THE KERALA LOCAL FUND AUDIT RULES, 1996

THE KERALA LOCAL FUND AUDIT RULES, 1996

In exercise of the powers conferred by the section 28 of the Kerala Local Fund Audit Act, 1994 (14 of 1994) the Government of Kerala hereby make the following Rules, namely:-

RULES

1. Short title and commencement.- (1) These rules may be called the Kerala Local Fund Audit Rules, 1996. (2) They shall come into force at once.

2. Definitions.- In these Rules, unless the context otherwise requires,-

(a) 'Act means the Kerala Local Fund Audit Act, 1994;

(b) 'Form' means the form appended to these rules;

(c) 'Local audit' means audit conducted at the office of any institution in the schedule as per the approved programmes of auditors;

(d) 'Report' means report sent under section 13 of the Act and includes report sent by the auditor on Conduct of special or test audit of accounts any institution for a specified period, included in the Schedule;

(e) 'Section' means a section of the Act;

(f) Words and expressions used but not defined in these rules shall have the meaning assigned to them in the Act.

3. Audit of Accounts.- The accounts of a local authorities whose accounts are subject to audit under Sections 4 and 5 and the schedule to the Act shall be audited by auditors of the Kerala Local Fund Audit Department, who are empowered to perform the functions of an auditor under clause (a) of section 2 of the Act, under the direction and control of the Director of Local Fund Audit: Provided that nothing in this rule shall prevent the Director from carrying out himself an inspection or audit of accounts of any local authority included in the Schedule at his discretion.

4. Audit of accounts of stock and store and verification of cash balance.- The auditor shall have authority to audit and report on the accounts of stock and stores relating to public works, plant and machinery, money value, forms etc. kept by the local authorities specified in the schedule, by virtue of powers conferred under section 6 of the Act. At the commencement of, or during, the audit, or at the time of inspection, the auditor shall verify the cash balances including the unspent balance of permanent or other advances and the securities held by the local authority specified in the schedule.

5. Notice of commencement of audit.-Notice of audit under sub-section (3) of section 11 of the Act, shall be given in Form I or I (A), as the case may be at least fourteen days in advance.

6. Procedure of audit- (1) Except in cases where the director, or the officers authorised by him, in consultation with the Head of Office of the local authority, decides otherwise, the auditor shall, for the purpose of conducting audit, attend the office of the local authority during office hours.

(2) The local authority shall make suitable arrangement to enable the auditor to conduct the audit.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

(3) The auditor shall not remove any book, voucher or document from the office of the local authority whose accounts are being audited by him:

Provided that if, in case of fraud or for other genuine reason, he considers it necessary to kept any book, voucher or other document in his possession, he may remove it after giving a receipt thereof and shall forthwith report the matter to his Controlling authority.

7. Manner of audit.- (1) The system of concurrent audit shall be followed in the case of the local authorities/local funds where such system of audit was in vogue at the Commencement of this Act. In the case of all other local authorities/local funds the accounts shall be audited annually in arrears during local audit: -

Provided that the Government shall, in consultation with the Director, introduce the system of concurrent audit in such of those local authorities/local funds as are found necessary under the provisions of any law governing them.

(2) The audit of accounts of a local authority/local fund shall be a detailed audit unless otherwise decided by the Director: Provided that the Director shall when the circumstances so warrant dispense with detailed audit of any account or a class of transactions and apply such limited check in relation to such accounts or class of transactions as he may deem fit.

(3) The auditors shall take up the audit of any local authority/local fund for a period shorter than one accounting year or the audit of any particular transaction or a series of transactions as they may deem fit if the circumstances so warrant.

(4) The auditors shall look into any other matter relating to the accounts of a local authority/ local fund as may be required by the Government and a report thereon shall be furnished to the officer authorised to receive it.

(5) The auditors shall have authority to visit any unit/zonal/division/sub division office or any other institution under the control of a local authority, local fund and to verify the books of accounts, stock and stores and connected records

(6) The auditors shall have authority to audit the accounts of any special fund maintained by a local authority/local fund and kept separate from the general funds of the institutions.

(7) In the case of Panchayats and Municipalities whose accounts are audited annually in local audit, the auditors shall at the time of such local audit check the details of collection of revenue, remittance of collection and withdrawals from accounts upto the date of commencement of audit and shall incorporate in the audit report the defects or loss of money detected in audit.

(8) The accounts of receipts and expenditure of Orphanages and poor homes are audited with a view to ascertain the extent of eligibility of the institutions for receiving grant from Government in each year and hence the audit of accounts of such institutions is confined to that extent.

(9) The accounts of Hindu Religious and Charitable Endowment Institutions in Malabar and Kasargode area whose annual income is not less than Ten thousand rupees shall be audited by the Director.

8. Manner of making requisition under section 11.- (1) The requisition referred to in clause (a) of sub-section (1) of section 11 of the Act, shall be made by the auditor in Form No. || and shall be sent to the Executive authority of the local authority/local fund in duplicate. An acknowledgement from the officer concerned with date of receipt, shall be obtained in the duplicate copy.

(2) A notice referred to in clause (b) of sub-section (1) of section 11 for personal appearance addressed to an employee of a local authority/local fund shall be made by the auditor in Form No. Ill, and shall be sent through the Executive authority, if the addressee is not the Executive authority

(3) The invitation issued in pursuance of clause (c) of sub-section (1) of Section 11 to any officer or member of a local authority/local fund shall be in the form of a letter addressed to such officer or member. A copy of every such letter shall be retained in the case file. The letter shall be sent either by registered post or by messenger, and in the latter case, an acknowledgement duly signed and dated shall be obtained in transit book. Every requisition or invitation under Section II shall be signed and dated by the auditor and shall specify a period not less than three days, within which, it shall be complied with.


Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

9. Report of non-compliance with requisition.- If a notice under clause (a) or clause (b) of sub-section (1) of Section 11 is not complied with, within the period specified therein the auditor shall send the papers to his Controlling authority, with a brief statement of facts, for further action.

10. Penalty for disobeying requisition under Section 11.- The proceedings in a court of law against an employee of a local authority/local fund for imposing the punishment referred to in section 12 of the Act shall be initiated by the auditor who is in charge of audit of accounts of the institutions concerned. For initiating the proceedings, such officer shall file a Written statement of facts constituting the offence before the court having jurisdiction over the area in which the headquarters of the institution concerned is situated. The show cause notice under Section 12 of the Act shall be issued by the officer who is in charge of audit of accounts of the institution concerned but who shall not be below the rank of a Deputy Director. The show cause notice issued under Section 12 shall be in Form IV appended to these rules.

11. Objection statement and replies thereof.- (1) All enquires which are necessary for the auditor to make in the course of audit and all remarks shall be made through an objection statement in Form V appended to these rules.

(2) The auditor shall issue such objection statements with his dated signature day by day, as the audit proceeds and shall obtain an acknowledgement from the Head of Office of the local authority/local fund with date of receipt.

(3) The auditor shall as far as practicable, issue separate objection statements for each department of the local authority/local fund so that the department concerned can proceed to take action as soon as objection statement is received:

Provided that the procedure in sub-rules (1) and (2) above shall be relaxed in the case of Municipalities, Panchayats and other local bodies, where only local audit is conducted.

(4) The objection statements, shall be returned within the time specified by the auditor with dated signature of the Head of Office of the local authority together with an explanation to the objection, or a statement of the action taken or proposed to be taken to settle the objections raised and, where necessary, shall also contain replies to the enduires made by the auditor.

(5) On receipt of the replies to the points raised by the auditor, he shall, wherever, necessary re-issue for further action, any items on which final or sufficient action hasnot been taken or on which enduires made have not been satisfactorily answered. Such re-issue shall be marked for further "remarks' in the objection statement in Form V.

(6) All objection statements issued during the course of audit shall be returned to the auditor within the time specified irrespective of the question whether all the objections have been fully answered or not.

12. Manner of Report of fraud or misappropriation or serious irregularities.- (1) When a fraud or misappropriation is detected or may reasonably be inferred from any suspicious circumstances, or there is very strong evidence to raise suspicion thereof, or where any serious irregularity is noticed in accounts, the auditor shall at once confidentially report the circumstances, in writing to the Executive authority (i.e. President, Vice-president, Chairman or Vice Chairman of the local authority, as the case may be) and also to the Director of Local Fund Audit.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

(2) When a fraud or misappropriation has been fully investigated by the auditor, he shall submit a complete report on the case to the Director, who shall send copies thereof either to the Controlling authority or the Government as the case may be:

Provided that where the Executive Authority (President/Vice President, Chairman/Vice Chairman etc.) or the Head of Office of a local authority is involved or there are grounds for suspecting his complicity in the fraud or misappropriation or the serious irregularities, neither the preliminary nor the complete report shall be sent to any of these officers.

13. Objections settled to be included in report in certain circumstances.- Objection which have been settled on the spot shall be included in the report, if the irregularities are of a serious nature or point to any defect in procedure or error in principle.

14. Draft audit report to be shown to the Executive authority on the close of audit - Draft audit reports of all institutions included in the Schedule shall be shown to the Executive authority of the respective institutions on the close of audit and proper acknowledgement shall be obtained in the draft audit report itself.

15. The form and the manner in which the accounts are to be prepared and presented for audit.- (1) (a) The annual accounts of a local authority/local fund prepared or caused to be prepared by the executive authority under sub-section (1) of Section 9 of the Act shall be in Form VI and VI (A) appended to these rules. The same shall containing the following details

(a) the opening balance for the year showing the balance in each bank/treasury account;

(b) a statement of receipts and payments under each head of account:

(c) the amount at the credit of the local authority/local fund at the end of the year showing the balance in each bank/treasury account;

(d) a statement showing the demand, collection and balance or revenue collection including arrear Collection;

(e) a statement of investments made;

(f) a list of grants received during the year;

(g) a list of loans availed;

(h) a statement showing the outstanding debts at the beginning of the year, repayment made during the year and outstanding debts at the end of the year, and

(i) a statement of assets and liabilities as on the close of the accounting year.

 (b) The annual account presented for audit by Panchayats, Municipal Councils and Municipal Corporation shall include:-

(i) statement of grants received and utilised;

(ii) a statement of loans availed and utilised;

(iii) a statement showing the details of public Works undertaken during the financial year concerned, amount expanded for each Work and balance of fund, if any, available;

(iv) the statement of grants and statement of loans shall be prepared in Form VI and VI (A) appended to these rules.

 (c) The annual accounts presented for audit by the Universities shall include:- (i) a Demand Collection Balance Statement of examination fee collected by the Controller; (ii) a Demand Collection Balance Statement of University Union fee and sports affiliation fee to be collected by the principals of affiliated colleges and remitted to University fund; and (iii) a Demand Collection Balance Statement of fees and other dues collected by the teaching departments of the University.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

(2) Where the amount at the credit of a local authority/ local fund at the end of a year as per the pass book differ from the amount shown in the books of accounts maintained by the said local authority/local fund, a reconciliation statement shall be attached with the annual accounts presented for audit.

(3) The accounts relating to a financial year shall be presented for audit within four months from the close of the financial year concerned: Provided that in case where the accounting year followed by a local authority local fund differs from a financial year, the annual accounts of such institutions shall be presented for audit with in four months from the close of the accounting year.

(4) The pro forma accounts and statements of expenditure relating to the grants sanctioned to the Universities by the University Grants Commission or the State Government or other Financial Agents for specified schemes shall be presented for audit as the Work relating to the Scheme is finalised. In the case of continuing schemes the accounts of such schemes shall be presented for audit as required by the Financing Agency.

(5) In the case of grants sanctioned by the State Committee of Science and Technology, the accounts relating to the research schemes shall be presented for audit as Soon as the research work is finalised or the grant received is utilised as the case may be.

(6) The Director shall have authority to require the preparation and presentation of any further statement of accounts which he considers necessary for the proper conduct of audit of accounts of a particular local authority/local fund.

(7) The annual accounts or such other accounts due for audit shall be presented to the officers Concerned as shown below: -

     (a) Accounts relating to the institutions :       To the head of the concurrent audit Wing where concurrent audit Wings function

     (b) Accounts of Hindu Religious and Charitable Endowment Institutions in Malabar and Kasargode area :     To the Deputy Director, Hindu Religious Endowment Audit, Palakkad

     (c) Other Institutions:      To the Deputy Director of the Concerned District.

16. Default in the preparation and presentation of annual accounts for audit.- (1) Proceedings in a Court of law against an Executive authority who has not presented for audit the annual accounts of the local authority/local fund concerned with in the time limit specified under sub-section (1) of the section 9 of the Act, shall be carried on by the Joint Director/Senior Deputy Director/Deputy Director who is in charge of audit of accounts of the local authority/local fund concerned. For imitating the proceedings, such officer shall file a compliant in Writing of the facts constituting the offence in the court having jurisdiction in the area in which the head quarters of the local authority/local fund is situated.

(2) The show cause notice under sub-section (3) of Section 9 of the Act shall be issued by an officer not below the rank of a Deputy Director who is in charge of audit of accounts of the institution concerned in Form VII appended to these rules.

17. Procedure to be followed when the annual accounts presented for audit are defective sincomplete.- The annual accounts of a local authority/local fund presented for audit in a defective or incomplete manner shall be returned to the Executive authority concerned for a rectification of the defects detected on scrutiny or for supplying omissions noticed. Such annual account shall be deemed to have been presented for audit only on the date of receipt of the annual accounts after rectification of the defects/omissions pointed out by the audit.

18. Issue of Audit Report.- (1) As soon as practicable after the completion of audit, but not later than three months thereafter, the auditor shall send to the Head of the local authorities/ local funds concerned, a report on the accounts audited and examined by him and the copies of

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

the report shall also be sent to the controlling authorities/Government or as may be specified under the law governing the local body/local fund. The report shall be, as concise as possible but shal|| contain all the relevant facts.

(2) The audit report shall be sent to the Head of the local authorities/local funds concerned either in person or by registered post with acknowledgement due.

(3) When the audit report is delivered in person, dated acknowledgement of the Head of the local authorities/local funds for the receipt of the same shall be obtained in the transit book.

19. Form and contents of the audit report.- Unless otherwise provided in these rules, the audit of accounts of the local authorities/local funds shall be conducted by the auditors in such manner as may be specified by the Director. The instructions issued by the Director from time to time with regard to the form of audit report, drafting of audit paras, compilation of audit report, Contents of the audit report, and enclosures to the audit report shall be followed unless otherwise specified in these rules or in the Act. In the cases of institutions which are bound to meet the audit charges under section 19 of the Act and rule 24 of these rules, a separate para showing the Computation of audit charges due may be incorporated in the audit report. There shall be two separate parts in the audit reports

(1) Part showing the details of clear cases of loss on receipt side in which shall be incorporated.

        (i) cases in which the amount, if any, received which is required to be brought into account but has not been brought into account by any person;

        (ii) in the cases of misappropriation of collections made; and

        (iii) cases of any deficiency or loss of money due to short realisation/non-realisation of dues which appears to have been caused by the negligence or misconduct of any person.

(2) The part showing details of clear cases of loss on payment side in which shall be incorporated.

        (i) cases of mis-utilisation of funds;

        (ii) cases of payments which appears to be contrary to law;

        (iii) cases of any deficiency/loss of any property, stock etc.

        (iv) cases of excess payment made; and

        (v) cases of avoidable expenditure

20. Procedure for charge Isurcharge proceedings.- (1) The officer authorised to issue the report on the audit of accounts of a local authorities/local funds shall while issuing the further remarks under sub-rule (3) or rule 23 of these rules forward to the Director a proposal for charge/ surcharge action in respect of the pending cases of losses pointed out in the audit report Concerned. The charge/surcharge proposal shall be in Form VIII appended to these rules.

        (2) On receipt of the proposals for chargessurcharge proceedings from the officer authorised to issue the auditor report, the Director shall as early as practicable but before the completion of four month from the date of receipt of such proposals, issue, chargessurcharge notices to the officer (s)held responsible for the losses detected by the auditors.

        (3) The charge/surcharge notices shall be in Form IX and IX (A) appended to these rules.

        (4) The chargessurcharge notices (in duplicate) along with extracts of the relevant objections in the audit report shall be communicated to the person against whom it is made by registered post with acknowledgement due.

        (5) The duplicate copy of the chargessurcharge notice shall be returned to the Director by the person receiving it, with his dated acknowledgement in proof of having received the notice.

        (6) Copy of the chargessurcharge notice shall be issued to the Executive authority concerned.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

        (7) Unless the person Served with a chargessurcharge notice remit to the Executive authority concerned the amount involved in the notice and furnish the details thereon to the Director within two months, from the date of receipt of the notice, or furnish satisfactory explanations, such person shall be served with chargessurcharge certificate in Form X and X (A) appended to these rules, with copy to the Executive authority concerned.

        (8) The report showing details of remittance of amounts involved in the chargessurcharge notices to be furnished by the person(s) responsible under sub-rule (7) above shall be forwarded to the Director through the Executive authority concerned. The Executive authority shall retransmit the same to the Director With a certificate to the effect that the details furnished have been verified by him and found correct.

        (9) The chargessurcharge certificate (in duplicate) shall be communicated to the person against whom it is made, by registered post with acknowledgement due. -

        (10) The duplicate copy of the chargessurcharge certificate shall be returned to the Director by the person receiving it with his/her dated acknowledgement affixed on it.

        (11) The chargessurcharge certificate shall be served on the persons responsible within a period of two years) from the date of receipt of the chargessurcharge notice by such person.

        (12) The Director shall serve on the person responsible for any loss to a local authority/ local fund supplementary chargessurcharge notice or chargessurcharge certificate relating to the same audit report if the circumstances so warrant.

        (13) Every sum chargessurcharged by the Director on any person shall be remitted by such person to the Executive Authority within one month from the date of receipt of such charge/ surcharge certificate, unless within that time such person files an application before the District Court against the decision of the auditor. Such amount if not so paid or such amount as the District Court shall declare to be due under sub-section (3) of Section 16 of the Act shall be recoverable under the provisions of the Kerala Revenue Recovery Act, 1968 (15 of 1968) for the time being in force, as if it were arrears of public revenue due on land.

21. Auditor to name the persons responsible for the loss detected and the extent of responsibility of such person.- The person responsible and the extent of responsibility of such person for the loss detected by the auditor during the course of audit of accounts of a local authority/local fund shall be fixed correctly by the auditor at the time of audit by verifying the records concerned. The name (s) of the person (s)held responsible shall be incorporated in the audit report as well as in the proposal for chargessurcharge action to be forwarded to the Director.

22. Executive authority to ascertain and intimate the addresses of the persons held responsible.- As soon as the audit of accounts of a local authority/local fund is completed, the auditor shall require the Executive authority of the institution concerned to intimate the addresses of the persons held responsible for the losses detected in audit. The addresses of such persons shall be ascertained and intimated to the auditors by the Executive authority concerned within one month or a shorter period as may be required by the auditor.

23. Procedure to be followed after getting the report of Director under section 13- (1) On receipt of a report under section 13, the Executive authority concerned shall remedy the defects or irregularities pointed out in the report and send to the auditor within two months of receipt of report, a rectification report in regard to the defects or irregularities.

        (2) On receipt of such rectification report, the auditor shall send within two months. "Further remarks' to the Executive authority with copies to the Officers, to whom audit reports are issued. He shall either

                (a) accept the intimation or explanation of the Executive authority and drop the objection;

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

                (b) hold the defects or irregularities pointed out in the report and specify whether the amounts involved in Such defects or irregularities should be charged/surcharged and if so, against whom.

(3) If no such rectification reports are received from the Executive authority within two months of receipt of the audit report, the auditor shall send a 'Further report' on expiry of the two months in the manner of further remarks and shall state in his report

                (i) whether the defects or irregularities can be regularised by any method;

                (ii) whether they can be condoned by any authority, if not admitted of being regularised;

                (iii) whether the amounts to which defects or irregularities relate, should be charged/ surcharged, and if so against whom. In the case of charge/surcharge mentioned in sub-rule (b) and item (iii) of sub-rule (c) chargessurcharge proposals as contemplated in rule 24 of these rules shall be forwarded to the Director for further action.

24. Payment of charges for audit.- (1) Charges for audit of accounts mentioned in subsection (1) of Section 19 of the Act payable by all local authorities included in the schedule shall be 1% of the annual income, excluding debt head accounts and sums borrowed from Government and other financing institutions. (2) The Collection of revenue by way of audit charges shall be a responsibility vested with the Local Fund Audit Department. For prompt and correct recording of the Demand and collection of charges for audit from various institutions, necessary departmental instructions shall be issued from time to time. (3) In order to adjust the charges for audit from the grants or other sums payable to local authority by Government under sub-section (3) of Section 19 of the Act, details of amount due by way of audit charges from such local bodies shall be reported to the Government when proposals for grants or other sums due to the local bodies are recommended by Director, and as when required by Government.

25. Laying of Audit Report.- The Director shall, not later than 30th September every year, send to the Government a consolidated report of the accounts audited by him during the previous financial year, containing such particular which be intends to bring to the notice of the Government.

FORMI
(For use in Local Audit)
Audit Notice See rule 5

No.................. Office of the.....................................


Station.............................................


Dated the............................... day of ...................19



From


...................

........................


Το


.......................

............................


Sir/Madam,


The audit batch led by Shri/Smt................................................................................... of this Office will take up the audit of the accounts of..................................................... for the year undersections 4 and 5 of the Kerala Local Fund Audit Act, 1994, on the.............................................. day of................... 20.......... It is requested that the audit party may be afforded the necessary facilities in carrying out their work.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

it will greatly facilitate work and reduce subsequent correspondence, if you will kindly arrange for the prompt settlement of objections noted by the auditor then and there. It is also requested that such direction, as may be considered necessary, may be given to your staff, so as to ensure that all the documents which will be required during the audit are kept ready and presented to audit promptly. Kindly acknowledgement receipt of this notice

Yours faithfully,
Signature 


FORM-IA
(For use in concurrent audit)
Audit Notice
(See rule No 5)

No .............................. Office of the........................

Station................................

Dated the.....................day of 19.............

From

......................

......................

TO

.......................

........................

Sir/Madam, 

This office will commence audit of accounts of the .......................................... for the year, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . under section 4 of the Kerala Local Fund Audit Act, 1994 from..............On Wards. It will greatly facilitate work and reduce subsequent correspondence, if you will kindly arrange for the prompt settlement of objections noted by the auditor then and there. It is also requested that such directions as deemed necessary, may be issued to all unit/zonal offices/departments under your control, so as to ensure that all the documents are kept ready and presented to audit as and when required. Kindly acknowledge receipt of this notice

Yours faithfully,


Signature.........................


FORM II
Audit Requisition
(See rule 8)

1. Name and designation of the addresses:


2. Brief description of the documents required .

      (i)

      (ii)

      (iii)

      (ν)

      (v)

3. Latest date for compliance with the requisition

Signature of auditor with date


      Received the requisitionSignature of the addresses with date.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun
FORM III
Summons for production of documents for purpose of audit/for personal appearance under Section 11 (1)(b) of the Act
See sub-rule (2) of rule 8)

To

...........................


................................


Whereas you have failed to comply with the requisition lawfully made upon you by my requisition dated...................................you are hereby required to appearin person (with the documents required in the above requisition) before the undersigned on the .................................. day of......................


If you fail to comply with this requisition, you will be prosecuted before a Court of Law for the offence committed under section 12 of the Kerala Local Fund Audit Act, 1994 and rule 8 of the Kerala Local Fund Audit Rules, 1996. Dated this.......................................................... day of......................


Signature Name and Designation


(Seal)


FORM IV
Show Cause Notice
(See rule 10)


No.

Office of the ...........................


....................................................


Dated..........................................



Sub:- Non compliance of requisition made under clause (a) sclause (b) of sub section (1) of section 11 of the Kerala Local Fund Audit Act, 1994- Regarding.


Ref:- In exercise of the powers conferred under section 11 of the Kerala Local Fund Audit Act, 1994,


Sri/ Smt.................................................................. (Name, Designation and Name of institutions) was required in the requisition under reference to produce at the place of audit the following records/to appear in person to answer audit enquiries, in connection with the audit of accounts of............................................. for the year.......................................


1.

2.

3.

4.


But SriSmt............................................................................ has failed to comply with the requisition lawfully made upon him/her by the auditors and hence verification of the above records by them is pending/the audit enquires issued to the Executive authority ...................................... on the dates ..................... are pending clearance.


As per section 12 of the Kerala Local Fund Audit Act, 1994, any person who wilfully neglects or refuses to comply with any requisition lawfully made upon him under clause (a) or clause (b) of subsection (1) of Section 11 of the Act is punishable, on conviction, with fine which may extend to one thousand rupees. Non-production of records required by the auditors/failure to appear in person to answer audit enquires shows willful neglect and refusal on the part of Sris Smt............................. in complying with the requisition lawfully made upon him/her. Hence Sri/Smt............................... is required to show cause with in 15 days from the date of receipt of this notice why action should not be initiated against him/her in a court of law as contemplated in section 12 of the Act. If no written statement of explanation is received within the time allowed the matter will be proceeded with on the presumption that he/ she has nothing to offer in defence.


Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

.....................................


Director

...............................................



To

..................


..........................


FORM V
Objection Statement
(See rule 11)


Voucher No,Date Purticulars of payment Objection or suggessions (with the signature and date of auditor) last date fixed by the auditor for return of audit objection statement Reply of local authority /local fund (with signature ,date and designation) note of admissions or fresh remarks by the auditor Further remarks by the local authority or local fund Final remarks of the auditor
1 2 3 4 5 6 7 8

Executive authority


Form VI
(see rule 15)

Name of Local authority

details of grant receive Utilisation of grant
Name/purpose of grant No and date of sanction order Amount of grant Amount of grant details of transfer credit period utilisation Total Name of work for which utilised Amount Expended Unspend balance of grant Remarks (Extension of period of utilisation /diversion of purpose lapsed grant etcmay be specified)
1 2 3 4 5 6 7 8 9 10 11

Executive Authority

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun
FORM VI A
(See rule 15)

Name of Institution.............

purpose of loan No and date of sanction order Amount of loan details of transfer credit opening balance if any Total Amount utilised during the year unspend balance
1 2 3 4 5 6 7 8

ExecutiveAuthority.


FORM VII
Show Cause Notice
(See sub-rule (2) of rule 16)

No......................... Office of the...............................................

Dated...............................


Sub:- Default in preparation and presentation of accounts of ............................ for the year......................................................for audit Reg.

Section 9 of the Kerala Local Fund Audit Act, 1994, requires the Executive Authorities of all Local Authorities/Local Funds, the accounts of which are subjected to audit by the Local Fund Audit Department to prepare and present for audit the accounts relating to an accounting year within four months from the close of the year. AS Such the accounts of......................... for the year...................... should have been presented by the Executive Authority for audit before.......................................... But the accounts for the yeas. . . . . . . . . . . . . . . . . . . . . . . . . . have not been presented for audittill date. As per sub-section (2) of Section 9 of the said Act, the Executive Authority is liable to be punished, on conviction, for default in the presentation of accounts for audit with a fine which may extend to three thousand rupees but which shall not be less than one thousand rupees. Being the Executive Authority, Sri ....................... is responsible for the default in the presentation of accounts relating to the УӨaГ................................................... for audit. In these circumstances, Sri................................. is required to show cause within 15 days from the date of receipt of this notice why action as contemplated under subsection (2) of Section 9 of the Kerala Local Fund Audit Act, 1994 should not be initiated against him in a court of law. If no written statement or explanation is received within the time allowed, the matter will be proceeded with on the presumption that he has no defence.

                                                                                                                                                                                              ...................................................
                                                                                                                                                                                             ....................................................
FORM VIII
Charge/Surcharge Proceedings
(See sub-rule () of Rule 20)

Name of Institution :

Year of audit report:

Date of audit:

Name of personal in the audit batch:

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

Details of paras on which chargeisurcharge action proposed

Para No Name of auditor who detect the loss Amount involved /charges,surcharge Person responsible with address Reason for fixing responsibility on him

Joint Directorf Senor Deputy Director/Deputy Director.



FORM IX
Charge Notice
See sub-rule (3) of rule 20

No....................... Office of the Director of Local Fund Audit,

Thiruvananthapuram.


Dated...............................

From

The Director of Local Fund Audit, Thiruvanthapuram.


ΤΟ

Sri........................

.....................................

Sub:- Report on the audit of accounts of .............................................................. for the Year.................................................. Loss sustained to the funds - Charge Notice-issued 


Ref:- 1

             2. 
                      Sir/Madam, 

This is to invite your attention to the audit observation in paragraph number................ of the audit report of.................................. for the year.............................. issued in the reference cited and to state that a sum of Rupees........................ has been lost to the funds of the.................................... Օn account of your negligence or misconductor failure of duty. Extracts of the relevant objections in the audit report are enclosed for ready reference. You are held responsible for the said loss for the reason stated below and hence the amount involved is recoverable from you.


             You are, therefore, requested to remit the sum of Rupees............................................... (Rupees................................... only) to the Credit of.................................................................... and to intimate the details thereonto this office or to state why the amount of Rupees............................................... should not be charged on you in exercise of the powers conferred under sub-section (1) of Section 16 of the Kerala Local Fund Audit Act, 1994. You are allowed a period of two months from the date of receipt of this notice to intimate the detail of remittance or to file the statement of explanation, failing which the  said amount will be charged on you. 


Receipt of this notice may be acknowledge in the duplicate copy enclosed and the same returned to this office. Yours faithfully,

For Director. Copy to

1.The.......................

2................................

3..................................

4.The executive authority ...........

.............................................................

(He is requested to forward a report on the clearance of the objections on expiry of the period of 2 months mentioned)

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

5. The Joint Director/

Senior Deputy Director/
Deputy Director. 
FORM IXA
Surcharge Notice
(See sub-rule (3) of rule 20)

No.Office of the Director of Local Fund Audit,

 Thiruvananthapuram,

Dated..............................

From, 

The Director of Local Fund Audit.

TO SriSmt........................................... Sir/Madam, Sub:- Report on the audit of accounts of............................................... for the year............................. Surcharge notice issued.

Ref: 1............................ .......................................

This is to invite your attention to paragraph numbers............................on the report on the audit of accounts of ............................................ for the year........................... and to item number .............................of the objection statement attached to the audit report and to state that a sum of Rupees.............. (Rupees.............................................................. only) has been lost to the funds of which are given in the audit report in the relevant paras (extracts of the relevant audit objections are enclosed). As you have made authorised to make the excessfillegal payment, you are held responsible for the Said loss of Rupees...........................................................and hence the amount is recoverable from you. (Out of the total loss of Rupees .......................................................................... involved in Paras............... in the audit report and items ....................... of the objection statement, a sum of Rupees............................... has been realised Subsequently as shown below and hence the balance amount of Rs............................... only has been included in this notice).



Para No.                Amount Involved                 Amount Remitted                 Balance



You are, thereof, requested to remit the amount of Rupees............................................ (Rupees ........................................................... only) to the credit of the .............................................................. and intimate the fact to this office within two months from the date of receipt of this notice or to state within two months from the date of receipt of this-notice, why the amount should not be surcharged on you in exercise of the powers conferred under sub-section (1) section 16 of the Kerala Local Fund Audit Act, 1994, failing which this Department will be constrained to take further action in the matter. Receipt of this notice may be acknowledged in the duplicate copy enclosed and the same returned to this office.

Yours faithfully,  

For Director

Copy to:-

1.................. ........

2..........................

3.......................

4.(The executive authority)

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun

(He is requested to forward a report on the clearance of the objections on expiry of the period of two months)


5. The Joint Director/Senior Deputy Director/Deputy Director.


FORMX
Charge of Certificate
( See sub-rule (7) of rule 20 )

No. Office of the Director of Local Fund Audit,

Thiruvananthapuram,


Dated........................


I. . Director of Local Fund Audit, Kerala, hereby certify under sub-section (1) of section 16 of the Kerala Local Fund Audit Act, 1994 as follows:During the year............................the.............................................. has sustained a loss of Rupees - - - - - - - - - - - - - - - - - - - - - - - - -(Rupees.............................................................. only) on account of the negligences misconduct/failure of duty on the part of Sri Smt........................................ who held the posts of ...................................... (Now Working as...........................) and hence Sri/Smt................................... is held responsible for the said loss of Rupees ............ (Rupees........................................ only). The details of the above loss of Rupees........................................ are given in paras...............and...................................... of the audit report of............................................. for the year......................... issued by the................................. in reference No.................................... dated ......................

In this Office notice No ................................................................... dated ................................ Sri/Smt .................................... was requested to remit the said amount of Rupees................................ to the Credit Of...................................... and to intimate the details thereonto the office within two months or to state within two months why the amount should not be charged against him/her in exercise of the powers conferred under sub-section (1) of section 16 of the Kerala Local Fund Audit Act 1994. The above notice was served on him/her by registered post with acknowledgement due along with the extracts of the relevant objections in the audit report and he/she has acknowledged the receipt of the notice on But intimation regarding the remittance of the said amount of Rupees............................... to the Credit of........................................ has not been received so far. But intimation regarding the remittance of Rupees......................... involved in paras ........................ ......................................... only have been received so far. The explanation dated........................... furnished by Sri/ Smt ............................................ to the charge notice in inspect of paras............................ has been considered in detail and found to be not acceptable. A sum of Rupees.............................. (Rupees ............................. only) details of which are pointed Out in paras .................. of the audit report of............................. is thus charged on Sri/ Smt........................................... the then...................... of............... (Now Working as.................) Sri Smt................................ is liable to remit the amount to the Credit of.................. Within one month from the date of receipt of this certificate, failing which the amount shall be recovered under the provisions of the Kerala Revenue Recovery Act, 1968 (15 of 1968) in exercise of the powers conferred under sub-section (4) of section 16 of the Kerala Local Fund Audit Act, 1994. Dated at Thiruvananthapuram the........................ day of............................. 19......... Director.


ΤΟ

Sri Smt.........................................

Receipt of this certificate may be acknowledge in the duplicate copy enclosed and returned to this office

Copyto:

1

2

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun
FORM XA
Surcharge Certificate
See sub-rule (7) of rule 20)

No.Office of the Director of

Local Fund Audit,


Thiruvananthapuram,



I............... . Director of Kerala Local Fund Audithereby certify under sub-section (1) of Section 16 of the Kerala Local Fund Audit Act, 1994 as follows:- During the year....................... the......................... has Sustained a loss of Rupees ............. (Rupees....................................................................................... only) on account of excess fillegal payment made/authorised to be made by SriSmt.................................... ................................ who held the post of (now working as ) and hence Sri/Smt. ....... is held responsible for the said loss of Rupees.................................. The above loss Was pointed out in paras ................. of the audit report and item numbers of the objection statement attached to the audit report of........................... for the year......................................

In the Surcharge notice issued in reference No..................................................Sri Smt.......................... Was requested to remit the amount of Rs........................ (Rs........................... only) to the credit of and to intimate the fact to this office within two months from the date of receipt of the notice or to state within two months why the said amount should not be surcharged on him/her in exercise of the powers conferred under sub-section (1) of Section 6 of the Kerala Local Fund Audit Act, 1994.

The Surcharge notice dated................................................ was served on him/her by registered post with acknowledgement due along with the extracts of the relevant objections in the audit report and he/ she has acknowledged the receipt of the same on....................... But intimation regarding the remittance of the said amount of Rupees................to the Credit of....................... has not been received so far. But intimation regarding the payment of Rupees............................. involved in paras..................................... ..only have been received so far. The explanation dated........................................ furnished by Sri/Smt - - - - - - - - - - - - - - to the surcharge notice in respect of paras...................has been considered in detail and found to be not acceptable.


A sum of Rupees.................. (Rupees.............................. only) detail of which are given in paras................................................. of the audit report for the year ................... and item number........................................................ of the objection statement attached to the report is therefore Surcharged on SriSmt.............................................................. the then.........................................................(now Workingas......................................................).


Sri/Smt..................................................... is liable to pay the amount to the credit of .......................................... within one month from the date of receipt of this certificate, failing which the amount shall be recovered under the provisions of the Kerala Revenue Recovery Act, 1968 (15 of 1968) in exercise of the powers conferred under sub-section (4) of section 16 of the Kerala Local Fund Audit Act, 1994.

                                                        Dated at Thiruvananthapuram, the ........................day of..................................
Director.

To

Sri/Smt...................

.................................

Receipt of this certificate may be acknowledged in the duplicate copy enclosed and returned to this office.

Copyto:-

1.

2.

3.

Book.png This page is Accepted in Panchayath Wiki Project. updated on: 01/ 02/ 2018 by: Arjun