Audit Reports
Jharkhand
Report of 2010 - Report of the Examiner of Local Accounts, Jharkhand on Urban Local Bodies, for the year ended 31 March 2009 - Government of Jharkhand
Overview
The Report contains eight chapters containing observation of audit on accounts and financial management, revenue receipts, establishment, transaction audit, implementation of schemes, other important observations and conclusions.A synopsis of the audit findings contained in the Report is presented in this overview.State Government dissolved all ULBs during the period 1986 to 1995 and since then elections had not taken place till March 2008. In 28 out of the 39 ULBs, elections were held in March 2008. Due to nonholding of elections, the ULBs did not receive Rs 90.85 crore and Rs 1707.77 crore upto 2008-09 under the 11 th & 12 th Finance Commissions and the Jawaharlal Nehru National Urban Renewal Mission respectively. Devolution of functions, funds and functionaries to ULBs as envisaged in the 74 th Constitutional Amendment Act,1992 had not taken place as yet.
ULBs were financially dependent on Grants and Loans from the Government as their own resources were meager. The available manpower in ULBs was not sufficient. Shortage of staff ranged from 11.64 per cent to 77.77 per cent.In contravention to the provisions of the Act, 17 ULBs irregularly maintained 106 additional Bank accounts and deposited Rs17.47 crore in 93 accounts.Eleven out of 17 testchecked ULBs had not prepared Budget Estimates during 2002-08.Remaining six ULBs prepared unrealistic budgets and utilized only 3.13 per cent to 31.13 per cent of the Budget provision.Eleven ULBs incurred unauthorized expenditure of Rs 41.03 crore during 2002-08 without preparing Budget Estimates.
The expenditure of Rs 97.51 crore incurred by 17 ULBs could not be scrutinized due to nonpreparation of Annual Accounts for the period 2002-09.Only 39.82 per cent of specific Grants & Loans was utilized during 2002-09.Internal control was very weak. The prescribed supervisory checks were not carried out. Basic records viz. Advance Ledger, Loan Register, Loan Appropriation Register, Grant Register, Demand and Collection Register, Work Register, Unpaid Bill Register, Annual Report, Deposit Ledger, Register of Lands, Register of Revenue Resources, Asset Register etc were not maintained by most of the ULBs.In 10 ULBs, a difference of Rs. 1.49 crore between balances as per Cash book and Bank /Treasury Account was not reconciled.Seven ULBs did not produce vouchers worth Rs 3.03 crore for the period 2002-09 before Audit.Advances aggregating Rs 17.93 crore were outstanding against employees,suppliers, contractors and engineers of 14 ULBs.