WORKSHOP ON MUNICIPAL ACCOUNTING
REFORMS SWITCHOVER FROM CASH BASED TO ACCRUAL BASED ACCOUNTING
BY THE YEAR END
A one day National
Workshop on Municipal Accounting Reforms is being organized here
tomorrow jointly by the Ministry of Urban Development and Poverty
Alleviation, National Institute of Urban Affairs and USAID to
discuss the progress on implementation of accounting & budget
formats suggested by the Task Force constituted by Comptroller
& Auditor General of India. The Task Force report submitted
in December, 2002 had recommended that Urban Local Bodies should
follow uniform formats for presentation of annual financial statement
and if needed the relevant Act/rules governing municipal accounts
have to be amended to facilitate switchover from the cash based
accounting to accrual based accounting system.
Among other things
the workshop will discuss the adoption of accrual based accounting
system and constitution of state level steering committees before
31st December, 2003. It will also examine the necessity
for developing a model accounting manual and model training module
by the Department of Urban Development, Government of India in
consultation with C&AG. Computerization of budget and accounts
by 1.4.2006 will also be considered. Majority of states are yet
to computerize the offices of municipal bodies except Tamil Nadu,
Karnataka, Andhra Pradesh and Madhya Pradesh which have already
computerized it or are in advance stages of computerization.
Government has accorded
high priority to the municipal accounting reform so that municipal
bodies are able to manage their financial matters in an efficient
and effective manner and also enter into public-private partnership
and have access to the domestic capital market.
It may be noted that
in pursuance of the recommendations of the Eleventh Finance Commission
(200-01), Department of Expenditure had issued Guidelines for
the utilization of Local Bodies Grants in June, 2001. In terms
of these guidelines, the Comptroller and Auditor General of India
was to prescribe the format for preparation of budgets and for
keeping of accounts of Urban Local Bodies (ULBs).
Secretaries incharge
of Local Self Government and Directors of Local Fund Audit of
all states, representatives of C&AG, USAID, Research and Training
Institutions will participate in the workshop.
