Section 38 in The Maharashtra Management of Irrigation Systems by Farmers Rules, 2006
38. Financial Audit.
(1)At the end of each financial year, and not later than three months after the commencement of the new financial year, the Water Users' Association shall cause its accounts to be audited in the following manner,-(i)The Managing Committee shall, appoint an Auditor who has adequate experience in normal auditing work in the case of the Water Users' Association at Minor Level and Project Level Association of minor irrigation projects. In the case of Distributory Level Association, Canal Level Association and Project Level Association of Major and Medium Projects, the Managing Committee shall appoint a Chartered Accountant as an auditor for auditing the accounts. For this purpose, the Canal Officer not below the rank of Superintending Engineer shall invite applications from desirous and competent Chartered Accountants to work as Auditors for the Water Users' Association and prepare a panel of such duly selected Chartered Accountants. The Water Users' Association shall appoint one of the Chartered Accountants included in the such panel.(ii)The Auditor so appointed by the Water Users' Association shall take all steps necessary to scrutinize the accounts of receipts and expenditure, within thirty days of his appointment and furnish the audit report along with the statement of accounts and balance sheet to the Chairperson of the concerned Water Users' Association before the 31st July of every year.(iii)The Managing Committee of a Water Users' Association shall take note of the Audit Report and prepare audit rectification report, if necessary, which shall be submitted to the Auditors within one month of its receipt.(iv)The audit report shall be submitted to the General Body in its meeting before the 30th September of every year. The General Body will take note of the audit report.(v)The Managing Committee of a Water Users' Association shall furnish the "Action Taken Report" to the General Body, as well as to concerned Canal Officer and Water Users' Association at Upper Level on all matters as pointed out in the audit report and the Managing Committee shall implement the decisions of the General Body in this regard.(vi)The financial year of the Water Users' Association shall commence from 1st April to 31st March.(2)The Secretary of the Water Users' Association shall be responsible for maintaining, safe keeping and custody of all the financial documents such as cash book, ledgers, and such other documents and shall sign the necessary documents on behalf of the Water Users' Association as and when authorized by the Management Committee of the said Water Users' Association.(3)The Audit under section 59 shall include in addition to the other matters the examination and verification of the following items, namely :-(i)Over dues of debts, if any.(ii)Cash balance and securities and valuation of the assets and liabilities of the Water Users Association.(iii)Whether loan and advances and debts made by the Water Users' Association on the basis of security have been properly secured and the terms on which such loans and advances are made or debts are incurred are not prejudicial to the interest of the Water Users' Association and its members.(iv)Whether the Water Users' Association has properly utilized the financial assistance, if any, granted by the Appropriate Authority or financial institutions, for the purpose for which such assistance was granted.(v)Whether the Water Users' Association is properly carrying out its objects and obligations towards its members.(4)The Canal Officer or the person authorized shall, for the purpose of audit, at all times have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of the concerned Water Users' Association and may summon any person in possession or responsible for the custody of any such books, accounts, and such other documents to produce the same at the headquarters of the Water Users' Association.Chapter-VIIConflict Resolution
