The Department of Health, Medical and Family Welfare in Andhra Pradesh is responsible for providing preventive and curative healthcare services to the people of the state. Its main functions include formulation and execution of health related schemes, construction of healthcare centres at various levels/ locations, procurement and supply of essential medicines to Government medical institutions, monitoring the functioning of Government run hospitals, medical colleges etc. In this compliance audit carried out during the year 2010-11, CAG of India reviewed the functioning of (i) Blood Banks and (ii) Trauma Care Centres. This performance audit also brought out cases of (iii) fraudulent drawal of pay and allowances and advances in a few Primary Health Centres and (iv) Utilisation of Medical equipment in two Government Medical Colleges.