Audit Reports
Andhra Pradesh
Report of 2009 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Andhra Pradesh
Overview
This Audit Report includes two performance reviews and ten audit paragraphs on Panchayat Raj Institutions (PRIs) and Urban Local Bodies (ULBs). It also contains observations on the accounts and finances of Local Bodies 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.
The State Government is yet to devise a system for obtaining a consolidated picture about the finances of the PRIs, despite the Panchayat Raj system having been in place for over 17 years. Planning for developmental activities is abysmal and there is no correlation between the requirements of the local bodies and the funds devolved to them. Further, utilisation of funds is poor and in the absence of Utilisation Certificates(UC) in many cases from the PRIs, it is not possible to vouch for the expenditure reported to have been incurred by the Local Bodies in the State.
There were significant delays in compilation of accounts by ULBs, with consequent delay in their audit by the Director, State Audit. Since the Andhra Pradesh Municipal Accounts Manual was yet to be adopted in many ULBs, the latter continue to maintain their accounts on cash basis. Financial Reporting in Local Bodies was inadequate as evidenced by non-preparation of budget, non-maintenance of crucial registers, non-remittance of unspent balances of closed schemes, non-furnishing of UCs and advances pending adjustment, non-finalisation of accounts, parking of scheme funds in fixed deposits, non-conducting of physical verification of stores and stock and non-reconciliation of departmental figures with treasury.