Annual Audit Report for the Year 2013 to 2016

{

huthorized officer of ULB-

Reform 2015-16

L. Reform no.-3 entry accounting :- Augmenting double 2. Reform Nomenclature Stone no':- 1-3 3. Reform Mile website. l\olrrtrl 4. Mi|estoneNomenc|ature:-Publicationofannualfinancialstaten{entMilestone l^ Urba'n

5. Authorityresponsibleforachievingthemi|estone:-officeofADUt.]B/

Local BodY achieved Attached 6. Status:- Achieved/Not A) Incase not achieved M a)Personresponsib|etoensureachievingthemi|estone Accounts Officer stone will be achieved b) Time line when the mile attached as Proof Attached 7. tf achieved Documents website i]snapshotofextractofanntralAuditReportpublishedo|the

I of each ULB' From The Director, l ocal Audit Haryana' Chandigarh' 'fo The Commissioner' MuniciPal CorPoration' Rohtak. r'l-I \ I t Dated:- Memo No. l.r l1

sect:.AnnualAuditReportonaccountsofMunicipalCorporation' Rohtak for the Yeat 2OL3-L4'

For Director, Local Audit Haryana' Chan"d \r Dated: - End.st. No. Copyalontherep

Rohtak L603278.OO (' HARSAC, Hissar L603278.O0 4t23051.32 Employees 4123051.32

Miscella neous 136540.00 617250.00 301.4470.00 3768260.00 Total 360L62694.67

the 8. Retrenchment: - Rs.2,53,259.00 were retrenched/deducted from the bills at

instances of audit during the year under report owing to irregular payments and wrong totals/calculation of bills. Internal check may be strengthened to avoid

excess/over payments in future. as 9. Provisionat Pavment: - Provisional payments aggregating to Rs' 4,52,734'00 detailed below were awaiting adjustment since long. Efforts may be made to obtain the approval of the authority competent for their early settlement'

Dateof Particulars of Provisional Amount

Pavment Pavments Rs. 04.01.1990 Pay of MMOH 273s.00

Dr. Jasbir Singh 1/90 04.02.1.990 Pay of MMOH Dr. Jagbir Singh 2/90 2735.00

18.04.1990 Pav of MMOH Dr. Jagbir Singh 3/90 2735.00

1.4.09.1,994 Pay of MMOH Dr.(Mrs)Suman Bishnoi 15204.0O

08.03. 1994 to 3 1..05.199]l)--_ 1.4.09.L994 Pay of Sh.P.B. Bishnoi

(22.03.1994 to 3 1.03. 1994)

29.09.L994 Pay of MMOH Dr.(Mrs.) Suman Bishnoi 24150.00 (6/94 to 8/94) 11.10.1994 Pay of MMOH Dr.( Mrs')Suman Bishnoi 80s0.00 (e/s4) 1,1.LL.1,994 Pay of MMOH Dr.( Mrs.)Suman Bishnoi 8050.00 (10194\ 3.r2.1994 Pay of MMOH 12076.00

Dr.( Mrs.)Suman Bishnoi

(11,194 to 08.12.1994)

5.10.1995 Arrear of ADA-Dr.( Mrs.)Suman Bishnoi 790.00

199s-96 Payment of Salary of Octroi

Peons/Mohrrir During the Year 373290.00

1995-96 who was aPPointed as

Octroi Mohrrir/Peons TOTAL 452734.00

10. Arrears:-

(i) The position of arrears as per demand and collection register of taxes such as rent,

.e house tax etc, outstanding as on 31.03.201,4is depicted in "Appendix'G'to this report. Effective steps may be taken to liquidate the arrear at an early date' But

accuracy of figure supplied by the corporation could not be verified in audit as oemand and collection register of House Tax were lying incomplete since 4/2002 which should be completed now and put up to audit for necessary

ch eck. (ii) lt has been noticed that the computerized house tax assessment register and a demand & collection registers were being maintained by the Council'from the

year 2OO1-02 and onward instead of maintaining registei'in prescribed Performa

namely TS-l and TS-5 as per relevant rule mentioned in chapter Vll of the Municipal Account Code, 1930. The accuracy of the computerized register

particutarly Demand & collection registers could not be proved because of the

reason that there were no prescribed monthly columns in the computerized

months could not be struck and accuracy of demand and collection register could not be checked page wis.e. The Corporation is using the unauthorized form. No form other than those prescribed in rule ibid should be used by Municipal Corporation except with the approval of Director Local Audit Haryana From: The Dire<;tot', Local Audit,I{arYana Panchkula. fo The Commissioner, Municipal CorPoration, Rohtak.

Nlemo No. Dated "'i b

Municipal corporation, Subject: - y'.nnual Audit Report on the Accounts of I{olrtak for the Yetr 2014-15.

of Municipal Enclosecl,please find the Annual Audit Report on Accounts arrd to be laid before the corporation R'htak for the year 20r4-r5 for c.nsideration as per provisions of Section Corporation fbr such action may be deemed necessary Au annotated copy showing the 169(2) of Haryana Municipal corporation Act, lgg4' through Deputy Director, (Local action taken on the report may be sent to this olfice period of three months as Audit), Municipal corporation, Rohtak within the stipulated

DePutY Director, For Director, Local Audit HarYana Panchkula. I !:. ' '.:i.f ':" -i t it: No. Dated:-

infonnation Copy alongwith a copy of the report is forwalcled to the follolving for and necessary action, please:- i' Additional Chief Secretarl' to Govt. of Haryana, Finance Department, garli' ., al Secretary to Govt. of Halyana, Urban Locai Bodies Depattment' Chandigarh. 3- Irrincipal Accountant General (Audit) Haryanh, Chandigarh. Dit'ector Urban Local Bodies Hatyana, ' - '-: ':l= '-: ' )' Cotnmissioner, Rohtak Division. Rohtak 6. DeputyT-\^^-,'-.T-r:-^^+^..puty Director, Municipall\,{.,-;^i^ol Corporation,l'anrnnrefinn Roh:iak'

.t: DePutY Director, Fol Dit'ector Local Audit Haryana Panchkula. Further, grant appearing at Sr. No. 734, t4O, L43, L47, 1"49, 1,51, 1,!t4,

158, 159, L65,767 , 169, 178 were partially sent to XEN B&R and P.H. for depc,sit

work and grant at Sr, No. 148 was fully sent to XEN PWD B&R, Utilization

certification from PWD B&R/PH for Development work duly verified by A,G,

Haryana is still awaited.

vi) The grants appearing at Sr. No. 26,35 and 42 were utilized after stipulated

period. The sanction of the competent authority for utilizing the balance

amount of grant after the period may be obtained and shown to audit.

vii) The Grants at Sr. No, 43,44 6I,62 and 65 were shown as utilized as per Grant

requisite record may be shown to audit for necessary check.

viii) out of Grants of Rs. 15,27,650/- and Rs. 170ooo/- appearing at sr. No. 8G,87 thre

entire amount of Grant has.shown spent against the vouchers passed before the

Grant was received. Hence, the expenditure against the grants could not be

admitted in audit. The approval of the competent authority to regularize the

amount spent/purchases made before the grant received may be obtained now and shown to audit.

not maintained by the corporation for the last severalyears, As such position of

revenue earning scheme grants and revenue earned could not be verifieo,

However, no grant under revenue earning scheme was received during the period under report.

6. Loan: a) No loan was received by the corporation during the period under report. b) The position of loans received prior to this and the payment along with balances repayable is depicted in Appendix-E to this report. The amount of repayment

due on 31.03.15 was Rs. 12,43,68,500 on account of principal and interest due thereon.

(i) The Loans appearing at Sr. No.1 to 180 e*cept Sr. No.7, 12, !5, !8,29,35, 130 to

135 and 180 werc deposited with the P.W.D. (Public tlealth Department), The

utilization certificates of loans could not be verified in audi'. due to non-receipt

of statement of expenditure duly verified by the Accountant General Haryana.

Public Health Deptt, may be persuaded to do the needful at the earliest and

A;ri:cr. icer compliance shown to audit.

(ii) The Loan at 5r. No. 7, !2, !5,!8,29,35,130 to 135 and 180 were utilized for the

purpose for which these were sanctioned.

(iii) The installments of Principal as well as interest due were not being remitted to the quarter concerned for the last 19 years, causing penal interest to corporation. The repayment of loan is the first charge on Corporation fund under section 75 of the Haryana Municipal Corpotation Act, 1994 and should have been paid promptly on priority basis. The up to date installments of

principal and interest due thereon may be remitted immediately and

responsibility for avoidable payment of penal interest may be fixed. An amount

of Rs. 3134984/- had been repaid to Ll.C, During the year L99L-92, but details thereof were not forth coming. The same may be obtained now and shown to

audit.

(iv) No loan under revenue earning scheme was received during the period under

report.

7. Temporarv Advances:-

(i) Rs.46,74,62,515.67 as detailed below on account of temporary advances were

outstanding for adjustment against various department officers/officials as on

31.3.2015. Out of which temporary advances to tune of Rs. 57,OI,719/- as

detailed in Appendix-F to this report were outstanding against the official who either had been transferred to other committee or had left the service since long. But no effective steps have been taken to get these advances adjusted. The unspent balance of advances should be got refunded/deposited in corporation fund inrmediately and action as per instruction contained in local

Government Deptt. Memo no.2O/317-78SClll dated 03.11.1979 may be taken

to get the outstanding advances aCjusted. The adjustnrent accounts of advances outstanding against the P.W.D. (Public Health) and (B &R) and other departments may be expedited expenditure duly verified by the Accountant

General Haryana without further delay. The non-adjustment of huge amount of

advances for such a long period should be looked into and the concrete and effective steps be taken to ensure their early adjustmerrt. Huge amount of outstanding advances leads to tantamount to nrisappropriation/embezzlement

of Municipal fund,

'",,. 'is

ation From: ...: . :- , fhe Director. LocalAudit. Harl,ana panchkula, To: ,/_- I he Cornrnissioner. Municipal Corporation, Rohtak.

! Memo No. \-, ".,?.il t . : lj I Dated - i-.'-'--

Subject: - Annual Audit Report on the Accounts--qr"r ofvr Municiparrvrulrrullral corporationLorporation, Rohtak for the year 2015_16.

1' chief Secretary to Govt. of Haryana, Finance Department.

,.) to Govt' of Haryana, urba' ffffil;irs.ecretarv Local Bodies Deparrment. ) Principai Ac countan t General (Aud it) Hary ana,chandi_earh. T/1 Director Urban Local Bodies Harvana, panchkula, _\. Commissioner, Rohtak Division, Rohtak o" Depury tr)irector. Municipal corporation. Rohtak.

D.p ecror. For Director Local Audit Harl.ana panchkula. Part-II

:TheaccountsofMunicipalCorporationduringtheperiod under report continued to .be audited under pfe-audit system in the Resident Audit Scheme which was headed by Sh' P. K. Sharma, Deputy

Directr:r from O 1'.O4.2O15 to 31'03'2016' Sh'ShekharVidlrarthi,I'A.S'remainedCommissionerofthe corporation w.e.f. 0I.o4.2O15 to 30.05.2015, Sh. D. K' Behera, I'A'S' from 11'03'2016 to o1.06.2015 to 10.03.2016 and sh. Atul Kumar, I'A.S' from 31.03.2016 remained. commissioner of the corpoiation. '2Az- detailed in Appendix'B'to this v, Record not put up: - The record as report was again not put up m aud.it. 'lhis was irregular and uncalled for' The same may be traced out/arranged and produced to audit besides takingsuitableactionagainsttheofficialatfault'

20L4-20L5 20L5-2U^L6 Rs. Rs.

Opening Balance 1,09,00,04,075 1,45,83,60,399 Income 95,68,13,086 89,68,81,612 Total 2,O4,68,L7,16r 2,35,52,+',2,0 r r Expenditure 58,84,56,762 51,42,55,900 Closing Balance r,45,83,60,399 r,84,09,86,rr I

{i) Decrease in income and expenditure during the year 2014-15 as compared to the previous yea-r was due to receipt of less grant and execution of less development works, respei:tively' the year 2015-16 ( ii) The figure of income Rs. 89.68,8I,61.21- for inciuded receipt of grants to the tune of Rs. 34.26,99,0001- However, after deduction of the amount of grants; the net income of the corporation from its own sources was Rs. 55,41 ,82,6721- T]he closing baianceofRs.I,84,09,86,l11/-ason3l'3'2016comprisedthe unspent ba-lances of gralt. 1

(iii) The investment in shape of FDR as detailed below were made during the year 201S-16 by Municipal Corporation, Rohtak.

Sr i Bank FDR No. Amt. o Date of Rate of Date of No j Amt. on t^** Investment Investment Maturity Interest Maturity

I oBc. 1 168354 JUUUUUO 30. 06 .20 1 5 8.75% 30.06.2016 5420724 MDN 1000010 SchooI 2 -do- I 168354 sUUUOOO 30.06.2015 B.l50k 30.06.2016 5420124 1000041 3 -uu- 1 168354 JUUUUOO 30.06.2015 8.15% 30.06.2016 5420i24 i0000s8

J^ + -LIU- 1 168303 7791481 30.06.201s I a. tsz 30.06.20I 6 8446I59 r03r524

5 -do- 1 168303 5 1943 1 30. ub .20 1 5 8.IsD/o 30.06.2016 JOJU /t) 103 15 17

o l-do 1 168303 7000000 10.09.2015 8.00% o.o9.2016 757702s i \032804 I oo r 168303 s9866 1 9 10.09.201s 8.OOo/o ro.09.201,6 6+80109 i i0328 1 1

I t cto 1 168303 12404184 10.10.2015 7.25o/o ro .t o.2016 733282s4 j rol4275 Y -do- 1 168303 c+JJZO / I 29.72.2015 7.25yo 29.r2.2016 IO2BB76

10 -do- 1 168303 54552679 29.12.20r5 7.250h 29 12.2016 sB616sB2 j 1 028890

I l^ li -uu- 1 168303 43276489 29.i2.20r5 7.25% 29.12.2016 46504372 1028883 t2 oBc, 0843303 9UUUOOO 12.O9.2075 8.00% 12.09.2016 9741889 j Civil 1067350 Road 13 -do- 0843303 9000000 2.09.20r5 B.OO% 12.o9,2016 974r889 106739 1 + J^ 3843303 7926039 12.o9.20]_5 8.OO% 12.O9.2076 8579400 106742r 15 PNB. 721sO)P es00000 15.01.2016 7.5O7o I 1s.01.2017 | tozsnx Pehrar,var u000000 I

15 I6 -do- 721500P 9s00000 1s.01.2016 7.50% u000000 1023279r 24 I7 7C 1

1a 72r500P 9s00000 15.01.2016 '/.50"h 15.01.2017 u000000 10232791 42 79 -do- 72150AP 9500000 15.01.2016 7 .50"/' 15.01.20L7 u000000 10232791 51 20 727500P 9500000 -r5.u -r.2016 7.50% 15.oL20I7 u000000 1023279r 60 27 -do- 721500P 9500000 15.01.2016 7.50% 15.0r.2017 u000000 1023279r 79 22 72r500P 9500000 15.01.2016 7.500 15.01.2017 u000000 10232791 88 23 do- 72\500P i 9500000 15.01.2016 7.50.0,,0 15.or.2077 u000000 10232791 |

e7 I -uu-s^ T2rsooP I SSOOOOO 15.01.2016 7.50oh | 1s.01.2017 uoooool ro241201 I I

01 I I 727500P 6623050 15.01.2016 7.5oo/o t,5.o1 .2017 I 7138322 u00000 1 10 26 PNB, 484800c 25314848 01.11.2015 7.OOok 01.11.2016 27 133948 Vikas R0000c0 I Bh an 25

I 27 HDFC, 5030006 54654162 03. 10.2015 7.650, 03.10.2016 s8959666 HUDA, 6272883 Rohtak

28 -do- 5030006 54654162 11.10.2015 7.65ot I 1.10.2016 5895940 1 6273107 29 J^ 5030006 40553388 11.10.2015 7,659 11.10.2016 43747874 5760852 3U Bank of 2140030 6251151 12.o3.20:-6 7.300/, 12.03.2017 6720r30 Baroda 001_7206

The above mentioned FDR,s were renewed duri the year 2015-16 rith the same bank without obtaining the competitive te of interest frorl diifferent banks r,vhich was irregular and the same m looked into. (iv) Out of expenditure of Rs. 47 ,43,I5,9OO / - (excluding grant, a sum of Rs. 32,57,96,695f _ was spent on establishment which forms 68.690 of totai expenditure. The breakup of which was as under:_

Nature lsr of Establishment Total Percentage Expenditure sanrtatron I 20,69,78,479 43.64 % 2 worKs/ tlnglneenng 7,27,44,987 15.34 o/o

3 Revenue collection 7.53 % Establishment 72,79,056

4. General/ Miscellaneou s 8.tB V; 3,87,95,774 establishment- Total 32,57,96,695 68.69y"

(vl The percentage expenditure on establishment especially on sanitation was on higher side which needs to be restructuring/right sizing the establishment structure. {vi) The municipal corporation had to discharge liabilities to the tune of Rs' l4'51,85,726r- of repayment of Govt./LIC loan, Director uLB share and Audit Fee as on 31 .og.2016 as detailed below.

Sr. No. Nature of Liabilitv Anrount Due up to 3/ L6 Repayment of Loans I7,78,74,750.21 z. __ I lJtrector, ULB office Share 51,91,321 I i Arrear L,52,67 ,252 Audit Fee 49,62,4O3

Total 14,31,95,726.27

)