Audit Report 2022-23

## General Information
  • Authority: District Audit Office, Thrissur, Kerala State Audit Department.
  • Audit Period: Financial Year 2022–2023 (Audit executed between October 30, 2023, and November 6, 2023).
  • Scope: Review of tax collections, fund withdrawals, implementation registers, and cash balances. Out of 30 audit queries issued, only 7 received replies.
## Major Financial & Accounting Discrepancies
  • Mismatched Records: Significant financial data mismatches were found between the annual accounts, the Cash Flow Statement, and the Sanchaya (property tax) and ILGMS software systems.
  • Tax Discrepancies: Property taxes for residential and non-residential buildings showed variation between actual receipts and DCB registers. Certain unauthorized and newly completed buildings were either undertaxed or not demanded/collected at all.
  • Poor Register Maintenance: Key registers—including Profession Tax, License Demand, Land Lease, and Building Permits—were not updated properly or reconciled monthly.
  • Depreciation & Asset Issues: Depreciation was calculated without supporting worksheets, and in some cases, calculated for items not registered as assets.
## Project & Scheme Implementation Lapses
  • Uninstalled Machinery: A plastic bailing machine worth ₹5,00,000 was purchased for the clean-up center but remained uninstalled and non-operational, risking warranty expiration.
  • Missing Certificates & Files: Multiple construction/project completion certificates and vehicle/building permit files were not produced for verification.
  • Procurement Lapses: Specifications and comparative statements were missing in procurement decisions for office items like UPS batteries, water ATMs, and school printers.
## Welfare & Welfare Fund Discrepancies
  • Social Security Pension Errors: Inactive tracking allowed deceased individuals to remain active on pension lists. Ineligible service/family pensioners were also found receiving social security benefits.
  • GST TDS Non-Deduction: The mandatory 1% GST TDS was not deducted from suppliers during the purchase of laptops for SC and fisherfolk students, nor for Anganwadi nutritional supplements.
  • Undelivered Medicines: Full quantities of medicines paid for by the Homeo Dispensary (₹3,00,000 advanced) and PHC were not completely delivered by suppliers.
## Next Steps & Directives

The Panchayat has been directed to hold a special meeting within one month to discuss the findings publicly and must submit a rectification action report to the Audit Department within two months