Section 60 in Kerala District Administration Act, 1979
60. Accounts and Audit.
(1)The district council shall keep such accounts and submit such statements to the Government as may be prescribed.(2)Accounts of receipts and expenditure of every district council shall be maintained fat every financial year in such form as may be prescribed.(3)An abstract of every annual account of a district council showing its income under each head of receipt, the charges for the establishment works undertaken the sum expended on each work, the balance, if' any, remaining unexpended and such other information as may be required by rules shall he prepared by the district Council in such form as may be prescribed and submitted to the Government not later than the fifteenth day of the second month of the next financial year.(4)The Examiner of Local Fund Accounts and his nominees shall be the auditor of the district council and shall maintain and keep a continuous audit of the accounts of the district council.(5)The auditors may, after giving a reasonable opportunity to the person concerned to explain his case, disallow every item of expenditure incurred contrary to law and surcharge the same on the person incurring, or authorising the incurring of, such expenditure and may charge against any person responsible there for the amount of any deficiency, loss or unprofitable outlay occasioned by the negligence or misconduct of that person or of any sum which ought to have been but is not brought into account by that person and shall, in every such case, certify the amount due from such person :Provided that no surcharge under this sub-section shall be made after a period of four years from the date on which the expenditure in question was incurred.Explanation. - It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person.(6)The auditors shall state in writing the reasons for their decision in respect or every disallowance, surcharge or charge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908 (Central Act 5 of 1908).(7)Any person aggrieved by any disallowance, surcharge or charge may, within fourteen days after the date of service on him of the decision of the auditors, either(a)make an application to the District Court to set aside such disallowance, surcharge or charge and the court, after taking such evidence as is necessary, may confirm modify or remit such disallowance, surcharge or charge with such orders as to costs as It may think proper in the Circumstances : or(b)in (sic)lieu of such application, may appeal to the Government who shall pass such orders as they think fit.(8)Where an application is made to the court under clause (a) of sub,section (7) the auditors shall be the sole respondents thereto and the applicant shall not make either the Government or any other person a party to the proceedings.(9)Where an appeal under clause (b) of sub-section (7) is made to the Government by any of their officers or servants placed at the disposal of the district council, the Government shall in dealing with the same follow the procedure for an appeal preferred against an order of penalty of recovery from pay.(10)From the decision of the District court under clause (a) of sub· section (7), an appeal shall lie to the High Court.(11)Every sum certified by the auditors to be due from a person under this Act shall be paid by such person to the Secretary with in thirty days after the date of service on him of the decision of the auditors unless within that time such person has made an application to the court or an appeal to the Government, against the decision ; and such sum, if not so paid, or such sum as the court or the Government declares or declare to be due shall be recoverable as if it were an arrear of land revenue.(12)No contribution shall be recovered by the Government from the district council towards the pay and allowances of the auditors or towards any other expenditure involved in the audit of the accounts of the district council.
