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62. Annual Financial Statements

  1. The Secretary shall cause to prepare, the Financial Statements for the preceding year in respect of the accounts of the Panchayat,
    in the formats prescribed.
  2. The Secretary shall be responsible for the preparation of Financial Statements which shall consist of the following:
    1. Balance Sheet-Assets, Liabilities and Reserve heads shall be posted from the Trial Balance to the Balance Sheet.
    2. Income and Expenditure Statement-This Statement shall include all the income earned during the year whether actually received or not and all the expenditure incurred whether actually paid or not.
    3. Statement of Cash flows-This Statement shall include cash flows from operating, investing and financing activities in a manner, which is most appropriate to the activities of the Panchayat.
    4. Receipts and Payments Statement-This statement shall record all receipts and payments on cash basis
    5. Notes to Accounts-This shall comprise of Statement of Significant Accounting Policies, Statement on Contingent Liabilities, Subsidy Report and Other Disclosures
    6. Key Ratios -This shall mean the financial ratios as prescribed in the Accounts Manual.
  3. Comparative amounts shall be entered on the Financial Statements for the preceding year except, in the case of the first year to which these rule apply.
  4. All amounts in the Financial Statements shall be rounded off to a rupee. In respect of all amounts including tax, cess, fees and surcharge collected by the Panchayat and all other amounts accounted to the Panchayat Fund, the fraction of a rupee shall be rounded off to the next higher rupee as prescribed under Explanation below Section 273(2) of the Act. In respect of the expenditures, fraction of a rupee
    below fifty paisa shall be rounded off to the immediately lower rupee and above fifty paisa to the next higher rupee.
  5. The Annual Financial Statements shall be approved by the Panchayat and the same shall be signed by the Secretary and the President after which it shall be submitted to the Auditor, on or before 15th May of the succeeding year.
  6. In case the Panchayat fails in preparing and adopting the Annual Financial Statements within the time limit prescribed by the rules, action shall be initiated under Section 9(2) of the Kerala Local Fund Audit Act 1994 and any other action as the Government may deem fit.