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Process and high yield of interest through fund management of unused money in ULBs. Cost
saving in expenses is found in the range of Rs 1-20 crore per ULB, depending on the
o implement the willingness of administration and government, the authority had
Tdeveloped a model for pre-audit and internal audit. Subsequently, the audit team size and population of the ULB. There is saving of around Rs. 120-150 crore directly &
was authorized to be an integral part of ULBs and had been provided with the requisite indirectly by implementing and following the audit procedures. Only in Raipur cluster
mandate from administration, which led to adaptability of the audit. For the project, all the (34 ULBs), audit team had saved near about Rs. 95 crore through proper governance,
168 ULBs were divided into 5 clusters namely Raipur, Bilaspur, Ambikapur, Bastar and Durg capacity building of employees, monetary regularization, documentation and
for successful implementation of the required services. Through tendering process, 5 CA database regularization.
firms were selected to mobilize the audit team and execute the services, which consisted
of approximately 50 CAs and 100 support staff. In all 168 ULBs, Pre/Internal Audit has been iv. Through audit parameter, ranking of ULBs are obtained for identifying the ULB’s
implemented from November 2015. strengths and weaknesses.

v. Had secured 4th, 3rd and 1st ranks, received incentive of Rs. 13 crore, Rs.25 crore.
Preparation of bills and Rs. 14 crore respectively, by compliance of AMRUT city reforms from Central
& vouchers by the Submission of bills to Bills to be checked by
Accountant of the ULB/ Auditor for Pre Audit the Auditor Government in last 3 years.
parallel compliance of Sustainability
internal audit
egarding financial sustainability, surplus cost recovery has been done via implementing
Rthis process. Since, there is no further cost to be incurred in future for the project, it can
be stated that the project is financially sustainable. During the first 2 years of implementing
Either the bills is In case of rejection / objection, the matter is to be
approved/rejected/ raised in the form of Red Flag Issue this initiative, the State Government could save more than Rs. 100 crore with a meager
passed with objection investment of Rs.9 crore. For institutional sustainability, it aids in decision making of the
by the Auditor If approved, payment for the same to be made. Government by finding irregularities and non-compliance, thus helps in assigning clear
roles and duties to various stakeholders.
Transferability
Process
t can be replicated all over the nation from local to national level in different departments
Results achieved Iand organizations. Government of Bihar adopted similar internal audit process based on
i. In Raipur cluster, approximately Rs. 16.40 Cr. Fixed Deposit Receipt (FDR) along with the same pattern of implementation done by government of Chhattisgarh.
the balance were identified and credited back into the bank accounts of ULBs which Lesson learned
were not appearing in the record of the ULBs.
ii. Compliance of work has been started through effective check on payment against egarding learning from the project, it is to mention that the political and administrative
budget allocation of work and without Pre-audit, no payment is credited to any Rwills are strongly required to implement internal audit work. Regular monitoring and
contractor, employee etc. review committee is a must and for this, auditor/PMC should be hired. Online audit is

iii. Areas for self-sustainability have been evolved by the ULBs through increasing recommended for better implementation and record keeping. In addition to this two level
revenue sources with audit initiatives and advice, reduction in unnecessary expenses audit both pre-work order and post work order is recommended to avoid financial issues.

State Urban Development Agency, Chhattisgarh
State Urban Development Agency (SUDA) is a State level nodal agency of Government of Chhattisgarh for various central and state sponsored schemes with mandate of sustainable and planned
growth of cities and towns with adequate infrastructure, amenities and services provided to the citizens through the Urban Local Bodies (ULBs). SUDA is involved in ensuring proficient management
and delivery of civic services like provision of affordable housing, safe drinking water, sanitation including solid waste management, storm water drainage, sewerage, roads, public transport and
creation of livelihood opportunities by accelerating economic growth of cities/towns and building capacity of all the stake holders of urban development sector.

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