Annual Financial Statement (AFS)
A.F.S (AFS)
The Annual Financial Statement (A.F.S) is the yearly financial report prepared by recording all the financial transactions of a gram panchayat for a financial year. It is an official document that clearly presents the panchayat's income, expenditures, assets, liabilities, and financial status.
The A.F.S report includes details of income such as tax revenue, government grants, project funds, license fees, as well as expenditures like development activities, salaries, welfare schemes, and infrastructure construction. It also records information about the panchayat's bank deposits, outstanding dues, fixed assets, loans, and so on.
Preparing the A.F.S is mandatory for transparent and accountable financial governance. It helps evaluate the financial efficiency of the panchayat governance committee and plan future projects. The A.F.S also serves as a key document for audit procedures and government inspections.