(1)The Municipality shall maintain its accounts and other books connected with the accounts in the manner and form as prescribed and shall enter the receipt and expenditure accounts forthwith in such books.(2)The responsibility to maintain or cause to maintain the accounts and the connected books of the Municipality in the manner and form as prescribed and to submit or cause to submit such accounts to the Local Fund Examiner for conducting audit in the time shall west with the Secretary.(3)The Examiner of Local Fund Accounts and his nominees shall be the auditors of the Municipality.(4)The auditors shall maintain a continuous audit of the accounts of the Municipality and shall, after completing the audit for a year or for any shorter period or for any transaction or series of transactions, send a report to the Municipality concerned and a copy thereof to Government.(5)The auditors shall specify in the report under sub-section (2) all cases of irregular, illegal or improper expenditure or of failure to recover moneys or other property due to the Municipality or any laws or waste of money, or other property thereof caused by the neglect or misconduct of the officers or authorities of the Municipality.(6)The auditors shall also report to Government on any other matter relating to the accounts of the Municipality as required by the Government.(7)The Municipality shall forthwith remedy any defect or irregularity pointed out by the auditors and report the action taken to Government within three months.(8)The Auditors shall in the performance of their functions under this Act have all the powers of the civil court under the Code of Civil Procedure 1908, (Central Act 5 of 1908) while trying a suit in respect of the following matters, namely:-(a)summoning and enforcing the attendance of any person and examining him on oath;(b)requiring the discovery and production of any document;(c)receiving evidence on affidavits;(d)requisitioning any public record or copy thereof from any court or office and(e)such other matters as may be prescribed(9)The auditors shall, 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 persons incurring or authorising the incurring of such expenditure and may charge against any person responsible therefor 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.(10)The auditors shall state in writing, the reasons for their decision in respect of 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).(11)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 auditor, 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.(12)Where an application is made to the court under sub-section (9) 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.(13)From the decision of the District Court under sub-section(10) an appeal shall lie to the High Court.(14)Every sum certified by the auditors to be due from a person under this Act shall be paid by such person to the Secretary of the Municipality concerned within thirty days after the date of service on him of the decision of the auditors unless within that time such sum, if not so paid, or such sum as the court declares to be due shall be recoverable as if it were an arrear of land revenue.(15)An abstract of every annual report of a Municipality as certified by the auditor showing its receipts under each head, the charges for the establishment, works undertaken, the sum expended on each work, the balance if any, remaining unexpended together with the audit report thereon shall be submitted to the officer authorised by Government, in this behalf, not later than fifteenth day of the second month of the next financial year.(16)On receipt of the report referred to in sub-section (13), the said officer shall forthwith consolidate it and submit to the Government.(17)The Government shall-(a)cause the accounts of the Municipality together with the audit report thereon received by it under sub-section (16) to be laid before the Legislative Assembly; and(b)cause the accounts of the Municipality to be published in such manner as may be prescribed.
