This Report comprises four chapters of which chapters I and II contain anoverview of the structure and finances of Local Self Government Institutions(LSGIs) and comments arising from supplementary audit under the scheme of providing Technical Guidance and Supervision (TGS) arrangement. ChaptersIII and IV contain three reviews and twelve paragraphs. Copies of the draftreviews and paragraphs were forwarded to the Government and the replieswherever received have been duly incorporated.
Structure and Finances of the Local Self Government Institutions
1848.22 crore available for utilisation during 200809 under Development Expenditure Fund the actual utilisation by the LSGIs was only
1476.66 crore. The underutilisation of funds provided in the State Budgetfor implementation of State schemes transferred to LSGIs and State share of Centrally Sponsored Scheme led to lapse of
60.21 crore. Financialachievement in respect of SJSRY, IDSMT/UIDSSMT (except 200506) andJNNURM, was below 50 per cent in all the years for the period 200506 to200809. The preparation and submission of annual accounts by LSGIs for audit were in arrears, though it is mandatory for the LSGIs to submit their accounts to Director of Local Fund Audit (DLFA) by 31 July every year. Theaudit of accounts of LSGIs by the DLFA was also in arrears. There werelapses on the part of PRIs in maintaining the prescribed registers in the proper form and preparation of monthly accounts and Annual Financial Statements.
Paragraph 1.1 to
1.14.3)Supplementary audit under the Technical Guidance and Supervisionarrangement
Supplementary audit of 62 LSGIs conducted during 200809 revealed nonmaintenance or improper maintenance of books of accounts and other records by LSGIs and lapses in the preparation of budget and Annual FinancialStatements. The audit methodology adopted by DLFA also needs to bestreamlined and strengthened by adopting professional auditing techniques.The staff of Local Fund Audit Department requires to be trained in IT audit,financial audit and double entry accounting.
Paragraph 2.1 to 2.10
)Implementation of Indira Awaas Yojana
Indira Awaas yojana (IAY) implemented by Government of India as anindependent scheme from January 1996 was aimed at rendering financialassistance for construction / upgradation of dwelling units to the poor familiesof the Scheduled Castes, Scheduled Tribes, free bonded labourers, physicallyand mentally challenged persons and nonSC/ST persons living BelowPoverty Line in the rural areas. The scheme was funded on cost sharing basisof 75:25 between the Central and State Governments. Some of the important points noticed during the review of the implementation of IAY are given below:Central assistance of
1.03 crore could not be availed due to underutilisationof funds. State’s share was short released by
34.22 lakh. Supplementary