Panchayat:Repo18/vol1-page0962

(3) An officer not below the rank of a Deputy Director shall have authority to make surprise inspection of the stock and stores kept by a local authority specified in the Schedule.
(4) The Director shall have authority to verify the cash balance of the fund at the time of audit and inspection.

7. Manner in which audit is to be conducted.- The auditor shall conduct the audit annually and at such intervals as may be decided by the Director or may conduct concurrent audit of such of those local authorities as are found necessary under the provisions of any law governing them or as may be decided by the Director in Consultation with the Government.

8. Auditor to be deemed to be public servant- An auditor shall, for the purpose of powers and duties Conferred and imposed on him by or under this Act, be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (CentralAct 45 of 1860).

9. Liability of local authorities to prepare and present accounts for audit- (1) The accounts of a local authority or a local fund included in the Schedule relating to a financial year shall be prepared or caused to be prepared by the Executive authority, in such form and in such manner as may be prescribed, and presented for audit within four months of the close of that financial year.

(2) Where an Executive authority makes default in the preparation and presentation of accounts for audit within the period specified under sub-section (1), he shall be punishable, on conviction, with fine which may extend to three thousand rupees but which shall not be less than one thousand rupees;
Provided that the court may, for any adequate and special reasons to be recorded in the judgment, impose a fine of less than one thousand rupees.
(3) No proceedings under sub-section (2) shall be taken by the Director without giving the person affected thereby an opportunity to show cause, within fifteen days, why such proceedings should not be taken against him.

10. Completion of audit of accounts.-The audit of the accounts prepared and presented for audit under section 9 shall be completed by the auditor within six months of the date of its presentation for audit, failing which the officer responsible for the audit shall be liable to be proceeded against under the provisions of the Kerala Civil Services (Classification, Control and Appeal) Rules,1960.

11. Power of auditor to require production of accounts and attendance of persons.- (1) For the purpose of an audit under this Act, an auditor may

           (a) requiring in writing, the production at the place of audit, such Vouchers, Statements, returns, correspondences, notes or any other documents the perusal or examination of which he believes to be necessary the elucidation of the accounts;
           (b) require in writing, any employee of the local authority accountable for or having the Custody or control of Such vouchers, statements, returns, correspondences, notes or other documents or any person having directly or indirectly, any share or interest in any contract with or under the local authority to appear in person before him at the head office of that local authority or at the place of audit and answer any question and require any person so appearing to make and sign a declaration with respect to Such document or to prepare and furnish, any statement relating thereto; and 
           (c) in the event of any explanation being required from any officer or member of a local authority, in writing, invite such person and shall in writing, specify the points on which his explanation is required
(2) The auditor may, in any requisition made under sub-section (1), fix a reasonable period of not less than three days within which the said requisition shall be complied with. 
(3) The auditor shall give notice in writing to the Executive authority of the institution concerned at least two weeks before the date on which he proposes to commence the audit:
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