The State Government may by rules provide for internal audit of the day to day accounts of a Municipality in such manner as it thinks fit.

Municipal Accounts Committee Municipal Accounts Committee:

1. (1) The Board of Councillors shall, at the first meeting in each year or as soon as may be at any meeting subsequent thereto, constitute a Municipal Accounts Committee.
2. (2) The Municipal Accounts Committee shall consist of such number of Councillors, not being less than three and not more than five, as the Municipality may determine, to be elected by the Councillors from amongst themselves: Provided that the Chairman, the Vice-Chairman or any other member of the Executive Council shall not be a member of the Municipal Accounts Committee.
3. (3) The Board of Councillors may, from time to time, associate with the Municipal Accounts Committee such persons having special knowledge in public accounts and administration, not being Councillors and not exceeding one-half of the number of Councillors in such Committee, and for such term, as it thinks fit. Such persons shall not have the right to vote at the meeting of the Municipal Accounts Committee.
4. (4) The members of the Municipal Accounts Committee shall elect from amongst themselves one member to be its convenor.
5. (5) The members of the Municipal Accounts Committee shall hold office until a new Committee is constituted.
6. (6) Subject to the provisions of this Act and the rules and the regulations made thereunder, it shall be the duty of the Municipal Accounts Committee-
   • (a) to examine the accounts of the Municipality;
   • (b) to examine and scrutinise the report on the accounts of the Municipality by the Auditor appointed under this Chapter;
   • (c) to examine and scrutinise the report of special audit, if any;
   • (d) to examine and scrutinise the report of physical verification of stock, if any;
   • (e) to submit report to the Board of Councillors every year and from time to time on such examination and scrutiny;
   • (f) to discharge such other functions as may be entrusted to it by the Board of Councillors.
7. (7) The Municipal Accounts Committee may call for any book or document and send for such officer of the Municipality as it may consider necessary for explaining any matter in connection with his work.
8. (8) The manner of transaction of business of the Municipal Accounts Committee shall be such as may be determined by it from time to time.