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Audit Reports

Financial Performance
Kerala

Report of 2009 - 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
Sector -

Overview

This Report comprises four chapters of which Chapters I and II contain an overview of structure, accountability, finances and financial reporting issues of Local Self Government Institutions (LSGIs) and comments arising from supplementary audit under the scheme of providing Technical Guidance and Supervision (TGS) arrangement. Chapters III and IV contain two reviews and twelve paragraphs.Copies of the draft reviews and paragraphs were forwarded to Government and replies wherever received have been duly incorporated.

There was no system in place to consolidate the finances of LSGIs. The correctness of the figures in the database on finances of LSGIs is doubtful.Government of India (GOI) grants increased substantially from 2007-08 onwards due to increase in the release of funds under Indira Awaas Yojana and Mahatma Gandhi National Rural Employment Guarantee Scheme. The share of GOI in the total receipt increased from seven per cent in 2005-06 to 16 per cent in 2009-10. The share of State Government in the total receipt declined from 74 per cent to 67 per cent during the same period. Annual Financial Statement and primary financial records of LSGIs were deficient.Asset register was not maintained properly as a result of which it could not be assessed whether the norms for maintenance of assets had been strictly adhered to. Government had not placed Consolidated Administration Report before the Legislature.

The prime responsibility of providing solid waste management services in the State is vested with LSGIs. A review of the Solid Waste Management in Urban Local Bodies (ULBs) revealed failure of ULBs and State Pollution Control Board (SPCB) in discharging their responsibilities fixed by MSW Rules in relation to identification of risks to environment and health posed by waste,manual handling of waste by workers without adequate protection, non-observance of conditions specified by SPCB, non-segregation of waste at source to facilitate effective processing and disposal, disposal of waste in unscientific and unhygienic manner and environmental pollution caused by waste heaped in the dump yards. The Municipalities test-checked had not maintained any record of the quantity and composition of waste generated to assess the magnitude of the problems faced in the management of solid waste.Waste collected ranged between 18 and 85 per cent of the waste generated in the ULBs test-checked. The ULBs did not have any mechanism to ensure the quality of ground water, surface water, ambient air and standards of composting, leachate and incineration in and around landfills as stipulated in MSW Rules. Perumbavur, Cherthala and Chavakkad Municipalities resorted to land filling without observing the provisions of Act and Rules. The District Collectors did not ensure that the facilities provided in the ULBs for waste disposal were meeting the standards prescribed in the MSW Rules and the disposal of waste was carried out with due care for health and environment.Though Suchitwa Mission was entrusted with the responsibility of ensuring proper utilisation of funds released to ULBs, the information relating to actual stage of implementation of the projects was not available with them.

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