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Financial
Rajasthan

Report of 2004 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Rajasthan

Date on which Report Tabled:
Date of sending the report to Government
Government Type
Local Bodies
Local Body Types
Panchayat Raj Institutions,Urban Local Bodies
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Sector -

Overview

This Report includes four Chapters. Chapters I and III present an overview of the accounts and finances of the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) respectively. Chapters II and IV comprise seventeen and eighteen audit paragraphs respectively arising out of the audit of financial transactions of the PRIs and ULBs.A synopsis of important findings contained in this Report is presented in this overview.'Own Revenue' of PRIs constituted only two per cent of their total receipts during 2002-03 and thus they were largely dependent on Government funds.There was short release of grants of Rs 4.07 crore and delays in devolution of funds to PRIs by State Government during 2001-04.

Although the State Government had accepted (August 2003) the formats of annual accounts prescribed by the Comptroller and Auditor General of India,PRIs were maintaining the accounts in conventional formats. Database on the finances of PRIs had not been created as of February 2006.Irregularities/ deviations in accounting procedures were observed. Difference of Rs 1.23 crore between cash books and Personal Deposit/ bank accounts was not reconciled. Interest of Rs 2.12 crore earned on scheme funds was treated as 'Own/Miscellaneous Income' instead of crediting to the concerned scheme fund.Budgetary and internal control mechanisms in PRIs were weak. Excess expenditure (Rs 13.31 crore) over allotted funds, unauthorised diversion (Rs 36.34 lakh), irregular investment (Rs 1.77 crore), non-refund (Rs 31.40 crore)of unspent balances of closed schemes, unadjusted advances (Rs 88.91 lakh)and outstanding utilisation certificates of Rs 739.67 crore were noticed.Audit fees of Rs 4.67 crore for the period 1998-2004 was yet to be paid to Director, Local Fund Audit (DLFA) by PRIs.Embezzlement cases (8285) involving Rs 14.94 crore were pending settlement.

Due to non-selection of best performing PRIs, 'Incentive grant' of Rs 7.41 crore released (1995-2000) as per the recommendations of the First State Finance Commission remained unutilized.The State Government irregularly diverted (March 2003) Rs 1.63 crore from centrally sponsored scheme 'Integrated Child Development Services' as its share to another central scheme.Improper implementation of the programme for development of nonconventional energy sources led to unproductive expenditure of Rs 1.77 crore on installation of biogas plants.Failure of Zila Parishad (ZP), Chittorgarh and two Panchayat Samitis(PSs) to ensure proper utilisation of assets created under various schemes at a cost of Rs 22.54 lakh led to unfruitful expenditure.Non-completion and poor maintenance of 23 community halls by PRIs in Jaisalmer district resulted in blockage of Rs 18.34 lakh incurred on their construction.Failure to provide proper infrastructural facilities in ZP, Ajmer and commencement of work at a site without ensuring clear title of the land in PS,Kolayat resulted in unfruitful expenditure of Rs 37.77 lakh on the projects/works lying incomplete for 2 to 5 years.Failure to redeploy 58 surplus employees of the Octroi establishment in three Gram Panchayats led to unfruitful expenditure of Rs 1.49 crore on their pay and allowances for the period August 1998 to December 2004.

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