Chandigarh: Audit flags discrepancies in functioning of Forest Dept

Chandigarh, April 28

The draft report of the Director General of Audit (Central), which comes under the Indian Audit and Accounts Department, Government of India, has found several discrepancies in the functioning of the Forest Department, Chandigarh.

Obtained under the RTI Act, the draft report revealed the department allotted various works, with a deadline of March 2022, to different contractors in 2021, but less than half of these were finished within the stipulated period.

During the checking of records maintained by the department for 2021-22, it was noticed physical progress of work ranging between 1% and 45% had been achieved by the contractual agencies with an expenditure of Rs 5,57,065, against the total contract amount of Rs 23,31,215, which had resulted in slow achievement of target.

A reply has been sought for reasons for non-completion of works in time, and departmental action taken against the contractor.

Further, the report noticed the department carried out reconciliation of remittances made into the treasury as well as payments made through treasury up to June 2018 as per verification made by the Treasury Officer, UT.

“The reconciliation with treasury from September 2020 to March 2022 was pending during the course of audit (November 2022),” pointed out the report. Due to non-reconciliation with the treasury, leak of revenue/misappropriation, embezzlement and discrepancy, if any, cannot be ruled out,” observed the audit report.

As per the treasury rules and guidelines issued by the Finance Department, UT Administration, regarding receipts, reconciliation and maintenance of the accounts of receipts realised by way of cash or cheque/draft, it is required that receipts must be deposited in the treasury either the same day or in the morning of next day.

Similarly, regarding payments deposited in treasury, figures are required to be entered into remittance book and at the end of the month. The deposits made into the treasury are required to be reconciled with treasury books and discrepancy, if any, should be rectified immediately.

The audit report asked the department to explain the reasons for not adhering to the financial rules for non-reconciliation with treasury.

During checking of records, the audit report also observed the department had set up the Chandigarh Bird Park at a cost of Rs 5 crore during 2021-22 and the same had been opened for public in November 2022.

It was observed the department, with the consent of the UT Administrator, created a society — Forest Society for Conservation (FOSCON) — in November 2022 and deposited Rs 85.95 lakh collected as entry fee from public visiting the park during 2021-22 in the society account.

The report pointed out it was in contravention of the provisions of Article 267, which stipulates that all revenues received by the state government, all loans raised by the government by the issue of treasury bills, loans or ways and means advances, and all money received by the government in repayment of loans shall form a “consolidated fund of state”.

As per the norms, all other public money received by or on behalf of the Centre or state government shall be entitled to the public account of India or public account of the state, as the case may be. No money out of the consolidated fund of India or consolidated fund of state shall be appropriated except in accordance with law and for purposes and in the manner provided in the Constitution.

Eentry Fee kept out of consolidated fund

Report says dept created a bird park and opened it for public in 2022. With UT Administrator’s consent, it created Forest Society for Conservation and deposited in it Rs 85.95 lakh collected as entry fee from public during 2021-22 in contravention of provisions of Article 267. Norms stipulate deposit of public money in consolidated fund of state.

Less than half of work completed

Less than half of the work given to contractors in 2021 was completed; physical progress of only 1% to 45% was achieved till March 2022 deadline. Against contract amount of Rs 23.31 lakh, only Rs 5.57 lakh was spent. Dept has been asked to explain reasons for non-completion of works in time and action taken against contractors.

Non-reconciliation of receipts

Dept carried out reconciliation of remittances made into treasury and payments made through treasury up to June 2018. But reconciliation from Sept 2020 to March 2022 was pending. Leak of revenue/misappropriation, embezzlement cannot be ruled out, the report observed. It has been asked to explain reasons for not adhering to financial rules.