Municipal Accounting represents accounting services for municipalities created by CPA or Certified Public Accountant, who has mastery in Municipal Accounting. Municipal Accounting has access to transparency, as the people of the city have the right to know how the government is using their money in the residing town.
Handling the accounts of a city can be very difficult for a city government. The city’s income sources are taxes, fees, fines taken from citizens, interests, and government loans. In addition, a state government may pass grants to municipalities for repairing roads, parks, and other public entities. Cities can also have access to contributions from several sources, and the municipal accountant notes money that is being accounted for.
Cities also pay out funds in ways such as handling the paychecks to the employees or private contractors. The fees of insurance of the properties are also included in the same. A municipal accountant looks after each source of income and payment that the city is having and creates a record representing how the money is used to develop the town. Members of the public can inspect the documents which the municipal accountant makes. The government appoints these public faces to check the practices are legal or not. They even check each sign of irregularities that indicate the funds are used inappropriately or adequately.
Sources by which Municipality Receives Funds
There are three primary sources to receive funds for any Municipality –
A)Funds from Own Sources – A municipality receives funds through three own sources which are –
- By Taxation – The municipality can have taxation from the public, like property tax and others.
- By Ownerships – The city owns various properties like buildings that are let out on lease, and rents are then collected through it.
- By Collecting Service Charges – In this case, certain charges such as water supply or garbage disposal collection are taken.
B) Funds From The Borrowed Sources – These are loans borrowed from the banks, government, and other financial institutions. These are based on certain conditions, such as the number of installments.
C) Grant Aid funds – These are gifts or free money from higher sources such as more top government and other bodies. The grants could be of any purpose, like creating flyovers or paying salaries( Revenue Grants).
All the funds of the municipality are generated from one of these three categories. Therefore, a pleasant and efficient working district would make funds from its resources.
Duties of Public Members
The public members are considered as the face of the public. The ones who are deserving and are keen to hold any responsibility are selected for this committee. These public members are chosen and appointed by the government. They have the full right to have a look at the works of the municipality. They may check each work and the records that have been done and further allotted to the corporation’s employees. If there is any foul play in the municipality’s actions, they have a right to take a check on them. As these members are the public’s face, it becomes essential for them to abide by rules and work full honesty.
The government also ensures the people who are in a public member committee. It ensures that they are well educated and a known face to the locals and doesn’t have any criminal records. This is because being a citizen of India is mandatory.
Importance of Municipal Accounting and Municipal Corporation
A) Municipal Accounting – It provides services to those who know and are well mastered in this field. Municipal Accounting helps the municipal corporation to keep an instant record of all the transactions. This department helps in saving a lot of time. Its employees and today own a well-prepared register; many companies provide software related to it in this technological era. The computer system is indeed high-speed and secure than the handwritten system and saves time. A complete and reliable record is available, including the bit of work done and the expenses made in it. This is all possible just because of Municipal Accounting.
B) Municipal Corporation – The Municipal Corporation is the primary body that looks after Urban and town planning. It looks after the houses’ legal buildings and properties and ensures they mark above the security points. It essential feature to look after the water supply for industrial and commercial purposes. Besides this, there are primary responsibilities, such as providing fire services and safeguarding the weaker section of society’s interests. Furthermore, they look and work for slum improvement and provide education. Municipal Corporation is, thus, one of the essential and respected corporations of the community.