Audit Report 2023-24
Audit Report (2023-24)
Kerala State Audit Department, District Audit Office, Ernakulam - 682030
- Number: EKM(P7)1552/2024 | Date: 01/11/2024
- Email: doekm.ksad@kerala.gov.in | Phone: 0484-2422271
1. General Information Regarding the Audit
- Officer in Charge of Audit: Smt. Shirley Peter (Deputy Director)
- Audit Period: From 07-10-2024 to 17-10-2024
- Audit Concluding Meeting: 17-10-2024
- President: Smt. Jiji Shiju (From 29-04-2023 to 31-03-2024)
- Auditing Officers:
- Shri Siju P. Damson (Audit Officer)
- Shri Sajeev N.M. (Assistant Audit Officer)
- Shri Sourath C. (Senior Grade Auditor)
- Shri Nabeel Mohammed Abbas (Auditor)
2. Financial Review and Budget
The revised budget estimates and the actual income-expenditure figures for the year 2023-24 are as follows:
Budget Estimate (Revised - 22.01.2024)
- Anticipated Revenue: ₹20,43,54,471
- Anticipated Expenditure: ₹20,32,72,678
Actual Figures for the Audit Year
- Opening Balance: ₹1,06,47,703.00
- Revenue of the Audit Year: ₹3,28,49,260.00
- Total Amount: ₹4,34,96,963.00
- Expenditure of the Audit Year: ₹2,87,81,703.00
- Closing Balance: ₹1,47,15,260.00
3. Major Audit Observations and Deficiencies
3.1. Discrepancies in Financial Statements
- Deficiency in Cash Flow Statement: Since the figures do not match according to accounting standards, the accuracy of the Cash Flow Statement is not certified in this audit.
- Property Tax Accounts: The Property Tax DCB (Demand, Collection, and Balance) figures do not reconcile with the Sanchaya annual accounts.
- Asset Register: Due to deficiencies in the design of the existing Asset Register, the value of assets shown in the Balance Sheet could not be traced in the register.
- Manual Appropriation Control Register: This register is not being maintained for the utilization of grants other than the Development Fund.
- Basic Ratios: The basic ratios required under Rule 62(f) of the Panchayat Raj Accounts Rules, 2011, have not been included in the Annual Financial Statement.
3.2. Discrepancies in Revenue and Income Receipts
- Profession Tax Collection: An accurate ward-wise database or Demand Register (Form 5) of employees and institutions liable to pay tax is not available.
- Arrears to be Collected: A total of ₹10.24 lakh remains to be collected under various tax revenue categories.
- Room Rental Discrepancies: There is a mismatch between the demand amount in the rental register (₹21,61,152) and the figures certified by the Secretary. Furthermore, a correction entry made regarding the refund of an amount to an individual who did not have a rent deposit needs to be verified.
- Bus Stand Auction: An amount of ₹54,798 is outstanding under the bus stand auction category. Tax Collected at Source (TCS) of 1%, amounting to ₹1,120, was not levied.
- Water Charges Arrears: As per the demand from the Water Authority, an arrear of ₹7.33 crore is shown. Its accuracy needs to be cross-verified with the Water Authority.
3.3. Deficiencies in Project Implementation
- Paddy Cultivation Development Scheme (Agricultural Officer): The implementing officer failed to produce the landowner-farmer agreements as per subsidy guidelines, expenditure records for land plowing, and crop insurance details.
- LIFE Housing Scheme (General): Even after receiving the second installment, the beneficiary has not completed the house construction. The Monitoring Committee must intervene in this matter urgently.
- Waste Management (Haritha Karma Sena): A majority of houses and commercial establishments are not cooperating with the Haritha Karma Sena. It is directed to issue notices to those who do not pay user fees and to organize awareness programs.
4. Details of Amounts Held/Disallowed in Audit
A total of ₹88,607/- has been disallowed/held up in the audit due to a shortage of documents or utilization certificates. The details are given below:
| Paragraph No. | Disallowed Amount (₹) | Reason | Responsible Officer / Designation |
|---|---|---|---|
| 1-22 | ₹50,000 | Utilization Certificate for IKM share was not produced | Shri M. Faisal (Secretary) |
| 1-23 | ₹15,512 | Medicines worth the balance amount were not made available out of the medicines purchased for FHC | Dr. Blessy Paul (Medical Officer) |
| 1-24 | ₹23,095 | Utilization Certificate for payment of additional pumping charges at pump houses was not received | Shri Santhosh A.V. (Secretary) |
| Total | ₹88,607 |
5. Directives for Follow-up Action
- Special Meeting: The Panchayat Governing Body must convene a special meeting within one month of receiving this report to discuss it in detail, and the decisions must be published for public attention.
- Submission of Reply: Immediate action must be taken to resolve the audit remarks and objections, and a reply report must be submitted to this office within two months.
- Bank Accounts: Inoperative bank/treasury accounts in the name of the Assistant Engineer should be verified, and steps must be taken to close the accounts after transferring the amounts to the Panchayat's own fund.
- Advance Amounts: Advance amounts given years ago to the Padasekhara Samiti (₹3,40,000) and KSEB (₹1,99,899) must be adjusted and settled immediately.