Schedule IX

(See section 151) FINANCIAL RULES PART I Authorised expenditure and investment of corporation fund and manner of payment from the fund. 1. The purposes to which the corporation fund may be applied include all objects expressly declared obligatory or discretionary by this Act and in general everything necessary for or conducive to the safety, health, convenience or education of the citizens or to the amenties of the city and everything incidental to the administration and the fund shall be applicable thereto within the city subject to these rules and such further rules or special orders as the Government may prescribe or issue: and shall be applicable thereto outside the city if the expenditure is authorised by this Act or specially sanctioned by the Government. 2. The items of expenditure incidental to the administration include,- (a) the provision and maintenace of a principal corporation office and record room and of other offices with the cost of appurtenances and fittings and insurance; (b) salaries, allowances, liveries, pensionary and provident fund constributions, gratuities and pensions and the cost of the vehicles provided for the Commissioner and the corporation officers and servants, study leave allowances of professional officers and subordinates; sending corporation servants to any hospital or institute for treatment; the purchase of provisions and other necessaries for sale to corporation subordinates. Explanation.- 'Salary' for the purpose of this rule shall include the privilege, if any, granted by the corporation of receiving payments in kind in lieu of the whole or a portion of the salary by purchasing articles from the corporation at such prices as the corporation may fix from time to time; (c) stationery, printing and all office and advertising expenses including the cost of reporting the discussions of the corporation; (d) legal expenses; (e) election expenses; (f) auditor's fee; (g) the provision and maintenance of corporation workshops; (h) corporation surveys, the preparation of maps of the city and of proposed extensions; (i) the preparation and maintenace of record of rights in immovable property; (j) the acquisition of land for all or any of the purposes of the Act. 3. All moneys received by the corporation shall be lodged in such bank or treasury as the Government may by order direct and shall be credited to an account entitled the 'Corporation Fund Account': Provided that any such moneys may, with the sanction of the Government,- (i) be invested in any of the securities which may be approved by the Government, or (ii) be placed on a fixed deposit in any bank approved by the Government. 4. (1) All orders or cheques aganist the corporation fund shall be signed by the Commissioner 1[or Chief Accounts Officer or any officer authorised by him in this behalf] , and the bank or treasury in which the fund is lodged shall, so far as the funds to the credit of the corporation admit, pay all orders or cheques aganist the fund which are so signed. MNU 2002, dated 27-2-2004, w. e. f. 9-3-2004 1. Substituted for the words“ or in his absence by the Revenue Officer ”by Notification No.UDD 65 (2) If the corporation shall have given provious authority in writing, such bank or treasury may at once pay out of the corporation fund without such orders or cheques any expense which the Government have incurred on behalf of the corporation. 5. The payment of any sum out of the corporation fund may be made or authorised by the Commissioner if such sum is covered by a budget grant and sufficient balance of such budget grant is available. 6. The payment of any sum out of the corporation fund may be made or authorised by the Commissioner in the absence of budget provision in the case of,- (a) refunds of taxes and other moneys authorised by law, rule, bye-law or regulation; (b) repayments of moneys belonging to contractors or other persons and held in deposit and of moneys collected or credited to the corporation fund by mistake; (c) costs incurred by the Commissioner in the exercise of his powers under clause (b) of sub-section (1) of section 64; (d) sums payable under sections 97 and 165; (e) sums payable under a decree or order of a civil court passed aganist the corporation or under a compromise of any suit or legal proceeding or claim; (f) any sum which the Commissioner is required by law, rule or bye-law to pay by way of compensation or expenses; (g) the salary payable to a special health officer appointed under section 85; (h) expenses incurred by the Commissioner under section 406 and expenses lawfully incurred in anticipation of recoupment from a person liable under any provision of law: Provided that the Commissioner shall forthwith communicate the circumstances to the standing committee which shall take any action that may in the circumstances be necessary or expendient to cover any expenditure not covered by a budget grant. 7. The Commissioner shall not overdraw. PART II Audit, surcharge and disallowances 8. The corporation chief auditor appointed under section 150 hereinafter referred to as the auditor shall maintain and keep a continuous audit of the corporation accounts. 9. (1)The Commissioner shall submit all accounts to the auditor as required by him. (2) The Commissioner shall make ready the annual accounts and registers and produce them before the auditor for scrutiny not later than the first day of October in the year succeeding that to which such account and registers relate. 10.(1) The auditor may,- (a) require in writing the production of such vouchers, statements, returns, correspondence, notes or other documents in relation to the accounts as he may think fit; (b) require in writing any salaried servant of the corporation accountable for, or having the custody or control of such voucher, statements, returns, correspondence, notes or other documents or of any property of the corporation or any person having directly or indirectly by him or his partner, any share or interest in any contract with or under the corporation to appear in person before him at his office and answer any question; (c) in the event of an explanation being required from a member of a corporation in writing, invite such person to meet him at his office and shall in writing specify the point on which his explanation is required. (2) The auditor may, in any requisition or invitation made under this rule fix a reasonable period, not being less than three days within which the said requisition or invitation shall be complied with. (3) The auditor shall give to the corporation not less than two week's notice in wiriting of the date on which he proposes to commence the audit: Provided that, notwithstanding anything contained in this sub-rule the auditor may, for special reasons which shall be recorded in writing, give shorter notice than two weeks or commence a special or detailed audit without giving notice. 11. The auditor shall include in his report a statement of,- (a) every payment which appears to him to be contrary to law; (b) the amount of any deficiency or loss which appears to have been caused by the gross negligence or misconduct of any person; (c) the amount of any sum received which ought to have been but is not brought into account by any person; and (d) any material impropriety or irregularity which he may observe in the accounts other than those mentioned in clauses (a), (b) and (c). 12. The auditor shall submit to the standing committee for 1[Accounts] a final statement of the audit and duplicate copy thereof to the Government within a period of three months from the end of the financial year, or within such other period as the Government may notify. w. e. f. 9-3-2004 13. (1) The standing committee shall forthwith remedy any defects or irregularities that may be pointed out by the auditor and report the same to the corporation. 1. Substituted for the words“ taxation and finance” by Notification No.UDD 65 MNU 2002,dated 27-2-2004, (2) The corporation shall submit its remarks on the audit report, if any, to the Government through the Controller, State Accounts Department within six months after the receipt of the report by the corporation. 2[(3) Every such report shall be laid before each House of the State Legislature, as soon as may be, after it is received by the State Government.] 1. Sub-rule (3) inserted by Notification No.UDD 65 MNU 2002,dated 27-2-2004,w.e.f. 9-3-2004 14. (1) The auditor may disallow every item contrary to law and surcharge the same on the person making or authorising the making of the illegal payment; and may charge aganist any person responsible thereof the amount of any deficiency or loss incurred by the wilful negligence or misconduct of that person or of any sum which ought to have been but is not brought into account by that person and shall, in every such case, certify the amount due from such person. (2) The auditor shall state in writing the reasons for his decision in respect of every disallowance, surcharge or charge and furnish by registered post a copy thereof to the person aganist whom it is made. (3) If the person to whom a copy of the auditor's decision is so furnished refuses to receive it, shall neverthless be deemed to have been duly furnished with a copy of such decision within the meaning of sub-rule (2). The period of fourteen days fixed in rules 15 and 16 shall be calculated from the date of such refusal. 15. Any person aggrieved by disallowance, surcharge or charge made may, within fourteen days after he has received or been served with the decision of the auditor, either,- (a) apply to the District Court, to set aside such disallowance, surcharge or charge and the Court, after taking such evidence as is necessary may confirm, modify or remit such disallowance, surcharge or charge with such orders as to costs as it may think proper in the circumstances, or (b) in lieu of such application, appeal to the Government who shall pass such orders as it thinks fit. 16. Every sum certified to be due from any person by the auditor under this Act shall be paid by such person to the Commissioner within fourteen days after the intimation to him of the decision of the auditor unless within that time such person has appealed to the court or to the Government aganist the decision; and such sum if not so paid, or such sum as the court or the Government shall declare to be due, shall be recoverable on an application made by the Commissioner to the court in the same way as an amount decreed by the court. PART III Form of accounts 17. The corporation shall make regulations to provide for,- (a) the form in which the budget estimates, budget statements and returns of the corporation shall be kept, and (b) the form in which the accounts of the corporation shall be kept.