The Comptroller and Auditor General of India (CAG) has criticised the Kerala Sustainable Urban Development Project (KSUDP), Thiruvananthapuram, for failure to exercise proper internal checks that led to a misappropriation of Rs 1.77 lakh.
The project director, KSUDP, had issued sanction for drawal of pension contribution of Rs 6.41 lakh pertaining to the period between 2006 and December 2010 in respect of six employees on deputation and remittance into sub-treasury, Vellayambalam.
“Accordingly, deputy director (finance) drew Rs 6.41 lakh from the project fund vide cheque number 525350 dated March 25, 2011. In the day book of March 25 the amount - Rs 6.41 lakh - was shown as payment of salaries and wages. However, only Rs 4.64 lakh relating to five employees was remitted into treasury on March 30, 2011 and the balance of Rs 1.77 lakh was neither remitted into treasury nor returned to KSUDP,” says the CAG report on Local Self-Government Institutions for the year ended March 2012 that was released the other day.
Project director, KSUDP, stated that the required cash book was not maintained during the period audited.
“Failure of head of the institution in discharging his responsibility towards proper maintenance of cash book as well as challan register, along with absence of monthly reconciliation with treasury, led to misappropriation of money remaining unnoticed until it was pointed out by the audit in April 2012. Proper internal checks would have averted such a situation,” the CAG report pointed out.