Audit Reports
Himachal Pradesh
Report of 2011 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Himachal Pradesh
Overview
There are 12 Zila Parishads (ZPs), 77 Panchayat Samitis (PSs) and 3243 Gram Panchayats (GPs) in the State. Audit observed several deficiencies in the working of the Panchayati Raj Institutions. Expenditure was incurred without approval of budget estimates. Important registers like stock register, immovable property register, works register, muster roll register, etc were not maintained. Reconciliation between cash books and bank pass books at the close of the year was not carried out. Outstanding Inspection Reports and paragraphs were on the increasing trend.Backward Region Grant Fund (BRGF) programme was launched by the Prime Minister on 19 February, 2006 to redress regional imbalances in development by providing financial resources for supplementing and converging existing developmental inflows in identified districts. The programme was launched in 2006 - 07 by the Ministry of Panchayati Raj, Government of India (GOI) in Himachal Pradesh for two backward districts (Chamba and Sirmour).
A performance audit of the programme revealed nonpreparation of the district vision plan to bridge the critical gaps in local infrastructure and other development requirements at grass root level resulting in execution of works in an unplanned manner. While identifying the works/ schemes, the District Planning Committee ignored the instructions issued by the High Power Committee. As a result,sectors like Public Health, Animal Husbandry, Minor Irrigation, Drinking Water etc.were given least importance. An innovative feature of the BRGF programme was to ensure transparency by examination of peer review reports of the Gram Panchayats by the Review Committee at District level. However, the Review Committee constituted for examining the peer review reports neither inspected the works nor convened any meeting resulting in ineffective monitoring.
In one GP there was no record of closing balance of RS.1.09 lakh. One ZP and five GPs retained cash in hand in excess of the prescribed limit. Eight GPs and two PSs did not take action to recover/ adjust the outstanding advances of RS.14.10 lakh. Funds amounting to RS.8.74 lakh earmarked for minor irrigation schemes remained un-utilised in Personal Ledger Account (PLA). Revenue of RS.3.07 lakh remained un-realised on account of installation/ renewal charges of Mobile Towers in 19 GPs. Thirty four GPs purchased material costing RS.2.09 crore without inviting quotations/ tenders. Forty five GPs did not realize house tax of RS.8.86 lakh. Ten PRIs failed to realize the rent of shops amounting to RS.14.14 lakh. Sixty two GPs did not recover royalties of RS.20.54 lakh from suppliers.Eighteen GPs deployed same labourers on different works in the same period. Six GPs paid RS.0.10 lakh as wages for non-existent dates of a calendar month. GP, Bhalwani made payment of RS.12.07 lakh without pass orders. Mahatma Gandhi National Rural Employment Guarantee Scheme suffered from non-maintenance of wage-material ratio,delay in release of labour payment and payment of extra wages to elected members of Gram Panchayats.