2022-23 Annual Financial Statement
Kodikkulam Grama Panchayat
Financial Position for the Financial Year 2022-23 – Brief Report
1. Major Financial Figures
Item
Amount
Total Income
₹7,25,78,605
Panchayat General Fund
₹84,49,986
Reserves
₹3,07,86,926
Grants/Funds for Specific Purposes
₹75,71,057
Secured Loans
₹92,71,942
Cash & Bank Balance
₹1,30,37,150
Receivables
₹17,91,067
Pre-paid Programme Expenses
₹88,29,798
Total Balance Sheet
₹5,75,19,288
Both the assets and liabilities sides of the balance sheet are ₹5.752 crore each.
2. Revenue Position
The major sources of revenue in 2022-23 were:
Revenue Grants, Contributions & Compensation – ₹6.85 crore
Tax Revenue – ₹31.24 lakh
Fees & User Charges – ₹5.33 lakh
Sales & Hire Charges – ₹1.39 lakh
Rental Income from Panchayat Properties – ₹0.52 lakh
Bank Interest – ₹2.50 lakh
Total revenue is ₹7.256 crore. Of this, Revenue Grants/Contributions alone account for approximately 94%, indicating that the Panchayat's revenue structure is highly dependent on government grants.
3. Expenditure Position
Major expenditures:
Expenditure Category
Amount
Establishment Expenses
₹81.25 lakh
Administrative Expenses
₹9.68 lakh
Operations & Maintenance
₹2.27 lakh
Productive Sector Projects
₹42.19 lakh
Service Sector Projects
₹1.41 crore
Infrastructure Sector Projects
₹92.60 lakh
Projects in Other Sectors
₹1.38 crore
Transferred Institutions & State Sponsored Schemes
₹2.16 crore
Depreciation
₹15.63 lakh
The Cash Flow Statement also shows a similar expenditure structure.
4. Major Development Sectors
In expenditure under the Infrastructure sector, particularly:
Roads – Retarring: ₹27.13 lakh
Roads – Concreting: ₹32.99 lakh
Roads – Side Wall: ₹3.10 lakh
Roads – Drainage Renovation: ₹2.69 lakh
Road Patch Work: ₹1.45 lakh
Building Renovation: ₹3.81 lakh
A significant share has been allocated to road infrastructure development.
5. Social Security Expenditure
A large share of State Sponsored Schemes is allocated to social security pensions:
National Old Age Pension – ₹1.40 crore
Widow Pension – ₹41.98 lakh
Agricultural Workers Pension – ₹13.95 lakh
Physically/Mentally Challenged Pension – ₹15.30 lakh
Pension for Unmarried Women Above 50 Years – ₹4.30 lakh
Marriage Assistance for Daughters of Widows – ₹0.60 lakh
Total expenditure on State Sponsored Schemes is ₹2.16 crore.
6. Fund Position
According to the Balance Sheet:
General Fund – ₹84.50 lakh
Reserves – ₹3.08 crore
Specific Purpose Grants – ₹75.71 lakh
Secured Loans – ₹92.72 lakh
Other Liabilities – ₹11.55 lakh
Provisions – ₹0.98 lakh
Total liabilities/funds side is ₹5.75 crore.
Under Secured Loans:
Co-operative Bank Loan – ₹16.80 lakh
KURDFC Loan – ₹75.92 lakh
HUDCO Loan – Nil
are recorded.
7. Bank Balance and Liquidity
As of March 31, 2023, the total Cash & Bank Balance was ₹1.304 crore. The major components were:
Own Fund Bank Account – approximately ₹76.23 lakh
CFC Account – ₹26.15 lakh
NREGA Account – ₹4.74 lakh
SBI E-payment – ₹9.01 lakh
Life Mission Account – ₹6.18 lakh
Other special fund accounts, etc.
This indicates that the Panchayat had a reasonably good level of liquidity.
8. Receivables
₹17.91 lakh has been recorded as Sundry Debtors/Receivables. The major items are:
Property Tax – Residential current/arrears
Property Tax – Non-residential current/arrears
Rent Receivables
Redemption Receivables – approximately ₹13.89 lakh
Therefore, timely collection of arrears such as taxes, rent, and redemption will help improve the revenue position.
9. Pre-paid Programme Expenses
The recording of Pre-paid Programme Expenses of ₹88.30 lakh in the balance sheet requires particular attention.
It would be appropriate to verify the nature of this amount, the related projects/expenses, and whether they have subsequently been adjusted, with the relevant records.
10. Prior Period Adjustments
In the 2022-23 AFS, Prior Period Expenditure (-)₹55.57 lakh has been recorded. This mainly includes:
Unutilised Grants remittance – ₹8,882
Administrative Expenses adjustment – (-)₹64,800
Programme Expenses adjustment – (-)₹29,940
Miscellaneous Expenses adjustment – (-)₹54.71 lakh
Prior Period Income is ₹3.89 lakh.
Since there is such a large prior-period adjustment, it would be advisable to specifically examine the related vouchers, correction entries, and supporting records.
11. Asset Position
Major assets:
Asset
Amount
Fixed Assets
₹35.41 lakh
Capital Work-in-Progress
₹5.33 lakh
Service Sector Capital Expenditure
₹52.36 lakh
Infrastructure Sector Capital Expenditure
₹2.79 crore
Receivables
₹17.91 lakh
Cash & Bank
₹1.30 crore
Loans, Advances & Deposits
₹25.81 lakh
Infrastructure Sector Capital Expenditure is one of the largest asset categories.
12. Major Observations
Strong Areas
Government grants and various special funds appear to have been used effectively.
Significant expenditure has been made on roads, infrastructure, and service sectors.
Substantial financial support has been provided for social security schemes.
More than ₹1.30 crore in Cash & Bank Balance was maintained at the end of the year.
₹84.50 lakh was maintained in the General Fund.
Areas Requiring Attention
A large portion of revenue is dependent on Grants/Contributions.
₹88.30 lakh of Pre-paid Programme Expenses should be reconciled in detail.
₹17.91 lakh of Receivables should be collected in a timely manner.
Since there are Secured Loans of ₹92.72 lakh, loan repayment/interest liabilities should be monitored.
The related records should be examined due to the Prior Period Expenditure adjustment of ₹55.57 lakh.
Depreciation figures for assets such as roads and infrastructure should be continuously updated. Roads & Bridges depreciation alone is ₹10.14 lakh.
13. Overall Assessment
The financial transactions of Kodikkulam Grama Panchayat were extensive during the 2022-23 financial year. Revenue of approximately ₹7.26 crore was received, and substantial amounts were spent on social security, service sectors, and road/infrastructure development.
At the same time, greater attention is required to increasing own revenue, collecting arrears, reconciling pre-paid programme expenses, conducting a detailed examination of prior-period adjustments, and controlling loan liabilities.
