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Karnataka

Report of 2005 - Financial Audit Panchayati Raj Institutions, Government of Karnataka

Date on which Report Tabled:

Date of sending the report to Government

Government Type

Local Bodies

Local Body Types

Panchayat Raj Institutions

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Sector -

Overview

The Report contains two chapters. The first chapter contains observations of Audit on the accounts and finances of Zilla Panchayats and the other chapter contains three performance audit reviews and 13 paragraphs based on the audit of financial transactions of the Zilla Panchayats. A synopsis of the findings contained in the reviews and paragraphs is presented in this overview.Inspite of the stipulation in the Karnataka Panchayat Raj Act and this being pointed out by Audit, delays persisted in forwarding the annual accounts to the Principal Accountant General for audit and the delay ranged from two to more than twelve months.During 2002-05, 'Non-Plan' expenditure was more than the 'Plan'expenditure.Prescribed internal controls were rendered ineffective as reconciliation of expenditure between Controlling Officers and Zilla Panchayats was in arrears.Cases of misappropriations involving Rs.30.40 crore were pending settlement.

In 15 Zilla Panchayats, detailed accounts for Rs.5.56 crore drawn on Abstract Contingent bills were not submitted by the Drawing and Disbursing Officers.The scheme was launched without relevant data regarding the number of households in the villages and the selection of villages was improper which adversely affected the implementation of the scheme. Delay in release of funds to the Karnataka Land Army Corporation for repayment of loan resulted in additional liability of Rs.2.77 crore towards interest.

There were instances of diversion of funds amounting to Rs.7.44 crore.Physical achievement of works varied from 2 to 78 per cent in the test-checked Zilla Panchayats, whereas in Zilla Panchayat, Bangalore (Rural) no work had been completed even after five years of commencement of the scheme.The roads laid at a cost of Rs.6.87 crore in 209 villages did not conform to the specifications prescribed. The compost yards/manure pits were not shifted to outskirts of the villages, as required and there was shortfall in construction of toilets. Contrary to the guidelines, lead and lift charges aggregating Rs.42.29 lakh were paid even though locally available materials were used. No provisions were made for the maintenance of completed works in villages.

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