Audit Reports

Rajasthan

Overview

This Report includes four Chapters. Chapters I and III present an overview of the accounts and finances of the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) respectively. Chapter II comprises of one performance review and five transaction audit paragraphs and Chapter IV comprises eight transaction audit paragraphs arising out of the audit of financial transactions of the PRIs and ULBs respectively.A synopsis of important findings contained in this Report is presented in this overview.Government had accepted (August 2003) the formats of annual accounts prescribed by the Comptroller and Auditor General of India, PRIs were maintaining the accounts in conventional formats. Database on the finances of PRIs was not yet developed.

There was a difference of Rs.37.50 lakh between cash books and PD/Bank pass books in one Zila Parishad and three Panchayat Samitis as on 31 March 2007 'Own Revenue' of the PRIs constituted only 4.43 per cent of their total receipts during 2007-08. Thus, they were largely dependent on Government grants.Budgetary and internal control mechanism in PRIs was weak. Instances of excess expenditure (Rs.11.89 crore), non-refund of unspent balances of closed schemes (Rs.8.93 crore), unadjusted advances (Rs.59.64 lakh) and outstanding utilisation certificates (Rs.842.33624.99 crore) were noticed.The 73rd Constitutional Amendment Act passed by parliament in 1992 had defined the process of decentralisation of governance in India. In 1994 Government of Rajasthan passed Rajasthan Panchayati Raj Act to empower the establishment of local bodies viz. Zila Parishads, Panchayat Samitis and Gram Panchayats upto village level.

In compliance of legislations, the State Government had issued various orders mainly in June 2003 for devolution of functions, funds and functionaries relating to 29 subjects enumerated in the Eleventh Schedule of the Constitution to Panchayati Raj Institutions from 16 departments of the State Government.The above devolution order neither specified the modalities of devolution nor the time schedule for implementing the process of devolution by the State Government.Activities related to Animal Husbandry, Dairy and Poultry, Public Health Engineering Department, Public Works Department were devolved and withdrawn on account of one or other reasons. Funds were also not devolved as per recommendations of Third State Finance Commissions.Twenty nine subjects of 16 departments ordered for devolution in June 2003 were not actually devolved in true letter and spirit, which ultimately forced the Government to issue fresh orders in October 2010 for devolution of functions,funds, and functionaries in respect of all district level functions being executed in rural areas of five departments i.e. Primary Education, Women and Child Development, Medical and Health, Social Welfare and Justice and Agriculture Department in first phase.

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• Preface
• Overview
• Chapter 1 - An Overview of Accounts and Finances of Panchayati Raj Institutions
• Chapter 2 - Performance Review And Audit of Transactions Panchayati Raj Institutions
• Chapter 3 - An Overview of Accounts And Finance of Urban Local Bodies
• Chapter 4 - Audit of Transactions - Urban Local Bodies
• List of Appendices
• Appendices