Audit Reports
Gujarat
Report of 2008 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Gujarat
Overview
This Audit Report includes six chapters containing one review, two schematic long paras and observations of Audit on accounting procedure and financial management, revenue receipts, establishment, material management, implementation of schemes, as well as observations on the structure and finances of Panchayati Raj Institutions and Urban Local Bodies. Copies of the paragraphs were forwarded to the Government for their replies.The State Government has not devolved all the functions envisaged in the 11th Schedule of the Constitution of India. The formats for database on the finances of PRIs have not been implemented though adopted by the State Government. Neither the prescribed periodicity for constitution of SFCs. as per Constitutional provisions was maintained nor action taken by the State Government on recommendations of the belatedly constituted SFCs. Audit of 28.664 PRI units by Director Local Fund Audit was in arrears from 2005-06.
Twenty Town Panchayats incurred excess expenditure of RS.125.60 crore against allotted grants during 2005-07 in violation of the departmental instructions. Nineteen Town Panchayats did not surrendered unspent grants of RS.41.23 crore to the Government during the period 2005-07.In 36 Village Panchayats of Districts Rajkot and Bharuch, the budget preparation was unrealistic as against the estimated receipts of RS.3.12 crore and RS.3.90 crore for the years 2005-06 and 2006-07 respectively actual receipts were only RS.1,25 crore and RS.1.82 crore. Similarly against Estimated expenditure of RS.2.87 crore and RS.4.02 crore for the years 2005-06 and 2006-07 respectively, in above TPs, the actual expenditure was only RS.1.35 crore and RS.1.63 crore.Basic records and Registers of Advance, Rents, Demand and Collection, Loans, Works, Deposits, and Assets were either not maintained properly or were not at all maintained at PRIs levels, indicating serious lacuna on the part of controlling officers.
Internal control is an independent objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organization to accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control and governance The Gujarat Panchayats Act (Act). 1993 and rules framed there under provide directives for internal controls for the Panchayati Raj Institutions (PRIs).The internal controls in Sabarkantha District Panchayat were found to be weak, as rules regarding various control measures were not complied with or were inadequately complied. The system could not ensure economy and effectiveness in operations, efficiency in fund management and led to weak monitoring.