Audit Reports

West Bengal

Overview

This Report contains eight chapters, containing observations of audit on accounting procedures and financial management, revenue receipts, establishment,material management, implementation of schemes, as well as other important issues and conclusions and recommendations of Audit. A synopsis of the Audit findings is presented in this overview. As against the recommendation of the Second State Finance Commission (February 2000) for the devolution of 3.2 per cent share of State taxes to the ULBs,the State Government released 0.69 and 0.52 per cent of State taxes in 2005-06 and 2006-07 respectively. During 2005-07, the releases fell short by of Rs.574.32 crore of the recommended entitlement. Excess expenditure of Rs 9.49 crore over the budget provision incurred by 11 ULBs during 2003-04 to 2005-06 has not been regularized.

Eight ULBs neither made any provision for capital expenditure during 2004-07 nor expended any amount for the same. There was an overall shortfall in actual capital expenditure by 51 per cent which adversely impacts the extension of social and economic infrastructure network and creation of assets by the municipalities.Due to non-preparation of annual accounts by seven ULBs, receipt of Rs 48.18 crore and expenditure of Rs 44.10 crore incurred during 2004-07 by these local bodies could not be vouchsafed.Eighteen ULBs did not reconcile their books of account with the actual bank balance.None of the ULBs audited, except Kolkata Municipal Corporation,submitted Balance Sheet upto the year ending March 2006.Eight out of 68 ULBs in 2005-06 and one out of 24 ULBs in 2006-07 could utilise 80 per cent and above of the available funds respectively.Ten ULBs diverted Rs 1.31 crore sanctioned for specific purposes during the years 2002-03 to 2006-07 depriving the beneficiaries of the intended benefits.Nineteen ULBs did not repay loan of Rs 33.27 crore and accumulated huge liability of Rs 58.23 crore. The increasing liabilities adversely impact the financial stability of the ULBs and in turn reduce their capacity to raise market loans for developmental works.

All primary schools under the municipalities stood transferred to the District Primary School Council (DPSC) together with their lands, buildings and other properties. All teachers and other staff shall be deemed to be employed by DPSC with effect from 15 April 1992.Despite the above arrangement for taking over liabilities of primary schools, 12 ULBs incurred a total expenditure of Rs 4.37 crore towards salary of employees and maintenance of primary schools during the period 1992-2007.Delay by 15 ULBs ranging from one month to 22 years in crediting money in Provident Fund resulted in loss of interest on Provident Fund account to the tune of Rs 1.57 crore which accrued during the intervening period, thereby creating an additional burden on them.No arrangement has been made in 54 ULBs for internal audit of their accounts.

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