Detailed reports of the 62 villages

Transcription

1 1 S o c i a l A u d i t R e p o r t : P a r t I I

2 SOCIAL AUDIT REPORT PART II: DETAILED REPORTS November S o c i a l A u d i t R e p o r t : P a r t I I

3 Contents 1. Ariyalur District Sendurai village, Sendurai block, Ariyalur District Viluppanankurichi village, Thirumanur block, Ariyalur District Coimbatore district Periyapodu Village, Anaimalai Block, Coimbatore District Nachipalayam Village, Madukkarai Block, Coimbatore District Puliyampatti village, Palladam block, Coimbatore district Cuddalore district Nedunkulam village, Mangalore block, Cuddalore T.V.Puthur village, Viruthachalam block, Cuddalore Dharmapuri district Madehalli village, Pennagaram Block, Dharmapuri district Vadugupatti village, Harur Block, Dharmapuri district Irulapatti village, Pappireddipatti Block, Dharmapuri district Dindigul district Puliyampatti Village Thoppampatti Block Dindugal District K.Pudukottai Village, Reddiyarchatram Block, Dindugal District Kottur Village, Nilakottai Block, Dindugal District Kancheepuram district Minal Chitambur, Acharapakam, Kancheepuram Kunavakam village, Uthramerur block, Kancheepuram district Karur district Mullipadi Village, Kadavour Block, Karur District Senthamangalam West village, Aravakurichi block, Karur Baganatham village, Thonthonimalai block, Karur District Krishnagiri district Palayamkottai Village, Thalli Block, Krishnagiri District Naickanur Village, Uttankarai Block, Krishnagiri District Santhanapalli Village, Kelamangalam Block, Krishnagiri District Madurai district Kuppalanatham Village, Sedapatti Block, Madurai District Thumbakulam Village, Kallipatti Block, Madurai District Nagapattinam district Irukkai village, Keezhvelur, Nagapattinam district Neikupai village, Tirumarugal block, Nagaipattinam S o c i a l A u d i t R e p o r t : P a r t I I

4 11. Namakkal district Mavurettipatty, Elachipalaym block, Namakkal district Thottiyampatti village, Vennanthur block, Namakkal district Koothanatham village, Mallasamuthiram block, Namakkal district Perambalur district Melamathur village, Alathur block, Perambalur district Puduvettaikudi village, Veppur block, Perambalur Pudukottai district Panampatti Village, Annavasal Block, Pudukkottai District Pallathupatti Village, Kunrantarkovil Block, Pudukkottai District Ramanad district A Puthur village, Bogalur block, Ramanad district Keezhselvanur village, Kadaladi block, Ramanad Salem district Valayakaranur village, Ayothiyapattinam block, Salem district Thalaivasal village, Thalaivasal block, Salem district Nallur tribal village, Yercaud block, Salem district Sivagangai district Udayanoor village, Ilayankudi block, Sivagangai Tirumalai Koneripatti village, Sivagangai block, Sivagangai Theni district Kamarajapuram village, Bodinayakanur block, Theni district Ramakrishnapuram Village, Andipatti Block, Theni District Tiruvannamalai district Oorgoundanur village, Jawvathu hills block, Thiruvannamalai Perumpakkam village, Chengam block, Thiruvannamalai Thorapadi village, Pudupalayam block, Thiruvannamalai Thoothukudi district Inam Arunasalapuram village, Pudhur block, Thoothukudi district P. Meenachipuram village, Vilathikulam block, Thoothukudi district Vedanatham village, Ottapidaram block, Thoothukudi district Tirunelveli district Thenpathu village, Manur Block, Tirunelveli district Tharugapuram village, Vasudevanallur block, Tirunelveli district Umayathalaivan patti village, Kuruvikulam Block, Tirunelveli district Tiruvallur district S o c i a l A u d i t R e p o r t : P a r t I I

5 21.1 Sirigumi panchayat, Thiruthani block, Thiruvallur district Kannigaiper panchayat, Ellapuram Block, Thiruvallur District Peritivakam Village, Poondi Block, Tiruvallur District Tiruvarur district Palayakudi Village, Thiruthuraipoondi Block, Tiruvarur District Thandalai village, Thiruvarur block, Thiruvarur district Vellore district Villupuram district Vadhanur village, Kandamangalam block, Villupuram District Ariyaperumanur village, Kallakurichi block, Villupuram District Thagamtheerthapuram village, Chinnasalem block, Villupuram District Virudhunagar district Isali Village, Narikudi Block, Virudhunagar district Kundaeruppu village, Vembakottai Block, Virudhunagar District S o c i a l A u d i t R e p o r t : P a r t I I

6 1. Ariyalur District 1.1 Sendurai village, Sendurai block, Ariyalur District Social audit dates: Area 1. Village Overview 2. PIP: BPL: 3. Individual assistance Findings Situated 20 km from Ariyalur is this village with 1855 households spread across 5 habitations namely - Ilangaiseri, Sendurai, Kattaiyankudikadu, Ambedkar Nagar, Neivanam. Community aspects: The village has about 211 ST families is about 11% of the population, there is a separate VPRC functioning for them. SC Population of the village is about 28%. About 50% is BC. Social audit was conducted in the main village. Political aspects: The Panchayat Talaivar is Selvaraj (BC community) Livelihood: Agriculture (maize or sollam, millets or kambu, nellu, agricultural labour, NREGA) Total Population of the village is Mrs. Ramya is working as VPRC Book-keeper from and Mrs. Kavitha working as PLF Book-keeper since PIP list identifies 379 households as target, whereas BPL list identifies 315 families. Gram Sabha approval copies were not available for verification. In the absence of this, the PIP list was cross-checked against PIP register. No changes were made to the PIP list. 72/103 beneficiaries were met by the team. In the case of 68 members who took a loan to buy cattle, first time insurance was purchased but was not renewed subsequently. During record and field verification, in 4 cases, there was a difference in of Rs.7700 in loan repayment, as follows: Name Register Field Visit Difference Loan Repaid Loan Repaid Balamurugan /Selvaraju Jayakodi/Karumpa yeeram Nelampal/Perumal Theivasigamani/Ka rumpayeeram Total SHGs 2 SHGs are defunct out of 43 SHGs (based on interactions with villagers, and verified against SHG registers and documents.) 2 CSTs are working. Mrs. R. Umarani is monitoring 10 SHGs and has submitted a report up to March Mrs. V. Sathya is monitoring 15 SHGs and has submitted a report upto June CDF Mrs. M. Shanmugapriya is monitoring 18 and submitted a report upto May SHG Training 26/43 SHGs have completed IVth module training and payments were verified. SHG IVth module training has been given for 3 days for 3 SHGs (Vannamalar, Puthiya Thalaimurai and Roja SHG). Other 23 SHGs have received training for only 2 days. The attendance and expenditures were verified and found to be correct. 6 S o c i a l A u d i t R e p o r t : P a r t I I

7 32 SHGs have a bank linkage and another 11 SHGs have not taken any bank loan. But rating has been completed for 9 SHGs on and application submitted to bank on During discussions held with SHG members, many women said they wanted a bank loan. 6. PLF 63/99 beneficiaries were met by the team. 1. The following SHGs have not made their repayments for the month of August: Sevvanthi, Kurinjimalar, Kurinji, Annaparavai, Mariamman, Sakthi, Anbuthozhi, Amman, Kalki, Durga, Mariamman, Vanambadi SHGs. 2. ASF loan has been given to only 25 SHGs, and 18 SHGs have not received a PLF ASF loan yet. 3. Insurance has not been made for the assets created by the Amuthasurabhi loan. 7. Skill 29/66 youth beneficiaries were met by the team. 31 youths have received direct employment. The following issues were identified: 1. Skill training documents were not maintained properly (applications, ID proof, certificates, bills, employment letter) 2. 5 youths Ashokraj, Sudhakar, Prabakaran, Sakthivel, Aravanindam - have dropped out or not completed 45 days of training for driving (2 of the youths went for 30 days, 22 days, 20 days, 10 days) but payment for the same has gone to Arasu Driving Institute. License too has been given. 3. Youths who have completed beautician training are doing their own Business. The institute did not arrange any employment opportunity. 4. Most of the youths said they did not get any soft-skill from the training institutes. 5. Ashokraj who completed driving training is now working as Fire & Extinguisher Fitter in AGP Passive Fire & Safety Company, Chennai. 6. Employment documents not available for 15 members. 8. PAR 80:20 70:30 Loan repayment Closing Balance 9. Functionin g of CBOs (VPRC, PLF, SAC) Tally CLG Total Misappropriation Amount OorKootta m 0% (Registers) 81.81: : % Rs /- All CBOs - VPRC, PLF, SAC committees attended social audit meetings in less numbers. All CBOs resolutions were maintained and meeting member quorum is minimum 90% according to records in all meetings VPRC, PLF Tally entries updated Upto August SHGs not updated. CLG has not been formed in the village. While asking reason, they said that CLG had been formed in the Tribal VPRC and not the main one. Nil 200 people attended the Oor Koottam on 3 rd September 2016 held in Sendurai village lasted for 1 hour. DPM, 3 APMs, all PFT Staff attended the Oorkoottam. All the issues identified were discussed at the Oor Koottam. SHG Members who had not been repaying one month s promised to repay the regularly. 7 S o c i a l A u d i t R e p o r t : P a r t I I

8 1.2 Viluppanankurichi village, Thirumanur block, Ariyalur District Social audit date Area Findings 1. Village Overview The village is situated in Tirumanur Block, and poor Transport facility available. With about 443 households in a Single habitation, the village has about 7 ST families. Total Population of the Village is The president is a woman, Malathi. She discharges duties herself. Mrs. Lakshmi is working as Both VPRC and PLF Book-keeper since september PIP: BPL: PIP list identifies 139 households as target, whereas BPL list identifies 235 families. Gram Sabah approval copies were not available for verification. PIP LIST was verified in 3. Individual assistance PIP Register. 39/48 beneficiaries were met. 1. In the case of 44 members who took a loan to buy cattle, first time insurance has been bought but not renewed. 2. As per records, 22 persons have received individual assistance for being in the vulnerable category. When this list was checked against PIP list, it was found that 4 persons amongst them were not in the list of vulnerables. Name: Jeyanthi, Jenselamary, Inbavalli, Valarmathi. During field verification when these women were met, it was found that they were neither widows nor destitutes and therefore not eligible to receive assistance meant for vulnerable. However, they are repaying the loans members have not get individual loan (4 differently able, 11 vulnerable). 4. SHGs 5 SHGs defunct out of 20 SHGs. (based on interactions with villagers, and verified against SHG registers and documents) Of these 3 SHGs had loan repayment issue, 1 SHG did not have a CST monitoring it, and last SHG s representative has passed away. 8 SHGs have received bank linkage and another 12 SHGs have not received any bank loan. But rating has been done for 12 SHGs and applications have been submitted to bank. None of the SHGs have got a bank loan at current financial year. CST has been appointed from and CDF from but they have not submitted reports nor received honoraria. 5. SHG Training Only 5 SHGs have completed IVth module training. 3 SHGs for 3 days, training expenses made for Rs. 4326, while 2 SHGs for 2 days training expenses made for Rs Attendance, bills, photos, documents were verified to be true. 6. PLF 62/74 beneficiaries were met by the team. IHHL Loan given to 20 Members. 3 SHGs not affiliated to PLF. Out of 15 Active SHGs only 11 SHGs received ASF Loan. Singaravelan SHG - Veerammal has received PLF loan of Rs. 20,000 in Nov But she has given the to another person Kavitha. Insurance not made for assets created by use of Amuthasurabhi loans. 7. Skill 27/30 youth beneficiaries were met by the team Youths have completed driving training. But of these only 6 are working as drivers. 2. Jewel making training has been given to 16 youths - 8 target, 8 non-target. But they are not employed. Training has been completed. No placement has been provided. Training payments have not been made to the institute. Youths said they wanted some employment opportunity to use the training they had received. 8 S o c i a l A u d i t R e p o r t : P a r t I I

9 Gender ratio 8. PAR 80:20 70:30 Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) 3. 2 youths - Rajavel, Sudhagar have attended only one week of driving training instead of 45 days. For these dropouts, a payment of Rs has been made. License has been given to the institute. 4. Skill training documents are not maintained properly - Application, Certificate copy, ID proof, bills 5. Rs.19,150 payment has been given to Lakshmi Driving School on but VPRC resolution not available for this payment. It could not be found out who the payment has gone for. Therefore, these youths could not be identified or met. 6. All youth beneficiaries said that they did not get any soft-skill training from the institutes Total misuse in skill: % (Registers) Members 67.5:32.5, Amount 77.3:22.7 Members 54:46, Amount 74.4:25.6 Rs /- All CBOs - VPRC, PLF, SAC committees meeting were conducted by the team, the member participant is less number. Book-keeper, CST, CDF fully attended. All CBOs resolutions were maintained and meeting member quorum is minimum 90% according to records in all meetings. 10. Tally VPRC, PLF Tally entries updated Upto August-2016.SHGs not updated. 11. CLG Amman Dairy CLG has received fund of Rs in Aug Training and Exposure visit given to them. But there is no services made by the CLG. CLG is not functioning. 12. Total Misappropriation Amount Total :4500 (Skill 4500) 13. OorKoottam 100 people attended the Oor Koottam on 3 rd September 2016 held in Villupanankurichi village which held for 1 Hour. DPM, 2 APMs, Panchayat President, all PFT Staff attended the Oor koottam, All the issues identified were discussed at the Oor Koottam. The CLG President promised to function the CLG. 9 S o c i a l A u d i t R e p o r t : P a r t I I

10 1. Coimbatore district 2.1 Periyapodu Village, Anaimalai Block, Coimbatore District Social Audit to Area Findings 1 Village Overview Periyapodu is 16 km from Pollachi town, and it has 6 habitations with 1100 households spread across them. The total population is Community aspects: BC communities are majority, while SC community is about 19% Livelihood: Agriculture (vegetable cultivation, cattle), driving, etc are the main occupations Languages Tamil and Malayalam are spoken by the community here It was felt that the Panchayat talaivar had full control over functioning of the VPRC. This is because, after delay of 2 days, when the PIP list was finally shared for social audit purpose, the analysis showed that many non-target persons in the village had benefited from the scheme, and target had been neglected. Many members who are not in target lists have been given individual loans, reportedly on the recommendation of the Talaivar. Other aspects: The village is calm and serene, and was observed to be very clean,tidy. 2. PIP: BPL: A big issue here was that the PIP list itself was not shown to social audit team for two days. After asking for 2 days, the project staff visited the Talaivar s home and hurriedly brought a PIP list which was handed to the team for audit. When checked with this list, it was found that in both individual assistance loans as well as skill, a majority of non-target people have benefited. In skill, 89% non-target youths had been sent for training. PIP list identifies 281 families as target, while BPL identifies 362 families as poor. Of the 281 families identified as target, by the project, of which 74 are very poor and 207 poor. There are 36 differently abled persons and 36 vulnerable persons identified for individual assistance. Apart from PIP list, BPL list could not be seen by the social audit team. PIP Approval 3 VPRC/PLF/SAC/CLG Function 4 Individual assistance (Grama Sabha Xerox copy) was not maintained in the VPRC. 1. VPRC & PLF meetings have not been conducted after April 2016 (No meetings in May,June,July, August 2016) 2. VPRC Books of Accounts not updated after April Some VPRC expenditure bills and vouchers were missing. Signature and Dates were not there in many bills. 4. All VPRC Activity handled by the VPRC Bookkeeper only 5. A separate bookkeeper has not been appointed for PLF 6. A few signed blank cheques were found, containing signatures of the officebearers(vprc Secretary and Treasurer). These were for both VPRC Development Fund and PLF ASF accounts. The bookkeeper had these cheques 7. CDF has not been functioning for more than one year 8. None of the office-bearers of the CBOs came to the VPRC during the audit time 9. CLG is not functioning and for Rs.1500 misused and no resolution passed The team met 26/57 beneficiaries differently-abled persons not in PIP List but have received Rs. 48,500. One person involved in an accident got Rs.8, members not vulnerable but they have given to Individual loan Rs.2,01,500. Total Rs.2,50, Most of the ineligible people who received money were recommended by the Panchayat President. The Talaivar s mother-in-law is one of the 10 S o c i a l A u d i t R e p o r t : P a r t I I

11 vulnerable category loan beneficiaries, but when met in person, it was found that she is not eligible to receive loan as she did not quality to be vulnerable 5. SHGs Total number of SHGs is 31. Number of existing Women SHGs were 28 in all, while differently abled were 3 SHGs. 10 defunct SHGs Register updation was poor for most SHGs 6. SHG Training 27 SHGs have received 4 th module trainings as per attendance records, but no photos, reports, schedules could be found. Full attendance records have been shown for all the 27 SHGs. Some SHG members said that only 5-10 members in their group had attended trainings. For example, in Malligai SHG, 12 members are there, but during discussions with the SHG, 6 of them said that they did not attend trainings Some SHG members reported that training was provided only for 2 days Training Expenditure for 4 th module training was Rs.54,880 as per cash register Social audit team made calculations to arrive at the actual misappropriation on the basis of signature differences made in every SHG, discussions, and the per person expenditure made. The misuse figure so calculated is Rs.16, Skill The team met 42/84 Skill beneficiaries, across the following categories of trainings: 1. Driving Training Computer Training CNC Training Tailoring Training Beautician training Nursing Training Electrician Suguna Chicken Masonry Direct Employment- 26 Total = 110 Findings in skill are as follows: 1. Totally 84 youths have completed skill trainings, but of these 75 youths are non-target; only 9 youth from the target list identified were trained. 2. Most youths who had gone for driving classes knew how to drive; they used the facility only to get an official driving license. All of them know driving and they were experienced with over 10 years driving experience. Some even have their own vehicles, they(beneficiaries) said. Given that the institute Selvan Driving Institute - has benefited through payments of these 35 trainees, this needs to be probed further. 3. For some students, the employment certificate was missing 8. PLF ASF 1. The team met 32/286 beneficiaries. Loans have been disbursed to 28 very poor members, for an of Rs.6,95,000 and to 216 Poor members for an of Rs.36,15,000, to 42 non-target members for an of Rs.9,48,000. So,total loans given is Rs.52,58, ASF Loan card had not been given to SHG members, this means members have no way of tracking their own repayments a. And loan given livelihood purpose 244 members Rs.49,58,000 and others 42 members Rs.3,00, ADFT loan disbursed to 104 members Rs.31,25,000 for dairy. It was found that in the case of 2 SHGs, PLF loans had been taken to repay this loans. 11 S o c i a l A u d i t R e p o r t : P a r t I I

12 9. Funds received Outstanding Amount Closing Balance Recovery Rate PAR 80:20 70:30 10,00,000 Rs 11,41,550 Rs % Recovery 22% PAR 86 % Target : 14% Non-target 83 % Livelihood : 17% Consumption 10. Tally Tally updated upto May and system Available in VPRC Office 11. CLG Kogul Kannan Diary CLG was inactive Rs 16,500 was given as an individual loan to Ms. Mailathal (for her personal medical expenses) which is against the project guidelines. Moreover, this sanctioning and processing was handled by Mailathal herself. CLG Amount Resolution was found to be passed for an of Rs.15,000, but released was found to be Rs.16,500 for the CLG Member s Individual loan described above (medical purpose to Mailathal) 12. Total SHG Training: Rs.16,640 Misappropriation Individual assistance misuse Rs.2,50,000. Amount CLG misuse Rs.16,500. In skill, almost all the trainings have been given to non-target. Misuse could not be quantified. Total misuse identified: Rs.2,83, Impact during the 5-day audit PLF overdue of Rs 52,000 was recovered on the day of the Oor Koottam. VPRC and PLF records updated during social audit team visit 14. OorKoottam 60 people attended the meeting. Panchayat President, cluster staff and APM (VF) attended Oor koottam Social audit team explained the risk of having blank cheques that has been presigned. SHG training issue was raised in the Oorkoottam. CST and CDF did not attend the meeting. Amma Kaipesi cell phone meant for this village was in the cluster office and not being used. One of the villagers wanted to know about the outstanding in the SHGs, but suddenly at this point, APM responded pointing out that since the Oor Koottam was being filmed, he told them if you want to ask any questions regarding finance after Oor Koottam you can ask the social audit team later on. 12 S o c i a l A u d i t R e p o r t : P a r t I I

13 2.2 Nachipalayam Village, Madukkarai Block, Coimbatore District Social Audit to Area Findings 1. Village Overview This village is at a distance of 40 km from Coimbatore town. There are 4 habitations in this village with 705 households of which 234 have been identified as target families by this project. Livelihood aspects: Agriculture based village (flower nursery, vegetable cultivation, cattle) Political aspects: Panchayat talaivar is a woman who has been elected for the first time. She is supportive to the community, and herself belongs to SC community. Villagers during discussions shared that all decision-making usually rests with the ex-president. Community aspects: SC community is majority in this village Languages spoken: Tamil, Telugu 2. PIP: BPL: PIP list identifies 234 families as target, but BPL identifies 720 families as poor. BPL List was not shared with the Social Audit Team & PIP Approval (Grama Saba 3 VPRC/PLF/SAC Function 4 Individual assistance Xerox copy) was not maintained in VPRC 1. VPRC resolutions were not maintained properly. For example, book keeper salary records are not clear. Skill payment does not mention names of the youths, SHG training expenses. 2. PLF monthly meetings have not been conducted regularly. 3. VPRC, PLF & SAC member signatures were all by the same person. The signatures were identical. 4. VPRC Office-bearers have been changed from due to rotation norms, but these members are not active 5. PLF Members and office bearers have not been changed. The same people hold the posts right from the beginning ie. since VPRC & PLF Loan Repayment register not available, Individual Assistance Registers were not updated 7. VPRC, PLF & SAC members do not come to the VPRC Office 8. 8 times bookkeeper has been changed and salary has been given, but main records are not available nor updated 9. SAC Meeting was conducted last on and is not functioning 10. For PLF a separate bookkeeper has not been appointed The team met 67/108 beneficiaries. 1. Individual Loan cards have not been given to beneficiaries, so there is no way of tracking repayments 2. 4 persons - Kannammal w/o Chinnan, Palaniyammal Thabakavundan (both from Palayam habitation),ranjan w/o.kanniyammal (from Kumarapalayam habitation), Tulasiammal (from Nachipalayam habitation) have been given Individual Assistance loans each of Rs.8000, totally for Rs.32,000. However, when met in person, it was found that they were not vulnerable category (ie, not widows/destitutes/etc) and therefore ineligible to receive the assistance. 3. There was only one case of repayment difference as follows: Name Loan Register Field Visit Difference Amount Repay Repay Yoga Lakshmi People s perception was that the ex-president Velu Mani has benefited a lot from the loan schemes but the social audit team could not go into this aspect or verify this. 13 S o c i a l A u d i t R e p o r t : P a r t I I

14 5. SHGs Total no of SHGs: 25 Newly formed SHGs: Women 10, differently abled 5, 1 Youth. It was said that 9 Existing SHGs have bank linkages, but we could not find supporting documents in the VPRC 18 defunct SHG they are not functional, and registers are not updated 6. SHG Training = 35 SHGs have received 4 th module trainings as per expenses 2. But 12 SHGs have only attendance records(signatures all same). There is no photo, report, schedule of these 12 SHG trainings. As for the other 23 SHGs, there is no record at all of the SHG trainings for them. 3. Some SHG members shared that only 2-6 members had attended trainings SHGs have not attended the 4 th module trainings. This was found from interactions held with the SHG members. 5. Training Expenditure is Rs.50,601 as per VPRC Resolutions and Cash Register SHGs names appeared for receiving 4 th module training two times 7. In the case of Manigandan Women SHG, it was found that there is no person called Nithya in that SHG. But there is a signature found in the name of a person Nithya. 8. Om Sakthi WSHG training dates are not available. 9. As per registers, trainer honorarium of Rs.3950 has been released for the trainings to the CST, for the 23 SHG trainings which did not happen. 7. Skill The team met 72/138 Skill beneficiaries, with the following breakup : Driving Training 85 Computer Training 20 CNC Training 23 Tailoring Training 4 Beautician training 4 Nursing Training -2 Total = 138 Issues identified are as follows: 1. Most of the youths have only undertaken the LMV Training without completing the corresponding Badge Training for the same. 2. Skill institute payments have been released without youth names mentioned. This means that it is not clear for whose trainings the payments have been made, making it difficult to verify. For example: a payment of Rs. 70,920 has been made to Ambal Driving Institute. This has been at the rate of 18 youths*rs.3940 per youth = Rs. 70,920. But, no youth names have been mentioned against this training. Total of all such payments (where youth names are not present) = Rs.1,21, In VPRC, in the case of several youths, basic training data was not available (days of training, institute name, paid, youth contribution, application) 4. In some cases, youth employment certificate was missing 8. PLF ASF The team met 96/225 beneficiaries. ASF loan card has not been given to SHG Members 9. Funds received Rs.13,71,795 Outstanding Amount Rs.31,987 Closing Balance 32% Recovery Recovery Rate PAR: 96% PAR 86% Target 80:20 78 % Livelihood 70: Tally Tally system update Aug VPRC, PLF Available VPRC Office 14 S o c i a l A u d i t R e p o r t : P a r t I I

15 11. CLG There is one CLG, Vanavil Poocharam, for painting activity. CLG was being handled by the ex-cdf, Rajan only. Issues found: It was observed that Rs.90,000 has been withdrawn without resolutions, and of this Rs.85,000 has been deposited back. Balance Rs.5,000 still remains and is being identified as fund misuse. Quotations have been brought on But the very next day, , procurements have been purchased 12. Total Individual Assistant Repayment : 250 Misappropriation Individual Assistance : 32,000 Amount CLG : 5,000 SHG Training : Total Amount: Rs.87, Impact during the 5-day audit VPRC & PLF Registers - some records got updated as the social audit progressed 14. OorKoottam 82 people attended the meeting. Individual assistance repayment mismatches, skill training, SHG Training were the issues raised in the Oor Koottam. Ex.Panchayat President and the project staff APM (cluster team) attended Oor the Koottam. Panchayat president did not attend the Oor Koottam. The Bookkeeper did not attend the Oor Koottam. Ex Panchayat President requested for documents of those who have not repaid loans, for the follow up. 15 S o c i a l A u d i t R e p o r t : P a r t I I

16 2.3 Puliyampatti village, Palladam block, Coimbatore district Social Audit to Area Findings 1 Village Overview In this village, there are 4 habitations in all, of which 2 habitations have mixed communities, 2 habitations have SC Community. Livelihood aspects: Most of the villagers work as agriculture labourers, or weavers and work on poultry farms Community aspects: People complained that they get drinking water only once in two days. Political aspects: The Panchayat President or Talaivi is a woman from the SC community. She is also an SHG member, she has been previously elected as ward councilor, and been on the VPRC committee. But it was said that the control of Panchayat rests with the Vice President (BC community) Social aspects: There were separate tumblers in the tea shop, as noticed by the social audit team, for the SC community and the BC Community (Kongu Vellalar) 2. PIP: BPL: 3. Individual assistance In PIP list identifies 184 families as target. It was found that PIP process was conducted only in 2 habitations. 2 habitations have not been visited at all during PIP process. This was confirmed by looking at the PIP register where there are no members in the PIP list from these 2 habitations, which were excluded in the identification process initially conducted. The team met 57/57 beneficiaries. (75 Loans) (observations) 1. As per records, an of Rs.82,500 has been disbursed as individual assistance loans to 10 persons. During field verification, it was found that these persons were not eligible to receive the loans. Ie, they were neither differently abled nor vulnerable as per project guidelines. 2. As per records, Mrs. Amirtham w/o Aruswamy (differently abled person) has received Rs as loan. But during field visit her son said she has not received the loan. 3. Individual assistance loans should be disbursed only to differently able and Vulnerable persons as per project norms, but it was found that one loan of Rs has been given in the name of a youth Mrs.Narmada devi w/o Dhanapal, in June 2016, for purchase of bike. 4. For 19 members, there was a difference of Rs.17,750 in the loan repayment s between registers and field visit. 5. The current CDF belongs to Puliyampatti, she is also the CDF of the neighbouring Melagoundampalayam village, in violation of project rules. She is not functional or active in this village. 4. SHGs Total Affiliated SHG: 16 New SHG Formed: 1 Differently abled SHG: 1 Total: 18 Defunct: 13 SHGs Bank Linkage 10 SHGs are having a bank loan repayment is prompt Some other observations about SHGs: 1. Many private microfinance institutions have disbursed loans to PVP SHG members. 16 S o c i a l A u d i t R e p o r t : P a r t I I

17 2. There is no CST in this village. Records are not updated and it was felt that SHGs face challenges in updating the record themselves 3. SHG members are involved in micro finance, bank loan, savings, internal loan as well as amuthasurabi loan through our project. 5. SHG Training 1. Total SHGs are 18 in all, having 218 members in all. Among this only 153 members attended the training 2. In resolution, it is mentioned training was conducted for 3 days and that all the members from all SHGs participated. During field verification, members could not share learnings or training experience, but they recollected that on three days food was served. 3. Total expense Rs but of this, for Rs.5,600 there were no bills 6. Skill The team met 51/59 beneficiaries. Findings are as follows: 1. During field visit while verifying skill records, 21 candidates who were met in person said that they did not go for training. But against their names, payments have been made to Jeya Driving School. For 7 youths, payment of Rs.9,800 and for the remaining 14 youths Rs.19,800, so a total of Rs.29,400 cheque payments have been released against these trainings. 2. In this village, skill fund is available. During field visit, youths said they did not know about the scheme or project. Given that most of them do work in power loom and poultry farm, they said training in these subjects would be helpful in employment. 3. In Kovai, Ramakrishna Mission Training Institute, masonry training was given to Karthik, Nagaraj, Vijiana and Vijiyakumar. They have not completed the trainings. Amount has been released to the institute at the rate of Rs.3000 for each candidate and totally Rs released. 4. As per records, 30 youths have undergone training with Ellora Tailoring training institute. Cheques have been released at payment rates of Rs.2000 per member, so a total of Rs.60,000 has been released to the institute. But during field visit, it was found that 19 of these youths have not completed the training. Certificates have been given too. 5. As per project rule only one training must be given to a youth. But for Mrs. Shanthamani, both tailoring and beautician trainings were given. 7. PLF The team met 109/180 beneficiaries. Findings: Sindhunadhi SHG received Amuthasurabhi loan of Rs.1,59,500. When met in person, they said they have repaid the, but as per records Rs. 39,007 is shown as outstanding yet to be repaid. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) 14% 74% : 26% 98%: 02% 65% In many cases, registers did not reflect the true and correct picture of the functioning of committees. Field visits and interactions with the members revealed the actual position vis-à-vis the registers. This is described below: 1. For the VPRC EC signatures, it was found that registers are being updated by going door to door to merely get the signatures. Actual involvement of members is not there. Similarly, for PLF, EC members have not attended the meetings but signature have been collected from them. 2. SAC registers have been maintained but meetings are not conducted. 17 S o c i a l A u d i t R e p o r t : P a r t I I

18 3. Social audit team requested for a CBO meeting, but nobody came and over the 5-day audit period the meeting could not be organized. 4. Without conducting the meetings, resolutions have been updated and shown as passed through consensus. 5. There is no CST in this village. 10. Tally VPRC records are updated till 7/2016 PLF records were updated till 7/2016, but Tally PLF PAR 98% does not reflect the correct PAR (which is 74%, found by our team through register calculation) SHG Transactions were updated only till 2/ CLG 1. PLF loan has been given to 25 members for purchase of cattle. Dairy Poocharam CLG has been formed with these members. The CLG has received the infra fund of Rs They have completed exposure visits and attended trainings. They have received fodder too. Total expense Rs.49,350. But during field visit it was found that some members have not purchased cattle, and they have used the loan for their own purposes. The CLG is currently inactive 2. It was observed by the social audit team that blank cheques have been signed and kept in VPRC. (Cheque no ,000005) 3. We found resolutions showing intent of purchase of cattle feed unit and weighing machine in the minutes note but this has not actually been executed. 4. Cattle feed mixer has been purchased for Rs.40,954 from Milk Society and it has been kept it for sales at a nearby shop. They have earned an of Rs.11,550 through sales. But now the shop has been shut down, resulting in a loss of Rs.29,404 (since not even the spent for purchase of the unit has 12. Total Misappropriation Amount 13. Impact during the 5-day audit been recovered through sales). Total Amount Rs. 2,15,661 Break up as follows: SHG IV Module Training 5,600 Skill Training 41,400, Individual Assistance Rs , PLF Rs CLG-Rs Sindhupoo SHG loan repayment was wrongly entered against another group name and this was corrected 2. Initiatives were taken for CLG to collect the from owner of the shop 3. New CST was appointed 4. During this period, a person was identified for appointment as book keeper to PLF 5. Initiatives taken to recover the Rs from the Jeya driving training institute 6. Individual assistance loan receipts were given to those who had not received them earlier 7. PIP register and loan register was corrected 14. Oor Koottam Perceptions in this village were that they would not attend an Oor Koottam. By 12.30pm, 51 people had come. Panchayat Talaivar and Vice President expressed their surprise that people had attended the Oor Koottam. APM (LH) Skill, Cluster staff and District MaKaMai participated in the Oor Koottam. 18 S o c i a l A u d i t R e p o r t : P a r t I I

19 Issues discussed included the loans meant for differently-abled and vulnerable being wrongly disbursed to other members. The book keeper s daughter has received such a loan. When this was brought out, the book keeper Mariammal apologised in the Oor Koottam. Sindhupoo SHG representatives wanted to know why there was an outstanding shown against their SHG, given that their repayments were complete. To this, the book keeper clarified, I had entered this wrongly and now it stands corrected. Tailoring trainee youths who attended the Oor Koottam said that they did not usually attend the tailoring training. They said that they would sign at the institute but go away to do MGNREGS work, and did not actually attend the training. The loan has been disbursed continuously to the group having loan outstanding and mostly loan disbursed to the book keeper group and her relation groups. Nodal APM instructed the Team Leader to select correct persons for the CBOs and focus on activating them at the earliest. The SHGs promised that they would repay the loan s. 19 S o c i a l A u d i t R e p o r t : P a r t I I

20 3. Cuddalore district 3.1 Nedunkulam village, Mangalore block, Cuddalore Social Audit from 29/8/2016 to 4/9/2016 Area 1. PIP: BPL: 2. Individual assistance Findings PIP list identifies 188 households as target, whereas BPL list identifies 299 families as poor. The people said partisan influences could be a reason for the difference. 2 changes were made to the PIP list. 2 persons have been added and 2 persons have been deleted in the PIP registers. But these did not have Gram Sabha approvals. When this was pointed out, the staff present promised that they would obtain Gram Sabha approvals for the same in the next Grama Sabha (2 nd oct 16) 52/61 beneficiaries were met. Most of the beneficiaries did not have any loan repayment receipt. Instead of the loan card, the beneficiaries had a small booklet which had up to date repayment information. 3. SHGs 5/25 SHGs were defunct. 5 SHGs did not have even one bank linkage, while none of the SHGs had a single bank loan in the current financial year. The members reportedly felt PLF loan is cheaper and hence did not prefer a bank loan at higher interest. 4. SHG Training 20 SHGs have completed IV module training. In case of 96 members, there were differences in training attendance, between the registers and field verification. This means people did not attend the full training and have dropped out, but the records and expenses show that they have completed trainings. The average training expense per person was Rs Based on this, for 96 members, the attendance difference comes to a cost of Rs PLF 157/301 beneficiaries were met by the team. In 9 cases, the stated loan purpose was not the same as actual loan use. 6. Skill 81/98 beneficiaries were met. None of the youths met had received any soft skill training. Overall the target ratio was found to be 71.5:28.5. Gender ratio in skill was 1.6 males: 1 female 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs (VPRC, PLF, SAC) 36.18% (as per registers) 80: 20 (i.e. target 242 members and non-target 59 members) 100% Livelihood 68% Rs PLF committee was formed in 2011, with no rotation in membership except for the PLF President. Their registers were up-to-date. Last 3 month CST reports were not in place, nor had she received a salary. Most people s awareness about the scheme was low. They do correlate the scheme with the bookkeeper Sarla. 9. Tally VPRC and PLF updated till August 2016, and SHG update is pending 10. CLG The Goat CLG Durgaiamman has received fund of Rs. 85,500 in Oct 2012, they have gone for training and exposure visit. The only CLG activity has been measurement of each goat s weight at the rate of Rs. 5/goat. For 52 goats, this s to Rs No other activity in the CLG. 11. Total Misappropriation Amount Rs. 12,525 (SHG IV th module training, based on signature differences) 20 S o c i a l A u d i t R e p o r t : P a r t I I

21 12. OorKoottam 320 people attended the Oor Koottam on 3 rd September 2016, which lasted for 2.5 hours. The DPM, APM, cluster team, Panchayat President and all ward members were present at the Oor Koottam. President promised to facilitate repayments for all members. The Team Leader promised to work on the defunct SHGs in the current month. 3.2 T.V.Puthur village, Viruthachalam block, Cuddalore Social Audit from 29/8/2016 to 4/9/2016 Area 1. PIP: BPL: 2. Individual assistance Findings PIP list identifies 245 households as target, whereas BPL list identifies 231 families. Gram Sabha approval copies were not available for verification. 32/77 beneficiaries were met. In the case of 16 beneficiaries, record and field visit loan repayment was found to be different. This means that the loan money collected through repayments has not been deposited properly, and the correct has not been shown in the registers. Repayment s were different in registers and in field visit. The actually repaid by people was more (than the repayment as per the records) by Rs. 53,125. Most of the beneficiaries did not have loan cards and did not have any loan repayment receipt. The bookkeeper was silent when asked about the difference. We found 13 differently-abled and 15 vulnerable who had not received individual assistance and they were in need of loans. One member, Indrani, had taken a loan of Rs in the year 2009, but she died subsequently. Her family said that the loan had been waived off in the Gram Sabha, but we could not find approval for the same. 3. SHGs There are 22 SHGs in the PLF. 12 SHGs was defunct. Of these, 10 SHGs were in the SC habitation. Microfinance Gramsakthi, Usvan are thriving well in this habitation. The bookkeeper in fact belongs to this habitation. The people did not know about Pudhu Vaazhvu. 10 SHGs do not have a bank loan in the current financial year. 4. SHG Training 23 SHGs have completed IV module training. While examining documents of SHG training, mismatches in the attendance records came to light. As per records, over 3 days of training, there are 1004 signatures. But during verification through interaction with members, in the case of 355 signatures, members said that the signature was not theirs, when shown the records. Rs. 32,090 was spent on the trainings as cash payments for which no bills were there. Cash has been withdrawn in the name of VPRC Secretary, who could not be met over the 5 days of audit. 5. PLF 67/172 beneficiaries met. In the case of 57 beneficiaries, the loan repayment was different in records versus field verification. This means repayments from people are not being collected and deposited properly. The actually repaid by people (field verification) was more than the entered in registers (record verification) by Rs. 2,25,345. Most of the beneficiaries didn t have a loan card and did not have any loan repayment receipt. 21 S o c i a l A u d i t R e p o r t : P a r t I I

22 2 SHGs - Ganga and Sakthi had taken loans for Rs lakh and Rs. 2 lakh respectively and had split the equally amongst all its member. The is being repaid. Loan monitoring registers and DCB calendar was not shown to the social audit team despite 5 days of asking for the same. 6. Skill 35/68 beneficiaries met. Skill training documents attendance records, youth application forms, proof of youth contribution, institute order copy - were not presented for social audit over the 5 days. When asked the bookkeeper and staff said all these documents were at district office. 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs (VPRC, PLF, SAC) One member (name withheld) has gone for the JCB operator training in 2011, but till date training certificate has not been given to him. Similarly, youths who went for training for tailoring (2), nursing training (1 person) in 2015 have till date not got a certificate % : 9.89 (I,eTarget 155 members and non target 17 members) 97.6% Livelihood, 2.4% consumption 18.05% Rs VPRC expenses were all in cash. The project rule is that payments over Rs. 500 should be made by cheque and not cash, but we found that even payments as high as Rs. 12,950 (year 2005) had been made in cash with no proper bills. Bill book from April 2016 upto date were not presented for the audit despite asking for the same over a period of 5 days. Cash books were not updated for the current month. All 3 - VPRC, PLF, SAC committees could not be met for a single day over the 5 days of social audit. But in the records, resolutions were maintained properly and meeting member quorum is shown to be 100%. When asked, the office-bearers did not know about expenditures made. 9. Tally VPRC and PLF updated till July 2016, and SHG update is pending 10. CLG The diary CLG has received fund of Rs in 2012, they have gone for training and exposure visit. Over the last two months, the CLG had stopped functioning, because there was a shortfall in sales (being sold to Ko milks located in Ulunthurpettai), leading to a loss of Rs Hence people have stopped giving milk to the CLG since 2 months. 11. Total Misappropriation Amount 12. Progress made during social audit days Rs. 3,10,560 (SHG IV th module 32090, individual assistance difference 53125, PLF loan different ) A day after the social audit began, and PLF repayment differences came to fore, loan repayments of Rs. 1,91,990 were made by the bookkeeper into the PLF account. Another positive impact of the social audit was that all registers got updated as the audit progressed over 5 days. 12. OorKoottam 82 people attended the Oor Koottam on 3 rd September 2016, which lasted for 1 hour. The issue of repayment mismatch was discussed at length. The DPM, APM, team leader, facilitator, Panchayat President, were present at the OorKoottam. The follow up action: 22 S o c i a l A u d i t R e p o r t : P a r t I I

23 The DPM, at the Oor Koottam, instructed the cluster team to report with action taken before 10 th September 2016 over the repayment differences. 4. Dharmapuri district 4.1 Madehalli village, Pennagaram Block, Dharmapuri district Social Audit from 29/8/2016 to 4/9/2016 Area Panchayat overview 1. PIP: BPL: 2. Individual assistance Findings The village is situated in Pennagaram block, 17 km from Dharmapuri. With 746 households spread across two habitations, namely Madehalli and Pillapanayakanahalli. Total population is Livelihood aspects: Agriculture. Tamarind (puli) repackaging by the women is an important source of livelihood, men are mostly out of the village and travel to Hosur for daily labour. Dairy too. Community aspects: The village composition is 100% MBC community (Vanniyar) Political aspects: The panchayat talaivar, Perumal, is about to complete 5 years in his term PIP list identifies 293 households as target. When the team asked to know the BPL count of the village, the Panchayat clerk responded saying they have no separate BPL list but in fact use the PIP list as BPL. This could not be verified further. The team met 68/70 beneficiaries. Findings are as follows: 1. In the case of 4 members Chinnakannu, Arunkumar, Govindasamy, Konammal there is a loan repayment difference in record and field verification, to an of Rs When asked about this, the bookkeeper said the ledger had not been updated. But the still could not be traced. 2. As per records, Rani w/o Sivalingam (PIP no. 056) has received a loan of Rs.6000 by cheque in June When met, Rani said that she had not taken the money but had passed on the cheque to Vimala (the then BC or Bank Correspondent). The money is still with Vimala who has reportedly moved to Bengaluru. 3. The team met Jothivel S/o Kandhasamy, who has taken a loan of Rs.6000 in June Reason: the member is the old CDF and has not got his honorarium from VPRC, as per his statement to social audit. What is worse is that details of this loan have not even been entered in the Loan Repayment Register members VPRC loans have been written off as subsidy members have not been given individual assistance at all. 6. Of 5 members who have not been repaying loans given from VPRC 4 members have passed away and one has migrated. 3. SHGs The team met 13/28 SHGs. 7 SHGs did not have bank loan in the current finance year. 1 SHG has not taken a bank loan at all. None of the SHGs showed the SHG register during field visit, the reason given by the SHG members was that registers were in the house of the Panchayat Vice-President. 4. CST Salary irregulariti es 5. SHG Training 3 CSTs have been appointed in this village for monitoring 28 SHGs. But only 2 CSTs are active. Only 17/28 SHGs are being monitoring the CST and this CST has been paid honorarium till July SHGs are not being monitored by any of the CSTs. 10/28 SHGs were complete the 4 th Module training. (2 Differently abled SHG, 8 women SHGs) As per resolution, we found that a total of Rs.6300 had been spent on IV th module SHGS trainings of 2 SHGs - Kaliamman and vetkaliamman SHG in 2016( to ). 23 S o c i a l A u d i t R e p o r t : P a r t I I

24 According to the SHG Consolidation Register, each of these SHGs had a membership of 12 women. However, in SHG Training register, there were 20 signatures instead of 12. When we met these women during field verification and asked them about the training, the 12 women said they did not know about it. From this, it can be inferred that the trainings did not happen. For SHGs IV th module training, an of Rs has been withdrawn in Feb But only Rs has been spent on training, while the balance Rs has been spent on office infrastructure (which should not have been done from the training expenses) 6. PLF SHGs have been affiliated from PLF. In the case of 26 SHGs, 108 members have got the PLF loan of Rs.18,35, SHGs have not received a PLF loan. (1 SHG differently abled has already been given the individual assistance loan and another SHG has a bank loan which they are repaying at present.) 2. The team met 57/108 members. 3. Annie Besant SHG has received a loan of Rs in names of 3 members (Mari, Saritha, Theivanai) in June It was found that Mari has given the loan to Rajeswari (who is the Annie Besant SHG representative) and Saritha has given her loan to another person is Kalaimani. The above details were not known to any of the SHG members until the social audit. 4. None of the members had the loan card. So loan repayment was not clear from member interaction SHGs (Deepam SHG, Thirupathi SHG) did not have the loan repayment receipts, hence loan repayment details were not clear. 6. In Thenaruvi SHG, a woman Konammal has been sanctioned a loan of Rs.25000, but during field visit it was found that Konammal has received a loan of Rs and given a bribe of Rs to the animator. Konammal also revealed that the animator had asked her not to divulge this information to anyone. The next day Konammal said that she had been asked to retract her words given to social audit team, by the said animator SHGs Angalamman and Malligai have received PLF loans in Oct 2015, each SHG getting an of Rs with a split up as follows: 12000,12000,18000,12000 as per records. However, during field verification, it was found that this was in fact split equally to all members, each taking a loan of Rs They are repaying the loan. 8. Based on field visit, Deepam SHG members have made loan repayments of Rs (Selvi - Rs. 1250, Angalamman - Rs.2000, Punitha - Rs.2000, Murugamma - Rs.1250) But this has not been updated in the Loan Ledger. 7. Skill 1. We met 21/32 skill training beneficiaries. 2. Skill Training Register was not update properly the training completion date, employee status, course fee, were not updated. 3. Raja s/o Samraj has undergone LMV Training. An of Rs.4750 for this training has been made, through a payment by cheque dated But for the same person Raja s/o Samraj - a second payment has been made, i.e, Rs.4750 has again been paid for the same training on Rajsekar has taken his own driving licence already in as on date (even before the project began). But as per records, for driving training in Rajsekar s name, a payment of Rs has been made through cheque dated The institute identified was John Driving Institute. 5. There were errors in entering the institution name while filling up the skill vouchers. Voucher number 55 dated mentions the payment being made to Om Sakthi Driving School, but in the resolution register, the institute named is different (John Heavy Driving School, Dharmapuri) Amount Rs.18400/- has gone to John Heavy Driving 24 S o c i a l A u d i t R e p o r t : P a r t I I

25 8. PAR 80:20 70:30 9. Functionin g of CBOs (VPRC, PLF, SAC) School. The youths too have gone to John for training, so this appears to be a case of mistaken entry in voucher and not misuse. 6. C.Anand, a youth from the neighbouring Padi Village (Nakkanahalli habitation) has taken training through another VPRC, but payment for the same has been made from the Madehalli VPRC on through cheque no (lmv+badge). The total paid has been Rs. 4750(3000 LMV Badge). The institute identified was Om Sakthi Driving Institute. The same issue was found in 2 more cases: Settu s/o Pachiyappan Rs. 4750, Sivakumar s/o pachiyappan Rs However it is not known which village the above two youths belong to. None of the 3 youths could be met because they were not from the village. The fact that these youths are from a different village was found out through discussion with the youths of Madehalli, who shared this. 7. Two persons - Pushpa W/o Madesh, Thenmozhi W/o Ramesh have received trainings twice. They have first attended tailoring training to ATDC Tailoring Institute and an of Rs (each member Rs 4700) has been spent by the VPRC on this. But both these persons have attended another training in nursing to MGR Institute in Jan Apr 2016 for which Rs (each member 14500) has been spent by VPRC. Project rules require that the first training should be collected back before a second training can be given. Total Misappropriation Rs.23750(4750 x 5 for the issues described in points 3,4,6 above) 0% PAR 81.3: 18.7 (74: 17) 70: 30 ASF Closing Balance: Rs.2,28,888/- VPRC VPRC office bearer have been changed, but Grama Sabha approval has not been taken for the same. VPRC registers have got updated but not properly maintained. VPRC minutes member signatures have differences. PLF loan ledger updated till July 2016, so it has not been updated for one month. SAC Meeting Register are updated, but members are not involved in VPRC and PLF activity monitoring. 10. Tally Tally upto date updated but only VPRC PLF transaction. 11. CLG CLG Sri Murugan Tamarind (puli) CLG has received an of Rs on Total members : 20 (target 16 and non-target 4). But CLG is not active. CLG Bank Balance - Rs Total Misapprop riation Amount 13. OorKootta m Rs SHG 4 th module training bills not proper Rs. 6300/- Skill training -- Rs.23750/- PLF (Two members names mentioned but loan given to various members) Rs members attended this Oor Koottam. Panchayat President, APM VF and Cluster staff attended. All issues were discussed in the Oor koottam. The panchayat in-charge staff promised to take corrective action based on findings. 25 S o c i a l A u d i t R e p o r t : P a r t I I

26 26 S o c i a l A u d i t R e p o r t : P a r t I I

27 4.2 Vadugupatti village, Harur Block, Dharmapuri district Social Audit from 29/8/2016 to 4/9/2016 Area Findings 1 Panchayat Overview The village is situated in Harur block, 47 km from Dharmapuri. With about 834 households spread across 9 habitations, the total population is The two main habitations where most benefits are concentrated are Vepanatham (majority beneficiaries) and Turanampatti. The other 7 have little or no beneficiaries. Livelihood aspects: Diary (goat, karavai maadu), agriculture based activity (sugarcane, kambu, rice, etc). Garments, NREGS works. Community aspects: 44% SC community, rest is MBC (Chettiyar, etc) Political aspects: The thalaivi is a woman, Kalpana (SC), but it is her husband who acts as the President. The people too recognize him as the Talaivar. Social aspects: it was learnt that an intercaste marriage was the source of intense conflict in this village. The Talaivi s son (SC) had married a woman from a different habitation s (MBC) community, which had led to a community issue in the village. The Panchayat office had initially been in the MBC section. After the tensions, the panchayat office as well as the VPRC buildings have been shifted to Vepanatham habitation, where the Talaivi s family reside. All beneficiaries too are mostly from this habitation. 2. PIP: BPL: The project has identified 238 households as target. There are 30 differently abled and 20 vulnerable persons according to the PIP list. There were no changes made to the PIP list. BPL category identifies 226 families has poor. 2. Individual assistance Social Audit Team met 37/55 beneficiaries. As per records, Murugan s/o Govinthan has received a loan of Rs in Dec.2014, but till date there has been no repayment. It was found that Murugan has passed away, and the loan has not been waived yet through GS approval. Loan cards have not been properly maintained.(missing voucher number, date) During the 5 days of social audit, repayments to the of Rs.51,820 was made by people who had not been repaying loans upto that time. 3. SHGs Social audit team met 13/23 SHGs. 3 SHGs were defunct. 18/20 SHGs did not have a bank loan during the current financial year. 2 SHGs have not been repaying the bank loan properly, while 3 SHGs have not been repaying PLF Loan properly. 4. CST Salary irregularities 3 CSTs are there in this VPRC. 20/23 SHGs are being monitored by the CST. CST reports have been manually prepared but not entered in Tally. CST salaries have not been given for 3-4 months. 5. SHG Training 18/23 SHGs have completed the 4 th module training. 5 SHGs have not got the training yet. 1. SHGs training bills and attendance register have not been properly maintained. Based on the records, the following details could not be found out: which training, how many members have participated, which SHG, how many days training was conducted. Those details were not present from examination of VPRC minutes, cash book, vouchers, bills (white paper hand bill). During field visit, the women said recollected that some trainings did happen, but could not share training content or purpose. 2. It was noticed that SHG training has been given in Oct 2015 but the vouchers for this were present for dates upto January The of Rs has been taken against this through cheque no dated PLF There were 23 SHGs affiliated with PLF. The team met 48/48 beneficiaries. PLF loan has been given 17 SHGs. Issues identified were as follows: 27 S o c i a l A u d i t R e p o r t : P a r t I I

28 1. Financial records were updated only upto May PLF loan ledger was blank. This was possibly because the PLF bookkeeper needed training. 3. Loan cards were not available with anyone. 4. In the case of 5 members, loan purpose was found to difference in record and field verification (5 members PLF loans had been classified as being given for livelihood purpose but the loans should have been categorized correctly as for consumption purposes. This is because the members had used it for educational expenses (3 members) and for housing(2 members)purposes 7. Skill The team were met 38/56 youth beneficiaries. 33 youths were target and 5 youths were non-target. 1 Skill training register was not updated on day 1 of social audit but the next day it got updated. 2 Indumathi w/o Mani has attended only 15 days (out of a 90 day course). But a payment of Rs.4800 has been made to the institute. 3 16s youths have undergone LMV training but not undergo the PSV Badge training. 4 Soft skill training has not been given for any of the members. Misuse in skill: Rs Loan recovery PAR Loan outstanding 80:20 70:30 Closing balance 9. Functioning of CBOs (VPRC, PLF, SAC) 52.36% 0% Target 77% :Non-Target 23% (37 member + 11Member) 94% (Livelihood) : 6 % ASF Closing Balance: Rs /-,General a/c Closing Balance : Rs.4716/- 1. VPRC is running in the veterinary hospital building. 2. About 80% of the CBO members are from Veppanatham habitation, the other habitations have less membership. 3. VPRC office bearer the Treasurer has been appointed in Aug 2013 but till date not changed. 4. VPRC and PLF register updated but not properly maintained, so it was felt that the bookkeeper needs support and training. 5. SAC Meeting Register is updated regularly, members were active based on register and field visit. It was noteworthy that all information has been shared in the habitations, and notice boards have been updated during solving the internal problems. 10. Tally Tally updated only for VPRC PLF transaction. 11. CLG Iyarkai Velanmai (Organic Farming) CLG has received the of Rs in Aug 2015, but till date it is not functioning. The above CLG has 30 members, target 25 members and non-target 5 members. 12. Total Misappropriation Amount 13. Effect of social audit over 5 days Rs /- (SHG training bills not proper: skill training not attended the training full period) During the 5 days of social audit, repayments to the of Rs were made by people who had not been repaying upto that time. 13. OorKoottam 129 members attended this Oor Koottam. Panchayat President, DPM, APM BF and Cluster team have attended the Oor Koottam. Police too was present since the village is considered to be sensitive. All issues identified were discussed in the Oor Koottam. 28 S o c i a l A u d i t R e p o r t : P a r t I I

29 4.3 Irulapatti village, Pappireddipatti Block, Dharmapuri district Social Audit from 29/8/2016 to 4/9/2016 Area Village overview 2. PIP: BPL: Findings Irulapatti village is situated at about 50 kms from Dharmapuri district. There are about 651 Households in 4 habitations. Livelihood aspects: The village relies on agricultural cultivation. Community aspects: the village has about 87% people MBC (Vanniyar) population. There are about 62 ST households in the village, and so the village has a separate tribal VPRC. For social audit, the main VPRC was selected. Political aspects: Panchayat President is a woman, Poonkodi, but it is her husband who discharges duties. There were no changes made to the PIP list. In this village, while Pudhu Vaazhvu has identified 176 target families, BPL category identifies 693 family (the BPL number is higher compared to PIP possibly because this count includes tribal and non-tribal households, whereas the PIP figure is for the regular VPRC only) The team met 33/38 beneficiaries in all: 25 differently abled and 13 vulnerable. No differences between record and fields found. 3. Individual assistance 4. SHGs 11/21 SHGs affiliated with PLF. The balance 10 SHGs have had a previous poor experience with borrowing through NGOs(the SHGs have been with the well-known NGO Myrada, having taken a loan but not repaid properly) 4/21 SHGs were Defunct. (1 SHG said that they had poor monitoring, 3 SHGs said that their bank loan repayment was a problem) 5. SHGs Training 6. CST Salary irregularities 5/21 SHGs complete only 4 th Module training. As per registers, 3-day training has been given to 5 SHGs. The total number of signatures in this is 128. But during field visit, it was found that only 98 members (not 128) had attended the training. (3 SHGs 3 days, 2 SHGs 2 days but records showed full attendance) SHG training bills and attendance register was not properly maintained,against the expense of Rs There is no CST at present. CDF Sulochana was changed in , and the new CDF Mullai has joined in Aug 14, but she is not functioning. Monthly reports not there. 7. PLF This is a new district for the project implementation and hence loans have been issues since last one month only. 14/15 beneficiary were met by the team. PLF first instalment has been received for only Rs.3 lakh. 7. Skill The team met 12/22 youth beneficiaries. As per VPRC cheque number dated , an of Rs has been paid to Tamilan Driving School, but vouchers are present for Rs Rs.300 is the difference. 8. PAR 80:20 70:30 9. Functioning of CBOs (VPRC, PLF, SAC) 0%(All the loans have been issued for the first time in the last month only.) 100% (Target member 15) 100% (Livelihood only) ASF Closing Balance: Rs.25861/- General A/c Closing Balance : Rs.11298/- VPRC: 1. The VPRC did not receive the VPRC 3 rd installment fund. VPRC office bearers have not been changed the last four and half years. 29 S o c i a l A u d i t R e p o r t : P a r t I I

30 2. VPRC Register was updated but not properly maintained. For example, the date, voucher number, receipt number, ledger book number have not been mentioned in the cash book. 3. VPRC minutes note was found to be updated, but member signature did not match the signatures collected during field interaction in the VPRC meeting conducted with Social audit team. 4. VPRC bank reconcile statement (BRS) should be maintained every month by comparing cash book and bank passbook for differences. But this has not been maintained (refer: Cheque nos and 95570) PLF: 1. Loan card not available. 2. PLF Register updated but not properly maintained by the PLF bookkeeper who is new and in need of support and training. 3. PLF loan ledger was not updated. SAC SAC Meeting register updated only SAC Not involve the CBOs (VPRC, PLF, SHG, CLG) activities monitoring. 10. Tally Tally updated upto Aug 2016 only for VPRC PLF transaction. 11. CLG Komatha Milk Production Dairy CLG started on November 2013, the CLG 30 members include that is target 25, non target 5. The above CLG receive the Rs in May CLG is active but does not involve all the CLG members. CLG is being operated by a single person who is the VPRC Secretary s husband. The other members are producing milk, but ownership remains with a single person. Income and expenditure book was not there. 12. Total Misappropriation Amount Rs (SHG 4 th module training bills Skill training bill difference) 13. OorKoottam 129 people attended the Oor Koottam on 3 rd September 2016, which lasted for 1.30 hours. Panchayat president and cluster all staff were present at the Oor Koottam. Nobody from the DPMU attended the Oor Koottam. One individual assistance beneficiary, Mathammal, had received loan of Rs. 15,000 and has been repaying it. She used it to buy a cow and is now earning Rs.150/- a day with it. There were people who said they were in need of loans from the project and they shared the same at the Oor Koottam. 30 S o c i a l A u d i t R e p o r t : P a r t I I

31 5. Dindigul district 5.1 Puliyampatti Village Thoppampatti Block Dindugal District Social Audit from to Area Findings 1. Village Overview In Puliyampatti village there are 414 households in 2 habitations Puliyampatti and Vannampatti. Livelihood aspects: agriculture, milch animals and masonry work Community aspects: The backward community(56%) is majority Political aspects: Panchayat Thalaiver is a businessman, and owns the well known Mani Broilers poultry farm, and the people from this village regularly work in his farm. People said the Panchayat Thalaivar is supportive to the people. For the upcoming panchayat elections, reservation is for an SC woman candidate. Poverty level is medium overall. Less than half a km from Puliyampatti village, there is a small settlement of 657 Sri Lankan Tamil refugees. The men mostly cut firewood and many of the women are engaged in tailoring. They are reportedly availing benefits from the government. 2. PIP: BPL: PIP list identifies 136 families as target, but in BPL list 336 families as poor. No addition and deletions from the PIP list 3. Individual assistance The team met 35/36 beneficiaries. Individual assistance loan has been disbursed to 14 differently-abled people for an of Rs vulnerable people have received of Rs So totally 36 persons have received an of Rs Some issues observed are as follows: Loan card has not been issued to the beneficiary and all the loan cards were with VPRC secretary. Out of 14 differently-abled, 6 of them are from the refugees camp (Sri Lankan) but they have not been included in the PIP list. In the individual assistance, Palaniswamy received a loan of Rs on 20/12/2013 and he has left the village after repaying only Rs SHGs The team met 4/7 SHGs. 2 SHGs were affiliated for PLF and 5 SHGs were newly formed. 2 women SHGs are defunct and 5 SHGs do not have bank linkage in current year. 10 SHGs are not affiliated with PLF. During the field visit, we organized meetings with SHGs and asked to know the reason for defunct SHGs. It was found that a bank loan is overdue. In the functioning SHGs, records were not updated since CST is not available. In Utchimakaliamman SHG, RF was not repaid to the bank. In one case, Eswaran, an LH facilitator nodal staff has arranged a loan from HDFC for 8 members. A loan of Rs at 24% interest and members have used this to repay the previous bank overdue. Two defunct SHGs Kanniyathal SHG and Nagathal SHG said they were not interested in getting a loan from HDFC because they had been asked to pay a bribe of Rs.2000 per member. These women said that if they got a loan from PVP, they would be able to repay the bank loan, and that the SHGs would begin working. 31 S o c i a l A u d i t R e p o r t : P a r t I I

32 5. SHG Training The team met 3 of the active SHGs. SHGs Module I training was conducted in 2013 but not documented. Attendance was verified, but bills for Rs.5210 could not be produced. 6. Skill The team met 19/21 skill beneficiaries. Out of 21 beneficiaries, 100% are target. As per records, a total of Rs has been paid through cheques to Jeyam Tailoring Institute for training 15 youths. But bills and vouchers for Rs of this could not be found. During field verification it was found that out of 19 beneficiaries, 5 beneficiaries had dropped out of training but an released to Jeyam Tailoring Institute Institute Rs In one of these 5 cases, Karuppathal w/o Veeramuthu went to Jeyam tailoring Institute only for 10 days (in a 90 day course) but of Rs.8400 has been released to the institute. Karuppathal s full attendance and certificate has been given to the VPRC. Karuppathal has submitted in writing that she is a dropout. The remaining four persons went to training only for 30 to 40 days out of 90 days but attendance is shown for all the days and no soft skills have been given in the case of these trainings. Reportedly, Jeyam Tailoring Institute is an NGO that operates in all blocks in Dindugal district, as told by one of the staff members present. 7. PLF ASF The team met 42/48 beneficiaries Only ASF I Installment received Rs ASF loan has gone only to 4 SHGs. During the field verification all the loan cards were found in the possession of the respective SHG secretaries only. Amounts are collected by her and repayments made in the bank, but members have no individual card to track the repayments. Differently abled SHG said they did not want a loan because they felt they would not be able to repay it. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SA C) As per PLF PAR outstanding NIL and PLF total outstanding Rs % repayment Totally amutha surabhi loan is disbursed to 48 members Rs in that 38 target members and is and benefited 77 % Target and 10 non target and is and benefited 23% non target. 85% for livelihood Rs and 15% for others Rs PLF Demand Rs /collection Rs and115 % Recovery Closing balance in Bank Rs VPRC and PLF meetings are not being conducted properly. Register signatures are inconsistent and the PLF is a livelihood subcommittee (since there are less than 10 SHGs). As far as rotation is concerned, only the treasurer has been changed. In the month of September meeting had not been conducted. Minutes were found for 7/9/2016 but the meeting had not actually been held and there were no signatures. 32 S o c i a l A u d i t R e p o r t : P a r t I I

33 SAC resolution passed but members are not active and SAC members have not signed in the resolution, it was found that signatures were being done by others. VPRC and PLF accounts were updated during the social audit visit. Bookkeeper has taken salaries meant for CST, CDF and bookkeeper (she holds all the 3 posts) to an of Rs.4200 on 11/10/2015. CST and CDF salary is not properly issued. The note was not updated and there were several other inconsistencies in salary records. Parasakthi VPRC Secretary has also taken a salary on 6/8/2015 meant for CDF to an of Rs The KaiPesi was found in the possession of the bookkeeper and not CST. 10. Tally In VPRC and PLF completely updated up to the month of August CLG Shenbagam Goat CLG started on and 30 members are in it. 26 target and 4 non target members. The CLG has received the infrastructure fund Rs.67466, it is not functional, and members who were met were not aware of CLG. Closing balance Rs Total Misappropriation Amount Skill training: Rs Total Misappropriation Rs Status of poverty In Puliyampatti habitation, MGR Nagar, Nagalakshmi is mentally challenged ever since her delivery. She has two daughters and one boy. After doing a uterus operation she developed mental issues, and her husband works as a coolie sporadically. The family lives in a small hut. Government benefits like fan, mixie, and TV have not reached this family. They rely on ration rice, and they eat only two times per day. He was asking for any help from the government for livelihood and for his wife to take treatment from the government hospital. They have not taken a loan from the project because they do not have income to return the money. 14. During the 5-day audit Social audit team stayed in the cluster office. Panchayat Talaivar, Panchayat clerk and the villagers were supportive of the team. Panchayat thalaiver kept on insisting that the bookkeeper should join as a computer operator on his farm. 15. Oor Koottam 90 people attended the meeting. Panchayat Talaivar, DPM, APMs, PFTs presided the Oor koottam. Individual assistance, skill training and PLF issues was discussed. On many occasions people were prevented from speaking. On the finding about vouchers being there but supporting bills not being there for the 4-month period, the APM VF threw down a file containing bills which did not have signatures of VPRC secretary and Treasurer. Since the team had not seen this set of bills earlier over 5 days of asking for the same, it can be presumed that these bills were prepared specifically for Oor Koottam. The vouchers too in question had been prepared only during the social audit period. 33 S o c i a l A u d i t R e p o r t : P a r t I I

34 In the case of SHG trainings where 5210 Rs. did not have bills (though the was reflected in resolutions), APM(VF) said that since financial audits have been completed, therefore social audit findings were false. People at the Oor Koottam said they did not know who the project staff were (except Eswaran LH who has been transferred to a different cluster) and said that VPRC meetings were not happening. People also said that office bearers come only to sign cheques. Karuppathal said she had not attended the full training, and the issue was raised about the payment having gone for a dropout case. In front of the people, the DPM told Karuppathal to complete her training. The members who had attended the tailoring training said that they needed a job after the tailoring training. One woman, Kalaivani said that she was currently attending tailoring training, but that the institute had informed her that Pudhu Vaazhvu Project was about to close, to which the DPM responded that the training would be continued. Panchayat thalaiver accepted the findings and he said that the staff needed more training and in future the gaps identified should be corrected and VPRC should be graded to A grade. In IHHL, it was discussed that applications were not being collected from the eligible member as per master register and target is not achieved. The Panchayat thalaiver and Panchayat clerk announced in the Oor Koottam that they would arrange to build toilets as soon as possible and Panchayat should become ODF Panchayat. 34 S o c i a l A u d i t R e p o r t : P a r t I I

35 5.2 K.Pudukottai Village, Reddiyarchatram Block, Dindugal District Social Audit Period to Area Findings 1. Village Overview In K.Pudukottai village there are 666 households across 8 habitations and Livelihood: Primarily MGNREGS, agriculture, nearby spinning mill where people work at a daily wage rate of Rs There is a stone quarry and an old kottai near the village. Social aspects: This village has been announced as an open defecation free village, and the Panchayat Talaivar has got an award for the same. In this village there are no hut houses, there is a Government Primary Health Center which is open 24 hours, and a Higher Secondary School is in the village. Panchayat Talaivar is supportive to the people, as told by the villagers and VPRC/PLF members met. Community aspects: MBC communities are the primary community here. 2. PIP: BPL: PIP list identifies 227 families as target, but BPL identifies 220 families as poor. Two poor families were added to the PIP list. In one of the two families, a member has had an accident (and thereaftere his leg amputated because of no blood circulation), and in second person s case due to nicotine consumption, both legs amputated. These two persons have been added to PIP list. Seven families were removed from the PIP list because they were at first wrongly identified as differently abled. GS approval was there dated 15/08/2016. But for the deletion, the name list is not mentioned in the Gram 3. Individual assistance Sabha approval. The team met 56/75 beneficiaries. There were several discrepancies between registers and field verification. Some of these are: In 5 cases, there was a difference in of Rs. 7000/- in loan repayment, as follows: Name Register Field Visit Difference Loan Repaid Loan Repaid Dhanalakshmi Lingammal Backiyalakshmi Chinnakkal Krishnamurthi Total misappropriation Rs For the two differently abled persons who have been newly added, a loan has yet to be released. It was found during field verification that they were in need of loans. 3. For 7 differently abled loans ing to Rs.35500/- which has been announced as subsidy due to death, in the case of one member Thathammal, we found that repayment was possible, because the family reportedly has 20 acres of land. 35 S o c i a l A u d i t R e p o r t : P a r t I I

36 4. SHGs The team met 16/16 SHGs. 6 SHGs were affiliated for PLF and 10 SHGs were newly formed. 3 Women SHGs and 1 differently able groups are defunct and 10 SHGs do not have bank linkage in current year. In the case of 5 SHGs repayment is not prompt. During the field visit we organized SHG meetings and asked the reason for SHGs being defunct. It was found that bank linkage is in overdue and while ASF loan disbursed to the group members from the bank, the bank has debited the overdue from ASF loan. The members have used up the savings for the repayment. So the members said that we will not continue to keep savings anymore for the self help groups, and have a feeling that their money was lost. CST is ready to work in the Bethinaicknur habitation but due to community issues they are not accepting to monitor the group because CST is SC community. Existing CDF took another member s loan of Rs and has left the village with all the records, the other members are ready to run the group, they want the CDF (whom we located as being currently in Tiruppur and spoke over phone) to repay the loan. 5. SHG Training The team met 9/9 SHGs. SHGs Module III trainings was conducted, documented and no difference in the attendance was found. Bills were in place and verified. 6. Skill The team met 34/38 skill beneficiaries. Out of 38 beneficiaries male 25, female - 13 Target 97% and non target 3% 1. As per record Kumaresan s/o Thaimuthu went to HMV for 45 days in year 2015 for which an of Rs.7650/- has been released to the institute but during the field verification it was found that he went only for 10 days for the training. He has signed this. 3. As per records, Vennila w/o Ayyanar went for tailoring in July 2015, the duration of the course is 3 months and released is Rs.9900/- to Jeyam Tailoring Institute. Attendance, certificate records for the same are available in the VPRC. However, during field verification, Vennila reported that she went only for 10 days, but fund has been released to the institute and she has not received the certificate (which exists in records) She has signed to this effect. 4. Chitra w/o Ganasen has attended Jeyam tailoring Institute, a 90 days training which she completed, but certificate has not been given to the candidate, but a Xerox copy of the certificate was found in VPRC. The original was not to be found with Chitra. Payment has been released in this. 5. As per records, Navaneethakrishnan s/o Mukkuiyan has undergone HMV training and went to Shri Jothi Institute in December From the institute, a payment bill request for the 80%, i.e, Rs.10950/- was found, but against this the VPRC released is Rs.11800/-. Excess Rs.850/- was found to be paid to the institute. 6. Jeyalakshmi w/o Sakthi Mariyam went to CSC computer training in the year 2015 and completed the course but no certificate has been issued. Payment has been released in this case. 7. Murugeswari D/o Dhandapani went for nursing training in June 2015 and course was completed and fund not released to institute. Certificate has not been received and she is unable to go for work. 36 S o c i a l A u d i t R e p o r t : P a r t I I

37 For four candidates Jeylakshmi, Sathyamariyam, Murugeswari and Krishnaveni, who attended trainings (3 in tailoring and 1 in nursing) last year, it was found that fund has not been released to institute. 7. PLF ASF The team met 52/65 beneficiaries 5 beneficiaries difference of PLF Loan and repaid Rs SHG Name Name Register Field Visit Difference Loan Repaid Loan Repaid Athipookal 5 members From PLF, an Amuthasurabhi loan has been disbursed to Veeramathiamman SHG for 5 members. The is Rs During field verification it was found that the was in reality split equally between 11 members. A second loan for 4 members ing to Rs.90000/- was also split equally between 12 members identified during the field verification. While asking the reason for this, the members insisted that bank loans were equally split but that their repayments are prompt. Members of the SHG insisted on a principle of equally splitting all loans. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SAC) Another issue identified was that loan card has been disbursed only at SHG level not for individuals. As per PLF PAR outstanding Rs /- and PLF Total outstanding Rs /- = PAR 22% Totally amutha surabhi loan is disbursed to 65 members Rs /- in that 53 target members, is /- and benefit is to 81 % Target and 12 non target and is /- and benefit to 19% non target. 57 members for livelihood and 8 for Consumption. PLF Demand Rs collection Rs and22 % Recovery Closing balance in Bank Rs VPRC and PLF meeting is being regularly conducted, as per registers, but signature inconsistencies were easily found in the registers. Office-bearers rotation has not happened since the start. SAC resolutions have been passed but members are not active. Moreover, one of the SAC members is related to the bookkeeper, possibly affecting the independence of SAC work and role. VPRC Bookkeeper has been newly appointed and needs support, training. VPRC and PLF accounts were found to be regularly updated. 10. Tally In VPRC and PLF completely updated upto the month of August CLG It was noteworthy that this panchayat had a Music CLG. Sri Vinayaga music drums CLG started on and all 21 members are from the target category. They have received an infrastructure fund of Rs Cultural drum materials have been procured for the of Rs.71000/-. The CLG was found to be very active and income contribution to CLG account was at Rs Total Misappropriation Amount Individual Assistant Repayment : Rs.7000/- Skill training : Rs.9900/- PLF Loan:Rs.5050/- 37 S o c i a l A u d i t R e p o r t : P a r t I I

38 Total Misappropriation Rs,21.950/- 13. Status of poverty Two families were identified during the social audit, as follows: Pitchaimmal, aged 76 years has three sons. Unfortunately one son is dead and two sons have got married. Now Pitchaiammal has no income, she has not received OAP for the last 2 years. MGNREGS work/payments also not received for 2 months. Her sons do not give her money for the food. Ration card also not available with her. She is identified as vulnerable in the PIP list, but she does not want any loan from the VPRC because she said she has no way to earn money or repay loans at her fragile age. Chippalammal s husband deserted her 12 years ago. She is having three daughters, and one of them is married to Chippalamal s brother itself. The second daughter has completed Higher Secondary, wants to study further but they do not have the resources. She has not received OAP and only goes for MGNREGS works for a living. She has received a loan of Rs and has repaid Rs so far. 14. During the 5-day audit Social audit team stayed in the cluster office where modest accommodation and food arrangements were made by the MaKaMai who were supportive. It is appreciated that the PFTs did not disturb the team or the audit in any way. From this village, one CP has been selected as facilitator, and is working in this very cluster, coordinating well. VPRC &PLF book keeper, CST & CDF were very helpful to the team. 15. Oor Koottam 85 people attended the meeting. Panchayat thalaivar, DPM, APM, PFTs presided the Oor koottam. Individual assistance, skill training and PLF issues was discussed. Social audit team reported the findings at the Oor Koottam. The attitude of the staff was reportedly anti-people at the hearing. After the report was read out and it was the turn of the public to speak, the DPM did not allow the people to speak and took the mic himself, reviewing the findings, calling out to trainees and cross questioning them. In one instance, a young lady Vennila who was a tailoring dropout trainee was present in the Oor Koottam. Vennila courageously identified herself and asserted in public that she had indeed dropped out of the training and could not complete the course. At this, the DPM sought to know from her why she had dropped out. Expressing his deep mistrust, the DPM further asked if the trainee had been compelled by the social audit team to answer in a certain way. The DPM diverting the core issue of a wrong payment gone to Jeyam Tailoring institute in a dropout scenario. The DPM openly defended the institute in this case. He intensively questioned the young lady who had courageously spoken up a truth in public. This showed that in public his attitude was against the people and in defense of the staff and institute in question. Vennila, however, maintained her stand, and repeated that she had indeed dropped out of the tailoring course. In another case, while discussing Kumaresan (HMV dropout issue), the DPM at the Oor Koottam justified dropouts saying that livelihood was affected and hence trainees were dropping out, without addressing the issue of wrongful payments being made against the dropouts. The DPM refrained from clarifying that the payments made to institutes in dropout cases should be rightfully returned to the VPRC account. Instead he has asked the youths to go and complete their trainings. 38 S o c i a l A u d i t R e p o r t : P a r t I I

39 5.3 Kottur Village, Nilakottai Block, Dindugal District Social Audit Period to Area Findings 1. Village Overview In Kottur village, totally there are 2788 households and there are 18 habitations and total population 9263 and their common livelihood is flower plucking and agriculture. Community aspects: In this village, Christians and SCs are a substantial portion. Sociopolitical aspects: The village has been announced as an open defection free village and the Panchayat Talaivar has got an award for best village for the tree plantation. Especially the Panchayat Talaivar is continuously four times selected as thalaivar and he is a member of the Congress Party. In this village the SC community was noticeably poorer than the other settlements which had visible assets. Out of the 18 habitations, Sengottai and Avayampatti are poorer (smaller, poorer lined houses, landless, SC populations), Christians live in Michaelpalayam and Inasi (almost all of PVP beneficiaries are from these habitations alone) But in 4 habitations(rayappanpatti, Annanagar, Sandanamadapuram, Salithmadapuram) not a single benefit has gone to the people even though they are in the PIP list, because these habitations are far away (8km) 13/30 SHGs are in a single habitation, that of Michaelpalayam. The other 17 habitations have fewer SHGs. 2. PIP: BPL: PIP list identifies 596 families as target, but BPL identifies 142 families as poor. One poor family was added to PIP list because the widow had no income (vulnerable category) and one family were removed from the PIP list because of death. GS approval was there, dated 15/08/2015. During social audit we 3. Individual assistance came across four families who were very poor but not included in the PIP list. The team met 52/62 beneficiaries. There were several discrepancies between registers and field verification. Some of these are: In 9 cases, there was a difference in of Rs in loan repayment, as follows: Name Register Field Visit Difference Loan Repaid Loan Repaid Jermmanammal Vimalamary Velakanni Victoria Jeyasheeli Panimatha Jeyasheeli Gnanamani Shanthimary S o c i a l A u d i t R e p o r t : P a r t I I

40 Total misappropriation Rs Importantly, beneficiaries did not have a loan card, they only had repayment receipt for the Rs Moreover, for the above 9 members, the bookkeeper has not issued receipt for repayment installment of Rs.500. We found that these members had repaid the money to the bookkeeper but not got receipts. The bookkeeper denied receiving this money in all 9 cases, but the 9 people insist they have repaid it to her. 2. Muthupriya w/o Kuzhandhaivel has received loan of Rs and repaid Rs.6000 to Renukadevi CST(Existing CST) but as per record only Rs has been entered and so there is a difference in of Rs Pathinattu and Vairamani, two members of differently abled community, have received an of Rs as per record but during the field visit they said that they have not received any loan from Pudhu Vaazhvu project. This fund misuse by Renukadevi CST has already been recorded and mentioned in the resolution register, but had not been recovered. In some cases, there were no loan card and receipts for their repayment. Total misappropriation in Individual assistance Rs SHGs The team met 18/30 SHGs. 16 SHGs were affiliated for PLF and 14 SHGs were newly formed 15 Women SHGs and 3 Differently able groups are defunct and 9 SHGs do not have bank linkage in current year. Only 3 SHGs received direct linkage and their repayment is very prompt. During the field visit we organized the meeting and asked the reason for defunct SHGs. It was found that no CST and CDF are there since the past year, because the last CST was involved in fund misuse. Members also said that if they asked PLF loan, the loans were not getting approved. No regular meetings in SHGs, only office bearers are reportedly dominating the other members, group members said. In all the SHGs, it was found that registers are not updated from 2014 and the groups are having only minutes register. No awareness about Pudhu Vaazhvu project. Members said that we don t know what is happening in this project. 5. SHG Training The team met all 12SHGs. SHGs Module III trainings was conducted and fully documented. In training attendance, signature issues were identified. A shocking thing that was noticed by the social audit team was that there was blue ink on both hand thumbs of Malliga facilitator SM and Sasirekha LH, to fill up thumb impressions on the signature column of the training attendance register. This was also verified during interaction with the concerned SHG members who confirmed that they did not attend the trainings. Only two groups - Rajakaliamman SHG and Amman SHG - accepted that they have attended the training. 6. Skill The team met 43/54 skill beneficiaries. Out of 54 beneficiaries male 52,female -2 Target 76% and non target 24% In this village 11 candidates who were met in person during field verification said that they already knew driving, but joined the training only to attain license. They have attended only for one week but fees at a rate of Rs.7650 per candidate, totaling to an of Rs.84,150 in the year 2015 for 11 candidates have been paid to the Anbu driving Institute 7. PLF ASF The team met 42/88 beneficiaries 40 S o c i a l A u d i t R e p o r t : P a r t I I

41 In the case of 6 beneficiaries, difference of in PLF loan and repaid comes to a total of Rs , as shown below. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SAC) SHG Name Name Register Field Visit Difference Loan Repaid Loan Repaid Annai therasa Christin sumathi mary Annaitherasa Lakshmi Thamarai Paramaeswari Thamarai Amuthavalli Rajakaliamman Powunthai & Poovathi In this PLF, some of the records (Loan Register, Receipt book, bills) were being updated only during the social audit verification. Further, the book keeper accepted that for loan repayment records, she has not being entering the SHG name in the Cash book. In Rajakaliamman SHG, loan documents are in the name of Boopathi but loan has actually been taken by Panchu, and the repayment is proper. Challans from the group have not been properly handed over to the book keeper. Loan card is only in the name of SHG, and not at individual level but at the same time all the loan cards got disbursed during social audit visit. PLF loan repayment receipt from 30/10/15 to 11/08/16 have been entered in the register, but SHG group name is not mentioned and because of this we were unable to identify the group which has repaid the. One member, Pownthai has taken seed money of Rs and PLF Amutha Surabhi loan led this of Rs. 40,000 so a total of Rs and she is further lending this money earning an interest. As per PLF PAR outstanding Rs.2,26,189 and PLF Total outstanding Rs.12,15,378 = PAR 19% Totally Amutha Surabhi loan is disbursed to 88 members Rs In that, TARGET: 78 were target members and is 16,40,000 and 91 % Target NON-TARGET:10 non target members and is 1,55,000 and beneficiaries 9% non-target. 83 members for livelihood and 5 for others. PLF Demand Rs.9,75,750 collection Rs. 7,07,781 and 72 % Recovery Closing balance in Bank Rs VPRC and PLF meetings are not being regularly conducted. Signatures are inconsistent in the register, and office bearers are coming to VPRC only for signatures on the cheque. There is no awareness regarding meetings. Registers were updated only during social audit visit. SAC members are not attending the meetings but records are updated signature are problematic and inconsistent. No CST and CDF in this village. 10. Tally In VPRC and PLF completely updated upto the month of August 2016 and Showing 100% repayment and no PAR% but actually we received the challan for the month of July 16 and August 16 only during social audit visit. 11. CLG Durgaiamman Goat CLG started on and 25 members are in the CLG. In this, 20 are target and 5 are non-target. They have received the infra fund 41 S o c i a l A u d i t R e p o r t : P a r t I I

42 12. Total Misappropriation Amount of Rs and CLG is not functioning. No exposure and training but for procurement resolution has been passed. The is lying unused. Individual Assistant Repayment: Rs Status of poverty 1)Rasathi w/o chellapandi, 2) Pappathi w/o Vellaiswamy and 3) Palaniammal w/o Veeran are the 3 poor families identified during the social audit who had no houses, no proper income and they are identified in Oor Koottam where it was decided to include them in the PIP list. 14. Impact during the 5- day audit Records got updated by the staff. Also, all the bank chellans (in loan repayments) were collected from people by the staff only during the 5 day social audit process. Social audit team stayed for 4 nights in the VPRC office. Panchayat Talaivar and public supported the team. 15. Oor Koottam 80 people attended the meeting. Individual assistance, skill and PLF are discussed in the oor Koottam Panchayat Thalaivar, APM M&E, APM LH, APM VF and the Nilakottai block staff attended the oorkuttam. DPM came after the Oor Koottam ended. The attitude of the APM VF was particularly hostile, and anti-people at the Oor Koottam, described as follows: While the findings about the Rs repayment misuse was raised, the APM(VF) argued against the findings, and he supported the book keeper and the staff. Of the 9 vulnerable people who had repayment issues, 5 of them spoke up on the microphone insisting that they had indeed repaid money to the bookkeeper but had not got receipts. The APM VF publicly argued against all of the beneficiaries, declaring the findings to be totally wrong, accusing all the villagers and social audit team of speaking lies. He publicly blamed the people of lying about the repayment to bookkeeper, and also threw across the PLF Loan register in anger at the Oor Koottam. He then said that the social audit team should change its findings. On seeing the APM VF s attitude, and not being allowed to speak much in the Oor Koottam, the vulnerable category beneficiaries (who had repayment issues) said they would leave Pudhu Vaazhvu Project and that in future they would not take a loan again from this project. The Panchayat Talaivar, however, accepted the findings and said that corrections should be made, and he said that in future these issues should not happen again. 42 S o c i a l A u d i t R e p o r t : P a r t I I

43 6. Kancheepuram district 6.1 Minal Chitambur, Acharapakam, Kancheepuram Social audit from 29/8/16 to 4/9/16 Area Findings 1 Village Overview Minal Chitambur village has 3 habitations, very poor families. There were many blind people, who live in huts. Electricity is a problem here, so is water. Bus frequency is low. Social aspects observed: For the meetings we convened, it was observed that people always sat separately according to their caste. Caste was also practised in giving our team water. In one case, a woman sprinkled water and cleaned the place after our team got up. Moreover, a few villagers explicitly stated that they were not comfortable with the bookkeeper (SC). 2 PIP: BPL: PIP list identifies 151 families as target, but BPL identifies 70 families as poor. Most houses were huts, with few proper houses. High poverty. 3. Individual assistance 43 S o c i a l A u d i t R e p o r t : P a r t I I The team met 31/68 beneficiaries. According to register, Krishnan had a loan of Rs. 20,000 in 2011 and had repaid Rs But he was no more, and his daughter-in-law said they had not got the loan. It came to light that the VPRC secretary Mariamma had this. According to register, Chandra had taken a loan of Rs. 20,000 in 2011, and had repaid Rs But when met in person, she shared that she had not taken this money. It was found that the VPRC Treasurer Santhakumari had taken this. Loan cards were not there for the beneficiaries. Loan documents did not have signatures. Resolution register did not have signatures, in some cases it had only 3-4 signatures instead of SHGs 20 SHGs in all. 4 are defunct (2 disability, 2 women s) The SHGs did not have bank linkage. 5. SHG Training Akshaya Unavakam, a CLG has received Rs. 47,100 for which only Rs had been actual expense, and Rs. 40,000 had been taken by the bookkeeper. When this was found out, she returned the same in cash to the VPRC account. 6. Skill The team met 19/62 beneficiaries. Many youths were not at home and could not be met. 7. PLF The team met 56/294 beneficiaries. 1. There were no loan cards, so repayments could not be verified against what people said. 2. Roja SHG has received Rs. 1,50,000 in the names of 6 members in application form, but when checked against the resolution register, 4 names did not match. We found that outstanding balance member names had been changed to those who had no outstanding balance. 3. SHGs in which PLF Secretary and Treasurer were members have much higher loans, almost 6-7 lakhs, while other SHGs had about 1.5 lakhs. 8. PAR 52% (Manual), 66% (Tally)

44 80:20 70:30 Recovery Rate 9. Functioning of CBOs (VPRC, PLF, SAC) 73.8: 16.2 (beneficiaries), 80.1:19.9 () 92.8: 7.2 (beneficiaries), 89.5: 10.5 () 6% VPRC Secretary and Treasurer could not be met for the 5 days despite efforts. Nor was the committee met. VPRC bookkeeper was the single person handling everything. SAC register was not updated since 1.5 years and had no signatures nor resolutions. 10. Tally Tally was updated upto July CLG One diary CLG, Paal Poocharam in 2011 had received Rs. 95,000 for which Rs. 75,820 was spent on Milk analyzer, milk cans, etc for which there were no bills nor proper resolutions or quotations. Moreover, of this an of Rs. 17,000 had also been spent on buying office furniture like table, cupboard, chairs, etc. 12. Total Misappropriation Amount 74,000 in total. 40,000 (bookkeeper from SHG training which she has returned during audit) + 34,000 (VPRC Secretary Treasurer had taken 16000) 13. Status of poverty Ration card getting oil was difficult for the 3 poor families we interviewed. Dependence on ration and NREGS was high. NREGS work they had obtained only for 25 days. Medical center being far away, treatment was less accessible. The people we met were very poor and were struggling to make ends meet. 14. Impact during the 5-day audit Rs. 40,000 was returned by the bookkeeper to the VPRC account. PLF recoveries also were being done as the audit went on. Last 1 year records had not been updated, but got completed by the end of the 5 day audit. 15. Oor Koottam About 150 people attended. APM M&E, Panchayat talaiver, clerk and other project staff attended the hearing. With power outage there was no mic system. During the Oor Koottam people wanted to know the names of the youths who attended the training. PLF loan was discussed at length. Follow up action: The staff promised to monitor and check into the issues of bills, update the registers and complete recoveries. 6.2 Kunavakam village, Uthramerur block, Kancheepuram district Social audit from 29/8/16 to 4/9/16 Area Findings 1. Village Overview The village has 6 habitations, the communities that live there are BC, SC, ST. SC constitutes about half the population. Mainly agriculture. They take loans for agriculture and diary primarily. 2. PIP: BPL: There are 130 people in the PIP list, and there were 2 additions, but Gram Sabha approvals were not there for the same. 3. Individual assistance The team met 19/51 beneficiaries and based on this findings are: 1. Loan cards were not there with the people. It has not been issued at all. Repayments therefore could not be verified fully. 2. Development fund has recently been opened, but transaction details were not available. 44 S o c i a l A u d i t R e p o r t : P a r t I I

45 3. In 2015, Rs. 1,02,000 has been withdrawn from the development account, but during the social audit on 31/8/2016, 9 months later, this was deposited into VKC account. For 9 months this has possibly remained with the bookkeeper. The purpose is not known. 4. In 2015, for project registers to be issued, a cheque payment of Rs.22,100 has been made. But resolution was not shown for this. On being asked, it was said that the was used to buy registers for 15 panchayats from the nearby villages! When we contacted the bookkeepers of the neighbouring villages - Paleswaram and Kadalmangalam VPRCs - about this expenditure, they denied receiving any payment from Kunavakam and said they had bought their own registers. 5. On 23/3/2015, an of Rs has been withdrawn from the VPRC account as cash. When we asked what this was for, the was immediately deposited on 3/9/2016 and receipt was shown against the same. 6. On 11/5/2016 a cash withdrawal of Rs. 27,000 has been made and when asked about this, on 31/8/2016, i.e, during the social audit, this was put back into VKC account. 4. SHGs There were 24 SHGs in all. 4 defunct. CST was not active, there were no monthly reports. She admitted the same at the Oor Koottam. 5. SHG Training Rs has been spent on the 4 th module training, but bills were there only for Rs Balance Rs bills were not shown over 5 days of the audit. 6. Skill Only 10/83 youths could be met. Masonry training payment of Rs. 46,022 has been spent on the training of 6 youths, of which Rs. 23,600 has been spent as cash. Cheque registers were not there. 7. PLF 1. Loan register, loan applications were not there for at least two days of the social audit. 2. Registers were not updated. Bills, vouchers were not proper people had loans each of Rs. 10,000 to a total of Rs. 50,000 as per Loan Register. But during field verification they said they had not received these loans. 4. In 2013, Rs. 40,000 loan to Indira Gandhi SHG and Rs. 40,000 to Mariamman SHG were given as per records. When we met the members, they denied having received the loans. The two SHG Talaivis have signed to this effect. 5. Rs. 31,61,000 to 249 individuals has been given on rotation basis. 103 people for Rs. 10,30,000 documents were presented. Documents for the balance (Loan application, SHG resolution copy, promissory note, subcommittee resolutions) were not there. 8. PAR 80:20 70:30 Closing Balance 47% (register) 67% - 33 % (registers), Tally target : :13 Rs. 63,203 (as per Tally) entry upto March 2016, Development account had no transactions, it had been newly opened Feb 2016 PLF Closing Balance General, March 2016 Rs S o c i a l A u d i t R e p o r t : P a r t I I

46 9. Functioning of CBOs (VPRC, PLF, SAC) 10. Tally Total Misappropriation Amount 12. Impact during the 5-day audit VPRC, PLF committee meetings could not be conducted despite efforts for 5 days. SAC is not functional either (from registers, attempts to meet people) Rs. 1,50,800, with break-up of: 50,000 - PLF loan not received 26,800 - SHG training 80,000 - loaned to 2 SHGs but not received (Rs. 1,65,000 misappropriated was recovered during the audit itself.) 1) Rs. 36,000 of cash taken was repaid into VPRC account after almost 1.5 years, when the social audit team pointed out. 2) Rs. 1,02,000 cash deposit was made into VKC account as the audit began. 3) 11/5/2016 a withdrawal of Rs. 27,000, and on 31/8/2016, this was put back into VKC account. This totals Rs. 1,65, Oor Koottam About 100 people attended the Oor Koottam. DPM, APMs, Talaivar, cluster staff attended. People spoke about loan differences and lack of getting a bill against repayment. One member suggested that the loan data be put on VPRC walls along with the DPM number. The DPM discussed the issues raised at the Oor Koottam and directed for corrective action. 46 S o c i a l A u d i t R e p o r t : P a r t I I

47 7. Karur district 7.1 Mullipadi Village, Kadavour Block, Karur District Social Audit from to Area Findings 1. Village Overview This is a huge village situated at about 60 kms from Karur district. With about 1319 Households in 14 habitations, the village has about 82% people(pillai) BC population. The habitations are all far flung. The village relies on agricultural cultivation. Transport facility is low. Political aspects: People said the Talaivar was not active. He did not come to the Oor Koottam. Awareness about the scheme was low. Poverty was high in the village. 2. PIP: BPL: PIP list identifies 503 households as target, whereas BPL list identifies 650 families. 3 members were added to PIP list and Grama Sabha approval dated was 3 VPRC/PLF/SAC Function 4 Individual assistance found against this. Member rotation of office bearers has been followed as per norms. There is no CDF since September On record, there are 3 CSTs - S. Josevin Rani, K Mahalakshmi, M Lakshmi. But since 4 years, CST monthly reports are being given by the bookkeeper. All of them accepted that the bookkeeper works as the CST and takes the salaries too. CST honorarium has been released till August Since the last 4 years, the cheque payment is being made in the name of one, Josevin Rani, who draws and gives this money to the bookkeeper. SAC committee monthly meeting is being conducted as per registers, but members said that they did not know much about the project, and that the bookkeeper updates the SAC register. 59/92 beneficiaries were met. None of the 59 beneficiaries met had loan card. In some cases, loan purpose was found to be different from the stated one. There were 5 member loan repayment discrepancies between registers and field verification, ing to Rs in loan repayment, as follows: Name Register Field Visit Difference Loan Repaid Loan Repaid Meenachi Arayee Rasammal Priya Sivapriya These loans have been taken in 2013, and people said the repaid was with bookkeeper. None of the members had insurance for the animals bought from loans. 5. SHGs 48/61 SHGs were met by the team. Of these 26 SHGs were defunct. (based on meetings conducted with SHGs, interactions with SHG Members, and verified against SHG registers and documents) 2/48 SHGs have never taken a bank loan. 6. SHG Training 23/61 SHGs have completed IVth module training. 47 S o c i a l A u d i t R e p o r t : P a r t I I

48 7. Skill All 23 SHGs were met by the team to verify training data. SHG IVth module training expenditure based on registers (cash book) was Rs.42634, but resolution have been passed showing expenses of Rs in October When asked about the difference in, the bookkeeper said she did not remember what the was spent on. Photo documents were present only for 2 SHGs training. Balance Payments for this training have been made through 3 cheques given in the name of SHG Muthaalamman, in which the bookkeeper is the SHG President. 13/19 youth beneficiaries were met by the team. Differences between records and field verification are as below. 1 youth has dropped out (3/45 days), but training fund was found to have been released Rs. 4000, as shown below: Name of the Training Type Institute Amount youths (Name withheld) Driving Lakshmi Driving School released 4000 (cheque no:264406) This youth also came to the Oor Koottam and publicly confirmed his dropping out. Gender ratio Gender ratio was skewed at 3 males: 1 females (15:4) 8. PLF ASF 156/190 beneficiaries were met by the team. None of the 156 beneficiaries met had a loan card. Verifications were done through receipts. 9. PAR PAR: 0% 80:20 69:31 member, 61.8:38.2 Amount 70:30 95 % Livelihood Recovery Rate 100 % Recovery Closing Balance Rs Tally Tally upto August CLG 1. Deepam Goat CLG Receive the of Rs The common procurement is purchased (weight machine). Quotation and bills are available. 2. CLG is active 12. Total Misappropriation Amount 3. CLG Accounts was handled by the bookkeeper only Rs. 23,654 (Individual Assistant Repayment : 4000, Skill Training :4000, SHG IV th module training :15654) 13. Status of poverty During the social audit exercise some poor families were met. Manisankaran is bed-ridden and is very unwell. His mother cannot use one of her hands, yet she earns through NREGS works. They eat only one time a day, by buying food from a neighbour. They live in a broken mud house, and are landless. Although the family is in PIP list, they said they could not afford a loan since they could not repay it. They have a ration card and are surviving through this. Many other cases of OAP and NREGS not working well came up during discussions. 14. Oor Koottam 145 people attended the Oor Koottam on 20th September 2016, which lasted for 1.30 hours. The APM M&L, Facilitator and ward members were present at the Oor Koottam. All the issues identified were discussed at the Oor Koottam. One of the youths (name withheld) spoke at the Oor Koottam saying he had dropped out of the Driving Training Institute. The attitude of the staff, to this, was startling. APM M&L instead of addressing the issue of payment being made in a dropout case, began accusing the youth of speaking lies. 48 S o c i a l A u d i t R e p o r t : P a r t I I

49 After the Oor Koottam ended, the APM M&L continued shouting at the youth who had said he dropped out of the Driving Institute. He asked the youth why he had spoken to the social audit team. He also shouted at the social audit team asking why the team had talked to youths at all. He said youths could only speak lies, and hence they should not be asked about their training at all. Who asked you to talk to the youths? he rudely asked the CPs who were in the audit team. He failed to talk about the payment gone to Lakshmi Institute. 7.2 Senthamangalam West village, Aravakurichi block, Karur Social Audit from to Area Findings 1. Village Overview The village is situated in wilderness, with about 995 households in 17 habitations, the village is about 55 kms from the main district. The habitations are spread out over 10 KM with challenging transport inside the village. Political aspects: The President, Nansundeeswarar, is a powerful person with his family having been in power for 8 terms continuously. The last 40 years the family has had a President. People said that the President usually attends all family functions of all the villagers. Community aspects: The village has about 70% people BC (Gounder) population. Most people rely on NREGS works and Tiruppur garments for work, where they work in shifts from 8.30 to 6.00 PM or 6.00 PM to 11.00Pm earning Rs. 350 per day. The village is fully dependant on rains for agriculture. Social aspects: In a few instances, clear signs of caste issues were noticed by the team. In one case, the CDF (SC) was separately served coffee in a different disposable cup, while others were served in tumblers. 2. PIP: BPL: PIP list identifies 209 households as target, whereas BPL list identifies 643 families as on Mar Gram Sabha approval copies were available for verification. 36 families were added and 34 families were removed from the PIP list. but GS approvals were present only for 27 member additions. Approval dates were Aug 2013 (14 members), May 2013(13 members) PIP deletion: 30 members names were deleted from PIP list. VPRC resolutions dated mention 26 of these names, but Gram Sabha approvals for the 30 deletions were not there. 4 members whose names had been removed did not 3. Individual assistance have VPRC approvals either. 47/53 beneficiaries were met by the team. In some cases, the member loan purpose is different from record and field visit. There was only one case of loan repayment difference between registers and field verification of Rs. 1000: Name Register Field Visit Difference Loan Repaid Loan Repaid Sivaselvi This is cash in hand of CDF (Rs.1000) and she admitted to this. None of the members had insurance for animals purchased. None of the members had a loan card. Verifications were carried out on the basis of receipts alone. 49 S o c i a l A u d i t R e p o r t : P a r t I I

50 17/70 members did not get the individual loan, reason: the members felt they did not have the ability to repay the loan and hence did not want a loan. 4. SHGs 19/22 SHGs were met by the team. 3 SHGs were defunct. Reason: 2 SHGs had a bank loan repayment problem, and 1 SHG the habitation has had a fire accident a year ago. Roja SHG has not taken a bank loan at all. 7 SHG do not have a bank loan in the present financial year. 3/22 SHGs are special SHGs and are being monitored by the CDF, but there is no CST appointed since July The old CST Ramaprabha (who is also the President's sister-in-law) is monitoring the 8 SHGs. The CDF has not got honorarium and monitoring cost in the last 4 months. 5. SHG Training 8/22 SHGs have completed IV th module training at a cost of Rs Bills and documents were in place and people were able to share their learnings about trainings. 6. PLF 17/22 SHGs were federated with PLF. 15/17 SHGs members had paid their equity. 13/15 SHGs have received a PLF loan. All 69 beneficiaries were met by the team. In a few cases, the member loan purpose is different in record and field visit. None of the beneficiaries had a loan card, they did not have loan repayment receipt either, as found during field visit and beneficiary interaction. But on the last day of social audit, loan cards were being prepared for 10/13 SHGs in the VPRC office. When we audited these loan cards, there was a difference of Rs between the loan card and PLF loan repayment register (the was due to loan interest and this too needs to be reflected in the loan cards). None of the beneficiaries had animal insurance as found based on member interaction. 7. Skill 38/41 youth beneficiaries were met by the team. Differences between records and field verification are as below. In the case of 5 youths, who were met during field visit verification, placement was not given after their training, but as per the registers, 20% fund has been released, with the break-up of: No. of youths Training Type Institute Amount released of 20% 3 youths JCB Visvam 3*1600=4800 Institute 2 youths Beautrician Belisiya 2*920=1840 This s to Rs youths who were met during field verification said they did not get soft skill training. One youth has gone for training to National Diary Development Board (NDDB). Payment has been made on for Rs through cheque no: , but bills not available. Certificate was also not present. 11 youths completed the tailoring training to Amaidi Kalluri in July 2015, but certificate has not been issued till date to the youths. They have not been placed, and accordingly 20% fund also has not been released. 8. PAR 4.5% (Based on registers) 50 S o c i a l A u d i t R e p o r t : P a r t I I

51 Recovery rate 80:20 70:30 Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) 88.62% (Based on registers) 71:29 member, 72.7: % Livelihood Rs All 3 - VPRC, PLF, SAC committees member meetings were held by the social audit team, and the members were found to be active. But presently, there is no bookkeeper appointed since one month. At present CST not available since two years. SAC member (report-writer) has joined SAC in Aug 2013, but she is also the VPRC treasurer since Oct 2015 and continues to hold two posts. VPRC secretary has not been rotated for the past 4 years. PLF incentive fund received of Rs.1 lakh is in old PLF account in past 3 years, but till date the fund transfer has not been made to the current PLF account. ILF, GAAP meetings have not been conducted, registers were not present over 5 days. The staff present did not know much about the panchayat habitations and SHG members said they were not visiting it regularly. Staff registers did not have regular signatures. 10. Tally Tally VPRC and PLF updated upto August 2016 and 8 SHGs updated in August CLG The Kathambam mushroom cultivation CLG has received fund of Rs in November The training and exposure visit were complete, but CLG not functioning, based on member interaction. People said more fund was needed to arrange infrastructure for the same. The money remains unspent. 12. Total Misappropriation Amount Rs.6640 (skill ) 13. OorKoottam 145 people attended the Oor Koottam on 20 th September 2016, which lasted for 1.30 hours. The APM M&E, Panchayat President, ward members and cluster staff were present at the Oor Koottam. All the issues identified were discussed at the Oor Koottam. The President was participated actively, clarifying/asking questions on the issues about missing PIP household approval, member rotation, new bookkeeper and new CST appointment as well as approval in next Grama sabha. He also asked about the 3 defunct SHGs, the 3 SHGs affiliated this week. Komarapalayam habitation fire during which registers were burnt and about Rs cash collected was burnt was also discussed. At the Oor Koottam people asked the Talaivar for a place for SHG meetings in the burnt habitation of Periyakattuthottam, at which Talaivar promised a government building for conducting SHG meetings. He also promised to arrange for share auto for transport within the village. Mrs. Ramaprabha, old PLF Secretary, promised at the Oor Koottam that the incentive fund would be transferred to new PLF account this week. Team leader promised, at the Oor Koottam that the 11 youths certificate would be disposed within 2 days. APM M&E was supportive of the process. 14 Impact of social audit 1) Loan cards were given during the social audit period 2) A new bookkeeper was selected during the Oor Koottam 3) VPRC Vouchers, PLF Receipt for 9 months, PLF Voucher Book, PLF Incentive Accountbook, VPRC Cash book were all updated during the audit. Skill documents 51 S o c i a l A u d i t R e p o r t : P a r t I I

52 were present only for 14 members, for 26 members skill documents were put in place during the audit 4) Tally updation till date 7.3 Baganatham village, Thonthonimalai block, Karur District Social Audit from to Area Findings 1. Village overview Baganatham panchayat, with 10 habitations, has about 1090 households. Most of the people are in labour (garment companies) and work on daily wage basis. The other livelihood is mostly cattle rearing. The President or Talaivi is a woman Jayachitra, but it is her husband who is the acting President. The panchayat, with an 'A' grade rating, seems to have been visited by World Bank specialists and state specialists. Community aspects: about 83% population being BC. There is a community issue over use of water in this village. Kaveri river is the prime source of water that comes through pipeline and tank system, but the tank in this village is not available for use to the SC community, as told by women of the village. Other schemes: NREGS and OAP payments are also problematic in this village. 2 PIP: PIP list identifies 293 households as target, whereas BPL list same as PIP families. BPL: 3. Individual assistance 88/97 beneficiaries were met by the team. In some cases, the stated member loan purpose was found to be different in record and field visit. Loan card was not present with any of the beneficiaries. There were two member loan repayment discrepancies between registers and field verification. In one case, there was a difference in of Rs.1300 in loan repayment, as follows: (Field verification based on voucher) Name Register Field Visit Difference Loan Repaid Loan Repaid Kannammal S.Vellaiyammal SHGs 34/34 SHGs were Met by the team. 2 SHGs were defunct. 8 SHGs do not have a bank loan at least one time. 1 SHG bank loan has been repaying before three Years Ago. 5. SHG Training 15/34 SHGs have completed IV module training. Bills and documents were in place and people were able to share their learnings about trainings. 6. PLF 95/100 beneficiaries were met by the team. Last month s PLF repayment receipt has not been issued to the members. None of the beneficiaries had any insurance for the animals. 7. Skill Genter ratio 37/43 beneficiaries were met by the team. Training fund release 33 members project fund and 10 member Mathi (Mahalir Thittam) fund. 1 Male:1.4 Female 8. PAR 80:20 70:30 Recovery Rate 0% (registers) 82:18 member count, 81:19. 91:9 member count, 94:6 92% 52 S o c i a l A u d i t R e p o r t : P a r t I I

53 Loan outstanding Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) Rs Rs Overall committees are functional, and are meeting regularly, as seen from registers and interactions. When OAP issue was discussed, we tried to find out why the Banking Correspondent (BC) was not active. The current CST Radha (SC community) was the former BC. She informed us that people would not take money from her hands usually and that she faced discrimination issues. She has stopped being the BC due to this issue. CLG members also confirmed that the discrimination issue was true. Further, members of the CLG shared that the CST, with her infant child in her arms, would at times not even be offered a place to sit down. Reportedly, some of the staff members practised this too. 10 Tally VPRC, PLF and SHG updated till August CLG The Rojavanam Garments CLG has received fund of Rs. 1 lakh. The fund is lying unused. Exposure visit has taken place at Rs It was found that each of the CLG members have taken a loan from PLF and are using that money to buy machines. They are working together in a common place. Garment sales are happening too. 12 Total Misappropriation Amount 13 Staff attitude during social audit Rs (individual loan repayment ) The attitude of the staff was as follows: On the second day of the social audit, the DPM spoke over phone to one of the team CPs who was conducting the social audit, heatedly arguing with her over the methods followed during the social audit. Over the call, he has verbally harassed her, at one point even asking her to make adjustments with her findings, driving her to tears. Given that the CP coordinator in question is not even a graduate, but is a simple woman from a very poor family living in a hut house, this show of power by the DPM for the mere act of conducting a social audit speaks of all the elements that came into play during this telephonic conversation between two unequal people: class, education, caste and abuse of authority taken out on a poor, illiterate, community woman courageously leading a social audit team in a village unknown to her in a project that is about women SHGs. 14 OorKoottam Over 152 people attended the Oor Koottam on 20 th September 2016, which lasted for 1.15 hours. The APM LH, President, ward members and cluster team were present at the Oor Koottam. The Talaivar said that for VP incentive, a proposal had been taken in 2013 on building a school compound wall, however, no fund was released subsequently. He wanted to know from the project why this was the case. The case of a 15-year old orphaned boy not having a ration card was brought up and discussed at length. The staff promised to help him out. There is a community issue over the use of water in this village which surfaced over the Oor Koottam. The case of a water tank being built in the BC habitation, but meant for the use of SC population was brought up. The issue could not be addressed. OAP and NREGS issues were also discussed at the Oor Koottam. President said funds had not come and hence he could not pay this. Bank being far was also raised. Banking Correspondent (BC) present was newly joined and said she would become active soon. 53 S o c i a l A u d i t R e p o r t : P a r t I I

54 8. Krishnagiri district 8.1 Palayamkottai Village, Thalli Block, Krishnagiri District Social Audit to Area Findings 1. Village profile This village situated at about 60 kms from Krishnagiri district. There are 3800 households. The village relies on agricultural cultivation nursery (floriculture), vegetables are grown, cattle-rearing 3 language are spoken by the people here - Tamil, Telugu and Kannadam 2 PIP: BPL: PIP list identifies 348 families as target, while BPL identifies 470 families as poor. No changes were made to the PIP list. 3 VPRC/PLF/SAC Function 1. VPRC Meeting last two months were not conducted, based on resolution registers.(july, August 2016) 2. As per VPRC Office-bearers rotation norms, member changes have taken place in but new members are not active. 3. VPRC books of accounts were not updated for last two months July, August This was the case for the Individual Assistance Register, Skill training register,cashbook, bank passbook) 4. For the period between to , VPRC expenditure bills and voucher were missing were not available over the 5-day audit period. Despite repeated requests this could not be presented. This s to Rs. 1,22,000 (this total is calculated from the cash book) 5. Tally System was not available at the VPRC office 6. All VPRC activities are being handled by the VPRC bookkeeper only, as shared by the committee members. 7. The SAC committee last meeting was conducted in November PLF Resolution Register was not available in the office 9. Separate bookkeeper has not been appointed for PLF, it is the VPRC 4 Individual assistance bookkeeper who manages this too. The team met 32/47 beneficiaries. Findings are as follows: 1. There were 20 discrepancies between registers and field verification, ing to a total difference of Rs.44000, as shown below: Name 54 S o c i a l A u d i t R e p o r t : P a r t I I Loan Amount Register Repayment Field Visit Repayment Difference Shalini Kumar Dhanrajamma Roja Mottama Krishnamma Balakrishnan Mathurumma Lakshmi Marappa Mala Pachamma Manju Savitha Munikka Malasamma Nagamma Narayanamma

55 55 S o c i a l A u d i t R e p o r t : P a r t I I Chinnamma Jayamma Total loan repayment difference in the case of the 20 individuals above is Rs. 44, Individual loan cards have not been given to beneficiaries. This means that beneficiaries do not have a record and cannot track their repayments 3. In the last two months (July, August 2016), individual assistance repayment is 0. Fund misuse: Rs. 44,000 5 SHGs 1. Total number of SHGs in this village is 22, but of these only 2 are affiliated to PLF, whereas 20 are affiliated with the NGO IVDP. 2. There are 6 newly formed women SHGs and 1 differently abled SHG. In the case of 7 SHGs which reportedly have bank linkages, documents for the same are not available with VPRC. 3. all SHGs are functional, and SHG registers were found updated in Kannadam, Telungu as well as Tamil languages 6. SHG Training 1. 9 SHGs have received 4 th module trainings as per attendance records, but no photos, reports, schedules could be found. 2. One SHG told us that only 9-10 members had attended the trainings. Attendance was shown for full membership in every SHG SHGs did not receive 4 th module trainings, as found based on SHGs meeting and member interaction during the 5-day period. But, in records, training expenditure has been booked for Rs.13,920 against these trainings. Found based on cash book. Fund misuse identified: Rs.13, Skill 1. The team met 23/24 skill beneficiaries 2. As per records, SRA Institute has conducted Electrical/Home Appliance training from to for 3 students (1.Balakrishnan, 2.Amaresh and 3.Dhanapal). Course fees at the rate of Rs.5700*3 persons =Rs. 17,100 has been paid to the institute from VPRC account. During field visit, the team met one of these 3 youths, Balakrishnan, who said that the only attended the training for one week and dropped out after that. But the institute has submitted 30 days attendance records and taken full payment from VPRC. The second youth, Amaresh, said he did not attend the training at all. Full attendance records were found for all 3 the youths and all the 3 payments have been done. 3. It was found out during the Oor Koottam meeting on the 5 th day, that CSC Institute had directly approached and mobilized 15 women for tailoring training without approval from Pudhu Vaazhvu project, charging Rs.800 as contribution from each of them. But after 15 days this training was suspended. The 15 women have signed a letter to this effect, when they pointed it out after the Oor Koottam. They named a person called Sudhakar from CSC Institute, who had mobilized in the name of Pudhu Vaazhvu project. The of Rs.800 X 15 = Rs.12,000 needs to be returned to the women. 4. Another youth, Kaviya Nagaraj, went for Tally training to CSC Institute. She said that she had paid Rs.5000 to the training institutes as fees. The VPRC also has paid Rs.4900 as fees for this training, resulting in double payment. 5. For some youths who have completed their course, employment certificates were missing in the VPRC

56 Fund misuse: Rs. 22,100 (17, ) 8. PLF ASF The team met 37/50 beneficiaries. Findings are as follows: ASF loan card has not given to the SHG members Sri Mariyamman SHG has taken an ASF loan of Rs.1,00,000 in the names of 4 members, as per PLF documents. But during field verification it was found that 10 members have split and taken this. 9. PAR 80:20 70:30 Recovery Rate Closing Balance PAR: 0% 85:15 95:05 100% Rs. 1,95, Tally Tally system was not available in VPRC Office, so could not be audited 11. CLG Sri Vinayaga Poocharam for Roja Nursing activity has been formed. The CLG is 12. Total Misappropriation Amount primarily handled by the VPRC bookkeeper only Individual Assistant Repayment : 44,000 Skill Training : 22,100 SHG Training : 13,920 Total Amount: Rs. 80,020 Missing VPRC bills : 1,22,000 (some of this was hurriedly prepared on Oor Koottam day) 13. Impact during the 5-day audit The bookkeeper returned individual assistance repayment Rs. 12,000 into bank account and also showed this challan at the Oor Koottam. 14. Oor Koottam 60 people attended the Oor Koottam on 3 rd September 2016, which lasted for 2 hours. APD II, Social Audit Consultant, Panchayat President and the project staff APM, cluster team attended the Oor Koottam. All the issues identified were discussed at the Oor Koottam. Bookkeeper Arulmani accepted before the people that she would return the individual assistance difference (misuse) identified by the team. Bills for Rs. 1,22,000 were hurriedly prepared just before the Oor Koottam began by the staff, on learning that APD-II was expected at the hearing. 56 S o c i a l A u d i t R e p o r t : P a r t I I

57 8.2 Naickanur Village, Uttankarai Block, Krishnagiri District Social Audit from to Area Findings 1. Village Overview Naickanur Village has 3 habitations with 530 households. Most of the people rely on agriculture, basket weavers(olai) and on NREGS work. Panchayat Talaivar is not much involved with work, it is the Panchayat Secretary who handles most of the work, said the villagers 2. PIP: BPL: PIP list identifies 170 families as target, but BPL identifies 223 families as poor. No changes were made to the PIP list. 3. Individual assistance The team met 39/41 beneficiaries. One case of repayment difference as follows: 57 S o c i a l A u d i t R e p o r t : P a r t I I Name Register Field Visit Difference Loan Repaid Loan Repaid Chinnakannu Misuse identified: Rs SHGs The team met 11/16 SHGs. 10 SHGs were affiliated with PLF, and 6 were newly formed. 3 SHGs do not have bank linkage in current year. All SHGs are properly repaying bank loan. 5. SHG Training The team met 11/11 SHGs. As per records, 11 SHGs have received training, conducted for 379 members against an expense of Rs But during field visit it was found that only 10 SHGs or 297 members had attended the trainings. Signature differences were found in attendance, and bills were not proper. Silampu oli SHG has undergone 3 days of training as per records but during field visit it was found that the training was not conducted at all. Amount spent in record for this training was Rs For 8 SHGs, training reports and photo documents were not there in VPRC office. Misuse identified: Rs Skill The team met 13/18 skill beneficiaries youth (Prakash) did not go for training, but training fund of Rs has been paid from the VPRC to Sairam Driving Institute youths (Murugan, Kandhan) went for 3-4 days but dropped out after that. Driving trainings. VPRC again has paid Rs. 10,500 to Sairam Institute and training documents (attendance, employment certificate, course certificate) were not there. They have signed to this effect. 3. Many trained youths, employment certificates and documents were missing in the VPRC office. Misuse identified: Rs PLF ASF The team met 83 /87 beneficiaries 83 members loan has been given correctly and 100 % repayments. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 0% 69: % Livelihood 100 % Rs.1,73,954

58 9. Functioning of CBOs(VPRC,PLF,SAC) 1. For the period from to , VPRC expenses - bills and vouchers were not there in VPRC office, for a total of Rs.25, Social audit committee constituted under the project is not functioning but Resolution registers were found updated to current month. The finding is based on interviews with 2 social audit committee members who were met by our team. 3. VPRC monthly meetings are not conducted, but resolutions are passed every month in the registers. Finding is based on interaction with the VPRC members, who also said that all the VPRC activities were known to the VPRC Bookkeeper alone. 10. Tally Tally last updated in March CLG CLG formed for weaving activity has received the fund of Rs and made expenses Rs.36,400. But till date it is not active. Bills were not present for this, and the procured materials were not shown, hence this is being identified as misuse. 12. Total Misappropriation Amount Total : Rs. 46,279. Individual Assistant Repayment : 3000 Skill Training : 15,750 SHG Training : 2160 PLF Loan : 0 Missing /false bills (VPRC) : 25, Status of poverty Two families identified during social audit are as follows: 1. One very poor ST family was met who had not received any assistance from the project. 2. A family has 3 children, the mother had committed suicide, while the father was imprisoned. The old lady in the family takes care of all the 3 children. They were in need of a loan, and haven t got one. 14. Oor Koottam 200 people attended the meeting. Panchayat Talaivar did not attend. Cluster staffs, APMs were present. All issues were discussed at the Oor Koottam. 58 S o c i a l A u d i t R e p o r t : P a r t I I

59 8.3 Santhanapalli Village, Kelamangalam Block, Krishnagiri District Social Audit from to Area Findings 1. Village Overview There are 1525 households in this village and spread across 20 habitations which are all far flung in this hilly region. The village is at a distance of 60 km from Krishnagiri town. Majority livelihood: agriculture (flower nursery, vegetable cultivation, cows and goats). Languages spoken: Tamil, telungu, kannada, the village being closed to the borders of both states. Other aspects: Bus frequency is low, being a hilly area. Panchayat President is a woman, but it is her husband who discharges the Talaivar functions. 2. PIP: BPL: PIP list identifies 492 families as target, but BPL identifies 617 families as poor. The PIP list did not have any changes. 3. Individual assistance The team met 92/98 beneficiaries. In case of 6 beneficiaries, there was a difference in s of individual assistance repayments, between registers and field verification. The total difference is Rs.18,000 Name Loan Register Field Visit Difference Amount Repayment Repayment Gowri Pushpa kovindaraj Nagaraj Manju Arjunan Moreover, none of the members had a loan card. Loan assets had not been insured. Total misappropriation Rs SHGs 26 SHGs were affiliated with PLF and all SHGs were functioning. CST monitoring was found to be weak, and CST works for very few SHGs. 6 SHGs are being monitoring by the bookkeeper, the SHG members said during interactions. For 26 SHGs after affiliation, there was no bank linkage. 4 SHGs are still active with Seed NGO and refused to share records with us. 5. SHG Training 4 th module trainings have not yet been conducted for SHGs. 1 st and 3 rd module trainings were conducted in VPRC, but photo documents and reports were not available in VPRC. The team met with SHG Members who said that they had attended the trainings 6. Skill The team meet 49/49 skill beneficiaries. 1. As per records, 7 youths have been trained in welding from Diamond institute. But course certificates and employment certificates were not present on the day of office audit. Course fee per person at the rate of 7*Rs.7500 =Rs.52,500 has been paid from the VPRC account. The course duration is 90 days but training has been conducted for 20 to 30 days only, based on what the youths said. 59 S o c i a l A u d i t R e p o r t : P a r t I I

60 2. Praveen Kumar has been given Tally training from Appolo Institute. He dropped out of the training, but full course fees has been paid from VPRC, an of Rs As per records, skill training has been provided to 49 youths, for a training of Rs. 4,14,620 which has been paid from VPRC to various skill institutes. But bills of Rs. 2,11,410 were missing and during the audit period this was not produced. 4. Another youth, Amsa, has completed her Tally course but not received her course certificate and she is not employed anywhere. Total misappropriation of Rs. 56,320 Bills missing Rs PLF ASF The team met 58/61 beneficiaries, no repayment differences. PLF DCB Calendar and Loan Monitoring registers were not updated. 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SAC) PAR: 0% 94:06 95:05 100% Rs Rotation norms have been followed. 1. CST- one habitation SHGs (9 SHGs) are being monitored. Other SHGs are not being monitored. 2. VPRC Meeting has not been conducted regularly, and the committee members were not aware of the activities or transactions, as found during member interactions and interviews. 3. As per the Social Audit Committee registers, resolutions have been passed. But VPRC, PLF, SHG activity not known to SAC members. 4. VPRC expense bills have not properly been maintained. 10. Tally VPRC office not available EB Connection and Tally system 11. CLG Mullai Roja Poocharm started Roja Nursery Activity and received the of Rs But no expenses have taken place. 12. Total Misappropriation Amount Individual Assistant Repayment : Skill Training : bills missing skill training : SHG Training : 0 Total Amount : 2,85, Status of poverty Sanjeev has received Individual Assistance loan of Rs from the VPRC, for dairy activity. But no insurance was there for the cow, so his cow is now dead and he cannot repay the loan 14. During the 5 day social audit : experience Social audit team stayed in the audit village in the panchayat office. There was no electricity or lighting. The village being very hilly, in a forest area, with very low bus frequency. The dialect of the people here was different. 15. Oor Koottam 150 people attended the meeting. APD II and SAC Consultant, Panchayat President and the project staff APM (cluster team) attended Oor Koottam. Individual Assistance repayment mismatches, Skill training, SHG Training issue were raised in the Oor Koottam. Individual assistant misappropriation accepted the CDF at oor koottam. 60 S o c i a l A u d i t R e p o r t : P a r t I I

61 9. Madurai district 9.1 Kuppalanatham Village, Sedapatti Block, Madurai District Social Audit from to Area Findings 1. Village Overview There are 696 households in this village, and 3 habitations. Majority livelihood is agriculture and cattle rearing. Social aspects: No toilet facility, no water facility. Cauvery river is the source of water, distributed through a pipeline and tank system used for drinking water. For all other domestic uses, salty water is used. Community aspects: In two habitations BC and MBC reside, only in Kuppalanatham habitation a few SC communities are there. Political aspects: Women president named Hema Kanagamani. She is discharging the duties herself and attends all the meetings VPRC and other schemes too. Status of poverty: Nearly all the houses have goat and cows. People rise early and are engaged in cattle rearing. There are no thatched houses, most houses have sheet roofs. 2. PIP: BPL: PIP list identified 236 families as target, of which 139 are poor, 97 are very poor, but BPL identifies almost double this number, at 462 families. One disabled member, Pandiammal, has been added to PIP list on , the 3. Individual assistance Gram Sabha resolution for the same was present in the VPRC. The team met 38/42 beneficiaries. 1. Loan cards were not given to members. In some cases, the income receipt (for repayments) in Development account was written without a carbon paper. 2. Overall, there were no differences in repayments. 3. Pandiammal and Saravanakumar had received loans without loan applications. This came to light from analysis of cash book and passbook which had entries reflecting the loans. 4. VPRC Development account registers were not updated for two months in the period of to SHGs The team met 14/22 SHGs. 13 SHGs were affiliated for PLF and 9 were newly formed. 1 SHG was defunct. 15 SHGs do not have bank linkages in current year. 5. SHG Training The team met 22/ 14 SHGs. No signature differences were observed in training attendance. Training year and bill s were verified and found to be consistent. 6. Skill The team met 36/44 skill beneficiaries. Documentation in skill was not proper, as described below. 1) As per registers, 5 youths had attended tailoring training. An of Rs has been released against this training, but VPRC resolution books did not have the member names list. 2) 39 people had gone for training, but in youth skill training register, these 39 members list was not updated. There was a rough paper containing these names. 7. PLF ASF The team met 84/90 beneficiaries, and there were no repayment differences. 61 S o c i a l A u d i t R e p o r t : P a r t I I

62 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SAC) PLF Incentive Fund loan was found to be issued to 9 members for an of Rs The has been given as per records, but in PLF Resolution records, only the SHG name was found but not a member wise listing. There should have been a member-wise listing of the loan details and this was not found. PLF loan register not updated for the months of July, August PLF General fund accounts for the period April to August 2016 was not updated. On the last day of the social audit exercise, this was completed. PLF PAR outstanding 4750 and PLF Total outstanding Rs = PAR%00 88 % Target 100 % Livelihood PLF Demand Rs collection Rs and 94 % Recovery Cash Rs. 0, Bank Rs SAC register had signatures only until October VPRC committee members did not know about transactions, as was seen from interactions with members. VPRC Cash book was last updated on 18/7/2016 (but this got updated during social audit) 10. Tally Tally Transaction updated in VPRC account completed upto PLF Transaction updated upto month of June PLF General fund accounts updated upto PLF incentive fund account, VKC accounts not updated in tally. 11. CLG Project fund received in 95500/- dated on Karuppusamy Milk Production CLG has been formed. Meeting records not updated for July-2016, August It was found that CLG members fees collected in 8900/- has been deposited in bank, but 2900/- not updated in bill books. 12. Total NIL Misappropriation Amount 13. Status of poverty Below is a short profile of the poor families met during social audit: 1. We met a person named Marriammal, W/o Raju. She is only 28 years old. Raju had been affected with HIV. The wife came to know of this only 6 months before his death. She has 2 children a girl, a boy. No proper house for her to stay. Her daughter had died of a snake bite. Her son and she herself are now affected with HIV. She is going for MGNREGS work and she is unable to do work. She received 3 free goats through Amma Thittal, now she has 6 goats. But she is left out from the PIP list. 2. We met another person named Subbulakshmi w/o Radhakrishan aged 48. Her husband had remarried and died one year ago. After his death, the second wife has taken over the house and left her alone without a place to live in. Now the first wife is living in a broken house at a rent of Rs. 50 per month. She doesn t have an MGNREGS card, nor is she an OAP beneficiary. She has one daughter who has recently married out of the caste. Subbulakshmi has received individual loan of Rs from VPRC and has repaid it. Now she has received Rs and is repaying it 14. Impact during the 5- day audit properly. We met the special SHG which had been defunct for over 2 years. The members agreed to activate it again from this month. 62 S o c i a l A u d i t R e p o r t : P a r t I I

63 Registers updated during social audit: ASF loan ledger, General account register, incentive fund registers were updated. Development register were updated 15. Oor Koottam 289 people attended the meeting. Panchayat President Hema and Secretary attended this Oor Koottam. APM VF, Team leader, Facilitator attended. Mr Saravanakumar, disabled person spoke in this Oor Koottam that he benefited by this project. Moiakkal w/o Chinnan, spoke saying I am an aged person, widowed, but I am not in the PIP list. Lakshmi w/o Chellandi also is a very poor lady who was not in the PIP list. Patchiammal w/o Periyavotchan is paralyzed for more than one year, but not included in the disabled list. Many persons asked for OAP in this Oorkootam, and some non target members also raised that we need ASF loan. 63 S o c i a l A u d i t R e p o r t : P a r t I I

64 9.2 Thumbakulam Village, Kallipatti Block, Madurai District Social Audit from to Area Findings 1. Village Overview There are 512 households in this village, and 2 habitations namely Thoombakulam and T.Pudhur. Majority livelihood: agriculture and cattle rearing. Social aspects: No toilet facility, no water facility in the village. Cauvery river is the source of water, distributed through a mini tank system used for drinking water. 4 mini tanks are there in one habitation. For all other domestic uses salty water is used. Community aspects: BC and SC reside in Thumbakulam. In T Pudhur, a few SC and MBC communities are there. Political aspects: Talaivar, V.Katturaja, is said to be active and attends all the meetings. Status of poverty: Some go for flower plucking. Most of the people have Goat and cows. They go for MGNREGS work. 2. PIP: BPL: PIP list identified 154 families as target, of which 76 are poor, 80 are very poor, but BPL identifies 219 families. Ten disabled members names have been deleted from the PIP list on , the resolution for the same was found in the VPRC(reason for 3. Individual assistance 64 S o c i a l A u d i t R e p o r t : P a r t I I deletion : 8 migration, 2 dead) The team met 29/39 beneficiaries. Loan cards were not given to them. There were no differences in repayments. 4. SHGs The team met 20/20 SHGs SHGs were affiliated for PLF and 3 were newly formed SHG was defunct. 13 SHGs do not have bank linkages in current year. 3. Members of SHGs reported that they visit the bank only once in two or three months. 4. Muthumariyamman SHG, internal loan recovery Rs collected by SHG Talaivi (animator) Kalayarasi but she has not deposited this in the SHG account. So the is with her. And during field verification when this was found, she accepted and promised to repay this. Because of this issue, the SHG has not been functioning for the past 18 months. 5. Similarly, in Kurinji disabled SHG, internal loan recovery of Rs had been collected by the animator Murugeswari but was not deposited in the bank account of SHG. The was used by her for her own use without the knowledge of the SHG members. This came to light during the field verification process. 5. SHG Training The team met 20/ 20 SHGs. No signature differences were observed in training attendance between registers and field. Documents were verified and found to be true with door-to-door visit. 6. Skill The team met 26/42 skill beneficiaries. No major issues were found. 5 youths who have taken driving license are not working as driver, but are doing masonry work.

65 7. PLF ASF The team met 74/79 beneficiaries, and there were no repayment differences. Loan cards were not given to all SHG members. The repayment is done through bank by the SHG members, who then give the bank receipt to the bookkeeper. In return for this, the bookkeeper has to give them an income receipt when she has not been giving. Till now 3 groups did not receive the ASF loan. (2 SHG 1 Disable group) 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs(VPRC,PLF,SAC) PLF PAR outstanding and PLF Total outstanding Rs = PAR:7% 94 % Target 95 % Livelihood PLF Demand Rs.64816/collection Rs and 99 % Recovery Cash Rs. 0, Bank Rs /- During the team visit VPRC, PLF meeting could not be conducted. During the field visit, we met some of the members. The VPRC Treasurer, Meenakshi, said We don t know the meeting date and I don t go for the meeting. They call me only for taking s, which we withdraw and give to the book keeper. VPRC resolution note book (older books) was not found in the VPRC. SAC meeting resolution books and records updated for last 4 months but no signatures where found. CST monthly report last four months (May-16 to august-16) had no reports. 10. Tally Tally Transaction updated in VPRC account completed upto PLF Transactions, General fund accounts were updated upto March 2016 only. PLF incentive fund account, VKC accounts not updated in tally. 11. CLG Project fund received in 57000, for Mariyamman Goat rearing Group. Meeting records were not updated for April-2016 to August households have been included in CLG of which target households = 28. But member contribution has not been collected. 12. Total Misappropriation Amount NIL 13. Status of poverty We met some very poor families during the social audit. Their status is described below. 1. Murugeswari, aged 25 got married and has 2 children a daughter and a son. Her husband left her because he had many debts. She is suffering to raise her children and lives with her parents. She goes and collects fire wood and sells for her living. She is not included in the PIP list. She doesn t have an MGNRGES card also. If she falls ill, she cannot afford to go to the hospital, she simply takes tablets or prefers prayers for healing, out of poverty. 2. Eswari w/o Murugan aged 35 has 2 daughters and 1 son. Her husband passed away 3 years before. He committed suicide, unable to bear his stomach pain, by roping his neck at a graveyard. The family has no house to stay. Seeing this, tshe village has given her a little thatched house. She belongs to Dhobi community, so she washes the clothes of the village and earns subsistence from this. Now she is not able to wash clothes anymore. She survives on ration rice only. The villagers are now asking her to vacate the house given 65 S o c i a l A u d i t R e p o r t : P a r t I I

66 14. Impact during the 5- day audit to her, because they wish to build a community hall in its place. Despite her situation of poverty and difficulties, it was noteworthy that she has sent children for education. Elder son is in 12 th class, and the daughters in class 10 and 8. When we asked her son if he helps her mother, he shied away saying the villagers make fun of him if he helped her Defunct SHGs were met, issues discussed. SHG members agreed to activate the group here after. Loan cards got updated. VPRC, PLF records got updated. Most of the SHGs were not linked with bank, and it was agreed to grade and get bank linkage for them. The DPM and staff have been very positive and supportive to the process, and went to great lengths to ensure independence and integrity of the process. 15. Oor Koottam 168 members participated in the Oorkottam. President, Clerk, DPM, 2 APMs, Team leader and Facilitators attended this Oorkootam. After the report was read out, people said they wanted to avail of loans from the bank. For this DPM replied to the people that he will arrange for the rating and arrange for the same very soon. OAP issues were raised. Kurinji disabled SHG repayment issue was discussed at length through the DPM s intervention. His role in this was very positive, and he carefully went over the repayment problem over the microphone, keeping the people informed at all times. Murugeswari was asked to repay the at the earliest. The DPM and staff were very supportive to the process. The DPM acknowledged the role of the feedback through social audit. 66 S o c i a l A u d i t R e p o r t : P a r t I I

67 10. Nagapattinam district 10.1 Irukkai village, Keezhvelur, Nagapattinam district Social audit from 9/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individual assistance Findings 8 people have been added to PIP list in In 2010, 10 families were added to PIP. All 18 had Gram Sabha approvals. In this village, while Pudhu Vaazhvu has identified 250 target families, BPL category identifies only about 114 families. The team met 58/67 beneficiaries. There were several discrepancies between registers and field verification. Some of these are: 1) 3 persons Baskaran (Rs. 10,000 in 2010, has not repaid), Santhi (Rs in 2009, but she is dead now), Balakrishnan (Rs in 2009 and is repaying) had disability ID cards (<40%) but were not included in original PIP list. 2) Kaliaperumal s records show that he has got a loan of Rs but when we met his mother (mentally challenged) said she did not know about this loan at all. Though when we checked the VPRC record, it showed an outflow of Rs ) According to records, in 2015, one Rangarajan has taken Rs loan. When we met him, he denied taking the loan. He was disabled but from a non-poor background. On being asked, the bookkeeper Anbumani admitted to our team member that she had taken this. 4) Vijaya Abirami had taken Rs in But when we met her, she said she had taken only Rs The bookkeeper told us that she (the bookkeeper) had transferred this back to the VPRC account, but we could not find passbook entries proving this. 5) While doing field verification we discovered Murugaiyan, in 2015 had taken a loan of Rs but this transaction has not been recorded in the register. Repayments however are going on. 6) Krishnaveni was not there in the target list, but has received loan of Rs. 10,000 in ) Jawahar Nachia has taken 10,000 in Name not in target list. Has repaid only Rs so far. 8) Vasudevan was not in disabled list, but took loan of Rs in Has not repaid. 3. SHGs The team met with all 25 SHGs. 9 functional, 16 were defunct (as found based on registers, passbooks, meetings with them). Equitas a microfinance company has 13 SHGs in this village. SHGs which were with Pudhu Vaazhvu (for example, Sembarthi, Veera Jansi Rani, Nila, etc) have migrated to Equitas. These SHGs have taken at least two installments of Rs and Rs. 25,000 through Equitas and are running well, unaware of the higher interest rates there. None of the 9 functional SHGs have bank linkages, but have outstanding s in PLF. Two noteworthy aspects were: 1) One SHG, Tiruvalluvar, had purchased one acre of land in 2010 and was cultivating on it. But it is not functional (no record updates for 3 months at least) now. 67 S o c i a l A u d i t R e p o r t : P a r t I I

68 4. CST Salary irregulariti es 5. SHG Training 2) One SHG, Sembarthi, has taken LIC policies for all its members and is paying premium CST Sundarambal has received salary only two times Rs (2011) and Rs (2015). Cumulatively in this period, though, Rs. 42,500 has been spent on CST salary as per records, but the CST insists she has not received this. Cheques in the name of Sundarambal were found in the records, but she denied receiving them. 23 SHGs have received 4 th module trainings as per attendance records, but no photos, reports, schedules could be found. Attendance records showed 100% attendance but when we held discussions with SHGs, many women told us that only 4-5 members had attended trainings. About half the signatures in SHG Training records did not match the in-person signatures, with the members pointing out the discrepancies in their signatures. Apart from 3 SHGs, none of the others had loan repayment cards. 6. PLF Loan Registers were not updated : 18/3/2016 was the last repayment date as per registers. Our team met 173/204 beneficiaries. Most of their loan cards were not present with the members and so could not be checked. Sembarthi SHG, Malarkodi and Aarthiveni have each taken Rs. 15,000 loan and have repaid Rs together. But the record shows repayment of only Rs The remaining Rs could not be traced, and the bookkeeper said she did not remember. Andavar SHG as per records took a loan of Rs in year 2013 in the names of Rasool Biwi, Tulsiya Begum, Ramzaan Dani.As per record, they have an outstanding balance of Rs. 54,000. As per field verification, they said they have repaid Rs. 53,000 with a balance Rs In years 2010, Bismi SHG, has taken a loan of Rs. 30,000 in 4 names Tamilselvi, Jeyakodi, Malliga, Najima biwi. Balance Rs But during field verification, Najima biwi has an outstanding of Rs. 3600, and the 4 members insisted that all the money had been repaid to bookkeeper. The bookkeeper has signed and given to the social audit team that she will repay Rs to PLF account. 7. Skill 71 youths in this village have gone for training. Placement orders were not there in VPRC records in some cases. Gender ratio in skill was found to be 4:1 8. PAR 80:20 70:30 9. Functionin g of CBOs (VPRC, PLF, SAC) 100% 75:25 98:2 Recovery Rate: 27% Closing Balance: Rs. 43,349 VPRC Secretary Rani could not be met at all as she lives in Velankanni. Committee did not know much about the functioning. Only the Treasurer Saroja knew about transactions. PLF meeting could not be organized despite efforts for 3 days. They did not come for Oor Koottam either. SAC meetings have not taken place the last 6 months, as told to us by one of the SAC members, Sarojini (who is also a former award winning Panchayat Talaivi) 10. Tally Was up to date 11. CLG 1 diary CLG Valarpirai was not functional. Output being low, the members have not been able to give milk to Aavin, they sell it locally (to cyclepersons who sell milk locally). 68 S o c i a l A u d i t R e p o r t : P a r t I I

69 12. Total Misapprop riation Amount 13. Oor Koottam Rs. 1,20,294 (CST honorarium Individual assistance PLF repayment difference 59644) 150 people attended the meeting. Repayment mismatches, issues about the placement order not being there, CLG fund not being utilized, were raised in the Oor Koottam. APM BF attended the hearing, Panchayat Talaivar and the project staff (cluster team) Follow up action promised: Bookkeeper Anbumani promised to return Rs to PLF account. Sundarambal (CST) promised to repay the misdirected. APM promised to set up a team to look into the issues. 69 S o c i a l A u d i t R e p o r t : P a r t I I

70 10.2 Neikupai village, Tirumarugal block, Nagaipattinam Social audit from 9/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individua l assistanc e Findings PIP list has identified 122 families as target, whereas BPL list identifies 250 families as poor. Totally 356 families. The list had 14 additions, all had Gram Sabha approvals. The team met all 38 beneficiaries (except the two dead persons) 1) As per record, Vijayalakshmi in 2010 has taken Rs of which Rs.1200 has been repaid, balance of Rs She says she has repaid Rs and only has a balance of Rs left to pay. Difference of Rs could not be traced. 2) As per records Umashankar, a disabled person, has taken loan of Rs in 2015 and has repaid only Rs In field he denied taking the money. Even though the bookkeeper showed us a photograph with a cheque as proof, Umashankar s mother insists that the cheque was taken back after the photo and the money not given. Bookkeeper Kalaiselvi also accepted this saying she used the cheque money to adjust this against the mother s outstanding ASF loan. 3. SHGs 15 SHGs, all are defunct. Reasons: None of the registers were updated, no resolutions, passbook entries, no repayment. Equitas and other microfinance institutions have SHGs that are running well. In one case, when we requested for loan card to verify, a woman brought out her Equitas loan card accidentally to show us! Samanthipoo SHG has taken a loan in the name of 3 members for Rs. 60,000. Magilampoo s bank loan was repaid using this. In Karambai, Abiramiamman SHG, loan of Rs. 1,20,000 was taken in 5 names but split between 12 women who each took Rs. 10,000. The record shows 46,646 and repaid about The difference of Rs PLF Secretary Sumathi admitted that she had this. 4. SHG Training In Karambai habitation s Kalasam SHG, loans in the names of 5 persons have been taken, for Rs. 1,20,000 but this has been split between 20 persons who each took Rs They were found to be repaying it. All 4 th module trainings have been shown on records. Signatures matched, photo records were present. But during discussions, members could not share learnings from their trainings. CST is not active since none of the registers were updated. The CST could not be met despite repeated efforts by our team. 5. PLF The team met with all 15 SHGs. 13 SHGs have outstanding loans. Samanthipoo SHG has received Rs. 60,000 to Chinnaponnu (25,000), Shashikala (24,000) and Malar Jothi (11,000) in the year This is the record as per resolutions. But during field verification, all three of them denied. In repayments, it was found that Magizhampoo SHG was repaying this loan. Dhanalakshmi is the VPRC and PLF bookkeeper since 6 years. PLF Secretary, Sumathi has been in post since 8 years. Sumathi was, at times, found to be coaching the answers of people (as told to us by the villagers), even as the social audit team went about its door-to-door verifications over three days. 6. PAR 81% 70 S o c i a l A u d i t R e p o r t : P a r t I I

71 80:20 70:30 Recovery Rate Closing Balance 7. Functioni ng of CBOs (VPRC, Verified verified 46.75% Rs. 26, VPRC meeting could not be held despite efforts for 3 days. PLF Secretary and Treasurer do not call for meetings. They make decisions themselves, said a member of the PLF, Kalaivani. I do not know any of the proceedings, she said and signed. SAC registers were not shown, nor could the members be reached. PLF, SAC) 8. Tally SHGs was updated only till May 2015 VPRC and PLF March 2016 One positive aspect was that Tally got updated during the social audit. 9. CLG CLG: 1 goat CLG Imayam, 1 diary CLG Akshaya, both are defunct. Imayam has spent Rs. 17,450 for weight machine. Akshaya has spent Rs. Rs.53,507 for milk cans etc. 10. Total Misappropri ation Amount 11. Oor Koottam 12. Status of Poverty Rs. 66,764 (SHG member name changes plus the s taken by PLF Secretary Sumathi Rs. 62,364, and Individual assistance in the name of Vijayalakshmi Rs. 4400) Over a 100 persons attended the Oor Koottam hearing. APM LH, cluster staff, Panchayat Talaivar all presided the meeting. Loan repayment issues came to the fore. The PLF Secretary, who mismanaged the loan repayments, turned aggressive at the team reading out the report. She had been reportedly asked the villagers not to attend the Oor Koottam, because at first nobody was there at the hearing. After efforts by the social audit team, people were mobilized for the Oor Koottam. The Talaivar, (who was from a 5-timer Talaivar family) initially contacted the social team to report about the PLF Secretary Sumathi s mismanaging the funds. However, during the Oor Koottam, he turned around and became defensive of Sumathi. The two are reportedly related, having adjacent houses. Follow-up action promised: 1) It was agreed that the PLF Secretary would be removed, on immense demands from the people 2) It was agreed that recoveries would be made against misappropriations 3) Loan repayments would be made by people once recoveries were done, people promised during the Oor Koottam 4) VPRC Office did not have electricity, but expenses on this has been shown as being made on it. It was promised by the Talaivar on Day 1 of social audit that the VPRC Office would be changed to a better place 5) There is a serious issue of water in the village (which has dead dogs etc in it) and needs urgent cleaning, as people complained about it at length 6) The team identified issues around drinking water, toilets and transport. NREGS wage payments and OAP issues too were reported. When the team met the 3 poorest families, we identified the following 5 names as missed out as target in the PIP list : 1) Sushila Govindaraj (separated, with 3 children, monthly income Rs.1000, landless), 2) Anita Aruldas (widow, age 38, 4 children, labourer, survives on Rs pension) 3) Mariapushpam (widow, 3 children, survives on ration, OAP,etc) 4) Revathi Ramesh (widow, 5 children, survives on pension) 5) Jeyalakshmi Ponnusamy (widow, has some land but no income, 3 sons) 71 S o c i a l A u d i t R e p o r t : P a r t I I

72 11. Namakkal district 11.1 Mavurettipatty, Elachipalaym block, Namakkal district Social Audit 29/8/16 to 4/9/16 1 Village Overview Mavurettipatti has 4 habitations and it has 690 households. The people rely on agricultural lands. Some work as daily labourers, masonry and tailoring purposes for a living. The Panchayat President (SC) is a Woman and she has been elected two times. During discussions when we asked people about the role and participation of the Talaivi, villagers said that she is fully dominated by her cousin-in-law, who is also the clerk of the Panchayat. When this person was met, he said that the Talaivi did not know anything, and that it was he who took her signatures on papers as and when necessary. In this village most of the communities are backward community (Gounders,Aasari) 2 PIP: BPL: 3 Individual Assistance From the visitor s register it was evident that the village is an A grade panchayat for PVP, frequently visited by World Bank, other departments (TN SRLM) for field visits, and visited by State specialists. PIP list has identified 217 families as target, whereas BPL list identifies 685 families as poor. No PIP additions and deletions. The team met 36/60 beneficiaries. There were no differences in repayments in records and field verification, except for Rs.100 in the following case: As per record Perumai in 2012 has taken Rs 5000 of which Rs 200 has been repaid, balance of Rs During field visit, she has repaid Rs. 300 and only has a balance of Rs 4700 left to pay. Difference of Rs 100 could not be traced. Loan cards were present with the members. 4 SHGs The team met with23/25 SHGs. All 23 SHGs were found to be active. (as found based on registers, passbooks, meetings with them) 5 SHG Training All 4 th Module training 4 SHGs has been shown on records. But during discussions members could not share learning regarding trainings. Training resolution registers were present with details of SHGs who attended trainings. 6 PLF The team met with all functional SHGs. 19 SHGs have outstanding loans. Our team met 89/139 beneficiaries. Loan cards were not present with the any of the beneficiaries, so people do not have a record of their repayments. 7 Skill As per the records, there are 92 eligible youth, of whom 40 have completed trainings. The institutes have not provided placement to the youths following the training, but 100% of payment has been released to all institute. VPRC Office bearers also agreed with these findings. 8 PAR: 80:20 70:30 9 Functioning Of CBOs (VPRC, PLF,SAC) No PAR Total Rs.34,80,000 Target :156 Beneficiaries Non target: 29 Livelihood:149 Others:36 Committee members were found to be active and knew about the transactions. Secretary updates the resolution register regularly. CLG is not functioning. 10 Tally VPRC, PLF and SHG are updated upto the month 72 S o c i a l A u d i t R e p o r t : P a r t I I

73 11 CLG Goat CLG received the Rs and they have constructed a shed and procured weighing machine in the infra fund. And CLG is not functioning since the start. 12 Total Nil Misappropriation Amount 13 Oorkoottam Over 150 persons attended the Oor Koottam hearing. And Cluster staff, Panchayat Talaivi all presided the meeting. SHSs training status came to the forum. The Bookkeeper responded to the training details shared. In this village, the Office bearers were found to be well-aware about the scheme and were also active Thottiyampatti village, Vennanthur block, Namakkal district Social Audit from 29/8/16 to 4/9/16 1 Village Overview Thottiyampatti has 4 habitations and it has 364 households. The people rely on working on agricultural lands of the landowners. Some work as daily labourers, breaking large stones for construction purposes for a living. The Panchayat President (SC) is a labourer working on the Vice-President s (BC) having agricultural land. The President s son works as the Vice-President s driver. The Vice- President has previously been elected for 3 consecutive terms. The people too commonly refer to the Vice-President as the President. The Vice President was found to have a dominant influence on all schemes and works in the Panchayat. 2 PIP: BPL: 3 Individual Assistance In this village, PIP list has identified 117 target families, 4 differently abled persons had passed away but their names were not removed from the list. 7 people s names have been added to PIP list and 11 people s names have been removed from the PIP list. All 18 did not have Gram Sabha approvals. The team met 40/65 beneficiaries. There were no loan cards, so repayment could not be verified against what people said. People have no way of tracking their own repayments. There were several discrepancies between registers and field verification. Some of these are: As per record, Santhi in 2014 has taken Rs.5000 of which Rs.2400 has been repaid, with a balance of Rs She says she has repaid Rs and only has a balance of Rs.1200 left to pay. Difference of Rs 1400 could not be traced. As per record, Kanthayi in 2015 has taken a loan of Rs of which Rs 3000 has been repaid, with a balance of Rs She says she has repaid Rs and only has a balance of Rs.9500 left to pay. Difference of Rs.2500 could not be traced. As per record, Arukaani in 2010 has taken Rs.3000 of which Rs has been repaid, with a balance of Rs.800. She says she has repaid Rs and balance. Difference of Rs.800 could not be traced. As per record, Manikandan in 2014 has taken Rs 5000 of which Rs 400 has been repaid, balance of Rs He says He has repaid Rs and only has a balance of Rs 1750 left to bay. Difference of Rs 2850 could not be traced. During the social audit, it was found that CDF began making some loan repayment collections, an of Rs.10,500. The team requested her to deposit this so that it could be reflected in the registers. However, this deposit was not done, so the is being highlighted as still being in the form of Cash In Hand with CDF. 73 S o c i a l A u d i t R e p o r t : P a r t I I

74 Total difference : Rs. 7550, cash-in-hand with CDF: Rs.10,500 When asked about the repayment differences, people said they repaid loans to bookkeeper Thangamani, without getting receipts or loan cards. When the bookkeeper was asked, she could not explain the differences. 4 SHGs The team met with 17 SHGs. 7 were functional, 10 were defunct (as found based on registers, passbooks, meetings with them) The microfinance company Equitas is currently lending to 6 SHGs in this village. 5 CST Salary Irregularities 2 CSTs have received salaries for the last year as follows: Divya, Rs and Gowthami, Rs But there is no record, or monthly report of their work. The SHG members said the CSTs were not updating the SHG registers nor monitoring. During the 5 days of social audit, the CSTs could not be met by the team. Total misuse : Rs ( ) 6 SHG Training All 4 th module training has been shown on records. But during discussions members could not share learning from their trainings. 7 PLF The team met with all 17 SHGs. 12 SHGs have outstanding loans. Findings are as follows: Loan registers were not updated beyond 8/08/2015. This was the last repayment date as per registers. The repayments beyond this date have not been recorded. Our team met 41/57 beneficiaries. Loan cards were not present with the members so repayments could not be checked. Om Sakthi SHG as per records has received a loan of Rs in year 2013 in the name of one member Lakshmi, as per the record, and has an outstanding balance of Rs But during field verification, it was found that she has not received the said loan at all. Om Sakthi SHG as per records has received a loan of Rs in year 2013 in the name of Sundharambal, as per the record, and has an outstanding balance of Rs But during field verification, she said she did not know about her own repayment, but that she had been repaying to the bookkeeper. There was no loan card to verify. Annai tharasa SHG as per records took a loan of Rs in year 2012 in the names of Alamelu (20,000) and Senthamarai (20,000). As per the record, they have an outstanding balance of Rs As per field verification, they said they have repaid all and have no balance. (Rs 1891 in hands of bookkeeper) Venkatasalapathi SHG as per records took a loan of Rs in year 2012 in the names of Kalaivan as per the record, and they have an outstanding balance of Rs But as per field verification, they said they have repaid all the and have no balance (Rs.3000 in hands of bookkeeper) As per the PLF pass book, VPRC bookkeeper and CDF have each taken a loan of Rs. 25,000 in February 2016, but this transaction has not been recorded in the register Total repayment difference: Rs.74,891 ( from points 3,4,5,6,7 described above) 8 Skill Our team met 55/109 youth 51 youths said they had gone for training, but said none of the institutes provided them a job. 20% payment has gone in all these cases. All 51 have signed to this effect. As per records, 3 youths (Pushpha, Sumathi, Vidya) have attended tailoring training for 90 days each. But when met in person, it was found that they did not attend the training at all. Payment of Rs per person, so a total of Rs.4200 has been made to the institute. 74 S o c i a l A u d i t R e p o r t : P a r t I I

75 9 PAR: 80:20 70:30 10 Functioning Of CBOs (VPRC,PLF,SAC) 11 Bookkeeper Salary 5 of the 55 youths met said they had dropped out from tailoring training after attending only 1 or 2 days of training. Again, full payment has been made in these cases, at the rate of Rs per person. So total payment: Rs While doing field verification, we discovered that 5 youths (Shankar, Suganya, Susila, Rajeshwari and Kumaravel) have attended driving/tailoring trainings but their trainings were not documented and hence this could not be audited fully. There were cases of people taking multiple trainings. 3 youths had gone for 3 trainings each (Computers, Tailoring, beautician), but this list includes the bookkeeper and CDF. 1 youth had gone for 2 trainings (driving, poultry) Youth register not fully updated. Total misuse : Rs ( ) 100% 69:31 89:11 Last one year not functioning the VPRC, PLF, SAC but VPRC bookkeeper, CST, CDF salaries have been drawn on the basis of resolutions in the VPRC registers. The drawn was Rs.16,500 for CDF and Rs.19,200 for CST. VPRC, PLF resolution book signatures were not those of the members. VPRC Secretary has told the team that she did not sign any of the cheques over the last 1.5 years. In light of this, it needs to be investigated who has endorsed the cheques signed in this period given that the Secretary is a mandatory signatory for cheque powers. The last 1.5 years, the bookkeeper has not been working there were no monthly reports. Registers were not updated the last 1.5 years. Despite this, salaries were drawn for the bookkeeper totalling an of Rs.51,000 over this period. 12 Tally Not updated 13 CLG 3 CLG in this village but it was found that 2 CLG not functioning 14 Total Misappropriation Amount 15 During the 5 day social audit period As on date not register update and loan confirmation card not with the members, Total: 1,89,841 Individual assistance 7550 (Bookkeeper) PLF CDF cash in hand Book keeper salary CDF Salary CST salary Skill 10,200 Due to social audit verification, the people became more aware about the Pudhu Vaazhvu project and they came to know about the status of the accounts. The Panchayat Vice President (who acts as the President) admitted that the village people had not repaid the and misappropriation was done by book keeper, CST and CDF. However, he also asked people not to attend the Oor Koottam. Moreover, now the book keeper has been changed. 16 Oor koottam The Oor Koottam was poorly attended - only 35 people came. The DPMs, APMs did not attend. Only Cluster Team leader, facilitator presided the meeting. Much effort was exercised in preventing the Oor Koottam from taking place. Initially it had been announced that the Oor Koottam would be conducted at 2.00 pm. But it actually began only at 5.30pm after a second round of efforts to mobilize people. It was learnt that people initially did not come because the CDF, bookkeeper had gone door-to-door visiting every house and informing people that Talaivar has asked you not to attend the Oor Koottam (message in tamil: yarum Ooru kootathiku vara vendam endru thalaivar solla sonar ) So no one attended the Oor Koottam at 2 pm. 75 S o c i a l A u d i t R e p o r t : P a r t I I

76 On learning about this, our team members began another effort to invite people to the Oor Koottam after which about 35 people attended it. Individual loan members, PLF loan members did not attend. After the Talaivar s play, it was the effort of the youths of the village who helped in mobilizing people for the Oor Koottam. They shared that they were not aware of trainings given through PVP Koothanatham village, Mallasamuthiram block, Namakkal district Social Audit from 29/8/16 to 4/9/16 1 Village Overview In this village, there are 4 habitations and totally 550 households. Panchayat talaivar has been elected consequently for two times, Vice President is a woman. Agriculture is main livelihood, people said that mostly in the mornings they go for MGNREGS work, while in the evening the go for agriculture work. Often, people could be met only after 8pm in their homes, during our 5-day period spent in the village. People said that the panchayat Talaivar is very supportive to the people and to the VPRC. Transport is scanty: the bus comes only two times to the village - the students of this village have participated in strikes two times demanding a town bus. 2 PIP: BPL: 3 Individual Assistance In this village, Pudhu Vaazhvu has identified 173 target families 100 families as poor and 73 as very poor. To give individual assistance loans, the project has identified 10 differentlyabled persons and 15 vulnerable persons. There were no additions/deletions made to PIP list. The team met 40/49 beneficiaries The following are the discrepancies between registers and field verification: We met Selvaraj, Kaveriyamma, and Chinnammal, who in 2010 had each taken a loan of Rs.4000 but this transaction has not been recorded in the register For Last 2 years there has been no repayment in individual assistance 4 SHGs The team met with 13/18 SHGs. 7 groups were found to be defunct, based on analysis of SHG registers, passbooks and on holding meetings with them. 4 SHGs were found to be very active, functioning well and requested more support from the project staff 5 SHG Training For 18 groups 4th Module training has been conducted for 3 days as per records. But during field visit discussions members said they had attended only 2 days trainings. Misappropriation identified: Rs.5809 The CST post is inactive after the CST s delivery. None of the registers were updated. Tally was updated up to the current month. 6 PLF The team met with all 17 SHGs. Of these 12 SHGs having outstanding loans. Loan Registers was not updated since last 3 months. Loan cards were not present with all members and it could not be checked. For Last 3 months, members repayment 100% but not repaid in the bank but they are paying to book keeper. Cash in hand with book keeper Rs.3,02,400 and during social audit verification only she repaid the. 7 Skill 101 youths in this village have gone for training (91 candidates from PVP fund, 10 from Mathi fund) The team met 25/101 beneficiaries. 76 S o c i a l A u d i t R e p o r t : P a r t I I

77 8 PAR: 80:20 70:30 9 Functioning Of CBOs (VPRC, PLF, SAC) The trained computer youths met are now still in college. They have undergone training during their holidays after the 12 th class exams at the age of 17 years itself (not attained 18 years of age) In all cases of youths met, none of the institutes have provided a placement. Yet, 100% of payment (including the placement-linked 20% fund component) was released to all institutes for training. 100% repayment Target: 167 beneficaries, and Rs.27,53,000 and in non target 24 beneficiaries, Rs. 5,85,000 so ratio comes to 87:13 (beneficiaries) and 82:18 () Livelihood 156 members Rs.24,83,000 and Consumption to 35 members Rs.8,55,000 so the ratio comes to 82:18(beneficiaries) and 74:26() The last one year, VPRC has not been functioning. Members also shared that the Panchayat Talaivar domination was high over the committees. SAC has not been functioning for the last 2 years. For the past one year, PLF activity too was found to be low. Since one year, the book keeper is not working because of her delivery. CST too has not been working since her delivery. 10 Tally Tally is updated up to the month 11 CLG 2 CLG in this village but both are not functioning. Few or no current transactions. Malligai Dairy CLG fund received Rs.1,10,646 and has spent Rs.96,462 Amman Goat CLG Fund received Rs.83,913 and has spent Rs.40,850 Common Procurement for Cow feed mixing machine and chop cutter machine but both machines are not working 12 Total Misappropriation Amount 13 During the 5 day social audit period Bookkeeper cash in hand Rs. 3,02,400 (but this got deposited when brought to light) SHGs Training Amount Rs Total: Rs Bookkeeper Cash in hand got deposited - Rs All Registers got updated 14 Oor Koottam Over all 150 people attended the Oor Koottam hearing. DPM, Cluster Team leader, facilitator, Panchayat Talaivar all attended the Oor Koottam. Findings about youths not completing training were agreed upon by all at the Oor Koottam. PLF Repayment Rs VPRC bookkeeper misappropriation was identified during the audit and recovered. This entire has been deposited to the bank on The 2 CLGs together have received fund of Rs , and spent Rs Both are non functional. Findings were agreed upon at the Oor Koottam. 77 S o c i a l A u d i t R e p o r t : P a r t I I

78 12. Perambalur district 12.1 Melamathur village, Alathur block, Perambalur district Social audit from 8/8/16 to 13/8/16 Area 1. PIP BPL 2. Individual assistance Findings 8 vulnerable people have been added to the PIP list. The team met all 8. 2 of them Tavamani and Karpagam - were found to be non-target (i.e they were neither disabled nor vulnerable). Rs. 20,000 have been taken by them each in Both have been repaying the loan. The previous secretary had taken them into the list. The other 6 additions were alright. Gram Sabha approvals were not there for these 8 entries, although VPRC resolutions existed. 14 disabled were removed from the list. The team met 10 of these people. In the case of 7 of them, the disability ID card shows that their disability was below 40%, making them ineligible to receive loans. However, for 3 of the people met Neelavati Gopal, Malathi Maruthamuthu, Rani Pazhanivel the ID cards showed more than 40% disability. Yet they had not received loans. When asked they said they wanted loans. They lived in the outskirts of the village, and had no idea about the scheme. The CDF too admitted that they had been left out. 55 people have been given assistance since 2012 out of 57 target (43 disabled + vulnerable 14) totally identified. The 2 people who did not get it were found to be not poor, and said they did not need loans. 55 had got loans correctly, with no mismatches found. About 12 people have not been repaying from over 1.5 years. Our project identifies only 219 target families, the BPL list identifies 774 families (Source: Panchayat Baseline ) 3. SHGs There are 25 SHGs. 2 are defunct. More than half the members of these two SHGs had reportedly migrated out of the village. All of them had quoted Goat / Cows as loan purpose. 3 SHGs are defunct of which 1 is disability SHG and 2 are women s SHGs. The representatives have not been active. SHG bank linkage was found to be weak. Only 1 SHG has taken a bank loan now. 12 SHGs had bank linkages earlier and repaid loans. Union Bank of India has given a grading a year ago, but SHG members told our team that bank has not given them loan, although all 12 SHGs had applied for loans. SHGs resolution registers are updated, but cash book, general ledger and savings book were not updated. 4. SHG Training SHG Training records of attendance, signatures, bills were verified with the SHGs and found to be true as per records. 5. PLF 61/81 beneficiaries were met. 15 lakhs loans have been given to these 81 beneficiaries, about 7 lakhs repaid. But none of the loan repayment cards could be seen or verified. Community members said loan cards had not been issued. On being asked the reason, the bookkeeper informed that she had not received printed loan cards from the cluster. This is an issue since PLF repayments could not be fully verified because of this. 6. Skill The team met 40/62 beneficiaries (many were not in the village), out of the 102 youths identified as eligible. 22 non-target persons had been sent for three trainings: JCB training (6) driving(9), Tailoring(7). 78 S o c i a l A u d i t R e p o r t : P a r t I I

79 7. 80:20 70:30 Recovery Rate PIP list was taken for door-to-door verification. It was found that the Panchayat Talaivar s son Muthukumar Periyasamy had attended driving training, by using somebody else s PIP number (00202, belonging to a different person called Saraswati Selvamani). The Talaivar s family is non-target and they had used a target PIP number on the training register. Overall, 35% youths were found to be non-target. So the target non target ratio was found to be 65:35. Moreover, with 44 males and 18 female beneficiaries, the gender ratio in skill training is skewed at 2.4:1. 21 people have not been given certificates since 6 months even though they have completed training and payments have been made to the institutes. Soft-skill training had not been given to any of the 40 people met. PAR: 3.3% 78:22 in PLF 84% 84:16. The assets were verified and found to be true, but none of the 60 beneficiaries had taken insurance. 8. Tally Updation was there upto July 2016 for PLF and VPRC. A few entries were found to be erroneous, and these were rectified during audit. SHG data for last 4 months had not been updated. 9. CLG 1 CLG goat. Rs. 95,000 fund had been received in ,000Rs. has been used to buy equipment. The CLG has 22 members. Exposure visit has happened to Namakkal to see how goatbreeding there. A few members did not know how much fund the CLG had received. Account has been opened in the names of VPRC Secretary and bookkeeper, both of whom are members of the CLG. The team felt that the opportunity could have been used by other members. 10. Oor Koottam About 100 people attended the hearing where these findings were read out and shared. The talaivar, ward members, Vice President, Panchayat clerks, SHGs all attended. APM,cluster staff attended. 79 S o c i a l A u d i t R e p o r t : P a r t I I

80 12.2 Puduvettaikudi village, Veppur block, Perambalur Social audit from 8/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individual assistance 80 S o c i a l A u d i t R e p o r t : P a r t I I Findings PIP list identifies 264 households as target, whereas BPL list identifies 227 families as poor. 16 changes were made to the PIP list. 9 differently abled and 7 vulnerable persons have been added in the PIP registers. But these did not have Gram Sabha approvals. 14 of these 16 people had received VPRC loans, and are repaying the s. 41/68 Beneficiaries met. In the case of 25 beneficiaries, record and field visit loan repayment was found to be different. The actually repaid was more by Rs Most of the beneficiaries didn t get loan card and did not have any loan repayment receipt. The CDF admitted to the social audit team and also in the Oor Koottam that she had taken it, and promised to repay the. We found 14 differently-abled and 1 vulnerable had not received individual assistance and they did not want the loans. It may be guessed that the 16 new PIP additions could have been made to show complete loan disbursement against these 15 people who did not want loans. (due to the administration s pressure of showing loan disbursements) 3. SHGs There are 23 SHGs. But only 20 SHGs are a part of PLF. The 3 left out are in the same habitation, called Thuninchapadi, and the SHGs are Kurinchimalar, Vamsam, Pasumai SHG. These 3 SHGs had had a previous bad experience with the NGO called Hand-in-Hand and hence were skeptical about PLFs. 1 SHG was defunct(mullai Disabled SHG) The team met 11/23 SHGs. We found that 5 SHGs did not have even one bank linkage, while 5 other SHGs have a bank loan in the current financial year. 4. SHG Training Only 13/20 SHGs have completed IV module training. The training records (attendance, signatures, etc) were matched and verified. 5. PLF 49/79 beneficiaries met. In about half the cases, the stated loan purpose was not the same as actual loan use. For PLF membership, 227/247 members had paid their subscription s. 20 members had not paid. PLF EC member selection was found to be wrongful. The PLF President (Radha w/o Palanivel from Kurinchimalar SHG) and one EC member (Jeevitha w/o Ravichandran from Pasumai SHG) are both from SHGs which have not been federated. They are from Thuninchapadi habitation. 5 SHGs have not taken a PLF loan at all. (in the 9 months of its existence) 6. Skill 23/50 beneficiaries met. Two youths as per records have attended tailoring classes with Chella Foundation Skill Institution for 3 months in However, when we met them, it was found that they attended

81 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs (VPRC, PLF, SAC) only 22/90 days. Full course fees of Rs was found to have been given to the institute along with full attendance records. 4 people should have got soft skills, but had not got any. Training and employment status was found to be different in many of the cases. Overall the target ratio was found to be target : non-target PIP list. Gender ratio in skill was highly skewed, at about 7 males : 1 female 6.65% 86% Target(66 member), 14% Non target(13 member) 95% Livelihood, 5% consumption 91.35% Rs /- VPRC members were met on the first day. Since 4 years, there was no rotation of office bearers. Resolutions were maintained. Knowledge and awareness of the non-office bearer members was low. For example, the VPRC members did not know about expenditures made. PLF committee is two years new. All members new about all the loans made. Their registers were updated too. SAC registers had entries but had missed writing about the CDF repayment problem. 9. Tally VPRC and PLF updated till July 2016, and SHG updated till Mar CLG Being a new district, the diary CLG Kasturi has received fund of Rs in Dec 2015, they have gone for training and exposure visit. They are yet to start activities. 11. Total Rs. 87,700 (repayments due from CDF) Misappropriation Amount 12. Oor Koottam 142 people attended the Oor Koottam on 13 th August 2016, which lasted for 2.5 hours. The issue of repayment mismatch was discussed at length. It was agreed that the VPRC Secretary and Treasurer would be changed as per rotation norms on the 15 th August Gram Sabha. The DPM, Panchayat President, all ward members were present at the Oor Koottam. The follow up action promised was the recovery from CDF, and federating the 3 unlinked SHGs. 81 S o c i a l A u d i t R e p o r t : P a r t I I

82 13. Pudukottai district 13.1 Panampatti Village, Annavasal Block, Pudukkottai District Social Audit from to Area Village Overview 1. PIP: BPL: 2 VPRC/PLF/SAC Function 3 Individual assistance Findings The village is situated middle of Tirchy and Pudukottai road, near a place called Muthu-udayanpatti main road. The village is 20 km from Pudukottai district. There are 7 habitations in this village. Pot making, agriculture is the main livelihood. 489 households are in this village, with 2087 people. Majority people(87%) are from backward community. Total target families are 127, of which very poor are 58 and poor are 69 families. There are 24 differently-abled persons and 18 vulnerable persons. BPL category identifies about 123 families. There are no PIP additions and deletions. Over the 5 days of social audit, VPRC, PLF, SAC committee meetings could not be conducted. Members did not come to the office over 5 days. VKC computer not available in VPRC office, so VKC is not functioning. The team met 31/38 beneficiaries. There were some discrepancies between registers and field verification. Some of these are: In 7 beneficiaries, difference of for individual assistance repayment was found for Rs.6,900. Individual loan card was not given to any of the beneficiaries Loan Assets were not insured S.No Name Loan Amount Register Repay Field Visit Repay Difference 1 Ranganayagi Murugan Arulmary Mathialagu Alagammal Karupaiyee Anantharaj Total Total misappropriation Rs SHGs The team met 11 SHG out of 16 SHG. 16 SHG affiated in PLF, All SHG active. 7SHGs have a bank linkage in current year. 5. SHG Training 4 th Module training has not been conducted. 6. Skill 33 youths have benefited in skill training. The team met 23/33 beneficiary. 82 S o c i a l A u d i t R e p o r t : P a r t I I

83 In batch payment made in May 2014 made to Sri Vengateshwara Driving Institute while comparing records, it was found that Rs.3500 was paid extra against the names of Pandiyarajan and Selladurai (extra of Rs per person). Each trainee fee is Rs All four youths have signed to this effect during field verification. Also, the gender ratio of youth trainees was skewed at 2.1:1 Total misappropriation : Rs PLF ASF The team met 11/16 beneficiaries. PLF loan card not issued to the SHGs. Loan ledger register was not properly maintained - i.e. Loan application number, date, receipt no. DCB nil in PLF, PLF Loan tracking registers were not updated. 1 SHGs have not got ASF loan. ASF A/c bank balance: Rs PAR 80:20 70:30 Recovery Rate Closing Balance PLF PAR outstanding Rs.0 and PLF total outstanding Rs /- PAR: 0% 76 % Target 100 % Livelihood 77 % Recovery (DCB Calendar not maintained) Rs Tally Tally all accounts updated Auguest CLG Ayyanar Tailoring CLG received Rs.85, 500 in the year An of Rs (including contribution) has been spent in year 2015 for purchase of tailoring machine. But CLG is not functional now. The rest of the is lying unspent. 11. Total Misappropriation Amount Individual Assistant Repayment : Rs.6900 Skill Training : Rs.3500 Total : Rs /- 12 Status of poverty Alagammal w/o Marimuthu is living in Manickampatti. Her husband had expired 19 years before. She has 7 daughters. 3 have got married and other four daughters are studying. Her income is only through OAP and MGNREGS. She is managing her family with this income. She got individual loan from VPRC and has also repaid it. 13. Impact during the 5-day audit Skill training register was updated. PLF loan ledger register was updated. Skill training bills were collected and updated. When the social audit began, loan cards were distributed to PLF and individual assistance beneficiaries overnight without bookkeeper signature. 14. Oor Koottam 61 people attended the meeting. Repayment mismatches, skill training extra payment, CDF, PIP list variation, were the issues raised in the oor koottam. DPM & APM VF attended the hearing, Panchayat Talaivar and the project staff (Cluster team) Follow up action promised: The salary was not paid to Thooimai Kaavalar (Solid Waste Management person) for the last three months. It was asked in the Oor Koottam. For this the president promised that the salary would be paid to Thooimai Kavalar. 83 S o c i a l A u d i t R e p o r t : P a r t I I

84 13.2 Pallathupatti Village, Kunrantarkovil Block, Pudukkottai District Social Audit from to Area Findings 1 Village Overview The village is situated middle of Tiruchi and Pudukottai, near a place called Keeranur. The village is 28 km from Pudukottai district. There are 18 habitations in this village. Agriculture is the main livelihood. 802 households are in this village, with 3296 people. Majority people (84%) are from backward communites, and there are a few community issues over the Mukkanakaliyamman temple located in the middle of the habitations. Anna Nagar habitation has 96 families of the Narikuravar residing in 54 households. 2. PIP: BPL: Total target families are 237 in all, of which very poor are 121 families and poor are 116 families. Differently abled 33 persons, Vulnerable 59 persons. 7 people have been added to PIP list in 2013, only about 1 member removed for death. All addition and deletions had gram sabha approvals. But this has not been updated in the VPRC PIP Register. BPL Category identifies about 212 families as poor. 3 VPRC/PLF/SAC Function 4 Individual assistance Over the 5 days of social audit, VPRC, PLF, SAC committees meetings could not be conducted. Members did not come to the office over 5 days. VKC Computer not available in VPRC office, so VKC is not functioning. Printer is not working last 3 months. The team met 58/72 beneficiaries. There were some discrepancies between registers and field verification. Some of these are: In 17 beneficiaries, difference of for individual assistance repayment was found for Rs.23,250 Individual loan card was not given to any of the beneficiaries Loan Assets were not insured S.No Name Loan Amount Register Repay Field Visit Repay Difference 1 C.Amutha A.Poomalai M.Karupaiya Kasthuri Palanivelu Muthumail Kalarani Vijayarani S.Kavitha Usha A Kavitha Rani Manikumar D Sekar Panchavarnam S o c i a l A u d i t R e p o r t : P a r t I I

85 85 S o c i a l A u d i t R e p o r t : P a r t I I 16 Vellaiyammal Mathiyalagi Total Total misappropriation Rs During social audit 1600 was repaid. 5. SHGs The team met 14 SHG out of 19 SHG. 19 SHG affiated in PLF, Vasantham DSHG not functioning last one year, due to community issues over the temple, as told by villagers as well as the previous bookkeeper to social audit team. There are only 5 differently abled members in this SHG who are from different communities. Sabarisri WSHG not functioning due to a bank loan of Rs. 1 lakh taken in year 2014 which is overdue. Kavikuil SHG defunct due to members who have migrated. 6. SHG Training The team met 14 SHG out of 19 SHG. There were inconsistencies within the records in training. 4 th Module training conducted for 7 SHGS over 2 days only as per attendance. But bills have been claimed for 3 days training, as shown below. Voucher No: 1270 shows Rs.2160 but no bills. Voucher No: 1271 shows expense of Rs The bills for this training were shown for , but the training was conducted on 12,13,14 October-2015 VPRC SHG Consolidation Register not updated SHG Grading, Rating, and Training details. SHG total through improper bills: Rs Skill 29 Youth benefited in skill training. In batch payment made to Bismilla Driving Institute while comparing records, it was found that Rs.1750 was paid extra against the name of one Pandiyan. Each trainee fee is Rs One youth (name withheld) has attended only 30/45 days in a beautician course, but full payment Rs 8000 paid to Kavitha Institution. She has signed to this effect. Another youth (name withheld) dropped out after attending 11/45 days in a beautician course. The course was not completed but full payment of Rs.8000 paid to Kavitha Institution Two disabled youths (names withheld) underwent electrician training. He dropped out after attending for the first day, but payment of Rs has been made to Kavitha institution. All four youths have signed to this effect during field verification. Also, the gender ratio of youth trainees was skewed at 2.2:1 Total misappropriation : Rs. 28, PLF ASF The team met 47/68 beneficiaries. PLF loan card not issued in PLF. Loan ledger register was not properly maintained - i.e. Loan application number, date, receipt no. DCB nil in PLF, PLF Loan tracking registers were not updated after December 2015.

86 9. PAR 80:20 70:30 Recovery Rate Closing Balance In Durgaiyamman SHG, a loan of Rs has been taken by Rani in the year 2015, but it has not repaid the last 9 months. 6 SHGs have not got ASF loan. ASF A/c bank balance: 7, 76,686. PLF PAR outstanding Rs.20,000 and PLF total outstanding Rs.7,28,000 PAR:2.7% 84 % Target 95 % Livelihood 75 % Recovery ( DCB Calendar not maintained ) Rs. 7, 76, Tally Tally accounts not updated after feb CLG M.G.R. Paasimani CLG received Rs.94, 855. It was found that this was being used for internal lending instead of on the CLG. An of Rs has been spent in year2015 for purchase of table chair,rack,pench,store advance,materials But CLG is not functional now. 12. Total Misappropriation Amount Individual Assistant Repayment : 23,250 Skill Training : 28,750 SHG Training : 5,860 Total : Rs. 57, Status of poverty Chindamani w/o Arumugam aged 60 has 2 sons. Chindamani is deaf and dumb. Her husband met with an accident. Her elder son is deaf. Her husband s sister is also living with them because she lost her husband and son. Her elder son aged 10 is with her brother s house for work and for his survival. No one is capable of doing labour work. Chindamani usually begs door to door to get food for their survival. 14. Impact during the 5-day audit Skill training register was updated. Loan ledger register was updated. Skill training bills were collected and updated. Individual assistance repayment Rs.1600 collection (on learning that this would be read out during Oor Koottam.) When the social audit began, loan cards were distributed to PLF and Individual assistance overnight without bookkeeper signature. 15. Oor Koottam 70 people attended the meeting. Repayment mismatches, skill training dropout payment, SHG 4 th module training issues were raised in the Oor Koottam. APM BF & SS attended the hearing, Panchayat Talaivar and the project staff (Cluster team) Follow up action promised: People demanded that they wanted bank loans. APM BF promised that he would ensure bank linkages with IOB bank within 1 week. Cluster Staff promised defunct SHG revival and affiliation with PLF and that they would arrange to give the ASF loans in Pankunivayal habitation. The president promised to build a bridge between OVK Nagar and Vivekanandha Nagar so that people could cross over the railway track. 86 S o c i a l A u d i t R e p o r t : P a r t I I

87 14. Ramanad district 14.1 A Puthur village, Bogalur block, Ramanad district Social audit from 8/8/16 to 13/8/16 Area 1. PIP BPL 2. Individual assistance Findings Did not have any changes. They have included 6 disability members. PIP list identified 245 target families 52/96 people were met. There were instances where loans have not been taken for stated purposes. For example, Muniammal, took loan for Goat but actually bought earrings. Nobody has purchased insurance. Repayment was poor. Rs.96,500 has been recovered. Recovery Rate = 28% 2.5 lakhs outstanding. 3. SHGs 11 out of 18 SHGs are defunct. Repayment issues. Linkage only for one bank.only 6 SHGs are being monitored by a CST. 4. SHG training 286 people have attended, as per records. 146 members only have participated. When we met and discussed with 12 SHGs, it was found out. But bills were there for 144 people, so it appears that only attendance seems to have been marked carelessly. 5. PLF Two issues: groups having misappropriation. Roja SHG 1,60,000Rs. misuse / overdue. 10 people have divided and taken the loan. Vyahammal has not taken any loan herself. But according to her records, in her name loan has been issued for Rs. 15,000. On field verification the loan was actually found to be taken by Noor Mary. Reason: Noor Mary was too sick to come out. She could not be met by the team. Roja SHG: defunct since last 2 years. Clara has migrated to elsewhere, and so the group fell. Tamarai SHG: 5 people have taken loans of Rs. 1 lakh. One person Arogya Mary alone has received loan of Rs. 20,000. But the other 4 members, 80,000Rs. has gone to Nirmala Motchamary. The other 3 people did not know that loans had been taken in her name. Matha SHG: In 6 people s names, Rs. 1 lakh loan has been given according to records. But again this has been taken by one person Nirmala Motchamary. 6. Skill 74/116 youths have been met. About of them were employed outside the country and in Singapore as daily wage labourers. Many of the youths have gone for nursing, tailoring trainings and have benefited. 7 80:20 and 70:30 Loan recovery,par 71:29 and 82:18 Only 64% and PAR = 36% 8. Tally VPRC, E governance, development PLF has pending corrections. Updated upto August CLG Two CLGs, only material has been purchased. Both are not active. No transactions. Both have purchased accounts for about Rs. 70,000 each. One is goat and the other for charcoal. 87 S o c i a l A u d i t R e p o r t : P a r t I I

88 14.2 Keezhselvanur village, Kadaladi block, Ramanad Social audit from 8/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individual assistance Findings PIP list identifies 142 families, while BPL list identifies 460 families. Further probing may be required to understand why the difference is so large. The team met 41/49 beneficiaries. During field verification, we found that 8 people (2 disabled, 6 vulnerable) who are NOT in the PIP list have been given loans. We were shown GS approvals for 6 of the vulnerable to be added to PIP list, but this PIP register was not updated. 5 repayment differences were observed Lakshmi, Murugan, Muniswari, Kumarayi, Puttuamman have paid Rs each more as found during field visit than the registers/passbooks. This difference s to Rs unexplained. 3. SHGs Totally 13 SHGs, 2 of them have not been federated. We had group discussions with these groups and they seemed interested to federate. 4/13 groups are defunct (savings not paid, loans not being repaid etc) It was felt that the SHGs are not being monitored. CST did not know how to maintain records. 4 SHG have never had a bank linkage, the active 9 SHG did not have bank linkage in the current financial year. 4. SHG Training 4 th module attendance, bills checked. Only 4 groups have got 4 th module training. 80% of the group has been attending the trainings. 5. PLF The team met all 26 beneficiaries. 6. Skill (mismatch, Gender ratio, 80:20) 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs (VPRC, PLF, SAC) The team met 22/27 beneficiaries. 50% of the people are in different employment areas from the training areas. Soft skill training has not been given. Gender ratio 2.5:1 female Non target was 33.3% in skill (9/27) Nil 65:35 a lot of PLF loans have gone to non target 100% Livelihood purpose 100% Rs /- During discussions, many villagers and committee members reported to the social audit team that the influence of the President in the functioning of the committees was heavy and often detrimental to the process. 9. Tally Tally has been updated for SHG, PLF etc. 10. CLG 1 CLG has not got fund yet and hence not begun functioning. Rs (5 member loan repayment difference) 11. Total Misappropriation Amount 12. Oor Koottam Over 120 people attended the hearing, and they signed the Oor Koottam report. Issues of repayment were discussed. The DPM and cluster staff also attended the meeting. 88 S o c i a l A u d i t R e p o r t : P a r t I I

89 13. Village socioeconomic profile Yadavar, Devar (BC) and SC communities stay in the village. We found that the village history resulted in a climate that was politicized and negatively affecting the implementation of several scheme there. The current president has been serving since 3 terms. For example, more effort is needed to ensure that the Yadavars community in Kottayenthal with 292 families are included in the various schemes. There was an overhead tank which is in urgent need of chlorination. Roads, toilet facilities were also problematic. Focus on convergence work is needed. 89 S o c i a l A u d i t R e p o r t : P a r t I I

90 15. Salem district 15.1 Valayakaranur village, Ayothiyapattinam block, Salem district Social audit from 29/8/16 to 4/9/16 1. Village Overview Valayakaranur is located at the foothills of Yercaud. There are 3 habitations in the village. 2. PIP: BPL: In Valayakkaranur, 208 families have been identified as target. 110 families are classified as very poor, 98 families as poor. 30 persons have been identified as disabled and 37 as vulnerable. 7 people have been added to PIP list and 12 people have been deleted from the PIP list. All 19 changes have Gram Sabha approvals. 3. Individual Assistance The team met 20/70 beneficiaries There were several discrepancies between registers and field verification. Some of these are: As per record, Govinthammal on has taken Rs of which Rs.2500 has been repaid, and she has a balance of Rs It was found that before social audit team began field verification, the project staff have met the people and given them a card stating that they have received 20000, and instructing them not to show us the old card. However, Govinthammal, who shared this with us, gave us both the cards and said I have received only During our conversation, the VPRC book keeper said we had issued cheque to Govinthammal. But it was found that the cheque was cleared in another person s name - Jeyakodi - who was found to have taken 10000, and given only Rs to Govindammal. As per record, Chellammal has been given Rs but during field verification it came to light that she has received only Rs Again it was found that she has been given another card stating that she has have received Rs As per record, Parvathi also received only Rs but during field verification she too said that she had received only 10000, but she had been instructed that if anyone comes home and asks please say She too had been given a card one day before our field verification. As per record, Annamalai has received Rs on He has repaid Rs On the loan card this has been reflected, but receipt has not been issued. As per record, only Rs.1000 has been repaid. So, Rs.4000 (difference of ) is still with Jeyakodi to whom the repayment has been done. But Jeyakodi could not be contacted when we went for field visit. 4 SHGs The team met with 17 SHGs. 12 functional, 5 were defunct (as found based on registers, passbooks, meetings with them). CST is not active. 5 CST Salary No report for last 2 years and no salary given to CST. 6 SHG Training All 4 th Module training have been shown on records, during discussions members said they attended the training. CST is not active. SHG registers were not shown during social audit and hence could not be verified. This data was not found in Tally either 90 S o c i a l A u d i t R e p o r t : P a r t I I

91 7 PLF The team met with all 17 SHGs. All of the SHGs have outstanding loan. Our team met 59 beneficiaries. Loan cards were given recently and there were many differences between loan card and records. As per records, one of the Thendral SHG members said that she didn't receive any loan but as per record, a loan of Rs exists. In Thamarai SHG, Rajeeswari and Saraswathi have each received a loan of Rs in the year As per record, full is pending but they have given in writing that they have repaid fully. In many SHGs, when the previous loan was pending, again the loan has been given. But the names in the record are different from the actual loan card recipient on field. In one case, in Thamarai SHG, a loan of Rs has been taken and given to another 5 members for IHHL loan who are not in the group. 8 Skill 173 youths had gone for training. Placement orders were not there. In 30 cases, applications were not there. Training institute bills were not found for the youths trained in the initial period. 9 PAR: 80:20 70:30 10 Functioning Of CBOs (VPRC,PLF,SAC) Recovery rate 45% PAR 55% 11 Tally Not updated Last one year not functioning the VPRC, PLF SAC. But resolution written. 12 CLG 2 CLG in this village but 1 CLG not functioning. 13 Total Misappropriation Amount Rs. 1,19,000 (Individual loan 34,000+PLF 85,000) 14 Oor Koottam We found that despite our efforts to mobilize the villagers, nobody initially came to the Oor Koottam. The Talaivar then arranged for an auto so that people could come. About 100 SHG members attended. Issues about the individual assistance were brought up in the Oor Koottam. PLF issue was not discussed much. One of the SHG members came to raise her problem, but at that point the DPM and CST asked her not to discuss the problem at this particular social audit platform.at one point, when the staff was heatedly discussing an issue raised, the videographer was instructed to censor and drop the heated conversations before sending to state office Thalaivasal village, Thalaivasal block, Salem district Social audit from 29/8/16 to 4/9/16 1 Village Overview There are 2 habitations in this village Thalaivasal, Nathakarai. It is over an hour s journey from Salem by bus families in all. In the main Thalaivasal habitation, visibly there were more disabled people in the village. 91 S o c i a l A u d i t R e p o r t : P a r t I I

92 2 PIP: BPL: 3 Individual Assistance Political aspects: The President is a lady(sc), but her husband(bc) is a bank employee and runs the panchayat on her behalf. In Thalaivasal village, the project has identified 592 target families of which 223 are identified very poor and 369 as poor. There are 117 disabled persons and 120 vulnerable persons. There were no changes made to the PIP list. The team met 63/154 beneficiaries. Out of persons identified as disabled/vulnerable, only 97/117 disabled and 57/120 vulnerable persons have received individual assistance. Which means there are still 83 persons who have not received any loan from the project. At the same time, 50 persons have benefited twice. Another finding is that 3 persons - Mary, Jeyanthi and Rajammal have been given loans while the previous loan was pending. Overall loan outstanding is Rs SHGs The team met with 26/46. Manoranjitham SHG is not affiliated with the PLF but has received loan for 11 members, worth Rs During field verification, it was found that 5 SHG s were defunct. We could not meet with all the SHGs because the number of habitations was high. None of the SHGs have a bank linkage. 5 CST Salary Irregularities Out of 3 CSTs, one is not working. Varathammal is looking after 9 SHGs and has received her honorarium till Feb 16, while Anitha is looking after 6 SHGs and has received honorarium till April 2016.The rest of the SHGs have no CST. VPRC bookkeeper had earlier been functioning as CST too. 6 SHG Training We met 20 SHGs. Trainings were found to have been conducted as per records. 7 PLF Totally there 47 SHGs, all have received ASF loan. During field visit it was found that in Thamarai SHG, Jothi has repaid Rs and Neelavathi Rs.7250 to one person, Saja (animator).on the day of visit, Saja accepted and paid Rs and promised to repay the remaining in one or two days. So, total misuse identified = = Skill 219 youths had gone for training. This team met only 17 youths. Out of 17, one named Mohandas finished mechanic training, for which an of Rs is given to the institute, but certificate has not been issued yet. 9 PAR: 80:20 70:30 10 Functioning Of CBOs (VPRC,PLF,SAC) 11 Tally Updated 78.1% 21.8% 682.2% 17.7% Recovery Rate:76.8% PAR:25.2% Participation of members was low in the committees met during social audit. 12 CLG There are 3 CLGs in this village: Theiva Thirumagal milk CLG received as project fund. From , the CLG is not functioning. Kulamatha Milk CLG received as project fund but it is not functioning from the beginning only records have been updated. Another Atsaiya CLG received This CLG is not functioning for last 4 months. Member contributions have not been collected from this CLG. Only 92 S o c i a l A u d i t R e p o r t : P a r t I I

93 13 Total Misappropriation Amount Karpuradeepam SHG members are in this CLG. The hotel is run by VPRC Secretary, reportedly. And the income expenditure had not done under this CLG account. All 3 are currently non-functional = Rs (Rs is the repayment difference and Rs. 10,000 which was recovered during social audit) 14 Oorkoottam About people attended the Oor Koottam. The APM and cluster staff attended. The Talaivi also attended the meeting. The issue of many SHGs not receiving bank linkage was discussed. The Talaivi also spoke of the importance of timely repayments. 1 Village Overview 15.3 Nallur tribal village, Yercaud block, Salem district Social audit from 29/8/16 to 4/9/16 There are totally 156 households in Nallur. The village has mostly tribal population. There is only habitation. Livelihood: floriculture, agriculture. The talaivar could not be met at all. Only the ward member could be met. The main panchayat is Vellakadai and the Talaivar, Venkatachalam, lives there and not in Nallur. 2 PIP, BPL In Nallur village, Pudhu Vaazhvu has identified 148 target families. Of this 47 families have been identified as very poor, and 101 as poor. There are 8 disabled and 18 vulnerable persons identified for individual assistance. 2 persons have been added to PIP list and this had the necessary Gram Sabha approvals. 3 Individual Assistance The team met 46 beneficiaries. Differences identified between registers and field verification are as follows: Gandhimathi (Rs. 6500), Muthukumar(5500), Sunilkumar(5000), Mangammal (2000) and Vellayee (6000) have repayments ing to a total of Rs which they said they have repaid to the bookkeeper, but this has not been credited into the bank. During field verification it was found that old book keeper Anjali has kept the with her, since over two years. She is not the bookkeeper anymore since two years. Loan cards were not present with the beneficiaries. So people do not have a way of tracking their repayments. In two more such cases, Lakshmi has repaid Rs.4000 and Raman repaid Rs.4000, so a total of Rs.8000 also has not been entered in the register. This was given to one Mr.Vijaykumar (the first bookkeeper). Total misuse identified based on this: Rs ( ) 4 SHGs The team met with 10 SHGs. 8 are functional 2 are defunct. 93 S o c i a l A u d i t R e p o r t : P a r t I I

94 5 CST Salary Irregularitie s 6 SHG Training As per the records in Mullai SHG there are 19 members as per records, but during field verification, only 12 members were there. Similarly, in Sikaram SHG as per records 20 but in the field verification only 12 members. Nallur A and Nallur B SHG: as per records these SHGs have 19+19=38 members but in the field verification it was found that the SHGS have 12+12=24 members only. Kurinji SHG: as per record 17 members, but in field there were only 12. In Senthamarai SHG 17 members are there as per records, but in field only 12. 8/10 SHGs have no bank linkage. 1 SHG has not been repaying the bank loan properly. 4 SHGs are not repaying ASF loan properly. No CST for the past 2 years. Prabavathi old CST received a salary 1050 in the month of November Now new CST Sathyia has been selected This was written in the VPRC resolution. Resolutions are not there. People could not remember what the training was about or what they learnt at the training. But they recollected having eaten food at the training. It was also found that Non Communicable Diseases (NCD) training and 4 th module training were combined and given together. 7 PLF The team met with 72 members. They are repaying the loan properly. Even as the field verification was going on, Rs have been collected as repayment for ASF. There were no loan cards present with the beneficiaries. When asked, it was learnt that the cluster staff had not issued loan cards at all. 8 Skill 49 youths had gone for training. Issues identified are as follows: 33 youth have been given masonry training through Mavatta MaKaMai. Out of the 33, 11 are males and 22 are females. Most of the female trainees are now at home, while a few are going for estate work. The training spent for them is Rs. 1,01,140. The purpose of the training is not fulfilled, they reported. Out of the 33 who attended training, 4 youths who were met clearly stated that they did not attend the training at all but the of Rs.9500 per person has been fully paid to Mavatta Makamai. Rs In the field verification 19 out of 49 youth were not given placement but 20% placement portion of the skill fund was found to have been released. Misuse in skill: Rs.38,000 (from point 2 above) 9 PAR: 80:20 70:30 100% 88% 12% Recovery rate 96.78% PAR 3.22% 10 CLG No CLG Rs.71,000 (Individual loan 33,000 + Skill 38,000) 11 Total Misappropriati on Amount 12 Oorkoottam 70 members attended the Oor Kootam. From the staff, only Bhaskar team leader attended this Oorkottam. People reported that the above fund misuse had happened when the VPRC was run by DAN foundation, by two the villagers identified above (Anjali and Vijayakumar). There is no VKC because it is a subcommittee. People spoke about needing bus facility, speaking of troubles of the hilly area. People at the Oor Koottam also asked a place to conduct SHG meetings. VPRC is being run on a place on rent in one of the houses and so a separate place was asked for the same. 94 S o c i a l A u d i t R e p o r t : P a r t I I

95 16. Sivagangai district 16.2 Udayanoor village, Ilayankudi block, Sivagangai Social audit from 8/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individual assistance Findings The PIP list identifies 148 families as target, while the BPL list identifies 234 families as poor in the village. The PIP list has 15 additions, and these had Gram Sabha approvals. The team met 25/37 beneficiaries. 3 repayments were showing differences between loan card and loan registers. The bookkeeper was not available to check. For example, one person, Thiru. Arulananthar, has repaid Rs according to his loan card but he has repaid only Rs according to the registers. Most of the beneficiaries seemed to have loan cards which were updated. 3. SHGs All the 13 SHGs are functional but have no bank linkage. Their registers were updated upto July 2016, but only internal lending is taking place. Reason for this: There have been repayment issues with the previous SHGs in this village, as told to us by community members. There was no CST at all since September PLF 37/60 beneficiaries met. 1) As per records, Murugan SHG, in 2015 has taken a loan of Rs. 80,000 through 5 members. But during field verification, it was found that only 4 members took loans. 2) 9000Rs is outstanding but no challan is there at bank. Our records show that it is not repaid. 3) Only 9/13 SHG received the ASF loan. Special SHGs (differently abled) - none of them have got an ASF loan. 6. Skill 13/19 beneficiaries met (i.e, 6 youths, 7 families of youths). Most youths could not be met at their homes as they were not present. 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs and functionaries (VPRC, PLF, SAC) (CDF,CST, BK) Nil 80% Target(48 member), 20% Nontarget(12 member) 100% Livelihood Purpose PLF loan recovery % Plf Closing Balance CDF is giving physiotherapy. She is working well. 9. Tally PLF, VPRC was updated. SHG not updated. 10. CLG 1.Goat CLG. Not active. No transactions happening. 2.Only 2 houses had goats. 25 houses in all, but 23 could not be verified. Days. 39 people in all in the goat CLG. 11. Total 9000 (VPRC repayment differences of 3 members) Misappropriation Amount 12. Oor Koottam people came to the Oor Koottam. 95 S o c i a l A u d i t R e p o r t : P a r t I I

96 Vice President, APM M&E, BFTs were all there VPRC, PLF members of all 3 habitations. SHG linkage, CST not being there, Tally updation, CLG needs to be functional. APM M&E and other functionaries promised follow up on all of these 16.2 Tirumalai Koneripatti village, Sivagangai block, Sivagangai Social audit from 8/8/16 to 13/8/16 Area 1. PIP: BPL: 2. Individual assistance Findings The PIP list identifies 211 households, whereas the BPL list identified 246 families. The team met 44/50 beneficiaries met. 6 repayments are showing differences between loan card and record. For example: one person, Vinothini, has repaid Rs according to the loan card but has repaid only Rs according to the registers. Difference of all 6 cases put together s to Rs.5000/. The members said that the bookkeeper did not give them the receipt, and that they made the repayments at their house. No vouchers were present for Development Account. This means there is no proof of expenses or loans made. The bookkeeper said she did not know that vouchers were needed for this. 3. SHGs There are 23 SHGs in all, of which 2 SHGs are defunct (Hare Krishna women SHG, Repco thenral women SHG) Bank linkage not there for any of the 21 SHGs for the current year. 4. SHG Training 4 th module training has been completed only for 6 SHG out of the 23. The others are yet to happen. There were a few mismatches in attendance records.(as inferred through bills, meeting minutes, group discussions with the trainees) 5. PLF 50/56 beneficiaries met. According to the records, PLF loan of Rs. 20,000 was disbursed to a woman Manimegalai in Kurichi Women SHG in 2015.But during field verification we found that loan was taken by another person Valli. Reason: Manimegalai said she did not need it. There are 3 differently abled SHGs in this village. None of them have received any ASF Loan. When we met them, they said they wanted loans. Reason for this: individual assistance has gone to these members and is not repaid yet fully. Some also said that the office was closed for some days when they came for repayment, since there was no CDF for two years. 6. Skill 18/26 beneficiary (including families) met, some people work in other states and so only their families could be spoken to. Training and employment status was found to be different. For example, youths have completed driving but are employed as machine operators abroad. Most people are not to be found at home. From the records, the gender ratio in the beneficiaries was found to be 2.3:1. 96 S o c i a l A u d i t R e p o r t : P a r t I I

97 7. PAR 80:20 70:30 Recovery Rate Closing Balance 8. Functioning of CBOs (VPRC, PLF, SAC) 0% 73% Target(41 member), 27% Non target(15 member) 100% Livelihood purpose Loan recovery 100% Rs /- VPRC Development Account - no vouchers were made. VPRC committee did not know much about the salary payments of bookkeeper (made 2 months ago) 5 members attended the PLF meeting with us. PLF Treasurer did not know much about the finances of PLF. SHG Bank passbook entry was being made late. 9. Tally VPRC and PLF update July 2016, and SHG update Mar CLG Diary CLG Malligai formed in 2013, but CLG not functional. They said they had gone for exposure visit, but they did not show documents to this effect. Fund of Rs had been received by the CLG in 2015 only, and it remains unused. 11. Total The 5000 Rs. (individual assistance loan mismatches) Misappropriation Amount 12. Oor Koottam Over 70 people attended the hearing. DPM, APM CB, Panchayat Talaivar presided the hearing. The loan repayment issue was discussed by the people. The VPRC and PLF passbooks, which had not been updated, were updated and shown on the Oor Koottam day. The Talaivar requested the project staff that loans taken by the two dead persons Sudha d/o Krishnan (Rs. 10,000 loan, 7000 outstanding) and Aravindan s/o Arumugam (Rs. 10,000 loan, full outstanding) be waived off. 97 S o c i a l A u d i t R e p o r t : P a r t I I

98 17. Theni district 17.1 Kamarajapuram village, Bodinayakanur block, Theni district Social audit from 15/9/2016 to 20/9/ Village Overview The village has 546 households, with 2 habitations. Livelihood: primarily agriculture, migration to Kerala for labour. Communities: Mixed. About 60% population is SC. Political aspects: People in the village spoke in detail of partisan influences in their lives. Talaivar was of AIADMK party, but voting populations were perceived to be DMK, as told to the team by people. 2. PIP, BPL 175 families were found in target as per PIP list. 118 families were poor; 57 families were very poor. Differently abled 55 members. Vulnerable 27 members. BPL list identifies 240. There were no changes made to PIP list. 3. Individual households We met 60/79 beneficiaries. Loan card was not present with any of the beneficiaries. There were 10 cases in the habitation of Manickapuram of repayment differences between records and field, as follows: As per records, Ponnitayi has taken loan of Rs.10,000 in Rs.1250 has been repaid by her, with outstanding Rs But when met in person, she denied having received this loan. Sitammal had taken assistance of Rs.500 for medical, but she said she not received this. Ramayi has taken loan of Rs.5000 in the year We found that the family, in person, was not very poor, but the loan had been waived off in the Repayment Registers. There were no VPRC resolutions and GS approvals required for the waiving off. When met in person, Ramayi said she would repay it. Panjavarnam has taken a loan of Rs.5000 in the year 2009 as per records. She has repaid Rs.275, as per registers. But the loan has been marked as Subsidy in the register. When met in person, she said she had stopped repaying but has signed saying she would now repay the loan. Papathi has taken a loan of Rs.5000 in the year She has repaid 1300 as per registers, the remaining 3700 has been marked as subsidy/grant. But when met in person, it was found that her son has a government job and was not poor enough for writing off the loan. She promised to repay this and has signed to the effect. Malaichami has taken a loan of Rs.10,000 in year He has repaid 2000 as per registers and field, and 8000 was marked off as Grant. But all members of the family are well employed and were capable of repaying. He promised (signed) that he would repay. Suppammal has taken a loan of Rs.5000 in She has repaid Rs as per register and field, rest had been marked off as grant. She has two employed sons, and promised to repay when met by the social audit team. Ochammal, has taken a loan of Rs.5000 in She has repaid 2500 and the rest is marked as Grant. She has cattle and has children who are earning members. She refused to repay the loan, and in fact denied having received the loan. Muthuchamy in 2009 has taken Rs as loan, and repaid Rs is marked as subsidy as per registers. During field verification, he said he had stopped repaying long 98 S o c i a l A u d i t R e p o r t : P a r t I I

99 ago and would not repay it. He is a differently abled person, and has a son(works outside) and a daughter(tailoring). He did not know his loan had been waived off. Nagajothi in 2008 has taken a loan of Rs and has repaid Rs But as per registers, 1200 has been marked off as subsidy. All of the 10 cases above are family members of the bookkeeper. The members did not know that their loans had been marked off as grant. Total mismatch : 35, SHGs There are totally 24 SHGs, 5 special SHGs. The team met 18 SHGs. 2 are defunct. None of the SHGs had a bank linkage in the current year. 5 CST/CDF functioning CST has given reports which are incomplete or not up-to-date for the last one year. CST Aazhagumanikam: She is overseeing only 6 SHGs, but submits reports for all SHGs including the 2 defunct SHGs and is withdrawing a salary. CDF Mahalakshmi: Now she is in a government job as a teacher in primary school in neighbouring Kodangipatti panchayat. Monthly CDF salaries are going in her name regularly, her monthly reports are in place but she is not working as told to us by people and the bookkeeper. She has been in the post of CDF for 10 years, and in the government job for 2 years. 6 SHG Training As per records, 20 SHGs have received training, including to the 2 defunct SHGs. There are 12 SHGs in Manickapuram and 12 SHGs in Kamarajapuram. The 2 defunct are in Manickapuram. There are bills totalling Rs But the photo documentation, record dates and bills did not match. For example, Rs has been paid to Shaktiambikai SHG as per resolution, but the money in fact has been credited to Azhagumanikam (CST) as per passbook, with hotel bills of Vasanthabhavan against this transaction. Bills for expense of one habitation training were attached against photos of training in another. 7 PLF The team met 132/466 beneficiaries. Members of Mullai SHG have taken loans in the names of 4 people an of Rs. 1 lakh. They have repaid Rs as per registers. But during field visit, they said they had repaid the entire and that the balance 12,000 was with Gomathi, a PLF member. It was learnt that a police case had been filed in this matter in the year 2015 on Gomathi. Vasantham SHG: a member Anandi in 2014 has taken loan of Rs as per register. But during field verification, Anandi could not be met as she lives out of the village. While trying to meet her, it was found that Palaniswari has taken the loan, as admitted by her. She has repaid Rs.3750 and the rest Rs is outstanding. Nagamalikai SHG: 5 members have taken loans of Rs.25,000 each to a total of Rs. 1,25,000 in 2015 as per registers. During field verification, it was found that the entire was with Palanimuthu w/o Rasaiyya and she has repaid Rs and now lives no more in the village. Outstanding Rs. 88,330. Meenakshiamman Women SHG: In 2011, two members have taken loans of Rs. 40,000 each. As per registers, 13,400 is outstanding. But during field verification, both members said they had finished repaying the money to Sentamizhselvi (of the same SHG) two years ago. Total : Rs. 1,34,980 (13, ) New loan cards have been freshly issued in this village as told by the villagers. 99 S o c i a l A u d i t R e p o r t : P a r t I I

100 8 Skill We met 120/133 beneficiaries and their families. In June 2016, 4 youths have gone for tailoring to Mithun Sai Institute including the CDF Azhagumanickam against an of Rs. 20,650. But certificates have not been received by them till date. The attendance records had x and o formats instead of signatures. As per registers, one youth, Suryakala, has gone for computer as well as tailoring training but could not be met during field verification. Gender ratio for males to females was found at 2.5:1. 9 PAR: 80:20 70:30 Recovery rate Closing Balance 10 Functioning Of CBOs (VPRC,PLF,SAC) 31% (but in MPR this had been reported as 23%) as calculated from DCB 80:20 90:10 83% Rs PLF meeting was held. The members did not know about transactions, the bookkeeper s influence was high. PLF Talaivi said I have not attended the PLF meetings since 6 months and has signed this. It is a rule that PLF Secretary should have been in an SHG for at least two years. But the current PLF Secretary Jayanthi has been nominated without following this rule. She is related to VPRC bookkeeper. VPRC Secretary has said that she was contacted only for cheque signatures, and that bookkeeper usually runs the committee. She has signed to this effect. VPRC registers were updated and showed meetings happen regularly. But during field verification members did not know much. Kaliammal, a VPRC member, signed saying she did not know what VPRC was. 11 Tally Tally was updated till July CLG 5 CLGs Star Fertilizer SHG, Vettri goat CLG, Nila Manure CLG, Sweetie Aluminium CLG, Surya Diary CLG have received a total fund of Rs. 2,95,450. They have made an expense of Rs , and have a balance of Rs Bills for the entire were not shown for any of the expense. Procurement materials were not shown despite asking for 5 days during the social audit. Moreover, after the Oor Koottam was concluded, the social audit team CP received a message through the MaKaMai CP from DPMU requesting that this finding about the CLG should not be reported. 13 Total Misappropriation Amount Rs. 4,61,213 VPRC: Rs. 35,363 (repayment differences) PLF: Rs. 1,34,980 (mismatches shown above) SHG Training: 48,370 (bills/documents date place mismatch) CLG: 2,42,500 (bills /materials not shown) 14 Oor Koottam About 200 people attended the Oor Koottam. DPM, APMs and staff attended the Oor Koottam. All issues were discussed. A previous pending issue about PIP list additions for 75 families was raised by people, who wanted to know the progress of this. DPM promised to look into the issues brought up. 100 S o c i a l A u d i t R e p o r t : P a r t I I

101 17.2 Ramakrishnapuram Village, Andipatti Block, Theni District Social Audit Period to Sl.No Area Findings 1. Village Overview In this village there are two habitations - Ramakrishnapuram and Kozhingipatti, the total number of households in this village is 415, and population of this village is PIP: BPL: In this village, PIP list identified 113 families and the BPL families are 120. In this village 3 members are included in PIP list and one member is removed from PIP list due to death (Mr.Thangaraj C/O Selvam). Two persons have been included in the PIP list (due to being affected with HIV) and have been added as vulnerable. This was approved on Special GS. 3. Individual assistance As per records, total differently abled persons are 38 in all and vulnerable are 65 in number. So out of 103 persons, 42 have been given individual assistance loans. Team members verified 36 persons in that activity Ms. Veluthai she left from the village, Ms. Bakiyam and Ms. Velammal s loans have been written off due to their death. The records were verified and found to be consistent with field. 4. SHGs The team met 17/18 SHGs. All 17 SHGs are affiliated with VPRC and PLF, one SHG is defunct. There are 13 women SHGs, and 4 are differently abled SHGs, presently there are no bank linkages for any of the SHGs. Villagers said that in the past they have repaid bank loans. CDFs take care of all SHGs, presently there is one CST, Jothy. Regular meetings are conducted in all SHGs. 5. SHG Training The team met 17/17SHGs. SHGs module IV trainings has been conducted. But signatures had several issues. We found that thumb impressions were applied on the registers by the same person. In field while verifying signatures it was observed that members in fact sign their names and do not use thumb impressions at all. Defunct SHGs has been given the M4 training. Record shows that the training was given to 18 groups at cost of Rs for 673 persons. But in field, it was found that only 464 persons have undergone training at expense of Rs The difference comes to Rs This has not been repaid into VPRC account, and was identified as being with the CST. 6. Skill The team met 41 /64 Skill beneficiaries. Out of 41 beneficiaries, male 26, female -15, Target 100% and non-target 0% as per the field verification. For the 41 persons the skill records were verified against field and found to be consistent. 7. PLF ASF The team met 58/164 beneficiaries PLF loan repayment stands at Rs In this PLF all the records are kept updated. There are defaulters in loan repayment. The Book Keeper (Rs ) of PLF and Secretary (Rs.25000) are also not repaying the loan properly. Totally 66 persons are not repaying the properly. 8. PAR 80:20 As per PLF PAR outstanding Rs and PLF Total outstanding Rs = PAR 11.65% 101 S o c i a l A u d i t R e p o r t : P a r t I I

102 70:30 Recovery Rate Closing Balance Totally Amuthasurabhi loan has been disbursed to 126 members an of Rs.39,95,000. Of this, target members and is Rs. 33,80,000 and of those benefited, % are target and 38 are non-target with an of Rs.6,15,000, which is 23.17% for non-target. 148 members for livelihood and 16 for others. PLF Demand Rs , collection Rs and 88 % Recovery. Closing balance in Bank Rs Functioning of CBOs(VPRC,PLF,SAC) VPRC, PLF Meetings are conducted regularly, and the SAC members were available in the VPRC Office during the Social audit. SAC records were updated. 10. Tally There was no computer system in this VPRC. It was brought in only at the time of the social audit. 11. CLG SAKTHI Cow Common Livelihood Group is working in the Panchayat and bulk milk collection is done, supplies are sold to Aavin society. The infra fund received is Rs and it was utilized for purchase of cans and equipment and the available fund is Rs Total Misappropriation Amount In Module VI Training - Rs.24,400 is identified as misappropriation. 13. Status of poverty The team met 3 very poor families during the social audit. Mr. Guruswamy S/o Palpaandi lives alone and sustains himself through ration for his food and lives in a mud house. With nobody to support him, he works at NREGS for daily wages. He is in PIP list but cannot avail of loans under the project under any of the current categories. 14. Impact during the 5- day audit Records got updated properly. Computer system was brought into VPRC from cluster office during the social audit period. During the field visit Individual assistance repayment collection Rs Social audit team stayed in the VPRC office through the 5-day period. 15. Oor Koottam Nearly about 120 people attended the meeting. Individual assistance, skill and PLF were the issues discussed in the Oor Koottam. Panchayat President, APM(VF) and the DPM and Ramakrishnapuram cluster team leader and staff attended the Oor Koottam. They accepted the findings and promised to make improvements. 102 S o c i a l A u d i t R e p o r t : P a r t I I

103 18. Tiruvannamalai district 18.1 Oorgoundanur village, Jawvathu hills block, Thiruvannamalai Social audit from 29/8/16 to 4/9/16 Area Findings 1. Village Overview The village is situated in the hills, and is very difficult terrain to travel. With about 301 households in 6 habitations, the village has about 96% ST population. The habitations are all far flung and spread across the hills, with challenging transport. The president is a woman, Sumathi (ST). The bookkeeper is also a ward member of the panchayat. Social audit was done for the main VPRC. 2. PIP: BPL: PIP list identifies 301 households as target, whereas BPL list identifies 351 families. Gram Sabha approval copies were not available for verification. 3. Individual assistance 68/102 beneficiaries were met. In the case of 28 members who took a loan to buy cattle, insurance at the rate of Rs. 500 has been collected from each member, for a total of 28X500 = Rs.14,000. This is still with the CDF Kali and TCF Thirupathi since 2011, but insurance has not actually been given to people the last 5 years. Misuse identified in Individual assistance: Rs.14, SHGs 9/10 SHGs were defunct - based on meetings conducted with SHGs, interactions with villagers, and verified against SHG registers and documents. The SHG members themselves said they do not conduct meetings or pool in savings. Only 1 SHG is active. 5. SHG Training All SHGs have completed IV module training. All 10 SHGs were met by the team to verify training data. Attendance was marked as full for all members of all 10 SHGs, as per registers. But only 4/10 SHGs have participated in the IV module training. An expense of Rs. 31,210 in the year 2015 was found to have been made on trainings of the defunct SHGs. The only active SHG Saraswathi women SHG of Endirapattu habitation - was not trained in this. 6. PLF 55/115 beneficiaries were met by the team. As per SHG Resolution Register, Amman SHG has taken a PLF loan of Rs in the names of 2 members Sathya and Kali. But during field verification, it was found that only Sathya had received the of Rs Kali s name could not be traced in the SHG Details, and the could not be traced to any individual. 7. Skill 47/78 youth beneficiaries were met by the team. Differences between records and field verification are as below youths did not get any training at all, but training fund of Rs. 11,000 was found to have been released against their names. The institute is again Anand Driving Institute, and the youths met have signed that they did not know about the training youths did not complete the training, but training fund was found to have been released, with the break-up of: No. of youths Training Type Institute Amount released 2 youths Driving Anand Driving 9700 Institute 1 youth Masonry Shanmuga ITC youth Computer CSC 3600 This is a total of Rs. 19, S o c i a l A u d i t R e p o r t : P a r t I I

104 8. PAR 80:20 70:30 Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) youths who were met during field verification said they did not get a placement after their training, but in the registers, 20% placement-linked fund was found to have been released. All 12 youths have gone to Anand Driving Institute. Similar problems in Perumpakkam and Thorapadi villages with the same institute were found. The total thus spent is Rs (19, from points 1, 2 above) 51.9% (registers) 100% target members 100% Livelihood Rs /- All 3 - VPRC, PLF, SAC committees could not be met for a single day over the 5 days of social audit. But resolutions were maintained and meeting member quorum is 100% according to records. 10. Tally Tally updated upto April CLG Sri Sakthi Goat CLG has received fund of Rs in Dec Equity from members on this is Rs When we met the CLG members in person, it was found that the total of Rs. 1 lakh was split as grant between 12 members to the tune of Rs per person. Balance of Rs could not be traced. The CLG has no transactions and is defunct. The President of this CLG is also the wife of the TCF. 12. Total Misappropriation Amount Rs /- (Individual assistance insurance 14000, PLF loan disbursement 25000, Skill 30300, CLG 99700) 13. OorKoottam 160 people attended the Oor Koottam on 3 rd September 2016, which lasted for 3 hours. The APM, Jewathu block all staff, Panchayat President, Vice President, Panchayat President of neighbouring village, Ex-President, ward members and block staff were present at the Oor Koottam. All the issues identified were discussed at the Oor Koottam. The CLG President, at the Oor Koottam, refused to return the. The social audit team clarified that the CLG was not a grant/subsidy, and had to be repaid. One CLG member (Kavitha), at the Oor Koottam, promised to repay her share. 104 S o c i a l A u d i t R e p o r t : P a r t I I

105 18.2 Perumpakkam village, Chengam block, Thiruvannamalai Social audit from 29/8/16 to 4/9/16 1. PIP: BPL: Area Village overview 2. Individual assistance Findings Perumpakkam, with 5 habitations, has about 642 households, with about half the population being SC. Most of the people are in agriculture or masonry or work as daily wage labourers in MGNREGS. The president talaivi is a woman Vijaya, and she actively participates in the VPRC meetings. The panchayat, with an A grade rating, seems to have been visited by World Bank specialists and state specialists. PIP list identifies 194 households as target, whereas BPL list identifies 107 families. 16 member changes were made to the PIP list. 13 persons have been added and 3 persons have been deleted in the PIP registers and GS approvals were verified for the same. 44/65 beneficiaries were met. Every loan application seemed to have the Talaivi s signature and seal compulsorily. This shows that she has a clear measure of control over the loan decisions and processing. 3. SHGs 3/36 SHGs were defunct. 22 SHGs do not have a bank loan in the current financial year. 9 SHGs PLF loan has not been repaying through monthly installments. 4. SHG Training 32 SHGs have completed IV module training. Bills and documents were in place and people were able to share their learnings about trainings. 5. PLF 97/407 beneficiaries were met. A CP in the village, Utharambal, has taken a loan of Rs. 20,000 in December She has repaid Rs and has Rs loan outstanding. When asked why she had not repaid, she said that she had invested her in the CLG (Selvanayagi Groundnut oil CLG) and therefore would not return the until the CLG became functional again. 2 SHGs have never taken a PLF loan. Reason: One SHG(Thamarai) joined the PLF 4 months ago, another SHG (Athilakshmi WSHG) has a bank loan which they are repaying at present. 6. Skill 36/147 beneficiaries were met. The issues observed were: 1. None of the youths met had received any soft skill training youths were sent to a Government run education bridge course training in July This course is free of cost. But as per resolution register and passbook, a cheque payment towards Edu Bridge Free Course has been made of Rs youths did not get a placement after their training, but 20% placement-linked fund was found to have been released. All 15 youths have gone to Anand Driving Institute. Similar problems in Thorapadi and Oorgoundanur villages with the same institute were found. 7. PAR 80:20 70:30 Recovery Rate Closing Balance 15% (registers) 79 : 21 (I,e target 328 members and non target 79 members) 97.6% Livelihood, 2.4% consumption 88% Rs /- 105 S o c i a l A u d i t R e p o r t : P a r t I I

106 8. Functioning of CBOs (VPRC, PLF, SAC) Overall committees are functioning well, meeting regularly, as seen from registers and interactions. But the CDF and bookkeeper are one and the same person. 9. Tally VPRC,PLF and SHG updated till July CLG 2 CLGs have been formed, one CLG for diary (Sri lakshmi Narayani) has received fund of Rs in It is till date running well. Another one CLG for oil (Selvanayagi) has received fund of Rs in They have gone for training and exposure visit. People told us that this CLG was not functioning because ground nut production was down. 11. Total Misappropriation Amount Rs /- (4 youths - skill training cheque paid for a free bridge course) 12. OorKoottam Over 200 people attended the Oor Koottam on 3 rd September 2016, which lasted for 3 hours. The DPM, APM, cluster team were present at the Oor Koottam. The Talaivi and ward members did not attend. People did not participate much at the Oor Koottam Thorapadi village, Pudupalayam block, Thiruvannamalai Social audit from 29/8/16 to 4/9/16 Area Findings 1. Village Overview Thorapadi has 4 habitations, with a population of 764, of which about 70% is SC. The main habitation has mixed communities, with the surrounding 3 habitations fully SC. 2. PIP: BPL: PIP list identifies 132 households as target, whereas BPL list identifies 540 families as poor. Grama Sabha approval copies were not available for 3. Individual assistance verification. There were no changes made to the PIP list. 42/57 beneficiaries were met. In the case of 17 beneficiaries, record and field visit loan repayment was found to be different. The actually repaid was more by Rs For 3 beneficiaries that the team met, record and field visit loan disbursement was found to be different. The actually repaid was more by Rs When cashbook was compared with bank passbook, a difference of Rs. 1,25,000 came to light. When we asked the staff present about this, it was found that the had been in the form of cash in hand for over 2 years. They returned a portion of this the very next day, depositing Rs (on 3 rd September 2016 as the audit went on) into VPRC account. Rs. 70,000 still remains to be repaid by the staff. 4. SHGs 5/25 SHGs were defunct. None of SHGs have a bank loan in the current financial year. SHGs PLF loan repayment is not happening regularly. 5. SHG Training 9/25 SHGs have completed IV module training. An of Rs has been spent on these trainings, with only bills shown for this. But attendance, reports, documents were not maintained. There were 9 SHG name differences between the SHG Consolidation Register and 4 th module training participant SHG register. 106 S o c i a l A u d i t R e p o r t : P a r t I I

107 6. PLF 73/119 beneficiaries were met by the team. In the case of 4 beneficiaries, record and field visit loan repayment was found to be different. The actually repaid by people was more by Rs. 15,500. When cash book was being analyzed, it was noticed that cash in hand was again Rs. 45,587 (for more than 2 years) with the bookkeeper. When the team asked them about this, a cash deposit of Rs.40,000 dated was made and receipt shown to our team. Rs balance still remains to be repaid. 7. Skill 50/99 beneficiaries were met. None of the youths met had received any soft skill training. 12 youths did not get a placement after their training, but 20% placementlinked fund was found to have been released. All 12 youths have gone to Anand Driving Institute. Similar problems in Perumpakkam and Oorgoundanur villages with the same institute were found. Overall the target ratio was found to be 75 target :25 non-target beneficiaries. Gender ratio in skill was highly skewed, at 2.8 males : 1 female 8. PAR 80:20 70:30 Recovery Rate Closing Balance 9. Functioning of CBOs (VPRC, PLF, SAC) 49.8% (as per registers) 84: 16 (i.e. target 100 members and non target 19 members) 87.4% Livelihood, 12.6% consumption 50% Rs /- All 3 - VPRC, PLF, SAC committees could not be met for a single day over the 5 days of social audit. But on record, resolutions were maintained and meeting member quorum is 100% according to records. When checked, the office-bearers did not know about expenditures made. A few observations about the office-bearers: CLG treasurer is the same as PLF secretary. SAC member is the same as CLG Secretary. This affects independence of these positions. CST dropped out of her job in April 2016, but it was found that CST honorarium was paid until June A new CST has been appointed 10 days ago. Moreover, the latest CDF and CST appointments did not have Gram Sabha approvals. A new VPRC bookkeeper has been appointed a few months ago, but all of her responsibilities (including signatures) are still being handled by the previous bookkeeper. 10. Tally VPRC and PLF updated till August 2016, SHG update is pending 11. CLG Vinayagar Deevanam CLG (cattle fodder) has received a fund of Rs Expenditure worth Rs was made on buying rice but no bills. Against the expenditure, the team saw only 7 sackfulls of rice. CLG members when asked did not know about the CLG at all. 12. Total Misappropriation Amount Rs (SHG IV th module training-29000, Individual assistance loan difference 8800, individual assistance repayment difference 20650, PLF repayment difference 15500, VPRC cash in hand , PLF cash in hand 45487) 107 S o c i a l A u d i t R e p o r t : P a r t I I

108 13. Impact during social audit days A day after the social audit began, the bookkeeper made a cash in hand deposit into the bank of Rs /- (Rs. 40,000 from PLF + Rs. 55,000 from VPRC). Rs. 70,000 still remains to be recovered from VPRC differences and Rs from PLF difference. (Bank challan copies are attached below) All registers got updated as the audit progressed over 5 days. 14. OorKoottam 217 people attended the Oor Koottam on 3 rd September 2016, which lasted for 3 hours. The APM, cluster team, Panchayat President were present at the Oor Koottam. All the issues identified were discussed at the Oor Koottam. APM assured recovery of the remaining misappropriated (hand cash Rs.75487) 108 S o c i a l A u d i t R e p o r t : P a r t I I

109 109 S o c i a l A u d i t R e p o r t : P a r t I I