AUDIT OBSERVATIONS
Opening Balance Sheet of KURSEONG MUNICIPALITY
As on 01-04-2007
We have verified the Opening Balance Sheet as on 01-04-2007 of Kurseong Municipality. Our Observations are as under:
LAND REGISTER
I .1 Plot wise Map of the total area of the Municipality is not available for verification of land register. Hence it is not possible for us to verify whether the entire land under the purview of the Municipality has been taken into account or not.
I.2 Land Register is prepared on the basis of old copy of deeds & also after referring to khaitan wherever available. On verification of the khaitans & land register we noted that the following plots of land were not incorporated in the Land Register. These were subsequently included.
| Description |
Mouza |
J.L.No. |
Khaitan No. |
Police Station |
LR Dag No. |
Area (in acre) |
Value |
Fallow |
Kurseong |
9 |
963 |
Kurseong |
1869 |
0.0081 |
1 |
Fallow |
Kurseong |
9 |
962 |
Kurseong |
2317 |
0.13 |
1 |
Fallow |
Kurseong |
9 |
961 |
Kurseong |
1352 |
0.0650 |
1 |
Slaughter House |
Kurseong |
9 |
820 |
Kurseong |
2635 |
0.07 |
1 |
Path |
Kurseong |
9 |
632 |
Kurseong |
1767 |
0.0269 |
1 |
Path |
Kurseong |
9 |
384 |
Kurseong |
1346 |
0.1037 |
1 |
Road |
Kurseong |
9 |
335 |
Kurseong |
1278 |
0.0994 |
1 |
Road |
Kurseong |
9 |
335 |
Kurseong |
1293 |
0.2325 |
1 |
Road |
Kurseong |
9 |
335 |
Kurseong |
1294 |
0.0331 |
1 |
Path |
Kurseong |
9 |
202 |
Kurseong |
450 |
0.0400 |
1 |
Roads and Pavement Register
II . 1 Under Serial No. 23 the correct amount of value of asset was Rs. 131864/- as per M.B.Register but the same was recorded as Rs. 90142/-. This resulted in a difference on Rs. 41722/-.This difference was subsequently rectified.
II . 2On verification we observed that the following expenses were incurred for construction/ maintenance of Road but were not included in the register. These were subsequently included.
Serial No. of the Sub-Register |
Description |
Amount Rs. |
15 |
Dr. S. Kumar Road |
386,881/- |
2 |
A.B. Road |
1,199,332/- |
15 |
Dr. S. Kumar Road |
706,005/- |
23 |
J.M.G. Road |
833,046/- |
Register of Building
Under Serial No. 5 the correct M.B. No.117 but the same was recorded as M.B.No.124. This was subsequently rectified.
Employees provident fund account balance does not tally with the Treasury Register. The reconciliation thereof is as under. No Employee wise Provident Fund Register is maintained by the Municipality. Consolidated Provident Fund amount of the employees is available.
PARTICULARS |
Amount
Rs. P. |
Amount
Rs. P. |
Balance as per Treasury pass book as on 31-03-2007 |
|
7,510,135.00 |
Add: Subscription for the month of March’ 07 deposited on 05-04-2007 |
103,689.00 |
|
Add: Interest for 2005-06 and 2006-07 credited to pass book on 10-03-2008 |
1,218,143.00 |
1,321,832.00 |
Employees Provident Fund Balance as on 01-04-2007 as per Balance Sheet. |
|
8,831,967.00 |
Register of Furniture & Fixtures
V . 1 In the following cases the value of the assets aquired were wrongly recorded. These were subsequently rectified.
| Serial No. of the Sub-Register |
Description |
Amount as originally recorded |
Correct Amount |
Rs. P. |
Rs. P. |
25 |
Steel Almirah (Big) |
3,150.00 |
3,500.00 |
91 |
Chair with Arm |
6,600.00 |
7,424.00 |
92 |
Chair without Arm |
23,100.00 |
25,980.00 |
93 |
Computer Chair |
1,900.00 |
2,138.00 |
V . 2 Furniture amounting to Rs. 101,858/- shown as a part of Stock in hand (Inventories) earlier was subsequently transferred to Fixed Assets (Furniture & Fixtures) after the anomaly was pointed out by us. The amount transferred was Rs. 105800/- after giving effect to the differences mentioned in Para V.1
VI. DEPOSITS RECEIVED
No separate Deposits Register is maintained by the municipality. The outstanding liability on this account was calculated by referring to the Contractors Register and the Cash Book.
FIXED DEPOSITS
No Fixed Deposits Register is maintained by the Municipality. Photocopies of Original receipts were checked. We were explained that the original receipts were lying with the Banks from whom overdrafts were availed.
VIII. SPECIAL FUND/SINKING FUND/TRUST OR AGENCY FUND
On verification of the above fund we noted that the following changes were required. These were subsequently rectified.
|
Spl Fund 1 |
Spl Fund 2 |
|
Provident Fund
Rs. P. |
Pension Fund (Treasury)
Rs. P. |
Amount as originally recorded |
8,086,451.00 |
148,279.00 |
Rectified Amount |
8,831,967.00 |
148,297.00 |
GRANT AND CONTRIBUTION FOR SPECIFIC PURPOSES
On verification of the above fund we noted that the following changes were required. These were subsequently rectified.
Description |
Amount as originally recorded
Rs. P. |
Correct Amount
Rs. P. |
Employment Generation (General) |
1,023,742.00 |
1,023,724.00 |
SECURED LOAN
The Municipality has two Overdraft accounts, each with State Bank of India (Account No. 10850644657) & Central Bank of India (Account No. O/D 82). The municipality had shown these balances in Schedule B-17 instead of B-5 (Secured Loan). These were subsequently rectified. PRINTING & STATIONERY
Printing & Stationery of the value of Rs. 5,74,212/- shown as part of Stock in hand (Inventories) earlier was deleted as these constituted Old Forms and Registers which had no value as at 01-04-2007. and further since these were all revenue items.
OTHER LIABILITIES
The outstanding salary of KUSP Employees was shown at Rs. 11,890/- instead of the correct amount of Rs. 9,955/-. This was subsequently rectified.
The amount of Rs. 25,120/- shown under the head P.Tax of the General Staff & other needed to be deleted as the amount has already been included in the O/s Salary of General and Casual Staff. This was subsequently rectified.
XIII.SUNDRY CREDITORS
The outstanding balance of Rajen Kr. Chetri was taken as Rs. 152,114/- instead of Rs. 3,385/-. This mistake was subsequently rectified.
DRAIN
An amount of Rs. 29,524/- shown under the head Power House was incorrect. The correct figure as per our verification is Rs. 55,451/-. This mistake was subsequently rectified.
JHORA
On verification our observation showed that the following expenses were incurred for construction/ maintenance of Jhora but were not included in the register. These were subsequently included.
Serial No. of the Register |
Description |
Amount
Rs. P. |
17 |
Kanti Jhora |
117,516.00 |
28 |
South Point Jhora |
115,771.00 |
XVI. OFFICE AND OTHER EQUIPMENTS
On verification we found out that in Sl no.10 UPS-APC (New) quantity is wrongly recorded as 1 instead of correct quantity of 2. This was subsequently rectified.
G.I.PIPE
On verification it was found that expenditure incurred amounting to Rs. 331,855/- for purchase/laying of G.I. Pipe under the head Waterways was not included. This was subsequently rectified under serial no. 91.
SUNDRY DEBTORS
XIV.1 Arrear of Rental Income from Municipal Properties are not supported by any Register(s). Complete Bills for rental arrear were not available.
CASH AND BANK BALANCES
On verification of the above fund we noted that the following changes were required. These were subsequently rectified.
| Description |
Amount as originally recorded
Rs. P. |
Correct Amount
Rs. P. |
Employment Generation (General) |
1,023,742.00 |
1,023,724.00 |
Central Bank of India (A/c No. 16928) |
422,654.00 |
482,654.00 |
LOANS AND ADVANCES
The municipality does not maintain any register for Loans and advances to employees and Advance to others. Loans and advances to employees amounting to Rs. 99,250/- and Advance to others amounting to Rs. 39,.000/- could not be verified.
DEPRECIATION
On verification it was found out that Depreciation charged on Parking Zone was wrongly taken as per Building i.e, 30 years instead of taking 7 years applicable to Concrete Road. This was subsequently rectified.
CASH BOOK
The Cash Books for the year 2001-02 & years earlier to that date were not complete.
XXIII. DETAILS OF PHYSICAL VERIFICATION
The following are the details of physical verification carried out by us.
| Sl. No. |
Name of Asset |
Location (Ward No.) |
Area |
Value
(Rs.) |
Qty. as per records |
Qty. as per physical verification |
|
ROADS |
|
|
|
|
|
1 |
JNP Road |
8,12 |
189.4 |
1/- |
|
|
2 |
Dowhill Road |
7,1,2 |
1353.63 |
2/- |
|
|
3 |
Naya Busty |
6 |
7019.08 |
29,250/- |
|
|
4 |
Father Wary Road |
2,3 |
2802.25 |
6/- |
|
|
5 |
Hill Curt Road |
12 |
4843.4 |
58,100/- |
|
|
6 |
Naya Bazar |
15 |
452.84 |
56,605/- |
|
|
7 |
A.K.Mukherjee Road |
2,19 |
16632.6 |
15/- |
|
|
|
LATRIN |
|
|
|
|
|
8 |
Near Ashok Bhawan |
8 |
|
64,319/- |
1 |
1 |
9 |
Sweeper Quarter |
1 |
|
25,200/- |
1 |
1 |
10 |
Near Bhanu Pradhan House |
2 |
|
33,250/- |
1 |
1 |
11 |
Ward No. 12 |
12 |
|
23,300/- |
1 |
1 |
12 |
Subedar Basti |
7 |
|
34,029/- |
1 |
1 |
|
CREMETORIUM |
|
|
|
|
|
13 |
Murdahati |
11 |
350 |
504,292/- |
3 |
3 |
14 |
Burning Shed |
1 |
1 |
|
DUSTBIN |
|
|
|
|
|
15 |
D.H.Road |
8 |
16.65 |
21,641/- |
1 |
1 |
16 |
W.No. 14 |
14 |
33.31 |
41,633/- |
1 |
1 |
17 |
W. No. 10 |
10 |
16.67 |
21,665/- |
1 |
1 |
|
COMMERCIAL COMPLEX |
|
|
|
|
|
18 |
Super Market and community hall |
13 |
1500 |
346,600/- |
1 |
1 |
|
BUILDINGS |
|
|
|
|
|
19 |
Sweeper Quarter |
12 |
1125 |
1,060,222/- |
|
|
20 |
Municipal Office |
8 |
1150 |
261,359/- |
1 |
1 |
21 |
Boys Primary School |
8 |
1450 |
320,982/- |
1 |
1 |
22 |
Girls Primary School |
8 |
1280 |
85,547/- |
1 |
1 |
|
RESERVOR |
|
|
|
|
|
23 |
Ward No. 17 |
17 |
|
122,399/- |
1 |
1 |
24 |
Saint Helen |
3 |
|
153,829/- |
1 |
1 |
25 |
Dowhill Area |
1 |
|
89,413/- |
1 |
1 |
26 |
Ward No.1 |
1 |
|
105,630/- |
1 |
1 |
27 |
Ward No.1 |
1 |
|
40,985/- |
1 |
1 |
|
JHORA |
|
|
|
|
|
28 |
College Jhora |
5 |
|
190,008/- |
1 |
1 |
29 |
Devistan Jhora |
4,10 |
|
144,932/- |
1 |
1 |
30 |
Hamal Jhora |
10 |
|
133,568/- |
1 |
1 |
31 |
Kanti Jhora |
11 |
|
719,052/- |
1 |
1 |
32 |
Tekbir Jhora |
2 |
|
273,277/- |
1 |
1 |
33 |
Saint Helen |
4 |
|
70,343/- |
1 |
1 |
|
HYDRANT |
|
|
|
|
|
34 |
Sudha Patole |
8 |
|
1/- |
1 |
1 |
35 |
Ward No. 12 |
12 |
|
90,944/- |
1 |
1 |
36 |
Ward No. 9 |
9 |
|
1/- |
1 |
1 |
|
STATUE |
|
|
|
|
|
37 |
Eagle Craig |
|
150 ft |
1/- |
1 |
1 |
|
VEHICLE |
|
|
|
|
|
38 |
Tata 207 DI Tipper |
|
|
509,220/- |
1 |
1 |
39 |
Maruti Gypsy |
|
|
1/- |
1 |
1 |
40 |
Small Teller of Truck |
|
|
1/- |
1 |
1 |
41 |
Big Teller of Truck |
|
|
1/- |
1 |
1 |
42 |
Tractor |
|
|
1/- |
1 |
1 |
XXIV . PHYSICAL VERIFICATION RECORDS
Physical Verification records have not been maintained by the Municipality.
CHANGES IN FIGURES CONSEQUENT TO AUDIT
The following are the details of changes under various heads of accounts consequent to our audit.
| Serial No. |
Account Head |
As per Original Balance Sheet as at 01-04-2007
Rs. P. |
As per Rectified Balance Sheet as at 01-04-2007
Rs. P. |
Difference
Rs. P. |
1 |
Land |
1,636.47 |
1,642.47 |
6.00 |
2 |
Roads & Bridges |
2,681,133.57 |
4,999,593.10 |
2,318,459.53 |
3 |
Sewerage and Drainage |
8,785,524.12 |
8,917,775.58 |
132,251.46 |
4 |
Waterways |
11,455,247.46 |
11,773,913.88 |
318,666.42 |
5 |
Furniture, Fixture, Fittings and Electrical Appliances |
38,002.50 |
138,827.50 |
100,825.00 |
6 |
Earmarked Fund |
8,699,729.00 |
9,445,263.00 |
745,534.00 |
7 |
Reserves |
21,942,692.32 |
24,394,781.18 |
2,452,088.86 |
8 |
Investment- Other Fund |
13,199,729.00 |
13,945,263.00 |
745,534.00 |
9 |
Stock in trade |
574,211.90 |
37,853.14 |
536,358.76 |
10 |
Sundry Debtors |
3,465,516.00 |
5,143,104.43 |
1,677,588.43 |
11 |
Cash and Bank Balances |
22,410,055.50 |
23,256,476.50 |
846,421.00 |
12 |
Other Liabilities |
2,755,316.53 |
2,586,633.53 |
168,683.00 |
13 |
Buildings |
9,005,629.36 |
8,545,979.89 |
459,649.47 |
14 |
Grants, Contribution for Specific Purpose |
26,287,404.50 |
26,287,386.50 |
18.00 |
15 |
Secured Loans |
0.00 |
1,929,542.12 |
1,929,542.12 |
|
