Audit Reports

Tamil Nadu

Overview

This Audit Report, dealing with the results of audit of accounts and transactions of Local Bodies, is prepared in two parts and consists of five chapters. Part I deals with Urban Local Bodies and part II on Panchayat Raj Institutions. A synopsis of important audit findings is presented in this overview.The urban population of the State as per the 2001 census was 2.75 crore constituting 44 per cent of the State population. The decadal growth rate of the urban population was 43 per cent.

The Director of Local Fund Audit is the statutory auditor for all the Urban Local Bodies. As of May 2010, audit of Urban Local Bodies was mostly in arrears for a period ranging from one to three years. As of March 2009, the number of paragraphs of Inspection Reports issued during 2005-08 by the Director of Local Fund Audit relating to Urban Local Bodies pending settlement aggregated to 43,308.During 2008-09, own revenue collection of the Urban Local Bodies was Rs 1,742 crore of which tax-revenue was Rs 1,046 crore. While the own revenue of Chennai City Municipal Corporation and Other Municipal Corporations increased during 2008-09, the same in respect of Municipalities decreased during 2008-09.During 2007-08, Twelfth Finance Commission grants were released to Urban Local Bodies with delays ranging between nine and 334 days and the State Government did not pay interest for the delayed release of grants.

Performance Audit of Anaithu Peruratchi Anna Marumalarchi Thittam, a State Government sponsored scheme in 35 selected Town Panchayats revealed the following.There was delay of more than three months in release of Rs 10.68 crore to Town Panchayats by five Zonal Assistant Directors of Town Panchayats.For want of clear instructions in the guidelines, eight Town Panchayats refunded unspent balance of Rs 12.04 lakh to the Director of Town Panchayats.Failure of five Zonal Assistant Directors of Town Panchayats to follow the instructions of Director of Town Panchayats in procurement of compact fluorescent lamps resulted in avoidable expenditure of Rs 13.42 lakh.Twenty community halls constructed under the scheme at a cost of Rs 2.72 crore were not put to use either due to lack of basic amenities or due to their construction in remote areas.Defects such as poor quality of work and non-shifting of electricity poles to the edge of the road were noticed in cement concrete roads formed in four Town Panchayats.33 out of 37 shops constructed at a cost of Rs 42.08 lakh in five Town Panchayats were not let out either due to lack of demand or nonavailability of power connection.There was a shortfall of 74 per cent in convening the meetings of District Level Monitoring Committee in four test-checked districts.

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• Preface
• Overview
• Chapter 1 - AN OVERVIEW OF THE ACCOUNTS AND FINANCES OF URBAN LOCAL BODIES
• Chapter 2 - PERFORMANCE REVIEWS (URBAN LOCAL BODIES)
• Chapter 3 - AUDIT OF TRANSACTIONS (URBAN LOCAL BODIES)
• Chapter 4 - AN OVERVIEW OF THE ACCOUNTS AND FINANCES OF PANCHAYAT RAJ INSTITUTIONS
• Chapter 5 - AUDIT OF TRANSACTIONS (PANCHAYAT RAJ INSTITUTIONS)
• Appendices