Compliance Financial Performance
Sikkim

Report of 2012 - Financial Audit on Urban Local Bodies and Panchayati Raj Institutions, Government of Sikkim

Date on which Report Tabled:
Sat 28 Jun, 2014
Date of sending the report to Government:
Government Type:
Local Bodies
Sector Local Bodies

Overview

This report contains five Chapters. Chapter I has two sections, Section 'A' gives an overview of the Panchayat Raj Institutions in the State and Section 'B' contains audit comments on Financial Reporting. Chapter II contains Performance Audit on "Implementation of Rural Drinking Water Programmes". Chapter III and V contain Transaction Audit Paragraphs. Chapter IV has two sections, Section 'A' gives an overview of the Urban Local Bodies in the State and Section 'B' contains Financial Reporting.Despite the provision for collection of taxes under Section 39(1) and 40(1) of Sikkim Panchayat Act, 1993, 126 out of 176 GPs had neither initiated any steps to identify the areas for levying taxes nor collected any revenue.

In the absence of a sound basis for transfer of funds to the PRIs by the departments, the PRIs could not formulate any plan with certainty. Thus, the planning at the PRI level was on an ad-hoc basis.Although the State Government was to delineate the role and responsibilities of each tier of the PRIs by transferring 29 subjects for devolution of all the functions listed in the XIth schedule of the Constitution, the same was not implemented completely and only 15 subjects were transferred to the PRIs.Scrutiny of records of 83 GPs revealed that many basic records and registers were not maintained properly as required under the Sikkim Gram Panchayat (Financial) Rules, 2004.Despite provision under Sikkim Panchayat Act, 1993, none of the PRIs had maintained asset registers to indicate the assets possessed by the GPs/ZPs, cost of assets, maintenance cost, etc. Annual Physical Verification of assets as required under the Financial Rules was also not carried out in any of the GPs/ZPs.Out of total 2,498 habitations (Fully Covered-1, 608 and Partially Covered-890), the State upgraded 262 PC to FC through execution of 608 projects out of 1,668 sanctioned projects.Comprehensive planning for rural water supply was not ensured by formulating State Specific Policy Framework, Annual Comprehensive Water Security Action Plan and Village Water Security Plan.

There was short release of funds of Rs.65.82 crore by GOI and belated release of funds of Rs.27.30 crore to implementing agencies by the State Government. This short and belated release of funds affected programme implementation.The VWSC incurred an additional avoidable expenditure of Rs.10.25 lakh towards construction of sedimentation tank. Absence of adequate and timely maintenance of existing water supply projects led to damage of existing pipelines, tanks, and drying up of water sources resulting in 'slip back' of habitations from 'Fully Covered' to 'Partially Covered'.Quality control of water was not accorded due importance as the target for testing by the water testing laboratories was not fixed, field testing kits were not kept in functional condition, water samples were found 'unfit' for human consumption in many cases etc.Monitoring of executing agencies was inadequate in absence of establishment of Special monitoring cell and quality assurance team was not constituted to ensure proper quality of work. Neglect of Information Education and Communication (IEC) activities, as a result of which consumers were not well aware about management of water supply systems leading to drying up of sources, en-route tapping, etc.

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