Audit Report 2019-20

Audit Report for Arpookara Grama Panchayat 2019–2020:

📊 1. Financial Summary & Fund Utilization

Budget vs. Actuals:
- While the budget estimated revenue at ₹43,48,52,035, the actual revenue collected (including opening balance) was only ₹9,36,20,423.94.
- Total Expenditure: ₹7,47,17,399.94.
- Closing Balance: ₹1,89,03,024.94.
Operating Deficit: The panchayat incurred a current year operational deficit of ₹95,95,559.
Lapsed Funds:
- Out of the total annual plan outlay of ₹18.68 crore, only 27% (₹5.09 crore) was spent.
- ₹1,99,58,614 (approx. ₹2 crore) lapsed at the end of the financial year and reverted to the Consolidated Fund (this included ₹55.9 lakh allocated for flood relief works).

The audit identified direct financial losses to the Panchayat totaling ₹41,925, which must be recovered from the responsible officers:

Excess Subsidy for Fishermen:
- Excess subsidy of ₹37,650 was disbursed for supplying boats and nets (beyond the ceiling limit of ₹30,000 per beneficiary).
- Responsible Officer: Smt. Preethi C. (Fisheries Sub-Inspector).
Dining Hall Construction Overpayment:
- An overpayment of ₹3,645 was made to the contractor due to an error in bill calculations.
- Responsible Officer: Shri Ajith Jacob (Assistant Engineer).

Expenditures totaling ₹1,12,35,795 (₹1.12 crore) were disallowed by the audit due to lack of necessary approvals, vouchers, or execution records:

Nehru Trophy Boat Race Assistance (₹6,00,000): Funds were disbursed from own revenue to boat clubs without regulatory provisions or proper guidelines.
Deposit Works (₹88,70,501): Funds transferred to KWA and KSEB lacked proper agreements, completion timelines, or Utilization Certificates (UCs).
Public Works Irregularities (₹3,02,311): Painting and lighting works in the panchayat office were executed without proper estimates, quotations, or valuation reports.
Haritha Sahaya Samakya Assistance (₹2,50,000): Payments were made to IRTC without documentation proving services were rendered as per project terms.
Unapproved Project Expenditure (₹1,84,000): Spent on a poultry project ("Kozhiyum Koodum") without District Planning Committee (DPC) approval.
KWA Late Fee Penalties (₹49,978): Incurred as interest and penalties due to delayed payment of water charges from previous years.
Missing Vouchers (₹1,15,600): Payments made from own funds lacked proper payment vouchers and receipts.

Uncollected Profession Tax: Failure to collect profession tax from employees of Villoonni St. Joseph's English Medium School and local financial institutions.
Unaccounted Timber Sales: ₹19,500 was spent on cutting hazardous trees, but the timber was not auctioned to credit funds to the Panchayat.
Incomplete Asset Register: Values of land, vehicles, and other fixed assets were not properly accounted for or updated in the Asset Register.
Pencil Program Funds: ₹8,672 spent through Kudumbashree for a summer camp was not claimed back from KILA.
Procurement Discrepancies: Cots for senior citizens were procured through multiple tenders at different rates and quality standards, violating uniform procurement norms.

Financial Management: Implement proper timeline tracking for developmental projects to avoid fund lapse at year-end.
Immediate Recovery: Initiate recovery procedures for the loss amount of ₹41,925 from the designated officers.
Rectification Meeting: The Panchayat committee must convene a special meeting to resolve the disallowed amount of ₹1.12 crore by submitting missing documents and obtaining necessary approvals.