Audit Reports
Bihar
Report of the Examiner of Local Accounts, Bihar on PRIs for the year ended 31 March 2011 Government of Bihar
Overview
The Examiner of Local Accounts (ELA), Bihar, Patna heads the Local Audit Department (LAD) under the supervision of the (Principal) Accountant General (Audit), Bihar. The Government of Bihar has declared (October 2006) the ELA as statutory auditor of Panchayati Raj Institutions (PRIs). The ELA conducts audit of Local Bodies in accordance with provisions of the Local Fund Audit (LFA) Act, 1925 and various other acts of the Bihar Government.
Audit noticed that the actual transfer of functions, functionaries and funds to PRIs is yet to be effected by the Bihar Government for strengthening the PRIs to effectively discharge their 29 functions listed in XI schedule of article 243 G of the constitution. The 16 Zila Parishads failed to realise Rs 6.29 crore revenue from own sources viz., rent of shops, Dak Bungalow (DB)/Inspection Bunaglow (IB), settlement of ponds, ghats, ferries, road side lands & trees, bullock cart registration fee etc.
Fifteen PRIs incurred an expenditure of Rs 47.55 lakh out of TFC Grants during the period from 2006-07 to 2009-10 on execution of works like repair/ renovation of Zila Parishads/Block Offices etc., not contemplated in the TFC guidelines. The PRIs not augmented their tax revenues despite provisions regarding taxation in the Bihar Panchayat Raj Act 2006 and recommendations of successive State Finance Commissions because the State Government had not yet notified the maximum rate of taxes to be imposed by the PRIs.