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State of Tamilnadu - Section

Section 7 in Tamil Nadu Local Fund Audit Rules, 2016

7. Preparation and submission of annual accounts for audit.

(1)The annual accounts of a local authority or local fund shall be prepared or caused to be prepared by the Executive authority and presented for audit under sub-section (1) of section 7 of the Act within three months from the close of the financial year in the form and manner prescribed by the respective Administrative Departments:Provided that in cases where the accounting year followed by a local authority or local fund differs from a financial year, the annual accounts of such institutions shall be presented for audit within four months from the closure of the accounting year.
(2)The annual account presented by a local authority and local fund shall include. -
(a)opening balance or opening balance sheet for the year showing the balance in each bank or treasury account;
(b)statement of receipts and payments or income and expenditure under each head of account with Schedules;
(c)the amount at the credit of the local authority or local fund on the date of closure of the financial year showing the balance in each bank or treasury account;
(d)statement showing the demand, collection and balance of revenue collection including arrear collection;
(e)statement of investments made;
(f)statement showing the outstanding loans on the date of beginning of the accounting year, repayments made during the year and outstanding loans on the date of end of the accounting year;
(g)statement of assets and liabilities as on the date of closure of the accounting year;
(h)trial balance and balance sheet along with Schedules as on the date of end of the financial or accounting year;
(i)statement of grants received and utilized;
(j)statement of loans availed and utilized;
(k)statement showing the details of works undertaken during the financial year concerned, amount expended for each work and balance of fund, if any, available;
(l)any other records required for undertaking and completion of audit by the Director or his subordinates.
(3)Where the amount at the credit of a local authority or local fund on the date of end of a financial year or accounting year as per the pass book differ from the amount shown in the books of accounts maintained by the said local authority or local fund, reconciliation statements for all accounts shall be prepared and attached with the annual accounts presented for audit.
(4)The annual accounts presented for audit by the University shall include. -
(a)demand collection balance statement of all receipts (including of tuition fee, entrance fee, examination fee and other fees) collected;
(b)demand collection balance statement of University affiliation fee and sports affiliation fee (to be collected by the Principals of affiliated colleges) remitted to University fund;
(c)demand collection balance statement of fees and other dues collected by the teaching departments of the University including distance education;
(d)the accounts and statements of expenditure relating to the grants sanctioned to the Universities by the University Grants Commission or the State Government or other funding agencies for specified schemes. In the case of continuing schemes, the accounts of such schemes shall be presented for audit as required by the funding agency;
(e)in the case of grants sanctioned by other agencies (including the State Committee of Science and Technology) the accounts relating to the research schemes projects or seminars shall be presented for audit as soon as the research work, projects or seminars is finalised or the grant received is utilised as the case may be.
(5)The Director shall have authority to require the preparation and presentation of any further statement of accounts which he considers necessary for the proper conduct of audit of accounts of a particular local authority or local fund or Universities.
(6)
(a)Non preparation and non presentation of annual accounts shall be reported to the Director by the subordinate officers in-charge of the audit of the local authority or local fund;
(b)Show cause notice under sub-section (2) of section 7 of the Act shall be issued by an officer not below the rank of Deputy Director to the executive authority with an opportunity to furnish the reasons within fifteen days in Form-B;
(c)If the reasons are not satisfactory, penalty may be imposed by the Director as per the provisions of the Act and such action shall be reported to the Controlling Authority and the Government;
(d)The penalty under sub-section (2) of section 7 of the Act shall be levied as detailed below : -
(i) For non-preparation and presentation beforethe due date   : Rs. 1,000/-
(ii) For non-presentation of accounts upto 15days after the due date   : Rs. 2,000/-
(iii) For delay exceeding 15 days upto 30 days   : Rs. 3,000/-
(iv) For delay exceeding 30 days   : Rs. 5,000/-.
(7)
(a)Whereas the annual accounts of a local authority or local fund presented for audit in a defective or incomplete manner shall be returned to the Executive authority concerned for rectification of the defects detected on scrutiny or for supplying omissions noticed within ten days after the receipt of the accounts in audit office. The Executive authority shall rectify or cause to rectify the defects pointed out by audit and resubmits the rectified annual accounts within fifteen days. Such annual accounts shall be deemed to have been presented for audit only on the date of receipt of the annual accounts after rectification of the defects or omissions pointed out by the audit;
(b)Cases of non-presentation and non-resubmission of annual accounts by the Executive authority within the due date and non-submission or re-submission even after imposing penalty, such cases shall be reported by the Director to the Government with the recommendation to withhold release of funds to any authority which fails to furnish accounts for audit on expiry of three months from the specified period.