Chapter V FINANCE, ACCOUNTS AND AUDIT

All property acquired and works constructed by the State Government in the Krishna Basin, before the Constitution of the Authority, shall vest in the Authority and all income derived and expenses incurred in this behalf shall be brought into books of the Authority.

(1) The Authority shall have its own fund and all receipts of the Authority shall be carried thereto and all payments by Authority shall be made therefrom.

1. (2) The fund of the Authority shall consist of,-
   • (a) the amount allocated in the State Budget for all irrigation projects, in Krishna Basin Area and transferred to the Authority Fund by appropriation from out of the Consolidated Fund of the State;
   • (b) all grants, subversions, donations, gifts made by the Central or State Government, any local Authority, and any body whether incorporated or not;
   • (c) the amount borrowed by the Authority; and
   • (d) income of the Authority.

The fund of the Authority and all property held or vested in the Authority shall be applied for the administration of this Act.

The Authority may from time to time and subject to such conditions as may be prescribed in this behalf, raise loans, shares, debentures, irrigation bonds and otherwise secure funds for the purposes of this Act.

(1) Accounts of the income and expenditure of the Fund of the Authority shall be kept in accordance with such rules as may be prescribed. (2) The Authority shall prepare an annual statement of accounts in such form as may be prescribed. (3) The Accounts of the Authority shall be audited annually by such auditor as the State Government, may direct. (4) The auditor shall for the purposes of the audit have access to all the accounts and other records of the Authority. (5) The Authority shall pay from its fund such charges for the audit as may be prescribed. (6) As soon as may be after the receipt of the report of the auditor the Authority shall send a copy of the annual statement of accounts, together with a copy of the report of the auditor to the State Government and shall cause to be published the annual statement of accounts in such manner as may be prescribed. (7) The Government may after perusal of the report of the auditor give such directions as it thinks fit to the Authority and the Authority shall comply with such directions.

1. (2) The Authority shall prepare an annual statement of accounts in such form as may be prescribed.
2. (3) The Accounts of the Authority shall be audited annually by such auditor as the State Government, may direct.
3. (4) The auditor shall for the purposes of the audit have access to all the accounts and other records of the Authority.
4. (5) The Authority shall pay from its fund such charges for the audit as may be prescribed.
5. (6) As soon as may be after the receipt of the report of the auditor the Authority shall send a copy of the annual statement of accounts, together with a copy of the report of the auditor to the State Government and shall cause to be published the annual statement of accounts in such manner as may be prescribed.
6. (7) The Government may after perusal of the report of the auditor give such directions as it thinks fit to the Authority and the Authority shall comply with such directions.

The Authority shall before such date in such form and at such intervals as may be prescribed submit in such manner a report to the State Government.

The Authority shall prepare every year before such date and in such form as may be prescribed, budget estimate of its income and expenditure for the financial year to commence on the first day of April next following.