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This report contains eight chapters. Chapter I contains Introduction to the Local Government of Assam and their Audit. Chapter II & V contains Overview of Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) respectively. Chapter III contains Thematic Audit on Functioning of Social Audit Unit of Assam. Chapter IV contains Function based Audit of PRIs and it also contains five Draft Paragraph from compliance audits of PRIs. Chapter VI contains Subject specific compliance Audit on Implementation of the recommendations of the 5th ASFC and utilisation of Grants by ULBs. Chapter VII contains two Draft Paragraph from compliance Audit of Municipal Corporations. Chapter VIII contains Function based Audit of ULBs and it also contains four Draft Paragraph from compliance audits of ULBs.