Audit Reports
Himachal Pradesh
Report of 2007 - Financial Audit on Urban Local Bodies, Government of Himachal Pradesh
Overview
This report contains the results of audit of 17 out of 49 Urban Local Bodies (ULBs) under the scheme of Technical Guidance and Supervision (TGS). The Report contains three Chapters. Chapter I and II containing introduction on the functioning of ULBs and audit comments on accounting procedure, irregularities in execution of works and outstanding revenue receipts etc.Chapter III contains a performance review on IDSMT and UIDSSMT scheme .A synopsis of the findings contained in the report is presented in the overview. During 2005-08,the budget estimates were not realistic as expenditure was ranging between 73 and 98 percent State Government has not made provision in Acts/Rules for certification of accounts of ULBs by any agency.Utilisation certificates (UCs) amounting to Rs. 50.59 lakh were awaited from three ULBs.The State Government had not devolved two functions i.e. "Fire services execute the devolved functions and Regulation of land use and construction of building".
The State Government has not ensured required manpower in ULBs to execute the devolved functions.Faulty planning on the part of NP led to nonutilisation of store tanks rendering the entire expenditure of Rs. 27.46 lakh unfruitful.Ineffective monitoring of developmental works caused abandonment of constructions of commercial complex by the contractor and also resulted in time and cost overrun.Failure of Urban Local Bodies to utilize the funds under RGURF/NSDP for construction of parking lots and schemes for welfare of slum dwellers resulted in blocking of funds of Rs. 60.00 lakh and Rs. 14.15 lakh respectively.
An expenditure of Rs. 3.12 crore was incurred in excess of norms due to failure of the ULBs to collect the outstanding tax of Rs. 4.92 crore which was likely to be utilized on development works thereby reducing the percentage of establishment expenditure.Municipal Corporation, Shimla failed to construct Ambulance roads depriving the public from providing ambulance facility besides resulting in blocking of funds of Rs. 15.50 lakh.Failure to start the execution of developmental works of Rs. 3.08 crore resulted in blocking of funds besides depriving the public from intended benefits.