Audit Report 2024-2025
Nellikkuzhy Grama Panchayat – Audit Report Summary (2024–2025)
According to the audit report of the Kerala State Audit Department for the financial year 2024–2025, the following are the key findings regarding the functioning of the Panchayat.
1. Financial Overview
- Total Revenue: ₹11,57,53,085
- Total Expenditure: ₹9,31,59,134
- Closing Balance: ₹5,08,52,079
- Total Amount Objected to During Audit: ₹22,81,976
- Identified Financial Loss (Revenue/Expenditure Items): ₹64,512
2. Major Observations and Findings
Accounting Discrepancies
- Basic financial ratios and explanatory notes were not included in the Annual Financial Statements.
- Property tax figures did not reconcile with the Cash Flow Statement, indicating inconsistencies in financial reporting.
Asset Valuation
- The Panchayat had not carried out proper valuation of its assets.
- The Asset Register was not updated as required.
Misclassification of Expenditure
- An amount of ₹18,79,524 from the Non-Road Maintenance Grant was recorded as capital expenditure instead of revenue expenditure.
Deficiencies in Tax Collection
- Profession tax was not properly collected from contractors, doctors, and other professionals.
- Failure to levy tax according to revised rates resulted in a revenue loss of ₹1,440.
Non-Submission of Records
- Building regularization files and road-cutting restoration files were not produced for audit verification.
3. Project Implementation Lapses
LIFE Housing Scheme
- Several beneficiaries who had received installment payments failed to complete house construction within the stipulated time frame.
Distribution of Calves and Layer Chickens
- Irregularities were observed in the procurement process, including purchases made at rates higher than those approved by the planning committee.
- Supporting bills and documents were not properly submitted.
Procurement of Homeopathic Medicines
- An advance payment of ₹3,00,000 was made to HOMCO for the purchase of medicines.
- However, the medicines had not been supplied at the time of audit.
Kudumbashree Marketing Centre
- Despite the marketing centre having ceased operations, an excess rent amount of ₹27,300 was paid for the period after October 2024.
Electricity Charges
- KSEB receipts evidencing payment of electricity charges were not available in the audit files.
Conclusion
The audit identified several issues relating to financial reporting, asset management, tax collection, record maintenance, and project implementation. While the Panchayat maintained a healthy financial position overall, the report highlights the need for stronger financial controls, improved documentation practices, timely project completion, and enhanced compliance with accounting and administrative procedures.