2022-23 Audit Report
Kodikulam Grama Panchayat
Analysis of the 2022–23 Audit Report
1. Introduction
The Kerala State Audit Department, Idukki District Audit Office, examined the financial records of Kodikulam Grama Panchayat for the financial year 2022–23 and issued the audit report on 06.10.2023. The audit pointed out deficiencies in areas such as accounting, project implementation, taxation, procurement procedures, drinking water projects, and internal control.
2. Major Financial Review
Approved projects : 176
Implemented projects : 130
Unimplemented projects : 46
Project completion percentage : 73.86%
Total project outlay : ₹5,97,44,462
Total expenditure : ₹3,04,78,894
Expenditure percentage : 51.01%
3. Major Audit Findings
(1) Deficiencies in Accounting
All the required supporting documents have not been included in the annual accounts.
Valuation and classification of assets have not been carried out.
The required registers have not been properly maintained.
There is insufficient evidence for Prior Period Income/Expenditure entries.
Discrepancies were found between the asset and liability schedules.
(2) Project Implementation
Spillover projects have not been completed within the stipulated time.
Only about half of the sanctioned amount was utilized for some spillover projects.
The audit observes that this may affect the availability of funds in the future.
(3) Grant Utilization
While some grants were fully utilized,
significant amounts remained unutilized under items such as CFC Tied Fund, Suchitwa Mission, and Ayurveda.
(4) Property Tax
The Panchayat suffered revenue loss because commercial buildings were divided and taxed at lower rates.
The revised property tax procedures have not been completed.
Service cess is not being collected.
(5) E-Tender Fee
₹3,05,285 is due to the Grama Panchayat but has not yet been transferred.
(6) Homoeo Hospital
Although ₹1,50,000 was transferred for purchasing medicines, the medicines have not been received.
(7) Drinking Water Projects
Although the construction of borewells has been completed, the projects have not been completed because motors have not been installed.
(8) Computer Purchase
Although ₹46,288 was paid in advance to Kerala IT Mission, the computer has not been received.
(9) Procurement Procedures
The Procurement Committee did not function effectively.
The Panchayat incurred financial loss because similar goods were purchased at different rates.
(10) Subsidy Distribution
The audit found that a loss of ₹15,000 occurred due to the provision of subsidy to an ineligible person under the she-goat distribution project.
4. Deficiencies in Internal Control
Registers are not updated in a timely manner.
The stock register, advance register, and deposit register are incomplete.
Joint inspections of streetlights and public taps have not been conducted.
Property tax collection is not being monitored effectively.
5. Major Audit Recommendations
Complete the annual accounts in accordance with accounting rules.
Update the asset register and complete the valuation.
Complete spillover projects within the stipulated time.
Reassess property tax and collect arrears.
Make the e-tender fee available to the Panchayat.
Expedite purchases for which advance payments have been made, such as medicines and computers.
Make the Procurement Committee function in a more active and transparent manner.
Resolve audit observations within the stipulated time and submit a follow-up action report.
Conclusion
Although Kodikulam Grama Panchayat carried out development activities during 2022–23, significant improvements are required in accounting, project implementation, procurement procedures, tax collection, and internal control. Timely implementation of the audit recommendations will help enhance the financial transparency and administrative efficiency of the Panchayat.
