audit report on the accounts of the vuuru...

AUDIT REPORT ON THE ACCOUNTS OF THE

VUURU NAGARAPANCHYAT NAGARAPANCHAYAT, VUYYURU MANDAL,

KRISHNA-MACHILIPATNAM DISTRICT FOR THEYEAR 2016-17

File Number : SA/KNA/VUYYURU/N PANCH(1)/VUURU NAGARAPANCHYAT/2016-17

Name Of the Auditor (s) :

1. Mr/Mrs SATYANARAYANA - AUDIT OFFICER

Date Of Audit :

From 12-07-2017 To 29-07-2017

Name (s) of Executive Authorities :

1.Mr R. Kalibabu - Commissioner From 01-04-2016 To 31-05-2016

2.Mr V.B.S. Sekhara Rao - Commissioner From 01-06-2016 To 31-03-2017

3.Mr V.B.S. Sekhara Rao - Commissioner From 01-06-2016 To 31-03-2017

GENERAL FUND

Para Number : 1

VARIATION IN ACCOUNT FIGURES (Code : 1) Rs : 0

03) VARIATION IN THE CLOSING BALANCE IN ANNUAL ACCOUNT AND TREASURY PASS BOOK AS ON 31.03.2017. (Code.No.01) As verified from the Annual Account for the year 2016-17 it is noticed that, there is a difference in the Closing Balances as detailed below. Sl.No. Closing balance as Per Annual Account Closing balance as Per Treasury Pass Book Variation 1. 14,10,03,159.00 14,45,59,563.00 35,56,404.00 Total Rs. 14,10,03,159.00 14,45,59,563.00 35,56,404.00 But the reasons for this variation were not

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explained in Audit. The Difference would need to be reconciled and correct Opening balance would need to be adopted as per annual account. 4) VARIATION IN THE OPENING BALANCE NOT EXPLAINED:-. (Code.No.01) As verified from the Annual Account the opening Balances of General Fund was arrived for Rs. 4, 09, 28,027.00 and C.G.F. of Rs. 2, 95, 64,248.00.But the reasons for not explained in Audit. Since the cash books (Manual) which were maintained in the Nagar panchayati (all schemes and funds) were not closed monthly and not even annually under the hand and seal of the Commissioner. The closing balance was also not arrived for the year 2015-16. In the absence of the maintenance of the cash books, the correctness could not be verified in audit. The Difference would need to be reconciled and correct Opening balance would need to be adopted as per annual account. (Code No.01) 05) RECONCILIATION NOT DONE BETWEEN CASH BOOK AND TREASURY PASS BOOK/BANK PASS BOOKS - OTHER DEFECTS - NEEDS ACTION: According to Para 196 of A.P. Budget Manual read with G.O.Ms.No.318, Finance & Planning Department, dated 10.11.1980 and orders of Government issued from time totime, the Departmental expenditure and receipt figures should be got reconciled (Major Head of accounts wise) with those booked by the Treasury every month in order to ensure that no misclassification or wrong account of expenditure and receipts took place and also to detect fraudulent drawls if any. TREASURY PASS BOOK NOT CERTIFIED BY TREASURY AUTHORITY; During the course of Audit it is observed that the Treasury pass books were not certified by the treasury Authority. The closing balance of cash books were also not arrived at monthly and annually. In the absence of the above the correctness could not be verified in audit.

Para Number : 2

EXCESS UTILISATION OF GRANTS/FUNDS (Code : 2) Rs : 0

06) GENERAL FINANCIAL REVIEW: (Code No.02) The receipts and payments during the year were shown in the Receipts & Payments statement together with the opening and closing balance. The consolidated annual account was showing the closing balance of Rs. 5,89,88,646/- as on 31.03.2017.The cash books (Manual) which were maintained in the Nagarpanchayati (allschemes and funds) were not closed monthly and not even annually under thehand and seal of the Commissioner. The closing balance was also not arrived at monthly and annually. In the absence of the maintenance of the cash booksand their regular and proper closing the correctness could not be verified in audit. The relevant register of DD/MO received was also not maintained properly. As such the classification of the receipt could not be known in audit.The receipt side of the cash book was not maintained at all as such the treasury adjustments, voucher adjustments etc., could not be verified. The figures in the annual account were not supported by any subsidiary registers which were ought to be maintained. In the absence of the same the executive authority would need to explain as to how the figures exhibited in the annual account were correct and reflect true and fair view of the transactions contained therein. DETAILS OF THE CLOSING BALANCES AS PER ANNUAL ACCOUT FOR THE YEAR 2016-17 AS ON 31.03.2017 SL.No. DETAILS M.G.F C.G.F TOTAL 1. As per Account 4,00,13,856.00 10,09,89,303.00 14,10,03,159.00 TOTALS: 4,00,13,856.00 10,09,89,303.00 14,10,03,159.00 The cash books (Manual) which were maintained in the Nagar panchayati (all schemes and funds) were not closed monthly and not even annually under the hand and seal of the Commissioner. The closing balance was also not arrived at monthly and annually. In the absence of the maintenance of the cash books, the correctness could not be verified in audit. DETAILS OF CONSOLIDATED CLOSING BALANCE OF TREASURY/BANK PASS BOOKS: C.B. as per the General Funds Pass book (001) : Rs 9,06,42,022.00 C.B. as per the General Funds Pass book (002): Rs 1,48,92,390.00 C.B as per the 13 th Finance Funds (003) : Rs. 76,37,398.00 C.B.as per the 14th finance Funds Rs. 3,13,88,053.00 C B as per D D O account (32131761651 SBI) : Rs. 0.00 CB as per CPO Grant (844812022 SBI) : Rs. 0.00 CB as per ASC Grant (0611111100001006 AB) : Rs. 0.00 CB as per Election Grant (0611111100001547 AB) : Rs. 0.00 ------------------------------- Total Rs. Rs .14,45,59,563.00 ------------------------------- Non-submission of Annual Account (E R P)-Needs Early Action:- While conducting audit of Nagar Panchyath Vuyyuru, the online Account (ERP) was not got prepared and produced to Audit. In the

absence on line (ERP) Account the Audit was conducted as per the Account prepared manually, which was submitted by the Nagar Panchyath. In the Absence of the on line account the discrepancy if any noticed later the same shall be rectified under intimation to Audit for approval. The loss if any caused in this regard, would need to be made good from the person or personresponsible.

Para Number : 3

ADVANCES PENDING ADJUSTMENT (Code : 8) Rs : 0

(Code.No.08) 08) ADVANCES- ADVANCES SANCTIONED DURING YEAR NOT ADUJUSTED NEEDS RECOVERY - Rs.1,05,000.00 On verification of General fund cash books (001&002) for the year 2016-17 an amount of Rs.1,05,000.00 were drawn and paid to the following employees toward various advances. But no amounts were adjusted till the end of the audit. Early action would need to be taken either to adjust or recovered from the person or persons responsible and credit to Nagarpanchayat funds s.no Voucher No & date Particulars Amount Rs. 1 2 3 4 (002) 3 47/28.07.16 Paybleto Sri Ch.Kumar Raj, Health Asst. towards to Digital Key 5,000.00 4 160/12.01.2017 Payble to Sri M.Venkateswasra Rao, S.A.Housing for All 1,00,000.00 TOTAL 1,05,000.00

Para Number : 4

VIOLATION OF RULES (Code : 9) Rs : 0

P ( code :9 [19])

09) TAX REVENUE RAISED BY THE MUNICPAL COUNCIL: (Code.No.09) The Tax revenue consists of Property tax, Water tax and Advertisement tax etc., tax on property is the main source which constituted the bulk of revenue receipts of Nagar panchayati during the year. An analysisof tax revenue for the current year and the preceding two years is given below. Sl.No. Nature of tax 2014-15 2015-16 2016-17. 1. Property tax 1,06,77,424-00 85,84,170.00 1,57,01,485.00 2. Advertisement tax 1,28,620-00 83,383.00 0.00 3. Water Tax 0.00 0.00 15,66,640.00 4. Vacant land tax 15,460-00 4,28,748.00 43,420.00 5. License fee 4,14,350-00 7,36,535.00 4,05,443.00 6. Leases 8,23,550-00 4,11,930.00 0.00 7. Entertainment tax 0.00 7,77,550.00 0.008. Encroachment fee 0.00 1,000.00 0.00 a) REVENUE RECEIPTS AND ITS ANALYSIS: The source of revenue receipts during the year was through (1) revenue raised by the Nagarpanchayati (2) receipts from the state government towards share of Entertainment tax, M.V. tax, land cess and surcharge on stamp duty etc., (3) Grant-in-aid received from the Government. An analysis of receipts under the above heads Preceding year and current year is given below. Sl. No. Item of Revenue 2015-16 Rs. 2016-17 (Rs.) Increase / Decrease 1. Revenue raised by Municipal Council a) Tax Revenue 1,01,02,252.00 1,73,11,545.00 Increase b) Non-Tax revenue leases, Fees and rents etc., 34,95,711.00 4,05,443.00 Decrease Others 1,41,06,386.00 26,36,026.00 Decrease Total: 2,77,04,349.00 2,03,53,014.00 2. Receipts from Government. a) Entertainment tax 7,77,550.00 0.00 Decrease b) Surcharge onStamp duty 91,90,759.00 1,15,38,670.00 Increase c) Other grant 15,26,000.00 4,26,39,132.00 Increase Total: 1,14,94,309.00 5,41,77,802.00 b) NON - TAX REVENUE OF THE MUNICIPAL COUNCIL: Building rents, leases of markets, slaughter houses, betterment charges etc., from the non-tax revenueand constituted percentage of the Nagarpanchyati. An analysis of the non-taxrevenue under some principal heads for the year is given here under. Sl.No. Item of Revenue 2016-17 (Rs.) 1. Water charges 15,66,640.00 2. Leases of Markets 3,70,000.00 3. Slaughter house 0.00 4. License fees (D & O Trades) 4,05,443.00 5. Building license fee 20,47,478.00 6. Other rents 96,660.00 7 Rent on Vacant land 43,490.00

Para Number : 5


P ( code :9 [19])

(Code No.09) 11) AREAR DEMAND OF DEFUNCT GRAMAPANCHAYATINOT PRODUCED- TIME BARRED TAXES AND FEES NOT ARRIVED: The arrears of Taxes and Fees relating to the year 2008-09 which were allowed to be time barred by limitation of time prescribed under section 365 (1) of the A.P. Municipalities Act, 1965 during the current financial year. According to section 365 (2) of the A.P. Municipal Act 1965 it is the duty of the Commissioner to place before the council a list of arrears due to the Municipal Council which are likely to become time barred, at least one year before the limitation stating the reasons for the non-collection of such taxes and seek instructions of the council in regard to recovery of such taxes. According to section 365 (3), if the Commissioner fails to submit such list or omits or show in such list any arrears due to failure on the part of bill collector to any other employee as the case may be, is deemed to be negligent and action under the section 374 (1) of the Act for the recovery of all such recoveries should be taken against him. Record showing the placement of the matter before the council in respect of the taxes and fees which are allowed tobecome time barred was not pointed out. Under section 374 (1) the loss caused to the Nagar panchayat due to the above defect has to be assessed andmade good from the persons responsible. Further it was noticed in audit that though elaborate procedure was prescribed in rules to take action on the taxes likely to become barred by time in practice the Arrear demand registerswere not being maintained to quantify the taxes that are likely to be barred by time. This deficiency of not maintaining the ADRs relating various taxes and non taxes is resulting in the inability of the Nagar panchyati even to quantify the loss on account of barring by limitation of time. The Arrear Demand Registers relating to defunct Gramapanchayati were not produced to Audit. Further, It is not known to Audit whether the arrears were brought to the records of newly upgraded Nagar panchayati or not. 12) CASH BOOKAND SUBSIDIARY REGISTERS NOT MAINTAINED PROPERLY - ENTRIES ON THE RECEIPTS SIDE NOT MADE, NOT TOTALLED, NOTBALANCED AND NOT RECONCILED WITH THE PASS BOOK BALANCES MONTHLY/ANNUALLY- HIGHLY IRREGULAR. (Code.No.09) As per the -Andhra Pradesh Municipal Accounts Manual- the Urban Local bodies should maintain each financial year the -General cash book- in form GEN-1, which shall be the Book of original entry for recordingtransactions involving cash and /or bank pass book. The cash book has two sides Viz.-Receipts- and -payments-. All collections on behalf of the ULB shallbe recorded on the -Receipts- side and all payments shall be recorded on the -payment- side. Separate cash books (Subsidiary) shall be maintained in respect of each bank account. Designated Bank accounts may be operated fordeposit of collections pertaining to property and other Taxes, Supply, Public works, Special funds etc., as has been provided in the applicable rules and regulations. Monthly Abstract should be recorded in the General Cash Book showing the balances of all the subsidiary cash books(General Fund Cash Book, DDO Current A/c, Grants cash Book, FDR, Permanent Advances Register etc.,) and the balance of Bank so that the Head of the institution could know the actual balance available in the insitution on any particular date. There were no periodical closings under proper attestation. Reconciliation of balances of cash book with those of banks was not made regularly. Errorneous/Fraudulent drawls can be detected only through reconciliation. Such an important financial internal control mechanism was ignored. No pages should be left blank and each page should be serially numbered duly enclosing a certificate to the extent of pages in the cash book. However many pages were left blank in between transaction and have not been cancelled under attestation. 13) VARIATION IN COLLECTION FIGURES - AS PER D C B FIGURES AND ANNUAL ACCOUNT - NEEDS RECONCILITION: (Code.No.09) On verification of the Annual account for the year 2016-17 it is noticed that there is huge variation as detailed below between the certified D C B Statements and annual account approved by the Commissioner. Sl.No. Item of Receipt As per Account As per D.C.B. 1. Property Tax 2,86,180.00 1,29,83,261.00 2. Water Tax 14,52,360.00 15,66,640.00 3. VLT 39,016.00 43,490.00 4. Leases 0.00 3,70,000.00 5. D & O Traders 3,91,883.00 6,61,031.00 6. Town Planning 41,69,283.00 20,47,478.00 7. Misc.Receipt 26,37,747.00 26,42,552.00 The reasons which rendered the variation between the Annual account and D.C.B. figures were not explained in Audit. Early action would need to be taken to put the figures reconciled and produced to audit for verification. The loss if any sustained in this regardwould need to be made good from the person or persons responsible and credited to Nagar panchayati funds under intimation to audit.

Para Number : 6


P ( code :9 [19])

(Code.No.09) 14) PROPERTY TAX HEAVY PENDING NEEDS RECOVERY Rs.1, 64, 33,581.00 As seen from the demand registers for the year 2016-17 relating to Vuyyuru Nagara panchayat, it is noticed that heavy pending balance to be collected from the following years No action has been taken to collect the heavy pending balances. Early action would need to be taken to realize in the heavy pending balances and produce for verification ofaudit. S.No. Year Amount Involved.Rs. 1. 2012-13 1,10,000.00 2 2013-14 3,40,002.00 3 2014-15 9,09,233.00 4 2015-16 13,59,235.00 5 2016-17 1,37,15,111.00 Total. 1,64,33,581.00

Para Number : 7


P ( code :9 [19])

(Code.No.09) 15) WATER TAX HEAVY PENDING NEEDS RECOVERY Rs.38, 01,538.00 As seen from the D.C.B.Report for the year 2016-17 relating to VUYYURU NAGARA PANCHAYATI it is noticed that heavy pending balance to be collected from the following years, no action has been taken to collect the heavy pending balances. Early action would need to be taken to realize in the heavy pending balances and produce for verification of audit. S.No. Year Amount involved. 1. 2012-13 1,25,115.00 2. 2013-14 3,69,723.00 3. 2014-15 7,29,191.00 4. 2015-16 12,24,029.00 5. 2016-17 13,53,480.00 Total 38,01,538.00

Para Number : 8


P ( code :9 [19])

(Code.No.09) 16) RECEIPT OF STATUTORY INCOME NOT WATCHED - INCOME LOSS: It is the responsibility of the grant receiving authority to watch the demand and receipt of Statutory Income granted in the Act and Rules. Authorities are generally failure to watch the receipt of Statutory Income and relaying upon whatever adjustment are made in P.D. Account by the Treasury. In verification of the Annual Account the S.F.C. funds for the year are not adjusted to funds of Vuyyuru Nagara panchayati. Action would need to be taken to get the grant due to be adjusted and produced to audit forverification. 17) DETAILS OF BOOK ADJUSTMENTS - NOT RECORDED IN CASH BOOKS AND ACCOUNT POSTING REGISTER: (Code No.09) As verified from the cash book and account posting register it is noticed that the details of book adjustments were not recorded in cash book and the rough posting register was not written up. The total lump sum figures were exhibited in Chitta. In the absence of the details of book adjustments, the credits of adjustments in the respective accounts could not be verified in audit. (Code No.09) 18) CHITTA - CHITTA NOT MAINTAINED PROPERLY - NOT IN ACCORDANCE WITH THE INSTRUCTIONS SPECIFIED IN THIS REGARD - LOSS IF ANY SUSTAINED TO MUNICIPAL FUNDS - NEEDS RECOVERY. During the course of audit it was noticed that the chitta produced to audit was not maintained properly i.ein accordance with the instructions specified in this regard as follows. 1. Thatthe entries in the chitta were made in accordance with the rules and instructions on the subject ( Note: the secretaries of all municipal councils except in the third grade Municipal Councils are required to follow the triplicate challan system for payment of miscellaneous dues in to Municipal treasuries). When the payment of miscellaneous dues were made by the parties themselves in to Municipal Treasuries, they should prepare a challan in the form appended to G.OMs.NO: 439, M.A, Dt: 02.09.1960 in triplicate showing the full particulars of the amount sought to be paid. The challan wise first be presented to the concerned JA/SA in Municipal Office, who will

examine it and put initial in the left hand top corner of the original. If the finds it correct in regard to all particulars, the party should then present it with the money to the sharoff who will receive the receipts in triplicate challans, number the challan in a consecutive order, sign it and send it to the JA/SA maintaining the register of miscellaneous receipts or the JA/SA who maintains the register of license and permissions. The later will enter the challan number particulars and amount in his register, sign the challan in token of having done so in the place provided therefore at the bottom of the challan in all the three forms of challans and send the same to the SA who is to be authorized to sign the challans. This SA will be designated as a chashier.After satisfying himself from the entries on the challan that the amount has been made independently by another JA in the register of miscellaneous receipts or register of license and permission. The SA to be called cashier will sign the challan intended to the party. The duplicate will be sent to the accountant and the original be retained by the cashier. At the end of the day all such original should be arranged serially , stitched together and traced by the cashier in to the register of miscellaneous receipts and register of licenses and permissions. He should then tally the total collections for the days with the totals in those two registers and the totals in the shoraff-s chitta mentioned above should be taken to the main chitta before reconciliation of the total there of with the cash book at the end of every day. The challans to be arranged and situated will be produced for audit (G.O.Ms.No: 439, M.A Dt: 02.09.1960). 2. That the amounts shown as realised were remitted in to the treasury without delay and that no portion was with held. 3. That the total cash balance at the end of the each day including balance, if any left un-remitted from the previous day-s collections is verified by the Manager or other Head ministerial Officer at the close of each day and by the Municipal Commissioner at least once a week, and the balance so verified was stated in words over the initials of the verifying officer. 4. That the totals were correct. 5. That revenue brought to credit by transfer of adjustments as well as amounts of grants etc., adjusted in the treasury were not entered in the register. 6. That cheques received in payment of Municipal dues were not credited before realization. (Code.No.09) 19) GRANTS RELEASED TO NAGAR PANCHYATI FOR VARIOUS PURPOSES - GRANTS APPROPRIATION REGISTER NOT MAINTAINED: During the year under audit several grants both statutory and non-statutory were sanctioned and adjusted to Nagar panchyati. A separate register of appropriation of grants was not maintained and produced to audit. In the absence of which, it could not be verified in audit, whether the grants released to the ULB were utilized properly for the purposes for which they were sanctioned without diversion and within the time allowed for utilization. Action would need to betaken to maintain the grants appropriation register and the un-utilized balance, if any, would need to be refunded to Government and remittance challans produced for audit. (Code.No.09) 20) DEPOSITS - PENDING FROM YEARS TOGETHER SHOULD BE LAPSED - NEEDS ACTION: Deposits remaining unclaimed for three completed years after their refunds fall due and surplus proceeds of distrait property not claimed within six months from the date of sale should be lapsed and credited to the revenue Head of account. The deposits thus lapsed shall be entered in a register called-Register of Lapsed Deposits- which should be maintained in the form set outin Annexure VII to the rules relating to Deposits issued in G.O.Ms.No.519, MA dated 04.07.1970 as amended in G.O.Ms.No.385, M.A., dated 12.07.1974.For the claims subsequently made and admitted, the amounts concerned maybe refunded from the General Funds of the Nagar Panchyat with the sanctionof the Nagar panchayati.However ,during course of audit the demand register not produced Therefore action would need to be taken accordingly under a report to audit. (Code.No.09) 21) PROPERTY TAX - GOVERNMENT OFFICES LOCATED IN PRIVATE BUILDINGS AND PAYING RENT TO OWNERS - REGISTERS NOT MAINTAINED AND PRODUCED TO AUDIT: Information relating to Govt. Offices located in private buildings was not available to verify whether property Tax was leviedas per the rents paid by Government offices to the building owners. A registercontaining Government offices located in private buildings should be maintained so as to verify whether Property Tax was being levied as per the rent paid by the Government Offices or not and in order to prevent leakage of revenue to the Nagar panchayat similarly a register containing Central and State Government Offices located in their own buildings also needs to be maintained so as to verify the correctness of levy of Property Tax as per rules relating to levy and collection of the P.T on Government buildings. (Code No.09) 22) PHONE TOWERS INSTALLATION - PERMISSION FEE NOT COLLECTED : According to G.O.Ms.No.183, M.A & UD (M) Dept., dt. 27-2-2008 all the cellular companies and telecom companies and all other companies are required to obtain permission from the local authority concerned for installation of their towers. Further, according to Municipal Act., Installation Charges have to be paid by the cellular companies to the

Municipal Civic body and the civic body can also levy tax either on the cellular companies or on the owners of the buildings on which the cell towers have been installed as one time installation charges. A writ petition was filed in W.P No.326 of 2013 in Honourable High Court not to interfere with the function of the towers. After hearing both parties i.e. petitioners and respondents., the Honourable High Court ordered there was no gain saying that matter required a policy matter so that respective GPs and ULBs would be applying the same standards uniformly and would not be applying the same standards uniformly and would not be varying case to case basis. However, the policy formulation may take longer time so in the interest of both petitioner and the respondent the petitioner may be directed to deposit asum of Rs.10000/- within 30 days from today with the respondent local body. The amount is determined on a tentative basis only. But, this was not being followed in the Vuyyuru Nagarpanchayat since, it was potential revenue to the ULB, the ULB should fix the demand for such income and should collect it from Telephone companies from time to time. During the year under audit, the permission fee from telecom companies was not collected. The executive authority himself would need to be held responsible for the loss caused due tonon collection. Action would need to be taken in this regard and tap this potential source of income to augment the own resource of the Nagar panchayat Therefore, immediate action may be taken not only to collect the amounts but also insist upon getting the unauthorized cell towers regularizedsatisfying all the conditions like structural stability, willingness of owners andneighbours etc. (Code.No.09) 23) ADVERTISEMENTS - EXHIBITED WITHOUT WRITTEN PERMISSION OF THE COMMISSIONER - FINE NOT IMPOSED - LOSS TO THE NAGAR PANCHYAT - NEEDS ACTION: No person shall without the written permission of the Commissioner, erect, exhibit, fill or retain any advertisement whether now existing or not upon anyland, building wall hoarding or structure. The work -structure- in this sectionshall include a tram car omni bus and any other vehicle and any movable board used primarily as an advertisement or an advertising medium. Further, according to Municipal Act, for exhibiting an advertisement withoutpermission, a fine up to Rs.1, 000-00 can be imposed and in no case, it shall be less than Rs.500-00. On verification of the records relating to tax on advertisement, it was noticed that applications received and permissions issued to erect, exhibit, fix or retain the advertisements for which tax was levied during the year 2016-17 were not furnished to audit. Therefore, it was construed that, those advertisements were noticed during the inspections of the town planning personnel. As the advertisements were exhibited without the written permission of the Commissioner, fine has to be imposed from Rs.500-00 to 1,000-00 on the owners of those advertisements. But, the same was not imposed and the NAGAR PANCHAYATI body suffered loss of revenue to that extent. Therefore, action would need to be taken to impose fine and report compliance to audit. 24) D & O TRADES - LICENSE FEE COLLECTED LICENSES NOT ISSUED TO TRADERS - IRREGULAR: (Code No.09) The counter foils of the licenses issued to the traders i.e. form No.8 for the year 2016-17 were not made available for verification in audit. The license fees collected through challans were not produced to audit for verification. It was irregular to allow the traders to conduct the business without issue of license even though they had paid the fees. Therefore action would need to be taken to issue the licenses to the traders and counter foils produced to verification. (Code No.09) 25)TRADE LICENSE - TRADE LICENSE FEE NOT COLLECTED FROM FUNCTION HALLS, BARS AND WINE SHOPS etc.,- NEEDS IMMEDIATE ACTION. As per extra ordinary Gazette No: 7 Dated: 31.01.2009 the trade license fees has to be collected for Bars, wine shops etc. as detailed below. i) Bar : Rs.15,000.00 ii) Wine Shop : Rs.10,000.00 iii) Function Hall (A/c) : Rs.20,000.00 iv) Function Hall (Non A/c) : Rs.10,000.00 In the absence of the D & 0 Trade registers the correctness of the license fees collected according to the rates mentioned above could not be verified in audit. The loss if any caused in this regard would need to be made good by the person or persons responsible. 26) ENCROACHMENT - CLASSIFICATION NOT DONE:- (Code No.09) The list of encroachments in the Nagar panchayati was not got prepared by the Nagar panchayati surveyor / Building inspector and verified by the Commissioner. The encroachments were not got classified as objectionable and non-objectionable by the Commissioner and got approved by the Nagar Panchayati and the District Collector. All the objectionable encroachments have to be licensed under section 193 of the Act duly collecting the requisite fee. An amount of Rs.1, 000.00 collected towards Encroachment Fee. In the absence of proper demand having been fixed with reference to the encroachment list, the correctness of the collections made and balance left could not be ascertained in audit. Immediate action may be taken to rectify the defect. 27) PETTY CASH BOOK - NOT MAINTAINED: (Code No: 09) The petty cash book to watch the payments of sums drawn through self cheques was not maintained and produced during the year. The amounts

drawn through self cheques being taken on receipt in the cash book and dailypayments are recorded. Petty cash book would need to be maintained for recordings amounts drawn in self cheques and to which the correctness of undisbursed amounts daily. The same would need to be maintained and produced 28) UNAUTHORISED CONSTRUCTIONS- REGISTER OF UN- AUTHORIZED CONSTRUCTIONS NOT MAINTAINED - IRREGULAR: (Code No.09) During the course of audit, it was noticed that the register of unauthorized constructions was not maintained in town planning section. (Code No.09) 29) NON ISSUANCE OF OCCUPANCY CERTIFICATE AND CONSEQUENT LOSS: Occupancy Certificate shall be mandatory for all buildings and unless such certificate has been granted by the sanctioning authority no person shall occupy or allow any other person to occupy any building or part of the building. The Property owners consequent upon completion of the construction have to intimate to the Nagar panchayat of the same in the prescribed proforma to facilitate the ULB to issue occupancy certificate and levy of PT. It was observed that there was no such arrangement indicating failure of the Nagar panchayat in enforcing the provisions laid down. Government have issued G.O.Ms.No.168 MA&UD(M) Department, Dated 07.04.2012 and as per Rule 26(d) the rate of compounding fee shall be equivalent to 100% of the value of the land as fixedby the Registration Department at the time of compounding for the violated portion. As the files concerned were not produced to audit the observance of the rules issued in the said G.O by the ULB could not be checked in audit. Further clause -g- under Rule 26 of GO.Ms.No.168, MA & UD (M) Dept., dated 07-04-2012 the functional/line agencies shall not give regular connections of power, water, sewerage etc., unless such occupancy certificate is produced or alternatively may charge three times the tariff till such time occupancy certificate is produced. It was noticed in audit that in most of the cases the said connections were given even without issuing the occupancy certificate and normal tariffs are charged. Thus non production of building application files to audit would give scope for non detection of such irregularities which cause huge loss to the income of the ULBs. (Code No.09) 30) WORKS ENTRUSTED ON NOMINATION BASIS WITHOUT FOLLOWING THE PROCEDURE - NOT ADMISSIBLE: In G.O.Ms.No.94 of Irrigation and CAD (PW-COD) department, dated 01.07.2003, item 14 (iii), the Government have issued certain guidelines for entrustment of workson Nomination Basis. (i) For giving works on selection, list of contractors with good track record will be prepared. (ii) In preparing these lists the volume of work done by them, the quality of works done by them, the infrastructure possessed by them, and also works on hand and their capability will be considered. (iii) The list of contractors should be prepared and published in advance regularly i.e. once in six months. From these lists contractors will be called for negotiations in group of five in rotation. The contractor offering to do the work at the lowest rate will be given the work. Time allowed for selection by the committee will be 5 days. (iv) In any case ina year the value of works grounded shall not exceed each of the division of tender works or nomination works. As no such allocation was made availablein the budget whether the value of work given on nomination basis was within the allocation provided in the budget or not could not be verified in audit. During the course of audit it was observed that the works were entrusted to the contractors on nomination basis without following the above procedure which was repugnant to the instructions of the Govt., issued in the said G.O. The executive authority would need to be take steps to follow the above said procedure strictly in future. 31) NON PAYMENT OF ROYALTY CHARGES: (Code No.09) As per G.O.Ms.No.1276, Revenue (M) Dept., dated30-11-76 every municipality is liable to pay the royalty charges to the government, for the water used by it. Accordingly the engineering authoritiesof irrigation department were raising demands for the same against the Nagar panchayati. However, the Nagar panchayat had not allocated any budget for the payment of royalty charges. The demands raised by the engineering authorities were not consolidated and the actual demand, payment and outstanding amounts were not made available in audit. (Code No.09) 32) WATER CESS NOT PAID TO AP POLLUTION CONTROL BOARD - NEEDS PAID: As per Section 3 of Water (Prevention and Control of Pollution) Cess Act, 1977, water cess is to be paid on the quantity of Water supplied for domestic purpose. Further as per the provisions contained in thesaid Act all the ULB-s have to file the water cess returns duty mentioning the water supplied by ULB-s for domestic purpose. The AP Pollution Control Board (APPCB) has to issue Amendment orders based on the water supply figures to be furnished by ULB-s as required under Sub- No.18 (Code No.09) 33) CONTRIBUTARY PENSION SCHEME AMOUNT NOT SHOWN IN ANNUAL ACCOUNT NEEDS RECTIFICATION As verified from the annual Account for the year 2016-17 it is observed that Contributory PensionScheme amount deducted from the salary of the Employes was Not shown under Receipt and Expenditure side. .As per G.O.Ms.No.655

Finance(Planning-I)department Dated:22-05-2004 C P S @ 10% on Basic pay +DA should be recovered from the employee-s salary and remitted to CPS Scheme . The connected CPS remittance particulars files registers were not produced to audit to FOR VERIFICATION. . In the absence of the same the correctness of recovery as well as remittance particulars of CPS could notbe verified in audit. Therefore early action would need to be taken to producethe records to audit and to incorporate the CPS figure in Annual Account. 34) M.BOOKS - CERTAIN DEFECTS:- (Code No.09) WORKS - EXECUTION OF WORKS - CONNECTED GUIDELINES FOR ANY SCHEME AGREEMENTS AND FILE, COMPLETION REPORTS, INSPECTION REPORTS OF QUALITY CONTROL DEPARTMENT ON WORKS ETC (ALL SCHEME FUNDS AND GENERAL FUND WORKS) ALONG WITH GRANT PROCEEDINGS (ALL SCHEMES) NOT PRODUCED -- IRREGULARITIES IF ANY NOTICED AND LOSS SUSTAINED WOULD NEED TO BE MADE GOOD FROM THE CONCERNED AND REMITTED TO NAGAR PANCHAYAT RELEVANT FUNDS: During the course of audit regarding execution of works both in General funds and scheme funds the connected agreements along with files, guide lines of many of the schemes, completion reports, inspection reports of quality control department on works along with grant proceedings (All Schemes) were not produced for verification executed under both departmental and tender system. Regarding departmental execution in absence of the aforesaid records, the following observations could not be made whether these instructions were scrupulously followed or not 1) Number of departmental works executed under General funds and scheme works during 2016-17. 2) Number of departmental works pending completion as on 31/3/2017 regarding General and all scheme works (Schemewise) 3) Outstanding advances - Advances pending as on 1/4/2016 both General and all the scheme funds. 4) Advances pending as on 31/3/2017 general and all scheme funds. 5) Whether proper indenting system for issue of material to the works not exceeding the theoretical requirement as workedout in the estimates were followed (both general and schemes). 6) Measurement, Detailed designs, Estimates, completion reports (As per para No.173 of A.P. P.W.D. code, Article 181 of A.P. Financial code Vol -I and paras 216 to 218 of A.P.P.W.D. code and M.Books, paras 290 to 292 of A.P.P.W.D. code and Article 171 to 174 of the A.P.F.C. Vol -I General and all schemes) 7) Whether material were issued after approval of the competent authority and duly acknowledged (General and all scheme funds) 8) Whethermaterial at the site account is maintained (General and all scheme funds) 9) Whether the utilization of the material in the works is based on the measurements recorded and check measured properly (General and all schemes) 10) Whether the utilization of the material returned to the stores duly acknowledged (General and all scheme funds) (Cement, steel, sand, Gravel, HBT metal etc. complete information of material stock, issued and balance) 11) Whether the labour required were engaged on tender system or through department personnel only (General and all schemes). 12) Whether the nominal muster rolls maintained for the labour (General and Scheme funds) 13) Correctness of the payments made to the labour particularly whenthe labor is to be paid partly cash and partly food grains (General and all scheme) 14) In case of purchase of material / Machinery required for execution of the works whether the procedure prescribed was followed. 15) Whether reasons for execution of the works departmentally were recorded bythe competent authority. 16) Whether works executed at rates not more than estimated rates. 17) Whether material and labour components are worked out with reference to the standard data. 18) Whether deviations if any - Deviation Statement. 19) Quality control measures - connected details, 20) Others - Technical persons engaged - Connected details. 21) General and schemes- Achievement of objection of all scheme - whether accordance with the guidelines framed regarding connected schemes. 22) NMR-s - Total man days - Scheme wise for all the schemes. 23) Diversion of scheme fund, if any details. 24) Connected lead statements of all the works executed under General and Schemes. 25) Material sufficiency certificates for all the works executed under General and schemes. 26) Revision of estimates - Approval and Technical sanction of the competent authority. 27) The Quarries are approved as per the survey of reports. Further, during the course of audit as observed there are lot of corrections in the M.Books which gives wrong opinion. Further there were no initials at the places of corrections in the M.Books. In the agreement with contractors many of the details were not filled like date of concluding of agreement, Date on which the work is to be completed, E.M.D particulars REGARDING TENDER SYSTEM In absence of the aforesaid records, the following observations could not be made whether these instructions were scrupulously followed or not. 1) Register of Registered contractors of the Municipality 2) Whether agreement was concluded by the competent authority after the finalization of the contract. 3)Whether the advances were paid for the works earlier to contractors

-connected details. 4) Whether the bills supported by the necessary documents such as vouchers along with measurement books for the material produced by the contractor/ Section sheets etc. 5) Whether such of the items of the works check measured without any conditions were only billed. 6) Whether additional quantities of already existing items of work in the agreement are billed as per the preliminary specifications. 7) Whether the cost of the material departmentally supplied to the contractor recovered in the bills if not whether recovery of such material effected at the rates mentioned vide para. 332 of the A.P.P.W.A. code. 8) Whether hire charges formachinery supplied to the contractor recovered from him. 9) Whether fines/Penalties if any imposed, recovered from the contractor. 10) Whether allthe statutory deductions are effected from the work bills. 11) Whether in caseof work entrusted on nomination basis, the payment should be at estimated rates. 12) Quality control measures and its reports. 13) Advances outstandingof all funds General and all schemes as on 1/4/2016 and 31/3/2017 (Complete information). 14) In case of final bills, the release and discharge certificate and a certificate in full and final settlement of all demands should be furnished and income tax clearance certification also. 15) Whether the objects with which the work has been executed are achieved and whether fruits are enjoyed by the public. 16) N.M.R-s - Total man days for each work and pertaining to all the schemes. 17) Higher specification if any 18) Inflationof estimated rates. 19) Adhoc estimates if any. 20) Revision of estimates - Approval and technical sanction of the competent authority. 21) If any changes in the specification. 22) Tender notification - Inadequate time and publicity of the Tender notification. 23) Deviations from standard conditions. 24) Non-encashment of bank guarantees of contractors who abandoned the works - details. 25) Diversion of funds (General funds to scheme funds and from one scheme funds to another and scheme funds to General funds). (Code No.09) 35) NON CONSTITUTION OF WARD AND REVIEW COMMITTEES: Under Section 5(B) of A.P. Municipalities Act, 1965 provides for that Commission may constitute Ward Committees in respect of Nagar panchayati having population of less than 3 lakh. Under Section 31-A (1), the Council may constitute or may appoint individual members to enquire into and report or advise on any matters when it may report to them.In particular, the Council may constitute Committees consisting of the chair person, the Commissioner and not less than three but not more than 7 members chosen in this behalf by the Council from among its elected members in respect of matters pertaining to formulation, review and general superintendence of development programmes relating to education, health, sanitation, water supply, drainage and welfare of SCs, STs, BCs, Women and Child welfare. The commissioner explained that no ward committees were constituted in the Nagar panchayat as per manual. Immediately the ward committees would need to be constituted for discussing the developmental matters in Nagar panchayat. 36) SANITATION - DEPLOYMENT OF CONTRACT LABOUR: (Code No: 09) According to Section 480 to 572 of Hyderabad Municipal Municipal council Act, 1955 Urban Local Bodies have the obligation to clean the roads and drains and collect, lift and carry the garbage to the dumping yards and dispose such garbage through scientific methods. Sanitation includes mainly cleaning of roads and drains. The CDMA, A.P., Hyderabad vide Roc No. 155/2012/H1, dt.29.12.2009, and Memo No. 155/2010/H1, dt.12.8.2010 issued comprehensive guidelines to be followed in engaging public health staff on outsourcing basis. It was observedthat those guidelines are not being followed by the Nagar panchayat in calculation of the total man power required. Reasons for violation of CDMA instructions may be furnished to audit. 37) NON - REMITTANCE OF EDUCTION CESS: (Code No.09) According to section 85 of A.P.Municipal act 1965 the Property Tax comprises of General Purpose : 7.76% PH Scavenging : 2.4% Lighting : 4% Elementary Education cess : 3.0% Water supply : 7.5% Drainage : 2.5% Library cess :1.84% From the above collection the education cess of 3% is to be remitted to Education Department. However, the details of remittance of Education cess are not available in the Nagar panchayat records. When the details of remittance of Education cess was called for, the Nagar panchayati replied that action wouldbe taken to calculate the amount under education cess and remit to the concerned department. Compliance may be reported to audit. (Code No.09) 38) PROVIDENT FUND - INVESTMENT OF PROVIDENT FUND SUBSCRIPTION OF THE NAGAR PANCHYATI EMPLOYEES ORDERS OF THE GOVERNMENT - NOT FOLLOWED - IRREGULAR NEEDS ACTION. As per the orders of the Government in G.O.Ms No:329 NAC UD(G2) Department Dated: 15.06.2006 all the Commissioners of Municipalities /Corporations have to obtain options from the Concerned municipal employees as to whether their G.P.F. Subscription shall be kept in the general funds of the Officer, Government Securities, Government guaranteed securities in the following pattern. 1. Government Securities 50%2. State/ Central Government Guaranteed Securities 25% 3. N.S.S and other

small saving investments (if allowed) 25% (if NSS investment is not allowed ifmay be invested in AAA rated bond of PSUC and FIS) Also for allowing ratesof interest on G.P.F subscriptions based on the options exercised by the Nagar panchayati employees the Government in the said G.O ordered that. 1.In case of municipal employees opted for keeping their subscriptions in General Funds of respective municipality they shall be allowed the prevailingrate of interest fixed by the Government from time to time on the G.P.F subscriptions of Government Servants. 2. In case of municipal employees opted for investing / depositing their G.P.F. subscriptions in the post office/nationalized banks/ Government. Floated loans for the rate of interest that accrued in the investments/ deposit made shall only be allowed. But this Municipal Council has not followed the orders of the Government. Action would need to be taken to implement the above orders immediately and report compliance to audit. Hence it was noticed that though the amount towards G.P.F was adjusted from the employees pay bill to the General Funds account the aggregate of such adjustment was not noted /reported andbalance therein General Funds. (Code No.09) 39) ESI AMOUNT - RECOVERY FROM THE OUT SOURCING WORKERS - AMOUNT WAS NOT REMITTED TO THE CONCERNED HEAD OF ACCOUNTS - IRREGULAR: During the course of audit, it is observed that amount drawn and paid towards ESI premium for the out - sourcing workers and the correctness could not be verified in audit since the connected records were not furnished. Immediate action would need to be taken to remit the amount to concerned head of account. Loss if any sustained in this regard may be recovered from the person or persons responsible. (Code No.09) 40) P.F. LOANS & FINAL PAYMENTS GIVEN TO EMPLOYEES WITH OUT MAINTENANCE OF PROPER REGISTERS - IRREGULAR: During the verification of records pertaining to Provident Fund of Nagar panchayati Staff and school teachers, the following observations were made: 1. The Nagar panchayati has not maintained the cash book for PF. Due to this audit could not verify the fraudulent drawls and spurious remittances during the period of audit. 2. The Nagar panchayati has maintained personal ledgers, however, the amount of subscription, interest credited, drawls if any and balances at the end of the year has not been entered in the ledgers. As verifiedfrom the Non government deductions cash book, P.F. Loans were given to theemployees. But the P.F. ledgers were not maintained. In the absence of the P.F. ledgers it was not known how much amount was available in the individual account. The loans were sanctioned and given to the employees with out observing the balance amount of the individual ledgers. The recovery particulars were also not recorded in the advances recoverable register. This is irregular. If any excess amount was given to the employees towards P.F. loans, the same would need to be worked out and recovered from the individuals and credited to Nagar panchayati funds early. (Code No: 09) 41) ESTABLISHMENT - A.P STATE EMPLOYEES GROUP INSURANCE SCHEME 1984 - NOMINATION AND ANNUAL VERIFICATION CERTIFICATE NOT RECORDED IN SERVICE REGISTERS OF THE EMPLOYEES: As per the instructions of the G.O.Ms.No:293/Fin & Plg(FEW.Admn.II Dept., Dated: 08.10.1984. The scheme of A.P.S.E. Group Insurance scheme, 1984, Subscriptions are being recorded recovered from the salaries of the Employees as membership to which group they relate. But the nominations were not obtained from the employees concerned and pasted in the service registers of the individuals. No entries were recorded in the Service Registers of the individuals dully counter signed by the Head Office. At the end of the March of each year a certificate shall be recorded in the service registers of the employees to the effect that subscription to the scheme at appropriate rates has been recoveredfor the period from April to March. A few pages Service Register have to be set apart for their purpose and necessary entries have to be made and got attested by the drawing officer and produced for verification in audit. (Code No: 09) 42) GENERAL ESTABLISHMENT - CADRE STRENGTH NOT FURNISHED IRREGULAR: The Cadre Strength particular relating to General Establishment viz.. A.M.S.S. main office town planning section engineering section. revenue section, public health section and were not furnished to audit. The non - maintenance of cadre strength particulars and non - maintenance of cadre strength register is irregular. In the absence of the approved cadre strength the pay and allowances paid in excess it may could not be verified. The same would need to be written up and produced to audit. The excess payments if any would need to be made good by the person or persons responsible. (Code No.09) 43) STATEMNETS TO BE APPENDEDTO THE ANNUAL ACCOUNT: The following statements have to be appended to the annual account. But the same were not appended. Hence the same would need to be furnished. 1. Endowment Account. 2. Special Government grants account for capital works and the special purpose. 3. Loans Account. 4. Loans Statement from the Register of Loans. 5. Investmentaccount from the Register of investments. 6. Demand, Collection and balance

statement. 7. Statement of rates of taxation. 8. Statement of Liabilities and Assets. 9. Statement Furnishing particulars about each Medical institution. 10. Abstract of account of Deposits in cash security and other deposits. 11. Abstract of provident fund account. 12. Abstract of Transaction under advances.

Para Number : 9

NON-REMITTANCE OF DEDUCTIONS/RECOVERIES FROM WORK BILLS/PAY BILLS/CONTIGENT BILLS ETC. (Code : 10) Rs : 1038660

DEDUCTION / RECOVERIES OF INCOME TAX NOT REMITTED OR PARTLY REMITTED ( code :10 [2])

(Code No.10) 44) REGISTER OF LIBRARY CESS NOT MAINTAINED- LIBRARY CESS NOT REMITTED: Rs.10, 38,660/- (A) As per GO.Ms No 68dt.12.9.2009, under Section 85(2) of the AP, Municipality Act read with Section 20 of Andhra Pradesh Libraries Act 1960, the Municipal Council is required to levy and collect the amount of Library Cess @ 8 paisa for every rupee on the property Tax collected and transfer the same to Zilla Grandhalaya Samstha (ZGS) concerned to provide library service to public. The register of library Cess was not maintained in this Nagar Panchyat. As such it could not be known how much the amount was pending to remit to ZGS towards library cess in audit. The executive authority would need to work out and arrive at the remitted Library Cess which was pending prior to31-03-2016 and same would need to be remitted to ZGS early. During the course of Audit it is observed that an amount of Rs. 1,29,83,261/- was collected towards property tax,out of which Library cess @ 8% for Rs.10,38,660/- would need to be remit to Z G S and produced the challana to Audit for verification

Para Number : 10



Code No.10(102) 45) V.A.T. DEDUCTED FROM WORK BILLS NOT REMITTED TO THE HEADS CONCERNED - IRREGULAR - NEEDS EARLY ACTION CALLED FOR Rs.6,89,255.00 An amount of Rs.14, 60,036.00 was deducted towards V.A.T. from works executed during the year under audit. Out of which Rs.7, 70,781.00 was remitted and reaming amount of Rs.6, 89,255.00 is pending remittance. As per the instructions of the Government issued in G.O.Ms.No.11 Fin., (W & P) F.8 Department, dated 29.07.2005 the V.A.T. deducted from the work bills has to be remitted to Salestax Department. Early action would need to be taken for remittance to concerned Department and the relevant challan would need to be produced for verification in Audit. Detailed Statement S.No. Name of the Fund. Total amount deducted. Total amount Remitted. Balance. 1. 13 th Finance 5,37,525.00 Details for pending for previous and current year break up and which fund was remitted not mentioned in vouchers 2. 14th Finance 47,815.00 3. S.F.C. 3,09,150.00 4. Startup grant 82,203.00 5. Maintenance of Roads 98,708.00 1. Plan Grant 3,06,421.00 2. General Funds 78,214.00 Total Rs. 14,60,036.00 7,70,781.00 6,89,255.00

Para Number : 11



Code No.10(101) 46) INCOME TAX DEDUCTED FROM WORK BILLS NOT REMITTED TO THE HEADS CONCERNED - IRREGULAR - NEEDS EARLY ACTION Rs. 1,53,978.00 Similarly an amount of Rs 4, 52,574.00 was deducted towards Income tax from works executed during the year under audit Out of which an amount of Rs.2,98,596.00 was remitted andremain amount of Rs.1,53,978.00 is pending remittance.. As per the instructions of the Government issued from time to time Income tax amount deducted from the work bills concerned have to be remitted to Income tax Department. Therefore, early and effective steps would need to be taken for remittance of the same to the Head concerned and the relevant challan wouldneed to be produced for verification in Audit. Detailed Statement S.No. Nameof the Fund. Total amount deducted. Total amount Remitted. Balance. 1. 13 th Finance 1,51,716.00 Details for pending for previous and current year break up and which fund was remitted not mentioned in vouchers 2. 14th Finance 14,504.00 3. S.F.C. 1,05,552.00 4. Startup grant 32,034.00 5. Maintenance of Roads 32,091.00 1. Plan Grant 91,396.00 2. General Funds 25,281.00 Total Rs. 4,52,574.00 2,98,596.00 1,53,978.00

Para Number : 12



Code:10(103) 47) SENIORAGE CHARGES-. DEDUCTED FROM WORK BILLS NOT REMITTED TO THE HEADS CONCERNED - IRREGULAR -NEEDS EARLY ACTION CALLED FOR Rs.3, 26,054.00 An amount of Rs.3,26,054.00 was deducted towards Seniorage from works executed during the year under audit. Out of which an amount of Rs.3,26,054.00 is pending remittance. As per the instructions of the Government issued in G.O.Ms.No.11 Fin., (W & P) F.8 Department, dated 29.07.2005 the Seniorage.Deducted from the work bills has to be remitted to Mining Department. Early action would need to be taken for remittance to concerned Departmentand the relevant challan would need to be produced for verification in Audit. Detailed Statement S.No. Name of the Fund. Total amount deducted. Total amount Remitted. Balance. 1. 13 th Finance 63,388.00 0.00 63,388.00 2. 14th Finance 0.00 0.00 0.00 3. S.F.C. 67,144.00 0.00 67,144.00 4. Startup grant 24,482.00 0.00 24,482.00 5. Maintenance of Roads 25,399.00 0.00 25,399.00 1. Plan Grant 1,34,258.00 0.00 1,34,258.00 2. General Funds 11,383.00 0.00 11,383.00 Total Rs. 3,26,054.00 0.00 3,26,054.00

Para Number : 13


DEDUCTION / RECOVERIES OF INCOME TAX NOT

REMITTED OR PARTLY REMITTED ( code :10 [2])

Code: 10(108) 48) LABOUR CESS-. DEDUCTED FROM WORK BILLS NOT REMITTED TO THE HEADS CONCERNED - IRREGULAR - NEEDS EARLY ACTION CALLED FOR Rs.2,88,761.00 An amount of Rs.2, 88,761.00 .was deducted towards Labour cess from works executed during the year under audit. Out of which an amount of Rs 2,88,761.00 is pending remittance. As per the instructions of the Government issued in G.O.Ms.No.11 Fin., (W & P) F.8 Department, dated 29.07.2005 the Labour cess. deducted from the work bills has to be remitted to concerned Department. Early action would need to be taken for remittance to concerned Department and the relevant challan would need to be produced for verification in Audit. Detailed Statement S.No. Name of the Fund. Total amount deducted. Total amount Remitted. Balance. 1. 13 th Finance 1,10,621.00 0.00 1,10,621.00 2. 14th Finance 9,563.00 0.00 9,563.00 3. S.F.C. 61,849.00 0.00 61,849.00 4. Startup grant 16,440.00 0.00 16,440.00 5. Maintenance of Roads 19,742.00 0.00 19,742.00 1. Plan Grant 54,914.00 0.00 54,914.00 2. General Funds 15,632.00 0.00 15,632.00 Total Rs. 2,88,761.00 0.00 2,88,761.00

Para Number : 14

NON-PRODUCTION OF RECORDS (Code : 11) Rs : 0

(Code No.11) 49) LAYOUT RESERVE SITE REGISTERED IN THE NAMEOF THE NAGAR PANCHYATI NOT KNOWN CONNECTED FILES NOT PRODUCED: During the course of audit of Town Planning Section the files relating to sites in the layout reserved and connected documentary evidences for the registration of those sites in the name of the Nagar panchayati were not made available for verification in audit. Therefore action would need to taken to produce the same in the audit or else the loss if any sustained would need to be made good from the person or persons responsible. (Code.No.11) 50) TAXES & LEASES,RENTS AND FEES etc - ARREAR DEMAND REGISTERS ALONG WITH- OUT STANDING BILLS NOT PRODUCED: In respect of the following taxes, arrears demand registers along with outstanding bills were not produced for verification in audit. In the absence of the same, the genuiness of the taxes actually collected and arrears to be collected as on 01.04.2017 could not be ascertained in audit. 1. Advertisementtax. 2. Leases, rents and fees etc., Immediate action may be taken to produce the same. (Code.No.11) 51) LIST OF TOTAL NO.OF RESIDENTIAL AND COMMERCIAL BUILDINGS COMPLETED AND TOTAL NUMBER OF TAP CONNECTIONS GIVEN DURING THE YEAR 2016-17. TOTAL NUMBER OF NEW RESIDENTIAL AND COMMERCIAL HOUSES AND NEW TAP CONNECTIONS BROUGHT TO DEMAND REGISTER OF 2016-17 - NOT PRODUCED - NEEDS IMMEDIATE ACTION: The following important information would need to be produced to audit. The Town planning officer & Revenue Inspector have to furnish the following important to revenue section. 1. Total No. of residential houses constructions completed during the year 2016-17 2. Total No. of Commercial constructions completed during the year 2016-17 3. Total No.of Tap connections given during the year 2016-17 (Asst. Engineer) 4. Total No.of new residential houses brought to demand register during the year 2016-17 (Revenue Officer) 5. Total No.of New commercial buildings brought to demand registerduring the year 2016-17 (Revenue Officer) 6. Total No. of New tap connections brought to demand register during the year 2016-17 (Revenue Officer) Action would need to be taken to recover the loss sustained to the Nagar panchayat funds due to omission of newly constructed houses and newtap connections to demand register for the year 2016-17 form the person or persons responsible and credited to the Nagar panchayati funds and pointed out the remittance particulars to audit, besides initiating disciplinary action against the persons who are responsible for the above omissions. (Code.No.11) 52) C.C.CHAGES PAID - PAYEES ACKNOWLEDGE MENTSNOT PRODUCED:- It is noticed that the following Amount of Rs. 45, 43,222.00 were paid towards C.C.Charges Electrical Department for the year2016-17. The payees Acknowledgments were not produced to Audit for verification. If any loss sustained due to above omission would need to be made good from the Person or Persons responsible. (002) CASH BOOK Sl.No. Vr. No & Date Amount 1 16/31.05.2016 4,56,910.00 2 42/30.07.2016 4,20,122.00 3 55/09.09.2016 3,64,572.00 4 58/30.09.2016 3,91,710.00 5

61/10.10.2016 4,90,949.00 6 93/28.02.2017 4,10,984.00 7 95/23.03.2017 3,61,616.00 Total Rs. 28,96,863.00 (01) CASH BOOK Sl.No. Vr. No & Date Amount 1 34/30.06.2016 3,58,022.00 2 133/27.11.2016 4,65,389.00 3 154/09.01.2017 3,93,868.00 4 167/23.01.2017 4,29,080.00 Total Rs. 16,46,359.00 (Code.No.11) 53) ESTABLISHMENT-OUT SORUCING STAFFE.P.F. PAYEES ACKNOWLEDGE MENTS NOT PRODUCED:- It is noticedthat in the following vouchers an amounts were paid to E.P.F. during the year2016-17. The out sourcing staff deduction made from the Pay bills towards E.P.F. The paid the Acknowledgments in token of having received were not produced to Audit for verification. If any loss sustained due to above omission would need to be made good from the Person or Persons responsible. Sl.No. Vr.No. & Particulars Amount 1 49/08.09.2016 /June 2016 2,05,988.00 2 51/08.09.2016/July 2016 2,13,576.00 3 69/05.11.2016/October 2016 2,15,191.00 4 81/15.12.2016/ November 2016 2,23,968.00 5 92/06.02.2017/ December 2016 2,26,154.00 Total Rs. 10,84,877.00

Para Number : 15


(Code.No.11) 54) ESTABLISHMENT-SALARIES INCURRED FROM THE GENERAL FUNDS (001) ACCOUNT IRREGULAR:-Rs.28,60,753.00 It is noticed that the following Amount of Rs. 28, 60,753.00 was paid towards the pay and allowances of 09 Members of permanent sweelpers, those who are not covered under 010 Account from the General Fund Account. It is consider that pay and allowances to those who are paid from the General Fund is burden to the Municipality, and leads to under development activities of Nagar Panchyath. Therefore the Executive Authority should be taken to regulate the employees under 010 Head of Accountant as per G.O.Ms.No. 300 (M.A.& UD) dt.18.03.2009. Under intimation to Audit. The details of Employees of who are not covered under 010 salaries Head of Account. Is are furnished here under. 1. G.Sambasiva Rao, Attender 2.Md.Sanavulla, Attender 3.L.Rupa P.H.Worker 4. D.Srinivasa P.H.Worker 5. B.Kamalamma, P.H.Worker 6. B.Nuka Raju, P.H.Worker7.R.Durga Rao, P.H.Worker 8. Y.Akkamma, P.H.Worker 9.Y.Yesu, P.H.Worker 10. K.Gandhara Rao, P.H.Worker. Sl.No. Vr. No & Date Amount 1 06/16.05.2016 2,62,012.00 2 07/16.05.2016 3,01,864.00 3 08/16.05.2016 2,80,549.00 4 32/25.06.2016 3,67,616.00 5 48/31.08.2016 2,74,737.00 6 54/09.09.2016 2,71,066.00 7 60/07.10.2016 2,74,737.00 8 66/07.11.2016 2,66,523.00 9 74/29.11.2016 17,748.00 10 82/10.01.2017 2,66,530.00 11 89/04.02.2017 2,77,371.00 Total Rs. 28,60,753.00

Para Number : 16


(Code No.11) 55) ADVERTISEMENT TAX - TEMPORARY STRUCTURES,PERMANENT STRUCTURES HOARDINGS - DEMAND, COLLECTION, BALANCE REGISTER ALONG WITH CONNECTED FILES NOT PRODUCED. The Nagarpanchayati should prepare the demand register for advertisement tax on temporary structures, hoardings, slides in cinema theatres maintained as on first April and further demand should be fixed for the above items by way of monthly lists of concerned field staff and fix the tax as per notification and collect the tax. The aforesaid registers along with the connected files were not made available for verification in absence of these records the collections shown could not be verified and certified in audit. Further it is not possible to verify in audit whether the prescribed procedure was followed or not. 1) That the rates of levy shall be in accordance with the rates specified. 2) That the collection of tax on advertisements may be leased out for a period not exceeding on year on the terms and conditions fixed by the council (Section 119 of the Act) 3) That the tax was collected at 1/12th of every month and if any advertisement was erected for less than a month, full month rates was collected (Rule 7) since the rate of the tax is on annual basis. 4) That the advertisements were approved by the Commissioner and whether erected after approval (Rule 4)

5) That in addition to this tax, fees or rent for using the land of the municipality was charged (Rule 6) 6) Whether if any person failed to pay the tax, the advertisement was removed and the charges there of are recovered from him/ her (Rule 9) Due to non - production of the relevant files and records, it could not be verified in audit whether the procedure prescribed in this regard as above was followed or not. If any financial irregularities are noticed later in this regard the loss sustained to the Nagar panchayati funds would need to be made good from the person or persons responsible. (Code No.11) 56) ADVERTISEMENT TAX - REGISTER OF ADVERTISEMENT TAX NOT PRODUCED FOR AUDIT: During the course of Audit, the register contains the demand, collection and balance was not made available for verification. In absence of the same, the demand fixed and collection could not be pointed out. The loss if any caused due to Non production of certain records may be recovered from the persons responsible. If any financial irregularities are noticed later in this regard the loss sustained to the Nagar panchayat funds would need to be made good from the person (s) responsible. (Code No.11) 57) REGISTER OF REVENUE YIELDING PROPERTIES NOT MAINTAINED AND PRODUCED: In order to guard any item of Nagarpanchayat revenue being left out in the M.D.R., a register of Revenue yielding properties and other miscellaneous sources of revenue of the Nagarpanchayati will have to be maintained. It has to be ensured that all the items shown in this register with the exception of those that are managed departmentally are entered in the M.D.R. for watching the realization of the revenue due. The register also helps in watching the rise or fall of revenue over several years and also to make investigations, if necessary. However, thisimportant register was not maintained. As a result it could not be fully ascertained in audit, whether revenue from all sources was being recorded or there were any leakages. It could not be verified in audit, whether all the sources of revenue were included in the M.D.R. due to non-maintenance of the above register. Immediate action may be taken to maintain the register and produce the same to audit. (Code No.11) 58) MONEY VALUE FORMS - STOCK REGISTER NOT PRODUCED: The money value forms stock register for the year 2016-17 was not produced. In the absence of the same, the opening balance of the money value forms received, utilized balance as on31-03-2017 and as on the date of audit could not be verified in audit. In the absence of the same it could not be verified in audit as to who was the custodian of the money value forms and the procedure adopted in issuing M.V.Forms.The loss if any caused to the Nagarpanchayat funds would need to be recovered from the person or person(s) responsible and remitted to Nagarpanchayati funds under intimation to audit. (Code No.11) 59) REGISTER OF REMISSIONS AND WRITEOFFS NOT PRODUCED: The records relating to the remissions and write offs allowed were not produced to audit. It was not made known as to how much was allowed as remissions and write offs in the financial year 2016-17. In the absence of the same the quantum of remission and write off and whether the same was allowed as perthe provisions of the Act or not could not be verified in audit. The same would need to be produced immediately. 60) MUTATION REGISTER NOT PRODUCED: (Code No.11) During the course of audit the register containing all the permanent changes made either by the Commissioner or bythe Appellant Authority in the assessment of house and land taxes after the demand registers for the tax concerned was written up for the year was not maintained and produced, in the absence of the same whether the procedure prescribed in arriving at the changes in the assessments were made and recorded properly or not could not be checked in audit. This important register may be maintained and produced to audit. (Code No.11) 61) REGISTER OF BUILDINGS EXEMPTED FROM THE PAYMENT OF PROPERTY TAX - NOT MAINTAINED AND PRODUCED TO AUDIT: Theregister of buildings exempted from payment of property tax during the year 2016-17 was not maintained and produced to audit for verification. In the absence of the same, it could not be ensured in audit whether such buildings were assessed to other taxes/charges such as water tax, drainage tax and primary service charges etc. Early action would, therefore, need to be taken to get the register written up and maintained up to date. (Code No.11) 62) IMMOVABLE PROPERTY - CONSOLIDATED REGISTER OF PROPERTIES NOT MAINTAINED AND STATUS OF THE PROPERTIES NOT FURNISHED: Consolidated register showing the properties owned by the Nagar panchyati was not maintained. Several immovable property registers were produced to audit. The reasons for maintaining so many registers were not furnished. The details of properties acquired were simply noted in the registers. But, the present status of the properties was not noted. In the absence of the same, the details of the buildings, lands, shops, vacant sites etc., owned by the Nagar panchayati land the properties utilizing by the Nagar panchayati, properties leased out, properties encroached etc., could not be verified in audit. Action may be taken for the preparation of consolidated register of properties owned by the Nagar panchayati duly

recording the present status, certified and produced to audit for verification. Loss, if any, caused due to not safe guarding/non-leasing of assets may be worked out and made good from the person or persons responsible. (Code No.11) 63) BUILDING APPLICATIONS NOT PRODUCED-REGISTER OF BUILDING APPLICATIONS NOT PRODUCED-NOT MAINTAINED PROPERLY - NEEDS RECTIFICATION: The following building Applications not produced to Audit, and the Register of building applicationswas not maintained properly. The relevant columns i.e. completion buildings,constructions and renewal for constructions beyond the date of permission originally accorded and the amount of fees collected in each case were not written in the register. In the cases where the constructions were completed, improvements etc., done were not brought to the assessment of the tax and written up in the register. Leakage of revenue if any caused to the Nagar panchayati funds in this regard could not be ascertained in audit. Unless the register is maintained properly correct verification could not be done in auditwith regard to the collection of fees in each case as well to the assessment of property tax on buildings. Special attention of the town planning section of the Nagar Panchayati is required to maintain the registers in full without which the purpose of maintaining the registers is being defeated. Further, there must be integration between town planning and revenue section so as tobring all the constructed building in to the assessment of house tax in time instead of doing at a later date and thus loosing revenue. Sl.No. Owner Name Application Fees B.A.No. 1 SOMAYAJULA SAI KRISHNA S/O S.VISWESWARA RAO 10000.00 1144/0007/B/VR/Vuy/2016 2 PILLA APPA RAO 3000.00 1144/0028/B/VR/Sun/2016 3 KOLASANI SITA RAMA RAO S/O KOLASANI KOTESWARA RAO & KOLASANI SREEKANTH S/O KOLASANI VENKATESWARA RAO 3000.00 1144/0024/B/VR/Siv/2016 4 PUVVADA SRINIVASA RAO 3000.00 1144/0030/B/VR/Kap/2016 5 PARASUNAGABHUSHANA RAO S/O SESHAVATARAM 3000.00 1144/0038/B/VR/Old/2016 6 MOHAMMED FIRDOSE SULTANA W/O MOHAMMED VAHEEDULLAH 3,000.00 1144/0027/B/VR/MEA/2016 7 KOTI. VENKATA KRISHNA MOHAN. S/o. GOPALA KRISHNA MURTHY3,000.00 1144/0009/B/VR/SNR/2017 8 KUNAPAREDDY RAMU S/O FEROJI RAO 3,000.00 1144/0016/B/VR/ODA/2016 9 VALLBHAPURAPU IMMANUEL S/O V.JOHN 3,000.00 1144/0020/B/VR/SNR/2016 10 APPIKATLA SOPHIA GRACE D/O A. IMMANUEL 3,000.00 1144/0003/B/VR/KAR/2016 11 KOTI VENKATA KRISHNA MOHAN S/o GOPALA KRISHNA MURTHY 3,000.00 1144/0003/B/VR/SNR/2017 12 JONNALA GEETHA LAKSHMI, W/o BASIVI REDDY 3,000.00 1144/0010/B/VR/KAR/2017 13 NEELAKANTAM VENKATA NARASAMMA W/O MURALI SATHYANARAYANA 3,000.00 1144/0008/B/VR/RAR/2016 14 VUYYURU SUDHAKAR S/O V. BABU RATNAKAR 3,000.00 TEMP/1144/0010/B/VR/REA/2016 15 VEERANKI NELA BALESWARA RAO S/O V.SOMAIAH , VELAGAPUDI RAVI BABU S/O MADHUSUDHANA RAO & BOLLA RAMARAO S/O GANGAIAH 3,000.00 1144/0009/B/VR/Flo/2016 16 KOTA SUREKHA D/o SAI BABA 3,000.00 1144/0049/B/VR/A.G/2016 17 PORANKI SATYA SAI RAM S/O P. BASAVA RAJU 10,000.00 1144/0031/B/VR/K.C/2016 18 KOLA. SIRISHA W/o N. SIVA PRASAD & METTUM. ANUSHA W/o M. RAVICHANDRA 10,000.00 1144/0002/B/VR/Vee/2017 19 MURARI SOWJANYA W/o NAGA SRINIVASA RAO 3,000.00 1144/0052/B/VR/Pad/2016 20 MANEPALLI VENKATA PRAMEELA W/o M.KOTI SURYAPRAKASA RAO 3,000.00 TEMP/1144/0016/B/VR/Bho/2016 21 ABDUL VAHED S/o ABDUL RAHEEM3,000.00 1144/0050/B/VR/Urd/2016 22 KADALI VENKATA RAMANA RAO 3,000.00 1144/0025/B/VR/L.P/2016 23 1. ATHMAKURI SATYAVATHI W/O (LATE) A. RAVI KUMAR 2. ATHMAKURI SATISH KUMAR S/O (LATE) A. RAVI KUMAR 3,000.00 1144/0026/B/VR/L.P/2016 24 SHAIK MASTHANS/O SHAIK MOHIDDIN 3,000.00 1144/0045/B/VR/OEA/2016 25 MANADAPAKA KRISHNA RAO 3,000.00 1144/0029/B/VR/KEA/2016 26 NENAVATH SREENU NAIK S/O N.RAMUDU 3,000.00 1144/0002/B/VR/SouD/2016 (Code No.11) 64) ENCROACHMENT FEES - DEMAND AND ARREAR DEMAND REGISTERS NOT MAINTAINED AND PRODUCED: The register of encroachment fee (current) provides a record of all encroachments identified, and demand, collection and balance oflicense fees from objectionable encroachments. This register provides information for 5 years. Similarly, the Arrear Demand Register provides record of all balances of encroachments fees outstanding at the end of the year. But the above registers were not maintained and produced to audit. Since the above registers were not maintained, the accuracy of the amounts collected could not be verified in audit. Hence, immediate action may be taken to maintain the register (MF.No.197) duly incorporating the required information. Any further delay in this regard would cause serious loss to the funds of Nagar panchayat. (Code No.11) 65) TOWN PLANNING- UNAPPROVED LAYOUTS - 10% OPEN SPACE CHARGES NOT COLLECTED NEEDS EARLY COLLECTION: According to Rule issued

under Section 344 of the Hyderabad Municipal council Act 1955, 10% of O.S.C. needs to be collected on unapproved layout sites but on verification of the Building application register for the year 2016-17, it was noticed that there was difference in collection of the open space charges in the building application. In the same area some of the applicants were imposed 10% O.S.C. where as some others were exempted from the payment of 10% O.S.C. even though the sites belong to same area. But the reasons for not imposing the 10% open space charges were not explained in audit. Apart from the register of approved layouts and the notified extension areas was also not produced to audit. Due to lack of the said records and sufficient information with regard to the approved layouts and unapproved layouts, the veracity in giving exemption and imposition of 10% O.S.C. could not be verified. Hence action needs to be taken to get entire transactions verified for finding the correctness of the same. (Code No.11) 66) MAINTENANCE OF VEHICLES - RELEVANT REGISTERS NOT MAINTAINED AND PRODUCED: The following were the important registers to be checked in audit of bills relating to maintenance of Vehicles in Public Health Section. 1. Log book 2. Register showing the repairs ,replacements etc., 3. Register showing the cost of Petrol, Oil etc., 4. Register of Inventory of equipment 5. Hire charges payment Registers. 6. Registers of old parts collected after replacement 7. Register of Accidents 1. Log Book: During the course of audit due to non production of these books it could not be verified in audit whetherthe following procedure was followed. 1. That all the entries in the relevant columns in the log books were made 2. That the entries in log book were noted by the Officer who used the vehicle in his own hand, writing the mileage at the start and at the completion of their trips after verifying kilometers. 3. Those Sufficient particulars were recorded regarding movements and purpose to indicate that the journeys were on Official business. 4. That the log book in respect of each Vehicle was closed at the end of the month and a summary prepared in the logbook showing details of dutyand non duty journey performed during the month in the prescribed proforma. 5. That the quantity of petrol, diesel oil purchased has been entered in the log book of the respective vehicle. 6. That the hire charges collected as per hire charges payment register have been entered in the concerned log book. 7. That the log book was scrutinized personally by the authority concerned, once in a month and his signature appended there in. 8. That the log books were written in the prescribed proforma with full details. 2. Register showing the repairs, replacements, spare parts etc., Due to non production of these registers it could not be verified in audit whether the following prescribed procedure was followed. 1. That the voucher No. and date and nature of repairs etc., together with amount were noted in the appropriate columns of the register. 2. That in the case of replacements etc., the old parts were disposed off in Public Auction noted and the sale proceeds credited to Municipal funds. 3. That in case of purchase of spare parts, the rules relating to the invitations and disposal of tenders have been observed. 3.Register showing the cost of petrol, Oil etc., Due to non production of this register, it could not verified in audit whether the following prescribed procedure was followed or not. 1. That the details of expenditure incurred towards cost of Petrol, Oil etc., have been entered with reference to the voucher No. and date and the amount covered for the same. 2. That the consumption of the petrol, oil etc., date wise, has been entered there in. 3. That in respect of the contingent bills for the supply of petrol, diesel oil, the following certificates have been recorded by the authority concerned on the bills. Certified that quantities purchased have been entered in the log books of the respective vehicles. Certified that necessary recoveries under rules have been made from the parties concerned to the institution. 4. That the mileage run by the vehicle at particular period as per log book was in accordance with the issues of petrol and oil shown in this register. 5. That the propulsion charges or cost of fuel etc., received if any from the person who used the vehicle on non duty have been issued to the parties. 6. That the register was periodically checked by the concerned authority and a certificateto that effect has been recovered 4. Register of inventory of equipment. Due to non production of this register, it could not verified in audit whether the following prescribed procedure was followed or not. 1.That the nature of equipment purchased has been entered in this register together with the date of purchase and price etc., as per voucher. 2. That the inventory of equipmenthas been checked by the concerned authority every month and a certificate tothat effect has been recorded there in. 3. That the Loss if any arising out of negligence or fault of any person has been recovered and credited to the funds. Any loss caused to funds in this regard may be recovered from the person or persons responsible. 67) STOCK REGISTER NOT PRODUCED: (Code No. 11) The following important stock registers were not produced for verification in audit. In the absence of these registers the opening balance of the material purchases made during the year, utilized, issued and balance could not be verified in audit. As per the rules, the stock register should be

maintained with details of opening balance, of materials purchased of material issued, utilized and day by day balance should be maintained. In theabsence of these registers, the stock opening balance, received utilized, necessity of purchases, utilization & balance could not be certified in audit. Losses if any sustained due to any irregularities noticed later, the same wouldneed to be made good from the person(s) responsible. 1. Electrical Goods stock register. 2. Engineering stores stock register. 3. P.H. Stock registers. 4. P.W.S. stock register. 5. And all other stock registers pertaining to Engineering, P.H. Planning, Main office R.O. (Code No.11) 68) PUBLIC HEALTH - CONSERVANCY ARTICLES - INDENT ORDER LETTERS -NOT OBTAINED AND PRODUCED: As verified from the Public Health Conservancy Articles Stock Register many articles were issued to the Sanitary Inspector/ Maistry of Public Health Section during the year 2016-17. But the Indent orders / letters were not obtained and produced to audit for verification. In the absence of the above indent orders / letters the correctness of the issue and utilization of the articles could not be established.Loss, if any, caused in this regard would need to be made good from the person or persons responsible. (Code No.11) 69) PUBLIC HEALTH - D & O TRADES - DELETIONS LIST NOT PRODUCED TO AUDIT - NEEDS ACTION: As verified from the D&O Trade license fees register, division wise during the year 2016-17 many new licenses were sanctioned. But the details as to of how may licenses were renewed and how may licenses were cancelled,were not produced to audit for verification. The deletions list duly enclosing the stoppage letters from the traders along with council resolution were not produced for verification. It would need to be produced early. In the absence of the deleted list, loss if any caused in this regard would need to be made good from the person or persons responsible. (Code No.11) 70) PROPERTY TAX, WATER TAX, VACANT LAND TAX ARREAR DEMAND REGISTERS ALONG WITH OUTSTANDING BILLS NOT PRODUCED TO AUDIT The Nagara panchayati should maintain the property tax registeras per the demand on the previous half year duly adding addition and deletions as per monthly list on half yearly basis for 2 half years Demand andAmount collected by the house tax receipts by cheques, Demand drafts & E-seva collections, gross amount duly posted in the demand register and balance in the concerned month. The same should be tallied with chitta. If any interest collected under the concerned head, the same recorded in ink and should be totalled page wise, ward wise and year wise.The totals should tally with chitta figures. But the concerned registers were not produced. In absence of these register, the correctness of the demand, collection, balance ofarrears, current could not be verified in audit and the correctness of the samecould not be certified in audit. Further the outstanding bills were not made available for verification therefore the executive authority was requested to initiate immediate action to close the connected register and produce the same for verification in audit. Loss if any caused in this regard would need tobe made good from the person or persons responsible

Para Number : 17


(Code.No.11) 71) 13 th FINANCE - EXECUTION OF WORKS- CONNECTED PAID VOUCHERS, ESTIMATES AND M.BOOKS NOT PRODUCED Rs. 3,39,747-00 During the course of audit, the paid vouchers, estimates and connected measurement books pertaining to works executed asdetailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected Measurement Books as prescribed in the paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred in absence of the connected measurement books as prescribed above, detailed designs and estimate s as prescribed vide Para No.173 of A.P. PWD Code andcompletion report as specified vide Article 181 of A.P. Financial Code Vol.I asPara 216to 218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit. 13Th Finance: Sl.No. Name of the Work Amount Paid Vr.No. & Date 1 Construction of internal cc drains and pipelines in 8th ward 2,37,259.00 6/26.11.2016 2 Construction of cc drain for mini bypass road to church in

17th ward 1,02,488.00 54/31.3.2017 Total Rs. 3,39,747.00

Para Number : 18


(Code.No.11) 72) SFC - EXECUTION OF WORKS -CONNECTED PAID VOUCHERS, ESTIMATES AND M.BOOKS NOT PRODUCED Rs. 10,59,839.00 During the course of audit, the paid vouchers, estimates and connected measurement books pertaining to works executed as detailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected Measurement Books as prescribed in the paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. Inabsence of the connected measurement books as prescribed above, detailed designs and estimate s as prescribed vide Para No.173 of A.P. PWD Code andcompletion report as specified vide Article 181 of A.P. Financial Code Vol.I asPara 216to 218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit. SFC: Sl.No. Name of the Work Amount Paid Vr.No. & Date 1 Construction of Drain and metalling the road from Rammisetty Panduranga rao house to N.Arjuna rao house in Sundaramma peta in 14th ward 1,09,495.00 7/6.8.20162 Providing cc road from Seetharamayya house to Dakshinam Murthy house in Sundarammapeta in 14th ward 2,98,336.00 8/8.8.2016 3 Construction of ccdrain to Indian bank bazar 4,71,413.00 9/9.8.2016 4 Tree plantation at South side from Peddavanthena to Bypass road of VJA-MTM R&B road 82,058.00 22/28.10.2016 5 Improvements to the cc drain to Gandhinagar bazaar in 2nd ward 98,537.00 37/23.3.2017 Total Rs. 10,59,839.00

Para Number : 19


(Code.No.11) 73) PLAN GRANT - EXECUTION OF WORKS- CONNECTED PAID VOUCHERS, ESTIMATES AND M.BOOKS NOT PRODUCED Rs. 30,56,263.00 During the course of audit, the paid vouchers, estimates and connected measurement books pertaining to works executed asdetailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected Measurement Books as prescribed in the paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. Inabsence of the connected measurement books as prescribed above, detailed designs and estimate s as prescribed vide Para No.173 of A.P. PWD Code andcompletion report as specified vide Article 181 of A.P. Financial Code Vol.I asPara 216to 218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit. PLAN GRANT: Sl.No. Name of the Work Amount Paid Vr.No. & Date 1 Providing cc road from Ankam Bhujanga rao house to K.Sanath kumar house in 14th ward 1,64,584.00 19/9.2.2017 2 Providing balance cc road to Lecturer Anjaneyulu bazar in 14th ward 2,28,611.00 21/13.2.2017 3 Providing cc road from Santi srinu house to A.Madhusudhana rao house (via) direct pumping bore in 16th ward 5,33,559.00 23/16.3.2017 4 Providing cc road to 4Th cross road of Srinagar colony 2,80,901.00 4/6.8.2016 5 Providing cc road to KranthiMahilamandali road in AGK Nagar 3,22,652.00 5/6.8.2016 6 Providing cc road from Flora school road to Ramprasad house in 8th ward 2,06,955.00 6/6.8.2016 7 Providing cc road to the 4Th cross road ,5Th cross road at Rajendra nagar 1,92,380.00 7/6.8.2016 8 Providing cc road from back side of old Z.P office to towards Pedda vanthena locks in 7Th ward 2,06,928.00 8/6.8.2016 9 Providing cc road from 1st main road to pantabodu in 1st cross

road & link road in New Harijanawada 2,11,378.00 9/6.8.2016 10 Providing cc road in Srilanka colony in 3rd ward 2,57,434.00 10/6.8.2016 11 Providing metalling to the road from Katuru road to Chaitanya school at (opp)of Little flower convent in 16th ward 1,44,055.00 11/9.8.2016 12 Providing QR & Stone dust to the Sowbhagya nagar main road 3,06,826.00 12/10.10.2016 Total Rs. 30,56,263.00

Para Number : 20


(Code.No.11) 74) 14 th FINANCE - EXECUTION OF WORKS UNDER KRISHNA PUSHKARAMS - CONNECTED PAID VOUCHERS, ESTIMATES AND M.BOOKS NOT PRODUCED Rs. 77,773-00 During the course of audit, the paid vouchers, estimates and connected measurement books pertaining to works executed as detailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected Measurement Books as prescribed in the paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. In absence of the connected measurement books as prescribed above, detailed designs and estimate s as prescribed vide Para No.173 of A.P. PWD Code and completion report as specified vide Article 181 of A.P. Financial Code Vol.I as Para 216to 218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit. 14Th Finance under Krishna pushkarams: Sl.No. Name of the Work Amount Paid Vr.No. & Date 1 Providing Drinking water points from Veeramma thalli temple to Bus stand77,773.00 2/22.9.2016 Total Rs. 77,773.00

Para Number : 21


(Code.No.11) 75) GENERAL FUNDS - EXECUTION OF WORKS- ESTIMATES AND M.BOOKS NOT PRODUCED Rs. 10,65,181.00 During the course of audit, the paid vouchers, estimates and connected measurementbooks pertaining to works executed as detailed below were not made available for verification in audit to certify the genuineness of the expenditure incurred. The connected Measurement Books as prescribed in the paras 290 to 292 of A.P.P.W.D. Code and Articles 171 to 174 of A.P. Financial code volume-I would need to be produced for verification in audit to certify the genuineness of the expenditure incurred. In absence of the connected measurement books as prescribed above, detailed designs and estimate s as prescribed vide Para No.173 of A.P. PWD Code and completion report as specified vide Article 181 of A.P. Financial Code Vol.I as Para 216to 218 of A.P. P.W.D code, the genuineness of the expenditure incurred and payment made could not be certified and admitted in audit. Hence, the same would need to be produced for verification in audit. 14Th Finance under Krishna pushkarams: Sl.No. Name of the Work Amount Paid Vr.No. & Date 1 Providing of 160mm G,I,Pipes Inter connections of New Bridge 83,880.00 2/01.04.2016 2 Construction of Pipe lines and at other labor work 82,416.00 03/01.04.2016 3 Replacement of water supply Net work system 2,55,306.00 05/01.06.2016 4 Street Light Maintenance for Electrical Department 73,703.00 23/21.06.2016 5 Replacement of water supply Net work system S.T.Coloney 1,59,127.00 24/21.06.2016 6 Repairs to the connection Toilets andPaintings 84,595.00 25/21.06.2016 7 Removing silt from the drain of Main road Katuru 3,17,705.00 8,449.00 86/14.09.2016 104/21.10.2016 Total Rs. 10,65,181.00

Para Number : 22


(Code No. 11) 76) REGISTER OF INVESTMENTS NOT PRODUCED LOSS IF ANY SUSTAINED TO NAGAR PANCHYAT FUNDS-NEEDS RECOVERY AND SUITABOE ACTION NEEDS INTIATED AGAINST THE CONCERNED 1. During the course of audit the register of investments was not made available for verification in audit. Due to non-production of this important register whether the procedure prescribed in this regard was followed or not could not be verified in audit and the genuineness of the transactions could not also be certified in audit. 1. Investments of sum in excess of Rs. 5000/- in fixed deposits in the state Co operative Banks approved by the register of Co operative societies for the purpose have received the previous approval that particulars of investments made have been entered in the register of investments and certificate or bank receipts or other evidence in suppos of investments were available and that in cases where the securities were held by the accounts General, the amounts were traceable in the list published by him in the Gazette. 2. Interests due have been realised on the due dates and credited to the accounts. 3. Investments made out of earmarked funds have been re invested if the amount was not required for expenditure. 4. In the case of investments written off by sale or otherwise the amounts of sale proceeds have been duly credited in the accounts or if the sale was by transfer of investments it is supported by proper vouchers. 5. Investments have not been disposed of except for specific purpose for which they have been made. Due to non-production of the investment register it could not be verified whether any irregularities were committed and loss if any sustained to the Nagar panchayati funds in this regard and necessary action would need to be initiated against the concerned.(Code No.11) 77) PROVIDENT FUND ACCOUNT NOT MAINTAINED PROPERLY - NEEDS RECTIFICATION: Though subscribing to the provident fund is optional in Nagar panchayati Councils, the provident fund account with the existing balances of the employees, had to be maintained properly, as it was governed by the provident fund rules. The following important registers/Forms have to be maintained in connection with provident fund. 1. Forms of nomination. 2. Statement of annual account. 3. Notice to the nominee. 4. Register of subscriber. 5. Register of Temporary withdrawals and their recoveries. But none of the above registers were maintained in Nagar panchayat .As a result the correctness of the transactions carried out, under P.F. during the year could not be verified in audit. Loss if any sustained by the Nagar panchayat as a result of non-maintenance of the above registers, would need to be made good from the person or persons responsible. Immediate action may be taken to maintain the above registers and produce the same to audit. (Code No.11) 78) LIC PREMIUM AMOUNT PAID TO LIC OFFICE CONNECTED PAYEES ACKNOWLEDGEMENTS NOT PRODUCED: The amount paid to LIC office towards premium recovered from the staff salary bills could not be verified since the connected files, acknowledgements and tokens having received the amounts were not obtained and produced during the audit. Therefore the correctness could not be certified in audit.

Para Number : 23

EXCESS PAYMENTS (Code : 13) Rs : 7694

(Code No.13) 79) EXCESS AMOUNT INCURRED CELL BILLS - NEED RECOVERY Rs.7,694.00 An amount of Rs. 7,694.00 was drawn from General funds through the following vouchers and spent towards telephone Bills during the Year 2016-17. As per the Government orders the eligible amount per Month Rs. 725/- in respect of Commissioner and Rs. 625/- in respect of other staff. But the commissioner and outdoor staff have been excess amount over eligible amount. Due to the above defects the Excess expenditure of Rs. 7,694.00 this incurred would need to be recovered from the Person or Persons responsible. VR.No. & Date Particulars Paid Eligible Excess Amount 33/25.06.2016 Commissioner No. 9701361354 23.04.16 to 22.05.16 23.03.16 to 22.04.16 23.02.16 to 22.03.16 2387.00 2403.00 2661.00 725.00 725.00 725.00 5,576.00 T.P.S No.9701361352 23.04.16 to 22.05.16

23.03.16 to 22.04.16 23.02.16 to 22.03.16 848.00 1577.00 772.00 625.00 625.00 625.00 1,322.00 No.9701361351 23.04.16 to 22.05.16 23.03.16 to 22.04.16 600.00 1421.00 0.00 625.00 0.00 796.00 Total Rs. 7,694.00

Para Number : 24

EXCESS PAYMENTS (Code : 13) Rs : 27928

(Code No.13) 80) WORKS- NON-RECORDING OF ITEMS OF WORK EXECUTED IN M.BOOK - EXCESS PAYMENT MADE TO THE CONTRACTOR - NEEDS RECOVERY Rs.27,928.00 Name of the work: Extension of pipeline at back side of Nagar panchayat office along pulleru canal bund in 7th ward in Vuyyuru (13TH Finance FUNDS) M.B.No.3/2013.14 P.No.37 Voucher No .36/27-03-2017 Name of the contractor: Venkata Durga Industries As verified from the Final bill for the work, Extension of pipeline at back side of Nagar panchayat office along pulleru canal bund in 7th ward in Vuyyuru, it was noticed that the following items are not recorded in the M.Book @ P.No.37.But payment is made to the contractor. Consequently an excess amount was drawn and paid to the Contractor. Hence the excess payment made would need to be recovered from the person or persons responsible and credited to Nagar Panchayat funds. Item no (1) : Earth work excavating and depositing Paidquantity :94.50x@Rs,258.06= Rs.24386.37 on bank with initial lead and lift and lay & clay subsistence. SS 20B Vide P.No.37 Item no (2) : Sand filling in foundation including cost Paidquantity : 9.45x@Rs,374.78= Rs. 3541.67 and conveyance of all material and all labour charges Vide P.No.37 TOTAL = Rs.27928.04

Para Number : 25

OTHERS (Code : 18) Rs : 0

(Code.No.18) 81) DATA BASE OF THE RECORDS OF TAXATION - EFFICACY OF THE SOFT WARE : During the course of audit, it was noticed that the Demand Registers (both current and arrear) of property tax and other tax and non tax revenues were NOT maintained. Manual maintenance of the same was dispensed with though there were instructions to maintain the same. The actual demand for the current and arrear years was not certified by the competent authority and produced to audit. Collection of property tax and other revenues in second HALF YEAR is donein many ways like remittance in e-Seva, by online remission, payment by wayof Cheque or Demand Draft etc., from the tax payers. Whether the software takes care of various ways of collections of taxes was not explained to audit. As seen from the Cheques received register, the corresponding credit entries in the Bank account could not be traced in audit and the amount realized in lump sum on a day is taken to receipt. As seen from the Cash Book, the receipt side of the cash book was not at all maintained. Treasury adjustments, voucher adjustments etc., were not carried out. Registers of appeals, revisions, mutations, writes off, remissions etc., were not maintained and produced to audit. Monthly lists of outdoor staff whether given effect, if so whether given effect promptly within the time or not were not borne by record and as no manual demand registers were maintained whether all suchchanges were effected in the demand or not could not be verified in audit. In the absence of maintenance of subsidiary registers connected with levy, collection of property tax and other taxes and non taxes, the demand generated by the computer data base whether can be taken as authentic and certified demand or not, could not be decided in audit. The Executive Authority therefore would need to look in to the matter and test the efficacy of the soft ware in place and furnish certified demand to audit so as to verify the same. (Code.No.18) 82) ENTERTAINMENT TAX FILES RELATING TO ET OF CINEMA AND CABLE T.V NOT MAINTAINED: As per GO.Ms No.1644 Revenue (CT-IV) Department dt.8.11.2006, the levy, assessment, collection and enforcement of Entertainment Tax on Cinema, Cable TV networks shall be vested with commercial Tax Department. According to section 4 of APET Act 1939 (The Act originally passed by the Madras Provincial Legislature as Madras Entertainment Tax Act 1939) 90 percent of the total proceeds of the Entertainment Tax collected in the Municipal area

by the CT department is required to be apportioned to the local authority every quarter. An amount of Rs Nil was adjusted towards Entertainment Taxto this Nagarpanchayati during the year. It was observed from the E.T files relating to Cinema and Cable T.V was not maintained in this Nagar panchyati. In the absence of the said file the correctness of the adjustment particulars of E.T could not be verified in audit. (Code.No.18) 83) D & O TRADES - CERTAIN DEFECTS - IRREGULAR - LOSS IF ANY NEEDS RECOVERY: While conducting the audit on the accounts of D & O Trade License Fees for the year 2016-17, an amount of Rs.3,91,883.00 was collected towards D & O Trade License fees and the following defects were noticed. 1. The Challans in token of receipts of D & O Trades License Fee was not Produced. 2. Form 8 copy issued to the D & O Trade License holders was not produced. 3. The amounts of D & O Trades collected during the year 2016-17towards advance collections for the year 2018-19 was also not Explained and produced to audit. Further as could be verified from the D & O trade files and registers it was observed that only collection register relating to the license fee was produced in audit. The demand of the same was not produced in audit, without which the new cases of trades and the cases of traders of which the licenses were lapsed could not be verified in audit. It was also observed that regular numbering system to the shops was not followed. It is advised that each shop would need to be allotted a number indicating the ward in which it is located. The same number would need to be made visible on the premises of that shop by which it would be made easy for the municipal authorities to trace the traders who had not obtained the license fees. It is also advisable that the same information may be kept available online which might enable the citizens to check the information when they need it. Steps would need to be taken to rectify the mentioned irregularities. In View of the defects explained above necessary action would need to be taken to rectify the defects and compliance reported to audit. If any loss sustained in this regard would need to be made good from person or persons responsible. (Code No.18) 84) D & O TRADE LICENSE FEE - PARTICULARS OF LABOUR WELFARE MEASURES - NOT PRODUCED: While conducting the audit on the accounts of Nagar panchayati for the year 2016-17, it was observed that D & O trade licenses were issued to some traders. But the details of labour force working under such traders were not produced in audit. The traders need to pay certain fee towards labour welfare fund, for the welfare of labour. The labour welfare authorities would take care of such labour force in case of their deaths, marriages etc. The labourers would be entitled for 13 welfare programmes that are given by the labour welfare department. By not paying such fee, the labourers are ineligible for such welfare programmes. Hence, the municipal authorities would need to look in to the matter, and steps would need to be taken to see that the traders pay certain fees to the labour department. (CodeNo.18) 85) NOMINAL FEE FROM TEMPORARY STALLS - CERTAIN DEFECTS: Temporary stalls for the promotion of some private products likecars, mobile networks, water purifiers etc., are widespread nowadays. They are installed in municipal areas for the period ranging from one day to several weeks using municipality land. They are to be imposed nominal fee for using Nagar Panchyat land to increase the Nagar Panchyat revenue. But, as could be verified from the general fund cash book for the year 2015-2016, no amount was collected towards the same. Hence, steps would need to be taken to collect the nominal fee from the promoters. (Code No.18) 86) USAGE OF FLEX IN U L B -s - CERTAIN RECOMMENDATIONS: Plastic usage has become a menace. Its rate of bio-degradation is much less comparatively which results in health hazards like acute central nervous effects, dizziness and headache to name a few. Flex with the introduction of Vinyl printing there in widespread usage of vinyl posters for political and personal propaganda etc., commercial advertisements in a irregular haphazard manner, obstructing vision, creating traffic problems and due to poor disposal, creating environmental problems, increasing the burden on Nagar panchayati staff for clearing the garbage. In view of the above, there isevery need to discourage the usage of these posters through certain nominal fees to regulate the vinyl printing posters which will also add to the revenues of Nagar panchayat. Further it is recommended that Nagar Panchayati authorities should implement such plastic waste management feasible to it. (Code No.18) 87) POLE TAX NOT COLLECTED FROM CABLE TV - LOSS OF REVENUE - REGARDING: The cable operators of Vuyyuru Nagar panchayati are providing cable services and for this purpose they are erecting poles or using Nagar panchayat infrastructure. But as per Municipalrules Pole tax is to be collected from the cable operators which provides considerable revenue to the Nagar panchayat. Immediate steps need to be taken in this direction and fact intimated to audit. 88) D & O TRADES - NEW TYPE ENTERPRISES LICENSE FEE NOT COLLECTED: (Code No.18) On verification of public health section D & O Trades records for the year 2016-17, it is observed that certain new types of enterprises like Cell

phone shops, Readymade Garments etc., were not included in the Gazette and license fee was not collected such shops which is loss to the Nagar panchayat funds. Hence verification shall be made and all other such enterprises which were not included in the Gazette earlier shall be included without fail. 89) ADVANCE COLLECTION OF D & O TRADE FEES INCLUDED IN THE RECEIPT & PAYMENT STATEMENT : (Code No.18) The convention in the ULBs with regard to the collections of D & O trade fees was to collect the same in advance for the subsequent year i.e. before February of an year. The collections made after February are to be made along with collection of belated fees. The advance collection made shall be kept under deposit for this year and adjusted to General funds in the subsequent year. But during the course of verification of account it was noticed that the said distinction was not observed and the collections made were not classified in to the year to which they pertain. As a result of which the entire amount collected is reflected as income in the Income and Expenditure statement for the year 2016-17 though the income actually pertains to the year 2017-18. The correctness of the income and expenditure could not be verified. (Code No.18) 90) ADVANCES - ADVANCES RECOVERABLE REGISTER NOT MAINTAINED PROPERLY - IRREGULAR - NEEDS PROPER MAINTENANCE: As verified from the Advances recoverable register maintained for the year 2016-17, it was full of defects as detailed below. 1. Many advances sanctioned during the year were not entered in the register which is highly irregular. The advances sanctioned during the year were detailed in the next page (Annexure). 2. Previous balances were not forward to by the advances sanctioned during the financialyear, leaving the outstanding advances that were sanctioned in previous yearswithout accounting for which is highly irregular. 3. Recoveries were not posted in the register by noting the installment numbers. As such, how much amount was recovered and how much balance was left out for that year couldnot be checked in audit. 4. Advances account not prepared for the year. D.C.B. was not produced. In view of the above defects in maintenance of advances recoverable register, the advances account could not be finalised and also whether they are being recovered or not could not be checked in audit. As such the loss if any caused to Nagar Panchyat funds due to irregular maintenance of this register should be got recovered from the person or persons responsible. Immediate action would need to be taken to produce the said register duly rectifying the defects. (Code No.18) 91) RECOVERY ACCOUNT (SALARY & PENSIONS) - MONTHLY INSTALMENTS TOWARDS ADVANCES ADJUSTED - BUT NOT REMITTED TO GENERAL FUND - IRREGULAR: As per G.O.Ms.No.179/MA & UD (G-1) Dept., Dt.25.2.2009, the salaries are being paid under the Head of 010 from Treasuries w.e.f. 1.4.2009. The Non-Government recoveries like Festival Advances, Marriage Advance, Bank Loans, Court recoveries etc., were adjusted to this account by the Treasury Department while passing the salary bills. The monthly installments of advances which were taken from Nagar Panchyat General Funds were credited to this account as Non-Government recoveries. The credit installments were not remitted to Nagar Panchyat General funds sofar. As such huge amount relating general fund amount was available and kept idle. The Executive Authority did not take much interest of recovery amount to Nagar Panchyat General Fund. However as there are no Government instructions for discontinuation of pay bill register, the office is not maintaining the pay bill registers instead preparing pay bills on computer. Assuch it could not be ascertained in audit how much amount was adjusted in this account towards recovery of advance amount. Immediate action would need to be taken to remit to the Municipal General Funds. In this connection it was observed that an amount of Rs327209/-. was drawn and paid to the employees towards Festival advance, Marriage advance and Vehicle advance from the fund which was created from non-government recoveries like advances, Bank Loans, Court recoveries etc. This is not admissible in audit. The Executive Authority would need to take good steps to remit account concerned as and when adjusted to this fund in future. (Code No.18) 92) NON EXCHANGE OF INFORMATION BETWEEN TOWN PLANNING AND REVENUE SECTION: The Revenue Wing of the Nagar panchayat did not have access to the Building Approvals plans form the town Planning wingas there was no system to furnish copies of approvals by the Town planning Wing to the Revenue Wing for monitoring of the buildings and asses it under PT in accordance with the details therein. The Revenue wing similarly did not follow the procedure to bring to the notice of the Town Planning Wing in respect of buildings that have been constructed unauthorised for taking further necessary action. Details of visits made by the Building inspectors for verification of the status of the buildings for which permissions were given were not forthcoming in audit. The U.C. Registers maintained showing the details of the notices given for the deviations noticed and the unauthorised constructions against which action was taken were not produced to assess the

work of the Town planning wing of the ULB. (Code No.18) 93) NON-UTILISATION OF FEE TOWARDS PUBLICATION OF BUILDING PERMISSION IN NEWSPAPERS COLLECTED FROM THE APPLICANTS SEEKING PERMISSION FOR HOUSE-PLAN AND FOR HOUSE CONSTRUCTION: In accordance with Government memo.No.22889/MA/97, MA&UD, dated 1-11-1997, an amount of Rs.100/- from individuals and Rs.1000 from apartment builders, are being collected by the municipal authorities towards fee for publication of building permissions in newspapers while according approval for house plans. The amounts collected shall be utilised towards publication charges payable to news media for printing the particulars viz., name of the applicant/GPA, sanction, total sq.ft sanctioned, total floors sanctioned, number of flats per floor, area of flats, parking space, etc., as a measure of transparency. It was observed during the scrutiny of the records that the particulars of building permissions were not made public through the press utilizing the publication charges collected from the applicants in contravention of the Government orders. No separate account was maintained as regards publication charges so far collected. This was not in order. The lists of all unauthorised constructions noticed especially regarding apartments, office complexes werenot published in the newspapers every month for information of general public. . (CodeNo.18) 94) PAID VOUCHERS - -COUNCIL RESOLUTION- NUMBER WAS NOT NOTED ON THE PAID VOUCHERS : As verified from the paid vouchers for the year 2016-17, it was noticed that the -Council Resolution- number was not noted on back side of the vouchers. In the absence of the same, the fact of obtaining the council resolution for the payments made could not be verified in audit. Action may be taken for notingthe council resolution number and date for every paid voucher in future. (Code No.18) 95) DEPARTMENTAL INSPECTION AND INTERNAL AUDIT OF THE OFFICE NOT DONE: Departmental Inspection:- According to the Government orders in G.O.Ms.No.247,GAD, dated 8.2.1962and instructions issued from time to time. District Officers and their subordinate officers are required to be inspected by the Heads of Departments periodically and furnish Inspection Reports in the form of Questionnaire prescribed therein. The need for inspection of Government offices periodically was also emphasized in Government Memo. Internal Audit:- As per the orders in G.O. Ms.No.34, F & P Department, dated 1-7-1997, it is the responsibility of the Accounts Branch of the Head of the Department to conduct Internal Audit of the Regional offices, District offices,unit offices etc., periodically at least once in a year and furnish report. The copies of the Departmental Inspection notes and Internal Audit notes were not produced to audit. In the absence of the said copies it could not be knownwhether the inspection either departmental or internal was conducted in timeor not. The same may be furnished to audit. 96) REGISTERS NOT MAINTEAINED: (Code No.18) The important registers to be maintained along with cash book were as detailed below. Early action would need to be taken to maintain these registers and produced the same for verification in audit. 1. Undisbursed pay register. 2. Permanent advance register. 3. Registerof contingent charges. 4. Register of A.G. Objections. 5. Stock register of Furniture. 6. Establishment Audit register. 7. Increment Watch register. 8. Register showing the temporary establishment and their Continuance. 9. Stock register of M.V. Forms. 10. Register of Security deposits. 11. Register ofrecoveries of loans granted to government servants for purchases of Bicycles, H.B.A.M.A., Motor cycle etc., 12. Condemned articles register. 13. Mutation register. 14. Stock register of P.H. articles. 15. Petty Cash book. 16. Tools and Plants Register 17. Stock Register for Stationery. 18. Register of V.L.T. 19. D.C.B of vacant Land Tax. 20. D.C.B. of Advertisement Tax. 21. Used ReceiptBooks for the taxes collected manually (WT VLT and M.R) 22. Register of Auction files of Vacant condemned.

DAO ( Signature )

Enclosures :-

I.Employee Particulars Report

II.Inventory Report

---- 0 ----

This Report is Electronically Generated, So Signature is not required

http://dsa.ap.gov.in/myemplyeereport.jsp

http://dsa.ap.gov.in/inventoryreport.jsp

audit report on the accounts of the vuuru...

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