Section 6 in The Karnataka Local Fund Authorities Fiscal Responsibility Act, 2003
6. Measure to enforce compliance to this Act.
(1)The State Accounts Department shall enforce compliance with the provisions of this Act and the rules made thereunder.(2)The State Accounts Department may oversee the compliance and a suitable mechanism may be notified by the State Government regarding the submission of periodical review reports.(3)The State Government shall ensure that the local fund authority comply with provisions of the relevant Act and the rules relating to budget and the budget prepared is in accordance with the Medium Term Fiscal Plan already approved and variations, if any, are explained.(4)The local fund authority shall prepare a budget variance report and submit it to the Controlling Authority within such time and in such form as may be prescribed.(5)The local fund authority shall prepare receipts and payments account, income and expenditure account and a balance sheet as may be prescribed.(6)Audit of accounts of the local fund authority shall be conducted by the auditor appointed under the relevant Acts and the rules and orders issued thereunder which is the authority and the report shall be submitted to the concerned authorities within the time stipulated.(7)The Controlling Authorities shall be responsible to ensure strict follow up action on the audit reports by the local fund authority and slackness, if any, noticed in this behalf shall be reported to the State Government for appropriate action against local fund authority in default.(8)The State Government may, by notification, constitute a Local Fund Audit Overseeing Authority comprising of such officers and having such powers as may be specified in the notification. The Local Fund Audit Overseeing Authority shall submit to the State Government periodical report on compliance to audit reports by the local fund authority, as may be prescribed.(9)The State Government may withhold release of funds to any local fund authority which fails to furnish accounts to the concerned authority within six months from the end of the financial year.(10)The local fund authority shall introduce and strengthen appropriate internal audit measures and a sustainable computerisation programme using appropriate technology.
