Section 83 in The Andhra Pradesh Municipalities (Preparation of Accounts) Rules, 2017
83. Annual financial statements.
(1)Preparation of Annual Account comprising various Financial Statements is the responsibility of Head of Accounts Section. However, the ultimate responsibility lies with the Commissioner of the municipality. The Annual Accounts shall be prepared before the end of June following. The Annual Accounts shall be placed before the Council for approval.(2)The Financial Statements shall consist of:(a)Balance Sheet(b)Income and Expenditure Statement(c)Statement of Cash flows(d)Receipts and Payments Account(e)Notes to Accounts, and(f)Financial Performance Indicators(3)The Commissioner shall state that the books of account are maintained in the manner as required by the Act and rules; and as per the provisions of the Andhra Pradesh Municipal Accounts Manual. He shall also state that proper accounting principles have been adopted and applied consistently while accounting for the transactions and preparing the Annual Financial Statements. In determining the accounting treatment and manner of disclosure of an item in the Income and Expenditure Statement and/or in the Balance Sheet, due consideration shall be given to the materiality of the item. He shall also comment upon the performance of the municipality based upon the results of the Financial Performance Indicators. In respect of any adverse performance as reflected by the result of any Performance Indicator, the Commissioner shall also state the steps taken to improve the performance.(4)The Balance Sheet shall be prepared in Table 9.16.(5)The Income and Expenditure Statement shall be prepared in Table 9.15(6)The Statement of Cash flows shall be prepared in Table 9.17.(7)The Receipts and Payments Account shall be prepared in Table 9.18.(8)The Notes to Accounts shall comprise of statement of significant accounting principles, statement of contingent liabilities, subsidy report and other disclosures, as may be useful to understand the financial statements clearly.(9)The Financial Performance Indicators depict the performance of the municipality. They shall cover income ratios, expense ratios, net income ratios, efficiency ratios, leverage ratios, investment ratios, liquidity ratio, asset ratio and performance ratios. The Council may include new indicators also, if it desires.
