Puliyoor
Grama Panchayat

This is the official audit report of Puliyoor Grama Panchayat for the financial year 2023–2024, issued by the Alappuzha District Audit Office. This comprehensive 64-page report provides a detailed assessment of the Panchayat's financial management, revenue collection, administrative operations, and the irregularities identified during the audit.

• Report Date: This report was prepared and submitted by the District Audit Office on 21 December 2024.
• Objective: To examine whether the various government grants, own-source revenue, and development funds received during the financial year 2023–2024 were utilized properly, accurately, and in accordance with the applicable laws and regulations.

According to the key observations presented in the concluding section of the report, the audit department identified the following significant deficiencies in the Annual Financial Statements (AFS):

Unexplained Receipts: The Panchayat authorities were unable to provide satisfactory details regarding the source and nature of certain receipts recorded near the close of the financial year during the course of the audit.

Income Tax Recording Omission: The Income Tax amount received on 30 December 2023 was not properly recorded as a liability in the Annual Financial Statements (AFS).

Lack of Clarity Regarding Prior Period Income: The Panchayat was unable to furnish adequate supporting details for the amount of ₹765,542 (Rupees Seven Lakh Sixty-Five Thousand Five Hundred Forty-Two) shown under the head Prior Period Income.

Discrepancies in Schedule B16: Differences were observed between the amounts recorded in Schedule B16 relating to prepaid expenditure and the actual expenditure incurred, indicating inconsistencies in the financial records.

Lack of Clarity in Carried-Forward Liabilities: The Panchayat failed to satisfactorily explain the balances of liabilities carried forward from previous financial years, making it difficult for the audit team to verify their accuracy.

Deficiency in License Fee Accrual Entries: Accrual entries relating to license fees that should have been recognized at the beginning of the financial year were not properly recorded in the accounts.

• As per Annexures I & II: The audit examined the utilization of various grants received by the Panchayat from the State Government, the Central Government, and other agencies for the implementation of development activities.
• Criteria: The statements relating to the utilization of grants were examined in accordance with the provisions of Government Order (Handbook) No. 16/2021/LSGD dated 23 January 2021.

The report concludes that although Puliyoor Grama Panchayat has been actively implementing development activities and effectively utilizing its own-source funds, greater attention is required in accounting procedures to ensure financial accuracy and compliance.

Key Recommendations:

• Ensure full compliance with double-entry accounting principles and e-submission standards while preparing the Annual Financial Statements.
• Submit detailed explanations for the amounts, liabilities, and other discrepancies pointed out by the audit department through an Audit Rectification Report to the Local Self Government Department and the Director of Audit within the prescribed time frame.
• Exercise greater diligence at the administrative and accounting levels to ensure accurate financial entries and maintain transparency and accountability in financial management in the coming years.