Tamil Nadu Urban Infrastructure Financial Services ... - Municipal
Tamil Nadu Urban Infrastructure Financial Services ... - Municipal
Tamil Nadu Urban Infrastructure Financial Services ... - Municipal
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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