Audit Reports

Jharkhand

Overview

The Report contains eight chapters containing observation of audit on accounting procedures and financial management, revenue receipts, establishment,procurement, implementation of schemes and conclusion and recommendations.A synopsis of the audit findings contained in the Report is presented in this overview.There was poor response to outstanding audit observations. 2639 audit paras pertaining to the period from 1980-81 to 2004-05 involving Rs 91.23 crore, were outstanding as of March 2006.Seven ULBs incurred unauthorized expenditure of Rs 31.57 crore without preparing budget estimates. Besides, Ranchi Municipal Corporation (RMC) incurred irregular expenditure of Rs 76.82 lakh over and above the budget provision.

The expenditure of Rs 165.52 crore incurred by 12 ULBs could not be scrutinized due to non-preparation of Annual Financial Statements for the period 2001-06.Only 47.05 percent of grants & loans were utilized during 2004-06.Due to non-holding of elections to municipal bodies, State Government did not receive Rs 46.49 crore upto 2005-06 in the shape of grants from Central Government on the recommendations of the Eleventh and Twelfth Finance Commission.Advances aggregating Rs 30.05 crore were outstanding against employees, suppliers, Contractors and Engineers.The employees of five ULBs sustained a loss of Rs 6.09 lakh upto March 2006 due to non-remittance of Provident Fund money deducted during 1989-2006.In five ULBs, a difference of Rs 1.21 crore between balances as per Cash book and Bank /Treasury Account was not reconciled.None of the test checked ULBs maintained the Asset Register, Register of Land & Deposit Ledger.Basic records viz Advance Ledger, Loan Register, Loan Appropriation Register,Grant Register, Demand and Collection Register of Holding Tax, Work Register,Unpaid Bill Registers were not being maintained by most of the ULBs.

In 12 ULBs, unrealised property tax of Rs 6.92 crore was outstanding as of 31 March 2006.Rates of taxes were not revised for the last three to 36 years despite the provision for its revision after every five years.Due to non service of notices of demand and warrant to tax payers for collection of arrears of holding tax etc., RMC was deprived of Rs 2.06 crore in the shape of fine which could have been levied on the delayed payments.Rs 23.87 lakh of revenue collected during 1999-2006 remained in personalcustody of the collecting staff. Rs 7.11 lakh was recovered from the staff of ULBs at the instance of audit.Loss of Rs 3.28 crore to Government due to non-remittance of money, collected on account of Education/Health cess, into the Government account.Loss of Rs 72.34 lakh to the State Government and Rs 8.03 lakh to the ULBs during 2001-06 due to non-imposition of Education/Health cess.Rs 3.12 crore was outstanding on account of rent of municipal properties. Rs 8.31 crore was outstanding on account of tax on Government buildings as of 31 March 2006.Shortage of staff ranges between 16 per cent and 100 per cent. Despite prohibition,the ULBs irregularly spent Rs 3.07 crore during 2004-06 on engagement of casual staff.

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• Preface
• Overview
• Chapter 1 - Introduction
• Chapter 2 - Accounts and Financial Management
• Chapter 3 - Revenue Receipts
• Chapter 4 - Establishment
• Chapter 5 - Transaction Audit
• Chapter 6 - Implementation of Schemes
• Chapter 7 - Other Important Observation
• Chapter 8 - Conclusion and Recommendation
• Appendices