The Karnataka Government has failed to ensure proper social audit of expenditure incurred by Panchayats since 2007. A report of the Comptroller and Auditor General of India tabled in the legislative Council on Friday makes this observation with reference to the implementation of MGNREGS in the state. The report, covering last year ending March 2011, observes that review of the Employment Guarantee Scheme has revealed a number of lapses. The non-maintenance of mandatory control registers and other control omissions led to misappropriation of Scheme funds of Rs 61.63 crore in the districts of Tumkur and Koppal. There was also delay in payment of wages and failure to provide 100 days of employment. The report observes that steps were not taken to ensure participatory planning in Gram Sabha meetings during 2006-11. The control of Zilla Panchayats over expenditure was ineffective due to direct transfer of Government of India funds to the implementing agencies.