PROJECT MANAGEMENT UNIT

No.

Query

Amount Involved

Our Response

1

Rent of Jeevika Office to Gram Haat

Rs. 16,000 per month aggregating to Rs. 2,70,883

If Jeevika had not taken services from SEWA Gram Mahila Haat, it would have taken services from outside.  However, as SEWA had the needed infrastructure, we were able to work faster and smoothly.  No service would have been availed, whether from SEWA or from outside sources, at free of cost.  

SGMH since in the initial years had spare facility available in its premises; it was decided to use the premises for the Jeevika project.  During the initial phase of the project it was proposed by the then Additional Commissioner- Rural Development only in a joint meeting on December 12, 2002 to use the premises of SGMH and pay towards the service and maintenance charges of the building and then move away from SGMH to independent premises. 

However, as discussed in the review meeting of May 26, 2005, the expenses of Rs. 2,70,883 and not Rs. 2,72,133 as has been stated in the report have been reversed and will be deposited back in the Jeevika account.  The rent was paid till June 19, 2004 and not till June 30, 2004. 

However, we request the chair to reconsider the expenses based on the above justification. 

The interim report is reflecting the future rent payable of Rs. 16,80,000  unnecessarily to inflate figures.  As such it does not form part of period covered under audit.

2

Rent by Jeevika office to BDMSA

Rs. 35,000 per month

Jeevika has not paid any rent to BDMSA.  Further, here also, report is reflecting the future rent payable of Rs. 19,60,000 to inflate figures and thereby misguiding the authorities

3

Expense made on Knowledge Sharing Workshop

Rs. 27,140

The expense of Rs. 27140 made for attending “Knowledge Sharing Workshop” during October 13, 2003 to October 15, 2003 was for Jeevika project.  Mr. Pravesh Sharma, Special Senior Advisor (IFAD and WFP Projects) vide his letter dated October 15, 2003 had clearly stated that this expenditure should be booked under Jeevika. 

4

Charges on vehicle usage, phone, fax

Rs. 77,222

Vehicle:Rs.56,276

Xerox : Rs. 2,214

Phone: Rs. 18,732

Comparative statement is attached which shows that if we had hired outside vehicle what would have been the total conveyance expenses in the year 2002-03 and 2003-04.  The total expenses actually incurred during this period are Rs. 56,276, while if we had hired vehicle, the expense would have been Rs. 61,469.

5

Categorisation of expenses not considered as Jeevika expenses

Rs. 11,641

·                     Rs. 2,700

·                     Rs. 100

·                     Rs. 8,841

Entire expenses of Rs. 11641 during the period 2002-03 and 2003-04 are made for Jeevika project only

6

Salaries of PMU staff higher than approved budget

Rs. 21,000

·                     Rs. 1,200

·                     Rs. 4,200

·                     Rs. 15,600

Statement of monthly salaries paid to PMU staff is attached

7

Insurance of Assets of Jeevika

Rs. 17,208

All the assets were under warranty.  Considering warranty period and assurance given by the suppliers, we were of the opinion that no insurance was required for the transitory period.  Now we have taken insurance of all the products for all the equipments on June 7, 2005. 

8

Expenditure incurred on traveling to Gandhinagar/Bopal

Rs. 9,180

·                     Rs. 1,944

·                     Rs. 1,944

·                     Rs. 1,944

·                     Rs. 1,620

·                     Rs. 1,728

With reference to the Query on aggregate expenditure of Rs. 9,180 incurred by single person traveling in a big car, we would like to mention that vehicle may have been booked by one person, but it does not mean that only one person traveled.  Also, most of the time Jeevika staff travels to Gandhinagar, they carry lots of documents and files with them which are very bulky.  Hence it becomes essential for them to take vehicle.  Also the travels pointed out by the auditor have been undertaken by senior staff members of Jeevika.  Also the timings of the meetings kept frequently changing so we had to hire for full day

9

Rent paid at Nakhatrana office while non-jeevika staff also works there

Rs. 7,500 per month

The office of Jeevika – KCA is at Nakhatrana.   Since 2002, staff of KCA has been deployed to Jeevika only and office space was also used for this purpose.  However rent was not charged till July 2004.  The rent of this office is paid directly to the landlord since August 2004.  Currently KCA is implementing only Jeevika project and there is no other activity being undertaken except Jeevika. 

10

Jeevika Vehicle being used for Non-Jeevika purpose

The vehicle of Jeevika is being used only by Jeevika employees.  The entry is made in the log book.  No single booking has been made for non-Jeevika.   

11

No books of accounts maintained by VDC

Village Development Committee (VDC) members are from the poorest of the poor households of the village.  Most of the VDC members are illiterate or semi-literate.  The accountants of the VDC are also educated upto class 5 or 7.  SEWA through Jeevika has been building the capacity of the accountants to facilitate them in maintaining the books of accounts.  They have been maintaining books of accounts on their own only since July 2004. The accountants of Vang, Trambo and Pithoranagar have prepared accounts as per their capacity.  They are semi-literates and they have to be given intensive trainings to write the books of accounts.  The process of training them is ongoing.  The representative from RDD and the special auditor both were shown books in Vang and Trambo.  At Pithoranagar, as the local accountant had gone out of station as he did not know about this visit, they were not shown the books of accounts.  The Coordinator of KCA had even asked the special auditor that if need be their books can be brought and shown to them at Ahmedabad office.

For queries on STFC

Rs. 3,83,372

Overview of SEWA Trade Facilitation Centre provided herewith which will enable to understand the role of STFC in Jeevika.  All the expenses done under the STFC-Jeevika has been part of AWPB and approved by PRC.

In the review meeting held on May 26, 2005, the point was raised as to how we can have such large quantum of expenditure in the initial years when we have not spent on production.  But we provided with the explanation on market research, development and product development and it was agreed upon because ultimately the artisans of the project area are the recipients of the benefit

Staff of STFC working on other projects

Rs. 1,20,200 per month

Jeevika is availing marketing services from STFC for marketing the products made by the artisans of KCA and BDMSA.  Therefore there is separate project for activities to be carried by STFC under Jeevika. This was prepared as soon as the company got registered. It was decided to freeze staff for the activity of Jeevika. STFC cannot have project based staff (for eg. staff responsible for exhibitions cannot alone be responsible for the exhibition of Jeevika since STFC organize more than 10 exhibitions in a year). In addition to that through this activity ultimately income of artisan women should increase. STFC currently has more than 40  team members but the salary of the team responsible for Jeevika activities has been  booked through debit note to Jeevika. This way STFC is taking responsibility of staff and can only put the expenditure if work has been done under Jeevika.

Rent to SGMH

Rs. 35,000 per month

Explanation given in point one above

Market Survey Expenses

Rs. 1,838

Approved in AWPB

Taj residency ironing expenses

Rs. 4,410

Rs. 4,410/- has been paid for the misc. charges and laundry exp to Taj. STFC had booked the room at Taj for the photo shoot for its new products. Taj has not charged for the room rent.  However, during the 2 days photo shoot sessions, the products needed steam press, which was needed on an urgent basis. These garments required special press and laundry for which prices were quite competent. 77 garments were pressed.  We have attached the photographs. (since photographer and the models were hired on per day basis we cannot lose the time, and the exp of photographer and models was very expensive and hence we have chosen a place where we have in-house services).

Taj Outlet

Rs. 17,500 per month

Building the capacity of the artisan women by giving them market information so they can compete in the mainstream market. In addition to that no. of women in the Jeevika project areas are having skill of embroidery which can become major source of employment on a sustainable basis. With the help of outlet in Taj, premium products have been showcased in the Taj and feed back have been taken. This has also increased no. of visitors at the Banascraft and Taj outlet and sales has also been increased. This helped the R&D for better product development.

All expenses related to marketing, product and design development, exhibitions booked in the project but sales not shown in the project

Jeevika is being implemented by SEWA, SEWA being member based organization does not do an commercial activity.  Hence, Jeevika is not been involved in sales or production activity.  STFC is also registered as facilitation company and as per the objectives cannot do any sales or production under the company.  STFC or SEWA is not involved in this activity and this has also been made clear to IFAD while preparing the project.  Project is only having market development costs, i.e. exhibition costs, product development costs so STFC can build market linkages and establish the market. 

Details of sales to Pyramid, Rohit Bal, Himanshu Soni, Beatrice, Mauritius based buyer

These are different buyers and asked for different samples for them as per their specifications.  However all these buyers are international buyers or are leading retailers of India and they prepare 2 years in advance, so these samples are for the future.  This exercise is very important for STFC and artisans since STFC tracks how capable artisans to fulfill orders

Charged rent for usage of building

Rs. 6000 per month

Separate space is provided of about 300 sq. ft where seven persons are totally dedicated for Jeevika work are working.  For this space, rent of Rs. 20 per sq. ft has been charged, which is as per market rate.  Quotations obtained for the market rate enclosed as annexure

Extra salary paid to staff at the time of closure of books twice in a year and one additional salary plus bonus

As regards remuneration and more particularly amount paid for closing and bonus at 20%, we would like to state that employees of the bank have been deputed for Jeevika project, except the manager and they have been paid as per the bank rules and regulations.  Their remuneration is so designed that the overall remuneration does not exceed as that mentioned in our AWPB submitted to GoG.  We are also submitting herewith comparative statement as to the budgeted remuneration and actual remuneration whereby you will find that the amount paid does not exceed the budget.  Please also note that the allowances are given for purpose that it does not attract other statutory liability and at the same time can be discontinued whenever felt necessary by the Bank.  In addition to this, we would like to state that other employees of the bank are also contributing for Jeevika work but their remuneration is not charged

Vehicle usage charge @ Rs. 7.2 per km.  Big vehicle, like Tata Sumo or Qualis hired even if field visit was undertaken by two persons

Comparative statement is attached which shows that if we had hired outside vehicle what would have been the total conveyance expenses in the year 2002-03 and 2003-04.  The total expenses actually incurred during this period are Rs. 81799 while if we had hired vehicle, the expense would have been Rs. 113464.  The above facts reveal that the expenditure incurred is not at all on higher side

Submit details of loans given to the district associations

As regards loans to district association, we would like to state that there is no such provision in the Jeevika project.  Our role is only confined to trainings and no loan funds are made available under Jeevika project.  Hence this information does not fall within the perview of “Jeevika project”

Objection on rent for camera charged

The camera has been used for documentation of training imparted under Jeevika project from time to time.  We have been charging rent of camera at the rate of Rs. 100 per training and we have imparted more than 100 trainings from time to time as per the attached annexure which justifies the nature of expenditure incurred.  We had asked for requirement of camera which was denied.  Later on the same was agreed upon and the same was purchased.  Thereafter from April 2005, such charge has not been raised

Xerox charges of Re. 1 per copy, the rate is on higher side

Please note that such charges have been charged only on two instances when it involved huge work, however in all other cases, we have not charged and has been provided free.  So if one would work out average, it will be much less.  Also the quality of paper and ink used by bank is much better.  However, quotations are enclosed herewith for rate comparison

Electricity, telephone expenses and furniture usage charges

These expenses have been charged only from the financial year 2004-05.  The approved budget for the three year period November 2002 to march 2005 is Rs. 746000, while the actual expense incurred is Rs,. 256749.  Accordingly you will agree that the above expenses are not on the higher side.  This explanation was also given during the course of audit in the Bank./

SEWA ACADEMY

Hall Rent paid to Gram Haat

24,250

If Jeevika had not taken services from SEWA Gram Mahila Haat, it would have taken services from outside.  However, as SEWA had the needed infrastructure, we were able to work faster and smoothly.  No service would have been availed, whether from SEWA or from outside sources, at free of cost. 

SGMH since in the initial years had spare facility available in its premises; it was decided to use the premises for the Jeevika project.  During the initial phase of the project it was proposed by the then Additional Commissioner- Rural Development only in a joint meeting on December 12, 2002 to use the premises of SGMH and pay towards the service and maintenance charges of the building and then move away from SGMH to independent premises. 

Expense has already been reversed as per the instructions received from PMU, on 31/3/2005 

Vehicle Usage Charge

. 13,671

(2002-2003)

b. 1,39,509

(2003-2004)

c. 18,314

(2004-05)

1,71,494

Comparative statement is attached which shows that if we had hired outside vehicle what would have been the total conveyance expenses in the year 2002-03 and 2003-04. The total expenses actually incurred during this period are Rs. 1,71,522, while if we had hired vehicle, the expense would have been Rs. 2,09,341.  Refer to Annexure 1. The above facts reveal that the expenditure incurred is not at all on higher side

Payments related to printing of posters

45,680

This issue was discussed and explained to you during your investigation. on 1/6/2005  by  Senior Co-ordinator, SEWA Academy. The expenses stated here is only in respect of printing of posters that are used for members education They have been printed in English (for sharing with IFAD, GOI) and Gujarati and no cost relating to preparing of the same has been charged again in the project.  The same are also used as training tool, time and again for Jeevika orientation trainings. If needed, the same can be verified with stock record maintained for the same.  Please note that as stated by you, on your continuous insistence, it was reversed, but the same being for Jeevika, it has been rebooked.  The posters are enclosed in Annexure 2.

Payment related to traveling, boarding and lodging made to Mishrasaheb to carry out CCNAA assignment

28,632

CCNAA assignment was given to four agencies including Dr. V. K. Mishra and expenses of Rs. 28,632 incurred by him was reimbursed.  This includes a sum of Rs.11060  for air fare for Delhi Ahmedabad Delhi which was reimbursed as he was working at Delhi during that period and had come for reviewing the assignment  Since this was for reviewing this assignment, i.e. before the assignment was given, it has to be reimbursed to him.  He is staying at Anand and was visiting Ahmedabad and also making other field visits.  After carrying out the work for few days, considering his age, it was difficult for him to commute from Anand by any other mode of transport.  Hence, it was agreed considering his expertise to reimburse the said expenses.  Please note that one such expenditure of Rs. 1661 is towards taxi charges for Radhanpur - Anand - Radhanpur, which he was reimbursed for his direct visit.  Naturally, if he would have come to Abd and gone there, it would have consumed both more time and more money.  Please also note that all other consultants were staying in Ahmedabad while Dr. Mishra was staying at Anand.  Consultancy assignment generally presupposes reimbursement of expenditure incurred for carrying out the work.

Considering the above facts, in our opinion, this expenditure is quite justifiable.

Printing of 5165 Calendars

53,875

This issue was discussed and explained to you during your investigation on 3/6/2005 by Senior Co-ordinator by SEWA Academy.  These calendars were specifically designed for Jeevika, especially to spread message of Jeevika.  The design is such that it captures all the activities that are planned to implement under Jeevika. The lay out was discussed with the then Commissioner-RDD and he had appreciated the idea and he had encouraged us to prepare more such IEC material for spreading message of Jeevika and encouraging the village members for active participation in implementation.  These were distributed to the Jeevika SEWA Mandal members.  They have proved to be very effective IEC tools. Please note that this is the same calendar which you normally see everytime during your every visit to Jeevika office.  They are duly displayed at three different places in the office.  However, for your ready reference copy of the same in Annexure 3

Workshop expenses at AMA

17,330

IFAD had sent Mr. P. A. Pathak, Senior Consultant (retd. CGM- NABARD) for arranging workshop on orientation and facilitation for implementation of the Jeevika programme. This programme was duly attended by all the sister organizations who are partners in this project.  This programme was organized at the instance of IFAD and the copy of their mail to that effect is enclosed here with as per Annexure 2.  We are also submitting herewith as per Annexure 4 list of participants along with the detailed minutes there of.  Please note that the sister organizations as stated above are part of Jeevika and hence the question of debiting these expenses to other organization does not arise. 

Printing of 3000 books on Sangathan

8,300

This issue was discussed and explained to you during your investigation from 28/5/2005 to 10/6/2005 by senior Co-ordinator, SEWA Academy.  The expenditure incurred is only in respect of printing of the book used for Jeevika project only. We have very much with us the records of the usage of the same for Jeevika project.  Approach of the Jeevika programme is to organise members into groups and explain to them the importance and benefits of group formation, identify good leaders,  quality of good leaders, difficulties faced in organising and forming groups and how to overcome these difficulties.  “Sangathan" is used as literature in providing these trainings.  In Jeevika, these trainings are provided to the Jeevika SEWA Mandal members.  The booklet of Sangathan is enclosed in Annexure 5.  This booklet has been prepared by SEWA in 2002 prior to start of Jeevika.  This booklet is used in all the projects for all our members.  For Jeevika, we utilised this booklet and hence have booked only reprinting costs.  Since this is reprinting of old book, this obviously bears SEWA logo and name.  Furthermore, please find enclosed the stock details of the distribution of these booklets in Annexure 6.  SEWA has not charged any intellectual charge on the same but only reprinting charges.

Printing of Research Brochures

22,000

During our discussion with the Special auditor, we found that the total expenditure of the same was not fully identifiable with the Jeevika project.  Hence these expenses have been reversed.  Please note that this is a purely a mistake that has taken place.

Printing of posters related to Health

31,000

This issue was discussed and explained to you during your investigation from 28/5/2005 to 10/6/2005 by senior Co-ordinator, SEWA Academy.  These health posters are printed for Jeevika project only.  The objective of printing these posters is to facilitate integrated development.  The posters were translated in Gujarati so that it becomes more acceptable in the villages.  Jeevika’s logo is printed on these posters. This expense is not related to health as it is an IEC expense.  SEWA Academy’s objective is to give integrated training on all subject such as organizing, social security, capital formation and capacity building.  Therefore, any material that is related to the above subjects is booked in Academy.  In other words, it is the training tool which is being used needs to be seen rather than the contents thereof making it allotable to different entity.  Please note that it has to be seen as a holistic concept rather than the content thereof making it not incurred for the same.  For your ready reference, we are enclosing not only health but modules there of  in Annexure 7.  Please note that this expense forms part of project proposal and the same is duly reflected in the Appraisal Report.  The copy same in Annexure 8.

Printing and developing charges of “Sahiyari Sharuat “book

25,250

This issue was discussed and explained to you during your investigation from 28/5/2005 to 10/6/2005 by senior Co-ordinator, SEWA Academy.  Under Jeevika, integrated social protection is directly related to objectives of Jeevika.  As per the project design refer para 137 on page 31. Jeevika has to integrated Savings along with Insurance under Micro Finance for the SHGs. Hence, the trainings have to be undertaken. This book was used in training, orienting and creating awareness amongst the trainees.    This booklet was used in the project area only and forms part of IEC material.   It is the experience that when handouts are given in the trainings, trainees are able to understand and attend the training better.  Also, when at later stage, they have some doubt; they can refer to the material and immediately resolve their doubt.  Also, others in the village can refer and this helps in spreading the message to mass.  Jeevanshala team members had provided their expertise in preparing the literature of the same, hence payment of Rs. 4000 was made to them as resource person charges for the same. 

Copy of this book is enclosed in Annexure 9

Please note that these expenses should be recorded for Jeevika

Printing charges of Evaluation Posters

37,594

This issue was discussed and explained to you during your investigation from 28/5/2005 to 10/6/2005 by senior Co-ordinator, SEWA Academy.  These posters were printed for self evaluation of the Self Help Groups.  These posters are not related to SEWA – nursery as is stated in the report but is related to self help groups of Jeevika.  Please note that the said conclusion has been arrived at on the basis of approval note of purchase committee. As several similar nature of work are executed by the organization, the approval is qua the vendors as to the rate rather than qua the related work.  Enclosed herewith is the copy of the evaluation poster in Annexure 10

We would further like to make a mention here that kindly consider the expenditure incurred with relevant proof thereof (which was duly discussed) in its real spirit rather than going into the other irrelevant details for the purpose only of making reference and raising query that it is not pertaining to the project.  The vendor is approved generally for longer duration so as to save time and cost on account of inviting quotations every time. The proof thereof showing name of Jeevika was seen by you during the course of verification of voucher.  Still however, for your further satisfaction we are submitting herewith copy thereof as per Annexure 11.  from which it is clear that it is the expenditure for the project which was duly checked by you.  

Since it is expenditure for the project, the question of recovery does not arise at all.