Kumily
Grama Panchayat

Audit Report 2024–25: Summary Review

The audit conducted by the Kerala State Audit Department for the financial year 2024–25 examined the Panchayat’s financial transactions, project implementation, revenue collection, asset management, and internal control systems. While the audit generally accepted the Panchayat’s financial statements, it highlighted several deficiencies, revenue losses, and areas requiring improvement.

Key Findings

1. Accounting-Related Deficiencies

• Not all supporting documents required to accompany the Annual Financial Statement were submitted.
• Discrepancies were identified in the figures reported in the Cash Flow Statement.
• Differences were found between the annual accounts and the registers relating to property tax and rental income.
• The Asset Register had not been updated.
• Expired cheques had not been properly adjusted in the accounts.
• Irregularities were found in the calculation and recording of depreciation.

2. Shortcomings in Revenue Collection

The audit noted a potential revenue loss of ₹12.71 lakh due to deficiencies in revenue collection.

Specific issues included:

• A loss of ₹11,460 resulting from the collection of professional tax at lower-than-prescribed rates.
• Professional tax was not collected from certain employees.
• Establishment (institutional) professional tax was not fully collected.
• Property tax due from CBSE schools and mobile towers had not been collected.
• Entertainment tax and certain rent arrears remained uncollected.

3. Deficiencies in Grant Utilization

• Development Funds and Road Maintenance Grants were not utilized to the prescribed extent.
• As a result, the audit report warns that the Panchayat could potentially lose approximately ₹3.37 crore in funding during the 2026–27 financial year.

4. Issues Related to Project Implementation

• Drinking water projects were not completed within the stipulated time.
• Under the LIFE Housing Scheme, some beneficiaries failed to complete their houses despite receiving financial assistance.
• Irregularities were identified in housing renovation projects.
• The audit observed that the excessive number of projects affected timely implementation and completion.

5. Irregularities in Procurement and Works

• Deficiencies were identified in the Solar Street Light Project, resulting in a reported financial loss.
• Documentation and implementation shortcomings were found in projects such as:
  • Street light installation
  • Legacy waste removal initiatives
• Certain expenditures were withheld because the required supporting documents were not produced.

Assessment of the Internal Control System

Although office operations were generally organized, the audit identified several weaknesses:

• Many registers were not properly maintained.
• The Institutional Register was incomplete.
• Adequate coordination between the budget and the annual plan was lacking.
• Government procurement guidelines were not being fully followed.
• Monitoring mechanisms require further strengthening.
• Asset management systems need improvement.

Major Financial Losses Identified

The audit specifically highlighted the following financial losses:

Conclusion

According to the 2024–25 Audit Report, Kumily Grama Panchayat has been actively implementing development activities; however, improvements are required in key areas such as revenue collection, accounting practices, grant utilization, project implementation, and asset management. Timely implementation of the audit recommendations will help strengthen the Panchayat’s financial efficiency, governance standards, and overall administrative performance.