CAG report 2021-22: Anomalies found in functioning of Chandigarh forest and wildlife department

The draft report of the director general of audit (central), Chandigarh, has pointed out several discrepancies and irregularities in the functioning of the department of forest and wildlife in the year 2021-22.

The report has been obtained under the Right to Information (RTI) Act.

During checking of records, it was observed that the department had built a bird park in Chandigarh at a cost of ₹5 crore during 2021-22, which was opened for the public in November 2022.

It has also been observed that the department, with the consent of the UT administrator, created a society -- Forest Society for Conservation (FOSCON) -- in November 2022 and deposited ₹85.95 lakh as entry fees collected from the people visiting bird park during the year 2021-22 in its account.

The report pointed out that it was in contravention of the provisions of Article 267, which provides that all revenues received by the government of a state, all loans raised by that government by the issue of treasury bills, loans or ways and means advances, and all money received by that government in repayment of loans will form one consolidated fund to be entitled the consolidated fund of the state.

As per the Article, all other public money received by or on behalf of the Government of India or the state government will be entitled to the public account of India or the public account of the state, as the case may be.

No money out of the consolidated fund of India or the consolidated fund of a state will be appropriated except in accordance with law and for the purposes and in the manner provided in this Constitution.

Non-reconciliation of receipts with treasury

The report noticed that the department carried out a reconciliation of remittances made into treasury as well as payments made through the treasury up to June 2018 as per verification made by the treasury officer, UT.

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

As per treasury rules and guidelines issued by the Chandigarh administration’s finance department regarding receipts, reconciliation and maintenance of the accounts of receipts realised by way of cash or cheque/draft, it is required that receipts must be deposited into the treasury either on the same day or in the morning of next day.

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

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

‘Only half work completed’

The report revealed that the department had allotted various works to different contractors in 2021, which were to be completed by March 2022, but less than half of the work was finished within the stipulated time.

During checking of records maintained by the department for 2021-22, it was noticed that work was required to be completed up to March 2022 as per the stipulated time limit of contract agreement, but only (1%-45%) physical progress of works had been achieved by the contractual agencies with an expenditure of ₹5.57 lakh against the total contract amount of ₹23.3 lakh, which had resulted into slow achievement of physical target during the financial year 2021-22, observed the audit report.

Reply has also been sought for the reasons behind non-completion of works in time, and departmental action taken against the contractor may be intimated to audit.