(This does not form part of the notification, but is intended to indicate its general purport)
Government of Kerala, as part of its policy for improving the accounting system in Panchayats, proposes to introduce Accrual based Double Entry System of Accounting. The new system of accounting provides relevant accounting principles, procedures and guidelines to ensure complete and timely recording of the financial transactions of the Panchayats and produce fair and relevant financial reports. This policy will enable Panchayats to be more transparent and provide more appropriate financial information to the stakeholders and improve governance, keeping in mind the important citizen centric functions discharged by them. At present the Panchayats are following the Cash based Single Entry System of Accounting as envisaged under the Kerala Panchayat (Accounts) Rules, 1965 and the instructions under G.O.(P)No.319/2003/Fin, dtd. 12th June 2003. To enable the transition to Accrual based Double Entry System of Accounting, it is essential to prescribe new rules that shall govern the accounting in the new system. Government have decided to issue the Kerala Panchayat Raj (Accounts) Rules, 2011 in supersession of the Kerala Panchayat (Accounts) Rules, 1965.
This notification is intended to achieve the above purpose.