The information technology (IT) audit of Pancha Tantra shows that the system did not provide for proper verification of data due to weak input controls at gram panchyat level as only a single user ID was provided for multiple users, said the Comptroller and Auditor General of India (CAG) in its report on local bodies.

The Pancha Tantra online system is an innovative ICT template of the Karnataka government’s Rural Development ministry to improve the functioning of the GPs through an automated process of accounting and budgeting of rural finances and expenditures.

‘A positive step’

CAG said the Pancha Tantra application is a positive step towards enabling GPs to capture carious data and transactions and also to generate its accounts which can also be viewed by the general public.

There were design defects, resulting in discrepancies in the generated accounts making them unreliable. In some cases, the business rules had not been mapped properly.

Also, there was no provision for capturing the budget of the gram panchyats in Pancha Tantra. Processes such as auto calculation of tax administration and ease of work were not provided in Pancha Tantra.

There were deficiencies in the data entry, including capturing of legacy data such as outstanding cess, property and water connection data, etc. Audits of the annual accounts, particularly with respect to the incomes, showed that the accounts were not being generated properly in Pancha Tantra.

It is felt that if this system is periodically reviewed and need-based changes are made, Pancha Tantra will go a long way in improving governance at the GP level.

Property tax

The collection of property tax by gram panchayats in Karnataka was ineffective as the arrears were mounting year-after-year, said CAG report.

The compliance audit, prepared by CAG on Panchayat Raj Institutions for the year 2013-14, said the test-checked gram panchyats had failed to issue the demand notices due to which property tax amounting to ₹15.45 crore could not be collected.

Property assessment list was not reliable as there were discrepancies in the number of properties and corresponding demand raised. There was loss of revenue of ₹3.06 crore in gram panchyat, Jigani of Anekal taluk due to incorrect agreement.

In four test-checked districts – Davanagere, Gadag, Kodagu and Koppal, complete share of royalty collected towards sand mining had not been transferred to the gram panchyats. This resulted in short transfer of royalty to the extent of ₹16.34 crore during the period 2011-14.

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