Audit Reports

Jharkhand

Overview

The Report contains six chapters containing observations of audit on accounts and financial management, revenue receipts, establishment, transaction audit and implementation of schemes.A synopsis of the audit findings contained in the Report is presented in this overview.The State Government dissolved all ULBs during the period 1986 to 1995 and since then fresh elections were held only in March 2008 in 28 out of the 39 ULBs. Devolution of functions, funds and functionaries to ULBs as envisaged in the 74th 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 15.38 per cent to 72.23 per cent.

2605 audit paras involving Rs 211.63 crore were outstanding as of March 2010 due to inadequate/incomplete compliances from the Executives of auditee Units.Concerned Deputy Commissioners were not taking action on the Surcharge Notices issued by the Examiner of Local Accounts, Jharkhand. As a result, 126 notices involving Rs 1.43 crore issued during 2000-2010 were pending. As a result of audit of 14 ULBs, a sum of Rs 7.68 crore was suggested for recovery, of which Rs 3.98 lakh was recovered during audit, whereas Rs 11.00 crore was held under objection. Replies/Action Taken Notes on the paras appeared in the previous Reports of the Examiner of Local Accounts, Jharkhand were not furnished by the State Government.In contravention to the provisions of the Act, 12 ULBs irregularly maintained 85 additional Bank accounts and deposited Rs 20.14 crore in 77 accounts.Six out of 14 test-checked ULBs had not prepared Budget Estimates during 2007-09. Remaining ULBs prepared unrealistic budgets and utilized only 2 to 42 per cent of the Budget provision.

Seven ULBs incurred unauthorized expenditure of Rs 63.09 crore during 2007-09 without preparing Budget Estimates.The expenditure of Rs 130.97 crore incurred by 14 ULBs could not be scrutinized due to non-preparation of Annual Accounts for the period 2007-09.Only 48.86 per cent of specific Grants & Loans was utilized during 2007-09.Six ULBs did not refund Rs 69.95 lakh of old unspent balance of Government specific Grant & Loans to the sanctioning authority.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 eight ULBs, a difference of Rs 8.37 crore between balances as per Cash book and Bank /Treasury Account was not reconciled.Ten ULBs did not produce vouchers worth Rs 1.93 crore for the period 2007-09 before Audit.Advances aggregating Rs 6.89 crore were outstanding against employees,suppliers, contractors and engineers of 13 ULBs.

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• Preface
• Overview
• Chapter 1 - Introduction
• Chapter 2 - Accounts and Financial Management
• Chapter 3 - Revenue Receipts
• Chapter 4 - Establishment
• Chapter 5 - Transaction Audit
• Chapter 6 - Implementation of Schemes
• Glossary
• Appendices