Neelamperoor
Grama Panchayat

Analysis of the Audit Report of Neelamperoor Grama Panchayat (Financial Year 2024-2025)

The following is an analysis of the major findings and irregularities related to the audit report of Neelamperoor Grama Panchayat in Alappuzha district for the financial year 2024-2025. Issued by the District Audit Office (Alappuzha) of the Kerala State Audit Department, this report highlights serious observations made after examining the Panchayat's financial statements.

Major Financial Findings and Irregularities

• Annual Accounts Prepared Without Following Regulations:

  As per the Kerala Panchayat Raj Rules, the mandatory Ratios and Notes to Accounts, which must be included in the annual statements, were missing from this year's accounts.

• Discrepancies in the Cash Flow Statement:

  There is a clear mismatch between the total amount in the cash flow statement (₹2,28,68,613/-) and the closing balance shown in it. The Panchayat has failed to provide the explanation requested by the audit department regarding this.

• Unreconciled Bank Amounts:

  An amount of ₹7,667/- was directly debited by the State Bank of India (Kainady branch) from the Panchayat's account. Although this should have been reconciled at the end of the month as per rules, no action was taken even by the end of the financial year.

• Receipts and Expenditures Recorded Under Wrong Heads:

  • Profession tax collected from employees (₹1,970/-) and license fees (₹5,000/-) were credited under incorrect account heads.

  • An expenditure of ₹6,59,239/- incurred for renting a vehicle for the Panchayat office was found to be booked under the wrong head.

• Failure to Include Assets:

  • An amount of ₹5,000,000/- spent from the District Panchayat fund for the construction of the Kannankara Padasekharam Bund (Ward-5) was not included in the annual accounts. This resulted in an understatement of the Panchayat's total asset value.

  • The land where the Panchayat building is located has not yet been included in the asset register or accounts.

• Irregularities in the Central Finance Commission Grant:

  According to the balance sheet, the outstanding liability under the Central Finance Commission Grant is ₹1,05,16,289/-. However, the dedicated account opened in South Indian Bank for this purpose does not hold a matching balance.

• Improper Maintenance of Registers:

  The Loan Register and Deposit Register were not properly updated and closed at the end of the year. Consequently, the accuracy of the figures in the annual accounts could not be verified.

• MGNREGS (Employment Guarantee Scheme):

  The receipts and expenditures under the employment guarantee sector do not match the annual accounts. Additionally, discrepancies were found in the amounts listed across various statements.

• Delay in Making Demand Entries for Tax Demands:

  Instead of recording demand entries for property tax, rent, licenses, and profession tax at the beginning of the year or on a monthly basis, they were recorded only twice throughout the entire year (on 04.11.2024 and 31.03.2025).

Budget Details (2024-25)

Note: The actual figures show a massive variation compared to the revenue and expenditure anticipated in the budget.

Utilization of Grants and Lapse of Funds

• Maintenance Grant (Road): Out of ₹25,93,000/- received, ₹23,24,847/- was utilized. The remaining ₹2,68,153/- lapsed.

• Maintenance Grant (Non-Road): Out of ₹47,79,000/- received, ₹46,78,024/- was utilized. The remaining ₹1,00,976/- lapsed.

Other Major Irregularities Mentioned in the Report

• Loss in Property Tax Assessment: The Panchayat fund suffered a loss due to the incorrect recording of a building's floor structure during property tax assessment.

• Social Security Pension Irregularities: It was discovered that pension amounts were transferred to a beneficiary's bank account even after their demise.

• Profession Tax: The eligible profession tax is not being collected in full.

• Breach of Contract: Revenue recovery proceedings have not been initiated to reclaim money from beneficiaries who violated contract terms.

• Shortcomings in the Health Sector: Medicines and equipment purchased for the Family Health Centre and the Homeo Dispensary have not been fully delivered/made available.

Follow-up Actions Required

Out of the 24 audit queries issued during the audit, the Panchayat has provided replies to only 14. The Panchayat is required to convene a special meeting to discuss this audit report within one month of receiving it. Furthermore, a rectification report addressing the irregularities must be submitted to the Audit Office within two months.Analysis of the Audit Report of Neelamperoor Grama Panchayat (Financial Year 2024-2025)

The following is an analysis of the major findings and irregularities related to the audit report of Neelamperoor Grama Panchayat in Alappuzha district for the financial year 2024-2025. Issued by the District Audit Office (Alappuzha) of the Kerala State Audit Department, this report highlights serious observations made after examining the Panchayat's financial statements.

Major Financial Findings and Irregularities

• Annual Accounts Prepared Without Following Regulations:

  As per the Kerala Panchayat Raj Rules, the mandatory Ratios and Notes to Accounts, which must be included in the annual statements, were missing from this year's accounts.

• Discrepancies in the Cash Flow Statement:

  There is a clear mismatch between the total amount in the cash flow statement (₹2,28,68,613/-) and the closing balance shown in it. The Panchayat has failed to provide the explanation requested by the audit department regarding this.

• Unreconciled Bank Amounts:

  An amount of ₹7,667/- was directly debited by the State Bank of India (Kainady branch) from the Panchayat's account. Although this should have been reconciled at the end of the month as per rules, no action was taken even by the end of the financial year.

• Receipts and Expenditures Recorded Under Wrong Heads:

  • Profession tax collected from employees (₹1,970/-) and license fees (₹5,000/-) were credited under incorrect account heads.

  • An expenditure of ₹6,59,239/- incurred for renting a vehicle for the Panchayat office was found to be booked under the wrong head.

• Failure to Include Assets:

  • An amount of ₹5,000,000/- spent from the District Panchayat fund for the construction of the Kannankara Padasekharam Bund (Ward-5) was not included in the annual accounts. This resulted in an understatement of the Panchayat's total asset value.

  • The land where the Panchayat building is located has not yet been included in the asset register or accounts.

• Irregularities in the Central Finance Commission Grant:

  According to the balance sheet, the outstanding liability under the Central Finance Commission Grant is ₹1,05,16,289/-. However, the dedicated account opened in South Indian Bank for this purpose does not hold a matching balance.

• Improper Maintenance of Registers:

  The Loan Register and Deposit Register were not properly updated and closed at the end of the year. Consequently, the accuracy of the figures in the annual accounts could not be verified.

• MGNREGS (Employment Guarantee Scheme):

  The receipts and expenditures under the employment guarantee sector do not match the annual accounts. Additionally, discrepancies were found in the amounts listed across various statements.

• Delay in Making Demand Entries for Tax Demands:

  Instead of recording demand entries for property tax, rent, licenses, and profession tax at the beginning of the year or on a monthly basis, they were recorded only twice throughout the entire year (on 04.11.2024 and 31.03.2025).

Budget Details (2024-25)

Note: The actual figures show a massive variation compared to the revenue and expenditure anticipated in the budget.

Utilization of Grants and Lapse of Funds

• Maintenance Grant (Road): Out of ₹25,93,000/- received, ₹23,24,847/- was utilized. The remaining ₹2,68,153/- lapsed.

• Maintenance Grant (Non-Road): Out of ₹47,79,000/- received, ₹46,78,024/- was utilized. The remaining ₹1,00,976/- lapsed.

Other Major Irregularities Mentioned in the Report

• Loss in Property Tax Assessment: The Panchayat fund suffered a loss due to the incorrect recording of a building's floor structure during property tax assessment.

• Social Security Pension Irregularities: It was discovered that pension amounts were transferred to a beneficiary's bank account even after their demise.

• Profession Tax: The eligible profession tax is not being collected in full.

• Breach of Contract: Revenue recovery proceedings have not been initiated to reclaim money from beneficiaries who violated contract terms.

• Shortcomings in the Health Sector: Medicines and equipment purchased for the Family Health Centre and the Homeo Dispensary have not been fully delivered/made available.

Follow-up Actions Required

Out of the 24 audit queries issued during the audit, the Panchayat has provided replies to only 14. The Panchayat is required to convene a special meeting to discuss this audit report within one month of receiving it. Furthermore, a rectification report addressing the irregularities must be submitted to the Audit Office within two months.Analysis of the Audit Report of Neelamperoor Grama Panchayat (Financial Year 2024-2025)

The following is an analysis of the major findings and irregularities related to the audit report of Neelamperoor Grama Panchayat in Alappuzha district for the financial year 2024-2025. Issued by the District Audit Office (Alappuzha) of the Kerala State Audit Department, this report highlights serious observations made after examining the Panchayat's financial statements.

Major Financial Findings and Irregularities

• Annual Accounts Prepared Without Following Regulations:

  As per the Kerala Panchayat Raj Rules, the mandatory Ratios and Notes to Accounts, which must be included in the annual statements, were missing from this year's accounts.

• Discrepancies in the Cash Flow Statement:

  There is a clear mismatch between the total amount in the cash flow statement (₹2,28,68,613/-) and the closing balance shown in it. The Panchayat has failed to provide the explanation requested by the audit department regarding this.

• Unreconciled Bank Amounts:

  An amount of ₹7,667/- was directly debited by the State Bank of India (Kainady branch) from the Panchayat's account. Although this should have been reconciled at the end of the month as per rules, no action was taken even by the end of the financial year.

• Receipts and Expenditures Recorded Under Wrong Heads:

  • Profession tax collected from employees (₹1,970/-) and license fees (₹5,000/-) were credited under incorrect account heads.

  • An expenditure of ₹6,59,239/- incurred for renting a vehicle for the Panchayat office was found to be booked under the wrong head.

• Failure to Include Assets:

  • An amount of ₹5,000,000/- spent from the District Panchayat fund for the construction of the Kannankara Padasekharam Bund (Ward-5) was not included in the annual accounts. This resulted in an understatement of the Panchayat's total asset value.

  • The land where the Panchayat building is located has not yet been included in the asset register or accounts.

• Irregularities in the Central Finance Commission Grant:

  According to the balance sheet, the outstanding liability under the Central Finance Commission Grant is ₹1,05,16,289/-. However, the dedicated account opened in South Indian Bank for this purpose does not hold a matching balance.

• Improper Maintenance of Registers:

  The Loan Register and Deposit Register were not properly updated and closed at the end of the year. Consequently, the accuracy of the figures in the annual accounts could not be verified.

• MGNREGS (Employment Guarantee Scheme):

  The receipts and expenditures under the employment guarantee sector do not match the annual accounts. Additionally, discrepancies were found in the amounts listed across various statements.

• Delay in Making Demand Entries for Tax Demands:

  Instead of recording demand entries for property tax, rent, licenses, and profession tax at the beginning of the year or on a monthly basis, they were recorded only twice throughout the entire year (on 04.11.2024 and 31.03.2025).

Budget Details (2024-25)

Note: The actual figures show a massive variation compared to the revenue and expenditure anticipated in the budget.

Utilization of Grants and Lapse of Funds

• Maintenance Grant (Road): Out of ₹25,93,000/- received, ₹23,24,847/- was utilized. The remaining ₹2,68,153/- lapsed.

• Maintenance Grant (Non-Road): Out of ₹47,79,000/- received, ₹46,78,024/- was utilized. The remaining ₹1,00,976/- lapsed.

Other Major Irregularities Mentioned in the Report

• Loss in Property Tax Assessment: The Panchayat fund suffered a loss due to the incorrect recording of a building's floor structure during property tax assessment.

• Social Security Pension Irregularities: It was discovered that pension amounts were transferred to a beneficiary's bank account even after their demise.

• Profession Tax: The eligible profession tax is not being collected in full.

• Breach of Contract: Revenue recovery proceedings have not been initiated to reclaim money from beneficiaries who violated contract terms.

• Shortcomings in the Health Sector: Medicines and equipment purchased for the Family Health Centre and the Homeo Dispensary have not been fully delivered/made available.

Follow-up Actions Required

Out of the 24 audit queries issued during the audit, the Panchayat has provided replies to only 14. The Panchayat is required to convene a special meeting to discuss this audit report within one month of receiving it. Furthermore, a rectification report addressing the irregularities must be submitted to the Audit Office within two months.