Draft Inspection Report on the accounts of the Director, Soil & Water

Conservation, Mizoram, Aizawl for the period from 01.11.2012 to 31.05.2014.

PART-I

Introductory:
The accounts of the Director, Soil & Water Conservation Department,
Mizoram, Aizawl, for the period from 01.11.2012 to 31.05.2014.were test
audited by an audit party from the office of the Principal Accountant General
(Audit), Mizoram, Aizawl during the period from 17.06.2014 to 25.06.2014.

Incumbency:
During the period covered by audit, the under mentioned officers held
the post of the Director and the Drawing and Disbursing Officer (DDO) of
the office, as shown against each of them:Head of office:
Period

Sl.
No
.

Name

Designation

1.

Dr. Jerome Rokima

Director

From

To

01.11.2012

31.05.2014

Drawing and Disbursing Officer:

Period

Sl.
No
.

Name

Designation

Dr. Jerome Rokima

Director

2.

Hualthanga Chhakchhuak

From

To

01.11.2012

31.05.2014

Jt. Director (W & 01.01.2013

M)

31.05.2014

Budget provision, L.O.C receipt and expenditure, year-wise:

(` in lakh)
Head of
Account

Years
2012-13
(from 01.12.12
onwards)

2013-14

2014-15 (upto
May 2014)

Allocation

Expenditure

Excess (+)/
Savings (-)

121.928
111.939
574.207
-3305.00
90.33
376.35
109.67
157.32
3150.00
4.981
95.63
----

121.928
111.939
574.207
-3304.95
90.33
376.35
109.67
157.32
3150.00
4.98
95.63
----

----(-) 0.05
-----------

Plan
Non-plan
RKVY
CSS
NLUP
Plan
Non-plan
RKVY
CSS
NLUP
Plan
Non-plan
RKVY
CSS
NLUP

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

Review of last Inspection Report:

Disposal sheet was not prepared by the Directorate, S&WC for review of
outstanding paras.

PART II/A
NIL

PART II/B
Para 1: Implementation of New Land Use Policy- observations thereof.
The Government of Mizoram, Soil & Water Conservation Department is committed to
implement Rubber, Coffee and Broom Plantations as family oriented schemes under
New Land Use Policy (NLUP) with the following main objectives:

To provide an economically viable alternative to Jhum cultivation

To provide self-employment and sustainable livelihood to rural farmers

To generate employment to urban and rural people

To provide green umbrella cover so as to protect the soil

To restore eco-system of the region

In order to implement the schemes, as per Modified Model Scheme on Rubber, Coffee &
Broom Grass plantation under NLUP physical and financial targets set by the Department
are shown below:
(Physical in hectare/family and ` in lakh)
Target
Sl.
No.

Trade

Rubber
1

3rd Year
2011-12
Phy. Fin

4th Year
2012-13
Phy.
Fin

Phy.

Fin

500

1500

3000

2500

1500

450.00

175.00

1025.00

825.00

1000

1500

(b) maintenance

500

2500

1500

1000

350.00

3000

1050.00

5000

1700.00

4000

1300.0

2000

(a) Creation

1000

2000

2000

(b) Maintenance

1000

3000

4000

(a) Creation

200

61.00

200

(b) Maintenance
Total

525.00

500

Coffee
3

2nd Year
2010-11
Phy. Fin

(a) creation

Broom grass
2

5th Year
2013-14

1st Year
2009-10
Phy. Fin

1700

586.00

500

157.50

500

172.00

300

2000
109.50

300

200

500

300

5000

1732.50

8500

2897.00

6800

600

2234.5
0

3500

1050

Source: Modified model scheme NLUP Annexures - II, IV,VI & VII

Test check of records revealed the following irregularities.

i Delay in release of fund
Govt. of Mizoram accorded Administrative Approval and Expenditure sanction
amounting to ` 1737.98 lakh vide No.B.17012/13/2010-SC dt.21.12.12 for the
purpose of implementation of NLUP (2012-13). Approval for release of fund from
treasury was accorded by the Finance Department, Govt. of Mizoram on 15.01.13
(` 849.84 lakh) and on 08.02.13 (` 888.14 lakh).
Further, sanction was accorded for an amount of ` 1566.97 lakh vide
No.B.17012/13/2010-SC dt.06.03.13 for implementation of NLUP (2012-13) of
which approval for release of ` 200.00 lakh was accorded by the Finance
Department on 26.03.2013. The balance amount of ` 1366.97 lakh was kept under
K-deposit vide challan No.15330 dt.30.03.13 which was subsequently withdrawn
on 05.07.13 (` 65.00 lakh) and 03.08.13 (` 1301.97 lakh).
Moreover, approval for release of ` 94.00 lakh was sanctioned Vide
No.B.13015/2/2012-NLUP dt.03.09.13.
Similarly, Govt. of Mizoram Expenditure accorded expenditure sanction of
`3150.00 lakh vide No.B17012/13/2010-SC dt.29.11.2013 for implementation of
NLUP (2013-14).
The State Governments sanction order, amount drawn by the Directorate and
released to the Bank accounts of the District Officers for implementation of the
schemes during 2012-13 (from December 2012) and 2013-14 are shown in the
following table:
Table 1
(in ` )
Sanction Order

Amount Drawn

Date

Amount

Chequ
e No.

Date

Amount

201213
21.12.1
2

17379800
0

642708

16.01.1
3

84984300

Amount released to the

implementing
Divisional
Officers/firms
Date

21.01.1
3
28.01.1

Delay
(In
days)

Amount

84796300

123000

3
28.01.1
3

642716

SubTotal
08.02.1
3

SubTotal
Total
06.03.1
3

15669692
0

642741
642740

642773

26.03.1
3
26.03.1
3

SubTotal
05.07.1
3

84984300
88813700

88813700

3473036

88392336
19.02.1
3
25.02.1
3
25.02.1
3
04.03.1
3
04.03.1
3
07.03.1
3
14.03.1
3
25.03.1
3

793000
1423750
4092000
62720

24

24600

24

10000

27

69133200

34

10062900

45

85602170

17379800
0
13669692
0

8782-Cash remittance vide

challan No.15330 dt.30.03.13
19.04.1
20000000
24600
24
3
30.04.1
12700
35
3
27.05.1
78400
62
3
13.06.1
3000000
79
3
26.06.1
24600
92
3
20000000
6500000

3140300
release from k-deposit
11.07.1
1937130
3
15.07.1
800000
3
15.07.1
7034000
3
16.07.1
2791000
3
23.07.1
1217300
3
23.07.1
50
3

6
10
10
11
18

24.07.1
3
24.07.1
3
26.07.1
3

642779

03.09.1
3

9400000

993994

SubTotal
03.08.1
3

13019692
0

Total

15669692
0

04.09.1
3

9400000

SubTotal
Total
for
201213
201314

6500000

744915

19

108000

19

462500

21

15094895
release from k-deposit
03.08.1
105446800
3
07.08.1
424000
3
07.08.1
925000
3
12.08.1
2764550
3
13.08.1
139600
3
14.08.1
1147000
3
14.08.1
120000
3
19.08.1
62720
3
21.08.1
66500
3
26.08.1
96000
3
26.08.1
1798200
3
02.09.1
7450000
3

4
4
9
10
11
11
16
18
23
23
30

120440370
04.09.1
3
24.09.1
3
25.09.1
3
27.09.1
3

21500000
7000

20

120000

21

487000

23

9400000

22114000

33989492
0

334784071

29.11.1
3

31500000
0

645138

12.02.1
4

13.02.1
4
14.02.1
645140
4
SubTotal
645139

645157

20.03.1
4

20.03.1
4
20.03.1
645159
4
20.03.1
645160
4
SubTotal
645158

Total
for
201314

10967400
0

Yet to be released to
implementing officers
as of date

16437200

do

10349028

do

13646022
8

43360000

Remitted into treasury

under 8782- Cash
Remittance vide
Challan No 17595
dt.29.03.14

Yet to
be
drawn
as of
date

40886000

vide 17598 dt.29.03.14

do

43285600

vide 17596 dt.29.03.14

do

51008172

vide 17597 dt.29.03.14

do

17853977
2
31500000
0

Nil

It can be seen from the above table that the Department released funds to the bank
account (Mizoram Rural Bank) of implementing District Officers after a delay ranging
from 04 days to 92 days from the date of sanction.
Further, it can be seen that an amount of ` 1364.60 lakh for the year 2013-14 was yet to
be released to the implementing District Officers till date. Moreover, a sum of `1785.40
lakh was drawn and deposited into treasury under 8782 - Cash Remittance vide Challan
Nos.17595,17596,17597,& 17598 dated 29.03.14.
Thus, delay and non-release of funds to the implementing agencies is bound to have an
adverse effect on implementation of the schemes which is against the interest of the
beneficiaries. Further, parking of fund under 8782-Cash Remittance without releasing
to the concerned implementing agencies is bound to hamper the execution of the
scheme.
Reasons for delay and non-release of funds to the implementing agencies besides
parking of funds under 8782-Cash Remittance may please be stated to audit.

(ii)

Non-reconciliation with Bank

Financial rules require a Drawing and Disbursing Officer (DDO)/Head of Office to

carry out regular monthly reconciliation of deposits and withdrawals from Government
account.
The State Government sanctioned ` 6548.95 lakh during 2012-13 and 2013-14 for
implementation of the schemes under NLUP. On receipt of the sanction orders from the
State Government, the Department drawn the money and credited the same to Bank
account in the name of Director, Soil & Water Conservation (S&WC) and subsequently
released to the respective bank accounts of the District Officers for implementation of
the schemes. The Drawing and Disbursing Officer (Director, S&WC), however, did not
arrange to carry out any reconciliation with the bank in order to ascertain the
correctness of the account of the District Offices. Further, actual expenditure during
2012-13 and 2013-14 under NLUP was also not available at Directorate level.
(iii) Monitoring
The progress of implementation of the schemes under NLUP is to be monitored
through

monthly/quarterly/annual

progress

reports

from

the

implementing

agencies/District Officers besides field inspections at appropriate level. It was,

however, noticed in audit that the District Officer had not submitted any progress report
to the Directorate against implementation of the schemes during 2013-14. In the
absence of progress reports, the physical and financial progress of the schemes in each
District could not be ascertained at Directorate level.
Further, due to non-maintenance of basic records at Directorate level, the end-result of
the schemes remained unascertainable in audit.
(iv) Issue of Utilization certificate amounting to ` 3305.00 lakh.
As per UC furnished on 27.06.13 by the Director, S&WC an amount of ` 33.05 crore
was utilized. However, as seen from table above, the amount of ` 13.67 crore out of
`33.05 crore was drawn by the department on 05.07.13 and 03.08.13 i.e after UC for
the whole amount was furnished. It may be stated as to how UC for the whole amount
of ` 33.05 crore was furnished before the drawal of fund by the department.

Para 2: Drawal and retention of money in order to avoid lapse of budget grants.
According to Rule 290 of the Central Treasury Rules, Vol.-I, and Rule 100(2) of the
Receipts and Payment Rules 1983 which is being followed by the State Government,
no money should be drawn unless it is required for immediate disbursement. Also, as
per the said Rule, no money should be drawn at the fag-end of the year to avoid
lapse of budget grants.
Further, Rule 56 of General Financial Rules (GFR) 2005 provides that:
(1) Departments of the Central Government shall surrender to the Finance
Ministry, by the dates prescribed by that Ministry before the close of the
financial year, all the anticipated savings noticed in the Grants or
Appropriations controlled by them. The Finance Ministry shall communicate
the acceptance of such surrenders as are accepted by them to the Accounts
Officer, before the close of the year. The funds provided during the financial
year and not utilized before the close of that financial year shall stand lapsed at
the close of the financial year.
(2) The savings as well as provisions that cannot be profitably utilised should
be surrendered to Government immediately they are foreseen without waiting
till the end of the year. No savings should be held in reserve for possible future
excesses.
(3) Rush of expenditure, particularly in the closing months of the Financial
Year, shall be regarded as a breach of financial propriety and shall be avoided.
It was noticed from the records that contrary to Rule ibid, the Director, Soil & Water
Conservation (S&WC), Aizawl, Mizoram had drawn an amount aggregating to
`1829.97 lakh during March of 2013 and shown as expended. However, it was seen
that the department deposited the entire amount into treasury through challan (8782Cash Remittance) and expenditure incurred in the subsequent year as detailed below:
(` in lakh)
Sl.
No.
1

Particular
NLUP
(2012-13)

Cheque No.
& date
642741
dt.26.03.13

Treasury
Challan
No. & date
1366.97 15330
dt.30.03.13

Amount
drawn

Amount
Remark
deposited
into treasury
1366.97 Amount withdrawn
and utilized during

RKVY
(2012-13)

RKVY
(2012-13)

642742
dt.28.03.13
642739
dt.25.03.13

Total

226.00

15331
dt.30.03.13

237.00

15332
dt.30.03.13

July & August 2013

226.00 Amount withdrawn
and utilized during
October 2013
237.00 Amount withdrawn
and utilized during
July and December
2013

1829.97

Further, it was seen that the Director, S&WC, Aizawl, Mizoram had drawn an
amount aggregating to ` 3150.00 lakh during March of 2014 and shown as expended.
However, it was seen that the department deposited the entire amount into treasury
through challan (8782-Cash Remittance) and into the joint Mizoram Rural Bank A/c of
Director, S&W and Nodal Officer, NLUP as detailed below:

Sl.
No.

Particular

NLUP (2013-14)

NLUP (2013-14)

NLUP (2013-14)

Cheque
Amount
No. &
drawn
date
(` in lakh)
645138
dt.12.02.1
1096.74
4
645139
dt.13.02.1
4
645140
dt.14.02.1
4

Treasury
Challan No.
& date

Amount
deposited
into treasury

Credited into the joint MRB

A/c of Director, S&W and
Nodal Officer, NLUP vide
receipt counterfoil Nil dt.
164.37
13.02.14

Remark
Yet to be
expended as
of date
Yet to be
expended as
of date

Credited into the joint MRB Yet to be

A/c of Director, S&W and expended as
103.49 Nodal Officer, NLUP vide of date
receipt
counterfoil
Nil
dt.14.02.14
1364.60

NLUP (2013-14)

NLUP (2013-14)

NLUP (2013-14)

NLUP (2013-14)

645157
dt.
20.03.14
645158
dt.
20.03.14
645159
dt.
20.03.14
645160
dt.
20.03.14

433.60 17595
dt.29.03.14

433.60 8782 - Cash

Remittance

408.86 17598
dt.29.03.14

408.86 8782 - Cash

Remittance

432.86 17596
dt.29.03.14

432.86 8782 - Cash

Remittance

510.08 17597
dt.29.03.14

510.08 8782 - Cash

Remittance

1785.40
Total

3150.00

It is seen that the department drew and deposited the amount on the last day of
the financial year without incurring any expenditure just to avoid the lapse of budget
grant which was contradictory to the established rules. Further, the savings as well as
provisions that cannot be profitably utilized should be surrendered to the Government
immediately. Circumstances under which this was not done may please be clarified to
audit.
Comments in this regard may be offered from the Government of Mizoram
please.
Para 3: Implementation of RKVY Scheme observations thereof:

The Rashtriya Krishi Vikas Yojana(RKVY) was introduced as a new Additional

Central Assistance scheme to incentivise States to draw up plans for their agriculture
sector more comprehensively, taking agro-climatic conditions, natural resource
issues and technology into account, and integrating livestock, poultry and fisheries
more fully, involving a new scheme for additional Central Assistance to State Plans,
administered by the Union Ministry of Agriculture over and above its existing
Centrally Sponsored schemes, to supplement the State-specific strategies including
special schemes for beneficiaries of land reforms. The main objectives of the scheme
are:
(i)
(ii)
(iii)

(iv)
(v)
(vi)
(vii)

To incentivise the states so as to increase public investment in

Agriculture and allied sectors.
To provide flexibility and autonomy to states in the process of planning
and executing Agriculture and allied sector schemes.
To ensure the preparation of agriculture plans for the districts and the
states based on agro-climatic conditions, availability of technology and
natural resources.
To ensure that the local needs/crops/priorities are better reflected in the
agricultural plans of the states.
To achieve the goal of reducing the yield gaps in important crops,
through focussed interventions.
To maximize returns to the farmers in Agriculture and allied sectors.
To bring about quantifiable changes in the production and productivity
of various components of Agriculture and allied sectors by addressing
them in a holistic manner.

In tune with the objectives of RKVY as stated in its guidelines, the Soil & Water
Conservation Department, GoM evolves the following objectives as can be seen
from its SHELF OF PROJECT.
(1) Control and prevention of soil erosion in the upper, middle and lower
reaches.
(2) Conservation of rain water to enhance production and productivity of
agriculture land in the middle and lower reaches.
(3) Improvement of current jhum lands.
(4) To minimize water scarcity during lean season.
(5) Enhancement of socio-economic status of stake holders.
Components of works under the scheme are as follow:
(i)
Stream Bank erosion control
(ii)
Check dams across of drainage line
(iii)
Rain/run-off water harvesting structures
(iv)
Contour trenches for run off detention
(v)
Agro-forestry/afforestation of degraded lands
(vi)
Terracing on slope lands
Expenditure sanction for the year 2013-14 for implementation of RKVY Stream -I
Sanction no.& date Amount
Particulars
(` in lakh)
(1)No.
226.00 5(five) nos. of watershed projects as below:
B.18011/3/20121) chemphai WRC Area,Kolasib District ` 53.40 lakh
SC,DT.24/1/14
2) Vaipuanpho, Ailawng, Mamit District ` 57.48 lakh
3) Mat watershed(Saithah) Hnahthial, Lunglei District `
54.35 lakh
4) Dilmawng zau , Zobawk, Lunglei District ` 56.70 lakh
5) Tampang zau, Sihtlangpui, Chawntlang, Lawngtlai Dist.
` 4.08 lakh
(2)
104.00 2(two) nos. of watershed projects as below:
No.B.18011/3/2012(1)Durtlang Leitan, Tuipawl watershed,Aizawl - ` 63.718
SC,DT.14/3/2014
lakh
(2)Gabaicherra watershed, Thinghlun, Mamit District. `
40.282 lakh
TOTAL
330.00
Expenditure sanction for the year 2012-13 for implementation of RKVY Stream -I
Sanction no.& date Amount
Particulars (Project)
(` in lakh)
(1)No.
238.00 3(three) nos. of watershed projects as below:
B.18011/3/20121) Dapzar-Hmunpui watershed,Aizawl District - ` 65.82
SC,dt.1/2/2013
lakh
2)Maicham and Varhva watershed, Serchip dist. `
82.48lakh
3) Chalkhan Zau , Tuisen lui watershed, Sailam, Serchip
dist. ` 89.70 lakh

(2)
No.B.18011/3/2012SC,Dt..22/3/2013

No.B.18011/3/2012SC,Dt..28/3/2013

TOTAL

237.00 1)Dapzar-Hmunpui watershed, Sihfa, Aizawl- ` 2.84

2)Rulkual watershed, Mualthuam, Lunglei Dist. ` 85.24
lakh
3)Phaitha watershed, khawzawl, Champhai dist. ` 68.82
lakh
4)Chimluang watershed, Chhimluang, Kolasib dist. ` 80.10
lakh
226.00 1) Tuipui watershed(kanghlaizau) Champhai dist. ` 54.74
lakh
2)Mat watershed(Zuangleng, Thliarpui) Serchip dist. `
58.33 lakh
3) Tumpui, Zau(Sihtlang/Chawntlang) Lawngtlai Dist. `
54.83 lakh
4)Teirei watershed(W.Phaileng) Mamit Dist. ` 58.10 lakh
701.00

Audit observations on implementation of RKVY scheme under the Directorate are as

follow:
(i)

For the implementation of the scheme under RKVY, beneficiaries were selected
for various project works such as terracing, stream banking erosion
control(SBEC), Agro forestry, construction of water tanks, check dams, land
development etc. In this regard no records were found as to how beneficiaries
were selected for the various project works.

(ii)

During scrutiny of records it was observed that the Directorate, S&WC year after
year had not been able to utilize the allocated fund under RKVY scheme as can
be seen from below:
Year
2012-13
2013-14

Allocation
Sanction/Expenditure Saving (`
(` in lakh) (` in lakh)
in lakh)
1000
701
299
580
330
250
Total
549

The scheme being Additional Central Assistance and 100% funded by the Central
Government, it is a huge loss of resources, opportunity not to utilize the full amount
of fund allocated under the scheme.
Steps may be taken for optimum utilization of the full amount of allocated fund
under intimation to audit.
Para 4: Purchase of Rubber poly bag plant for ` 50.80 lakh under RIDF-NABARD,
2013-14 Observations thereof:

Test check of records, cash book, vouchers of the Directorate of Soil & Water
Conservation, Aizawl revealed that the office had incurred an expenditure of
`50,80,000.00 , supply order no. G.28020/5/2013- DTE(S&WC),dated 15 th July,
2013 for the purchase of Rubber Poly bag plant (RRIM-600/RRII-105) for Rubber
plantation for Kolasib, Lunglei and Serchip districts from BISHNU PADA
BHATTACHARYA, Chandrapur, North Tripura under RIDF-XVII-NABARD as
given below:
Date (as
per cash
book)

Vr
No.

Bill No. &

Date

5/8/13
-do-do-

44
45
46

104, 12/8/13
105,12/8/13
107,12/8/13

Particulars of payment made to Amount (`)

B.P.Bhattacharya,
Dharmanagar, North Tripura
being cost of rubber poly pot
bag rubber plant.
14000 nos. for Kolasib
11,20,000
14000 nos. for Kolasib
11,20,000
12000 nos., for Lunglei
10,80,000

-do-

47

106,12/8/13

12000 nos., for Lunglei

10,80,000

-do-

48

108, 12/8/13

8000 nos., for Serchip

6,80,000

Total

60,000 nos.

50,80,000

Scrutiny of records revealed that till date there were no such documents in support of
the materials being received such as delivery challan, Utilisation Certificates from
the concerned district officers, APRs for received of the material from the
beneficiaries; monthly/quarterly reports of plantation, percentage of survival etc. In
the absence of such records, audit cannot ascertain the actual disbursement and
utilization of material disbursed to the beneficiaries.
The same may be obtained and produced to audit.
Para 5: Purchase of stationery items beyond financial limit.
As per Delegation of Financial Powers (DFP) Rules, 1978, as amended in 2011, the
Director, Soil & Water Conservation Department may accord expenditure sanction
for local purchase of stationery stores limited to ` 40,000 per annum.
Test check of the records of the Directorate revealed that the Director, S&WC
accorded expenditure sanctions towards purchase of stationery items during 2013-14
beyond the annual financial limit. The expenditure incurred by the drawing and

disbursing officer of the Directorate, S&WC during 2013-14 against the admissible
limit is shown below:
Table
Year
2013-14

Admissible limit
0.40

(` in lakh)
Excess
Expenditure
expenditure
5.16
4.76

Details of expenditure incurred for purchase of stationery and allied items are shown
in Annexure-I. It can be seen from the above table that against the admissible limit
of ` 0.40 lakh during 2013-14, the Directorate incurred expenditure ` 5.16 lakh
thereby an excess expenditure of ` 4.76 lakh for purchase of stationery items.

The excess expenditure of ` 4.76 lakh may be regularised by obtaining ex-post facto
sanction from the government.

PART III
NIL

AAO

AO/OA-I

DAG