Governance

1. Institutional Analysis and
Governance
Critical Analysis of Institutions in Ahmedabad Metropolitan Region (AMR)
AMC Finance
Presented By:
Aditi Kaviwala
En no.-SPA/NS/RP/1543
Third Semester
Department of Regional Planning
School of Planning and Architecture, New Delhi

2. Introduction:
 The Amdavad Municipal Corporation (AMC) accounting system was designed to meet the legislative
requirements of The Bombay Provincial Municipal Corporation Act (BPMC Act), 1949.
 The system is based on accounting principles and AMC's techniques for applying those principles in the
creation and presentation of financial statements.

3. Role of the institutions in the Regional
Governance :
 In 1998, 2002, 2004, and 2005, Ahmedabad Municipal Corporation issued Municipal Bonds for
the first time in India.
 The Ministry of Urban Development (GOI) has developed a Municipal Accounting Manual to
harmonise the National Level viewpoints on municipal finance and financial management with
those of the State Government.
 The handbook covers accounting principles, methods, and standards to enable proper and
timely documentation of municipal transactions in order to create accurate and relevant
financial reports.

4. Roles and Responsibilities of individual
institutions :
 The Finance department has four key branches:
 Budget Department:
 The budget department is primarily responsible for preparing the yearly budget for Amdavad Municipal Corporation in the months of
December and January each year.
 At the moment, the Corporation budget is generated based on the works requested and recommended by the ward committee.
 The budget branch is also in charge of budget booking, budget opinion, and cash-flow release.
 Treasury:
 All payments to vendors and suppliers are made through ECS (Electronic Clearing System) and RTGS (Real-Time Gross Settlement)
(Real Time Growth System).
 AMC has introduced online computerized billing system.
 General Department :
 This section issues employee service book opinions (promotion, suspension, increment, leaves, and special opinions), and the
Department also pays retirement benefits to Amdavad Municipal Corporation employees.
 This section also works to provide monthly pensions to retirees.
 Payment Department :
 Branches of Payment Department as follows:
Welfare Loan Branch
PF Branch

5. Institutions’ Organogram:
 Details of Official of the Department
Title : Institutions’ Organogram the Department

6. Functions and Financial Status of each of
the institution :
 The books of accounts are kept in accordance with the double entry accounting system, and financial
statements are generated in accordance with the accrual accounting system.
 As a result, the system may be stated to be compliant with the National Municipal Accounting Manual.
 The generated reports fulfil the needs of diverse user groups.
 Since the adoption of double entry accounting system, they have Public Financial Management cycle which
includes following internal control.
 Payment Control
 Receipt Control
 Budgetary Control
 Efficient Pre-Audit System

7. Acts and Policies under which each
institution is governed :
 ACTS & LAWS
 Banking Regulation Act, 1949
 Government Securities Regulations, 2007
 Government Securities Act, 2006
 Indian Coinage Act, 2011
 PSS Act, 2007
 PSS Regulations, 2008
 RBI Act, 1934
 RBI Regulations under FEMA
 RBI (Note Refund) Rules, 2009
 Payment Policy
 TERMS & CONDITIONS
 Ahmedabad CityPortal, on behalf of Ahmedabad
Municipal Corporation (AMC), offers the
convenience of transacting with AMC Offices
online.
 The provision of services is governed by the acts
and rules established by the AMC from time to
time. T
 he electronic delivery of AMC services complies
with the IT Act of 2000.
 This document describes the particular criteria
and terms of service that apply to Internet
delivery.
 Cancellation / Refund policy:
 Fees paid will not be returned for successfully
filed applications or successful bill payment
services.
 Cancellation of applications or bill payments is
not permitted.
 The sum paid can be settled with the relevant
departmental services.

8. Steps initiated at institutional level for Good
Governance including E-governance :
 Services offered:
 By integrating the main components, this Portal / project, as mentioned below, has been
established under the AMC e-Governance to realise the aim of delivering quick and convenient
services to agencies/citizens through the AMC Portal.
 The objective of the AMC Portal is to ensure the following:
 Providingeasy, anywhere and anytime access to AMC Services (both Information & Transactional)
 Reducing number of visits of citizens to an AMC office / advertisement department for availing the
services
 Reducing administrative burden and service fulfillment time & costs for the AMC, Citizens & Businesses
 Reducing direct interaction of citizen with the AMC and encourage „e?-interaction and more efficient
communication through portal

9. Relationship with various other institutions
within the same sector as well as with other
sectors :
 Relationship of Finance with Production
 Production department’s main duty is to produce the goods.
 Raw materials, labour, and other costs are required for the production of commodities.
 To cover all expenditures, the production department need money and funds, which will be provided by the finance department.
 The finance department examines the production department's budget and approves funding for the department.
 Relationship of Finance with Marketing
 Marketing department’s main duty is to sell maximum goods and satisfy the consumers. Its product’s input cost will decrease if all
products are sold by marketers of company.
 The marketing department need funds for salespeople, advertising budgets, and other promotional charges in order to produce
the product, promote it, and distribute it.
 For this marketing department, a marketing budget is created and approved by the finance department.
 Relationship of Finance with Personnel
 Personnel is that science which manages the employees of company and finance is that science which manage the money.
 If personnel department and finance department work together with co-operation, both departments can satisfy the objectives of
company.

10. Issues and Strategies :
 There are certain fundamental characteristics of Ahmedabad city and the communal riots, which underlie the impact
assessment of the conflict on its municipal finances.
 Firstly, the municipal finances of AMC are robust and in surplus. It is also one of the few local government bodies in
India that has obtained a strong credit rating.
 Secondly, the nature of conflict in Ahmedabad, although certainly devastating in terms of loss of life, property and
security, was localised and not protracted over a long period. It was wilfully targeted against the Muslim community
and intended to drive them out of the Ahmedabad old city area.
 Thirdly, the hand of the State in the violence taints any evaluation, since the local authorities and official sources
deny and underplay the impact of the conflict.
 Fourthly, there are extraneous concurrent factors such as the massive Gujarat earthquake in January 2001 that
increased the financial pressures of the state and city governments.
 Hence, it is difficult to isolate the impact of the 2002 conflict on some of the economic and financial factors of city
development in the period.

11. Thank You