CHAPTER XVIII
Audit
186. Audit of accounts of fund. – (1) The accounts of the funds of a Gram Panchayat, a Panchayat Samiti or a Zilla Parishad shall be examined and audited by an auditor appointed in that behalf by the State Government at such time and place, to such extent and in such manner as the State Government may prescribe.
(2) An auditor appointed under this section shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
187. Submission of accounts to audit. – The Pradhan, the Sabhapati or the Sabhadhipati, as the case may be, shall produce, or cause to be produced, to the auditor all such accounts of the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned as may be required by the auditor.
188. Powers of auditors. – [(1) For the purposes of an audit under this Act an auditor may –
(i) required in writing the production before him of any document or the supply of any information which he considers to be necessary for the proper conduct of the audit;
(ii) require in writing the personal appearance before him of any person accountable for, or having the custody or control of, any such document, or having, directly or indirectly, and whether by himself or his partner, any share or interest in any contract made with, by or on behalf of, the members of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned; and
(iii) require any person so appearing before him to make and sign a declaration in respect of any such document or to answer any question or prepare and submit any statement.]
[(2) If any person neglects or refuses to comply with the requisition made by the auditor under sub-section (1), the auditor may, at any time, refer the matter to the Sub-divisional Officer in the case of a Gram Panchayat, or the District Magistrate in the case of a Panchayat Samiti, or the Divisional Commissioner in the case of a Zilla Parishad, having jurisdiction, and thereupon the Sub-divisional Officer or the District Magistrate or the Divisional Commissioner, as the case may be, shall be competent to issue such direction to the person neglecting or refusing to comply with the requisition made by the auditor as he may think fit, and such direction shall be binding on such person.]
189. Penalty. – Any person who neglects or refuses to comply with the requisition made by the auditor under section 188, within such time as may be specified, shall, on conviction by a Court, be punishable with a fine which may extend to one hundred rupees in respect of each item included in the requisition.
190. Audit report. – (1) Within two months from the date on which an audit under this Act is completed, the auditor shall prepare a report and shall send the report to the Pradhan, the Sabhapati or the Sabhadhipati, as the case may be, of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad and a copy thereof to the State Government.
(2) The auditor shall append to his report a statement showing –
(a) the grants-in-aid received by the Gram Panchayat, the Panchayat Samiti or the Zilla Parished and the expenditure incurred therefrom;
(b) any material impropriety or irregularity which he may observe in the expenditure or in the recovery of the monies due to the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad or in the accounts of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishadfund;
(c) any loss or wastage of money or other property owned by or vested in the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad.
191. Action on audit report. – (1) Within two months from the receipt of the report referred to in section 190, the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned shall, at a meeting, remedy any defect or irregularity pointed out in the report and shall also inform the auditor of the action taken by it. The Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned shall give reasons or explanations in case any defect or irregularity is not removed.
(2) If, within the period referred to in sub-section (1), no information is received by the auditor from the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned or if the reasons or explanations given by it for not remedying any defect or irregularity as aforesaid is not considered sufficient by the auditor, the auditor shall if he has not already exercised or does not propose to exercise the powers conferred upon him by section 192, [refer the matter to the Sub-divisional Officer in the case of a Gram Panchayat, or the District Magistrate in the case of a Panchayat Samiti, or the Divisional Commissioner in the case of a Zilla Parishad, having jurisdiction, and thereupon the Sub-divisional Officer or the District Magistrate or the Divisional Commissioner, as the case may be, shall issue such direction to the Gram Panchayat, Panchayat Samiti or Zilla Parishad, as the case may be, as he may think fit.]
[(2A) If within thirty days from the date of issue of any direction under sub-section (1), no information is received from the Gram Panchayat or thePanchayat Samiti or the Zilla Parishad, as the case may be, or if the reasons or explanations given by it for not removing the defect or irregularity pointed out in the report referred to in section 190 are not considered sufficient, the Sub-divisional Officer or the District Magistrate or the Divisional Commissioner, as the case may be, shall –
(i) specially convene a meeting of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad, as the case may be, by giving seven days notice to the members for discussion of the report as aforesaid, and may appoint an observer for such meeting who shall submit a report on the proceedings of the meeting in writing, duly signed by him, within a week of such meeting;
(ii) refer the matter to the State Government with his recommendation for appropriate action under section 192A, section 196B, section 213 or section 214, as the case may be:
Provided that the Sub-divisional Officer or the District Magistrate or the Divisional Commissioner, as the case may be, may make recommendations under all or any of the sections 192A, 196B, 213 and 214.]
(3) It shall be competent for the State Government to pass such orders thereon as it may think fit. The orders of the State Government shall, save as provided in sections 192 and 193, be final and the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned shall take action in accordance therewith.
(4) If the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned fails to comply with the order within the period specified therein, the State Government may appoint a person to carry out the order, and may determine the remuneration payable to such person, and may direct that such remuneration and any cost incurred in carrying out the order shall be paid from the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned.
(5) A person appointed under sub-section (4) shall, for the purpose of carrying out the order, exercise any of the powers which might have been exercised by the concerned Gram Panchayat, Panchayat Samiti or Zilla Parishad.
192. Power of auditor to surcharge, etc. – (1) The auditor, after giving the person concerned an opportunity to submit an explanation within a time to be specified by him and after considering any such explanation, shall disallow every item of account contrary to law and surcharge the same on the person making or authorising the making of the illegal payment, and shall charge against any person responsible for the amount of any loss incurred by the negligence or misconduct of that person, and shall, in every such case, certify the amount due from such person :
Provided that the auditor may in his discretion waive the surcharge or charge in cases where the amount involved does not exceed twenty-five rupees.
(2) For the purposes of this section any member of a Gram Panchayat, a Panchayat Samiti or a Zilla Parishad, as the case may be, or of aSthayee Samiti of a Panchayat Samiti or a Zilla Parishad who is present at a meeting at which a motion or resolution is passed authorising any expenditure which is subsequently disallowed under sub-section (1) or authorising any action which results in any such expenditure, shall be deemed to be a person authorising such expenditure if his dissent is not recorded in the proceedings. All such persons shall be held jointly and severally liable for such expenditure.
(3) The auditor shall record in writing his reasons for every disallowance, surcharge and charge made under sub-section (1) and shall, in such manner as may be prescribed, send a certificate of the amount due and a copy of the reasons, for his decision to the person in respect of whom the certificate is made, and shall also furnish copies thereof to the Pradhan, the Sabhapati or the Sabhadhipati, as the case may be, and the State Government.
(4) The State Government may, of its own motion and within one year from the receipt by it of the copy of the certificate, set aside or modify any disallowance, surcharge or charge and any certificate in respect thereof made by the auditor.
[192A. Person making or authorising illegal payment to be removed. – If any item of account contrary to law is surcharged on any person making or authorising the making of any illegal payment or if any person is charged against for being responsible for the amount of any loss incurred by the negligence or misconduct of that person, he shall, without prejudice to any other provisions of this Act, be liable to be removed under section 213; and upon such removal, such person may be disqualified by the State Government by an order in writing for being elected a member of a Gram Panchayat or Panchayat Samiti or Zilla Parishad for such term as may be specified in the order:
Provided that the State Government shall, before making any order under this sub-section, give to the person concerned an opportunity of being heard:
Provided further that any order under this sub-section shall be published in the Official Gazette.]
193. Appeal. – (1) Any person from whom any sum has been certified by the auditor to be due under section 192 may, within two months of the receipt by him of the certificate, appeal to the State Government to set aside or modify the disallowance, surcharge or charge in respect of which the certificate was made and the State Government may pass thereon such orders as it thinks fit, and such orders shall be final.
(2) Where a person referred to in sub-section (2) of section 192, who has been surcharged as authorising an illegal expenditure, appeals to the State Government under this section, the State Government shall set aside such surcharge if it is proved to its satisfaction that such person voted for the resolution or motion in good faith.
194. Payment of certified sums. – (1) The sum certified by the auditor to be due from any person under section 192 or where an appeal is made under sub-section (1) of section 193, such sum as may be ordered by the State Government to be due from such person shall, within two months of the date of certification, or order, as the case may be, be paid by such person to the Gram Panchayat, the Panchayat Samiti or the Zilla Parishadconcerned which shall credit the sum to the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned.
(2) Any sum not paid in accordance with the provisions of sub-section (1) shall be recoverable as a public demand and the Collector of the district shall, for the purposes of section 4 of the Bengal Public Demands Recovery Act, 1913, be deemed to be the person to whom such demand is payable.
(3) The Collector of the district shall pay to the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned any sum recovered by him under sub-section (2).
195. Certain costs and expenses payable out of funds. – (1) All expenses incurred by the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned in complying with any requisition of the auditor under section 188 and in prosecuting an offender under section 189 shall be paid from the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned.
(2) All expenses incurred by the Collector of the district in connection with the proceedings for recovery of any sum under sub-section (2) of section 194 from a person, if not recovered from the person, shall be paid from the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned.
(3) If the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned fails to pay expenses referred to in sub-sections (1) and (2) within such period as may be determined by the State Government in this behalf, the State Government may attach the fund of the Gram Panchayat, thePanchayat Samiti or the Zilla Parishad concerned or any portion thereof.
(4) After such attachment no person except an officer appointed in this behalf by the State Government shall in any way deal with the attached fund or portion thereof, but such officer may do all such acts in respect thereof, as the Gram Panchayat, the Panchayat Samiti or the Zilla Parishadconcerned referred to in sub-section (1) might have done if the attachment had not taken place, and may apply the proceeds of the fund in satisfaction of the expenses due, the interest accruing in respect of such expenses and any additional expenses resulting from the attachment and any subsequent proceedings:
Provided that no such attachment shall defeat or prejudice any charge or debt for which the fund attached was previously liable in accordance with law but all such prior charges and debt shall be paid out of the proceeds of the fund before any part of the proceeds of the fund is applied to the satisfaction of the costs and expenses payable to the State Government under this section.
196. Certain expenses not chargeable to funds without previous sanction. – The members of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned shall not without the previous sanction of the State Government incur any expenditure from the fund of the Gram Panchayat, the Panchayat Samiti or the Zilla Parishad concerned in connection with any appeal or proceedings against surcharge, in respect of which a certificate is issued by the auditor.
[196A. Internal audit of accounts. – (1) Notwithstanding anything contained in section 186, the accounts of the funds of a Gram Panchayat, aPanchayat Samiti or a Zilla Parishad shall be organised, examined and audited periodically by an officer appointed in this behalf by the State Government in such manner as the State Government may direct.
(2) Report of such internal audit of accounts shall be sent to the concerned Gram Panchayat, Panchayat Samiti or Zilla Parishad and such other officials, as may be prescribed, within one month from the date of completion of internal audit and be placed for discussion at the meeting of suchGram Panchayat, Panchayat Samiti or Zilla Parishad, in such manner, as may be prescribed.
(3) The Gram Panchayat, Panchayat Samiti or Zilla Parishad shall send replies on the internal audit report to the State Government within one month from the date of such meeting in such manner as may be prescribed.]
[196B. Special audit of accounts. – Notwithstanding anything contained in sections 186 and 196A the State Government may issue direction for special audit of the accounts of the funds of a Gram Panchayat, a Panchayat Samiti or a Zilla Parishad by such authority as the State Government may direct.]
