Andhra Pradesh

Report of 2006 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Andhra Pradesh

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


This Audit Report includes one performance review and nine audit paragraphs on Urban Local Bodies apart from one performance review, one long paragraph and seven audit paragraphs on Panchayat Raj Institutions. It also contains observations on the structure and finances of Panchayat Raj Institutions (PRIs) and Urban Local Bodies (ULBs) and the results of supplementary audit under the scheme of Technical Guidance and Supervision.Copies of the draft reviews and paragraphs were forwarded to the Government and the replies received have been duly incorporated in the Report.

There was no system in place to consolidate the finances of PRIs. The Budget and Accounts formats for PRIs prescribed by the Comptroller and Auditor General of India are yet to be implemented in Mandal Praja Parishads and Gram Panchayats. The creation of database on the finances of PRIs is yet to be completed. Andhra Pradesh Municipal Accounts Manual was adopted by the Government of AP and is being implemented in ULBs. Property Tax collection in ULBs showed a declining trend. The audit by the Director, State Audit was in huge arrears in GPs and ULBs.District Planning Committees were not yet constituted in all the districts.TFC grants were mis-utilised/diverted. SFC recommendations were partially implemented.

National Rural Employment Guarantee Scheme in Andhra Pradesh The Government of Andhra Pradesh launched the National Rural Employment Guarantee Scheme in February 2006 in 13 districts in the state, in accordance with the National Rural Employment Guarantee Act 2005, enacted by the Government of India. The main objective of the scheme is to provide 100 days of guaranteed wage employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. A review on the implementation of the scheme in the State revealed the following:

  • Employment Guarantee Scheme Funds to the extent of Rs 38.08 crore were diverted to other schemes.
  • Of the 23.39 lakh rural households who were provided employment during the period from February 2006 to March 2007 the targeted 100 days of employment in a financial year was achieved only in respect of 79,969 households (3 per cent) resulting in non achievement of the main objective of the scheme.

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