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Financial Performance
Kerala

Report of 2008 - Financial and Performance Audit of Local Self Government Institutions of Government of Kerala

Date on which Report Tabled:
Date of sending the report to Government
Government Type
Local Bodies
Local Body Types
Local Bodies
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Overview

This Report comprises four chapters of which chapters I and II contain an overview of the structure and finances of Local Self Government Institutions (LSGIs) and comments arising from supplementary audit under the scheme of providing Technical Guidance and Supervision (TGS) arrangement. Chapters III and IV contain three reviews and twelve paragraphs. Copies of the draft reviews and paragraphs were forwarded to the Government and the replies wherever received have been duly incorporated.

Against Rs.1848.22 crore available for utilisation during 2008-09 under Development Expenditure Fund the actual utilisation by the LSGIs was only Rs.1476.66 crore. The underutilisation of funds provided in the State Budget for implementation of State schemes transferred to LSGIs and State share of Centrally Sponsored Scheme led to lapse of Rs.60.21 crore. Financial achievement in respect of SJSRY, IDSMT/UIDSSMT (except 2005-06) and JNNURM, was below 50 per cent in all the years for the period 2005-06 to 2008-09.The preparation and submission of annual accounts by LSGIs for audit were in arrears, though it is mandatory for the LSGIs to submit their accounts to Director of Local Fund Audit (DLFA) by 31 July every year. The audit of accounts of LSGIs by the DLFA was also in arrears. There were lapses on the part of PRIs in maintaining the prescribed registers in the proper form and preparation of monthly accounts and Annual Financial Statements.Supplementary audit of 62 LSGIs conducted during 2008-09 revealed nonmaintenance or improper maintenance of books of accounts and other records by LSGIs and lapses in the preparation of budget and Annual Financial Statements.

The audit methodology adopted by DLFA also needs to be streamlined and strengthened by adopting professional auditing techniques. The staff of Local Fund Audit Department requires to be trained in IT audit,financial audit and double entry accounting.Indira Awaas yojana (IAY) implemented by Government of India as an independent scheme from January 1996 was aimed at rendering financialassistance for construction / upgradation of dwelling units to the poor families of the Scheduled Castes, Scheduled Tribes, free bonded labourers, physically and mentally challenged persons and nonSC/ST persons living Below Poverty Line in the rural areas. The scheme was funded on cost sharing basis of 75:25 between the Central and State Governments. Some of the important points noticed during the review of the implementation of IAY are given below.Central assistance of Rs.1.03 crore could not be availed due to underutilisation of funds. State's share was short released by Rs.34.22 lakh. Supplementary assistance provided by 12 Block Panchayats was short of the amount due to the beneficiaries by Rs.9.39 crore during 2004-05 to 2008-09.Five Block Panchayats falsely showed higher financial achievement by drawing cheques for Rs.51.44 lakh in advance of requirement. Nine Block Panchayats had retained 521 cheques for Rs.69.46 lakh drawn between March 2007 and April 2009 instead of depositing the amount in the savings bank account for IAY.Thirteen Block Panchayats had made irregular deductions amounting to Rs.13.27 lakh from the payments made to 4285 beneficiaries.

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