Audit Reports
West Bengal
Report of 2009 - Report on Panchayati Raj Institutions, Government of West Bengal
Overview
The Report starts with an introductory Chapter containing brief description of Panchayat Raj Institutions (PRIs) and their resources as well as audit coverage and mandate. Chapters 2 and 3 of the Report cover financial management and major irregularities in implementation of schemes like National Rural Employment Guarantee Scheme and Indira Awas Yojana while Chapter 4 discusses material findings emerging from Performance Audit on implementation of Rural Infrastructure Development Fund. Chapter 5 includes 26 paragraphs dealing with results of audit of financial transactions of PRIs.PRIs in the State consist of 17 Zilla Parishads (ZPs), one Mahakuma Parishad(MP) (with all the powers and authority of the Zilla Parishad) for Siliguri Sub-Division, 341 Panchayat Samitis (PSs) and 3,354 Gram Panchayats (GPs). At state level, the Panchayat and Rural Development Department (P&RDD) headed by a Principal Secretary exercises administrative control over the PRIs. The Directorate of P&RD, in the Department handles all establishment related matters of PRIs.
There was a short release of Rs.539.05 crore to PRIs from the State budget allocation provided by the P&RDD during 2006-09 and the shortfall was eight per cent of the budget allocation. Utilisation was 68 per cent of actual release out of state budget allocation.Own Source Revenue collection constitutes only four per cent of total revenues of PRIs while Central and State Grants constitute 58 and 38 per cent respectively during 2002-03 to 2008-09.Flow of funds especially schematic funds to GPs increased 131 per cent during 2008-09 in comparison to 2006-07 and GPs received 63 to 80 per cent of total schematic allocation for PRIs.PRIs expended 68 and 82 per cent of total schematic expenditure on poverty alleviation and rural housing schemes. Expenditure under education and social security was three to four times in 2008-09 in comparison to 2006-07. The State Government released only 1.2, 1.5 and 0.8 per cent of the State Tax revenue respectively during 2006-07 to 2008-09 to the PRIs against the recommended 12.8 per cent under State Finance Commission grants.
During audit of 3,214 GPs, 151 PSs, 17 ZPs and one MP, instances of deviation from laid down financial procedures were noticed. These included failure to prepare accounts and budgets, direct appropriation of revenues,theft/defalcation and non-reconciliation of cash balances as detailed below.Twenty eight GPs failed to prepare annual accounts in the prescribed format and expended Rs.17.11 crore against total receipt of Rs.23.10 crore during 2007-08. Twenty nine PSs incurred expenditure of Rs.166.28 crore against total receipt of Rs.296.24 crore during 2005-08 without preparation of annual accounts in prescribed form.Ten GPs did not prepare their budget and unauthorisedly spent Rs.5.80 crore during 2007-08. Arsha and Kashipur PSs spent Rs.6.96 crore during 2005-08 and Rs.9.59 crore during 2005-07 respectively without preparing any budget during that period. During 2007-08, 422 GPs directly appropriated Rs.1.69 crore out of the revenues collected by them without depositing the money into their respective savings bank accounts in contravention of the rules.One ZP, 17 PSs and 85 GPs did not conduct monthly reconciliation of balances of Cash Book and Pass Book and Rs.38.97 crore remained unreconciled at the end of 2007-08.In 3,068 GPs, 75 per cent of the total demand for taxes, duties, rates, fees and tolls amounting to Rs.71.08 crore remained unrealised at the end of the year 2007-08.Uniform accounting practice had not been followed by every PRI while incorporating transactions of Fund Transfer Account (FTA) in Cash Book and Annual Accounts. Sixteen ZPs, except Birbhum and Uttar Dinajpur ZPs, had incorporated transactions of FTAs in their accounts. Accounts of PRIs where transactions of FTAs were incorporated became inflated due to double recording, i.e. once under FTA and once under the respective programme head. Thus, in course of transferring funds from FTAs of ZPs to designated accounts of the PSs/GPs, receipts of Rs.918.67 crore of 15 ZPs became inflated due to double recording, i.e. once under FTA head of ZPs and the other under actual programme head of respective PS/GP on transfer of funds from FTA.