Mangalpady Grama Panchayat - Audit Report (2024-2025)

Kerala State Audit Department, District Audit Office, Kasaragod

  • Report Number: KSA/KSD 5/45/2026

  • Date: 06/02/2026

  • Audit Period: 16-01-2026 to 22-01-2026

  • Responsible Officials (At the time of Audit): Shri. Sureshbabu K.V (Deputy Director), Shri. Srinivasan P.V (Panchayat Secretary), Smt. Fathimath Rubina (President).

1. Financial Overview

The total income and expenditure figures of Mangalpady Grama Panchayat for the financial year 2024-2025 are as follows:

  • Total Income: ₹ 14,57,58,348/- (Fourteen Crore Fifty-Seven Lakh Fifty Thousand Three Hundred and Forty-Eight Rupees)

  • Total Expenditure: ₹ 12,62,51,810/- (Twelve Crore Sixty-Two Lakh Fifty One Thousand Eight Hundred and Ten Rupees)

  • Amount Objected in Audit: ₹ 1,66,60,983/-

  • Amount Disallowed in Audit: ₹ 40,200/-

  • Loss incurred in Revenue Items: ₹ 5,350/-

2. Major Accounting Anomalies

  • Delay in Submitting Accounts: There has been a serious delay in submitting the Annual Financial Statements within the stipulated time frame as prescribed by the accounting rules.

  • Non-Implementation of Bank Reconciliation: Significant discrepancies are observed between the balance in the bank passbook and the balance in the Panchayat accounts. Several cheques that have not been cashed even after the expiry of the three-month validity period are included in the reconciliation statement. These have not been regularized in a timely manner.

  • Asset Register: The existing asset registers of the Panchayat have not been properly updated.

  • Fixed Deposit Register: The investment register regarding fixed deposits is not being maintained. The interest income accrued from fixed deposits has not been included in the annual accounts of the Panchayat.

3. Revenue Losses & Violations

  • Loss of General Purpose Fund: Due to the failure to credit an installment of the General Purpose Fund into the treasury account on time, the Panchayat suffered a massive revenue loss of ₹ 28,07,500/-.

  • Holding Funds in Current Accounts: By keeping Panchayat funds in non-interest-bearing current accounts, a large amount of potential interest income was lost.

  • Property Tax Arrears: A huge amount under the head of Property Tax remains uncollected as arrears. Property tax has not been levied on sports turfs. Additionally, financial loss was incurred due to the incorrect categorization and assessment of tax on quarters buildings.

  • Profession Tax: Anomalies were found in the demand and collection of profession tax, resulting in a loss of ₹ 5,350, which has been directed to be recovered from the responsible secretaries.

4. Discrepancies in Project Implementation

  • Installation of Street Lights: An expenditure of ₹ 24,96,409/- regarding the installation of street lights without complying with government guidelines was objected to by the audit.

  • Purchase of Utensils for Schools: An excess expenditure of ₹ 40,200/- incurred by purchasing utensils at rates higher than the approved tender rate was completely disallowed by the audit. The school Headmaster was found responsible for this.

  • SSK (Samagra Shiksha Kerala) Share: An expenditure of ₹ 32,71,525/- was objected to due to the non-availability of accurate utilization details and the violation of government directives.

  • 'Take a Break' Project: An expenditure of ₹ 9,40,000/- was objected to as the construction of the public toilet and wayside rest station was not completed on time.

  • GIS Mapping: An expenditure of ₹ 16,80,562/- was objected to because the GIS mapping works intended for property tax revision were not completed.

  • Non-Deduction of Income Tax (TDS): It was found that the mandatory 2% Income Tax (TDS) was not deducted at source when funds were disbursed to an institution named 'Green Worms' for solid waste management.

5. Administrative Observations

  • Schools Operating Without Fitness Certificates: Even though some schools within the Panchayat limits are operating without the mandatory Fitness Certificates, the Panchayat governing body has failed to take legal action.

  • Daily Wage Appointments: Despite the non-existence of sanctioned posts, daily wage/contract appointments were made in violation of government orders (G.O.(Rt) No.250/2022/LSGD).

  • Welfare Schemes for Persons with Disabilities: Accurate data registers were not maintained and legally prescribed medical camps were not conducted for the distribution of scholarships and assistive devices to persons with disabilities.

Audit Directives

  1. Convening a Special Meeting: The Panchayat governing body must convene a special meeting within one month of receiving the audit report to discuss the findings in detail.

  2. Public Notice: This report and the subsequent decisions taken by the Panchayat on it must be published for the information of the general public.

  3. Submission of Rectification Report: A detailed action taken report (Rectification Report) addressing and resolving the anomalies and objections raised in the report must be submitted to the Audit Office within two months.