Special Audit

(1) A Co-operative Society dealing with funds from the Government or other external individual or institution may be subject to a special audit initiated by the Registrar at the request of such creditor or of his own motion with written specific order/direction. (2) Special Audit under sub-section (1) shall be done by District Audit Officer/Senior level Audit Officers or any Committee of such Officers under the control of Registrar. (3) Where the Special Audit reveals serious mismanagement in the Co-operative Society, costs of such Special Audit may be recovered from the Co-operative Society or the persons responsible for the mismanagement. (4) Every Special Audit shall be completed and the report submitted to the Registrar within one hundred and twenty days from the date of issuance of the order. (5) The Special Audit Report shall contain a statement of :- (a) every payment which appears to the Auditor to be contrary to Act, Rules or Bye-laws of the Society, (b) the amount of any deficiency, waste or loss which appears to have been caused by the gross negligence or misconduct of any person in the performance of duties, (c) the amount of any sum received which ought to have been accounted for, but it is not brought into account by any person, and (d) any asset or money to which any person related with the organization or management of the Co-operative Society or any former or present member of the Co-operative Society has misappropriated or fraudulently retained any property of the Society. (6) The Registrar shall, within a period of thirty days from the date of the receipt of the Special Audit Report transmit copies of the same to – (a) the applicant creditor, (b) the Co-operative Society concerned, and (c) the authorized Audit Officer to file proceedings of surcharge, where necessary, under Section -40.