Pallichal
Grama Panchayat

1. Receipts and Payments Account

This section is a summary of all transactions involving cash inflows (receipts) and outflows (payments) of the Panchayat during a financial year.

Includes:
Taxes, grants, loan repayments, project expenditures, administrative expenses, etc., are recorded in this section.

2. Income and Expenditure Account

This section shows the actual financial performance of the Panchayat over the year. It includes not only the cash transactions but also the amounts receivable and payable, depreciation of assets, etc., to determine whether there is a surplus or deficit.

3. Balance Sheet (Statement of Assets and Liabilities)

This section presents a snapshot of the Panchayat's financial position on a specific date (usually at the end of the financial year), detailing the assets (buildings, land, equipment, etc.) owned and the liabilities (loans, debts, etc.) owed.

Importance

Auditing: Government agencies such as the Kerala State Audit Department (KSAD) use the AFS to verify whether the Panchayat’s financial transactions are legally compliant.

Planning: It helps in preparing the budget for the next year and in assessing how much was spent on various projects.

Public Review: Since it provides a clear picture of the Panchayat's financial status to the public and ward sabhas, it is essential for ensuring accountability