Audit Report

Orumanayoor Grama Panchayat Audit Report 2024–25 – Summary

According to the report released by the Kerala State Audit Department, several financial, administrative, and tax-related irregularities were identified during the audit of the accounts and projects of Orumanayoor Grama Panchayat for the financial year 2024–25.

Major Findings

  • Certain capital expenditures were recorded under incorrect accounting heads, resulting in a misleading representation of the Panchayat’s actual financial position.
  • Discrepancies were found between the grant fund account balances and the corresponding bank account balances.
  • Figures in the cash flow statement did not match properly.
  • Required documents such as reconciliation statements, vouchers, and worksheets were not produced for verification.
  • Differences were identified between the annual accounts and the Sulekha project expenditure records.

Major Observations Related to Tax/Fee Loss

  • A building number was allotted to an orphanage building without collecting the legally applicable fee, causing revenue loss to the Panchayat. The audit suggests that approximately ₹4.09 lakh in additional fees should have been collected.
  • In some buildings, additional construction beyond the approved plan was carried out, but regularisation fees were not collected.
  • The entire completed building area was not included in the property tax assessment.
  • For educational institution construction on paddy land/wetland, records proving collection of the legally required fees were not available. The audit points out that up to ₹11.6 lakh may have been collectible.
  • Records showing the collection of property tax from mobile towers were not available.

Tender and Procurement Irregularities

  • HDPE bins were purchased without following proper tender procedures, resulting in financial loss to the Panchayat.
  • No action was taken against firms that withdrew from the tender process.
  • An excess payment of ₹26,806 was made to a contractor beyond the amount recorded in the measurement book; this amount was disallowed in audit.

Projects and Fund Utilisation

  • Out of 179 projects, only 137 were implemented.
  • Overall utilisation of project expenditure was only about 46.59%.
  • ₹72.22 lakh was spent under the employment guarantee scheme.
  • Significant amounts were spent on social welfare pensions, including old-age pension and widow pension schemes.

Audit Recommendations

The Audit Department directed the Panchayat to:

  • Recover pending fees and taxes,
  • Complete regularisation procedures,
  • Maintain records properly,
  • Follow accounting standards accurately,
  • Resolve the audit objections and submit compliance reports.