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This Report for the year ended March 2017 has been prepared for submission to the Governor of Odisha under CAG’s DPC Act, 1971. The Report contains significant results of the audit of the Panchayati Raj Institutions and Urban Local Bodies in the State. The issues observed in the course of test audit for the period 2016-17 as well as those issues, which came to notice in earlier years but could not be dealt with in the previous Reports, have also been included, wherever necessary. The audit has been conducted in conformity with auditing standards issued by the Comptroller and Auditor General of India.