Outside party to audit MCD’s financial statement | delhi | Hindustan Times
Today in New Delhi, India
Mar 25, 2017-Saturday
New Delhi
  • Humidity
  • Wind

Outside party to audit MCD’s financial statement

delhi Updated: Nov 23, 2011 00:21 IST
Hamari Jamatia

Embroiled in multiple allegations of graft, the Municipal Corporation of Delhi (MCD) has decided to hire professional consultant for the preparation of its annual financial statement. Also, court orders have made it mandatory for the civic body to have an outside party doing the audit so that more transparency is brought into the system.

“There are so many allegations against the civic body. If a third party audits it, everything will come out in the open. That way the civic body can introspect and come up with policies to handle financial bungling,” said a senior official of MCD.

Another senior official of the finance department of MCD said that earlier, following the Supreme Court orders, the MCD switched over its accounting system from cash-base to ‘accrual-based’ (double entry) since April 1, 2002, with the help of the Institute of Charted Accountants of India, Account Research Foundation (ICAI-ARF).

The official adds the MCD is required to maintain the line of corporate accounting as per the court order. The financial statement prepared under this system, are a pre-requisite under JNNURM.

“Under the new system, the engaged professional consultant will be paid Rs 1.85 crore for verification, certification and preparation of financial statements for the year 2008-09 to 2011-12,” said the official. Earlier, the MCD used to pay same amount to ICAI-ARF for a period of three year and also asked them to prepare complete financial analysis of data.

The consultants will provide training to the MCD staff on accrual-based double entry accounting system. “They will also provide technical inputs to standardise, finalise and authenticate the user requirements and specification of the final software product of financial management system. A complete financial analysis of all kind of data in the MCD being developed by the software company already engaged for the purpose,” he said.