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, performance audit as well as other important issues. A synopsis of the Audit findings is presented in this overview.Excess expenditure of Rs 13.53 crore over the budget provision incurred by 12 ULBs during 2005-06 to 2007-08 has not been regularized.Out of 40 ULBs in the Kolkata Metropolitan area, only two ULBs had submitted their accounts for 2006-07. All 85 ULBs in non-metropolitan area had not submitted even the opening balance sheets as on 1 April 2007.Six ULBs did not reconcile their cash book balance with the bank balance and four ULBs had not prepared the Receipt and Payment Accounts for 2004-07.Six out of 48 ULBs diverted Rs.79.33 lakh sanctioned for specific purposes during the years 2004-05 to 2006-07 depriving the beneficiaries of the intended benefits.Fifteen ULBs accumulated a liability of about Rs.35.98 crore due to nonpayment of loan in time. 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 were deemed to be employed by DPSC with effect from 15 April 1992. Despite this arrangement for taking over liabilities of primary schools by DPSC, 14 ULBs incurred a total expenditure of Rs.5.59 crore towards salary of employees and maintenance of primary schools during the period 1992-08. Delay by 11 ULBs ranging from one month to 10 years in crediting money into Provident Fund resulted in loss of interest on Provident Fund account to the tune of Rs.4.82 crore, thereby creating an additional burden on them.

Inadmissible remission allowed in property tax resulted in loss of revenue of Rs.89.64 lakh in three ULBs.Non-imposition of surcharge on property tax for commercial holdings by 25 ULBs during 2001-08 resulted in loss of revenue of Rs 3.13 crore.Eight ULBs sustained a loss of Rs.4.16 crore due to non imposition or under imposition of water charge during the period from February 2003 to the date of audit.In violation of the norms fixed by the State Government regarding employment of staff, four ULBs irregularly spent Rs.3.71 crore during the years 2005-07 on engagement of excess casual staff.In absence of Special Fund, five ULBs failed to pay gratuity and pension to the retired employees and accrued a liability of Rs.5.86 crore as of March 2007.Coochbehar Municipality and Siliguri Municipal Corporation procured cement from local market instead of from the West Bengal Essential Commodity Supply Corporation (WBECSC) resulting in avoidable expenditure of Rs.23.39 lakh.

Developmental works left incomplete by six ULBs, even after the lapse of a considerable period, failed to generate expected revenue rendering the entire expenditure of Rs.3.55 crore unproductive.Sixteen ULBs had not utilised Rs.10.78 crore out of Rs.23.13 crore received under Employment Generation Scheme grants as of March 2008. Seven ULBs expended Rs.5.18 crore under the scheme without involving the Community Development Societies (CDS). The expenditure on wages by seven ULBs was far below 40 per cent of the total cost of work, implying non-generation of employment of approximately 34782 mandays. Englishbazar and Alipurduar municipalities failed to utilise earmarked grants of Rs.35.58 lakh during 2005-08 for generation of employment among SC / ST category.Eight ULBs had expended Rs.6.03 crore of the National Slum Development Programme fund during 2005-08 for development of the entire municipal area without targeting identified slum areas. Works valued at Rs.5.01 crore were executed through contractors by 15 ULBs during 2004-08 without involving CDS. Five ULBs diverted Rs.56.08 lakh during 2003-07. Fifteen ULBs did not take up any work against the earmarked fund of Rs.1 crore for construction of shelter during 2005-08.During 2003-07, 10 ULBs spent Rs.4.44 crore without setting up Neighbourhood Committee / Slum Development Committee.Burdwan Municipality paid old age pension to 426 beneficiaries under National Old Age Pension Scheme during March 2000 to March 2008 though the pensioners were below the age of 65 years at the time of sanction.

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• Preface
• Overview
• Chapter 1 - Introduction
• Chapter 2 - Accounting Procedures and Financial Managements
• Chapter 3 - Receipts
• Chapter 4 - Establishment
• Chapter 5 - Material Management and Execution of Works
• Chapter 6 - Implementation of Schemes
• Chapter 7 - Performance Audit
• Chapter 8 - Other Important Cases
• Appendices