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)

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ilirrr:irred Loan

[{-lirs,-1,-ured LoanI

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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

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date

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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

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i' illlIll:r1Y3rilate:- I?lt'L1lg"[-t!ace- C\n u \"r-\\

EOl Commissioner

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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

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,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

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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

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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.