The Urban Local Bodies in Karnataka were maintaining their accounts under single entry cash based system. This was an incomplete accounting system wherein ULBs were not aware of what they own and what they owe. There were no financial reports generated by the accounting system for fund management, resource mobilizations and budgetary control. So, Double Entry Accrual Based Accounting System is being implemented including Computerisation of Accounts in ULBs. In this direction, new Accounting rules were framed called “Karnataka Municipalities Accounting & Budgeting Rules, 2006.”
eGov Financial application is designed to support accounting procedures as per KMABR 2006.
Objectives:
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To review the existing accounting rules and revise the same.
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To build the capacity of accounting staff of Urban Local Bodies.
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To provide professional assistance to the Urban Local Bodies for switch over from single entry cash based accounting system to double entry accrual based accounting system.
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To maintain the accounts of assets, liabilities, incomes & expenses of ULBs.
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To generate financial reports for disclosing true and fair view of financial performance and status of ULBs.
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To bring more transparency into the accounting system by publishing the annual accounts of ULBs.
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To ensure proper fund management with citizen participation in budgeting of annual receipts and payments.
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To promote better assets planning and maintenance practices by preparing inventory of assets, valuation of assets and managing them for higher returns.
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To generate additional revenues for ULBs through proper resource management backed up by strong financial records.
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To make ULBs self sustainable in the long run.
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To provide better citizen services with improved finances.
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