Section 13 in The M.P. Panchayat Audit Rules, 1997
13. Compliance Report.
(1)On receipt of the audit report, the Sarpanch/President/Chief Executive Officer as the case may be, shall sort out or cause to be sorted out the defects or irregularities which have been pointed out in the report and put up the report together with the facts before the General Administration Committee for a detailed discussion. The Sarpanch or the Chief Executive Officer, as the case may be, shall thereafter call a general meeting at the Panchayat and place the report together with a note on the facts, position and the compliance for the consideration and further action in the matter by the Panchayat. The Sarpanch/President or the Chief Executive Officer, as the case may be shall after the Panchayat has considered the report, lake further necessary action to rectify the defects or irregularities and within the stipulated time, but not later than there months from the date of receipt of audit report send to the audit authority a detailed report on the compliance of the audit observations.(2)He shall also send a copy of said report, in case of Gram Panchayat & Janpad Panchayat to the District Panchayat Officer and in case of Zila Panchayat to the concerned Joint Director of Panchayat. The above said Officers shall scrutinise the report and shall clause to register a case before Prescribed Officer, if necessary. The concerned Panchayat will plead his case before the Prescribed Officer. If the Prescribed Officer is not satisfied with the disposal of audit objection, he shall proceed to fix the responsibility.(3)On receipt of the compliance report the audit authority may :-(a)accept the intimation or explanation given by the Panchayat and withdraw the objection; or(b)direct the matter be re-investigated at the next audit or at any earlier date; or(c)hold that the defects or irregularities pointed out in the report or any of them have been removed or remedied.(4)If the audit organisation holds that any detects or irregularities pointed out in the report have not been removed or remedied, he shall on receipt of the intimation or explanation of the Panchayat or in the event of the Panchayat failing to give such intimation or explanation within the stipulated time send a report to the Director Panchayat stating the details of the defects or irregularities. He shall also send a copy of said report, in case of Gram Panchayat & Janpad Panchayat to the District Panchayat and Social Welfare Officer and in case of Zila Panchayat to the concerned Joint Director of Panchayat. The above said officers shall scrutinise the report and shall cause to register a case before Prescribed Officer, if necessary. The concerned Panchayat will plead his ease before the Prescribed Officer. If the Prescribed Officer is not satisfied with the disposal of audit objection, he shall proceed to fix the responsibility.(5)The Prescribed authority shall have the right to recommend the recovery of any sums or removal of or disciplinary action against, any of the person in the service of Panchayat.(6)Nothing in this rule preclude the audit organisation at any lime from bringing to the notice of the Director. Panchayat any information which appears to the audit organisation to support a presumption of criminal misappropriation or fraud, which in his opinion, deserves special attention or immediate investigation.
