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EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 1642 CUTTACK, MONDAY, AUGUST 26, 2019 /BHADRA 4, 1941

LAW DEPARTMENT

NOTIFICATION

The 20th August, 2019

S.R.O. No. 297/2019―In exercise of the powers conferred by Section 18 of the Legal Services Authorities Act, 1987 (39 of 1987), the accounts of the Odisha State Legal Services Authority for the years, 2009-10, 2011-12 and 2015-16 has been audited by the O/o. Principal Accountant General Odisha, Bhubaneswar and the report thereto of the Comptroller and Auditor General of India is hereby published for being laid before the Odisha Legislative Assembly.

[No.8460‒LSA-07/2019/L.]

By Order of the Governor

SASHIKANTA MISHRA

Principal Secretary to Government

(Audit Report for the year, 2009-10, 2011-12 and 2015-16 be inserted)

Separate Audit Report of the Comptroller and Auditor General of India on the

Accounts of Orissa State Legal Services Authority, Cuttack for the year ending on

31st March, 2010.

We have audited the attached Balance Sheet of Orissa State Legal Services Authority, Cuttack as at 31st March, 2010 and Income and Expenditure Account / Receipt & Payment Account for the year ended on that date under section 20 (1) of the Comptroller and Auditor General of India's (Duties, Power and continuous of Service) Act, 1971 read with Para. 18 of Chapter-V of the Legal Services Authorities Act, 1987.

The Audit of the Authority including 30 District Legal Services Authorities has been entrusted for the period, 2009-10. These financial statements include the accounts of 30 District Legal Services Authorities, 72 Taluk Legal Services Committees and one High Court Legal Services Committee. These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. This separate Audit Report contains comments of the Comptroller and Auditor General of India on accounting treatment only with regard to classification, conformity with the best accounting practices, accounting standards and disclosure norms etc. Audit observation on financial transactions with regard to compliance with the Law, Rules & Regulations (Propriety and Regularity) and Efficiency-cum-Performance aspects etc. if any reported through Inspection Report / C & AG's Audit Reports separately.

3. We have conducted our audit in accordance with auditing standard generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosure in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion.

4. Based on our audit we- report that

(i) We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit.

(ii) The Balance Sheet and Income & Expenditure Account / Receipt & Payment Account dealt with by this report have been drawn up in the format prescribed by the Government of India in consultation with the Comptroller and Auditor General of India.

(iii) In our opinion, proper books accounts and other relevant remits have been maintained by the Orissa State Legal Services Authority, Cuttack as required under Para. 18 of Chapter-V of the Legal Services Authorities Act,1987 in so far as it appears from our examination of such books.

(iv) We further report that

A. Balance Sheet -2009-2010

1. Liabilities.

1.1 Current Liabilities.

1.1.1 Establishment expenses (Rs.24390276.00.

This head was understated by Rs.3527265. (Salaries Rs.1133303+ 30 % Arrear Pay Rs.2302251/- + Arrear DA 1/10 to 3/10 Rs.91711/-) due to non- provision of liabilities incurred during 2009-10 and paid during 2010-11. Consequently expenditure head was understated to the same extents.

1.1.2 Other Administrative expenditure Rs.785967.00

This head was understated by Rs.35,68,264/-( other contingency Rs.23799 and TE Rs.17200 ) being the liabilities incurred during 2009- 2010 and paid during 2010-11,consequently the expenditure head was understated by the same account

1.2. Asset

1.2.1. Fixed Asset (Rs.1283360.00) Sch.1

This was understated by of Rs.12,53,880/- due to non accountal of assets i.e. Computers printers, ;Xerox mechanics, A.C., Furniture etc purchased for different Districts Legal Services Authorities, during the 2009-10. Consequently the expenditure head was overstated to the same extent.

1.2.2 Depreciation

Depreciation for Rs.3,85,517/- was not provided on Fixed Assets acquired during the year,2009-10. Hence, this head was understated by Rs.3,85,517.00 and consequently, Fixed Assets head was overstated to the same extent.

1.2.3. Current Asset Rs.121,34,408.71 (p)(Cr.)

Cash and Bank balances.

This was overstated by Rs.2800/- due to excess exhibition of closing balance of cash at Bank as on 31st March, 2010 in respect of Rairakhole Taluk Legal Services Committee. Consequently, the expenditure head was understated to the same extent.

1.2.4 Current Assets Rs.121,34,408.71(p)(Cr.)

Cash and Bank balances.

This was understated by Rs.55,898/- due to non-accountal of closing balance of Rs.47,711/- of General Cash Book and Rs.8187/- of Permanent Advance Cash Book as an 31.3.2010. Consequently the expenditure head was overstated to the same extent.

12.5 Current Assets Rs.121,34,408.71 (p) (Cr.)

The head current asset was understated by Rs.48,495.35 due to non-accountal of closing balance of postage stamps as on 31.3.2010 Consequently expenditure head was overstated to the same extent.

B. Income and Expenditure:

-NIL-

C. Receipt and Payment Account

-NIL-

D. Accounting Policy

The net effect of the comments given in the preceding paras was that assets was understated by Rs.9,69,956.35 & liabilities was understated by Rs.3568264 and expenditure over income was understated by Rs.2598307.65.

E. General:

As per Annexure-I.

F. Grants-in-Aid

Out of the available funds of Rs.462.11 lakh including grants received from National Legal Services Authorities (NALSA) (Rs.66.00 Lakh) from Government of Orissa (Rs.15.00 lakh) budget allotment (Rs.254.03 lakh) carry over balance of previous year (Rs.117.18 lakh) and other receipts (Rs.9.90 lakh), (Rs.12 lakh was received in the month of March 2010), the organization could utilize a sum of Rs.340.77 lakh leaving a balance of Rs.121.34 Lakh as on 31st March, 2010.

(iv) Subject to our observations in the preceeding paragraphs, we report that the Balance Sheet, Income & Expenditure / Receipt & Payment Account dealt with by this report are in agreement with books of accounts.

(v) In our opinion and best of information and according to the explanation given to us, the said financial statements read together with in Accounting Policies and Notes on Accounts and subject to significant matters stated above and other matters mentioned in ANNEXURE-I, to this Audit Report give a true and fair view in conformity with accounting principles generally accepted in India.

(a) In so far as it relates to the Balance Sheet, of the state of affairs of

Orissa State Legal Services Authority, Cuttack as at 31st March,2010 and

(b) In so far as it relates to Income & Expenditure and the surplus for the year ended on the date.

For and on behalf of the

Comptroller & Auditor General of India

Place : Bhubaneswar

Dated: 5.10.2010

PRINCIPAL ACCOUNTANT GENERAL (CIVIL AUDIT) ORISSA5

ANNEXURE -I

Adequacy of Internal Audit System

The Internal Audit System was not functioning in the organization.

System of physical verification of Fixed Assets

The Fixed asset Register was not maintained and physical verification of assets was not conducted to ascertain the serviceability of these assets.

Non maintenance of Central Stock Account Register

For the stock issued/ acquired by Unit Officers no register was maintained.

Dy. Accountant General(IC-II)

Separate Audit Report of the Comptroller and Auditor General of India on the

Accounts of Odisha State Legal Services Authority, Cuttack for the year ended

31th March, 2012.

We have audited the attached Balance Sheet of Odisha State Legal Services Authority, Cuttack as at 31 March, 2012 and the Income and Expenditure Account/Receipts & Payment Account for the year ended on that date under Section 20 (I) of the Comptroller and Auditor General's (duties, Powers and conditions of Service) Act, 1971 read with Para. 18 of Chapter-V of the Legal Services Authorities Act, 1987.

The audit of the authority including 30 District. Legal Services Authorities has been entrusted for the period 2011-12. These financial statements include the accounts of 30 District Legal Services Authorities, 73 Taluk Legal Services committees and one High Court Legal Services Committee. These financial statements are the responsibility of the Odisha State Legal Services Authority's management. Our responsibility is to express an opinion on these financial statements, based on our audit.

2. This Separate audit Report contains comments of the Comptroller and Auditor General of India (CAG) on the accounting treatment only with regard to classification, conformity with best accounting practices, accounting standards and disclosure norms, etc. Audit observations on financial transactions with regard to compliance with the Law , Rules and regulations (Propriety and Regularity) and efficiency-cum-performance aspects, etc., if any are reported through Inspection Reports/CAG's Audit Reports separately.

3. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial, statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosure in financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion.

4. Based on our audit we report that

(i) We have obtained all information and explanations which to the best of our knowledge and. belief were necessary for the purpose of audit.

(ii) The Balance Sheet and Income & Expenditure Account/Receipt & Payment Account dealt with by this report have been drawn up in the format prescribed by the Government of India in consultation with the Comptroller and Auditor General of India.

(iii) In our opinion, proper books of accounts and other relevant records have been maintained by the Odisha State Legal Services Authority, Cuttack as required under Para. 18 of Chapter-V of the Legal Services Authorities Act, 1987 in so far as it appears from our examination of such books.

(iv) We further report that

A. Balance Sheet

1. Asset.

1.1 Fixed Asset. (`5662667.00)Sch.1

(i) This was understated by of ` 455960.00 (as detailed in Annexure-A) due to wrong classification and booking of the cost of assets and non accountal assets of ` 572274.00 during 2011-12 under revenue expenditure head. This has resulted in overstatement of expenditure of ` 572274.00 and understatement of capital fund ` 116314.00 during 2011-12.

(ii) Advance of ` 550416.00 was paid for vehicle (Bolero) on 30th March, 2011 against which the bolero was delivered in 2011-12. The asset was included in the year 2010-11. Advance payment of ` 601633.00 was made for another Bolero in 2011-12 against which the vehicle was delivered in 2012-13 but the asset was included in 2011-12. Due to above capital fund was understated by ` 160423.00 due to excess charge as depreciation and the expenditure was overstated by ` 601633.00 and asset was understated by ` 441210.00.

B. Income and Expenditure:

2.1 Establishment expenses (` 57383590.00) Sch-3

This head was understated by `310746.00 due to non provision of Establishment Expenses (Pay +Arrear DA+HRA+Other Allowance) pertaining to the period 2011-12. Consequently, Liabilities Provisions was understated to the same extents.

2.2 Administrative Expenses (` 2757485.00) Sch-4

(i) This head was understated by `112206.00 due to understatement of expenditure of `96000.00 towards rates, rent and taxes, `23027.00 towards other contingencies and overstatement of `6821.00 towards electricity. Consequently capital fund was overstated to the same extent.

(ii) This head was overstated by `11194.00 towards telephone charges for which advance payment was made to BSNL but shown as spent during 2011-12. Consequently current asset was understated by ` 11194.00.

(iii) This head was over stated by `29321.00 due to charging the entire cost of postage stamps without excluding unutilised balance lying with District Legal Services Authorities as on 31st March, 2012.

Consequently, current asset was understated to the same extent.

2.3 Depreciation (`1229951.00) Sch-1

This head was overstated by ` 27901.00 due to non charging/wrong charging of depreciation on various fixed assets i.e. Furniture & Fixture.

Consequently, both the Fixed Asset and Income for the year were understated to the same extent.

C. Receipt and Payment Account (F.S-1) -NIL-

D. Accounting Policy

The financial statement has been prepared on the basis of historical cost convention in accordance with normally accepted accounting policies as followed consistently by the Authority.

Depreciation on block of fixed assets is provided on written down value method as per income tax rules.

Net Impact:

The net effect of the comments given in the preceding paras was that assets as on 31 March 2012 were understated by ` 937685.00 & Liabilities were overstated by ` 118314.00. The expenditure was overstated by ` 819371.00 as detailed in Annexure-B.

E. General:

I. Adequacy of Internal Audit/Internal control system.

There is no Internal Audit/Internal Control system in the organisation.

II. System of physical verification of Fixed Assets/Inventories.

The Fixed Asset Register was not maintained properly and physical verification of assets/inventories was not conducted since inception.

III. Regularity in payment of statutory due.

The statutory dues are being deposited in time as there was no closing balance outstanding at the .end of 31st March, 2012 financial year. The staffs are being paid from regular allotment of Law Department and the statutory dues are being deducted by the Treasury at the time of drawal of bills.

F. Grants-in-Aid

Out of the available funds of ` 3242.451akh (grants received from National Legal Services Authorities (NALSA) ` 158.43lakh, from Law Department, Government of Odisha ` 23.00 lakh, Budget allotment ` 844.37 lakh, carried over balance of previous year ` 1165.361akh, 13th Finance Commission Grants for construction of ADR Centres ` 815.22 lakh, 13th Finance Commission Grants for Lok Adalat ` 199.80 lakh, Misc. Grant ` 5.42 lakh and other receipts ` 30.851akh) the organisation could utilise a sum of ` 1717.061akh leaving a balance of ` 1525.391akh as on 31st March, 2012.

(iv) Subject to our observations in the preceding paragraphs, we report that the Balance Sheet and Income and Expenditure/Receipt and Payment Account dealt with by this report are in agreement with books of accounts.

(v) In our opinion and to the best of our information and according to the explanation given to us, the said financial statement subject to significant matters stated above and other matters mentioned in ANNEXURE-I, to this Audit Report give a true and fair view in conformity with accounting principles generally accepted in India.

(a) In so far as it relates to the Balance Sheet, of the state of affairs of Odisha State Legal Services Authority, Cuttack as at 31 March, 2012 and

(b) In so far as it relates to Income and Expenditure Accounts of the surplus for the year ended on the date.

For and on behalf of the Comptroller &. Auditor General of India

Bhubaneswar

(Amar Patnaik)

Dated: 14/03/2013 ACCOUNTANT GENERAL(G & SSA) ODISHA10

ANNEXURE-I

I. Adequacy of Internal Audit/Internal control system.

There is no Internal Audit/Internal Control system in the organisation.

II. System of physical verification of Fixed Assets/Inventories.

The Fixed Asset Register was not maintained properly and physical verification of assets/inventories was not conducted since inception.

III. Regularity in payment of statutory due.

The statutory dues are being deposited in time as there was no closing balance outstanding at the end of 31 March, 2012 financial year. The staffs are being paid from regular allotment of Law Department and the statutory dues are being deducted by the Treasury at the time of drawal of bills.

Deputy Accountant General (GSA)

ANNEXURE-A

ANNEXURE-B

Statement showing the net effect

NET ASSET UNDERSTATED=937685 NET EXP. OVERSTATED=819371 (-) NET LIABILITIES OVERSTATED=118314

TOTAL=819371 TOTAL=81937113

SEPARATE AUDIT REPORT

Separate Audit Report of the Comptroller and Auditor General of India on the

Accounts of Odisha State Legal Services Authority, Cuttack for the year ended

31st March, 2016

We have audited the attached Balance Sheet of Odisha State Legal Services Authority. Cuttack as at 31 March 2016 and the Income and Expenditure Account/Receipts & Payment Account for the year ended on that date under section 19 (2) of the Comptroller and Auditor General's (Duties. Powers and Conditions of Service) Act, 1971 read with Section 18 (2) of the Legal Services Authorities Act, 1987. These financial statements include the account of 30 District Legal Services Authorities, 74 Taluks Legal Services committees and one High Court Legal Services Committee. These financial statements are the responsibility of the Odisha State Legal Services Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. This Separate Audit Report contains comments of the Comptroller and Auditor General of India (CAG) on the accounting treatment only with regard to classification, conformity with best accounting practices, accounting standards and disclosure norms, etc. Audit observations on financial transactions with regard to compliance with the Law, Rules and Regulations (Propriety and Regularity) and efficiency-cum-performance aspects, etc., if any are reported through Inspection Reports/CAG's Audit Reports separately.

3. We have conducted our audit in accordance with Auditing Standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit includes examining, on a test basis. evidences supporting the amounts and disclosure in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion.

4. Based on our audit we report that

(i) We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of audit.

(ii) The Balance Sheet and Income & Expenditure Account/Receipt & Payment Account dealt with by this report have not been drawn up in the format prescribed by the Government of India in consultation with the comptroller and auditor General of India.

(iii) In our opinion, proper books of accounts and other relevant records have been maintained by the Odisha State Legal Services Authority, Cuttack as required under Para. 18 of Chapter-V of the Legal Services Authorities Act, 1987 is so far as it appears from our examination of such books.

COMMENTS ON ACCOUNTS

A. Consolidated Balance Sheet

1.1 Capital Fund and Liabilities

Liabilities for expenses:` 99,29,068

The above did not include a sum of ` 34,775 payable towards service rendered by the chartered accountant firm for preparation of annual accounts for the year 2015-16 and preparation of utilisation certificates for the period from 2007-08 to 2015-16. As a result of which the head 'Liability for expenses' was understated by ` 34,775 with corresponding overstatement of 'Surplus of income over expenditure' by the same amount.

1.2 Assets

Fixed Assets (Schedule-2)

Buildings: ` 11, 88, 69,322

The above was overstated by ` 319, 92,917 due to:

• Over-statement by ` 75,09,245 on account of wrong capitalisation of cost of ADR centre, Jharsuguda for ` 83,43,606 and charging depreciation of ` 834,361 thereon though the same was put to use in the subsequent year 2016-17 (July 2016);

• Overstatement by ` 244, 83,672 on 11 ADR buildings on account of excess capitalisation of ADR building, Sonepur and delayed capitalisation (10 buildings)and charging excess depreciation of ` 4412 thereon as detailed in Annexure-A.

Consequently, 'Building under construction' was understated by ` 83,43,606, 'Current assets-advances with Executive Engineers R&B for construction of ADR centres' understated by ` 2,44,79,260 and 'Expenditure depreciation' was overstated by ` 8,34,361 with overstatement of Capital fund by ` 4412.

Net Impact:

The net effect of the comments given in the preceding paras was that assets as on 31 March, 2016 were understated by ` 8,29.949 and Liabilities were understated by ` 30,363and Expenditure was overstated by ` 7,99,586.

B. General

1.1 A sum of ` 6,94,560 towards cost of audit of the annual accounts for the years, 2011-12 to 2014-15 was claimed by the office of the Accountant General (G&SSA), Odisha in the month of November 2016 under section 18 (2) of the Legal Services Authorities Act, 1987 and the same though approved by the Finance Department in principle but the authority has sought for clarification from administrative department which should have been disclosed in the annual accounts under contingent liability.

C. Grants-in-Aid

Out of the available funds of ` 41.74,27,627 the organisation could utilise a sum of ` 5,42,93,79 leaving a balance of ` 36,31,33,836 unutilised as on 31 March, 2016.

G. Management letter: Deficiencies which have not been included in the Audit Report have been brought to the notice of the Member-Secretary, OSLSA through a management letter issued separately for remedial/corrective action

(iv) Subject to our observations in the preceding paragraphs, we report that the Balance Sheet and Income and Expenditure/ Receipt and Payment Account dealt with by this report are in agreement with books of accounts.

(v) In our opinion and to the best of our information and according to the explanation given to us, the said financial statement subject to significant matters stated above, to this Audit Report give a true and fair view in conformity with accounting principles generally accepted in India.

(a) In so far as it relates to the Balance Sheet, of the state of affairs of Odisha State Legal Services Authority, Cuttack as at 31 March, 2016 and

(b) In so far as it relates to Income and Expenditure Accounts for the year ended on the date.

(R Ambalavanan)

Accountant General (G&SSA)

ANNEXURE-A Statement of effect of delay in capitalisation of assets i.e. buildings put to use during 2012-13, 2013-14, 2014-15 and 2015-16 resulting in understatement of expenditure (depreciation) and capital fund Method of calculation of depreciation: WDV.

Rate of Depreciation: 10 per cent for assets put to use for 180 days or more during the year and 5 percent for those put to use below 18

days as per Section 32 of Income Tax Act

'Addition ` 17,62,800 expenditure incurred up to Dec 2015 added during 2015-16

For above 11 projects: Depreciation overstated by: `223,54,433 less `22350021 ( e xc l J h ar s u g u d a) = : `4412

Gross block overstated for above 11 buildings by ( `13,37,10,098 (`14,20,53,704 less Jharsuguda ` 8343606 wrongly capitalised) less `1092,30,838 = ` 2 4 4, 7 9 , 2 6 0 (For Sonepur:` 359,37,200 overstated and for Berhampur ` 114,57,940 understated) I, Net block overstated for above 11 buildings by: ` 2,44,83,672 i.e. .11,13,60,077 (11,88,69,322 less Jharsuguda ` 75,09,245) provided against ` 868,76,405 as above

Sr. Audit Officer/GSA