The Manipur Local Funds (Accounts & Audit) Act, 1976

THE MANIPUR LOCAL FUNDS (ACCOUNTS & AUDIT) ? 1976 . (As p?ssed by the Le/s'1j(v';Assembly of Manipur) A'f"'l BU,;t;-.?? to make better provision for the audit and safeguarding of local funds in Manlpur. · It is hereby enacted as follows :'- 1. (1) This Act may be called the Manipur Local Funds (Accounts Sho11 ti\le and Audit) Act, 1976. . & extent. (2) It extends to the whole of Manipur. 2. In this Act, unless there be anything repugnant in the subject or Definitions. context,- · (1) •• Auditor" means. an auditor appointedunder this Act ; . (2) "Examiner of Local Fund Accounts" means a person appointed as such under this Act and includes any person for the time being per­ forming the duties of an Examiner of Local Fund Accounts ; .. (3) "Local. Accounts" or "Accounts of a Local Authority" means the accounts of the local fund and of all other property vesting in or undes the control or management of any local authority other than a canton­ ment authority ; {4) "LocalFund" means any.fund vested in or under the control 01: management oi a Municipal Board, Town Committee, Local Hoard, Village Authority or the Local Authority not being a cantonment autho­ rity and includes 'any fund declared by the State Government to be a. Local Fund for the purposes of this Act ; . .. (5) . "Person accounting" or "Accounting Officer" with reference to ariy local fund means any person charged with the preparation 01, maintenance of any accounts ( including estimates, measurement books;: bills etc. ) connected · with the fund that may be prescribed under this or any other Act ; · . (6) "Pre;.oribed" means, prescribed by rules made under this Ai:? ; and 2 (7) "Tribunal" means any officer appointed by the State Govern- ment to be the tribunal for the purpose of this Act. Appointment 3. The State Government may, by notification, appoint any person of Examiner ofLocalFunil to be an Examiner of Local Fund Accounts in Manipur, Accounts. Appointmeat 4. The State Government may, by notification, appoint auditors of of auditors, local accounts. 5. Power of Examiner of Local Fund Accounts and Auditors to Examine Local Accounts,- · (1) An Examiner of Local Fund Accounts or any auditor may, in accordance with the rules made in this behalf under this Act, examine and audit the accounts of any local authority. (2) For the purpose of any examination or audit under this Act, an Examiner of Local Fund Accounts, and for the purpose of any appeal under this Act, a Tribunal shall have the powers of a Civil Court under the Code of Civil Procedure, 1908,- (a) to summon any person whose presence he or it thinks neces­ sary to attend before him or it from time to time ; (b) to examine any person on oath to be administered by him or it ; (c) to issue a commission for the examination on interrogatories­ or, otherwise of any person ; and (d) to summon any person to produce any necessary document or thing. (3) For the purpose of any audit under this Act, and auditor mayj-« (a)' by summon in writing or by letter require the production before him of any document which he may deem necessary ; (b) . by summons in writing require .any whole-time paid· servant of the local authority accountable for, or having the custody or control of, any such document to appear in person before him ; and (c) require any such person to make and sign a declaration with respect to. such document or to answer any question or prepare and submit any statement relating thereto. (4) · Every person to whom a summons or requisition is issued under sub-section (2) or (3) shall be bound to comply therewith. 6. · Special powers, Duties and Responsibilities of Examiner or t.ocal Fund, Accounts. :- . Notwithstanding anything contained· in Section 5, the.State Go-vet,n+; · ment may direct the Examiner of Local Fund Accounts for. audit on. special. audit of the accounts of Government .· Departments and Offices including these declared as commercial departments in··· like manner as may be prescribed by the State Government. (b) , (c) .3 ·7. Auditors and Examiners· of Local Fund Accounts are Public Servants within the meaning of the Indian Penal Code;- Every auditor and examiner ofLocal Fund Accounts appointed under this Act shall, for the' purposes ofthe powers and duties conferred," and imposed upon him by or 'under this Act, be deemed to. be a public servant within the meaning of section 21 of the Indian Penal Co?e. 8. Presence of.interested persons at the time of audit,- Any person who' is assessed to any tax, rate, or fee the proceeds of which are required to be credited to the local fund may be present" · at any audit of the local accounts · under this Act provided that : · ·· (a) · he has obtained the previous· permission of the auditor or of the Examiner of Local-Fund-Accounts ona written application· stating the grounds on which he desires to be present. ; and ···· (b) he shall be permitted to be present only during that part of the audit with which the grounds disclosed in his application are concerned. · · In every such case, the authority granting permission shall forth­ with forward a copy of the application and of' the order passed thereon to the chairman or other principal executive officer of the local authority concerned. · 9. When an auditor has comp'eted the audit ofthe accounts of'any =... . local authority he shall prepare a report on them and shall furnish. one copy of the report. to 'the Iocar authority and another copy to tbe·'Exa? miner of. Local Fund Accounts. 10 .. Power of Examiner of Local Fund Accounts to Surcharge or Charge Illegal PaymentorLoss incurred by Negligence :- (1) The auditor shall include in his report ( hereinafter called the audit. report } · a statemen? of,'"- . - · (a) every payment. which .appears to him to be contrary to law : the amount of, or the equivalent in money of, any deficiency or lass which appears to have been .incurred by the negligence or .misconduct of any perspn accounting ; the amount of· any . sum or the equivalent in .money of any article which ought to have .been, .but. is not brought into account by any such person ; and (d) the name of the person making 'or authorising the illegal , payment or accountable for the deficiency, loss, or omission, as the case may be. · (2) After considering such'report.the Examiner Local Fund Accounts ·may,- (a) order that any .. payment referred to. in .clause (a) of sub-sec­ tion (1) .shall be allowed or that no further action shall -be taken as regards a?y .amount referred. to in. elause {b) of (c). . . . 9! tb.e said sub?.section; o? · (b) 4 serve a notice on the person named in the report.or any other person whom the Examiner of Local Fund Accounts considers to have made or authorised the illegal payment. or -to be accoun­ table for the deficiency, loss OJ' omission, requiring him to show cause within one month why the payment · or amount refer­ red to in the report or any similar payment or amount omitted therefrom should not be surcharged on or charged· against him. (3) After considering the cause ( if any) shown by the person notified, the Examiner of Local Fund Accounts may surcharge any such payment on, 9r charge any such amount against him and shall in every such case certify the amount due from such person. (4) Publication of the certificate and the audit report,- The certificate shall be according to the forms set forth in the schedule hereto annexed or to the like effect and a copy thereof together with a copy of the audit report shall be published in the prescribed manner. 11. Application of sections 9 and l O to Audit conducted by the Examiner of Local Fund Accounts,- All the provisions of sections 9 and 10 shall apply mutatis mutan­ dis when the Examiner of Local Fund Accounts himself conducts any audit under this Act. 12. Credit of certified sums to Local Fund :'- Except as hereinafter provided every sum certified under section 10 as due from any person shall be forthwith paid by him to the local authority concerned and shall thereupon be credited to its local fund. 13. Appeal against surcharge or charge made under section 10(1) a) :- (a) Any person aggrieved by any surcharge or charge.made under section 10 whether by reason of its being excessive or in­ sufficient, or on any other ground whatsoever ; and (b) Any person aggrieved by the omission' to make a surcharge or charge under section 10, may within thirty days of the date cf publication of the certificate thereof in case (a) and of the audit report in case (b), appeal to the Tribunal which may thereupon take further evidence or direct further evidence to be taken and pass such orders, including an order as to costs, as it may tbink fit, and these orders shall be final. J4, Surcharge or Charge to be recoverable as an arrear, of Land Revenue : - (1) The sum stated in the certificate of the Examiner of Local Fund Accounts, in all cases in which no appeal bas. been: preferred under section B and the sum stated . in the order of, the appellate authority, in all cases in whichari appeal has been preferred, may on his application ot dn. the· apjlica'tion of the lecalauthority con­ . cerned, within three years of the·<l'ate of the certificate: or. order, as the case may be, be recovered by the Deputy Comrnissionercas.Iif it were an arrear of land revenue. -5 (2). All c;xpenses qoonecte,d}'}'ithan)! llpplicationunder sub-section (1) shall . bf: a charge on J?e local : f?nd and all sums recovered thereunder ahall be credited to the::sa.i)Jt; :Jund?:-· ... : ? .. ,· "'·? - , . ,; . .pa.,:. ·' '..,. 15. 9harges iil respect-'oC'auditfot>e·-pas?bieout oflocal fund :- All expe?esincur;?d\bt?..!?cal:?uth;?i-.ittin . complying with any requisition under section .S shall ·be.,pa:yable out of its local fund. 16. 0) The State .Government.' may, ?Jtei; previous publication, make rules fot the purpose · of carr.ying out .the provisioils of. this Act. (2) ·. In?#culllt ah<l'.witnoi,,tprejudiceto the generalit, of the fore­ going powers, · such rules may regillate,'--- (i) the manner in which a local authority shall keep accounts in cases in. which no such, provision .or, in the opinion of the State Government, insufficient - provision is made by the enactment under which such authority is constituted ; · (ii) the powersand duties of an Examiner of Local Fund Accounts and auditors· and the procedure to be followed .by. 'them in conducting an audit under this Act and the times and places at which the audit. IBl:lY be conducted : and (iii) the manner in which certificate 'Under sectiorr 10 ··are to be served Qn the· persons_ c;png;rn,ed. ' · (3) Every rule made under tliis Act shall be. laid, as . soon as may be after it is made, before the Legislative Assembly ofManipur while it. is in session for a total period of not less than fourteen days which may be ccmprised in one session or in two or more successi- e sessions and if· before the expiry of the session in which it is so laid or the sessions aforesaid, the Assembly makes any modification in the rule or decided that the rule .shall not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. 17. Repeal of Repugnant provisions in other enactments :- Where any enactment by which a local authority is constituted contains any provisron repug11a,nt_to the provisions of this Act - or of any rule made hereunder, that provisions shall, to the extent of the repug­ nancy, be deemed to have-been repealed .by this Act. 18. Repeal and Savings : - (1/. '{he },;fanipurLocal Funds··(Accounts and Audit) Ordinance, 1975· (M?ipur':Qrdfnance No. 3 of 1975), shall stand repealed on the day ·this Act· comes into force. (2) On and from: the; date en 'which the provisions of this Act · arc brought into force in the State of Manipur, anything done and any step ?akep, (inclµ?g o/def,t,scl,J.e??·rule, form or notice} and any action taken. u.µ.g?r,Jp.e'--J;?,,P?afpdq_1;9Jpanc?by the In?ernalA ndit Unit of the Man,ip1.1rQ?ye?£?hW. <i£?P.?t10?wtth the a?d?t of ??Y.Depart­ . menr, offic:e; ?r4,?QF,?W:!Pt?t???hajf,Jn ?o far as it is not meonsistent rit? the pi:ovi,sipn-itof:Jl:!?:·A.lEtt::f?fJP1;1_?it(\be.1? force un!ess.and until 1t 1s . supersede.dJ:.>Y,-,l:lilytlj.?,?9??-9r;J!:DY action taken 1n ac.i:;ordance ?blaw..,.·_. > .. <) ·:,,.J ·. · t1·,·",T · Power to ruake rule?, SCHEDULE {Sub-Section10l4)} FORMS 'OF CERTIFICATE FORM-I 1. Against an accounting officer. I do hereby certify that in the account of - - - - - - - (here enter ------ -of---- name and office of tbe per&on). there enter ------ the name of the local authority). - - - - - I have disallowed (or :;urcharged) the sum of Rs. - - - - which is accordingly now due from him. As witness my hand, this - - day of - - 19 Examiner of Local Fund :Accounts. and description of the person) FORM-II Against a person not an accounting officer. I do hereby certify that in the accounts of the - - - - - _ (Here enter the name of - - - - - - - - - - - I have disallowed the local authority). the sum of Rs. as payment illegally made out of the funds of the Local authority and I find that - - - _ _ _ (here enter name authorised the making of such illegal payments, and I do hereby surcharge the said - with the same, which is accordingly now due from him. As witness my hand, this - - day of - - 19 Exa!Tiiner of Local Fund Accounts.