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Financial Performance

Kerala

Report of 2006 - Financial and Performance Audit of Local Self Government Institutions of Government of Kerala

Date on which Report Tabled:

Date of sending the report to Government

Government Type

Local Bodies

Local Body Types

Local Bodies

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Overview

This Audit Report includes seven performance reviews of which four are mini reviews and ten audit paragraphs. In addition, it also includes observations on the structure and finances of the Local Self Government Institutions (LSGIs) and the results of supplementary audit under the scheme of Technical Guidance and Supervision. Copies of the draft reviews and paragraphs were forwarded to the Government and the replies wherever received have been duly incorporated in this Report.

Accounts of LSGIs were in arrears since 1996-97. Cash books were not maintained and closed properly leading to internal control failure. Though funds of Rs.260.80 crore were available for implementation of seven centrally sponsored schemes, actual utilisation was only Rs.70.63 crore (27.08 per cent).The Comptroller and Auditor General of India (CAG) provides Technical Guidance and Supervision to Director of Local Fund Audit under section 20 (1) of the CAG's (DPC) Act, 1971. The scheme of TGS comprises audit planning, audit of 10 per cent of institutions and supplementary audit of 10 per cent of institutions audited by DLFA. In 2006-07, supplementary audit of 91 LSGIs was conducted. It revealed improper maintenance of various registers of accounts, lapses in preparation of budgets and Annual Financial Statements and temporary misappropriations.National Rural Employment Guarantee Act, 2005 guarantees 100 days of employment to all households whose adult members are willing to do unskilled manual work. The planning process was defective leading to poor performance of the scheme. Unemployment allowance was not paid to any beneficiary.

The process of planning was weakened due to non-preparation of labour budget and District perspective plan.With grama sabhas not being convened in any test checked GPs in Palakkad district and door to door survey not being conducted at the commencement of the Act, in 13 out of 16 GPs in Palakkad and Wayanad districts, prospective beneficiaries were not made fully aware of the benefits entitled to them.Majority of the job card holders (108913 out of 213840) in the state did not apply for work due to lack of awareness and restrictions imposed on them from applying for jobs.Out of 267614 registered households in the state, employment was provided only to 99107 households (37 per cent) and the number of households who got employment for 100 days was 537 (0.54 per cent).Rate of wages paid in 12 out of 16 Grama Panchayats in the selected districts was less than the minimum wage rate of Rs 125 and there was a delay of upto 56 days for payment of wages in eight selected GPs in Wayanad.Unemployment allowance was not paid to any household in the State.

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