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Guidelines on Accounting and Audit Reforms Guidelines on Accounting and Audit Reforms
Contributed by: vivek.gera_9818

Guidelines for Accounting and Audit Reforms in Urban Local Bodies

Janaagraha in collaboration with the Department of Local Self-Government, Govt of Rajasthan as per the MoU, has published Guidelines on Accounting and Audit reforms in ULBs.

On 11th May 2015, Janaagraha Centre for Citizenship & Democracy (Janaagraha) signed an MoU with the Department of Local Self-Government, Government of Rajasthan to collaborate on Accounting and Audit Reforms for all Urban Local Bodies (ULBs) in the state. As per the MoU, Janaagraha will collaborate on implementing Accounting and Audit Reforms in all ULBs of Rajasthan.

The 14th Finance Commission’s three-fold increase in total grants, totalling ` 87,144 Crores, to our cities was a major shot in the arm for India’s urbanisation agenda. An additional welcome step was to link the performance grant component (20%) to audited accounts of the last two years. ULBs in India are not self-sufficient and hugely depend on grants. Currently the ULBs have significant backlogs in producing their audited financial statements. This backlog can be cleared by empanelling Chartered Accountants, which will help to:

  • Improve transparency in accounting processes and audits
  • Facilitate access to private capital and
  • Better inform budget making

Since 2015, Janaagraha has facilitated preparation of Audit reports for all ULBs in Rajasthan and are in the process of preparing a financial sustainability road map for the ULBs in the state. These Guidelines have enabled empanelment of Chartered Accountants for all 188 ULBs in Rajasthan, of which over 150 have completed audited annual accounts for 2014-15.