2024-25 AUDIT REPORT

Elikulam Grama Panchayat

Audit Report – Summary

Financial Year: 2024–25

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This report presents the audit examination of the Annual Financial Statements and financial transactions of Elikulam Grama Panchayat for the financial year 2024–25. According to the audit certificate, subject to the observations recorded in the report, the financial statements reflect the financial position of the Panchayat.

 

Major Audit Findings

 

1. Records Relating to the General Fund Were Not Available

  • The records and supporting information required to verify the value of the Panchayat's General Fund as on 31.03.2025 were not made available.
  • The audit pointed out the need to improve record maintenance to ensure the accuracy of the General Fund.

 

2. Asset Register Not Updated

  • The assets of the Panchayat had not been properly classified or valued.
  • The Asset Register had not been updated.
  • Proper accounting of assets needs to be ensured.

 

3. Capital Work in Progress Incorrectly Recorded

The audit found that Capital Work in Progress had been incorrectly recorded as zero.

 

4. Discrepancy in MGNREGS Accounts

The Receipt & Payment details of MGNREGS did not reconcile between the Annual Financial Statement (AFS) and the Cash Book.

 

5. Revenue Demand Not Recorded on Time

  • According to the Kerala Panchayat Raj Accounts Rules, the monthly demand for each revenue item should be recorded through journal entries.
  • However, demand entries for various revenue items were not recorded in a timely manner.

 

6. Other Discrepancies in the Accounts

  • Discrepancies were found between the balances shown in Schedules B5 and B16.
  • Required provisions had not been recorded for certain expenses, including the honorarium of elected representatives and fuel expenses.
  • There was a difference between the CFC Grant balance shown in Schedule B4 and the bank balance.
  • The Advance Register was not properly maintained.
  • Amounts recorded as stale cheques had not been adjusted.

 

7. Adjustment of Advance Amounts

According to the accounts as on 31.03.2025, advance amounts totalling ₹81.92 lakh, paid to various agencies and institutions, remained to be adjusted.

The audit directed that the progress of deposit works, including those undertaken through KSEB, should be reviewed and accurately recorded in the Advance Register.

 

Overall Conclusion

The major audit concerns for the financial year 2024–25 relate to incomplete accounting records and discrepancies between various accounts.

Greater accuracy is particularly required in the maintenance of the General Fund, Asset Register, MGNREGS accounting, Advance Register, and grant accounts.

 

Key Recommendations

  1. Prepare and maintain the supporting records of the General Fund and ensure its accuracy.
  2. Classify and value all assets and update the Asset Register.
  3. Record Capital Work in Progress accurately in the accounts.
  4. Resolve the discrepancies between the MGNREGS Cash Book and the AFS.
  5. Record the monthly demand for all revenue items in a timely manner.
  6. Reconcile all accounts, including the CFC Grant, with the relevant bank records.
  7. Properly maintain the Advance Register and complete the adjustment of advance amounts totalling ₹81.92 lakh.
  8. Resolve discrepancies relating to stale cheques, provisions, loans, and balances.

 

In Brief

The key issues highlighted in the 2024–25 Audit Report are the absence of supporting records for the General Fund, incomplete maintenance of the Asset Register, discrepancies in the accounts, differences in MGNREGS accounts, and delays in the adjustment of advance amounts.

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  • 2024-25 AUDIT REPORT