Vidhi Codex

Bare Act

The Kerala Local Fund Audit Act, 1994

Finance199431 sections

This Act establishes the framework for auditing the financial accounts of local authorities and local funds across the state of Kerala. It governs bodies such as municipalities, panchayats, and similar local governing institutions by empowering the government to appoint auditors who must conduct thorough examinations of their finances. The primary objective is to prevent mismanagement, wastage, or the misappropriation of public money. By enforcing strict accountability through detailed, special, and concurrent audits, the law ensures that funds entrusted to local bodies are used effectively and transparently, safeguarding the financial integrity of local governance.

Start reading →Read full ActSections
  1. 1. 1. Short title and commencement.
  2. 2. 2 . Definitions .
  3. 3. 3. Appointment of Director.
  4. 4. 4. Audit of Accounts :
  5. 5. 5 . Power of audit of accounts of certain authorities, bodies, institutions or funds.
  6. 6. 6 . Audit of accounts of stock and stores and verification of cash balance.
  7. 7. Manner in which audit is to be conducted .
  8. 8. Auditor to be deemed to be public servant.
  9. 9. Liability of local authorities to prepare and present accounts for audit.
  10. 10. 10. Completion of audit of accounts :.
  11. 11. 11. Power of auditor to require production of accounts and attendance of persons.
  12. 12. 12 . Penalty for disobeying requisition under section 11.
  13. 13. 13. Audit reports to be sent to certain officers and bodies as Government may direct.
  14. 14. 14. Contents of audit report.
  15. 15. 15 . Procedure to be followed after getting the report of the Director under section 13.
  16. 16. Auditor to surcharge illegal payments and loss caused by negligence or misconduct .
  17. 17. Powers and duties of the Director.
  18. 18. Delegation of powers and functions .
  19. 19. 19 . Payment of charges for audit.
  20. 20. 20. Power to dispense with detailed audit.
  21. 21. 21 . Defalcation or loss in money or stores to be reported by the Executive authority.
  22. 22. Act to override other enactments.
  23. 23. Laying of audit report.
  24. 24. Protection of action taken in good faith.
  25. 25. 25 . Bar of jurisdiction of civil courts.
  26. 26. 26 . Special provision for pending audit.
  27. 27. 27. Cognizance of offences.
  28. 28. 28 . Power of Government to make rules.
  29. 29. 29. Power to remove difficulties .
  30. 30. 30. Savings.
  31. Schedule. THE SCHEDULE

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