Manipur act 007 of 1976 : 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 ^makebetter

provision ^{for the}audit ^and

safeguarding ^oflocal funds ⁱⁿ Manlpur.

·

It is

hereby

enacted as follows^:'-

1.

(1)

This ^Actmay be called the

Manipur

Local Funds

(Accounts

Sho11 ti\le and

Audit)

Act,

1976.

.

& extent.

(2) ^Itextends^tothewhole ^of

Manipur.

2. In this

Act,

unless there be

anything repugnant

in ^the

subject ^orDefinitions. context,-

·

(1) ^••

Auditor" means. ^anauditor appointed under ^{this Act;}

.

(2)

"Examiner ^ofLocal^FundAccounts"

means ^a

person appointed as such under

this

Act and includes any person for the

time

being per- forming ^theduties ^ofanExaminer^ofLocal^Fund

Accounts^;

..

(3)

"Local.

Accounts"^or

"Accounts ^{of a}Local

Authority"

means the accounts

of^thelocal fund

and^ofall other

property vesting

in^orundes the control^ormanagement

of^anylocal

authority other ^thanacanton- ment authority ;

{4)

"LocalFund"

means

any.fund

vested ^inorunder^thecontrol^01:

management ^oiaMunicipal

Board, ^Town

Committee,

Local

Hoard, Village

Authority ^ortheLocal

Authority ^not

being ^acantonment

autho- rity ^andincludes^'anyfunddeclared ^{by the}State Government ^to be a.

Local Fund

for ^the

purposes of this ^{Act; .} .. (5)^."Person

accounting" ^or"Accounting Officer" ^withreference ^to ariy

local^fundmeans^anyperson charged ^withthe

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^madeunder this

Ai:? ; and

2

(7)

"Tribunal" means ^anyofficer

appointed ^{by the}State

Govern- ment ^tobe the tribunal

for

the

purpose

of

this Act. Appointment 3. The

State Government may, by

notification,

appoint ^any

person of Examiner ofLocalFunil to ^beanExaminer ^of Local Fund

Accounts ⁱⁿ

Manipur, Accounts. Appointmeat ^4.TheState Government^may,bynotification, appoint

auditors ^of of

auditors,

local

accounts.

5.

Power of Examiner

of Local Fund

Accounts and

Auditors ^toExamine Local

Accounts,- ·

(1) ^AnExaminer ^ofLocal^Fund

Accounts^{or any}auditor^may, in accordance

with the rules

made

in

this behalf under

this

Act, examine ^andaudit ^the

accounts^ofanylocal

authority.

(2) ^Forthe

purpose^ofanyexamination^oraudit under ^this

Act, an Examiner

of Local Fund Accounts,

and for the

purpose of any appeal

under^{this Act, a}Tribunal shall ^havethe

powers ^ofa Civil

Court under ^{theCode of}Civil

Procedure, 1908,-

(a) ^tosummon ^anyperson

whose

presence ^heoritthinks neces- sary ^toattend

before him^orit from

time^to time ;

(b) ^toexamine^any

person ^{onoath tobe}administered ^{by himor} it ;

(c) ^toissue^acommission ^{for the}examination^oninterrogatories- or, otherwise

of any person

; and

(d) ^tosummon ^anyperson^toproduce^anynecessary document^or thing.

(3) ^Forthe

purpose ^ofanyaudit

under ^{this Act, and} auditor mayj-« (a)' ^by

summonⁱⁿ

writing ^orbyletter require ^the

production

before him ^ofany document which ^hemaydeemnecessary ^; (b)

.

by

summonsⁱⁿ

writing require^.anywhole-time

paid·

servant^{of the} local authority

accountable ^{for, or}

having ^the

custody ^orcontrol of, any^suchdocument ^to

appearⁱⁿperson

before^him;and

(c) require^anysuchperson ^tomakeand sign ^adeclaration^with respect to. ^such

document^ortoanswer^anyquestion ^or

prepare and

submit any statement

relating

thereto.

(4) ^·

Every person ^towhoma

summons ^orrequisition ^is

issued under

sub-section

(2) ^or

(3)

shall be bound^to

comply

therewith.

6. ^·

Special powers, Duties

and

Responsibilities

of Examiner^ort.ocal Fund,

Accounts.^:-

.

Notwithstanding

anything

contained· ⁱⁿSection ^5,

the.State

Go-vet,n+; ^· ment may direct

the Examiner

of Local Fund

Accounts for.

audit^on. special.

audit^{of the}

accounts^ofGovernment .·Departments and

Offices including

these declared^ascommercial

departments

in···^likemanner ^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^FundAccounts

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. ^bea

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^feethe

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 ^onwhich^he

desires to^be

present.

;^and ····

(b) ^heshall^be

permitted ^tobe

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 ^totbe·'Exa?

miner of.

Local Fund

Accounts.

10

..

Power of Examiner of Local

Fund

Accounts to

Surcharge

or

Charge Illegal PaymentorLoss

incurred

by Negligence :-

(1) ^Theauditor shall include^inhis

report

(

hereinafter called the audit.

report^{} · a}

statemen?

of,'"-^.-·

(a) every payment. which .appears to ^himto^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) ^{thenameof 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 ^thatany .. 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^onthe

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-tobe accoun- table for ^the

deficiency, ^lossOJ' omission, requiring ^himtoshow cause within^onemonth

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 ^thecause

( ^if

any)

shown ^{by the}person notified, ^the

Examiner^ofLocal^FundAccounts may surcharge any such

payment ^on,

9r charge any such

amount against

him and

shall

in every^suchcase

certify

the amount due from such

person.

(4)

Publication^ofthecertificate ^andtheaudit

report,- The certificate

shall^be

according ^totheforms set forth^{in the} schedule hereto annexed or^tothelike

effect^anda

copy thereof together ^witha

copy^{of the}audit

report

shall^be

published ^inthe prescribed

manner.

11.

Application

of sections

9 and^lOtoAudit conducted

by

the Examiner ^ofLocal Fund

Accounts,- All ^the

provisions

of sections ^9and10 shall

apply

mutatis mutan- dis ^whenthe Examiner^ofLocal Fund Accounts himself conducts any audit under this^Act.

12. Credit

of

certified^sumstoLocal Fund^:'- Except ^ashereinafter

provided every ^sumcertified

under section¹⁰ as due from any

person shall be forthwith

paid

by

him to the local authority

concerned ^andshall

thereupon ^becredited^toitslocal

fund.

13.

Appeal

against

surcharge

or

charge

made

under section

10(1) a) ^:-

(a) ^Anyperson aggrieved^byanysurcharge ^or

charge.made

under section ¹⁰

whether

by

reason^{of its}

being

excessive or in- sufficient, or ^on

any other

ground

whatsoever ;^and

(b) ^Anyperson aggrieved^{by the}omission'^tomakea

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 ⁱⁿcase

(b), appeal ^tothe Tribunal

which may thereupon ^takefurther evidence^ordirect

further evidence^to be

taken

and pass such

orders, including ^anorder^asto

costs, as it may tbink

fit,

and these orders shall

be final.

J4,

Surcharge

or

Charge ^tobe

recoverable^asan

arrear, of

Land Revenue : ^-

(1) ^Thesumstated^inthe

certificate ^oftheExaminer ^ofLocal Fund

Accounts,

in

all cases in which no

appeal

bas.

been:

preferred under

section

B ^andthesumstated

.

in the order ^of,the

appellate authority, ^{in all}casesⁱⁿ

whichari

appeal ^{has been}

preferred, may on his

application

ot dn.

the·

apjlica'tion

of the

lecalauthority ^con-

.

cerned,

within

three years of

the·

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). ^Allc;xpenses qoonecte,d}'}'ithan)! llpplication under

sub-section

(1)

shall

.

bf: ^a

charge ^on

J?e

local : f?nd ^{and allsums}

recovered thereunder ahall ^be

credited to the::sa.i)Jt;

:Jund?:-· ... :

? ..

,· "'·?

-

,

.

,; .

.pa.,:.

·' '..,.

15.

9harges

iil respect-'oC'audit fot>e·-pas?bie^outoflocal fund^:-

All expe?esincur;?d\bt? ..!?cal :?uth;?i-.ittin

.

complying ^withany requisition

under section^.Sshall

·be.,pa:yable ^{out of its}local

fund.

16.

0) ^TheState

.Government.' may, ?Jtei; previous

publication, ^make rules fot the purpose ^·

of

carr.ying

out .the

provisioils

of. ^thisAct.

(2)

·. In?#culllt ah ^{the g}neralit, ^{of the}

fore- going powers, ^{· such}rules ^may

regillate,'---

(i) ^themannerⁱⁿ

which ^alocal

authority

shall

keep

accountsⁱⁿ cases in. which^no

such,

provision .or, in the

opinion

of the State Government,

insufficient -

provision ^{ismade by the}

enactment under which

such

authority

is constituted ; ·

(ii) ^thepowers^and

duties^ofanExaminer^ofLocal^FundAccounts and auditors·

and the

procedure ^tobe followed

.by.

'themⁱⁿ conducting ^anaudit under ^{thisActand the}times ^and

places at which

the audit. IBl:lY be conducted : and

(iii) ^themannerⁱⁿwhich certificate 'Under sectiorr ¹⁰··are^tobe served Qn^the·

persons_ c;png;rn,ed. '

·

(3)

Every ^{rule made}under

tliis ^Actshall ^be.

laid, ^as.^{soon as} may be after it

is

made,

before ^the

Legislative

Assembly ofManipur while

it. ^isin session

for^atotal

period ^ofnotless^thanfourteen

days which may^be

ccmprised ^inonesession^{orintwoormore}successi-^e sessions ^andif·before the

expiry ^{of the}sessionⁱⁿwhich^itissolaid 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 ^insuchmodified^formorbeofnoeffect, ^asthe^case may be,^so,however,

that any such

modification^orannulment

shall be without

prejudice ^tothe

validity

of

anything previously ^doneunder that

rule.

17.

Repeal

of

Repugnant

provisions

in other enactments^:-

Where any enactment by

which^alocal

authority ^isconstituted contains

any provisron

repug11a,nt_to

the

provisions ^of

this ^{Act- orofany} rule ^made

hereunder, that provisions

shall, ^totheextent of^the

repug- nancy, ^bedeemed ^tohave-been

repealed

.by ^thisAct.

18. Repeal ^and

Savings ^:

-

(1/.

'{he },;fanipur Local Funds··(Accounts and

Audit) Ordinance,

1975· (M?ipur':Qrdfnance ^{No.3 of}

1975),

shall stand

repealed ^onthe

day ·this ^Act·

comes^intoforce.

(2) ^Onandfrom:^the;dateen'which^the

provisions ^ofthisAct ·

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?afpd q_1;9Jpanc? by ^the

In?ernal^A

ndit ^Unit of

the

Man,ip1.1r Q?ye?£?hW.

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.^?

force

un!ess.^and

until 1t 1s . supersede.dJ:.>Y,-,l:lilytlj.?,?9??-9r;J!:DY

action

taken¹ⁿ

ac.i:;ordance ?blaw..,.·_. ^>

..

<) ·:,,.J ·. ·

t1·,·",T ·

Power to ruake

rule?,

SCHEDULE

{Sub-Section 10l4)} FORMS 'OF

CERTIFICATE

FORM-I

1.

Against ^anaccounting

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 ^thelocal

authority). - ^--

-

-

I

have disallowed

(or :;urcharged) ^the sum of

Rs. ^{- --} - which

is accordingly

now due from him. As witness^myhand, this ^- -

day

6

and

description

of the

person) FORM-II Against ^a

person ^notan

accounting

officer.

I

do

hereby certify

that in the accounts

of the - -

- - -

_ (Here

enter^thename of - - - - - - - - -

- -

I

have

disallowed the

local

authority). the ^sumofRs.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, ^andIdo

hereby surcharge

the

said - with

the same, which ^is

accordingly

now^duefrom

him. As witness my hand,

this ^--

day

of -

- 19 Exa!Tiiner ^ofLocal

Fund

Accounts.

7