Elikulam Grama Panchayat

Audit Report – Summary

Financial Year: 2022–23

This audit report examines the Annual Financial Statements and various financial transactions of Elikulam Grama Panchayat for the financial year 2022–23. Although the audit certificate recorded no Major Observations, several deficiencies relating to accounting and the maintenance of registers were pointed out.

1. Deficiencies in the Annual Financial Statements

• The Ratio Schedule required under the rules had not been submitted for audit.
• Discrepancies were found between the figures in the Cash Flow Statement.
• The accuracy of the Panchayat's General Fund balance was not clear.
• The basic register relating to Capital Contribution was not available.

2. Incomplete Maintenance of Registers

The major deficiencies in documentation pointed out by the audit were:

• The Government/Other Dues Register had not been maintained.
• The Asset Register had not been updated regularly.
• An Asset Database had not been prepared.
• There were discrepancies between the information in the Demand Register and the Annual Financial Statements.
• Differences were found between the Advance and Deposit Registers and the AFS.

3. Accounting of Arrears

The audit found that the required Provision for Doubtful Arrears had not been made for doubtful arrears.

This may affect the true and fair presentation of the financial position.

4. Sabarimala Special Grant

• The amount shown under the Sabarimala Grant did not match the actual amount.
• Certain Liabilities related to the grant had not been accurately recorded in the accounts.

5. MGNREGS Accounting

The income and expenditure figures of MGNREGS did not reconcile with the figures in the Cash Book and the Annual Financial Statements.

6. Utilisation of Grants

While some funds were utilised effectively, the utilisation of certain major funds was comparatively low.

In particular, the Tied Grant and Maintenance Funds need to be utilised more efficiently.

7. Amount Received from Road Tarring Works

The report also contains an audit observation regarding the value received from empty barrels in road tarring and re-tarring works being accounted for as revenue in the Own Fund.

8. Previous Audit Reports

The report recommends that the pending audit objections and audit observations from previous years be settled on an urgent basis.

Overall Conclusion

Although no Major Observations were recorded for the financial year 2022–23, significant improvements are required in accounting accuracy, maintenance of registers, updating of asset information, grant accounting, and the assessment of arrears.

Key Recommendations

1. Update the Asset Register and Asset Database on an urgent basis.
2. Resolve discrepancies in the Annual Financial Statements, including the Cash Flow Statement.
3. Maintain accurate records relating to the General Fund and Capital Contribution.
4. Reconcile all Demand, Advance and Deposit Registers with the AFS.
5. Make the required provision for doubtful arrears.
6. Ensure the timely utilisation of unutilised grants.
7. Settle all pending observations from previous audit reports.

In Brief

The main focus of the 2022–23 audit report is the discrepancies in accounting figures and the incomplete maintenance of statutory and financial registers.