Ala
Grama Panchayat

la Grama Panchayath

Audit Report 2024-25 Analysis Report

The report is based on the audit conducted by the Kerala State Audit Department for the financial year 2024-25. The report assesses the efficiency of the panchayat's financial management, project management, tax collection, asset management and waste management activities.

1. Financial situation

The financial position of the Panchayat during the year 2024-25 is as under:

The report notes that although the panchayat has a substantial allocation at the end of the year, it has not been able to utilise the full available funds effectively.

2. Review of Project Implementation

During the year 2024-25:

• Number of projects approved- 208
• Projects Implemented – 118
• Partially implemented – 42
• Not implemented – 48
• Project completion rate – 56.7%

Only more than half of the approved projects have been completed. This underscores the need to increase efficiency in project implementation.

3. Utilization of Development Funds

While most of the development funds have been utilized, some grants remain unspent.

• Development Fund (General) – 100% utilization
• Development Fund (SCP) – 100% utilization
• Maintenance Grant (Road) – Majority Utilization
• Maintenance Grant (Non-Road) – Partial Utilization
• Approximately ₹42.70 lakh is left unspent in the CFC Tied Grant.

4. MGNREGS

Under Mahatma Gandhi National Rural Employment Guarantee Scheme :

• Total Expenditure – ₹1.78 Crore
• Direct Benefit Transfer to Beneficiaries – ₹1.69 crore
• Administrative expenses – Rs 8.59 lakh

The report assesses that the MGNREGA scheme has been effectively implemented in the panchayat.

5. Social Security Pensions

Amount disbursed through various pension schemes during the year 2024-25:

The Panchayat can be considered to be doing very well in the field of social security.

6. Key discrepancies found in the audit

(a) Discrepancies in Figures

• Differences between ACR and AFS were found in CFC grant inflows.
• There is also a difference in the documents between Development Fund and CFC grant costs.
• The reason for the differences has not been explained.

(b) Property tax reform has not been completed

• The property tax reform work proposed by the government has not been fully completed.
• There is a possibility of loss of revenue for the panchayat as the building information is not updated in the software.

(c) Low Employment Tax

• Employees of many establishments have not been charged labour tax at the revised rates.
• The audit found that the additional amount to be collected by the panchayat was Rs 12,520.

(d) No tax is levied on mobile towers

• There is no record of property tax being levied on the telecommunication tower installed by the Indus Tower.
• The audit suggested that the assessment of the tax should be completed immediately.

(e) Lack of clarity in loan accounts

• The documents were not made available to verify the details of the loan receipt of Rs 35.20 lakh.
• The audit raised concerns about financial transparency.

7. Failure in Waste Management Plan

The panchayat spent ₹5.45 lakh to buy a hydraulic bailing machine for the MCF.

But:

• The machine has not yet been installed.
• A three-phase power connection has not been provided.
• No conveyor belt has been purchased.
• The equipment has been kept unused.

Following this, an expenditure of Rs 5,44,979 has been disrupted by the audit. This is one of the most serious findings in the report.

8. Key Benefits of Audit

Following the intervention of the audit:

• The illegal construction of an educational institution has been regularized.
• The panchayat collected Rs 8,52,171 as regularization fee.

This resulted in additional revenue for the Panchayat.

Conclusion

During the year 2024-25, Ala Gram Panchayat has performed satisfactorily in terms of social security schemes, MGNREGA and utilization of development funds. However, the project completion rate is only 56.7%. Issues such as incomplete property tax reform, lapses in labour tax collection, non-levy of mobile tower tax, lack of clarity in loan accounts, non-commissioning of MCF bailing machine etc. underscore the need to improve the administrative and financial efficiency of the Panchayat. At the same time, the effective implementation of social security pensions and employment guarantee scheme can be assessed as a strong area of the panchayat.