Audit Reports
Tamil Nadu
Report of 2011 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of 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 two Performance Audits on Third Tamil Nadu Urban Development Project and Functioning of Tiruchirappalli Municipal Corporation. The third chapter contains two paragraphs based on the audit of financial transactions of the Urban Local Bodies. The fifth chapter contains two paragraphs based on the audit of financial transactions of the Panchayat Raj Institutions. 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 has not yet been made by the Government making the devolution incomplete. Though the savings ranged between 12 to 25 per cent of the total receipts during the last five years, the Urban Local Bodies failed to utilise the savings towards creation of additional infrastructure. 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 two municipalities did not submit their accounts for the year 2009-10,two municipal corporations, 52 municipalities and seven town panchayats did not submit their accounts for the year 2010-11. As of December 2012, audit of two municipalities and 11 town panchayats for the year 2009-10 and audit of 52 municipalities, 31 town panchayats and two municipal corporations was pending for the year 2010-11. As of December 2012, 2,402 paragraphs contained in 449 Inspection Reports of the Principal Accountant General for the period 2009-10 to 2011-12 were pending for settlement for want of satisfactory replies.Government of Tamil Nadu launched the Third Tamil Nadu Urban Development Project (TNUDP III) in October 2005 by availing financial assistance of US Dollar 300 million (Rs.1,350 crore) from the World Bank. The project had two components namely, Institutional development and Urban investment. The total outlay for the Project was Rs.1,996.40 crore. TNUDP III,scheduled to be completed by March 2011, was extended upto March 2014 due to slow progress in implementation of the project. A Performance Audit of the project disclosed the following.
As of March 2012, Rs.922.47 crore (46 per cent) was spent on the project as against the project cost of Rs.1,996.40 crore, despite extension of the project upto March 2014. Even though 75 (67 per cent) out of 112 sub projects under urban investment had been completed, the expenditure on the completed projects was only 13 per cent, and major projects of underground sewerage scheme, water supply and transportation were still in progress.Release of funds by Government of Tamil Nadu to Tamil Nadu Urban Infrastructure Financial Services Limited/Commissioner of Municipal Administration without verifying the actual utilisation by the implementing agencies resulted in Rs.403.90 crore remaining unspent with TNUIFSL, local bodies and other implementing agencies.