The CAG report for 2014 showed how convenors heading Eamcet 2010-12, Ecet 2010-12, PG-Ecet 2010 and Icet 2012, diverted Rs 20.01 lakh to buy luxurious items. These exams are conducted by the state government for admissions into professional colleges in undivided Andhra Pradesh.
Revealing the fund misuse, the audit said that conveners of all the eight CETs conducted by APSCHE were unable to account for an expenditure of Rs 10.34 crore out of Rs 42.50 crore, which the council had sanctioned for conducting examinations from 2010 to 2013.
The audit observed that the conveners of CETs for the year 2010-11, "retained unspent balances amounting to Rs 28.91 lakh with them as of July 2014." The audit found that, "they refunded an amount of Rs 99.74 lakh to the council with a delay ranging from one to four years."
As per rules, the conveners are supposed to remit unused funds back to the council's account and not hold it in their own accounts. Also examination fee and re-evaluation fee collected by the conveners directly have to be remitted to the council's account and not used for the conduct of examinations. Violating rules, the conveners had used a total of Rs 16.89 lakh which was collected towards such fee for the conduct of examinations.
Pointing out all instances of money laundering, the report stated how, "convener, LAWCET 2010 deposited in April 2011, unspent fund of Rs 15.19 lakh in an unrelated dormant account (with Andhra Bank), instead of refunding it to the Council."
APSCHE has been the nodal agency overseeing conduct of CETs, including Eamcet (for admissions to engineering, medical and pharmacy colleges), Icet (for admissions to MBA and MCA colleges), Lawcet (law colleges), PGECET (lateral entry into PG engineering courses), among other exams. With APSCHE having rendered mute by the bifurcation of the state in June 2014, now the two state governments will have to enquire into financial irregularities observed by the CAG, experts said.
"The officers who had headed different examinations before the state's bifurcation are still holding key posts. The two governments should ask them to step down in light of the CAG findings," a senior official from higher education department said.
In its report, the audit further said that it "cannot vouch for the expenditure of Rs 10.34 crore stated to have been incurred by the conveners of CETs during the last three years." Putting the blame on APSCHE, the audit observed that it was "inadequate monitoring and control by the Andhra Pradesh State Council of Higher Education with regard to amounts available and spent by conveners of Common Entrance Tests (CETs) that led to several lacunae in financial management by the conveners and blocked availability of funds with the council."
The report further stated that "CET guidelines were not followed and delays in refunding unspent balances by conveners, parking of CET funds outside convener accounts, non-maintenance of key control registers like cash book, register of valuables, etc. were fraught with risks of mis-utilisation of examination funds."
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