2023-24 AUDIT REPORT

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Elikulam Grama Panchayat

Audit Report – Summary

Financial Year: 2023–24

This report is based on the audit examination of the financial activities and Annual Financial Statements of Elikulam Grama Panchayat for the financial year 2023–24. The audit report has recorded certain significant accounting irregularities.

1. Key Financial Position

Receipts & Payments

ParticularsAmount
Opening Balance₹1,63,17,164
Receipts During the Year₹4,98,31,360
Total₹6,61,48,524
Expenditure During the Year₹4,22,92,205
Closing Balance₹2,38,56,319

Income & Expenditure Account

Total Income
₹10,80,66,389
Total Expenditure
₹10,87,44,802
Net Operational Loss
₹7,84,394

2. Major Audit Findings

Irregularities Relating to the General Fund

The supporting information required to verify the value of the General Fund as on 31.03.2024 was not available. The details and records relating to the General Fund had not been properly maintained.

Absence of Capital Contribution Records

  • The Capital Contribution Register had not been maintained.
  • The value of assets created using special grants had been recorded as Revenue Expenditure instead of being transferred to Capital Contribution.

Deficiencies in the Asset Register

  • Assets had not been properly classified.
  • Valuation of assets had not been carried out.
  • The Asset Register had not been properly maintained.

3. Other Major Accounting Irregularities

  • Mandatory financial disclosures, including Notes on Accounts, had not been included in the Annual Financial Statements (AFS).
  • The Capital Work in Progress Register had not been maintained.
  • The Government and Other Dues Register had not been properly maintained.
  • The Deposit Register did not contain complete details of all deposits.
  • Required supporting documents were not available for advance amounts paid to implementing agencies, including ANERT.
  • There was a discrepancy between the Sabarimala Grant balance and the passbook balance.
  • Certain loan details did not tally between the Balance Sheet and the Loan Register.
  • Amounts recorded as Stale Cheques had not been adjusted.

4. Fund Utilisation

FundUtilisation Percentage
Development Fund – General82.4%
Development Fund – SCP37%
Finance Commission Grant – Untied56%
Finance Commission Grant – Tied63%
Maintenance Grant – Road16.42%
Maintenance Grant – Non-Road65.1%
Key Concern: The utilisation of the SCP Fund and the Road Maintenance Grant was comparatively very low.

5. Fixed Deposits

ParticularsAmount
Opening Fixed Deposit Balance₹1,28,22,325
Interest Received₹6,79,111
Amount Withdrawn₹68,61,083
Closing Fixed Deposit Balance₹66,40,353

Audit Observation: The information in the report indicates that there was a discrepancy between the fixed deposit amount reflected in the Balance Sheet and the corresponding records.

Overall Conclusion

Significant improvement is required in the documentation and accounting practices of Elikulam Grama Panchayat for the financial year 2023–24. Particular attention is required to ensure the proper maintenance of records relating to the General Fund, Capital Contribution, Asset Register, Advance and Deposit Registers, and loan details.

Key Recommendations

  1. Properly prepare and maintain the supporting information and accounts relating to the General Fund.
  2. Maintain the Capital Contribution Register without delay.
  3. Classify and value all assets and update the Asset Register accordingly.
  4. Reconcile the Advance, Deposit and Loan Registers with the Balance Sheet.
  5. Improve fund utilisation, particularly under the SCP Fund and Road Maintenance Grant.
  6. Collect utilisation and supporting documents for advances paid to implementing agencies, including ANERT.
  7. Reconcile all accounts, including fixed deposits, with the Annual Financial Statements.
  8. Provide replies with supporting documents and settle the pending paragraphs and observations in previous audit reports.

In Brief

The key audit concerns highlighted in the 2023–24 report are incomplete accounting records, the absence of adequate asset and capital information, low utilisation of certain funds, and discrepancies between various registers and the financial statements.

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  • 2023-24 AUDIT REPORT