One Day orientation training to New Municipal Commissioners 19.07.2011.

1. Commissioner and Director of Municipal Administration, Govt. of Andhra Pradesh. WEL COME to One Day orientation training to New Municipal Commissioners 19.07.2011. Dr. Satyanarayana. N., RDMA, Hyderabad, & JD i/c, 13th FC Cell, O/o C&DMA, Andhra Pradesh

2. XIII FC Recommendations – Major issues referred • The recommendations of the Thirteenth Finance Commission are of far reaching significance for strengthening local governance in India. • The 13th FC referred to • the growing urban population, • shrinking fiscal space, • increasing expenditure of ULBs, • Below optimal level civic service delivery, • dismal state of fire services, • delays in transfer of Finance Commission grants to local bodies, • Lack of maintenance of accounts, • LBs ‘slack attitude’ to get their accounts audited etc..

3. XIII Finance Commission - Allocations • 13th FC substantially increased share of the local bodies - both urban and rural. Country: • Allocated Rs. 87,519 crs –from Rs.25,000crs of 12FC • For ULBs Rs. 23,111 crs- from Rs.5,000 crs of 12FC AP: Rural: Rs. 5226.55 Crs., Urban:Rs. 1918.85 Crs. from Rs. 375 Crs. in 12th FC.

4. Allocations of XIII FC – Reforms/Conditions to access • Grants divided -General basic grants and General Performance Grants • Performance Grants can be accessed by only states complied 9 conditions • States are given one year 2010-11 to initiate & complete legislative process and put in place institutional arrangement to comply with the conditions. • Performance grant is available from FY 2011-12 • Entitlement is only prospectively after complying with conditions and not retrospectively. • General Grant (1254.60) & Performance (664.25) for ULBs for 5 yrs (2010-11 to 2014-15) allocated for AP..

5. Year wise Allocations of XIII FC to ULBs • The grants divided into General Grants and Performance grants The year wise break up is as follows: Rs. In Crores • Basic Grants Rs. 1254.60 Crs will be released on furnishing of UCs for last releases • Performance Grants Rs. 664.25 Crs on fulfillment of 9 specified conditions • by 31st March of FY 2010-11 • The 9 conditions stipulated by 13th FC can be considered as reforms to improve • financial status as well as governance of ULBs. • Para 10.161 of Report – Performance grants can be accessed if 9 conditions are • complied by 31st March, of FY 2010-11.

6. Forfeiture of Performance Grants – 13th FC • Performance grant is available from FY 2011-12 • Entitlement is only prospective after complying with conditions • Performance Grant of states failing to comply with conditions would be forfeited. • Forfeited amount would be distributed in the following manner: • 50% of amount to all, irrespective of compliance • Remaining 50%, amount among the states which complied with conditions.

7. Reforms/Conditions to access performance grants The nine conditions stipulated by 13th FC are: • Ist – a) introduction of a supplement to budget documents on ULBs; and • b) Accrual Based Accounting in ULBs • 2nd- putting in place audit system in all local bodies; • 3rd-establishment of an independent Local Body Ombudsmen System; • 4th- electronic transfer of grants to ULBs in 5 days; • 5th-prescribing qualifications to SFC members through an Act; • 6th -empowering the ULBs to levy property tax without hindrance; • 7th-constitution of State Property Tax Board; • 8th-putting in place benchmarks for delivery of essential civic services; and • 9th-putting in place Fire-hazard Response and Mitigation Plan.

8. Compliance Details of Nine Conditions stipulated by XIII Finance Commission in ULBs of AP.

9. Compliance Details of Nine Conditions stipulated by XIII Finance Commission in ULBs of AP.

10. Constitution of MAARC & MAACC (G.O. Ms. No. 270, MA&UD (R),Dt. 15.07.11) • A Municipal Accounts & Audit Reforms Cell (MAARC) is constituted to function in the O/o DMA, AP Hyderabad , initially with the following Expertise and Support staff: (a) 3 Senior Auditors/ Technicians (b) 3 Data Entry Operators (c) 1 Supervising Officer in the cadre of Audit officer/Asst Audit officer. • A Municipal Accounts & Audit Coordination Committee (MAACC) constituted with the following officers/functionaries, which will meet 2nd Monday (next day, if it happens to be holiday) of every month under chairmanship of DMA: a) Project Director, APMDP , b. Director, Local Fund Audit , c. Addl. Director, O/o.DMA, d. Assistant Secretary , Finance(TFR) – Member, UGE, APUFIDC. f. RDMA (Hyd)/Joint Director, (XIII FC), O/o DMA, g. Joint Director (ULB Accounts) , O/o DMA, h. Deputy. Director, State Audit Department, i. Domain Expert from M/s. CGG – Members and j. MIS Expert, APUFIDC/XIII FC Cell, O/o.C&DM – Member Convenor. The Committee will review the progress of (A) Accounts and Audit of ULBs ( B) Functioning of Cell (MAARC) including issue of guidelines necessary for the Cell and consider & augment the support and technical staff in the Cell as per future requirements (C) Strengthening& Institutionalization of process initiated in this front and of all Accounting & Auditing Reforms taken up in AP (D) other related issues (E) any other issue included by the DMA.

11. DEABAS – Background – merits & demerits Demerits of present cash based accounting: • Only receipts actually received are reflected in accounts and receivables not known in accounts. • Only payments actually made are reflected in accounts and not payables . • Represents only surplus / deficit in cash flow. • Assets and liabilities are not reflected, and • consequently, financial strength not reflected.

12. DEABAS – Background – merits & demerits Benefits of Accrual Based Accounting System: • Revenue is recognised as it is earned and that ‘income’ constitutes both revenue received and receivable. • Expenditure is recognised as and when the ‘liability’ for payment arises and thus it constitutes both amount paid and payable • Expenses are matched with the income earned in the year • A distinct difference is maintained between items of ordinary nature and capital nature • Cost which are not charged are carried forward and kept under constant review • Surplus or deficit as shown at the year-end represents the correct financial position. • Presents true picture of financial position of the municipality and helps in better financial management • Assists in effective follow-up of receivables and payables. • Facilitates the credit rating organisations to appraise the financial position of municipality.

13. Implementation of DEABAS – Grouping of ULBs.

14. Implementation of DEABAS – Grouping of ULBs.

15. Implementation of DEABAS – Grouping of ULBs.

16. Implementation of DEABAS – Grouping of ULBs.

17. Implementation of DEABAS – Grouping of ULBs.

18. Implementation of DEABAS – Grouping of ULBs.

26. Condition 8 : Standards for service delivery • In the form of a declaration of a minimum level of service for the indicators as per SLB Handbook of MoUD. • Level may be different for different municipalities. • Commitments through a consultative process • Notification shall be published in the State Govt Gazette.

27. Benchmarks : Water Supply

28. Benchmarks : Sewerage

29. Benchmarks : Solid Waste Management

30. Benchmarks : Storm Water Drainage

32. ROLE OF ULBs • All 13th FC information is posted and available in our website: www.cdma.gov.in under 13th Finance Commission Link. Pl see for any details and also on sms alert • Up dation of your action Plans/ADPs, progress of works including tendering shall be done online in addition to sending hard copy. • User ID and Pass word is your ULB Name with First Letter as Capital • Follow the guidelines prescribed in G.O. Rt.No. 532, MA&UD (R),Dt. 14.05.2010 for preparation and formulation ADPs for every year including perspective plan for 13th FC period i.e., upto 2014-15. • ADPs for next FY shall be submitted by end of March of previous FY..

33. ROLE OF ULBscontd… • Admissable Components for utilising 13th FC Funds are: (G.O. Rt..No. 532, MA&UD (R), Dt. 14.05.2010 & G.O.Rt.No 1474 MA & UD Dept ,dt 24.12.2010 ) • 1. Integrated solid waste management under PPP mode excluding purchase of equipment for collection and transport of garbage since the said equipment has been purchased with 12th Finance Commission grants. • 2. Town-wide sullage drain projects as per city sanitation plan covering • (1) Construction and interception of sullage outfall drains and treatment of • sullage (2) Establishment of STPs preferably on PPP mode • 3. Service level Benchmarking (SLB) • 4. DEABAS System - for improvement of Accrual based Accounting system in all ULBs. • 5. Gaps in water supply lines • 6. Replacement of old pump sets • 7. Improvement of drinking water supply • 8. In case of ULBs having comprehensive sewerage schemes, gaps in sewer schemes. • 9. Street Lighting. (note more than 10% of allocation) • 10. In respect of million plus cities as per 2001 census, preparation of fire hazard response and mitigation plan and its implementation

34. ROLE OF ULBscontd… SANCTION OF ADPs/ACTION PLANS: As per Para 8.1 & 8.2 of the guidelines of G.O. Rt.No. 532, MA&UD (R),Dt. 14.05.2010 : A Sanctioning and Monitoring Committee (SMC) under Chairmanship of Secretary to Govt.. will accord approval for Annual Development Plans submitted by ULBs. The CDMA, assisted by 13th FC Cell, will scrutinize the Annual Development Plans submitted by ULBs through Regional Committee concerned and place them before the Committee. Regional Level Committees constituted for all ULBs(except GHMC, GVMC, VMC) , (as per circular Roc .No. CDMA/13FC/ADP/2010 , Dt. 19 /11/11),headed by RDMA with the following as members: SE PHED of the respective region. RDTP of the respective region. Any 2 to 3 Senior Municipal Commissioners of the Region nominated by the RDMA. –will scruitinise on prescribed aspects of proposals and submit to CDMA.

35. ROLE OF ULBs contd… • Looking at SLB targets against 28 parameters of water supply, Sanitation and Sewerage, SWM and Storm water drains and achieving the targets. • APMARP (AP Municipal Accounting Reform Project) - DEABAS implementation. • Regular meetings of town level task force on APMARP and review on the following: • SLB achievement progress. • Progress of APMARP • approved works execution • Online updation and submitting work progress reports quarterly • Ensuring Quality of works.

36. 12th Finance Commission Grants to ULBs 12th Finance Grant • The 12th FC recommended allocation of Rs 374.00 crores for 2005-10. • The GoAP decided to utilize entire amount for implementation of SWM • Releases under TFC Grant – Rs. 374.58 Cr. • 2006-07 .. Rs.112.78 Cr. • 2007-08 .. Rs. 37.40 Cr. • 2008-09 .. Rs.149.60 Cr. • 2009-10 .. Rs. 74.80 Cr.

37. 12th Finance Grant Items sanctioned

38. 12th Finance Grant Items sanctioned Ulb details

39. 12th Finance Grant • Status of availability of land for dump sites/ compost sites in the ULBs. • No. of ULBs having sufficient land : 21 • (More than 15 acres) • No. of ULBs having land, but insufficient: 94 • (Below 10 acres) • No. of ULBs having no land : 8 • acquisition of land is under process in following 8 ULBs where there is no land:

40. STATUS OF NO LAND ULBs Acquisition of land is under process in following 8 ULBs where there is no land

42. 12th Finance Commission Grants to ULBs 12th Finance Grant • Govt. approved the comprehensive action plan & accorded permission to utilize an amount of Rs.1108.66 lakhs for the following 4 activities:  • IEC and Awareness activities Rs.467.00 lakhs. • Engagement of Environmental Engineers Rs.303.27 lakhs. • Training and Capacity Building Rs.164.79 lakhs. • Management Information System (MIS) Rs.173.60 lakhs. • Three activities were entrusted to the following agencies • IEC and Awareness programme entrusted to MEPMA • Training and Capacity Building activities entrusted to EPTRI • Management and Information System through E-SUVIDHA

44. MUNICIPAL ELECTIONS -GENERAL • 4th ordinary elections are due in 99 Mplts and 12 Mpl Corps ( Excluding - Scheduled Area (3) Mplts, - term existing in (5) Mplts & (3) Mpl Corps, -Court case pending in RajamMplty, Tirupati Mpl Corp).

45. AUTHORITIESFOR CONDUCT OF ELECTIONS • DMA appointed as Election Authority to exercise powers and functions in connection with conduct of Elections to Mpltys and Mpl Corps ( except GHMC) by the State Election Commission. • All the Commissioners of Mpl Corps (except GHMC) appointed as Additional Election Authorities by the State Election Commission, to exercise such powers and to perform such functions as may be assigned by the Election Authority/ District Election Authority and to make necessary Administrative arrangements relating to conduct of Elections, by the State Election Commission . • All the Municipal Commissioners of Municipalities appointed as Election Officers to perform the functions and discharge the duties relating to conduct of ordinary elections by the Election Authority & DMA. • All the District Election Authorities and District Collectors (except Hyderabad) were authorized to appoint Additional Election Officers and Assistant Election Officers to Municipalities under their jurisdiction as many number as required, by the Election Authority. • All the RDOs / Sub Collectors appointed as Deputy District Election Authorities to perform the functions and duties to be assigned by the District Election Authority in case of Mpltsby the State Election Commission.

46. PRELIMINARY ISSUES • Fixing the strength of Mplts and Mpl Corps has been done as per the Rules issued there under: • Delimitation of wards: Re-division of Mplts / Mpl Corp into ward has been initiated in 12 Mplts and 2 Mpl Corps where ever upgraded and newly constituted as per the Rules issued thereon, the following is the status: • Proposals sent to Government: 1.Ramagundam Municipal Corporation. 2. Gadwal 3.Siricilla 4.Jaggaiahpet 5.Peddapuram 6.Korutla 7.Jangaon 8.Sattenapalli 9.Piduguralla and 10.Tandur. • Proposals yet to be received 1.Kadapa Mpl Corp 2.Nandyal and 3.Tadepalle Mplts.

47. IDENTIFICATON OF BC VOTERS • For the purpose of reservation of seats / Offices of Chairpersons and Mayors in Municipalities and Mpl Corps to BCs among others, identification of BC Voters has been completed in two phases (1st phase 85 Mplts + 10 Mpl Corp & 2nd phase 20 Mplts + 6 Mpl Corp) as per the programme given by the Government.

48. RESERVATION OF SEATS ( WARDS) IN Municipalities/Nagar Panchayanths. • As per G.O.Ms.No.37 MA Dt.3.2.1995, the C&DMA will fix the no of seats to be reserved for STs, SCs, BCs and women in case of Municipalities and Nagarpanchayats. • After that, the District Collectors concerned as per the delegation made in G.O.Ms.No.38 MA Dt.3.2.1995, will specify the wards to STs, SCs, BCs and Women as per the guidelines issued in G.O.Ms.No.35 MA Dt.3.2.1995. • As per the existing provisions of the APM Act, 1965 and Rules issued there under reservation of seats (wards) shall be done by rotation for every ordinary election. Accordingly the present ensuring elections are the second cycle after delimitation of Mplts into wards taken up during the year-2005except those Mplts Upgraded recently for which will be the first cycle, since delimitation is taking place. • Procedure for specifying seats to STs, SCs, BCs and Women based on the fixation of seats by the C&DMA. Detailed guidelines are indicated in Rule 6 to 12 of the AP Municipalities (Reservation of seats in Municipal Councils and Nagarpanchayats) Rules, 1995 issued in G.O.Ms.no.35 MA Dt.3.2.1995 as amended time to time.

49. RESERVATION OF SEATS (WARDS) IN Municipal Corporations. • As per G.O.Ms.No.44 MA Dt.3.2.1995, Government will fix the no of seats to be reserved for STs, SCs, BCs and women in case of Mpl Corps by issuing a notification in the AP Gazette. • After that, the Commissioner, Mpl Corp concerned will submit draft proposals specifying the seats (wards) to various categories STs, SCs, BCs and Women as per the guidelines issued in G.O.Ms.No.44 MA Dt.3.2.1995 to the Government through DMA Office. • Thereupon, Government will specify the wards to STs, SCs, BCs and Women in the AP Gazette.

50. THE FOLLOWING ARE THE STEPS TO BE TAKEN FOR SPECIFICATION OF WARDS. I. Information on the following should be kept ready: Ward wise Scheduled Castes Population and Total Population Ward wise Scheduled Tribes Population and Total Population Ward wise Backward Classvoters and Total voters. Ward wise Women Population and Total Population. The entire process is divided into 5 STEPS which are as follows: