municipality - rajasthan divisio… · (vr) rs8000/- poid to katputli artist(swatch bharat...
TRANSCRIPT
MunicipalityChomu
Financial Statements and Independent Auditors report
FY 20 16-17Audited By : RAG& ASSOCIATES
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Table of Contents
S.No. Contents
1. Independent Auditor's RePort
2. Balance Sheet
aJ. Income & Expenditure Statement
4. Statement of Cash Flows
5. Schedule to the Financial Statements
6. Additional Matters to be Reported by Financial
Statement Auditor
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II{DEPENDENT AUDITOR' S
To,
Municipality Board,
Chomu
We have audited the accompanying financial statements of MUNICIPALITY, CHOMU. which
comprise the Balance Sheet as at March 31 ,2017 , the Income and Expenditure Account and
Cash Flow Statement for the year then ended.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash flows of the LJLII ir,
accordance with the Rajasthan Municipal Accounts Manual. This responsibility includes tirr-'
design, implementation and maintenance of intemal control relevant to the preparation o{'thc
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibilify
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute ol'
Chartered Accountants of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether tlrc
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financiai
statements, whether due to fraud or eror. In making those risk assessments, the auditor considcr.';
intemal control relevant to the ULB's preparation and fair presentation of the financiai
statements in order to design audit procedures that are appropriate in the circumstances, but nol
lbr the purpose of expressing an opinion on the effectiveness of the ULB's internal sontrol. An
audit also includes evaluating the appropriateness of accounting policies used and tlre
reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion. t
/
fl&\/qfuREPORT
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BASIS OF ADVERSE OPINION
Major issues identffied in the uccoanting system und discrepancies identifiedduring the Audit procedure are described under following Para.
1. Double entry uccounting system hus not been properly done as :-
O lVrong classffication of expenses in revenue/capital as per nature.
(it) Income heads not clussijied us per nuture.
(ii| Depreciation on Fixed Assets not churged during the year.
2. There is neither Urban Development Tax assessmentfor the FY 2016-17.
IYor other revenue assessment during the FY 2016-17. Therefore no ttr or
revenue has been accruedfor the FY 2016-17 ut end of Financial Year.
3. Stotement of Outstanding liabilities in the Form GEN-28 is not preparetl.
Therefore the double entry uccounting has no conformity with Accrusl
Concept. The Double entry accounting is on cush basis not on un Accruol
basis.
4. During the verffication af vouchers we found that expenses as incurred
according to its nature not correctly classiJied in Jinancial statements.
Instunces reported hereunder:
A) Operatins Expenses (Public Workl:(, Puyment madefor JCB supply of Rs 95571 dtd 29.07.2016 debiled
to salary & wages contrucl employee Busis reflected as
Establishment expenses in /inunciul stutements(iil Construction of Druinage system umounts to Rs 591524/- dtd
11.11.2016 debited lo salary & wuges contruct employee Busis
r efl ecte d us E s tablis hment exp ens es in Jin ancial stateme nts.
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(iit) RsL05214/- dtd 01.02.2017,Rs105214 dtd 01.12.2016 expenses forkuchra Sangrah debited to vehicle rent and same showed inschedule-3 I in financial statements.
(iv) Rs 207034/- paid to Balaji Construction Company on l1.l1.2016for Kachra sangrah and Rs 3450A/- puid to Juipur Nugar Nigamshowed as repair & Maintuinance Vehicle in linancial statement.
(v) Construction of Drainage system umounts to Rs 209000/- dtd30.11.2016 debited to salary & wages contract employee BasisreJlected as Estublishment expenses in Jinancial stutements.
(vr) Rs8000/- poid to Katputli Artist(Swatch Bharat Mission).Rs9000/-
for operations (Trolly Bharui) dtd 28.07.2016 booked us Salaryy* &Wuges contruct employee
B) Diesel & Petrol Expenses(Vehicle Runninsl :Rs984964/-Puyment mude to Madhani Brothers for Fuel Purchaseshowed ds Repuir & maintenance Expenses under schedule-31 of.financial statements
C ) Vehicle Running Expenses:(t) Rs 49011/- dtd l8/11/2016 paidfor vehicle running expenses
debited to salury & wuges contruct employee busis reflected as
Establishment expenses in Jinancisl statements under Sch ed ule-28.(i, Rs 27293/- dt 21/03/2017 paidfor vehicle running expenses debited
to Repair & maintenance vehicle expenses.
D ) Electricitv Expenses :(, Puyment madefor electriciS expenses Rs 34259/- dtd 16.06.2016 ,
debited to election expenses showed in Schedule32 of Jinanciulslatemenl
(it) Rsl8549/- Payment madefor electricity expenses dtd22.09. 20 I 6,booked in electrical eq uipment.
E ) Water Supplv :O Water supply expenses amounts to Rs604200/- debited to Salary &wages contruct basis und showed us estublishment expenses in schedule-29
F) Repair of Submersible motor/Pumn set (PHED Expenses):(i) Rs 302333/- dtd08.07.2016 paidfor repair of Submersible,motor pump
booked as Yf/uter Purchuse also prior period expenses booked in curuent year.(iil Rs366249dtd 25.04.2016 paidfor repair of Submersible motor pump
hooked as Water Purchase.
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(iit) Rs571208 dtd 25.04.2016 paidfor repuir of Sabmersible motor pumpbooked us lYuter Purchase.
(ir) Rs 232677 & Rs 206135 dtd 06.07.2016 paidfor Lowering of PumpSet i.e. Repair booked as Water Purchase.
G)Accounting Churges :Rs 106000/- duted 21/07/2016 puidfor Accounting work of linancial yeur
2015-16 debited to salary & wages contrqct employee basis also prior periodexpenses booked in current year.
H) Insurance Expenses(i) Rs 12150/- dtd 09.11.2016 puidfor insurance of JCB booked as Repuir
&M u i ntui nunce Ve hic le.(ii) Rs 5809/-,Rs6004/- dtd 26.04.2016 paidfor insurance booked as Fuel
Petrol & Diesel.
D Short Booke,d Income/ LiablitiesRs62823/- puid to Green world Developers which includes Rs 16423/-security refand und Rs 46400/-EMD refund,alsoRs 7800/- againstsecurity is withheld wrongly booked as EMD refunded ,securityrefunded"
J) Discrepuncies in Estublishment Expenses(i) Rs 989390 paid to Mohammad Sidhik on 08.11.2016 for Gratuity
Debited to Other Anudun 14h vit Ayog.(ii) Rs 165347 dtd 08/11/2016 paid to Sannu Maulufor PF loan uguinst
employee debited to GPF puid to employees, also GPF puyment to employeesbooked as Salary expenses.
(iil Rs 231139 dtd 04/11/2016 paid to Rameshwer Lalfor PF loanugainst employee debited to GPF paid to employees.
(iit) Rs 176357 dtd 04/11/2016 paid to Sunnu Maulufor PF loan ugainstemployee debited to GPF paid to employees.
(iv) Rs 100238/- showed as Salary & Allowqnce to Raajswa Employeewhich is TDS on salary(Current liabilities).
(v) Parshad allowsnce booked as Sulary to Officers.(vr) Deductionfrom sulary such us Home loan, LlC,other loan etc not
booked as liability repq)ment and their balance not reflected inJinanciul statements.
5. Liabilities that muy arise on account of lute filing of return, Lute payment
or non deduction und mismatching of TDS, Royalty und Labour cess have
not been sscertained and hence not considered To this extent Surplus ofIncome over expenditure is overstuted and Liubilities ure understuted.
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6. During the verijication of vouchers we found payment to parties mude on
Performa invoice, releasing order and on Letter heud basis not on
Original Invoice. Some of cases are reported hereunder :
a) Rs 22992/- dtd 16/tt/2016 Puid to Rajesh Kumar on basis of Performa
Invoice.
b) Rs 7588/- dtd 23/03/2017 paid to Daily News on Releuse order Basis
c) Payment made of Rs 161000/- to Sander contractor dtd 21.07.2016 fbrlig ht muintenunce vide letterh eud.
7. Bulunces af Earnest Money of Rs 25,48,061/- und security deposit ofRs.75,80,665/- us determined by the Municipal Board in the Financial
Stutement prepared under the Double Entry System as al the year end. The
Reconciliation Statement of ubove bulances hqs not been prepured by the
monogement of the municipal Board. As such to this extent of discreponcJ),
the accoants do not reflect true und fuir view. Besides, adjustment hos not
been mude for lapsed deposit as no longer payable.
8. Liubilities on uccount of repuyment to Stute Government towards their
shure uguinst various reulizations ss per Municipal Luws und regulations
have not been considered in the accounts. As such, to this extent, Liubilities
are understated and Surplus of Income over expenditure is ouerstated
9. Payment mude to Juipur Ex-serviceman Multistute welfare cooperotive
Sociefii Ltd of Rs 259182/- dtd 22.11.2016for salury of Computer operator,
Fireman & Driver,Guard for which no Attendance Sheet attuched with the
voucher reflects due verificution of no of duys present of contructual
employees not made before making payment.
l
l0.Liabilities or recovery on account of pending cases und/or notices filedagainst or by municipal Bourd by/against third parties is not uscertainable
und not considered in the books of uccounts. Financial impuct of such
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cases has not been uscertuined and hence we are unable to comment on
correctness or otherwise of fncome, Expenditure, Assets or Liabilities tothis extenL Conlingent Liabilities, tf any, urising out of these cases has not
been estimated by the manicipal Board nor hus been disclosed.
ll.Closing Stock of Stores has not been determined by the municiputiry untt
not considered in the accounts. To this extent bolh, Surplus of Income over
Expenditure and Assels are understated.
12.As per Guidelines to Public lYorks Department of Municipal Board,
department shall be maintained the Tender Copy, Contract Agreement,
Works completion Proof with Photogruph of Site before starting of Works
and after Completion of Vl/ork, quality test report, Copy of Running Bill
etc. but the department of ULB has not been maintained the Works
completion Proof with Photograph of Site before starting of Works and
after Completion of Worh
I3.Earmurked Fundfor gratuity andfundfor PF liability not made uccording
to the actuql liability. Liability for Gratuity not been ascertained according
to AS-15, nor b,een disclosed in Books of Accounts. Eurmarked fund not
matched with the Actuul Investment held by Municipality. Also in.financial
statements previous year ligures taken us it is as closing bulances not
matched with PD Passbooks.
l4.Depreciation was not charged on ftxed ussets. To this extent Surplus of
income over expenditure is overstated in the linancial stutement. No
specffic Fixed Assets Register maintained by the Municipalig only store
register maintained, also no records available to verify physical
veriJication of fixed assets done due to which we are Unable to Comment
apon Fixed Asset as per Book snd its Physicat Existence. Also ussets such
us Almari amounts to Rs 9253/- dtd 20/04/216, Wall fan amoants to
RA& & ASS$grArESSE A ft TERtrD A CSOUff TA,V TS
Rs39980/- dtd 02/05/2016,Mobile Toilet amounts to Rs 4XBAA/- dtd
16.02.2017 found in Store register Municipality records not tatlied with
ftnancial statements.
l1.Income/capital fundfrom the grants according to revenue/capital expenses
during the year from speciftc grant given for same not accounted as per
grant nature and accounting standard
l6.Opening & Closing Bulance of Municipul Fund not verffied. Diffirence in
totaling entry dtd 15.09.2014 in Cash Book of Rs30/- not reconciled yet.
l7.Rs 3344019/- paid as gratuity during the jinancial year 2016-17 us per
ftnuncial statemerut which is due to wrong classiftcatioru includes
Employee Provident fund18.rts 7908217 showed us Advance against Electricigt which was outstanding
from Previous Year not verffied and adjusted in current year.
l9.Provision not madefor march salary and Audit Fees.
20.There is no proper Classijication of Income head according to receipt of
income and its nature, also income is not booked or wrongly booked ,
Grant received is not booked according to its usage full amount taken as
income reflects overstatement of income Instance ure as follows:-(t) As per receipt no 253/23 dtd 05/08/2016 Amount received in respect of
Lease as lts 33997/-,Land usage Rs 27198/-, Samjhota Rs680000/-
,Application fee Rs 2509/-, Certffication fees RsS/- booked under only
one head i.e Land Appovalfees inJinancial statements.
(iil As per Schedule 22 of financisl stutement Assigned compensution
umount showed as Rs82884000/- which l's wrong as,,per originul
records, on veriftcation it was found that this anount wrongly includes
Grunt of PHED of Rs7427000/-dtd Rs 31/03/2017,and Rs 21719000/-
dtd 31/03/2017 received against 14 Finance commission. -,.-, j;....{r-F:"i:{q-i'- 't ..r' ;.-,'
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(iit) Rs 3837000/- received as octroi on 14/06/2016 ,Rs 3836000/- receiveel
on 11.08.2016 , Rsj837000/- received on 31/01/2017, Rs 3836000/-
teceived on 01/02/2017,Rs 3836000/- received on 21/03/2017 receivecl
as octroi as per PD Pass book 4846 but these entries not reconcilecl
under the same head In Fiunciul stutements.
2l.Duting the Audit there ore some voucher in which calculation enor were.
found and payment mode accordingly, cases are reported hereuncler:
(t) As per the supporting uttuched with voucher dtd 07.03.2017 Rsl300/-
to be paid against digilal signature certfficate however Rs 1550/- has
been hooked and paid.
(it) As per the supporting attuched with voucher dtd 19.10.2016 Rs
9400/- to be paid to Feroz Ahmed however Rs 9900/- has been
booked and paid
22.Payment of TDS l?s 70599/- on 04.07.2016 booked as repayment ot'
security deposited which understate the current riablities .
23.Rs 407578/- booked as repair & muintenunce of office building pa),menr
made to Azaad Construction dtd 15.02.2017 un:d Rs 1069843/- booked (rs
water Expenses puyment made to Aradhnu Enterprises in which as per
Running bill both work ure above Buse rate but no Jile provitted forverijication same.
24. On 12.07.2016 Rs4199/- showed ss cash receipt from Sales tax officers
which is reflected as surudry creditors in jinuncial stutements not justiJied.
2S.GPRS purchased for Rs 90000/- dtd 23.02.2017 booked as Repair &Maintenunce vehicle, capital expenses booked as revenue. i
26. Safai expenses of Rs6531797/- showed in general administrution expenses
schedule-29, however it is operutional expenditure(public work)
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27. lYo notes on accoants being provided to verifi the accounting policies,
estimation und presumptions while prepuring Jinanciul statements.
28.Since financial statements(Income &Expenditure,Bulance Sheet) ure
subiected with adverse opinion cash flow is sabjected to adverse opinion
Adverse OpinionIn our opinion because of the discrepancies reflected in the Basis for Adverseopinion paragraph, and ADDITIONAL MATTERs the financial statementsdoes not present true and fair view in conformity with the accounting principlesgenerally accepted in lndia, and also in all material respects in conformity withthe Rajasthan Municipal Accounts Manual :-
a) ln the case of the Balance Sheet, of the state of affairs of the ULB as at March 31., 201.7
b) ln the case of the lncome and Expenditure Account, of the surplus/ deficit for the yearended on that date; and
c) ln the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
We further report that:
a) We have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit;
b) ln our opinion proper books of account as required by law have been kept by the ULB so faras appears from our examination of those books subject to adverse opinion;c) the Balance sheet, lncome and Expenditure Account, and cash Flow statement dealt with by
this Report are in agreement with the books of account subject to adverse opinion;d) ln our opinion, the Balance Sheet, lncome and Expenditure Account, and Cash FlowStatement comply with the Rajasthan Municipal Accounts Manual subject to adverse opinion;
For RAG & ASSOCIATES
Chartered Accountants
Place:JAIPUR
Date 27/1212018
MNO:-417431"
FINANCIAL STATEMENT FOR THE YEAR 2OT6-L7
NAGAR PAL!KA, CHOMU
Balance Sheet of Naga Palika Chomu .Y.2076-L7
i "-ir tai Reserve & Surplus (A)
iiE, i, .r,rt Contt'ibutionI
It:rrrrt Received for Specific PurposeiI
l-1,-,talGrant (B)
!
l, ^n^,.I i-r.'^"\l\lJ
ilirrr:irred Loan
[{-lirs,-1,-ured LoanI
I
l-rotat Loan (C )iI
l{. i,RRENT LTAB|LITES & PROVTSTONSt
|:i riLini Deposites
l:ir 'nclry Creditors
[:,t rt,rtory Liabiliites
l(]: her Liabiliites
ll'iovision for previous year differencesl'I
I
i-,',tal Current Liabilites & Provisions (D)
i"i.rbilities
!I !SIRVE & SURPLUS
lir; uncipality Fund (General)
l:,,rrnarl<ed Fund
ii,.: :;erve & Surplus
Schedule
1
2
3
7
8
9
10
11.
2076-t7(Amount in Rs.)
63,701,61,1,
3,895,803
67,597,41,4
222,626,897
222.626.897
10,1,29,726
122,668
673,866
1,0,925,260
201.5-L6
(Amount
67
3
7L,469,V11
1.07,962,699
707.962.699
1,7,584,61,9q 17q
13,4.56,205
in Rs.)
,173,908
,89s,80-l
rorAL tlABlLlrEs (A)+ (B)+ (c )+(D) 301,,1,49,5-/ 1 1,92,488,615
[!;&tes to Accounts and AccountinE Policies
.{l r.11 -r. s
date
6A*mffiCI frarerfqs"is,ratHls,ot:t'aCAO/ Sr. Aof i:artner)
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lit ate:- La l t ll l 8iPilace- c \ror""'r\
FINANCIAL STATEMENT FOR THE YEAR 20L6.17
NAGAR PALIKA, CHOMU
Balance Sheet of Nagar Palika Chomu F.Y.2016-77
ASSETS
I:I){ED ASSETS
tlross Block
l-ess: Depreciation
hlr::t Bk:ck
i,;:pital Work in Progress
Tr:tal Fixed Assets (A)
IIUVESTMENTS
D,;posits against Earmarked
iiieneral Fund lnvestments
Funds
utal lnvestments (B)
CIJRRENT ASSETS AND LOAN & ADVANCES
inve ntories
Iiurndry Debtors & Receivables
Cash & Bank Balances
Lnans, Advance & depositesIas;h Book Difference
Total Current Assets, Loan & Advances (C )
Schedule
12
13
1.4
15
1.6
17
18
1,9
20
20L6-L7
(Amount in Rs.)
26,489,352
26,489,352
26,489,352
266,752,032
7,908,217
-30
274,660,219
2415-1.6
(Amount in Rs.)
22,88'/,1,87
22,887,181
22,887,787
1,6L,693,240
7,908,21.7
-30
L69,601,427
0TAL AssErS (A)+ (B)+ (c ) 301,,1,49,571 192,488,61.4
t\rlotes to Accounts and Accounting Policies
.As per audit report even datefior RAG & ASSOCIATES
'Ihartered OWr?^[l
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FINANCIAL STATEMENT FOR THE YEAR 2016-1-7
NAGAR PALIKA, CHOMU
INCOME & EXPENDITURE A/c of Nagar Palika , Chomu, Rajasthan For the Year Ending 31st March, 2017
i'Tt,RIICULARS Schedu le
20L6-17
(Amount in Rs.)
2015-16(Amount in Rs.)
ifiCoME: r-,-irne from TaXeS
rr rsi:1ned Compensation:i, ilrai lncome from Muncipal Properties:r,:cs & Usage Charges
ii",verrue G ra nt, Su bsidies
S;rk:s & Hire Charges
tzilscellenous Income
I.r)tal lncome
i.xpenditure!rr, ia blistment Expense
(, ,neral Administrative Expense
r).,ci ease in Store/(lncrease in Store stock)
literest & Finance Charges
l'.,lbiic Works
lrl scellenous Expense
Yojana Expense
!).,preciation during the year
l,rtai Lxpenditure
.: r.u pius/Deficlt before adjustment of Prior period items
rr.ss: Prior Period ltems
:ess: Prior Period Depreciation Adjustment
i'JET Suprlus/Deficit
21
22
23
24
25
26
)7
28
29
30
31
32
33
98 1,139
82,884,000
357,215
6,866,194
35,300
1,510,600
98,694,508
46,447,L89
t ,549,99L
43
40,451 ,6281,440,308
95,895,159
2,799,349
2,199,349
668,359
41,853,000
315,768
3,824,21,1
12L,792
s,820,257
52,663,387
34,899,476
1.,469,042
21,6
10,756,891
1,534,2r8
48,659,843
4,003,544
4,003,544
l'{otes to Accounts and Accounting Policies
,[f per audit report even dateL::t.lr RAG & ASSOCIATES
'll:ra rtered Accountantsq/geeN.-*.r].a. .LS.{. n R
^-t A
i' illlIll:r1Y3rilate:- I?lt'L1lg"[-t!ace- C\n u \"r-\\
EOl Commissioner
--A--...fi# rlq+trsTqs+p,nal.qf9pf ,'*T
CAO/ Sr. AO
.,:i]cdule Forming part of Balance Sheet, lncome & Expenditure of Nagar Palika, Chomu Rajasthan as on 31st
March, 2017
201-6-17
(Amount in Rs.) (Amount in Rs.)Pa rticula rs
Sr:hedule 1
|',lr In.ipal General Fund
Opening Balance
Add: Addition during the year
Less: Deduction during the Year
61,L73,908
2,799,349
6,277,646
63,172,7 40
4,003,5442,376
Total 63,701",61r 67,t73,904
!:r;iredule 2
E.'\iiivlarked Fund
Earrnarked Fund : Gratuity
[armarked Fund: PF
719,769
3,176,634
7L9,L69
3,t76,634
Total 3.895.803 3,895,803
Sciredule 3
fie jerve & Surplus
Opening Balance (Capital Contribution)
Add: Addition during the year
Less: Withdrawal during the Year
Total
5ciredule 4
CRr\NT CONTRIBUTION FOR SPECIFIC PURPOSE
:,th flnance commission
Elhaniashah Yojna Subsidy
Other Anudhan (lDA)
lVlla fund
Cen us
Panna Dhaya Scholarship
state Finance Com. Grant for Dev.
Jrall orl 14th Finance Commission
Lr [.1on l Jlh Finance Commission
Swachh Bharat Mission
Rain Basera
Swarn Jyantl Urban Employment
47,679
29,261-,439
60,000
4,800
139,940,s3 1
27,692,614
7,624,355
17,062,023
900,000
4L,619
L6,738,926
60,000
530,449
4,800
46,419,430
28,682,000
7,624,355
6,862,000
39,520
900,000
Total 222,626,891 1.01,962 699
Schedule 5
:;iCURED LOANS
Total
Sr:hedule 6
I II]JFC-URED LOANS
Other Loan Payable
Total
5chedule 7
Si-r iIDRY DEPOSITS
Secu rity Deposits
imd7,5 80,665
2,548,061
1,841-,480
4,143,L39
*_ MdTotal L0,L28,726 12,584,6L9
Seiredule 8
SU NDRY CREDlTORS
Creditors against supplier
Creditor against contractor 122,668 5,3 25
Total L22,668 5,3 25
1
:ra eduie !I il-fctli' I IliBiLlTlES
I irra,Lii T.-,i
i.:r retiule 10
,Ol il:R LIADiLITIES
Advance Payable
ii::redule L1
f:ll( )ViSIONS
Au, lit Fee Payable
Iotal
673,866 866,261.
673,866 866,261
Total
5r:lredule L2
.:i: .)55 UL.OCt(
Otfi.e Building
I,f r:rstructure Assets
Roads and bridge
other construction and buildingPriblic toiletsSe\,verage and drainage
r. r,vai)le Assets
tl,rniture,Fix, Fitting and EIc. Appli,.)ther fixecl Assets
i:'uuli.: tightlngLlffice and other Equipments?lent and Machjnery
Vi-.h icles
2,683,433
4,955,167
7,532,786
335,961
934,260
226,2L6
3,939,979
1,57 4,80276?,500
471,044
3,073,804
2,306,433
4,990,122
1,497,231
3 15,961
934,260
226,2L6
248,241
1,57 4,802762,500
5,000
4,026,421
Total26,489,352 22,881 1-87
5|r reciuie L3
:Ti: F,i]ECIATION FUND
O!'r:tting Balancer\:ril: Def.reciaticn duringthe year
Total
Sciledule 14
CAPITAL WORK IN PROGRESS
Total
Sciiedule 15
1i)i:CI FlC I.IJND INVESTMENTS
!'!l A/,,8338-58
IOTAL
Scnedule 16
GEN TRAL FUND INVESTMENTS
i:ix,.(l Deposit
Total
jciieciule 17
St0ak others
fotal
5rhed ule18
I;U N DRY DEBTORS/RECEIVABLES
Arvance
Total
5t:iredule L9
(ASH & BANK BALANCES
Cash in hand
llank Balance
ireasu ry A/c
27
266,752,00s
1",723,L38
L55,449,829
5,170,273
Total 266,752,032 167,693,240
5cl reciule 20
LOI\N5 ADVANCES & DEPOSITS
AdVance against electricity exp. 7,908,2L7 7,908,7L7
Total 7,908,277 7,908,2L7
-e
€
Schedule 21
I]\]COME FROM TAXES
I louse tax
!r'ban Development tax
13,269
967,870
2,444
665,915
Total 139981 668,359
Sr:hedule 22
,4,)SIGNED COMPENSATION
i.or.lrpensation in lieu of taxes 82,884,000 41,853,000
Total 82,88A 000 41,853,000
Schedule 23
NENTAL INCOME FROM MUNICIPLE PROPERTIES
Tah Bazari
Shop Rent
Ctl'rer Rent
231,47 4
12s,801
211,168
4,000
100.000
Total 357,275 375,768
S(;hedule 24
FE[S AND USER CHARGES
l)evelopment Charges
i ees fcr Certificate or Extract
illes frorn Grant of Permit
Licensing Fees
Other Fees
Penalties and Fines
Samjhota Adhlsandhan
liegularization Fees
User Charges
l\dvertisement Fees
llegsitration Charges
f'errnrssron l-ee
71,035
4,586,228
59,505
L,395,974
314,695
79,400
334,740
t4,617
6,825
92,304
1,785,765
56,463
L,O76,897
3,000
208,000
33 1,881
504,108
35 1,370
7 ,1-45
453
Total 6,866,L94 3,824,21.1.
tI
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Jcheciule 25
R5..'ENUE GRANT CONTRIBUTION SUBSIDIESr\rrni:alAid by Govt.
Revenue Grant-Sjsry #
Total
Schedule 25
5Ai E AND HIRE CHARGES
Sale of Form &Formatr21,792
Schedule 27
IV i5CELLANEOUS OR INTEREST INCOMEl|terest From Bank A/civlisc. income
7,563,780
6,820
Sciredule 28
ESTABLISHMENT EXP.
Salary,Wages and Bonus
Employee Retirement GratuityUniform AllowancesEmployee Other Allowances
Bon us
5,819,949
308
31,299,994
L,436,964
103,500
1,889,668
169,350
Total--. 4F, A17 19-a
Schedule 29
CJ'NERAL ADMINIsTRATIN EXP
A{jvertisement & pulicity
Books & Periodicals
Communication Exp.
i..egal Exp.
Cffice Maintainance0tirer (administration exp.)l,flnting & StationeryI,rotessional & other fees-i ravelling & Conveyance
Total7,s49,991 1,,469,o42
40,760,591
3,344,019
103,500
1,771,673
467,406
3 16,550
1-L,708
50,397
38,9s6
417,L49
6,537,797
83,820
99,61.4
33s,856
5,954
214,775
45,5 10
252,678
17L,780
232,158
1-44,A00
66,33 1
Total
Total
)di1CrUl(]:iii.i.1 TRES'. AND FINANCE CHARGES
lnt i,nd finance charges2L643
Total2L643
Schedule 31
CPERATIG & OPERATIONAL EXPENSE(PUBLIC WORKS)Fuel, Petrol & Diesel
Reair & maintenance - lnfrastructure AssetsWater (Balk. Pur.)
Repairs & Main. Otherinsurance
Repair & Maintainance- VehicleVehicle Rent
Expendjture of Safari
1,77,648
407,578
76,089,3?1.
1,487,000
38,328
1,,973,286
422,442L9,928,O25
737,538
4,658,483
2,980,483
49,793
932,1,57
369,470
1,028,973
Schedule 32
M I5CELLANEOUS EXPENSES
Programme Exp
Election Exp1,402,259
38,049t,222,5L7
311,707
Sci;edule 33
Y(]]I\]A EXPENSES
5ari Comble Yojna Expense
5J:'ltY Expense
'fotal
t'Iotes to Accou
,As per aFor RAG(:h
nting Policies
"r*.&T,1c-Ao/,*figt@ii, .+;1q
Date:- ,2--1 1 \1- \ 1Bf)l.rce- c__\ otrrU
Office of MuniciPalStatement of Cash Flow
Board, Chomufor the FY Z0L6-L7
5. No Perticulars Amount
A, Cd h flow From Operatinq Activities
a Su rpl us/ Deficit) over exPenditure 21,99,348.93
b Add :
Non Cash ltems Debited in lncome &
Expendlture Account ;'
De p reciatio n
Add :
Non-operating ltems Debited in
lncome & Expenditure Account
( Less)
Non Cash ltems Credited in lncome
& Expenditure Account
( Less)
Non-operating ltems Credited ln
lncome & Expenditure Account
lnterest Received 75,63,780.38
C Ad ju ste c income over exPenditure before {47,64,431.45)
d. Changes in current assets and current
( Less)
(tncrease) / decrease in other current
A S SCtS
Add :
(Decrease)/ increase in Statutory
Liabilities (1,92,395,00)
Add : (Decrease)/ increase in Provisions
Add
(Decrerase)/ increase in Deposits\ioan
received (24, ss,893.00)
( Less)
(Decrease)/ increase in other current
lia bilities 1,r1,343.00
Net casl generated lroml (used in) {77,95,376.451
B. Coshftowsfro@a. (Purchase) of fixed assets & CWIP (3 6,02,16 5.00)
b.
(lncrease)/ Decrease in General
funds investments
C lnterest income received 75,63,780.38
Net cas h generated lroml (used in) investing 39,61,615.38
c Cosh flawq from financinq ac
a Grants received for specific purpose l" 1,46,64,198.00
b Reserve and SurPlus
C Emarked f und
d Municipal Fund (62,11.,646.00)
Net ca h gendrated from (used in) financing 10,83,92,5s2.00
i-q
D rurti*r"ote/ Hecre@ 10,50,58,790.93
a.
Cash and cash equivalents at beginning
of period 1"6,16,93,240.00
b
Cash and cash equlvalents at end of
period 26,67,52,031.58
E, Chanqe in Cash and Cos 10,50,58,791.58
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Additional matters to be reported by the financial statements auditor
lI
l
S.No. Additional Matters Audit Observation
Whether all sums due to and received by the
Municipality have been brought to account and have
been appropriately classified; and
Annexure-l
1 Whether all grants sanctioned or received by the
Municipality during the year, have been accounted
properly, and where any deduction is made out of such
grants towards any dues of the Municipality whether
such deductions have been properly accounted;
Annexure-2
J Whether any Earmarked Funds have been created as per
the provision of any statute and, if so, whether such
Earmarked Funds have been utilized for the purposes
for which they were created;
Annexure -3
4 Whether the Municipality is maintaining proper records
showing full particulars, including quantitative details
and situation of fixed assets; whether these fixed assets
have been physically verified at reasonable intervals;
whether any material discrepancies were noticed on
such verification and if so, whether the same has been
properly dealt with in the books of account;
Annexure-4
5 Whether in case of leasehold property given by the
municipality, whether lease rentals are collected
regularly by the Municipality and that the lease
agreements are renewed after their expiry;
Annexure-5
6 Whether physical verification has been conducted by
the Municipality at reasonable intervals in respect ofstores; Whether the procedures of physical verification
of stores followed by the Municipality are reasonable
and adequate if not, state the inadequacies in such
procedures;
Whether any material discrepancies have been noticed
on physical verification of stores as compared to stores
Annexure-6
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ffi'records, and if so, whether the same have been properly
dealt with in the books of account;
7 Whether the parties to whom loans or advances have
been given by the Municipality are repaying the
principal amounts as stipulated and are also regular in
payment of the interest and if not, whether reasonable
steps have been taken by the Municipality for recovery
of the principal and interest;
Annexure-7
8 Whether advances given to municipal employees and
interest thereon are being regularly recovered;
Annexure-8
c) Whether there exists an adequate internal control
procedure for the purchase of stores. fixed assets and
services
Annexure-9
t0 Whether there exists an adequate intemal control
procedure for the contracting of works and projects,
periodic inspections and measurements, quality checks
and payments there for
Annexure-10
1l Whether the Municipality is regular in depositing
statutory dues including tax deducted atsource, works
contract tax, cess payable to the Government, ESI, PF
etc., and if not, the
nature and cause of such delay and the amount not
deposited;
Annexure-11
t2 Whether any personal expenses have been charged to
the Municipality's accounts; if so, thedetails thereof;
Annexure- l2
l3 Whether the books and registers specified under the
Raiasthan Municipal Accounts Manualand other
applicable acts and rules have been properly
maintained; whether BankReconciliation statements
have been properly prepared for all the bank accounts oftheMunicipality;
Annexure- I 3
l4 Whether the year-end and reconciliation procedures
have been camied out:
Annexure- l4
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Annexure-l
AII sums due to and received by the Municipality have been brought to account and have been
appropriately classified subject to following:
1. Income is booked on actual receipt basis and no records available toverify the assessment for taxes f other incomes available therefore itimplies that all sums due to Municipality is not take in financial.statement for the period concerned.
2. Statement of Outstanding liabilities in the Form GEN-28 is not prepared.Therefore the double entry accounting has no conformity with AccrualConcept.
3. Qualifications in respect of income given in main report Basis of opiniolparagraph.
Annexure-2
All grants sanctioned or received by the Municipality during the year, have been accounredproperly, and where any deduction is made out of such grants towards any dues of theMunicipality and such deductions have been properly accounted subject to following:
I. The ULB has accounted Grant received and usage thereof under the Double entrvaccounting system but The ULB has not prepared register for the Grant in the fbrnratMentioned FORM: G-1
2. Grant received during the year, its Utilization, Closing Balance not matchecl rvithUtilization Certificate made by Municipality, also many grants showed in finarrcialstatements from previous years which are already being utilized in earlier years bu1 theirbalances being not adjusted against expenses done.
3. Receipt of Grant according to Head of Account wrongly done while making FinancialStatement reflects overstatement of income and understatement of liabilities and
inappropriate classification of grant, Instance are as follows:
A) Rs 3837000 dtd 1710612016 of Octroi transferred in OBC AiC from PD A/C wronglybooked as Other Anudan(Liablities) in financial statements .
B) Rs 30718000 dtd 3110312017 received as State Finance Commision Grant as per Pl)passbook, however it is trooked as Octroi Charges.
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C) Rs 11473000 dtd 1311012016 & Rs 3862000 dtd 2011212016 received as Swatch BharatMission Grant hooked under the head Grant A/c and showed as SFC Grant l'ordevlopment in financial statement in Schedule 4.
D) Rs 17725000 dtd 13/10/2016 & Rs 16260000 dtd 2210312017 received as PHED Granrbooked under the head Grant Alc and showed as SFC Grant for development in financia!statement in Schedule 4.
E) Rs 30718000/ received on3ll0ll2017 as State Finance Commission Grant-V but showedas SFC Grant for development in financial statement in Schedule 4.
Annexure- 3
Whether any Earmarked Funds have been created as per the provision of any statute and" if so.
rvhether such Earmarked Funds have been utilized for the purposes for which they were createcl.
Comment: According to the information and explanations given to us providerrt& Gratuity
earmarked fund have been created by the ULB as per the provision of statute and such earmarkccl
funds were utilized for the intended purpose But Earmarked Fund as per financial statements
made for PF& Gratuity liability does not reconciles with the acrual liability of Provident lirnd &
Gratuity employees.
Annexure-4
Whether the Municipality is maintaining proper records showing full particulars. includingquantitative details and situation of fixed assets; whetherthese fixed assets have been phl,sicalllverified at reasonable intervals; whether any material discrepancies were noticed on such
r,erification and if so, whether the same has been properly dealt with in the books of accc'runt:
Comment: The ULB is not maintaining the register of Fixed assets as per format specified in
the Form GEN-30 and GEN-31. No physical verification of fixed assets has been carried bv the
ULB, even once in the whole financial year
It has been suggested to ULB that the UI.B should prepare Fixed Assets Register in the Furnrai
prescribed and Physical verification of these Fixed Assets should be carried once in the flnancialyear.
As such we are unable to comment on material discrepancies, if any, on physical verification anri
its treatment in books of accounts.
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Annexure-5
ff'--h
Whether in case of leasehold property given by the municipality, whether Iease rentals are
collected regularly by the Municipality and that the lease agreements are renewed afier their
expiry;
Comments: No records provided to verify the same.
Annexure-6Whether physical verification has been conducted by the Municipality at reasonable intervals irr
respect of stores; Whether the procedures of physical verification of stores followed by thiMunicipality are reasonable and adequate if not, state the inadequacies in such procedures:
Whether any material discrepancies have been noticed on physical verification of stores as
compared to stores records, and if so, whether the same have been properly dealt with irr the
books ofaccount;
C'omment:', The ULB is maintaining the register of Stores. But there is no physical verification of'
stores has been carried by the ULB, even once in the whole financial year.
Municipality at reasonable intervals As such we are unable to comment on the procedures
of physical verification of stores vis-a-vis material discrepancies, if any, on ph1,'sical
verification and its treatment in books of accounts. Moreover, neither the stores has beer:
verified and valued at the year end nor same has been recognized in the accounts.
Documentations in the Format prescribed (ST-1, ST-2 and ST-3) and Physir:ai
verification of these Stores should be carried once in the financial year in the presence o{'
' the auditor.
Annexure-7
Whether the parties to whom loans or advances have been given by the Municipality are
repaying the principal amounts as stipulated and are also regular in payment of the interest and ifnot, whether reasonable steps have been taken by the Municipality for recovery of the principal
and interest;
Comment: The Municipality has granted loans to the employees against PF.
from salary are made towards the loans but PF loan given and recovered ,
balance is not traceable as per the double accounting system employee wise.
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Annexure-8
Whether advances given to municipal employees and interest thereon are being regularly
recovered;
Comment: As explained to us, Municipality has granted advance against for expenses same
being adjusted by supporting expense Bills in due course.
Annexure-9
Whether there exists an adequate internal control procedure for the purchase of stores, fixed
assets and services
SubjectMatters ofInternalControls
INrrnxaI CONTROL Aunruons CoMMENT
StoresThe Head of the Accounts Department shall ensure
budget availability with respect to the expenditure
incurred at the time of accruing of the expenditure
i.e Budget monitoring shall be on accrual basis
rather than payment basis.
Yes, The Head of Accounts
department ensures the
budget availability with
respect to the expenditure
incurred at the time of
accruing of the expenditure.
The Head of the Accounts Department shall ensure
that all the purchase bills/invoices were journalized
before release of the payments.
No Such procedure is
exists.
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At the end of the financial year, the Stores-in-
charge, the Head of the Accounts Department and
the Director Local Fund Audit shall physically
verify the stock lying in stores and compare it withthe stock as per the book records and in case ofanydifference, appropriate remedial steps as prescribed
by the LB shall be taken.
No such system tbllowed
yearly basis.
The Stores-in-charge shall ensure availability ofadequate budget allocation before procuring any
material, after considering all commitments made
against the budget allocation.
The Store-in-charge has no
such procedure of bLrclget
allocation but same is
checked through accounts.
At the time of issue of any material to the
Departments, the Stores-in-charge shall ensure that
there is an adequate budget provision in respect ofthat department.
No documents available to
verify such system.
The Head of the Accounts Department shall ensure
that all the dues recoverable including advance
provided to supplier has been recovered before
making the final payment to the supplier. Further, it
should be ensured that only net amount has been
paid to the supplier, as may be applicable to the
materials actually received or accepted.
Yes, Internal Control exists
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Before releasing payment to the supplier, the Head
of the Accounts Department shall ensure that the
material received is recorded in the Stores Ledger.
Further, it shall be ensured that the Payment Order
provides reference to the Stores Ledger where the
entry for receipt of material is recorded. In addition,
at the time of payment to Suppliers/contractors and
any other creditors it shall be ensured that no
amount is due from them, which may be adjusted
before payment.
The Head ofaccounts
department verify the store
register maintained by the
Store-in-charge and al I
procedures lollowed.
The Stores-in-charge shall ensure that materials in
respect of which bills have been received but have
not been forwarded to the Accounts Department are
stated separately in the Statement of Closing Stock
(Form ST - 3).
No such type of entnes
found in the Stores register.
All bills has been forwarded
to Accounts department as
and when material received
as informed to us, no
documents available to
verify the same.
The Head of the Accounts Department shall ensure
that the 'Purchase of Materials' account has been
reconciled at the period and the balance has become
nil on accounting of stock entries for the closing
stock(on the basis of Statement of Closing Stock in
Form ST -3) and consumption of stores.
Accounts department does
not follows this procedure.
Also the Head of Accounts Department shall ensure
that the balance in the 'Opening Stock' account has
become nil at the period end on accounting of stock
entries and consumption based on the closing
stocks.
Accounts department does
not follows this procedure.
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Separate Pay Bills shall be prepared by each DDO
and Head of department or other officer of the LBdesignated by him.
Yes, Separate pay bill has
been prepared lor each
DDO.
Consolidation of Pay Bills of DDO shall be made
Department wise and Department bills are
consolidated for ascertainment of LB level
information.
Yes, Consolidation of Pay
Bills of DDO has been
made Depafiment wise.
Consolidated pay bill summary shall be checked
with previous month for ensuring all DDO and
departments bills are included.
A monthly reconciliation shall be carried out by the
Head of the Accounts Department and the Head ofEstablishment Department or other officer of LBdesignated by the Head of the department in respect
of loans and advances outstanding between the
balances in the Ledger Accounts maintained at the
Accounts Department and the Register ofEmployee Advances and Register of Loans toEmployees. Further, at the period-end, the Head ofthe Accounts Department or other offices of LBdesignated by the Head of the Department shall
ensure that accounting entry for recording income
in respect ofinterest accrued on loans provided toemployees has been passed.
Yes, Consolidated pay bill
summary has been checked
with previous month.
No Reconciliation statement
has been prepared, however
separate loan registers
maintained but no separate
ledger maintained in
accounts department.
RAG & ASSOC'ATFSCHARTERED A CCOU}\I TA,U TS
[CkEvery month, the Head of the Accounts Department
or other officer of LB designated by the Head of the
Department shall ensure timely remittance of the
various deductions made from the employees'
salaries in the Pay Bill to the concerned authorities.
No, Proper System exists as
TDS being deposited
Quarterly.
The Head of the Accounts Department or other
officer of LB designated by the Head of the
Department shall ensure that the total establishment
expenditure incurred and recorded in the Functional
Expense Subsidiary Ledger reconciles with the
balance as per the respective Establishment
Expense Ledger Account. The Subsidiary Ledger
shall record total establishment expenses incurred,
including that paid through Pay Bill.
The ULB has not prepared
Functional Expenses
Subsidiary Ledger and
Reconciliation Statement
thereof.
Every month, the Head of the Accounts Department
or other officers of the LB designated by him or
other officer of LB designated by the Head of the
Department shall veriff that Provident Fund and
Pension Fund contribution deducted for the
employees on deputation have been deposited withthe concerned authorities.
Yes, The Head of Accounts
Department verify the
deducted amount has been
deposited timely but in
certain months timely
payment has not been made.
At every year-end, the Head of the Accounts
Department or other officers of the LB designated
by him or other officer of LB designated by the
Head of the Department shall verify whether
interest received or receivable on the provident
fund investment is less than the statutory liabilityfor interest payment to employees on their balance
in the provident fund reserve account, and if so,
ensure that the difference of interest payable is
provided for and to that extent amount has been
transfered from Main Bank Account to Provident
Fund Bank Account.
No such system followed
The Head of the Accounts Department or other
officer of LB designated by the Head of the
Department shall ensure that whenever the entries
in para 1 1.7 (b) are passed, the equivalent amount
of money in respect of deduction of provident fund
contribution is simultaneously transferred from the
Main Bank Account to the Provident Fund Bank
Account.
No, such system being
found as per Books o{'
Accounts.
0therRevenueExpenditures
The Head of the Accounts Department shall ensure
budget availability with respect to the expenditure
incurred at the time of accruing of the expenditure.
Yes, Accounts depaftrnent
ensures the budget
availability for the
expenditure.
The Head of the Accounts Department shall ensure
that all the bills/invoices were journalized before
release of the payments
No bills/lnvoices are
journalized before the$
payment.
RAG & ASSOC'ATESCrrA R IERED A CCOUfrl fA
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The Head of the Accounts Department shall ensure
proper authorisation of Payment Order as per the
authorities delegated by the LB.
Yes, Payment orders are by
proper authorization.
The Head of the Accounts Department shall ensure
that the relevant supporting
documents are annexed to the Payment Order
submitted by the Department.
No as deviation cases are
reported in Main Audit
report
The Head of the Accounts Department shall ensure
appropriate classification both in terms ofexpenditure head and the period in which the
expenditure has been accounted with reference to
the nature of the bill and the date of the bill,respectively.
No, There is no system of
classification on payment
vouchers as per double
accounting system as prior
period expenses booked in
current year.
On a quarterly basis, and, also in between, on a
random basis, the Head of the Accounts
Department shall conduct physical verification ofcash in hand held at the various departments and
tally it with the departmental records maintained
there and thereafter with the Register of Advances
(Form GEN-16) maintained at the Accounts
Department.
Yes, Accounts department
take the Physical
Verification of cash time to
time.
ffiT&dvY
At the time of making payment, the Accounts
Department shall ensure that reference to the
departmental Register of Bills for Payment where
the payment bill has been recorded by the
department concerned, is provided in the Payment
Order. In case of non-referencing, the Accounts
Department shall return the Payment Order to the
concerned Department for rectification and
resubmission. In addition, at the time of payment to
Suppliers/contractors and any other creditors itshall be ensured that no amount is due from them.
which may be adjusted before payment.
The Head of the Accounts Depaftment shall ensure
that a monthly reconciliation of total expenditure
incurred and recorded in the Departmental Expense
(Administrative Expenses) Subsidiary Ledger iscarried out with the total expenditure recorded in
several Administrative Expense Ledger Accounts.
At the time of award of new contract, the concerned
department shall ensure the availability of adequate
budget allocation after considering all commitments
made against that budget allocation before
purchasing any new fixed asset.
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FiredAssets
Yes, In the accounts
department, this pavment
control system is exists hut
no register system foLrnd
reference for work ordcr .
payee file available.
No Reconci I iation statemeltl
and Subsidiary ledger has
been prepared.
Yes at the Time of Award
ofcontract concerned
department ensure the
budget availability.
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The Head of the Accounts Department shall have a
system of conducting physical verification of fixed
assets throughout the year so that each fixed asset is
verified at least once during the year. Any
discrepancies with the Fixed Assets Register should
be reconciled.
The HOD of Accounts
department has no system
of physical verification o1'
fixed assets at least once in
the year.
The Head of the Accounts Department shall ensure
that the amount set aside in the Asset Replacement
Bank Account consequent to depreciation provision
made, is utilized only for the purpose of purchase
or acquisition of fixed asset for which depreciation
has been provided.
No Such ProcedLrre is
exists.
Before releasing payment to the supplier, the Head
of the Accounts Department shall ensure that the
fixed assets acquired are recorded in the Register ofImmovable Properties. Further, it shall be ensured
that the Payment Order provides reference to the
Register of Immovable Properties where the entry
for receipt offixed assets is recorded.
Yes
At the time of computing depreciation provision forthe period, the Head of the Accounts Department
shall ensure that the accumulated depreciation
(i ncl udin g current period's depreciation provi sion)
provided on any fixed asset does not exceed its cost
of acquisition.
There is no such system
exists.
ffis# & &$$##fsrtrsffi$d$tr rtr&ffi#,& sss#trrffi tr rsAnnexure-10
lnternal control procedure for the contracting of works and projects, periodic inspections and
measurements, quality checks and payments
SutrjectMatters ofInternalControls
INTSRNIL CoNTRoL AunrroRs coMMENT
PublicWorks
The Public Works Department and the Chief
of Accounts Department or any other
responsible officer as defined by the
applicable Acts, shall ensure the availability
of adequate budget allocation after
considering all commitments made against
that budget allocation before undertaking any
new work, whether being an Original Work
or Repairs and Maintenance Work
The ULB take the
approval from boarri
meeting of Members and
Public Works departnrenl
and HOD of accour.rt:,
department ensure thal
Whether buduet
availability for the such
public works are
sufficient or not.
A distinction should be maintained between
the works of capital nature and revenue
nature.
Yes the Accounts
department has classified
the nature of expenditure.
A quafierly reconciliation of the balance as
per the Deposit Register maintained at the
Public Works Department shall be carried out
with the Deposit Ledger accounts.
No Reconciliatiori
statement has bee r,
prepared by the Pirblir:
works department 0r
accounts departrnent
,r',.'.,;../ 7. "*'-
Lrtq.$*=;
ffis# & sss##$srtrs#trs ffi rffiffiffiffi A ffi #s #s$ rsfw r"$
On the completion of an Original Work,
reconciliation should be carried out in respect
of the amount expended as shown in the
records maintained by the Public Works
Department and the capital work-in-progress
control ledger account maintained by the
Accounts Department.
No Such type procedurc
has been fbllowed as n{l
manual ledger beinit
maintained.
On receipt of Summary Statement of Status
on Capital Work-in-Progress (Form PW - 1),
the Accounts Department shall ensure that
total expenditure incurred as stated in the
Statement tallies with the cumulative total of
several Capital Work-in-Progress Ledger
Accounts.
No Such type proccdLrrc
has been followed. as n(')
ledger being maintained.
The Accounts Department shall ensure that
the tax deducted at source and works contract
tax deducted from the contractor's bill, etc., is
deposited with the Government in accordance
with the provisions of the relevant Acts.
No, There is not proper
system for payment o1'
Statutory dues.
At the end of each month, the Accounts
Department shall reconcile the total
expenditure as per the Functional Expense
(Repairs and Maintenance) Subsidiary Ledger
(in form GEN -34) with the total expenditure
recorded in the several Repairs and
Maintenance Led ger Accounts.
No Functional expense-\
ledger and Subsidiar'
ledger prepared.
Ensure budget availability at
approval of the bi11.
time ofYes, Chief ol A.ccounts
Departmeht ensure thc
Budget availability on thc
Time of payment.
. "'::.':::i ':".
^ \"i.
,$o';:
$trs# e s$$##f*r#sStrst ffi ?-trffiffiffi
"& ####NfAtrfSEnsure that all the dues, including liquidated
damages/penalties, are recovered from the
contractor before making the final payment in
respect of any contract.
No documents provicled
to verify that Pertbrmance
quality team revieu,s tht,
works done by thc
Contractors befbre finiii
payment availablc.
Accordingly no instancc
being found tbr
recovering liquidatecl
damages/penalties in our
audit sample.
Ensure that no amount is due from
suppliers/contractors, which may be
otherwise adjusted before payment.
Yes, Chiei "f A.*rrt.idepartment ensure that nc:
advances given or n('
amount is due be f or',,'
payment.
Ensure that all the bills/invoices of
contractors were journalised before release of
the payments.
No bills/invoiccs
journalized befbrc
payment.
At period-end, the Head of the Accounts shall
review the Work Sheets maintained for
ascertaining whether any of the capital work
in progress qualifies for capitalisation.
No Such procedure is
followed by Accounts
department.
&,(\ffi & ffi$$##fffi?-ffisil.:il,'f.$fqffiffitr# S###fld#tr&tr3"$ .'r
Annexure-l1
Whether the Municipality is regular in depositing statutory dues including tax deducte6 at
source, works contract tax, cess payable to the Government, ESI, PF etc., and if not, the natureand cause of such delay and the amount not deposited.
comment: No statutory dues such as tax deducted at source, sales taxdeposited timely1.In case of TDS on sa-lary not booked as current liabilities, it is wrongly
booked as Salary expenses so we cannot comment on same also no head ofTDS being showed in Statutory liabilities as per financial statement.2' Provident Fund, Gratuity, Pension not shown as current liabilities infinancial statements so we cannot comment on same.i]. income Tax deducted but not deposited on time instance.
S.N
o
For the
Month
Amount Nature Due date ofPayment
Date of ActLral
payment
I Apr. 16 221281- Income Tax 07-May-16 04-July- l62, May 16 8935t- Income Tax 07-June- 1 6 04-July- 16
4. S h ort Puy ment/ No n-P ay ment
Following Amount were outstunding tiil 3l-march 2017
4. However the following expenditure required to be deduct Income Tax but notdeducted:
'.-i
lI
Ii
l
t"l
ry4,- ) :-'. *-_"- ,n-,' '*.i.i,i-: , ^'
r!\q.r+--
Period Nalure Amount
201 6-t 7 Lubour cess 8,46,911/-(Opening
Bulance pending)
Date/V.no. Head ofExpenditure
Amount ofExpenses
Type ofDeduction
required
Amount to
be
Deductetl08.03.20r 7 Swarch Bharat
Mission Expenses
(Amount Paid to C
Shrinivasan for
Technical Training)
51121t- lncome tax 10%
fl#ffiffi & -4$S##$Srffi$
#trs $? r#ffiffiffi A s# ##ffi y&tr r$
Annexure-12
Whether any personal expenses have been charged to the Municipality's accounts; if so. thedetails thereof;
Comment: To the best of our knowledge and according to information and explanation given tous, No Personal expenses have been charged from ULB's accounts.
Annexure-13
Books and registers specified under the Rajasthan Municipal Accounts Manual and other
applicable acts and rules:
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
Cash Book The Cash Book has two sides" GEN.I Yes rliviz., "Receipt" and "Payment".tAll collections on behalf of theiLBs shall be recorded on the"Receipt" side and all
Properll,by the
payments shall be recorded onthe "Payment" side
Journal Book
Ledgers
A non-cash/bank transaction islfirst recorded in the JournalrBook by dividing into its debitiand credit aspects. from which
ia posting is done in thelrelevant ledger account.iRecording of income in respectof Taxes Bills raised,recording of liability on receiptof supplier's bills are examples'of transactions. which shall befirst recorded in the JournalBook.
Ledgers shall be the book thatshall contain all the accounts
las specified in the Chart ofiAccounts. The Ledger has twocolumns, viz, "Debit" (Dr.)and "Credit" (Cr.).
Not Maintained hythe ULB based onday to day totransaction. In thc
]Double entrv
]Accounting Ledge rs
are maintained.GEN- voucher
receipt
The Cash Receiptshall be prepared for
Voucherreceipts
]Accounting a non-i cash/bank transacti on
iis first recorded in the.lournal Book.
Cash/Bankl4A &
ash receipl
ffi&ffi & -4$S###SrffiS#tr'A ffi ?-Sffiffi# & ####&dyAtr fls
Voucner lor recelpts by 1
cheques. demand drafts.banker's cheques, etc., whichneed to be deposited in thelbank for realisation.
Cash/Bank iCash/Bank Payment VoucherPayment Voucher shall be the document prepared
fbr recording payment entriesin the Cash Book/Bank Book
GEN-5,A&5B
Cash/Bank PaymentVouchers have beenprepared
No Contra Voucherhas been prepared
rl Journalpreparecl
cash/bankvoucher
Contra Voucher Contra Voucher shall be adocument lor depositing intoor withdrawing cash from bankor transferring amount from
document prepared forrecording entries in the JournalBook
]xo erryslVoucheronlv)ne\/mahf
l
i
rfr,Lt l. ;>,< ]
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
Receipt Voucher lin cash and the Bank Receipt,Voucher for receipts bv
4B voucher have been
oreoared.
payment vouchermade which has allsuooortinss.
Receipt For receipt of cash or anyamount received in the form ofcheques/draft, a Receipt, dulysigned and dated shall beissued in Form GEN-S
GEN-8 Yes ULB has beenissued a receipt fbrany cash or Banl<
receipt.
Receipt Register All cheques/drafts receivedshall be recorded in a ReceiptRegister, maintained in FormGEN-9
GEN-9 No Such registerprovided to verify thesame.
Statement onStatus of ChequesReceived
The details should be intimatedto the Accounts Department bythe Collection Office/Centrewho have actually depositedthe cheques and co-ordinatingwith the bank, through aStatement on Status ofCheques Received, prepared inForm GEN-10. Based on theStatement on Status ofCheques Received the
GEN-10
No Such statement as
all done through Cash& Accounts.
ffi&# & &ss##pArms#sdA ffi Fffi ffi## s ###{"Jtr rA,v r$
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
Accounts Department shallreverse the entry passed
CollectionRegister
The Collection register to bemaintained in Form GEN-llwill show account head-wisedetails of the daily collections.This collection register shall be
maintained in triplicate wherein one copy can be sent to theconcerned departments alongwith one copy of theBill/Challan collected, if any,one can be sent to theAccounts and other one will be
retained as book copy.
GEN.1l
Collection register is
not maintained as
specified, allcollections sentthrough challan byconcerneddepartment toAccounts.
Summary ofDaily Collection
Based on the details from thecollection register, thecollection offices shall preparea Summary of Daily Collectionin Form GEN-]2.
GEN-l2
Summary of DailyCollection in FormGEN-12 is notprepared
Register of Billsfor Payment
The concemed departmentshall verify the bills/claimsreceived. On satisfactoryverification, the bills/claimsshall be entered into theRegister of Bills for Payment,maintained in Form GEN-13.
GEN-13
There is no registerfor this, only files fbrparticu lal payee is
maintained.
Payment Order On approval of the payment bythe concerned authorities at therespective departments, thedepartment shall forward thebills for preparing a paymentorder by the concernedDepafiment in Form GEN-14
GEN-14
Yes, Maintained.
Cheque IssueRegister
On verification of theCash/Bank Payment Voucher,a cheque shall be prepared. Anentry of the cheque prepared
shall be made in the ChequeIssue Register, maintained in
GEN-I5
Yes. Maintained.$
ffiffi# &.e$s##.f$yffis#'$s-4ffi ffiffiffis e ##s{JNr"strrs
f,A\./r \
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
Form CEN-15.
At period end, the AccountsDepartment shall review theCheque Issue Resister
Register ofAdvance
The details of the advancesgiven shall be recorded in theRegister of Advancemaintained in Form GEN- l6
EN.G
16
Register ol advanceis maintained.
Register ofPermanentAdvance
The details of the expenditureincurred against the advanceshall be recorded in a Registerof Permanent Advancemaintained at the variousdepartments in Form GEN-17.
GEN-t7
No register ofpermanent advancedeoaftment wise.
Deposit Register Depositsreceived/paid/deducted shallbe recorded bv the ULB
GEN-18
Yes, ULB has beenmaintained DepositRegister.
SummaryStatement ofDepositsAdiusted
Deposit adjusted shall berecorded properly in this Form
GEN-l9
Not maintained, alldone in one register.
Demand Register Bills raised by the LB for therevenue collection is recordedin the Form GEN-20
CEN-20
No such registerprovided forverification.
BiIl for MunicipalDues
Municipal Dues bill shall berecorded in GEN-21
GEN-21
Not maintainedcovering all incomcheads.
SummaryStatement of BiIIsRaised
Summary Statement of BillsRaised shall be prepared inform GEN-22
GEN-22
No Summar,v-
Statement of BillsRaised has been
oreoared.
Register of NoticeFee, WarrantFee, Other Fees
Register of Notice Fee, WarrantFee, Other Fees shall beprepared in Form-23
GEN-23
No specific Registerof Notice Fee.
Wamant Fee, OtherFees found but allavailable in file and
dispatch register.
SummaryStatement ofNotice Fee,
Summary Statement of NoticeFee, Warrant Fee, Other Fees
shall be prepared in the form
CEN-24
Summary Statementof Notice Fee.
Warrant Fee, Other
..,r,"'i.ii,.j" !'-.*-*.- I
r,, (] ,,
ifi@)
tr&# e ssssffidffir'ffiss\i{"$ N Ydf ffiffiffi ffi ffi S$#tr ?"A tr 3"S
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
Warrant Feeo
Other Fees
GEN.24 Fees has not been
prepared
Register ofRefunds,Remissions andWrite-offs
Register of Refunds,Remissions and Write-offsshall be prepared in the formGEN-25
rl EN-z5
Register of Refunds.Remissions and
Write-offs has notbeen prepared
SummaryStatement ofRefunds andRemissions
Summary Statement of Refundsand Remissions shall beprepared in the form GEN-26
rl EN-z6
No Summan,Statement of Refundsand Remissions has
been prepared
SummaryStatement ofWrite-Offs
Summary Statement of Write-Offsshall be prepared in theform GEN-27
J
27
E,N- No SummarvStatement ol- Write-Offs has been prepared
Statement ofOutstandingLiability forExpenses
For this, at the end of theaccounting period, each of thedepartments shall collate thedetails of the accruedexpenditure from the billsreceived during or after theaccounting period butpertaining to the accountingperiod and remaining unpaid atthe end of the accountingperiod. The said informationshall be collated in FormGEN-28 by 30th April of thenext financial year where theaccounting period is a financialyear
GEN-28
Quarterly Statementof OutstandingLiability forExpenses in the fbrmGEN-28 has not beenprepared.
DocumentsControlRegister/StockAccount ofReceipt/ChequeBook
Documents ControlRegister/Stock Account ofReceipt/Cheque Book shall beprepared in the Form GEN-29
GEN-29
Not prepared.
Register ofImmovableProperty
A record shall be maintainedfor the immovable fixed assets
in the relevant Register ofImmovable Property in FormGEN-30
GEN-30
Register ' ofImmovable Propertyhas not beenmaintained properly.
-,'
RAG & Assoc,nr's ifle ]cffAffirtrRES ACCOUTVIAfiJTS d. \-._ .",
Name of Record/Register
Requirements AuditorsComments
Register ofMovableProperty
A record shall be maintained fothe moveable fixed assets in theRegister of Moveable Propertyin Form GEN-31.
Registsr of MovableProperty has beenmaintained.
Register of Land A record shall be maintained fothe land in the Register of landin Form GEN-31.
Register of land hasnot been maintained
f,'unction-wiseIncomeSubsidiaryLedger
The Accounts Departmentshall maintain separateSubsidiary Ledger for each ofthe Major revenues in FormGEN - 33. The SubsidiaryLedgers would providefunction-wise break-up of
rned/received by the LBs ona dally basis. Separate foliosshall be maintained for eachfunction within the SubsidiaryLedger for recording incomesin respect of each function
No Function-wiseIncome SubsidiaryLedger has beenmaintained by theULB.
Function-wiseExpenseSubsidiaryLedger
Accounts DepartmentI maintain separate
Subsidiary Ledger for each ofthe Major expense head inForm
34. The SubsidiaryLedgers would providefunction-wise break-up of
mentioned expensesincurred by the LBs on a dally
GEN-34
No Function-wiseExpenses SubsidiaryLedger has beenmaintained by theULB.
AssetReplacementRegister
Replacement Register rnorm GEN-35 shall be
intained asset class-wise tothe money set aside and
ll be updated for depositsto Asset Replacement
iank Account in respect ofnnual depreciation provision
during the accounti
GEN-35 Replacement Register
has been maintained.
RAG & ASSOS'ATESGffAft TERED A CCOU'UTA'U TS L@
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
year
Register of PublicLighting System
Register of Public LightingSystem shall be maintained inthe Form GEN-36
GEN-36
Not maintained
RECORDS AND DOCUMENT RELATED TO RrNraLS, FEES &Ornrn lNconrss
STATEMENT OFDEMAND RAISEDON ASSESSMENT
The respective departmentsshall intimate the AccountsDepartment of the advanceadjusted against thesubsequent bills raised throughthe Summary Statement ofBills Raised (Form OTH - 1)
OTH-I Not maintained
SUMMARYSTATEMENT OF'YEAR-WISE IIEAD-WISE COLLECTIONOF'OTHERINCOMES
A Summary Statement ofYear-wise/ Head-wiseCollection of various otherincomes in Form OTH-2 shallbe prepared on a monthly basisby the respective departmentsand sent to the AccountsDepartment to record thedetails of collection.
OTH-2 Not maintained
STIMMARYSTATEMENTOFREFUNDS
A Summary Statement ofRefunds and Remissions inForm OTH 3 shall beprepared by the respectivedepartments on monthly basis.Refunds / Remissionspertaining to prior period shallbe identified separately fromthe current period
OTH-3 Not maintained
SUMMARYSTATEMENTOFWRITE OF'F'S
The details of the write off hasto be entered in the 'statementof Write ofl by the respectivedepartments in Form OTH - 4.This form has to be preparedon a monthly basis andforwarded to the AccountsDepartment
OTH-4 Not maintained
RBCORDS AND DOCUMENT RELATED TO PusLTc Wonxs
RAG & ASSOC'ATEScffA& rEREn .{ CCOUfiTTA IU rS ice\'--
-'/
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
SUMMARYSTATEMENTOFSTATUS OF CAPITALWORK-IN-PROGRESS/DEPOSITWORKS
At period-end, the departmentsincurring expenditure oncapital projects shall submit aSummary Statement of Statuson Capital Work-in-Progressin Form PW - 1 detailing totalexpenditure incurred till dateon each of the capital prolects
PW-1 Not, maintained
WORK SHEET The details of the Depositworks contract (includingnames of the departments whohave entrusted the depositworks) shall be recorded in theDeposit Works Register (formPW - 2).
PW-2 Not maintained
DEPOSIT WORKSREGISTER
The Accounts Departmentshall maintain a DepositWorks Register in Form PW-3with separate registers for eachkind of the Deposit works.(For example, Civil, Electrical,etc).
PW-3 Not maintained
RXCI }RDS AND DOCT MENT RELATED TO STO RESMATERIALRECEIPT NOTE
As per the terms of theagreement with the Supplier,the materials shall be deliveredto the LB. The Stores shallprepare a Material ReceiptNotein Form ST-1
ST-I Yes Store in-chargeprepare a MaterialReceipt Note in FormST-1
STORES LEDGER From the Material ReceiptNote, the Stores shall recordthe receipt of materials in theStores Ledger maintained inForm ST-2
If the materials supplied arefound to be defective or not inaccordance with the termsspecified in the agreement, theStores shall return it back tothe supplier concerned andmake an entry for return of
ST-2 Store Ledger ismaintained.
,."1:p,n.. '
,.r i.,.6r,,
ffiAG &.ASSoSrArrssrrAR rtrRgn
"4 ccouf,rrAff rs
Name of Record/Register
Requirements
material in the Issue of therelevant folio in the StoresLedser (Form ST - 2
ATEMENT OF'
oN 31/03/2017
Form ST - 3.
The balances in variousaccounts of the item-wiseStores Ledger shall be
At the end of every accountingiod, the Stores shall send a
of Closing Stock in
and valued as perFirst In First Out (FIFO)
been prepared in theform ST-3 by Storein-charge, howeverall taken as openingbalance in nextfinancial year.
No Statement ofing stock has
RECORDS ANDTRANSACTIONS
DOCUMENT RELATED TO EMPLOYEES RELATED
SUMMARY ROLIoF TI;PERMANENT/TEMPORARYESTABLISHMENTF'OR THE MONTHoF
Salary pay bill shall beprepared in the Form ES-1
Yes, salary pay billhas been prepared
REGISTER OF'EMPLOYEE LOANS/ADVANCES
payment of loans andadvances by the LB, theRegister of Employee Loans /Advances (Form ES-2) shallbe updated by the AccountsDepartment. These registersshall be maintaineddepartment-wise.
Yes, Maintained.
REGISTER OF'INTEREST ONLOANS TOEMPLOYEES F'ORTHE YEAR
Register of Interest on Loansto Employees maintained inForm ES-3 for recovery ofloans and interest respectively
Yes, Maintained.
UNPAID SALARYREGISTER FOR TIIEYEAR
If the salary remains unpaid tothe employees, it shall berecorded in the Unpaid SalaryRegister maintained in FormES-4. The register shall have
o unpaid salary forthe during the FY2016-17 as per Booksof Accounts doubleentry system, no such
S.No
Narne of Record/Register
Requirements No ofForms
AuditorsComments
the details for unclaimed salarym well as subsequent paymentrf salary
manual registerfound.
REC ORDS AND DOC IMENT RELATED TO GRANTSGRANT REGISTER G-1 Not maintained
RECtDRDS AND DOCI MENT RELATED TO BORROWINGSREGISTER OF'LOANS
The amount borrowed as perthe terms of sanction shall beentered in the Register ofLoans in Form BR-lmaintained by the AccountsDepartment of the LB
BR-I Not required.
REGISTEROF'DEBENTT]RES
In case, sanction has beenobtained for issuingdebentures, the particulars ofthe debenture holder shall berecorded in the Register ofDebentures in Form BR-2.
BR-2 Not required.
R"EGISTER OF'SINKING F'I'NDS
Register of Sinking fund shallbe prepared in the form BR-3
BR-3 Not required.
RECORDS AND DOCUMENT RELATED TO SPECIAL FUNDS
SPECIAL F'UNDSREGISTER
Special fund receivedcreated shall be maintainedthe register of from SF- I
orin
SF-1 Not required.
RECORDS AND DOCI"IMENT RELATED TO INVESTMENTINVESTMENTLEDGER/REGISTER
lnvestment ledgers and registershall be prepared in form IN-l
IN-I Not maintained.
CALCULATIONSI{EET F'ORPROVISION FORDIMINUTION INVALUE OF'II\TVESTMENTS
F'OR TIIE PERIODENDING
CALCULATION SHEET FORPROVISION FORDIMINUTION IN VALUE OFINVESTMENTS FOR THEPERIOD ENDING shall beprepared in the form IN-2
IN-2 Not required.
RE,C()RDS AND DOCf.MENT RELATED TO LOAN AND ADVANCES
REGISTER OFLOANS TO OTHERS
The loans to Others shall beentered in the 'Loans to Othersregister' in Form LA -1 and on
LA-1 Not required.
&AG &,AS$OCTATES
srfstrrgREs AcsoufiIrAr$rs d' i'!&
,, - lsG{r^\..,tf*.-{r+\t{@,^}ij
RAG & ASSOC'ATESffiHA tr TERES A ESOUfrJIAfi. TS
Annexure: 14
YearlPeriod end and reconciliation procedures
i(7si
S.No
Name of Record/Register
Requirements No ofForms
AuditorsComments
a monthly basis
RECORDS AND DOCUMENT RELATED TO BUDGET
Budget Budget shall reflect theprinciples and programmes ofthe LB. Budget must alsoenable LB in measuring andpromoting accountability inrespect of service delivery.
BUD-ItoBUD-12
Yes, Budget has beenprepared in thespecified formats.
Opening BalanceSheet
Balance for the Balance Sheetshall be taken from the formPrepared.
Form-1toForm29
No form has beenprepared for theOpening Balancesheet.
S.No. YEAR END PROCUDURES AUDITORS COMMENTSAssignedRevenue
At the period end, it shall be ensured that
all the Receivables of Assigned revenues
are reviewed and written_gS, if considered
necessafY
Further, the accounts department shall also
ensure that the necessary reversal entries
are made for assigned revenues received in
the current accounting period, which were
accruedin the previous period
No receivable of assigned revenue
accrued during the preceding
financial years or current financial
year in double accounting and
manual.
Therefore, No Receivables of
Assigned revenues are reviewed at
the end of the financial years.
PublicWorks
The details of the Deposit works contract
(including names of the departments who
have entrusted the deposit works) shall be
recorded in the Deposit Works Register (in
The Public works department and
chief of accouqts department
prepared the summary statement as
per own requirement but this
RAG & ASSSC'ATESC H A RT E R E D .4 CCOUff TA TV TS lcer
form PW - 3).
At period-end, the departments incurring
expenditure on Deposit Works shall
submit a Summary Statement of Status on
Deposit Works Expenditure maintained
category wise as Civil, Electrical and
Others in Form PW - I (similar to Capital
work in progress) detailing total amount of
works incured till date on each of the
Deposit Works. The details of total
expenditure incured on each of the
Deposit Works can be collated from the
Work Sheet (similar to Capital work in
progress) in Form PW - 2
not conformity with the
Municipal accounts
procedure
Rajasthan
Manuals.
IS
Investment At period-end, interest shall be accrued on
investments made from the date of last
receipt of interest till the end of the
accounting period. The accrual of interest
shall include both interests due for receipt
and interests not due for receipt.
No such system exists.
FixedAssets
Recording of liability for fixed assets
purchased for which palrment has not been
made. At period end, the concerned
departments shall ensure that for bills in
respect of all the fixed assets received
before the last date of the accounting
period are processed
Since it is recorded in the formGEN-28, but ULB is not preparingthe form GEN-28, Therefore thisyear end procedure is not followedby accounts departments.
Lease ofLand
Accrual of ground rentals: The Revenue
Department shall identiff the total ground
rentals due for the period under reporting
No accrual of ground rental at the
end of the financial years. And No
reconciliation statement or
comparative statement has been
t
RAG & ASSOC'ATESCHA R TERED A CCOUff TA f,, TS
and compare the same with the ground
rental income recognised till date in the
books and account fordifferences ifany.
prepared.
Grxrnnr, Prmoo-END PRocEDURES
,#t.xii(@*rj&EdY7
RAG & ASSOC'ATESCF'A R TEREO A CCOU'VIAff TS
1'- '\
tq&r,S.No.
PERIOD END PROCEDURES AUDITORS COMMENTS
DailyProcedures
a. Balancing of Cash Book: The Cash
Book shall be totalled and balanced
daily. The posting of the day's
transactions shall be made in the
respective Ledger Accounts by the end
ofthe day
Physical verification of cash balance:
Cash available with the Accounts
Department shall be physically verified
by the Cashier. The values and
denominations of the cash physically
verified shall be noted in the Cash
Book itself
Deposit of collections (both cash and
cheque) in the Bank: The cash and
cheque collection shall be remitted to
the Accounts Department or deposited
with the Bank (Main Bank orDesignated Banks) in the manner and
in accordance with the procedure
provided for in Chapter 4- General
Accounting Procedures. Carc has to be
taken that the money is remitted ordeposited either on the same day or by
the next working day
Checkinq of ledser accounts with the
books of original entries. i.e.. Cash
Book and Journal Book: The dailypostings of the entries in the Ledger
Accounts from the Cash Book and the
Journal Book shall be checked and
certified by the Head of the Accounts
Department or other designated officer
b.
c.
d.
The cash book is totaled and
balanced daily basis. But no
posting of day's transaction in to
ledgers on daily basis.
Yes, cash available withaccounts department is
physically verified on daily
basis.
The cash, cheque and demand
draft collected in a day is
deposited in the bank with in
same day or on next working
days.
Since Statement of cheque
received in the form GEN-10 is
not maintained therefore it is
difficult to remittance position
ofthe cheque.
No Ledgers and Journal Books
have been prepared on the daily
basis.
&AG &,A$SOCTATES'
CffA F TERED A CCO {."TI TAfiT rS i@je. Verification of number of receipts
issued as reported by the collection
office with the Collection Resister: On
receipt of Challan for Remittance ofMoney from the Collection Office, the
Head of the Department supervising
the functioning of the Collection
Off,rce shall verifi, the duplicate copies
of the receipts issued with the entries
made in the Collection Register
Updation of Subsidiar), Ledger: The
Accounts Department shall update the
following Subsidiary Registers at the
end ofeach day:
i. Functions wise Income Subsidiary
Ledger in respect of all major
heads of Income during the day;
ii. Functions wise Expense Subsidiary
Ledger in respect of all major
heads ofExpenses during the day
The ULB has not maintaining
the collection register on daily
basis. Only challan book is
maintained by the ULB.
Functions wise Income
Subsidiary Ledger in respect ofall major heads of Income
during the day and Functions
wise Expense Subsidiary Ledger
in respect of all major heads ofExpenses during the day is not
maintained by the ULB.
,yl :. ' .--r;
trAG & ASSSST*rESffi$fAfi TEREB .S CCOU'\JTAIU TS [@rMonthlyProcedures
a. Bank Reconciliation: Bank
c.
Reconciliation shall be carried out for
each of the Banks either on a monthly
basis or for such shorter time interval
as the LB may decide. The procedure
for bank reconciliation has been
provided in Chapter 24
Reconciliation Procedures.
Recording of expenditure incurred
against permanent advance: At the end
of each month, the Head of the
Department, to whom permanent
advance has been disbursed, shall
prepare and submit a payment order
for expenses incurred against the
permanent advance
Payment of provident fund dues and
pension contribution in respect ofemployees on deputation. The
Accounts Department shall ensure that
the provident fund deducted from the
salaries of the employees on deputation
and the pension contribution payable
for their benefit have been paid on time
to the Government.
Reconciliation of Function wise
Income/Expense Subsidiary Ledgers
with respective ledger accounts:
Subsidiary ledgers of all Function wise
Income and Expense shall be
reconciled.
Closing of ledger accounts: The ledger
accounts shall be totalled and balanced
at the end of each month or such
shorter period as the LB may decide
ULB has been prepared the
Bank reconciliation statement on
the monthly basis.
The register of permanent
advance is not maintained by the
ULB as informed advance given
for expenses adjusted after bills
being submitted.
The accounts department
remitted the amount deducted
from salary of PF, Gratuity,
Pensionetc on time basis except
few iregularities.
No reconciliation statement has
been prepared.
No ledger accounts maintained
on daily basis, therefore no
question of closing of ledger at
end of month.
b.
d.
RAG & ASSOC'ArES#,f-4 R TEREP,{ CCOU'V TA N rS
/'
lae I
)
QuarterlyProcedures
a. Reconciliation of deposits. advances.
receivables and income: The deposits
received from contractor/supplier or
any other deposit; advances provided
to contractor/supplier or to the
departments or employees of the LB;receivables in respect of various
sources of income and money received
from various sources of income shall
be reconciled at the end of each
quarter. The procedure forreconciliation has been described inChapter 24- Reconciliation Procedures.
b. Provision for period-end expenses: Atthe end of an accounting period
(quarter), all the departments of the LBshall prepare a Statement ofOutstanding Liability for Expenses inForm GEN - 28.
i. Provision for expenses incurred on
original work/ operations ormaintenance
ii. Provision for materials purchased
iii. Provision for revenue expenditures
iv. Provision for interest accrued but not
due on the money borrowed
v. Provision for fixed assets purchased
vi. Provision for Depreciation on Fixed
assets
c. Transfer of revenue grant received inadvance for specific purpose to grant
income. The balance in the Revenue
Grant Account received in advance, to
the extent utilised during the period
No reconciliation statement ofdeposits like EMD, SD etc has
been prepared with double
accounting system.
No reconciliation statement ofadvances has been prepared.
No reconciliation statement ofvarious sources of income has
been prepared.
Since the ULB has not preparing
the Statement of outstanding
liabilities for expenses in the
form specified GEN-28.
Therefore no provisiqn is made
at end of quarter for the any
expenditure as mentioned in list,
neither maintained in double
accounting system, accrual
concept not followed.
No such system followed whilemaintain dduble entry
accounting system as per
accounting standard.shall be transferred to the respective
RAG & ASSOC'ATESCff*R TEREO 4 CSOUi,TA'" TS
d.
Grant Income Account
Recognition of grant income for
revenue expenditure incurred inrespect of grant receivable as
reimbursement. The revenue
expenditure incurred during the period
towards specific projects/schemes
under a grant receivable, as a
reimbursement shall be recognised as
income at the end of each quarter
Accrual of interest on borrowings:
Interest charges on loans received,
which is not due shall be accrued,
Recording of provision for bills
remainine unpaid in respect of Special
Fund expenditure
Accrual of interest on investments.
Interest accrued but not due on
investments made shall be accrued
Accrual of interest on loans and
advances to employees. The amount ofinterest accrued in respect of loans
provided to employees shall be
determined and accrued.
Reconciliation of Capital Work inProeress: Expenditure incurred on
cumulative total of several Capital
Work-in-Progress Ledger Accounts
should be reconciled at the end ofeach
quarter with the Summary Statement ofStatus on Capital Work-in-Progress
received from the department.
(}
.L Passins of adiustrnent entries: At the
period-end, the Accounts Department
shall verify whether proper distinction
No such system followed while
maintain double entry
accounting system as per
accounting standard.
No loan has been shown in the
Balance sheet of the ULB.
No Provision is made for special
fund expenditure.
Accrual entries not made for all
the investments.
No accrual of, interest on loan
and advances to employees.
No Reconciliation statement is
prepared.
Yes identification done but not
properly followed in double
h.
1.
-.!
;;i rS,.. .
RAG & ASSOC'ATESC H A RT E RE D A CCOU'I TA'U TS
has been maintained between revenue I accounting system.
and capital transactions and between
the transactions having effect in two
accounting periods
k. Closing of ledger accounts: The ledger
accounts shall be totalled and balanced I No Ledgers has been prepared
at the end of each quarter or such I by the ULB, therefore no
shorter period as the LB may decide I Questionofclosingof ledger.
for preparation of Financial
Statements.
RAG &,{SSOCIATESCT'A ft TERED A CCOU'!TA'VTS
a. Physical verification of stores: The
physical verification of stores and
consumables shall be carried out at
least once in a year on the last day ofthe accounting year and at such time
intervals as the LB may decide. The
verification shall be carried out by the
Stores-in-charge in presence of the
personnel of the Audit Department
Physical verification of fixed assets: ACommittee consisting of Municipal
Commissioner, Head of the Accounts
Department, Head of the Public Works
Department and such other
representatives as the LB's Statutory
Authority resolves, shall be formed.
The Committee shall ensure the
existence of a system of conducting
physical verification of fixed assets
throughout the year so that each fixedasset is verified at least once during the
year
Transfer of funds from special funds:
The balance in the Special Fund shall
be transferred to the Special Fund
(Utilised) on construction or purchase
or acquisition of fixed asset at the time
of capitalisation of the relevant
expenditures into fixed asset
Confirmation of all categories ofadvances. At the end of the year, the
Accounts Department shall obtain a
confirmation from all the persons to
whom the advances have been
provided
No Physical verification ofstores at least once in the
financial year.
No Physical verification of fixed
assets has been carried out
during the financial year.
No such system followed while
maintain double entry
accounting system.
No Confirmation has been taken
from all categories of advances
at the end ofthe year.
AnnualProcedures
b.
c.
d.
tr46 & AS$OCTATES
#F'Atr Ttr&FN A CCOUff TA'U TS ;(.A\^-_.- -.
e. Provision for unrealised revenue: Aprovision shall be made for the
demands raised during the accounting
period but remaining outstanding.
Accounting of prepaid expenses. Atthe year-end, all the expenses shall be
scrutinised to identify those expenses
whose benefit is likelv to accrue in the
next year
Contribution of difference in interest to
the provident fund. The difference
between the interest earned on
Provident Fund investment and interest
payable on Provident Fund
contribution to the employees shall be
contributed by the LB and an amount
equivalent to the difference shall be
transferred from the Main Bank
Account to the Provident Fund Bank
Account.
Confirmation from Government/Ouasi-
government and Government owned
agencies. At the end of each
accounting yeffi, the Accounts
Department shall prepare and forward
a balance confirmation statement to
Government and Quasi-governmentand various government owned
agencies in the format as prescribed inChapter 24- Reconciliation Procedures
Closing of ledger accounts. In addition
to closing ofledger accounts at the end
of each quarter, the ledger accounts
shall be balanced and totalled at the
end ofeach accounting year
No provision has been made for
the unrealized or doubtful
revenue receivables
Such expenditure has occurred
in the ULB,But no treatment olPrepaid expenses has been
made.
No such system followed.
No such steps have been taken
by the accounts department ofULB.
No ledger has been prepared.
In the double entry accounting
ledger has been c'losed at the end
ofyear.
f.
Cr
h.
l.
RAG & A$$OG'ATESCHAR TEREO ACC O U N TA'UTS
Limitations of Audit
Limitations of 'RAG & ASSOCIATES'work are as under:
in carrying out the assignment as per the scope of
'RAG & ASSOCIATES' has restricted the scope of work to 'Terms of Reference'only.
'RAG & ASSOCIATES' has undertaken the audit in accordance with generally
auditing standards, guidelines issued by ICAI.
In performing the review and verification, the work, 'RAG & ASSOCIATES' has
relied entirely on:
o Financial and expenditure report/ details provided by the Accounts departmentof the ULB.
o Other information, schedules, reports and explanations as given to us duringand in connection with our audit.
o Report includes comments on those accounting issues/ accounting policies,which are material and are not in accordance with the Rajasthan MunicipalAccounts Manual.
o 'RAG & ASSOCIATES' has assumed the genuineness of all the documents and
signatures thereon as if they were originals and also that the copies confirm tothe originals.
o Transactions and events which are not recorded and which were not disclosed
to RAG & ASSOCIATES may not have been identified in the procedure.
The working papers, prepared in conjunction with the work are the property of the
firm, constitute confidential and proprietary information and will be retained by
'RAG & ASSOCIATES' in accordance with Firm's intemal policies and procedures.
'RAG & ASSOCIATES' has no responsibility to update the report for events and
circumstdnces occurring after the date of report.
Books of Accounts are reconstructed from orignal records which are provided foraudit.
This report is for the year 2016-17 and is confidential being for use or\ly to whom it isissued. It must not be quoted, cited, copied, disclosed or circulated, or referred to incorrespondence or discussion with any other person or made public except to a person
to whom it is issued.