- Technical Education Quality Improvement Programme CONSOLIDATED AUDIT REPORT·· FOR FINANCIAL YEAR. 201a-19 CONTENTS OF THE CONSOLIDATION REPORT OF TECHNICAL EDUCATION QUALITY IMPROVEMENT PROGRAMME (TEQIP) PHASE-Ill FOR FINANCIAL ) YEAR 2018-19 S.NO CONTENT PAGE NO. 1 Consolidation Report 1-7 2 Annexure A to(Qualification) Consolidation Report 8-59 3 Annexure B to Consolidation Audit Report 60-65 4 Annexure C to Consolidation Audit Report 66-69 5 Date of Audit Reports of CFls and States 70-72 6 FMR Expenditure Incurred by Implementing Entities 73-76 7 Key Observation of Auditors 77-186 8 Management Letter ( ?81.t2S5 t- 9 Consolidation Utilization Certificate 256-257 10 Annexure 1 to Consolidation Utilization Certificate 258-259 ) 11 Annexure 2 to Consolidation Utilization Certificate 260-263 12 Consolidation Balance Sheet 264-273 ) 13 Accounting Policies and Notes to Accounts 274-304 ., G.R. Garg & Co. Chartered Accountants 2. Information in accordance with the individual financial statements audited by other Auditors; and the reports, Management letters and key observations issued by them have been considered for preparation of the under-mentioned Consolidated Reports on Annual Statutory Audit defined in the Financial Management Manual:- a. Expenditure Incurred by Implementing Entities (SPIU' s / ATU/ CFTis / CFis / /Institutes), b. Date of Audit Report, and c. Key Observations of Auditor d. Management Letter 3. Expenditure disallowed of.!_ 158.9~ Lakhs (including ineligible expenditure, outstanding ;!..- -....: -- - - ,_., bills and expenditure not claimed) has been reported in the Statement of Reconciliation of ) Claims to Total Application of Funds of following implementing units: S.No. Name Nature Amount Disallowed (< in Lakhs) ) 1. Rajas than SPIU 6.93 ) ) 2. Uttar Pradesh SPIU 22.53 ) 3. Uttarakhand SPIU 8.65 4. Himachal Pradesh SPIU 2.96 5. Jharkhand SPIU 2.29 6. GECJalgoan Institutes 0.02 7. MAKA UT, West Bengal Institutes 0.02 8. UCE, Osmania Institutes 45.44 9. GCE, Aurangabad Institutes 0.02 10. BVB' s SPCE, Mumbai Institutes 0.05 11 . UIET, Kurukshetra Institutes 0.25 .. ,., ..... t' ...... .. -~ . 12. BVM, VV Nagar :-..;;. ~n.:::·-? . --./~\\., 0.12 ' ~~§f:::fs···. ~ In~ q.."/'": fl - ·, r - n.'? t,' 1 ' , 1 . ·- . . ~ ~~ I \ .... :., i Page 2 of7 '". ·~. ,,, I·~ Cl FRN ~ ·N : 000214N ~ ew ,f · Delhi .. ~.... I. GrfJ d Ac tO~ ~ - G.R. Garg & Co. Chartered Accountants 777, MRM Chambers, D.B. Gupta Road Karol Bagh, New Delhi - 110005 +9111 23512307, 41546466 info@grgarg.co.in CONSOLIDATION - REPORT We have checked, within the scope of our assignment, the consolidation, for the year ended 31st - March 2019, of the financial statements of 21 Centrally Funded Institutions (CFis), 12 Focus State ------... Project Implementation Unit (SPIU's), 4 Non- Focus State Project Implementation Unit (SPIU's), -- 11 Centrally Funded Technical Institutions_(CFT_!s), ~ Affiliated Technical University(ATU), 48 Institutions, Edell (India) Ltd and National Project Implementation (NPIU) {as per list of - Constituents attached}, implementing Technical Education Quality Improvement Program Phase- III Project under World Bank Credit No. 5874-0IN, which includes the Balance Sheet as at 31st March, 2019, Statement of Income and Expenditure, Statement of Receipt and Payment, Statement of Source and Application of Funds and Reconciliation of Claims to Total Application of Funds for the year ended 31st March, 2019. These statements have been audited and reported upon by other auditors, appointed for the purpose. For the purpose of the consolidation, we have reviewed and relied upon the reports of the said auditors. Exce t as otherwise stated here under, the financial statements of the Constituents mentioned in List of Constituents , have been stated as drawn up as per the requirements of the Financial the _ Management Manual of Technical Education Quality Improvement Programme Phase-III issued in March, 2018 by Department of Higher Education, Ministry of Human Resource and Development, Government of India. Not required to carry out an audit of the individual financial statements, we do not express an audit opinion on the statements, as consolidated and observe as under: 1. Information in accordance with the individual financial statements audited by other Auditors has been considered for preparation of the Consolidated financial statements for the year ended on 31st March, 2019, comprising the Balance Sheet and schedules annexed thereto, Income & Expenditure Account, Receipts & Payments Account, Statement of Source and Application of Funds and Reconciliation of Claims to Total Application of Funds for the year ended on 31 81 March, 2019. .. v Page 1 of7 , ·= : ~ G.R. Garg & Co. Chartered Accountants 13. JNTU College of Institutes (1.24} Engineering, Kakinada 14. SUET, Sangrur CFI 2.33 15. VNIT, Nagpur CFI 8.27 16. NIT, Surathkal CFI 1.53 17. NIT, Silchar CFI 0.27 18. EDCIL EDCIL 58.42 . 19. NPIU NPIU 0.09 Total 158.95 4. Qualification of individual Auditors of States/ ATU's/CFTI' /CFI's/Institutes ) /NPIU /Edell are given in Annexure A and Emphasis of Matter, observations of auditors ' - that are not qualification, mentioned in Audit report of individual auditors are given ·------ - ----··-- . along with Key Observation ,,, _. ' . - .- ' Management Points . .and - - · -- ·· . Letter of auditors. - -· ....,.... - ' ) 5. Seventeen constituents which have received grant during the year from l•t April, 2018 to 31st March, 2019 amounting to {3,602.41 Lakhs and have treated it as capital in nature in - -- - -- -~-----·- - -- ----- - - - . - ... . --,• - the Balance Sheet (Refer Note No. 7 of SPIU's, Note no. 7 of ATUs', Note no. 6 of CFis' ) and Note no. 7 of Institutes' in Notes to Accounts for details). Further, five constituents have adopted "Income Approach" for accounting of government grant and have transferred an amount of - --t 533.46 Lakhs to Income & Expenditure Account, . ·· ~.. corresponding with the amount of expenses incurred by the respective constituents during the year, out of grants received (Refer Note No. 8 of SPIU's , Note no. 7 of CFTI's, Note no. 7 of CFI's and Note no. 8 of Institute in Notes to Accounts for details). Rest of the other Implementing Entities have treated &!ant as revenue in nature and transferred the entire amount of grant received during the year to Income and Expenditure Account. Page 3 of7 G.R. Garg & Co. Chartered Accountants 6. Twelve constituents have ca italized Fixed A~sets purchased during the year in Balance Sheet amounting to~ 2,419.99 Lakhs and not charged to Income & Expenditure Account as recommended fu. Financia1 Management Manual, whereas the other Implementing Entities have charged the same to Income & Expenditure Account (Refer Note No. 11 of SPIU's, Note no. 9 of CFTI's, Note no. 10 of CFI's, Note no. 11 of Institutes' in Notes to Accounts for details). 7. In the course of checking the consolidation, we have also come across certain matters which are given_..~ A rgt_gxure. B. ' Further, during consolidation it was observed that figures of previous year ended 31st March, 2018 have been restated by some of the constituents, the same are given in Annexure C. Based on the above and the consolidation procedures followed, we confirm that in the preparation of the attached consolidated statements, information has been duly incorporated as aforesaid and we have not come across anything that causes us to believe that these statements contain any material misstatements. For G. R. GARG & COMPANY, Place: New Delhi Date: October 21, 2019 (Partner) M. No. - 097327 Page 4 of7 G.R. Garg & Co. Chartered Accountants Centrally Funded Technical Institutes 1 NATIONAL INSTITUTE OF TECHNOLOGY AGARTALA 2 NATIONAL INSTITUTE OF TECHNOLOGY SRINAGAR 3 INDIAN INSTITUTE OF INFORMATION TECHNOLOGY, Manipur 4 INDIAN INSTITUTE OF INFORMATION TECHNOLOGY GUWAHATI 5 NATIONAL INSTITUTE OF TECHNOLOGY UTIARAKHAND 6 NATIONAL INSTITUTE OF TECHNOLOGY MEGHALAYA 7 NATIONAL INSTITUTE OF TECHNOLOGY MANIPUR 8 NATIONAL INSTITUTE OF TECHNOLOGY SIKKIM 9 NATIONAL INSTITUTE OF TECHNOLOGY MIZORAM 10 NATIONAL INSTITUTE OF TECHNOLOGY ARUNACHAL PRADESH 11 NATIONAL INSTITUTE OF TECHNOLOGY NAGALAND Centrally Funded Institutions 1 NATIONAL INSTITUTE OF TECHNOLOGY PATNA } 2 NATIONAL INSTITUTE OF TECHNOLOGY JALANDHAR 3 NATIONAL INSTITUTE OF TECHNOLOGY RAIPUR 4 SARDAR VALLABHBHAI NATIONAL INSTITUTE OF TECHNOLOGY SURAT 5 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA ) 6 NATIONAL INSTITUTE OF TECHNOLOGY SILCHAR ASSAM 7 MAU LANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY BHOPAL 8 NATIONAL INSTITUTE OF TECHNOLOGY DURGAPUR 9 NATIONAL INSTITUTE OF TECHNOLOGY SURATHKAL 10 INDIAN SCHOOL OF MINES DHANBAD 11 NATIONAL INSTITUTE OF TECHNOLOGY CALICUT ) 12 VISVESVARAYA NATIONAL INSTITUTE OF TECHNOLOGY NAGPUR 13 NATIONAL INSTITUTE OF TECHNOLOGY ROURKELA 14 MALVIYA NATIONAL INSTITUTE OF TECHNOLOGY JAIPUR 15 NATIONAL INSTITUTE OF TECHNOLOGY TRICHY 16 NATIONAL INSTITUTE OF TECHNOLOGY WARANGAL 17 MOTILAL NATIONAL INSTITUTE OF TECHNOLOGY ALLAHABAD 18 ZAKHIR HUSSAIN COLLEGE OF ENGINEERING AND TECHNOLOGY ALIGARH MUSLIM UNIVERSITY, ALIGARH 19 INDIAN INSTITUTE OF ENGINEERING SCIENCE AND TECHNOLOGY SHIBPUR 20 NATIONAL INSTITUTE OF TECHNOLOGY JAMSHEDPUR 21 SANT LONGOWAL INSTITUTE OF ENGINEERING AND TECHNOLOGY SANGRUR Institutes 1 BASAVESHWAR ENGINEERING COLLEGE BAGALKOT KARNATAKA 2 AU COLLEGE OF ENGINEERING VISAKHAPATNAM, ANDHRA PRADESH 3 JNTU COLLEGE OF ENGINEERING ANANTPUR, ANDHRA PRADESH (INSTITUTE) Page 5 of7 G.R. Garg & Co. Chartered Accountants 4 JNTU COLLEGE OF ENGINEERING KAKINANDA, ANDHRA PRADESH (INSTITUTE) 5 SVU COLLEGE OF ENGINEERING TIRUPATHI, ANDHRA PRADESH 6 BIRLA VISHWAKARMA MAHAVIDYALAYA, VALLABH VIDYANAGAR, GUJARAT 7 UNIVERSITY INSTITUTE OF ENGINEERING AND TECHNOLOGY ,KURUKSHETRA UNIVERSITY, KURUKSHETRA, HARYANA 8 H.K.E.'s PDACOLLEGE OF ENGINEERING, GULBARGA, KARNATAKA 9 MALNAD COLLEGE OF ENGINEERING, HASSAN, KARNATAKA 10 NATIONAL INSTITUTE OF ENGINEERING MYSORE, KARNATAKA 11 PES COLLEGE OF ENGINEERING MANDYA, KARNATAKA 12 SCHOOL OF ENGINEERING, COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY, COCHIN, KERALA 13 COLLEGE OF ENGINEERING PUNE MAHARASHTRA 14 SRI JAYACHANMARAJENDRA COLLEGE OF ENGINEERING, MYSORE, KARNATAKA 15 BVB's SARDAR PATEL COLLEGE OF ENGINEERING MUMBAI, MAHARASHTRA 16 GOVERNMENT ENGINEERING COLLEGE AURANGABAD MAHARASHTRA 17 GOVERNMENT COLLEGE OF ENGINEERING, KARAD MAHARASHTRA 18 INSTITUTE OF CHEMICAL TECHNOLOGY MUMBAI, MAHARASHTRA 19 WALCHAND COLLEGE OF ENGINEERING SANGLI MAHARASHTRA 20 ALAGAPPA CHETIIAR COLLEGE OF ENGINEERING AND TECHNOLOGY, KARAIKUDI, TAMIL NADU 21 COIMBATORE INSTITUTE OF TECHNOLOGY, COIMBATORE, TAMIL NADU 22 GOVERNMENT COLLEGE OF ENGINEERING SALEM TAMIL NADU 23 GOVERNMENT COLLEGE OF TECHNOLOGY COIMBATORE, TAMIL NADU 24 THIAGARAJAR COLLEGE OF ENGINEERING MADURAI, TAMIL NADU 25 JNTU COLLEGE OF ENGINEERING HYDERABAD TELANGANA (INSTITUTE) 26 JNTU INSTITUTE OF SCIENCE AND TECHNOLOGY, HYDERABAD, TELANGANA (INSTITUTE) 27 UNIVERSITY COLLEGE OF ENGINEERING, OSMAN IA UNIVERSITY HYDERABAD, TELANGANA 28 MAU LANA ABDUL KALAM AZAD UNIVERSITY OF TECHNOLOGY, WEST BENGAL ,KOLKATA 29 FACULTY OF ENGINERING AND TECHNOLOGY, JADHAVPUR UNIVERSITY,JADHAVPUR, WEST BENGAL 30 UNIVERSITY COLLEGE OF TECHNOLOGY, CALCUTIA UNIVERSITY WEST BENGAL 31 PSG COLLEGE OF TECHNOLGY, COIMBATORE, TAMIL NADU 32 DELHI TECHNOLOGICAL UNIVERSITY NCT DELHI 33 FACULTY OF ENGINEERING AND TECHNOLOGY, DEEN BANDHU CHOTU RAM UNIVERSITY OF SCIENCE AND TECHNOLOGY, MURTHAL,HARYANA, 34 FACULTY OF ENGINEERING AND TECHNOLOGY, GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY, HISSAR, HARYANA 35 YMCA INSTITUTE OF ENGINEERING ,FARIDABAD, HARYANA 36 BMS COLLEGE OF ENGINEERING, BANGALORE KARNATAKA 37 BVB COLLEGE OF ENGINEERING AND TECHNOLOGY HUBLI, KARNATAKA 38 AMBEDKAR INSTITUTE OF TECHNOLOGY, BANGALORE KARNATAKA 39 DEPARTMENT OF TECHNOLOGY, SHn _;·-::;;·~R~ITV, KOHLAPUR, MAHARASHTRA ., 40 .. GCOLLEGE OF ENGINEERING, JAL:;:-·....., ' _ ,_ :: ,~ · Sr!TRA l ~. f: ,., , ~ ~:1, • ~4 \-·IF .3 .1.~ '. ~:" - .:; I.iJ, Page 6 of? CI fli .lJb:.,: lll ~~ i .: ·, t;I. ·,IJ~v.P..e_!!,~!l.f _,. /·,';t;,Ji..~~O~~ • G - G.R. Garg & Co. Chartered Accountants 41 SGSS NANDED, MAHARASHTRA 42 UNIVERSITY DEPARTMENT OF CHEMICAL AND TECHNOLOGY, NORTH MAHARASHTRA UNIVERSITY, JALGOAN, MAHARASHTRA 43 VEERMATA JIJABAI TECHNOLOGICAL INSTITUTE, MATUNGA, MAHARASHTRA 44 GOVERNMENT COLLEGE OF ENGINEERING,BARGUR, TAMIL NADU 45 PEC UNIVERSITY OF TECHNOLOGY CHANDIGARH 46 UNIVERSITY INSTITUTE OF CHEMICAL ENGINEERING AND TECHNOLOGY, PUNJAB UNIVERSITY, CHANDIGARH 47 UNVERSITY INSTITUTE OF ENGINEERING AND TECHNOLOGY, PUNJAB UNIVERSITY CHANDIGARH 48 PONDICHERRY ENGINEERING COLLEGE,PUDUCHERRY Affiliated Technical Universities 1 VISVESVARAYA TECHNOLOGICAL UNIVERSITY, KARNATKA (ATU) 2 Dr. BABA SAHEB AMBEDKAR TECHNOLOGICAL UNIVERSITY ,LON ERE ,MAHARASHTRA(ATU) 3 JAWAHAR LAL TECHNOLOGICAL UNIVERSITY, HYDERABAD, TELANGANA (ATU) State Project Implementation Unit 1 SPIU ,ORISSA 2 SPIU ,BIHAR 3 SPIU, JHARKHAND 4 SPIU, HIMACHAL PRADESH 5 SPIU, CHATIISGARH 6 SPIU, MADHYA PRADESH 7 SPIU, UTTARAKHAND } 8 SPIU, UTTAR PRADESH 9 SPIU, JAM MU AND KASHMIR 10 SPIU, ANDAMAN & NICOBAR 11 SPIU, NORTH EAST 12 SPIU, Rajasthan } 13 Non Focus SPIU, Andhra Pradesh 14 Non Focus SPIU, Karnataka 15 Non Focus SPIU Maharashtra 16 Non Focus SPIU Tamil Nadu EDCIL NPIU Page 7 of7 G.R. Garg & Co. Chartered Accountants 777, MRM Chambers, D.B. Gupta Road Karol Bagh, New Delhi -110005 +9111 23512307, 23617942 info@grgarg.co.in Annexure A to Consolidation Report Qualification of individual Auditors on Financial Statements for the period ended on 31st March, 2019 / I. CENTRALLY FUNDED INSTITUTIONS 1. NIT CALICUT Since Separate set of books of account are not maintained for the project, the figures in the financial statements . . ' of TEQIP Ill, NITC cannot be easily deduced (books of account are maintained for NITC, as a whole). II. INSTITUTES 1. DTU DELHI Delhi Technologies University is following the cash method of accounting, which is prescribed by NPIU. Thus, the institutions do not follow "Accrual" system of accounting. This is -~ot in conformity with Accounting ~tandard 1, "Disclosure of Accounting Policies" issued by the council of the institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. 2. DCRUST M URTIHAL Deenbandhu Chhotu Ram University of Science & Technology is following the cash method of accounting, which is prescribed by NPIU. Thus, the institutions do not accounting. This is not in follow "Accrual" system of . _ ,_.,. __ ·~ ·-·- · .. ' conformity with Accounting Standard 1, "Disclosure of Accounting Policies" issued by the Council of the Institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. Page 8 of 59 G.R. Garg & Co. Chartered Accountants 3. UIET KURUKSHETRA UIET, Kurukshetra is following the cash method of accounting, which is prescribed by NPIU. Thus, the ' institutions do not follow "Accru~]," system of accounting. This is not in conformity with Accounting Standard 1, .... . .-.... -...... , "Disclosure of Accounting Policies" issued by the council of the institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. 4. GCE JALGAON Disclaimer and Limitations:- The review was based on the information and data provided to us either in the physical or electronic form e client covered in their books of account, Financial statements and other relating to the operations of th_ supporting documents. Thus we cannot comment on any liabilities (present or Contingent) that may arise as a result of omission f.rom, or misrepresentation in, the financial statements/ information and records provided to us by client. This report has been made on the following assumptions: The said audit report has been prepared based on the documents and records produced before us and the discussion and / views provided to us by the Audited. That all the opinions expressed by the audited and its advisors are honestly held by them and that all such opinions and views expressed to us continue to be based on reasonable assumptions and that all statements of fact by any of the foregoing pe_rsons were made and continue to be true. That all the information supplied to or examined in connection with the preparation of th is report was and remains true and is not misleading in any way. For certain Audit observations refer annexure "A" . S. OT SHIVAII UNIVERSITV-KOLHAPUR As Per Accounting Policy prescribed in Financial Management Manual provided by NPIU, Government of India, Department of Higher Education, Ministry of Human Resource Development (March 2017) the fixed assets .,;-~ ·,t oi procured under the programme are transferr,e.d ., •...,, & Expenditure Account and not recognized as such in • ' l•' come < the Balance Sheet. (Refer Annex IX, ,'e·hartr=:-o r:::i c 1. 1;"': '\ c:6~~ls, I ~ Sub-component 1.3.1.1.Twining Arrangement). ~ Resultantly, the Pl has transferred balanc~··to ,- &4 )~~~ni Account to the tune of f62, 88,337/- (Previous Year - ·;(a~·-~: ',. I · ·· ·/i.R'f,i/ / '.;. Page 9 of 59 q:: Gi. ' - • if, . ,:,'' . ..... . -.@o G> F,@i . . \~ ~~ -ti G.R. Garg & Co. Chartered Accountants NIL) to Income & Expenditure Account. This treatment is not as per the generally accepted accounting principles in India and specifically not in accordance with mandatory Accounting Standard (AS) 10- Property, Plant & Equipment" prescribed by the Institute of Chartered Accountants of India. 6. YMCA FARIDABAD YMCA UST is following the cash method of accounting, which is prescribed by NPIU. Thus, the institutions do ------ ~ not follow "Accrual" system of accounting. This is nonn conformity with Accounting Standard 1, "Disclosure of -- Accounting Policies" issued by the Council of the Institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. 7. UICT JALGAON The review was based on t.he information and data provided to us either in the physical or electronic form relating to the operations of the client covered in their books of account, Financial statements and other supporting documents. Thus we cannot comment on any liabilities (present or Contingent) that may arise as a result of omission from, or misrepresentation in, the financial statements / information and records provided to us by the client. ) This report has been made on the following assumptions: a. The said audit report has been prepared based on the documents and records produced before us and the discussion and/views provided to us by the Audited. b. That all the opinions expressed by the audited and its advisors are honestly held by them and that all such opinions and views expressed to us continue to be based on reasonable assumptions and that all statements of fact by any of the foregoing persons were made and continue to be true. ) c. That all the information supplied to or examined in connection with the preparation of this report was } and remains t rue and is not misleading in any way. Page 10 of 59 G.R. Garg & Co. Chartered Accountants 111. STATE PROJECT IMPLEMANTATION UNIT 1. UTTAR PRADESH A.GENERAL 1. We have observed that there are inherent weaknesses in maintenance of Accounts and timely and correct \ -- accounting of transactions as well as feeding in PFMS/ PMSS. It needs strengthening of accounting system for . better controls & presentations of financial statements. c,e, we were not provided with drawn Trial Balance, Balance 2. In most of the units, though instructed in advan, Sheets & Other financial statements, causing this revision . 3. We are still not sure/ provided with com_pliances of internal audit observations which !n few cases were I being -~ _. . audited .. that management will take necessary steps for timely completion of internal audit process before start of statutory audit. .. side . ,. by side of statutory . .. . .. - audit, making it ineffective - for necessary timely corrections. ., ' ., . We believe B. UNIT SPECIFICS A) Institute- Dr. APJ Abdul Kalam Technical University, Lucknow SERIOUS IRREGULARITIES - PROCUREMENTS Samsung Galaxy Tablet (Contract Value ~2. 44,000/- M/s Pentcle Solutions Pvt. Ltd.) a) purchased from GEM registered dealer, but no ~omparison chart was attached. It seems that purchase has been made directly from single dealer with'eu-t cb paring prices on GEM portal . :-,- .r, f .../ . ... t .. b) No requisition letter for the sam1fwas·'on record·.) \ 1..... __ ___._ ..... ____ - - • ~ ~ • • , . c) Above purchased tablets have be~n issu ed ·to; TltP.IP Staff (such as Coordinator, Nodal Officer Academic, \·. · . ;- ' ,): ,;'_.,i,t . Nodal Officer Procurement, MIS Offic~r, /1:s~is(ar:!t~~countant). ·~~ _r.,. :· ' "'I. ·;.-' No purpose or need for the tablets is m'e~fioned in the Minutes of Meeting for above procurement. It seems \ such purchas~ i~ not eligible under TEQIP guidelines since this seems non -academic/personal use. 0 d) E-way bill is not attached. It is recommended that e-way bill should also be obtained from dealer. ~. ' Page U of59 ) G.R. Garg & Co. Chartered Accountants Though we have been provided "screen Shot" for action plan approved which says" Plan is re-viewed", however no specific approval from NPIU for purchase of Tablet phone is on record to be used by TEQIP Officials (NON- ACADEMIC) In our opinion, procurement done for non- academic purposes, It's not serving any essential purpose of establishing TEQIP unit and hence need specific sanction, else cost be recovered from persons to whom .. . Tablet phones ~ - .. given, as per decision of NIPU. were B) B. OTHER OBSERVATIONS/ DISALLOWANCES GST charged by Composition Dealer: Voucher No.SO Dated: 11/05/2018 A payment oH63,378/- made to New Pakwan against refreshment which includes f3018 as GST, however the said dealer is a composition dealer and not eligible to collect GST since dealer . invoice. Hence f3018 is giving ·sill of Supply, not Tax ., should be recovered from concern person. ) ' Voucher No.451 Dated: 16/02/2019 . A payment off28,875/- made to New Pakwan against refreshment which includes ~1375 as GST, however the said dealer is a composition dealer and not eligible to collect GST since dealer -.. ~I - is giving Bill of Supply, not Tax invoice. Hence t1375 should be recovered from concern person . ' ) Voucher No.209 Dated: 11/09/2018 ) A payment oHl, 14,067/- made to New Pakwan against refreshment which includes f5432 as --~ GST, however the said dealer is a composition dealer and not eligible to collect GST since dealer =j is giving Bill of Supply, not Tax invoice. Hence f5432 should be recovered from concern person . ) 9825 V.No. 44 dated 28.04.2018 - ----- Taxi bill fo r f2560/- not available. ~- ~ . - Residence-lGI Airport and back ;. Lko-University and back 2560 o.o3 Page 12 of5~ ., G.R. Garg & Co. Chartered Accountants V.No. 27 dated 24.04.2018 Taxi Bill not available for fl180/- ..... Gr. Noida-lGI Airport and back 1180 V.No. 32 dated 24.04.2018 Train ticket for f 1930l.:. (Aligarh-Lucknow and back) not available. 1930 V.No. 24 dated 24.04.2018 Travelled by_~ Q_q1r but nc;:>,.R_C wa.~ available on r~cord. V.No. 295 dated 12.11.2018 - . Sultanpur-LKO and back t4000/- 4000 _!'J o Taxi Bills have been attached for f900/- between Kanpur-Mathura and back. 900 V.No. 25 dated 24.04.2018 Claimed amount is f650/- between Dwarka Delhi Airport with no Taxi Bill, whereas the distance is 10km. Hence only aliowabi°e {10*10;ddo rest disallowed. 550 V.No. 30 dated 24.04.2018 _ Reimbursement ____ , _ ,.,-- ·-- has been made for .... ,_ f8961/- without proper Documentation. "" ---- Air Ticket not present for IGI Airport-LKQ and back AKTU-LKO Airport and back 4900 V.No. 27 dated 24.04.2018 One way bus ticket attached for f1275/- and reimbursement of ~.4894/- has been ,made for return without a bill (Air fare). Reimbursement has been made wi!hout a Taxi bill for f2344/- Home-Bus Stop and return f908/- Bus Stop-Universit_ y and return f1436/- 7238 V.No. 29 dated 24.04.2018 Claimed amount is f800/- .., __ between ._ .....,. . Dwarka Delhi Airport, whereas the distance is 10km . Hence only allowable flO*lO=lOO rest disallowed. 720 V.No. 138 dated 27.07.2018 Reimbursement has been made for 250km @24/ kP."1~~QOf..:i i~~}ead of 10/km=f2500/- , ,. ' . ' 'I ,fj~ ,•' • ~ .. •,.,_ \;\ Amount extra p~id f3500/- :; I ~ ·· \ 3500 r ... _ , Page 13 of 59 ') G.R. Garg & Co. Chartered Accountants Purchase of 4 Desktops HP 600 G3 (Total Value ,2. 88,000/- M/s Abhitech} a) Purchased from GEM registered dealer, but no comparison chart was attached. It seems that purchased has been made directly through single ~ealer without comparing p~ices on GEM portal. __ b) Installation ...,. - report is not attached . c) As per GEM portal generated contract, delivery date was 27.01.2018, however goods have been receive~ on 05.03.2018 (as per Fixed Asset Register and delivery challan of vendor), but no late delivery charges have been deducted which is 0.5% per week of delay. ~ d) N~11- of 1'1eeting was attached. Je~_ e) E-~ay bill is not attached. It is recommended that e-way bill should also be obtained from dealer. As per our opinion, late delivery charges as per contract @0.5% per week be recovered, hence disallowed. 7200 V.No. 551 dated 18.03.2019 Taxi Bill not present for ,960/- 960 Total 45463 CJ I t,5 C) Institute- Raikiya Engineering College, Ambedkar Nagar j OTHER OBSERVATIONS/ DISALLOWANCES Observation Amount Vr No. 93 dated 29-12-18 ) f795/- reimbursed to Mr. Sudhir Kumar Shrivastava for travelling expense from Ambedkar nagar to Allahabad & return via own car but copy of R.C. . ·-""'-··. .. - .~ , , ~ is n9t_ o - .,..- - ~ record, hence disallowed. .. _ __ ;,,> 795.00 Vr No. 95 dated 5-3-19 {1490 (One Side) for 2nd A.C. & ?360 for Toll Tax is reimburse to Mr. Vikas Patel for Travelling - exp . From REC, Ambedkar nagar to AKTU, LKO & return instead of actual claim for taxi {4320/- (Both side). ............ ----~--- -- Copy of RC is not on record, So the management reimburses 2nd AC fare. Hence amount of --- - ---~, . --•--- · _ f360/- reimburse towards Toll Tax is disallowed. ..... - ... . - 360.00 Page 14 of59 G.R. Garg & Co. Chartered Accountants Ch< . Vr No 19 dated 12-6-18 Amount oH'15878/- paid to M/5 Goyal Stationary Mart for supplying stationary. -- ~ M/S Goyal Stationary Mart issue bill of supply & charging GST on its bill @ 18%. Which is totally . . wrong because the party registered under composition scheme and not allowed to issue tax invoice? The amount oH'1151.19 ..._ _ -- paid .. . ' towards . SGST & f1151.19 towards CGST is required to recovered . from the party. (Detail of Bill: Taxable Value: '13575.15, SGST: fllSl.19, CGST: f1151.19) Hence disallowed. 2302.00 Vr No 49 dated 27-11-18 Amount off_.~~3/- paid to M/S Goyal Stationary Mart for =~pplying stationary. M/S Goyal Stationary Mart issue bill of supply & charging GST on its bill.@ :I,&%. ',Vhich is totally wrong because the party registered under composition scheme h~rce no,t allo,wed to issue tax invoice. The amount off970.04 paid towards SGST & f970.04 towards CGST is required to recovered from the party. (Detail of Bill: Taxable Value: f11853.36, SGST: t970.04, CGST: '970.04) Hence disallowed. 1940.00 Vr No 85 dated 10-1-19 f lSOO/- reimburse to Mr. Virendra Kumar Mourya (PHO Scholars) for accommodation of one day in hotel. Hotel charges allowable to PHD Scholars is same as applicable to grade pay of individual below ~ . .,. .,...-...... f4200/- i.e. t4SO/- per day, Hence the excess amount oH'lOSO/- reimburse for hotel is & - .... '' " required to recovered . 1050.00 Vr No 87 dated 13-12-18 9 0/- reimbursed to Mr. Shivendra Kumar Pandey for travelling expense from Ambedkar f!,4_ nagar to Prayagraj & return via own car, but COP-Yqf. R,f:,· is.riot on record, hence disallowed . 1490.00 Page 15 of 59 G.R. Garg & Co. Chartered Accountants Vr No 57 dated 30-11-18 - f87500/- paid towards fooding supply for 5 days to M/S Apna Jalpani Grih & Catterers but the Bill is not on record, Estimate attached. Total amount is paid against kachcha bill, however the party is registered under GST Act( GST No.: 09AGXPU3984D1ZG) Hence disallowed. 87500.00 Vr No 130 dated 2-3-19 1. Quotation for work order of supply of food is invite from parties: a) M/S Apna Adarsh Jalpan Grih & Caters, Ambedkarnagar b) Avantika Jalpaan Grih, Ambedkarnagar c) Apna Adarsh Caters & Tent House, Arribedkarnagar Out of above three parties M/S Avantika Jalpaan Grih, Ambedkarnagar & M/S Apna Adarsh Caters and Tent House are unregt~~red . 2. Payment made against kachcha bill while the party is registered under GST & detail of supply --- of food is not on record. 3. t99000 is paid to M/S Apna Adarsh Jal pan Grih & Caters without deducting TDS. Hence disallowed. 99000.00 } Vr No 355 dated 30-11-18 An Honorarium oHSOOO/-is paid to Mr. Bhavesh Kumar (Assistant Professor). As per rule, an Assistant Professor is eligible for sum of '4000/-. Hence excess amount ) 1000.00 Total 195437 ,00 JI 9-5 Page 16 of59 G.R. Garg & Co. Chartered Accountants D) Institute- Rajklya Engineering College, Banda OTHER OBSERVATIONS/ DISALLOWANCES SI Observation Amount Excess payment made: - - Payment of ?1440 & '16052 (net of TDS deducted) was payable to "DOT Com ----~ - System" & "Dr. Amod Kumar Tiwari" respectively against an event of Expert Lecture in IT Deptt at REC Banda~ However under voucher no. 253 dated . 13.03.2019, payment ofn7492 was made to Dr. Amod Kumar Tiwari, thus the unit has macle excess payment oH'l,440/- (f17492-f16052). Above payment has been ,, booked under component "1.1.2.1- Improve Student Learning" which is over booked by ~1440/- 1 1440 Total 1440 E) Institute- FET MJP Rohilakhand University. Bareilly j SERIOUS OBSERVATION - / The Unit has purchased the computer desktop 3 times during the year. Following is the comparison chart: I Sr. (Case 1 Case 2 Case 3 No 1 - 1- Invoice date 3'a August 2018 12m January 2019 ..6 ' • " August 2018 • ., . . • •• I 2- Method of Shopping ~qpp,if)g . •• ; s.. \ •.;,,),, . .. ....: :}·~·t ~ Shopping Procurernen ·••• ·· .•, :S,:: ~ t 3- Vendor M/s Mark Enterprises Bareilly lnfotech Services lnfotech Services 4- Quantity 5 No's 25 No's 90 No's 5- Total Price f6,33,660/- {17,69,764/- iso, 1s,s10/- (Inclusive of I Page 17 of 59 G.R. Garg & Co. Chartered Accountants ) GST) 6- Unit Price fl,26,732/- per desktop {70, 790/- per desktop fSG,394/- per Desktop Specification purchase of 75 No. offline UPS: :Jte of approval: 20/01/2018 J date: 06/04/2018 .:;te of Supply: 04/05/2018 -'..)thod of Procurement: Shopping Jtal contract value: fl,46,025/- Page 18 of59 J J J J J J J G.R. Garg & Co. Chartered Accountants Following irregularities have been observed in this purchase: _., ..--"" ...... 1. a)The technical specification of the offline UPS as mentioned in the invitation letter was very detailed: Following is the screenshot of the I ,_ • •• , c,• • )"I I same: However the technical specification mention in the quotation received from the few applicants are as follows: 1) Taj Enterprises Bareilly: Description of Goods: UPS MICROTEC 2) M/s Ajmal Hassan Description of Goods: Computer UPS The above vendor did not provide the specification of the UPS provided by them. So out of 4 quotation received, the above 2 should ha, ~~ . ..-J:·.:- ,.-.,.-i~-.. ,,,·'-1>~ ....-· ·~·-· ... , ., ... ; -~· ,,,.._ ~ -· ~ -, been rejected on the technical ground, But the purchase committee accepted all the quotations and evaluation was done by including o the above disqualified vendors. Also, it is not clear that in the absence of technical specification from the above mentioned vendors in their quotations, how purchase - ' ' . : :...: "· committee had evaluated the various veQ9.ors. b) The document against which the payment is made by the Unit is Bill of supply and not the Qro e_r.!~.~ l~oice. As per the GST law, a e... of Supply is issued when GST is not applicable on a transaction or when G~T is not to be recovered from the customers. In this bill of Supply, the GST amount recovered by t he Vendor, lnfoTech Service Is t22,27,.S/- . ............._. ~-· -~-~~--r- ~·- ···--.,... n •, ·. r • • "'-' - - ·- ' · c) As per the Fixed asset register, out of 75 UPS purchased, 8 UPS' are still lying in the store, unallocated to the concerned department t..,, more than a year. The same was not installed or commissioned till the' date of our audit i.e. 02/06/2019. Since this equipment was purchased way before the actual requirement, this may be called as misuse of the fund. Also, it seems that the purchase was made to • (,.,,-. • ....... ... OIi '-..._. e1s ~\ actual usage of the same. complete the procurement target of the World Bank ,?n'~•.tper· • -~ I . . . .... d) As per the asset register, 67 UPS' have been alloifferences were observed in the number of units requisitioned by a department and Units actually allocated . :·-·-! ·-~..,,.,-... ~····~··.r- ,~i,,! .. to them. For instance, as ·-- ...• ,. ..., ()- the requisition, Electronics department required 15 units but only 12 units were actually allocated to them. Same was the case with , ~ other departments also. - Seeing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big .~..:~·-'ll ne&ligence 1. Purchase of 40 Book selves: 1 Llte of approval: 19/01/2018 ~] date: 05/04/2018 Llte of Supply: 24 June 2018 1Jthod of Procurement: Shopping ·1 Jal contract value: f.5,77,020/- ) \. Q,owing irregularities were observed during the course of our audit: a~C sir approved th~ expenses of Approx. f5, 20,000/- and the Ll contractor was selected at f5, 77,020/-. No approval was taken for the irJrease in the amount of expenses from the approved budget for the bo9k selves. " I OJ Requisition of only 15 book selves from the various departments is on record. Cl As per the stock register and physica l verification conducted by us, 4 book seives are still in stock and ·n a packed state. Since this equip ment was purchased way before the actual requirement, this may be called as mis us~ of the fund . Also, it seems that the purchase w as made to complete the procurement target of the World bank and there is no actual usage of the same. a/As per the available requirement sfieet from various dep·artments, the actual allocation is different. Following is the detail : J J Sr. No Department Requisition Actual allocation 1~ CSIT 3 4 ?- ME 3 4 ~J CH NA 4 J J Page 20 of59 J J J J J J -.) G.R. Garg & Co. Chartered Accountants ~ 4- EC 3 4 5- EE 3 4 6- El 3 4 7- Applied NA 2 8- Accounts NA 1 9- Stock NA 4 10- Pantry (Kitchen) NA 1 11- Other department NA 8 Since the Book shelves in accounts and Pantry (Kitchen) is for non-academic purposes, so the procurement of the same should be seriously scrutinized/ Investigated to take appropriate action. 2. Purchase of 30 Executive chair from Sunrise enterprises: PO date: 06/04/2018 Date of Supply: 10 September 2018 Method of Procurement: Shopping Total contract value: ~5,48, 700/- ~~-··· ~-,..., a)The technical specification of the executive Chair as mentioned in the invitation letter was very detailed. Following is the screenshot · the same: Annexure.l Sr. Item SpeCllfic,ations No Name 1 Exeou~lve Asse,mtily ~eqolred: Min. Len.sth : 78 om, Width : 70 cm, Height : ll4 cm Chairs Ergon9mic executtve chair upholstered in bonded braw. n leather and PVC Padded se'at al\'d b~ck for aJ1-d11y comfort and supp,ort'Pneumiltic seat-heigh adjustmeot, 360,degree swivel, smaoUi-rollfng-casters Warrant\/: l Year or more Cover ma~lal: leather Clompany cert1fkatlon: ISO 9001:2000 servjce & malntenallce avaitabl_ e: On.site guo_ However, the technica l specifi cation mention in th~ _ tation received from the few applicants are as follows: ' -·""'-"- · -....., -- --·--='-'- - ... ... , , ,-:,·. , , -~ - r l l 1) Taj Enterprises Bareilly: • ,1. Description of Goods: Ex- CHAIR GODREJ ·. ,,. ;• ,· Page 21 of59 G.R. Garg & Co. Chartered Accountants 2J M/s Ajmal Hassan r ~scription of Goods: EXCUTIVE CHAIR ·, .e above vendor did not provide the specification of the Chair provided by them. So out of 3 quotations received, the above 2 should ~ ..:,.,,.=,--- ~ ...... ed on the technical ground, But the purchase committee accepted all the quotations and evaluation was done by ..:...:::.;;....,.....,.- - - ~- ..r ~ · · ··· - ·•·· •··- ··· ·- • · · ····· . - · • . . - " :, 1. _.;luding all the above disqualified vendors. Also, it is not clear that in the absence of technical specification from the above-mentioned vendors in their quotations, how purchase - ·--- ,- - ' committee had evaluated the various vendors. ' ---- --.. . .. l\s per the Purchase Order (PO) dated 06/04/2018, Goods should be received within 30 Days from the date of PO. But as per the Goods ....... ' ' :eived Note attached, the actual receipt date is 10th September 2018. No LD was deducted from the payment made to the party. - -- • r < • ..... ~ - , - · , - • • ~c:eing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big nc:gligence ~ "'urchase of 20 File cabinet from M/s Sunrise Enterprises Date of approval: 9/02/2018 Pu date: 06/04/2018 Date of Supply: 24 June 2018 l\i1ethod of Procurement: Shopping Total contract value: ~3,65,800/- , ' The technical specification of the File cabinet as mentioned in the invitation letter was very detailed. Following is the screen shot of the r 11e: l>e~ailed Specifica1:ion Page 22 of59 G.R. Garg & Co. Chartered Accountants - However the technical specification mention in the quotation received from the few applicants are as follows: 1) Neelam Enterprises Lucknow: Description of Goods: Blank ( The specification column was blank) 2) M/s Sahil Enterprises Description of Goods: FILE CABINET- GODREJ The above vendor did not provide the specification of the File cabinet provided by them. Intact one of the vendor, Neelam Enterprises, qi-1 -¥ ~ not mention the specification at all. They left it blank. Even though the same was considered for the Bidding process. So out of 3 quotati~., ~--·-=-·- -- . u. __ , ¥ ~--~'>'. . . •• ,.,. ... ~ -. . . - .. ___.. - . - ' . . ' ' received, the above 2 should have been rejected on the techni_:. a~~round, But the purcbase co.mrniJte~ !:l_q~E!p_t_ed all the quotations and evaluation was done by including all the above disqualified vendors. _: 1seeing ab~ve facts, matter needs to be further investigated for suitable action and proba~le_ vi<>l~ti~n/ ~i~h~ning of resources/ big I negligence - 6. Workstation desktop - 90 Units purchased from M/s lnfotech Services, Bareillv Date of approval: 19/01/2018 PO date: 22/10/2018 Date of Supply: 12 January 2019 Method of Procurement: Shopping Total contract value: ~50,75.~10/; . - a) Requisition from the concerned department for the purchase of computer was not made available for our verification . In the absence uf ------- the same, it is difficult to ascertain the necessity of the pyrchase. - . b) Following is the allocation of computers as per the fixed asset register : . Sr. No Department Requisition Actual allocation Satisfaction Report date 1- ME NA 05 21/05/2019 2- CSIT NA 15 04/05/2019 3- CH NA 10 02/05/2019 4- EC NA 15 04/05/2019 5- EE NA 15 16/03/2019 .. ' 6- El NA 20 :12/03/2019 Page 23 of 59 G.R. Garg & Co. Chartered Accountants -, I ~ I 1- Accounts section NA 1 NA ' I ~- Stock{ Una !located) NA 9 NA r I TOTAL NA 90 .._:.._:_---:-.--- r""'ndition of PO, testing and Installation -- -- was mandatory at - the site. Please -- explain how the - T"\e 75% payment (i.e. 38, 06,633/-) was made to the vendor on 01/02/2019 but the satisfacti_on reports are of later date. lg,_ per the payment was m~de, -. when the proper - ,~,--- .. -......,--- _______..,.., ......... - . h;tallation and satisfaction report was not obtained from the concerned department. r ·rther the computer system installed in the accounts section is for Non- academic purposes. So the same should be disallowed. '""--....._.._._, , , . -- - - . -;f •,,,. - ,--·c - - --.-.._,:. r' As per the Fixed asset register, out of 90 Computers purchased, 9 Units are still lying in the store, unallocated to the concerned ,· 'P~ ent. The same ~~s ~-ot insta~ed or commissio_ ne~-~ll--~~~9_a!_E: o_f_<:~~a_udit i.:. 02;oy2019. Since this equipment was purchased ,y before the actual requirement, this may be called as misuse of the fund. Also, it seems that the purchase was made to complete the ?Curement target of the World bank and there is no actual usage of the same. ' i.., As per the quotation evaluation sheet, Cyber max enterprises, emerged as the Ll party, with the lowest quote of 34, 74,000/- (Without \...J T), however the contract was awarded to lnfoTech Services, Bareilly with the quoted price of '43,01,280/- (Without GST) being L2. The • t - ~ · ~--~~ · - ~ - •·- -~--·-u• ,. . - ·- •n; r ... ason mention in the minutes of meeting for selecting the L2 vendor is mention as "M/s Cyber max enterprises, Lucknow is technically l,Jn- Responsive". This seems to be an insufficient reason to reject a Ll party, when there is a huge price gap in the Ll and L2 party. The ~ ........, . ........ ,.,,,._-=-- ~~ .... a-.count department also couldn't explain the~ ason for non- selec~ fthe ~ pa~ty. S<>eing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big ; - - - >.,~•- ...... . - -- - - .. ........ -~ - - - - - - -.. l"~gligence ) \ ·,. 'Interactive Projectors purchased from M/s Mark Enterprises, Bareilly- P'l_ date: 25/08/2018 r""'te of Delivery: 15/10/2018 ~ "7thod of Procurement: Shopping T tal contract value: ~14,02,778/- "'· ,~equisition letter from the concerned department is not on record . bJ No testing report is on record. i, }~_~l_a_ '"·- ,.,,,. _ ., ' - ,· The projector was received on lSLJ.0£2018, but the same is not installed yet. As per the PO 50% payment is to be released on the - - ---.--~~---·-·-···-,···-··- -·- ......... _,,_ ti~n a11_g_ d.elivery.of the item, but since the installation is no.!_~~~-~ yet, why t_b.g p):iyrne.ui,0f ~h_ . - g s,,u:r_i~ is released. Further, since this r , ./ 'Jipment was purchased ,•--- - way - · before ··-· ~ ·.~ · ·· the actual ,.. requirement, .,,,,•, .. •, ••' -·, • ...•-,- this may be called as misuse • • ,, • of the fun -. Also, it seems that the purchase ···-.1• " .,v;.,, ~ ·."'. ) Page 24 of59 G.R. Garg & Co. Chartered Accountants was_made to complete the procurement targ~t_ th~ World bank and there is no actual usage of the same. ~!, Seeing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big negligence 8. Smart Class Room- purchased from Advance Tech India Pvt. ltd PO date: 23/10/2018 Date of Delivery: 14/12/2018 Method of Procurement: Shopping Total contract value: f35,09,143/- a) As per the PO the warranty of the Item is 1 year (Unconditional) but as per the invoice, the warranty of the product is "One year ......... ...___, __ warranty exc~~i!:1_[ physical damage, burn, mishandling of the product from the date of installation" (Conditional warranty). Please explc: --. why there is a difference in the terms ~fwarranty. b) The equipments of Smart class is yet to be installed as on the date of Audit 01/06/2019, but 75% payment for this procurement is - -- -· ·- - - , -" ·· -· - •··· · - ·-- ,.,. • - •. .• . , . . ,. ,, ... _ , . . -.- - · ·-- - - - . ,, • "' '4'•" - ° ' •• - , •~ , , -.. •'- , . I already being made on 14.03.2019. Though as per the term of the PO, 75% was to be made after delivery and installation only. Please ...__.___._......_ ~ ~- • • - J explain how the payment was released when the installation of the same was not done. Further, since this equipment was purchased"" before the actual requirement, this may be called as misuse of the fund. Also, it seems that the purchase was made to complete the procurement target of the World bank and there is no actual usage of the same. Seeing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ negligence Page 25 of 59 G.R. Garg & Co. Chartered Accountants 9. Purchase of Interactive Video Conference complete setup: I PO date: 25/10/2018 f'~te of Delivery: 14/12/2018 ~ ethod of Procurement: Shopping T1.tal contract value: f9,85,300/- " ~ per the PO the warranty of the lte.rn is_l year (Unconditional) but as per the invoice, the warranty of the product is "One -year warranty - ·--• • '"' I r ~cluding physical damage, burn, mishandling of the product from the date of installation" (Condit ional warranty). Please explain why . ·~ ~"ere is a difference in the terms of warranty. r ..,eing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big · ""gligence ) A) OTHER OBSERVATION- RECOVERIES ) Purchase of Arena Simulation Software Date of approval: 29/03/2018 PO date: 25/07/2018 ) Date of Supply: Not supplied yet Method of Procurement: Di rect contracting Total contract value : fl, 18,000/- 50% advance payment oH59,000/- on 15/11/2018 rneth9d was used inste~_ For the purchase of above software, Direct contactin~_ d of Shopping 9r Bidding process. The vendor M/s Snic Solution, Bangalore, Karnataka was selected for the purchase by the Unit. As explained to us, since this software is proprietary in nature, so direct contracti ng method was used, however no proprietary certificate is on record. On requesting the same from the accounts team, same could not be produced. Why not above said to be treated as recommended procedure has not been followed? Hence disallowed 59000.00 Page 26 of59 G.R. Garg & Co. Chartered Accountants Vr No 472 Dated 16-2-19 Amount claimed by Mr. Sudhir Prakash Srivastava {7600. RC was available but it was noted that no fur!~_ er S~J>porting was available ., . Hence ,. amount disallowed 7600.00 Vr No 499 dated 8-12-18 Copy of R.C. was not annexed with the documents as expenses claimed by Mr. Prakash Srivastava. Hence disallowed 5765.00 Total 72365.00 C. Reason of Revision Opening balance of advance as of 1-4-18 amounting to {350,000/- skipped booking in expenditure during FY 2018-19. Also, there was double booking of expenditure {416570/- under Procurement of Equipment -once when ) I ' payment from own resources of University Account and again when refunded to University after release of fund from PFMS. F) Institute- Rajkiya Engineering College, Biinor OTH ER OBSERVATIONS/ DISALLOWANCES All the expenses are made in cash . Date and signature of the authorized person on the bill was missing. Four Cash memo was issued on 10-08-2018 with serial number 921, 922,923 and 194. ~ ---- - ~- ~ Sequence of the bill was not matching and there was no TIN number or any other - -< - - - -• ~ ---·.-- - --~ c-·• - ~ • ____,.,_., _ , ,_ ~- registration number on the bill of having its serial number 194. (Office Expense, 1 dated: 07.06.2018} 11140.00 Total 11140.00 Page 27 of 59 ,,.,,· G.R. Garg & Co. Chartered Accountants . G) lnstltute- Institute Of Engineering & Technology, Dr Br Ambedkar University, Agra (~ SER~OUS OBSERVATIONS ) ~ __, ----< ~ ious lrregularit~ound during the course of Statutory Audit of F.Y.2018-19 SI Observations Amount 62.5 KVA/Three phase/ Manual control panel diesel generators was ordered and purchased from M/s Jaycee Punching Solutions private limited. As per the E-way bill attached, the goods were delivered on 19/03/2019; however the same was not installed . .. .,...-;;~ - - ---··· - "-,--,- -- . ·-· ._ _ ____ .. till the date of audit i.e. 28th of May 2019. As per the explanation given to us, the same is pending for the want_of lyiog of new cable lioe a_nd making a platform. m the date ofJnvoice i.e. 19/03/2019. The warranty for the Generator was .~ta._r!ed_fro_ Since this equipment was purchased way before the actual requirement, this may be called as misuse of the fund. It seems that the purchase was made to complete the procurement target of the World bank and there is no actual usage of the same. Seeing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big negligence ) 1 552787.00 5', ;.13 ) A contract for the supply of 5 Nos. Hitachi~Cp-X4042WN Projector was awarded to M/s Gaitech Info solution Private Limited through Gem selection process. The contract was signed for the same on 28/03/2018 (Gem contract) and the same day (i.e. 28/03/2018) ......... ....... _____ ...,....... ~,.- , . the Invoice was generated by the Vendor. However the goods were delivered on ) -~ ·-····- -··· ,·- .... . ) 18/05/2018 as per the attached Goods received note. The warranty of the Projector was started the day tax invoice was generated. So when ) the projector was actually received from the vendor by the institute, the warranty of ~ -~: Days. the ~ e was expir~- J Also, the installation report/ Satisfaction report was not made available for our verification and the invoice has been paid in full on 24.05.2018. Why _ not Vendor _ __...~ .,.,o- asked ,._ _. to issue warranty from date• of delivery? l Seeing above facts, matter needs to be further investigated for suitable action and probable violation/ siphoning of resources/ big negligence 2 282900.00 Page 28 of59 G.R. Garg & Co. Chartered Accountants gh _ 2 nos of offline SKVA UPS was purch ased from BM Computers ~~fgH_ ~xoic~ dat~~ 12 i_ -- - . .. - March 2019. Same was delivered on the same date however the same is not installed till the date of Audit i.e. 18/05/2019: .. •' " •,c,., ' ~' The warranty for the UPS was started from the date of Invoice ie. 12/03/2019. Since this equipment was purchased way before the actual requirement, this may be called as misuse of the fund . Also, it seems that the purchase was made to complete the ·- ---·--- ___ procurement , ... ,. . __ target of the World bank and there is no actual usage of the same. c,ion and Seeing above facts, matter needs to be further investigated for Sllitable a_ 3 probable violation/ siphoning of resources/ big negligence 270000.00 A) Amount SI Observation Disallowed PFMS voucher number BP-2018-19-49. T.A. expenses claimed by Dr. Roshan Lal, however copy of RC was not available. Payment made to Dr. Roshan Lal ~6,060 which includes~- 1060 for T.A. between Agra and Mathura. 1 Hence difference diJallowed 1060.00 Invoice number 1802, invoice dated 01-09-2018, BP-2018-19-53 and ~13340 I \ ' 1) T.A. expenses paid and cab invoice was annexed against the payment... ~I I We did no i d t he -... \ tab.invoice reliable as no . PAN or any registration number ~ ' - was available on the invoice. Issue: Some mandatory field was missi ng on the invoice: - • ~-.Y. J• tf. . - ~ -·, ... ;,t i) Registration number of the supplie.r on the invoice . .-... ~~--°"'"". - -~~-- ~-.---~·- ~~ '1~ invoice. ii) Official stamp of t he service provider was missing.2!l.l. H~nce disallowed. 2 13340.00 Page 29 of 59 G.R. Garg & Co. Chartered Accountants GST Amount not chargeable being under comQosition scheme Claims admitted and paid for food and refreshment under workshop on IPR by MIC. The invoice received from Yoyo foods which were registered under Composition ~--- -~-.. scheme of GST, hence it was a bill of Supply and NOT tax invoice. So, they ar~ not required to apply tax in the invoice. __ ·-· - - We found several bills of Yoyo foods which was taxed @5% and the same was paid. Following are the ex··· • ·""l ) US $1000, quotations should have been obtained. As utilization is not booked in this year, we have not to disallow it but disallowable in next FY 2019-20 wh e~ sue~. ~xpenditures have been booked . AUDITOR/MANAGEMEI\IT MATIER NEED TO BE SCRUTINISED (AREfUlLV BY NEXT YEA~ _ Page 30 of 59 G.R. Garg & Co. Chartered Accountants B. OTHER OBSERVATIONS/ DISALLOWANCES SIEM ES CADCAM (Contract Value f29, 02,800/- M/s Core EL CADCAM software Ltd.) a) 2% GST TDS (2% IGST) has not been deducted on the payments made to vendor. b) Goods received Note/Receipt was not attached. c) Extension of time for delivery demanded by party, approval if any by purchase committee not on record as originally delivery period was 45 days from purchase order dated 14-11- 2018 i.e. 31.12.2018, however installation has been done on 21.01.2019 delayed by 3 weeks. d) In fixed assets register, issued to whom & signature of receiver not attached. As per our opinion, late delivery charges as per contract @0.5% per week be recovered, hence disallowed. 43542.00 Purchase of Electronics Lab Equipment (Total Value ?41, 52,538/- M/s Mannu Enterprises) a) Goods received Note/Receipt was not attached. b) 2% GST TDS (1% CGST & 1% SGST) has not been deducted on the payments made to vendor. c) As per PO delivery period was 45 days from 14.11.2018 i.e. 31.12.2018, however installation has been done on 21.02.2019 delayed by 7 weeks As per our opinion, late delivery charges as per contract @0.5% per week be recovered, hence disallowed. 145339.00 Purchase of 250 desktop (Total Value fl, 47, 79,499/- M/s Bytes & Bytes) a) Requisition letter from Applied Science Department for 30 computers was not on record . b) TDS deducted, however no proof for deposit was available. c) Installation Certificate and warranty certificate not on record . d) Desktop delivery date was 29-04-2019 but desktop was delivered on 07-06-2018 i.e. late by 40 days, however no late delivery charges deducted. e) Bid evaluation was on record, however Quotations given by vendors was not on record . As per our opinion, late delivery charges as per contract @0.5% per week be recovered, hence disallowed. 443385.00 In following cases, Quotation not obtained- Process not followed, hence disallowed Page 31 of 59 G.R. Garg & Co. Chartered Accountants 1. Vr Dated 17-3-19 debited to Faculty/ Staff Development Purchase of 100 Joot Bag, 80 pen drives, 100 handbook, 100 pen & Memento/Flowers (Bill No.366 dated 09.03.2019 of Swami Tour & Travels)) 109695.00 2. Vr Dated 17-3-19 debited to Faculty/ Staff Development ) Purchase of 250 Joot Bag, 250 Hand book, 250 pen & Memento/Flowers (Bill No.371 dated 16.03.2019 of Swami Tour & Travels) 150637.00 3. Vr Dated 23-3-19 debited to Faculty/ Staff Development Purchase of 100 Joot Bag, 100 Hand book & 100 pen (Bill No.371 dated 16.03.2019 of Swami Tour & Travels) 72615.00 4. Vr Dated 3-3-19 debited to Improved student Learning Purchase of various items such as Parichaya Patra, Receipts Book, Shaal, Smriti Chinah (Bill No.132 dated 18.02.2019 of Sri Ram Offset Printers) 117814.00 5. Vr Dated 20-3-19 debited to Research & Development Purchase of various items such as Parichaya Patra, Receipts Book, Shaal, Smriti Chinah (Bill No.142 dated 11.03.2019 of Sri Ram Offset Printers) 134850.00 ) IN Voucher dated 17-7-18 Debited to Travel Cost {3590/- against which supporting of Rs 500/- was found, hence balance disallowed 3090.00 Vr dated 17-4-18 debited to Travel cost Amounting to ' 4235/-, out of which Bus ticket Rs.250 From Faizabd to Lucknow was not available on record 250.00 Vr dated 23-33-19, debited to Faculty/ Staff Development, amounting to {40376/- Hotel booking charges from 13-15 Feb, 2019 in Hotel City Inn Faizabad, While bill provided of Rs 39200/- hence balance disallowed 1176.00 ) Vr dated 20-2-19 debited to Mentoring & Twining Amounting to f14017 /- we didn't found Boarding pass for both side hence disallowed . 14017.00 Total 1236410.00 ., Page 32 of59 G.R. Garg & Co. Chartered Accountants I) - Institute- Uma Nath Singh Institute of Engineering & Technology, Jaunpur OTHER OBSERVATION/~ OWANCES ) Observation .... Amount Vr No 344 dated 23-2-19 f88783/- is paid to Climate Control Refrigeration for AC repairing on direct contract basis instead of following open tender process, As procedure not followed, same is disallowed. 88783.00 Vr No 310 dated 19-2-19 Amount off11966/- paid to M/S Tripti Restaurant & Bars. M/S Tripti Restaurant & Bars issue bill of supply & charging GST on its bill @ 5%. which is totally wrong because the party registered under composition scheme and u ~ o issue tax invoice. The amount off69.17 paid towards SGST & '69.17 towards CGST is required to recovered from the party. (Detail of Bill : Taxable Value : f2766.67, SGST: f69.17, CGST: f69.17) AS GST not Chargeable under composition scheme, hence disallo~ed 138.00 Vr No. 309 dated 19-2-19 -- f4500/- is paid for travelling expense from Mandiya to Bangalore airport via taxi but bill of taxi is not on record. Hence disallowed r-· 4500.00 Vr No 405 dated 13-3-19 On Totaling various miscellaneous vouchers or bill, we found that in bill oH'2984/-, calculation is wrong. The actual total bill is f2164/-, hence f820/- is disallowed and it should be recovered. 820.00 Vr No 275 dated 19-2-19 f618/- is paid for travelling expense from via taxi, but bill of taxi is not on record. Hence disallowed 618.00 Total 94859.00 Page 33 of59 G.R. Garg & Co. Chartered Accountants J) Institute- Kamla Nehru Institute Of Technology, Sultanpur SERIOUS OBSERVATlON SI Observations Amount Procurement of Mi Power TM Power system Analysis & Simulation Software guotation as Monopoly item 1. Singl~_ 2. TM License certificate for monopoly not obtained- Owners Power Resource & -- ,--#-.. "':- .;-~- . . ..... . -< ,.-..... ,,, ,. . . - ~ Development Consultants Pvt Ltd, Bengaluru. 3. Supplier attached following 3 PO for supply to other lnstitutions:- SI Name of Institution Order dat~ & Cost Supplied for No. of Users 1 Govt. Engg. College, Bilaspur(CG) 5-3-16 for f6 lacs plus applicable taxes For 5 users 2 NIT Silchar 27-4-16 for Rs 1833333/33 plu.s _ ap..,__ _ 3 Energy Research Institution New Delhi 18-4-17 for fll.50 plus applicable taxes .---. -· ·· -.......-i.-·~---- - - - For Single user ) Order placed for fS.99 lacs plus applicable taxes for 5 users We observe that ) 1. Provide necessary working why and how this software selected f~~ procurement ) with comparative study required for.op:ing single ,quotati9r1_p~9s~ss, i.r1.stead of ) open tender. 2. This is not a monopolx_~ vh.~n,~~-~log!E!_quotati9n pro.c~~.~ is.Jovalid as -- following are also supplying similar software --..;;...-.-·,·-.· ~----~·-· ... ' i) IIT, Palakad ii) School of Engg, CUSAT, Cochin University ) 3 . N~ _LJc!!nse. copy obtained. 4. Rat~~ t90 looks bargaining as.per.copy .of PO attache~LRate of.Supply forJ'J.[T Silchar is for 30 users. If prorate calculation done, for 5 users it comes to f3.05 ,.._.._,_.,.-,: _ . •.. Lacs -· . plus taxes looking into the seriousness & technicality, Matter need to be investigate'd with suitable action. 1 706820.00 Page 34 of59 G.R. Garg & Co. Chartered Accountants ERDAS Imagine Software Copyright is of Hexagon Geospatial USA Deals though Indian subsidiary Integrated SG & I India Pvt Ltd, Gurgaon. Being monopoly item, subsidiary being present in India could have participated in single le dealers, if they are tender. As subsidiary is authorized to appoint dealer/ multip_ not asked for single tender, process should have been opted for open tender only. As per certificate dated 2-4-18, attached M/5 American Technologies Sultanpur has been appointed as Authorized Dealer for UP to deal with Institutions. But nowhere they ______ mentioned that _.,.......,.._._ are Sole dealer, hence process of single tender is invalid and Open tender process required. Further though party placed with order is authorized dealer for UP but they ~-~ a Jhand- attached one PO for Deptt of Geography, HNB Garhwal ~niyersity, lJU~_ how possible. ... ,. - 2 - ir~~-aa,d_1!11'ltter need~. , , Whole proces is invali as open t~n~.t?!,!tr.~g_LJ_ investigation for treating it for single quotation. 16520000.00 .) 0TH ER OBSERVATIONS/ DISALLOWANCES BP-2018-19/20 dated 3-5-18 Amount off11966/- paid to M/S Sagar Tent House . . M/S Sagar Tent House issue bill of supply & charging GST on its bill @ 18%. Which is totally wrong because the party registered under composition scheme and unable to issue tax invoice. --~ ... -·· The amount of t913 paid towards SGST & f913 towards CGST is required to recover from the party. (Detail of Bill: Taxable Value : ~10140.68, SGST: ~912.66, CGST: t912.66) 1825.00 Vr No 01 dated 13-4-18 ., . ·· 2 t.2300/- reimburse to Ms.Anshika Gangwar for travelling expense for 1135.00 Page 35 of59 G.R. Garg & Co. Chartered Accountants travelling via Bus, but ticket only for n165/- is available in supporting, ----·~~- ---- hence balance disallowed . Vr No 38 dated 12-5-18 f443/-& f295/- paid to Mr. Yogesh Kumar Mishra for ins;i ental charges @ 0.35/km which_ is not allowed as per teqip-111 guidelines, 3 l)ence disallowed. 738.00 Vr No 42 dated 18-5-18 f425/- paid to Mr. Yogesh K Chandra for incicf,en_taJ..sharges @ f. 0 .35/km for 1214km which is not allowed as per teqip-111 guidelines, 4 hence disallowed. 425.00 Vr No 53 dated 18-5-18 f69.52/-& Rs.69.52/- paid to Mr. D.P. Vidyarthi for incidental charges ' al~~~~- @ f . O .35/km which i~ n~t _ ~ -~~.?-~r-~~ciip-111 guidelines, hence 5 disallowed 139.00 Vr No 39 dated 17-5-18 ) f150/- reimburse to Mr. Rajnish Singh for travelling expense from Varanasi to Sultanpur & return via train but train ticket _ is not o~ 6 record, hence disallowed 150.00 Vr No 65 dated 18-5-18 t19120 is paid against kachcha bill to M/S Sagar Tent House, no 7 proper supporti ng is attached, hence disallowe~ 19120.00 Vr No 86 dated 3-5-18 - - Amount off8600/- paid to M/S Sagar Tent House. M/S Sagar Tent House issue bill of supply & charging GST on its bill @ - 18%. Which is totally wrong because the party registered under - -- composition scheme and unable to issue tax invoi~e. - -- . - .. The amount of ~774 paid towards SGST & ?774 towards CGST is J required to recover from the party. (Detail of Bill: Taxable Value: t8600, SGST: f774, CGST: t774) Hence 8 GSJJ:. b?. cseg dis~ 1)Jqwed. 1548.00 Page 36 of59 j ) G.R. Garg & Co. Chartered Accountants Vr No 176 dated 7-12-18 Incidental Expenses has been paid to Mr. Akhilesh Kumar Singh @ 9 - f0.35/km amounting to f395.85, which is not permissible under the World Bank Guidelines, Hence disallowed 394.00 Vr No 174 dated 6-12-18 Incidental Expenses has been paid to Mr. Shashank Kumar @ 10 . f0.35/km amounting to f444.85 which is not permissi ble under the World Bank Guidelines, hence disallowed .... . . ,.. ... , 445.00 Vr No 175 dated 6-12-18 Incidental Expenses has been paid to Mr. Ambuj Kumar@ f0.35/km rmi~s!ble under the World Bank amounting to f444.85 which is ~~-t_ee_ 11 Guidelines, hence disallowed 445.00 Total 26364.00 REASON of REVISION- In Books of Account Faculty Salary was booked twice amounting to f71, 83,412/- K) Institute- Uttar Pradesh Textile Technology Institute, Kanpur OTHER OBSERVATION/ DISALLOWANCE Voucher Dated 18-2-19 amounting to f49828/- t800.is reimbursed to Dr. Kartik Kumar Samanta for Taxi fair for which no bills are on record., ~~~cej is~wed 800.00 Total ---- 800.00 ,; > • ,- -.' Page 37 of 59 , 'J G.R. Garg & Co. 'l Chartered Accountants 'J 'J L) Institute- Bundelkhand Institute Of Engineering & Technology. Jhansi 'J r, A. SERIOUS IRREGULARITY 'J ' In case of tender process for LAN Trainer initiated on and awarded to M/s Balaji Enterprises Delhi, whole ' '' =J process of tender partic~ ation looks dubious and need suitable investigation for rejection of award of tender. Following is some data: ' '' ' 'J1 S.No. Party's name and Quote GSTNo I / All tend~ Remarks ) address without irrespective of party 1 taxes \ address posted from I~ _) ') ~ -- post office i.e. ar-s-ame Shahadara J time and date -area ) belonging to J awardees' post J location J 1. Balaji Enterprises- ?264000/- 07AHIPB2550R1Z4 Date: 19.06.2018 Party which ·J 30, Tagore Gatil Batarpur Time: 12:44 p.m. was J ,Shaharda Delhi- 110032, Post office: Shaharda awarded J mobile: 9810507219 so tender, ,J I J J 0 E' for naged er two J minim·um J required ,,J number of J Page 38 of59 J J J ,,J ~ ~ v G.R. Garg & Co. Chartered Accountants participation s. 2. Lakshya Enterprises- f335000/- Date: 19.06.2018 r"/ " ~ 8-595 Pandavnagar, opp. Party provided TIN ime: 12:44 p.m. Naraina depot, Delhi- is not 110008, now Quotation(O (Two letter heads used) 9212399084 _7-17). ---- Looks ) & Another unregistered ) .is on Letter , dealer. ) head(08212 \ 388084) 3. V.S . Enterprises- f296000/- 07 ATFPP5648F1ZG Date: 19.06.2018 1426,llnd floor OUTRAM Time: 12:44 p.m. LINE, KINGSWAY CAMP, Pbst office: Sha hafda I DELHl-110009, '-so I Mobile:9312619405 i Whole above said tender prbq~s.s looks sham and corrobor 1ve in nature as tenders of all 3 posted by ""·~.,~ ::'":- .. .. ;:. -- awardees' from its area post office at same time. Further as 2"d participant looks unregistered (TIN no gi/en whi was prevalent in VAT regifTl~ -~~ ime startJ in July 2017) and looks chosen for minimum requirement of 3 parties. Due to bein_g u registered (Klndly check World bank guidelines) only 2 parties were left negating tend~r conditions of minimum 3 - Hence process even otherwise looks not tenable and whole t endering process resulting into invalid. ~ :,.: not substant;ve and w;thout cover;ng our obmvatloni:J Hence detailed investigation is suggested to take suitable action. ------ - / Page 39 of 59 G.R. Garg & Co. Chartered Accountants B.OTH ER OBSERVATIONS/ DISALLOWANCES SI Observation Amount Vr No 58 dated 17-12-18 f1480 reimburse to Mr. Vishal Yadav & t12!3 to Rohit Richarya for travelling exp. from BIET Jhansi to Lucknow & return via .To&but Taxi.bill & .9~-~r 1 supporting is not on record. Hen~e disallowed 1480.00 Vr No 82, dated 17-12-18 0 .!,l9.6.Q ~d to Betwa Tourist Bus Service for hiring bus from Jhansi to ,_ ~ Manipur 81 return but no Bill is available. Hence disallo'{,'ed 19600.00 VfNo 82, dated 17-12-1~ t2400 reimburse to Avadhesh Kumar Singh for travelling expense from Gablin Manipur Gwalior tb Jhansi & return via car but copy of R.C./Bills is _ 'l2.!J2n 3 record . Hence disallowed 2400.00 - Vr No 79 dated 29-12-18 f5184 reimbursed to Mr. Saddarama R. Patil for travelling expense from 4 -- Gulbarg to Sabram & return via car but copy of R.C./Bills is not on record . Hence disallowed . Vr No 79 dated 29-12-18 5184.00 f5184 reimburse to Mr. Avinash Sabrani for travelling expense from Kalaborgi to Sabram & return via car but copy of R.C./Bills is not on record. Hence .. -- · --.--- -~,-·-·" 5 disallowed. 5184.00 Vr No 50 dated 15-9-18 f6700 reimburse to Mr. Hlrendra Kumar ' Perival for travelling ..... ,·-· u. ·,- · _.,.. ·•- ·-····- expense ·1' from Lucknow to BIET Jhansi & return via car but copy of R.C./Bills is not on record . .. --- ~ '~ 6 Hence disallowed 6700.00 Vr No 42 dated 29-8-18 f9000 reimburse to Mr. Narendra Kumar for travelling expense via car but 7 cop J;;...not pn record. Hence disallowed .R.C/Bi)ls_ 9000.00 Total 49548.00 Page 40 of59 G.R. Garg & Co. Chartered Accountants M) Institute- Institute Of Engineering & Technology, Bundelkhand University, Jhansi OTHER OBSERVATIONS/ DISALLOWANCES SI Observation Amount Vr No 133 dated 6-2-19 f1950/- reimbursed to Mr. Rahul Shukla (Asst. Professor) for travelling from Kozhikode to IIM Rly station to Hotel Calicut Inn to Kolkata Airport via taxi. Total reimbursement made f1950 for 55km but the teimbursement allowed as per Teqip guidelines f .14/km, 1 Remaining Hence the allowable expense is f770 (14*55)...,_._ disallowed . ,..,., .., . ·-· ·~ ' ·" 1180.00 Vr No 134 dated 15-2-19 f1950/- reimbursed to Mr. Shahshikant Verma (Asst. Professor) for travelling from Kozhikode to IIM Rly station to Hotel Calicut Inn to Kolkata Airport via taxi. Total reimbursement made f1950 for 55km but the reimbursement allowed as per Teqip guidelines n4/km, 2 Hence the allowable expense is f.770 (14*55). Remaining disallowed 1180.00 In case of Tender -TEQIP-111/2018/itbi/84-Laptop "999696/- Order was placed to M/S Altitude Technologies for sup ly_~rn laptop of some specific configuration of HP following tendering process. Initially _ ...._ . . .,.. supply ... .order . Wi;IS delayed for one month for which request is on· record,· as explained tha~_:_ l~y was .t~-im~?~t of_s~-~-~~ and ?~~ ,__. - -of 6 pcs made supply -, on 7-5-1?. .... ....-.. Out of such supply one laptop was defective for display hence wa s return ed. A proportionate payment of ~166616/- was recovered from vendor and credited in security money in the month of Aug 18. Supplier has ' expressed his inability to replace & has given offer to supply 2 laptops in replacement. . . ... ,,, ~. - '• .....~-- .... . . _, As per our understanding and procurement guidelines such replacement can't take ... ·- . - .... ~- , - ' place as not tenable. Security so collected must be remitted to NPIU. Further legal action must be sought for inclusive supply against order placed and some action penal 3 in nature must be taken as per guidelines/norms 166616.00 Total 168976.00 Page 41 of 59 G.R. Garg & Co. Chartered Accountants N) Institute- Institute Of Engineering & Technology, Lucknow OTHER OBSERVATIONS/ DISALLOWANCES Observation Amount Vr No 18 dated 21-5-18 debited to Faculty Staff Development aggregating ?8496/- Bill was a sale invoice not Tax Invoice, also GST no. was hand written. In such cases, GST component should not be paid (f1296/-). 1296.00 Vr No 20 dated 22-5-18 debited to Reforms & Governance aggregating f6100/- Taxi Bill for f550 not on record. 550.00 . ' Vr No 16 dated 12-4-18 deb!ted_Jo Faculty Staff Development aggregating f10075/- Taxi bill (No. 1176) for travelling from New Delhi Airport to JNU New Delhi amounting to t400 paid to Mr. Prakash Vidhyar1;hi. Same amount has also been paid to Mr. S. Balasundaram on production of same bill. Further another Taxi bill off4001Nas not available Boarding pass for one side (Lucknow to Delhi) not available,. 800.00 ) Vr No 16 dated 12-4-18 debited to Faculty Staff Development aggregating f5636/- ) Travelled by own car against which ~C: not attached. ) Further amount claimed f900 for 49 KM which should be t490 (49*10) Boarding pass for one side (Lucknow to Delhi) not available 410.00 ) Vr No 16 dated 12-4-18 debited to Faculty Staff Development aggregating f18570/- Taxi Bill for t745 not on record . 745.00 - -- Vr No 11 dated 11-4-18 debited to Faculty Staff Development aggregating f10254/- ---- - -~ Taxi Bill for f500 not on record. ..... _.,.,...._ .. ----·- - - -;, Vr No 9 dated 11-4-18 debited to Faculty Staff Development aggregating f8496/- 500.00 __ ... ....,, sale invoice not Tax Invoice, also GST no. was hand written. In such cases, GST Bill was - -·- -·--= c;.<;>mponent ·.,· -, . should not be paid ({7344/-). 7344.00 Vr No 8 dated 11-4-18 debited to MEETING aggregating ?19378/- { On bill it is clearly mentioned that vendor is supplier of Building Materials, however Tea, I.: ~· Snacks & Water and other Food items has been purchased. How it is possible. ' -- Furthe r On bilf VAT wa·s .,.;~i·t~ . .:.:~ ,...-" t~'n which is no more applicable while GST has been charged ... - (Without GST No.) which is not proper Tax Invoice. And hence disallowed . 19378.00 Page 42 of59 G.R. Garg & Co. Chartered Accountants Bus Vr No 5 dated 11-4-18 debited to Faculty Staff Development aggregating ~13644/- Ticket for f1101 not on record. - Further taxi bill claimed ·1200 for total travel of 58 KM Hence disallowed 1721.00 -, Vr No 29 dated 6-6-18 debited to Reforms & Governance, aggregating {942/- Cash Memo of Unregistered Vendor Amount off42 charged as GST but bill was not Tax Invoice, it was Cash Memo 42.00 Vr No 123 dated 11-12-18 debited to Improve Student Learning -aggregating {18222/- Incidental Charges off172.55 has been paid but no such allowance is payable under TEQIP guideline. 173.00 Vr No 46 dated 7-7-18 debited to REFORMS & GOVERNANCE aggregating {12940/- 9..Qrigi[l_ Taxi bill was a Xerox cop',', no.t_ aJb.iJLwas orr record. Further on Bill it is clearly mentioned un-registered, inspite of that {70 has been paid as GST. 70.00 Vr No 69 dated 3-8-18 debited to OFFICE EXPENSES aggregating ?17098/- - On bill it is clearly mentioned that vendor is supplier of Buildi11g . ·-· ·--- · ~ . .. Ma\!:!ri,als.., .b.ow~v_eE ·~· ·~·-,,-_ ,.., ... ~-·--·--- ., . ·. . . . . ·. Stationery items has been purchased. How it is possible. Further On bill VAT was written which has been cut down and GST has been charged which is not proper Tax Invoice. Hence disallowed - 17098.00 Vr No 11 dated 11-4-18 debited to Faculty Staff Development aggregating ~6200/- Taxi Bill for - --not ?600 - ,,,.record, -···. on , . hence ·-·· disallowed ,. 600.00 Vr No 11 dated 11-4-18 debited to Faculty Staff Development aggregating ~7166/- Taxi Bill for ~1083 not on record. Hence disallowed. 1083.00 - - -----·-~"'·'--···/ Vr No 9 dated 11-4-18 debited to Faculty Staff Development aggregating f8779/- 250.00 Taxi Bill for ~300 claimed for 5 KM, allowabl~ @10/-KCV, ~50/- remainin~ disallowed Vr No 11 dated 11-4-18 debited to Faculty Staff Development aggregating f5400/- Taxi Bill for ~400 not on record, hence disallowed 400.00 Vr No 97dated 18-9-18 debited to Faculty Staff Development aggregating f22386/- Taxi Bill for f2386 not on record, hence disallowed. 2386.00 Tota·1 - 54846.00 ~.A.Rr:, -..;::,,. ~~~ i~ .,'.\/~ C'I FRN 000214N ':1o) ... l @ New Delhi reCJAcco" .!J '11<::- ~"' <,I Page 43 of 59 - - ) G.R. Garg & Co. Chartered Accountants REASON OF REVISION- Opening balance of advance amounting to '20000/- was adjusted in FY 2017-18, instead of FY 2018-19 causing mismatch. O) Institute- Harcourt Butler Technical University (HBTU), Kanpur OTHER OBSERVATIONS/ DISALLOWANCES Observation Amount File No: 7, dt: 13-4-18 Pranjal Tyagi (student) travelled from Bijnor to Delhi by bus, however no tickets for flSO were found. 150.00 File No: 72, dt: 7-9-18 Incidental Charges paid .35/km to Mr. Dr P.K. Kamani which is disallowed as per Teqip . - - -- ·' "'\ Ill guidelines. 154.00 File No: 1, dt: 16-4-18 Travelling Expense reimburse to Mr. Khalid Main for taxi f~,ir for which bill is not on .reG0rd. (Payment Advice No: C041800240064) - 1000.00 ) File No: 11, dt: 26-4-18 ) Travelling expense reimburse to Mr. Akhilesh Kumar Verma for taxi fare from Kanpur to Lucknow via OLA cab but the bill is not on record. (Payment Advice No: - -· ·- - . \ C04180290183 1328.00 File No: 64, dt: 19-9-18 Mr. Mohd Hakeem (Asst. Professor) travel from Aligarh to HBTU & Return by own car --..... ..,,_, ~ of which R.C. is not on record, so 2nd AC train fair is reimburse f1660. (Payment Advice No: C091804691511) Minimum allowable is general train fair, which is 75*2=150 1510.00 File No: 64, dt: 19-9-18 Mr. Naseem Ahmad Khan (Asst. Professor) travel from Aligarh to HBTU & Return by s not on rei:ord, so 2nd AC train fare is reimburse f1660. own caLOiW_hic:h R.<;:. i_ (Payment Advice No: C091804691555 Minimum allowable is general train fare which is 75*2=150 1510.00 Page 44 of59 G.R. Garg & Co. Chartered Accountants File No: 11, dt: 26-4-18 Incidental Charges paid .35/km to Mr. Dr. Anuradha Singh which is disallowed as per Teqip Ill guidelines. (Payment Advice No: C041802902132 308.00 File No: 106, dt: 27-2-19 Mr. Devendra Kumar Charturvedi (Professor) travel from Agra to HBTU, Knp & Return by own car of which R.C. is no.ton record, so 1st AC train fare is reimburse ~2460. (Payment Advice No: C021919336093) Minimum allowable general train fare is ~65 2395.00 File No: 106, dt: 27-2-19 Travelling Expense reimburse to Mr. Satyam Kumar for taxi fare (Ola cab) for which bill is not on record. (Payment Advice No: C021919367128) 1640.00 File No: 106, dt: 27-2-19 Travelling expense reimburses to Dr. S.C. Srivastava for taxi fare from Kanpur to Lucknow & return via OLA cab but the bill is not on record. (Payment Advice No : "-'~·s• ~ - . C021919190889) 1600.00 File No: 106, dt: 27-2-19 Travelling expense reimburse to Dr. Ashok Kumar Dighe for taxi fare from Anand to Ahmadabad & return (~1760/-) & from Luck now to Kanour & return via OLA cab but -- the bill is not on record. (Payment Advice No: C021919189485) 3360.00 Total 14955.00 Page 45 of 59 G.R. Garg & Co. Chartered Accountants P) Institute- MMM University Of Technology, Gorakhpur ~ SERIOUS OBSERVATION Purchase of 171 desktop (Total Value f11047455/- M/s Acme Digitek Solutions Pvt. Ltd.) a) Full 100% payment has been made'on 02.03.2019, whereas 20% amount was supposed to be retained until satisfactory performance of the installed systems. b) Satisfactory performance report for the desktops is not on record. c) 2% GST TDS (1% CGST & 1% SGST) has not been deducted on the payments made to ~ vendor. . d) Income Tax TDS has been deducted, however deducted TDS has not been deposited - .-.-, ~~~ till date of this audit. Non deposit of TDS may attract Interest & Penalty provisions. e) Department wise initial requisition list was not available to justify the requirement and the specifications. f) There were about 59 packed Desktops which were not even installed ti ll date. We ) have been explained that these desktops will be installed in new building preparing in the campus. Thus there were no needs to purchase these 59 desktops. Since vendor ) bill date was 19.12.2018 (Installation dates 21.01.2019) thus warranty of un-installed ) desktops is lapsing. Further Installation certificate has been prepared for all 171 - ) systems, inspite of so many systems been unpacked till date. g) About 9 desktops which were initially meant for CS Lab, were installed with other officials of the University h) Numbering and uni.ci . e code identification have not been done. J i) GRN is not av~ ord . Thereby date of recei.e.!_ ~ good~ cannot be e on re_£ . - ascertained. Further while doing entry in Store Register, goods receiving date is not written j) Date of delivery as per delivery challan is 18-12-18 whereas the e-w~y bill is dated 19-12-2018. k) Delivery schedule was crossed by more than 2 weeks still deduction for late delivery has not been made. 8514405.00 & Matter need to be further investigated for necessary action.~ 2128601.00 Page 46 of59 G.R. Garg & Co. Chartered Accountants B.OTHER OBSERVATIONS/ DISALLOWANCES Purcha se of 171 desktop (Total Value Rs. 11047455/- M/s Acme Digitek Solutions Pvt. Ltd.) a) Full 100% payment has been made on 02.03.2019, whereas 20% amount was supposed to be retained until satisfactory performance of the installed systems. b) Satisfactory performance report for the desktops is not on record. c) 2% GST TDS (1% CGST & 1% SGST) has not been deducted on the payments 'i,!:-'>- - ,1 ~ '. ".·.- ~ made to vendor. d) Income Tax TDS has been deducted, however deducted TDS has not been deposited till date of this audit. Non deposit of TDS may attract Interest & - Penalty provisions. ' e) Department wise initial requisition list was not available to justify the requ irement and the specifications. We have been explained that these desktops will be installed in new building ~ring in the campus. Thus there were no needs to purchase _!!l ese 59 desktops. Since vendor bill date was 19.12.2018 (Installation - dates 21.01.2019) thus warranty of un-installed desktops is J.ppsing Further Installation certificate has been prepared for all 171 systems, inspite of so many systems been unpacked ti ll date. g) About 9 9esktops which were inittally meci nt fo r CS Lab, were insta lled with other officials of the University h) Numbering and unique code identification has not been done. i) GRN is not available on record. Thereby date of receipt of goods cannot be ascertained. Further while doing entry in Store Register, goods receiving date is not written j) Date of delivery as per delivery challan is 18-12-18 whereas the e--J!.!y !:>ill is dated 19-12-2018. k) 106430.00 Page 47 of 59 G.R. Garg & Co. Chartered Accountants As per our opinion, late delivery charges as per contract @0.5% per week be recovered, hence disallowed. Purchase of Single Cylinder 4-Stroke Diesel Engine (Total Value f.91640/ M/s Roorkee equipment & Models Pvt. Ltd.) a) PO has been issued on 28-9-2018. However goods delivered on 27-11-2018 (No Goods . -. -·Note Received --.---~-- is attached only _ Invoice ... ... .. · -- ..... ·-·- · --· - - ...... ...... ~-.-.. - is attached). · ,- ~ -· -- -- ~-. ,-- There should be 0.5% per ~ week late delivery charge on late delivery, but no such deduction has been made. b) Vendor has not signed on purchase order as an acceptance and acknowledgement As per our opinion, late delivery charges as per contract @0.5% per week be - ~-- ·, ~ - -. .. "·' • -·- ••• • , .:• •, - · •. A recovered, hence disallowed. 3666.00 A payment of Rs.41300 made to M/s Dev Palace against refreshment which includes ) f.6300 as GST, however the said dealer is a composition dealer and not eligible to ' collect GST since dealer is giving Bill of Supply, not Tax invoice. Hence '6300 should be . recovered from concern person. 6300.00 V.NO. 1 dated 11.04.2018 debited in Faculty/Staff Development amounting to f12434/- - Taxi bill for ?870 not available. Hence disallowed V.NO. 3 dated 11.04.2018 debited in Faculty/Staff Development amounting to 870.00 f14586/- Train ticket for f190 & Bus ticket f86 was not available on record. Hence disallowed 276.00 l V.NO. 7 dated 12.04.2018 debited in Faculty/Staff Development amounting to '2716/- Train ticket for t725 (Knp to Gkp) is not attached with voucher. Hence disallowed. 725.00 V.No~ 8 dated 11.04.2018 debited in Faculty/Staff Development amounting to 510.00 Page 48 of59 ) G.R. Garg & Co. Chartered Accountants .CA '--=- .i f14751/- Train ticket for f510 (Gkp to Lko) is not attached with voucher. Hence disallowed. V.NO. 13 dated 12.04.2018 debited in Faculty/Staff Development amounting to f14SO/- Supporting for fl450 is not attached with voucher. Hence disallowed. 1450.00 V.NO. 21 dated 11.04.2018 debited in Faculty/Staff Development amounting to f16805/- Toll receipt for f470 is not attached with voucher. Hence disallowed . 470.00 Vr. dated 12.04.2018 debited in Faculty/Staff Development amounting to ?18956/- Parking & Toll receipt for f660 is not attached with voucher. Hence disallow.ed. 660.00 V.NO. 36 dated 18.04.2018 debited in Research & Development amounting to f10265/- R.K. Srivastava travelled by own car but no RC was available on record. Hence disallowed. 10265.00 V.NO. 44 dated 12.04.2018 debited in Faculty/Staff Development amounting to f30341/- Taxi bill for ~400 is not available. Hence disallowed. 400.00 Vr. dated 25.04.2018 debited in Faculty/Staff Development amounting to ~6086/- Train ticket forf865 is not on record. Hence disallowed. 865.00 Vr. dated 25.04.2018 debited in Faculty/Staff Development amounting tof11835/- Taxi Bill for f600 is not attached with voucher. Hence disallowed. 600.00 Vr. dated 25.04.2018 debited in Reforms & Governance amounting to f17636/- Air fare for~8908 & rail fare forf495 (Lko to Gkp) was not available with voucher. Hence disallowed. 9403.00 '""'G ' 0 Page 49 of59 I * I ~ ~ (Jrea Acco\)<' G.R. Garg & Co. Chartered Accountants Vr. dated 25.04.2018 debited in Faculty/Staff Development amounting to f17390/- Toll receipt for f255 (one side) is not attached with voucher. Hence disallowed. 255.00 V.NO. 46 dated 25.04.2018 debited in Faculty/Staff Development amounting to f600/- Taxi Bill forf600 is not attached with voucher. Hence disallowed. 600.00 V.NO. 45 dated 26.04.2018 debited in Faculty/Staff Development amounting to f16681/- Toll receipt for f155 (one side) is not attached with voucher. Hence disallowed. 155.00 V.NO. 49 dated 26.04.2018 debited in Management Capacity Development amounting tof32663/- OLA Taxi Bill for f350 is not attached with voucher. Hence disallowed. 350.00 V.NO. 52 dated 26.04.2018 debited in Faculty/Staff Development amounting to fl6020/- ) Vivek Kumar Pandey travelled by own car but no RC was available on record. Hence disallowed. 16020.00 V.NO. 56 dated 26.04.2018 debited in Faculty/Staff Development amounting to ?19350/- Toll receipt for f225 is not attached with voucher. Hence disallowed. 225.00 V.NO . 60 dated 28.04.2018 debited in Faculty/Staff Development amounting to f19356/- ) Train fare forf3691 & Taxi bill for {2540 were not available with voucher. Hence disallowed. 6231.00 Vr. dated 28.04.2018 debited in Faculty/Staff Development amounting tof12754/- Taxi bill for travelling from Gkp to Lko airport not found amounting to {7110. Hence disallowed. 7110.00 V.NO. 73 dated 17.05.2018 debited in Research & Development amounting to 15465.00 Page 50 of59 G.R. Garg & Co. Chartered Accountants r:FA;· ~ 1(j f15465/- Ajay Kumar Srivastava travelled by own car but no RC was available on record . Hence disallowed. V.NO. 85 dated 23.06.2018 debited in Improved Student Learning amounting to ?10000/- Travelled by own car but no R~-~ _ as. available on record. Hence disallowed. 10000.00 Vr. dated 11.06.2018 debited in graduate employability amounting to{82327/- ~ -- - ~-~ Taxi bi ll for... travelling from Sultanpur to MMM University Gkp not found amounting to f4800. Hence disallowed. 4800.00 Vr. dated 27.06.2018 debited in Reforms & Governance amounting to f11955/- Travelled by own car but no RC w as..~v~i_ l_ ab,le on record. Hence disallowed. 11955.00 V.NO. 115 dated 08.07.2018 debited in Faculty/Staff Development amounting to f13700/- Train fare for{2026 (Dehradun to GKP) was not available with voucher. Hence disallowed. 2026.00 Vr. dated 11.07.2018 debited in reforms & governance amounting to f5440/- RaiJ Ticket for travelling from Allahabad to Gkp & Back not found aryiounting to {2315 . Hence disallowed . 2315 .00 V.NO. 119 dated 11.07.2018 debited in reforms & governance amounting to f22061/- Air fare for f12061 & Taxi bill for ~1500 was not available with vo4cher . Hence disallowed. 13561.00 Vr. dated 27.07.2018 debited in Research & Development amounting to {24256/- .Taxi bilLfo.r: f 5190 (Gkp_to Q~l) was not available with voucher. Hence disallowed . 5190.00 Vr. dated 27.07.2018 debited in Research & Development amounting to '20701/- . ·:. . ._ •.;,.. Toll tax receipt forf530 snot attached with voui.h , . er. Hence disallowed . . ~ 530.00 Page 51 of 59 G.R. Garg & Co. Chartered Accountants V.NO. 134 dated 28.07.2018 debited in Research & Development amounting to f1740/- Bus Ticket for travelling from Gorakhpur to Faizabad & Faizabad to Gorakhpur not found amounting to f700. Hence disallowed. 700.00 V.NO. 125 dated 27.07.2018 debited in Faculty/Staff Development amounting to f4778/- Rail Ticket for travelling from Lucknow to Rourkee & Lucknow to Gorakhpur not found amounting to ?3730. Hence disallowed. 3730.00 Vr. dated 30.07.2018 debited in Faculty/Staff Development amounting to ?7022/- Bus Ticket for not found amounting to f1469. Hence disallowed. 1469.00 ) Vr. dated 20.11.2018 debited in Operating Cost amounting to flll33/- ) / Travelled by own car but no RC was available on record . Further bills not found for f1800. Hence disallowed. 1800.00 ) Vr. dated 17.02.2019 debited in Faculty/Staff Development amounting to ?8600/- No supporting fou nd for conference fees & travelling expenses. Hence disallowed. 8600.00 Vr. dated 17.02.2018 debited in Faculty/Staff Development amounting to 'f.8379/- Train Ticket for travelling from Lko to Allahabad & back not found amounting to f1730 . Hence disallowed. 1730.00 Vr . dated 20.02.2019 debited in Faculty/Staff Development amounting to f21206/- J No supporting found for Registration fees & TA/DA amounting to {8,266. . . 8266.00 Page 52 of59 G.R. Garg & Co. Chartered Accountants Vr. dated 07.03.2019 debited in Research & Development amounting to t12,206/- Railway ticket was available for f1622.46, however reimbursed f1806, Thus excess paid f183.54. Hence disallowed. 184.00 Total 266157.00 I. RAJASTHAN a) During the course of our audit we observed that the project institutes Paid amount for procurement of capital goods (under component 1.1.1) during the F.Y. 2018-19, however as per NPIU guidelines it is to be treated as revenue expenditure in books of accounts and charged to Profit and Loss Account in the year of expenditure itself. While following this procedure, the Institute is not deducting TDS under Section- 194(() of - . . _ _,.,,. . ,.._ _ ,,_ ,_ --,...-,w--.••• •,, 1 ,,-- ~•· "" '--~· -• -~·· •·• • •• ~ - .......- - The Income Tax Act, 1961.lt is recommended to deduct the TDS at the time of payment in future. b) t amount Paid for procurement of goods (under During the course of our audit we observed tha. component 1.1.1) but GST TDS@ 2% Under Section 51 of GST Act not deducted at the time of payment. I Suggestion: - . It is recommended to deduct TDS at the time of future payment. <> Observations having financial implications All the TEQIP- Ill project Institutions should follow the below guidelines regarding the appointment of office staff to carryout day-to-day TEQIP- Ill project work : - S. No. Designation Honorarium 1 TEQIP Officer/ MIS Officer/ Equivalent t3S,000.00/- p.m . 2 Account Assistant/ Equivalent t2s,ooo.oo/- p.m. 3 Junior Assistant/ LDC/ Data Entry/ Equivalent t18,000.00/- p.m. However, the Project Institution is hiring such office staff through man power supply agency at higher cost. '•• ,c, • -·"' '' ' ' ' •• ,•',• •. ,,,., _.~ Institute wise details of disallowed expenditure are hereunder: Page 53 of 59 G.R. Garg & Co. Chartered Accountants Expenditure incurred Maximum Expenditure Disallowed Expenditure Institute Name - .' by Institute allowed by NPIU during F: v·.-201s-19- M.L.V. Bhilwara 4,33,134.00 3,58,450.00 74,684.00 GEC, Bikaner 6,84,677.00 5,83,000.00 1,01,677.00 GEC, Bharatpur 10, 77,351.00 7,80,000.00 2,97,351.00 RTU, Kota 4,54,159.00 3,90,000.00 64,159.00 UD, Kota 9,20,400.00 7,80,000.00 1,40,400.00 Total 6,80,271.00 ~- s a A. During the course of our audit we observed some cases where amount was reimbursed without proper supporting/Bills. Details are here~nder: - • As per Institute wise details of comments & observations are given below A) Government Engineering College, Banswara ) I. We found that Amount Paid to M/s Universal Education of f3,02,08~/- after deduction of TDS of f6042/- under section 194C of Income tax at the Rate of As per the provision of Income Tax Act, 1961 it falls ....._ under section 1941 and TDS should be deducted at the rate of 10%. ) II. We also observed some cases where the institute is required to deduct TDS under Section - 194(J) and 194(C) but it fails>to-tieduct TDS on the amount paid during the F.Y. 2018-19. Details of Statutory Liability of TDS are given below: ) S. No. Party Name Amount Paid TDS Liability 1 Anmol Tent House & Decorates 23996 239.96 2 Diamond Drilling Hall 229785 2297.85 3 Hotel Nakshatra Mall 63858 638.58 4 R. S. power System P. Ltd 71036 1420.72 5 Dheeraj Paliwalia 45000 4500.00 6 S S Trading Co. 63720 637.20 7 Mithilesh Kumar 40000 4000.00 TOTAL 537395 13734.31 Page 54 of59 G.R. Garg & Co. Chartered Accountants Ill. M.L.V. Textile & Engineering College, Bhilwara (i) The Project institute has acquired Air conditioners by inviting Quotations through Tender/ Package No. TEQIP- 111/RJ/MTEB/06, this tender is given to M/s Electronic India. However, we observ~~-~hat difference in offer price in words and in numeric terms as mentioned in quotation. It is fl, 09,754.00 but in words it is written • ·~ _. ~- •., .-,-- ·- ~ · ···- · · . t -~- as Ten lakh nine thousand seven hundred fifty-four only. Further, we found that M/s Electronic India has given invoice of~lO, 3_ 9 ,040.00 Suggestion: - Institute should place due care and follow proper procedure before allotting tenders. IV. Government Engineering College, Ajmer (i) The Institute has not deducted TDS under section 194(J) on the amount paid to MIS Officer, Account Assistant and LDC during the F.Y. 2018-19. Details are hereunder: - S. No. Name of Staff Amount paid TDS to be deducted 1 Pulkit Khanna 20,000.00 2,000.00 2 Mahendra kumar 205,658.00 20,565.80 3 Shashi Bala Sharma 58,771.00 5,877.10 TOTAL 284,429.00 28,442.90 V. M.B.M. Engineering College, Jodhpur, (i) We also observed some cases (Salary Paid to TEQIP Office Staff) where the institute is required to deduct TDS under Section- 194(J) but it fails to deduct TDS on the amount paid during the F.Y. 2018-19. Details of Statutory Liability of TDS is given below: S. No. Month Amount Paid TDS Liability 1 August, 2018 39,678.00 3,967.80 2 September, 2018 78,000.00 7,800.00 3 October, 2018 78,000.00 7,800.00 4 November, 2018 78,000.00 7,800.00 Page 55 of 59 G.R. Garg & Co. Chartered Accountants 5 December, 2018 78,000.00 7,800.00 6 January, 2019 78,000.00 7,800.00 7 February, 2019 78,000.00 7,800.00 8 March, 2019 78,000.00 7,800.00 TOTAL 585,678.00 58,567.80 Further, we also observed some cases where the institute is required to deduct TDS under Section- 194(J) and 194(c)but it fails to deduct TDS on the amount paid during the F.Y. 2018-19. Details of Statutory Liability ofTDS is giv~rtbelow: ' • S. No. Party Amount Paid TDS Liability 1 Sanjay Singh Yadav 56,000.00 5,600.00 2 M/s Laxmi Travellers 56,160.00 561.60 3 M/s Samvidha Caters 61,274.00 612.74 4 National Car Rentals 113,824.00 1,138.24 TOTAL 287,258.00 7,912.58 ) (E) Government Engineering College, Bharatpur ) } (i) The Project Institute is neither taking quotations for expense on lodging and boarding of experts in hotel nor empanelling local hotels for expenditure incurred on lodging and boarding more than f30,000. ) (F) Rajasthan Technical University, Kota (i) During the course of our audit we observed some cases where same bill is reimbursed to different ~(~ ....,...-~..,...,.."' ...--·....._ persons. Details of such cases is hereunder: - "-. Case No. Name Date Disallowed mount _,.. ) Voucher No. Mr. Mukesh Saraswat 11-04-18 447.00 44 1 Mr. Himanshu Mittal 11-04-18 447.00 44 Mr. Raju Pal 11-04-18 447.00 44 Page 56 of59 G.R. Garg & Co. Chartered Accountants Mr. Mukesh Saraswat 30-05-18 712.00 43 2 Mr. Raju Pal 30-05-18 712.00 43 Mr. Himanshu Mittal 30-05-18 643.00 43 3 Mr. Ashish Kumar Tripathi 30-05-18 643.00 43 Mr. Himanshu Mittal 30-05-18 158.00 43 4 Mr. Raju Pal 30-05-18 158.00 43 TOTAL 4367.00 (G) University of Engineering College, Kota (i) During the course of our audit we observed some cases where amount was reimbursed without proper supporting/Bills. Details are hereunder: - Disallowed S. No. Name Date Voucher No. Amount Remark 1 Ganesh Meena 16-05-18 68 400 .00 Bus Bill not found 2 Ganesh Meena 16-05-18 68 400.00 Train Ticket not found 3 HimanshuSinghal 08-05-18 65 400.00 Train Ticket not found 4 Hardik Sharma 08-05 -18 54 400.00 Train Ticket not found No Flight Ticket is found, 5 Dr. G.S. Assawa 08-06-18 465 8,226 .00 only boarding pass is attached 6 Jeevesh Shrotriya 08-06-18 56 400.00 Train Ticket not found TOTAL l l ?,226.00 ... (H) Government Engineering College, Jhalawar (i) During · the course of ·our audit we observed that The Project Institute is not g with the NPIU guidelines relating to Maintenance of Computerized Books of Accounts. (ii) There are unidentifiable differences between PFMS Report (M -32 Report) and books of Accounts, which -~ ..... ........ __,.__,,... Page 57 of 59 G.R. Garg & Co. Chartered Accountants AFFILIATED TECHNICAL UNIVERSITIES (1.3) 1. VISVESVARAYA TECHNOLOGICAL UNIVERSITY a} Sum of ?15,00,000/- given in special Officer VTU RO Bengaluru for research and Development of Technical Education Training to Students as per the Register order dated 02.05.2018 through VTU account and on 20.03.2019 the same has been reimbursed to VTU accounts. b) The Payment of f25,00,000/- has been made to Karnataka State Higher Education Council GOK Bangalore as per Govt. order dated 01.10.2018,for setting of the combined stalls during Mysore Dasara Festival l ~ - - - -- 29.~~ of all universities in the state to provide information regarding different subjects and courses offered by each universities for improving Students Learning activities. However, the_utilization certificate frorp the j,«,"- · - .. - · .. - ... . _. ~... . - ····~ ? . - . : ... - Karnataka State Higher Council, GOK Bangalore has not been obtained . -.....-,. .f · 1 ' ......_ ..;.~. i /~;.\ ~ ; •:· , )) ~ , NPIU . .,. f '" . -... ,,. . ~ )\•-:\.~1;~if.\:·. a_.. \·li-~·"'·"'s.!,;:'.,,,, E A sum of fS}..?:. .Lakhs net outstanding as account of TDS Payable -.~s at 31.03.2018 requires . ;;~._,,;:;,~,:;,".r:~conciliation between TDS due and payable. Hence, in our opinion, the liabilities of the projects are overstated ~ ....... ·.- ../ by ?5.22 Lakhs as at 31.03.2019 between TEQIP and EDCIL book. The same has to be reconciled . b) National Project Implementation Unit is following the cash method of accounting. Thus, the NPIU do not follow "Accrual" system of accounting. This is not in conformity with Accounting Standard 1, "Disclosure of Accounting Policies" issued by the Council of the Institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. c) Amount of ts lakhs (PY 23.11 lakhs) paid as advance to IRCTC during the year has not been settled in books of accounts. This has resulted in understatement of expenditure and overstatement of assets. • - -·- · · - - - - - •• !t ) d) National Project Implementation Unit has not capitalized Property, Plant and Equipment. This is not in conformity with Accounting Standard 10, 11 Property, Plant and Equipment" issued by the council of the Institute of Chartered Accountants of India which requires that it ems should be recognized as an assets in case future economic benefits associates with the items. ) Page 58 of59 ) G.R. Garg & Co. Chartered Accountants t ion of Fi~edJ\~setU!Jhe year end 31-03-2019 . Hence we are a) The company has not done physical vfilj.f!ca_ unable to comment on the existence & Variation, if any b) There is balance on'515104 appearing in Loans & Advances on account ofTDS Recoverable fr_om NPIU-TEQIP which is required to be reconciled & settled. For G. R. GARG & COMPANY, Place: New Delhi (Partner) Dated : October 21, 2019 M.No. - 097327 Page 59 of59 G.R. Garg & Co. Chartered Accountants 777, MRM Chambers, D.B. Gupta Road Karol Bagh, New Delhi-110005 +91 11 23512307, 41546466 info@grgarg.co.in Annexure B to Consolidation Report Observations during Consolidation of Audited Financial Statements For the year ended on 31st March, 2019 A. STATE PROTECT IMPLEMENTATION UNIT S.No. Name Observations 1. SPIU, Uttar In Receipts & Payments account Current liabilities amounting to t 11.50 Lakhs Pradesh had been reduced from total payments made during the year. However, in order to maintain consistency of Consolidated Report, amount oft 2.49 Lakhs, which is payable to NPIU and f 2.43 Lakhs, which is payable to Director/ Vendor/ Others has been clubbed under the head have been clubbed under the head 'Other Receipts' and 'Received from Institution' on the Receipts side of Receipts and Payment account respectively. TDS & GST Payable amounting to f 6.67 Lakhs has been reduced from the payments made for various expenditures. ) 2. SPIU, a) Amount of Advances off 0.57 Lakhs have been treated as Expenditure in JHARKHAND the Statement of Sources and application of funds by the Management and the Auditor. b) Since, previous years Income and Expenditure account is not present in the current years audit report, it is taken from the previous year audit report. 3. SPIU, ORISSA Since the previous year's Income and Expenditure account is not present in the ------- - - -- ----- - - ,- - current years Audited Financial Statement, it is taken from previous years audit report. > Page 60 of65 G.R. Garg & Co. Chartered Accountants 4. SPIU, Since the previous year's Income and Expenditure account is, not p~sent in the ANDAMAN & current years Audited Financial Statement, it is taken from previous years audit NICOBAR report. B. CENTRALLY FUNDED TECHNICAL INSTITUTE S.No. Name Observations 1. NIT MIZORAM As per "Statement of Sources & Application of funds", there is a closing balance of~ 0.05 Lakhs as on 31- March-2018. However, the same has ni::" Nl:'fU NPIU M .No. - 0973 "to ,..,,. oV ~ Date: October 21, 2019 Place: New Delhi TECHNICAL EDUCATION QUALITY IMPROVEMENT PROGRAMME [TEQIP] PHASE-Ill KEY OBSERVATION OF AUDITOR Audit Report for Financial Year ended on 31 March, 2019 I. STATE PROJECT IMPLEMENTATION UNIT 1. NORTH EAST Common Observations: a) Maintenance of Primary records: It has been observed that there has been a general lacking in the 1 _ mainl:_E:!:!~.n.c':_ ~f_ e_ bgoks of accounts at SP,IU ari.4._ r~i~ipat~ng institutions. Either separate set of accounts have been a_ maintained manually or if maintained in tally, the same has not been printed and signed by concerned officials at periodical int al. ) b) amtenance of Registers and subsidiary books of Accounts: There has been default in maintenance of subsidiary records like Advance Register, Stock Register, Fixed Asset Register, Audit objection· Register etc. - c) Voucner Related: In most of the institutes, Vouchers are not serially numbered and arranged; instead they are kept in program (i!e~ ~.e r t~Jy •. A.J~~;pa~d an~ canceHed" ·seal hot affixed on the vouchers and GST number not ) available on some vouchers. ' . - d)Formation of Audit Observation Committee: Audit observation committee not formed in most of the institutes, ) the same need to be implemented soon to ensure compliance to audit objections. e) Annual Physical Verification of Fixed Assets: It has been observed that in case of institutes that have procured fixed assets during the year, physical verification of Assets has not been conducted at the end of the Financial Year. \ f) Procurement Related: It has oeen obs.erved that almost e~ery institute that has made _er,9._t_lJ!~r:rJ. el'.l!.9.U[ilJ.g ! ~e, ) financial year has some deficiency in the prescribed procurement procedures. Proper procurement training and ~~i~ j~" gis required to avoid repetition ·o fth"~~e'erro;"s'iii-p;ocure"m"e~t.-· " " . I I g) Institute wise detailed observation: Institute wise detailed observations attached to individual audit reports along with management replies. J 2. BIHAR I a) Method of Procurement, wo_ rk order pur~hase committee meeting, Stock Register indexing /BOG approval not ) -·- --- - ....,:•--·- ~ l held with Vouchers in some cases. '------·----, b) Requisition from the concerned department not found . There was delay in supply of material by the supplier, - Also time"ofsupply as per purchase order not followe·d by the supplier, b ufNo action or penalty charged against such suppliers. ---- c) SJ,ock Res.!_ster and L~ g j ~ ter are not pro erl maintained. Material may be misused because of Non· updatingof Receipt & Issue item, non- balancing in stock register. Issue ite_!!!_ department & signature of Re~ n~ on i.:_also unava ~ not indicated for concerned . So in this case, management~ hould take proper l action in this regard . y\ Page 77 of 186 ./ d) In terms of section 50 of the CGST Act, 2017, applicable w.e.f. 01.10.2018,2% G~T-TDS is required to be deducted on supplies of goods and services above (~).2.50 lakhs, we observed no GST TDS is deducted for payment 1 above (~).2,50,000/-. 3. CHATI"ISGARH Chhattisgarh Swami Vivekanand Technical University (CSVTU) Newai, Bhilai 1. GST TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual con~ract, exceeds two lakh fifty thousand rupees. However GST TDS has not been deducted by Institute against procurements of Goods/Equipments w.e.f -- 01/10/2018 in the given below cases: - a) Payment made to M/s NI Logic Pvt. Ltd. of (~).4~ Lagainst Bill no - 017/18-19 dated 01.10.2018. b) Payment made to M/s CSS Geospatial of (t).3009000/- against Bill no -15 dated 26.02.2019. • ~ - •• , , _ 1.;I 2.TDS has been late deposited by 22 days for the amount paid to Dr. Ashish Patel Against salary for the month of l\ \ July amounting to (t).60000/- for which TDS has been deducted (t)6000/- and deposited in 29.08.2018. (I 3. TDS of(~) 14000 has been ~ P.osited by 47 days for the Salary paid to Faculty for the month of Jan 2019.Due date for the same is 07.02.2019 but deposited in 26.03.2019. ( ,,I 4. TDS of (~). 14000 has been late de osl!,ed by 19 days for the Salary paid to Faculty for the month of Jan 2019.Due date for the same is 07.03.2019 but deposited in 26.03.2019. 5. During the course of audit, it is observed that adv ~ ained P!.?P~rly~& timely to align with NPIU guidelines by the Project Com uterized accounting is not mai_ Institute GEC, J a awar. I j'-'' o In case of Project Institute Go'lfraroeot Engineering College, Jhalawar, there is an overall differ~nce ~ ('1, between M- 32 Report and Books of accounts of (t). 18,078.00/-. ~ .7 ~ j ,:s o During our audit, no matter have been found that might have a significant impact in the implementation ~ y of the project. Page 81 of 186 7. UTIARAKHAND 1. STATE PROJECT IMPLEMENTATION UNIT, DEHRADUN S.No. Audit Observation Recommendation Management Comment 1. Fund Allocation Vs Actual expenditure Total Budgeted of (~) 33, 11,000/- allocated in quarter Ill and IV of Financial Year 2018-19 and expenditure of (~) 18, 47,572/- incurred during Management should the period. Management has achieved · the increase the efficiencies target 55.80 % of budget allocation. for achieving the target. 2. Books of Accounts We observed the books of accounts were maintained in computerized accounting in tally accounting software for F.Y 2018-19. 3. Fixed Assets Register During the Financial year, nil expenditure incurred for Fixed assets/Procurement of Goods. ( 4. Tax deducted at Source was deposited within the stipulated time. ,/ Page 82 of 186 2. WOMEN INSTITUTE OF TECHNOLOGY, DEHRADUN (1.1) S. No Audit Observation Recommendation Management Comment 1. Fund Allocation Vs Actual expenditure Total Budgeted of(~) 8, 27, 83,051/- allocated in Financial Year 2018-19 and expenditure of ~) 4, 17, 17,658/- incurred during the period. Management should Management has achieved the target 50.39 % of increase the efficiencies for budget allocation. -----~ achieving the target 2. Books of Accounts Institute has maintained books of account in For better Financial accounting software (i.e. tally) for F.Y 2018-19. controls and to avoid any miss-statement of Payments the cash Book must be checked by the 1. Cash Book has not been found checked and Higher Authorities at ) approved at frequent Intervals to ..identify any irregular/ Un-authorized payment. frequent intervals. J ) ) ) ) 3. Fixed Assets We observed mentioned i_i,_ that - voucher no !~e Fixed _A.~se!s Re.gister. were - not J ) 4. We observed that in some cases institute has paid Institute should obtain the Re_g!_~!~~~ic,n _fee__ on e basis _of Recefp!s / original invoice from party. broacher instead of original invoice. Rajasthan State (~). 46,610/- J Productivity cciu~cil · ..... . .. . . , y Page 83 of 186 National Board (~).1, 18,000/- Accreditation 5. Institute has pro~ S ~}.4, 2?!.?.~~ /:for l JQ~.~UI..Qf_ Institute should receive 1 1.1 ... 1.1 Equipment on the basis of Performa Invoice instead of original in~and-·pai'cfto original invoice from to Global Information system Global lnforma ion system tecnnology. Institute technology hau_~ received_original invoice till the date of audit. l 6. Advance of (~) 50,000/- pending for settlement sirice24'.11.2011. - 3. UITARAKHAND TECHNICAL UNIVERSITY, DEHRADUN (ATU 1.2) l)TO S.No. Audit Observation Recommendation Management Comment 1. fund Allocation Vs Actual eKpenditure Total Budgeted of (~) 4, 01, 38,272/- allocated in Financial Year 2018-19 and expenditure of(~ 31, ·64;863/- incurred during Management should the period. Management has achieved the increase the efficiencies target 7.88 % of budget allocation. for achieving the target. 2. Books of Accounts .( We observed the books of accounts were maintained in Tally accounting software for F.Y 2018-19. Page 84 of 186 ') ') '), ') ') ') 1. Journal voucher was posted in tally software 'J but Journal voucher was not maintaine~ in 'J proper way. Journal Voucher should 'J ---· also . attached~ with 'J - voucher. l 2. Institute has not take tally backup on regular 'J or periodical basis. } } ' ' } 3. Cash Book / Bank Book ' } } The Institutes has maintained contingency Institute should take Register for the PFMS payments. We observed printout o '"cashbook & ) that totaling was not done in contingency Bank Ledger on 1 J register. rh-e ln'Stitute shoulcfdo the totaling,on p~cal basis or quarterlL basis in ~tod1t!iTIY oasis a11d hard copy should be verified by ') contingencyregister and should~atch from EP authorized person. ) -04 records. () ) J J 4. Central Stock Register/Procurement Register ,_) 1.J During the year, (t) nil expenditure incurred, for procurement but some procurement item was J shown in central stock Register. J J u 1. Index was not mentioned in central stock register~- -- I u u I 2. Date of..f.!lY.sical Verification was not filling- up in central stock Register. u 0 u 0 0 V -.J Page 85 of 186 0 u -.J 0 0 5. Tax deducted at Source was not deposited Management should \ wTthm the stif)ulated_tiro. f-9r the period April 201 to September 2018. Du e · to which, deposit the TDS amount within the stipulated time. Institute has paid ·(t) 329 /- interest on TDS during the period. 6. We Observed that F rm 16 was not produced Management should all for our verification during the audit period. document regarding form 16 was maintained in office building. 7. Expenditure of (~) 30, 95 14/ - ~ showing Management should PMFSsoftware but tota l payment of ~ ) 31, prepare reconciliation for 0,733 is showing in EP- 4 report. Hence, The differences between EP-04 differences of (f 25,019/· is reflecting between and Expenditure shown in PMFS and EP-4. The concern person Yfas not PFMS. able t o provide any justificat ion regarding - differences of(~ 25,019/-. ~ 8. With reference to letter no 2529/TEQIP 111/2018 on dated 30.10.2018, lnstitut~~ d~RQSited..to (~) 108537/- in PFMS PNB A/c no - 370i00210 d'3 and sa me amount was not reflected ...._._,___ in PFMS software Institute till .date........-...- --- has not sent any intimation to NPIU/SPIU. 9. With reference to voucher NQ...BP -2018-19 - The Intimation has sent to (~)24,25,54,59 , Amount of (~) 32667/- was NPIU for rectification. shown in PFMS software and Books of Accounts but same was not shown In EP-04 report ·' Page 86 of 186 ", '! '! 'J 'J 'J I -10. During the F.Y, The Instit ute has opened new bank accounts no - 35820200000125~ in the '} name or Noaa1omcer Hnance Con roller bof nil I"") balance was shown in account on 31.03.2019. Institute should close the bank accounts. '} , '} , , 11. General Observation ' '' Inter head differences found between PFMS software report and Books of Accounts. , • '' } ' 1 THOC INSTITUTE OF HYOROPOWER ENGINEERING & TECHNOLOGY (1 .1) ) ) S.No. Audit Observation Recommendation Management Comment J ) 1. Fund Allocation Vs Actual expenditure ) J To Total Budgeted of (t) 7, 44, 53,166/- Institute should increase the _) allocated in Financial Year 2018-19 and efficiencies for achieving the expenditure of (t) 5, 77, 98, 734/2 target. J incurred during . the period. Management has achieved the target J 77.63 % of budget allocation. J J 2. Books of Accounts Journal Voucher should also J attached with voucher. We observed the books of accounts J were maintained in Tally accounting J software for F.Y 2018-19.But Journal Vou cher was not maiQ~ . · ed in B.(QP.er J J way. J J J J J J Page 87 of 186 J ~ ...) ~ 3. Cash Book Register For better Financial Controls and to avoid any miss-statement of I Cash Book has not been found cb~cke~ Payments the Cash Book must be and approved at frequent Intervals to checked by the Higher Authorities identify any irregular/ Un-authorized at frequent intervals ... payment. 4. Fixed Assets Register 5. We observed that in some cas~s The Institute should mention the voucher no was not mention in Fixed Voucher no in Fixed assets Assets Keg,ster. register. ---•r- ·• Tax deducted at Source was deposite!L Institute should deposit TDS -Within the stipulated time except some within stipulated time. cases. COLLEGE OF TECHNOLOGY, PANTNAGAR,UDHAM SINGH NAGAR (1.1) S.No. Audit Observation Recommendation Management Comment 1. Fund Allocation Vs Actual e>~ ,fl .• ~" ~&ut.ccov - - Smart Tours & Travels 1360/08.03.2019 20,921/- Hiring Charges of Vehicle Smart Tours & Travels 1359/08.03.2019 6,412/- Hiring Charges of Vehicle TOTAL 1,70,377/- Observation. TDS has not been deducted from the above bills. TDS should be deducted @1% for the aforesaid payment along with the next bill. As per Income Tax Act, 1961 under Section 194(C) TDS should be deducted from the single payment of ({).30, 000/- or ({). 1, 00,000/-in a Financial Year. Further, selection procedure has not been followed for the same. 4. Delay in deposit of TDS / Head of Account Amount(~ Date of Due Date of ) Deduction Deposit Date of Depo ) TDS on statutory 7,434/- 26.09.2018 07.10.2018 25.02.2019 Audit Fees ) TDS on statutory 9,027 /- 26.09.2018 07.10.2018 25.02.2019 I> Audit Fees I) TDS on Printing 605/- 29.10.2018 07.11.2018 24.01.2019 I Charges I l TDS on statutory 17,162/- 14.11.2018/ 07.12.2018 25.02.2019 Audit Fees I I Due to delay in deposit of TDS, the organization has paid penal interest of(~) 20, 750/-. I I ' I 162 College of a. As per voucher no. 60 a sum of (~).29, 93,831/- has been paid to EM BEE Software Pvt. Ltd 12.06.19 Engineering towards Supply, installation & Commissioning of WI-Fl equipment. TDS has not been deducted U/S I &Technology 194 C @ 2% as the same is in the nature of Works Contracts. ~ ,J I 1 Bhubaneswa b. A contract have been entered between CET Bbsr& Transforming higher education GATE Page 99 of 186 - r Academy Pvt. Ltd for Providing coaching for GATE Exam and the nature of services is professional and it falls U/S 194J & TDS is required to be deducted @ 10% but TDS has been actually deducted @ 2%. ( 03 Indira a. Late deposit ofTDS has been observed, w.hich are given as below. ~ - 4 - .... . - _,: , ..__ .,..• .. ... __ . , _ . .. . ., .- -, .... 13.06.19 Gandhi Institute of Technology, Salary Month Date of Payment of TDS Due date for payr Sarang, Salary TDS Dhenkanal Amount 1~Irr March 2018 14.04.2018, 145500.00 07.05.2018 26.04.2018 April 2018 01.05.2018 138645.00 07.06.2018 May 2018 29.05.2018 135799.00 07.06.2018 June 2018 29.06.2018 38250.00 07.07.2018 June 2018 10.07.2018 85492.00 07.08.2018 July 2018 03.08.2018 134866.00 07.09.2018 Au gust 2018 03.09.2018 137742.00 07.10.2018 September 2018 26.09.2018 106129.00 07.10.2018 October 2018 17.11.2018 125767.00 07.11.2018 November 2018 05.12.2018 132774.00 07.12.2018 December 2018 28.12.2018 127401.00 07.01.2019 January 2019 ,• 15.02.2019 127581.00 07.03.2019 I - \j I* ~ijo - ~ (:) . . i, 1 Page 100 of 186 c, FRN : 000214N ,!!! -:1,i, New Delhi "'i:::- " I. '-'" &rerJAccov . - ) b. TDS return copies were not available for our verification c. No TOS has been dedu_ cted from payment of (t) 1, 32,507.00 made to SR Khuntia for civil and electrical maintenance work of office building. d. Observations in adjustment of advances given to Staffs: • No proper record or supporting was available whether the payment was made in cash or \ any othetmod; by.staffs t-~·vendei°"or other;, r • No TDS was deducted for the payment made to vendors where ever is applicable . e. Observations in Procurement: • A civil work contract awarded to Mr. Shiv Prasad Sahoo. • (t) 12, 17,611.00 and in work order value of the work Price quoted by contactor for work is is (t) 12, 17,611.00, but the payment was made of (t) 12, 54,674 to the contractor. Reasons for ,,, '''" •....,..¥·<•• -::1 excess . - payment were ....... ·· ,, ~ not.1nentioned in PQ.Y.m.eot advice . f • No general ledgers ate.maintained by the organization ... ·· - - ·~ IS) Organization is also maintaining another account having balance of (t) 15, 06,099.00 at the I year end March 2019. This account is maintained for the payment of tax liabilities. They borrow I I money from college for meeting expenses whenever deficiency in PFMS. Details of closing oalah~e of the accounts component wise are not available which may have effect on the Utilisation Certificate I given. I There is mismatch in component wise expenditure in M 32 report and accounts maintained by the I> institute. ... I I I .J4 BijuPattnaik 1. There is an unadjusted advance of ~ 50,000.00 in the name of Dr.ParthaSarkar since 12.06.19 / University of 7.05.2018. Technology, Rourkela 2. There is a debit of (~) 1,920.00 pending in EP-04 vide PFMS Advice number C031917469953/Dated 18-03-2019, Vr. Number BP-2018-19-20. 3. Name of Party Amount TDS Date of Date Due Date of Date Of Paid Amount Payment of Deposit TDS Deposi Tax Dedu cted Page 101 of 186 Fast 18, 79,268.00 1,59,260.00 21.12.18 21.1 07:01.19 19.03.19 Communication 2.18 LaxmidharBisw 4,27,699.00 8,146.00 21.12.18 21.1 07.01.19 19.03.19 al Catering 2.18 &Supplier 4. TDs...cetw:.o. should have been filed in 3rd quarter of FY 2018-19 for the above transactions, but t'1_ese were filed in 4th g1:1arter. TDS return acknowledgement copy for 4th quarter is not availab~Pe-rial'ty will be - levfed for delay in filing of return . 5. There is a payment made on 19.03.2019 vide Vr No- BP-2018-19-21 to Smart Tours and Travels worth (t) 41,072.00 toward hiring charges of vehicle without deduction of tax. 6. Observations in tender procedure- a) Tender for Catering Services (Party Name- LaxmidharBiswal) • Complete tender file was not available for our verification viz. Tender advertisement, terms 1 er'tntH:liiY cfoc menls 15 part1e ett: and cond ft'ions oftenae , te-nd- • As per the terms of work order No- BPUT/Tender/18/4951 dated 09.11.2018, the party had to deposit (t) 50,000.00 as security money, but the party has deposited ~) 30,000.00 only. The reason for short deposit was unexplained by the unit. b) Tender for Event Management "Smart Odisha Hackthon-2018" (Party Name- Fast Communication) o Complete tender file was not available for our verification viz . Tender advertisement, terms and conditions oftm'i~ ' n er oi aing ocuments by parties etc. (ii No records were available of (t) 8,000.00 which was supposed to be received as tender ou n_! of (~) 4, 00,0~0.00 paper cost from 4 parties, and al o no re ords fou nd regarding EMO a1:,1_ supposed to be received from 4 pa rties. · OS Veer 15.06.1!:J SurendraSai University of a. Internal control system for settlement of advances needs to be strengthened so that no I Technology, I Page 102 of 186 a·urla advances will remain unsettled for more than 30 days. ·--;- -- - - ..........- -- ---~--- b. TDS de9!,l~~d on salary paii:i..!Q qy alit teacher has been transferred tc:>, colle e account an d ~ .re. Durin the udit process document for TDS deposit (TDS Challan) & TDS return · deposited fro was not made available to us, as a result of which w e are unable to make any Comment on the same. l Paral a. Though TDS has been deducted correctly from contractual staffs @ 10%, but in challans, 14.06.19 Maharaja section has been wrongly written isT92A instea of 19 J. TDS return 24Q has been filed instead of Engineering 26Q in the 1•t quarter of 2018-19. So we are unable to comment on the correct section of TOS College deduction and timely filing of TOS returns as the TDS return copies of other quarters were not Sitapalli, available at the time of our visit. Berhampur b. L te dep~sit C>! TDS has been observed, which are given as below. I Salary Month TDSAmount Due date for payment of TDS March 2018 111250.00 07.05.2018 ) April 2018 112000.00 07.06.2018 May 2018 112000.00 07.07.2018 C. ~ OS has been observed, which are given below. Party Name Bill Amount (Exclusive TDS to be Actual TDS GST) ...._ ...............-,.- Deducted Engineers Academy 6426000.00 642600.00 77968.00 Universal Education 2558898.00 255890.00 51178.00 V Page 103 of 186 ' d. No }DS has een deducted from pav.ment of l, 61,000.00 made towards catering services provided by vendor vide payment voucher No. BP-2018-19-202 dated 11.11.2018. ' e. TDS worth ~) 84,746 is deducted from the payment made to IT distributer for supplying computers. However, TDS amount is not yet deposited in Government account; it is lying in a separate bank account maintamecffiy tfie instltut on. f. Organization is also maintaining another account having balance of(~) 24, 64,119.63 at the year end March 2019. This account is maintained for the payment of tax liabilities. They borrow money from colle e for meeting expenses whenever th~re is deficiency in PFMS. Details of closing l balanceofthe accounts component wise are not avallable whjch may haveeffect onu;;- Certificate given. - Utilisation g. On verification of Payment of remuneration, it is observed that arrear remuneration has been paid of(~). 257, 833/- for the period before appointment of Nodal o. ficer "(Project) (MrAditya Prasad Das}.·-- · .... · h. 3 Debit entries are pending as at the end of the year amounting to(~)- 98,090.00. i. There is Differences of(~). 144090.00 between M 32 and EP-04, the details of differences could not be explained by the mst1tut1on. Page 104 of 186 ( Goverm:nent 1. Ref. Voucher No./Date- 286/27.02.2019 13.06.19 College of Engineering, Head of Account -Advertisement Keonjhar Amount((~).) - 40,404/- Observation. The aforesaid payment has been made to M/s. Aakar Advertising Agency amounting to (~). 40,404/- towards advertisement cost. But TDS has not been deducted from the bill., TDS should be deducted @1% for the aforesaid payment along with the next bill. As per Income Tax Act, 1961 under Section 194(C) TDS should be deducted from the single payment of (~).30, 000/- or (~). 1, 00,000/-in a Financial Year. 2. It is found that TDS has been deducted on dated. 15.12.2018 from salary paid to quality teachers amounting to(~. 82,833/-. But the same has not been de osited~ t~in the due date. Non deposit of TDS within due date may attract penal interest @ 1.5% per month. ) 3. On verification of M-32, ltjs found t hat {I) 7, 86,690/- vide PFMSJ1~ _D_o..,,c;O:U926415837 dated. 01.03.2019 has been wrongly shown as expenditure. But the same has been rejected by the concerned authority but still has be_ as__ e.n...shmtl a£...de.b.it.pen.ding on ...3.1.03~2019. Hence, there is a difference of(~). 7, 86,690/- between expenditure shown in M-32 and actual expenditure. Government 1. It is found that Non deductions of TDS in the following payments have been made till 13.06.19 College of March, 2019. Details are as follows : Engineering, Bhawanipatna, Date Name of Parties Amount (~ Purpose Deduction (u/s) Kalahandi . 28.06.2018 Sai intelligence 53,200/- Out source of 194c Gc service Employees 13.08.2018 Sai intelligence 18,400/- Out source of 194c service ~ployees 05.09.2018 Sai intelligence 18,400/- Out source of 194c service Employees J 28.10.18 Sai intelligence 18,400/- Out source of 194c service Employees J V Page 105 of 186 - 01.11.2018 Sai intelligence 18,400/- Out source of 194c service Employees 05.12.18 Sai intelligence 18,400/- Out source of 194c service Employees 24.12.18 Think cell 11,64,306h Trainings 194c Learning programs Solutions 19.02.2019 Think cell 11,64,306/ Trainings 194c Learning programs Solutions 19.02.2019 Universal 3,90,320/- Trainings 194c education programs 18.03.2019 Think cell 11,64,306/- Trainings 194c Learning programs Solutions 18.03.2019 Universal 3,90,320/- Trainings 194c education programs 2. During the course of our Audit for the Financial Year 2018-19, there is difference of (<) 64,500/- Between PFMS and Cashbook mai~ta ined I.e. EP04re~ rt showing excess payment Without Any expenses being shown in M32. V Page 106 of 186 10. Madhya Pradesh UEC, Ujjain Particular Auditor's Observation IDS C.Ompliance under Ujjain Engineering Colle~e, Ujjain has not complied with GuideUnes Income Tax Act ,1961 regarding TDS \mder Income Tax Act, 1961. 111 . As per the Circular 23/2017 and Circular 1/2014 issued by CBDT in respect of TDS deduction on Value + GST Component), however it was observed that management deduct TDS n N t A ntjTaxable Value + GST Component). \ 111 Services provided by "The GATE Academy" are under purview of TDS under section 194J of Income Tax Act, 1951, however same has not been Deducted by the college. · · ---- ------··-··----~ ·--~-·~. Proper Books of Accounts Ledgers/ Fixed Asset Register/ Stock Register are not Maintained for .tbe TEQUIP- Ill funds manually. Merely Entry in Tally is ~-~t sufficient. There ShOU cf be proper books Of aCCOUn S rea I y avamJ°bfe· 0 chec the invoice/ Amount entered in Talfy vis-a-vis-PFMS ----- --- - -----~---~~ RGPV, Bhopal .))no. Particular TDS Compliance under Auditor's Observation According to the provisioned must be deposited to the Government by 7th Income Tax Act, 1961 of the subsequent month. However', RGPV Bhopal not deposited any TDS J amount to the government till date. - "' TDS on GST As per the provisions of GST Act and Notification No. 50 issued by Central Government dated 13.09.2018, bodies established by government shall be required to deduct tax at source @2% ( CGST i% + SGST 1%) on the payment made or credited to the supplier where the total value of supply Under a contract exceed (~).2, 50,000/-excluding GST. However, RGPV Bhopa l h~-~ pot d"7dLJ_cte9, ariy IDS cm_ G$To.!J_payment mad_e ,during the J F.Y.2018-19 . . , '- / ': <\} \ i/"S Reports Differences M32 and EP04 reports, which are generated by PFMS showing different -. / balance of' o a expen'cflture - - lncurreddurTniF.Y. .,.,. --~-~, , - ·-,.-C - -.,.__ __ -, ,,- _ 2018-19. --->~•·------,r-__ ...,~.-~s--- --C.•. ' SATl,Visidha ..,:'No. ,. Particular Auditor's Observation TDS Compliance under Sam rat Ashok Technological Engineering College, Vidishahas not.~Hed \ , Income Tax Act,1961. -- with guidelines regarding TDSunder Income Tax Act, 1961. Page 107 of 186 Ill As per the Circular 23/2017 and Circular 1/2014issued by CBDT in respe, of TDS deduction on Taxable Income instead of Net Amount (Taxable Vall - + GST Component), however it was observed that management deduct TD" on Net Amount (Taxable Value + GST Component) Ill Services provided by "The GATE Institute" are under purview of Tr under section 194J of Income Tax Act, 1951, however same has bee- deducted under section 194C by the college. 2. TDS on GST As per the provisions of GST Act and Notification No. 50 issued by Centr Government dated 13.09.2018, bodies established by government shall b 0 required to deduct tax at source @2% ( CGST 1% + SGST 1%) on th1= payment made or credited to the supplier where the total value of sup~ under a contract exceed (t).2,50,000/-exclGding GST. However, college h?- deducted Tds including GST amount. - 3. Accounting Errors As per the guidelines issued by NPIU books of accounts should L maintained as pe~ Cash basis not as per Accrual basis, however it w- · / I observed that some entrres are passed on Accrual basis by the college ' - ---~ ~ ~-1\ 4. Reports Differences M32 and EP04, both the reports which are generated by PFMS showit ,0 rv"- different balance of total expenditureincurred du ring F. Y. 2018-19. - 5. Non-Availability of Stamp During vouching it was found that agreement between. The GATE lnstitut<> Paper and College was not on stamp paper. SGSITS, Indore S.No. Particular Auditor's Observation 1 Payment Acknowledgement During vouching it was found that print of PFMS report was not au_achL ..i I with su ort iruh(io.Q.tme e. 2. Advance Payments According to the guidelines advance payments should becharged off to th"' relevant project activity account headafter adjustment during the financ,u, ' year. However, it wasfound t ha ome of the advances are st_ i!!_ rem, unad 'ust~ddurin the eri od . 3. 4. (, - Reports Differences M32 and EP04 reports, which are generated by PFMSshowing differer I c balance of total expenditure incurredduring F.Y. 2018-19. -- Salary for th e month June 2018 has been paid bymanagement duri....,. July 2018 in which salary of one ofthe faculty (~). 63000 have not been ~~ ',/? credited to his accountbut it was re -:e· n PFMS. Afterdiscussion w, . NPIUamount of salary has been credited to the respectivefaculty accov ·· .. / but it was double counted in PFMS. y Page 108 of 186 REC. Rewa / ~ - ";.No. I 1.. Particular Contract Performance Auditor's Observation With the Order No. TEQIP-3/2018/2779 df I 7/09/18,the iosUtution has selected M/s. Carrier Launch Educated New Delhi for providing Employability Skills Training to the student f REC, Rewa. The total amount I payable as per the contract was (~)- 8, 49,600/- which shall be in the three I equal installments of(~) 2, 83,200/-. Institution had paid (<). 4, 96,176/- to M/s. Carrier Launch Educate Ltd. than terminated the contract by letter No . "") TEQIP-3/2019/226 Rewa Dated 16/01/2019 but there is- no clause of Performance Guarantee found in the confraft also, there was no clause of I ) ..... recovery of the amount alreaay paia. ' SPIU, HO '')No. Particular Auditor's Observation f-- 1 Non-Deduction of TDS While performing audit it was observed that no TDS wasdeducted on 9 payr;nent made to vendor for advertisement innewspaper amounting to (r).167, 326 on which TDSamounted to (~.3347. .... Non-Compliance of TA In accordance with TA & DA Rules issued by NPIU, travellingallowance for &DArules air travel is admitted only and therefore,tickets are booked from AIRINDIA or by any other privateairlines ifin case ~ NDI~ flights are not available. However, the same has not been followed in mo t of the cases. ft hasbeen observed that Air tickets were booked from privateairl AIRINDIA flights were available. .._~- ......_.. . ines even when MITS , Gwalior (" lo. Particular Auditor's Observation ~ 1. Payment term inPurchase According to Payment terms given in Purchase order, 100%payment shall Order. be made on Delivery & Installation, whereas 90%payment should be made on Delivery & Installatio n and 10% OnSatisfactoryreport.Hence institute shou ld retain 10% of totalCost till satisfactory report. -. , L. Installation &SatisfactoryReport Institute has issu ~g_ single report for Installation &Satisfaction, w hereas l separate reports sh ou ld be issued for each . 3 Late delivery of goodsfrom During the course of audit, it has been observed that in mostof the cases vendor. of procurement, ~ctual delivery date differsfromscheduled delivery date J (as agreed in Purchase order). 4 Liquidated damages not charged As referred above in Point 3, actual delivery date differs fromScheduled / delivery date in most of the Ccls~s. HoWeVer, oc!ause or fi qu icla'ted damages on ac2ount of late delivery wasobserved in the agreements. 5 Non-Compliance of TA &DA In accordance with TA & DA Rules Issued by NPIU, travellingallowance fo r rules air travel is admitted only and therefore, ticketsare booked from AIRINDIA or b,y any other private ai rlines ifn case AIRINDIA flights are not available. However, the samehas not been followed in most of the cases. It has beenobserved that Air tickets were booked from private airlines. - - - Page 109 of 186 JEC, Jabalpur S.No. Particular Auditor's Observation 1. Non-Deduction ofTDS While performing audit it was observed that no TDS wasdeducted on , payment made to professor fo r NBAAaccreditation Training Programme _ amounting to (t) 24352lon which TDS should be deducted under sectic 194J. IGEC,Sagar S.No. Particular Auditor's Observation I 1. Non maintenance of proper tally data Ta lly entries were not passed on real time basis and no s~ecific persc wa~ appointed for maintaining Tally Data. 2. Delay in Payment of TDS While conducting audit it wa s observed th at payment of Tax Deducteu was not of as per dates specified by Incom e Tax Act 1961~ -- 3. Payment of TDS under wrong Du ring the course of audit it was observed that TD2-E_ayment r·- head professional services of TQIP employees was wrongly made under 192t:l insfoaa of 1~4J. 4. Non-Compliance of TA & DA As per guidelines of TA/DA norms for all types of TEQI P-111 Activiti rules maximum payment to empl oyees for local conveyance havin g AGP (~).5400 to bellows (t).7600 should not exceed (~).338 per day. Duri1. 0 au dit it was fou nd that em plqyee havi ng grade pay of (~).6000 w allowed reimbursement of local conveyance in excess of(~ 338 per day . .. 5. Settlement of advances During course of audit we observed that there was very delay settleme1,L of advances. --··-...-,.-""... . .....- - ,_ ,,.,... ~-- ~-............ ., ._,,~ . 6. Excess Payment of Honorarium -- As pe r rules of Academic Performance Auditor Manual provided to us, Honorarium is payable fo r days o AGaff +Textfatra'{. During audit it v... found that Audit was cond ucted for 2 days (Aug ~ 29 2018) b"+ honorarium was paid for 4 days instead of 3 days which r~ .~:llted in excess payment of (~)5000. 7. Non-Compliance of TA & DA In accordance with TA & DA Rules issued by NPIU, travelling allowar ' rules for air travel is admitted only and therefore, tickets are booked from AtRINDli'>: or by any other private airlines if in case AIRINDIA flights '- ; not available. However, the same has not been followed in most oft' • cases. It has been observed that Air tickets were booked from private airlines even when AIRINDIA flights were available. 8. ~~ ) Twinning Activity Payment for the exn,:,nc"'" amountine: to .rn 58486 under minor twinn' , . activities was made by the college itself for their students ra her h an nn ~ snarin g basi s, ~ 1. According to the provision TDS must be deposited by the ih of the subsequent month. However, it is observed th at some of the college not complied the sa me. 2. TDS on GST not deducted by some of the colleges. 3. There is need to strengthen internal control over books of accounts of the instituti on. Page 110 of 186 11. UTTAR PRADESH - --- Revision has been done in order to give fair presentation/reconciliation . ... . - with_ .,,.. . Ms32/ EP-04 due to...incorrect -. ·- -~--~ bookings by some project institutions in books of accounts, specifically KNIT, Sultanpur, MJP, Ruhelkhand, Bareilly, IET, and Lucknowetc 1. OVERVIEW i. We by an agreement have been assigned to carry out the Statutory Audit of the TEQIP-111 Project, Uttar Pradesh for the year ending 31st March'2019. The development objectives of the Project are to:- • Improving quality and equity in engineering institutions in focus states viz. 7 Low Income States (LIS), eight states in the North-East of India, three Hill states viz. Himachal Pradesh, Jammu & Kashmir, Uttarakhand and Andaman and Nicobar Islands (a union territory (UT)), • System-level initiatives to strengthen sector governance and performance which include widening the scope of Affiliating Technical Universities {ATUs) to improve their policy, academic and management practices towards affiliated institutions, and • Twinning Arrangements to Build Capacity and Improve Performance of institutions and ATUs participating in focus states ) ) ) II. r_~~desh for the year We have conducted the Statutory Audit of TEQIP-111 Project in the State of l)ttc1_ 2017-18. Audit Reports has already been issued. The TEQIP-111 is a project financed by World Bank. This ) management letter is an extension of our audit reports and contains material observations and comments on the ) following areas: o Accounting records, system and controls examined by us. I!) The degree of Compliance of the financial covenants on the financing agreements. I. We have audited the accounts of the project covering the period ended 31st March, 2019. We have cove red the following Institutes/Colleges/Universities: "' Bundelkhand Institute Of Engineering & Technology, Jhansi 0 Dr. APJ Abdul Kalam Technical University, Lucknow e Dayalbagh Educational Institute (Deemed University), Agra o FET MJP Rohilakhand University, Bareilly (!) HacourtButtler Technical University (HBTU), Kanpur 0 Institute Of Engineering & Technology, BundelkhcJnd University, Jhansi Cl Institute Of Engineering & Technology, Dr BR Ambedkar University, Agra (!) Institute Of Engineering & Technology, Faizabad o Institute Of Engineering & Technology, Lucknow ® Kamla Nehru Institute Of Technology, Sultanpur 0 MMM University Of Technology, Gorakhpur ., Rajkiya Engineering College, Ambedkar Nagar o Rajkiya Engineering College, Azamgarh V Page 111 of 186 • Rajkiya Engineering College, Banda o Rajkiya Engineering College, Bijnor • State Project Implementation Unit, Lucknow • Uma Nath Singh Institute Of Engineering & Technology, Jaunpur • Uttar Pradesh Textile Technology Institute, Kanpur 2. OBJECTIVE OF THE AUDIT I. The essence of the World Bank audit policy is to ensure that the Bank receives adequate independent, professional audit assurance that the proceeds of World Bank credit were used for the purposes intended, that the annual · project financial statements are free from material misstatement, and that the terms of the credit agreement were complied with in all material respects. II. The objective of the audit of the Project Financial Statement (PFS) is to enable the auditor to express a professional opinion as to whether. Ill. The PFS present fairly, in all material respects, the sources and applications of project funds for the period under audit examination, IV. The funds were utilized for the purposes for which they were provided, and V. Expenditures, shown in the PFS are eligible for financing under the credit agreement. The books of accounts that provide the basis for preparation of the PFS are established to reflect the financial transactions of the project and are maintained by the project units. 3. SCOPE OF THE AUDIT As per the Terms of Reference and Request for Proposal with respect to the agreement dated 10.10.2018, the specific areas of coverage of the statutory audit are as follows: An assessment of the adequacy of the Project financial statements, including ~ To check accuracy and authenticity of records presented by the management. To ascertain that accounting policies are followed as per plans. • To analyses and improve Statutory check system . To facilitate prevention and detection of misstatements. ·. ' e To examine safeguar9ing of assets. ,. y Page 112 of 186 ) • To provide new suggestion to management . e To review operation of overall Statutory control system. o To evaluate adequacy of Statutory control system. • To ensure compliance of laid down policies, procedures, accounting and financial reporting document in financial management manual of the project. • To establish appropriate budgeting system " To regular monitor actual financial performance with budgets and targets. ) e To monitor physical and financial progress .. • To establish procedures and systems for ensuring standard Statutory controls such as checking of expenditure, appropriate documentation, levels of authorization, bifurcation of duties, joint signature of two officers on all payments, periodic bank reconciliation and physical verification·. · ) • The financial statements give a true and fair view of financial position of the individual TEQIP institution, SPIU and consolidated institutions and SPIU. ) • All funds have been used in accordance with the conditions of the relevant legal agreements and only for the purposes for which the financing was provided. ) ) ) 4. AUDIT PREPARATION AND PLANNING ) ) I. The audit was conducted in accordance with generally accepted accounting principles and' standards of auditing. Before commencement of the audit, structured meeting and consultative discussions were held with officials at Head Office, Lucknow regarding project. II. Our audit planning was based on our experiences gained through audits of various project and its compliances and changes incorporated, fund flow mechanism, books and accounts maintained, reports generated, cost categories etc 5. AUDIT OBSERVATION Our observations relating to this audit have been divided into four segments described below: o Comments and observations on the financial management records, systems and controls that were examined during the course of the review; 11> Deficiencies and areas of weakness in systems and controls and recommendations for their improvements; Page 113 of 186 o Matters that have come to attention during the audit that might have a significant impact on the implementation of the project; and • Any other matters that the auditor considers pertinent to report in relation to the financial management of the project. };;,, Comments and observations on the Financial Management records, systems and controls that were examined during the course of the review. Accounting & Book Keeping i) As per the Financial Management Manual of the TEQIP-111 project, accounting should be done as per the chart of accounts prescribed. However, it is observed expenditures are being wrongly booked/paid from other head of accounts. The Institutes are not following the prescribed chart of accounts . . ; ·- - - ... ·- - ~~ _ __,._, __. ___ _, . ......... .. ,.._ ~..., ,. _ -,-i, . .. .... - ii) We have observed at Institute~ are not maintainlng~the sh b~o~ properly. There are di,:fer:nces betweeri ~he cash book prepared and t e P . ,.,... . - ·-~- fl'vr-32) - e . urf er, 1t 1s also observed at some institutes the Consumable Stock Register has not been maintained. iii) We examined the expenditures incurred at the all the Institutes under the TEQIP-111, Uttar Pradesh during the financial year 2018-2019.lt is observed that bills for expenditure were not found in record. The Institutes are required to maintained proper records for the expenditure made. iv) he PFMS payment voucher along with We have observed that Institutes are not keeping the print out of t_ • ..-,;_,, ,..• _., ,,-__,., • · ·-·-1·,, , .. ",-~· ._ , • . .,. ,.. I th e ex enditu.r.es. In order to check t e beneficiary ~cc~unt, it is necessary to keep a print of the PFMS payment voucher. v) We have observed t hat Institutes are not keeping the record ~f the peo le/students .~ding the 1 Workshops and training ro ~ ms arranged for their improvement. The expenditure incurred . on .t~odings and Snacks during these workshops could not be verified. vi) We have examined that Institutes are incurring expenditure for Travelling to various places for lectures and attending meetings. It is observed that proper bills and boarding passes have not been kept in record to justify \- the expenditure. Further, where travel has be~n made though own car, copyof Rc·h-as not been kept in record. I vii) It is also observed that the institutes are not making payment/ reimbursement of the travelling expenses has per the norms of NPIU i.e. the -,l!J£rArITlesare- not e ng folTo'wed-by Institutes. The Institutes have paid ------ incidental charges --· ---·-- which - are against the .... . guidelines •.. ~ .. .of - NPIU, therefore .the amount has been disallowed . , .. .. viii) It is observed that the bills for expenditure do not contain the GTIN of the Institutes due to which the Institutes covered under GST will not tie abie to take th'e lnput.. tax credit. Further in few cases GST have been charged by suppliers who opted for composition scheme which is not to be charged hence disallowed. b) Accounting & Book Keep in~ Page 114 of 186 , ) '> ,,,'J '> i) The PFMS and Bank Account rec~ io_ _ n_has not been ro e lllfil! b '") ") l Institutes have not prepared the PFMS reconciliation on Quarterly basis. c) Statutory Compliances I'"') ') i) It is observed that the Institutes are required to deduct TDS on the payments to their vendors. However, it / is observed that in the following Institutes, TDS has not been deducte deposfted aunng t fie F'r:2018-19 r) ") • Rajkiya Engineering College, Banda, 1 • Rajkiya Engineering College, Bijnor, 1 ) • Dayalbagh Educational Institute (Deemed University), Agra, ) o Kamla Nehru Institute Of Technology, Sultanpur, 1 '\ ) a VBS PurvanchalUnivercity,Jaunpur, ) o Institute Of Engineering & Technology, Bundelkhand University, Jhansi ~) ) o HacourtButtler Technical University (HBTU), Kanpur ) • REC, Ambedkarnagar ) ) • REC Azamgarh ) • BIET Jhansi ) ) • MMMUT Gorakhpur ) 111 IET,Faizabad ) ) D) Procurement of Goods & Services _) It has been observed that some Institutes have not followed procedures for procurement in letter and spirit with J due vigil ance, proper survey and comparison Trile"nderlng process and in some places in procurem ent on name of J proprietary items by obtai ning single quotation for which compara~.oformation were available on ihternet. Sue specifi c observations have been incorporat ed with heading Serious Irregularities in our main report for J J f necessary investigations and suitable actions. J e) Advances& its adjustment n ~~ 2 ti' 0 We have found t hat advance in respect of employees for various activities amounting to ~ 28,6Z,540L:. is J9-'f"~ J J J J Page 115 of 186 J J J J .....; S.No. Institute Amount({) l FET MJP Rohilakhand University, Bareily 2,00,000.00 2 Rajkiya Engineering College, Azamgarh 5,15,000.00 3. Rajkiya Engineering College, Banda 1,440.00 4. Rajkiya Engineering College, Ambedkar Nagar 6,43,600.00 s. MMM University OfTechnology, Gorakhpur 2,85,900.00 6. Kamala Nehru Institute of Technology, Sutanpur 7,71,600.00 7. Dr. Ram Manoharlohia, Institute of Engineering & 4,50,000.00 Technology, Jaunpur Total 28,67,540.00 ~ Deficiencies and areas of weakness in systems and controls and recommendations for their improvements. i) Proposal for procurement of computers & laptops - It looks required quantities are overstated as there ~\'..s_. Q~Y.Q!:!EL§. .. months in man ~~---d._el_ laces as well a;.c items founcLunpack.e nused -d~fi!'li!!g. th,,eir requirements. Also intended use is not found in few places(ltems being used by ppl/deptt other than requisitions. ii) ,tally Bills & Voucher of expenditure should be properly maintained and recorded in cash book and _ accounting software. iii) ___ _ Requ ired TDS should __ _ . , ..... should be file on due dates. ., be deducted .. . and deducted ' .. TDS . amount should be deposit on tim~ ,and TDS returns ' iv) for !di_Lt_st~~!:lts, which need necessa ry_ A~:~J~}~E:.~ .!~-,~ario~-~ employees are pendi~g_ ~allow up and subseq uent adjustments. .. ., ,, ' v) Prescribed guidelines with regard to Physical verification of fixed assets at -· . - . ----·~ -· ,- regular -··· . . . - intervals -. sh_ould be - adhered. - - vi) Registers specified in Financial Management Manual are not being prepared by the Institutes. Hence, ~ .... - --- - • . .- "· ··- - . --- . - ·"' Any other matters that the auditor considers pertinent to report in relation to the financial management of the project. ) ) i) Efforts should be made to operate an online system of IUFR reporting by the Institutes t hrough the ) reports generated by the TALLY account ing software. Checks shou ld be implemented on the report submitted by ) the Institutes and ATU so that the reporting done is not subject to change after the report submission. ) ) CONCLUSION ) ) Subject to the key audit observations reported above, statutory control system of the SPIU, ATU & Institutes was J found adequate and satisfactory. We wish to take this opportunity to thank Project Management for the ) courtesies and cooperation extended to our audit teams. J J J II. AFFILIATED TECHNICAL UNIVERSITIES J 1. BATU LONERE J a) It has been observed that the bills against which expenses are reimbursed should be obtained in the name of Univer sit y_(For Eg. Voucher No.: BP=-i018-19-150,152) b) TDS provisions are not complied in some instance . V Page 117 of 186 2. VISVESVARAYA TECHNOLOGICAL UNIVERSITY-KARNATAKA 1. Opening and Closing Balance of Receipt & Payment Statements/accounts tallies with the respective cash books and also Opening Balance adopted in Statements tallies with the Closing Balance of Previous Audit Report . (Not applicable for current year) ~ 2. Financial Management Systems was implement in the project Institution as per the Guideline in TEQIP (PFMS Manual) and after obtaining approval in the Board of Governors headed by the Chairman, Different Committees and sub-committees administer the implementation of the project under the scheme TEQIP Phase Ill. 3. There is no option given in the software for reflecting transaction pertaining to Tax Deducted at Source --~------~ \ (TDS) ,{Income Tax, GST and other statutory deduction if any) and its payment to concerned Government authorities in the Software after the payment are made. 4. Grant on the Receipts side of Receipt and Payments Account are taken equal to the payment made as per ___ _... through the approvals ...... PFMS Account. 5. Sum of (t) 15,00,000/- given in special Officer VTU RO Bengaluru for research and Development of Technical Education Training to Students as per the Register order dated 02.05.2018 through VTU account and on 20.03 .201~.- e ~c1.me has been reimbursed to VTU accounts. ~h_ 6. The Payment of (t) 25,00,000/- has been made to Karnataka State Higher Education Council GOK Bangalore as per Govt. order dated 01.10.2018,for setting of the combined stalls during Mysore Dasara Festival 2018 of all universities in the state to provide information regard ing different subjects and courses offered by each universities for improving Students Learning activities. However, the utilization certificate from the Karnataka State Ba~gc1lcne h,,~s not been obtained. Higher Council, GQK , 3. .»AWAHAR LAL NEHRU TECHN LOGICAl UNIVERSITY HYDERABAD J L NI l) 1. PHYSICAL AND FINANCIAL PROGRESS {PROCURMENT) Procurement as per Difference Remarks PFMS PMSS 5138184 27,16,600 24,21,584 Procurement completed but details are not updated in - - ~ - PMSS. Page 118 of 186 2. Expenditure difference between FMRs & Books. Particular As per FMR-M32 As per Books of Difference Accounts Total Expenditure 2018-19 91.48,615 90,99,171 49,444 Total ) Less:-(1) Previous year 17-18 expenditure allowed in 2018-19 39,844 \ (2) TDS amount claimed from NPIU nut Expenditure accounted in books of 9,600 -,._.. accounts 2019-20 ) ) Net Difference - ) ) 3. TDS has to deduct for c~:~!i.~g.~ervices But no deduc~~ has been made during the period of April to 5th ) September 2018. ) 4. GST TDS has to deduct for any payment made to Goods or As well as services Which an amount exceeds ) ) of(~) 2, 50,000/- Compulsorily GST TDS hat to deduct 2% on value Excluding GST(CGST 1% & SGST 1%) But not yet done GST TDS for the period 01.10.2018 to 14.02.2019. 1 ) Ill CENTRALLY FUNDED TECHNICAL INSTITUTES 1. NIT AGARTALA • The previous advance balance of ~). 25, 33,206.00 has been adjusted this year and also advance paid during the year (t) 18, 76,800.00 fpr conducting various Workshops, Conference, training etc. to the various onagencies (Vendors). implementati_ • Further utilization of the above advance given has to be monitored on a more efficient manner. V Page 119 of 186 ) ) 2. NIT MEGHALAVA 1. Cash book not attested by person in-charge: It has been observed that the accounts being maintained in tally, however t P,!!nted & dul ~ gned coQ of ca~}!. book is not available. As per Para 6.4 of the Financial Management Manual," The'Cash Book will be closed monthly and atteste by the In-charge (Finance)''. Management Reply: NIT Meghalaya maintains a register where the monthly printouts are maintained and duly attested by the Nodal Officer Finance. . . - 2. Maintenance of books and registers: It has been observed that the Institute has not maintained register f for audit objections. ' Management Reply: TEQIP Cell, NIT Meghalaya will be maintaining this register with immediate effect 3. Annual Physical Verification of Fixed As.sets: As per Para 9.3 of the Financial Management Manual, "There will be a physical verification of assets and stores on yearly basis and the same will be completed within 15 days after the end of the year. Result of such verification will be noted in the stock register under dated signature of verifying officer." The same has not pgen conducted till the period of audit. Management Reply: The annual verification of assets procured under TEQIP is generally carried out by the internal audit committee of the institute along with physical verification of all Institute assets. The same is under process - I and will be completed shortly. 4. Audit observation committee: As per Para 10.7 of the Financial Management Manual, "Every SPIU/CFl/lnstitutions will set up Audit observation Committee". However, no such committee is formed. Management Reply: A commit ee as now-bien constituted in thi.s regard·.·· . - ·~ . . S. Non-payment of statutory dues deducted from party: It has been observed that taxes deducted amounting to (~. 3000.00 from payments made to MrVineetSahulahave not been deposited to the concerned authority. ~- · - Management Reply: This is due to technical prol;!l~m in.J~fMS. The matter has been taken up by the finance team of NPIU and would be resol~ed slio rtly. ... . -~ ..•, \ -- -- 6. Incorrect Booking of e1 • - ,,-. • ~ <· \ 4. Annual Physical Verification of Fixed Asset s: As per Para 9.3 of t he Fi nancial Management Manu al, "Th ere will 1 be a physical ve ifl_ca\lPQ of assets and stores on yea rly basis and the sa me will be completed within 15 days after t he end of t he year. Result of such verification will be noted in t he stock register under dated signatu re of verifying officer." The same has not been conducted till the period of audit. Management Reply: Steps have been.initiated to conduct asset and stock verification periodically -...._,..---!"",'.""".......,,,....... _ .. :,;,,.,_ .... . ..l Page 128 of 186 10.) NIT MIZORAM An amount of (~).3,42,381 has been shown under the head consumables (1.1.3.1) is laboratory items for research 1 ~ - consumables and should have been debited under research and development (1.1.2.5). 11) NIT MANIPUR 1. Pending Advances: As per Para 9.3 of the Financial Management Manual, "advances will be settled within prescribed time limit and further advance will not be made without settlement of previous advance." However, it is observed that a lot of advances are remaining unsettled for over a month as on 31•t March 2019. Also, it has been observed that further adva ces b en made to individuals without ·settlement of previou'.> ' adva ce~. Even advance issued in 2017-18 are not yet settle~ . Management Rep y: Advance settlement is delayed due to the event organizers/program coordinators failed to submit the required documents. Moreover, repeated reminders have been sent to settle all the pending advances. Advance is made to individuals without settlement of previous advances due to urgency of the event to be attended/organized. This will be showed in next audit 2. Invoice level observations: ) c. As per Para 9.6 of the Financial Management Manual, "All_bills/invoices/claims and receipts should be of a ~-·'"~· -w• -, .. . ) recent date and at the same the number, address and tax registration number of the payee and serial number sh~~i'cfbe pre-printed on these documents. Howeve T,it has 6een observed that most of the bills don't have GST ) num er prin ted on them. ---~-=-- an gement Reply: As pointed out by the audit, in future all the bill_ v_ s { in._ oiceL claimed a,_nd receive s~ould be in recent date and any purchased should be strictly fo lowed on different number, address and also form registered ) bocITes:··Most of the shops in Manipur are without GST registration . Further, we have informed the event/ program ) organizer to'h uy materials/goods from those shops which have GST registration. ) ~ d. Payment made for NBA Audit & Document Preparation to Paul Clee&RavichandKancharla(~). 1 lakh each. ~ p_g rtin ~~- - - -...~.~--- • Management Reply: Payment of(~). 1 lakh each to Paul Clee and RavichandKancharla is made as per the·claim J.9r,m~ letter frorr1_ !..f 2 ?!,di ~ r, TE~IP-111 with approval from~competent authority of institute. e supporting -- - documents for payment of 1 lakhs each will be collected from the payee and same will be placed before next audit. ~.~.... e. Expenditure settlement of (~3, 53,244.00 for BoG~ FC IV,l.eeting_ io Delhi: N8.~~ttendance ~~et attache9. Management Reply: At the time of settlement, attendance sheet of BoG& FC meeting in Delhi is not attached as it \ is not provided by the organizer. Necessary attendance sheet attached herewith for the expenditure settlement of ~T2:· 53,244.00/· or BOG & FC mee~ing held at Delhi are enclosed or reference - f. It has been observed that fees collectec:j from students for attending seminars and workshops conducted und~.e_are credited to Institute Account. As per our view it shall be deducted from 'the ex enditure of ..J particular semina(/~o.rk~hopar;iddi e.r:ent1arfigure booked as expenditure in TEQIP. -· ' ) Man~ ~nt Reply: There is an instruction from the NPIU that fees collected from students participated in seminar/workshop has to be deposited to Institute Account under Internal Generation Resources (IGR). ------··--- 3. Audit observation committee: J y Page 129 of 186 As per Para 10.7 of the Financial Management Manual, "Every SPIU/CFl/lnstitutions will set up Audit observation Committee". However, no such committee is formed. Management Reply: As instructed Audit observation Committee is formed 4. Booking of Expenditure: Expenditure has been booked in PFMS under any head irrespective of actual head of payment, as such there are S. 7 .m:-:-:=-=::-::::-;--=-:~::-:::-:-:--::--:-:-:::-::":":"~~,,_;.-w;~M~ huge differences in component wise expen I ure as per ace uots. as compare o 1--J Also, the total expenditure as pE!"FPFM aoesn't tally witfi 2. No explanation could be given regarding the same. Management Reply: During the 4th Quarter of FY 20,.J.8-19 there was delay in allocation of fund in PFMS for which TEQIP have utilized funds from Institute Account. Later funds were allocated on PFMS which was not sufficient to repay to Institute therefore the whole total amount allocated on PFMS is utilized to repay to institute irrespective of actual head of payment hence, there is differences in component wise expenditure 5. Lapse in Internal Control: It has been observed that practice of making estimates at inflated rates is followed, thereby obtaining 100% or more advances. This results in delay o sett eme . ~s'o,anamount of~. 6, 87,006.00 has been recovered as excess advance during the year as compared to actual expenditure. Such practice should be avoided and advarrce-shocrtff e given only ,fi'.iiiavcir a e ancl wit proper ca cu at1ons. Management Reply: Advance is given as per the estimated budget made by the event organizers; as a result, amount of (~) 6, 87,006.00 has been recovered as excess advance during the year as compared to actual expenditure. It is noted and advance payment will be avoided. IV.CENTRALLY FUNDED INSTITUTION 1. NIT TRICHY To get approved the IUFR (Interim Un audited Financial Report) from time to time which is currently maintained electronically. { To attach accounting voucher duly authorized with respective bills or register maintained . ' To obtain the,,.,.,. certified ___..- --- - - ,~-. from the concerned --· PFMS ledger __ ....,,...~ __,,_~....-----· authority,.. -... ' 2. Nil Sii..CHAIR. a) b) The financial management record system and controls that were examined during the course of review ------- were found satisfactory and as per guideline issued by implementing authority. It was observed from the statement of accounts that an amount of(~). 45.53 lakh paid as advance for < conducting/attending various Workshop/conference/Seminar etc. (through PFMS) during the period in addition to .r opening balance of(~). 12.18 lakh. Out of which an amount of (~) 48, 71,400 was recovered leaving balance worth (~) 8,99,600 which is yet to b \ adjusted as on 31/03/2019. c) Particular attention is needed for regular practice w.r.t. obtaining temporary loan from the institute. Page 130 of 186 ) ' d) Practice for payment of Advance at the end ,of tbe ~inancial Year must be•ignored and special effort may tie taken to s'iittle the advance during the Financial year itself. 3. NIT KURUKSHETRA 1) TDS deducted but not deposited in time as per the Provision of Income Tax Act, 1961. 2) GST-TDS deducted but not deposited in time as per the Provision of GST Act, 2017. Recommendation: - ~ - Institute should deduct TDS as per Income Tax Act, 1961& GST Act, 2017 and deposit the same with interest if late~ yment. -...:;: ~ Institute should maintain a TDS Ledger separ~!~JY as per Income Tax Act, 1961& GST Act, 2017 where all ..... _.,. - --- -· the entries should be posted on timely manner and the same should be deposit with the Government before the due date of deposit ofTDS amount. );> The Institution should check seek P!:.,Ofessional advice in case of any assistance regarding TDS Matters as per Income Tax Act,191 & GST Act,2017. ) 4. IIEST SHIBPUR ) We observed that during audit the following five (5) vouchers generated within 31.03.2019 but payment were not ) made due to non availability of fund: J .. SI NO. Head Voucher No. Amount in INR Name of Party ) ) 1. 1.3.2.5 BP-2018-19-894 15,316.00 ShankarBhattacharjee ) 2. 1.3.2.5 BP-2018-19-899 3,650.00 HimadriSekhar Bhattacharyya 3. 1.3.2.1 BP-2018-19-895 18,316.00 Surjit Kumar Roy 4. 1.3.2.1 BP-2018-19-896 9,100.00 Suman Deep De 5. 1.3.2.1 BP-2018-19-901 4,825.00 KrishanuPrakash J Total in INR 51,207 .00 V , "' lu ("I ~if ~J ':1~ ~ '( ~ _.. FRN 00021~, ' ;; . 0. Deihl ,l Page 131 of 186 ;, ,~...NQW ..... .eo ;..ccov ~~ - The following shortcoming observed~ n the pro~ment,procedure need to be dealt with:- 1. Non inclusion of penalty clause for delayed delivery of high value equipments. ~------·~·-,-~ --,.... -·-,,... -- 2. Non withholding of performance guarantee till satisfactory performance for a given period . ... 3. Purchase of equipment not from Original Equipments Manufacture. 5. NIT ROURKELA In order to register in PFMS (As per TEQIP-111 PFMS User Manual) the Institute needs to submit bank Account Vi;<. ·• :~:1•! ,'. •'.', . i}~ number with the cancell~.d cheque to the NPIU. For the same the Institute have opened a saving bank account with state Bank of India, NIT campus branch, Rourkela (Bank Account No. 36714661318, TEQIP-111, NIT Rourkela) with the minimum balance of (<) 10,000/-. The amount deposited for opening of bank account has been shown as consumable under component 1.3.3.1 during F.Y 2017-18. The interest earned from saving bank A/c of(<) 358/- ~ ·-""·"·"'··--·- · . __ __ ..___ . ,~ ... . '" ' .. ' .. . during F.Y 2017-18 and(<) 365during F.Y 2018-19 has not been accounted during respective Financial Years. Also Bank charges amounting to(<). 69 incurred during F.Y 2017-18-have not been accounted. 6. NIT RAIPUR 1. All financial transactions are being made through PFMS portal, Basic cont~pl!i':~ ~.?c~~ents which are required for audit is not available in PFMS portal. a. Bank transaction statement of PNB A/c. No.3702002100031750. b. Expenditure head wise report c. Track report of all payment vouchers created in PFMS Portal during the Financial year. d. Report relating to TDS deduction and Payment of Challan of TDS. 2. Amount paid through PFMS Portal is reflected in M32 Report but debit conformation not appeared in EP04 Report. - - -.. - ·- --- · ---- Voucher Date of Digital Name of Beneficiary A/c. Head Amount No. Signature 14/08/2018 Microtek Enterprises 1.3.2.5 Research & (<)7450/- BP-2018- Development I 19-114 <• . ~ . ...", ; , . .. 3. Following expenses are relating fo Advertisement Expenses which are wrongly booked in A/c. Head . 1.3.3.3 Office expenses instead of A/c. Head 1.3.2.10 Services. The details of said voucher are as under - . -~...... .. . Page 132 of 186 Voucher No. Date of Digital Name of Beneficiary Amount . Signature BP-2018-19~54 28/05/2018 A.S. Associates (~}38547 BP-2018-19-53 15/05/2018 A.S. Associates ~)27558 BP-2018-19-82 06/06/2018 A.S. Associates (TDS) (~749 BP-2018-19-81 06/06/2018 A.S. Associates (TDS) (~}535 Account Head Date Party Name As Party Name As Nature of Payment Amount(~) Voucher No. per Invoice per Bank Submitted Account on which Amount Credited Being paid honorarium for cond'i:i'ct'e'ir" program IPR during BP-2018-19-237 1.3.2.11 20.2.2019 SusilKumarMitra Soumahmitra 12-16th Nov 2018 5000 . . Being paid for attendi ·at lonal conference at NIT Rourkela during 6- BP-2018-19-262 1.3.2.5 22.2.2019 Tina Bucha TINA JAIN 8th Dec 2017 3442 4. We observed that in some Invoice there is difference between a e o party appear i.tl tnvQ)ce & N.i ime of Party in Bank Account in w.bich amount isGtedited. Details are as under. Page 133 of 186 7. NIT DURGAPUR r 1. Advance has not been closed or adjusted within reasonable time in few instance. An amount of(~) 29,958/- paid durin F.Y 2017-2018 ~emains unadjusted even on 31/03/2019. 2. No Fixed Assets were purchased during the financial year 2018-2019. 8. ISM DHANBAO 1. There is delay in payment on Income Tax TDS & GST TDS. The department may impose interest on the same. 2. There are cases of non-deduction ofTDS on GST. The norms ofTDS should be followed strictly. 3. Various small assets ha.ve been purchased under the head "1.3.2.5 Research & Development". As per the requirement of accounting policy the same have been shown as " 1.3.1 Procurement of Goods". 9. SUET SANGRUR a) Expenses of (~). 232830/- has been incurred which have been accounted in books of accounts but . / payment of the same is pending as on 31-03-2019. - I b) The Institute has made payment through PFMS for(~). 6000/- on 21-06/2018 which is duly reflected in M- \ 32 Report but same has not been reflected in EP-04 Report. 10. NIT JAMSHEDPUR r a. The physical verification of Assets has not been done during the year. 11. MNIT ALLAHABAD a) Even though, as per Government policies, payments initiated by TEQJP - Ill are to be directly credited into the . account of the concerned benefici:9ries by NPIU through the PFMS model, yet during the audit year it was obser,;ed , that TEQJP- Ill has taken a'te~ Joan amounting to a sum of ~ . 90, 00:.000.00 from .M~JJ,- Dir:.:,<;or_to make k) V) its' payments. Against this temporary loan, repayment of a sum of(~) 60,71,662=00 has been made by TEQJP-IJJ V ~-. 1 during the audit year Jeaving, a balance of(~) 29,28,338=00 payable as on 31' March, 2019. It is recommended :,. that when payments initiated' by T~QIP - Ill are to be dir~ctly credited into the account of the concerned 'J; Page 134 of 186 beneficiaries by NPIU through the PFMS model, raising / pooling of funds through temporary loans should be avoided/ circumvented to the extent possible. b) For the financial year ending on 31st March, 2019 payments initiated by TEQIP - Ill were credited directly into the account of the concerned beneficiaries by NPIU through the PFMS model. Consequently, for the year under consideration, there were NIL receipts by TEQIP - Ill. Hence, the payments incurred amounting to a sum of(~) 81, 74,269=00 as per the PFMS, has been considered as deemed gra~t"r~~~ipts of TEQIP - IU from NPIU and show~ as such in the receipts and payments account for the year ended on 31st March, 2019. c) Further, TEQIP - Ill had intimated NPIU about payments to be made to different vendors aggregating to a sum of (~) 13, 39,583.00 but since the concerned beneficiaries were not paid their respective dues by 31st March, 2019, the said ~m-otrnt has been s.hown .as current liabiliti~s . March, 2019 and ac~~~~!! ~~ok~~ as ~ vide ~che~ule Bin the balance sheet of TEQIP - Ill as at 31st ~.~~enditure in the income"and expenditure account for the year ended / o ..,. • I I 31st March, 2019. It is recommended that liabilities inclJrred during the year should be paid out during the year · - --· - -,• · ,_..,_ .,.___ _ --- '"; - - itself and amounts payable as at year end i.e. 31st March should be avoided to the extent possible. 1--\ .J \ 3 ~" l•. ••· • •• •.• • • ., , ,. • f d) The Financial Management Manual requires equipment's acquired Jo be transferred to Income and Expenditure Account at the year end. During FY 2017-18 equipment's of~) 11, 86,047/- were not t ransferred to Income & "'" ' • ..• ., ... .rn.,~ Expenditure account at the year end. As a result, the balance sheet was showing fixed assets of(~) 11, 86,047/- and the surplus was of(~) 12, 09,145/-. To rectify the error, during the current the balance of fixed assets of ({ ) 11, 86,047/- is adjusted against opening balance of Excess of Income over expenditure account. --- -------- 2. ACCET KARAIKUDI There is no specific confirmation from NPIU for the refund of money in the PFMS system. 3. CIT, Coimbatore a) Refunded amount also not reflected in PFMS Report. 4. GCE BARGUR . a) Failed Transaction of(~) 100,000/- not·reflected in the PFJ\{'IS report. b) Refunded Amount also not is reflected in PFMS Report. c) Proper Books of Account are maintained by the institution . £ .. d) Adequate Internal control Systems exist. e) We have not observed any adversEtComments. <. 5. GCT COIMBATORE Page 142 of 186 ~ I'") ~ Vli , ~ I'") I'") ~Ci I'") ) Failed Transaction of(~) 12,000/- not Reflected in the PFMS report. I'") b) Refunded Amou~t_gjso not isreflected in PFMS repot. ' '' 6. JNTU COLLEGE OF ENGINEERING HYDERABAD JNTU GE ·-' A) GST TDS has to deduct for ant payment made to Goods or as well as services which an amo nt exceeds (f) 2, t '' 50,0~o~pulsorily GST TDS has to deducted 2% on value Excluding GST (CGS~ 1% & SGST 1%) But not yet done GSTTDS 1 1 '' on in ~ day shall not b) Section 40A (3) (a) of the Income Tax Act, any payment in cash above ~) 10000 to i!nY pers_ '' be allowed. But During the course of the audit it has been observed that for the following Transaction cash bills are I ') J -- given more then 10,000/- '' ; DATE PAYMENT MADE TO VOUCHER NO AMOUNT ') ) 16-09-2018 Vijay Sri Foods And Catering 188 1,19,590/- ) ,) 19-07-2018 Vijay Sri Foods And Catering 109 22,670/- ') ) - ) ) ) 7. JNTU INSTITUTE OF SCIENCE & TECH NOLOGY HYDERABAD J ST J ) a) Different between Grants received from NPIU and books of accounts. J J S.NO. Grant received from NPIU As per Books Difference J -. ,, J As per EP-04 J . . - ... . J 1. 3,22,01,273 3,22,50,966 49693 ." ·J u ..J ·~ ..J V ..J ..J Page 143 of 186 ..J ..J ·,' u u ...; lr:ic!1a_fyt. Ltd ..}_9war.ds p1._1f~h,.c!s,e 1>f Micropipette set through Payment are made to Bio square Bio techno!<>gy _ PFMS but no reflected in EP-04 Ref:_ Payment advice No. C07181161466 dt. 27.07.18 ~) 44724/- ~. Payment advice No. C071824939305 dt. 06.08.18 (~) 4969 J a. Advance Adjusted but expenditure not appeared in PFMS. Particular As per FMR-M32 As per Books of Account Difference Total Expenditure 2018-2019 32,036,966 3,21, 76,966 1,40,000 Total 32,036,966 3,21, 76,966 1,40,000 - Less: - Non capturing of(~) 1,40,000/- and advance settlement in PFMS _.,_..,__,_-,..--.. ~··)' " ·- .. .. - I 1,40,000 Net difference - Fo II owing ad vance were ust aa woen I . ure ut not appeanng _ PFMS 1t1 ____ - ·· (M -32) · ·- -- Name of the Date of Qate of Voucher No. Head of Expenditure Amount Beneficiary/Vendor advance taken adjustment 24.01.2019 07.03.19 112 Organized workshop 1,40,000 Convener ICHWAM Conf./Semi-Faculty Total 1,40,000 I \ a. PHYSICAL AND FINANCIAL PROGRESS (PROCUREMENT) Procurement as per Difference Remarks l-----.:...C....:--"-'----,---- - -----1 'i PMSS PFMS ~1 Page 144 of 186 ,., ') ') ') I'") , 2,10,27,868 41,31,296 Procu rement comoleted but details are not updated_ln . I ,, 2,51,59,164 PMSS ,, 0 8. UCE OSMANIA , ' 1. Different between Books of Accounts and PFMS- (M32) '' J Expenditure Asper PFMS As per Books of Difference Accounts } } FY 2018-19 1,60,12,244 2,05,47,841 45,35,597 } - } Expenditure not claimed -45,45,996 -45,56,996 ) 1 ,') Previous financial year 17-18 -14000 -14000 .) expenditure claimed in 18-19 -· ') r ~) Excess expenditure claimed -7399 -7399 ) ) _ .) 1,59,90,845 1,59,90,845 - J J J ~ Expenditure incurred in the financial year 2018-19 but it was claimed in financial y ~ 201-2020 fr5m J NPIU (~) 45,56,858 ~ J Previous financial ye? r 17-18 expenditure claimed in 18-19. (~) 14000 J u Excess expenditure claimed from NPIU (~). 399 and (~ 7000 in the month of September.2018 and 0 October 2018. b) Disallowance of expenditure as per the World Bank rules Page 145 of 186 t - , .ii / -.. ~ - // ·,' ( ~ s. Voucher Ineligible Particular No. Amount 1 166 and 168 1,200 Professional tax deducted on salaries but not pa id to Govt. . - -· This is eligible for claim on in the year of payment 2 45,56,858 Expenditure incurred in the financial year 2018-19 but it was claimed in financial year i519-20 -. ------·-··~---~- . ·--·- • Few of expenditure not claimed from November 18 To March 19. This is eligible for claim on in the year of payment. c) Monthly Reconciliation should be made between PFMS and books of accounts. The Debit and Credit as per EP04 report should be reviewed every month. 9. PECUT CHANDIGARH Detailed Assessment ': I Obse,vaUon No. Page 146 of 186 Title (Category) ~ v in settlement of advances I Observation • Clause 6.3 (iii) of Financial Management Manual provides that a.Q.)@nce payments will be charged off to the relevant project actjvity account head on adjustment. • . Financial Management System Manual is silent on periodicity for settlement of advances. -·- • As informed, PEC has a practice of settlement of advance within 30 days from the day of issuance of advance. • Travelling and temporary advances were disbursed to various staff for incurring the project activities. We noted delay in settlement of advances ranging from 153 days to 331 days. Details of delays in advance settlement are mentioned in Annex-I. -- ' Implication I • Delay in settlement of advances have an implication of delayed reporting of Potential Risk expenditure or advances reported as expenditure in the PFMS. ! Guidance Medium I Cause Priority I I I Recommendation • PEC should ensure the timely settlement of agv_ !!n e so that expenses are ) reported on actual basis and timely manner. ) • Further, PEC should develop a documented policy on settlement Qf_adyaQ_~es to have an effective control over travel advances. ) l .. . -·· ...... ___ ..... , - ....... . . -· .. ...... ,. .. ) ,, Management ll ) Comment 1: ! 1 Delay in settlement of advances Annexure I Name Amount (INR) Date of Due date for Date of Delay in Days Advance settlement settlement V Page 147 of 186 AshishRawatlmprest 5,000 25-May-18 24-Jun-18 28-Mar-19 277 Advance Ash ish Rawat Im pr est 5,000 6-Dec-17 5-Jan-18 12-Jul-18 188 Advance AshishRawat- 30,000 26-Sep-18 26-0ct-18 28-Mar-19 153 Temporary Advance AtulArora- 140,000 4-Sep-18 4-0ct-18 30-Mar-19 177 Temporary Advance Karanvir Singh Bains 198,800 20-Mar-18 19-Apr-18 16-Mar-19 331 Travelling Advance M.S. Rajeshwaran- 111,000 4-Sep-18 4-0ct-18 28-Mar-19 175 Temporary Advance Rakesh Kumar 40,000 7-Aug-18 6-Sep-18 12-Mar-19 187 Temporary Advance Rakesh Kumar 9,000 4-Sep-18 4-0ct-18 30-Mar-19 177 Temporary Advance RaminderKaur- 5,000 4-Sep-18 4-0ct-18 11-Mar-19 158 Temporary Advance Tilak Thakur- 120,000 5-Jul-18 4-Aug-18 16-Mar-19 224 Temporary Advance Observation No. 2 Title (Category) J Deficieh(;fi(l settlement of advance ·' Page 148 of 186 Cllservation • PEC has sanctioned budget in PFMS from which expenditures are incurred. Funds are not directly transferred to the PEC bank account rather it is directly paid from PFMS linked Punjab National Bank Account. PEC has also maintained project specific bank ' account. • We noted certain instances when adv.an.c!! w.e.re____settled,_balanc amouAt returned from the staff was deposited in the proje~! .~.i!fl_ls..~cc.ount rather_than .deposi![!].g • the sa~_Inlbg PF -~ Li!lk!:19Jigoka.c.count. • The details of advances settled through project bank account is mentioned in Annex II. = ~-- ··- .. .... - ·- - - . - .. .. .. ··-· ......... .. - Implication Potential Risk .. I • PFMS. - There may be difficulty in tracking of advances and report)fl!Uh.f:?_sarn~ thsough . . - I Cause Guidance Priority Medium .. I - .. .. .. •· - .. ... . .. I...... ··-- .. .. ...... - .... I .. .. -. . 1 Recommendation • PEC should ensure that advances are settled through PFMS for better control over accounting and reporting of expenditure . Management . I ) Comment ' - ~ - . .. ...- ... ··- - - Annexure II Deficiency in settlement of advance Name Amount given Amount Reimbursed Date of advance Date of Settlement through PFMS through Project Bank account PNB Anil Kumar Staff Travelling Advance 63,000 40,020 - 1-Mar-18 3-Apr-18 Kuldeep Singh Term 2,00,000 1,13,424 28-Feb-18 6-Jul-18 Advance NareshChawla- 4,401 4,401 1-Mar-18 1-May-18 Temporary Advance Page 149 of 186 Naveen Kumar 1,40,969 1,40,969 9-Feb-18 16-Apr-18 Temporary Advance Naveen Kumar 50,000 4,871 26-Feb-18 14-May-18 Travelling Advance Prof. Tushar 2,50,000 66,765 15-Mar-18 8-Jun-18 Temporary Advance ' Observation No. 3 Title (Category) Payment made without deduction of TDS Observation • Section 194C of the Income Tax Act, 1961 provides that any person responsible · for paying any sum to any resident for carrying out any work (including supply of1abour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, deduct an amount equal to 1% (for individual and HUF) and 2% (for l others). ~ -··--·-- . .~ " We noted that in below payment for the Industrial .tour at Jaipur, tax was not deducted at source. The payment was advanced to the staff and staff made the payment .. to fie organization. Details are given below: Industrial Tour at 4,800 Jaipur 1 - - - - - - - - - - ' - - - -- Implication I • Non-compliance with the provision of TDS may attract interest and penalty. Potential Risk I ----------'----------~ -Cause _ _ Compliance . ·. . Pr -io -r- v_ _ _ _ _ _ it_ _ _.l . __ _w Lo _ _ _ _ _ _ __ _, Recommendation "' . _ The PE:C should comply with the statutory obligations and ensure that TDS are tim~ly (:leposited to the government. '1/ Page 150 of 186 ' Management ' Comment Observation No. 4 Title (Category) Low utilization of quarterly sanctioned budget Observation • PEC has a budget for the project activities which is sanctioned by National Programme Implementation Unit {NPIU). • We noted low utilization of sanctioned quarterly budget ranging from 19 to 49% As outlined below: - ) Apr to Jun 2018 6,255,000 3,050,512 ) Jul to Sep 2018 10,198,000 2,839,322 ) Oct to Dec 2018 3,472,630 ) Jan to Mar 2019 14,892,000 2,870,539_ J ~ <» In the quarter three, PEC did not get any fu nd from NPI U, however it was advised to get loan from University core fund for the groject activities <,1nd accordingly PEC took loan orf't,J' 80 acs and , ncurrea the expenditure for project activities. /~ e We also noted that allotted funds in PFMS for the PEC under the EfQject wer.,.e not available in certain occasions due to non-availability of f~nds in tt,e linked bank - accoun t (PNB A/flfo. 3i0'21l0210l)031759) ofPFMS. This also resulted in low utilization of sanctioned budget. Implication/ Potential 19 Significant underspends indicate that fundamental project activities may not Risk have been completed in the expected timeframe, thereby reducing the impact the project will achieved. Page 151 of 186 J . ...... . ··- .. . .. .... .. Priority Medium Cause I Guidance I, I -1 , .... ... .. ~ .... Recommendation • The PEC should ensure that sanctioned budget is utilized in accordance with the timeline to achieve the project objective. 1, • NPIU should ensure that allotted fund is available in the PFMS linked bank account for use for the project. Management II Comment 'I Observation No. 5 I Title {Category) Lack of supporting for university revenue transferre!::lt9 project Observation • Clause n of section I of signed Memorandum of Undertaking between Union Territory of Chandigarh and PEC University of Technology under component 1.3 for implementation of institutional Development Plan under Technical Education Quality Improvement Programme Phase Ill states that "Each year put aside 8% of total revenue (as defined by the PIP) earned by the institute into a sustainability Fund (Four funds), to be used to sustain project activities after the project closes, subject to the provisions of the PIP" Ci) As per Project agreement between, MHRD of Go1 · and Chandigarh Administration, Institutes participating should put aside 8% of all revenue into sustainability fund to be used to sustain project activities after t e project closing. ® PEC deposited INR 402-Ji4--lacs ... in the project bank account during F.Y. 2018-19 pertaining to F.Y. 2017-18 and 2018-19. However, calculation sheet for the same was not shared with the audit team. Implication Potential Risk ------ Cause J - o ~ - --->-·--.o--=--··-·--···~- Guidance In the ab~ence of evid. ence to support the amounts transferred to the project, it Priority __________________ cannot be demonstrated that they form correct calculation . I Medium ....., ----------' I I ----------~ Recommendation .. The PEC should share the supporting documents for amount transferred to~ he pro~ect bank account to ensu'te that 8% re'veriue· of the university is transferred to the proJect. ·-. ,----·------'------.,....;..-,,.- -- - - - - - - - - - - - - - - - -..- - - - \{/ . if Page 152 of 186 ,, Management Comment Observation No. 6 Title (Category) Delay in submission of half yearly Financial Management Indicators Observation • Clause 7.2 (b) of Financial Management Manual provides that the institutions will update their Financial Management Indicators on six monthly basis and send it to . SPI_U within 15 days of completion of every six months. " We noted dela s rang!!} from._96-7.2 ayi in submission of half yearly Financial Management Indicators as outlined below: - __ A_ _ p_ ri-lt o_s_e_ pt_ m e_ _b_e_ r_20 _1_ s_ _ _ ~ ~ 27-De~18 1=-_J I~ , 1 October 2018 to March 2019 ~ 31-May-19 Implication I • Delays in submission of Financial Management Indicators could lead to delays in Potential Risk the release of funds by the NPIU, which could inhibit project implementation.--·---·· ' •.--.....,, . _ ~---• _.,.,.~·,,,,r 7 • • • • .... ~ " ' • • - ,..,. . , ,, , - y Cause Compliance I Priority Medium ----------~ Recommendation 0 The PEC should ensure that reporting deadlines stipulated in the Financial Management Manual are appropriately followed and reports are sub m1ttea wit~in the specified timeframe. · j Management Comment ) j J V Page 153 of 186 } Observation No. 7 Title (Category) I GRN not immediately authorized --------~~,- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - ~ Observation • PEC uses PMSS for procurement of goods and services which generates Goods I Received Note once the goods are delivered. · • We noted the time lag of 27-40 days in sl nin of s~tem generated Goods Received Note (GRN) by the authorized person. The details ar;~utlined below: · ~""-·...-.1·•T••...-••o-, ••-••• ~~:-·~~-~~~ :·, ~.. •! -~ .: ---: •, Date of -GRN ' .;~;;e/atl,~;f ·-/: I~ .....,~. · ... t ',,· j •••. :~:l .W~t',~,l~l .. ,,~~ P~ _A _ ch -r- _ o_ -a-se f _ 1_.S _o _T _n~ 113,994 1' 3-Aug 18 1 30-Aug-18 Purchase of Modular workstation 119,475 . 27-Aug-18 1 26-Sep-18 I~ Purchase of office 93,002 17-Aug-18 26-Sep-18 40 chair, table and revolving chair Implication I aymenC was Dev. to the vendor reimbursed to students in their bank account but further payment to vendor by I students were mgid.e .in ca~h. J 3. 20 30.06.2018 12,000/- Research & Paid in cash Payment was Dev. to the vendor reimbursed to students in their bank \_ / ' Page 155 of 186 ~v , ·' account but further payment to vendor by students were ~ii1cash 4. 13 30.06.2018 20,800/- Research & Paid in cash Payment - was Dev. to the vendor reimbursed to students in their bank account but further ,_payment so vendor by students were m'ade in cash 5. 56 01.09.2018 21,040/- Research & Paid in cash Payment was Dev. to the vendor reimbursed to students in their bank account but further payment ,, , . , _ to ven - - or by students were made in cash 6. 52 29.08.2018 2,472/- Meetings Paid for guest Regarding house voucher no 52 ; booking for of (t) 2472/- meeting the sanction payment was letter for made in July expenditure in 201-!L but PFMS dated anction ' s 16.08.18 is mis- taken in i n!ereptea-------~ s . sanction . - ~.. . . leJter but J ./ 11 UIET PANJAB UNIVERSITY ·CHANDIGARH Key observation points of Statutory Audit for t he F.V. 2018-19 S.No. Voucher No. Date Head Comments Institute Reply '11J' Page 156 of 186 ({)) 68 08/05/2018 4,000 IOC Honorarium Honorarium of paid to experts ({)4000/- paid Mr. R for attending S Khandpur Ex- BOG meeting. Director General However Pushpa, Gujral Honorarium is Science city for 2nd i'rnralloWed· for meeting of Board of ..,,. BOG meeting Governors (BoG) of UIET held on 2nd May, 2018. Honorarium has been paid under Incremental Operating Cost with the approval of Competent authority there is a provision contained in permissible and non permissible expenditures/indicat ors of TEQIP-111 (Copy attached as ) Ann-I) as well as ) there is a provision for making payment on account of honorarium for attending the meeting of various ) statutory meetings like BoG ref letter ) No. F. No.16- ) 26/2017 /TS. VI I dated 27.09.2017 {Copy attached as Ann-II). Hence the release of payment is in order the audit Para may please be dropped. 2. 69 08/05/2018 4,000 IOC Honorarium Honorarium of ({). paid to experts 4000/- paid Mr. R P for attending Sehgal Ex-Director BOG meeting. In-Charge However, SwarajAutomotives Honorarium is Ltd. for 2nd meeting not allowed for of Board of J BOG meeting Governors (BoG) of UIET held on 2nd May, 2018. Page 157 of 186 Honorarium has been paid . under Incremental Operating Cost with the approval of Competent authority there is a provision contained in permissible and non permissible expenditures/indicat ors of TEQIP-111 (Copy attached as Ann-I) as well as there is a provision for making payment on account of honorarium for attending the meeting of various statutory like BoG ref letter No. F. No.16- 26/2017 /TS. VI I dated 27.09.2017 (Copy attached as Ann-II). Hence the release of payment is in order the audit Para may please be dropped. 3 90 15/05/2018 4,000 IOC Honorarium Honorarium of (t) paid to experts 4000/- paid Dr. for attending Manpreet Singh BOG meeting. Gujral, Principal However CCET, Chandigarh Honorarium is for 2"d meeting of not allowed for Board of Governors BOG meeting (BoG) of UIET held nd on 2 May, 2018. Honorarium has been paid under Incremental .Qf:)eratrflg Cost with the approval of Competent authority there is a provision contained in permissible and non permissible .. expenditures/indicat - ~ e:,/>.R~ ors of TEQtP-111 ~ ' o:- Page 158 of 186 - {Copy attached as : Ann-I) as well as there is a provision for making payment on account of honorarium for attending the meeting of various statutory like BoG ref letter No. F. No.16- 26/2017 /TS. VII dated 27;09.2017 (Copy attached as Ann-II). Hence the release of payment is in order the audit Para may please be dropped. 4. 104 18/05/2018 3,078 Industry (t). 3.,QlB__J!;SS Institute ~ of (t) 62/- Payment of (t) Interaction paid ·s for 3,016/- was refreshment bill released to Jilander But bill is not Kumar out of total available in the bill of (t) 3078/- ) record .. after deduction of TDS of (t) 62/-. TDS is being paid through ~'cheque tfirough Director ) " . account and reoavment ...... .... made " fr9.rn., -- PFMS. Thereafter, a copy of the bill No. 1257 dated 22.2.2018 for Rs. 3,078/- is attached with the voucher and the same is being sent for your information please Ann-Ill. Hence the Para may please be dropped. 5. - - 20,465 Other During the income period Institute 1. A sum of has received (f) 4465/- has been "lerraer -money earned as interest of (t) 16,000+ on loan amount of (t) 4,465/- (f)l0.00 Lakhs. The Interest on same was due as on tender money. 31.03.2019 V -·· Page 159 of 186 ~ J be amount however, the i ~..deposited payment has been ilJ...l',IBIU..account released in next year till March i.e. Oh 14.05.2019. 31,2019 A sum of ({) 16,000/- on account ·of ··sale - of t; nder .. orms·-is·-·-~~-- d for deposit in PFMS. The matter regarding non adjustment/ receipt .... PFMS ,-··has been in ), - ta ~n up .from !_ime to time with NPIU a copy of letter No. 178/TEQIP-111/UIET dated 9.05.2019 sent to NPIU is attached as Ann-IV. Th$.J;lmount ..VllUI be d~p_ osited once the issue is resolved. Hence the Para may please be dropped. 12. MAKAUT WEST BENGAL a)On 06.12.2018 an amount of~- 20, 00,QOO/- (Rupees Twenty Lac only) received from Maulana Abdul Kalam Azad University of Technology (Formerly known as WBUT) as ,aJocln and such amount has been repaid by TEQIP - Phase-Ill on 28.03.2019 of~- 20,03,106/- including Interest as such loan of~ 3,106/-.The Bank balance ofTEQIP - Phase -Ill as on 31.03.2019 in Saving Account No: 6551868352with Indian Bank, Salt Lake Branch is Nil. Travel Cost of (~) 320 relating to the period 01.07 .2018 to 30.09.2018 was approved in PFMS the period 01.10.2018 to 31.12.2018. 13. AUCE VISAKHAPATNAM 1. Different between Grant received from NPIU ·and books of accounts Particular Grant received from NPIU as per EP 04 As Per Books Difference 77,09,287 77,24,287 15,000 ,- - - . . _ , . , . , r J 18-19 Total # Advance amount (~) J,5000/- c!aim~d fr_e>m" ~,Pll,J buL nOt ~howing in ,EP04.Ref. (Date 20.04.18 PFM 1802225793- (~) 7000) (041802225790 - (~) 8000 and PFM C04. . .. d -; '. Page 160 of 186 j ., j j j 2. Advance amount (t) 10865/- claimed from NPIU in the FY 2017-18 by Prof. K. Raghu Babu. The same amount ') was return back by him on 04.04.2018. It was deposited in Andhra bank. It was not adjusted against advance in ') ~FMS,..;. ,,.) 3. TDS i not deducted .-.. as per statutory ........ guidelines . . ') 4.GST TDS has to deduct to'r any payment made to Goods or As Well as Services Which an amount exceeds ' (t)2,50,000/- Compulsorily GST TDS has to deduct 2% on value Excluding GST ( CGST 1% & SGST1%)But not yet ' done GST TDS. ' '' 5. Section 40A (3) (a) of.the income Tax Act, any payment in cash abc;ive ~) 10000 to any person in a day shall not be allowed. But during the course of the audit it has been observed that for t ......_==i!..3>..:..:. than 10,000/-. are given more _ ' ' ' ') ) DATE Paiment Made To Voucher Number Amount ) 01-10-2018 Kanaka Mahalaxmi Supplies and 395 23,010/- ) Catering ) ) 02-10-2018 Kanaka Mahalaxmi Supplies and 398 23,010/- J ) Catering ) ) 16-11-2018 Sri Siva Priya Mess 55 25,500/- ) ) 16-11-2018 Sri Siva Priya Mess 57 27,900/- J J 01-12-2018 Kanaka Mahalaxmi Supplies and 525 17,700/- J Catering J J J 12-12-2018 Kanaka Mahalaxmi Supplies and 57 1,65,500/- - J Catering ..J J \ J J V J J Page 161 of 186 J J J J 6. Difference between FMRs & Books Particular As per FMR/M32 As per Books of Accounts Difference Total 18-19 77,34,287 77,34,453 166 Books charges not claimed -166 -166 from PMSS Net Balance 77,34,287 77,34,287 Nil 14.JNTU COLLEGE OF ENGINEERING ANANTHAPUR J N1 lJ ( [_ 1. GST TDS has to deduct for any payment made to Goods or As well as services Which an amount exceeds of(~) 2, ____,__ _____ 50,000/- Compulsorily GST TDS hat to deduct 2% on value Excluding GST(CGST 1% & SGST 1%) Bu not et :"'done "' -· ,,.,.., GSTTDS. 2. TDS - not deducted is.,.,rs->'---,~,...,..,_,...,,,c.•" for remuneration ,_.,. . ,:J - -,'-""".,...,....-'i",v'"......... ,.>!•OJ .~.,.,· pa id more than -. - , ---,•· 30000 ~· "-'•<,· '~-,-., sin_g!e eayment. in":-:-·- ••)p ..,......I .,.._.,, . Voucher No. & Date Payment Made To Amount TDS 80/201819 & 08.03.2019 Sri D. DurgaPradas and M Suresh 39,600 3,960 Babu ' 39,690 3,960 Section 40A (3) (a) of the income Tax Act, any payment in cash a ~ ..(!) 10000 to any person in a day shall not be ' given ____ allowed. But during the course of the audit it has been observed that for the ...,__ more than 10,000/-. _,_. following ._ ...· ., _,_ Transactiq_-. -... ~,,: . - ~"" .... . -"'~ ~ cash bills are n. ' " /. , DATE Payment Made To Voucher Number Amount 24-10-2018 Sri Ganesh Caterers 223 94,800/- --" Page 162 of 186 ) ') 'J 'J 'J 3. Difference between FMRs & Books r, ,, Particular As per FMR As per Books Difference Management reply ,, ') of Accounts ,, Total 18-19 74,82,481 73,24,894 1,57,587 lt. is~ I' t submit that an amount of~) 1, 57,587/-was - ) '' ( done in Account onth of November 2018 with incorrect .. number. So the transaction Id: ' ,-) Cl11802294676 and the same were submitted to NPl~:As per the instruction from NPIU, we have re- '' ) initiated the payment again in the month of February 2019. The same amou~ refle~t ing twice in PFMS due to re-initiation of payment. , ') J ) ) 15. JNTU COLLEGE OF ENGIN EERING KAKINADA ) ') 1. Difference between FMRs & Books 'J ) Particular As per FMR As per Books of Accounts Difference J ,) ' 2. Total 2,29,21,454 2,27,97,515 1,23,939 J J ,) Previous year 2017-18 expenditure claimed in current financial yea r 2~18-19. (~) 1,23,939. J 3. TDS is not deducted as per,statutory guidelines. J J 4. GST TDS has to deduct for any payment made to Goods or As well as Services Which an amount exceeds of(~) 2, J 50,000/- Compulsorily GST TDS has to deduct 2% on value Excluding GST(CGST 1% & SGST 1%) But not yet done u GSTTDS. u u 16. SVUCE TIRUPATHI J J Advance Adj usted but expendit ure not a peared in PFMS Fo ow ng a vance were a uste against expenditure but not appearing in PFMS(M-3 2) J J J V // Page 163 of 186 J J ·J ...) Name of the Date of Advance Amount Date of Adjustment Beneficiary/Vendor Taken Voucher No. Voucher Amount Date Ch. Chengiah 21-06-2018 1,80,000.00 BP-2018-19-23 09.08.2018 1,80,000.00 . 17. DTU DELHI 1. Provisions of Employees State Insurance Act,1948 and Provident Fund Act,1925 have not been followed by DTU ' ' (TEQIP-111) in case of 4 employees engaged in the project whose total annual emoluments were(~). 9.72 Lakhs. 2. There is difference between the amount released shown in EP-04 report generated for Quarter-1 from PFMS portal on 31.05.2019 ((~) 26';'"iii) 99fancrgenifrated earlier on 16.08.2018 ((~) 27, 54~.593) t~ the extent of(~) 1, 13,194"."'This-m(ght be due to some technical errors on PFMS portal. 3. There is diffe~e~ce between the amount shown in M-32 report generated for Quarter-1 from PFMS gortal on - 10.06.2019 ((~) 11, 85,739) and generated earli~r on 13.07.2018 ((~) 9, 95,819) to the extent of(~) 1, 89,920. This might be due to some technical errors on PFMS portal 4. DTU has not created Sustainability fund as mandated in the project Implementation Plan (PIP) by transferring 8% of their annual revenue. 5. Cash payment made in excess of (~) 10,000 to be disallowed under section 40A (3) of Income Tax Act, 1961 amo:nting-to (f) 80,8 2i ·· ·· - 6. TDS not deducted at the time of payment made to Non:resic;lent amounting to (t) 32,840 which resulted into -- ---·- . . . - ,, .,, ,, ; ' disallowance of expenditure u/s 40 of Income Tax Act, 1961. 7. Advance given is not settled within reasonable time. Details providing date of advance given which have not bee·~ settled till the date of balance sheet: --·- ' S. NO. Date of Advance Amount((~)) 1 14.05.2018 99,120 '• ~ - - ,, 2 22.05.2018 11,074 Page 164 of186 3 22.05.2018 3,000 4 14.09.2018 1,93,500 5 28.11.2018 30,609 6 28.11.2018 130 7 14.12.2018 10,000 8 17.01.2019 56,640 9 17.01.2019 56;640 10 08.02.2019 50,000 . 11 08.02.2019 76,640 12 14.02.2019 76,640 18. BVMV VNAGAR,GUJARAT 1. We draw attention to point~,.: ___l _ in significant accounting policy and notes to account to the financial statement. These Financial statements being statement being special purpose financial statement have been prepared on cash basis. ) not deposited 8% of the internally Generated Revenue to the Sustainability Fund (Four 2. Project lnstitl.l!e hi:l.t_ Fund) during the FY 2018-19. ) ) 3. Project Institute has not complied with GST TDS u/s 51 of the CGST Act 2017. Total Amount of GST TDS not ,-- ... ._._ deducted amounts to (t) 42,360.83/· on the contract value of (t) 21, 18,041.38/- 191. IDCRUS11' MURTHAi.. 1. DCRUST has not created Sustainability fund as mandated in the Project Implementation Plan (PIP) by transferring 8% of their annual revenue. 2. As per clause 6.4 of Section 6 of Financial Management Manual, Computerized book of account (Tally/ SAP) not maintained by the Institute. 3. uct TQS..where As per the requirement of Section 194C of Income Tax Act, 1961. Institute is liable to q~9_ the amount of any sum credited to or paid or likely to be credited or paid to contractor exceeds (t). 30,000 or where aggregate amount of such bills exceeds (t). 1,00,000 during the financial year. Page 165 of 186 However, while checking of Vouchers it was found TDS has not been deducted and deposited to government in the ,....-,...;1' ,.· . ... ..,. '· - ,> following cases: ·· V.No. V. Date Name of Party Paid Amount TDS to be deducted 28.05.2018 Surinder Kumar 39,175 392 16 03.08.2018 Surinder Kumar S2,850 529 so 10.09.2018 Surinder Kumar 63,750 638 69 18.03.2018 Surinder Kumar 86,200 862 145 4. As per requirement of Section 194J of Income Tax Act, 1961, Institute is liable to deduct TDS where the amount is paid or credited to the payee for the fees for professional services or for the procuring the computer software exceeds (f) 30,000 during the financial year. However, while checking of vouchers it was found TDS has not been deducted and deposited to the government in following cases: V. Date Name of Party Paid Amount TDSAmount Description G.R. Garg& Co. 40,000 4,000 Statutory audit fees for 06.11.2018 the F.Y. 2017-18 Consol Metaphysics Pvt. 4,40,000 44,000 Consol Metaphysics 08.03.2019 Ltd. Software 5. Notification No. 33/2017- CT dated 15-9-2017, Institute is liable to deduct GST TDS under section 51 of CGST Act, 2017 where the taxable supply exceeds R. 2,50 ·00 nder a contract during the year and TDS should be deposited by the 10th of next month in which TDS is deducted or required to be deducted. However, while checking of vouchers it was found GST TDS has not been deducted and deposited to the government in following cases: Name of the Party Amount TDSAmount 4,40,000 8,800 ConsolMetaphysics Pvt. Ltd. 7,20,000 14,400 lntorg technologies Pvt. Ltd. ·. Page 166 of 186 6. There is differen,~~_Qfis).1,.00Jo9_0 in the..exp_enditure a.s per boo_k of accolln_t and p~[Y1S ( M-32) because during the year advance of(~) 1,00,000 given to faculty for the program and same amount has been adjusted as per books of accounts but not In -32. · ·. · -- · · · Particulars Amount(~) 97,38,206.00 Expenditure as per Books of accounts 96,38,206.00 Expenditure as per M-32 1,00,000.00 Difference 20. GJUSTHISAR,HARYANA 1. TDS has ne>~ been deducte,d on payments made to various professionals and service providers i.e. M/s Ram ) Niwas Associates, Rajesh Mehra&Associates, ESCI Hyderabad, and Aspiring Minds assessments Pvt. Ltd ... ) It is suggested to deduct the TDS before making such kind of payments as per applicable rates provided by Income ) Tax Act. ,----- · ) 21. UIET KURUKSHETRA ) ) 1. It has not deducted TDS (Tax Deducted at Source) as per Income Tax Act, 1961 on the amount of (t) 1, 35,000. ) 'c:•' . .. 2. It has not deducted TDS as per GST Act while making the payment on the amount of (t). 4, 35,449. 0 ·~ ----- - p.PM.£ 3. Thece is reconciled difference etween the expenditure reflected in M-32 Report generated from PFfv1S - .:··· C portal and expen 1ture coked as per books of accounts to the extent of (t) 7,16,115 due to payment made qy UIET through bank maintained at their level, but these payments not approved on PFMS portal . .....- ----.,.,,...--,, , --- - - - . \ 4. An expenditure of (t) 49,855 is booked under head 1.3.2.10 (Services) instead of head )..3.3.3 (Office Expenses) in M-32 Report generate 'from PFMS portal. This has resulted into overstatement of 1.3.2.10 component andunderstatement of 1.3.3.3 component in M-32 Report. 5. There is difference in Grant received as per PFMS report- and books -,. of accounts ~·,;·.. _ _.,._-·;ii due to amount deposited in Central Pool Accounrarthe time·ot Seltlement of Advances and it has been reduced from 'Grant Received' in the books ·of accounts. Details of amount taken as grant received during the year are mentioned below:- IS.No. Particulars I Amount(t) ) j{ _ ---- Page 167 of :ll.86 ) J Amount received as per PFMS Report 91,22,444 A Amount deposited in central pool account 12,947 - B Total grant received as per Books of ac:counts(A-B) 91,09,497 Report on Other Legal and regulatory Requirement 1. UIET, Kurukshetra has created sustainability fund (in form of FD) of(~). 82,89, 783@% of their revenue of(~) 10, 36, 22,287 in Axis Bank. 22. YMCA FARIDABAD 1. There is difference in Gran.t T a~- P~C P.FMS-Jepqrt and bo9 ks .of il£Count§.-.,. During the year, .Qlle .ec:eiveq _ program was cane --·.. ·- . .! - . accounts. 3. Salary ~,?<,.een~itur~ of m25,40P paid through bank account maintained by YMCA for TEQIP-111 Project has not been recouped during the year from PFMS. To Jhis extent, there's a difference in expense as per books of • ·:-•.._·,-~1.· ,.-_ ,.•,,. ,-_. -t"L . • ·• . \ 4 accounts and as per PFMS. · - · 4. YMCAUST has created sustainability fund (in form of FD) of(~) 109, 86,465 .00 @ 8% of their revenue of (~) 13, 73, 30,818 (Unaudited) in HDFC Bank. 23. SJCE MYSORE In our View, Key observation p9_irlts ;3re ~ppilc,:!ble only to listed companies. Since your organization is a NGO Key . observation points are no maridatorily applicable to your organization. V Page 168 of 186 24. BVBCET HUBBALI - 1. An amount of (~) 15,400/- was inadvertently paid twice. The .amount was original paid in 2017-18 and was wrongly uploaded as advance in PF~S, though treated as expenses in the book of accounts. During the year 2018- 19 the same amount has been paid once again erroneously. Since this error (payment made during the year 2018- ...__ 19) was noticed after the balance sheet date, the duplicate payment has been treated as "Advance" in the balance 5 sheet as at 31 tMarch 2019 and the same has been recovered on this date. 25. HKEPDACOE GULBARGA 1. Except as stated in Utilization Certificate(~) 2, 11,492/- has been paid as advance for expenditure purpose~ 26. VJIT MUMBAI Other Matter- We have observed some discrepancy during course of our audit which are mentioned below. ,• Section Observation Amount Involved Annexure ) S.No I Fixed Assets We have observed that FAR has not contained details_s C Date of >1 I ·, ~ Register - Physical Verification, Signature and Remark. - NA NA We have observed that information on a,,vard of Contrc1ct has not I been posted on the wel:is, e of Institute for two week for all I procurement as per Procurements manual. Index page has not been I2 Procurement pasted on the backside of the cover of Procurement file. NA NA We have observed that the re ort reBPn~.iog.annual S,.tock verification r by the institute Internal Committee was not available at the time . of 1 Audit. The label of TEQIP-111 was not pasted on the equipment for l3 Fixed Assets unique identificatioofor ffie equipment procured in FY 2018-19. NA NA -· ._, We have observed that TDS under GST has not been paid within due date for cases mentionea in 1 mnexure anci"7ertificate (GSTR-7A) for'° - I ms'on -GST --- has not been issued Deductee to.,,........,.- .1') for period covered under Annexure- r4 TDS on GST Audit. 30192 I J J J J J Page 169 of 186 J J J J 27. ICT MUMBAI 1. As pet the internal auditor reports Institute management is in the process of complying_ with J he recommendations provided by the internal auditor. 2. TEQIP~III Procurements procedure was followed by the Institute, but there was a delay in !h~ delive~ .,.. - from vendor. For that, Institute has maintained the proper follow ups for on time delivery of goods. 28. GCE AURANGABAD 1. Financial records are kept as per Guidelines given in the Financial Manual. 2. As in the current year in Quarter 3rd and 4th there was delay In allocation of funds, the submission of bills &there settlement was delayed but the overall system should be quicker in general. 3. Expenditure incurred and paid through Punjab N.ational Bank with hel of PFMS system is t .tgg as g! New ou:~, ,..,f ';~ .;f' - ere (IA.cc.O 1 28.02.2019 3665216 ShriNitin K. Barai 1500 FDP 25 hfeb to 01 March 28.02.2019 3665217 Sachin P. Shinde 1000 FDP 251hfeb to 01 March 1 28.02.2019 3665218 Ganesh N Shelke 1000 FDP 25 hfeb to 01 March 28.02.2019 3665219 Sudama R. kakade 1000 FDP 251hfeb to 01 March 28.02.2019 3665220 Shivani S Desai 1000 FDP 251hfeb to 01 March 1 28.02.2019 3665221 Komal R Gadekar 1000 FDP 25 hfeb to 01 March 28.02.2019 366522 Vishal Pandey 1000 FDP 25thfeb to 01 March 28.02.2019 366523 Vidya R. Mandava 1500 FDP 25thfeb to 01 March 28.02.2019 366524 ShubhangiP.Dudhe 1500 FDP 25thfeb to 01 March 28.02.2019 36El525 Shilpa A Waghulada 1500 FDP 25thfeb to 01 March . .. ..,. " ·--. ·' ', .. 1 28.02.2019 366526 Prad'r1ya 'b jadhav 1000 FDP 25 hfeb to 01 ' .- Page 172 of 186 ,.-, ,.-, "") "") "") March "") "") 28.02.2019 366527 A.B. Gaikwad 1500 FDP 25 1hfeb to 01 "") March "") , "") 28.02.2019 366528 Pranali D Maitan 1500 FDP 251hfeb to 01 , "") March , 28.02.2019 366529 Ashwinilokhande 1500 FDP 251hfeb to 01 ' ' ) March 28.02.2019 366530 Pallavi R. Saraf 1500 FDP 251hfeb to 01 J March ) ) 28.02.2019 366531 Pradnya A. Vikhar 1500 FDP 251hfeb to 01 ) March ) ) ~) 28.02.2019 366532 Milind v. Gade 1500 FDP 25 1hfeb to 01 ) March ) ) 28.02.2019 366533 Rani A. Phadlare 1500 FDP 25 1hfeb to 01 ) March J J 2s 1hfeb 28.02.2019 366534 Sangita j. Monawali 1500 FDP to 01 J March J J 28.02.2019 366535 AmitGaikwad 1500 FDP 25 1hfeb to 01 J J March J J 28.02.2019 366536 Sunitalandge 1500 FDP 251hfeb to 01 J March J J J J ,./ V Page 173 of 186 ,J J J J 28.02.2019 366537 PankajGade 1500 FDP 25 1hfeb to 01 March Receipts as per 30500 FDP on Data Analytics Bank Statement 11000 FDP on 3D Printing 6500 FDP on CYME & PSIM Total 3146960 2. INTERNALAUDIT:- Independent Internal Auditor appointed for the said period. We have taken into consideration the report & Finding reported by them. Sr. Package Name Package No. SuQQlier Name Warrant'{ as E!er Warrant'{ as E!er Invitation Letter Purchase Order No. 1 GCOEJ_IN03 TEQIP3/MH/COEJ/31 Batra Trading 60 Month 12 Month Company 3. PROCUREMENT OF EQUIPEMT/GOODS:- We have verified the documents for procurement of equipment/Goods on s~mple b?sis._ It was observed ; th y at in the following instance, the ~ e of warranty mentioned in purchase order was lesser than required . ·~ ····-··- -·-- .... .-.· •,,·-··-··· ., ..... "'· .. .. . "'j" ..~., . ·. II) I 4. INSURANCE: - Adequa,_!:e lnsura~nce for various assets should be taken department to mitigate the risk contingencies and uncertainty. 5. DIIFERENCE IN PFMS ANO TALLY: - Payment of Bank & Other Charges of(~) 1579 was incurred but expenditure was not recorded in PFMS. Hence there is a difference of(~). 179 in PFMS data and Tally data. 6. PROFESSION TAX: - There has been delay in payment of Profession Tax on Salary to employees for the period from October-2018 to March-2019. 7. GST TDS: - TDS Certificate (GSTR 7A) have not been issued suppliers. 8. Financial records are kept as per Guidelines given in the Financial Manual. Page 114 of 186 J --·- .. --·- incurred 9. Expenditure . . and paid .through . . ·· - ,., .. ···- . Punjab Natiqnal Bank " ., with help of PFMS system is treated as Grant r~ceived, hence the amount of grant actually received in bank cannot be verified. ' 30. OT SHIVAJI UNIVERSITY KOLHAPUR S.No. Area of Audit Audit Comments & Recommendation Management Observation for Improvement Comment 1. Financial Management records, Procedure. In case University Funds as 1.After taking systems and controls that were of expenditure done original voucher are approval of Shivaji examined during the course of th'i'otigh ·· Shivaji In their custody University the review University fund, the authorities all ori inal . vouchers 2. Pl ·, Id .Ql;>t"ins original voucher will ~re in th.e cust9~Y, of official receipts for obtained university. Later on "fUns transfened to these expenses are Snfvaji Uni\iersTty for 2.receipt will be rei , lff~ep from the expenses obtained TEQIP Ill funds. reimbursed to it. 2. Deficiencies and areas of 1.ln case of 1. Reimbursement Hence forth weakness in systems and controls reimbursement of of G TE ees-·s'hould reimbursement -. t will GATE fees to e paid to individual be made directly to individual students, students directly student though it is observed that, through PFMS PFMS The students are ' • ) paying the fees o.n ) their own initially. The Pl is transferring for alrsudi stuci~nts to .th!:! cor:ic~me!i E;? -_coo,:ti_i!laJQr c.o!:J rs. and he is paying the individual stud~nts py way of cash/bank, ) t~ansfer at later dated as and when the individual student is contacted. In this process, tne..JJtoney is,~Jy,lng idle in the per son~I ban~. account of the co- coordinator till the V .,. Page US of 186 . debited to Improve Students Learning 3. Matters that have come to No such matters Nil attention during the audit that observed might have a significant impact on the implementation of the project 4. Matters that have come to No such matters Nil attention during the audit that observed might have a significant impact on the implementation of the project S.No. Audit Observation Auditor Remarks Management Reply Expenses met from college fund The Expense incurred There was no allocation in the head 1. It has been observed that in th~torrent Vear as Reforms ii"ncr·· Governan'ce . ru:IsT In anAmoynt oL(i)..2,95,000/- has per books of December 2018. Hence (~) 295000/- was been paid from the college_ fl!nd accounts are to met from the institute fund . In the in the month of Dec~~b.er 2ois match with • . the subsequent months (Jan-March 201 Only hich remains unpaid for a ~xpen~e .incurred · 1'n ;!...l,!.W ~,..:!!~:;i.....:U..ld.:S Q ,.._,._, te ,~ . .!JD.der tne.. abOVe period of more·{fian 3 months M32 report. But ead. This led to delayed repaym ent in since this transaction Financial Year(2018-19 . However the is~~rfot uploaded as amount was paid back to the institution expense · ii'f PFMS the fund during April 2019 vide voucher no BP same will remain to 2019-20.26{payment advice no: be a difference C041905514117 Sustainability Fund It is the responsibility University has informed that the fund will 2. As per the Finance Manual it has of the institute to set b~ transferred shortly - -·· · ., been observed that the Institute aside 8% of their is obliged to set aside 8% of total revenues in a revenue earned by the Institute separate Sustainability Fund. Hence this situation amount to violation of MOU and the direction of Finance Manual. Advance drawn from Amount has been drawn as advance to 3. Fund drawn from PFMS PEMS was uploaded facilitate easy distribution of internship The institute (IS on 31,03-2019 as expense· in P FMS ~ fund tQ. stY.dent. It was distributed in April has-·orawn an amount of · 'which 'i~sults in 2019. Through TEQIP Bank account. It was (~)11,24,000/~_Jmm the PFMS variation of expense a~rror to..show the amount . as expen~~ in charging it as expense qut the in books of accounts Pf.MS,__ -- - same has not be~l'l: ( : utilized ~.... . ~ -and with that of M-32 remains in the' TEQIP bank report. ..... ~ - ... .. - f . account ', '..-~ Page 176 of 186 ) 31. UICT JALGAON 1. BUDGET: -The department has no any policy for preparation of_Yearly Budget. The Yearly Budgets must be prepared before conducting any event. By p(~'j:!afing ll'ie lfuclgets various·unreaso~able expenses will be avoided & it will also help in making comparative analysis of the actual spending with the budgeted spending. 2. TAX DEDUCTED AT SOURCE (TDS) INCOME TAX: - As TDS provisions are applicable to the University but there is delay in Tax deduction. Also, the record of remittance of DS n av ilable as its mainta in ~ ith mother institutiOA-KBC NMU.Care.should be t aken o.r . ely_dedu_ ~ c tion.& creditto the govern.ment account otherwise it will attract Heavy Interest & Penalty under the Income Tax Act,1961. _ .......... ...,at proper time Recommendation: On Deduction& Delay in TDS will attract various legal consequences in future which must be taken care of. I(' . 3. INTERNAL AUDIT: - Independent Internal Auditoj ah ~ointed for the said period. We have taken into consideration the Report & Finding reported by them. l 4. GOODS & SERVICE TAX-TAX DEDUCTED AT SOURCE (TDS) GSTTDS: - 4A) TDS @ 2% is required to be deducted on payment made to the supplier of taxable goods or services of both ) where the value of such supply under a contract exceeds (t). 2.5 L~khs. ) 48) the provisions of TDS on GST are applicable from 1st Oct 2018 [Notification No. 50/2018 - Central Tax dated ) 13th Sept 2018). 4C) as the department is making purchases of various items on which GST is payable. All such purchases are made on quotation basis. As per CGST act, 2017, If any individual contract (~) 25?))00 then department should deduct GST TDS as CGST @1% and SGST @1% (if purchase from outside Maharas~tra t hen IGST @2%). Department made various purchases during the year on which GST TOS was deductible but GST TOS not deducted and GST return in this r·e gard is also not filled. Such noncompliance of GST provisions will attract interest and penalty under CGST Act, 2017. The amount of default in deduction of GST TDS is as follows: - S.No. Particular Amount(inclusive A.mount (on which GST Amount of GST TDSi (to lbe ofGST) TDSi should be deducted) deducted) CGST SGST@1% Total GST @1% TDS@2% 1. Computer 705640 598000 5980 5980 11960 Lab Furniture/ Bill No 348 Date- 10-01-2019 Fuming Hood/ Bill 2 801987 679650 6797 6797 13594 No- DPA/121 Date- 09-08- \ ~ / Page rn of :!l.86 / ~ 2018 Computer Operated Distillation column (pilot 3 plant)/ Bill No 1295640 1098000 10980 10980 21960 - TSPL / 04 /2018-19 Date - 07-09- 2018 Thermo Gravimetric Analyzer/ Bill 4 No- BZL /GST 3540000 3000000 30000 30000 60000 /1819/023 Date- 16-11- 2018 TOTAL AMOUNT OF DEFAULT Cf) 53757 53757 - 107514 5. BANK ACCOUNTS, FIXED DEPOSIT &INTEREST:. -Followin are the bank accounts & Details of Fd's of University Institute of Chemical Technology NMU for which separate account detal s are maintained but not reflected anywhere in TEQIP-111 &having balances as on 31.03.2019&'/nterest ·not reflected in the books:- Bank Accounts Details: - Sr. No. Account No. Name of Fund Balance ({) 31.03.2019 1 3268914598 Maintenance Fund 36990 2 3268913946 Corpus Fund 49198 3 3268914292 Faculty development Fund 35752 4 3268914430 Equipment Replacement Fund 38233 5 3246482:299 257505) \. Page 178 of 186 ' tl .I ,5 3268915127 General Fund 1165420 TOTAL({). 3900645 FD Accounts Details: - Sr. No. Account No. Name Of Fund Amount(~ 7 3631294355 Fixed Deposit 800000 8 3631294480 Fixed Deposit 800000 9 3631294457 Fixed Deposit 800000 10 3631294571 Fixed Deposit 800000 ) TOTAL 3200000 b',.:..., 6. PREVIOUS YEAR BALANCES: - Taken from the Audited Balance sheet of 31st March 2018 7. ACCOUNTING STANDARD: - Accounting Standards: - Accounting in financial statements & IT should be ) done as per accounting standards issued by ICAI so that the financial statements show true and fair view of financial affairs. In the referred period Accounting of project is not done as per the accounting standards. Following are the major Accounting Standard which is not followed in the accounting of project: - 0 0 ~ AS 1 Disclosure of Accounting Policies: -No any separate disclosure is made in the financial statements on the following of Accounting policies. 0 :• AS 2 Accounting of inventory: - As per AS 2 all the stocks should be recorded properly in the books of Page 179 of 186 •:• AS 9Revenue Recognition: - As per AS 9(i) Interest: Revenue tobe recognized on the time proportion basis after taking into account the amount outstanding and the rate applicable. It observed the sa id polic notf91lo.,Y1.1ed. Interest/ Accrued interest on Bank FD not recorded in the books of accounts _., .. .•.~ ·.- .. . .:-.;,.,., -- •:• AS 10 Property Plan And Equipment: - As per AS 10 all the property plant and equipment's should be recorded in the books of accounts as fixed assets and yearly depreciation should be provided in the books of accounts but as per the guidelines p'tovided in TEQIP-111 manual, procurement of plant is recorded as revenue expenditure and no depreciation is provided on such assets. • · • ,o,'<.\ \ •!• AS 12 Government Grant: - All the funds used in the project are provided by the World Bank and this fund is in the nature of grant. Grant received from World Bank is having some obligations. Such grant should be recorded as per AS 12 issued by ICAI. •:• AS 26 Intangible Assets: -As per AS 26 assets generated in the R&D should be recorded in the books of accounts as an intangible asset and should be amortize during the life of intangible assets (max.lOyears). During the audit we observe that some results of R&D may generate some patents and the application for patent registration is also filled. patents should be recorded in the books of accounts after proper registration and legal acceptability of patent. 8. TRAINING: -Some oft h..i;J unctions of PFMS are not used by the department as they don't know the use ot functions. Timely trainingi;required to effective of PFMS. 9. Pro curement Procedures: - As per the procurement manual the Institute has authorized to order the purchases up to (~) 50 Lakh with calling the quotations only. All the requirements related to Procurement procedures are followed properly and all the terms and conditions mentioned in procurement manual is completely followed. 10. INSURANCE: -Adequate Insurance for various assets should be taken department to mitigate the risk contingencies and uncertainty. Page 180 of 186 PFMS is (~) 15284J44 and total Expense as per Tally data is ~) 15266~44. The said difference is in the sub I ) • I component no. 1.3.3 - operating costs. 12. PRIOR PERIOD EXPENSE BOOK DURING F.Y. 2018-19: -The organization follows the cash system of accounting, due to above the few bills which are received in previous year but the payment has been made during the current year are listed below: - - --,····- ,· ·- ·- -- ' Details of bills of earlier year but paid during the financial year 2018-~9: - DATE NAME BILL NO. BILL DATE AMOUNT PERPOUSE 22/03/2018 Conference march 23/2018 19/04/2018 GovindPatil 226 14645 & 24/2018 Kanpur . ) JangaleAkashSu 25/03/2018 Conference TA/DA and 19/04/2018 227 19820 has registration fees Saurabh M. 23/03/2018 Seminar TA/DA and 20/04/2018 228 25855 ) Thakre registration fees PranayMohadik 22/03/2018 Conference march 23- 20/04/2018 36505 24/2018 Kanpur ar . 13/03/2018 Academic and startup ) Dr.A. K. twinning activity at UPTII 20/04/2018 206 5265 Goswami Kanpur march 12-13/2018 meeting 14/03/2018 Academic and startup twinning activity at UPTJI 20/04/2018 S. A. Raut 206 23821 Kanpur march 12-13/2018 ') meeting 20/04/2018 A. K. Goswami 207 26/03/2018 6730 Academic and startup twinning activity at UPTII 20/04/2018 Sunil A Raut 207 26/03/2018 19881 Kanpur march I i2-n1iois'~ meeting ~ ·--•· ,.._~"'"~·- . . . ~:: 20/04/2018 Dr. A. K. 207 26/03/2018 29358 Page 181 of 186 Goswami 20/04/2018 Dr M. I. Talib 207 26/03/2018 29438 11/04/2018 J.B. Naik 213 22/03/2018 17700 Novoip professional fees Dr. Vishal R. 28/03/2018 Visit UPTII Kanpur march 26- 11/04/2018 10013 Parte 27/2018 AseptaBiosyste 21/03/2018 Purchasing of water 19/05/2018 143960 ms Pvt. Ltd. purification system TOTAL (t) 382991 32. SECUST ERNAKU LAM-COCHIN SI .NO. AUDIT OBSERVATION AUDITOR REMARKS MANAGEMENT REPLY 1 Expenses met from college fund The Expense incurred in There was no allocation in the It has been observed that.i!l. the current year as per head Reforms ahd Governance Amount of 2,95,000/- has books of accounts are to (1.3.2.8) In December 2018. Hence bee n paid from the college fund match with the expense (t) -~95000/- was _ _))]et from the in the mon th oF December ·2018 incurred in M32 report . institute fund. In the subsequent which remains unpaid for a period of more than 3 months But since this transaction mont hs (J an-March 2019_) .-,.;::•,. , On ly (t ) is not uploaded as 48000/- was allotted under the expense in PFMS_p the above head. This ' led to d~layed same will remain to be a repayment in Financial Year(2018- difference. 19). However the amount "'(_as p_aid back to -the institution fund during April 2019 vide voucher no BP 1[26{payment 20t9'= advice no: C041905514117 2. Sustainability Fund It is the responsibility of University has informed that the As per the Finance Manual it has the institute to set aside fund will be transferred shortly. been observed that the Institute 8% of their revenues in a ,:-- is obliged to set aside 8% of total separate Sustainability revenue earned by the Institute. Fund. Hence this situation amount to violation of MOU and the direction of *, .·.~ Page 182 of 186 ,,.., ,,.., 'I ') 'I Finance Manual. t'") t'") "") "") 1 "") 3 Fund drawn from PFMS Advance drawn from Amount has been drawn as 1 The institute as on 31-03-2019 PFMS was uploaded as adv,ance to ~- Jacilitate easy 1 has drawn an amount of (~) 11, expense in PFMS which internship distribution of 4 . fund to 24,000/- from the PFMS charging results in variation of student. It was distributed in April ' '' it as expense but' tne same has not been utilized and remains in expense in books accounts with that of M- of 2Ql.9...., Through TEQIP account. It was an ecwc to ~ow Bank the TEQIP bank account. 32 report. the amount as expense in PFMS. '' ' ) ) ) ) ,) ·) VISPIU NON-FOCUS J '-) 1. MAHARASHTRA ) J a. All expenses are completely processed through PFMS directly and respective vouchers are duly approved J and signed by the authorized signatories., We recommend that the accounting thereof should be done on routine basis in the accounting package to ensure maximum control and to provide the picture of finance management on J real time basis . ..._) ·J 2. TAMIL NADU J • Proper Books of Accounts are maintained by the Institutions. 0 u • Adequate Internal control Systems exist. < J • We have not observed any adverse features in the systems and procedures followed by the institution . 0 i...J J J J Page 183 of 186 u J J J 3. ANDHRA PRADESH a) Internal Audit coverage by Internal Audit- SPIU have appointed internal auditor for the F.Y 2018-19 to conduct internal Audit of SPIU- Vijayawada, Andhra Pradesh. Internal Auditor has conducted Internal Audit, Covered period from 01.04.2018-31.03.2019. <.- b) Audit noted that at present there are no qualified/experienced accounts personnel at And~hr~ Pradesh SPIU. Due to this Delay in Preparation of books of accounts 2nd Financial,Staternent on tim!:llY basis. c) The SPIU has maintained all supporting Bills and vouchers for expenses. •, '~•·,,'i,t Suggestions: SPIU should place experienced and qualified accounts personnel. VII. NPIU 1. Expenditure of IITs and IIMs has been booked on the basis of Utilization Certificate _provided by the Institutions till 31~ .20f9~ 2. Reconciliation of difference in expenditure between PFMS Portal and in book;; of accounts to the extent of (f) 202.99 lakhs is pending. This reconciliation should be d,one at priority basis. 3. There is difference in payments made through PFMS-Bank in Bo~o.k.s Qf a~count !ally) and PFMS, the details of which are as w1 er: - - - - Particulars Amount(f) 19,23,98,638.23 As per Books of account Payment made through PFMS Bank 18,62,00,7 48.00 As per EP-04 (Payment) Amount in EP -04 21,73,14,139.00 3,11,13,391.00 Less: Debit failure/ Debit Pending 18,62,00, 748.00 Balance .. - 61,97,890.23 Difference in Payment as per books a:nct ·P.FMS EP-04 V Page 184 of186 ' ' ' ' ' ' 'J 4. A sum of f 5.22 Lakhs net outstanding_ a . ccount of TDS Payable as at 31.03.2018 requires reconciliation betw~~-n 1 _ ue a1,1.d payable. Hence, in our ·opinion, the liabilities of the projects are 'J overstated by f 5.22 Lakhs as at 31.03.2019 between TEQJP and EDCIL book. The same as to be reconciled. '' 5. NPIU is following the cash method of accounting. Thus, the NPIU do not follow "Accrual" system of accounting. This is not in conformity with Accounting Standard 1, "Disclosure of Accounting Policies" issued ' ' by the Counc/1 of the Institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. '' ) 6. National Project Implementation Unit ha not ca italized Property, Plant and Equipment. This is not in conformity with Accounting Standard 10, " Property, Plant and Equipment" issued by the council of the Institute of Chartered Accountants of India which requires that items should be recognized as an Assets in case future economic benefits associates with the items. ) ) 7. Amoun on8 Iakhs (PY 23.11 lakhs) paid as advance to IRCTC during the year h~s n9t been settled in, ,.-) ) ""---. / 1 , ~ . , . . ;·:~,P, uring the Year, Amount of -- books of accounts. This as resulted in understa:ten1ent of expenditure and overstatement of assets. 7 ..SJ_lakll unsp_ ent balance of TEQIP-11 re~fved from Institutes ) . : and 1~ imount is treated as other Income during the year. ) ) In Addition, in our opinion, (a) with respect to expenditur;;adequate supporting docume~tation has been ) maintained to support claims to the WQ.rld ~ank for Reimbursetl)ent of expenditure incurred; and (b) exFept for .) ineligible expenditure (f Nil), if any, appended to this report, expenditures are eligible for financing under credit agreement. During the course of the audit, the expenditure statements and the connected documents were ) examined and these can be relied upon to support reimbursement under the loan/ credit agreement. ) V ) ) _) J J J J J J J J J J J J J Page 185 of 186 J J J J 1. The Company has not done the ph sical verificati n Fixed.Assets at..th year end 31.03.2019. Hence, we are unable to comment on the existence & variation, if any. ' 2. There is balan~ t~ S, 15,104 appearing In Loans and Advanceson account gf TDS recovera~le from NPIU- TEQIP which is required to be reconciled and settled. For G. R. GARG & COMPANY, Chartered Accountants ~~. FRN - 000214N Prof. Dr. P.M. Khodke Central Project Advisor NPIU Place: New Delhi Date: October 21, 2019 CA. GAURAV GARG (Partner) M. No. - 097327 Page 186 of 186 ~.;;}~~ .. ... .... e~~ l e I, ' ~ ~ -' •r.-.\1·,\· f 1·• A , ' · lf I• .: I • . . , .~ , j \ UTILIZATION CERTIFICATE FOR THE FINANCIAL YEAR 2018-19 PARTICULARS CURRENT YEAR (') A. Opening Balance as on 1st April 2018 B. Funds received ' < 4,18,27,613.00 5,24,83,96,37 4.17 C. Other Income < 28,56,39,292.05 D. Loan < 5, 72,64,000.00 E. Expenditure < 5,28,80,42,581.29 F. Other Payments < 74,95,465.15 G.Advances < 5,62,83,381.00 UNSPENT BALANCE (As on 31st March, 2019) < 28,13,05,851.78 ) ) Based on the Utilization Certificates issued by the respective auditors of the SPIU{Focus, Non-Focus), ATU's, CFTl's, CFl's, Institutes, NPIU and Edcil compiled by us for the purpose of consolidation and subject to notes mentioned below, it is reported that a sum of< 52483 .96 Lakhs (Rupees Five Twenty i/;cifo:uf crore Eighty Three Lakhs Ninety Six Thousand Three Hundred Seventy Four Only) was received ,f .: ·fro~-Government and< 2856.39 Lakhs{Rupees Twenty Eight Crore Fifty Six Lakhs Thirty Nine Thousand Two Hundred Ninety Two Only) was earned as other income. Based on the Utilization Certificates issued by the respective auditors of the SPIU{Focus, Non-Focus), ATU's, CFTl's, CFl's, Institutes, NPIU and Edcil compiled by us for the purpose of consolidation and subject to notes mentioned below, it is also reported that out of the above mentioned funds of < 56331.27 Lakhs (Rupees Five Hundred Sixty Three Crore Thirty One Lakhs Twenty Seven Thousand Two Hundred Seventy Nine Only), a sum of < 52880.43 Lakhs {Rupees Five Hundred Twenty Eight Crore Eighty Lakhs Forty Two Thousand Five Hundred Eighty One and Twenty Nine Paisa Only) has been utilized by the SPIU{Focus, Non-Focus), ATU's, CFTl's, CFl's, Institutes, NPIU and Edcil for the purpose for which it was sanctioned. It is further reported, on the basis of Utilization Certificate issued by the respective auditors and complied by us and subject to notes mentioned below, that there is an unspent balance of< 2813.06 Lakhs (Rupees Twenty Eight Crore Thirteen Lakhs Five Thousand Eight Hundred Fifty One and Seventy Eight Paisa Only) after accounting for Other Payments of< 74.95 Lakhs (Rupees Page 256 of 257 J J Seventy Four Lakhs Ninety Five Thousand Four Hundred Sixty Five and Fifteen Paisa Only) and Advances oft 562.83 Lakhs (Rupees Five Crore Sixty Two Lakhs Eighty Three Thousand Three Hundred Eighty One only}. Based on the Utilization Certificates issued by the respective auditors of the SPIU (Focus, Non-Focus), ATU's, CFTl's, CFl's, Institutes, NPIU and Edcil and compiled by us for the purpose of consolidation and subject to notes mentioned below, it is reported that the conditions on which the grant was sanctioned have been fulfilled and where there have been any deviation from the sanctioned amount it is with prior approval of the concerned authority. The auditors have exercised reasonable checks to see that money has been actually utilized for the purpose for which it was sanctioned. Notes:- 1. Refer Annexure 1 for observations and comments of Individual Auditors. 2. Refer Annexure 2 for observations and comments during Consolidation of Utilization Certificates. I (. For G. R. GARG & COMPANY, Chartered Accountants ~0 ~~ FRN - 000214N jY- . Agnihotri Prof. (Dr.) P.M. Khodke _)26 nsultant (Finance) Centre Project Advisor NPIU NPIU Place: New Delhi Date: October 21, 2019 CA. GAURAV GARG (Partner) M. No. - 097327 Page 257 of 257 G.R. Garg & Co. Chartered Accountants 777, MRM Chambers, D.B. Gupta Road Karol Bagh, New Delhi - 110005 +911123512307, 23617942 info@grgarg.co.in Annexure 1 Audit Observation of Individual Auditors to Consolidated Utilization Certificate for the year ended on 31st March, 2019 I. ST ATE PROTECT IMPLEMENTING UNITS 7 "j) I J 1_. SPIU HIMACHAL PRADESH ;} • Q.. ~ ' I ....i:l,"t,, ,<,,'•' t '~·:1: Loa~~ and advances amou nting f 296362/- outstanding as in 31/03/2 01 9 contains as amount of }.9 )' . · ·- - f 14417/- pertaining to FY 2017-18. It is suggested that either it should be recoupe d or refunded , ..,.., }}\.' back. {)(}, (I r 2. SPIU NORTH EAST Unspent balance of ? 72,359.60 (Excluding Advances but including bank balance 6,664.60 and t 65,695.00 as ineligible expenditure of last year) only is being carried forwar,d for utilization in the next year. U. INSTITUTES 1. JNTUIST HYDERABAD The re is a difference of ~ 1, 40,000/- bet ween Expenditure as per PFMS.and b9oks. This is due non - 1{/ efl ectio nof expendit ure on account of se ttlem; nt of ~dvance. Though advance was showing settled ~\' but is not reflecting as expenditure in PFMS. (Voucher No. BP-2018-19-317 dated 05.03.2019 t 14 0001))_ _ _ Page 258 of 259 2. SVUCETIRUPATHI There is a difference off 1, 80,000/- between Expenditure as per PFMS and books. This is due non- \-~ reflection of expenditure on a<;count of settlement Qf advance. Though advance w~s showing settled \ but is not reflecting as expenditure in PFMS. (Voucher No. BP-2018-19-23 dated 09.08.2018. 3. UIET KURUKSHETRA \ - Advance given in FY 2017-18 amounting to f 40,000 not settled till 31.03.2018. were neither shown as Funds received nor as unspent balance in the year 2017-18. . For G. R. GARG & COMPANY, (~2-.iw, Prof. Dr. P.M:Khodke Consultant (Finance) Central Project Advisor NPIU NPIU Place: New Delhi Date: October 21, 2019 Page 259 of 259 G.R. Garg & Co. Chartered Accountants 777, MRM Chambers, D.B. Gupta Road Karol Bagh, New Delhi - 110005 +9111 23512307, 41546466 info@grgarg.co.in Annexure 2 Audit observation on Consolidated Utilization Certificate for the year ended on 31st March, 2019 I. STATE PROJECT IMPLEMENTION UNIT 1. RAJASTHAN \ .(.. not been deducted from expenditure in U~. Ineligible expenditure account tot 6.93 Lakhs has_ 2. UTTARAKHAND Ineligible expenditure amounting to t 8, 65,000/- has not been deducted for stating expenditu re in ) UC. o. ~s (:.. ) 3. UTTAR PRADESH ) Total Expenditure oft 51, 01, 29,974.32 includes disallowance of Rs 22, 53,301.00 ) II. INSTITUTES ) 1. UIET, KURUKSHETRA Advance given in FY 2017-18 amounting tot 40,000 not settled till 31.03.2018 were neither shown ._:::. . ' as Funds received nor as unspent balance in the year 2017-18. 2. GCE JALGAON Payments of Bank & Other charges of~ 1579 was incurred but expenditure was not recorded in PFMS. Hence there is a difference of~ 1579 in PFMS data and Tally data . V Page 260 of 263 J G.R. Garg & Co. Chartered Accountants Ill. 20 SPIU's, CFTl's, CFl's, and State Programme Institutions have reported Eligible expenditure at Point- i._...,. .-,,,._ . - • . ~ •... F in Statement of Reconciliation of Claims to Total Application of Funds different than that reported .. in Total Expenditure at point-Fin Utilization Certificates: Sr. Name of the Expenditure as per Expenditure as per Difference No. SPIU /lnstitutes/CFTI/CFI Statement of Utilization Certificate (f In Lakhs) Reconciliation of Claims ~ In Lakhs) to Total Application of Funds (t In lakhs) 1. SPIU ORISSA # 1727.13 1725.17 1.96 2. SPIU JHARKHAND 2940.08 2937.00 3 .08 3. SPIU HP## 638.55 641.52 (2.97) 4. SPIU MP### 4537.95 4538.10 (0.15) 5. SPIU UP#### 5078.77 5101.30 (22.53) ··- / 6. SPIU UlTARAKHAND #### 3378.03 3386.68 (8.65) k.__~ 7. SPIU RAJASTHAN #### 4524.71 4531.64 (6.93) 8. BVM VV NAGAR ##### 218.04 218.16 (0.12) 9. SJCE MYSORE 135.14 135.42 (0.28) 10. CIT COIMBATORE 399.55 398.42 1.13 11. GEC JALGOAN ###### 142.98 143.00 (0.02) 12. SGSS NANDED 226.64 226.47 0.17 13 . VJTI MATUNGA # 179.39 179.24 0.15 14. PEC PUDUCHERRY # 7.74 0.14 7.60 <-- ~ 15. NIT SRINAGAR ####### 325.46 328 .83 (3.37) 16. MANIT BHOPAL 370.94 372 .08 (1.14) 17. NIT SURATKHAL 168.47 170.36 (1.89) 18. VNIT NAGPUR 376 .07 376.55 (0.48) 19. MNIT JAIPUR 174.60 175.09 (0.49) -,; ! I • '.'(d 0 ~{9·I Gf>-R G ~ ~..... ·' Consultant (Finance) Central Project Advisor PARTNER .,,..~c.O ........ j P Revolving Fund 0.00 534931.00 Q. EdCIL Mar_gin 20063555.00 10899556.00 R. Service Tax/ GST 26182939.00 13961804.00 S. Meetings/ Training/ Workshop expenses 176001423.00 83861567.00 T. Others 1838817.00 1306649.00 U. Audit Fees 174895941.00 165672.00 V. Procurement of Goods 443764262.00 202917953.00 W. Improve Students Learning 311923354.00 72847047.00 I X. Graduates emplovabilitv 100898740.50 11319724.00 Y.Advances 1433919.00 190929.00 Z.Faculty Reforms 872227255.00 129350812.00 EXCESS OF INCOME OVER EXPENDITURE 6083 8221.23 20535550.10 TOTAL 5119818326.82 1141789736.85 TOTAL 5119818326.82 1141789736.85 Notes: I. MNIT Allahabad For the financial year ending on 31st March, 2019 out of the total expenditure aggregating to a sum of Rs.1,20,32,674.90 expenditure amounting to a sum of Rs. 77,64,748 intiated by TEQIP - Ill were credited directly into the account of the concerned beneficiaries by NPIU through the PFMS model. Consequently, for the year under consideration, their were NIL receiptby TEQIP-111 from NPIU. Hence the amount of above expenditures totalling to a sum of Rs. 7764748 as per PFMS has been considered as deemed grant receipt by TEQIP-111 along with the sum of Rs.42,67,921 as deemed grants receivable by TEQIP-111 from NPIU and shown as such in the above Income & Expenditure account. Further, the balance expenditure amounting to Rs. 2928343.90 were paid by TEQIP-III from its bank account out of temporary loan of Rs. 9000000 receivecl by it from TEQIP-IJI directors. As per our Consolidation Report of Even Date iwi' For G. R. Garg & Company !rt:. ,G"f! • .....,- _...,,,,, I •!t -. -- ~ V:r/' _,. 0 · ~ ... ~ -- Gl>-RG ,f - ...... 'v •.1 ' Chartered Accountants FRN - 000214N 1~ :J-o.,.:,,."""'~..>=-_,. r. .-.-.. ~ N.. A ~ Prof. (Dr). P.M. Khodke Consuf!llllt (Finance) NPIU Central Project Advisor NPIU IV \i ~~~V·; ~; ~ FRN : 000214N .,2 PARTNER ~~ New Delhi ,f M.No. - 097327 ?.e,.e<1Acco~~' Dare: October 21, 2019 - Place: New Delhi ·... ~ TECHNICAL EDUCATION QUALITY IMPROVEMENT PROGRAMME PHASE - III CONSOLIDATED RECEIPT AND PAYMENT ACCOUNT FROM 1st APRIL, 2018 TO 31st MARCH, 2019 YEAR ENDED ON 31st YEAR ENDED ON 31st Sr. Sr. RECEIPTS MARCH,2019 PAYMENTS MARCH,2019 No. No. f f l Opening Balance :- 1 Release to :- a) Cash 61,772.00 a) Institutes 19,905,325.00 b) Bank 18,842,928.05 b) Loans & advance 24,500,140.00 c) Fund with EdCIL 2,940,329.00 c) Grant Surrender 1,401,135.00 d) Faculty Development Program 1,913,771.00 d) Revolving Fund 187,489.00 e)Advance 6,967,993.00 Payment to Consultants, Seminar 2 &Workshop 1,896,433,189.82 2 Received from: a) MHRD (Govt. oflndia) 5,209,131,577.67 3 Procurement of Assets 2,138,612,200.00 b)Institution 40,861,779.00 c) TEQIP-II 4 Administration 468,268,964.47 3 Other Receipt, if any :- 5 Faculty Reforms 774,685,265 .00 a) Advance Recovered/ Received f 53,424,424.00 b) Other Advance Recovered 15,767,005.41 6 Other Payments:- c) College PLA A/C 3,010,000.00 a) Investment in FDR - d) Bank Interest 506,894.18 b) Others 67,168,466.91 e) Other Receipts 405,102,400.27 c) EMD Refunded 186,000.00 t) Investments d) Advances 35,778,348.15 g) Other Liabilities 49,548,053.00 e)TDS 1,394,311.00 h) Sale of Tender forms 8,000.00 t) Faculty Development Program 1,913,771.00 i) Adjustment of wrong Credencials Ii) TDS 1,479,577.00 7 Closing Balance :- k) Excess paid refunded a) Cash 56,251.00 l) EMD /Security Deposits 1,204,800.00 b) Bank 344,306,494.23 c) Loans & Advances 5,723,488.00 TOTAL 5,810,771,303.58 TOTAL 5,810,771,303.58 1. MNIT ALLHABAD:-For the financial year ending on 31st March, 2019 out of the total payments aggregating to a sum of Rs.1, 11,02,612.90, payments amounting to a sum of Rs. 81,74,269.00 intiated by TEQIP - Ill were credited directly into the account of the concerned beneficiaries by NPIU through the PFMS model. Hence, the payments incurred amounting to a sum of Rs. 81,74,269.00 as per the PFMS, has been considered as deemed grant receipts ofTEQIP - Ill from NPIU and shown as such in the above receipts and payments account. Further, the balance payments amounting to Rs. 29,28,343.90 were paid by TEQIP - Ill from its bank account out of a temporary loan of Rs. 90,00,000.00 received by it from TEQIP - Ill Director which has been shown as such in the above receipts and payments account. As per our Consolidation Report of Even Date For G. R. Garg & Company Chartered Accountants .. _,. ,. .- -· u \.' _ PRN - r, • ,,,, ., .. ,.. .. \)"·;1 ~~ . ,• . _,. ,7 _,-,-'> Ci..: ·2~v·1 "· . 1 1'l Ii,_ : /' ' . : __~~[:~ --- N. . Ag.!,!ib.OIFi Con ·ullant {F'inuncc) NPIU __.. Prof. (Dr). P.lvCKbodke Central Project Advisor NPlU · PAR'[ M.No.- ~z ~ ~ A GAUR 1-,."V ~1Wooo211 '12 Ac~ - ;;; Date: October 21, 2019 Place: New Delhi .... ,. ~ ' TECHNICAL EDUCATION QUALITY fMl'ROV EMENT PROGRAMM'E PHASE - nJ CREDIT NO. 5874-0IN CONSOLIDATED STATEMENT OF SOURCE AND APPLICATION OF FUND REPORT FOR THE PERIOD ENDED 31st MARCH, 2019 FIGURES IN LAKHS PARl'ICULARS YEAR ENDED ON 31st YEAR ENDED ON 31st PROJECT TO DATE MARCH, 2019 t MARCH,2018 f t Openu11t Balnncc(A) 366.4 87.lJ 87. 11 RECEIPT Funds from Government through Budget(These will include external S2S54.04 12,426.92 64,980.96 assistance received by Government for the project) Funds received directly by project Implementing authority through external 13.38 68.51 81.89 assistance lnstitute's Own Contribution 37.08 5.53 42.61 Advance Received/ Loans 572.37 0.! 3 572.50 Bank Interest 4.15 0.25 4.40 01her Receipts 2856.08 84.26 2,940.34 Add/Less: Debit Failures -80.92 (179.96) (260.88) Add/t.ess:E.xpenditure shown in books but not shown in EP-04 2.04 2.04 Less: Amount difference shown between EP-04 & PFMS -1.37 (1.37 Gra nt SurrendorTo NPIU -6.77 (6.77 TotalReceint (B) 55950.08 12405.64 68,355.?l Total Sources (C = A+B) 56316.48 12492.75 68,442.83 E:i;~ifclifor8i.v..{:omnoncnt ,. tumponei!tenditure 130.73 130.73 Revenue l?.xocndi1ure 216.54 71 70 288.24 I System Level Slrenthcning . EdCIL Margin 200.64 109.00 309.64 Service Tax 261.83 139.62 401.45 Advances 27,81 (2.40) 25.41 " Loan Repayment 60,72 60.72 ' ,, jv Revolving Fund 5.35 5.35 Improved Student Learnings 4401.56 1,145.65 5,547.21 Graduate Employbility 424.7 87.24 511.94 Faculty Refonns 9322.02 1,307.50 10,629.52 Total Expenditure (D) 53078.35 12125.67 65,204.02 Advance given/ Loan Repaid (E) 17.23 7.14 24.37 Investment in FD{F} 192.64 192.64 Closing Dalance(C-D-E-J,') 3028.26 359.94 3,021.80 NOTES: 1. SECUST ERNAKULAM Payment made to NBA amounting of Rs. 7,67 ,000/- was not reflected in EP04 Report.However the management confirmed that the payment has been etfecterd but due to technical issue the same has not reflected in EP 04 report. Based on the confinnation from the managment, the same has been Included in the expenditure in the Income & Expenditure Account under the head 1.3.2.5 Refonns governance. 2. PW RAJASTAHN (i)Arnount of Rs. 400/- is excess refunded to NPIU by University Department,Kota (ii) Amount of Rs. 5,000/- has been deposited into Bank account by SPIU,Jaipur 3.UJET KURUKSHETRA Grunt received in FY 2017-18 was understand in Source and Application by Rs. 40,000 by previous auditor hence no closing balance was there. We have considered that amount and taken Rs. 40,000 as opening balance. (. As per our Consolidation F,eport of Even Date ForG.R.Garg&Co.mp eP..RG- -- Chartered Acco ~ ~ <>.-·v · ll 9 FRN-00 i!lll~ ~ f ~ c!-' ~LJ11,J} ~ ·~·~:l -() ~ Consultant (Finance) NPIU .m Central Project Advisor NPIU ,,,,:,r,~:F""' Prof. (Dr). P.M. Khodke i· \ €Ai<,A -- P M.No. - 097327 - od&' - ,Oa1hl t Date: October 21, 2019 Place: New Delhi . > TECHNICAL EDUCATION QUALITY IMPROVEMENT PROGRAMME PHASE - III CREDIT NO. 5874-0IN CONSOLIDATED RECONCILIATION OF CLAIMS TO TOTAL APPLICATIONS OF FUNDS OF NPIU REPORT FOR THE PERIOD ENDED 31st MARCH 2019 FIGURES IN LAKHS FINANCIAL YEAR PREVIOUS YEAR ENDED ON 31st ENDED ON 31st PROJECT TO DATE PARTICULAR MARCH,2019 MARCH,2018 t t t Banks funds claimed during the year (A) 26,422.67 6,073.48 32,496.15 Funds lying unspent with Institutes(B) - - Total Expenditure made during the year (C) 53,004.28 12, 197.74 65,202.02 Less: Outstanding bills (D) 73.36 40.26 113.62 Ineligible expenditure(E) 38.28 8.97 47.25 Expenditure not claimed (F) 47.30 1.55 48.85 Total Eligible Expenditure claimed (G)=(B)+(C)-(D)-(E)-(F) 52,845.34 12,146.96 64,992.30 Add: Prior Period Adjustment (H) Expenditure not claimed (I) Total Eligible Expenditure claimed (J)=(G)+(H)+(I) 52,845.34 12,146.96 64,992.30 World Bank Share @50% of(J) above (K) 2-6,422.67 6,073.48 32,496.15 .. '"""'i n [Q -~ As per our Consolidation Report of E v ~ ~ G4 ~Li . · ~ ForG. R. Garg&Co .. 11-j, "C!1artcred ACSl)II ~ s rfo )'o A wJ)_JM/') ~ ., . . . , ~ ~ - ~ FRN:OJ)t ~ N. ~ ~ 1lta11t (Finance) Prof. (Dr.) P.M. Kfrodf'e ·· ~ oa11n , s :t)~ f~ l r>---·--- . :· ;·,-.. ~ / '.'; ~' I ..·· 1 , .~, II 4 • .:1 .. , .. , TECHNICAL EDUCATION QUALITY IMPROVEMENT PROGRAMME [TEQIP - Ill] SCHEDULE-9 SIGNIFICANT ACCOUNTING POLICIES 1. GENERAL :- a) The accounts are prepared under historical cost conventions following the cash system of accounting. However, MNIT Allahabad, SVNIT Surat, MNIT Jaipur, SUET Sangrur, NIE Mysuru, WCE Sangli, UCE Osmania, Dt Shivaji, SPIU Uttar Pradesh, NPIU and Ed.cil India Ltd. are accounting for expenses on mercantile basis. b} Accounting policies not specially referred to are consistent and in consonance with generally accepted accounting principles. c) Expenses and Income to the extent paid and received respectively are accounted for on cash basis. 2. FIXED ASSETS :- As per accounting policies stated in the financial Management Manual, Fixed Assets are to ) be stated at cost. However, some of the participating institutions have capitalized fixed ) assets in the Balance Sheet details of which are highlighted at S. No 11, 9, 10 & 11 of the notes of accounts of SPIU's CFTl's, CFI, and State Programmed Institutions respectively. ) Fixed assets purchased are charged to expenditure in the year of purchase. 3. DEPRICIATION ON FIXED ASSETS :- No Depreciation is charged on fixed assets. 4. GRANT ACCOUNTING :- Since the direct transfer of fund to the beneficiary is made through the PFMS, the institute is not getting any fund directly, therefore, the expenditure incurred as per PFMS shall be considered as grant received and accounted for accordingly after reconciling the figures 5. INVESTMENTS:- lnvestments are valued at cost. However, there are no investments outstanding at the end of the year Page 274 of 304 Notes to Accounts: I. SPIU 1. As the SPIU Institutions are Non- Profit making Autonomous for academic purposes hence, no provision for taxation has been made in the accounts. 2. Only the eligible expenditure incurred on the project activities is claimed. Expenditure not in accordance with the project agreements not to be claimed. 3. Advance to Faculty/staff have been treated as expenditure by States only upon submission of expenditure information. 4. Interest income on FDR is accounted for on accrual basis and accrued interest is shown as current assets of the project. 5. Revenue from the grants & Bank interest are recognized on receipt basis. 6. Material purchased for the project activities have been charged off to the relevant project expenditure at the time of purchase. 7. SPIU Andhra Pradesh has treated Grant Received amounting to~ 10.74 Lakhs as capital in nature and taken it directly to Capital Grant/Capital Reserve in Balance Sheet. 8. One SPIU has adopted "Income Approach" for accounting of Government grant and have transferred the amount of grant to Income & Expenditure Account corresponding with the amount of expenses incurred by the respective institutes during the year. The details are as follows:- Sr. Name of Amount of Grant Grant transfer to Difference No. SPIU Received as per Receipt & Income & Expenditure (~In Lakhs) Payment Account Account (~in Lakhs) (tin Lakhs) 1. ORISSA 1727.13 1333.07 394.06 Page 275 of 304 9. Three SPIU's have reported Grant in Receipt & Payment Account different than that ~tated in Income &Expenditure Account. The details are as under: S. No. SPIU Grant as per Receipt Grant as per Income Difference & Payment Account & Expenditure (~In Lakhs) (fin Lakhs) Account (~in Lakhs) 1 SPIU HP# 643.83 643.10 0.73 2 SPIU MP 4536.19 4537.95 (1.76) . 3 SPIU RAJASTHAN 4547.92 4547.39 0.53 Total 9727.94 9728.44 (0.50) # Excess grant surrendered to NPIU 10. Four SPIU and one Non focus SPIU have reported Grant in Statement of Sources and Application of Funds different than that stated in Income & expenditure Account. The details ) are as under: s. SPIU Grant as per Grant as per Income Difference No. Statement of Source & Expenditure (? In Lakhs) and Application of Account Funds (tin Lakhs) (? in Lakhs) 1. SPIU ORISSA # 1727.13 1333.07 394.06 ', ... ...____.,. 2. SPIU MP 4536.19 4537.94 (1.75) ) 3. SPIU 3385 .54 3388.08 (2.54) !JTTARA KHAN D 4. SPIU UP 5125.81 5126.60 (0.79) 5. SPIU NON 10.74 NIL 10.74 FOCUS AP## TOTAL 14785.41 14385.69 399.72 # Difference is due to fixe d assets and advances not sho,vn in I& E. ## Grant capitalized Page 276 of 304 11. Two SPIU's have capitalized Fixed Assets purchased during the year in Balance Sheet and not Charged to Income & Expenditure Account as prescribed in Financial Management Manual. The Details are as under: Sr. No. NameofSPIU Amount of Fixed Asset as on 31.03.2019 (fin Lakhs) 1. SPIU ORRISA 392.10 2. SPIU JHARKHAND 1027.23 Total 1419.33 12. Four SPIU's have reported expenditure in 'Income and Expenditure Account' different than that expenditure in 'Statement of Sources and Application of Funds' (excluding differences on account of addition in Fixed Assets). The details are as under: S.NO Name ofSPIU Expenditure as Expenditure as per Difference per Statement of Income & (fin Lakhs) Source and Expenditure(fin Application of Lakhs) Funds (fin Lakhs) 1. SPIU ORISSA # 1335.03 1333.07 1.96 2. SPIU 1547.31 1546.58 0.73 ICHATIISGARH ## 3. SPIU MP### 4538.10 4537.95 0.15 4. SPIU JHARKHAND 1910.34 1912.06 (1.72) Total 9330.78 9329.6~·-· 1.12 _/ # Advances #II Advances shown as expenditure in S&A II## Advances refunded Page 277 of 304 ) 13. Three SPIU's have reported expenditure at point-B of Statement of Reconciliation of Claims to Total Application of Funds different than that reported at point-D of Statement of Source and Application of Funds. The details are as under: S.NO Name of SPIU Expenditure as Expenditure as per Difference per Reconciliation Statement of (fin Lakhs) of Claims to Total Source and Application of Application of Funds Funds (fin Lakhs)) (fin Lakhs) 1. SPIU JHARKHAND 2942.37 2937.57 4.80 2. SPIU 1546.58 1547.31 (0.73) CHATTISGARH # 3. SPIU MP## 4537.95 4538.10 (0.15} TOTAL 9026.90 9022.98 3.92 # Advances considered as Expenditure in S&A ) ## Advances refunded ) ) 14. RAJASTHAN ) a} As on 31 March 2019, there are f 19, 47,106.00 balances of Loan & Advance and i 5,000/- Deposits in the Bank and f 400/- Liabilities are subject to confirmation and as certified by the management. II. ATU ) 1. As the CFI /SPFU and State Program Institution are Non- Profit making Autonomous for academic purposes hence, no provision for taxation has been made in the accounts. 2. Only the eligible expenditure incurred on the project activities is claimed . Expenditure not in accordance with the project agreements not to be claimed. 3. Advance to Faculty/staff have been treated as expenditure by States only upon submission of expenditure information. 4. Interest income on FDR is accounted for on accrual basis and accrued interest is shown as current assets of the project. 5. Revenue from the grants & Bank interest are recognized on receipt basis. 6. Material purchased for the project activities have been charged off to the relevant project expenditure at the time of purchase. --l------ Page 278 of 304 7. One ATU has treated Grant as capital in nature and taken it directly to Capital Grant/Capital Reserve in Bal,rnce Sheet. The details are as under:- Sr. NameofATU Grant from No. Government ('in Lakhs) 1. JAWAHARLAL NEHRU 91.69 TECHNOLOGICAL UNIVERSITY, HYDERABAD 8. One ATU has reported Grant in Statement of Sources and Application of Funds different than that s'tatetnn·.1nconie~ expenditure Account. The ·details are as under: S.No. Name of the ATU Grant as per Grant as per Difference Statement of Source Income & (t In Lakhs) and Application of Expenditure Funds Account (? in Lakhs) (fin Lakhs) 1. JAWAHARLAL NEHRU 91.69 NIL 91.69 TECHNOLOGICAL UNIVERSITY, HYDERABAD# # Grant Ca pitallzed Ill. CHI 1. As the CFTI are Non- Profit making Autonomous for academic purposes hence, no provision for taxation has been made in the accounts. 2. Only the eligible expenditure incurred on the project activities is claimed. Expenditure not in accordance with the project agreements not to be claimed. 3. Advance to Faculty/staff have been treated as expenditure by States only upon submission of expenditure information. 4. Interest income on FDR is accounted for on accrual basis and accrued interest is shown as current assets of the project. 5. Page 279 of 304 6. Material purchased for the project activities have been charged off to the relevant project expenditure at the time of purchase. 7. Two CFTI has adopted "Income Approach" for accounting of Government grant and have transferred the amount of grant to Income & Expenditure Account corresponding with the amount of expenses incurred by the respective institutes during the year. The details are as follows:- Sr. Name ofCFTI Amount of Grant Received as Grant transfer to Difference No. per Receipt & Payment Income & (tin Lakhs) Account Expenditure (~ in Lakhs) Account (tin Lakhs) 1. IIIT MANIPUR 74.86 30.83 44.03 2. NIT AGARTALA 274.11 267.38 6.73 Total 348.97 298.21 50.76 8. Two CFTls have reported Grant in Statement of Source and Application of Funds different than that stated in Income & Expenditure Account. The details are as under: - ) ) S.No. CFTI Grant as per Statement of Grant as per Income Difference Source and Application of & Expenditure (tin Lakhs) ) Funds Account (fin Lakhs) (fin Lakhs) 1. NIT AGARTALA 274.11 267.38 6.73 2. IIITMANIPUR 74.86 30.83 44.03 TOTAL 348.97 298 .21 50.76 9. One CFTI has capitalized Fixed Assets purchased during the year in Balance Sheet and not charged to Income & Expenditure Account as prescribed in Financial Management Manual:- Sr. Name ofCFTI Amount of Fixed Asset as on 31.03.2019 No. (?in Lakhs) 1. IIIT Manipur 43.77 Page 280 of 304 10. Two CFTl's have reported expenditure in 'Income and Expenditure Account' different than that expenditure in 'Statement of Sources and Application of Funds' (excluding differences on account of addition in Fixed Assets). The details are as under:- S.NO Name ofCFTI Expenditure as per Expenditure as per Difference Statement of Source Income & (tin Lakhs) and Application of Expendlture(fin Funds Lakhs) (tin Lakhs) 1 NIT SRINAGAR 330.51 328.83 1.68 2. IIIT MANIPUR # 31.08 30.83 0.25 Total 361.59 359.66 1.93 # Advances 11. One CFTl's has have reported expenditure at point-B of Statement of Reconciliation of Claims to Total Application of Funds different than that reported at point-D of Statement of Source and Application of Funds. The details are as under: S.NO Name of CFTI Expenditure as per Expenditure as per Difference Reconciliation of Statement of (tin Lakhs) Claims to Total Source and Application of Funds Application of (~in Lakhs) Funds (~in Lakhs) 1. NIT SRINAGAR# 325.46 330.51 (5.05) II Closing bank balance shown as expenditure 1n S&A 12. NIT AGARTALA Previous Financial Year's closing Advance:- An amount of~ 25,33,206.00 (Rupees twenty five lakh thirty three thousand two hundred six) only was carried forward from previous financial year 2017-18 as closing balance of Advance provided. Of this t 25,33,206.00, an amount of t 19,55,903.00 (Rupees Nineteen Lakhs Fifty five Thousand nine hundred three) only was l Project Advisor, National Project Implementation Unit account. The Details of the refund are as follows:- SL. No. Cheque No Cheque Date Bank Cheque Amount Deposit (~) Date 1 977688 21.06.2018 SBI, NITA 22.06.2018 27038 2 799562 05.10.2018 SBI, Agartala 06.10.2018 8775 3 148087 05.09.2018 SBI, NITA 06.09.2018 11329 4 626486 04.09.2018 SBI, Agartala Branch 06.09.2018 8278 5 954080 15.02.2019 SBI, NITA 16.02.2019 16844 6 260120 07.09.2018 SBI, NITA 20.09.2018 16520 7 260119 07.09.2018 SBI, NITA 20.09.2018 2555 8 701780 06.09.2018 SBI, NITA 20.09.2018 4639 9 45152 06.09.2018 SBI, NITA 20.09.2018 63728 10 28298 01.05.2018 SBI, Bankura Branch 01.06.2018 67923 11 45937 04.09.2018 SBI, NITA 06.09.2018 70760 ) 12 284235 04.06.2018 SBI, MBB Branch 22.06.2018 64246 13 46160 07.09.2018 SBI, NITA 20.09.2018 83090 14 737468 04.07.2018 SBI, NITA 07 .07 .2018 14402 15 368739 06.10.2018 SBI, Mecheda 09 .10.2018 3488 16 476205 05.09 .2018 SBI, NITA 06.09.2018 6166 17 188 04.05.2018 SBI, NITA 01.06.2018 12623 18 28299 04.09.2018 SBI, Bankura Branch 06.09.2018 16000 19 809997 22.06.2018 SBI 07 .07.2018 12514 20 524440 04.09.2018 SBI, NITA 06.09.2018 7455 21 737469 05.09.2018 SBI NITA 06.09.2018 12058 22 103370 21.06.2018 SBI, NITA 22.06.2018 4250 Page 282 of 304 23 94586 05.09.2018 SBI, A.D Nagar 06.09.2018 5142 24 401156 02.05.2018 SBI, NITA 01.06.2018 13567 25 136332 01.08.2018 SBI, NITA 06.09.2018 12332 26 476206 05.09.2018 SBI, NITA 06.09.2018 11581 Total 5,77,303 • Current Financial Vear 2018-19's closing Advance:- Total current year advance given to different vendors is f 53,29,253.00 (Rupees fifty three lakh twenty nine thousand two hundred fifty three) only and adjustment received from current year advance is f 34,52,453.00 (Rupees thirty four lakh fifty two thousand four hundred fifty three) only. Now, out of this f 34, 52,453.00, an amount off 27, 00,661.00 (Rupees twenty seven lakh six hundred sixty one only) was booked as expenditure and the balance of ~ 7, 51,792.00 (Rupees seven lakh fifty one thousand seven hundred ninety two) only was refunded to NPIU by cheque deposit in Central Project Advisor, National Project Implementation Unit account. So, the Closing balance of advance for the F.Y. 2018-19 is Rs. 18,76,800.00 (Rupees eighteen lakh seventy six thousand eight hundred only) which is actually the unspent balance. The Details of the refund are as follows:- Cheque SI Cheque Cheque No Bank Deposit Amount (f) No. Date Date 1 654931 15.03.2019 SBI, NITA 29 .03.2019 29917 2 709061 15.03.2019 SBI, NITA 19.03.2019 29916 3 992606 15.03.2019 SBI, NITA 19.03.2019 29347 4 917697 18.01.2019 SBI, NITA 02.02.2019 43684 5 476212 29.03.2019 SBI, NITA 30.03.2019 6503 6 28300 15.03.2019 SBI NITA 19.03.2019 1338 7 476210 08.02.2019 SBI, NITA 12.02.2019 9155 8 794357 29.03.2019 581 NITA 30.03 .2019 32313 / 9 15297 18.03.2019 SBI, NITA I 29.03.2019 - 14299 ®el'Y y fc;"' r~t>.Rr,,~ · ~ ~C? l* ~~000214' , * Page 283 of 304 ·':!.,,.. New Delhi ,r,i:r i'o reaAcco~~"' - 10 476209 08.02.2019 581, NITA 12.02.2019 11347 11 470416 11.09.2018 SBI NITA 20.09.2018 22440 12 401161 28.03.2019 SBI, NITA 29.03.2019 1014 13 511312 15.03.2019 SBI, NITA 19.03.2019 298 14 278652 28.03.2019 SBI, NITA 29.03.2019 19164 15 895388 18.03.2019 SBI, NITA 29.03.2019 1420 16 46165 30.03.2019 SBI, NITA 30.03.2019 14810 ) 17 992605 15.11.2018 SBI, NITA 05.12.2018 24259 18 401160 28.03.2019 SBI, NITA 29.03.2019 4544 ) 19 315002 12.11.2018 SBIAgt 13.11.2018 46717 20 260135 29.03.2019 SBI, NITA 30.03.2019 1609 21 90481 04.09.2018 SBI NITA 06.09.2018 31401 22 401158 20.06.2018 SBI, NITA 06.09.2018 7608 23 308973 28.03.2019 SBI, RMS 30.03.2019 72889 ) 24 244665 28.03.2019 SBI, NITA 29.03.2019 11389 ) 25 55761 22.03.2019 SBI NITA 29.03.2019 17600 } 26 518055 15.03.2019 SBI, NITA 19.03.2019 6730 27 809998 27.03.2019 SBI, NITA 29.03.2019 6833 28 94590 28.03.2019 SBI, AD Nagar 29.03.2019 5555 29 794355 29.03.2019 SBI NITA 30.03.2019 30772 ) 30 635305 28.03.2019 SBI, NITA 29.03.2019 3872 31 697057 15.03.2019 SBI, NITA 19.03.2019 10415 32 954082 29.03.2019 SBI NIT 30.03.2019 38153 33 52505 28.03.2019 SBI, Agt 29.03.2019 19035 ) 34 524445 29.03.2019 SBI, NITA 30.03.2019 24486 35 992433 28.03.2019 SBI, NITA 29.03.2019 7765 .J Page 284 of 304 J 36 889824 28.03.2019 SBI, NITA 29.03.2019 5461 37 674889 29.03.2019 SBI MBB Collg 30.03.2019 6807 38 794339 05.09.2018 SBI NITA 06.09.2018 25225 39 476211 08.02.2019 SBI, NITA 12.02.2019 3585 40 308974 28.03.2019 SBI, RMS 29.03.2019 20894 41 368741 08.10.2018 SBI Mecheda 09.10.2018 10036 42 794338 15.06.2018 SBI, NITA 22.06.2018 41187 TOTAL 7,51,792 So, total advance refunded to Central Project Advisor, National Project Implementation Unit account is f 13, 29,095.00 (Rupees thirteen lakh twenty nine thousand ninety five only) in which t 5, 73,303.00 (Rupees five lakh seventy thousand three hundred three only) is refunded from previous year advance and f 7, 51,792.00 (Rupees seven lakh fifty one thousand seven hundred ninety two only) from current year advance. • Expenditure booked in the F.Y 2018-19:- Fund received from MHRD/NPIU for the F.Y. 2018-19 is f 2, 74, 10,970.00 (Rupees two crore seventy four lakh ten thousand nine hundred seventy only). Expenditure booked for the F.Y. 2018-19 is t 2, 67, 38,281.00 (Rupees two crore sixty seven lakh thirty eight thousand two hundred eighty one only). 13. IIIT MANIPUR a) Balance of Loans and Advances, Deposits and other Liabilities are subject to confirmation and as certified by the management. The Current assets are stated at an account, which is in opinion of the management, not in excess of their recoverable value. There is an advance of f25,000 .00 at the end of the year. b) Bank Balance oft 10, 08,000/- of the TEQIP PHASE-Ill with IIIT Manipur in ICICI Bank, Porompat, Imphal S/B A/c No. 264301000132 y Page 285 of 304 IV. CFI 1. As the CFI are Non- Profit making Autonomous for academic purposes hence, no provision for taxation has been made in the accounts. 2. Only the eligible expenditure incurred on the project activities is claimed. Expenditure not in accordance with the project agreements not to be claimed. 3. Advance to Faculty/staff has been treated as expenditure by States only upon submission of expenditure information. 4. Interest income on FDR is accounted for on accrual basis and accrued interest is shown as current assets of the project. 5. Revenue from the grants & Bank interest are recognized on receipt basis. Material purchased for the project activities have been charged off to the relevant project expenditure at the time of purchase. 6. Four CFl's have received and treated Grant as capital in nature and taken it directly to Capital Grant/Capital Reserve in Balance Sheet. The details are as under :- Sr. No. Name of CFI Grant from Government (~ in Lakhs) 1. NIT SURATHKAL 169.99 ) 2. ISM DHANBAD 221.03 3: VNITNAGPUR 379.72 4. IIEST SHIBPUR 197.30 Total 968.04 ) . 1. One CFI has adopted "Income Approach" for accounting of Government grant and have transferred the amount of grant to Income & Expenditure Account corresponding with the amount of expenses incurred by the respective institutes during the year. The details are as follows :- Sr. Name of CFI Amount of Grant Grant transfer to Difference No. Received as per Receipt Income & Expenditure (f in Lakhs) & Payment Account Account (tin Lakhs) (~ in Lakhs) 1. NIT RAIPUR 148.33 101.76 46.45 Page 286 of 304 8. One CFI have reported Grant in Receipt & Payment Account different than that stated in Income & Expenditure Account. The details are as under: S.No. CFI Grant as per Grant as per Income & Difference Receipt & Expenditure Account (fin Lakhs) Payment (fin Lakhs) Account (fin Lakhs) 1 NIT 101.88 101.76 0.12 RAIPUR# # Grant for O & M expenses deducted from l&E 9. Six CFl's have reported Grant in The Statement of Source and Application Account different than that stated in Income & Expenditure Account. The details are as under: S.No. CFI Grant as per Statement Grant as per Income Difference of Source and & Expenditure (f In Lakhs) Application of Funds Account (fin Lakhs) (fin Lakhs) 1. NIT RAIPUR 148.22 101. 76 46.46 2. NIT 169.99 NIL 169.99 SURATHKAL 3. ISM DHANBAD 221.07 NIL 221.07 4. VNITNAGPUR 378.38 NIL 378.38 5. NITTRICHY# 243.80 244.90 (1.10} 6. IIESTSHIBPUR 197.30 NIL 197.30 TOTAL 1358.76 346.66 1012.10 - I ,ff.?':, P.,r< ~ <'I, r #Advances FR~t~\4,\ .:~~ I,~:~ 0. ' ~:···~. I ' ~ ~ ~,., Ne'II~ 0 - ,.)( ~ •r:d .:.cc1' - Page 287 of 304 10. Seven CFl's have capitalized Fixed Assets purchased during the year in Balance Sheet and not charged to Income & Expenditure Account as prescribed in Financial Management Manual:- Sr. No. Name of CFI Amount of Fixed Asset as on 31.03.2019 (tin Lakhs) 1. NIT RAIPUR 46.45 2. MANIT BHOPAL 268.36 3. NIT SURATHKAL 72.52 4. ISM DHANBAD 89.91 5. NIT CALICUT 0.40 6. VNITNAGPUR 220.29 7. IIEST SHIBPUR 117.22 TOTAL 815.15 11. Seven CFl's have reported expenditure in 'Income and Expenditure Account' different than the expenditure in 'Statement of Sources and Application of Funds' (excluding differences on account of addition in Fixed Assets). The details are as under:- S.NO Name ofCFI Expenditure as per Expenditure as per Difference Statement of Source Income & (tin Lakhs) and Application of Expenditure (t in funds lakhs) (fin lakhs) 1 NIT RAIPUR# 105.87 101.91 3.96 2. Nil' SILCHAR ## 308.46 317.45 (8.99) 3. NIT SURATHKAl 97.77 97.70 0.07 4. VNIT NAGPUR 156.26 156.75 (0.49) 5. NITTRICH'\f 243.80 243.95 (0.15) (6. MNIT 171.74 120.33 51.41 ALLAHABAD ### 7. SUET SANGRUR 134.25 136.58 (2.33) #### - ) ,...G /I.RG4' ) V I ,~ c, ~ ~ - C, -9 .-~ · .~ I Page 288 of 304 C'! FRIii : 000214N :g ':1~ New oe,hi ,,,c:, "t. ' ~.... co~ fir-ea Ac. -- I Total 1 1218.15 11174.67 143.48 # Advances ## Payment against advances unadjusted ### Difference of Repayment of Loans less Amount payable as on 31 March 2018 but paid In the Financial Year 18-19 and Amount payable as on 31'' March 2019. #### Excess of Expenditure over income 12. Seven CFl's have reported expenditure at point-8 of Statement of Reconciliation of Claims to Total Application of Funds different than that reported at point-D of Statement of Source and Application of Funds. The details are as under: S.NO NameofCFI Expenditure as per Expenditure as per Difference Reconciliation of Statement of Source (tin Lakhs) Claims to Total and Application of Application of Funds Funds (tin Lakhs) (tin Lakhs) 1. NIT RAIPUR# 148.37 152.32 (3.95) 2. NIT SILCHAR ## 308.72 308.46 0.26 3. NIT SURATHKAL 170.00 170.29 (0.29) 4. VNIT NAGPUR### 384.34 376.55 7.79 5. MNIT JAIPUR 174.63 179.06 (4.43) 6. MNIT ALLAHABAD 111.03 171.74 (60.71) #### 7. SUET SANGRUR 136.58 134.25 2.33 ##### TOTAL 1433.67 1492.67 (59.00) # Advances shown in S&A ## Expenditure not claimed ### Advances with staff to be carried forward for adjustment in the next year. #### Repayment of Loan to MNNIT-Director of· 60.72 Lakhs ##### Outstanding bills 13. NITTRICHY Source of Income: - Grants Development by way of notional credit in the PFMS ledger. )I Page 289 of 304 The total amount of grant allotted during the financial year 2018-19 is f 3, 49, 43,500/- spread through four quarter of the previous year as per PFMS (M-32) as tabulated below:- Quarter Amount NITTRICHY ! 92120.000 !! 61 21.soo 1 !!! 21.21.000 IV 1 6s.1s.ooo 1 The unspent balance at the end of each quarter will get exhausted and is not carried forward to next quarter. Against the above receipt, the institution has spent during the previous year f 2, 43, 80,429/- for the purpose for which it was sectioned. 14. IIEST SHIBPUR a) The project financial statement recognizes actual receipt and the amount spent as per PFMS. Therefore against allotment of f 1, 97, 90,428/- the amount of f 1, 97,90,428/- has been considered as Grant received from MHRD, Government of India, Department of Higher Education. ) 15. NIT ROURKELA In order to register in PFMS (As per TEQIP-111 PFMS User Manual) the Institute need to submit bank Account number with the cancelled cheque to the NPIU. For the same the Institute have opened a saving bank account with state Bank of India, NIT campus branch, Rourkela(Bank ) Account No. 36714661318,TEQIP-111,NIT . Rourkela) with the, minimum balance oft 10,000/-. The amount deposited for opening of bank account has been shown as consumable under component 1.3.3.1 during F.Y 2017-18. The interest earned from saving bank A/c off 358/- during F.Y 2017-18 and f 365 during F.Y 2018-19 has not been accounted during respective Financial Years. Also Bank charges amounting to f 69 incurred during F.Y 2017-18-has not been accounted. Page 290 of 304 16. NIT DURGAPUR a) Amount oH 6, 50,000/- has been paid as advance during F.Y 2017-2018 has not been considered as expenses during F.Y 2017-2018. Out of which, an amount of ~ 6,20,042/- has been considered as Expenses for the F.Y 2018-2019 as expenses voucher have been received during this year. But still there lies unadjusted advance paid during 2017-2018 amounting to~ 29,958/- ~re ·not-yet received, as such this amount oft 29,958/- is not against which expenses vo;h-~~ - yet considered in preparation of Income & Expe-nditure Account for the period ended 31st March 2019. b) Balance of Loans and Advance, Deposits and other Liabilities are subject to confirmation and as certified by the management. An amount of t 29,958/- appears under the head Advances. Beside this there is no other Current asset. 17. NIT JALANDHAR a) The TEQIP Phase Ill NIT Jalandhar has opened saving bank account with SBI and deposited f 10000.00 as advance from NIT Jalandhar during the F.Y 2017-18. The closing bank balance is fort 10571.75 as on 31.03.2019. These entries have not been shown in financial statements of TEQIP Phase Ill for the F.Y 2018-19. 18. SVNIT SU RAT a) No depreciation provided on Fixed Assets acquired under the project and the same is as per method of accounting suggested by MHRD. b) There are no Contingent Liabilities c) TDS Late Payment charges were paid during F.Y 2018-19 due to late deposit of TDS to the credit of the Government. Details of the same areas under: Sr. Name of Section Due date of Actual date Delay in Amount of Expenditure under TDS Deposit on TDS number of Late no. on which Which TDS deposition days Payment TDS is deducted Interest deducted Charges(t) 1. Twining 194( 30/4/2018 13/08/2018 180 Days Rs.158 system paid to surbhi travel & consultancy d) In view of there being no taxable income or exempt under the Income Tax Act, 1961, no y provision for Income Tax has been provided. Page 291 of 304 e) During the period no payment made by the TEQIP cell, all the payment are made by/through Public Financial management system(PFMS) only cell has to upload the payment request and directly payment made by PFMS. f) IRG oft 6, 08,430/- and interest on saving bank A/c off 2, 48,521/- is credited to Canara Bank Saving Account no. 0277101028663. ,_; ( g) In respect of Bank Reconciliation, the ~:'_~IT ~EQIP cell has not opened separate bank account for / pO(lJ\ l 1 1 TEQIP-111, we have not considered opening bank balance off 67,31,715/- in the account and deducted in bank reconcilia!ion which relating to TEQIP-U. h) Interest income oft 2,48,521/- in saving bank account ofTEQIP, no details relating to interest for TEQIP-11 or TEQIP-111 are provided by the cell , hence we have ignored the same. The amount credited to Canara bank saving account No. 0277101028663 and deducted in bank reconciliation statement. i) In case Balance Sheet, Statement of Source and Application of funds and other related statements, the previous year figure are taken and considered as per new guidelines of revised FMM (Financial Management Manual) ofTEQIP. 19. MNIT ALLAHABAD a) The Current assets are stated at an amount, which is in opinion of the management, is not in excess of their recoverable value. V. INSTITUTES 1. As the Institutes are Non- Profit making Autonomous for academic purposes hence, no provision for taxation has been made in the accounts. ) 2. Only the eligible expenditure incurred on the project activities is claimed. Expenditure not in accordance with the project agreements not to be claimed. 3. Advance to Faculty/staff have been treated as expenditure by States only upon submission of expenditure information. 4. Interest income on FDR is accounted for on accrual basis and accrued interest is shown as current assets of the project. 5. Revenue from the grants & Bank interest are recognized on receipt basis. 6. Material purchased for the project activities have been charged off to the relevant project expenditure at the time of purchase. 7. Eleven Institutes have received and treated Grant as capital in nature and taken it directly to Capital Grant/Capital Reserve in Balance Sheet. The details are as under :- Page 292 of 304 J Sr. No. Name of Institutes Grant from Government (fin Lakhs) 1. AUCE VISHAKHAPATNAM 77.24 2. JNTU COLLEGE OF ENGINEERING, 73.25 ANANTPUR 3. JNTU COLLEGE OF ENGINEERING, 228.71 KAKINADA 4. SVUCE TIRUPATI 175.85 5. PESCE MANDYA 370.13 6. COE PUNE 245.22 7. GCE KARAD 314.77 8. ICTMUMBAI 268.30 9. JNTU COLLEGE OF ENGINEERING, 295.94 HYDERABAD 10. JNTU INSTITUTE OF SCIENCE AND 322.51 TECHNOLOGY, HYDERABAD 11. UCEOSMANIA 160.02 Total 2531.94 - 8. One Institute has adopted "Income Approach" for accounting of Government grant and has transferred the amount of grant to Income & Expenditure Account corresponding with the amount of expenses incurred by the respective institutes during the year. The details are as follows :- Sr. Name of Institute Amount of Grant Grant transfer to Difference No. Received as per Income & (~ in Lakhs) Receipt & Payment Expenditure Account Account (? in Lakhs) (?in Lakhs) 1. SJCE MYSORE 42.19 y Page 293 of 304 9. Three Institutes have reported Grant in Receipt & Payment Account different than that stated in Income & Expenditure Account. The details are as under: S.No. INSTITUTES Grant as per Receipt & Grant as per Difference Payment Account Income & (fin Lakhs) (fin Lakhs) Expenditure ) Account (fin Lakhs} 1 BVMVVNAGAR 218.61 218.16 0.45 2 NIE MYSORE 38.99 398.53 (359 .54) 3 BMSCE 274.46 260.41 14.05 BANGALORE Total 532.06 877.10 (345.04) } ) 10. Eighteen Institutes have reported Grant in Statement of Source and Application of Funds different than that stated in Income & Expenditure Account. The details are as under: ) ) S.No. INSTITUTES Grant as per Statement Grant as per Income Difference of Source and & Expenditure (fin Lakhs) Application of Funds Account (~in Lakhs) (~in lakhs) 1. AUCE 77.24 NIL 77.24 VISHAKHAPATi\!AM 2. JNTU CO LLEGE OF 73.25 NIL 73.25 ENGINEERING, ANANTPUR 3. JNTU COLLEGE OF 228.71 NIL 228.71 J ENGINEERING KAKINADA 4. SVUCE TIRUPATI 175.85 NIL 175.85 5. NIE MYSORE 399.13 398.53 0.60 Page 294 of 304 J 6. PESCE MANDYA 370.13 NIL 370.13 7. SECUST COCHIN # 272.73 261.49 11.24 8. SJCE MYSORE## 135.14 92.95 42.19 9. eve SPCE MUMBAI 198.14 197.93 0.21 ### 10. GCE KARAD 314.77 NIL 314.77 11. ICTMUMBAI 268.30 NIL 268.30 12. JNTU COLLEGE OF 295.94 NIL 295.94 ENGINEERING HYDERABAD 13. JNTU INSTITUTE OF 322.51 NIL 322.51 SCIENCE AND TECHNOLOGY, HYDERABAD 14. UCEOSMANIA 160.02 NIL 160.02 15. BMSCE BANGALORE 274.54 260.41 14.13 16. DT, SHIVAJI 100.32 88.72 11.60 UNIVERSITY#### 17. UIET PUNJAB### 184.23 184.90 (0.67) 18. COE PUNE 245.22 NIL 245.22 TOTAL 4096.17 1484.93 2611.24 # Advances received ## Fixed assets not shown in l&E ### Debit Failure ##II# Grant liability 11. Two Institutes have capitalized Fixed Assets purchased during the year in Balance Sheet and not charged to Income & Expenditure Account as prescribed in Financial Management Manual:- Sr. No. Name of Institutes Amount of Fixed Asset as on 31.03.2019 (tin Lakhs) 1. SJCE MYSORE 42.19 2. ICTMUMBAI 99.55 TOTAL Page 295 of 304 12. Four Institutes have reported expenditure in 'Income and Expenditure Account' different than that expenditure in 'Statement of Sources and Application of Funds' (excluding -,,,.,·, --- differences on account of addition in Fixed Assets). The details are as under: S.NO Name of Institutes Expenditure as per Expenditure as per Difference Statement of Source Income & ('in Lakhs) and Application of Expenditure Funds ('In Lakhs) ('in Lakhs) 1 BVB's SPCE 198.14 197.93 0.22 MUMBAI# 2. BMSCE 274.47 260.40 14.07 BANGALORE 3. VJTI MATUNGA 179.39 179.24 0.15 ## 4. PONDICHERRV 7.74 0.14 7.60 ENGINEERING COLLEGE, PUDUCHERRV ## Total 659.74 637.71 22.04 # Debit Failure ) ## Advances ) e ment of Reconciliation of Claims to 13. Four Institutes have reported expenditure at point-B of Stat_ Total Application of Funds different than that reported at point-D of Statement of Source and Application of Funds. The details are as under: &-- Page 296 of 304 S.NO Name of Expenditure as Expenditure as Difference Institutes per per Statement (fin Lakhs) Reconciliation of of Source and Claims to Total Application of Application of Funds Funds (fin Lakhs) (fin Lakhs)) 1. BVB SPCE 198.20 197.71 0.05 MUMBAI# 2. GCE 176.11 176.09 0.02 AURANGABAD ## 3. MAKAUT WEST 93.87 93.86 0.01 BENGAL# 4. BMSCE 260.41 274.47 (14.06) / / BANGALORE ~-~ TOTAL 728.59 742.13 (13.98) ~ g)bJe.Expenditure ll ## Expenditure not claimed 14. JNTU COLEEGE OF ENGINEERING, HYDERABAD(INSTITUTE) The grant is transferred to general fund account and same is not as per the Accounting Standard - 12 "Accounting for Government Grants" issued by the Institutes of Chartered Accountants. 15. UCE OSMANIA The grant is transferred to general fund account and same is not as per the Accounting Standard -12 "Accounting for Government Grants" issued by the Chartered Accountants. 16. PECUT CHANDIGARH a) Since the direct transfer of funds to the beneficiary is done through the PFMS, the institutes are not getting any fund directly, therefore, the expenditure incurred as per the PFMS shall be considered as grant received and accounted for accordingly after reconciling the figures. \ b) The sum off 80.00 Lacs is received from PEC during the current financial year .and are grouped under Loan (Liability). _.:· . .. ~ ~'·~--·~· ....... . .--- ' ~.,.,, c) for project susta;nabv Page 297 of 304 17. UICETCHANDIGARH a) The Receipts and Payment Account carry in the figure of allocation of funds and actual payments of the project during the F.Y 2018-19. b) The Income & Expenditure and Balance Sheet have been drawn from Receipts and Payments Account duly accounting for all known advance as at the end of accounting year. c) The Institute has Budget allocation on 7 crore during the project life. d) Total Expenditure during the financial year 2018-19 was f 88, 75,522/- divided into component wise as prescribed by NPIU . e) Schedule and Receipt and Payments accounts form an Integral part of accounts and have been duly authenticated. 18. UIET PUNJAB UNIVERSITY CHANDIGARH a) The institute has a budget allocation oft 2.83 crore in the year 2018-19. b) Since there was no allocation of funds on PFMS by_~ PIU tQJlll the institutions from the period ·___ --------~ 10 from October 2018-Feb 2019 therefore, a loan of f ...... . Lakhs was taken from director UIET -i:1 :\\ - -· , '- Account and repayment has been made. A sum off 4465/- has been earned as interest on loan ) 10.00 Lakhs which due for refund for director account. ) c) A sum off 16,000/- on account of sale of tender forms due for deposit in PFMS. The matter regarding non adjustment/receipt of amount in PFMS has been taken up with NPIU vide letter ) no. 178/TEQIP,III/UIET dated 09/05/2019. The amount will be deposited as PFMS once the issue ) is resolved . d) Total expenditure during the Financial Year 18-19 was~ 1,86,78,443/- divided into three major heads procurements of goods, academic processes and operating costs as prescribed by NPIU . ) e) Schedules and receipts and payments accounts form an Integral part of account and have been duly authenticated. 19. FET JADHAVPUR a) An amount of Rs 12538 has bee n ~1£1. .itS....PeL E.FMS .account instead of f 12583 under head improve student learning. b) The Designated T~ IP c~L!:n!!i _ ~-t~in_~ -~-- ~~J>ar_ f__l~~ia, Jadhavpur a_~e _b_ University Branch and deposit an amount received against Sale of NCB t ender Form which is amount to f 1,000 for the current year(previous year~ 7,000/-) Page 298 of 3\04 20. UCT CALCUTTA a) Out of the advance off 20,000 to the Prof Nabendu Chaki(coordinator) for Mentoring/Twining Systems in 2017-18 Rs. 16,412.85 has been spent and adjusted during the said financial year leaving unspent balance f 3,587.15 at the closing date of the Financial year. The said unspent balance has been refunded and settled in PFMS system in 2018-19. [Refer Report -2(Status of Advance)]. b) There was no current asset at the balance sheet date as confirmed by the management. 21. AUCE VISHAKHAPATNAM The grant is transferred to general fund account and same is not as per the Accounting Standard -12 "Accounting for Government Grants" issued by the Institute of Chartered Accountants. 22. DTU DELHI a) There is difference between the amount shown in EP-04 report generated for Quarter-1 from PFMS portal on 31.05.2019 (f 26, 41,399) and generated earlier on 16.08.2018 (f27,54,593) to the extent off 1,13,194. This might be due to some technical errors on PFMS portal. i. There is difference between the amount shown in M-32 report generated for Quarter-! from PFMS portal on 10.06.2019(11,85,739) and generated earlier on 13.07.2018(f 9,95,819) to the extent off 1,89,920. This might be due to some technical errors on PFMS portal. \ ii. DTU has not created Sustainability fund as mandated in the Project Implementation Plan (PIP) by transferring 8% of their annual revenue. c) Advance given are not settled within reasonable time. Details providing date of advance given which have not been settled till the date of balance sheet: S. No. Date of Advance Amount(~) 1 14.05.2018 99,120 2 22.05.2018 11,074 3 22.05.2018 3,000 4 14.09.2018 1,93,500 5 28.11.2018 30,609 6 28.11.2018 130 7 14.12.2018 10,000 8 17.01.2019 56,640 9 17.01.2019 56,640 10 08.02.2019 50,000 ;;-- ,~ - ,:~> 11 08.02.2019 .,.........,...- .,.. t\O ~.640 12 14.02.2019 " 6'~0 1~ ~f\(,,,,.. ,, Page 299 of 304 ~/ C'> F-RN • OOOi14 N ~ ':'.., ,.I. New Delhi a~edAcco~ ,:.'°" ,f - I Total I 6,63,993 c) Delhi Technological University is following the cash method of accounting, which is prescribed by NPIU. Thus, the institutions do not follow "Accrual" system of accounting. This is not in conformity with Accounting Standard 1, "Disclosure of Accounting Policies" issued by the Council of the Institute of Chartered Accountants of India which requires that books of account should be maintained on accrual basis. d) Cash payment made in excess off 10,000 to be disallowed under section 40A {3) of Income Tax Act, 1961 amounting to f 80,828. e) TDS not deducted at the time of payment made to Non-resident amounting to f 32,840 which resulted into disallowance of expenditure u/s 40 of Income Tax Act, 1961. f) Provisions of Employees State Insurance Act, 1948 and Provident Fund Act, 1925 have not been followed by DTU (TEQIP-111) in case of 4 employees engaged in the project whose total annual emoluments were f 9.72 Lakhs. g) There is difference in Grant received as per PFMS report and books of accounts due to amount deposited in Central Pool Account at the time of Settlement of Advances and it has been reduced from 'Grant Received' in the books of accounts. Details of amount taken as grant received during ) the year are mentioned below:- S.No. Particulars Amount(f) ) A Amount received as per PFMS Report 86,40,569 ) 8 Amount deposited in central pool account 2,46,685 ) Total grant received as per Books of accounts(A-B) 83,93,884 23. BVM VV NAGAR a) Cash Balance is not verified by us. The same is taken as certified by the management. b) Auditor have not physically verified Assets created out of funds utilized and have relied upon the report of internet auditors regarding verification of assets Auditors have not physically verified J Assets created out of fund utilized. c) Project Institute has not complied with GST TDS u/s 51 of CGST act2017. Total Amount of GST TDS not deducted amounts to { 42,360.83/- on the contract value off 21, 18,041.38/-. Details of the contacts on which GSTTDS not deducted are as under: V Page 300 of 304 .. Sr. Name of Party Contract Value GSTTDS@2% no. 1 Sanket Enterprise 3,62,109.38 7,242.19 2 Kashish lnfotech 13,10,932.00 26,218.64 3 Make3d.in 4,45,000.00 8,900.00 Total 21,18,041.38 42,360.83 24. DCRUST MURTHAL a) DCRUST has not created Sustainability fund as mandated in the Project Implementation Plan (PIP) \ by transferring 8% of their annual revenue. b) There is di~~rence _ off 1, oo,g~o .L~.,.t~~ :xP.~~~.'.tur.e as per.. book of account and PFMS (M-32) because during the year advance off 1, 00,000 given to faculty for the programme and same \ account has been adjusted as per books of accounts but not in M-32. "" ·- • ' . --. • _,.., ,_ .-~. , ,, . _ _ _ .. _ ., .... ~~--- '" . .. ,- -- -~tf. Particular Amount(~) Expenditure as per Books of accounts 97,38,206.00 Expenditure as per M-32 96,38,206.00 Difference 1,00,000.00 25. BVBCET HUBBALI An amount off 15,400/- was inadvertently paid twice. The amount was first paid in 2017-18 and __ ..... _,_ , .----- . ·-- ··· - ~- was wrongly uploaded as advance in PFMS, though treated as expe~~! =-'.n the book of ~c.counts. Since this er,ro-r -{pay'ment made duririg the year 2018-19) was noticed after the balance sheet date, the duplicate payment has been treated as "Advance" in the balance sheet as at 31't March 2019. The amounts stands recovered on this date. 26. YMCA FARIDABAD a) YMCAUST has created sustainability fund (in form of FD) of f 109, 86,465.00 @ 8% of their revenue on 13, 73, 30,818 (Unaudited) in HDFC Bank. b) There is difference in Grant received as per PFMS report and books of accounts. During the year, one program cancelled by NITIE and the amount advance for the program was refunded by NITIE Mumbai. This amount was deposited central pool account and has been reduced from 'Grant v are mentioned below:- Page 301 of 304 S. No. Particulars Amount(f) A Amount received as per PFMS Report 1,27,22,393 B Amount deposited in central pool account 77,880 Total grant received as per Books of accounts 1,26,44,513 (A-B) c) During the year, amount off 127440 was advanced for programs to ESCI, which were either . cancelled or po~tponed and the amount advanced has been shown as Advance in Financial Statement whereas the same are reflected as an expense in PFMS. To that extent there is a ~,.,.,.,..,._ - difference in expenditurea s--per - Pi=IVIS and books of accounts. d) Salary expenditure of f 25,400 paid through bank account maintained by YMCA for TEQIP-111_ ---- ---·- · ··- project has not been recouped during the year from PFMS. To this extent, there's a difference in expenses as per books of accounts and as per PFMS. ·• 27. UIET KURUKSHETRA a) UIET has created sustainability fund (in form of FD) off 82, 89,783 @ 8% of their revenue of f 10, 36,22,287 in Axis Bank. b) UIET has not deducted TDS (Tax Deducted at Source) as per Income Tax Act, 1961 on the expenditure booked under the head 1.3.2.4 amounting tot 1,35,000. ) c) UIET has not deducted TDS as per GST ~ct -~hile making the payment on the amount of f 4, 35,449. ) d) There is difference between the expenditure reflected in M-32 Report generated from PFMS ) '-'.-, ..._ - portal and expenditure booked as per books of accounts to the extent oft 7, 16,115 due to ' - - -""--:--=-~ - · - --- . = rt payment made by UIET through bank maintained at their level but these payments not approved ) on PFMS portal. ) e) An expenditure of~ 49,855 are booked under head 1.3.2.10 (Services) instead of head 1.3.3.3 J i,.r.'• - ·- - ' - - • • - .l {Office Expenses) i~ M-32 Report generated from PFMS. port al. This has resulted into e~t and understatement of 1.3.3.3 component in M-32 ov~rstatement of 1.3.2.10 cori:ipon_ Report. f) UIET, Kurukshetra is following the cash method of accounting, which is prescribed by NPIU. Thus, the institutions do not follow "Accrual" system of accounting. This is not in conformity with Accounting Standard l, "Disclosure of Accounting Policies: issued by the Council of the Institute of Chartered Accountants of India which require that books of account should be maintained on accrual basis. g) There is difference in Grant received - --- - _ ,. . .. . . . . ·- ·--- - ___ _ ,..,,._.., as per . ·- ___ , _, ...--~ PFMS re port _...... __ and . .. boq~LQJ. ac_c_ , deposited in Central Pool Account at the time of Settlement of AdvancE:!__9nd it has been reduced o unts due..... ........ . · ·, to . amount .. . ' ~ - -- ~ - . Page 302 of 304 from 'Grant Received' in the books of accounts. Details of amount taken as grant received during the year are mentioned below:- S.No. Particular Amount(t) A Amount received as per PFMS report 91,22,444 B Amount deposited in central pool account 12,947 Total grant received as per Books of accounts (A-B} 91,09,497 V. NPIU a) Expenditure of IITs and IIMs has been booked on the basis of Utilization Certificate provided by --- the Institutions till 31.03.2019. b) Reconciliation of difference in expenditure between PFMS Portal and in books of accounts to the . ~ f') ~?ll\ ( · .:::i extent off 202.99 Lakhs is pending . ..t. , c) A sum of f 5.22 Lakhs net outstanding on account of TDS Payable as at 31.03.2018 requires reconciliation between TDS due and payable. Hence, in our opinion, the liabilities of the projects are overstated by f 5.22 Lakhs as at 31.03.2018 between TEQIP and EDCIL book. The same has to be reconciled. d) Amount of? 31 .11 Lakhs paid as advance to IRCTC during the year is not settled in books of accounts which highlighted its impact as overstated Surplus. e) During the Year, amount of? 2794.57 Lakhs unspent balance of TEQIP-11 received from Institutes ' I!-:,, ' and the amount is treated as other Income during the year. VI. Edcil a) Out of the total fund of f 9,97,50,000 received from Ministry of Human Resources Department(MHRD) for Faculty Development program in FY 2012-13, a sum off 86863374has been advanced for the programs to various selected institutes n5309010 advanced in FY 2012-13 & Rs. 71554364 in FY 2013-14 and deposited service tax to the tune off 10972855 on advance received in FY 2012-13 Advances given oft 86863374 has been adjusted by Edcil in the FY 2015- 16 on the basis of Utilization certificate received from institutes and service tax off 10972555 has also been adjusted and balance outstanding as on 31-March-2019 is? 1913771. b) The statements have been prepared on the basis of extracts from the audited financial statements submitted by Edcil (India) Limited to ministry of Human Resource Development, Govt. of India, on Mercantile system of accounting. Now these fin ncial statements have been redrafted in arid Bank in Financial Management Manual Page 303 of 304 c) Fixed Assets acquired prior to April 1, 2011 have been transferred to Income & Expenditure Account as prescribed by the Financial Management Manual. d) The amount under "Excess of Expenditure over Income "has been shifted to "Application of Funds" as the same is in positive. / For G. R. GARG & COMPANY, Chartered Accountants \c8 N.S. ~ ~ Prof. (Dr.) P.M. Khodke Consultant (Finance) Central Project Advisor NPIU NPIU (Partner) M. No. - 097327 Place: New Delhi ) Date: October 21, 2019 ) ) Page 304 of 304 ,; ...:...