Section 110 in Punjab Panchayat Samitis and Zila Parishads Finance, Budget and Accounts Rules, 2014
110. Extent of Audit.
(1)The manner and the procedure of audit shall he determined by the audit authority and if a change in such a procedure involves financial implications, such a change shall be prescribed only alter consultation with the Government.Act, Rules or Instructions issued by the Government from time to time, shall also be kept in view by the audit authority while auditing,(2)The Officer deputed by the audit authority for the audit of accounts shall be competent to physically verify-(a)investments; and(b)store, stock and other property,(3)In addition so the ordinary audit, higher audit shall also be conducted by the Audit Authority with reference to the following cannons of financial propriety:-(i)every Public Officer should exercise the same vigilance in respect of expenditure incurred from the public funds as a person of ordinary prudence would exercise in respect of the expenditure of his own money.(ii)money borrowed on the security of allocated revenue should be spent only on those objects as provided in the rules made under the Act, if the money is utilized on works which are not productive, arrangements should be made for the amortization of the debt; and(iii)no authority should pass an order in exercise of its powers of sanctioning expenditure, which shall be, directly or indirectly, to its own advantage.(4)Public funds should not be utilized for the benefit of a particular person or section of the community unless;(a)the amount of expenditure involved is insignificant; or(b)a claim for the amount could be enforced in a court of law; or(c)the expenditure is in pursuance of recognized policy or custom.(5)The amount of allowances such as travelling allowances granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipients. Without prejudice to the other audit functions, a list of the more important matters that may be taken up in higher audit is given below,-(a)examination of Administration Reports dealing with public expenditure;(b)scrutiny of orders delegating financial authority;(c)scrutiny of Rules and Orders affecting expenditure and other transactions subject to audit;(d)scrutiny of the financial position and suggestions for increasing income or reducing expenditure for maintaining equilibrium;(e)scrutiny of outstanding realisations and collection of information from the assesees to ensure the correctness of the arrears;(f)scrutiny of refunds or rates and taxes to ensure that there is no leakage of revenue;(g)scrutiny of expenditure with a view to see that it is necessary and to make suggestions designed to stop extravagant expenditure;(h)in order to see that the travelling allowances bills are not made a source of profit-(i)scrutiny of bills of Heads of institutions and other officers who countersign their own bills with special regard to the necessity and frequency of journeys and halts to see if they show any special feature which cannot be objected to in the ordinary audit;(ii)scrutiny of all travelling allowances bills particularly journeys by motor with a view to checking excessive demands;(iii)scrutiny of countersignatures on bills to show if the Controlling Officer is not showing undue laxity;(iv)suggestion for transfer of headquarters in order to effect economy in travelling allowances charges and to facilitate the work of officers concerned;(v)scrutiny of actual expenses on account of hire of conveyances and other charges with a view to fixing a suitable monthly allowance;(vi)scrutiny of frequent bills for short journeys; and(i)scrutiny of bills for pay and allowances with a view to see that the allowances or scales of pay are not excessive in comparison with that of similar posts under Government or in adjoining local bodies;(j)As regards supplies and services-(i)the instance of calls for tenders being made before contracts are given and on comparison of local rates with those at important trade centers before placing orders;(ii)comparison of rates in the neighbouring localities for the supply obtained and contracts entered; and(iii)in cases of water and electric supplies and other similar works, the comparison of quantity of the work done with the consumption of fuel; and(k)scrutiny of water-supply, electricity' and other contingent charges with a view to suggesting the possibility of effecting economy.
