Audit Reports

Tamil Nadu

Overview

This Report contains five chapters. The first and the fourth chapter contain summary of finances and financial reporting of Urban Local Bodies and Panchayat Raj Institutions respectively. The second chapter contains a performance audit on implementation of Jawaharlal Nehru National Urban Renewal Mission projects in Chennai, Coimbatore and Madurai Corporations.The third chapter contains seven paragraphs based on the audit of financial transactions of the Urban Local Bodies. The fifth chapter contains a paragraph on implementation of Swamajayanthi Gram Swarozgar Yojana in two districts of Tamil Nadu. A synopsis of some of the findings contained in this Report is given below.Transfer of all functionaries to the Urban Local Bodies to carry out the devolved functions had not been made by the Government making the devolution incomplete. Due to non-preparation of the accounts in time by the Urban Local Bodies, correct picture of their financial position could not be ascertained by the councils in time. While three Municipalities did not submit their accounts for the year 2008-09, all the ten Municipal Corporations, 56 Municipalities and 64 Town panchayats did not submit their accounts for the year 2009-10. As of March 2011, audit of two Corporations, 55 Municipalities and 256 Town Panchayats was pending for the year 2008-09. For the year 2009-10, even though 92 Municipalities and 497 Town Panchayats submitted their accounts, audit of 84 Municipalities and 436 Town Panchayats was pending. As of June 2012, 3,440 paragraphs contained in 658 Inspection Reports of the Principal Accountant General for the period 2008-09 to 2010-11 were not settled for want of satisfactory replies.

Implementation of Jawaharlal Nehru National Urban Renewal Mission Projects in Chennai, Coimbatore and Madurai Corporations The Jawaharlal Nehru National Urban Renewal Mission (Mission) was launched in December 2005 with the objective of reforms driven and fast track development of cities across the country. Construction of underground sewerage system and storm water drains, provision of drinking water,management of solid wastes in the cities, urban transport including metro project, parking lot/space on public private partnership basis, development of heritage areas etc. and construction of houses for the urban poor were some of the major schemes undertaken under the mission. The three Corporations that implemented the Mission in Tamil Nadu incurred an expenditure of Rs.1,350.44 crore against the outlay of Rs.2,960.17 crore under the project of "Urban Infrastructure and Governance" and an expenditure of Rs.376.05 crore against the outlay of Rs.950.81 crore under the project "Basic Services to the Urban Poor" during 2006-07 to 2011-12.Performance Audit on implementation of the projects under the Mission in the three mission cities disclosed the following.

The City Development Plans were not prepared in consultation with the stakeholders as envisaged in the Mission guidelines. There were large scale delays in execution of the schemes. Out of 18 Urban Infrastructure and Governance projects, only five were completed by March 2012. The delays not only denied the facilities to the public in time, but would also contribute to cost overruns of the schemes.Due to defective identification of the beneficiaries at the project approval stage and further delays contributing to cost escalation, only 12,775 (28 per cent) out of the targeted 46,366 houses could be constructed, even though the project period expired by March 2012.The Corporations of the Mission cities contributed only Rs.237.62 crore(38 per cent) against their committed funds of Rs.618.52 crore for implementation of the approved projects.Due to shortfall in implementation of the reforms envisaged under the Mission before the due date (December 2010), Government of India withheld grant of Rs.111.05 crore to the three Corporations. There were instances of injudicious rejection of tender, failure to integrate execution of the related works, use of higher diameter pipes in water supply scheme than prescribed etc. resulting in avoidable expenditure.Monitoring and evaluation of the projects were inadequate as the monitoring agencies were appointed long after the start of projects and their meetings did not take stock of progress of the projects.

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• Index
• Preface
• Overview
• Chapter 1 - An Overview of Urban Local Bodies
• Chapter 2 - Performance Reviews (Urban Local Bodies)
• Chapter 3 - Audit of Transactions (Urban Local Bodies)
• Chapter 4 - An Overview of Panchayat Raj Institutions
• Chapter 5 - Audit Of Transactions (Panchayat Raj Institutions)
• Appendices