Local Fund Audit – 2023–24
Audit Findings Summary – 2023–24
Edachery Grama Panchayat – Kerala State Audit Department (KSAD)
The following is a summary of the findings of the audit of the financial transactions and administrative procedures of Edachery Grama Panchayat for the financial year 2023–24.
Major Audit Observations
- Cash Flow Mismatch
The net increase/decrease in cash flow does not reconcile with the difference between the opening balance and closing balance. - Lapses in Tax and Non-Tax Revenue Demand Entries
There were lapses in raising demands for tax and non-tax revenues on time and in recording the corresponding accounts accurately. - Maintenance Fund Expenditure
Expenditure incurred from the Maintenance Fund was not included in the 104E Statement. - Development Fund Allocation
The Development Fund amount deducted at source (cut from source) was not accounted for in the expenditure statement. - Central Finance Commission (CFC) Grant Mismatches
- The bank balance of the CFC Grant does not reconcile with the balance shown in the Annual Financial Statement (AFS).
- The expenditure relating to the CFC Grant does not reconcile with the figures shown in the AFS.
General Structure of the Audit Report
A Kerala State Audit Department (KSAD) audit report generally covers the following areas:
- Administrative Observations: Non-compliance with the Panchayat Raj Act, rules, government orders and other applicable regulations.
- Financial Irregularities: Discrepancies in the Cash Book and ledgers, unsettled advances, expenditure incurred without complying with government instructions, shortcomings in tax collection, etc.
- Project Implementation: Issues relating to delays in project implementation, utilisation of funds and unutilised funds.
- Pending AIMS Queries: Audit queries and objections raised during the audit that remain unresolved.
- Assets and Liabilities: Review and assessment of the Panchayat’s overall assets and liabilities and their current status.
