Rule, 1998

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

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AUDIT RULES, 1997

CONTENTS ..'

Short title ..

Definitions. \ 0 Accounts to be 8:udited annually.

Special Audit. . .\ Submission of Accounts for Audit.

Powers of Auditor.

Auditor not to remove any documents without permission.

Notice of commencement of audit.

Certification of accounts and Statements.

Auditor to report theft, fraud or embezzlement confidentially. Settlement of objections.

Compliance Report.

Audit Fees.

Repeal and Savings.

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(PR)352

MADHYA PRADESH PANCHAYAT AUDIT RULES, 1997.

f---- --- . (Ext.), dt. 13-1-1998, p. 20 (118).- In exercise of the powers conferred by. - . sub-section (1) of Section 95 read with sub-section (1) of Section 129 of the Madhya Pradesh PanchayatRaj Adhiniyam, 1993 (No.1 of 1994), the State Government hereby makes following rules, the same having been previously published as required by sub-section (3)of the Section 95 of the said Act, namely:-

1. Short title.-These rules will be called the Madhya Pradesh Panchayat Audit Rules, 1997.

2. Definitions.-In these rules, unless the context otherwise re- quires.-

(a) "Act"means the Madhya Pradesh Panchayat Raj Adhiniyam, 1993 (No.1 of 1994).

(b)"Auditor", means the Auditors appointed by the State Government.

(c) "District Pancbayat Officer" means the Panchayat officer iIicharge of the revenue district. - (d)"Special Audit" means an audit ofaccounts pertaining to a specified .period of items or series of items requiring through examination.

(e) "Financial year" means the year coomencing on the flrst day 0: April and ending on thirty first March of the succeeding year.-

3. Accounts to be audited annually.-The accounts of a Panchayat shan be audited annually and as far as possible, before the close of the succeeding financial year Account for the complete financial year or years, preceding the elate of audit, shall ordinarily be taken up for audit. The requirement of the annual audit, provided as above shall be independent and shall not be affected by, ths supplementary or ;111~' other • L I l r f j .t e e :r audit ordered, if any, by the Accountant General of the State of Madh)ia Pradesh.

••4. Special Audit.-(l) The competent authority may. in such cir- cumstances as it may deem fit. order a special audit of the accounts of Panchayat for such period and -::0 such extent as may be considered necessary.

(2) In the case of a Zila or Janpad Panchayat, the authority competent to order special audit shall be the Director and the Commissioner of the Division or such other officer as may be authorised by them and in the case of Gram Panchayat the Collector or any other person as may be authorised by him in this behalf. .

(3) For certifying the utilization of Funds received from the Central Government or State Government or their agencies, a Panchayat shall get its accounts audited in such manner. as may be prescribed for this purpose including audit of accounts by Chartered Accounts. and any such audit shall be in addition to that under the Rule 3.

5. Submission of Accounts for Audit.-The Sarpanch and the Secretary of a Gram Panchayat and the Chief Executive Officer of the Zila or Janpad Panchayat shall submit or cause to be submitted for audit all accounts of the Gram Panchayat, Janpad Panchayat or the Zila Panchayat, as the case may be.

6. Powers of Auditor.-(i) Every auditor shall have the right of access at all times to books and accounts. vouchers, statements. returns. cor- .-- respondence, notes -6r~other -documents and records; whether-kept- at.the-----. - ---.-...- office of the Panchayat or elsewhere, and shall be entitled to require from any of the office bearers or any employee of the Panchayat such informa- tion and explanations as the auditor may think necessary for the perfor- mance of his duties as auditor. .

. (ii) If the required information and records are not provided to the auditor within a reasonable time not exceeding three days. the fact shall be brought to the notice of the District Panchayat Officer in case of a Gram Panchayat and to the Commissioner of the Division and Director Panchayat in the case of a Zila or Janpad Panchayat for further ap- ----- -.--=-propriate-actionin the-matter. -

7. Auditor not to remove any documents without permission.-The auditor shall not remove from the office of the Panchayat any books .. vouchers or documents of any kind whatsoever. The auditor may however obtain photocopies or certified copies of such documents and records as may be considered necessary by him for the purpose of audit.

8. Notice of commencement of audit.-The auditor shall give to the SarpanchjPresidentjChief Executive Officer not less than one weeks notice in writing of the date on which he proposes to commence the audit. Pro\lided that the auditor. may, for special reasons to be recorded in writing. give notice ofless than seven days for'the audit or c0II!mence audit without any notice on the authority of the Director of Panchayat or the Commission of the Division or the Collector .

9. Certification of accounts and Statements.-The auditor shall veIj.fy_anc;Lcertify tl1e c_o..r:r.ectnessof the Balance sheet, Receipt and Payment Account, Income and Expenditure Account and all other state- ments and return required to be submitted or attached with -the final accounts as per n~levant accounting rules and other rules.

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10. Auditors Report.-(i) As soon as practicable after completion of the audit, the auditor shall prepare and sent a report in the from appended to these rules to the conce'ned Panchayat and to the District,.Panchayat Officer in the case of audit of a Gram Panchayat to the Conlmissioner in the case of a Janpad Panchayat and to the Director Panchayat in the case of a Zila Panchayat.

(ii)The report shall be concise but shall contain all relevant facts and shall include interalia the followingpoints,-

(a) every sum paid or payable which is contrary to the Act, Rules or orders and directives gh'cn by the State Government from time to time;

(b) the arnount of any deficiency or loss which appears to have been caused by the negligence or miscvL"ductof any person;

(e) the amount of any d"m rcc(;ivedwhich ought to have been but is not brought into account by any person:

(d) the discrep~ncies noticed, if any, on physical verification of cash, securities, stocks and other assets; and

(e) any other material impropriety or irregularity which may have been observed in tRe accounts ather than those mentioned in sub- clauses (a), (bL (c)and (d).

(iii)The auditors report shall state. whether in his opinion land to the best ofhis information and according to the explan8.tionsgb'en to him. the accounts and the information required by the Act and various rules made "thereunder, in the nlanner Jequired and givea true_<:;l.nq"f~ry~ew~;-=-.,..._

(a) in the case of the balance sheet of the State of the Panchayat's affairs as at the end of its financial year;

(b) in the case of receipt Hnd payment account, of .;.;H the funds rc:clved and expended ty the r-::,nch9yat durin.s '~F' period to which it relateti;

(c) in case of the Income and Expenditure Account, of the surplus or deficit of income for the period.

(iv)The auditors report shall also state,- (a).Whether he.has obtained alLthe,informatiqn and explanations which to the best of his knowledge and belief. were necessary for the purposes of his audit;

(b) whether, in his opinion, proper books of accounts as' required by the Act and rules made thereunder, have been kept by the Panchayat; .

(c) Whether the Panchayat balance sheet, income and expenditure account and the roceipt and payment account dealt with by the report are in agreement with the books of accounts and other relevant records. , (v)The auditors report shall be made in the formAR-I&Annexure A-I.

11. Auditor to report theft. fraud or embezzlement confidential- ly.-Where fraud, theft or an embezzlement is detected or may reasonably be inferred from any suspicious circumstances or where any irregularity is noticed in the accounts, the auditor shall forthwith report confidentially the circumstances in writing to the Sarpanch/President concerned as the case may be and also to the Collector.Where a fraud or an embezzlement has been fully investigated by the auditor, he shall submit a complete I report on the case to the Collector and the District Panchayat Officer and in the case of a Janpad or Zila Panchayat the report shall also be required to be submitted. to the Director Panchayat and the Commissioner of the Division. Provided that where the Sarpanch~ or the Up-sarpanch or the President/Vice-President is suspected of being involved in any fraud or embezzlement, no preliminary report shall be sent to such Sarpanch/Up- sarpanch, President/Vice-President.

12. Settlement of objections.-The Auditor shall discuss all items of objection raised by him either ,vith the Sarpanch and Secretary/President and/or Chief Executive Officer, as the case may be, and settle objections on the spot, excepting such item which require further investigation. He shall certify in WIiting in the audit report the fact of his having discussed the objections/suggestion \:vith the Sarpanch and/or the Up-Sarpanch or the Chief Executive Officer and the President/Vice-President, as the case may be:

Provided that nothing in this rule shaH apply in cases where the Sarpancll President and/or Vice-President is involved or is suspected of being il1Volvedin any fraud or embezzlement.

13. Compliance Report.-(l) On receipt of the audit report the Sar- panch/President/Chief Executive Ofticer as the case may be shall sort out or cause to be sorted out the defec~s or irregularities which have been pointed uut in the report and put up the report together \:vith the facts before the General Administration Committee for a detailed discussion, The Sarpanch or the Chief Executive Otllcer as the case may be, shall, thereafter call a general meeting at the Panchayat ctnd place the report --together-with -a--note--orcthe -faets-,.--posltion-and- the- compliance-Tar-llie--- -------- ------- consideration and further action in the matter by the Panchayat. The Sarpanchjpresident or the Chief Executive Officer, as the case may be shall after the Panchayat has considered the report, take further neces- sary action to rectify the defects or irregularities and \:vithin the stipulated time, but not later than there months from the date or receipt of audit report send to the audit authority a detailed report on the compliance of the audit observations. -

(2) He shall also send a copy of said report, in case of Gram Parichayat & Janpad Panchayat to the District Panchayat Officer_C!.ll9tn _c~seofZilC!_ PanchayaCfo-tlie--conceiriea-J ofurDrrector -of Panchayat. The above said Officers shall scrutinise the report and shall clause to register a case before Prescribed Officer, if necessary. The concerned Panchayat will plead his case before the Prescribed Officer. If the Prescribed Officer is not satisfied with the disposal of audit objection, he -shall proceed to fix the responsibility.

(3) On receipt of the compliance report the audit authority may:-

(a) accept the intimation or explanatibn given by the P~nchayat and \:vithdraw the objection; or

(b) direct the matter be re-investigated at the next audit or at any earlier date; or

(c) hold that the defects or irregularities pointed out in the report or any of thenl have not been removed or remedied.

(4) If the audit organisation holds that any defects or irregularities pointed out in the repOlThave not been removed or remedied, he shall on receipt of the intimation or explal1Htion of the Panchayat or-in the event of the Panchayat failing to give such intimation or explanation within the stipulated time send a r~~portto the Director Panchayat stating the details of the defects or irregu18rities. He shall also send a copy of said repQrt. in case of Gram Panchayat & J anpad Panchayat to the District Panchayat and Social \VelfareOfficerand in case ofZila Panchayat to the concerned Joint Director of Panchayat. The above said Officers shall scrutinise the report and shall cause to register a case before Prescribed Officer. if necessary. The concerned Panchayat will plead his case before the Prescribed Officer. If the Prescribed Officer is not satisfied with the disposal of audit objection. he shall proceed to fix the responsibility.

(5) The Prescribed authority shall have the right to recommend the recovery of any sums or removal of or disciplinary action against, any of the person in the service of Panchayat.

(6) Nothing in this rule pr~clude the audit organisation at any time from bringing to the notice of the Director Panchayat any information which appears to the audit organisation to support a presumption of criminal misappropriation or fraud. which in his opinion. deserves special attention or immediate investigation.

14.Audit Fees.-The Panchayat shall be liable to pay such audit fees as the State Government may from time to time, specify in that behalf . 15.Repeal and Savings.-All rules corresponding to these rules inforce immediately before the commencement of these rules are hereby repealed: Provided that any' order made or action taken under the rules so repealed shall be deemed to have been made or taken under the cor- respo6ding provisions of tfiese 'rules.' , -----,-,- -

FORM NO. AR-I

(See Rule 10) AUDITOR'S REPORTOFTHE;\CCOdNTS OF.., . ., ,,', .

ENDEDON have audited the attached Balance Sheets of Panchayat as at 31 st March the Income and expenditure Account and payment. Ac- count for period on that date. annexed thereto;

I. Report as.follows: .

1. I have obtained all the information and explanation which to the best of my knowledge and belief, were necessary for the purpose of audit.

2. In my opinion. proper books of accounts and other records required by the Act and rules have been kept by the Panchayat so far as appears from my examination of such books and records.

3. The Balance Sheet, Income and Expenditure Account and the Receipt and Payment Account referred to in this report are in ,agreement with the Books ofAccounts and relevant records.

4. Allthe' payment made by the Panchayat are in accordance with the law and within the authority of the Panchayat except. .

(report contrary payments if any).

5. No deficiency or loss appears to have been caused by the negligence or mis-conduct of any person excepL (report if deficiency/fraud. loss etc. detected).

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6. All the sum ought to have been received by the Panchayat have been brought into account; except. ... (report unaccounted receipts, if any) ..

7. No material impropriety or irregularity waG obseIVed except, those reported as above.

8. All the grants received by the Panchayat have been utilised and applied in accordance \Vith the terms of sanction and attached conditions except. (report misutilisation/un-' authorised diversions etc.)

9. I have discussed the i:Tegularities, discrepancies and other objections with the President/Vice-Presidents Sarpanch/Up- Sarpanch of the Panchayat and settled all possible objections except. (report in brief main unsettled objections).

10. In may opinion and to U'_ebest of my information and according to the explanations given and subject to the detailed report, annexed hereto the said accounts gives a true and fair view:-

(i) In the case of Balance Sheet, of the state of officer of the Panchayat as at 31st March .....

(ii) In the case of Income and Expenditure Account, of the surplus/Deficit of Income over expenditure for the period ended on that date; and .

(iii) In the case of Receipt and Payment Account, of all the receipts and payment of the Panchayat for the period ended on that date.

s t Place:

Dated:

Name:

Designation:

Place of Positing:

Seal o e s It d .e n h le if

ANNEXURE A-I

DETAILED REPORT ON STATUTORY AUDIT-- -- -- ------------ ----------~-------_.------ -- ~--- -"- -- -- ~- (PERIOD UNDER AUDIT; 1 ST APRIL TO 31ST MARCH )

INTRODUCTORY

Narne of Auditor Designation and Place of Posting Date (s) of Audit From to .

PART I (FOR GRAM PANCHAYAT)

(a) Name of Panchayat:

I. DETAILS OF GRAM PANCHAYAT

PART-I

(e) Catego 7", -~'- c ---~.~------- -u';::;(/) ,-='--"v Present Remarks Pay t::

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(8) {9} (10) (II) Pay- Scale c:-2-.- ... ----c ..

Date of Appoint- ment Details of Appointment Name Name Desig- of Em- nation ployee Design ation S.No.

Name Population of con- Villages "'0•...

ell (/) Z 0 (/) (/) 0

(ii) State any irregulality noticed in ap- pointment and pay fixation etc.

(iii) State whether the number of employees of the Panchayat are ade- quate? If the employees are considered to be inadequate or surplus or in ex- cess, give details with reasons.

S.No.

(PR)358

II. DETAILS OF PANCH/SARPANCH

(a) Names 8.nd address of Sarpanch, Up- S~~panch and SecretaI}' holding office during the period under audit.

(b) Details of present Salpanch/Up-sar- panch & Panch:

(c) Date on which elections to the Panchayat were last held.

any, noticed with regard to the co-op- tion and disqualification -of Panch etc. - (III) DETAILS OF EMPLOYEES:

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(a) State whether the service records of the employees are complete. Indicate the instances where they are incomplete.

Report the cases where appropriate ac- tion has not been taken against employees for misco ~ductjlosses damages, defalcation, embezzlement.

PARr I (FOR JANPAD PANCHAYATS)

(a) Name of Janpad Panchayat:

(d) Number of Villages

(e) Number of Panchayats .

DETAILSOF JANPAD PANCHAYAT:

DETAILSOF PRESIDENTjVICE-PRESIDENT Names and address of President, Vice- President and the Chief Executive Of- ficer. holding office during the period under audit.

(b) Details of present President, Vice- President, Panch and CEO.

na- tion Mode Date Term (Electedj Co- opted).

chayat gory- Repre- (SCjSTj sented OBC/\Vn

(c) Date of which election to the Janpad Panchayat were last held, any, noticed with regard to the co-op- tion and disqualification of Panch etc.

III. DETAILSOF EMPLOYEES:

S.No. Name of Employee Desig- nation Dt. of Appt.

Pay- Scale Strength Remarks Sanctioned/ Filled

(i) State any irregularity noticed in. ap- pointment and pay flXation etc.

(ii) State whether the' number of employees of the Panchayat are ade- quate? If the employees are considered to be inadequate or surplus or in ex~ cess, give details with reasons.

(iii) Whether the service records of the employees. are complete. Indicate the instances where they are incomplete.

(iv) Report the cases where appropriate ac- tion has not been taken against employees for misconduct/losses, damages, defalcation, embezzlement etc.

PART-I (FOR ZILA PANCHAYATS)

(a) Name of Zila Panchayat:

DETAILS OF ZILA PANCHAYAT:

(B) Name of constituent Population Gender- classification

(ii) State any irregularity noticed in .ap- pointment and pay fIxation etc.

(iii) State whether the number of employees of the Panchayat are ade- quate? If the employees are considered to be inadequate or surplus or in ex- cess, give details with reasons.

(iv) State whether the service records of the employees are complete. Indicate the instances where they are incomplete.

DETAILS OF PRESIDENT/VICE-PRESIDENT /

CHIEF EXECUTIVE OFFICER

Nanle and address of president/Vice- Pres-ident, and CEO holding office' during the period uJ)der audit.

Details of present President/Vice- . President, Panch and CEO.-- - -i ---- .. - .-. - - •.. _ .. - ._- --- .. -.-.----.------ --.--- --------. - --- - Category Women) Strength Sanctioned/Filled up tion Class & Designation Details of Appointment Mode . Date Term (Elected/ Co-opted) Date on which elections to the Zila Panchayat were last held.

Cont ravention/non-compliance, if any. noticed with regard to 'the co-op- -_.

lion and disqualification of Panch etc.

DETAILS OF EMPLOYEES:(e) (c) (el) II.

(a) S.No.

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(v) Report the cases where appropriate ac- tion has not been taken against •.

employees for misconduct/losses damages, defalcation, embezzlement.

PART-II

MEETINGS OF THE PANCHAYAT

AUDI~ORS OBSERVATION

(a) Whether or not the meetings of the panchayat and Standing Committees were held in time and as per the rules;

Report irregularities.

(b) Whether or not the minutes of the meetings were properly recorded and duly confirmed and signed by the Chairman of the meeting.

PART-III

PREVIOUS AUDIT REPORT

fa) Period upto which last audit was com- pleted and report received. Report the reasons for the delay, if any.

(b) Has the Panchayat submitted the com- pliance report on the audit observa- tionson.time? If-not state-reasons.----.---.----, . -,.... . .. _

(c) Irregularities reported earlier and still out-standing as on the date of current audit.-

(i) Serious irregularities

(ii) Other objections/suggestions not complied With.

(d) In case where action has been taken by the Panchayat on the reported obser- satisfactory? If not give details.

(e) Further suggestion for expeditious dis- posal of the pending objections.

PART-IV

CASH BANKS AND ACCOUNTSCASH

(a) Is the cash maintained in the effectiv~ custody as per the rules?

(b) Does the Panchayat carrying cash;

balances as per the requirements and subject to the maximum cash retention limit prescribed in the rules?

(c) Have the cash balances been checked and physically verified at periodiG in- tervals b)r the authorised official?

(d) Discrepancies if any, noticed on physi- cal verification of cash by the Auditor.

(g) Any other item in this regard deserving special attention.

BOOKS & RECORDS

(a) Has the Panchayat maintained the books of accounts and other relevant records as per the Accounting Rules? AUDITORS OBSERVATIOl'i Were balance confirmation certificates obtained in respect of outstanding balances in each bank account as on 31st March each year.

statement for every bank account prepared? If not, the nature and extent of difference in the balance as per books and bank cert.ificate as on 31st March.

Observations on the conciliation state- ment.

(i) (ii) (f) Details of cash transactions remaining .unresponded.

Details of bank charges and other ex- penses charged by bank requiring ad- justments.

Details of cheques issued but not presented for payment for over a period of each six months.

not credited by the bank beyond one month.

(d)

(e) Instances where cash payments were made in excess of the limits prescribed in the rules and reasons therefor.

(a) Are the bank accounts kept in ap- proved banl,{s and. are they being operated by the authorised persons as per the rules?

(b) .Are the cheque books and pass books are kept in the custody of the authorised officer?

(c) Instances of unusual delay in deposit- ing in bank the' chequejDD or other instruments received by the Panchayat and reasons therefore.

(iii) - (e) .

(PR)362 I .

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I 1 I I (;:-1 Does the scrutiny of the books of ac- counts and stock records indicate that they have been properly maintained, with balances duly Lnked out any authenticated by the authorised" sig- _ natories?

(c) Has the Panchayat carried out the re- conciliation of the following records:-

(i) Balance in Bank column of cash book with the aggregate balances of the bank register.

(ii) Balances ..in General ledger with sub- sidiary recdrds of the following ac- counts:

(1) Specific purpose grant Account with Register of specific purpose Grants.

(2) Rent, Rates & Taxes received Account with Recovery column in Register of monthly and annual reno.rates & Taxes register.

(3) Security a~1ddeposits from employees & others Account with Register of Security and deposits.

(4) Loans and Advances to Staff Account. __ _ -with:-- -. --_.-- --,------ --------..------.-.------------ -.--.-----.---c------------.---- . =-_~ __

(1) Interest bearing Loans & Advances Register

(2) Non interest bearing Loans & Advances Register.

(5) Investments Account with Investment Register

(6) Fixed Assets Account with Register of Immovable p~?~e~ti~s~._. . . _ In case of discrepancies notice indicate the General Ledger balances and sub- sidiary records balance as on 31st March and period upto which the ac- counts, were reconciled.

(I) Particulars of Accounts Balance as per General Ledger Balance as per Remarks Subsidiary records

(e) Any other irregularities noticed, in maintenance of books of accounts and other records.

(0 Comment upon the difficulties, if any faced by the Panchayat in accounting of the transactions? l_~ __ ••.••. _

(g) Suggestions for improving/Simplifying the accounting system records.

MONTHLYAND ANNUALACCOUNTS

(A) Has the Panchayat regularly prepared a trial balance and statement of receipt and disbursements at the end of each month and placed before the meeting of the Panchayat?

(8) Have the Annual Receipt and Disbur- sement Account, Income & Expendi- ture Account and the balance sheets been properly drawn up and prepared on time? Indicate the delay, if any, in preparation, placement and approval of accounts by the Panchayat and its submission to the Government.

PART-V

VERIFICATION OF INCOME AND EXPENDITURE

INCOME

(a) Has the Panchayat issued proper receipts in the prescribed form ac- knowledgipg th~ receipts .of.all. funds .

whether by cash/cheque or through other instruments?

II. TAXES, FEES AND CESS ETC.

(a) Are the Taxes/fees/cess levied by the Panchayat as per the rules? Report contraventions and also indicate the obliga tory taxes not levied by Panchayat together with the reasons therefor.

(b) Give separately the details of each tax/fees/cess etc. the realisation of which fell short by 50% or more of the demand for the year? Are there any divergent trends in major items of tp.xes/cess/fees? If so, report the divergent trends with explanations of the Panchayat for the decline. in the income.

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\i i I Comment upon the quality of the receivables and give the over-due posi- tion of all the receivable income, as on 31st March.

Short-fall Panchayat reasons Auditors remarks for the year Cess (c) S.No.

Period of outstanding amountParticulars of Tax/ Amount outstand- 109 as on 31st March Upto 1 year Upto 1-2 year Upto Up to 2-3 year Above 3 year l

(1) Total outstanding for less :han 1 year

(2) Total outstanding for more than 1year but less than 2 years.

(3) Total outstanding for more than 2 years but less than 3 years.

(4) Total outstanding for 3 years or more

(d) Details of the outstanding income which is considered bad or doubtful of recovery and steps taken for remisL sion/writing off of such receivables.

(e) Has the Panchayat made satisfactory efforts for realisation of all its income?

OTHER INCOME

(i) Have the rent rates & taxes on the properties belonging to or vested in "Panchayat-been properly' realised?-- ------- ---------:~-------------------__---~=-.,.--~-c--_---:--

(ii) Do the scrutiny of the accounts and other records reveal any loss of revenue because of failure or incorrect impositions of fees/rent/rates/ _ taxes/surcharge fines etc.? Quantify • the amount of leakages or loss under each head and name the official responsible for such 10sses/ leakages.

(iii) Has -the accrued income- shoWn in the,--------------------------- Balance Sheet been correctly worked out to reflect the exact amount of in- come due and outstanding as on 31st March ....

EXPENDITURE - IV

(a) Details of expenditure incurred by the Panchayat not sanctioned by the c'om- petent autl:Iority. -

(b) Details of expenditure sanctioned in excess of the delegated authority.

(c) Details of expenditure incurred without budgetary provisions or in ex- cess of the budgeted limits._

(d) Details of expenditure not supported by proper bills/cash memo receipts other documentary evidence.

(e) Details of expenditure wrongly clas- sified and booked under incorrect ac- !Jounting head (only those expenditure be reported which could not be correct- ly classified during audit).

(f) Details of expenditure incurred by the Panchayat not related to the approved activities of the Panchayat.

(g) Details of expenditure which is con- sidered by the Auditor to be un-jus- tified or excessive.

PART - VI

ASSETS AND LIABILITIES

•(Give details of the receipt utilisation and balance of all the grants received during the year in the Annexure 'A') -

(iv) Were the contributions payable, if any" by the people towards the various scheme received as an- tiCipated/agreed/prescribed? Report the short falls and change in the form of contributions, if any.-

(v) Were the assets created/acquired out of grants been properly accounted for in the prescribed manner?

GRANTS

(i) Was the sanctioned grant received fully and in time? Report the cases where the sanctioned grant could not be received or receipt was delayed be- cause of ommissions/commission on the part of the Panchayat.

(ii) Were the grants _received utilised for the purposes for which they were sanc- tioned? - Report- the- - non:..com- -- pliance/contraventton of the terms of ?anction in respect of each such grant.

(iii) Were all the grants fully utilised? Give details of non-utili~ation/under u'tilisation of each grant together "lith the reason s.

Remark..

Reason for utilisation Unspent balance Amount utilised Amount received Nature of grant I I ~.

I

L, ',

Ii' I " ,H

(vi) Report the delay and irregularit.y ob- senred if any, in respect of distribu- tion/transfer of grants received by the Panchayat. (Incase of Zila Panchayat to Janpad Panchayat and incase of Jan- pad Panchayat to Gram Panchayat).

(a) Were the loans obtained justified and.

properly approved and authorised by the appropriate authority? :b) Were the terms and conditions of loan reasonable. If detrimental to the inter- ests of the Panchayat speci~{.

c) Have the repayments of loan install- ments has been made regularly and on time.

(d) Has the interest paid/payable has been correctly calculated and paid? (eJ Give the details of the loans obtained and outstandings in the prescribed an- nexure 'B'.

ITI - FIXED ASSETS

(a) Have the fixed ass.ets )~as been pur-. . _". .:.:.._. _chased/acquired -according- to -the're:.: - . quirements and as per the p:escribed rules? (b: Have all the fixed assets owned or vested in the Panchayat, been properly and safely kept and maintained? (el Give details of the fixed and other as- sets lying un-used or irrepairable or damaged or Obsolete and the steps taken for their gisposal/write affas per. .. __. ._. _ the rules.

(d) Have the sale/transfer /write-off of as- sets been made as per rules and ac- cording to the prescribed procedure? If not details,

IV - STORES & OTHER DEAD STOCKS

(aJ Were all the purchase of stores and.

items of dead stock made :'in accord- ance with the rules? If not details.

(b) Was adequate internal control exer- cised over issue and custody of stores, stationery and other items? If not details.

V - INVESTMENTS

(a) Have the investments been made in the prescribed securities and as per the ::Jrescribed procedure? 'I

(b) Have the investments have been judi- ciously made to ensure maximum pos- sibre retums on the investments?

(c) Has the income from investment been realised on time? If not details.

(d) Are the -investments held in the name of the Panchayat and are they kept in proper custody, as per rules?

(e) Have the investments been renewed /realised oil maturity on time?

VI - SECURITI DEPOSITS & EARNEST MONEY

(a) Have security and other deposits (in- cluding earnest money) from employees and out-siders been ob- tained as per rules? details of instan- ces where inadequate improper or no securities were obtained.

(b) Have the securities obtained been kept in safe custody and verified by the authorised official as per rules?

(c) Were the deposits and earnest money refunded under proper authority and as per the niles/terms of agn~e-men"t? --

(d) VVTerethe seculity deposits made. by the Panchayat recovered on time, "(a) Were the loans and advances made properly sanctioned and proper agree- ment/ other documents executed?

(b) Have the loan/advances recovered as --~ " . per the terms of sanction and stipu-" lated repayment schedule? Give details of over-due amount of interest and principal in respect of each such loan and reasons for their outstanding .

(c) Has the Panchayat taken satisfactory steps for recovery of allover due loans and advances? Report in detail the loans and/or advances considered doubtful of recovery or bad and recom- mended to be written off. ';

(d) In the case of advances made to Sar- panch, Panch and employees against travelling or expenses give details of instances where:

(i) Advances made were excessive or disproportionate to the anticipated ex- penditure? 'I I ..I I I I I "j Forms

(ii) New advances were made v.ithout adjustment/recovery of old outstand- ing advances.

(iii) In-ordinate delay noticed in sub- mitting the bills and non recovery of advances from salary and other paY--

(jv) Advances made to ex-Panch/Sar- p~}nch/ex-employees. which w'ere left unrecovered/unadjusted on their vacating the office/retirement/ removal/transfer etc. comment on ef- forts made for their recovery.

PART- VIV

(~R)369

I - PHYSICALVERIFICATIONS AUDITOROBSERVATION

(a) Has the Panchayat carried out physical.

verification of the following item$ at reasonable intervals and as per rules?

(i) Cash;

(ii) Receipt-books;

(iii) Postage Starllps;

(vii)Movable properties (eg. Vehicles.

Machines, Equipments furniture & fixture etc.) (viii)Dead stock (Stationery etc.)

(b) Have the discrepancies/irregularities noticed on physical verification proper- ly attended to and proper steps taken {orrecovery of shortages etc:

(c) Report the discrepancies/irregularities noticed on physical verification by auditor.

(d) List the ir-repairable/useless obsolete assets and comment upon the steps taken by the Panchayat for their dis- posal /write-off.

II - INSURANCE

(a) Has the Parichayat insured the cash';

and fixed assets and other stocks on time? Report the instances where the assets were left un-insured.

I ~_ Name of Assets_ Amount Period of un- covered risk Reasons

I - BUDGET

(a) Was the budget prepared on time and as per the procedure prescribed in the rules? Comment upo'n reasonabIlity or" otherwise on anticipated. Income& Ex- penditure. Indicate.

(b) The dates on which the budget was approved and sanctioned by various authorities.

(c) Report in details the expenditure in- curred in excess of sanctioned limits and the reasons there of?

(b) Is the insurance cover obtained ade- quate?

(c) Has the appropr;ate policy taken for necessary fidelity insurances?

(d) Have the appropriate insurance claims been duly lodged on tl!TIeand received? If not, indicate each case with amount involved.

III - WAIVER/WRITE-OFF

(a) Have all the waivers, remissions, reductions of demands are write-off been made as per rules and after ob- taining proper permission of the com- petent authority.

(b) Indicate the unauthorised and/or un- . justified waivers/write offor reduction or proposals therefor, Comment upon the reasons given by the Panchayat.

PART - VIII

.- (1) Was the expenditure incurred on developmental works made as per.

projections? Report major deviations.

(d) Was the additional/excess expenditure .sanctioned by supplementary budget

(e) Was the Income earned at1eastequal to the Anticipated income? Report';short falls.

i I I i ,I .. !I.

, I Particulars •Source of In- come penditure Anticipated in budget Actual Expen- diture Actual receipts --_.- - -.------ --I Remarks Reason for short fall Particulars of expenditure --I Budgetory Actual expen- diture Reason foc excess short expenditure

PART - IX

(a) Furnish particulars of instances of frauds discovered and defalcations, embezzlements and other serious financial ir-regularities and lapses noticed during the period under audit.

(b) Has the Panchayat taken appropriate action in the matters indicated in? Are you satisfied with the steps taken by the Panchayat for recovery of the losses and for punishing the responsible per- son?

(c) Suggestions, if any for avoiding the recurrence of frauds etc.

Wh~t:b-~r__Jhe_p<;LPGh..ayaLwas__able_ to . ,- . _ discharge its obligatory duties and functions properly? Whether the resources available with the Panchayat were adequate for its proper functioning. If not, suggest ways and mean to improved. the ° resource position of the Panchayat.

Comment upon the over all financial position of the'Panchayat.

Review and indicate the performance of the Panchayat with reference to the achievement of physical and fmancial targets. Set for the various schemes and programmes.

(c)

PART-X

APPRAISALOF FUNCTIONINGOF PANCHAYAT

(~L (b) -----(dt Place:

Dated:

(SIGNATUREOF THE AUDITOR) Name:

AUDITOR OBSERVATION

(i)_ -

INSTRUCTIONS

The replies given by the auditor should be precise, factual and in detail. No vague comments. should be ffi?de while observing non -compliance of the rules, directiveso_orders etc. The relevant provision of the Act/rules and order, circular No. etc. must also be quoted.

AN NEXURE-A

ANNEXURE ..... TO THE AUDITORS REPORT ON THE ACCOUNTS

OF PANCHAYAT DISTRICT FOR THE YEAR

ENDED ON 31ST MARCH .

RECEIPTS UTILISATION AND BALANCE OF GRA..1\J"TS

(il) All the questions should be answered, a.'1dleft blank. Jf the question is not applicable, it should be so stat,ed.

(iii) If the .space provided is found insuffi- cient, the replied may be given in separate sheets to be attached with the report. Such separate sheets should clearly indicated the numbering of the part and point to which it relate.

(iv) Each page of the report should be ini- tialed and the last page signed by the auditor.' Amount received during the year Out of grant Total utilisa- tion upto 31st March Opening balance if any, as on 1st April

UTILISATIONS OF GRANT

Out of people con- "tribution Sanctioning authority Name of the (purpose or grants) (l). . - - (2) S.No.

Contribution Total grant reed. from people available cash Labour with Value of Total Panchayat . ---materials------------ ,I "'IIIII I I' I: ! BALANCE OF"UNSPENT GRANT Out of Peoples contribution Cash Materials I.:,." I.

I i" I I ILl j'I:1': h Out of sanc- tioned grants Total unspent grant as on 31st March Forms Fixed ( L5)

PHYSICAL TARGETS

(PR)373 Remarks

EXECUTIVE OFFICER

SARPANCH/

PRESIDENT

AUDITOR

ANNEXURE-B

...................... PANCHAYAT

STATEMENT SHOWING OUTSTANDING BALANCES OF LOANS

AS ON 31st MARCH .

S.No. Source Rate of in- from terest where ob- tained Balance at Loan ob- Repay- the begin- tained ments ning of during the during the the year year year Balance out-standing at the end of the year c::- c:0.. - SEC~lARY /CHIEF

EXECUTIVE OFFICER

L ._

SARPANCH/

PRESIDENT

Remarks Whether or not the repayments of inter- est and principal in- stallments have been timely made as per terms of Sanction.

AUDITOR

PART-I

GENERAL

ZILA PANCHAYAT (BUSINESS) :RULES, 1998

CONTENTS

ZILA PANCHAYAT (BUSINESS) RULES, 1998(PR)374

I, II " I

I ..

I' j, 'i' :I .

:1'1' I! \ ,I II! " ,j"1

II /,

I I , I I ' ; I

3. Cases to be brought before the General Administration COmmit- tee.

4. Consideration on Priority basis.

5. Financial Power.

6. Recording of Material Differences.

7. Delegation of powers or transfer of functions to be specifically described.

PART-II

CASES TO BE SUBMITTED TO THE STATE GOVERNMENT

OR PRESCRIBED AUTHORITY

9 to 14.

f •

PART-III

CASES TO BE SUBMITTED TO THE PRESIDENT

OF ZILA PANCHAYAT

PART-IV

CASES TO BE BROUGHT BEFORE THE GENERAL

ADMINISTRATION COMMITTEE

PART-VI

18. Procedure for Secretaries of Standing Committees.

19. Procedure of Standing Committee.

20.. Procedure in the General Administration Committee in respect of

21. Legal Opinion.

22. Chief Executive OfficerofZila Panchayat.

23. Miscellaneous.

24. General.