Internal Audit Report 2015-2016

INTERNAL AUDIT REPORT ON THE TRASACTIONS CARRIED OUT BY  HALDIA  MUNICIPALITY DURING THE PERIOD FROM 01.04.2015 TO 31.03.2016

 

Sl. No.	Part	Para	Description	Page No.
1			EXECUTIVE SUMMARY
2	Part  I	1.1	Introduction	1
3		1.2	Administration	1
4		1.3	Status of Annual Accounts	2
5		1.4	Receipts & Expenditure Budget	3
6		1.5	Advance & Adjustment	5
7		1.6	Debt Service / Loan Position	5
8		1.7	Position of Investment as on 31.03.2016	6
9		1.8	Thirteen Finance Commission Grant	7
10		1.9	AMRUT Grant	7
11		1.10	Internal Control / Internal Audit	7
12		1.11	Defalcation, Loss, misappropriation of Municipal Fund	8
13	Part II	1	Irregularities in Tendering Process	9
14		2	Progress Report of Works of IHSDP.	9
15		3	Resource Mobilization	14
16		4	Defaulter in collecting cess  under Building and other Construction Workers’ Welfare Cess Act,1996  from commercial & industrial constructions	23
17		5	Irregularities in implementation of West Bengal Urban Employment Scheme	23
18		6	Irregularities in implementation of Mid Day Meal Program objectives	25
19		7	Non Reconciliation of Provident Fund Balances	26
20	Part III	1	Review of audit qualifications in earlier reports yet to be resolved	27
21	Part IV	1	Vouching Report	28
22		2	Physical Verification  of Store items and Furniture & Fixture	30
23		3	Cash Verification	33
	ANNEXURE		Statement of Stall Rent dues more than 2 years

 INTERNAL AUDIT REPORT OF HALDIA MUNICIPALITY FOR THE PERIOD FROM 01.04.2015 TO 31.03.2016

 P A R T  - I

 

• Introduction

 

Haldia Municipality was established on 1^st September,1983 .The Municipality had population as per 2011 census of 210194 under 26 wards spread over 109 square km.

 Internal Audit of Haldia Municipality was conducted by M/s S . Manna & Co.

 ( Chartered Accountants ) for the period from 01.04.2015 to 31.03.2016 as per appointment vide Memo no. – 1301/HM/2017 dated 10.03.2017. The Audit was carried out by Mr. S. Manna , FCA ( Proprietor ) and senior Audit Assistant Mr. Debasish Biswas during the period from 02.05.2017 to 07.06.2017.

 

 

• Administration

 

The present body of the Municipality had taken charge on 26.06.2012. The administrative and executive officers are as below:

 

Sl No.	Name	Period
Chairperson
1.	Shri Debaprasad  Mondal	07.10.2013 to 31.03.2016
Vice Chairman
1.	Shri Gopal Chandra Das	07.10.2013 to 31.03.2016
Executive Officer
1.	Shri Jagatbandhu Das	20.06.2013 to 31.03.2016
Finance Officer
1.	Shri Goutam Hore	01.03.2016 to 31.03.2016

 

 

• Status of Annual Accounts

 

By the amendment of West Bengal Municipal (Finance & Accounting ) Rules 1999 in the year 2007, double entry accrual based accounting system was introduced in all ULBs by replacing existing single entry cash basis accounting system vide Municipal Department notification no. 12/MA/0/C-4/1A-B/2005 dated 5.1.2007.

But the municipality prepared the Balance Sheets upto the year 2014-15 and the same was audited till the closure of our audit. The Balance Sheet and Income & Expenditure Account  for the year 2015-16 have not been prepared till the end of our audit.

The municipality answered us that proper action would be taken for the preparation of the same.

1. Volume of Receipts and Payments during FY. 2015-16( as provided by the Municipality )

(Figure in Rs. Lakh)

Year	Opening Balance	Receipts	Total	Payments	Closing Balance
2015-16	2151.89	7036.92	9188.81	7234.75	1954.06

 

1. Details of Banks and Treasury Accounts as on 31^st March,2016

(Figure in Rs. )

 

Sl No	Bank Name	Account Number	Cash Book balance as on 31.03.16	Passbook balance as on 31.03.16
1.	IDBI	34441	102568	102568
2.	Axis Bank	301300	8975992	8975992
3.	Andhra Bank	11000613	3145	3145
4.	Andhra Bank	11000001	7479038	7479038
5.	SBI	91066	5106262	5106262
6.	PNB	4788	1059044.45	1059044.45
7.	PNB	373	7284581.14	7284581.14
8.	IOB	2899	1230079	1230079

 

 

Sl No	Bank Name	Account Number	Cash Book balance as on 31.03.16	Passbook balance as on 31.03.16
9.	IOB	2900	9752440	9752440
10.	IOB	2581	5397140	5397140
11.	IOB	2709	86541	86541
12.	IOB	3223	173976	173976
13.	IOB	3224	1755919	1755919
14.	IOB	5259	130679	130679
15.	IOB	5413	NIL	NIL
16.	IOB	3923	183425	183425
17.	IOB	2546	17147931.66	17147931.66
18.	IOB	12620	116186.90	116186.90
19.	IOB	CD1	6402729.87	6402729.87
20.	IOB	10074	7147230	7147230
21.	AXIS BANK	6976904	NIL	NIL
22.	AXIS BANK	1300	8975992	8975992
23.	AXIS BANK	5226	2184797	2184797

 

The differences between Cash Books and Passbooks are all reconciled.

 

• Receipt and Expenditure Budget vis-à-vis actual

 

1. Expenditure Budget vis –a-vis Actual ( As per Municipal Budget )

(Figure in Rs. Lakh)

Year		Budget Provision	Actual Expenditure	Shortage(+) / Excess (- )
2015-16	Revenue	3728.80	2756.52	(+) 972.28
	Capital	3821.74	2225.05	(+)1596.69

 

From above statement it is pertinent that Municipality fails to achieve its planned expenditure target for the overall development of its beneficiaries; especially in the case of Capital Expenditure segment, from where  people would get long term services.

  

1. Receipts Budget vis –a-vis Actual ( As per Municipal Budget )

(Figure in Rs. Lakh)

Year	2014-15		2015-16
	Budget Estimate	Actual	Budget Estimate	Actual
Untied Fund
a)      Own source	4260.06	2994.12	3951.01	3422.90
b)      Share & Taxes	125.00	129.83	641.19	550.31
Total	4385.06	3123.95	4592.20	3973.21
Tied Fund
a)      State Grant SFC	320.00	250.01	250.00
b)      Dev. Scheme	946.85	1485.96	2469.00	2375.68
c)      State Grant ( other than scheme )	526.00	396.88	0	0
d)      Grant Against scheme	608.50	715.65	0	0
Total	2401.35	2848.5	2719	2375.68

 

 

• Details of Own Source during F.Y.- 2015-16( as provided by the Municipality )

          ( Rs. In Crore.)

Source	Demand			Collection				Closing Balance
	Arrear	Current	Total	Arrear	Current	Rebate	Total	Arrear	Current	Total
Property Tax	39.72	28.95	68.67	6.58	20.08	9.25	35.91	24.55	8.21	32.76
Water Charge	0.25	0.03	0.28	0.01	0.02	0.00	0.03	0.24	0.01	0.25
House Rent	0.78	1.09	1.87	0.17	0.25	0.24	0.66	0.39	0.82	1.21
Stall Rent	0.44	0.21	0.65	0.14	0.07	0.01	0.22	0.29	0.14	0.43
Total	41.19	30.28	71.47	6.9	20.42	9.5	36.82	25.47	9.18	34.65

 

 

• Advance and Adjustment ( as provided by the Municipality )

(Figure in Rs.)

Year	2015-16
Opening Balance	1722805
Add : Addition during the Year	4625581
Total	6348386
Less : Adjustment	4640147
Closing Balance	1708239

 

There was discrepancy of Rs.56,94,430 between closing balance of 2014-15 and opening balance of 2015-16 as observed in last inspection report dated 09/12/15; which should be reconciled.

• Debt Service / Loan Position as on 31.03.2016

 

As informed to us that no loan was taken or given from or to anybody during the Financial Year 2015-16. Thereby, question of Debt Service / Loan Position does not arise.

 

• Position of Investment as on 31.03.2016 as per Ledger provided

( Figure in Rs.)

Year		Amount	Addition	Disinvestment	Closing Balance
2015-16	Treasury GPF	18841677	0	0	18841677
	Pension Fund	116186.90	0	0	116186.90
	Fixed Deposit with IOB for Bank Guarantee	436899	0	0	436899
	SBI Life Insurance      ( Gratuity Fund )	3000000	0	0	3000000
T O T A L					2,23,94,762.90

 

Observations :

Upon scrutiny of relevant statements and allied documents it was revealed that

• Bank Guarantee already expired and should be revoked immediately and liquidate the Fixed deposit which is excluding interest as shown in the ledger.

 

• Pension fund balance are carried forward very long without any active transaction.

 

• Gratuity Fund with SBI – Life Insurance as shown in the ledger is excluding interest. Upon scrutiny of relevant documents it was revealed that interest amount Rs. 10,91,719 would be accrued interest as on 31.03.2016. However, we suggest to take balance confirmation certificate from SBI-Life.

 

• Thirteen Finance Commission Grant

 

Details of 13 Finance Grant received vis-à-vis expenditure of the same during the

1. 2015-16 as provided by the Municipality is given below

                                                                                    Amount in Rs.

YEAR	Opening Balance	Receipts		Expenditure	Closing Balance
		No & Date Of GO	Amount
2015-16	33862281	Bank Interest	16051	0	33878332

 

 

• AMRUT Grant

Details of AMRUT Grant received vis-à-vis expenditure of the same during the

1. 2015-16 as provided by the Municipality is given below

                                                                                    Amount in Rs.

 

YEAR	Opening Balance	Receipts				Expenditure	Closing Balance
		Bank Interest	Amount	Dates of Credit	Total
2015-16	NIL	9697	2025000	15/02 & 23/02/16	2034697	0	33401000

  

• Internal Control / Internal Audit

 No internal audit of accounts in the manner prescribed in the Rule 24(1) of the West Bengal Municipal ( Finance & Accounting ) Rules, 1999 was conducted upto the Financial Year 2014-15.

  

• Defalcation, loss, misappropriation of Municipal Fund

 No defalcation, loss , misappropriation of Municipal Fund was observed during the course of our audit.

 

P A R T  -I I

 1.Irregularities in Tendering Process

 The Municipality had passed resolution in its 17^th Council Meeting dated 28.08.2014 under para 17-3 that works involving expenditure in excess of Rs. 5,00,000/- should be published through E-Tendering. Inspite of that the Municipality did not adopt the procedure in almost all major tendering processes. Our observation revealed after enquiring through Tender Registers during the Financial Year 2015-16  is given below

 

Year	Total No. of Tenders	E - Tenders			Manual Tender
		Own Fund	Govt & HDA Fund	Total	Tender Estimated Value below Rs. 10  Lakh	Tender Estimated Value > Rs. 10 to Rs. 45 Lakh	Tender Estimated Value > Rs. 45 Lakh  to Rs. 1crore	Tender Estimated Value > Rs. 1crore	Total
2015-16	328	4	23	27	113	184	3	1	301

 

Upon further scrutiny of the Tender Register it was revealed that 28 nos Tenders are   split unnecessarily in order to avoid requisite Financial Sanction.

 

2. Progress Report of works of IHSDP

 

Integrated Housing and Slum Development Programme (IHSDP) is combination of both VAMBAY and NSDP  under new IHSDP Scheme aiming to provide for sheltering to Urban Slum dwellers who do not posses adequate shelter and living under distress condition.

 

Haldia Municipality took up the initiative of IHSDP under two phases viz. IHSDP – Phase I & Phase II

  

1. IHSDP Phase - I

 

The salient features of the Project is as below :

28. DPR approved on 28.09.06 (SLCC meeting ) of initial Rs. 860.93 lakh and additional Rs. 99.00 lakh totaling 959.93 lakh
29. Approved number of Dwelling Units ( DU ) 645 nos costing Rs. 516 lakh

• Approval for Infrastructure Development ( ID )of Rs. 344.93. Out of which Physical Infrastructure costing Rs. 301.78 lakh and Social Infrastructure Rs. 43.15 lakh.

8. Actual date of starting of the project is 08.05.2007.
9. Completion period as per approval should have been 08.06.2011 i.e Four years after release of fund.
10. Status of work FY- 2015-16 : Work in Progress

• Comparison Statement of DPR vis-à-vis actual performance as on 31.03.2016 as below : ( as furnished by the municipality )

 

Sl. No.	Components	As per DPR		Actual Performance		Difference
		Cost Approved in Lakh	Quantity Approved	Cost  in Lakh	Quantity	Quantity	Amount
1.	D Us	615	645	615	645	0	0
Infrastructure Development
1.	Roads CCR	24.18	6000 m2	24.53	6000 m2	0	-0.35
2.	Roads BT	164.59	19250m2	176.21	19250m2	0	-11.62
3.	Street Light	38.92	660 nos	75.43	520 nos	140 nos	-36.51
4.	Community Centre	12.53	05 nos	18.89	05 nos	0	-6.36
5.	Water Supply	3.97	08 nos	6.42	08 nos	0	-2.45
6.	Drainage	25.68	2610 mtr	16.43	2610 mtr	0	+ 9.25
7.	Water supply Distribution Line	12.96	1500 mtr	12.96	1500 mtr	0	0
8.	Solid Waste Management	3.96	66 nos	3.96	66 nos	0	0
9.	Community Toilet	17.37	06 nos	3.024	01 nos	5	+14.346
10.	Community Bath	10.15	06 nos	1.95	01 nos	5	+8.20
11.	Community Seva Kendra	30.61	06 nos	48.27	06 nos	0	-17.66
	TOTAL	959.93		1003.074			-43.144

Note : Above figures arrived from Monthly Progress Report sent to SUDA.

Funding pattern and actual spent as on 31.03.2016

                                                            (Figure in Rs. Lakh)

Particulars	DU	ID	Total	Interest earned upto 31.03.2016	Total inclusive of interest	Total Expenditure incurred	Total UC given
Central Share			642.26
State Share			149.46
ULB			62.25
Beneficiary			58.18
			912.15	22.65	934.80	1003.074	909.93

 

• Bank balance remained in IOB (Account no – 3223 ) as on 31.03.2016 Rs 1,73,976/- which is reconciled with the cash book.

 

Observations :

 

1. There is anomaly in between total expenditure under various approved components in between ledger balance and Monthly Progress Report sent to SUDA.
2. As per Ledger Balance actual Expenditure under IHSDP Phase – I is Rs. 936.64 Lakh as against Monthly Progress Report provided us is of Rs. 1003.07 lakh. ; which needs to be reconciled.
3. Upon scrutiny of bank statement ; it is found that expenditure for Street Light amounting Rs. 52.94 lakh comprises Rs. 7.15 lakh, Rs. 22.89 lakh & Rs. 22.89 lakh were transferred on 21.05.14, 30.11.15 & 30.11.15 from IOB Bank Account No. 3923 which is specially earmarked for IHSDP Phase – II purpose only. This is absolutely a case of diversion of fund.
4. After verification of Monthly Progress Report ; it is observed that there are 140 nos street lights , 5 nos Community Toilet & 5 nos Community Bath yet to be constructed even after very long period  of  scheduled completion date of the project. The construction cost would be as per DPR of Rs.31.19 lakh. However, available  cash in bank is of only Rs. 1.74 lakh.

  

1. IHSDP Phase – I I

 

The salient features of the Project is as below :

 

5. DPR approved on 05.02.2009 (CSMC meeting ) of 1589.40 lakh
6. Approved number of Dwelling Units ( DU ) 795 nos costing Rs. 516 lakh

• Approval for Infrastructure Development ( ID )of Rs. 794.40. Out of which Physical Infrastructure costing Rs. 657.31 lakh and Social Infrastructure Rs. 137.09 lakh.

17. Actual date of starting of the project 17.11.2009.
18. Completion period as per approval should have been 16.10.2011 i.e Two years after release of fund.
19. Status of work FY- 2015-16 : Work in Progress

• Comparison Statement of DPR vis-à-vis actual performance as on 31.03.2016 as below : ( as furnished by the municipality )

 

Sl. No.	Components	As per DPR		Actual Performance		Difference
		Cost Approved in Lakh	Quantity Approved	Cost  in Lakh	Quantity	Quantity	Amount
1.	D Us	795	795	793	795	0	2.00
Infrastructure Development
1.	Roads CCR	272.74	20218 m2	272.55	20218 m2	0	0.19
2.	Roads BT	142.08	7594m2	135.97	7594m2	0	6.11
3.	Street Light	50.42	430 nos	15.75	96 m2	334 nos	34.67
4.	Community Centre	137.09	07 nos			7	137.09
5.	Guard wall	25.57	300 mtr	26.04	300 mtr	0	-0.47
6.	Drainage	76.30	2495 mtr	80.42	2495 mtr	0	-4.12
7.	Water supply Distribution Line	63.36	4005 mtr	44.41	4005 mtr	0	18.95
8.	Digester	26.84	01 nos	26.84	Adjusted**	0	0
	TOTAL	1589.40		1368.14			194.42

Note : Above figures arrived from Monthly Progress Report sent to SUDA.

** Adjusted : Digester expenses adjusted against 2016 sq mt of CC Road & Drain vide 25^th SLCC meeting  on 16.12.2015

  

Funding pattern and actual spent as on 31.03.2016 ( as furnished by the municipality )

                                                                                    (Figure in Rs. Lakh)

Particulars	DU	ID	Total	Interest earned upto 31.03.2016	Total inclusive of interest	Total Expenditure incurred	Total UC given
Central Share			1207.95
State Share			145.66
ULB			20.00
Beneficiary			127.20
			1500.81	22.50	1523.31	1368.14	1368.14

 

• Bank balance remained in IOB (Account no – 3923 ) as on 31.03.2016 Rs 1,83,425/- which is reconciled with the cash book.

 

Observations :

 

1. There is anomaly in between total expenditure under various approved components in between ledger balance and Monthly Progress Report sent to SUDA.
2. As per Ledger Balance actual Expenditure under IHSDP Phase – II is

Rs. 1490.59 Lakh as against Monthly Progress Report provided us is of

Rs. 1368.14 lakh. ; which needs to be reconciled.

171. After verification of Monthly Progress Report ; it is observed that there are 334 nos street lights & 7 nos Community Centres are required  to be constructed even after very  long period  of  scheduled completion date of the project.  The total approved cost for the same is of Rs. 171.76 lakh . However, available cash in bank is only of Rs. 1.83 lakh.

 

 

3. Resource Mobilization / Revenue Generation

 

The constitution 74^th Amendment Act 1992, relating to Municipalities (Urban local Government) was passed by the parliament in 1992.  Government of India notified 1^st June 1993 as the date from which the 74^th Amendment Act came into force.

Under this Amendment ULBs are  being given immense autonomy and specially envisaged upon the fact that ULBs would function independently both physically and financially. In order to achieve that goal ; Municipality should augment its revenue generation activities.

 

But Haldia Municipality is running far behind to achieve its financial independence. During the course of our audit; we have observed under mentioned lacunae in its income generation.

 

1. Collection of Property Tax

 

The much awaited pending issue ie. 4^th Revisional Assessment of holdings of Haldia Municipality was not finalized by West Bengal Valuation Board ( WBVB)within our audit period ie. Financial Year 2015-16.  Thereby, the Municipality still losing heavy revenue in the FY 2015-16 simply due to delay in assessment.

However, during our Audit tenancy; Final Valuation List of holdings was circulated by West Bengal Valuation Board by their notification vide letter no.- 343/WBVB/1M-90/2011 dated 03.10.2016. But the effective date of the list would be from 01.04.2016 as mentioned in the same notification.

 

Besides, all above facts there is huge gap observed in between demand and collection of property tax during FY 2015-16.  Details as below ( as furnished by the municipality )

                                                                                   (Figure in Rs. Lakh)

Demand				Actual Collection				Closing Balance
Arrear	Current	Total	Arrear		Current	Rebate	Total	Arrear	Current	Total
3972.38	2895.31	6867.69	657.81		2007.77	925.44	3591.02	2455.24	821.42	3277

 

• Note : There is difference between closing balance of 2014-15 as per last audit report and opening balance of 2015-16 ; which needs to be reconciled
• Rebate figure is further bifurcated into ARREAR of Rs. 859.33 lakh and CURRENT of  66.11 lakh.

 

Observations:

 

38. From above table the revenue collection percentages arrived at in the case of ARREAR TAX of 19% and in the case of  CURRENT TAX of 71.63% . So  the percentage figure indicates poor collectivity status of the Municipal machineries; which could have been augmented to move forward to  its financial independence. The arrear collection is too weak to comment upon.
39. Further REBATE figure of Rs. 925.44 lakh ; was allowed in the following ways :

 

• Private parties are allowed hefty rebate / remission. A few examples are given below.

 

• SONEKO WAREHOUSE LTD. (NARESH KR. KOTHARI & ORS.) was given Rs. 14.77 lakh as against demand of Rs. 18.78 lakh.

 

• MCCPTA (INDIA CORP. PVT.LTD.) was given Rs. 23.28 lakh as against demand of 310.43 lakh.

 

• 5-STAR TRADING AGENCY was given Rs. 16.76 lakh as against demand of 18.51 lakh.

 

• FIVE STAR LOGISTICS P LTD. (2)&(3) was given Rs. 22.44 lakh as against demand of 20.26 lakh.

 

1. Where there is huge gap in between demand and collection; allowance of rebate specially to private parties could not be understood.

  

1. Collection of Market Rent

 

The Municipality again fails to perform in recovery of Market Rent quite significantly as envisaged through analysis given below .

 

The Municipality has a total 11 number of markets. The markets are rented to various parties against rental/lease agreement. But the unrealized rent during FY 2015-16 observed Rs. 41.78 Lakh. Details as below ( as furnished by the municipality )

 

                                                                                    (Figure in Rs. )

Name of Market	Demand			Collection			Outstanding Amount	% collection
	Arrear	Current	Total	Arrear	Current	Total
Durgachak colony Market	261741	106920	368661	34450	32850	67300	301361	18.25
Durgachak East Coast Front Market	38625	18780	57405	2145	8240	10385	47020	18.09
Durgachak New Market	53984	53700	107684	9776	45092	54868	52816	50.95
Durgachak Stadium Market	44124	43200	87324	20052	26256	46308	41016	53.03
Durgachak Vegetable Market	303155	99000	402155	53010	12975	65985	337170	16.41
Hindustan Market Township	278400	88800	367200	36500	14600	51100	316100	13.92
Mohona Apani Market	307840	310500	618340	169498	162936	332434	285906	53.76
Mohona Mini Market	533986	313200	847186	282989	113062	396051	451135	46.75
Mohona Super Market	2510816	1002432	3513248	877136	334584	1211720	2301528	34.49
Ramkinkar Baiz Mritsilpi Centre	23010	7920	30930	3030	720	3750	27180	12.12
Sulov Souchalaya Market	13100	9000	22100	3100	1550	4650	17450	21.04
GRAND TOTAL	4368781	2053452	6422233	1491686	752865	2244551	4177682	34.95

 

 

Observations

• Above analysis shows shabby picture of poor collection endeavour on the part of Municipality. Average collection percentage is only 34.95 %; in few areas it is as low as 12.12 % to 18.25% also.
• In the case of Mohona Mini Market Rebate /Remission provided to 74 private stall holders to the tune of Rs.98074/-.
• After scrutiny of individual defaulter it was revealed that there were 204 nos of stall holders have rent dues over 2 years to the tune of Rs. 34,26,031/- ( Details as per separate Annexure enclosed )
• Collection of Housing Complex Rent

As usual the Municipality fails to realize regular  collections of rents  from its 8 housing complexes during FY. 2015-16. Details as below ( as furnished by the municipality )

                                                                                                         (Figure in Rs. )

Name of property	Demand			Collection			Outstanding Amount	% age
	Arrear	Current	Total	Arrear	Current	Total
Banalata Housing Complex	35000	624000	659000	0	0	0	659000	0
Banalata Housing Phase iv	0	177700	177700	0	127500	127500	50200	71.75
Banalata New Housing Complex	78120	1698320	1776440	66220	337300	403520	1372920	22.72
Durgachak Housing	5552964	1923101	7476065	1337722	840800 plus rebate 196000	2374522	5101543	31.76
Mohona Residential Complex	629209	919634	1548843	57360	273632	330992	1217851	21.37
Grihahin Prakalpa	176100	86400	262500	3100	12600	15700	246800	5.98
Individual Property	1003015	3137483	4140498	108328	728578	836906	3303592	20.21
Working Women Hostel	244255	2393376	2637631	176682	262574	439256	2198375	16.65
TOTAL	7718663	10960014	18678677	1749412	2778984	4528396	14150281	24.24

 

Observations:

• Here also we find poor percentage of average collection ie. 24.24%. In housing like Banalata Housing Complex no rent collected during the year.
• In case of Durgachak Housing rebate / remission was given mostly to private parties

 

 

1. Poor collection from Hoarding , advertisement tax and others

 

The Hoarding rent could be an important source of earning on the backdrop of Haldia ‘s emerging and growing city culture. Being an industrial hub with cosmopolitan population base ; hoarding rent  could be quite sizable , if there is provision for  proper planning and erection facilities.

 

But due to lack of giving proper importance in this field; meager revenue earned by the Municipality as reflected below. ( as furnished by the municipality )

 

Year	Demand	Collection	Amount outstanding
2015-16	NA	Rs. 163346.00	NA

 

Because of lack of any record of presence of all the hoardings; no demand for each year could have been raised.

 

 

1. Stacking Fees are not collected by the Municipality

 

As per Rule 25 of The West Bengal Municipal (Building) Rules, 2007

Stacking Fees.—

• The Municipality may specify rates at which Stacking Fee payable in respect of a permission for stacking. Depositing any building materials including building rubbish in any street shall be charged and different rates may be specified for different categories of streets subject to minimum 10% and maximum 50% of fee for sanction of the building construction per month.

 

• The Stacking Fee payable in any case shall be calculated on the basis of the total area sanctioned in the building plan including basement, covered parking space, and mezzanine floor.

 

• The Stacking Fee shall be paid along with the sanction fee prior to obtaining sanction of a building plan.

 

• The Stacking Fee shall not be refundable under any circumstances.

 

 

• For stacking of material on the road, applicant will have to take prior permission from the Municipality for stacking materials. The stacking fee will be applicable for all plots except those with land area more than 2000 sq.m, subject to an undertaking that the applicant will not stack any building material including excavated earth on the Public Road.

 

Observations:

Upon scrutiny of accounts it has been revealed that during the Financial Year2015-16 building plan sanction fees collected as below ( as furnished by the municipality )

 

Year	No of Plans sanctioned	Plan sanction fees collected
2015-16	419	Rs. 43,63,507

 

As there is no stacking fees collected during the FY 2015-16 ; a minimum revenue lost by the Municipality is to the extent Rs.26.18 Lakh     [ (4363507*10/100)]* 6; assuming minimum stacking period of 6 months.

 

1. Site Plan approval Fees are not collected by the Municipality

 

As per Rule 4 of The West Bengal Municipal (Building) Rules, 2007

Applications for approval of building sites and for permission to construct or reconstruct buildings other than huts:—

• Before submission of the building plan, approval of the building site has to be obtained from the municipal authorities. The applicant may simultaneously submit the site plan and the building plan to the Municipality for approval at his own risk and cost. But the Municipality shall consider the building plan submitted for approval only after the site plan is approved. In case the site plan is not approved, the submitted building plan shall also be treated as not approved.

 

(2) Every application, under sub-rule (1) submitted in Form A, shall state, inter alia, the proposed use of the land as per use group or occupancy.

(3) Every application, under sub-rule (1), shall be accompanied by a site-plan in triplicate and a fee as may be determined by the Municipality subject to the following:—

(i) for site plan up to 200 sq. meters of area : Rs. 200/- (Rupees two hundred only);

(ii) for every additional 100 sq. meters of areas or part thereof beyond the first 200 sq. meters : Rs. 100/-(Rupees one hundred only): Provided maximum fees not exceeding five times the minimum fees as specified, may be determined by the Board of Councillors at a meeting.

 

 

Observations:

 

On scrutiny of the records it has been observed that Municipality did not collect Site Plan Approval Fees during the F.Y – 2015-16. There were 419 building plans passed during the year and the Municipality deprived of earning minimum fees of               Rs. 83800/-  ( 419*200)

 

• Poor collection of Lease rent on Land

Haldia Municipality has many lands under its control. The shabby picture of lease rent collection on land again reflected through below mentioned table during FY. 2015-16. ( as furnished by the municipality  )

Year	Demand			Collection			Outstanding amount	% age
	Arrear	Current	Total	Arrear	Current	Total
2015-16	1020212	597338	1617550	NA	NA	730870	886680	45

 

 Observations

 

• Upon scrutiny of detail list of lands under Debhog ; it was revealed that in two number of cases viz. 1) MOHONA GENERAL TRADING CO. & 2) FIVE STAR SHIPPING AGENCY PVT LTD , where outstanding Land Rent demands of Rs. 966000/- & Rs. 2813504 respectively were in the year 2014-15 had been dropped to carry the balances forward in the year 2015-16. Due to this reason a total opening  balance of Arrear Demand falls short to the extent Rs. 37,79,504/-.
• During the FY- 2015-16 no collection of Land Rent observed in above two cases.
• Possible reason for such shortage of collection is due to non placement of demand in proper manner before the tenants and lack of follow up.

 

• Irregularities in case of license issued u/s 118 & 201

 

1. As per Section 118 of West Bengal Municipal Act, 1993, every person engaged or intending to be engaged in any profession, trade or calling in a municipal area as specified in Schedule I, either by himself or by an agent or representative, shall obtain a certificate of enlistment or get the same renewed annually, as the case may be, from the Executive Officer of the Municipality or, in his absence, from the officer uthorized to function as the Executive Officer upon presentation of an application together with applicable application fee.

 

The collection of revenue from the enlistment of trade , profession and callings u/s 118 during FY 2015-16 as below ( as furnished by the municipality )

 

                                                                             (Figure in Rs.)

 

Demand			Collection				Closing balance
Arrear	Current	Total	Arrear	Current	Total	% age	Arrear	Current	Total
10974630	4277695	15252325	395515	1953340	2348855	15.4	10579115	2324355	12903470

 

 

 

Observations

 

• Above table shows how deficient the Municipality is in collection of revenue from enlistment fees. Only 15.4% is overall collection percentage.
• Over and above remission /rebate was granted of Rs.25480/-.
• It was observed that the Municipality does not serve any demand notice to those are defaulter in renewing the license.
• No field survey conducted till date to serve notice to those stall/shop holders running business within municipal areas.

 

1. As per Section 201 of West Bengal Municipal Act, 1993, Licence to be obtained for use of premises for non-residential purposes.—(1) No person shall use or permit to be used any premises for any of the non-residential purposes as mentioned in Schedule II without or otherwise than in conformity with a licence granted by the Chairman in this behalf on such terms and conditions as may be determined by regulations.

 

The collection of revenue from the use of premises for non residential purpose u/s 201 during FY 2015-16 as below ( as furnished by the municipality )

 

(Figure in Rs.)

 

Demand			Collection				Closing balance
Arrear	Current	Total	Arrear	Current	Total	% age	Arrear	Current	Total
28256540	12376500	40633040	921470	5681670	6603140	16.25	27335070	6694830	34029900

 

 

Observations

 

• Above table shows how deficient the Municipality is in collection of revenue from use of premises for non residential purpose. Only 16.25% is overall collection percentage.
• Over and above remission /rebate was granted of Rs.102070/-.
• It was observed that the Municipality does not serve any demand notice to those are defaulter in registration.
• No field survey conducted till date; in order to serve notice to those are defaulters.

The numbers of new enlistments, renewal, cancellation etc. for licenses u/s 118 for the FY 2015-16 are as below ( as furnished by the municipality )

 

Year	Opening balance	License renewed	New License issued	License cancelled	Closing balance	License not renewed
2015-16	7719	5201	159	80	7798	2494

  

4. Defaulter in collecting cess under Building and other Construction Workers’ Welfare Cess Act,1996  from commercial & industrial constructions

  

The Municipality though collected cess from building owners but fails to collect the same from commercial & industrial construction.

Under the said act the definition of building and other construction work includes construction, alteration, repairs, maintenance, demolition, of buildings, street, roads, railways, tramways, airfields, irrigation, embankments and navigation works, flood control works, generation, transmission, distribution of power, water works, oil & gas installation, electrical lines, wireless radio, television, telephones , telegraphs and overseas construction dams, canals, reservoirs, water course, tunnels, bridges, pipelines, towers, cooling towers, transmission tower etc.

As from above definition there is no scope to exclude commercial and industrial constructions.

However, upon discussion with the concern department ; it is informed to us that there was certain notification issued to debar deduction from commercial and industrial construction issued by concern Labour Department. But no such notification has shown before us.

During the Financial Year 2015-16 the Municipality fails to collect cess amount                  Rs. 9,43,117/- from commercial and industrial constructions approved so far.

 

5. Irregularities in implementation of West Bengal Urban Employment Scheme

 Objective:

Employment generation of the urban poor as well as improvement and maintenance of civic infrastructure in urban areas by direct engagement of urban poor people without involvement of contractors.

Implemented  

The ULBs either through Ward Committees or through Community Development Societies. Schemes are also to be identified by the Ward Committees /Community Development Societies.

Following schemes are undertaken for creation or maintenance of civic infrastructure

• Drainage
• Water supply
• Social forestry
• Beautification of parks
• Canals and river banks
• Preservation of water bodies
• Improvement of markets

Actual Performance by the Municipality during F.Y.- 2015-16 :                                                                                                                                               ( Figure in Rs. )

Opening Balance	Receipt	Total	Expenditure		Total Expenditure	Closing Balance	%
			Canal	Drainage
17201500	17059000	34260500	4246009	15242054	19488063	14772437	57%

Observations :

1. Though there is huge fund in hand ; but its minimal utilization ( 57% only ) itself frustrating the noble purpose of the scheme
2. Upon scrutiny it was observed that except for the fund utilized for Canal Excavation purpose; there was no vision and planning behind beneficial utilization of the fund.

• Other permissible fields viz. maintenance of roads, infrastructural development of slums, solid waste management, construction and maintenance of community centers like health centers, parks, markets, river, garden plantations etc. were totally overlooked.

1. No planned estimate approved by BOC and Ward Committee observed.
2. Work Register not maintained.
3. Except Canal Work no measurement observed.

 

 

 

6. Irregularities in implementation of Mid Day Meal Program objectives

  

Objective :

 

In a nutshell,  the basic purpose of Mid day Meal (MDM)program is  to increase the attendance percentage as well as nutritional level among the children of lower and upper primary schools.

 

Food grains (wheat and rice) are supplied free of cost [at] 100 gram per child per school day where cooked/processed hot meal is being served with a Minimum content of 300 calories and 8-12 gms of protein each day of school for a minimum of 200 days and 3 kgs per student per month for 9-11 months in a year, where food grains are distributed in raw form. In drought affected areas the mid day meal is distributed in summer vacations also.

 

The Central Government assists the local authority by providing subsidized rice for implementation of the MDM program  within the Municipal area from the nearest FCI godown through authorized distributor.

 

The basic role of Municipality is to supervise and monitor the whole process for its success. It would collect utilization certificates on periodical basis from schools and transmit the same to the district authority.

 

Performance by the Haldia Municipality ( As per appropriation register)

(Figure in Rs. )

Year	Opening Balance	Receipt		Total	Expenditure	Closing Balance
		Fund	Bank Interest
2015-16	5382701	17145029	262653	17407682	11216763	6190919

 

 

 

Observations:

 

• Upon discussion with officer concerned; it was revealed that two dealers namely i) Saibul Saha & Sons and ii) Bandana Distributor are engaged to lift rice from FCI Godown, Paschim Midnapur. After intimation getting from District Authority about the allotment of rice for the Municipality; orders are placed before the dealers to distribute rice to schools as per their requirement.

 

• Upon discussion with the concerned officer of Municipality ; it was revealed that there arise situations in many times where school refuses to receive rice due to sufficient stock in their hand. But while generating monthly MIS on district portal ; the allotted rice to those schools are shown as issued.

 

• The Municipality fails to obtain delivery challans duly authenticated by each school by the dealers concerned. As well as there is no process of reconciliation between rice issued actually  to schools and stock supplied by dealers to corresponding schools. There remains huge scope of misappropriation.

 

 

7. Non Reconciliation of Provident Fund Balances

I ) Balance position of PF as on 31.03.2015 is as below

                                                                       Figure in Rs.

Outstanding Balance	Subscription & Recoveries	Interest		Total	Advance /Withdrawal	Closing Balance
		2013-14	2014-15
14372915	2587600	1117827	1266795	19345137	503460	18841677

 

31. II) Position as per Abstract of Ledger and Balance as per Treasury Pass Book as on 31.03.2015

                                                                                    (Figure in Rs.)

Closing balance as per abstract of Ledger	Balance as per Treasury Pass Book	Difference
20127755	18841677	1286078

From above it has been observed that there is difference of Rs. 12,86,078  between closing balances.

The municipality confirmed that PF subscription has been deposited into Treasury from        NOV ‘86 to OCT’ 94 by the then H.N.A.A. Due to non-inclusion of N.A.A ; interest not paid by Govt . during the said period.

 

 

P A R T  -I I I

 

1. Review of audit qualifications in earlier reports yet to be resolved

 

18. In Part II B ( Para 3/iv) [ Audit 2014-15] it was qualified that poor collection from Akash Lodge- outstanding dues to the tune of Rs. 18.58 lakh :

 

Our Observations:

 

Upon scrutiny and discussion with the concerned personnel of the Municipality;  one money receipt regarding House Rent ( Stall/Flat No.-4 ) dated 02/07/13 of Rs. 3,11,000/- for arrear payment upto March-2013 has been obtained.

 

Thereby, above total outstanding demand dropped down to the extent Rs. 15.47 lakh. No further information about settlement of outstanding dues obtained.

 

269. In Part II A ( Para 1) Unfruitful expenditure of Rs. 269.21 lakh in construction of Auditorium and cultural complex :

 

Our Observations:

 

While making remarks against above qualification in earlier audit report; the Municipality affirmed that job would further be started after availability of fund. But no further progress in this regard observed.

 

1. All other queries :

 

All remaining queries are updated in present Internal Audit Report.

 

 

 

P A R T  -I V

 

1. Vouching Report :

 

1. Unfruitful Expenditure of Rs.8,45,000/- in purchase of Guest House (Flat ) at Kolkata

 

Upon scrutiny of vouchers ; it was revealed that 3 nos of Cash Payment amounting Rs. 5,50,000/- , Rs. 1,75,000/- & Rs. 1,20,000/- were made to some unknown party on 30/09/15, 17/10/15 & 21/11/15 respectively for the purpose of purchase of Guest House to be used for official purpose. The approval for such purchase was taken on CIC meeting on 22/09/2015. Total amount for such purchase was approved in BOC meeting dated 9/11/15 of Rs. 8,75,000/-.

 

Till the date of our audit neither any deed or agreement made nor any possession record of flat observed.

 

1. Undermentioned cases where the party received full payment earlier than voucher date :

 

Voucher No	Vendor Name	Amount ( Rs.)	Date of Payment received by the party	Voucher Date
1059	Sonu Engg. Construction	877403/-	26.08.15	31.08.15
1170	P.K.Sinha	300000/-	.09.09.15	21.09.15
1297	Sukumar Pramanik	1254283/-	30.09.15	12.10.15
808	Uma Builders	1198132/-	14.07.15	17.07.15
942	Uma Builders	1030124/-	04.08.15	13.08.15

 

 

• During Audit we have observed in following cases where payment amount mismatched in between Cash Book & Payment Vouchers:-

Voucher No	Date	Vendor Name	Amount Passed in voucher (Rs.)	Amount Shown in Cash Book ( Rs.)
1844	29.12.15	Garbage clearing	12551/-	12651/-
1273	07.10.15	Hewlett Packerd	280391/-	280420/-
858	27.07.15	Kopt	5373/-	5350/-
2082	18.01.16	Contingency Bill	12844/-	12350/-

 

1. During the year 2015-16 we have observed Interest paid for late payment of Income Tax of 76560/- Details as below :

 

Financial Year	Quarter	Type	Amount (Rs)	Date of Payment
2012-2013	Q1	26Q	71920/-	21.12.2015
2012-2013	Q2	26Q	4640/-	21.12.2015

 

 

1. Physical Verification of Store items and Furniture & Fixture

 

1. Stores :

 

There are 3 nos stores of the Municipality. One for Electrical Items , another for Tubewell items and the 3^rd one for Conservancy Items.

As per indent of various departments stores items are purchased kept inside these stores. Apart from these ; stationery items are kept inside storekeeper room. Store records are kept in software system under the supervision of store keeper.

Details of stock-in-hand as at 31.03.2016 as per store record is as below :

                                                      ( as provided by the Municipality )

                                                                                    ( Figure in Rs. lakh )

2015-16	Water Supply	Conservancy	Electric items	Computer & peripherals	Computer & Xerox ink	Stationery items	Others	Total
	47.76	20.55	32.13	4.17	1.88	7.98	0.40	114.87

 

                                   

Observations :

 

• We have visited all the stores during our audit tenure; and found that store items are haphazardly stacked. Items are strewn over the floor in scattered manner.
• No tagging observed on any store items. Physical verification of store items never ever been conducted on behalf of the management.
• Upon enquiry, the store keeper confirmed that he has been handed over the store without verification of items physically. Thereby, he has no control over old items.
• Several items are found to be in unusable condition. We have been informed that no scrap declaration made till date.
• Conservancy items viz. Phenyl, in considerable quantity found in leakage condition and several bags of cement found unusable.
• Though the store was not ready for physical verification; but we have organized a sample checking , and our report is as below :

  

		A.      PHYSICAL STOCK VERICATION REPORT AS ON 07.06.17 (ELECTRICAL STOCK)
SL NO		PARTICULARS			HEAD CODE		UOM	BOOK STOCK		PHYSICAL STOCK		DIFFERENCE		REMARKS
1		250 WATT SODIUM VAPOUR LAMP			120    01 05		PCS	29		29		-
2		S/9 WATT LAMP			120  01  10		PCS	186		186		-
3		S/11 WATT /86C LAMP			120  01  13		PCS	281		260		(21.00)		Short Stock
4		1000 WATT HALOGEN LAMP			120  01  19		PCS	86		86		-
5		36 WATT P L LAMP			120  01  23		PCS	408		408		-
6		150 WATT SODIUM VAPOUR LAMP			102  01  24		PCS	184		184		-
7		C.F.L LAMP 15 WATT			120  01  25		PCS	225		225		-
8		40 WATT TUBE LIGHT			120  01  27		PCS	160		160		-
9		70 WATT SODIUM VAPOUR LAMP			120  01  34		PCS	650		650		-
10		125 LAMP HOLDER			120  02  04		PCS	240		240		-
11		IGNITOR SN-58			120  05  01		PCS	165		90		(75.00)		Short Stock
12		IGNITOR FOR 70 WATT S.V LAMP			120  05  04		PCS	135		133		(2.00)		Short Stock
13		70 WATT SODIUM VAPOUR CHOKE			120  07  03		PCS	164		164		-
14		150 WATT SON CHOKE			120  07  05		PCS	188		392		104.00		Excess Stock
15		150 WATT SON CHOKE			120  07  12		PCS	100
16		150 WATT S.V CHOKE (CROMPTON)			120  07  07		PCS	92		44		(48.00)		Short Stock
17		400 WATT METALIC CHOKE			120  07  14		PCS	29		40		11.00		Short Stock
18		28 WATT ELECTRONIC CHOKE			120  07  17		PCS	60		60		-
19		6 SQ MM COPPER WIRE			120  10  05		PCS	5		5		-
20		4 SQ MM COPPER WIRE			120  10  06		PCS	5		5		-
21		ML 4 CONTACT			120  18  01		PCS	18		15		(3.00)		Short Stock
22		ML 2 CONTACT			120  18  02		PCS	16		14		(2.00)		Short Stock
23		ML 3 CONTACT			120  18  06		PCS	15		24		9.00		Excess Stock
24		ML 2 CONTACT COIL			120  19  01		PCS	24		14		(10.00)		Short Stock
25		TIME SWITCH			120  20  01		PCS	20		20		-
26		400 WATT METAL FITTINGS			120  24  02		PCS	20		20		-
27		70 WATT SODIUM VAPOUR FITTINGS			120  24  08		PCS	18		18		-
28		3COR CABLE			120  26  01		COIL	7		7		-
	B.    PHYSICAL STOCK VERICATION REPORT AS ON 7.06.17 (CONSERVENCY STOCK)
SL NO	PARTICULARS		HEAD CODE	UOM		BOOK STOCK			PHYSICAL STOCK		DIFFERENCE		REMARKS
1	BLEACHING POWDER		110  01  01	KG		150			150		-
2	LIME		110  01  02	KG		1650			1650		-
3	BORROW (SINGLE WHEEL)		110  01  10	PCS		13			13		-
4	HARPIC		110  01 1 01	PCS		85			85		-
5	PHYNAIL		110  01  11	LT		656			656		-		Leakage & damaged condition
6	DRAIN BRASS		110  01  19	PCS		50			50		-
7	SPADE		110  01  33	PCS		84			144		60.00		Excess of stock
8	SPADE		110  01  34	PCS		113			72		(41.00)		Shortage of stock
9	LIFE BOY SOAP		110  01  28	PCS		65			65		-
10	TANGI		110  01  40	PCS		21			21		-
11	BALTI		110  01  42	PCS		41			41		-
12	RAIN COAT		110  01  46	PCS		115			95		(20.00)		Shortage of stock
13	GUM BOOT		110  01  52	PAIR		136			136		-
14	SABAL		110  01  61	PCS		86			86		-
15	HELMET		110  01  63	PCS		42			42		-
16	4 WHEELER CART		110  01  71	PCS		1			3		2.00		Excess of stock
17	GAITYA		110  01  95	PCS		210			210		-
18	KANTA		110  01  07	PCS		48			48		-
19	SABAL		110  01  18	PCS		15			15		-
20	DONGA		110  01  30	PCS		20			20		-

 

 

As there is no control over stacking of items; we have to take a few sample for physical verification purpose. But there also we find shortage of materials as reflected above. We suggest for proper stacking and tagging of items before conducting a thorough physical verification.

 1. Furniture & Fixture :

 The Municipality does not maintain any Furniture & Fixture Register. No physical verification of Furniture & Fixture was conducted till date. No assets are codified and recorded till date.

 1.Cash Verification

 We have physically verified cash balance as on 08/05/2017 at the end of the day of Rs. 5,72,932/- and cheque in hand of Rs. 15894830/- and the same found tallied with cash book maintained in system.

 

 

INTERNAL AUDIT REPORT ON THE TRASACTIONS CARRIED OUT BY  HALDIA  MUNICIPALITY DURING THE PERIOD FROM 01.04.2015 TO 31.03.2016

 

Sl. No.	Part	Para	Description	Page No.
1			EXECUTIVE SUMMARY
2	Part  I	1.1	Introduction	1
3		1.2	Administration	1
4		1.3	Status of Annual Accounts	2
5		1.4	Receipts & Expenditure Budget	3
6		1.5	Advance & Adjustment	5
7		1.6	Debt Service / Loan Position	5
8		1.7	Position of Investment as on 31.03.2016	6
9		1.8	Thirteen Finance Commission Grant	7
10		1.9	AMRUT Grant	7
11		1.10	Internal Control / Internal Audit	7
12		1.11	Defalcation, Loss, misappropriation of Municipal Fund	8
13	Part II	1	Irregularities in Tendering Process	9
14		2	Progress Report of Works of IHSDP.	9
15		3	Resource Mobilization	14
16		4	Defaulter in collecting cess  under Building and other Construction Workers’ Welfare Cess Act,1996  from commercial & industrial constructions	23
17		5	Irregularities in implementation of West Bengal Urban Employment Scheme	23
18		6	Irregularities in implementation of Mid Day Meal Program objectives	25
19		7	Non Reconciliation of Provident Fund Balances	26
20	Part III	1	Review of audit qualifications in earlier reports yet to be resolved	27
21	Part IV	1	Vouching Report	28
22		2	Physical Verification  of Store items and Furniture & Fixture	30
23		3	Cash Verification	33
	ANNEXURE		Statement of Stall Rent dues more than 2 years

 

 

 

 

EXECUTIVE SUMMARY

 

Our Audit has identified weaknesses in several areas of Financial Management. These weaknesses are described in more detail within the main report. A brief summary is given below :

 

1. There is considerable gap in between Budget Provision and Actual Expenditure.

 

2. Bank Guarantee expired with IOB; but FDR yet to be released.

 

3. Out of total 328 nos of Tenders raised in the F.Y.-2015-16 ; only 27 nos are E-Tenders.

 

4. IHSDP – Phase I : 140 nos Street Lights, 5 nos Community Toilets and 5 nos Community Baths are yet to be constructed.

 

5. IHSDP – Phase II : 334 nos Street Lights & 7 nos Community Centres are yet to be constructed.

 

6. Property Tax collection from Arrear Dues only 38.19% and from Current Dues only 71.63%.

 

7. Collection from Market Rent only 34.95%. There are 204 nos of stall holders having stall rent dues more than 2 years; totaling Rs. 34.26 lakh.

 

8. Collection from Housing Complex Rent only 24.24%.

 

9. Meagre amount collected from Hoarding, Advertisement Tax and Others.

 

10. Stacking Fees and Site Plan Approval Fees are not collected.

 

11. Lease Rent collection from Lands are only 45% of total demand.

 

12. Outstanding Lease Rent of Land for the year 2014-15 of Rs. 37.79 lakh is being dropped and not carried over to the year 2015-16.

 

13. License Fees collection achieved only 15.4%.

 

14. Defaulted in collection of cess under Building & Other Construction Workers’ Welfare Cess from commercial and industrial construction.

 

15. In WBUES ; other approved areas under the scheme except drainage & canal are overlooked. Only 57% fund is being utilized during 2015-16.

 

16. Under MDM Program ; there is no control over stock of Rice lying with the dealers.

 

 

17. PF balances are non reconciled.
18. Issues raised in Audit Report of FY 2014-15 viz. unfruitful expenditure of Rs. 269.21 lakh for construction of Auditorium and Cultural Complex and outstanding demand of lease rent of Akash Lodge are yet to be resolved.

 

 

19. Expenditure to the tune of Rs. 8.45 lakh for the purpose of purchase of Guest House at Kolkata yet to be documented.

 

20. Poor Store management observed.

 

 

21. No Furniture & Fixture Register maintained by the Municipality.

 

Current Year Income (Revnue & Capital)

During course of our Audit we have verified the total Receipts (both revenue & capital ) of the ULB for the year 2015-16. The details of the same are summarised as follows :

SL NO	HEAD OF INCOME	AMOUNT(Rs)	Remarks
A	Revenue Receipts (1+2+3)	530191499.00
1	Own source revenue(x+y)	337478955.00
x	Tax Revenue	267550130.00
i)	Property tax	266673577.00
ii)	Other tax (levied and collected by municipal body)	876553.00
y	Non Tax Revenue	69928825.00
i)	Fees & fines	30712419.00
ii)	User Charges	0
iii)	Other non-tax revenue (levied and collected by municipal body)	39216406.00
	Total Own Source Revenue (x+y)
2	Other Revenue Receipts	801105.00
i)	Income from interest/investments	789305.00
ii)	Other Revenue income	11800.00
	Total of Other Revenue Receipts	1602210.00
3	Transfer Grant & Assigned Revenue	191911439.00
i)	State Assigned Revenue	12016262.00
Ii)	State Finance Commission (SFC) Grants/Devolution	0
Iii)	Octroi compensation	0
iv)	Other State Government Transfers	83294609.00
V)	Central Finance Commission (CFC) Grant	33687580.00
vi)	Other Central Government Transfers	55807992.00
vii)	Others
B	Capital Receipts
	Sale of Municipal Fixed Assets (If any)	0
	Loans (from State Govt. or Banks etc.)	0
	State Capital Account Grant (under State Schemes etc.)	61955000.00
	Central Capital Account Grant (under Central Schemes etc.)	44521169.00
	Other Capital Receipts	51557019.00
	Total of Capital Receipts	158033188.00
	Total Receipts of the ULB for the year 2014-15 (A+B)	688224687.00

Current year Expenditure (Revenue & Capital)

During course of our Audit we have verified the total Expenditure (both revenue & capital ) of the ULB for the year 2015-16. The details of the same are summarized as follows :

 

SL NO	HEAD OF EXPENDITURE	AMOUNT(Rs)	Remarks
	Revenue Expenditure (A)	355473444.00
i)	Establishment Expenditure	96515987.00
ii)	Operation and Maintenance	157001167.00
iii)	Interest on Loan paid during the year	93255223
iv)	Any other revenue expenditure not covered under i), ii) & iii)	8701067.00
	Total revenue expenditure	355473444.00
	Capital Expenditure (B)
i)	All developmental works under Central/State specific schemes	191892327.00
ii)	Loan Repayments (Principal Amount)	0
iii)	Other Capital expenditure	236677275.00
	Total Capital Expenditure	428569602.00
	Total Expenditure [A+B]	784043046.00