of
vehicles is given below:
Table
(In `)
Year
As per Annual Accounts
2011-12
4,36,854
2012-13
2,89,535
2013-14
4,00,000
Details are given in Appendix-7

As per Cash Book

3,64790
3,51,534
4,00,500

Difference (-) less (+) excess

(+) 72,064
(-)61,999
(-)500
12

It could be seen from the above table that during the year2011-12, the Annual
Accounts reflected excess figure of `72,064 over Cash book while during2012-13 &
2013-14 less figures (`61,999 and `500 respectively) were reflected in the Annual
Accounts over Cash Book.
Reason for discrepancies was not on record.

Part III
NIL

Sd/Deputy Accountant General

13

kaya-alaya p`Qaana mahalaoKakar,,

imajaaorama,,
Aa[jaaola - 796 001
OFFICE OF THE
PRINCIPAL ACCOUNTANT GENERAL, MIZORAM,
AIZAWL - 796 001
Phone No: 0389-2336434, Fax: 0389-2333434.
Memo No: PAG-MIZ/LB&AB/MSSWB-IR/2014-15/

To

The Secretary,
Mizoram State Social Welfare Board,
Aizawl, Mizoram.
Subject:

Inspection Report on the accounts of the Secretary, Mizoram State Social

Welfare Board, Aizawl, Mizoram for the period from 01.04.2009 to 31.03.2014.

Sir,
I am to send herewith a copy of the Inspection Report on the accounts of your
office for the period from 01.04.2009 to 31.03.2014 which was audited by an audit party
during the period from 26-27.06.2014, 01.07.2014 to 04.07.2014, 14.07.2014 and 18.07.2014
for information and necessary action. Replies to the observations pointed out may kindly be
furnished within 6(six) weeks from the date of receipt of this report.

Yours faithfully,

Enclo: As stated above.

Assistant Audit Officer/LB & AB Cell
Memo No: PAG-MIZ/LB&AB/MSSWB-IR/2014-15/

Dated: 11.08.2014

Copy forwarded for information and necessary action to:1

2

The Finance Commissioner, Finance Department, Government of Mizoram, Aizawl.

The Secretary, Social Welfare Department, Government of Mizoram, Aizawl.
Sd/Assistant Audit Officer/ LB & AB Cell
14

kaya-alaya p`Qaana mahalaoKakar,,

imajaaorama,,
Aa[jaaola - 796 001
OFFICE OF THE
PRINCIPAL ACCOUNTANT GENERAL, MIZORAM,
AIZAWL - 796 001
Phone No: 0389-2336434, Fax: 0389-2333434.

Memo No: PAZ-MIZ/LB&AB/IR-DLAO, Aizawl/2014-15

To
The District Local Administration Officer,
Aizawl District, Mizoram.
Subject:

Inspection Report on the accounts of the Director, Local Administration

Department, Aizawl, Mizoram for the period from 01.11.2011 to 31.10.2013.

Sir,
I am to send herewith a copy of the Inspection Report on the accounts of your
office for the period from 01.11.2011 to 31.10.2013 which was audited by an audit party
during the period from 18.11.2013 to 19.11.2013 for information and necessary action.
Replies to the observations pointed out may kindly be furnished within 6(six) weeks from the
date of receipt of this report.

Yours faithfully,
Enclo: As stated above.
15

Assistant Audit Officer/LB & AB Cell

Memo No: PAZ-MIZ/LB&AB/IR-DLAO, Aizawl/2014-15/

Dated: 12.05.2014

Copy forwarded for information and necessary action to:1. The Secretary to the Government of Mizoram, Finance Department, Aizawl.
2. The Secretary to the Government of Mizoram, Local Administration Department, Aizawl.
3. The Director, Local Administration Department, Govt. of Mizoram, Aizawl.
Sd/Assistant Audit Officer/ LB & AB Cell
Memo No.PAG-MIZ/AB-MSSWB/2014-15/

Date:

Copy to:
1. The Secretary /Finance Commissioner, Finance Department, Government of Mizoram
for kind information.
2. The Secretary, Social Welfare Department, Government of Mizoram for kind
information.
3. The Secretary, Mizoram State Social Welfare Board, Aizawl. He is requested to
furnish para-wise replies within six weeks from the date of receipt of the
Inspection Report.

16