Audit Reports
Gujarat
Report No. 5 of 2014 - Performance and Compliance Audit on Local Bodies, Government of Gujarat
Overview
This Report contains four chapters. The first and the third chapters contain a summary of finances and accounts of Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) respectively The second chapter contains two Performance Audits, one Compliance Audit paragraph and an individual paragraph based on the Audit of financial transactions of PRIs. The fourth chapter contains two Performance Audits based on the Audit of financial transactions of ULBs. A synopsis of the findings contained in the Per formance Audits and Compliance Audit are presented in this overview.
A review of finances of PRIs revealed that the spirit of the Constitutional Amendment for the PRIs to function as LSGIs was not fulfilled substantially as the State Government had not yet devolved 10 functions out of 29 functions to the PRIs as envisaged in the 11th Schedule of the Constitution. The District Planning Committees (DPCs) were constituted in 23 Districts only. Out of the 23 Districts in which DPCs were constituted, meetings of DPC were held in only six Districts.
Prescribed periodicity for constitution of State Finance Commission (SFC) was not maintained and though the 3rd SFC was constituted in February 2011, the committee has not submitted its report till date (March 2014). An amount of RS.1.92 crore of Twelfth Finance Commission (TwFC) and RS.158.38 crore of Thirteenth Finance Commission (ThFC) is lying unspent. Formats of Model Accounting System (MAS) prescribed by CAG were not adopted.Long pendency of audit paragraphs and non-settlement of audit observations indicated weak internal control system in PRIs.