Puliyoor
Grama Panchayat

This is the official audit report of Puliyoor Grama Panchayat for the financial year 2024–2025, issued by the Alappuzha District Audit Office. The report consists of 60 pages and was prepared and submitted on 03 December 2025.

• Financial Year: 2024–2025
• Objective: To verify whether the Panchayat's annual accounts, own-source revenue collection, and utilization of plan funds were carried out in accordance with the applicable laws, rules, and regulations.

Review of Annual Financial Statements (Annual Accounts)

The audit department identified the following major deficiencies and irregularities during its examination of the annual financial statements:

Absence of Bank Statements: While preparing the annual accounts, the Panchayat failed to produce the required bank statements and Bank Reconciliation Statements (BRS). As a result, the audit team was unable to fully verify the accuracy of the amounts recorded in the annual financial statements.

Lack of Clarity in Liability Heads: There is insufficient clarity regarding the purpose and nature of the outstanding balances shown under various liability heads.

Salary Accounting Discrepancy: When employees refunded excess salary payments received, the recovered amounts were not recorded under the appropriate accounting head.

Inaccuracy in the CFC Untied Fund Account: The audit found discrepancies in the accounting records relating to the Central Finance Commission (CFC) Untied Fund, indicating inaccuracies in the reported figures.

Pending Adjustment of Festival Advances: Festival advances provided to employees have not yet been fully adjusted and reconciled in the relevant Festival Advance account.

Collection Exceeding Demand: The records indicate that collections of License Fees and Profession Tax exceeded the amounts specified in the demand register. These discrepancies require further examination and reconciliation.

Health Grant Account Mismatch: The account balance relating to the Health Grant (Scheme 3) does not agree with the balance reported in RP40(b), the official financial statement prescribed for Local Self-Government Institutions.

• As per Annexure II: The audit department examined the Utilization Certificates relating to the grants received for various development activities during the financial year 2024–2025. The examination was carried out in accordance with the guidelines prescribed in Government Order (Handbook) No. 16/2021/LSGD dated 23 January 2021.

The report indicates that several accounting-related technical issues identified during the financial year 2023–2024 continued to persist in 2024–2025.

Key Recommendations:

• Submit the bank statements and Bank Reconciliation Statements (BRS) for all bank accounts to the audit department without delay to ensure transparency and facilitate proper verification.
• Prepare comprehensive replies to the seven major discrepancies pointed out by the Deputy Director of Audit and submit an Audit Rectification Report within the prescribed time frame.
• Strictly adhere to double-entry accounting standards while recording the recovery of excess salary payments and the adjustment of advance payments to ensure accurate financial reporting.