Vadakkenchery
Grama Panchayat

Audit Report for the Financial Year 2024-2025 of Vadakkenchery Grama Panchayat (Palakkad District) issued by the Kerala State Audit Department.

📅 Document & General Overview

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  Auditing Agency: District Audit Office, Kerala State Audit Department, Palakkad.

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  Audit Period: The audit covered the period from November 5, 2025, to November 15, 2025.

• Responsible Executive Authorities (2024-2025): * Smt. Lisy Suresh (President) 

  • Smt. Radhika K. (Secretary) 

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  Audit Opinion: The annual financial statements present a true and fair view of the financial state as of March 31, 2025, subject to a qualified opinion (വിശേഷണങ്ങളോട് കൂടിയ അഭിപ്രായം) due to specific discrepancies found in the financial logs.

📉 Major Financial Anomalies & Observations

The auditors highlighted several lapses in accounting regulations and cash management:

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  Inaccurate Cash Flow Statement: The Net Increase/Decrease in Cash and Cash Equivalents was recorded as ₹11,458,509, whereas the net cash generated from operating, investing, and financing activities stood at ₹39,460,509. These numbers failed to reconcile.

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  Stale Cheques: A sum of ₹648,222 was moved to the "Liability in Respect of Stale Cheques" heading without providing requisite itemized details.

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  Asset Register Deficiencies: The fixed asset register was not updated, making it impossible to verify the true valuation of fixed assets, accumulated depreciation, and capital infrastructure expenses.

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  Bank/Treasury Reconciliation: Reconciliation of bank and treasury accounts remained pending from April 2025 to October 2025.

🔍 Specific Project Irregularities & Held/Disallowed Funds

The audit raised major concerns over fund misallocations, lack of records, and financial losses totaling ₹170,620 in clear losses and ₹968,278 in held/objected funds:

1. Direct Financial Losses (ചെലവിനങ്ങളിലുള്ള നഷ്ടം)

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  Palliative Care Nurse Overpayment (Paragraph 3-2): A double payment of ₹139,620 was erroneously issued directly to beneficiaries for vehicle rentals, food, and honorariums instead of utilizing project funds as a recoupment mechanism. The medical officer was held accountable.

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  Drip Irrigation System Maintenance (Paragraph 3-3): ₹25,000 assigned for annual maintenance contracts was explicitly disallowed. There was no legal contract, no maintenance records, and only 15 flower pots out of the targeted 300 drippers existed on-site before the system was altogether removed.

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  Anganwadi Excess Rent (Paragraph 3-1): ₹6,000 in excess rent was paid over 12 months to an Anganwadi building owner against what they formally acknowledged in receipts.

2. Held/Objected Expenditures (തടസ്സപ്പെടുത്തിയ തുക)

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  Welfare Purchases & Distributed Gaps: * ₹12,900 was held from an elderly cot distribution project because 3 out of 83 cots purchased (valued at ₹4,300 each) were never distributed.

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    ₹184,500 was questioned regarding a security equipment project for female MGNREGS workers, where goods like tarpaulins and gumboots worth ₹95,139 were excessively bought in violation of government guidelines. Gumboots and gloves were found dumped in sacks.

• Administrative & Staffing Concerns Without Government Sanction:

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    ₹180,280 spent on hiring a Railway Reservation Counter Clerk.

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    ₹150,800 spent on hiring a temporary Physiotherapist at the Ayurveda hospital without explicit government authority.

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  Missing Implementation Records: Expenditures on a student awareness class for learning disabilities (₹65,963) , child sports training (₹106,400) , and caregiving facilities at Sayamprabha Home (₹97,785) were blocked due to standard guidelines being violated or missing bills and vouchers.

📈 Revenue & Tax Deficiencies

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  Profession Tax Slippages (തൊഴിൽനികുതി): The local body failed to collect employee profession taxes from multiple licensed businesses (e.g., fuel stations and automotive showrooms). Additionally, the revised state slabs effective from October 1, 2024, were ignored by multiple firms, causing collection shortfalls.

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  Entertainment Tax (വിനോദ നികുതി): Local cinema theaters (KAM Movies, Dream Big Cinemas, Kankankavil Cinemas) were operating without the required Secretary-issued licenses. Furthermore, daily collection reports and GST returns (GSTR 3B) were not collected, making it impossible to audit the exact entertainment tax liabilities.

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  Unused Beneficiary Contributions: A sum of ₹1,130,398 collected as beneficiary contributions sat unutilized without project formulations or refunds.

📊 Summary of Final Financial Statements (2024-2025)

1. Income and Expenditure Statement

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  Total Income: ₹262,551,217.00 

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    Major Source: Revenue Grants & Subsidies (₹225,956,869.00) 

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    Tax Revenue: ₹17,577,957.00 

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  Total Expenditure: ₹259,056,431.00 

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    Establishment Expenses: ₹22,936,967.00 

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    Decentralized Service Sector Plans: ₹60,361,847.00 

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    Transferred Institutions/State Schemes: ₹83,244,700.00 

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  Net Balance Sheet Deficit: -₹27,313,743.00 (carried over to the Panchayat fund).

2. Receipts and Payments Summary

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  Grand Total Receipts (including Opening Bank/Cash): ₹117,866,969.50 

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  Grand Total Payments: ₹117,866,969.50 

• Closing Balance: Bank (₹30,472,159.50) | Cash (₹308,226.00).

3. Balance Sheet Summary

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  Total Liabilities: ₹248,380,146.50 

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  Total Assets: ₹248,380,146.50 

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    Fixed Assets (Net after Depreciation): ₹171,040,851.00 

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    Cash & Bank Balance: ₹30,780,385.50