CAG flags lower administrative charges collection by EPFO

The Comptroller and Auditor General of India (CAG) has detected under-realisation of administrative charges worth Rs 6.17 crore from establishments at eight regional offices of retirement fund body Employees’ Provident Fund Organisation (EPFO), according to a report.

The under-realisation was detected after test checking of records at the eight EPFO regional offices during January 2015 to March 2017 period.

“Failure of eight regional offices of Employees’ Provident Fund Organisation (EPFO) to verify dues remitted by the establishments with reference to the revised rate of administrative charges on Employees’ Deposit Link Insurance (EDLI) and Employees’ Provident Fund resulted in short realisation of Rs 6.17 crore during the period from January 2015 to March 2017,” stated a Comptroller and Auditor General (CAG) report tabled in Parliament on Tuesday.

According to the report, the EPFO had revised rate of administrative charges for EDLI and EPF schemes from January 1, 2015. These charges are deposited by the employers in the designated bank account of the EPFO.

The CAG said test check of records of 8 regional offices - Kolkata, Barrackpore, Durgapur, Howrah, Jalpaiguri, Jangipur, Park Street and Siliguri - revealed that the registered establishments were not paying administrative charges at the revised rates which resulted in short realisation of administrative charges of Rs 6.17 crore during January 2015 to March 2017.

It said seven regional offices excluding Jangipur stated that the short recovery could not be tracked due to lack of an in-built “Default Tracking & Management Mechanism’ in the application software.