Audit Report 2023-24
Neendoor Grama Panchayat Audit Report 2023–24 – Detailed Review
The audit conducted by the Kerala State Audit Department for the financial year 2023–24 examined the financial transactions, project implementation, tax collection, asset management, and infrastructure development of Neendoor Grama Panchayat in detail. Overall, the Panchayat’s functioning was found to be satisfactory; however, the audit report highlighted the need for greater attention in areas such as financial control, record maintenance, tax collection, and project monitoring.
Financial Position
At the beginning of the 2023–24 financial year, the Panchayat had an opening balance of ₹1.81 crore. During the year, revenue of ₹4.36 crore was recorded against expenditure of ₹3.95 crore. At the end of the financial year, a closing balance of ₹2.22 crore remained. According to the Income and Expenditure Account, the Panchayat recorded a net operating deficit of ₹15.67 lakh. The audit report also states that expenditure amounting to ₹27.52 lakh was held under objection during the audit.
Grant Utilisation
The Panchayat was able to make good use of funds such as the Development Fund (General), SCP, TSP, and Non-Road Maintenance Grant. However, only 20% of the Road Maintenance Grant and 25% of the Finance Commission Tied Grant were utilised. As a result, ₹70.70 lakh was surrendered to the Consolidated Fund. The main reason identified was the failure to implement development projects within the prescribed timeframe.
Project Implementation
A total of 259 projects were approved under the 2023–24 Annual Plan. Out of the projects with a total allocation of ₹13.41 crore, only 163 projects were completed. The project completion rate was 62.93%. A total of ₹5.35 crore was spent. As many as 96 projects could not be implemented. The audit report also observed that project monitoring was not sufficiently effective.
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
The report indicates that the implementation of the employment guarantee scheme was of a good standard. A total of 546 families participated in the programme, generating 38,572 person-days of employment. As many as 210 workers completed 100 days of employment. Activities such as rainwater pit construction, canal renovation, paddy field conservation, road concreting, and cattle shed construction were successfully implemented.
Social Welfare Activities
Significant amounts were spent on social security schemes such as old-age pension, widow pension, disability pension, and agricultural labour pension.
Old-Age Pension – ₹1.51 crore (1,517 beneficiaries)
Agricultural Labour Pension – ₹58.96 lakh (516 beneficiaries)
Widow Pension – ₹65.63 lakh (614 beneficiaries)
Unmarried Women’s Pension – ₹3.86 lakh (33 beneficiaries)
Disability Pension – ₹27.64 lakh (250 beneficiaries)
Major Deficiencies in Financial Control
The major financial irregularities identified during the audit are as follows:
Supporting documents establishing the authenticity of the General Fund were not available.
The Capital Investment Register was not maintained.
The Asset Register was not updated.
The authenticity of the Capital Work in Progress figures was not clear.
The Government/Other Dues Register was not updated.
Deposit and Advance Registers were not properly maintained.
Expired cheques were included in the accounts without proper adjustment.
Inactive bank accounts had not been closed.
Findings Regarding Tax Collection
The audit found that some buildings had been assigned incorrect road-access classifications while assessing property tax. Different tax rates had also been applied to nearby buildings. In addition, the collection of information regarding buildings where changes had occurred in floor area and usage had not been completed.
Deficiencies were also identified in the collection of profession tax. Profession tax had not been collected from certain dairy cooperative societies and various contractors.
License Control
Some establishments operating within the Panchayat area were functioning without obtaining the required IFTE & OS (Industries, Factories, Trades, Entrepreneurship and Other Services) licence. The audit recommended ensuring that such establishments obtain the mandatory licences and that statutory fees are collected from them.
Digital Payment Accounts
A balance of ₹31.44 lakh was maintained in a BHIM-UPI-based digital payment account. The audit found that these funds had not been transferred to the Panchayat’s own fund within the prescribed time. It was recommended that the amounts be reconciled every month and transferred to the own fund in a timely manner.
Internal Control
The audit assessed the Panchayat’s internal control system as generally satisfactory. Accounts are maintained through the ILGMS software, and records such as the Cash Book, Bank Book, and Stock Register are maintained properly.
Conclusion
During 2023–24, Neendoor Grama Panchayat achieved notable progress in the implementation of the employment guarantee programme, social security schemes, and development activities. However, the audit report identified project implementation efficiency, utilisation of the Road Maintenance Grant, tax collection, licence control, maintenance of asset registers, and accuracy of financial records as areas requiring improvement.
By taking timely corrective measures in these areas, the Panchayat can further strengthen its administrative efficiency, financial transparency, and overall governance.