Audit Report 2020-21
Arpookara Grama Panchayat Audit Report (2020–2021)
1. 💰 Financial Position & Budget Overview
- Total Receipts: ₹10,05,24,766 (including an opening balance of ₹1,89,03,024).
- Total Expenditure: ₹9,17,75,548.
- Closing Balance: ₹87,49,218.
- Operational Loss: An operational loss of ₹72,75,515 was recorded as per the Income and Expenditure statement for the year.
2. 🏗️ Annual Plan Implementation & Lapsed Funds
- Project Execution: Out of 263 approved projects, only 202 projects were implemented.
- Fund Utilization: Only ₹6.83 crore was utilized out of the allocated ₹12.72 crore, representing a plan expenditure rate of just 53.69%.
- Lapsed Funds: Due to delays in implementation and treasury restrictions, an allocated amount of ₹1,07,30,017 lapsed and was lost.
3. ⚠️ Key Irregularities & Audit Findings
A) Excess Payments & Omission of Penalties:
- Medical College Bus Stand Renovation: An excess payment of ₹7,104 was disbursed to the contractor due to failure to deduct the quoted tender reduction of 8.2% from the bill.
- Road Works: Penalties were not imposed or recovered from contractors who failed to enter into agreements or complete works within the stipulated timeframe without proper justification.
B) Audited Disallowances:
A total amount of ₹32,61,494 was disallowed during the audit due to various procedural and financial lapses:
- Maveli Store Rent: ₹1,34,100 was disallowed as rent was paid without obtaining the mandatory valuation certificate from the Public Works Department (PWD).
- Procurement of Seedlings: ₹7,51,490 was disallowed for purchasing seedlings from the Kerala Agro Industries Corporation without verifying required eligibility and approvals.
- Missing Utilization Certificates: ₹10,78,020 transferred to institutions including KSEB, Kerala Water Authority, and the District Planning Office was disallowed due to non-submission of Utilization Certificates.
C) Revenue Collection Deficiencies:
- Profession Tax: Profession tax was not effectively collected from several institutions and employees, including those under the Medical College jurisdiction.
- Trade Licenses: Out of over 1,200 commercial establishments operating within the Panchayat, trade licenses were issued to only 241.
- Property Tax: Commercial buildings and hostels were improperly classified as residential properties, leading to significant revenue under-assessment.
D) Asset & Infrastructure Lapses:
- Anganwadis: 23 out of 27 Anganwadis in the Panchayat lack their own land or building and operate out of rented premises.
- Asset Register: Panchayat-owned properties have not been systematically surveyed, mutated, or updated in the official asset register.
📌 Corrective Measures & Recommendations
- Recovery: The excess payment of ₹7,104 must be recovered immediately from the responsible officials or contractor.
- Compliance: Required Utilization Certificates and statutory sanctions must be submitted to clear the disallowed amounts.
- Revenue Enhancement: Urgent steps must be taken to streamline trade licensing, property tax reassessment, and profession tax collection to boost internal revenue.
- Mandatory Timeline: The Panchayat must convene a special meeting within one month to discuss this report and submit an Action Taken Report (ATR) to the Audit Office within two months.