Haryana act 012 of 2019 : The Haryana Accountability of Public Finances Act, 2019

Short title and comrnencernent.

HARYANA GOVT. GAZ.

(EXTRA.), MAR.

12. 2019

(PHGN. 21,

1940

SAKA)

IIARYANA

COVEllNMENT

LAW AND

LEGISLATIVE OF.PARTMF.NT

Notlflculton

The

12th

March,

2019

No.

L.cg. 12/2019.-The

following

Act

of the

Legislature

of the State of

Haryana

received ?heasser?t^ofthe

Governor^of

Haryana ^{onthe 8th}

March, ^2019.indis

hereby published ^for

general information :-

HARYANA

ACT NO. 12 OF 2019

TIIE

IIARYANA

ACCOUNTABILITY OF

PUBLIC FINANCES

ACT,

2019

AN

ACT

to

provide

for accountability

i11 the

financial

administration

of

the State

by way of

nn efficient ^and

effective system

to

facilitate accountability

through appropriate

accounting ^and auditing system of

accountable^and

auditable

entity ^and

for

matters connected

therewith or in cid e 11 ta I

the re to. Be it enacted

by

the

Legislature

of the State of

Haryana

in the Seventieth Year of the Republic ^ofIndia^asfollows:-

1.

(I)

This

Act

may be called the

Haryana Accountability

of Public Finances

Act,

2019.

(2) ^Itshall^comeintoforce^onsuch

date,^astheState Government may, by

notification in the Official

Gazette,

specify.

2.

In this

Act,

unless the context otherwise

requires,-

Detimtions. (a)

"accountable^andauditablc

entity"

means^allthe

Departments.

Boards, Corporations, Co-operative

Societies.

Universities,

local

authorities, statutory bodies,

public

institutions, ^andother authorities

established,

controlled^orfinanced by ^theState

Government,

Non-Government

Organizations

which receive

grant-in- aid or contribution

from

State Government ^andall those entities that receive

public monies from the Stale Government ⁱⁿany^form

including organizations

which receive funds from

the consolidated

fund or ^the

State:

95

.....

.

.

?

0

'

• '

..

::,

?

,

(b} (c) (d) (e) (?

(g) (h)

"account officer" means

any person, including

those outsourced^orhired.

who has been

assigned

the work^tomaintain ^theaccounts of income ^and

expenditure including

financial

book-keeping ^ofanaccountable ^andaudirablc

entity;

"audit officer" means

any person, including

those outsourced^orhired.

who has been

assigned ^theworkto

verify ^theaccounts^ofincome^and

expenditure

including financial

book-keeping ^ofanaccountable^andauditablc

entity;

"audit" includes pre audit,

concurrent audit. post audit.^testaudit.

special

audit, system audit,

performance

audit ^andsuchother examination ^ofaccounts. ^{as maybe} specified;

"authority"

means ^anofficer

responsible ^foradherence ^tothe

provisions ^{of thisAct} for each accountable

and auditublc

entity;

"concurrent audit" means ^acontinuous audit of accounts of

day-to-day

transactions;

"local

authority"

means ^a

municipal corporation.

municipal

council.

municipal committee, ^Town

Improvement

Trust. ^Gram

Panchayat, Panchayat

Sarniti^orZila Parishad

constituted

under^the

relevant^{lawfor thetime}

being ⁱⁿ

force:

"local

fund" means- (i)

revenues administered ^by

accountable ^and auditablc

entity

"hich

by ^lawor rule

having ^theforce^oflaw^comeunder^thecontrol of State Government, whether ⁱⁿ

regard ^to

proceedings generally ^orto

specific

matters^suchasthe sanctioning ^of

budget,

sanction ^for

creating ^or

tilling^upof

particular^{post or} the rules

relating ^toleave,

pl·ns11i11

ctc.:

96

Audit of accounts. Scparauon ^of State Audit

and State Accounts Wing

Forms of

accounts.

Consutuuon of flaryana

State Audit and Accounts Services. Liabilny ^of authority ¹⁰ prepare and present

accounts for audit.

()

("'

GN ²¹1940 SAKA)

HARYANA GOVT.^GAZ.

(EXTRA.).

MAR.

12·

2019 (PH^{. '} t hie and auditablc entity

which may be

pecially (ti) ^therevenue^ofany

accoun ^a fi ^{,.1 h}ti ^•

State Gn1,crnment;nou rcu

Y

10.:

• ^•

f a

program function...

independent

cxarmnanon

o , (1)

"performance

audit means

an and roccdurcs

of^anaccountable

and operation ^orthe

management

systc_rns

.

:hievingeconomy, efficiency

andauditable entity whether such entity

ts

a effecuvcnew in^the

er.1ployment of available

resources; d r

the

completion

oftran action U) "post

audit" means the detailed

audit conductc

a tcr

.

f 11 ·

I documents

to

ensure that all (k) "pre

audu" means detailed

exam1nat1or? o

.

mancia

.

information is correct before ^thetranaction ^rsconducted.

(I) "prescribed"

mean,

prcscnbcd

by

rules ^madeunder^{this Act;} ·

..

·

f

rt ·

ing

to

a

specified

item or cric of (m)

"special

audit means

an audit o accounts

pc

airu items

requiring thorough

cxarnmation; ·

I d ove the effectiveness

of a (n) "systems

audit' means an

approach

to cva uatc

an

irnpr

.

· ·

·.1

J J 'thin

the

system

arc effectivesystem

111 order to

verify

that the individua c crncnts Wt

. ^.

and

suitable 111

achieving

the

stated

objectives

including

Business

Proccs Rc-cngmccnng, (o)

"State" means the State

of

Haryana; (p)

"Slate

Government" means the Government of the State of

I

laryana

m^the administrative

department; (q)

"test audit" means an audit to check

transactions of a

particular type

of

expenditure and

receipt

during

a

specified

period. (r)

"University"

means a

Uruvcrsuy

established or

incorporated by

an Act of the

State Legislature ^andshall

include

University

established under

Central Act

receiving grant-in-aid or contribution from State

Government for any

purpose.

3.

Notwithstanding anything

to the

contrary

contained

in

this Act and

without

prejudice

to the powers and

functions of the

Comptroller

and

Auditor General

(Duties,

Powers and

Conditions of Service) ^{Act, 197I}

(Central

Act

56 of I 97

I).

it shall

be lawful to conduct an audit of accountable and auditablc

entity

in the manner

provided

by

or under this Act and to recover the cost of audit in respect ^ofsuch

accountable^and

auditable

entity

in such manner, as

may be

prescribed.

4.

(1)

There shall

be an Audit

Wing

and Accounts

Wing

headed

by

the

Director,

Audtt and Director, Accounts

rcspccuvcly

and shall work under the

supervision

of

Admimstratrvc

Secretary to

Government.

Haryana,

Fmancc

Department.

(2) ^Themanner^ofaudit and

maintenance of accounts of each

accountable and

auduable entity ^orofany specific

activity

shall

be

such, as

may be

prescribed.

5. The

Forms in which the accounts are to be

maintained,

including

accrual system of accounting,

Enterprise

Resource

Planning

tools and

deployment

of

appropriate

technology

shall

be such, as

may^be

prescribed.

6.

(

1)

The

State

Government shall constitute the

Haryana

State Audit and

Accounts Services. The

mode of recruitment and

conditions of

service of the

members of the

Service shall be such, as

may^be

prescribed.

(2) ^TheLocal

Audit

Department prior

to the commencement of

this Act

shall

hereinafter be

known as the State Audit

Department.

The

Director. Local Audit

functioning

before the commencement

of

this Act shall

continue as the

Director,

State Audit

Department. 7, (I) ^Theaccounts

relating

to the

financial year shall be

prepared

and

presented

for audit by ^the

authority

within three months

after the end of

each

financial year, in such

form and

in such manner, ^as

may be

prescribed.

(2) ^The

authority

shall

furnish certified

financial disclosure

by

the

30th June each year including

details of the

various bank accounts of the

accountable and

auditable

entity along

with the

following

details- (i)

public

funds

deposited

in the

various bank accounts; (ii)

interest

thereon;

and (iii)

utilization as on date

and

HARYANA GOVT. GAZ.

(EXTRA.),

MAR.

12,

2019

(PHGN.

21,

1940

SAKA)

(3) ^TheState

Govern t ^·

hh Id auditabl ^·. men

may

wit o release of

funds to

any accountable and of fi1

e_ e1ntity which fails to furnish accounts for audit on

expiry ^of

three months^{from theend} mancia

year. b ^h

(4)

.

The

Sta?e Government shall

take necessary action^torecover^thelossasidentified Y ^teAudit Officers^msuch manner, ^as

may be

prescribed.

.

(5)

.

The

authority

shall check ^thatthe

public

funds

provided ^{to any}accountable ^and auditable

entity

f?r_a_ specific purpose

are

spent ^{in the}financial year, failing

which, the State Government may

uunate examination^intotheeconomy, efficiency ^and effectiveness with

which the resources have been utilized and after

giving ^an

opportunity^of

being

heard,^may-

(i) ^callforan

explanation^fornon-utilization

within ^thefinancial year;

(ii) ^callfor

explanation ^forthe

delay; (iii)

withdraw ^thefunds allocated ^{by the}

State, along with interest incurred^on such

funds ^and

deposit ^{thesameinabank}

account designated

by the State Government:

Provided ^{that the}funds

withdrawn

above^may be released

by

the State Government ^onsubmission

of^a

request by the accountable

and auditable

entity

along ^withaconcrete action

plan ^for utilization:

Provided

further ^thatnofunds shall ^bewithdrawn

contrary to the provisions^{of the}Constitution ^ofIndia^{or any} other law ^forthetime

being

in force.

8.

(1)

The

State Government ^may,by notification ^intheOfficial

Gazette, ^make rules ^to

carry ^outthe

purposes of this ^Act.

(2) ^In

particular^andwithout

prejudice to the

generality of

the

foregoing power, the

Government may make

rules

providing^for:

-

(a} ^the

manner^torecover the ^costof

audit under section

3;

(b) ^the

manner^ofaudit and maintenance of

accounts under sub-section (2) ^of section 4;

(c) ^theFormiswhich the accounts ^aretobe maintained

under section 5;

(d) ^theformand

manner for

preparing and

presenting^the

accounts for audit under sub-section (l) ^ofsection ^7;

(e) ^the

manner^forrecovery of ^lossunder sub-section (4) ^ofsection 7;

(f) ^anyother

matter which ^{has tobeor maybe}

prescribed by rules made

under this ^Act. Power ^tomake rules.

97

MEENAKSHI^l.MEHTA, Secretary ^toGovernment, Hary:ma, Law and

Legisbtive Department. 56949-L.R.-H^G.P..Chd