Statutory Audit:
 

As per statutory provisions the municipal funds are required to be audited annually. The office of examiner of local accounts under the A.G. conducts the said statutory audits. The following procedures are followed in regard to audit of municipal funds:

1. As per provisions of section 86 of the West Bengal Municipal Act, 1993, and  rule 22 and 23 of the West Bengal Municipal (Finance & Accounting) Rules, 1999 annual financial statements of the Municipalities are required to be audited.

2. In terms of provisions of sub-section (1) of section 14 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 [Act 56 of 1971], which is a Central Act, when any body or authority is substantially financed by grants or loans from the Consolidated Fund of India or of any State, the Comptroller and Auditor General shall, subject to the provisions of any law for the time being in force applicable to the body or authority, as the case may be, audit all receipts and expenditure of that body or authority and to report on the receipts and expenditure audited by him. Accordingly Statutory Audit of the Urban Local Bodies in this State are conducted by the A.G., West Bengal.

3. After completion of audit the ELA (on behalf of AG) sends a copy of Inspection Report (IR) to the concerned ULB and also sends a copy to the Director of Local Bodies and Municipal Affairs Department for necessary action.

4. Some IR paras are attended by the ULBs directly to the ELA, through proper channel, and for the unattended IR paras the Departmental Audit Committee takes up the matter in its meeting regularly in presence of the representatives of AG/ ELA for disposal.

5. When A.G. is not satisfied with the reply on any IR paras these paras are reflected in the reports of CAG. After publication of the report of CAG, the concerned ULBs send reply to the CAG paras., to the Director of Local Bodies, West Bengal with a copy endorsed to this Department and the Director of Local Bodies in tern send the said reply, with his comments, to the Municipal Affairs Department for consideration. Municipal Affairs Department in turn, with its comments, send 35 sets of the same to the Secretary, West Bengal Legislative Assembly for settlement. Selected CAG paras on ULBs, belonging to Statement ‘A’, are discussed in the Public Accounts Committee of the West Bengal Legislative Assembly and the result of discussion on these paras termed as PAC paras belonging to statement ‘C’ are sent to this Department for further action. Action Taken Report/ Action Taken Note on paras of statement ‘C’ are sent to the West Bengal Legislative Assembly by this Department. Similarly replies to CAG paras termed as PAC paras statement ‘B’ (not selected for discussion) are sent to West Bengal Legislative Assembly in 35 sets as per existing procedure.

6. The State Government in Finance Department, vide notification No. 4010-FB dated the 23^rd February, 2006, has constituted a State Level Audit Committee, headed by the Chief Secretary as its Chairman, and with A.G. (RW & LBA), West Bengal; Pr. Secretary, Municipal Affairs Department; Pr. Secretary, Panchayet & Rural Development Department; and Pr. Secretary, Finance Department being members, while Pr. Secretary, Finance (IA) Department is the member Secretary of the Committee, in order to examine the findings of the Audit Reports of, inter alia, the Urban Local Bodies.

Apart from the above there exists a Departmental Audit Committee in this Department with one Joint Secretary of this Department as the head of the Committee, while the other members are Director of Local Bodies or one Deputy Director of Local Bodies as his representative; Sr. Audit Officer on behalf of A.G., West Bengal; C.E.O./ E.O./ Finance Officer of the concerned Municipal Corporation/ Municipality/ Notified Area Authority; and one experienced Audit & Accounts Officer on behalf of Municipal Affairs Department. Meetings of this Committee are held regularly to discuss and settle outstanding IR paras. Till date a large number of audit paras have been settled as a result of such discussions in presence of the representative of A.G., West Bengal in respect of IR paras.