The Odisha Local Fund Audit Act, 1948

The Odisha Gazette

EXTRAORDINARY PUBLISHED BY AUTHORITY No. Date : 13th May 1952

OrissaAct V of 1948

*THE ORISSA LOCAL FUND AUDIT ACT,1948

No.5341-L.S.G.-In exercise of the powers conferred by sub-section(3) of Section 1 of the Orissa Local Fund Audit Act, 1948 (Orissa Act V of 1948), the Governor of Orissa is pleased to appoint the 1st day of June, 1952 as the date with effect from which the said Act shall come into force in the State of Orissa.

WHEREAS it is expedient to consolidate and unify the law relating to the audit of local funds in the Province of Orissa and to provide for a uniform procedure for the audit of local funds therein;

It is hereby enacted as follows:-

1. (1) This Act may be called the Orissa Local FundAudit Act, 1948
2. (2) It extends to the whole of the Province of Orissa
3. (3) It shall come into force on such date as the Provincial Government may, by notification, appoint.

or context(a) "auditor'' means an auditor appointed under thisAct ; 1[(b) "Examiner of LocalAccounts" means the Examiner of LocalAccounts

appointed under Section 4 and includes any officer for the time being performing the duties of the Examiner of Local Accounts; and]

1. (c) "Local fund" means any fund not being a Cantonment fund to the control or management of which a Local Authority is legally entitled and any cess, rate, duty, or tax which such authority is legally entitled to impose and any property vested in such authority.

Published vide Notification No.5341-L.S.G.-I Dated, 13.05.1952

¹ Substituted vide Orissa Act 26 of 1976, Dated, 03.05.1976

² Renumbered vide Orissa Gazatte Ext. No. 1891, Dated, 01.10.2012

is constituted, the accounts of any LocalAuthority whose accounts are declared by the Provincial Government by notification to be subject to audit under thisAct, shall be subject to audit in all respects in the manner provided by or under this Act and any provision in any such enactment or in any bye-law or rules made under such enactment inconsistent with or repugnant to the provision of thisAct or of any rule made thereunder shall, to the extent of such inconsistency or repugnancy, be deemed to have been repealed by thisAct.

2[(2) Save as otherwise provided in section 8, where the audit of accounts of any Urban Local Body and Panchayati Raj Institution is undertaken by the Comptroller andAuditor-General under section 20 of the Comptroller andAuditorGeneral’s (Duties, Powers and Conditions of Service)Act, 1971, he shall have the right to comment on and supplement to the report of the Examiner of Local Accounts, and the report of such audited accounts shall be laid by the State Government, as soon as may be after it is received, before the Legislature of the State.

Explanation - For the purpose of this section, the expression “Urban Local Body” and “Panchayati Raj Institution” shall respectively mean a “Municipality” as defined in clause (e) of article 243-P of the Constitution of India and a “Panchayat” as defined in clause (d) of article 243 thereof.]

1. (1) The State Government may, by notification, appoint an officer of the State Government to be the Examiner of LocalAccounts and they may also appoint such number of Deputy Examiner of Local Accounts and Assistant Examiner of Loca1 Accounts as they deem necessary.
2. (2) The Deputy Examiner of LocalAccounts and the Assistant Examiner of LocalAccounts shall exercise such powers and perform such functions of the Examiner of LocalAccounts as the State Government may, by notification, assign.
3. (3) The Examiner of Local Accounts may, with the approval of the State

Auditor to be deemed to be public servant- An auditor shall, for the

purpose of the powers and duties conferred and imposed on him by or under this Act, be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.

attendance of persons concerned, etc.- For the purpose of any audit, an auditor may-

1. (a) by summons in writing or by letter require the production before him of any document which he may deem necessary for the proper conduct of the audit;
2. (b) by summons in writing require a whole-time paid servant of the Local Authority accountable for, or having the custody or control of any such document to appear in person before him at any such audit; and
3. (c) require any such person to make and sign a declaration with respect to such document or to answer any question or prepare and submit any statement relating thereto.

¹ Substituted vide Orissa Act 26 of 1976, Dated, 03.05.1976

² Inserted vide Orissa Gazatte Ext. No. 1891, Dated, 01.10.2012

Provided that no proceedings under this Section shall be instituted except with the previous written sanction of the Examiner of LocalAccounts.

auditor shall prepare a report on the accounts audited and examined and shall deliver such report to the Examiner of LocalAccounts who shall forward a copy thereof to the LocalAuthority concerned.

illegal payment or loss incurred by negligence- (1) The auditor shall include in his report a statement of-

1. (a) every payment which appears to him to be contrary to law;
2. (b) the amount of any deficiency or loss which appears to have been incurred by the negligence or misconduct of any person; and the amount of any sum which ought to have been but is not brought into account by any person.

1. (2) After considering such report the Examiner of LocalAccounts may-
   • (a) order that any payment referred to in clause (a) of sub-section (1) shall be allowed or that no further action shall be taken as regards any amount referred to in clause (b) or clause (c) of the said subsection, or
   • (b) serve a notice on the person making or authorizing any such payment or the person responsible for or failing to account for such amount, requiring him to show cause within one month why such payment should not be surcharged or such amount should not be charged against him.
2. (3) After considering such cause as may be shown by any such person, the Examiner of Local Accounts may surcharge such payment on the person making or authorizing such payment or charge the amount of any loss or deficiency against the person responsible therefor or any amount which ought to have been but is not brought into account against the person failing to account for such amount and shall in every such case certify the amount due from such person.

month next after the date of the certification thereof, be recoverable from him as an arrear of land revenue under the provisions of the law for the time being in force for the recovery of arrears of land revenue.

1. (2) For the purposes of this Act, the Collector shall be deemed to be the person to whom the amount recoverable under sub-section (1) shall be payable.
2. (3) The Collector shall pay all certified amounts received by him under sub-section (2) to the local authority concerned.

1. (2) Pending the disposal of such appeal all proceedings for recovery of the certified amount shall be stayed.

1. (2) The Provincial Government may recover from the local authority concerned such amount as may be decreed as cost in favour of the local authority and any amount so recoverable shall be paid to the Provincial Government by such local authority.

expenses incurred by a local authority in complying with any requisition of the auditor under clause (b) of Section 6 shall be payable out of its local funds.

to the condition of the previous publication, make rules to carry out the purposes of this Act.

1. (2) In particular and without prejudice to the generality of the foregoing power such rules may provide for -
   • (a) the manner in which a local authority shall keep accounts in cases in which no such provision or, in the opinion of the Provincial Government, insufficient provision is made by the enactment under which such authority is constituted ;
   • (b) the powers and duties of auditors and the procedure to be followed by them for conducting an audit and the times and places at which such audit may be conducted;
   • (c) for the recovery by the Provincial Government from a local authority of expenses incurred by the Collector under section 10 or the Provincial Government under section 12; and
   • (d) the powers and duties of the Examiner of LocalAccounts.

1. (1) The enactments specified in the Schedule are hereby repealed to the extent mentioned in the fourth column thereof.
2. (2) The provisions of this Act shall not apply to any case, suit, appeal, revision petition or any other proceedings that may be pending at the commencement of thisAct before an auditor, or the Civil Court, or the Provincial Government and the law in force immediately before the commencement of this Act shall, not withstanding any repeal effected by this Act, continue to apply to such cases, suits, appeals, revision petitions and other proceedings.

(See Section 15) Enactments Repealed Year Number Short title Extent of repeal (1) (2) (3) (4) 1952 II The Bihar and Orissa The Whole - Local FundAudit Act, 1925 1936 I The Orissa Laws Regulations, The following entry in 1936 part-II of the Fourth Schedule, namely:-- “1925. II The Bihar and Orissa Local The area transferred FundAuditAct,1925. to Orissa,the Central Provinces”