GULBARGA: The Comptroller and Auditor General of India (CAG) has, in its latest report on the financial management of zilla panchayats, pointed out that a look at grants received by three zilla panchayats from 1997 to 2000 revealed that nine per cent to 36 per cent of the grants were received in the last month of the financial year. More than 20 per cent of the grants are received on the last working day of the financial year, it has said. The report has said that consequently, a substantial amount shown as spent in the Government account was not utilised by the zilla panchayats. The closing balance of the zilla panchayats increased from Rs. 526.73 crores in 1996-97 to Rs. 1,287.9 crores in 1999-2000. The release of grants to the zilla panchayats in the last month of the financial year resulted in the accumulation of funds. Consequently, the taluk and gram panchayats were deprived of funds, the report has said.

According to it, the chief accounts officers of zilla panchayats in general are unable to exercise adequate control on expenditure because of the failure of officials to forward the monthly expenditure statements. This forced 15 zilla panchayats to incur an expenditure of Rs. 77.90 crores in 1999-2000 without a budgetary provision.

The report has pointed out that Rs. 10.23 crores released by the Government for the implementation of centrally sponsored schemes by 13 zilla panchayats was diverted for other purposes.

It has said that in 1999-2000, gram panchayats were deprived of Rs. 21.53 crores as the money was not released by 12 zilla panchayats. The CAG has said that contrary to zilla panchayat rules, revenue receipts of Rs. 5.64 crores by six zilla panchayats released from the sale of farm products, tender forms, seedlings, scrap materials and others were not credited to the government account from 1997 to 2000.

Pointing out the inadequacies in internal controls of monthly expenditure and releases by zilla panchayats, the report has said that as per the rules, chief accounts officers are expected to conduct internal audit. However, between 1997 and 2002, the chief accounts officers did not conduct an internal audit at the zilla panchayat level.

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