INTERNAL AUDIT REPORT of

DAINHAT M(NICIPALITY

Reg. Office: Dainhat, Purba , '

FINANCIAL YEAR: 2014 - 15

Audit Period: From 0110412014 to 3110312015

B KAR & ASSOCIATES Chartered Accountants

e-mail : bkarassociates@ gmail. com bkaras s o c i ate s @ redi ffrnai 1. c om

Mobile: +9t 9432 44 t5 44 I +91 8100 82 92 99

Reg. Off.: PO- Ram chandrapur, , Bagnan- 71t303

Docs. Hub: Holding No. 132, WardNo. 11, CTC Bus Stand, Kolkata -700129. ts KAR &ASSCCNATES +91 9432 44 t5 44 Chartered Accountants [email protected]

To The Chairman Dainhat , Dainhat, Purba Bardhaman, West Bengal.

Sub: lnternat Audit Report for the FY 2014-15 of Dainhat MunicipaLity

Ref: your Appointment Letter Vide Memo No.-438lDM/C0NT. Dated -23l08/2018. Sir,

In terms of your above appointment letter vide Memo No.- 43S1DM|CONT. Dated- z3lOBlZOtB, related to Internal Audit of Dainhat Municipality, we have visited the following departments of your ULB from time to time during course of our Audit to verify the various records and vouch transactions thereto:

1) Accounts Section 2) PWD Section 3) Establishment Section 4) Relief Section 5) Death & Birth Section 5) Licence Section 7) Tax Section 8) Received Section 9) Cash Section 10) General Section 11) Conservancy Section t2) Health Section

After verifying the records as maintained by above department of your ULB we noted some discrepancies/ flndings and observations and on the basis we have prepared statement on the depaftment wise findings and submitted the same for the clarifications/replies against our audit queries from your end.

We have considered your clariflcations/replies against our Audit queries while preparing your this Audit Report for Dainhat Municipality for the year 2014-L5.

We hereby submit the detailed Internal Audit Report for your kind perusal and on ward necessary Action from your end.

Thanking you,

Yours faithfully,

il; rrn ardsoclArrs" I CharlergdAccountants I F.R.N.3273488 - t b\ey-t BISWARUP KAR, Proprielor MEMBERSHIP NO. 068872 n4[, .lerl s

PO. - Ramchandra Pur, Dist. - Howrah, Bagnan _ 711303 A. GENERAL ORGANISATIONAL INFORMATIoN :- Name of the ULB ' Dainhat Municipatity No. of Wards of the ULB 214

Name of the Chairman for 2014-lE : Sri Santosh Kumar Das.

Name of the Vice-Chairman: 1) During FY under Audit : Smt. Swadhina Nandi. 2) Present Vice-Chairman: Sri. pradip Kr Roy.

Name of the Executive Officer: 1) During FYunderAudit : SriTuhin Kr. pat. 2) Present Executive 0fficer : SriTuhin Kr. pat.

Name of the Finance Officer: 1) During FYunderAudit : Nit 2) Present Finance 0fficer: Sri RajkumarSaha.

Address of the ULB :0td KK Road, P.0. - Dainhat, Dist. - Purba Bardhaman, Pin-713502.

Audit Period :From 01.04.2014 to 31.03.2015.

I Name of incumbent in-charge of Accounts :Sri Sumit Kumar Bhattacharyya.

Chr,r*cd \t 'Acrlrlr, ,,:is ]lrl \ /t4) About Accounting System of the ULB:-

The ULB has been using Accounting software namely PURO-HISAB, since the financial year 2006-07 under double Entry Accounting prepared by Change Management Unit, Govt. of West Bengal. The Software has been customised for the preplration ofAnnual Financial Statement of Urban Local Bodies ofWest Bengal.

The said Accounting Software ensures the generation of Annual Financial Statement and related other reports to comply the West Bengal Municipal (Finance and Accounting) Rules 1999 as suggested in West Bengal State ULB Accounting Manual as well as National Municipal Accounting Manual. It was also seen during the course of Audit all required Financial Statement as suggested by National Municipal Accounting Manual are teing generating correctly with proper forms and formats which are as follows:

1) Balance Sheet 2) Schedule wise of Balance Sheet 3) Income & Expenditure Accounts 4) Schedule wise of Inconie & Expenditure 5) Receipts & Payments Accounts 6) CashBook 7) Trial Balance

The Accounting Y:tem does not generate any registers like Fixed Asset Register (land- Form 90, Immovable Property Register form-118 & Movable Property Register form-19) Investment Register, Stores Register, Advance Register.

During the course of our Audit is seen it that Fixed Asset Registers like land-Form 90, Immovable Property Register form-[8 & Movable Property Register form-i.19 is maintained by ULB manually in MS-Excel file in computer.

Whereas ULB maintains hand written Registers in the case of Demand and collection Register, Grants Appropriation Register, Investment Register, Loans & Advance Register, Earnest money & Security Deposit Register,

As per prescription of National Municipal Accounting Manual and as well as State ULB Accounting Manual ULB used to follow Accrual Basis for accounting of financial transactions of revenue income like Property tax, Market rent and Income from Investment. But the revenue incomes like Assigned Revenue, fees and user charges, Sale and Hire charges accounted on Cash Basis.ULB also followed Accounting Standa rd,-Lz for accounting the transactions related to Government Grant. All stores are valued on FIFO basis. B. PENDING POSITION OF POSITION OF PREVIOUS AUDIT COMPLIANCE:-

Bl: AU Dlr 0 F EXAM I N ER 0F LOCAL Acc0uNTs- TRANSACIO N AUDlr:

a) Financial year up to which Transaction Audit has been completed by Examiner of Local Accounts: 2014-1 S.

b) Audit Period up to which Broad Sheet Reply to the lnspection Report of Examiners of Local Accounts: 2014-15.

82: lnternatAudit:

lnternaI Audit for the period 2013-1t+ has been conducied by ULB.

Point-wise Auditor's Obsenration/ queries and ULB Replies and Auditor,s Suggestion:-

a) Own source Revenue of the ULB: As explained by the ULB during course of our audit all cash receipts from the various departments like ProPerty tax, trade license etc. are collected by cashier entered in the "rd accounting software. The entire cash deposited to Bank Account of Municipal fund"." own source at the end of every day. No amount cash collected from various departments oi the ULB is retained in the Municipality. The head-wise revenue income is entered in the accounting software at time receipt of all collections. Contra vouchers are made to Bank Account of Municipi n .ra own source (SBI A/c No.11891643558) after deposit of the amount to the bank and sum rotal of entire collections frorn own source income is checked from the daily receipt summery generated from the accounting software by cash section at the end of everyday to ensure correctness between cash collected from own soxrce and deposited to own source bink (total of daily receipt summery = total of contra voucher of deposit daily collection in to bank = total Amount deposited at the end of the d"v).

b) Fund Management of Grant Fund Accounts: Generally own source revenues are not sufficient for running an ULB.The creation of urban Development infrastructure (land, shelter and civic services) -orld require dispensing a large amount of resources by the Urban Local Governments. With the rising levels of urbanirition aid glowth of urban population, the pressure on development of cities- is increasing in , as elsewhere in the World. Major sources finance comes from Central Government as well as State Government in the form of Government Grant. Like other ULBs in West Bengal DainhatMunicipality also receives grant from Central Government as well as State Government. Government Funds are sent to Treasury Account L/F account & Various Scheduled Bank Accounts of Dainhat Municipality.

As explained to us during the course our audit for the management of fund related to government grant on receipt of any Government order showing received of fund or on receipt of any cheque from any government agency like SUDA an accounting entry is made crediting respective grant account and debiting respective treasury and bink account by acco department of the ULB in the shape of Receipt / Journal voucher in the Accounting software. .r,1

As explained to us during the course of audit, when expenditure (Revenue/ Capital) i out of grant fund, after necessary approval from BOC the bill is sent to treasury in form of t advice along with a cheque as signed by Chairman and E.O of the ULB for clearance. The treasury officer checks the authenticity of the bill and accordingly passes the bill and resend the bill to ULB and cheque after passing the same' The cheque is then handed over to party on receipt of money receipt.

SL. BATANCE AS ON NAME OF BANK ACCOUNT NO. PURPOSE No. 31.03.2015 1 SBl, [)ainhat Branch 1 1891643558 ()wn Sources 2,26,402.05 2 SBl, Branch 34346434738 Treasury related A/c 4,92,986.00 3 SBl, t]ainhat Branch 11891643547 Govt. Grant 11,79,767.49 4 SBl, [)ainhat Branch 306s9287809 Security Deposit A/c 86,624.00 5 SBl, Dainhat Branch 32379784939 BSUP 2,634.00 6 SBl, Dainhat Branch 32112204706 HUP 1,13,689.00 7 UBl, Kawa Branch 208010474047 14rh FC 53,16,500.00 8 SBl. []ainhat Branch 11891644165 BZSS 10,799.74 SBl. I [)ainhat Branch 31440617283 BEUP 2,15,140.00 10 SBl, Dainhat Branch 11891646264 KUSP 2,631.00 11 SBl, Dainhat Branch 1 1 891 646785 IHSI]P 29,618.94 12 SBl, []ainhat Branch 31715q22668 IGNWPS 6,55,855.00 13 SBl, [)ainhat Branch 31715623468 IGNDPS 40,319.00 14 SBl, []ainhat Branch 31 71 561 1 996 IGN()APS 10,62,919.00 15 SBl,0ainhat Branch 1 1891646253 HHW 3,81,612.17 16 SBl, []ainhat Branch 1 1 891 644585 PENSION A/C 2,608.44 17 SBl, []ainhat Branch 33723216914 SALARY FUNt) A/C 14,18,626.00 18 SBl,0ainhat Branch 31768332841 Mt]M 38,68,943.00 19 SBl, Dainhat Branch 32112207093 ILCS 8,572.00 20 SBl, Dainhat Branch 33723296945 NFBS 1,20,332.00 21 SBl, 0ainhat Branch 317158622023 WATER SUPPLYA/C 22,703.00 22 SBl,0ainhat Branch 1 1 891 6464633 HERITAGE 44,966.58 23 SBl, Dainhat Branch 3144061 6369 MPLAt) 3,199.00 24 SBl, Dainhat Branch 32379784316 sEcc-r1 14,507.00 25 SBl,0ainhat Branch 315930146526 RE\/L(]VING FUND 1,205.00 26 SBl,0ainhat Branch 31768575374 NCLP 3,24,139.00 27 SBl. [)ainhat Branch 30703232135 SJSRY 6,57,126.00 28 UBl, Kawa Branch 208010288736 12TH FC 56,22,012.00 29 Katwa Treasury 8448 LF A/c 1,05,45,302.00

During course of Audit the ULB has prepared the Bank Reconciliation Statement for the financial year 2014-i.5.The ULB is maintaining 29 No's Bank Accounts including treasury Accounts. :

1) No bank Account is un-reconciled during the year 2ot4-LS. And there is no discrepancy found. 2) Plenty ofcheques have been issued by Dainhat Municipality which wasnot clearin the Period oBt.Og.ZOL5 as per following list. List of Un-cleared es:- Cheque Name of Account Account No. Cheque No. Amount Date 12 th FC 208010288736 703421 2713t15 3,050.00 703422 27t3t15 12,300.00 BEUP 314406'.t7293 615258 31t3t15 3,95,000.00 DM Treasury Fund A/c 34346434t38 910464 27t3t15 12,59,000.00 910465 31t3t15 24,75,097.00 HHWA/c 11891646253 382342 27l3t1s 1,01,096.00 382343 27t3t15 89,580.00 382344 31t3t15 2,619.00 MDM 31t58332841 84631 27t3t15 9,589.00 84632 27t3t15 42,577.00 84633 27tst15 20,429.00 521699 27t3t15 27,000.00 521700 27t3115 5,400.00 84634 31t3115 306.00 Fixed Grant Treasury lD-5231 38428 30/3/15 7,15,000.00 Own Sources 11891643558 618886 27t3t18 5,596.00 Pension a/c 1189r64458s 515377 31t3115 2,11,352.00 Satary Fund Treasury lD-5184 38425 30/3/15 14,111,392.00 Satary Fund a/c 33723216914 854651 31t3t15 90,000.00 854652 31l3t1s 12,64,415.00 854653 31t3t15 27,367.00 SD A/c 30559287809 245075 27t3t15 2,218.00 245076 27t3t15 3,920.00 245077 31t3t15 1,150.00 SJSRYA/c 30703232135 515805 27t3t15 14,120.00 Water Suppty A/c 31715622023 261 336 27t3t15 4,162.00 261337 27t3t15 1,25,000.00

There 3) are No inoperative Banks accounts lying in the schedule related to Cash & Bank Balances.

Auditors Suggestion on BRS:

1) The above stale cheques are to be written back by crediting liability to that extent 2) Efforts to be made to close down the inoperative BankAccounts. 3) We are also tryrng to reconcile the r"-".

0bservation on cheques & Money Receipts:-

1) All the cheques are kept under the custody of Accountant. 2) All issued cheques are entered in the cheque issues register. 3) Money receipts are r4ade on bills itself against which-payment is made.

As per West Bengal Accounting Manual for ULBs Property tax and Market Rent will be collected and accounted on accrual basis and other incomes like trade license, fees and user charges will be collected and accounted on Cash Basis. Therefore any amount collected against arrear/ current demand on receivable from Property Tax, Market can be considered as collection from debtors. During the course of our Audit the Demand and Collection Register were not made available to US by ULB. All demands are being sent to Assesses from the hand books of collecting sarkars of all wards. Which means in many cases the demand notice to the property tax is not being sent to Property holders of the ULB in each year. It can be said that amount receivable from Property tax (both Current year as well as for Arrear year) as per Accounting software does not show the true and correct view of receivable.

During course of our Audit it was also noticed no age analysis of receivable from property tax has been prepared by the ULB as per suggestion of Stut" ULB Accounting Manual ro ui to identi4r the debtors who have not paid property tax for a long period.

However, The Arrear demand on Property tax was Rs.21, Og,ziJZ.OOand the current demand on property tax for the FY 2Ot4-75 was Rs. 8,26,8A7.00. The total collection from Property tax during the FY 2Ot4-tS was Rs LO,4L,O4}.OO.

ULB's replies on receivable from PropertyTax:

As explain by ULB during the course of our Audit the maintenance of Demand and Collection Register is withdrawn by ULB from April, zotg. ULB serves demand notice of proPerty tax to the Assesse on the basis of a file and hand book of 5 No.s Collecting Sarkars.

Audito/s Suggestion on receivable from propertyTax:

Necessary steps to be taken to update demand and collection register so as to update the data base of receivables from Property tax as well as Market rent aian earliest. It is also suggested to prepare age wise analyiis of receivables from properry tax as well as market rent.

As per suggestion of Accounting Manual of ULB West Bengal, ULB is maintaining the Stores valuation on FIFO. Basis. But no physical verification of Stores has been maJe by ULB in any year though the it is suggested by Statutory Auditor in their report of AFS of thl ULB. However the closing Balance of Stores of the ULB as on 31.03.2015 are as follows:

Opening Balance Stores Items Code Purchases during Issued during Closing Balance as on 01.04.14 the period the year as on 31.03.2015 CENRAT STORE 4301 001 39,06,150.19 7,07,655.00 3,83,960.50 42,29,944.69 MEDICAL STORE 4301004 14,59,465.00 12,79,163.00 2,24,906.00 25,11,722.00 HEATTH STORE 430'100s 86,830.00 86,830.00 STATIONARY STORE 4301 006 320.00 320.00 SANITARYAND CONSERVANCY 4301 01 0 10,015.00 10,015.00 STORE WATERSUPPLY 4301011 STORE 9,820.50 9,820.50

ELECTRICITY STORE 4301012

Total (Rs.) 54,71,600.69 19,85,819.00 6,08,866.50 68,48,552.19 K*,{N '*] ,,,,,,, ,,,1\# \i IK Jij \ /i 'r ,s(t"'ur,\_*_ // \.\\* -/ Audit 0bservation:

During course of our Audit it was seen that stock registers are maintained for all types stocks like, Engineering, Water supply, Electrical, Sanitary & Conservanry, Medical and health. We have checked the stores ledgers of all high value items. It is maintained in quantity wise. It is seen that valuation of the stores not made for any items of the stores. Therefore valuations of closing stock as per stores register *"r" ,oi found in any stores register.

It is also seen that physical verification of the stores item is not done by the ULB.

ULB's Replies to Stores

ULB could not provide any reply in this respect.

Audito/s Suggestion for improvement of stores:

The physical verification of the stores is to be made for all high value items for at least on quarterly basis. The value of the stores as per accounting ,Jft*"r" and value of stores as per software of the Stores should be tallied with each other.

On verification during the course of our audit it was seen that there advance registers that has been maintained manually by ULB. But advance register is not up to date. Iicannot be maintained due to scarcity of staff. Efforts are being made to make idru.r"" register up to date' We have compared total Advance as per accounting software and Total advance as per Manual Register as on 31.03.2015. The said comparison is as follows:

For the Year 2OL4-LS For the Year 2014-15 Particulars as per Manual as per Accounting Register Software Opening Balance of Advance 2,70,417.00 2,70,417.00 Add; Addition during the year 1,99,750.00 1,99,750.00 Totat 4,70,167.00 4,70,167.00 Less: Adiusted During the year 1,05,100.00 1,05,100.00 Closing Balance of Advance 3,65,067.00 3,65,067.00

ULB's Replies to unadjusted Advance:

ULB could not furnish any reason for the unadjusted advance as per the advance register before us during the course of our audit.

Audito/s recommendation on Loans &Advance:

The unadjusted total advance as per manual advance register has to be adjusted properly. Effective steps to be taken for adjustment of advances for a long period given to Govt. agencies. C 5.l.0bservation on Reconciliation of tnvestment Own Fund:

Investment Own Fund (Other Investment [42OgOO1]l

Particulars For the Year 2014-15 Opening Balance of lnvestment Nit

Add: Addition during the year Nit Add: !nterest Earned during the year Nit Total Nit Less: Matured During the year Nit Closing Balance of lnvestment Nit

The investment own fund amounting to Rs.Nil is showing in the code 4208001 from the period of Opening Balance Sheet. No investment being *"d" by the ULB durin gZ1L4-LS.

C5.2. Reconcitiation of lnvestment otherfund:

The investment other fund is kept in the accounting code 4218005. The following is reconciliation of Investment other fund as per accourtirg software. The ULB is preseitly in the process of updation of manual name wise Employ". ff register. Thus we could noi compare the balance of Provident fund as per accounting software and Manual Provident fund register for the employ"". Ho*"rr"r, tie present position of the provident fund as on 31.03.2015 is as follonnrs:

Treasury cPF (4218OOS)

For the Year 2O!4-LS For the Year 2OL4-!5 Particulars as per Accounting asper Manual Software Register Opening Balance of Investment 76,91,732.00 76,9'|-,732.00 Add: Addition during the year plus Interest Earned during 22,66,197.00 22,66,197.00 the year Total 99,57,919.00 99,57,919.00 Less: Matured During the year 20,09,727.OO 20,09,727.00 Closing Balance of Investment 79,49,192.00 79,49,192.00

C5. Loan (Secured/Uncured Loan):

Balance of Un-secured Loan (gg18OO1)

Particulars For the Year 2014-15

Opening Balance of Loan(Secured/ Unsecured loan) Nit

Add: Addition during the year(lf any) Nit

Add: lnterest on Loan(Secured/ Unsecured loan) Nit

Total Nit

Less: Repayment (if any) During the year Nir Closing Balance of Loan (Secured/ Unsecured loan) NiI The unsecured loan amounting to Ni! is showing in the code 331g001 from the period of opening Balance Sheet. The ULB has a secured loan from UCO Bank. Principal aniount has been paid but interest on loan is outstanding. The ULB owe money to the bank as house rent which is not settled yet.

D. Comments on the Budget of the ULB:

El: Expenditure Budget Vs Actual Expenditure of the ULB for the year 2014-lSRs (Crores)

Budgeted Saving (+) Year Items Actual Expenditure / Expenditure Excess(-) Revenue (excluding 316.33 236.54 79.79 20t4-L5 Depreciation) Capital 77.59 832.4s -754.86

E2: Budgeted Receipt Vs Actual Receipt of the ULB for the year20l4-lERs (Crores)

Budgeted Year Items Actual Receipts Receipts Deviation Own Source o.522 0.599 -0.o77 Government 20L4-L5 Grant (State / Central)plus 4.L26 4.92 -o.794 Assigned Revenue

Auditors Observationon the (Capital Expenditure / Fixed Assets).

The ULB is maintaining its Fixed Assets Register as per Format prescribed in WB State ULB Accounting Manual (Form No 90, Form No. 118 and Form No 119).The rates Depreciation on fixed assets has been followed as prescribed in WB State ULB Accounting Manual. The ULB have been preparing the Asset Matrix from the FY 2006-07 and onwards.

We have also verified the total additions to Fixed Asset in form of Land, Immovable Movable and Movable Property during the year 2014-1,5 as per following table:

Out ofGrant Fund Out of Name of Assets Municipal (Rs) Total (Rs) Fund [Rs) Land

Buitdings 24,48,543.00 24,49,543.00

Statues and valuabte works of art and Antiquities 2,00,000.00 2,00,000.00

Parks and Playgrounds 1,25,000.00 1,25,000.00 Roads and Bridges Concreat Road 19,01 ,606.00 19,01,606.00 Bitumin Road 9,59,211.00 9,58,211.00 Road & Pavement (Jthers 2,32,894.50 2,32,994.50 BRIDGE

CULVERT 78,540.00 78,540.00 T/#3ra \" :i ci"-' ,.: Guard wall 60,135.00 60,135.00 l Sewerage and drainage '(.,,,,-7 Strom water 0rain 10,25,365.00 10,25,365.00 0rain-0pen 5,76,956.00 5,76,956.00 []rain -Close 12,58,200.00 12,58,200.00 Water ways WATER Pipelines 5,21,909.00 5,21,809.00 Deep Tube Wetl

Water Tank

Bore well

Reserver

Sinking & Re-Sinking of Tubewell 3,16,728.00 3,16,728.00

MOI/ABLE ASSETS Furniture & Fittings 62,074.00 62,074.O0 Electrical Appliances 65,634.00 65,634.00 Transformar \IEHICLE 3,95,000.00 3,95,000.00 PLANT& MACHINERY 2,74,319.O0 2,74,319.OO Office & 0ther E0 1,12,260.00 1,12,260.00 0ther Assets 23,500.00 23,500.00 Total 1,06,36,774.50 1,06,36,774.50

G. Receipts of Government Grants & Deposit works during the Fy20l4-15:

We have also verified the Receipts of Government Grant FY 2O!4-L5 from concerned Appropriation Registers:

Total Receipts of Grant during the Fy zoL4-lswere as follows:

sL. Accounting As per Accounting As per Name of the Grant Remarks NO Code Software Register Appropriation I If Any) (Rs) Register [Rs) 1 3201004 NOAPS 1,15,25,900.00 1,15,25,900.00 2 320LOO7 JNNURM 3 3201008 SJSRY 82,500.00 82,500.00 4 3201011 ssK 8,42,400.00 8,42,400.00 5 320LOL2 MID DAY MEAL 37,87,005.00 37,87,005.00 13 FINANCE COMMISSION 6 3201015 GRANT 71,33,314.00 71 ,33,314.00 7 32010s2 PULSE POLIO 37,201.00 37,201.00 OTHER SPECIFIC PURPOSE 8 3202006 GRANTS 66,70,B43.00 66,70,843.00 9 3202007 sFc 39,79,000.00 39,79,000.00 URBAN WAGE EMPLOYMENT 10 3202008 27,37,500.00 GENERATION 27,37,500.00 GRANTS FOR TAXES ON LL 3202063 vEHlcrEs (EMERGENT ROAD 4,34,0'11.00 4,34,011 .00 REPATR & MAINT) L2 Gitanjali 2,80,000.00 2,80,000.00 13 Enterainment Tax 5,00,000.00 5,00,000.00 L4 5alary 57,57,394.00 57,57,394.00 I A5}N 15 DA 39,25,935.00 39,25,935.00 ---l 16 Fixed Grant 27,03,000.00 27,03,000.00 TOTAL 5,03,95,903.00 5,03,95,903.00 5 i- -r/' H. Current Year lncome & Expenditure;

During course of Audit we have verified the Income (Revenue Income and Capital Income) and Expenditure of the ULB for the year 2014-L5 from the Cash Bbok, Receipts & Pa),rnent Accounts, Annual Budget and various Appropriation Registers (of Grants and contributions for specific purpose), measurement book, scheme Register etc. summary of which is annexed below:

SL AMOUNT Remark HEAD OF INCOME NO (Rs) s A. Revenue Receipts (l+2+3) 3,82,66,416.00 1 0wn source Revenue(x+y) 50,39,296.00 X Tax Revenue 17,24,49O.00 i) Property tax 8,74,754.00 ii) 0ther tax (levied and collected by municipatbody) 8,49,726.00 v Non Tax Revenue 33,14,906.00 i) Fees & f ines L9,27,725.00 ii) User Charges 4,56,023.00 0ther non-tax revenue (tevied and cottected bymunicipal i ii) 9,31,059.00 body) Tota[ Own Source Revenue (x+y) 50,39,296.00 2 0ther Revenue Receipts 3,62,130.00 i) I ncome from interest/investments 2,42,005.00 ii) 0ther Revenue income L,20,L25.00 Totat of 0ther Revenue Receipts 3,62,130.00 3 Transfer Grant & Assigned Revenue 3,28,65,000.00 i) ltate Assigned Revenue 9,34,000.00 State Finance (SFC) ti) Commission G ra nts/DevoIution rii) 0ctroi compensation iv) 0ther State Government Transfers 1,50,89,000.00 v) CentraI Finance Commission (CFC) Grant 13,70,000.00 vi) 0ther CentraI Government Transfers 1,54,72,000.00 vii) 0thers B. Capitat Receipts 35,27,O25.0O Sate of MunicipaI Fixed Assets (lf any) Loans (from State Govt. or Banks etc.) State Capitat Account Grant (under State Schemes etc.) 35,27,025.00 CentraI Capitat Account Grant (under Centratschemes etc.) 0ther Capitat Receipts ,4 TotaI of Capitat Receipts 35,27,025.00 otal Receipts of the ULB for the year 2014-15 (A+B) 4.17.93.441.00 # '':\, Current Year Expenditure (Revenue & Capitat):-

SL HEAD OF EXPENDITURE ltn AMOUNT (Rs) Remarks Revenue Expenditure (A)

i) Estabtishment Expenditure 2,6L,95,763.00

ii) 0peration and Maintenance 47,79,830.00

iii) lnterest on Loan paid during the year

iv) Any other revenue expenditure not covered under i). iil & iiil 3,68,306.00 TotaI Revenue Expenditure 3,13,43,899.00

Capitat Expenditure (B) i) AtI developmentaI works under Centra[ / State specific schemes 1,06,36,474.00 ii) Loan Repayments (Principat Amount)

iii) 0ther CapitaI expenditure Total Capitat Expenditure 1,06,36,474.00

TotaI Expenditure of the ULB for the year 2014-15 [A+B] 4,19,80,373.00

We must thank the designated staffs for their active co-operation to carry out the job to the extent of our satisfaction. Without their active co-operation it would not have been possible for us to complete the work.

Place: Kolkata for B. KAR & ASSOCIATES Dated: 29thAug, 2018 Chartered Accountants F.R.N.327348E

CA. Biswarup Kar, Proprietor (Mem. No. - 068672) ts KAR TASSCCNATES +91 9432 44 t5 44 Chartered Accountants To The Chairman Dainhat Municipality

5ub: !nternat Audit Report for the FY 2014-15of Dainhat Municipatity

Ref : Yor'r n Appoi ntm e nt Letter vide M emo No.43 g/D Mlco NT. Dated -23.0 g.201 g. Sir,

In terms of your above appointment letter vide Memo No. 43BlDMlcoNT. Dated- 23'08'2018, related Internal Audit of Dainhat Municipality, we have visited the following department your of ULB from time to time during course to verify the various records and vouch transactions thereto:

L) Aecounts Section l.l l"\V!",i Sectton :1 fstaUtistrment Section 4) R.elief Section 5) Death & Birth Section 6) Licence Section 7) Tax Section B) Received Section 9) Cash Section 10) General Section 11) Conservancy Section 12) l-iealth Sectior.r

After verifying the records as maintained by above department of your ULB we noted some discrepancies/ findings and observations and on the basis we have prepared statement on the department wise findings and submitted the same for the clarifications/replies against our audit queries from your end. We have considered your clarifications/replies against our Audit queries while preparing your this Audit Report for Dainhat Municipality for the year 2OI4-15. we hereby submit the detailed Internal Audit Report for your kind perusal and on ward necessary Action from your end.

Thanking you,

Yours faithfully,

ForB KAR& Chsrtarod Accountantl F.R.N.327348E

EISWARUP KAR, P MEMBERSHIP NO.

PO. - Ramchandra Pur, Dist. - Howrah, Bagnan - 7f 1303 year f. Current Income & Expenditure : During course of Audit we have verified the Income (Revenue Income and capital Income) and. Expenditure of the uLB toi the year 2014-lsfrom the Cash Book, Receipts & pal.rnent Accounts, Annuar'Budgel Appropriation and various Registers (of Grants and contiibutions for specific purpose), measurement book, scheme Register etc. summary of wLich beiow: is annexed

SL AMOUNT Remark NO HEAD OF INCOME (Rs) 5 A. Revenue Receiots (l+2+3) 3,92,66,416.00 1 0wn source Reven ue(x+v) 50,39,296.00 X Tax Revenue 17,24,490.00 i) Froperty tax 8,74,754.00 ii) Uther (levied tax and collected by municinalbodv) 8,49,726.00 v Non Tax Revenue 33,14,906.00 i) Fees & fines 79,27,725.00 ii) User Charges 4,56,023.00 urner iii) non-tax revenue (levied and collected by municipat body) 9,31,058.00 I otat Own Source Revenr ra fy+rr\ 50,39,286.00 2 0ther Revenue Receiots 3,62,130.00 i) I ncome from interest/investmenrc 2,42,005.00 ii) 0ther Revenue income 1,20,125.00 Iotal. of Other Revenue Receiots 3,62,130.00 3 Transfer Grant & Assiqned Revenue 3,29,65,000.00 i) State Assioned Revenrre 9,34,000.00

ti) State Ftnance Commission (SFC) Grants/DevoLution rii) 0ctroi compensation iv) Uther State Government Transfers 1,50,89,000.00 v) 13,70,000.00 vi) 0ther CentraI Government Tranqfarc 7,54,72,000.00 vii) 0thers B. CapitalReceipts 35,27,025.0A 5a[e oI MunrcrpaIFixed Assets (lf anv) -Loans (from State Govt. or Banks etc ) 5tate UapttaI (under Account Grant Statp Snhpmoc orn ) 35,27,025.00 uentra I capita t Account G rant (under centrat schemes etc.) sars ffi --ufr' 0t h r.p.lig.! B9!4pt, ,'d \ "l y' Totat of Capitat Receiots rco I,-i 35,27,O25.O0 *1 Act:.rr anrs /f;, omr xecerpts ot tn -15 (A+B) _4.1_Zp3*441_oo \\ /

- SL AMOUNT HEAD OF EXPENDITURE Nt0 (Rs) Remarks

Revenue Expenditure (A)

i) Establishment Expenditure 2,61,95,763.00 ii) 0peration and Maintenance 47,79,830.00 iii) lnterest on Loan paid durinq the year Any other revenue expenditure not covered iv) 3,68,306.00 under i), ii)& iii) TotaI Revenue Expenditure 3,13,43,999.00 Capitat Expenditune (B)

At[ developmentaI works under Centrat/State i) 1,06,36,474.00 specific schemes ii) Loan Repayments (Principat Amount) iii) 0ther CapitaI expenditure TotaI Capita t Expenditure 1,06,36,474.00 Total Expenditure of the ULB for the year 2014-,15 [A+B] 4,19,90,373.00

We must thank the designated staffs for their active co-operation to carry out the job to the extent of our satisfaction. Without their active co-operation it would not have been possible for us to complete the work.

Place: Kolkata for B. KAR & ASSOCTATES Dated: 29thAug, 20LB Chartered Accountants '' F.R.N.327348E @*s Chart ersd

CA Biswarup Kir,'E6prietor (Mem. No. - 068572)