Audit Reports
Ummannoor Grama Panchayat
Audit Reports
Audit Reports play a crucial role in ensuring the financial discipline and transparency of Grama Panchayats in Kerala. It is the process of verifying whether the income and expenditure accounts of the Panchayat are accurate and whether government funds are utilized according to the prescribed norms.
Mainly, two types of audits are conducted in the Panchayats.
Local Fund Audit
This audit is conducted by the Local Fund Audit Department of the State Government. Its main objective is to examine the final accounts of each financial year and submit a report.
AG Audit (Accountant General)
The AG Audit is conducted under the direction of the Comptroller and Auditor General (CAG) regarding the utilization of Central and State funds.
Information Typically Included in an Audit Report
Financial Status: Detailed accounts of the Panchayat's total income, taxes, grants, and various expenditures.
Irregularities / Objections: Absence of bills and vouchers, diversion of funds, lapses in tender procedures, etc.
Surcharge (Recovery of Loss): Instructions to recover the amount from those responsible if the Panchayat has incurred a financial loss.
Administrative Suggestions: Improvements to be made in maintaining accounts and implementing projects.
Legal Provisions
As per the provisions in Section 13 of the Kerala Local Fund Audit Act 1994, Rule 18 of the Kerala Local Fund Audit Rules 1996, and Section 215(4) of the Kerala Panchayat Raj Act 1994, the audit reports resulting from the examination of the financial statements of the Grama Panchayat for each financial year are made available for further follow-up actions prescribed in Rule 23(1) of the Kerala Local Fund Audit Rules 1996.
