SPEED POST No.MHWDP/AC/2015-16/ SEDP HP Mid Himalayan Watershed Development Project Solan Dated: Solan, the &! o} - 2017 From: Chief Project Director MHWDP, Solan. To: Mr. Ranjan Samantary Team Task Leader Agriculture and Rural Development Unit The World Bank Hindustan Times House, 18-20 Kasturba Gandhi Marg, New Delhi - 110 001 Subject: H.P. Mid Himalayan Watershed Development Project (Credit No. 4133-IN) and Additional Financing for HPMHWDP (Credit No. 5159-IN)-Audit Certificate for the year 2015-16. Sir, Principal Accountant General (Audit ) Himachal Pradesh Shimla has sent Audit Certificate for the year 2015-16 vide their letter number 2016-17/757-60 dated 11/2016 for Credit No. 4133-IN and letter number 2016-17/785-88 dated 1-12-2016 for Credit No. 5159-IN to this office. Kindly find enclosed copies of the same alongwith statement of expenditure, statement of re-imbursement and management letter. The project is making continuous sincere efforts to settle the old objection which are reflected in the report. However, comments to the audit observations are being sent separately please. Enclosure: As above. Yours faithfully, Chief Project Director HP, MHWDP, Solan. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
SPEED POSTNo.MHWDP/AC/2015-16/ SEDP
HP Mid Himalayan Watershed Development Project Solan
Dated: Solan, the &! o} - 2017
From: Chief Project DirectorMHWDP, Solan.
To: Mr. Ranjan SamantaryTeam Task LeaderAgriculture and Rural Development UnitThe World BankHindustan Times House, 18-20Kasturba Gandhi Marg, New Delhi - 110 001
Subject: H.P. Mid Himalayan Watershed Development Project (Credit No. 4133-IN) andAdditional Financing for HPMHWDP (Credit No. 5159-IN)-Audit Certificate forthe year 2015-16.
Sir,
Principal Accountant General (Audit ) Himachal Pradesh Shimla has sent Audit
Certificate for the year 2015-16 vide their letter number 2016-17/757-60 dated 11/2016 for
Credit No. 4133-IN and letter number 2016-17/785-88 dated 1-12-2016 for Credit No. 5159-IN
to this office. Kindly find enclosed copies of the same alongwith statement of expenditure,
statement of re-imbursement and management letter. The project is making continuous sincere
efforts to settle the old objection which are reflected in the report.
However, comments to the audit observations are being sent separately please.
Enclosure: As above.
Yours faithfully,
Chief Project DirectorHP, MHWDP, Solan.
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Government of India s UR mrT7
Indian Audit and Accounts Department 4 «01 »cl e åw vfltr ftafrfPrincipal Accountant General (Audit) V&WJTUa<Nell, LlT(
Closing Balance ( if cash balances are controlled by the entity (C-D) 51576.45 96173.73 147750.18
Notes:1 Information about the basiss of preparation of the financial statement with regards to Financial Rules and codes applicable
2 The above figures will be based on monthly/quarterly abstract accounts prepared by the accounts compiling officers,duly reconciled by the
respective DOOs., with details of un-reconciled amounts to be furnished.3 Names of accounting units whose financial statements are aggregated to prepare the consolidated accounts are C.P.D. Office,Solan,R P.D. Bilaspur,
R.P.D. Dharamshala, D.W.D.Os. Nahan, Solan,Swarghat,Namhol,Rampur,Kullu,Mandi,Sujanpur,Nurpur, Baner and Chuwari.
4 Any other project specific note PCGFCtroieCt Lirer
Pr-,Uit Al5MtQ PRGBratm afTCRR. Proj
ANNEXURE-2(IN Rs.,OOO)
NAME OF PROJECT: HP-MID HIMALAYAN WATERSHED DEVELOPMENT PROJECTCREDIT NO. 5159-INRECONCILATION OF CLAIMS TO TOTAL EXPENDITUREREPORT FOR THE YEAR ENDED 3/31/2016
PARTICULARS SCHEDULE CURRENT PREVIOUS YEARS PROJECT REMARKSYEAR (2013-14) (2014-15) TO DATE
(2015-16)1 2 3 4a 4b 5 6
Sank Funds claimed during the year (A) 1 721143 459515 544000 1724658Total Expenditure made during the year
Expenditure not Claimed (E) (Beneficiary Share) IV 51576 48328 47846 147750
Total Elegible Expenditure Claimed 901427 574395 680000 2155822F=B-{C ) -(D)-E)
World Bank Share @ 80% of(F) above (G.) 721143 459515 544000 1724658
PCC rt..h ogc DirectorC.F.A.0. Pr C.C.F,-"ip-(NEE.P.ROJECT wd De Pr
Date Date 22nd September,2016Notes 1. Total Expenditure made during the year (B above) must be the same s total expenditure shown on the statement of Sources and applicationof funds (O on the statement of sources and application of funds)
2 Outstanding A.C. Bills ( C above) reflect funds drawn A.C. Bills that have been booked as expenditure but not settles by the end of the year( i.e. unsettled advance). The project should show in schedule 11 the opening unsettled A.C. Bills, A.C Bills drawn during the year A.C. Bills settled during the year,and A.C Bills unsettled at the end of the year
3 Expenditure not claimed (E above) may reflect timing differences for elegible expenditures incurred during the year but claimed after the year end.
4 Amounts above A& G must be equal.
Annexure-A
H.P. MID HIMALAYAN WATERSHED DEVELOPMENT PROJECT,SOLAN,HP
Statement of Expenditure for the year 2015-16 (Component-wise) (5159-IN)
(Rs.000)Sr. No. SCHEDULE STATEMENT OF EXPENDITURE(Rs. In Thousands) REMARKS
TOTAL BENEFECIARY NET EXPEDT(INCLUDING SHARE ELEGIBLE FORBEN. SHARE) (SUBJECT TO RE-IMB.
RECOICILATION)1 2 3a 3b 3c 4
1 Institutional Strengthening 106727 28 106699
2 Watershed Development & Mangement 707749 41652 666097
3 Enhancing Mountain Liviihood 106529 9895 96634
4 Project Cordination 31998 0 31998
TOTAL 953003 51576 901428
, -cum ject DirerPr. R8#Gft"@f VaRJ8QQ frje ct
town
H.P.MID-HIMALAYAN WATERSHED DEVELOPMENT PROJECT
"MANAGEMENT ASSERTION LETTER"
This assertion letter is provided in connection with your audit of the financial statements
of the MHWDP Project for the year ended 31 03.2016 for the Credit No 5159-IN. We acknowledge ourresponsibility for the fair presentation of the finabcial statements in accordance with the cash basis ofaccounting followed by the Government of India and we confirm,to the best of our knowledge and belief,the following representationsmade to you during audit
* The project financial statements are free of material misstatements,including ommissions
* Project funds have been used for the purpose for which they were provided
* Project funds are eligible for financing under the Loan/Credit agreement
* There have been no irregularities involving management or employees who have a significnt
role in internal controle or that could have a material effect on the project financial statements
* We have made available to you all books of account and supporting documentation relating
to the project
* The project has compiled with the conditions of all relevant legal agreements,including theFinancing Agencies,the Project Agreement, the Project Appraisal Document, the Minutes of
Negociations d the Borrower's Project Implementation Plan.
r ec Dire'"
HPMHWDP,SOLAN
Dt. 22nd September,2016.
Page 1 of 1
Dated: 30-11-2016
Management letter
As no other material came to the notice during audit other than audit
observations mentioned in the audit report on financial statements of the
Additional Financing for Himachal Pradesh Mid Himalayan Watershed
Development Project (Credit No. 5159-IN) for the year 2015-16, no management
letter has been prepared.
Deputy Ac ountan General
(Economic Sector)
Audit and Inspection Report on the accounts of Himachal Pradesh
Mid-Himalayan Watershed Development Project (Credit No. 5159-IN)
for the year 2015-16
Part-1 (A)
Introductory
The present audit certification which, embraced verification of expenditure, test
check of records and examination of books of accounts of Himachal Pradesh Mid-
Himalayan Watershed Development Project, implemented through Himachal Pradesh
Natural Resource Management Society with Forest Department as nodal Department.
A development credit agreement (Credit No. 5159-IN) was signed on 20th
November, 2012 between Government of India and International Development
Association (IDA) for implementation of Mid-Himalayan Watershed Development Project
in Himachal Pradesh State through the HP Natural Resource Management Society. The
project became effective from 22nd January, 2013 and an expenditure of Rs. 9014 lac was
incurred during 2015-16. The funds were provided by the State Govt. and reimbursement
of Rs. 7211 lakh (80%) is being taken from World Bank. The objective of the project is to
assist Himachal Pradesh in improving the productive potential of the project area and
increasing incomes of rural inhabitants in selected watershed through socially inclusive,
institutionally and environmentally sustainable approaches.
Project Components
The four main components of the project have been designed keeping in mind
the objectives of the project. They are:-
(A) Institutional Strengthening
(B) Watershed Development and Management
(C) Enhancing Mountain livelihoods
(D) Project Management and coordination.
The Project consists of the following implementing units:-
(1) Chief Project Director, HP Mid Himalayan WatershedDevelopment Project, Solan.
(2) Regional Project Director, HP Mid Himalayan WatershedDevelopment Project, Bilaspur.
(3) Regional Project Director, HP Mid Himalayan WatershedDevelopment Project, Dharamshala.
(4) Watershed Development Division, Nahan.
(5) Watershed Development Division, Solan.
(6) Watershed Development Division, Swarghat.
(7) Watershed Development Division, Dharamsala.
(8) Watershed Development Division, Nurpur
(9) Watershed Development Division, Chowari.
(10) Watershed Development Division, Sujanpur.
(11) Watershed Development Division, Mandi.
(12) Watershed Development Division, Kullu.
(13) Watershed Development Division, Namhol
(14) Watershed Development Division, Rampur.
The overall administrative control of the Chief Project Director, Himachal Pradesh
Mid-Himalayan Watershed Development Project, Solan was held by Sh. Avtar Singh, IFS
from 01.04.2015 to 31,03.2016.
As per reconciled figures of the Statement of Expenditure, an expenditure of Rs.
9014 lakh was incurred on various activities of the project during the year 2015-16.
Part-I(B): Review of old audit observation pertaining to audit certificate
Audit and Inspection Report for the year 2012-13
Para-1: Irregular diversion of funds Rs. 11.35 lakh
Compliance awaited. Para stands.
Para-2: Non-production of vouchers Rs. 3.20 lakh
Vouchers were not produced to audit. Para stands.
Audit and Inspection Report for the year 2013-14
Para-1: Ineligible expenditure on salary paid to staff engaged on contract
after retirement-Rs. 2.83 lakh
The CPD, HPWDP Solan stated that the pay of retired re-employed official were
fixed on the basis of decision of Executive Committee (EC) on 22-03-2013 vide item 4
(iv) ,However due to audit objection the EC in its 23rd meeting has rectified language/
wording of earlier decision accordingly office memorandum no, Fin(C) B (&) 10/84 dated
01-12-1988 Rule 4 (b) of dated 01-12-1988 which provides that the re-employed
pensioners shall be allowed to draw pay only in the prescribed scale of pay for the post in
which they are re-employed. The initial pay on re-employment shall be fixed at the same
stage as the last pay drawn before retirement However in all this case the non-ignorable
part of pension excluding pension equivalent of gratuity shall be reduced for the pay so
fixed.
In view of the reply and justification, para is settled.
Para-2: Ineligible expenditure charged to project due to short realisation of
Value added Tax from contractors -Rs. 1,57 lakh
Rs.194273 has been recovered and deposited into Govt. Account .Para
proposed for settlement.
Para-3: Ineligible expenditure charged to project on account of purchase of
stationary articles -Rs. 0.10 lakh
Compliance awaited. Para stands.
Audit and Inspection Report for the year 2014-15
Para-1: In-eligible expenditure on additional GPs Rs. 139.38 lakh.
All procedural correspondence (proposal /approval) regarding inclusion of new
GPs in MHWDP which were not in PIP may please supplied to audit. Para stands.
Para-2: In-eligible expenditure on the construction of new works Rs. 82.93
lakh
The CPD, HPWDP Solan stated that the CPD is authorised to decide on new
construction under civil works according to Sr. No. A.7.1 of page No. 153 & 156 of the
PIP. The reply of the department is not acceptable because as per page No 176 of the PIP
CPD is authorised to decide on repair/ special repair / addition & alteration of office/
residential building of projects as per Govt policy and actual needs.
Compliance awaited. Para stands.
Para-3: In-eligible expenditure due to non-deduction of VAT Rs. 5.89 lakh
Compliance awaited. Para stands.
Para-4: In-eligible expenditure due to non-deduction of royalty Rs. 1.22 lakh
The CPD, HPWDP Solan stated that royalty of Rs. 4873 pertaining to DWDO
Mandi was deposited into Govt account vide TC No. 76 dated 21-06-2016. And most of the
material i.e. Bajri sand etc. were imported by the contractors from the Punjab state and the
royalty was being charged by the concerned mining department therefore this project was
not liable to deduct any royalty. The facts regarding deduction of royalty amounting to Rs.
117002 pertaining to DWDO Chowari will be verified in audit.
Compliance awaited. Para stands.
Para-5: In-eligible expenditure on the purchase of materials Rs. 0.31 lakh
The CPD, HPWDP Solan stated that the total expenditure per participant was
within the prescribed norm. Facts will be verified in audit.
Compliance awaited. Para stands.
Para-6: In-eligible expenditure due to purchase of vegetable seeds on higher
rates RsO.13 lakh/-
The CPD, HPWDP Solan stated that the request to obtain quotation was sent to
Deputy Director of Agriculture Hamirpur but the rate for the seeds was not received wit in
the schedule date and time . The reply of the department is not acceptable because the
department should have taken rate of the seeds fixed by the Agriculture department at the
beginning of the financial year.
Compliance awaited. Para stands.
Para-7: Non- deduction of income Tax Rs. 0.04 lakh
Compliance awaited. Para stands.
Para-8 (A): Ineligible expenditure charged to the project on account of freight
charges of Mobile Feed Block Formation Machine Rs. 0.26 lakh
The CPD, HPWDP Solan stated that the approval of world was accorded on
September; 2014.Reply is not acceptable because World Bank approval has been given to
procure "Pine Needle Bailing Machine not for Mobile Feed Block Formation Machine.
Compliance awaited. Para stands.
Para-8 (B): Ineligible expenditure charged to the project on account of vehicle
attached with VVWIP duty- 0.16 Lakh
Compliance awaited. Para stands.
Para-8 (C): Ineligible expenditure charged to the project on account of repair and
maintenance of residential buildings of forest department Rs.1.97
lakh.
The CPD, HPWDP Solan stated that the expenditure was incurred for repair and
maintenance of buildings which were occupied by the project of forest department from
projects funds as per item no 13 of 7th meeting of Executive Committee.
In view of the department, sub para is settled.
Para-9: Irregular payment of stipend Rs. 0.27 lakh
The CPD, HPWDP Solan stated that the candidates belong to vulnerable families
and most of the candidates covered 40-50 KM daily to attend the classes in ITI Nurpur
.The Daily travelling expenditure of almost every students come to more than Rs. 80 per
day in addition to their lunch and refreshment charges. As such the stipend was disbursed
to them in advance in keeping of financial hardship of the candidate.
In view of the department, sub para is settled.
Part-II- A Current Audit
Nil
Part-II -B Current Audit
Para-1 In-eligible expenditure on additional GPs Rs 6.38 crore.
As per provisions contained in Project Implementation Plan (PIP) for the
implementation of HP Mid Himalayan Watershed Development Project(Credit No. 5159-
IN) during the mid-term review the impact assessment study team suggested treatment of
additional 102 Gram Panchayats (GPs) micro-catchment areas as part of the watershed
development to ensure sustainability of the ongoing watershed interventions under the
HPMHWDP project. These additional 102 GPs were required to be contiguous to the
current project areas and part of the same micro-watershed.
During scrutiny of records it was noticed that DWDO, Chowari included 13 Gram
Panchayats (GPs) which were not initially included in 102 GPs. These GPs were not
contiguous to the current project area. Expenditure of Rs. 79730458 as detailed below was
incurred on these 13 GPs during 2015-16, which was ineligible for reimbursement.
S. No. Name of GP Expenditure incurred during 2015-16 Total
In reply the DWDO Chowari stated that the additional GPs were included as per
directions received form Chief Project Director, Solan. The reply was not acceptable as the
inclusion of 13 GPs additional non-contiguous GPs was in contravention of Provision of
PIP. Thus reimbursement of Rs.637, 84,366 was ineligible.
Para-2 Irregular reimbursement of claims of expenditure incurred for training ofnewly recruited forest guards by GoHP Rs. 40.32 lakh
As per Section 5.08 (d) of Article I of Development Credit Agreement between
India and International Development Association "'eligible expenditure' means
expenditure incurred relating to project for goods, works and services, as well as amount
paid or to be paid under sub-projects, to be financed out of the proceeds of the credit
Scrutiny of records in the O/o CPD HP MHWDP Solan, revealed that an amount
of Rs, 5040000 was paid on 03-02-2016 against the bill (without vouchers) raised of
Rs.10080000 by Member Secretary of Natural Resource Management Training
Development Society-cum-Addl. Pr. CCF (R&T), Sunder Nagar on account of conducting
the training courses for newly recruited forest guards from September 2015 to August 2016
at Forest Training Centre Sunder Nagar and Chail.
Further it was noticed that the PCCF HP vide letter dated 21-08-2015 addressed to
the Addl. Chief Secretary (Forest) HP, requested to issue direction to CPD MHWDP Solan
to released the funds for anticipated expenditure of Rs. 10080000 required for training of
newly recruited Forest Guards to reduced financial allocation in the forest department due
to non-receipt of Fourteenth Finance Commission grant. The Additional PCCF (R&T)
Sunder Nagar had raised the bill of Rs. 10080000 on 11-12-2015 and the CPD MHWDP
Solan requested to send self speaking proposal to justify the expenditure so that the matter
could be taken with Executive Committee and World Bank for approval.
As the training/ induction course for forest guards is not the component of the HP
MHWDP finance by the World Bank. Thus the expenditure included in the re-imbursement
claims of the month 02/2016 was not eligible expenditure under Development Credit
Agreement between India and International Development Association. Thus 80% of the
amount Rs.4032000 paid for training /induction course for forest guards was ineligible
expenditure for reimbursement.
In reply the Deputy Conservator of Forest, HPMHWDP Solan, stated that the
payment was released on directions of Add. Chief Secretary (Forest) HP and the amount
was got approved in the 26th Executive Committee and the same was approved from the
World Bank.
The reply is not acceptable, as the Pr. CCF HP vide letter dated 21st August 2015
requested to the Addl. Chief Secretary (Forests) GoHP for arranging funds amounting to
Rs. 1,06,80,000/- from MHWDP for organizing training of newly recruited 240 forest
Guards due to reduced financial allocation and non receipt of Fourteenth Finance
Commission grant and give the direction to CPD MHWDP Solan to release the funds and
Deputy Secretary (Forest ) GOHP vide letter dated 10 September 2015 directed to CPD
for releasing the funds after getting the approval from EC/ Steering Committee. The CPD
vide letter dated 18-01-2016 addressed to Addl. Pr. CCF Research & Training Sunder
Nagar stated that the expenditure for said training to be borne by the HPMHWDP does not
justify and requested to send justification so that the matter can be taken to Executive
committee and also to the World Bank for approval. The approval of the World Bank was
not taken by the MHWDP.
Para-3 In-eligible expenditure on the new constructions Rs. 28.70 lakh
As per PIP for Additional Financing for Mid Himalyan Watershed Development
Plan special repairs/additional/alternations could be carried out under the project. No new
construction was allowed.
As per provisions contained in PIP for the implementation of HP Mid Himalayan
Watershed Development Project (Credit No. 5159-IN) additional 102 GPs were required to
be contiguous to the current project areas and part of the same micro-watershed.
Scrutiny of records revealed that expenditure of Rs.3587711 as detailed below was
incurred during 2015-16 after accorded Technical / Expenditure sanction for the
construction of 4 Community Centre and I Chowkidar hut under WDC Bakani .
S.No. Name of the Building Date of AA Awarded Expenditure/EA Value upto 03/2016
1 C/o Chokidar Hut at Vill. 31-07-2015 687255 671253Theru GP Kilod
2 C/o Community Centre 10-09-2015 1073171 407625Building at Bandla GPBandla
3 C/o Community Centre 04-11-2015 1125431 458825Brehi at Khwota GP Brehi
4 C/o Community Centre 2450734 816414Mehla GP Mehla Nil
5 C/o Community Centre at 17-02-2016 2885598 1233594Dunali GP Brehi
Total 8222189 3587711
It was further noticed that new work was carried out; however, new work was not
permissible, only special repairs/addition/alterations could be carried out under the Project
as per approved PIP. Thus, expenditure of Rs.2870168 incurred on c/o Community Centre
and 1 Chowkidar hut in 4 Gram Panchyats, was ineligible for reimbursement of claim by
the Funding Agency.
In reply the DWDO Chowari stated that the construction works of community
centre were undertaken as per the demand of community of such remote area and were
sanctioned/ approved by the competent authority. The reply was not acceptable as new
constructions were contrary to the provision of PIP as the chief Project Director is
authorised to decide on repair/addition and alteration of office/residential building of
project and these construction works were also carried out in those OPs which were not
included in PIP. The reimbursement of Rs. 2870168 (80% of 3587711) was ineligible.
Para-4 Irregular reimbursement of claims of Rs. 3.50 lakh
There is no provision in the Project Agreement/credit agreement regarding
reimbursement of the advances given to the agencies/service providers from International
Development Association
Scrutiny of records in the O/o CPD HP MHWDP Solan, revealed that an amount
of Rs. 438000 paid on 31-03-2016 as an advance to M/s Trails Conferences & Events, New
Delhi to arrange tickets for exposure visit of the officer of MHWDP was included in the
re-imbursement claims of the month 03/2016 in which the advance was paid. The tour was
cancelled in 04/2016. The 80 % reimbursement of Rs. 350400 was irregular claims of
expenditure, which was not incurred.
In reply the Deputy Conservator of Forest, HPMHWDP Solan, stated that the
exposure visit was cancelled due to non concurrence of Ministry of Finance, Department of
Economic Affair and utilization of amount will be shown to audit in due course. The
amount is still to utilised
Para-5 Irregular expenditure incurred on pay and allowances of surplus staff Rs.1.36
lakh
The pay and allowances of the staff are drawn / paid in accordance with the
sanctioned strength of staff. The amount of pay and allowances drawn in excess of the
sanctioned strength is irregular.
A test check of records of O/o Regional Project Director Dharamshala revealed
that one superintendent remained posted in excess of the sanctioned strength for the period
01/2016 to 3/2016.The expenditure amounting to Rs170340 incurred on pay and
allowances of superintendent is given below:-
Month Amount
01/2016 56780
02/2016 56780
03/2016 56780
Total 170340
Thus 80% Rs. 136272 reimbursed by World Bank was ineligible expenditure.
In reply the DFO (HQ) O/o RPD Dharamshala stated that due to shortage of staff
under various categories hence the competent authority posted superintendents for running
the office. Reply is not acceptable because Superintendent deployed in excess of the
sanctioned strength at the closure of project. Thus reimbursement of expenditure on
deployment of excess staff Rs. 136272 was irregular.
Para- 6 Non / less deduction of income Tax (TDS) Rs. 0.60 lac
As per section 194(J) of income Tax Act, 1961 any person responsible for paying
any sum to any resident for Fee for professional services, Fee for technical services in
pursuance of contract between the service providers and state Govt. shall at the time of
credit of such sum to the account of the service provider or at the time of payment thereof
in cash or by issue of a cheque or draft or by any other mode whichever is earlier deduct
an amount equal to ten percent (10%) of such sum as income tax on income comprised
thereon provided that amount paid/credited exceeds ten thousand rupees.
(A) During test check of records of the 0/0 the DWDO Nurpur, it was noticed that
income tax (TDS) amounting to Rs.31000/- was not deducted from the Krishna Pvt. ITI
service provider during 2015-16. Thus, Rs. 31000 were not eligible for reimbursement.
In reply the DWDO Nurpur stated that the service provider is being requested to
deposit the TDS and compliance will be shown to audit.
(B) During test check of records of the o/o the DWDO Kullu, it was noticed that
income tax (TDS) amounting to Rs. 29182/- was less deducted from the three service
providers which resulted loss of revenue as per detail given below:-
In reply to audit memo no.6 dated 17.10.2016 the DWDO Kullu while admitting
the fact stated that efforts will be made to recover the income tax in current year bills.
Para-7 Ineligible expenditure charged to the project on account of vehicle attached
with VVIP/ Vidhan Sabha duty-Rs. 0.48 Lakh
As per Section 5.08 (d) of Article I of Development Credit Agreement between
India and International Development Association "'eligible expenditure' means
expenditure for goods, works and service, as well as amount paid or to be paid under sub-
projects, to be financed out of the proceeds of the credit.
During test check of log book of vehicles in the o/o the CPD HP MHWDP Solan itwas noticed that vehicle was attached with VVIP /Vidhan Sabha duty during 2015-16 asper detail given below:-
Sr. Vehicle Period Km Rate fixed per Kmno. No. covered for hired Vehicle
after covering 1600Km Rs.,
4 HP 01- 05-10-2015 to 0-10-2015 1880 144569
5 -flHP-01- 01-03-2016 to 31-03-2016 309 8S-1363
The Expenditure on hired Vehicles =27365 +33072=60437
Rs 48350/-(80% of Rs. 60437/-) Cr No.5159
The expenditure was not claimed from the district administration, instead anamount of Rs 48350/-(80% of Rs. 60437/-) already included in final statement ofexpenditure reimbursement claim for the year 2015-16 was ineligible for reimbursement.
In reply the Deputy Conservator of Forest, HPMHWDP Solan, stated that thevehicles were deployed on VVIP duties such as the President, the CM, the Chief Justice ofSupreme Court, etc on the request of the administration. The reply is not acceptable as theactivity does not cover under eligible expenditure.
