MAR.

(PHGN. 21, SAKA) IIARYANA COVEllNMENT LAW AND LEGISLATIVE OF.PARTMF.NT Notlflculton The 12th March, No. L.cg. 12/2019.-The following Act ofthe Legislature ofthe Stateof Haryana received ?he asser?t of the Governor of Haryana on the 8th March, 2019.indis hereby published for general information :- HARYANA ACT NO. 12OF TIIE IIARYANA ACCOUNTABILITY OF PUBLICFINANCES ACT, AN ACT to provide for accountability i11 the financial administration of the State by way of nn efficient and effective system to facilitate accountability through appropriate accounting and auditing system of accountable and auditable entity and for matters connected therewith or in cid e ta I the re to. Be it enacted by the Legislature of the State of Haryana in theSeventieth Year of the Republic of India as follows:- 1. (I) This Act may becalledthe HaryanaAccountability ofPublicFinances Act, 2019. (2) It shall come intoforce on such date, as theStateGovernment may, by notification inthe Official Gazette, specify. 2. In this Act, unlessthe context otherwise requires,- Detimtions. (a) "accountableandauditablc entity" means allthe Departments. Boards, Corporations, Co-operative Societies. Universities, local authorities, statutory bodies, public institutions, andother authorities established, controlled or financed by theState Government, Non-Government Organizations which receive grant-in- aid or contribution from StateGovernment and allthose entities thatreceive public moniesfrom theStale Government in any form includingorganizations which receive funds from the consolidated fund or the State: ..... . . ? ' • ' .. ::, ? , (b} (c) (d) (e) (? (g) (h) "account officer" means anyperson, including thoseoutsourced or hired. whohas been assigned thework to maintain the accounts ofincome and expenditure including financial book-keeping of an accountable and audirablc entity; "auditofficer" means any person, including those outsourced or hired. who has been assigned the work to verify the accounts of income and expenditure including financial book-keeping of an accountable and auditablc entity; "audit" includes pre audit, concurrent audit. post audit. test audit. special audit, system audit, performance audit andsuch other examination of accounts. as may be specified; "authority" means an officer responsible foradherence to the provisions of this Act for each accountable andauditublc entity; "concurrent audit" means a continuous auditof accounts of day-to-day transactions; "local authority" means a municipal corporation. municipal council. municipal committee, Town Improvement Trust. Gram Panchayat, Panchayat Sarniti or Zila Parishad constituted under the relevant law for the time being in force: "local fund" means- (i) revenues administered by accountable and auditablc entity "hich by law or rule having theforce of law come under thecontrol of State Government, whether in regard to proceedings generally or to specific matters such as the sanctioning of budget, sanction for creating or tilling up of particular post or the rules relating to leave, pl·ns11i11 ctc.:

Audit of accounts. Scparauon of State Audit and State Accounts Wing Forms of accounts. Consutuuon of flaryana State Audit and Accounts Services. Liabilny of authority prepare and present accounts for audit. () ("' GN SAKA) HARYANA GOVT. GAZ. (EXTRA.). MAR. 12· (PH . ' t hie and auditablc entity which may be pecially (ti) the revenue of any accoun a fi ,.1 h ti • State Gn1,crnment; nou rcu Y 10.: • • f a program function. .. independent cxarmnanon o , (1) "performance audit means an and roccdurcs of an accountable and operation or the management systc_rns . :hieving economy, efficiency and auditable entity whether such entity ts a effecuvcnew in the er.1ployment of available resources; d r the completion oftran action U) "post audit" means the detailed audit conductc a tcr . f · I documents to ensure thatall (k) "pre audu" means detailed exam1nat1or? o . mancia . informationis correct before the tran action rs conducted. (I) "prescribed" mean, prcscnbcd by rules made under this Act; · .. · f rt · ing to a specified item or cric of (m) "special audit means an audit o accounts pc airu items requiring thorough cxarnmation; · I d ove the effectiveness of a (n) "systems audit' means an approach to cva uatc an irnpr . ·· ·.1 JJ 'thin the system arc effective system order to verify thatthe individua c crncnts Wt . . and suitable achieving the stated objectives including Business Proccs Rc-cngmccnng, (o) "State" means theState of Haryana; (p) "Slate Government" means theGovernmentoftheState of I laryana m the administrative department; (q) "testaudit" meansan audit to check transactionsof a particular type of expenditure and receipt during a specified period. (r) "University" means a Uruvcrsuy established or incorporatedby an Act ofthe State Legislature andshall include University established under Central Act receiving grant-in-aid or contribution from State Governmentfor any purpose. 3. Notwithstanding anything to the contrary contained in this Act and without prejudice to the powers and functions ofthe Comptroller and Auditor General (Duties, Powersand Conditions of Service) Act, 197I (Central Act 56of I97 I). it shall be lawful to conduct an auditof accountable and auditablc entity in the manner provided by or under this Actand to recover the cost of auditin respect of such accountable and auditable entity in such manner, as may be prescribed. 4. (1) There shall be an Audit Wing and Accounts Wing headed by the Director, Audtt and Director, Accounts rcspccuvcly andshall work under the supervision of Admimstratrvc Secretary to Government. Haryana, Fmancc Department. (2) The manner of audit and maintenance of accounts of each accountable and auduable entity or of any specific activity shall be such, as may be prescribed. 5. The Forms in which the accounts are to be maintained, including accrual system of accounting, Enterprise Resource Planning tools and deployment of appropriate technology shall be such, as may be prescribed. 6. ( 1) The State Government shall constitute the Haryana State Audit and Accounts Services. The modeof recruitment and conditions of service of the members of the Service shall be such, as may be prescribed. (2) The Local Audit Department prior to the commencement of this Act shall hereinafter be known as the State Audit Department. The Director. Local Audit functioning before the commencement of this Act shall continue as the Director, State Audit Department. 7, (I) The accounts relating to the financial year shall be prepared and presented for audit by the authority within three months after the end of each financial year, in such form and in such manner, as may be prescribed. (2) The authority shall furnish certified financial disclosure by the 30th June each year including details of the variousbank accounts of the accountable and auditable entity along with the following details- (i) public funds deposited in the various bank accounts; (ii) interest thereon; and (iii) utilization ason date and future expenditure plan. J ' -:

HARYANA GOVT.GAZ. (EXTRA.), MAR. 12, (PHGN. 21, SAKA) (3) The State Govern t · hhId auditabl · . men may wit o release of funds to any accountable and of fi1 e_ e1ntity whichfails to furnish accounts for audit on expiry of three months from the end mancia year. b h (4) . The Sta?e Government shall take necessary action to recover the loss as identified Y t e Audit Officers m such manner, as may be prescribed. . (5) . The authority shallcheck that the public funds provided to any accountable and auditable entity f?r _a_ specific purpose are spent in the financial year, failing which, the State Government may uunate examination into the economy, efficiency and effectiveness with which the resources have been utilized and after giving an opportunity of being heard, may- (i) call for an explanation for non-utilization within the financial year; (ii) call for explanation for the delay; (iii) withdraw the funds allocated by the State, along with interest incurred on such funds and deposit the same in a bank account designated by the State Government: Provided that the funds withdrawn above may be released by the State Government on submission of a request by the accountable and auditable entity along with a concrete action plan for utilization: Provided further that no funds shall be withdrawn contrary to the provisions of the Constitution of India or any other law for the time being in force. 8. (1) The State Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, the Government may make rules providing for: - (a} the manner to recover the cost of audit under section 3; (b) the manner of audit and maintenance of accounts under sub-section (2) of section 4; (c) the Form is which the accounts are to be maintained under section 5; (d) the form and manner for preparing and presenting the accounts for audit under sub-section (l) of section 7; (e) the manner for recovery of loss under sub-section (4) of section 7; (f) any other matter which has to be or may be prescribed by rules made under this Act. Power to make rules. MEENAKSHI l. MEHTA, Secretary to Government, Hary:ma, Law and Legisbtive Department. 56949-L.R.-H G.P .. Chd