22.07.2013 Views

Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Engineering and project development – A number of new grant and loan schemes (both<br />

central and state) including the UIDSSMT are available for ULBs to tap into for meeting<br />

their asset creation requirements. However, there seems to be very little understanding of the<br />

scope and potential of using these schemes for implementing local level projects. GoTN and<br />

CMA should conduct periodic training and awareness programs for senior management<br />

personnel including Commissioners, Managers and Engineering staff. This would enable<br />

them work towards developing projects that can leverage such schemes. Agencies like<br />

TNUIFSL and TUFIDCO should also take the lead in organising such awareness programs.<br />

Accounting and Finance – Though accrual accounting has been implemented in Krish- M<br />

and is under operation for more than 5 years. Computerised <strong>Financial</strong> and Administrative<br />

systems are in place or are in various stage of implementation/up gradation. There is a<br />

therefore a need for continued emphasis on training to bring the accounting and finance staff<br />

up to speed on these developments.<br />

Use of CAD/GIS applications in Town Planning/Engineering – CMA and GoTN should<br />

initiate a state-wide program to train Town planning and engineering staff on CAD and GIS<br />

applications.<br />

5. Build on GoTN’s pioneering position in implementing accrual accounting by launching a<br />

drive improve the timeliness and quality of information dissemination - While all ULBs in<br />

<strong>Tamil</strong> <strong>Nadu</strong> have implemented a double entry accounting system, there is scope for improvement<br />

in the quality of accounting in the areas of classification and recording, consolidation and<br />

dissemination of information. Several ULBs have redundant systems involving manual and<br />

computerised book keeping and errors often creep into MIS. Often, the DCB statements and<br />

accounting statements are not reconciled. The recent initiative of the setting up of the Debt<br />

Monitoring Cell at the CMA level is a positive step in getting the loan records at the ULB right. It<br />

still takes significantly long time for accounts to be closed and this need to be remedied. GoTN<br />

and CMA should continue its thrust in this area to ensure that the real advantages of accrual<br />

accounting is realised. In this regard, we recommend that<br />

CMA, GoTN should continue its focus on technical assistance to ULBs to improve their<br />

accounting systems and practices. Proper training should be given to the staff on the<br />

concepts of double entry book keeping. Apart from the municipal staff, the LFA should also<br />

be given training in auditing the new computerised systems being implemented. Currently<br />

there is a dual system in operation and this seems to be creating significant reconciliation<br />

issues.<br />

CMA, GoTN should insist and implement closing of accounts and audit of the same<br />

within a fixed time period subsequent to the completion of financial year.<br />

TNUDF could consider a grading system to categorise ULBs on the basis of quality of<br />

accounting and reporting practices.<br />

6. Create technical standards with specific applicability to municipal projects construction and<br />

execution. These are particularly required in 2 areas:<br />

Integrated road asset creation and management – The quality of road construction<br />

particularly in urban areas is inconsistent ranging from well-laid roads in select areas to<br />

CCP cum BP - Krishnagiri <strong>Municipal</strong>ity 76

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!