1. Major Audit Findings & Irregularities

• Deficiencies in Financial Statements: Basic ratios and major accounting policies were omitted from the annual financial statements. The cash flow statement amount does not reconcile with the difference between the opening and closing balances.

• Bank Accounts & Reconciliation: Separate bank accounts were not maintained for special-purpose grants. Reconciliation for several bank/treasury accounts was not conducted properly.
• Deposits & Advances: Lapsed deposits pending since 2005-06 have not been credited back to the Panchayat fund. Lack of clarity and lapses were found in the settlement of festival and travel advances issued to employees.
• Loss Due to Bounced Cheques: Lapses and delays were observed in levying bank charges/penalties and taking cancellation measures when cheques received towards property tax bounced.
• Tax Leakage: Profession tax was not fully recovered from employees working in licensed establishments and resorts. Property tax losses occurred due to issuing different building numbers to structures with identical usage patterns.
• River Puramboke Survey: Survey procedures to demarcate and protect river puramboke (government buffer) land within the Panchayat limit have not been completed.

2. Fund & Project Review

• Public Works: Out of 105 public works under the Assistant Engineer, 33 works were left unexecuted.
• Plan Allocation & Spillover: Ineffective utilization of funds resulted in missed development opportunities. A recurring pattern of spillover projects becoming spillover again in subsequent years was observed.

3. MGNREGS & Welfare Pensions

• Discrepancies were noted in the recorded year-end closing balance of ₹2,12,534/- in the MGNREGS account.
• Administrative expenses of staff paid out of the General Fund remain to be reimbursed.

4. General Recommendations & Directives

1. Ensure deposit, advance, and stock registers are systematically updated and maintained.
2. Initiate urgent recovery measures for building rent and tax arrears.
3. Within 1 Month: A special committee meeting must be convened to discuss the findings within 1 month of receiving this report.
4. Within 2 Months: Audit objections must be rectified, and a compliance reply report submitted to the Audit Office.