Reference to
	Paragraph	Page
Preface		v
Overview		vii
CHAPTER I
ACCOUNTS AND FINANCES OF THE LOCAL BODIES
Panchayat Raj Institutions	1.1
Introduction	1.1.1	2
Organizational set-up	1.1.2	2
Funding of PRIs	1.1.3	4
Accounting arrangements	1.1.4	8
Creation of Data Base of PRIs	1.1.5	8
Audit arrangements	1.1.6	8
District Planning Committees	1.1.7	9
Finance Commissions	1.1.8	9
Devolution of funds, functions and functionaries to PRIs	1.1.9	11
Conclusion	1.1.10	13
Recommendations	1.1.11	13
Urban Local Bodies	1.2
Introduction	1.2.1	14
Organizational set-up	1.2.2	14
Funding of ULBs	1.2.3	16
Accounting arrangements	1.2.4	18
Audit	1.2.5	19
District Planning Committees	1.2.6	19
Finance Commissions	1.2.7	19
Conclusion	1.2.8	21
Recommendations	1.2.9	21
CHAPTER II
PERFORMANCE AUDIT REVIEWS
Andhra Pradesh Urban Services for the Poor	2.1
Introduction	2.1.1	24
Organisational set-up	2.1.2	25
Audit objectives	2.1.3	26
Audit criteria	2.1.4	26
Scope and methodology of audit	2.1.5	27
Audit findings	2.1.6	28
Project formulation	2.1.7	28
Financial Arrangement	2.1.8	29
Municipal Reforms (C1)	2.1.9	33
Environmental infrastructure for sustainability (C2)	2.1.10	36
Strengthening of civil society (C3)	2.1.11	41
Project monitoring, evaluation	2.1.12	42
Conclusion	2.1.13	43
Recommendations	2.1.14	43
Information Technology Audit of ‘Soukaryam’	2.2
Introduction	2.2.1	45
Audit objectives	2.2.2	45
Audit criteria	2.2.3	45
Scope and Methodology of Audit	2.2.4	46
Design and development of application	2.2.5	46
General Controls	2.2.6	47
Application Controls	2.2.7	48
Revenue Module	2.2.8	50
Accounts Module	2.2.9	51
Engineering Module	2.2.10	54
Planning Module	2.2.11	55
General Module	2.2.12	55
HR Module	2.2.13	55
Conclusion	2.2.14	56
Recommendations	2.2.15	56
CHAPTER III
TRANSACTION AUDIT
Panchayati Raj Institutions	3.1
Non-recovery of House Building Advance	3.1.1	57
Unfruitful expenditure and cost escalation on MPP buildings	3.1.2	58
Non-transfer of earmarked funds	3.1.3	60
Diversion of scheme funds	3.1.4	60
Unfruitful expenditure on Protected Water Supply Schemes	3.1.5	61
Ineffective functioning of Gram Panchayats	3.1.6	63
Urban Local Bodies	3.2
Non-commissioning of Solid Waste Management Project	3.2.1	65
Undue benefit to a bidder in award of Advertisement Tax collection rights	3.2.2	67
Unfruitful expenditure on a shopping complex	3.2.3	68
Unproductive expenditure on construction of shopping complexes	3.2.4	69
Parking of scheme funds in fixed deposits	3.2.5	70
Cost escalation due to defective survey, inordinate delay in recasting estimates and calling of fresh tenders	3.2.6	71
Locking up of funds	3.2.7	72

APPENDICES

		Reference to
		Paragraph	Page
1	List of funds, functions and functionaries devolved to PRIs	1.1.9	75
2	Minimum Performance Criteria (MPC) for CMAPP 1st Cycle and 2nd Cycle	2.1.7.1	76
3 a)	Implementation BMAPP – C1	2.1.8.4 & 2.1.9.1	77
3(b)	Implementation CMAPP – C1	2.1.9.1	77
4	Details of C2 component	2.1.10.2	78
5	Implementation of C3 proposals	2.1.11.1	79
6	Statement showing the details of one-third earmarked funds not transferred to respective Finance Corporations	3.1.3	80
7	Statement showing the details of two-third earmarked funds remained unspent and not transferred	3.1.3	81
8	Statement showing the details of funds earmarked under 15 per cent women and child welfare but expenditure not incurred	3.1.3	82
9	List showing shortfall in collection of Tax Revenue	3.1.6 (i)	84
10	List showing short collection of Non-Tax Revenue	3.1.6 (ii)	85
11	List showing the details of Gram Panchayats purchased materials without obtaining quotations and stock procured but not taken into stock register	3.1.6 (iv)	86
12	Statement showing the penal interest leviable by the GMC on the Company	3.2.1	87
	Glossary		89