No internal audit in Palike for 47 years

 Addressing a press conference, Shivakumar said the situation warrants a revamp in the Palike, since it had never bothered to follow the basic norm of auditing its books of accounts in the last 47 years. He added that internal audit is essential as per the Karnataka Municipal Council Act 1976, but the Palike had chosen to ignore it.

“The Palike even lacks the bank reconciliation statement in the absence of internal audit reports. This makes people suspicious about the accounts section of the Palike,” he said.
The most shocking fact was that the Palike not only lacks balance-sheets, but also the fund-based accounting system.

He demanded an integrated finance management mechanism to put the finances in order. He also hinted that auditing can be outsourced, which is presently the case in Tumkur and a few municipal bodies in the State.

Now that the Palike is reeling under financial crunch, it has shifted the maintenance of many of its buildings and public places to public-private partnerships.

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