WE THE PEOPLE
Instead of facilitating, GPFO has irked State employees, crores of rupees missing in their debit and credit accounts
Hence they call for overhauling of the Organization to ensure viable mechanism between Fund Offices and Disbursing officers
By: Zedan Ali Khan
Srinagar: With a large list of complaints against the Office of the Accountant General Jammu and Kashmir Srinagar, the State Government ordered the transfer of work relating to the maintenance of individual General Provident Fund Ledger Accounts of State Government employees from the said Office to the State Government in March 1984 for being maintained at respective district headquarters from April 1986. For this purpose, 14 District Fund Offices were established at District Headquarters, while a General Provident Fund, Migrant Cell, Jammu was established in the year 1991 for maintenance of G.P Fund Accounts of the employees. A GP Fund Move Cell, Civil Secretariat was created in the year 1992 for maintenance of the GP Fund Accounts of employees moving with Darbar Shift of Capital from Srinagar to Jammu and vice-versa and a GP Fund Cell for police personnel was established in June 2006.
It is worth mentioning that internal control mechanism in a Government Department is meant to ensure that its activities are carried out according to the prescribed rules and regulations and in an economical, efficient and effective manner. An internal control system and strict adherence to status codes and manuals minimize the risk of errors and irregularities and help to protect resources against loss due to waste, abuse and mismanagement. A review of the functioning of the internal control mechanism during 2002-03 to 2006-07 in the General Provident Fund Organization (GPFO) (Finance Department), Government of Jammu and Kashmir has revealed deficient financial control, and poor operational and supervisory control in the Organization. Besides Unit Broad Sheet (Budget Head-wise) and Consolidated Broad Sheets in respect of the GP Fund accounts of the subscribers required to be maintained under GP Fund Manual had not been maintained.
It is shocking to learn that lack of initiative and non-adherence to the manualised procedure has led to accumulation of department un-posted debits and credits for Rs. 64.21 lakh and Rs. 14.10 crore respectively. Laxity in maintenance of accounts and lack of coordination between the Drawing and Disbursing Officers ND Fund Offices has resulted in increase in non-operative accounts and accumulation of negative balance of Rs. 2.95 crore.
A detailed scrutiny of records of the concerned Organization has established that non-existence of a viable mechanism between sister Fund Offices and Drawing and Disbursing Officers has led to non-finalization of Final Refund cases of the employees and non-adjustment of transfer Advices.
The performance review of the GPFO for the period 2002-03 to 2006-07 was conducted by the Audit during June 2005 to December 2005 and January/February 2007. Records of GP Fund subscribers in 14 Fund Offices were test checked on simple random sampling method. The audit objectives were to assess the adequacy and effectiveness of the internal controls of the Department whether GP Fund accounts were maintained efficiently and correctly. Whether Transfer Advices were adjusted timely. Whether Final Refund cases were settled timely and to assess effectiveness of financial, budgetary and administrative controls.
It has come to surface that against the allocation of Rs. 67.37 crore, Rs 65.23 crore was released to the Department between 2002-03 and 2006-07. The test check conducted in January 2007 has revealed that non-operation of some Incentives, advertisement and publicity, training, etc. of the object heads had led to persistent savings under these heads indicating framing of un-realistic proposals at district/divisional level and lack of scrutiny in the Directorate Office.
However, the Deputy Director (Funds) Central, has stated that savings occurred due to late release of funds by the Finance Department and that, steps would be taken for utilization of allotted funds in future. It was further stated that demand for grants in respect of non-operative object heads shall not be projected in future.
Hence the employees call for overhauling of the Organization to ensure viable mechanism between Fund Offices and Disbursing officers. They continue to face problem of reconciliation of their accounts and as such removal of irritants becomes necessary to maintain their savings in a transparent manner.
More 
