2024-25 AUDIT REPORT
Vythiri Grama Panchayat
Statutory Audit Report Summary (FY 2024 - 2025)
1. General Information & Governing Body
The statutory audit for the financial year 2024-2025 was officially conducted from September 9, 2025, to September 19, 2025, under the administration of Panchayat President Mr. Vijesh M. V. and Secretary Mr. Sajish K. S. The audit team noted a serious lack of administrative responsiveness; out of 37 formal audit enquiry slips issued to the local body regarding detected irregularities, official replies were submitted for only 8 queries.
2. Financial Review & Budget Estimates
According to the revised budget estimates, the Panchayat projected a total expected revenue of ₹31,42,98,068 against a total expected expenditure of ₹30,95,14,600. However, the actual annual financial statement revealed an opening balance of ₹4,29,73,822, with total receipts touching ₹8,49,92,914 and total expenditures settling at ₹6,69,91,250, leaving a final closing balance of ₹6,09,75,486.
3. Project Implementation & Fund Utilization
The development execution rate remained low, as only 189 projects (58.33%) were implemented out of the 324 projects officially approved by the Panchayat. In terms of financial milestones, out of the total allocated development budget of ₹18.38 crore, only ₹7.32 crore (39.83%) was utilized. On the welfare front, social security pensions were distributed under major heads: ₹2.32 crore for Old Age Pension (1,574 beneficiaries), ₹1.24 crore for Widow Pension (809 beneficiaries), and ₹33.42 lakh for Disability Pension (214 beneficiaries).
4. Major Accounting Irregularities & Observations
Serious discrepancies were detected in the cash flow statement, where the current year's cash flow (-₹68,49,038) completely failed to reconcile with the actual difference between the opening and closing balances (showing a gap of ₹1,80,01,664). Furthermore, stale cheques older than three months have not been replaced or adjusted. Bank reconciliation gaps persist as the annual accounts show ₹2,10,160 in the Canara Bank account while the bank book reflects zero. Additionally, no physical verification has been conducted for fixed assets, and a critical revenue of ₹7,44,710 for E-Tender fee arrears from the LSGD Executive Engineer’s account was omitted entirely.
5. Revenue Leakage & Local Tax Irregularities
Although ₹5,10,000 was collected as entertainment tax, several prominent amusement destinations like Wayanad Ultra Park and Wayanad Adventure Park failed to remit their shares. High-risk adventure tourism structures in private resorts (such as glass bridges, zip lines, and bungee jumping) are operating without mandatory municipal building permits or safety compliance, creating severe hazards and massive revenue losses. Tracking unauthorized modifications also remains hindered due to the non-display of building numbers on luxury villas and resorts (such as Upavan, CGH Earth, and Abad Brookside), while major local plantation estates have defaulted on their second half-yearly profession tax.
6. Immediate Next Steps & Timelines
The governing council must convene a special mandatory meeting within one month of receiving this audit report to deliberate on these specific findings and publish all decisions for public awareness. Consequently, a comprehensive statutory rectification report addressing and clearing each audit objection must be formally submitted to the District Audit Office within two months.
