Audit Reports
West Bengal
Report of 2004 - Financial Audit on Panchayati Raj Institutions, Government of West Bengal
Overview
This report contains five chapters, excluding the last chapter on conclusions and recommendations. The opening chapter contains an overview of the Panchayat Raj Institutions in the State. Chapter 2 brings into focus the deficiency in accounting procedures. Chapter 3 consists of audit observations on implementation of schemes,while Chapter 4 concentrates on audit findings in execution of works and procurement of supplies. Other issues are grouped together in Chaper 5.The amount actually released for implementation of schemes was much higher than the amount provided in the budget by the State Government. In the absence of any information on expenditure against the funds received, it was not clear whether the release of such funds were based on the absorption capacity of the implementing agencies.
The Panchayat and Rural Development Department could not furnish any information on total funds received as well as expenditure incurred by the PRIs during the period from 2001-02 to 2003-04 from various sources.20 Gram Panchayats (GPs) spent Rs. 2.77 crore during 2003-04 without preparing their annual accounts, while 82 GPs did not prepare their budget and spent Rs. 15.09 crore during the year unauthorisedly without any budget allocation.Similarly, 15 Panchayat Samitis unauthorisedly spent Rs. 41.89 crore and Rs. 47.61 crore during 2002-03 and 2003-04 respectively without preparing their budget and consequently without any budget allocation.Difference of Rs. 63.32 lakh in 96 GPs, Rs. 6.53 crore in 43 PSs and Rs. 43.58 crore in five ZPs (at the end of 2003-04) between Cash Book and Pass Book remained unreconciled. This happened due to non-conducting of monthly reconciliation of balances in Cash Book and Pass Book by these PRIs. The lapse was fraught with the risk of misappropriation of funds going undetected.
In 2956 GPs, unrealised amount (Rs. 38.11 crore) constituted 74 per cent of the total demand for taxes, duties, rates, fees and tolls as at the end of the year 2003-04. In 1348 Gram Panchayats, while Rs. 25.62 crore was spent during 2003-04 towards assistance under Indira Awas Yojana (IAY) for construction/upgradation of huts,none of the beneficiaries was from the BPL list.In 611 Gram Panchayats, 14,668 sanitary latrines and in 866 Gram Panchayats, 22,006 smokeless chullahs were not constructed although the full amount of assistance was given to the beneficiaries during 2003-2004. Consequently,Rs. 88 lakh for sanitary latrine and Rs. 22 lakh for smokeless chullah to be deducted from the assistance given to the beneficiaries as prescribed under the programme were also not recovered.In 19 Panchayat Samitis, Rs. 2.58 crore was spent towards execution of works under Sampoorna Gramin Rozgar Yojana (SGRY) by engaging contractors during 2002-03 and 2003-04. With these funds, the Samitis could have ensured employment generation of 2,49,677 mandays for the rural people under SGRY.