Appointment of auditors of accounts.

The Puducherry Municipalities Act, 1973

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Chapter IX FINANCE

Statutory text

(1) The Government shall appoint auditors of the accounts of receipts and expenditure of the municipal fund.
(2) Such auditors shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (Central Act 45 of 1860).
- • 206. Powers of auditors. – (1) The auditors may --
- (a) by summons in writing, require the production of any book, deed, contract, account, voucher, receipt or other document the perusal or examination of which they consider necessary;
- (b) by summons in writing require any person having the custody or control of any such document or accountable for it to appear in person before them;
- (c) require any person so appearing to make and sign a declaration with respect to such document or to answer any question or to prepare and furnish any statement relating thereto.
(2) The auditors shall –
- (a) report to the council any material impropriety or irregularity which they may observe in the expenditure or in the recovery of moneys due to the council or in the municipal accounts;
- (b) furnish to the council such information as it may require concerning the progress of their audit;
- (c) report to the council any loss or waste of money or other property owned by or vested in the council caused by neglect or misconduct, with the names of persons, directly or indirectly, responsible for such loss or waste; and
- (d) submit to the council a final statement of the audit and a 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.
  - • 207. Defect and irregularities to be rectified by the Commissioner – The Commissioner shall forthwith remedy any defects or irregularities that may be pointed out by the auditors and report the same to the council.
  - • 208. Remarks of the council on the final statement of the audit. – The council shall forward its remarks, if any, on the final statement of the audit to the Government through the Examiner of Local Fund Accounts within a period of three months from the date of the receipt of the said statement by the council.
  - • 209. Audit, surcharge and disallowance. – (1) The auditors 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 against any person responsible therefor the amount of any deficiency, loss or unprofitable outlay incurred by the 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. Explanation. – It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred but for the negligence or misconduct of some other person.
(2) The auditors shall state in writing the reasons for their decision in respect of every disallowance, surcharge or charge and furnish by registered post a copy thereof to the person against whom it is made.
(3) If the person to whom a copy of the auditor’s decision is so furnished refuses to receive it, he shall nevertheless be deemed to have been duly furnished with a copy of such decision within the meaning of sub-section (2). The period of fourteen days fixed in sections 210 and 211shall be calculated from the date of such refusal.

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