AUDIT REPORT 22-23
Puliyoor Grama Panchayat
2022–23 Audit Report – Analysis
Introduction
The audit report for the financial year 2022–23 was prepared by the Kerala State Audit Department after examining the financial transactions, tax administration, licensing procedures, public works, welfare schemes, social security pension disbursement, and auction procedures of Puliyoor Grama Panchayat.
The report highlights several positive initiatives undertaken by the Panchayat, such as efforts to enhance revenue generation and implement property tax reforms. At the same time, it provides a number of recommendations aimed at increasing the Panchayat's own-source revenue and improving the efficiency and effectiveness of its administrative procedures.
Financial and Administrative Assessment
During the 2022–23 financial year, Puliyoor Grama Panchayat initiated measures to implement property tax reforms. However, the audit observed that greater efficiency is required in areas such as property tax assessment, enhancement of own-source revenue, issuance of licenses, auction procedures, and the administration of social security pension schemes.
Key Achievement
🏘️ Property Tax Reform
The Grama Panchayat approved the revised property tax rates and, after inviting objections from the public, published the final notification. The audit recommended incorporating the revised tax rates into the Sanchaya software system to facilitate effective implementation and enhance the Panchayat's own-source revenue.
Major Audit Findings
1. Unauthorized Constructions Not Regularized
The registers and records required for regularizing unauthorized constructions, as prescribed under the 2018 Rules, had not been prepared.
2. Service Cess Not Levied
The Panchayat had not levied the service cess that could be collected for services such as sanitation, water supply, street lighting, and drainage.
3. Presumptive Profession Tax Not Collected
A comprehensive database of advocates, engineers, contractors, vehicle owners, and other professionals had not been prepared. Consequently, no effective action had been taken to assess and collect profession tax from these categories.
4. Auction Register Not Maintained
The Auction Register (Auction Diary) relating to the Panchayat's auction proceedings had not been properly maintained, affecting the transparency and verification of auction transactions.
5. Deficiencies in Property Tax Assessment
Property tax for certain commercial buildings had not been assessed based on their actual usage. The audit recommended a detailed inspection and reassessment of the applicable property tax.
6. Arrears of Property Tax from Mobile Towers
The audit directed the Panchayat to recover the outstanding property tax, along with applicable interest, from two mobile communication towers located within its jurisdiction.
7. Profession Tax Not Collected from Financial Institutions
Institutional profession tax had not been collected from co-operative banks, finance institutions, beverage outlets, and similar establishments.
8. Delay in Issuing Licenses
Although license applications are required to be processed within seven days under the relevant rules, most applications were approved only after a delay of approximately one month.
9. Lack of Transparency in Auction Procedures
The audit identified several deficiencies in the auction process:
- The Auction Register (Auction Diary) was not maintained.
- Details of the participants were not properly recorded.
- There was no clear documentation regarding the highest bid received.
- Valuation records were not made available for audit.
10. Social Security Pension
The audit found that social security pensions had continued to be disbursed even after the death of certain beneficiaries. It recommended recovering the ineligible payments and strengthening the monitoring and verification mechanism to prevent such occurrences in the future.
Major Audit Recommendations
Reassess property tax and enhance the Panchayat's own-source revenue.
Ensure efficient collection of the service cess and presumptive profession tax.
Recover arrears of tax from mobile towers and financial institutions.
Dispose of license applications within the prescribed time limit.
Ensure complete transparency in auction procedures.
Strengthen verification and monitoring of social security pension beneficiaries.
Conclusion
During the 2022–23 financial year, Puliyoor Grama Panchayat undertook several administrative measures, including property tax reform. However, significant improvements are still required in the areas of enhancing own-source revenue, tax collection, license issuance, auction procedures, property tax assessment, and social security pension administration.
The report concludes that if the deficiencies pointed out by the audit are rectified in a timely manner and the Panchayat strengthens its tax administration and financial management systems, the administrative efficiency and financial stability of the Panchayat can be substantially improved.