Indian Education Repository

The performance audit shows poor financial management of funds by the states with issues like retention of huge balances, non-adherence to the expenditure norms, request for high budget allocation in State proposals, short utilisation of Research, Evaluation, Monitoring and Supervision (REMS) funds by 9 states, non-adherance of the timeline by the Chartered Accountants for certification of accounts of the State Implementing Societies. In terms of compliance to the RTE norms, it found issues such as regular household surveys by local authorities were not conducted, UDISE data was incomplete/inaccurate, transport and aid benefits were no provided to students with special needs, lack of provision of ECCE, cases of irregular procurement of textbooks, uniforms, computers etc., adverse PTR, excess/irregular reimbursement of per-child expenditure to unaided schools and detention of children above the age of 14 years in violation of Section 16 of the Act. Also observing that periodic monitoring and evaluation of local governance has not occurred, the Committee recommends a review of the timeline to align it to the budget formulation exercise in GoI, reconciliation of unspent balances at the end of the year with the opening balance of the succeeding years, strict adherence to the Financial Management and Procurement (FM&P) Manual by the CAs, state governments conducting household surveys and reevaluate requirements of teachers, regular supply fo benefits and aid, reconstitution of the National Advisory Council, strengthening SMCs and ensuring hat internal audit of the scheme at Central level is conducted regularly.