Section 18(1) in Tamil Nadu Local Fund Audit Rules, 2016
(1)Any defalcation or loss in money or stores of any local authority or local fund caused due to misappropriation, theft or natural calamities detected by the Executive authority shall be reported to the Director within three days along with the details of defalcation and circumstances leading to the loss. The report shall be made to the Director or his subordinate officer in charge of audit of the institution.
